FRANKLIN, Tenn., Jan. 21, 2011 (GLOBE NEWSWIRE) -- Tennessee Commerce Bancorp, Inc. (Nasdaq:TNCC) today reported financial results for the fourth quarter ended December 31, 2010. The Company reported net income of approximately $928,000, before the preferred dividend, or $0.08 per diluted share for the quarter ended December 31, 2010 compared with net income of $1.7 million, before the preferred dividend, or $0.35 per diluted share for the quarter ended December 31, 2009. The Company also reported net income of $3.4 million, before the preferred dividend, or $0.42 per diluted share for the twelve months ended December 31, 2010, compared to a net loss of $5.6 million, before the preferred dividend, or $1.17 per diluted share for the twelve months ended December 31, 2009.
Assets at December 31, 2010 increased $33.0 million or 2.3% from September 30, 2010. The increase in assets was mainly attributable to an increase of $48.4 million in the available-for-sale securities portfolio, which represented 8.8% of total assets at the end of the fourth quarter compared to 5.6% of total assets at the end of the third quarter. Assets at December 31, 2010 increased $69.6 million or 5.1% from December 31, 2009. Gross loans at December 31, 2010 decreased $11.9 million or 1.0% from September 30, 2010 and increased $58.5 million or 5.0% from December 31, 2009. The increase in gross loans from December 31, 2009 was mainly attributable to an increase of $48.2 million in commercial real estate during the same period. Total deposits at December 31, 2010 increased $38.0 million or 3.0% from September 30, 2010 and $56.5 million or 4.5% from December 31, 2009. The increase from December 31, 2009 was mainly attributable to an increase of $79.2 million in transactional and savings accounts.
The net interest margin improved to 3.93% for the three months ended December 31, 2010 compared to 3.77% for the linked third quarter. For the twelve months ended December 31, 2010, the net interest margin was 4.05% compared to 3.66% for the twelve months ended December 31, 2009. The improved net interest margin for 2010 was mainly attributed to a decrease of 81 basis points to the cost of interest bearing accounts during the period, which resulted in a decrease of $7.1 million or 21% in interest expense.
The increase in non-performing assets to $91.2 million at December 31, 2010 compared to $86.5 million at September 30, 2010 was mainly attributed to one relationship that totaled $3.5 million. Early stage delinquencies at December 31, 2010 improved $14.4 million from September 30, 2010 to 1.5% of total loans. Repossessed assets, consisting primarily of transportation assets, have decreased by 17% from $36.9 million at December 31, 2009 to $30.6 million at December 31, 2010. "While ATA truck tonnage index reports showed softening during the last half of the year, industry indicators point towards a positive rebound in 2011," stated Mike Sapp, President and Chief Executive Officer of Tennessee Commerce Bancorp, Inc.
The loan loss provision of $3.8 million for the fourth quarter of 2010 was the lowest provision expense recorded since the $3.3 million provision expense for the fourth quarter of 2008. Net charge-offs for the fourth quarter of 2010 amounted to $4.0 million, compared to $5.8 million for the third quarter of 2010.
Non-interest income for the quarter ended December 31, 2010 was a loss of approximately $493,000, compared to non-interest income of $1.3 million for the quarter ended September 30, 2010. The decrease in non-interest income was primarily attributable to decreased fees associated with leveraged leases.
Non-interest expenses decreased to $8.1 million or 2% for the fourth quarter of 2010 compared to $8.3 million for the linked third quarter.
"We are pleased to return to profitability and to see the rebound in our net interest margin. Although non-performing loans increased during the fourth quarter, this was driven by specific larger loans rather than a decrease of overall credit quality. Additionally, we remain focused on enhancing our capital position and reducing the level of credit risk," stated Mike Sapp.
The efficiency ratio for the fourth quarter of 2010 was relatively flat at 62.1% compared to 61.0% for the linked third quarter. The slight increase in the efficiency ratio was mainly attributed to the decrease in non-interest income during the fourth quarter when compared to the linked third quarter.
The bank continued to exceed the well capitalized regulatory guidelines at December 31, 2010, with total risk-based capital at 11.30%, Tier 1 capital at 10.05%, and Tier 1 leverage capital at 8.80%. The holding company's total risk based capital was 12.61%, Tier 1 capital was 11.30%, and Tier 1 leverage capital was 9.94%. Tangible common equity to tangible assets was 6.14% at December 31, 2010.
Fourth Quarter Conference Call
Schedule this webcast into MS-Outlook calendar (click open when prompted): http://apps.shareholder.com/PNWOutlook/t.aspx?m=44678&k=BCE1B50D
Toll-free: (877) 312-8781
International: (253) 237-1198
Tennessee Commerce will provide an online, real-time webcast and rebroadcast of its fourth quarter earnings conference call to be held at 11:00 a.m. Eastern on January 21, 2011. The live broadcast will be available online at http://www.tncommercebank.com under the Investor Relations tab.
An audio replay of the conference call will be available approximately two hours after the call's completion on our website at http://www.tncommercebank.com under the Investor Relations tab or by dialing one of the following Dial-In Numbers and the Conference ID shown below:
Encore Dial in #: (800) 642-1687 Encore Dial In #: (706) 645-9291. The recording will be available from: 01/21/2011 13:00 to 01/28/2011 12:59 Conference ID number: 19630984
About Tennessee Commerce Bancorp, Inc.
Tennessee Commerce Bancorp, Inc. is the parent company of Tennessee Commerce Bank. The Bank provides a wide range of banking services and is primarily focused on business accounts. Its corporate and banking office is located in Franklin, Tennessee. Tennessee Commerce Bancorp's stock is listed on the NASDAQ Global Market under the symbol "TNCC."
Additional information concerning Tennessee Commerce can be accessed at www.tncommercebank.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about transportation industry indicators and non-GAAP financial measures. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "expect," "outlook," "estimate," "continue," "predict," "project", "intend," "could" and "should," and other words of similar meaning. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to, our concentration of credit exposure to borrowers in the transportation industry, the potential disposition of collateral upon foreclosure with respect to our national market funding outside of the Nashville MSA, the effects of future economic, business and market conditions and changes, domestic and foreign, that may affect general economic conditions, governmental monetary and fiscal policies, negative developments in the financial services industry and U.S. and global credit markets, fluctuations in interest rates, changes in accounting policies, rules and practices, other matters discussed in this press release and other factors identified in the Company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date of this press release, and Tennessee Commerce undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release. Tennessee Commerce is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.
| TENNESSEE COMMERCE BANCORP, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| DECEMBER 31, 2010 (UNAUDITED) AND DECEMBER 31, 2009 | ||
| December 31, | December 31, | |
| (Dollars in thousands, except share data) | 2010 | 2009 (1) |
| ASSETS | ||
| Cash and due from banks | $ 6,521 | $ 22,864 |
| Federal funds sold | 14,214 | 15,010 |
| Cash and cash equivalents | 20,735 | 37,874 |
| Securities available for sale | 127,650 | 93,668 |
| Loans | 1,229,811 | 1,171,301 |
| Allowance for loan losses | (21,463) | (19,913) |
| Net loans | 1,208,348 | 1,151,388 |
| Premises and equipment, net | 2,335 | 1,967 |
| Accrued interest receivable | 8,746 | 9,711 |
| Restricted equity securities | 2,459 | 2,169 |
| Income tax receivable | 324 | 68 |
| Bank-owned life insurance | 27,969 | 25,673 |
| Other real estate owned | 2,888 | 814 |
| Repossessions | 30,635 | 36,951 |
| Other assets | 20,983 | 23,149 |
| Total assets | $ 1,453,072 | $ 1,383,432 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||
| Liabilities | ||
| Deposits | ||
| Non-interest-bearing | $ 25,486 | $ 30,111 |
| Interest-bearing | 1,273,565 | 1,212,431 |
| Total deposits | 1,299,051 | 1,242,542 |
| Accrued interest payable | 1,408 | 1,430 |
| Accrued dividend payable | 187 | 187 |
| Short-term borrowings | -- | 14,000 |
| Other liabilities | 7,668 | 5,783 |
| Long-term subordinated debt | 25,421 | 23,198 |
| Total liabilities | 1,333,735 | 1,287,140 |
| Shareholders equity | ||
| Preferred stock, 1,000,000 shares authorized; 30,000 shares of $0.50 par value Fixed Rate Cumulative Perpetual, Series A issued and outstanding at December 31, 2010 and December 31, 2009 | 15,000 | 15,000 |
| Common stock, $0.50 par value; 20,000,000 shares authorized at December 31, 2010 and at December 31, 2009; 12,194,884 and 5,646,368 shares issued and outstanding at December 31, 2010 and December 31, 2009, respectively | 6,097 | 2,823 |
| Common stock warrant | 453 | 453 |
| Additional paid-in capital | 84,391 | 63,247 |
| Retained earnings | 18,000 | 16,056 |
| Accumulated other comprehensive income (loss) | (4,604) | (1,287) |
| Total shareholders equity | 119,337 | 96,292 |
| Total liabilities and shareholders equity | $ 1,453,072 | $ 1,383,432 |
| (1) The balance sheet at December 31, 2009 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. | ||
| TENNESSEE COMMERCE BANCORP, INC. | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| TWELVE MONTHS AND THREE MONTHS ENDED DECEMBER 31, 2010 AND 2009 | ||||
| (UNAUDITED) | ||||
| Twelve Months Ended | Three Months Ended | |||
| December 31, | December 31, | |||
| (Dollars in thousands, except share data) | 2010 | 2009 | 2010 | 2009 |
| Interest income | ||||
| Loans, including fees | $ 77,920 | $ 75,770 | $ 19,818 | $ 19,866 |
| Securities | 3,387 | 5,325 | 895 | 1,236 |
| Federal funds sold | 71 | 13 | 34 | 1 |
| Total interest income | 81,378 | 81,108 | 20,747 | 21,103 |
| Interest expense | ||||
| Deposits | 27,162 | 34,213 | 6,856 | 7,406 |
| Other | 1,711 | 1,979 | 311 | 496 |
| Total interest expense | 28,873 | 36,192 | 7,167 | 7,902 |
| Net interest income | 52,505 | 44,916 | 13,580 | 13,201 |
| Provision for loan losses | 20,011 | 31,039 | 3,768 | 4,150 |
| Net interest income after provision for loan losses | 32,494 | 13,877 | 9,812 | 9,051 |
| Non-interest income | ||||
| Service charges on deposit accounts | 122 | 157 | 32 | 25 |
| Securities gains | 887 | 1,118 | 153 | 248 |
| Gain (loss) on sale of loans | 917 | (1,928) | 442 | (1,279) |
| (Loss) gain on repossession | (5,369) | (1,826) | (1,371) | (661) |
| Other | 5,826 | 922 | 251 | 291 |
| Total non-interest income (loss) | 2,383 | (1,557) | (493) | (1,376) |
| Non-interest expense | ||||
| Salaries and employee benefits | 12,071 | 9,849 | 3,836 | 2,421 |
| Occupancy and equipment | 2,032 | 1,625 | 558 | 439 |
| Data processing fees | 2,030 | 1,549 | 501 | 401 |
| FDIC expense | 3,601 | 1,922 | 1,252 | 54 |
| Professional fees | 3,011 | 1,851 | 725 | 458 |
| Other | 6,920 | 4,509 | 1,254 | 1,195 |
| Total non-interest expense | 29,665 | 21,305 | 8,126 | 4,968 |
| Income (loss) before income taxes | 5,212 | (8,985) | 1,193 | 2,707 |
| Income tax expense (benefit) | 1,768 | (3,407) | 265 | 1,056 |
| Net income (loss) | 3,444 | (5,578) | 928 | 1,651 |
| Preferred dividends | (1,500) | (1,546) | (375) | (375) |
| Net income (loss) available to common shareholders | $ 1,944 | $ (7,124) | $ 553 | $ 1,276 |
| Earnings (loss) per share (EPS): | ||||
| Basic EPS | $ 0.24 | $ (1.50) | $ 0.05 | $ 0.27 |
| Diluted EPS | 0.24 | (1.50) | 0.05 | 0.27 |
| Weighted average shares outstanding: | ||||
| Basic | 8,212,929 | 4,738,638 | 12,194,884 | 4,752,753 |
| Diluted | 8,212,929 | 4,738,638 | 12,194,884 | 4,752,753 |
| TENNESSEE COMMERCE BANCORP, INC. | |||||
| LOAN DATA | |||||
| (Dollars in thousands) | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 |
| LOAN BALANCES BY TYPE: | |||||
| Commercial and Industrial | $ 648,187 | $ 671,013 | $ 652,149 | $ 651,382 | $ 649,475 |
| Consumer | 3,692 | 3,547 | 3,636 | 3,581 | 3,476 |
| Real Estate: | |||||
| Construction | 115,882 | 118,376 | 131,187 | 135,416 | 142,109 |
| 1-4 Family | 42,101 | 43,639 | 43,591 | 44,339 | 42,425 |
| Other | 307,406 | 290,383 | 268,743 | 268,119 | 259,220 |
| Total Real Estate | 465,389 | 452,398 | 443,521 | 447,874 | 443,754 |
| Tax leases | 112,543 | 114,711 | 97,753 | 83,334 | 74,596 |
| Total | $ 1,229,811 | $ 1,241,669 | $ 1,197,059 | $ 1,186,171 | $ 1,171,301 |
| ASSET QUALITY DATA: | |||||
| Total Assets | $ 1,453,072 | $ 1,420,070 | $ 1,389,528 | $ 1,382,851 | $ 1,383,432 |
| Nonaccrual Loans | 52,315 | 47,351 | 34,041 | 34,792 | 19,151 |
| Troubled debt | 1,705 | 94 | 99 | 124 | 111 |
| Total Non-Performing Loans (1) | 54,020 | 47,445 | 34,140 | 34,916 | 19,262 |
| Loans 90+ Days Past Due | 3,608 | 4,340 | 2,943 | 6,232 | 1,328 |
| Repossessions | 30,635 | 32,747 | 36,336 | 39,993 | 36,951 |
| Other Real Estate Owned | 2,888 | 1,975 | 795 | 480 | 814 |
| Total Non-Performing Assets (2) | 58,811 | 53,666 | 37,779 | 41,504 | 21,293 |
| Total Non-Performing Assets (Adj) (3) | $ 91,151 | $ 86,507 | $ 74,214 | $ 81,621 | $ 58,355 |
| Non-Performing Loans to Total Loans (1) | 4.4% | 3.8% | 2.9% | 2.9% | 1.6% |
| Non-Performing Assets to Total Loans (2) | 4.8% | 4.3% | 3.2% | 3.5% | 1.8% |
| Non-Performing Assets to Total Assets (2) | 4.0% | 3.8% | 2.7% | 3.0% | 1.5% |
| Non-Performing Assets (Adj) to Total Assets (3) | 6.3% | 6.1% | 5.3% | 5.9% | 4.2% |
| Allowance for Loan Losses to Non-Performing Loans | 39.7% | 45.8% | 59.6% | 57.6% | 103.4% |
| Allowance for Loan Losses to Total Loans | 1.7% | 1.7% | 1.7% | 1.7% | 1.7% |
| Loans 30+ Days Past Due to Total Loans | 1.5% | 2.7% | 2.2% | 4.5% | 4.5% |
| (loans not included in non-performing loans) | |||||
| Net Chargeoffs to Average Gross Loans | 0.3% | 0.5% | 0.4% | 0.4% | 0.3% |
| NET CHARGE-OFFS FOR QUARTER | $ 4,047 | $ 5,797 | $ 4,214 | $ 4,403 | $ 3,927 |
| Transportation & Other Equipment : | |||||
| Nonaccrual Loans (included above) | $ 11,701 | $ 11,214 | $ 24,297 | $ 21,019 | $ 11,596 |
| Loans 90+ Days Past Due (included above) | 3,118 | 3,364 | 1,388 | 5,868 | 1,328 |
| Repossessions | 20,651 | 22,478 | 26,176 | 29,299 | 24,980 |
| (1) Non-Performing loans are comprised of Nonaccrual Loans and Troubled Debt | |||||
| (2) Non Performing Assets are comprised of Nonaccruals, 90+ Days Past Due and ORE | |||||
| (3) Non Performing Assets (Adjusted) are comprised of Nonaccruals, 90+ Days past Due, ORE and Repossessions (consolidated) | |||||
| TENNESSEE COMMERCE BANCORP, INC. | |||||
| FINANCIAL HIGHLIGHTS | |||||
| (Dollars in thousands, except per share amounts) | |||||
| 2010 Q4 | 2010 Q3 | 2010 Q2 | 2010 Q1 | 2009 Q4 | |
| Total Assets | $ 1,453,072 | $ 1,420,070 | $ 1,389,528 | $ 1,382,851 | $ 1,383,432 |
| Total Net Loans | 1,208,348 | 1,219,927 | 1,176,713 | 1,166,061 | 1,151,388 |
| Total Deposits | 1,299,051 | 1,261,005 | 1,243,456 | 1,239,835 | 1,242,541 |
| Reserves/ Loans (%) | 1.75% | 1.75% | 1.70% | 1.70% | 1.70% |
| Shareholders' Equity | 119,337 | 123,838 | 100,782 | 98,407 | 96,292 |
| Tangible Equity | 89,160 | 93,684 | 70,651 | 68,299 | 66,207 |
| Net Interest Income | 13,580 | 12,333 | 13,343 | 13,249 | 13,201 |
| Operating Revenue | 13,087 | 13,628 | 14,237 | 13,936 | 11,825 |
| Net Income (Loss) Available to Common Shareholders | 553 | (1,474) | 1,511 | 1,354 | 1,276 |
| Diluted Earnings (Loss) Per Share | $ 0.05 | $ (0.16) | $ 0.26 | $ 0.24 | $ 0.27 |
| ROAA | 0.15% | -0.41% | 0.44% | 0.40% | 0.38% |
| ROACE | 2.39% | -7.09% | 8.69% | 8.13% | 7.94% |
| Net Interest Margin | 3.93% | 3.77% | 4.25% | 4.25% | 4.18% |
| Total Equity/ Total Assets | 8.21% | 8.72% | 7.25% | 7.12% | 6.96% |
| Total Capital Ratio - Bank | 11.30% | 11.06% | 10.95% | 10.72% | 10.63% |
| Total Capital Ratio - Corporation | 12.61% | 12.42% | 10.99% | 10.82% | 10.81% |
| Efficiency Ratio | 62.09% | 61.04% | 47.14% | 46.71% | 42.01% |
| Pre-tax, Pre-Provision Income | 4,586 | 4,934 | 7,151 | 7,052 | 6,482 |
| Net Income | 928 | (1,099) | 1,886 | 1,729 | 1,651 |
| Net Income Available to Common Shareholders' | 553 | (1,474) | 1,511 | 1,354 | 1,276 |
| Average assets | 1,408,299 | 1,411,351 | 1,376,347 | 1,371,526 | 1,307,205 |
| Average Common Equity | 91,952 | 82,466 | 69,450 | 67,073 | 63,265 |
| PT,PP ROAA | 0.33% | 0.26% | 0.26% | 0.13% | 0.50% |
| ROAA | 0.04% | -0.10% | 0.11% | 0.10% | 0.10% |
| ROEE | 0.60% | -1.79% | 2.18% | 2.02% | 2.02% |
| 3 months ended December 31, | 3 months ended December 31, | |||||
| ASSETS | 2010 | 2009 | ||||
| Average | Average | Average | Average | |||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate |
| Interest Earning Assets | ||||||
| Securities - taxable | $ 124,935 | $ 895 | 2.82% | $ 98,979 | $ 1,236 | 4.92% |
| Loans | 1,218,748 | 19,818 | 6.45% | 1,153,175 | 19,866 | 6.83% |
| Securities-tax exempt | ||||||
| Fed funds sold | 25,994 | 34 | 0.52% | 1,565 | 1 | 0.25% |
| Interest-bearing accounts | 1,369,677 | 20,747 | 6.01% | 1,253,719 | 21,103 | 6.67% |
| Non-interest earning assets | ||||||
| Cash and due from banks | 10,162 | 7,108 | ||||
| Net fixed assets and equipment | 2,373 | 2,026 | ||||
| Accrued interest and other assets | 91,587 | 81,400 | ||||
| Total assets | $ 1,473,799 | $ 1,344,253 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Interest Earning Liabilities | ||||||
| Deposits (other than demand) | $ 1,253,292 | $ 6,856 | 2.17% | $ 1,176,135 | $ 7,406 | 2.50% |
| Fed funds purchased & FHLB Advances | 17,782 | 11 | 0.25% | 2,016 | 14 | 2.76% |
| Subordinated Debt | 25,500 | 300 | 4.67% | 33,198 | 482 | 5.76% |
| 1,296,574 | 7,167 | 2.19% | 1,211,349 | 7,902 | 2.59% | |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing demand deposits | 26,782 | 25,903 | ||||
| Other liabilities | 28,325 | 13,662 | ||||
| Shareholders' equity | 122,118 | 93,339 | ||||
| Total Liabilities and Shareholders' Equity | $ 1,473,799 | $ 1,344,253 | ||||
| Net Interest/Spread | 3.82% | 4.08% | ||||
| Net Interest Margin | 3.93% | 4.18% | ||||
| 12 months ended December 31, | 12 months ended December 31, | |||||
| ASSETS | 2010 | 2009 | ||||
| Average | Average | Average | Average | |||
| (dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate |
| Interest Earning Assets | ||||||
| Securities - taxable | $ 92,320 | $ 3,387 | 3.65% | $ 102,827 | $ 5,325 | 5.14% |
| Loans | 1,185,579 | 77,920 | 6.57% | 1,115,993 | 75,770 | 6.79% |
| Securities-tax exempt | ||||||
| Fed funds sold | 19,417 | 71 | 0.37% | 5,955 | 13 | 0.22% |
| Interest-bearing accounts | 1,297,316 | 81,378 | 6.27% | 1,224,775 | 81,108 | 6.62% |
| Non-interest earning assets | ||||||
| Cash and due from banks | 13,268 | 8,452 | ||||
| Net fixed assets and equipment | 2,235 | 2,160 | ||||
| Accrued interest and other assets | 95,480 | 71,818 | ||||
| Total assets | $ 1,408,299 | $ 1,307,205 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Interest Earning Liabilities | ||||||
| Deposits (other than demand) | $ 1,227,550 | $ 27,162 | 2.21% | $ 1,133,387 | $ 34,213 | 3.02% |
| Fed funds purchased & FHLB Advances | 6,369 | 21 | 0.33% | 14,467 | 89 | 0.62% |
| Subordinated Debt | 31,580 | 1,690 | 5.35% | 33,198 | 1,890 | 5.69% |
| 1,265,499 | 28,873 | 2.28% | 1,181,052 | 36,192 | 3.06% | |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing demand deposits | 24,106 | 24,372 | ||||
| Other liabilities | 10,789 | 6,626 | ||||
| Shareholders' equity | 107,905 | 95,155 | ||||
| Total Liabilities and Shareholders' Equity | $ 1,408,299 | $ 1,307,205 | ||||
| Net Interest Spread | 3.99% | 3.56% | ||||
| Net Interest Margin | 4.05% | 3.66% | ||||
GAAP Reconciliation and Management Explanation for Non-GAAP Financial Measures
Certain financial information included in this press release was determined by methods other than in accordance with GAAP, as follows:
- "Tangible common book value per share" is defined as total shareholders' equity, excluding preferred stock, net of discount, and common stock warrant, reduced by goodwill and other intangible assets, divided by total common shares outstanding. Management believes this measure is important to investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets.
- "Tangible common equity to tangible assets" is defined as total shareholders' equity, excluding preferred stock, net of discount, and common stock warrant, reduced by goodwill and other intangible assets, divided by the difference of total assets less goodwill and other intangible assets. Management believes this measure is important to investors who are interested in evaluating the adequacy of our capital levels.
- "Efficiency ratio" is defined as non-interest expense divided by the sum of net interest income and non-interest income. Management believes that this measure is important to investors who are interested in comparing the performance of our core business operations.
- "Pre-tax, pre-provision income" is defined as income before income taxes reduced by provision for loan losses. Management believes that pre-tax, pre-provision income is important to investors as it shows income trends without giving effect to loan loss provision.
You should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP measures used by other companies. The following tables present a reconciliation to provide a more detailed analysis of these non-GAAP performance measures:
| (Unaudited) | 2010 Q4 | 2010 Q3 | 2010 Q2 | 2010 Q1 | 2009 Q4 |
| (Dollars in thousands) | |||||
| Tangible Shareholders' Equity: | |||||
| Total shareholders' equity | 119,337 | 123,838 | 100,782 | 98,407 | 96,292 |
| Less: Goodwill | -- | -- | -- | -- | -- |
| Preferred stock, net of discount | (29,724) | (29,701) | (29,678) | (29,655) | (29,632) |
| Warrant | (453) | (453) | (453) | (453) | (453) |
| Total tangible common equity | $ 89,160 | $ 93,684 | $ 70,651 | $ 68,299 | $ 66,207 |
| Tangible common equity to tangible assets | 6.14% | 6.59% | 5.08% | 4.94% | 4.76% |
| Total shares outstanding | 12,194,884 | 12,194,884 | 5,646,368 | 5,648,384 | 5,646,338 |
| Tangible common book value per share | $ 7.31 | $ 7.68 | $ 12.51 | $ 12.09 | $ 11.73 |
| (Unaudited) | 2010 Q4 | 2010 Q3 | 2010 Q2 | 2010 Q1 | 2009 Q4 |
| (Dollars in thousands) | |||||
| Non-interest expense | $ 8,126 | $ 8,319 | $ 6,711 | $ 6,509 | $ 4,968 |
| Net-interest income | 13,580 | 12,333 | 13,343 | 13,249 | 13,201 |
| Non-interest income | (493) | 1,295 | 894 | 687 | (1,376) |
| Net revenues | $ 13,087 | $ 13,628 | $ 14,237 | $ 13,936 | $ 11,825 |
| Efficiency Ratio | 62.09% | 61.04% | 47.14% | 46.71% | 42.01% |
| (Unaudited) | 2010 Q4 | 2010 Q3 | 2010 Q2 | 2010 Q1 | 2009 Q4 |
| (Dollars in thousands) | |||||
| Income (loss) | $ 553 | $ (1,474) | $ 1,511 | $ 1,354 | $ 1,276 |
| Provision for loan loss | 3,768 | 7,193 | 4,450 | 4,600 | 4,150 |
| Income tax expense (benefit) | 265 | (785) | 1,190 | 1,098 | 1,056 |
| Pre-tax, pre-provision income | $ 4,586 | $ 4,934 | $ 7,151 | $ 7,052 | $ 6,482 |