SAVANNAH, Ga., Jan. 30, 2007 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported record net income of $10,002,000 in 2006 compared with net income of $9,040,000 in 2005, an increase of 11 percent. Net income per diluted share was $1.70 for 2006 and $1.63 in 2005, an increase of 4.3 percent. Average shares outstanding increased in 2006 primarily due to the private placement sale of 397,000 shares in August 2005. These earnings represent a return of 16.19 percent on average equity and 1.30 percent on average assets. The efficiency ratio was 54.3 percent for 2006. All per share amounts reflect the effect of a 5-for-4 stock split in the form of a 25 percent stock dividend distributed on December 18, 2006.
Total assets increased 17 percent to $844 million at December 31, 2006, up from $718 million a year earlier. Loans totaled $721 million compared with $614 million one year earlier, an increase of 17 percent. Deposits totaled $707 million at December 31, 2006 and $601 million at December 31, 2005, an increase of 18 percent.
Average total assets increased 12 percent to $770 million in 2006 from $685 million in 2005. Average portfolio loans were $659 million compared with $565 million in 2005, an increase of 17 percent. Average deposits were $638 million in 2006 and $577 million in 2005, an increase of 11 percent. Average brokered deposits and institutional money markets declined to $90 million in 2006 from $112 million in 2005.
President and CEO John C. Helmken II stated, "The support, loyalty and hard work of our customers, officer and employee groups, and Board are evident as we report record earnings for 2006 that cross the $10 million threshold. This milestone could not have been reached without a strong commitment from these groups. Our Bryan Bank & Trust and The Savannah Bank subsidiaries continue to achieve extraordinary growth and earnings and increased market share. With Tom Lennox now on board, we are excited about the direction of Harbourside Community Bank ("Harbourside") and the Hilton Head Island/Bluffton market. We step into 2007 with an even stronger team of exceptional community bankers."
Net income for the fourth quarter 2006 was $2,523,000, compared to $2,721,000 in the fourth quarter 2005, a decrease of 7.3 percent. Net income per diluted share for the fourth quarter was 43 cents in 2006 compared to 46 cents per share in 2005, or 6.5 percent lower. The return on average equity was 15.33 percent, return on average assets was 1.24 percent and the efficiency ratio was 54.9 percent for the fourth quarter. The fourth quarter earnings decrease included $145,000 in a higher provision for credit losses, $302,000 in lower mortgage related income and approximately $300,000 in higher costs associated with Harbourside. The lower mortgage related income in 2006 is due to both slower activity in the South Carolina market and personnel changes at Harbourside.
Noninterest expense increased $3,307,000 or 20 percent in 2006 compared with 2005. The increase in noninterest expense includes normal operating cost increases, approximately $225,000 non-recurring startup costs at Harbourside, approximately $1,000,000 of increased operating costs for the expansion on Hilton Head Island, South Carolina in March 2006 and approximately $299,000 of stock-based compensation expense resulting from adopting a new accounting pronouncement.
Nonperforming loans were $2,231,000, or 0.31 percent of total loans, at December 31, 2006, up from $1,357,000, or 0.22 percent of total loans, at December 31, 2005. Net loan losses for 2006 were $444,000, or 0.07 percent of average loans, compared to $76,000, or 0.01 percent in 2005. One residential real estate loan charge-off of $300,000 comprised most of the year to date charge-offs.
Today, the Board of Directors approved a 7.1 percent increase in the regular quarterly cash dividend to 12 cents per share from 11.2 cents per share as restated for the 5-for-4 stock split distributed in December 2006. The first quarter dividend is payable on February 26, 2007 to shareholders of record on February 9, 2007.
The Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank, N.A., Bryan Bank & Trust (Richmond Hill, GA) and Harbourside Community Bank (Hilton Head Island, SC), is headquartered in Savannah, Georgia and began operations in 1990. Its primary businesses include deposit, credit, trust and mortgage origination services provided to local customers.
Forward-Looking Statements
This press release may contain statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding future expectations or events. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations.
A printable PDF format of this entire Annual Earnings Release may be obtained from the Corporate Website at www.savb.com under the "SEC Filings and More" link and the "Latest Earnings Release" selection.
The Savannah Bancorp, Inc. and Subsidiaries
Fourth Quarter Financial Highlights
December 31, 2006 and 2005
($ in thousands, except per share data)
(Unaudited)
---------------------------------------------------------------------
Balance Sheet Data at December 31 2006 2005 % Change
---------------------------------------------------------------------
Total assets $843,514 $717,901 17
Interest-earning assets 803,927 685,531 17
Loans 720,918 613,667 17
Allowance for credit losses 8,954 7,813 15
Non-accruing loans 825 1,313 (37)
Loans past due 90 days - accruing 1,406 44 NM
Deposits 706,824 600,510 18
Interest-bearing liabilities 669,974 558,116 20
Shareholders' equity 66,574 58,543 14
Allowance for credit losses to total
loans 1.24% 1.27% (2.4)
Nonperforming assets to total loans
and OREO 0.39% 0.22% 77
Loan to deposit ratio 102% 102% --
Equity to assets 7.89% 8.15% (3.2)
Tier 1 capital to risk-weighted
assets 11.09% 11.52% (3.7)
Total capital to risk-weighted
assets 12.34% 12.77% (3.4)
Outstanding shares (a) 5,781 5,739 0.7
Book value per share (a) $ 11.52 $ 10.20 13
Market value per share (a) $ 27.25 $ 28.38 (4.0)
Performance Data for the Year
-----------------------------
Net income $ 10,002 $ 9,040 11
Return on average assets 1.30% 1.32% (1.5)
Return on average equity 16.19% 19.06% (15)
Net interest margin 4.44% 4.25% 4.5
Efficiency ratio 54.29% 51.91% 4.6
Per share data: (a)
Net income - basic $ 1.73 $ 1.68 3.0
Net income - diluted $ 1.70 $ 1.63 4.3
Dividends $ .448 $ .432 3.7
Average shares: (a)
Basic 5,765 5,396 6.8
Diluted 5,876 5,531 6.2
Performance Data for the Fourth Quarter
---------------------------------------
Net income $ 2,523 $ 2,721 (7.3)
Return on average assets 1.24% 1.50% (17)
Return on average equity 15.33% 18.75% (18)
Net interest margin 4.26% 4.48% (4.9)
Efficiency ratio 54.94% 49.41% 11
Per share data: (a)
Net income - basic $ 0.44 $ 0.47 (6.4)
Net income - diluted $ 0.43 $ 0.46 (6.5)
Dividends $ 0.112 $ 0.108 3.7
Average shares: (a)
Basic 5,779 5,739 0.7
Diluted 5,884 5,886 --
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006.
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2006 and 2005
($ in thousands, except share data)
--------------------------------------------------------------------
December 31,
2006 2005
--------------------------------------------------------------------
Assets
Cash and due from banks $ 18,540 $ 14,736
Federal funds sold 18,363 11,847
Interest-bearing deposits in banks 10,394 5,885
--------------------------------------------------------------------
Cash and cash equivalents 47,297 32,468
Securities available for sale, at fair value
(amortized cost of $54,163 in 2006 and
$44,972 in 2005) 53,917 44,438
Loans held for sale 914 10,473
Loans, net of allowance for credit losses of
$8,954 in 2006 and $7,813 in 2005 711,964 605,854
Premises and equipment, net 6,365 5,020
Other real estate owned 545 --
Bank-owned life insurance 5,760 5,551
Other assets 16,752 14,097
--------------------------------------------------------------------
Total assets $ 843,514 $ 717,901
====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 101,156 $ 93,082
Interest-bearing demand 116,493 93,568
Savings 18,615 19,319
Money market 147,279 118,413
Time deposits 323,281 276,128
--------------------------------------------------------------------
Total deposits 706,824 600,510
Short-term borrowings 40,687 19,902
Federal Home Loan Bank advances - long-term 13,309 20,476
Subordinated debt to nonconsolidated
subsidiaries 10,310 10,310
Other liabilities 5,810 8,160
--------------------------------------------------------------------
Total liabilities 776,940 659,358
--------------------------------------------------------------------
Shareholders' equity
Common stock, par value $1 per share:
authorized 20,000,000 shares; issued
5,781,381 and 4,591,339 shares in 2006 and
2005, respectively 5,781 4,591
Preferred stock, par value $1 per share:
authorized 10,000,000 shares, none issued -- --
Additional paid-in capital 35,738 36,257
Retained earnings 25,690 18,272
Treasury stock, 318 and 267 shares
in 2006 and 2005, respectively (4) (4)
Accumulated other comprehensive loss, net (631) (573)
--------------------------------------------------------------------
Total shareholders' equity 66,574 58,543
--------------------------------------------------------------------
Total liabilities and shareholders' equity $ 843,514 $ 717,901
====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
For the Two Years and Five Quarters Ending December 31, 2006
($ in thousands, except per share data)
--------------------------------------------------------------
For the Years Ended
December 31, %
2006 2005 Chg
--------------------------------------------------------------
Interest and dividend income
Loans, including fees $ 51,541 $ 38,503 34
Loans held for sale 558 1,335 (58)
Investment securities 2,240 1,671 34
Deposits with banks 293 473 (38)
Federal funds sold 557 376 48
--------------------------------------------------------
Total interest and dividend
income 55,189 42,358 30
--------------------------------------------------------
Interest expense
Deposits 19,342 12,373 56
Other borrowings 2,617 1,297 102
FHLB advances 778 1,009 (23)
--------------------------------------------------------
Total interest expense 22,737 14,679 55
--------------------------------------------------------
Net interest income 32,452 27,679 17
Provision for credit losses 1,585 1,500 5.7
--------------------------------------------------------
Net interest income after the
provision for credit losses 30,867 26,179 18
--------------------------------------------------------
Noninterest income
Service charges on deposits 1,526 1,622 (5.9)
Mortgage related income, net 886 1,292 (31)
Trust fees 658 501 31
Other operating income 1,233 979 26
Gain (loss) on sale of OREO -- (7) (100)
--------------------------------------------------------
Total noninterest income 4,303 4,387 (1.9)
--------------------------------------------------------
Noninterest expense
Salaries and employee benefits 10,852 9,530 14
Occupancy and equipment 2,920 2,199 33
Information technology 1,525 1,244 23
Other operating expense 4,656 3,673 27
--------------------------------------------------------
Total noninterest expense 19,953 16,646 20
--------------------------------------------------------
Income before income taxes 15,217 13,920 9.3
Income tax expense 5,215 4,880 6.9
--------------------------------------------------------
Net income $ 10,002 $ 9,040 11
========================================================
Net income per share:
Basic $ 1.73 $ 1.68 3.0
========================================================
Diluted $ 1.70 $ 1.63 4.3
========================================================
Average basic shares (000s) 5,765 5,396 6.8
Average diluted shares (000s) 5,876 5,531 6.2
Performance Ratios
Return on average equity 16.19% 19.06% (15)
Return on average assets 1.30% 1.32% (1.5)
Net interest margin 4.44% 4.25% 4.5
Efficiency ratio 54.3% 51.9% 4.6
Average equity 61,766 47,428 30
Average assets 769,917 685,163 12
Average interest-earning assets 734,470 655,632 12
--------------------------------------------------------------------
(Unaudited)
--------------------------------------------------------------------
2006 2005
------------------------------------------------------------- Q4-06/
Fourth Third Second First Fourth Q4-05
Quarter Quarter Quarter Quarter Quarter % Chg
--------------------------------------------------------------------
Interest and
dividend income
Loans, including
fees $ 14,063 $ 13,209 $ 12,548 $ 11,721 $ 10,936 29
Loans held for
sale 52 64 233 209 227 (77)
Investment
securities 599 572 559 510 445 35
Deposits with
banks 127 65 54 47 171 (26)
Federal funds sold 116 166 148 127 154 (25)
--------------------------------------------------------------------
Total interest
and dividend 14,957 14,076 13,542 12,614 11,933 25
income
--------------------------------------------------------------------
Interest expense
Deposits 5,754 5,251 4,443 3,894 3,616 59
Other borrowings 775 540 746 556 346 124
FHLB advances 168 166 197 247 253 (34)
--------------------------------------------------------------------
Total interest
expense 6,697 5,957 5,386 4,697 4,215 59
--------------------------------------------------------------------
Net interest
income 8,260 8,119 8,156 7,917 7,718 7.0
Provision for
credit losses 450 360 360 415 305 48
--------------------------------------------------------------------
Net interest
income after the
provision for
credit losses 7,810 7,759 7,796 7,502 7,413 5.4
--------------------------------------------------------------------
Noninterest
income
Service charges
on deposits 389 384 377 376 406 (4.2)
Mortgage related
income, net 200 203 252 231 502 (60)
Trust fees 170 164 166 158 143 19
Other operating
income 331 305 291 306 202 64
Gain (loss) on
sale of OREO -- -- -- -- (1) --
--------------------------------------------------------------------
Total noninterest
income 1,090 1,056 1,086 1,071 1,252 (13)
--------------------------------------------------------------------
Noninterest
expense
Salaries and
employee benefits 2,659 2,717 2,785 2,691 2,474 7.5
Occupancy and
equipment 768 755 746 651 556 38
Information
technology 417 372 374 362 328 27
Other operating
expense 1,293 1,101 1,071 1,191 1,074 20
--------------------------------------------------------------------
Total noninterest
expense 5,137 4,945 4,976 4,895 4,432 16
--------------------------------------------------------------------
Income before
income taxes 3,763 3,870 3,906 3,678 4,233 (11)
Income tax expense 1,240 1,280 1,368 1,327 1,512 (18)
--------------------------------------------------------------------
Net income $ 2,523 $ 2,590 $ 2,538 $ 2,351 $ 2,721 (7.3)
====================================================================
Net income per
share:
Basic $ .44 $ .45 $ .44 $ .41 $ .47 (6.4)
====================================================================
Diluted $ .43 $ .44 $ .43 $ .40 $ .46 (6.5)
====================================================================
Average basic
shares (000s) 5,779 5,761 5,759 5,759 5,739 0.7
Average diluted
shares (000s) 5,884 5,886 5,894 5,886 5,886 --
Performance Ratios
Return on average
equity 15.33% 16.46% 16.91% 16.14% 18.75% (18)
Return on average
assets 1.24% 1.34% 1.33% 1.29% 1.50% (17)
Net interest
margin 4.26% 4.42% 4.51% 4.59% 4.48% (4.9)
Efficiency ratio 54.9% 53.9% 53.8% 54.5% 49.4% 11
Average equity 65,297 62,435 60,195 59,058 57,571 13
Average assets 809,491 767,649 765,080 736,674 719,743 12
Average
interest-earning
assets 772,192 732,405 729,101 703,438 687,307 12
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006.
The Savannah Bancorp, Inc. and Subsidiaries
Selected Financial Condition Highlights - Five-Year Comparison
($ in thousands, except per share data)
(Unaudited)
--------------------------------------------------------------------
2006 2005 2004 2003 2002
--------------------------------------------------------------------
Selected Average Balances
-------------------------
Assets $769,917 $685,163 $557,474 $443,502 $396,836
Loans held for
sale 7,842 23,033 27,209 939 --
Loans, net of
unearned income 658,750 565,131 441,421 356,006 307,285
Securities 50,600 41,300 40,703 44,015 55,692
Other interest-
earning assets 17,278 26,168 22,383 21,198 13,426
Total interest-
earning assets 734,470 655,632 531,716 422,158 376,403
Interest-bearing
deposits 542,375 487,493 371,877 300,045 271,563
Borrowed funds 62,255 55,255 67,353 40,158 34,341
Total interest-
bearing
liabilities 604,630 542,748 439,230 340,203 305,904
Noninterest-bearing
deposits 96,113 89,386 76,593 65,403 55,250
Total deposits 638,488 576,879 448,470 365,448 326,813
Shareholders'
equity 61,766 47,428 38,126 35,740 33,398
Loan to deposit
ratio - average 103% 98% 98% 97% 94%
Selected Financial Data at Year-End
-----------------------------------
Assets $843,514 $717,901 $617,341 $476,865 $437,598
Interest-earning
assets 803,381 685,531 593,035 449,025 394,756
Loans held for sale 914 10,473 26,471 10,393 --
Loans, net of
unearned income 720,918 613,667 499,868 386,731 336,775
Deposits 706,824 600,510 506,120 389,146 363,044
Loan to deposit
ratio 102% 102% 99% 99% 93%
Interest-bearing
liabilities 669,974 558,116 488,546 360,817 337,213
Shareholders'
equity 66,574 58,543 40,071 36,771 34,756
Shareholders'
equity to total
assets 7.89% 8.15% 6.49% 7.71% 7.94%
Dividend payout
ratio 25.82% 25.53% 37.69% 45.00% 44.32%
Risk-based capital
ratios:
Tier 1 capital to
risk-based assets 11.09% 11.52% 9.95% 10.60% 9.99%
Total capital to
risk-based assets 12.34% 12.77% 11.20% 11.85% 11.24%
Credit Quality Data
-------------------
Nonperforming
assets $ 2,776 $ 1,357 $ 998 $ 1,525 $ 2,114
Nonperforming loans 2,231 1,357 538 598 1,997
Net credit losses 444 76 128 306 203
Allowance for
credit losses 8,954 7,813 6,389 5,067 4,373
Nonperforming loans
to loans 0.31% 0.22% 0.11% 0.15% 0.59%
Nonperforming
assets to loans
and other real
estate owned 0.39% 0.22% 0.20% 0.39% 0.63%
Net credit losses
to average loans 0.07% 0.01% 0.03% 0.09% 0.07%
Allowance for
credit losses to
total loans 1.24% 1.27% 1.28% 1.31% 1.30%
Per Share Data at Year-End (a)
------------------------------
Book value $ 11.52 $ 10.20 $ 7.80 $ 7.17 $ 6.78
Common stock
closing price
(Nasdaq) $ 27.25 $ 28.38 $ 21.64 $ 18.56 $ 12.20
Common shares
outstanding (000s) 5,781 5,739 5,140 5,129 5,126
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006 and December
2004 and a ten percent stock dividend in February 2003.
The Savannah Bancorp, Inc. and Subsidiaries
Selected Operating Highlights - Five-Year Comparison
($ in thousands, except per share data)
(Unaudited)
------------------------------------------------------------------
2006 2005 2004 2003 2002
------------------------------------------------------------------
Summary of operations
Interest income -
taxable equivalent $55,347 $42,544 $28,947 $23,221 $23,824
Interest expense 22,737 14,679 8,427 6,695 8,402
------------------------------------------------------------------
Net interest income -
taxable equivalent 32,610 27,865 20,520 16,526 15,422
Taxable equivalent
adjustment (158) (186) (240) (284) (312)
------------------------------------------------------------------
Net interest income 32,452 27,679 20,280 16,242 15,110
Provision for credit
losses 1,585 1,500 1,450 1,000 750
------------------------------------------------------------------
Net interest income
after provision for
credit losses 30,867 26,179 18,830 15,242 14,360
------------------------------------------------------------------
Noninterest income
Service charges on
deposit accounts 1,526 1,622 1,598 1,572 1,576
Mortgage related
income, net 886 1,292 1,079 776 612
Trust fees 658 501 442 398 353
Other operating income 1,233 972 981 635 469
------------------------------------------------------------------
Total noninterest
income 4,303 4,387 4,100 3,381 3,010
------------------------------------------------------------------
Noninterest expense
Salaries and employee
benefits 10,852 9,530 8,362 6,693 6,008
Occupancy and
equipment 2,920 2,199 1,963 1,767 1,678
Information technology 1,525 1,244 1,049 908 805
Other operating
expense 4,656 3,673 2,880 2,287 2,231
------------------------------------------------------------------
Total noninterest
expense 19,953 16,646 14,254 11,655 10,722
------------------------------------------------------------------
Income before income
taxes 15,217 13,920 8,676 6,968 6,648
Income tax expense 5,215 4,880 2,940 2,324 2,140
------------------------------------------------------------------
Net income $10,002 $ 9,040 $ 5,736 $ 4,644 $ 4,508
==================================================================
Net income per share: (a)
Basic $ 1.73 $ 1.68 $ 1.12 $ 0.91 $ 0.88
Diluted $ 1.70 $ 1.63 $ 1.09 $ 0.89 $ 0.87
Cash dividends paid
per share $ 0.45 $ 0.43 $ 0.42 $ 0.41 $ 0.39
Average basic shares
outstanding (000s) 5,765 5,396 5,136 5,129 5,125
Average diluted shares
outstanding (000s) 5,876 5,531 5,261 5,226 5,200
Performance ratios
Net interest margin 4.44% 4.25% 3.86% 3.91% 4.10%
Return on average
assets 1.30% 1.32% 1.03% 1.05% 1.14%
Return on average
equity 16.19% 19.06% 15.04% 12.99% 13.50%
Efficiency ratio 54.29% 51.91% 58.47% 59.40% 59.17%
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006 and December 2004
and a ten percent stock dividend in February 2003.
The Savannah Bancorp, Inc. and Subsidiaries
Selected Quarterly Data - 2006 and 2005
($ in thousands, except per share data)
(Unaudited)
Condensed Quarterly Income Statements
The following is a summary of unaudited quarterly results
for 2006 and 2005:
2006 2005
---------------------------------------- ---------------------------
Fourth Third Second First Fourth Third Second First
---------------------------------------- ---------------------------
Net interest
income $8,260 $8,119 $8,156 $7,917 $7,718 $7,149 $6,671 $6,141
Provision for
credit
losses 450 360 360 415 305 375 315 505
--------------------------------------------------------------------
Net interest
income after
provision
for credit
losses 7,810 7,759 7,796 7,502 7,413 6,774 6,356 5,636
Noninterest
income 1,090 1,056 1,086 1,071 1,252 1,093 1,048 994
Noninterest
expense 5,137 4,945 4,976 4,895 4,432 4,239 4,032 3,943
--------------------------------------------------------------------
Income before
income taxes 3,763 3,870 3,906 3,678 4,233 3,628 3,372 2,687
Income tax
expense 1,240 1,280 1,368 1,327 1,512 1,274 1,188 906
--------------------------------------------------------------------
Net income $2,523 $2,590 $2,538 $2,351 $2,721 $2,354 $2,184 $1,781
====================================================================
Per share: (a)
Net income -
Basic $ .437 $ .450 $ .441 $ .408 $ .474 $ .433 $ .418 $ .343
Net income -
Diluted $ .429 $ .441 $ .432 $ .401 $ .462 $ .422 $ .409 $ .335
Dividends $ .112 $ .112 $ .112 $ .112 $ .108 $ .108 $ .108 $ .108
Average
shares
(000s)
Basic 5,779 5,761 5,759 5,759 5,739 5,433 5,221 5,191
Diluted 5,884 5,886 5,894 5,886 5,886 5,584 5,344 5,324
(a) Share and per share amounts have been adjusted to reflect the
effect of a 5-for-4 stock split in December 2006. The summation
of quarterly earnings per share may not agree with annual
earnings per share.
Quarterly Market Values of Common Shares
The Company's common stock was sold in an initial public offering on April 10, 1990. It is traded on the NASDAQ Global Market under the symbol SAVB. The quarterly high, low and closing stock trading prices for 2006 and 2005 are listed below. There were approximately 720 holders of record of Company Common Stock and, according to information available to the Company, approximately 740 additional shareholders in street name through brokerage accounts at December 31, 2006. The per share amounts have been restated to reflect the effect of a 5-for-4 stock split in December 2006.
2006 2005
----------------------------------------- ---------------------------
Closing Market
Prices Fourth Third Second First Fourth Third Second First
----------------------------------------- ---------------------------
High $28.14 $30.31 $30.40 $29.58 $30.00 $27.63 $24.76 $23.08
Low 26.60 26.58 27.26 27.12 27.40 24.22 22.24 21.20
Close 27.25 26.64 30.26 28.06 28.38 27.60 24.76 23.08
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - 2006 and 2005
Taxable-Equivalent
Average Balance Average Rate Interest (a)
------------------------------ ------------- Vari-
2006 2005 2006 2005 2006 2005 ance
---------------------------------------------------------------------
($ in thousands) (%) ($ in thousands)
Assets
Interest-bearing
$ 5,969 $ 14,747 4.91 3.21 deposits $ 293 $ 473 $ (180)
Investments
48,190 36,999 4.47 4.02 - taxable 2,153 1,489 664
Investments
2,410 4,301 7.47 6.93 - non-taxable 180 298 (118)
Federal funds
11,309 11,421 4.93 3.29 sold 557 376 181
Loans held for
7,842 23,033 7.12 5.80 sale 558 1,335 (777)
658,750 565,131 7.83 6.83 Loans (b) 51,606 38,573 13,033
-------- -------- ------ ------- -------
Total interest-
earning
734,470 655,632 7.54 6.49 assets 55,347 42,544 12,803
---------- ------ ------- -------
Noninterest-
35,447 29,531 earning assets
-------- --------
$769,917 $685,163 Total assets
======== ========
Liabilities
and equity
Deposits
$ 95,138 $ 89,963 1.32 0.77 NOW accounts 1,254 697 557
Savings
19,104 20,020 0.99 0.93 accounts 190 187 3
Money market
135,736 104,023 3.75 2.35 accounts 5,093 2,443 2,650
CDs, $100M or
105,220 76,661 4.68 3.45 more 4,927 2,642 2,285
81,084 112,347 3.98 3.24 CDs, broker 3,225 3,640 (415)
Other time
106,093 84,479 4.39 3.27 deposits 4,653 2,764 1,889
-------- -------- ------ ------- -------
Total interest-
bearing
542,375 487,493 3.57 2.54 deposits 19,342 12,373 6,969
FHLB advances
15,770 20,669 4.93 4.88 - long term 778 1,009 (231)
Short-term
36,175 24,276 4.98 2.78 borrowings 1,802 675 1,127
Subordinated
10,310 10,310 7.90 6.03 debt 815 622 193
-------- -------- ------ ------- -------
Total interest-
bearing
604,630 542,748 3.76 2.70 liabilities 22,737 14,679 8,058
---------- ------ ------ -------
Noninterest-
96,113 89,386 bearing deposits
7,408 5,601 Other liabilities
61,766 47,428 Shareholders' equity
-------- --------
Liabilities
$769,917 $685,163 and equity
======== ========
Interest rate
3.78 3.79 spread
==== ====
Net interest
4.44 4.25 margin
==== ====
Net interest
income $32,610 $27,865 $ 4,745
======= ======= =======
Net earning
$129,840 $112,884 assets
======== ========
$638,488 $576,879 Average deposits
======== ========
Average cost
3.03 2.14 of deposits
==== ====
Average loan to
103% 98% deposit ratio
======== ========
(a) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $158 in 2006
and $186 in 2005.
(b) Average nonaccruing loans have been excluded from total average
loans and categorized as a noninterest-earning asset.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume
Analysis - Fourth Quarter, 2006 and 2005
Taxable-Equivalent
Average Balance Average Rate Interest (a)
------------------------------ -------------
Q4 Q4 Q4 Q4 Q4 Q4 Vari-
2006 2005 2006 2005 2006 2005 ance
---------------------------------------------------------------------
($ in thousands) (%) ($ in thousands)
Assets
Interest-bearing
$ 9,869 $ 17,189 5.11 3.95 deposits $ 127 $ 171 ($44)
Investments
50,116 40,065 4.61 4.04 - taxable 582 408 174
Investments
2,104 3,769 7.54 6.74 - non-taxable 40 64 (24)
10,119 15,351 4.55 3.98 Federal funds sold 116 154 (38)
Loans held
2,204 14,031 9.36 6.42 for sale 52 227 (175)
697,780 596,902 8.00 7.28 Loans (b) 14,079 10,954 3,125
------------------ ---------------------
Total interest-
772,192 687,307 7.70 6.91 earning assets 14,996 11,978 3,018
---------- ---------------------
Noninterest-
37,299 32,436 earning assets
------------------
$809,491 $719,743 Total assets
==================
Liabilities
and equity
Deposits
$104,879 $ 97,353 1.63 1.06 NOW accounts 431 260 171
18,350 19,488 0.99 1.00 Savings accounts 46 49 (3)
Money market
143,984 117,902 4.20 2.65 accounts 1,523 788 735
CDs, $100M or
114,364 86,484 5.09 3.77 more 1,467 822 645
78,574 99,549 4.60 3.40 CDs, broker 912 854 58
Other time
114,312 92,420 4.77 3.62 deposits 1,375 843 532
------------------ ---------------------
Total interest-
574,463 513,196 3.97 2.80 bearing deposits 5,754 3,616 2,138
FHLB advances
13,356 20,534 4.99 4.89 - long term 168 253 (85)
43,036 18,025 5.17 3.68 Other borrowings 561 167 394
10,310 10,310 8.23 6.89 Subordinated debt 214 179 35
------------------ ---------------------
Total interest-
bearing
641,165 562,065 4.14 2.98 liabilities 6,697 4,215 2,482
---------- ---------------------
Noninterest-
95,849 92,169 bearing deposits
7,180 7,938 Other liabilities
65,297 57,571 Shareholders' equity
------------------
Liabilities
$809,491 $719,743 and equity
==================
3.56 3.93 Interest rate spread
==========
4.26 4.48 Net interest margin
==========
Net interest
income $8,299 $7,763 $ 536
=====================
$131,027 $125,242 Net earning assets
==================
$670,312 $605,365 Average deposits
==================
Average cost
3.41 2.37 of deposits
==========
Average loan to
104% 99% deposit ratio
==================
(a) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $39 and $45 in
the fourth quarter 2006 and 2005, respectively.
(b) Average nonaccruing loans have been excluded from total average
loans and categorized as a noninterest-earning asset.
The Savannah Bancorp, Inc. and Subsidiaries
Regulatory Capital Ratios
The primary banking regulators of The Savannah Bancorp, Inc. and
Subsidiary Banks have adopted capital requirements that specify the
minimum level for which no prompt corrective action is required. In
addition, the Federal Deposit Insurance Corporation ("FDIC") has
adopted FDIC insurance assessment rates based on certain
"well-capitalized" risk-based and equity capital ratios. Failure to
meet minimum capital requirements can result in the initiation of
certain actions by the regulators that, if undertaken, could have a
material effect on the Company's and the Subsidiary Banks' financial
statements. The following tables show the capital ratios for the
Company and the Subsidiary Banks at December 31, 2006 and 2005:
($ in thousands)
Company Savannah Bryan Harbourside
---------------------------------------------------------------------
2006 2005 2006 2005 2006 2005 2006 2005
---------------------------------------------------------------------
Qualifying
Capital
----------
Tier 1
capital $77,205 $69,116 $48,718 $43,047 $16,833 $13,962 $8,687 $--
Total
capital 85,910 76,617 54,712 48,656 18,874 15,798 9,207 --
Leverage
Ratios
----------
Tier 1
capital
to average
assets 9.57% 9.60% 8.58% 7.93% 9.23% 8.08% 15.55% --%
Risk-based
Ratios
----------
Tier 1
capital to
risk-weighted
assets 11.09% 11.52% 10.17% 9.60% 10.31% 9.51% 16.98% --%
Total
capital to
risk-weighted
assets 12.34% 12.77% 11.42% 10.85% 11.56% 10.76% 18.00% --%
Following are the regulatory capital ratios minimum ratio and the
minimum ratios to be classified as a well-capitalized holding
company or bank:
--------------------------------------------------------------
Well-
Regulatory Capital Guidelines: Capitalized Minimum
--------------------------------------------------------------
Tier 1 capital to average assets 5.00% 4.00%
Tier 1 capital to risk-weighted 6.00% 4.00%
assets
Total capital to risk-weighted assets 10.00% 8.00%
The Savannah Bancorp, Inc. and Subsidiaries
Loan Concentration Schedule
% of % of Dollar
($ in thousands) 12/31/06 Total 12/31/05 Total Change
-------------------------------------------------------------------
Non-residential real estate
Owner-occupied $ 90,848 13 $ 93,714 15 (3)
Non owner-occupied 98,032 14 80,799 13 21
Construction 22,128 3 14,601 2 52
Commercial land
and lot development 35,610 5 44,276 7 (20)
-----------------------------------------------------------------
Total non-residential
real estate 246,618 35 233,390 37 6
-----------------------------------------------------------------
Residential real estate
Owner-occupied --
1-4 family 87,965 12 71,582 12 23
Non owner-occupied --
1-4 family 68,397 10 58,142 10 18
Construction 110,413 15 90,855 15 22
Residential land and
lot development 93,060 12 61,149 10 52
Home equity lines 40,794 6 39,230 6 4
-----------------------------------------------------------------
Total residential
real estate 400,629 55 320,958 53 25
-----------------------------------------------------------------
Total real estate loans 647,247 90 554,348 90 17
Commercial 57,740 8 45,934 8 26
Consumer 16,624 2 14,156 2 17
Unearned fees, net (693) -- (771) -- (10)
-----------------------------------------------------------------
Total loans, net of
unearned fees $ 720,918 100 $ 613,667 100 17
=================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statement of Shareholders' Equity
For the Three Years Ended December 31, 2006
($ in thousands, except share data)
December 31,
------------------------------------------------------------------
2006 2005 2004
------------------------------------------------------------------
Common shares issued
Shares, beginning
of year 4,591,339 4,112,448 3,290,223
Common stock issued -- 397,273 --
Stock split / dividend 1,155,564 -- 822,225
Stock options exercised 34,478 81,618 --
------------------------------------------------------------------
Shares, end of year 5,781,381 4,591,339 4,112,448
==================================================================
Treasury shares owned
Shares, beginning
of year 267 282 8,246
Stock split/dividend 63 (15) 36
Stock options exercised (12) -- (8,000)
------------------------------------------------------------------
Shares, end of year 318 267 282
==================================================================
Common stock
Balance, beginning
of year $ 4,591 $ 4,112 $ 3,290
Common stock issued -- 397 --
Stock split / dividend 1,156 -- 822
Stock options exercised 34 82 --
------------------------------------------------------------------
Balance, end of year 5,781 4,591 4,112
------------------------------------------------------------------
Additional paid-in capital
Balance, beginning
of year 36,257 24,232 25,109
Common stock issued,
net of issuance costs -- 11,191 --
Stock split / dividend (1,165) -- (822)
Stock-based compensation
expense 299 -- --
Stock options exercised 272 494 (55)
Stock options tax benefit 75 340 --
------------------------------------------------------------------
Balance, end of year 35,738 36,257 24,232
------------------------------------------------------------------
Retained earnings
Balance, beginning
of year 18,272 11,539 7,965
Net income 10,002 9,040 5,736
Cash dividends paid (2,584) (2,307) (2,162)
------------------------------------------------------------------
Balance, end of year 25,690 18,272 11,539
------------------------------------------------------------------
Treasury stock
Balance, beginning
of year (4) (4) (147)
Stock options exercised -- -- 143
------------------------------------------------------------------
Balance, end of year (4) (4) (4)
------------------------------------------------------------------
Accumulated other
comprehensive income
(loss), net
Balance, beginning
of year (573) 192 554
Change in unrealized
losses on securities
available for sale,
net of tax 178 (522) (362)
Net change in fair
value of derivative
instruments, net
of tax (236) (243) --
------------------------------------------------------------------
Balance, end of year (631) (573) 192
------------------------------------------------------------------
Total shareholders' equity $ 66,574 $ 58,543 $ 40,071
==================================================================