SAVANNAH, Ga., Oct. 22, 2008 (GLOBE NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income for the third quarter 2008 of $1,638,000 compared to $2,381,000 in the third quarter 2007. Net income per diluted share was 28 cents compared to 40 cents per diluted share in the third quarter of 2007, a decrease of 30 percent. The decline in third quarter earnings results primarily from a higher provision for loan losses and a lower net interest margin in 2008 as compared to 2007. Third quarter 2008 earnings include the net income derived from the previously announced acquisition of Minis & Co., Inc. ("Minis") on August 31, 2007.
Total assets increased 10 percent to $981 million at September 30, 2008, up $92 million from $889 million a year earlier. Loans, excluding loans held for sale, were $854 million compared to $778 million one year earlier, an increase of 9.8 percent. Deposits totaled $803 million and $746 million at September 30, 2008 and 2007, respectively, an increase of 7.6 percent. Shareholders' equity increased 6.7 percent to $80 million at September 30, 2008 from $75 million at September 30, 2007. The Company's total capital to risk-weighted assets ratio was 11.58 percent, well in excess of the 10 percent required by the regulatory agencies to maintain well-capitalized status.
John Helmken, President and CEO, said, "Our net income for the first nine months of the year of over $5 million is both satisfying and disappointing. Satisfying in that profitability in these uncertain economic times speaks to the stability and sound banking practices that will allow us to continue serving existing customers while providing capacity to bring new customers into our Company. However, we are disappointed to see a decrease in earnings over the third quarter of last year. We are not accustomed to a single digit return on equity or an efficiency ratio in excess of 60%. Management is taking steps to improve both while continuing our focus on asset quality. We cannot overstate the value of experienced bankers in key roles at times like these."
The allowance for loan losses was $12,390,000, or 1.45 percent of loans at September 30, 2008 compared to $9,842,000 or 1.26 percent of total loans a year earlier. Nonperforming assets were $28,195,000 or 3.28 percent of total loans and other real estate owned at September 30, 2008 compared to $7,908,000 or 1.01 percent at September 30, 2007. Third quarter net charge-offs were $1,560,000 compared to net charge-offs of $310,000 in the same period in 2007. The provision for loan losses for the third quarter of 2008 was $1,505,000 compared to $635,000 for the third quarter of 2007.
Helmken added, "We have a strong capital and liquidity position and, more importantly, a strong and growing customer base, all of which aids us now and as we look toward the future. The establishment of our special asset subsidiary at the end of the quarter allows us to concentrate even more directly on our problem credits and will serve us well in the short and long run. This quarter we also celebrated the opening of our second branch of Bryan Bank & Trust in Richmond Hill, GA. This new facility contains our new operations center as well. While we remain diligent in our credit underwriting, we are also on the street inviting people to experience our high touch style of banking and demonstrating to them the value of our 18 plus years in our communities and the flexibility of our community banks."
Net interest income was flat in the third quarter 2008 versus the third quarter 2007. Third quarter net interest margin declined to 3.63 percent in 2008 from 3.95 percent in 2007 primarily due to lower loan market rates, competitive local deposit pricing and growth in higher cost deposits. The third quarter 2008 net interest margin declined 0.14 percent, or 14 basis points, from the 3.77 percent margin for the second quarter 2008.
Noninterest income increased $857,000, or 74 percent in the third quarter of 2008 versus the same period in 2007 due to higher trust and asset management fees of $334,000, service charges on deposits of $174,000 and a non-operating hedging related gain of $403,000 partially offset by $55,000 in lower mortgage related income.
Noninterest expense increased to $6,234,000, up $1,058,000 or 20 percent, in the third quarter 2008 compared to the third quarter 2007. Third quarter 2008 noninterest expense included $320,000 of expenses related to Minis. Noninterest expense also included $121,000 of higher FDIC insurance premiums and approximately $83,000 of costs related to other real estate owned and loan costs. The remainder of the increase was due to higher personnel, occupancy and equipment and other expense.
Today, the Board of Directors approved a regular quarterly cash dividend of 12.5 cents per share payable on November 17, 2008 to shareholders of record on October 31, 2008.
The Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank, N.A. ("Savannah"), Bryan Bank & Trust (Richmond Hill, Georgia) ("Bryan"), Harbourside Community Bank (Hilton Head Island, SC) ("Harbourside") and Minis & Co., Inc., is headquartered in Savannah, Georgia and began operations in 1990. Its primary businesses include loan, deposit, trust, asset management, and mortgage origination services provided to customers.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements identified by words or phrases such as "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "assume," "outlook," "continue," "seek," "plans," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. These statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. There can be no assurance that these transactions will occur or that the expected benefits associated therewith will be achieved. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond our ability to control or predict. These factors include, but are not limited to, those found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.
The Savannah Bancorp, Inc. and Subsidiaries
Third Quarter Financial Highlights
September 30, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
%
Balance Sheet Data at September 30 2008 2007 Change
-------------------------------------------------------------------
Total assets $ 981,341 $ 889,196 10
Interest-earning assets 914,010 844,287 8.3
Loans 854,447 778,262 9.8
Allowance for loan losses 12,390 9,842 26
Non-accruing loans 17,753 5,028 NM
Loans past due 90 days - accruing 4,274 1,728 NM
Other real estate owned 6,168 1,152 NM
Net charge-offs 4,204 642 NM
Deposits 803,483 745,878 7.7
Interest-bearing liabilities 807,041 717,357 13
Shareholders' equity 79,595 75,164 5.9
Allowance for loan losses to total
loans 1.45% 1.26% 15
Nonperforming assets to total loans
and other real estate owned 3.28% 1.02% NM
Loan to deposit ratio 106.34% 104.34% 1.9
Equity to assets 8.11% 8.45% (4.0)
Tier 1 capital to risk-weighted
assets 10.32% 11.04% (6.5)
Total capital to risk-weighted
assets 11.58% 12.29% (5.8)
Outstanding shares 5,934 5,917 0.3
Book value per share $ 13.41 $ 12.70 5.6
Tangible book value per share $ 12.96 $ 12.09 7.2
Market value per share $ 13.25 $ 24.69 (46)
Performance Data for the
Third Quarter
-------------------------------------------------------------------
Net income $ 1,638 $ 2,381 (31)
Return on average assets 0.68% 1.08% (37)
Return on average equity 8.24% 13.04% (37)
Net interest margin 3.63% 3.95% (8.1)
Efficiency ratio 60.69% 54.65% 11
Per share data:
Net income - basic $ 0.28 $ 0.41 (32)
Net income - diluted $ 0.28 $ 0.40 (30)
Dividends $ 0.125 $ 0.120 4.2
Average shares (000s):
Basic 5,930 5,862 1.2
Diluted 5,943 5,928 0.3
Performance Data for the
First Nine Months
-------------------------------------------------------------------
Net income $ 5,228 $ 7,283 (28)
Return on average assets 0.74% 1.14% (35)
Return on average equity 8.88% 13.94% (36)
Net interest margin 3.70% 4.08% (9.3)
Efficiency ratio 61.21% 54.60% 12
Per share data:
Net income - basic $ 0.88 $ 1.25 (30)
Net income - diluted $ 0.88 $ 1.23 (28)
Dividends $ 0.375 $ 0.360 4.2
Average shares (000s):
Basic 5,929 5,823 1.8
Diluted 5,949 5,905 0.7
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
September 30,
------------------------------------------------------------------
2008 2007
------------------------------------------------------------------
Assets
Cash and due from banks $ 14,968 $ 16,211
Federal funds sold 11,570 6,747
Interest-bearing deposits 4,221 2,073
------------------------------------------------------------------
Cash and cash equivalents 30,759 25,031
Securities available for sale, at fair value
(amortized cost of $61,200 in 2008 and
$62,192 in 2007) 61,803 62,171
Loans held for sale 326 41
Loans, net of allowance for loan losses
of $12,390 in 2008 and $9,842 in 2007 842,057 768,420
Premises and equipment, net 11,196 6,525
Other real estate owned 6,168 1,152
Bank-owned life insurance 6,160 5,926
Goodwill and other intangible assets, net 2,678 2,773
Other assets 20,194 17,157
------------------------------------------------------------------
Total assets $ 981,341 $ 889,196
==================================================================
Liabilities
Deposits:
Noninterest-bearing $ 86,290 $ 90,342
Interest-bearing demand 118,951 107,879
Savings 14,572 17,043
Money market 186,659 188,947
Time deposits 397,011 341,667
------------------------------------------------------------------
Total deposits 803,483 745,878
Short-term borrowings 67,782 48,453
FHLB advances - long-term 11,756 3,058
Subordinated debt 10,310 10,310
Other liabilities 8,415 6,333
------------------------------------------------------------------
Total liabilities 901,746 814,032
------------------------------------------------------------------
Shareholders' equity
Preferred stock, par value $1 per share:
authorized 10,000,000 shares,
none issued -- --
Common stock, par value $1 per share:
authorized 20,000,000 shares; issued
5,933,789 and 5,916,797 shares in 2008 and
2007, respectively 5,934 5,917
Additional paid-in capital 38,496 38,260
Retained earnings 33,514 30,870
Treasury stock, 318 in 2008 and 2007 (4) (4)
Accumulated other comprehensive income, net 1,655 121
------------------------------------------------------------------
Total shareholders' equity 79,595 75,164
------------------------------------------------------------------
Total liabilities and shareholders' equity $ 981,341 $ 889,196
==================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
For the Nine Months and Five Quarters Ending
September 30, 2008 and 2007
($ in thousands, except per share data)
-----------------------------------------------------------------
(Unaudited)
-----------------------------------------------------------------
For the Nine Months Ended
-----------------------------------------------------------------
September 30,
------------------ %
2008 2007 Chg
---------------------------------------------------------------
Interest and dividend income
Loans, including fees $ 40,991 $ 44,420 (7.7)
Loans held for sale 52 84 (38)
Investment securities 2,264 2,140 5.8
Deposits with banks 131 245 (47)
Federal funds sold 117 426 (73)
-------------------------------------------------------
Total interest and dividend income 43,555 47,315 (7.9)
-------------------------------------------------------
Interest expense
Deposits 16,873 19,534 (14)
Short-term borrowings & sub debt 1,760 2,518 (30)
FHLB advances 214 367 (42)
-------------------------------------------------------
Total interest expense 18,847 22,419 (16)
-------------------------------------------------------
Net interest income 24,708 24,896 (0.8)
Provision for loan losses 3,730 1,530 144
-------------------------------------------------------
Net interest income after the
provision for loan losses 20,978 23,366 (10)
-------------------------------------------------------
Noninterest income
Trust and asset management fees 2,157 744 190
Service charges on deposits 1,434 1,034 39
Mortgage related income, net 235 517 (55)
Other operating income 1,616 928 74
(Loss) gain on sale of OREO (1) (6) (83)
Gain on sale of securities 134 -- NM
-------------------------------------------------------
Total noninterest income 5,575 3,217 73
-------------------------------------------------------
Noninterest expense
Salaries and employee benefits 10,441 8,721 20
Occupancy and equipment 2,766 2,336 18
Information technology 1,212 1,194 1.5
Other operating expense 4,116 3,099 33
-------------------------------------------------------
Total noninterest expense 18,535 15,350 21
-------------------------------------------------------
Income before income taxes 8,018 11,233 (29)
Income tax expense 2,790 3,950 (29)
-------------------------------------------------------
Net income $ 5,228 $ 7,283 (28)
=======================================================
Net income per share:
Basic $ 0.88 $ 1.25 (30)
=======================================================
Diluted $ 0.88 $ 1.23 (28)
=======================================================
Average basic shares (000s) 5,929 5,823 1.8
Average diluted shares (000s) 5,949 5,905 0.7
Performance Ratios
Return on average equity 8.88% 13.94% (36)
Return on average assets 0.74% 1.14% (35)
Net interest margin 3.70% 4.08% (9.3)
Efficiency ratio 61.21% 54.60% 12
Average equity 78,616 69,856 13
Average assets 949,813 855,336 11
Average interest-earning assets 890,124 819,640 8.6
-------------------------------------------------------------------
(Unaudited)
-------------------------------------------------------------------
2008 2007 Q3-08/
Third Second First Fourth Third 03-07
Quarter Quarter Quarter Quarter Quarter % Chg
-------------------------------------------------------------------
Interest and
dividend income
Loans, including
fees $13,333 $13,447 $14,211 $15,016 $15,196 (12)
Loans held for sale 20 20 12 14 15 (33)
Investment
securities 722 760 782 767 794 (9.1)
Deposits with banks 30 34 67 100 44 (32)
Federal funds sold 31 33 53 45 130 (76)
-----------------------------------------------------------
Total interest and
dividend income 14,136 14,294 15,125 15,942 16,179 (13)
-----------------------------------------------------------
Interest expense
Deposits 5,391 5,358 6,124 6,881 6,963 (23)
Short-term
borrowings & sub
debt 412 467 881 935 860 (52)
FHLB advances 82 83 49 46 48 71
-----------------------------------------------------------
Total interest
expense 5,885 5,908 7,054 7,862 7,871 (25)
-----------------------------------------------------------
Net interest income 8,251 8,386 8,071 8,080 8,308 (0.7)
Provision for loan
losses 1,505 1,155 1,070 3,145 635 137
-----------------------------------------------------------
Net interest income
after the provision
for loan losses 6,746 7,231 7,001 4,935 7,673 (12)
-----------------------------------------------------------
Noninterest income
Trust and asset
management fees 713 720 724 769 379 88
Service charges on
deposits 513 534 387 349 339 51
Mortgage related
income, net 86 86 63 98 141 (39)
Other operating
income 726 300 590 315 305 138
(Loss) gain on sale
of OREO (17) 17 (1) (38) -- NM
Gain on sale of
securities -- 134 -- -- -- NM
-----------------------------------------------------------
Total noninterest
income 2,021 1,791 1,763 1,493 1,164 74
-----------------------------------------------------------
Noninterest expense
Salaries and
employee benefits 3,479 3,489 3,473 3,125 2,919 19
Occupancy and
equipment 967 910 889 958 796 21
Information
technology 424 395 393 422 388 9.3
Other operating
expense 1,364 1,357 1,395 1,285 1,073 27
-----------------------------------------------------------
Total noninterest
expense 6,234 6,151 6,150 5,790 5,176 20
-----------------------------------------------------------
Income before
income taxes 2,533 2,871 2,614 638 3,661 (31)
Income tax expense 895 985 910 285 1,280 (30)
-----------------------------------------------------------
Net income $1,638 $1,886 $1,704 $353 $2,381 (31)
===========================================================
Net income per share:
Basic $0.28 $0.32 $0.29 $0.06 $0.41 (32)
===========================================================
Diluted $0.28 $0.32 $0.29 $0.06 $0.40 (30)
===========================================================
Average basic
shares (000s) 5,930 5,931 5,928 5,923 5,862 1.2
Average diluted
shares (000s) 5,943 5,952 5,951 5,968 5,928 0.3
Performance Ratios
Return on average
equity 8.24% 9.65% 8.76% 1.83% 13.04% (37)
Return on average
assets 0.68% 0.80% 0.73% 0.15% 1.08% (37)
Net interest margin 3.63% 3.77% 3.70% 3.72% 3.95% (8.1)
Efficiency ratio 60.69% 60.44% 62.54% 60.48% 54.65% 11
Average equity 79,035 78,596 78,210 74,447 72,436 9.1
Average assets 964,762 949,937 934,756 910,785 875,532 10
Average interest
-earning assets 901,992 892,397 867,022 865,430 837,586 7.7
Capital Resources
The banking regulatory agencies have adopted capital requirements that specify the minimum level for which no prompt corrective action is required. In addition, the FDIC assesses FDIC insurance premiums based on certain "well-capitalized" risk-based and equity capital ratios. As of September 30, 2008, the Company and the Subsidiary Banks exceeded the minimum requirements necessary to be classified as "well-capitalized."
Total tangible equity capital for the Company was $76.9 million, or 7.84 percent of total assets at September 30, 2008. The table below includes the regulatory capital ratios for the Company and each Subsidiary Bank along with the minimum capital ratio and the ratio required to maintain a well-capitalized regulatory status.
($ in Well- thousands) Company Savannah Bryan Harbourside Minimum Capitalized -------------------------------------------------------------------- Qualifying Capital Tier 1 capital $85,262 $53,486 $19,851 $ 6,970 -- -- Total capital 95,611 60,196 22,456 7,797 -- -- Leverage Ratios Tier 1 capital to average assets 8.84% 8.42% 8.76% 7.34% 4.00% 5.00% Risk-based Ratios Tier 1 capital to risk- weighted assets 10.32% 9.99% 9.53% 10.61% 4.00% 6.00% Total capital to risk- weighted assets 11.58% 11.25% 10.78% 11.86% 8.00% 10.00%
Tier 1 and total capital at the Company level includes $10 million of subordinated debt issued to the Company's nonconsolidated subsidiaries. Total capital also includes the allowance for loan losses up to 1.25 percent of risk-weighted assets.
The capital ratios are significantly above the well-capitalized threshold. The Company currently has capacity to add approximately $12 million of trust preferred borrowings and to the capital markets, if needed, to maintain the well-capitalized status of the Subsidiary Banks.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2008 2007
----------------------------------------------------------------
Third Second First Fourth Third
($ in thousands) Quarter Quarter Quarter Quarter Quarter
----------------------------------------------------------------
Allowance for loan losses
Balance at beginning of
period $12,445 $12,128 $12,864 $ 9,842 $ 9,517
Provision for loan
losses 1,505 1,155 1,070 3,145 635
Net charge-offs (1,560) (838) (1,806) (123) (310)
----------------------------------------------------------------
Balance at end of period $12,390 $12,445 $12,128 $12,864 $ 9,842
================================================================
As a % of loans 1.45% 1.48% 1.45% 1.59% 1.26%
As a % of nonperforming
loans 56.25% 66.61% 69.26% 73.83% 145.68%
As a % of nonperforming
assets 43.94% 59.18% 62.08% 65.85% 124.46%
Net charge-offs as a %
of average loans (a) 0.75% 0.40% 0.90% 0.07% 0.17%
Risk element assets
Nonaccruing loans $17,753 $16,991 $16,915 $14,663 $5,028
Loans past due 90 days
- accruing 4,274 1,693 596 2,761 1,728
----------------------------------------------------------------
Total nonperforming
loans 22,027 18,684 17,511 17,424 6,756
Other real estate owned 6,168 2,346 2,025 2,112 1,152
----------------------------------------------------------------
Total nonperforming
assets $28,195 $21,030 $19,536 $19,536 $ 7,908
================================================================
Loans past due 30-89
days $ 8,841 $ 6,528 $11,014 $ 4,723 $ 5,302
Nonperforming loans as a
% of loans 2.58% 2.22% 2.10% 2.24% 0.87%
Nonperforming assets as
a % of loans and other
real estate owned 3.28% 2.50% 2.33% 2.51% 1.01%
Nonperforming assets as
a % of capital (b) 30.65% 23.13% 21.47% 21.92% 9.30%
(a) Annualized
(b) Capital includes the allowance for loan losses
The Savannah Bancorp, Inc. & Subsidiaries
Loan Concentration Schedule
September 30, 2008 and December 31, 2007
%
% of % of Dollar
($ in thousands) 9/30/08 Total 12/31/07 Total Change
---------------------------------------------------------------------
Non-residential real estate
Owner-occupied $138,570 16 $118,714 15 17
Non owner-occupied 122,867 14 118,904 15 3
Construction 24,036 3 33,923 4 (29)
Commercial land and lot
development 41,690 5 38,127 5 9
------------------------------------------------------------
Total non-residential real
estate 327,163 38 309,668 39 6
------------------------------------------------------------
Residential real estate
Owner-occupied - 1-4
family 84,589 10 83,828 10 1
Non owner-occupied - 1-4
family 130,804 15 114,992 14 14
Construction 52,239 6 57,541 7 (9)
Residential land and lot
development 110,071 13 109,718 14 0
Home equity lines 50,586 6 43,322 5 17
------------------------------------------------------------
Total residential real
estate 428,289 50 409,401 50 5
------------------------------------------------------------
Total real estate loans 755,452 88 719,069 89 5
Commercial 80,991 10 71,370 9 13
Consumer 18,260 2 18,692 2 (2)
Unearned fees, net (256) -- (480) -- (47)
------------------------------------------------------------
Total loans, net of
unearned fees $854,447 100 $808,651 100 6
=====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - Third Quarter,
2008 and 2007
Average Balance Average Rate
-------------------- ----------------
QTD QTD QTD QTD
9/30/08 9/30/07 9/30/08 9/30/07
----------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 5,530 3,370 2.15 5.18 Interest-bearing deposits
57,053 60,393 4.88 5.13 Investments - taxable
1,912 2,320 5.39 6.16 Investments - non-taxable
6,356 10,183 1.94 5.06 Federal funds sold
1,189 825 6.67 7.21 Loans held for sale
829,952 760,495 6.37 7.94 Loans (c)
--------------------
901,992 837,586 6.22 7.68 Total interest-earning assets
----------------
62,770 37,946 Noninterest-earning assets
--------------------
$ 964,762 $ 875,532 Total assets
====================
Liabilities and equity
Deposits
$ 118,182 $ 114,157 1.15 2.04 NOW accounts
15,450 17,722 0.90 0.99 Savings accounts
134,961 138,104 2.42 4.20 Money market accounts
Money market accounts -
71,632 37,577 2.40 5.30 institutional
150,487 135,026 4.28 5.38 CDs, $100M or more
95,919 76,391 3.26 4.97 CDs, broker
133,062 123,740 4.01 5.07 Other time deposits
--------------------
719,693 642,717 2.97 4.30 Total interest-bearing deposits
11,802 3,108 2.76 6.13 FHLB advances - long-term
52,162 50,760 2.05 5.06 Short-term borrowings
10,310 10,310 5.50 8.20 Subordinated debt
--------------------
Total interest-bearing
793,967 706,895 2.94 4.42 liabilities
----------------
83,562 88,654 Noninterest-bearing deposits
8,198 7,547 Other liabilities
79,035 72,436 Shareholders' equity
--------------------
$ 964,762 $ 875,532 Liabilities and equity
====================
3.28 3.26 Interest rate spread
================
3.63 3.95 Net interest margin
================
Net interest income
$ 108,025 $ 130,691 Net earning assets
====================
$ 803,255 $ 731,371 Average deposits
====================
2.66 3.78 Average cost of deposits
================
103% 104% Average loan to deposit ratio
====================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
---------------- ---------------
QTD QTD Vari-
9/30/08 9/30/07 ance Rate Volume
---------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 30 $ 44 $ (14) $ (26) $ 12
Investments - taxable 702 781 (79) (38) (41)
Investments - non-taxable 26 36 (10) (5) (5)
Federal funds sold 31 130 (99) (80) (19)
Loans held for sale 20 15 5 (1) 6
Loans (c) 13,334 15,212 (1,878) (3,009) 1,131
--------------------------
Total interest-earning
assets 14,143 16,218 (2,075) (3,082) 1,007
------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 344 586 (242) (256) 14
Savings accounts 35 44 (9) (4) (5)
Money market accounts 822 1,462 (640) (620) (20)
Money market accounts -
institutional 433 502 (69) (275) 206
CDs, $100M or more 1,625 1,831 (206) (374) 168
CDs, broker 787 956 (169) (329) 160
Other time deposits 1,345 1,582 (237) (331) 94
--------------------------
Total interest-bearing
deposits 5,391 6,963 (1,572) (2,155) 583
FHLB advances - long-term 82 48 34 (26) 60
Short-term borrowings 267 647 (380) (388) 8
Subordinated debt 143 213 (70) (70) --
--------------------------
Total interest-bearing
liabilities 5,883 7,871 (1,988) (2,637) 649
------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $ 8,260 $ 8,347 $ (87) $ (445) $ 358
==========================================
Net earning assets
Average deposits
Average cost of deposits
Average loan to deposit
ratio
(a) This table shows the changes in interest income and interest
expense for the comparative periods based on either changes in
average volume or changes in average rates for interest-earning
assets and interest-bearing liabilities. Changes which are not
solely due to rate changes or solely due to volume changes are
attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $7 and $39 in
the third quarter 2008 and 2007, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - First Nine Months,
2008 and 2007
Average Balance Average Rate
--------------------- -----------------
YTD YTD YTD YTD
9/30/08 9/30/07 9/30/08 9/30/07
----------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 6,038 $ 6,246 2.89 5.24 Interest-bearing deposits
57,646 56,146 5.09 4.99 Investments - taxable
1,915 2,107 5.50 7.23 Investments - non-taxable
6,618 10,928 2.36 5.21 Federal funds sold
968 1,510 7.16 7.44 Loans held for sale
816,939 742,703 6.69 8.01 Loans(c)
--------------------
890,124 819,640 6.52 7.74 Total interest-earning assets
----------------
59,689 35,696 Noninterest-earning assets
---------------------
$ 949,813 $ 855,336 Total assets
=====================
Liabilities and equity
Deposits
$ 118,278 $ 114,477 1.29 2.05 NOW accounts
15,773 18,301 0.90 1.00 Savings accounts
136,467 125,176 2.47 4.39 Money market accounts
Money market accounts -
63,994 37,577 2.83 4.33 institutional
148,809 125,933 4.67 5.35 CDs, $100M or more
78,462 74,866 3.66 4.83 CDs, broker
131,476 121,651 4.42 5.03 Other time deposits
---------------------
693,259 617,981 3.24 4.23 Total interest-bearing
deposits
9,812 9,454 2.91 5.19 FHLB advances - long-term
65,973 49,416 2.60 5.11 Short-term borrowings
10,310 10,310 6.09 8.16 Subordinated debt
---------------------
Total interest-bearing
779,354 687,161 3.22 4.36 liabilities
----------------
83,738 91,527 Noninterest-bearing deposits
8,105 6,792 Other liabilities
78,616 69,856 Shareholders' equity
------------ ----------
$ 949,813 $ 855,336 Liabilities and equity
============ ==========
3.30 3.38 Interest rate spread
================
3.70 4.08 Net interest margin
================
Net interest income
$ 110,770 $ 132,479 Net earning assets
=====================
$ 776,997 $ 709,508 Average deposits
=====================
2.89 3.68 Average cost of deposits
================
105% 105% Average loan to deposit ratio
=====================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
---------------- ---------------
YTD YTD Vari-
9/30/08 9/30/07 ance Rate Volume
----------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 131 $ 245 $ (114) $ (110) $ (4)
Investments - taxable 2,203 2,095 108 42 66
Investments - non-taxable 79 114 (35) (27) (8)
Federal funds sold 117 426 (309) (234) (75)
Loans held for sale 52 84 (32) (3) (29)
Loans (c) 40,997 44,468 (3,471) (7,359) 3,888
--------------------------
Total interest-earning
assets 43,579 47,432 $(3,853) (7,507) 3,654
-------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 1,141 1,752 (611) (653) 42
Savings accounts 106 137 (31) (14) (17)
Money market accounts 2,529 4,106 (1,577) (1,804) 227
Money market accounts -
institutional 1,361 1,218 143 (423) 566
CDs, $100M or more 5,219 5,038 181 (643) 824
CDs, broker 2,153 2,706 (553) (658) 105
Other time deposits 4,364 4,577 (213) (557) 344
--------------------------
Total interest-bearing
deposits 16,873 19,534 (2,661) (4,593) 1,932
FHLB advances - long-term 214 367 (153) (162) 9
Short-term borrowings 1,289 1,889 (600) (931) 331
Subordinated debt 471 629 (158) (160) 2
--------------------------
Total interest-bearing
liabilities 18,847 22,419 (3,572) (5,881) 2,309
-------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $24,732 $25,013 $ (281) $(1,626) $1,345
===========================================
Net earning assets
Average deposits
Average cost of deposits
Average loan to deposit
ratio
(a) This table shows the changes in interest income and interest
expense for the comparative periods based on either changes in
average volume or changes in average rates for interest-earning
assets and interest-bearing liabilities. Changes which are not
solely due to rate changes or solely due to volume changes are
attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $24 and $117 in
2008 and 2007, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.