Unizan Financial (NASDAQ:UNIZ)
Historical Stock Chart
From Jun 2019 to Jun 2024
CANTON, Ohio, Oct. 21 /PRNewswire-FirstCall/ -- Unizan Financial Corp. (NASDAQ:UNIZ), today reported net income of $5.7 million for the quarter ended September 30, 2005, or $0.26 per diluted share, a 14% increase compared with net income of $5.0 million, or $0.23 per diluted share, for the second quarter of 2005 and a 98% increase compared with net income of $2.9 million, or $0.13 per diluted share, for the quarter ended September 30, 2004.
"Our third quarter results continue to reflect solid improvement in our net income during the first nine months of 2005," said Roger L. Mann, Unizan Financial Corp. President and Chief Executive Officer. "I continue to be extremely pleased with the commitment demonstrated by our staff as we progress through the 2005 calendar year," concluded Mann.
Net income for the nine months ended September 30, 2005 was $15.2 million, or $0.69 per diluted share, compared to $8.4 million, or $0.38 per diluted share, for the same period in 2004.
Net interest income - Net interest income was $16.9 million for the three months ended September 30, 2005, down 0.9% from the previous quarter and up 5.0% from the same quarter last year. The net interest margin was 3.05% for the third quarter of 2005 compared to 3.07% for the second quarter of 2005 and 2.75% for the third quarter of 2004 while average earning assets during the third quarter of 2005 declined 1.3% from the prior quarter and 5.7% from the year ago quarter.
Provision for loan losses - The provision for loan losses was $1.7 million for the three months ended September 30, 2005, compared to $1.4 million in the previous quarter and $3.8 million in the third quarter of 2004. The provision for the third quarter of 2004 was impacted by increases in non-performing and impaired loans as well as by higher loss factors being applied to certain loan types. Net charge-offs were $2.5 million for the third quarter of 2005 compared to $2.0 million in the previous quarter and $2.3 million in the year ago quarter. The increase in net charge-offs from the second quarter of 2005 was primarily attributed to one aircraft loan charge-off in the amount of $590 thousand. No aircraft loans were charged-off in the second quarter of 2005 or third quarter of 2004. The allowance for loan losses as a percentage of total loans was 1.40% at September 30, 2005 as compared to 1.41% at year end 2004 and 1.39% at September 30, 2004.
Other income - Other income was $8.7 million for the third quarter of 2005 compared with $7.1 million for the second quarter of 2005 and $7.2 million for the third quarter of 2004. Results for the third quarter of 2005 benefited from additional bank owned life insurance income attributed to death benefit claims totaling $836 thousand and an $800 thousand gain on the sale of agreements with merchant services customers. The third quarter 2004 results included a $488 thousand gain from the sale of the Company's Wooster Financial Center.
Trust, financial planning, brokerage and insurance sale revenue decreased $368 thousand, or 15.8%, as compared to the prior quarter and increased $171 thousand, or 9.5%, as compared to the year ago quarter. The decrease from the previous quarter was mainly attributed to the seasonality of tax related fee income during the second quarter while the increase from a year ago mainly resulted from improved market conditions. Customer service fees, representing service charges on deposits and fees for other banking services, increased by $39 thousand, or 2.3%, from the second quarter of 2005 and decreased by $102 thousand, or 5.5%, from the third quarter of 2004. The increase compared to the prior quarter was mainly attributed to pricing changes for insufficient funds transactions while the decrease from the third quarter of 2004 continued to result from changes in consumer behavior as well as increases in earnings credits due to higher short term interest rates which offset business account service charges.
Gains on sales of loans totaled $1.3 million, compared with $1.1 million in the second quarter of 2005 and $1.0 million in the third quarter of 2004. During the third quarter of 2005, gains from the sale of the guaranteed portion of Small Business Administration (SBA) and other government guaranteed loans were $1.0 million, compared with $944 thousand of gains in the second quarter of 2005 and $898 thousand of gains in the third quarter of 2004.
Gains from the sale of residential mortgage loans in the third quarter of 2005 were $222 thousand on sales of loans totaling $18.4 million compared with $125 thousand of gains on the sale of $12.3 million of loans in the second quarter of 2005 and $110 thousand of gains on sales of $11.7 million of loans in the third quarter of 2004. The increase from the prior quarter resulted primarily from the seasonality of mortgage origination activity while the increase from the year ago quarter was mainly attributed to lower market interest rates for fixed rate loans in 2005.
There were no net security gains or losses in the third quarter of 2005 or the second quarter of 2005 compared to $60 thousand of losses in the third quarter of 2004. The net losses in the third quarter of 2004 resulted primarily from the sale of the Company's equity securities portfolio.
Other expense - Other expense was $16.1 million for the three months ended September 30, 2005, up $606 thousand, or 3.9%, from the previous quarter and up $466 thousand, or 3.0%, from the same quarter a year ago. The increase from the previous quarter was primarily attributed to salaries and benefits expense which increased $233 thousand, due mainly to benefit and incentive costs, and other operating expenses which increased $330 thousand, due mainly to $230 of non credit related losses. The increase compared to the prior year quarter was primarily due to increases in accounting, legal and professional fees, offset in part by the recognition in the year ago quarter of $357 thousand for merger related severance and benefit accruals. Accounting, legal and other professional fees totaled $1.4 million, $1.6 million and $535 thousand for the quarters ended September 30, 2005, June 30, 2005 and September 30, 2004, respectively. Such costs for the September 2005 and June 2005 quarters were primarily attributed to filling staffing vacancies, outsourcing certain functions that were previously performed internally, and activities associated with reviewing, implementing and maintaining controls in accordance with provisions of Section 404 of the Sarbanes-Oxley Act of 2002. The September 2004 quarter included $119 thousand of merger related legal and professional fees as compared to minimal amounts in the 2005 quarters.
Provision for income taxes - The effective tax rate for the three months ended September 30, 2005 was 26.9% compared to 30.1% in the previous quarter and 26.3% for the same quarter last year. The decrease in the effective tax rate as compared to the prior quarter was a result of tax exempt income, primarily earnings on bank owned life insurance, representing a relatively greater portion of pre-tax earnings.
Balance sheet - Total assets at September 30, 2005 were $2.46 billion compared to $2.57 billion at the end of 2004 and $2.59 billion a year ago. Compared to a year ago, loans decreased by $153.3 million, or 8.1%, which continues to be primarily attributed to the closing of the aircraft lending centers, less emphasis being placed on indirect consumer lending, competitive factors involving rate and structure and a reduction in lending staff in areas where there is significant market overlap with Huntington Bancshares Incorporated ("Huntington" - see Pending Merger below). Total deposits decreased by $50.4 million, or 2.7%, from the end of 2004 and by $27.4 million, or 1.5%, from a year ago while total borrowings have declined by $71.1 million from year end 2004 and by $116.1 million from a year ago.
Asset quality - At September 30, 2005, non-performing loans were $29.5 million, or 1.69% of total loans, compared to $30.2 million, or 1.61% of total loans, at December 31, 2004 and $29.2 million, or 1.53% of total loans, at September 30, 2004. Delinquent loans to total loans declined to 1.46% at September 30, 2005 compared to 1.60% at both December 31, 2004 and September 30, 2004.
Non-performing loans, excluding the portion of the loans guaranteed by the government, were $22.9 million at September 30, 2005 compared to $22.9 million at December 31, 2004 and $22.2 million at September 30, 2004.
Pending Merger
On October 6, 2005, Huntington announced that the Office of the Comptroller of the Currency has lifted its formal written agreement dated February 28, 2005 with The Huntington National Bank. Huntington also announced that, although the Federal Reserve written agreements remain in effect, Huntington intends to proceed with the filing of the application to acquire the Company. As announced November 12, 2004, the Company and Huntington entered into an amendment to their January 26, 2004 merger agreement extending the term of the agreement for one year from January 27, 2005 to January 27, 2006.
About Unizan
Unizan Financial Corp., a $2.5 billion holding company, is a financial services organization headquartered in Canton, Ohio. The company operates 42 full-service retail financial centers in five metropolitan markets in Ohio - Canton, Columbus, Dayton, Newark and Zanesville. Through Unizan Financial Corp.'s subsidiaries, Unizan Bank, National Association; Unizan Financial Services Group, National Association; Unizan Banc Financial Services, Inc.; and Unizan Financial Advisors, Inc., the company offers its client base corporate and retail banking, internet banking and wealth management products and services. Additionally, the company operates government guaranteed loan programs through its business lending centers in Cincinnati, Cleveland, Columbus and Dayton, Ohio; Detroit, Michigan; Mt. Arlington, New Jersey and Indianapolis, Indiana. For more information on Unizan Financial Corp. and its subsidiaries, visit the company on the Web at http://www.unizan.com/.
Unizan Financial Corp.
NONPERFORMING AND UNDERPERFORMING ASSETS
(dollars in thousands)
9/30/05 6/30/05 3/31/05
Non-performing loans:
Commercial $2,029 $3,284 $1,588
Commercial real estate 4,642 5,255 6,477
Government guaranteed 8,862 8,559 8,690
Aircraft 2,085 2,734 2,950
Residential real estate 10,064 9,214 8,931
Direct installment loans 47 30 28
Indirect installment loans 2 6 67
Home equity 1,810 1,646 1,418
Total non-performing loans 29,541 30,728 30,149
Less: Government guaranteed amount 6,601 6,483 6,739
Total non-performing loans excluding
government guaranteed amount $22,940 $24,245 $23,410
Total non-performing loans $29,541 $30,728 $30,149
Other assets owned 2,619 2,133 1,604
Total non-performing assets 32,160 32,861 31,753
Less: Government guaranteed amount 6,948 6,829 7,085
Total non-performing assets excluding
government guaranteed amount $25,212 $26,032 $24,668
Restructured loans $5,247 $5,302 $5,339
Ratio of:
Non-performing loans to total loans 1.69% 1.72% 1.65%
Non-performing assets to total assets 1.31% 1.32% 1.26%
Non-performing assets to total loans +
other assets 1.84% 1.84% 1.74%
Allowance to total loans 1.40% 1.42% 1.42%
Allowance to non-performing loans 82.69% 82.25% 85.80%
Ratio of (excluding government
guaranteed amount):
Non-performing loans to total loans 1.31% 1.36% 1.29%
Non-performing assets to total assets 1.02% 1.05% 0.98%
Non-performing assets to total loans +
other assets 1.44% 1.46% 1.35%
Allowance to non-performing loans 106.48% 104.24% 110.50%
NET CHARGE-OFFS TO AVERAGE LOANS AND
LEASES
Average loans and leases:
Commercial $142,061 $149,892 $159,226
Commercial real estate 597,232 605,529 607,789
Government guaranteed 74,238 73,627 75,817
Aircraft 80,808 87,516 100,834
Residential real estate 427,798 436,273 439,089
Indirect installment loans 84,309 88,535 93,285
Home equity 324,405 325,013 322,376
Other consumer 34,310 31,233 32,277
Total average loans and leases $1,765,161 $1,797,618 $1,830,693
Net charge-offs (recoveries):
Commercial $402 $88 $284
Commercial real estate 6 910 419
Government guaranteed 233 170 84
Aircraft 628 - 17
Residential real estate 226 204 153
Indirect installment loans 347 271 542
Home equity 343 174 135
Other consumer 311 207 148
Total $2,496 $2,024 $1,782
Net charge-offs (recoveries) to
average loans and leases
(annualized):
Commercial 1.13% 0.23% 0.71%
Commercial real estate 0.00% 0.60% 0.28%
Government guaranteed 1.26% 0.92% 0.44%
Aircraft 3.11% 0.00% 0.07%
Residential real estate 0.21% 0.19% 0.14%
Indirect installment loans 1.65% 1.22% 2.32%
Home equity 0.42% 0.21% 0.17%
Other consumer 3.63% 2.65% 1.83%
Total 0.57% 0.45% 0.39%
Unizan Financial Corp.
NONPERFORMING AND UNDERPERFORMING ASSETS
(dollars in thousands)
12/31/04 09/30/04
Non-performing loans:
Commercial $1,689 $1,683
Commercial real estate 6,453 5,620
Government guaranteed 9,266 9,438
Aircraft 2,826 2,450
Residential real estate 8,375 8,577
Direct installment loans 111 63
Indirect installment loans 204 160
Home equity 1,226 1,183
Total non-performing loans 30,150 29,174
Less: Government guaranteed amount 7,294 7,023
Total non-performing loans excluding
government guaranteed amount $22,856 $22,151
Total non-performing loans $30,150 $29,174
Other assets owned 2,612 2,254
Total non-performing assets 32,762 31,428
Less: Government guaranteed amount 7,976 7,759
Total non-performing assets excluding
government guaranteed amount $24,786 $23,669
Restructured loans $2,430 $2,461
Ratio of:
Non-performing loans to total loans 1.61% 1.53%
Non-performing assets to total assets 1.27% 1.21%
Non-performing assets to total loans
+ other assets 1.75% 1.65%
Allowance to total loans 1.41% 1.39%
Allowance to non-performing loans 87.42% 90.45%
Ratio of (excluding government
guaranteed amount):
Non-performing loans to total loans 1.22% 1.17%
Non-performing assets to total assets 0.96% 0.91%
Non-performing assets to total loans
+ other assets 1.32% 1.24%
Allowance to non-performing loans 115.31% 119.12%
NET CHARGE-OFFS TO AVERAGE LOANS AND
LEASES
Average loans and leases:
Commercial $187,149 $195,561
Commercial real estate 607,848 636,693
Government guaranteed 72,949 64,643
Aircraft 111,681 121,690
Residential real estate 441,000 444,772
Indirect installment loans 101,154 108,903
Home equity 326,656 326,582
Other consumer 34,756 36,250
Total average loans and leases $1,883,193 $1,935,094
Net charge-offs (recoveries):
Commercial $473 $175
Commercial real estate 1,060 772
Government guaranteed 422 353
Aircraft 612 (47)
Residential real estate 190 236
Indirect installment loans 1,191 416
Home equity 424 164
Other consumer 723 216
Total $5,095 $2,285
Net charge-offs (recoveries) to
average loans and leases
(annualized):
Commercial 1.01% 0.36%
Commercial real estate 0.70% 0.49%
Government guaranteed 2.31% 2.18%
Aircraft 2.19% -0.15%
Residential real estate 0.17% 0.21%
Indirect installment loans 4.71% 1.53%
Home equity 0.52% 0.20%
Other consumer 8.32% 2.38%
Total 1.08% 0.47%
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Three Months Ended September 30,
2005
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $10,076 $87 3.43 %
Securities 464,571 4,686 4.00
Total loans (2) 1,765,161 28,104 6.32
Total interest-earning assets (3) 2,239,808 32,877 5.82
Nonearning assets:
Cash and due from banks 51,435
Other nonearning assets 204,278
Allowance for loan losses (24,836)
Total assets $2,470,685
Interest bearing liabilities:
Demand deposits $185,831 $377 0.80 %
Savings deposits 526,153 3,468 2.62
Time deposits 884,591 7,813 3.50
Total deposits 1,596,575 11,658 2.90
Subordinated note 20,619 504 9.70
Other borrowings 294,922 3,518 4.73
Total borrowings 315,541 4,022 5.06
Total interest bearing liabilities 1,912,116 15,680 3.25
Noninterest bearing liabilities:
Demand deposits 213,734
Other liabilities 24,705
Shareholders' equity 320,130
Total liabilities and equity $2,470,685
Net interest income and interest
rate spread (3) $17,197 2.57 %
Net interest margin (4) 3.05 %
(1) Calculated on an annualized basis.
(2) Loan fees are included in interest income on loans.
(3) Interest income is computed on a fully tax equivalent (FTE) basis,
using a tax rate of 35%.
(4) The net interest margin represents net interest income as a percentage
of average interest-earning assets.
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Three Months Ended September 30,
2004
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $9,113 $21 0.92 %
Securities 431,971 3,309 3.05
Total loans (2) 1,935,094 26,704 5.49
Total interest-earning assets (3) 2,376,178 30,034 5.03
Nonearning assets:
Cash and due from banks 58,010
Other nonearning assets 206,434
Allowance for loan losses (24,783)
Total assets $2,615,839
Interest bearing liabilities:
Demand deposits $231,466 $308 0.53 %
Savings deposits 505,279 1,561 1.23
Time deposits 886,615 7,189 3.23
Total deposits 1,623,360 9,058 2.22
Subordinated note 20,619 505 9.74
Other borrowings 418,646 4,071 3.87
Total borrowings 439,265 4,576 4.14
Total interest bearing liabilities 2,062,625 13,634 2.63
Noninterest bearing liabilities:
Demand deposits 222,458
Other liabilities 22,138
Shareholders' equity 308,618
Total liabilities and equity $2,615,839
Net interest income and interest
rate spread (3) $16,400 2.40 %
Net interest margin (4) 2.75 %
(1) Calculated on an annualized basis.
(2) Loan fees are included in interest income on loans.
(3) Interest income is computed on a fully tax equivalent (FTE) basis,
using a tax rate of 35%.
(4) The net interest margin represents net interest income as a percentage
of average interest-earning assets.
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Nine Months Ended September 30,
2005
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $13,399 $253 2.52 %
Securities 455,582 13,297 3.90
Total loans (2) 1,797,584 82,497 6.14
Total interest-earning assets (3) 2,266,565 96,047 5.67
Nonearning assets:
Cash and due from banks 50,347
Other nonearning assets 204,075
Allowance for loan losses (25,503)
Total assets $2,495,484
Interest bearing liabilities:
Demand deposits $197,610 $1,069 0.72 %
Savings deposits 525,217 8,904 2.27
Time deposits 879,646 22,367 3.40
Total deposits 1,602,473 32,340 2.70
Subordinated note 20,619 1,514 9.82
Other borrowings 316,868 10,589 4.47
Total borrowings 337,487 12,103 4.79
Total interest bearing liabilities 1,939,960 44,443 3.06
Noninterest bearing liabilities:
Demand deposits 214,242
Other liabilities 24,099
Shareholders' equity 317,183
Total liabilities and equity $2,495,484
Net interest income and interest
rate spread (3) $51,604 2.61 %
Net interest margin (4) 3.04 %
(1) Calculated on an annualized basis.
(2) Loan fees are included in interest income on loans.
(3) Interest income is computed on a fully tax equivalent (FTE) basis,
using a tax rate of 35%.
(4) The net interest margin represents net interest income as a percentage
of average interest-earning assets.
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Nine Months Ended September 30,
2004
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $6,535 $42 0.86 %
Securities 480,472 12,703 3.53
Total loans (2) 1,956,844 81,978 5.60
Total interest-earning assets (3) 2,443,851 94,723 5.18
Nonearning assets:
Cash and due from banks 58,164
Other nonearning assets 208,312
Allowance for loan losses (24,607)
Total assets $2,685,720
Interest bearing liabilities:
Demand deposits $245,507 $997 0.54 %
Savings deposits 513,807 4,058 1.05
Time deposits 920,700 21,969 3.19
Total deposits 1,680,014 27,024 2.15
Subordinated note 20,619 1,514 9.81
Other borrowings 436,032 11,765 3.60
Total borrowings 456,651 13,279 3.88
Total interest bearing liabilities 2,136,665 40,303 2.52
Noninterest bearing liabilities:
Demand deposits 218,612
Other liabilities 23,554
Shareholders' equity 306,889
Total liabilities and equity $2,685,720
Net interest income and interest
rate spread (3) $54,420 2.66 %
Net interest margin (4) 2.97 %
(1) Calculated on an annualized basis.
(2) Loan fees are included in interest income on loans.
(3) Interest income is computed on a fully tax equivalent (FTE) basis,
using a tax rate of 35%.
(4) The net interest margin represents net interest income as a percentage
of average interest-earning assets.
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except share and per share data)
Year to Date
09/30/2005 09/30/2004
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $253 $42
Interest and dividends on securities 12,490 11,906
Interest and fees on loans and
loans held for sale 82,459 81,940
Total interest income 95,202 93,888
Interest expense:
Interest on deposits 32,340 27,024
Interest on borrowings 12,103 13,279
Total interest expense 44,443 40,303
Net interest income 50,759 53,585
Provision for loan losses 4,374 7,700
Net interest income after
provision for loan losses 46,385 45,885
Other income:
Trust, financial planning,
brokerage and insurance sales 6,543 5,796
Customer service fees 5,044 5,546
Gains on sale of loans 3,523 2,939
Security gains, net - 192
Other operating income 7,624 6,946
Total other income 22,734 21,419
Other expense:
Salaries, wages, pension and benefits 23,455 31,479
Occupancy expense 2,611 2,537
Furniture and equipment expense 1,505 1,627
Taxes other than income taxes 2,025 1,797
Intangible amortization expense 1,917 2,504
Other operating expense 16,326 15,687
Total other expense 47,839 55,631
Income before income taxes 21,280 11,673
Provision for income taxes 6,049 3,251
Net Income $15,231 $8,422
Earnings per share:
Basic $0.69 $0.39
Diluted $0.69 $0.38
Dividends per share $0.405 $0.405
Weighted average number of shares:
Basic 22,114,826 21,805,547
Diluted 22,229,672 22,005,003
NOTE: Per share data is based on the weighted average number of shares
outstanding adjusted for stock dividends or splits calculated under
the treasury method.
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except share and per share data)
Three months ended
9/30/05 6/30/05 3/31/05
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $87 $95 $71
Interest and dividends on securities 4,420 4,202 3,868
Interest and fees on loans and loans
held for sale 28,092 27,478 26,889
Total interest income 32,599 31,775 30,828
Interest expense:
Interest on deposits 11,658 10,762 9,920
Interest on borrowings 4,022 3,946 4,135
Total interest expense 15,680 14,708 14,055
Net interest income 16,919 17,067 16,773
Provision for loan losses 1,650 1,429 1,295
Net interest income after
provision for loan losses 15,269 15,638 15,478
Other income:
Trust, financial planning, brokerage
and insurance sales 1,964 2,332 2,247
Customer service fees 1,752 1,713 1,579
Gains on sale of loans 1,267 1,069 1,187
Security gains/(losses), net - - -
Other operating income 3,683 1,950 1,991
Total other income 8,666 7,064 7,004
Other expense:
Salaries, wages, pension and
benefits 7,850 7,617 7,988
Occupancy expense 872 831 908
Furniture and equipment expense 516 486 503
Taxes other than income taxes 659 687 679
Intangible amortization expense 634 634 650
Other operating expense 5,618 5,288 5,419
Total other expense 16,149 15,543 16,147
Income before income taxes 7,786 7,159 6,335
Provision for income taxes 2,091 2,156 1,802
Net Income $5,695 $5,003 $4,533
Earnings per share:
Basic $0.26 $0.23 $0.21
Diluted $0.26 $0.23 $0.20
Dividends per share $0.135 $0.135 $0.135
Weighted average number of shares:
Basic 22,150,784 22,104,216 22,088,798
Diluted 22,263,301 22,225,063 22,200,120
NOTE: Per share data is based on the weighted average number of shares
outstanding adjusted for stock dividends or splits calculated under
the treasury method.
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except share and per share data)
Three months ended
12/31/04 09/30/04
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $25 $21
Interest and dividends on securities 3,742 3,040
Interest and fees on loans and
loans held for sale 27,452 26,693
Total interest income 31,219 29,754
Interest expense:
Interest on deposits 9,392 9,058
Interest on borrowings 4,596 4,576
Total interest expense 13,988 13,634
Net interest income 17,231 16,120
Provision for loan losses 1,425 3,750
Net interest income after
provision for loan losses 15,806 12,370
Other income:
Trust, financial planning,
brokerage and insurance sales 2,065 1,793
Customer service fees 1,784 1,854
Gains on sale of loans 1,117 1,008
Security gains/(losses), net (3,348) (60)
Other operating income 1,870 2,626
Total other income 3,488 7,221
Other expense:
Salaries, wages, pension and benefits 6,489 8,211
Occupancy expense 802 875
Furniture and equipment expense 533 520
Taxes other than income taxes 510 557
Intangible amortization expense 684 868
Other operating expense 6,030 4,652
Total other expense 15,048 15,683
Income before income taxes 4,246 3,908
Provision for income taxes 972 1,029
Net Income $3,274 $2,879
Earnings per share:
Basic $0.15 $0.13
Diluted $0.15 $0.13
Dividends per share $0.135 $0.135
Weighted average number of shares:
Basic 22,066,952 21,910,942
Diluted 22,211,146 22,052,059
NOTE: Per share data is based on the weighted average number of shares
outstanding adjusted for stock dividends or splits calculated under
the treasury method.
Unizan Financial Corp.
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
9/30/05 6/30/05 3/31/05
ASSETS
Federal funds sold and interest
bearing deposits with banks $7,843 $6,040 $13,149
Securities, net 427,149 424,481 419,750
Federal Home Loan Bank stock,
at cost 37,471 37,016 36,572
Loans originated and held for sale 2,385 3,988 2,066
Loans:
Commercial, financial and
agricultural 220,980 225,747 236,062
Aircraft 76,440 83,342 93,527
Commercial real estate 593,322 597,409 610,945
Residential real estate 421,066 431,219 437,819
Consumer 435,618 442,003 442,783
Total Loans less unearned
income 1,747,426 1,779,720 1,821,136
Less allowance for loan losses 24,426 25,273 25,868
Net loans 1,723,000 1,754,447 1,795,268
Total earning assets 2,222,274 2,251,245 2,292,673
Cash and cash equivalents 57,232 55,965 45,347
Premises and equipment, net 21,719 21,818 22,111
Goodwill 91,971 91,971 91,971
Other intangible assets 13,556 14,190 14,823
Accrued interest receivable and
other assets 77,605 78,221 76,884
Total Assets $2,459,931 $2,488,137 $2,517,941
LIABILITIES
Deposits:
Non-interest bearing deposits $219,659 $213,026 $209,872
Demand - interest bearing 185,664 196,842 202,651
Savings and money market 517,668 527,784 528,266
Certificates and other time
deposits 867,339 891,351 884,518
Total deposits 1,790,330 1,829,003 1,825,307
Total borrowings 323,293 316,261 353,791
Accrued taxes, expenses and other
liabilities 26,826 25,698 25,973
Total Liabilities 2,140,449 2,170,962 2,205,071
SHAREHOLDERS' EQUITY
Common stock, $1.00 stated value 22,173 22,123 22,123
Paid-in capital 221,570 220,537 220,669
Retained earnings 81,125 78,423 76,405
Stock held by deferred compensation
compensation plan (2,183) (2,189) (2,243)
Treasury stock, at cost (15) (92) (646)
Accumulated other comprehensive loss (3,188) (1,627) (3,438)
Total Shareholders' Equity 319,482 317,175 312,870
Total Liabilities and
Shareholders' Equity $2,459,931 $2,488,137 $2,517,941
Unizan Financial Corp.
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
12/31/04 09/30/04
ASSETS
Federal funds sold and interest
bearing deposits with banks $7,139 $8,408
Securities, net 422,566 404,104
Federal Home Loan Bank stock, at cost 36,170 35,788
Loans originated and held for sale 1,256 2,353
Loans:
Commercial, financial and agricultural 268,339 266,262
Aircraft 106,845 117,497
Commercial real estate 607,470 610,061
Residential real estate 439,866 441,338
Consumer 450,617 465,591
Total Loans less unearned income 1,873,137 1,900,749
Less allowance for loan losses 26,356 26,387
Net loans 1,846,781 1,874,362
Total earning assets 2,340,268 2,351,402
Cash and cash equivalents 52,057 61,072
Premises and equipment, net 22,226 22,787
Goodwill 91,971 91,971
Other intangible assets 15,473 16,157
Accrued interest receivable and
other assets 77,195 76,500
Total Assets $2,572,834 $2,593,502
LIABILITIES
Deposits:
Non-interest bearing deposits $231,004 $213,621
Demand - interest bearing 219,249 229,938
Savings and money market 526,972 517,295
Certificates and other time deposits 863,501 856,914
Total deposits 1,840,726 1,817,768
Total borrowings 394,373 439,400
Accrued taxes, expenses and other
liabilities 25,810 26,148
Total Liabilities 2,260,909 2,283,316
SHAREHOLDERS' EQUITY
Common stock, $1.00 stated value 22,123 22,123
Paid-in capital 220,741 221,141
Retained earnings 74,854 74,560
Stock held by deferred compensation plan (2,279) (2,112)
Treasury stock, at cost (1,137) (1,647)
Accumulated other comprehensive loss (2,377) (3,879)
Total Shareholders' Equity 311,925 310,186
Total Liabilities and
Shareholders' Equity $2,572,834 $2,593,502
Unizan Financial Corp.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
2005 2005 2005 2004 2004
EARNINGS 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Net Interest
Income FTE (1) 17,197 17,350 17,056 17,510 16,400
Provision for
loan losses 1,650 1,429 1,295 1,425 3,750
Other income 8,666 7,064 7,004 6,836 7,281
Security gains/
(losses), net - - - (3,348) (60)
Other expenses 16,149 15,543 16,147 15,048 15,683
FTE adjustment (1) 278 283 283 279 280
Net income 5,695 5,003 4,533 3,274 2,879
Net income per
share - diluted 0.26 0.23 0.20 0.15 0.13
PERFORMANCE RATIOS
Return on average
assets (ROA) 0.91% 0.80% 0.73% 0.50% 0.44%
Return on average
common equity (ROE) 7.06% 6.34% 5.84% 4.16% 3.71%
Tangible return on
average tangible
assets (2) 1.02% 0.91% 0.83% 0.60% 0.55%
Tangible return on
avg. tangible
common equity (2) 11.31% 10.35% 9.67% 7.20% 6.85%
Net interest margin
FTE (1) 3.05% 3.07% 3.02% 2.97% 2.75%
Efficiency ratio(3) 59.99% 61.07% 64.41% 58.86% 62.03%
MARKET DATA
Book value/common
share 14.44 14.34 14.16 14.17 14.06
Tangible book value/
common share 9.67 9.54 9.33 9.29 9.16
Period-end common
share mkt value 24.21 26.79 26.00 26.35 27.61
Market as a %
of book 167.6% 186.8% 183.6% 186.0% 196.4%
Cash dividends/
common share 0.135 0.135 0.135 0.135 0.135
Common stock
dividend payout
ratio 52.4% 59.7% 65.8% 91.0% 103.3%
Average basic
common shares 22,150,784 22,104,216 22,088,798 22,066,952 21,910,942
Average diluted
common shares 22,263,301 22,225,063 22,200,120 22,211,146 22,052,059
Period end common
shares 22,122,286 22,119,382 22,098,482 22,017,113 22,059,010
Common stock
market
capitalization 535,581 592,578 574,561 580,151 609,049
ASSET QUALITY
Gross charge-offs 3,480 3,164 2,558 7,194 2,952
Net charge-offs 2,496 2,024 1,782 5,095 2,285
Delinquency Ratio 1.46% 1.32% 1.38% 1.60% 1.60%
Allowance for loan
losses 24,426 25,273 25,868 26,356 26,387
Non-accrual loans 29,535 30,341 29,423 28,294 26,628
Past due 90 days or
more & accruing 6 387 726 1,856 2,546
Other assets owned 2,619 2,133 1,604 2,612 2,254
Nonperforming assets
(NPAs) 32,160 32,861 31,753 32,762 31,428
Restructured loans 5,247 5,302 5,339 2,430 2,461
Net charge-off
ratio 0.57% 0.45% 0.39% 1.08% 0.47%
Allowance/loans 1.40% 1.42% 1.42% 1.41% 1.39%
NPL to loans 1.69% 1.72% 1.65% 1.61% 1.53%
NPA to loans + other
assets 1.84% 1.84% 1.74% 1.75% 1.65%
Allowance to NPLs 82.69% 82.25% 85.80% 87.42% 90.45%
AVERAGE BALANCES
Assets 2,470,685 2,497,436 2,518,865 2,579,517 2,615,839
Deposits 1,810,309 1,822,754 1,817,157 1,820,310 1,845,818
Loans 1,765,161 1,797,618 1,830,693 1,883,193 1,935,094
Earning assets 2,239,808 2,269,382 2,291,068 2,349,292 2,376,178
Shareholders'
equity 320,130 316,386 314,984 313,231 308,618
ENDING BALANCES
Assets 2,459,931 2,488,137 2,517,941 2,572,834 2,593,502
Deposits 1,790,330 1,829,003 1,825,307 1,840,726 1,817,768
Loans 1,749,811 1,783,708 1,823,202 1,874,393 1,903,102
Goodwill and
other intangible
assets 105,527 106,161 106,794 107,444 108,128
Earning assets 2,222,274 2,251,245 2,292,673 2,340,268 2,351,402
Total shareholders'
equity 319,482 317,175 312,870 311,925 310,186
(1) - FTE defined as fully tax-equivalent
(2) - Net income adjusted for amortization of intangibles, after tax,
divided by average total assets or average total equity, as
applicable, reduced by average goodwill and other intangibles.
(3) - Excludes amortization of intangibles. Fourth quarter 2004 excludes
$246 pre-tax merger related professional fees and severance
accruals. Third quarter 2004 excludes $488 pre-tax gain on sale of
Wooster Financial Center and $476 pre-tax merger related
professional fees and severance accruals.
Certain previously reported amounts may have been reclassified to conform
to current reporting presentation.
DATASOURCE: Unizan Financial Corp.
CONTACT: Investors, Roger L. Mann, President and Chief Executive
Officer, +1-330-438-1118, or +1-866-235-7203, or , or Media,
Sandy K. Upperman, Vice President, Corporate Communications, +1-330-438-4858,
or , both of Unizan Financial Corp.
Web site: http://www.unizan.com/
Company News On-Call: http://www.prnewswire.com/comp/127633.html