MACON, Ga., Jan. 24, 2008 (PRIME NEWSWIRE) -- Security Bank Corporation (Nasdaq:SBKC) today reported a quarterly net loss of $6.9 million for the fourth quarter ended December 31, 2007, versus net income of $5.2 million for the fourth quarter of 2006. Diluted earnings per share for the fourth quarter of 2007 were a loss of $0.36 compared to earnings per share of $0.26 for the comparable year ago period. The decrease in diluted earnings per share is primarily attributable to an $18 million increase in the provision for loan losses versus the fourth quarter a year ago. For the year ended December 31, 2007 net income decreased to $6.6 million compared to $23.4 million a year ago and on a diluted per share basis decreased to $0.34 versus $1.33 for the comparable year ago period.
Security Bank's return on average tangible equity and average assets for the twelve months ended December 31, 2007 were 3.63% and 0.25% respectively, versus 16.53% and 1.15% for the same period in 2006. Tangible book value increased 3% to $9.28 per share at December 31, 2007 compared to $8.99 a year ago. Tangible equity to tangible assets was 6.5% at December 31, 2007 versus 7.4% at December 31, 2006 and all bank subsidiaries were "well-capitalized" as defined by regulatory standards at year-end 2007.
Asset Quality
During the fourth quarter of 2007, nonperforming assets ("NPAs" or nonaccrual loans and other real estate owned) increased to $79 million, or 3.58% of total loans plus other real estate owned compared to 2.99% and 1.95% at the end of the third quarter of 2007 and the fourth quarter of 2006, respectively. While Security Bank did sell $8 million of other real estate owned during the quarter, new properties totaling approximately $13 million were moved to other real estate owned. Nonaccrual loans increased by $10 million to $51 million during the fourth quarter. In addition, the Company charged off approximately $15 million (net) in loans receivable resulting in net charge-offs to average loans of 2.79% annualized for the fourth quarter of 2007. Net charge-offs to average loans were 0.22% annualized for the fourth quarter of 2006. For the year ended December 31, 2007, net charge-offs to average loans were 1.12%. Security Bank increased its allowance for loan losses to $31.7 million, or 1.45% of loans receivable at December 31, 2007, up from $22.3 million at December 31, 2006.
Rett Walker, Security Bank Corporation President and CEO, remarked, "It's been another difficult quarter in terms of overall credit market conditions and the continued downturn in the Atlanta residential real estate construction and development market. Given the uncertainty about the timing of the recovery of the Atlanta real estate market, we expect that NPAs will continue to be elevated in 2008. We intend to prudently limit our growth in 2008 with minimal loan growth, no additional branch openings, and no anticipated acquisitions. All of our efforts near term will be focused on controlling our NPAs and keeping our banks well capitalized. As part of our capital strategy we have recently updated our shelf registration statement to give us flexibility to take advantage of favorable opportunities to raise capital through the issuance of a variety of securities."
Balance Sheet
Loans receivable were approximately $2.2 billion at December 31, 2007, up from roughly $1.9 billion at December 31, 2006, an increase of 15%. On a sequential basis loans increased by roughly $17 million or approximately 3% on an annualized basis with all of the growth occurring in our Middle and Coastal Georgia markets.
Total deposits were roughly $2.3 billion at December 31, 2007, an increase of approximately 17% from $2.0 billion at December 31, 2006. Total assets increased roughly 14% to $2.8 billion at December 31, 2007, compared to approximately $2.5 billion at December 31, 2006.
Shareholders' equity at December 31, 2007 was roughly unchanged at $306.7 million compared to December 31, 2006, as earnings, net of dividends paid and changes in other comprehensive income, were offset by $4.9 million in reduced equity as a result of shares purchased during the year under a share repurchase program.
Net Interest Income
Net interest income for the fourth quarter of 2007 was $21.6 million, a decrease of 2% when compared to the fourth quarter of 2006. The decrease is primarily the result of a decline in the net interest margin. The net interest margin (on a fully tax-equivalent basis ("FTE")) was 3.46% for the quarter ended December 31, 2007, compared to 4.14% for the comparable period one year ago and 3.81% for the third quarter of 2007. The decrease in the net interest margin in the fourth quarter of 2007 as compared to the third quarter of 2007 is the result of the increase in NPAs and the negative effect of very competitive loan pricing in the form of rate and fees. For year ended December 31, 2007, the net interest margin (FTE) was 3.88% compared to 4.40% for the year ended December 31, 2006.
Noninterest Income and Expense
Noninterest income for the fourth quarter of 2007 was unchanged at $3.1 million compared to the fourth quarter of 2006. An increase in the loss on sale of other real estate owned of $1.5 million was offset by a decline in losses on securities sales of $1.3 million.
Noninterest expense for the fourth quarter of 2007 was $16.2 million, an increase of $l.5 million, or 10% over the fourth quarter 2006 level of $14.7 million. The increase is primarily attributable to a $1.2 million increase in other noninterest expense associated primarily with foreclosure expenses from higher levels of nonperforming assets.
2008 Guidance
Beginning with fiscal year 2008, management will no longer issue annual earnings per share guidance. Management will, however, continue to give guidance on certain metrics that impact earnings, specifically loan growth, net interest margin, provision for loan losses, net charge offs and noninterest expenses. Management's current outlook for 2008 assumes the following:
* A continued difficult credit environment for the company for the
first half of 2008, tempered by current market research that suggests
improvement in the second half of the year.
* Higher NPAs and net charge-offs for 2008, with charge-off levels
as much as double our 2007 level, and commensurate increases in
provision expense.
* Continued margin pressure, given recent and anticipated interest rate
reductions by the Federal Reserve, along with elevated levels of
NPAs and related interest reversals.
* A reduction in projected loan growth for 2008 to 0%-3%.
* Noninterest expense levels to be reduced 2%-4% versus 2007.
Other Information
Security Bank Corporation management will host a conference call to discuss these results at 2:00 p.m. Eastern Standard Time on Thursday, January 24, 2008. This call is open to all interested parties. From locations within the United States the call-in number is 800.860.2442 (412.858.4600 from outside the United States). Please call in 10 minutes prior to the beginning of the conference call and ask for Security Bank Corporation.
A recorded playback of the conference call will be available by calling 877.344.7529, or 412.317.0088 from outside the United States, from approximately 4:00 p.m. EST, Thursday, January 24, until 11:59 p.m. EST Thursday, January 31, 2008. The passcode for this playback is 415163#.
This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are "tangible book value," "tangible equity to tangible assets" and "return on average tangible equity." Security Bank's management uses these non-GAAP measures in its analysis of Security Bank's performance.
Tangible book value is defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Security Bank that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Tangible equity to tangible assets is the ratio of tangible equity defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits, to tangible assets defined as total assets reduced by recorded intangible assets, net of related deferred tax benefits. Tangible equity to tangible assets is an important measure of Security Bank's capital strength without the effects of purchase accounting as noted above. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period or year-to-date period, as applicable) divided by average equity reduced by average goodwill and other intangible assets, net of related deferred tax benefits. Security Bank's management includes this measure because it believes that it is important when measuring the Company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and many investors use this measure as part of their analysis of Security Bank.
These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP measures and the most directly comparable GAAP measures.
About Security Bank Corporation
Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.8 billion at December 31, 2007. Security Bank Corporation operates six community banks with banking offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta. In addition, Security Bank Corporation operates an investment management and planning firm, CFS Wealth Management, LLC, in addition to operating its interim real estate and development lender and traditional mortgage originator, Fairfield Financial Services, Inc., with offices throughout Georgia.
Security Bank Corporation common stock is traded on the NASDAQ Global Select Market under the ticker symbol "SBKC". You may obtain copies of all documents that Security Bank files with the Securities and Exchange Commission, free of charge, at the SEC's website at www.sec.gov. In addition, copies of these documents may also be obtained from us without charge by directing a written request to Security Bank Corporation, 4219 Forsyth Road, Macon, Georgia 31210, attention: Investor Relations.
Safe Harbor
This press release contains forward-looking statements as defined by federal securities laws, including statements about Security Bank's loan loss provisions, net charge-offs, non-performing assets net interest margin changes, the overall economic cycle and its impact on real estate values in Security Bank's markets, loan growth, introduction and success of new products and Security Bank's long-term prospects, among others. Statements contained in this press release that are not historical facts are forward looking statements. Forward-looking statements may address issues involving significant risks, uncertainties, estimates and assumptions made by management. Security Bank's ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Security Bank believes that the expectations and estimates reflected in its forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Please refer to Security Bank Corporation's public filings with the Securities and Exchange Commission for a summary of important factors that could affect Security Bank Corporation's financial results and operations and its forward-looking statements. Security Bank Corporation does not intend to and assumes no responsibility, except as required by law, for updating or revising any forward-looking statements contained in this press release, whether as a result of new information, changes in assumptions, future events or otherwise.
Security Bank Corporation
Selected Consolidated Financial Data
(Dollars in Thousands, except Per Share Amounts)
Unaudited
Quarters Ended Year Ended
December 31, December 31,
2007 2006 % Change 2007 2006 % Change
---- ---- -------- ---- ---- --------
EARNINGS
SUMMARY:
Net interest
income $ 21,583 $ 22,062 -2.2% 90,524 $79,434 14.0%
Provision
for Loan
Losses 20,000 1,873 967.8% 32,660 4,468 631.0%
Noninterest
Income 3,121 3,086 1.1% 17,106 17,906 -4.5%
Noninterest
Expense 16,165 14,675 10.2% 65,199 55,602 17.3%
Provision for
Income
Taxes (4,588) 3,378 -235.8% 3,183 13,878 -77.1%
Net Income (6,873) 5,222 -231.6% 6,588 23,392 -71.8%
PER COMMON
SHARE:
Basic
earnings $ (0.36) $ 0.26 -238.5% $ 0.35 $ 1.36 -74.3%
Diluted
earnings (0.36) 0.26 -238.5% 0.34 $ 1.33 -74.4%
Cash
dividends
declared 0.088 0.075 17.3% 0.35 0.30 16.7%
Book value 16.22 15.99 1.4% 16.22 15.99 1.4%
Tangible book
value 9.28 8.99 3.2% 9.28 8.99 3.2%
KEY
PERFORMANCE
RATIOS(a):
Return on
average
tangible
equity(b) -14.77% 12.19% 3.63% 16.53%
Return on
average
assets -0.99% 0.87% 0.25% 1.15%
Efficiency
ratio 65.43% 58.35% 60.58% 57.12%
Net interest
margin (FTE) 3.46% 4.14% 3.88% 4.40%
Net charge-
offs to
average
loans 2.79% 0.22% 1.12% 0.15%
BALANCE SHEET
SUMMARY -
END OF
PERIOD
Investment
securities $ 305,399 $ 229,940 32.8%
Loans Held
for Resale 7,605 8,878 -14.3%
Loans, gross 2,182,313 1,901,101 14.8%
Allowance for
loan losses 31,698 22,336 41.9%
Total assets 2,833,071 2,494,071 13.6%
Deposits 2,298,705 1,970,927 16.6%
Other
borrowed
money 206,327 175,605 17.5%
Shareholders'
equity 306,693 306,408 0.1%
Tangible
equity to
tangible
assets 6.50% 7.42% -12.4%
ASSET QUALITY
- END OF
PERIOD
Nonaccrual
loans $ 50,635 $ 34,401 47.2%
Loans 90
Days Past
Due and
Accruing 242 -- 100.0%
Other real
estate owned 28,175 2,775 915.3%
Total
non-
performing
assets 79,052 37,176 112.6%
Allowance for
loan losses/
NPA's 40.10% 60.08%
Allowance for
loan losses/
loans 1.45% 1.18%
(a) Annualized based on number of days in the period, except
efficiency ratio
(b) Calculation of this measure is illustrated in the attached GAAP
to non-GAAP reconciliation
Security Bank Corporation
Average Balance Sheet and Net Interest Income Analysis
(Dollars in Thousands)
Unaudited
Quarter Ended Year Ended
December 31, 2007 December 31, 2007
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
ASSETS
Earning assets:
Interest-bearing
deposits and
fed funds sold $ 26,946 $ 309 4.55% $ 35,628 $ 1,837 5.16%
Investment
securities 256,061 3,341 5.18% 216,610 11,338 5.23%
Loans Held for
Resale 5,647 105 7.38% 6,328 453 7.16%
Loans 2,198,071 45,322 8.18% 2,081,999 179,562 8.62%
Other earning
assets 1,238 24 7.69% 1,238 95 7.67%
Total
earning
assets 2,487,963 49,101 7.83% 2,341,803 193,285 8.25%
Non-earning
assets 257,124 250,144
---------- ----------
Total assets $2,745,087 $2,591,947
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Savings and
interest-
bearing
transaction $ 536,286 $ 4,586 3.39% $ 535,146 $ 19,138 3.58%
Time deposits 1,534,788 20,302 5.25% 1,414,171 74,736 5.28%
Other borrowings 180,870 2,518 5.52% 144,311 8,442 5.85%
Total interest-
bearing
liabilities 2,251,944 27,406 4.83% 2,093,628 102,316 4.89%
Noninterest-
bearing
liabilities:
Noninterest
bearing
deposits 159,891 163,712
Other
noninterest-
bearing
liabilities 17,461 21,103
Total
liabilities $2,429,296 $2,278,443
---------- ----------
Shareholders'
Equity 315,791 313,504
---------- ----------
Total
liabilities
and
shareholders'
equity $2,745,087 $2,591,947
========== ==========
Interest rate
spread 3.00% 3.37%
Net interest
income $21,695 $ 90,969
Net interest
margin (FTE) 3.46% 3.88%
Security Bank Corporation (SBKC)
Selected Financial Information
(Amounts in thousands, except per share data)
2007
-----------------------------------------------------------
Dec. 31 4th 3rd 2nd 1st
/YTD Quarter Quarter Quarter Quarter
-----------------------------------------------------------
Period-End
Balance
Sheet
----------
Total
Assets $2,833,071 $2,833,071 $2,723,986 $2,672,177 $2,541,603
Total
Securities 305,399 305,399 227,694 219,185 191,945
Mortgage
Loans held
for Sale 7,605 7,605 8,867 9,052 8,341
Loans:
Commercial:
Real-
Estate(4) 959,671 959,671 900,969 843,477 932,971
Construc-
tion/A&D
(4) 861,013 861,013 896,563 892,315 703,703
All Other 135,585 135,585 141,656 134,031 154,406
Residential:
Real-
Estate 158,244 158,244 155,508 152,726 152,217
Construc-
tion/A&D 25,377 25,377 24,758 28,329 28,470
All Other 42,423 42,423 45,758 43,376 45,230
Total
Loans 2,182,313 2,182,313 2,165,212 2,094,254 2,016,997
Allowance
for loan
losses 31,698 31,698 27,132 24,108 23,336
Other
Assets:
Other
earning
assets: 14,866 14,866 59,968 84,060 78,319
Total
Earning
Assets: 2,510,183 2,510,183 2,461,741 2,406,551 2,295,602
Intangibles:
Goodwill 128,571 128,571 128,571 128,601 128,553
Core-
Deposit 4,125 4,125 4,371 4,617 4,863
Deposits:
Demand
Deposits 158,759 158,759 161,749 171,427 176,658
Interest
bearing
deposits 2,139,946 2,139,946 2,029,351 1,989,651 1,842,431
Total
Deposits 2,298,705 2,298,705 2,191,100 2,161,078 2,019,089
Fed Funds
purchased
& repo
agreements 68,417 68,417 81,995 58,985 59,065
Other
borrowed
funds 137,910 137,910 121,388 118,888 129,888
Common
Equity 306,693 306,693 312,036 314,687 311,729
======================================================================
Average
Balance
Sheet
--------
Total
Assets $2,591,947 $2,745,087 $2,648,300 $2,529,142 $2,441,326
Total
Securities 216,610 256,061 220,379 195,031 194,248
Mortgage
Loans held
for Sale 6,328 5,647 6,367 8,728 4,557
Loans:
Commercial:
Real-
Estate 907,729 939,330 863,915 890,191 937,948
Construc-
tion/A&D 797,692 886,581 892,021 781,274 627,003
Other 148,064 142,903 140,395 152,784 156,406
Residential:
Real-
Estate 153,682 156,468 154,652 152,519 151,018
Construc-
tion/A&D 27,610 26,112 26,307 28,848 29,134
Other 47,222 46,677 46,322 46,657 49,355
Total
Loans 2,081,999 2,198,071 2,123,612 2,052,273 1,950,864
Other
Assets:
Other
earning
assets: 36,866 28,184 33,016 34,280 52,292
Total
Earning
Assets: 2,341,803 2,487,963 2,383,374 2,290,312 2,201,961
Deposits:
Demand
Deposits 163,712 159,891 161,225 168,589 165,255
Interest
bearing
deposits
Savings 16,005 15,104 15,513 16,810 16,612
NOW 373,522 373,274 377,448 375,605 367,657
Money
Market 145,619 147,908 151,428 144,907 138,060
Time
deposits
greater
than
$100,000 892,248 1,003,681 949,323 833,758 779,136
Time
deposits
less
than
$100,000 521,923 531,107 523,421 516,844 516,137
Total
Deposits 2,113,029 2,230,965 2,178,358 2,056,513 1,982,857
Fed Funds
purchased
& repo
agreements 43,881 55,528 41,945 43,682 34,158
Other
borrowed
funds 100,430 125,342 92,383 92,277 91,436
Common
Equity 313,504 315,791 316,060 313,877 308,691
======================================================================
Income
Statement
----------
Interest
Income $ 192,840 $ 48,989 $ 49,643 $ 48,175 $ 46,033
Interest
Expense 102,316 27,406 26,862 24,792 23,256
Net
Interest
Income 90,524 21,583 22,781 23,383 22,777
Loan loss
provision 32,660 20,000 9,400 2,000 1,260
Service
charges
on deposit
accounts 9,363 2,533 2,356 2,376 2,098
Mortgage
banking
revenues 4,475 995 1,170 1,271 1,039
Securities
Gains
(Losses) (3) -- (5) -- 2
Gains
(Losses)
on
Foreclosed
Property (1,943) (1,434) (375) (164) 30
Other
income 5,214 1,027 1,114 1,120 1,953
Total
non-
interest
income 17,106 3,121 4,260 4,603 5,122
Salaries
and
benefits 35,061 7,564 8,852 9,094 9,551
Occupancy
and
equipment 6,189 1,595 1,559 1,547 1,488
Other
noninterest
expense 23,949 7,006 6,308 5,756 4,879
Total
non-
interest
expense 65,199 16,165 16,719 16,397 15,918
Pre-tax
earnings 9,771 (11,461) 922 9,589 10,721
Income
Taxes 3,183 (4,588) 347 3,489 3,935
Net income $ 6,588 $ (6,873) $ 575 $ 6,100 $ 6,786
Basic
earnings
per
share $ 0.35 $ (0.36) $ 0.03 $ 0.32 $ 0.35
Diluted
earnings
per share 0.34 (0.36) 0.03 0.31 0.35
Operating
diluted
earnings
per
share(3) 0.34 (0.36) 0.03 0.31 0.35
End of
period
shares
outstan-
ding 18,912,264 18,912,264 18,889,227 19,212,139 19,181,241
Weighted
average
diluted
shares
o/s 19,225,069 18,958,448 19,184,272 19,463,979 19,456,857
Tax
equivalent
adjustment 445 112 110 112 111
Net
interest
income
(FTE) 90,969 21,695 22,891 23,495 22,888
Effective
Tax Rate 32.58% 40.03% 37.64% 36.39% 36.70%
======================================================================
Stock and
related
per share
data:
----------
Book value $ 16.22 $ 16.22 $ 16.52 $ 16.38 $ 16.25
Tangible
book
value 9.28 9.28 9.57 9.54 9.39
Dividends
declared
per share 0.35 0.0875 0.0875 0.0875 0.0875
======================================================================
Other Key
Ratios/
Data:
---------
Return on
average
tangible
equity(2),
(3) 3.63% -14.77% 1.24% 13.42% 15.78%
Return on
average
assets(2) 0.25% -0.99% 0.09% 0.97% 1.13%
Net
interest
margin
(FTE)(2) 3.88% 3.46% 3.81% 4.11% 4.22%
Efficiency
ratio (FTE) 60.33% 65.14% 61.58% 58.36% 56.83%
Tangible
Equity/
Tangible
Assets(3) 6.50% 6.50% 6.97% 7.21% 7.48%
======================================================================
Loan
Performance
Data:
------------
Nonaccrual
loans $ 50,635 $ 50,635 $ 41,492 $ 35,450 $ 39,139
Loans 90
Days Past
Due and
Accruing 242 242 -- -- --
Other real
estate
owned
(ORE) 28,175 28,175 23,891 19,229 3,403
Total
non-
performing
assets 79,052 79,052 65,383 54,679 42,542
Net charge-
offs 23,298 15,434 6,376 1,228 260
Allowance
for loan
losses/
NPA's 40.10% 40.10% 41.50% 44.09% 54.85%
Allowance
for loan
losses/
loans 1.45% 1.45% 1.25% 1.15% 1.16%
NPA's/Loans
plus ORE 3.58% 3.58% 2.99% 2.59% 2.11%
Non-
performing
assets/
total
assets 2.79% 2.79% 2.40% 2.05% 1.67%
Net charge-
offs to
average
loans(1) 1.12% 2.79% 1.19% 0.24% 0.05%
======================================================================
2006
-----------------------------------------------------------
Dec. 31 4th 3rd 2nd 1st
/YTD Quarter Quarter Quarter Quarter
-----------------------------------------------------------
Period-End
Balance
Sheet
----------
Total
Assets $2,494,071 $2,494,071 $2,314,913 $1,974,376 $1,912,841
Total
Securities 229,940 229,940 211,005 163,378 146,932
Mortgage
Loans held
for Sale 8,878 8,878 8,947 12,201 7,776
Loans:
Commercial:
Real-
Estate(4) 916,919 916,919 884,417 705,072 699,215
Construc-
tion/A&D
(4) 602,712 602,712 553,296 460,131 430,585
All Other 152,289 152,289 125,468 115,968 103,396
Residential:
Real-
Estate 150,398 150,398 151,559 151,633 155,031
Construc-
tion/A&D 30,262 30,262 30,332 32,057 30,376
All Other 48,521 48,521 45,892 36,102 51,089
Total
Loans 1,901,101 1,901,101 1,790,964 1,500,963 1,469,692
Allowance
for loan
losses 22,336 22,336 21,477 18,190 17,812
Other
Assets:
Other
earning
assets: 97,808 97,808 49,612 82,265 78,567
Total
Earning
Assets: 2,237,727 2,237,727 2,060,528 1,758,807 1,702,967
Intangibles:
Goodwill 127,984 127,984 131,162 103,014 102,659
Core-
Deposit 5,110 5,110 5,356 4,907 5,129
Deposits:
Demand
Deposits 178,967 178,967 173,129 172,023 168,235
Interest
bearing
deposits 1,791,960 1,791,960 1,659,876 1,403,986 1,362,149
Total
Deposits 1,970,927 1,970,927 1,833,005 1,576,009 1,530,384
Fed Funds
purchased
& repo
agreements 50,917 50,917 35,819 20,030 18,271
Other
borrowed
funds 124,688 124,688 123,988 112,465 125,665
Common
Equity 306,408 306,408 302,273 257,780 217,641
======================================================================
Average
Balance
Sheet
--------
Total
Assets $2,028,906 $2,368,642 $2,157,297 $1,906,800 $1,673,006
Total
Securities 173,665 216,433 183,291 151,542 142,473
Mortgage
Loans held
for Sale 6,576 6,064 7,015 8,011 5,200
Loans:
Commercial:
Real-
Estate 760,925 894,885 818,912 701,309 624,990
Construc-
tion/A&D 490,964 600,693 524,265 450,386 385,784
Other 116,591 136,109 122,750 109,873 93,284
Residential:
Real-
Estate 153,480 151,938 151,332 153,272 157,463
Construc-
tion/A&D 27,767 29,520 30,658 30,279 20,480
Other 49,781 51,282 49,191 49,693 52,788
Total
Loans 1,599,508 1,864,427 1,697,108 1,494,812 1,334,789
Other
Assets:
Other
earning
assets: 35,756 37,051 39,313 45,829 20,624
Total
Earning
Assets: 1,815,505 2,123,975 1,926,727 1,700,194 1,503,086
Deposits:
Demand
Deposits 166,190 169,410 172,393 166,941 155,181
Interest
bearing
deposits
Savings 19,268 17,085 18,645 20,359 21,036
NOW 310,624 358,114 335,152 307,630 240,033
Money
Market 127,456 146,241 132,302 103,540 127,480
Time
deposits
greater
than
$100,000 571,992 688,977 608,483 542,530 445,970
Time
deposits
less
than
$100,000 423,708 506,804 471,973 386,389 325,379
Total
Deposits 1,619,238 1,886,631 1,738,948 1,527,389 1,315,079
Fed Funds
purchased
& repo
agreements 29,874 45,112 26,036 23,230 24,608
Other
borrowed
funds 108,997 108,338 89,927 102,493 136,740
Common
Equity 252,004 304,362 283,937 235,731 182,219
======================================================================
Income
Statement
----------
Interest
Income $ 148,081 $ 44,415 $ 40,669 $ 34,214 $ 28,783
Interest
Expense 68,647 22,353 19,082 15,142 12,070
Net
Interest
Income 79,434 22,062 21,587 19,072 16,713
Loan loss
provision 4,468 1,873 1,226 739 630
Service
charges
on deposit
accounts 9,162 2,336 2,387 2,335 2,104
Mortgage
banking
revenues 4,922 1,007 1,231 1,433 1,251
Securities
Gains
(Losses) (1,601) (1,331) (270) -- --
Gains
(Losses)
on
Foreclosed
Property (57) 10 (45) (24) 2
Other
income 5,480 1,064 1,683 1,173 1,560
Total
non-
interest
income 17,906 3,086 4,986 4,917 4,917
Salaries
and
benefits 32,376 8,313 8,497 7,804 7,762
Occupancy
and
equipment 5,622 1,471 1,396 1,459 1,296
Other
noninterest
expense 17,604 4,891 4,539 4,351 3,823
Total
non-
interest
expense 55,602 14,675 14,432 13,614 12,881
Pre-tax
earnings 37,270 8,600 10,915 9,636 8,119
Income
Taxes 13,878 3,378 3,975 3,546 2,979
Net income $ 23,392 $ 5,222 $ 6,940 $ 6,090 $ 5,140
Basic
earnings
per
share $ 1.36 $ 0.26 $ 0.38 $ 0.36 $ 0.36
Diluted
earnings
per share 1.33 0.26 0.37 0.36 0.35
Operating
diluted
earnings
per
share(3) 1.38 0.31 0.37 0.36 0.35
End of
period
shares
outstan-
ding 19,166,314 19,166,314 19,161,507 17,519,112 15,782,125
Weighted
average
diluted
shares
o/s 17,564,990 19,528,891 18,971,126 16,910,380 14,784,856
Tax
equivalent
adjustment 414 106 107 100 101
Net
interest
income
(FTE) 79,848 22,168 21,694 19,172 16,814
Effective
Tax Rate 37.24% 39.28% 36.42% 36.80% 36.69%
======================================================================
Stock and
related
per share
data:
----------
Book value $ 15.99 $ 15.99 $ 15.78 $ 14.71 $ 13.79
Tangible
book
value 8.99 8.99 8.76 8.66 7.08
Dividends
declared
per share 0.30 0.0750 0.0750 0.0750 0.0750
======================================================================
Other Key
Ratios/
Data:
---------
Return on
average
tangible
equity(2),
(3) 16.53% 12.19% 17.13% 18.81% 19.92%
Return on
average
assets(2) 1.15% 0.87% 1.28% 1.28% 1.25%
Net
interest
margin
(FTE)(2) 4.40% 4.14% 4.47% 4.52% 4.54%
Efficiency
ratio (FTE) 56.88% 58.11% 54.09% 56.51% 59.27%
Tangible
Equity/
Tangible
Assets(3) 7.42% 7.42% 7.70% 8.12% 6.19%
======================================================================
Loan
Performance
Data:
------------
Nonaccrual
loans $ 34,401 $ 34,401 $ 16,946 $ 17,269 $ 8,171
Loans 90
Days Past
Due and
Accruing -- -- -- --
Other real
estate
owned
(ORE) 2,775 2,775 1,867 1,817 2,488
Total
non-
performing
assets 37,176 37,176 18,813 19,086 10,659
Net charge-
offs 2,362 1,014 789 361 198
Allowance
for loan
losses/
NPA's 60.08% 60.08% 114.16% 95.31% 167.11%
Allowance
for loan
losses/
loans 1.18% 1.18% 1.20% 1.21% 1.21%
NPA's/Loans
plus ORE 1.95% 1.95% 1.05% 1.27% 0.72%
Non-
performing
assets/
total
assets 1.49% 1.49% 0.81% 0.97% 0.56%
Net charge-
offs to
average
loans(1) 0.15% 0.22% 0.18% 0.10% 0.06%
======================================================================
(1) Annualized
(2) The actual number of days in the period were used to annualize
income
(3) Calculation of this measure is illustrated in the attached GAAP
to non-GAAP reconciliation
(4) During quarter ended 6/30/07, certain loans were reclassified
between these two categories and thus the resulting quarterly
change is not meaningful
2007
----------------------------------------------------------------------
Dec 31/YTD 4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter
----------------------------------------------------------------------
Reconciliation
Table-
GAAP to
non-GAAP:
--------------
Book Value
per share $ 16.22 $ 16.22 $ 16.52 $ 16.38 $ 16.25
Effect of
intangible
assets per
share (6.94) (6.94) (6.95) (6.84) (6.86)
Tangible
book
value $ 9.28 $ 9.28 $ 9.57 $ 9.54 $ 9.39
Equity $ 306,693 $ 306,693 $ 312,036 $ 314,687 $ 311,729
Intangible
assets 132,696 132,696 132,942 133,218 133,416
Less tax
effect of
Core-
Deposit
Intangible
(38%) (1,568) (1,568) (1,661) (1,754) (1,848)
Tangible
equity $ 175,565 $ 175,565 $ 180,755 $ 183,223 $ 180,161
Assets $2,833,071 $2,833,071 $2,723,986 $2,672,177 $2,541,603
Intangible
assets 131,129 131,129 131,281 131,464 131,568
Tangible
assets $2,701,942 $2,701,942 $2,592,705 $2,540,713 $2,410,035
Equity/
Assets 10.83% 10.83% 11.46% 11.78% 12.27%
Effect of
intangible
assets -4.33% -4.33% -4.49% -4.57% -4.79%
Tangible
Equity/
Tangible
Assets 6.50% 6.50% 6.97% 7.21% 7.48%
Average
Equity $ 313,504 $ 315,791 $ 316,060 $ 313,877 $ 308,691
Average
Intangible
assets 133,878 132,849 133,117 133,363 136,228
Less tax
effect of
Core-
Deposit
Intangible
(38%) (1,763) (1,626) (1,720) (1,813) (1,896)
Average
tangible
equity $ 181,389 $ 184,568 $ 184,663 $ 182,327 $ 174,359
Net
Income(a) $ 6,588 $ (27,268) $ 2,281 $ 24,467 $ 27,521
Return on
average
tangible
equity 3.63% -14.77% 1.24% 13.42% 15.78%
Diluted
earnings
per share $ 0.34 $ (0.36) $ 0.03 $ 0.31 $ 0.35
Effect of
securities
(gains)
losses,
net of
tax -- -- -- -- --
Effect of
prepayment
of FHLB
advances,
net of
tax -- -- -- -- --
Diluted
operating
earnings
per share $ 0.34 $ (0.36) $ 0.03 $ 0.31 $ 0.35
Net income $ 6,588 $ (6,873) $ 575 $ 6,100 $ 6,786
Effect of
securities
(gains)
losses,
net of
tax 2 -- 3 -- (1)
Effect of
prepayment
of FHLB
advances,
net of
tax -- -- -- -- --
Net
operating
income $ 6,590 $ (6,873) $ 578 $ 6,100 $ 6,785
(a) The actual number of days in the period were used to annualize
income
2006
----------------------------------------------------------------------
Dec 31/YTD 4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter
----------------------------------------------------------------------
Reconciliation
Table-
GAAP to
non-GAAP:
--------------
Book Value
per share $ 15.99 $ 15.99 $ 15.78 $ 14.71 $ 13.79
Effect of
intangible
assets per
share (7.00) (7.00) (7.02) (6.05) (6.71)
Tangible
book
value $ 8.99 $ 8.99 $ 8.76 $ 8.66 $ 7.08
Equity $ 306,408 $ 306,408 $ 302,273 $ 257,780 $ 217,641
Intangible
assets 133,094 133,094 136,518 107,921 107,788
Less tax
effect of
Core-
Deposit
Intangible
(38%) (1,942) (1,942) (2,035) (1,865) (1,949)
Tangible
equity $ 175,256 $ 175,256 $ 167,790 $ 151,724 $ 111,802
Assets $2,494,071 $2,494,071 $2,314,913 $1,974,376 $1,912,841
Intangible
assets 131,152 131,152 134,483 106,056 105,839
Tangible
assets $2,362,919 $2,362,919 $2,180,430 $1,868,320 $1,807,002
Equity/
Assets 12.29% 12.29% 13.06% 13.06% 11.38%
Effect of
intangible
assets -4.87% -4.87% -5.36% -4.94% -5.19%
Tangible
Equity/
Tangible
Assets 7.42% 7.42% 7.70% 8.12% 6.19%
Average
Equity $ 252,004 $ 304,362 $ 283,937 $ 235,731 $ 182,219
Average
Intangible
assets 112,385 136,443 125,227 107,763 79,313
Less tax
effect of
Core-
Deposit
Intangible
(38%) (1,921) (2,001) (2,006) (1,918) (1,754)
Average
tangible
equity $ 141,540 $ 169,920 $ 160,716 $ 129,886 $ 104,660
Net
Income(a) $ 23,392 $ 20,718 $ 27,534 $ 24,427 $ 20,846
Return on
average
tangible
equity 16.53% 12.19% 17.13% 18.81% 19.92%
Diluted
earnings
per share $ 1.33 $ 0.26 $ 0.37 $ 0.36 $ 0.35
Effect of
securities
(gains)
losses,
net of
tax 0.06 0.05 0.01 -- --
Effect of
prepayment
of FHLB
advances,
net of
tax (0.01) -- (0.01) -- --
Diluted
operating
earnings
per share $ 1.38 $ 0.31 $ 0.37 $ 0.36 $ 0.35
Net income $ 23,392 $ 5,222 $ 6,940 $ 6,090 $ 5,140
Effect of
securities
(gains)
losses,
net of
tax 980 808 172 -- --
Effect of
prepayment
of FHLB
advances,
net of
tax (174) -- (174) -- --
Net
operating
income $ 24,198 $ 6,030 $ 6,938 $ 6,090 $ 5,140
(a) The actual number of days in the period were used to annualize
income