Unizan Financial (NASDAQ:UNIZ)
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Unizan Reports First Quarter 2005 Financial Results
CANTON, Ohio, April 25 /PRNewswire-FirstCall/ -- Unizan Financial Corp.
(NASDAQ:UNIZ), today reported net income of $4.5 million for the quarter ended
March 31, 2005, or $0.20 per diluted share, a 38% increase compared with net
income of $3.3 million or, $0.15 per diluted share, reported for the quarter
ended December 31, 2004 and an 88% increase compared with net income of $2.4
million, or $0.11 per diluted share, for the quarter ended March 31, 2004.
"Our first quarter results reflect solid improvement in our net income during
the period," said Roger L. Mann, Unizan Financial Corp. President and Chief
Executive Officer. "I am extremely pleased with the commitment demonstrated by
our staff as we enter the 2005 calendar year, "concluded Mann.
Net interest income -- Net interest income was $16.8 million for the three
months ended March 31, 2005, down 2.7% from the previous quarter and 10.7% from
the same quarter last year. These decreases were primarily attributed to lower
levels of average earning assets which declined 2.5% during the first quarter
of 2005 as compared to the fourth quarter of 2004 and 7.9% as compared to the
first quarter of 2004. The net interest margin was 3.02% for the first quarter
of 2005 compared to 2.97% for the fourth quarter of 2004 and 3.08% for the
first quarter of 2004.
Provision for loan losses -- The provision for loan losses was $1.3 million for
the three months ended March 31, 2005, compared to $1.4 million for the
previous quarter and $1.0 million for the first quarter of 2004. Net
charge-offs for the three months ended March 31, 2005 were $1.8 million
compared to $1.5 million for the fourth quarter of 2004 and $1.0 million for
the first quarter of 2004. The increase in net charge-offs from the fourth
quarter of 2004 was mainly attributed to increases in commercial and commercial
real estate loan charge-offs while the increase from the year ago quarter was
generally in all loan categories. The allowance for loan losses as a percentage
of total loans was 1.42%, 1.41% and 1.25% at March 31, 2005, December 31, 2004
and March 31, 2004, respectively.
Other income -- Other income, excluding net gains and losses on securities, was
$7.0 million for the first quarter of 2005 compared with $6.8 million for the
fourth quarter of 2004 and $6.9 million for the first quarter of 2004.
Gains on sales of loans for the 2005 quarter totaled $1.2 million, compared
with $1.1 million in the fourth quarter of 2004 and $1.2 million in the first
quarter of 2004. Gains from the sale of the guaranteed portion of Small
Business Administration (SBA) and other government guaranteed loans were $1.2
million in the first quarter of 2005, compared with $1.0 million in the fourth
quarter of 2004 and $797 thousand in the first quarter of 2004. Gains on the
sale of residential mortgage loans in the first quarter of 2005 were $30
thousand compared with $113 thousand in the fourth quarter of 2004 and $448
thousand in the first quarter of 2004. Fees associated with the mortgage
related business have declined from a year ago as a result of the rise in
interest rates and fewer customers benefiting from refinancing.
No securities gains or losses were recorded in the first quarter of 2005 as
compared to net losses of $3.3 million in the fourth quarter of 2004 and net
gains of $71 thousand in the first quarter of 2004. The fourth quarter 2004
results included a $3.4 million pre-tax other-than-temporary impairment charge
associated with adjustable rate perpetual preferred stock issued by Fannie Mae
(FNMA) and Freddie Mac (FHLMC).
Other expense -- Other expense was $16.1 million for the three months ended
March 31, 2005, up $1.1 million, or 7.3%, from the previous quarter and down
$5.3 million, or 24.6%, from the same quarter last year. The increase from the
prior quarter was primarily attributed to a $1.5 million increase in salaries
and benefits expense. Such expenses in the fourth quarter of 2004 benefited
from various accrual reductions related to benefits, incentive compensation and
year end bonuses that resulted from declines in staffing levels throughout the
year as well as the Company not meeting various performance targets. The
decrease from the year ago quarter primarily related to a $4.8 million decrease
in salaries and benefits which was mainly attributed to the prior year period
including a $3.6 million pre-tax expense recognized in relation to the exercise
of certain stock options. Also, salaries and benefits expense in general have
declined as a result of lower staffing levels. Total full time equivalent
employees have decreased from 728 at March 31, 2004 to 627 at December 31, 2004
and 619 at March 31, 2005. Other expense also included accounting and other
professional fees totaling $1.1 million, $1.4 million and $1.5 million for the
quarters ended March 31, 2005, December 31, 2004 and March 31, 2004,
respectively. Such fees for the March 2005 and the December 2004 quarters were
primarily attributed to activities associated with implementing the provisions
of Section 404 of the Sarbanes- Oxley Act of 2002 as well as filling staffing
vacancies, whereas the March 2004 quarter included $1.2 million of
merger-related professional fees as compared to minimal amounts in the March
2005 and December 2004 quarters.
Provision for income taxes -- The effective tax rate for the three months ended
March 31, 2005 was 28.4% compared to 22.9% in the previous quarter and 28.9% in
the same quarter last year. Lower pre-tax earnings levels in the fourth quarter
of 2004 and first quarter of 2004 as compared to the first quarter of 2005 had
the effect of reducing the effective tax rate, while the non tax deductible
nature of a portion of the merger-related expenses in the first quarter of 2004
had the effect of increasing the effective tax rate in that period.
Balance sheet -- Total assets at March 31, 2005 were $2.52 billion compared to
$2.57 billion at the end of 2004 and $2.76 billion a year ago. Assets declined
2.1% from year end 2004 and 8.8% from March 31, 2004. Compared to a year ago,
securities declined by 12.6% while loans decreased by 7.6%. These declines
continue 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, fewer lending officers originating new
loans due to turnover of customer relationship managers in areas where there is
significant market overlap with Huntington Bancshares Incorporated
("Huntington" - see Pending Merger below) and the sale of the trust preferred
securities portfolio, which totaled $41.8 million, in the second quarter of
2004. Total deposits decreased by $15.4 million, or 0.8%, from the end of 2004
and by $120.8 million, or 6.2%, from a year ago while total borrowings have
declined by $40.6 million from year end 2004 and by $129.3 million from a year
ago.
Asset quality -- At March 31, 2005, non-performing loans were $30.1 million, or
1.66% of total loans, compared to $30.2 million, or 1.61% of total loans, at
December 31, 2004 and $28.6 million, or 1.45% of total loans, at March 31,
2004. Delinquent loans to total loans declined to 1.38% at March 31, 2005
compared to 1.60% at December 31, 2004 and 1.67% at March 31, 2004.
Non-performing loans, excluding the portion of the loans guaranteed by the
government, were $23.4 million at March 31, 2005 compared to $22.9 million at
December 31, 2004 and $21.7 million at March 31, 2004. The $554 thousand or
2.4% increase in non-performing loans since December 31, 2004 is primarily
attributed to a $556 thousand increase in non-performing residential real
estate loans and a $192 thousand increase in non-performing home equity loans.
The $1.7 million increase in non-performing loans from March 31, 2004 was
mainly due to a $947 thousand increase in non-performing aircraft loans and a
$764 thousand increase in non-performing commercial real estate loans.
Pending Merger
As previously announced, the Company has extended its agreement to merge with
Huntington to January 27, 2006. As reported, Huntington continues to have
ongoing discussions with the staff of the Securities and Exchange Commission
("SEC") regarding resolution of its previously announced formal investigation
into certain financial accounting matters relating to fiscal years 2002 and
earlier and certain related disclosure matters. Also, Huntington has entered
into formal supervisory agreements with its banking regulators, the Federal
Reserve Board and Office of the Comptroller of the Currency, providing for a
comprehensive action plan designed to address its financial reporting and
accounting policies, procedures and controls, and its corporate governance
practices. Huntington remains in active dialogue with banking regulators
concerning these and related matters and is working diligently to resolve them
in a full and comprehensive manner. Pending the successful resolution of these
matters, Huntington has indicated its intention to resubmit its applications
for regulatory approval of the merger with Unizan Financial Corp.
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.
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
3/31/05 12/31/04 09/30/04
ASSETS
Federal funds sold and interest
bearing deposits with banks $13,149 $7,139 $8,408
Securities, net 419,750 422,566 404,104
Federal Home Loan Bank stock, at
cost 36,572 36,170 35,788
Loans originated and held for sale 2,066 1,256 2,353
Loans:
Commercial, financial and
agricultural 236,062 268,339 266,262
Aircraft 93,527 106,845 117,497
Commercial real estate 610,945 607,470 610,061
Residential real estate 437,819 439,866 441,338
Consumer 442,783 450,617 465,591
Total Loans less unearned
income 1,821,136 1,873,137 1,900,749
Less allowance for loan losses 25,868 26,356 26,387
Net loans 1,795,268 1,846,781 1,874,362
Total earning assets 2,292,673 2,340,268 2,351,402
Cash and cash equivalents 45,347 52,057 61,072
Premises and equipment, net 22,111 22,226 22,787
Goodwill 91,971 91,971 91,971
Other intangible assets 14,823 15,473 16,157
Accrued interest receivable and
other assets 76,884 77,195 76,500
Total Assets $2,517,941 $2,572,834 $2,593,502
LIABILITIES
Deposits:
Non-interest bearing deposits $209,872 $231,004 $213,621
Demand - interest bearing 202,651 219,249 229,938
Savings 528,266 526,972 517,295
Certificates and other time
deposits 884,518 863,501 856,914
Total deposits 1,825,307 1,840,726 1,817,768
Total borrowings 353,791 394,373 439,400
Accrued taxes, expenses and other
liabilities 25,973 25,810 26,148
Total Liabilities 2,205,071 2,260,909 2,283,316
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
100,000,000 shares authorized;
22,123,069 shares issued) 22,123 22,123 22,123
Paid-in capital 220,669 220,741 221,141
Retained earnings 76,405 74,854 74,560
Stock held by deferred compensation
plan, 127,063; 128,400; 122,209;
119,274 and 118,616 shares at cost,
respectively (2,243) (2,279) (2,112)
Treasury stock, 24,587; 43,956;
64,059; 327,256 and 368,389
shares at cost, respectively (646) (1,137) (1,647)
Accumulated other comprehensive loss (3,438) (2,377) (3,879)
Total Shareholders' Equity 312,870 311,925 310,186
Total Liabilities and
Shareholders' Equity $2,517,941 $2,572,834 $2,593,502
Unizan Financial Corp.
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
06/30/04 03/31/04
ASSETS
Federal funds sold and interest
bearing deposits with banks $5,446 $5,080
Securities, net 408,021 487,316
Federal Home Loan Bank stock, at
cost 35,410 35,061
Loans originated and held for sale 2,118 4,744
Loans:
Commercial, financial and
agricultural 269,219 258,677
Aircraft 126,824 134,889
Commercial real estate 646,900 662,289
Residential real estate 446,738 449,057
Consumer 469,236 464,323
Total Loans less unearned
income 1,958,917 1,969,235
Less allowance for loan losses 24,922 24,611
Net loans 1,933,995 1,944,624
Total earning assets 2,409,912 2,501,436
Cash and cash equivalents 81,111 71,924
Premises and equipment, net 23,891 24,641
Goodwill 91,971 91,971
Other intangible assets 17,025 17,836
Accrued interest receivable and
other assets 77,546 77,987
Total Assets $2,676,534 $2,761,184
LIABILITIES
Deposits:
Non-interest bearing deposits $221,027 $214,844
Demand - interest bearing 242,709 257,012
Savings 494,598 531,437
Certificates and other time
deposits 908,903 942,850
Total deposits 1,867,237 1,946,143
Total borrowings 483,485 483,093
Accrued taxes, expenses and other
liabilities 23,786 25,262
Total Liabilities 2,374,508 2,454,498
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
100,000,000 shares authorized;
22,123,069 shares issued) 22,123 22,123
Paid-in capital 223,200 224,722
Retained earnings 74,654 74,461
Stock held by deferred compensation
plan, 127,063; 128,400; 122,209;
119,274 and 118,616 shares at cost,
respectively (2,039) (2,016)
Treasury stock, 24,587; 43,956;
64,059; 327,256 and 368,389
shares at cost, respectively (9,282) (10,308)
Accumulated other comprehensive
loss (6,630) (2,296)
Total Shareholders'
Equity 302,026 306,686
Total Liabilities and
Shareholders' Equity $2,676,534 $2,761,184
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except share and per share data)
Three months ended
3/31/05 12/31/04 09/30/04
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $71 $25 $21
Interest and dividends on securities 3,868 3,742 3,040
Interest and fees on loans and loans
held for sale 26,889 27,452 26,693
Total interest income 30,828 31,219 29,754
Interest expense:
Interest on deposits 9,920 9,392 9,058
Interest on borrowings 4,135 4,596 4,576
Total interest expense 14,055 13,988 13,634
Net interest income 16,773 17,231 16,120
Provision for loan losses 1,295 1,425 3,750
Net interest income
after provision for
loan losses 15,478 15,806 12,370
Other income:
Trust, financial planning, brokerage
and insurance sales 2,247 2,065 1,793
Customer service fees 1,579 1,784 1,854
Gains on sale of loans 1,187 1,117 1,008
Security gains/(losses), net - (3,348) (60)
Other operating income 1,991 1,870 2,626
Total other income 7,004 3,488 7,221
Other expense:
Salaries, wages, pension and
benefits 7,988 6,489 8,211
Occupancy expense 908 802 875
Furniture and equipment expense 503 533 520
Taxes other than income taxes 679 510 557
Intangible amortization expense 650 684 868
Other operating expense 5,419 6,030 4,652
Total other expense 16,147 15,048 15,683
Income before income taxes 6,335 4,246 3,908
Provision for income taxes 1,802 972 1,029
Net Income $4,533 $3,274 $2,879
Earnings per share:
Basic $0.21 $0.15 $0.13
Diluted $0.20 $0.15 $0.13
Dividends per share $0.135 $0.135 $0.135
Weighted average number of shares:
Basic 22,088,798 22,066,952 21,910,942
Diluted 22,200,120 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.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except share and per share data)
Three months ended
06/30/04 03/31/04
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $13 $8
Interest and dividends on securities 4,269 4,597
Interest and fees on loans and
loans held for sale 27,573 27,674
Total interest income 31,855 32,279
Interest expense:
Interest on deposits 8,816 9,150
Interest on borrowings 4,366 4,337
Total interest expense 13,182 13,487
Net interest income 18,673 18,792
Provision for loan losses 2,950 1,000
Net interest income
after provision for
loan losses 15,723 17,792
Other income:
Trust, financial planning,
brokerage and insurance sales 2,050 1,953
Customer service fees 1,848 1,844
Gains on sale of loans 686 1,245
Security gains/(losses), net 181 71
Other operating income 2,419 1,901
Total other income 7,184 7,014
Other expense:
Salaries, wages, pension and benefits 10,494 12,774
Occupancy expense 795 867
Furniture and equipment expense 572 534
Taxes other than income taxes 610 630
Intangible amortization expense 811 825
Other operating expense 5,252 5,784
Total other expense 18,534 21,414
Income before income taxes 4,373 3,392
Provision for income taxes 1,242 980
Net Income $3,131 $2,412
Earnings per share:
Basic $0.14 $0.11
Diluted $0.14 $0.11
Dividends per share $0.135 $0.135
Weighted average number of shares:
Basic 21,771,251 21,733,289
Diluted 21,989,444 21,972,349
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)
For the three months ending
03/31/2005 03/31/2004
Interest income:
Interest on federal funds sold
and interest bearing deposits
with banks $71 $8
Interest and dividends on securities 3,868 4,597
Interest and fees on loans
and loans held for sale 26,889 27,674
Total interest income 30,828 32,279
Interest expense:
Interest on deposits 9,920 9,150
Interest on borrowings 4,135 4,337
Total interest expense 14,055 13,487
Net interest income 16,773 18,792
Provision for loan losses 1,295 1,000
Net interest income
after provision for
loan losses 15,478 17,792
Other income:
Trust, financial planning,
brokerage and insurance sales 2,247 1,953
Customer service fees 1,579 1,844
Gains on sale of loans 1,187 1,245
Security gains, net - 71
Other operating income 1,991 1,901
Total other income 7,004 7,014
Other expense:
Salaries, wages, pension and
benefits 7,988 12,774
Occupancy expense 908 867
Furniture and equipment expense 503 534
Taxes other than income taxes 679 630
Intangible amortization expense 650 825
Other operating expense 5,419 5,784
Total other expense 16,147 21,414
Income before income taxes 6,335 3,392
Provision for income taxes 1,802 980
Net Income $4,533 $2,412
Earnings per share:
Basic $0.21 $0.11
Diluted $0.20 $0.11
Dividends per share $0.135 $0.135
Weighted average number of shares:
Basic 22,088,798 21,733,289
Diluted 22,200,120 21,972,349
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 FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
2005 2004 2004
EARNINGS 1st Qtr 4th Qtr 3rd Qtr
Net Interest Income FTE (1) $17,056 17,510 16,400
Provision for loan losses 1,295 1,425 3,750
Other income 7,004 6,836 7,281
Security gains/(losses), net - (3,348) (60)
Other expenses 16,147 15,048 15,683
FTE adjustment (1) 283 279 280
Net income $4,533 3,274 2,879
Net income per share - diluted $0.20 0.15 0.13
PERFORMANCE RATIOS
Return on average assets (ROA) 0.73% 0.50% 0.44%
Return on average common equity (ROE) 5.84% 4.16% 3.71%
Tangible return on average tangible
assets 0.83% 0.60% 0.55%
Tangible return on avg. tangible
common equity 9.67% 7.20% 6.85%
Net interest margin FTE (1) 3.02% 2.97% 2.75%
Efficiency ratio (2) 64.41% 58.86% 62.03%
MARKET DATA
Book value/common share $14.16 14.17 14.06
Tangible book value/common share 9.33 9.29 9.16
Period-end common share mkt value 26.00 26.35 27.61
Market as a % of book 183.6% 186.0% 196.4%
Cash dividends/common share $0.135 0.135 0.135
Common stock dividend payout ratio 65.8% 91.0% 103.3%
Average basic common shares 22,088,798 22,066,952 21,910,942
Average diluted common shares 22,200,120 22,211,146 22,052,059
Period end common shares 22,098,482 22,017,113 22,059,010
Common stock market capitalization $574,561 580,151 609,049
ASSET QUALITY
Gross charge-offs $2,558 2,139 2,952
Net charge-offs 1,782 1,456 2,285
Delinquency Ratio 1.38% 1.60% 1.60%
Allowance for loan losses $25,868 26,356 26,387
Non-accrual loans 29,423 28,294 26,628
Past due 90 days or more & accruing 726 1,856 2,546
Other assets owned 1,604 2,612 2,254
Nonperforming assets (NPAs) 31,753 32,762 31,428
Restructured loans 5,339 2,430 2,461
Net charge-off ratio 0.39% 0.31% 0.47%
Allowance/loans 1.42% 1.41% 1.39%
NPL to loans 1.65% 1.61% 1.53%
NPA to loans + other assets 1.74% 1.75% 1.65%
Allowance to NPLs 85.80% 87.42% 90.45%
AVERAGE BALANCES
Assets $2,518,865 2,579,517 2,615,839
Deposits 1,817,157 1,820,310 1,845,818
Loans 1,830,693 1,883,193 1,935,094
Earning assets 2,291,068 2,349,292 2,376,178
Shareholders' equity 314,984 313,231 308,618
ENDING BALANCES
Assets $2,517,941 2,572,834 2,593,502
Deposits 1,825,307 1,840,726 1,817,768
Loans 1,823,202 1,873,137 1,900,749
Goodwill and other intangible assets 106,794 107,444 108,128
Earning assets 2,292,673 2,340,268 2,351,402
Total shareholders' equity 312,870 311,925 310,186
(1) - FTE defined as fully tax-equivalent
(2) - Excludes amortization of intangibles and impairment of goodwill
expenses. Fourth quarter 2004 excludes $246 pre-tax merger related
professional fees and severance accrual. Third quarter 2004 excludes
$488 pre-tax gain on sale of Wooster Financial Center and $476 pre-
tax merger related professional fees and severance accrual. Second
quarter 2004 excludes $1,427 pre-tax stock option expense and
$823 pre-tax merger related professional fees and severance accrual.
First quarter 2004 excludes $3,638 pre-tax stock option expense and
$1,203 pre-tax merger related professional fees.
Certain previously reported amounts may have been reclassified to conform
to current reporting presentation.
Unizan Financial Corp.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
2004 2004
EARNINGS 2nd Qtr 1st Qtr
Net Interest Income FTE (1) 18,959 19,061
Provision for loan losses 2,950 1,000
Other income 7,003 6,943
Security gains/(losses), net 181 71
Other expenses 18,534 21,414
FTE adjustment (1) 286 269
Net income 3,131 2,412
Net income per share - diluted 0.14 0.11
PERFORMANCE RATIOS
Return on average assets (ROA) 0.46% 0.36%
Return on average common equity (ROE) 4.12% 3.17%
Tangible return on average tangible
assets 0.57% 0.45%
Tangible return on avg. tangible
common equity 7.49% 6.05%
Net interest margin FTE (1) 3.09% 3.08%
Efficiency ratio (2) 59.60% 60.52%
MARKET DATA
Book value/common share 13.86 14.10
Tangible book value/common share 8.86 9.05
Period-end common share mkt value 26.10 24.91
Market as a % of book 188.3% 176.7%
Cash dividends/common share 0.135 0.135
Common stock dividend payout ratio 93.8% 121.7%
Average basic common shares 21,771,251 21,733,289
Average diluted common shares 21,989,444 21,972,349
Period end common shares 21,795,813 21,754,680
Common stock market capitalization 568,871 541,909
ASSET QUALITY
Gross charge-offs 3,372 1,683
Net charge-offs 2,639 1,000
Delinquency Ratio 1.45% 1.67%
Allowance for loan losses 24,922 24,611
Non-accrual loans 22,173 23,152
Past due 90 days or more & accruing 5,612 5,488
Other assets owned 3,850 1,793
Nonperforming assets (NPAs) 31,635 30,433
Restructured loans 2,496 2,530
Net charge-off ratio 0.54% 0.20%
Allowance/loans 1.27% 1.25%
NPL to loans 1.42% 1.45%
NPA to loans + other assets 1.61% 1.54%
Allowance to NPLs 89.70% 85.93%
AVERAGE BALANCES
Assets 2,713,206 2,728,886
Deposits 1,895,935 1,954,707
Loans 1,964,587 1,971,090
Earning assets 2,469,808 2,486,312
Shareholders' equity 305,902 306,128
ENDING BALANCES
Assets 2,676,534 2,761,184
Deposits 1,867,237 1,946,143
Loans 1,958,917 1,969,235
Goodwill and other intangible assets 108,996 109,807
Earning assets 2,409,912 2,501,436
Total shareholders' equity 302,026 306,686
(1) - FTE defined as fully tax-equivalent
(2) - Excludes amortization of intangibles and impairment of goodwill
expenses. Fourth quarter 2004 excludes $246 pre-tax merger related
professional fees and severance accrual. Third quarter 2004 excludes
$488 pre-tax gain on sale of Wooster Financial Center and $476 pre-
tax merger related professional fees and severance accrual. Second
quarter 2004 excludes $1,427 pre-tax stock option expense and
$823 pre-tax merger related professional fees and severance accrual.
First quarter 2004 excludes $3,638 pre-tax stock option expense and
$1,203 pre-tax merger related professional fees.
Certain previously reported amounts may have been reclassified to conform
to current reporting presentation.
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Three Months Ended March 31,
2005
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $14,071 $71 2.05 %
Securities 446,304 4,138 3.76
Total loans (2) 1,830,693 26,902 5.96
Total interest-earning assets (3) 2,291,068 31,111 5.51
Nonearning assets:
Cash and due from banks 48,892
Other nonearning assets 205,060
Allowance for loan losses (26,155)
Total assets $2,518,865
Interest bearing liabilities:
Demand deposits $208,896 $336 0.65 %
Savings deposits 520,053 2,505 1.95
Time deposits 870,996 7,079 3.30
Total deposits 1,599,945 9,920 2.51
Subordinated note 20,619 489 9.62
Other borrowings 340,748 3,646 4.34
Total borrowings 361,367 4,135 4.64
Total interest bearing liabilities 1,961,312 14,055 2.91
Noninterest bearing liabilities:
Demand deposits 217,212
Other liabilities 25,357
Shareholders' equity 314,984
Total liabilities and equity $2,518,865
Net interest income and interest
rate spread (3) $17,056 2.60 %
Net interest margin (4) 3.02 %
(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 March 31,
2004
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $4,395 $8 0.73 %
Securities 510,827 4,853 3.82
Total loans (2) 1,971,090 27,687 5.65
Total interest-earning assets (3) 2,486,312 32,548 5.27
Nonearning assets:
Cash and due from banks 57,353
Other nonearning assets 209,843
Allowance for loan losses (24,622)
Total assets $2,728,886
Interest bearing liabilities:
Demand deposits $258,295 $369 0.57 %
Savings deposits 531,844 1,296 0.98
Time deposits 955,864 7,485 3.15
Total deposits 1,746,003 9,150 2.11
Subordinated note 20,619 505 9.85
Other borrowings 422,995 3,832 3.64
Total borrowings 443,614 4,337 3.93
Total interest bearing liabilities 2,189,617 13,487 2.48
Noninterest bearing liabilities:
Demand deposits 208,704
Other liabilities 24,437
Shareholders' equity 306,128
Total liabilities and equity $2,728,886
Net interest income and interest
rate spread (3) $19,061 2.79 %
Net interest margin (4) 3.08 %
(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.
NONPERFORMING AND UNDERPERFORMING ASSETS
(dollars in thousands)
3/31/05 12/31/04 09/30/04 06/30/04 03/31/04
Non-performing loans:
Commercial $1,588 $1,689 $1,683 $3,180 $1,294
Commercial real estate 6,477 6,453 5,620 5,433 5,713
Government guaranteed 8,690 9,266 9,438 7,926 9,334
Aircraft 2,950 2,826 2,450 291 2,003
Residential real estate 8,931 8,375 8,577 9,563 8,713
Direct installment loans 28 111 63 45 161
Indirect installment loans 67 204 160 155 212
Home equity 1,418 1,226 1,183 1,192 1,210
Total non-performing loans 30,149 30,150 29,174 27,785 28,640
Less: Government guaranteed
amount 6,739 7,294 7,023 6,080 6,965
Total non-performing loans
excluding government
guaranteed amount $23,410 $22,856 $22,151 $21,705 $21,675
Total non-performing loans $30,149 $30,150 $29,174 $27,785 $28,640
Other assets owned 1,604 2,612 2,254 3,850 1,793
Total non-performing assets 31,753 32,762 31,428 31,635 30,433
Less: Government guaranteed
amount 7,085 7,976 7,759 6,816 7,541
Total non-performing assets
excluding government
guaranteed amount $24,668 $24,786 $23,669 $24,819 $22,892
Restructured loans $5,339 $2,430 $2,461 $2,496 $2,530
Ratio of:
Non-performing loans to total
loans 1.66% 1.61% 1.53% 1.42% 1.45%
Non-performing assets to
total assets 1.26% 1.27% 1.21% 1.18% 1.10%
Non-performing assets to
total loans + other assets 1.74% 1.75% 1.65% 1.61% 1.54%
Allowance to total loans 1.42% 1.41% 1.39% 1.27% 1.25%
Allowance to non-performing
loans 85.80% 87.42% 90.45% 89.70% 85.93%
Ratio of (excluding
government guaranteed
amount):
Non-performing loans to total
loans 1.29% 1.22% 1.17% 1.11% 1.10%
Non-performing assets to
total assets 0.98% 0.96% 0.91% 0.93% 0.83%
Non-performing assets to
total loans + other assets 1.35% 1.32% 1.24% 1.26% 1.16%
Allowance to non-performing
loans 110.50% 115.31% 119.12% 114.82% 113.55%
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
3/31/05 12/31/04 09/30/04
Average loans and leases:
Commercial $159,226 $187,149 $195,561
Commercial real estate 607,789 607,848 636,693
Government guaranteed 75,817 72,949 64,643
Aircraft 100,834 111,681 121,690
Residential real estate 439,089 441,000 444,772
Indirect installment loans 93,285 101,154 108,903
Home equity 322,376 326,656 326,582
Other consumer 32,277 34,756 36,250
Total average loans and leases $1,830,693 $1,883,193 $1,935,094
Net charge-offs (recoveries):
Commercial $284 $65 $175
Commercial real estate 419 87 772
Government guaranteed 84 26 353
Aircraft 17 64 (47)
Residential real estate 153 261 236
Indirect installment loans 542 436 416
Home equity 135 217 164
Other consumer 148 300 216
Total $1,782 $1,456 $2,285
Net charge-offs (recoveries) to
average loans and leases (annualized):
Commercial 0.71% 0.14% 0.36%
Commercial real estate 0.28% 0.06% 0.49%
Government guaranteed 0.44% 0.14% 2.18%
Aircraft 0.07% 0.23% -0.15%
Residential real estate 0.14% 0.24% 0.21%
Indirect installment loans 2.32% 1.72% 1.53%
Home equity 0.17% 0.27% 0.20%
Other consumer 1.83% 3.45% 2.38%
Total 0.39% 0.31% 0.47%
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
06/30/04 03/31/04
Average loans and leases:
Commercial $198,914 $188,992
Commercial real estate 653,138 664,241
Government guaranteed 61,280 61,676
Aircraft 132,578 133,725
Residential real estate 448,009 453,362
Indirect installment loans 116,422 123,426
Home equity 317,320 307,116
Other consumer 36,926 38,552
Total average loans and leases $1,964,587 $1,971,090
Net charge-offs (recoveries):
Commercial $425 $(17)
Commercial real estate 712 261
Government guaranteed 141 255
Aircraft 548 -
Residential real estate (21) (50)
Indirect installment loans 384 371
Home equity 196 11
Other consumer 254 169
Total $2,639 $1,000
Net charge-offs (recoveries) to
average loans and leases (annualized):
Commercial 0.85% -0.04%
Commercial real estate 0.44% 0.16%
Government guaranteed 0.92% 1.65%
Aircraft 1.65% 0.00%
Residential real estate -0.02% -0.04%
Indirect installment loans 1.32% 1.20%
Home equity 0.25% 0.01%
Other consumer 2.75% 1.75%
Total 0.54% 0.20%
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