FRANKLIN BANK CORP. 
By (Logo: http://www.newscom.com/cgi-bin/prnh/20060108/FBCLOGO)
Franklin had a net loss of
"During the fourth quarter of 2007 we significantly increased our
allowance for credit losses by approximately
We also recorded a
"We have experienced income growth in our community bank and expect this
to continue. Deposit fees are up 59% over last year and 8% over last quarter.
Organic loan growth was 19.9% over last year and asset quality in the
community bank remains excellent. With the addition of seven branches during
2007, we now have 45 branches in 31 communities and believe our Texas banking
franchise is well positioned for the future," stated
Financial Results:
Comparison of the years ended December 31, 2007 and 2006:
-- Franklin had a net loss of $45.2 million or $1.85 per diluted
share. This compares to net income of $15.5 million or $0.65 per
share in 2006.
-- Community banking deposits increased 38% to $2.0 billion.
-- Deposit fees rose 59%.
-- Franklin's assets increased 4% to $5.7 billion.
Comparison of the quarters ended December 31, 2007 and 2006:
-- Franklin had a net loss of $66.1 million or $2.64 per diluted share
compared to a net loss of $4.0 million or $0.17 per diluted share
for 2006.
-- Net interest income increased 11%.
Earnings
Franklin had net loss, available to common stockholders, for the year of
For the quarter ended
For the year ended
Net interest income was
For the years ended
For the quarter ended
For the years ended
Non-interest expense was
Goodwill Impairment
As previously noted, Franklin recorded a
Franklin's community banking business continues to grow profitability and perform well. The goodwill was created by the acquisition of 8 community banks and 2 deposit acquisitions. Franklin believes that the community banking business has been, and continues to be, the core value of the company. For 2007, excluding acquisitions, total loan growth from the community bank was 19.9%, fee income growth exceeded 50% and deposits grew 5%.
Financial Condition
At
Franklin's loan portfolio totaled approximately
Franklin's builder business is geographically diversified over 23 states.
The largest concentrations are in Texas (34%), Florida (12%) and Arizona with
8%. The following is the breakdown of the principal balances, by type and
location, of this portfolio that exceed 2% of the total portfolio as of
State Acquisition Development Construction Total %
Texas $18,651 $161,075 $241,609 $421,335 34 %
Florida 30,680 72,306 45,932 148,918 12 %
Arizona 1,592 44,820 54,883 101,295 8 %
Nevada 41,201 27,562 68,763 6 %
New York 16,594 37,275 53,869 4 %
Ohio 12,800 40,741 53,541 4 %
Georgia 19,524 48,996 68,520 6 %
Pennsylvania 34,285 16,972 51,257 4 %
Michigan 11,490 3,883 33,486 48,859 4 %
California 28,405 14,964 43,369 4 %
South Carolina - 37,516 37,516 3 %
Illinois 3,936 27,871 31,807 3 %
Other 2,723 60,281 34,712 97,716 8 %
Total $65,136 $499,110 $662,519 $1,226,765 100 %
Franklin's single family portfolio is also geographically diversified over
49 states. The largest concentration of this portfolio is in California and
Texas. The following table is the geographic location of the single family
mortgage loan portfolio for states that exceed 3% of the total portfolio as of
State Amount %
California $598,369 33 %
Texas 243,929 13 %
Florida 137,445 7 %
New York 75,721 4 %
Virginia 64.480 4 %
Massachusetts 64,360 4 %
Maryland 55,850 3 %
New Jersey 54,112 3 %
Illinois 50,038 3 %
Washington 46,582 3 %
Other 444,407 23 %
Total $1,835,292
Franklin increased its allowance for loan losses by
At
Nonperforming assets as a percentage of total assets increased to 2.18% or
The increase in nonperforming assets at
During the fourth quarter, Franklin had an increase in builder line REO.
This increase is comprised of an in-substance foreclosure of the previously
disclosed bankruptcy of a California builder of
The table below details Franklin's nonperforming assets as of the dates
indicated (in thousands):
December 31, September 30, December 31,
2007 2007 2006
Nonperforming Loans
("NPLs")
Single family $8,166 $2,908 $12,383
Builder lines 75,361 26,104 110
Other commercial 334 182 384
Consumer 2,170 972 383
Total NPL's 86,031 30,166 13,260
REO, net
Single family 15,751 16,603 3,803
Builder lines 21,672 20,486 15,606
Other commercial 1,115 1,650 1,854
Total REO 38,538 38,739 21,263
Total Nonperforming Assets $124,569 $68,905 $34,523
Corporate Overview
Through its subsidiary,
Forward-Looking Information
This announcement includes forward-looking statements. These forward-looking statements include comments with respect to the goals, objectives, expectations, strategies, and the results of the company's operations and business. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. Franklin does not undertake, and hereby disclaims, any duty to update these forward-looking statements even though the situation and circumstances may change in the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of factors could cause future company results to differ materially from these statements.
Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which Franklin operates, and changes in economic, political, regulatory and technological conditions, including continuation for a prolonged period of current conditions in the housing, mortgage and credit markets. Other specific risks related to Franklin include the following: potential inability to successfully implement its growth business strategy; the integration of businesses that may be acquired; Franklin's limited operating history; the potential unavailability of external financing; reliance on brokered deposits; the geographic concentration of its business, commercial real estate and consumer loan portfolios, including a significant concentration in California; the potential unavailability of single family loans for bulk purchase; the portion of the single family loan portfolio that is less than one year old; fraud and negligence by loan applicants and others with whom Franklin does business; credit risk associated with smaller borrowers in its mortgage banker finance operation; the effect of changes in the extensive regulatory scheme to which the company is subject; the possibility that allowance for credit losses may be insufficient to cover actual losses; interruption in or breach of the information systems; the potential inability to obtain the third-party information services on which it relies; and environmental risks associated with foreclosure on real estate properties. Franklin cautions that the foregoing list is not exhaustive. Investors should carefully consider the aforementioned factors as well as other uncertainties and events.
Conference Call
A conference call to discuss the financial results will be held on
FRANKLIN BANK CORP.
CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)
December 31, September 30, December 31,
2007 2007 2006
Assets
Cash and cash equivalents $217,289 $94,233 $87,783
Receivables under resale
agreements 156,236 108,124 -
Trading securities 47,223 93,382 -
Securities held to maturity,
at amortized cost 399,297 384,563 -
Securities available for sale,
at fair value 283,055 226,005 348,952
FHLB stock and other
investments 91,149 91,405 99,937
Loans, net
Single family 1,865,042 1,941,191 2,826,730
Commercial 1,969,818 1,980,085 1,750,701
Consumer 263,258 333,293 110,302
Allowance for credit losses (40,347) (16,825) (11,671)
Loans, net 4,057,771 4,237,744 4,676,062
Goodwill 185,250 251,876 153,487
Other intangible assets, net 30,087 33,791 14,548
Premises and equipment, net 44,083 38,072 28,208
Real estate owned 38,820 39,032 22,031
Other assets 172,324 148,414 106,359
Total assets $5,722,584 $5,746,641 $5,537,367
Liabilities
Deposits $2,947,612 $2,883,477 $2,631,964
FHLB advances 2,100,693 2,107,249 2,309,745
Convertible senior notes 79,865 82,758 -
Subordinated notes 123,250 123,238 108,093
Other liabilities 58,709 71,755 54,839
Total liabilities 5,310,129 5,268,477 5,104,641
Stockholders' equity
Preferred stock 86,250 86,250 86,250
Common stock 254 254 236
Paid-in capital 306,580 306,217 281,207
Retained earnings 20,516 86,614 67,380
Accumulated other
comprehensive income:
-Unrealized gains (losses)
on securities available for
sale, net (1,145) (1,171) (2,347)
Total stockholders'
equity 412,455 478,164 432,726
$5,722,584 $5,746,641 $5,537,367
FRANKLIN BANK CORP.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Quarter Ended
December 31, September 30, December 31,
2007 2007 2006
Interest income
Cash equivalents and short-term
investments $3,987 $2,818 $1,706
Trading securities 1,116 1,527 -
Securities 10,278 7,592 4,754
Loans 70,541 74,294 75,338
Total interest income 85,922 86,231 81,798
Interest expense
Deposits 29,478 28,766 28,182
FHLB advances 27,213 26,706 28,057
Convertible senior notes 855 1,064 -
Subordinated notes 2,297 2,309 2,044
Other 11 8 11
Total interest expense 59,854 58,853 58,294
Net interest income 26,068 27,378 23,504
Provision for credit losses 29,240 2,539 2,440
Net interest income (loss) after
provision for credit losses (3,172) 24,839 21,064
Non-interest income
Loan fee income 1,788 2,023 1,534
Deposit fees 3,093 2,865 1,615
Gain (loss) on sale of single family
loans and mortgage servicing rights
valuation, net 199 947 (13,123)
Gain on sale of student loans, net 130 216 -
Gain on early extinguishment of debt 596 2,334 -
Gain on sale of securities 817 189 -
Bank owned life insurance 1,085 1,003 111
Other 943 654 1,550
Total non-interest income
(loss) 8,651 10,231 (8,313)
Non-interest expense
Salaries and benefits 10,046 10,446 9,092
Data processing 1,927 2,049 1,564
Occupancy 2,514 2,469 1,873
Professional fees 1,814 1,077 1,215
Loan expenses 591 784 432
Core deposit amortization 494 804 327
Real estate owned 5,378 540 (478)
Goodwill impairment 65,000 - -
Other 3,986 3,221 2,444
Total non-interest expenses 91,750 21,390 16,469
Income (loss) before taxes (86,271) 13,680 (3,718)
Income tax expense (benefit) (21,790) 4,514 (1,323)
Net income (loss) $(64,481) $9,166 $(2,395)
Net income (loss) available
to common stockholders $(66,099) $7,549 $(4,012)
Basic earnings per common share $(2.64) $0.30 $(0.17)
Diluted earnings per common share $(2.64) $0.30 $(0.17)
FRANKLIN BANK CORP.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Year Ended December 31,
2007 2006
Interest income
Cash equivalents and short-term
investments $12,451 $7,471
Trading securities 6,645 -
Securities 24,722 18,640
Loans 287,754 264,948
Total interest income 331,572 291,059
Interest expense
Deposits 112,134 96,587
FHLB advances 106,634 94,120
Convertible senior notes 2,704 -
Subordinated notes 8,815 7,491
Other 22 143
Total interest expense 230,309 198,341
Net interest income 101,263 92,718
Provision for credit losses 33,301 3,804
Net interest income after provision
for credit losses 67,962 88,914
Non-interest income
Loan fee income 8,195 6,611
Deposit fees 9,986 6,268
Gain (loss) on sale of single family
loans and mortgage servicing rights
valuation, net 3,620 (8,471)
Gain on sale of student loans, net 346 -
Gain on early extinguishment of debt 2,930 -
Gain (loss) on sale of securities 1,006 (2)
Bank owned life insurance 4,211 302
Other 3,036 3,965
Total non-interest income 33,330 8,673
Non-interest expense
Salaries and benefits 39,170 35,120
Data processing 7,231 6,863
Occupancy 9,015 7,464
Professional fees 4,692 3,365
Loan expenses 2,267 2,317
Core deposit amortization 2,262 1,024
Real estate owned 6,845 1,526
Goodwill impairment 65,000 -
Other 12,721 9,332
Total non-interest expenses 149,203 67,011
Income (loss) before taxes (47,911) 30,576
Income tax expense (benefit) (9,131) 11,196
Net income (loss) $(38,780) $19,380
Net income (loss) available to common
stock shareholders $(45,249) $15,517
Basic earnings per common share $(1.86) $0.66
Diluted earnings per common share $(1.85) $0.65
FRANKLIN BANK CORP.
YIELD ANALYSIS
(dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $180,600 $2,864 6.21%
Trading securities 69,270 1,116 6.39
FHLB stock and other investments 91,572 1,123 4.87
Securities available for sale 284,647 4,215 5.92
Securities held to maturity 396,295 6,063 6.12
Loans
Single family 1,902,658 28,458 5.98
Builder lines 1,283,133 23,565 7.29
Commercial real estate 536,091 10,228 7.57
Mortgage banker finance 105,414 1,888 7.10
Commercial business 81,569 1,441 7.01
Consumer 276,695 4,961 7.11
Total loans 4,185,560 70,541 6.69
Total interest-earning
assets 5,207,944 85,922 6.55
Non-interest-earning assets 563,568
Total assets $5,771,512
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $277,694 $1,960 2.80%
Money market and savings 396,071 3,011 3.02
Certificates of deposit 1,085,151 13,104 4.79
Non-interest bearing deposits 292,499 - -
Total community banking 2,051,415 18,075 3.50
Wholesale and money desk 861,365 11,403 5.25
Total deposits 2,912,780 29,478 4.02
FHLB advances 2,117,053 27,213 5.03
Convertible senior notes 80,514 855 4.16
Subordinated notes 123,246 2,297 7.29
Other borrowings 1,460 11 3.01
Total interest-bearing
liabilities 5,235,053 59,854 4.50
Non-interest-bearing liabilities and
stockholder's equity 536,459
Total liabilities and
stockholder's equity $5,771,512
Net interest income/interest rate
spread $26,068 2.05%
Net yield on interest-earning assets 2.02%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 99.48%
Quarter Ended
September 30, 2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $106,396 $1,641 6.04%
Trading securities 109,844 1,527 5.52
FHLB stock and other investments 87,694 1,177 5.32
Securities available for sale 270,118 3,742 5.54
Securities held to maturity 256,811 3,850 6.00
Loans
Single family 2,002,369 29,309 5.85
Builder lines 1,270,876 27,070 8.45
Commercial real estate 495,434 9,824 7.87
Mortgage banker finance 105,790 2,034 7.63
Commercial business 79,138 1,471 7.38
Consumer 253,250 4,586 7.19
Total loans 4,206,857 74,294 7.01
Total interest-earning
assets 5,037,720 86,231 6.79
Non-interest-earning assets 563,958
Total assets $5,601,678
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $243,397 $1,578 2.57%
Money market and savings 409,047 3,511 3.41
Certificates of deposit 1,059,804 12,641 4.73
Non-interest bearing deposits 304,251 - -
Total community banking 2,016,499 17,730 3.49
Wholesale and money desk 821,640 11,036 5.33
Total deposits 2,838,139 28,766 4.02
FHLB advances 2,015,224 26,706 5.19
Convertible senior notes 95,347 1,064 4.37
Subordinated notes 123,202 2,309 7.33
Other borrowings 724 8 4.24
Total interest-bearing
liabilities 5,072,636 58,853 4.57
Non-interest-bearing liabilities and
stockholder's equity 529,042
Total liabilities and
stockholder's equity $5,601,678
Net interest income/interest rate
spread $27,378 2.22%
Net yield on interest-earning assets 2.19%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 99.31%
Quarter Ended
December 31, 2006
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $43,446 $578 5.21%
Trading securities - - -
FHLB stock and other investments 92,003 1,128 4.86
Securities available for sale 360,561 4,754 5.71
Securities held to maturity - - -
Loans
Single family 2,842,111 40,316 5.67
Builder lines 1,099,510 23,513 8.48
Commercial real estate 326,142 6,261 7.62
Mortgage banker finance 137,353 2,580 7.45
Commercial business 38,161 701 7.29
Consumer 109,571 1,967 7.12
Total loans 4,552,848 75,338 6.57
Total interest-earning
assets 5,048,858 81,798 6.43
Non-interest-earning assets 288,310
Total assets $5,337,168
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $156,715 $609 1.54%
Money market and savings 255,158 1,982 3.08
Certificates of deposit 834,622 9,304 4.42
Non-interest bearing deposits 151,251 - -
Total community banking 1,397,746 11,895 3.38
Wholesale and money desk 1,195,497 16,287 5.41
Total deposits 2,593,243 28,182 4.31
FHLB advances 2,142,418 28,057 5.12
Convertible senior notes - - -
Subordinated notes 108,074 2,044 7.40
Other borrowings 783 11 -
Total interest-bearing
liabilities 4,844,518 58,294 4.74
Non-interest-bearing liabilities and
stockholder's equity 492,650
Total liabilities and
stockholder's equity $5,337,168
Net interest income/interest rate
spread $23,504 1.69%
Net yield on interest-earning assets 1.88%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 104.22%
FRANKLIN BANK CORP.
YEAR-TO-DATE RATE VOLUME
(dollars in thousands)
(Unaudited)
Year Ended December 31,
2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $133,919 $7,730 5.69%
Trading securities 117,589 6,645 5.65
FHLB stock and other investments 89,247 4,721 5.29
Securities available for sale 243,366 13,441 5.52
Securities held to maturity 187,470 11,281 6.02
Loans
Single family 2,084,483 121,661 5.84
Builder lines 1,253,683 102,161 8.15
Commercial real estate 461,087 35,450 7.69
Mortgage banker finance 116,877 8,696 7.44
Commercial business 65,129 4,756 7.30
Consumer 206,538 15,030 7.28
Total loans 4,187,797 287,754 6.87
Total interest-earning
assets 4,959,388 331,572 6.68
Non-interest-earning assets 495,725
Total assets $5,455,113
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $219,285 $5,215 2.38%
Money market and savings 354,447 11,594 3.27
Certificates of deposit 999,023 47,121 4.72
Non-interest bearing deposits 249,146 - -
Total community banking 1,821,901 63,930 3.51
Wholesale and money desk 902,731 48,204 5.34
Total deposits 2,724,632 112,134 4.12
FHLB advances 2,036,877 106,634 5.20
Convertible senior notes 63,913 2,704 4.23
Subordinated notes 118,381 8,815 7.34
Other borrowings 636 22 3.51
Total interest-bearing
liabilities 4,944,439 230,309 4.64
Non-interest-bearing liabilities and
stockholder's equity 510,674
Total liabilities and
stockholder's equity $5,455,113
Net interest income/interest rate
spread $101,263 2.04%
Net yield on interest-earning assets 2.06%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 100.30%
Year Ended December 31,
2006
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $66,006 $3,210 4.79%
Trading securities - - -
FHLB stock and other investments 88,704 4,261 4.80
Securities available for sale 366,164 18,640 5.09
Securities held to maturity - - -
Loans
Single family 2,796,836 151,043 5.40
Builder lines 911,932 75,415 8.27
Commercial real estate 241,556 18,148 7.51
Mortgage banker finance 150,869 10,636 7.05
Commercial business 38,968 2,730 7.01
Consumer 97,075 6,976 7.19
Total loans 4,237,236 264,948 6.25
Total interest-earning
assets 4,758,110 291,059 6.12
Non-interest-earning assets 288,485
Total assets $5,046,595
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $174,340 2,696 1.55%
Money market and savings 247,449 6,836 2.76
Certificates of deposit 778,682 31,258 4.01
Non-interest bearing deposits 154,310 - -
Total community banking 1,354,781 40,790 3.01
Wholesale and money desk 1,117,683 55,797 4.99
Total deposits 2,472,464 96,587 3.91
FHLB advances 2,020,917 94,120 4.59
Convertible senior notes - - -
Subordinated notes 108,022 7,491 6.84
Other borrowings 2,389 143 5.88
Total interest-bearing
liabilities 4,603,792 198,341 4.28
Non-interest-bearing liabilities and
stockholder's equity 442,803
Total liabilities and
stockholder's equity $5,046,595
Net interest income/interest rate
spread $92,718 1.84%
Net yield on interest-earning assets 1.98%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 103.35%
FRANKLIN BANK CORP.
FINANCIAL HIGHLIGHTS
(dollars in thousands except per share data)
(Unaudited)
Quarter Ended
December 31, September 30, December 31,
2007 2007 2006
Common share data
Ending shares
outstanding 25,369,078 25,370,936 23,588,856
Average shares
outstanding-basic 25,046,172 25,038,937 23,417,376
Average shares
outstanding-diluted 25,046,172 25,142,208 23,974,660
Basic earnings per share $(2.64) $0.30 $(0.17)
Diluted earnings per
share (2.64) 0.30 (0.17)
Common book value (period
end) $13.14 $15.74 $14.90
Common tangible book
value (period end) 5.32 5.15 7.77
Average balances
Assets $5,771,512 $5,601,678 $5,337,168
Interest-earning assets 5,207,944 5,037,720 5,048,858
Interest-bearing
liabilities 5,235,053 5,072,636 4,844,518
Ratios
ROAA (4.43%) 0.65% (0.18%)
ROACE (67.21%) 9.30% (2.69%)
Net interest spread 2.05% 2.22% 1.69%
Net yield on interest-
earning assets 2.02% 2.19% 1.88%
Efficiency Ratio 78.83%(a) 58.67% 55.33%(a)
Equity to assets (period
end) 7.21% 8.32% 7.81%
Equity to assets
(average) 8.04% 8.46% 8.18%
Tangible equity to
tangible assets (incl.
prfd) 3.88% 3.82% 5.06%
Capital ratios - (bank
only):
Leverage ratio 7.06% 7.24% 7.22%
Tier 1 risk-based
capital ratio 9.79% 9.71% 9.85%
Total risk-based
capital ratio 11.17% 10.51% 10.15%
Asset quality
Nonperforming Loans
("NPLs") $86,031 $30,166 $13,260
REO 38,538 38,739 21,263
Nonperforming Assets
("NPAs") $124,569 $68,905 $34,523
NPLs as % of loans 2.10% 0.71% 0.28%
NPAs as % of assets 2.18% 1.20% 0.62%
Allowance to period end
loan balance 0.98% 0.40% 0.25%
Allowance to average loan
balance 0.96% 0.40% 0.26%
Branch and employee data
Full-time equivalent
employees 754 788 627
Banking offices 46 46 39
Commercial lending
offices 6 7 8
Retail mortgage offices 33 45 37
Wholesale mortgage
origination offices 0 0 2
Loan portfolio
Held for sale
Single family $80,347 $71,391 $682,205
Student loans 82,030 155,475 -
Total held for sale $162,377 $226,866 $682,205
Held for investment
Single family 1,784,695 1,869,800 2,144,525
Builder lines 1,219,603 1,286,024 1,196,841
Other commercial 750,215 694,061 553,860
Consumer 181,228 177,818 110,302
Allowance for credit
losses (40,347) (16,825) (11,671)
Total held for
investment $3,895,394 $4,010,878 $3,993,857
Deposits
Community banking $1,981,334 $2,042,554 $1,440,714
Wholesale and money desk 966,278 840,923 1,191,250
Total deposits $2,947,612 $2,883,477 $2,631,964
(a) 2007 excludes goodwill impairment and 2006 excludes loss on
restructuring.
FRANKLIN BANK CORP.
FINANCIAL HIGHLIGHTS
(dollars in thousands except per share data)
(Unaudited)
Twelve Months Ended December 31,
2007 2006
Common share data
Ending shares outstanding 25,369,078 23,588,856
Average shares outstanding-
basic 24,268,353 23,393,940
Average shares outstanding-
diluted 24,484,622 23,871,951
Basic earnings per share $(1.86) $0.66
Diluted earnings per share (1.85) 0.65
Common book value (period
end) $13.14 $14.90
Common tangible book value
(period end) 5.32 7.77
Average balances
Assets $5,455,113 $5,046,595
Interest-earning assets 4,959,388 4,758,110
Interest-bearing liabilities 4,944,439 4,603,792
Ratios
ROAA (0.71%) 0.38%
ROACE (10.46%) 5.63%
Net interest spread 2.04% 1.84%
Net yield on interest-earning
assets 2.06% 1.98%
Efficiency Ratio 62.71%(a) 57.19%(a)
Equity to assets (period end) 7.21% 7.81%
Equity to assets (average) 8.32% 7.84%
Tangible equity to tangible
assets (incl. prfd) 3.88% 5.06%
Capital ratios - (bank only):
Leverage ratio 7.06% 7.22%
Tier 1 risk-based capital
ratio 9.79% 9.85%
Total risk-based capital
ratio 11.17% 10.15%
Asset quality
Nonperforming Loans ("NPLs") $86,031 $13,260
REO 38,538 21,263
Nonperforming Assets ("NPAs") $124,569 $34,523
NPLs as % of loans 2.10% 0.28%
NPAs as % of assets 2.18% 0.62%
Allowance to period end loan
balance 0.98% 0.25%
Allowance to average loan
balance 0.96% 0.28%
Branch and employee data
Full-time equivalent
employees 754 627
Banking offices 46 39
Commercial lending offices 6 8
Retail mortgage offices 33 37
Wholesale mortgage
origination offices 0 2
Loan portfolio
Held for sale
Single family $80,347 $682,205
Student loans 82,030 -
Total held for sale $162,377 $682,205
Held for investment
Single family 1,784,695 2,144,525
Builder lines 1,219,603 1,196,841
Other commercial 750,215 553,860
Consumer 181,228 110,302
Allowance for credit
losses (40,347) (11,671)
Total held for
investment $3,895,394 $3,993,857
Deposits
Community banking $1,981,334 $1,440,714
Wholesale and money desk 966,278 1,191,250
Total deposits $2,947,612 $2,631,964
(a) 2007 excludes goodwill impairment and 2006 excludes loss on
restructuring.
SOURCE
