SAVANNAH, Ga., July 22, 2008 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income for the second quarter 2008 of $1,886,000 compared to $2,591,000 in the second quarter 2007. Net income per diluted share was 32 cents compared to 44 cents per diluted share in the second quarter of 2007, a decrease of 27 percent. The decline in second quarter earnings results primarily from a higher provision for loan losses and a lower net interest margin in 2008 as compared to 2007. Second quarter 2008 earnings include the net income derived from the previously announced acquisition of Minis & Co., Inc. ("Minis") on August 31, 2007.
Total assets increased 10 percent to $964 million at June 30, 2008, up $91 million from $873 million a year earlier. Loans, excluding loans held for sale, were $838 million compared to $752 million one year earlier, an increase of 11 percent. Deposits totaled $808 million and $726 million at June 30, 2008 and 2007, respectively, an increase of 11 percent. Shareholders' equity increased 12 percent to $78 million at June 30, 2008 from $70 million at June 30, 2007. We continue to maintain a strong capital position with a total capital to risk-weighted assets ratio of 11.75 percent, well in excess of the 10 percent required by the regulators to maintain well-capitalized status.
John Helmken, President and CEO, said, "In any environment mid-year net income of $3.6 million is very solid for our Company, but especially given the $1.3 million in additional loan loss provisions recorded in the first six months of 2008 versus the same period in 2007. On a linked quarter basis, second quarter 2008 net income increased 11 percent over the first quarter. Through the hard work of our team of experienced bankers, our net interest margin improved by seven basis points in the second quarter. Additionally, our quarter over quarter growth in loans and deposits, a better deposit mix and stabilization of noninterest expenses have all been achieved through the efforts of our team and indicate a concentration on improving our performance."
The allowance for loan losses was $12,445,000, or 1.48 percent of loans at June 30, 2008 compared to $9,517,000 or 1.27 percent of total loans a year earlier. Nonperforming assets were $21,030,000 or 2.50 percent of total loans and other real estate owned at June 30, 2008 compared to $2,595,000 or 0.34 percent at June 30, 2007. Second quarter net charge-offs were $838,000 compared to net charge-offs of $98,000 in the same period in 2007. The provision for loan losses for the second quarter of 2008 was $1,155,000 compared to $395,000 for the second quarter of 2007.
Helmken added, "As our numbers indicate, we continue to focus on growing and serving our customers and prospects. Senior management is equally focused on our loan portfolio. The process of early identification and acknowledgement of problem assets that we started last year is serving us well through these trying times. We remain aggressive, decisive and direct in identifying and acting on problem relationships. While we did successfully work out approximately $3.3 million in problem loans in the second quarter, nonperforming loans were up slightly compared to the first quarter 2008. In particular the Hilton Head Island/Bluffton market, which accounts for 74% of our nonperforming loans, remains a distressed market. Management continues to focus on addressing the loan quality and other issues in the Hilton Head Island/Bluffton market and at our Harbourside Community Bank subsidiary specifically."
Net interest income was flat in the second quarter 2008 versus the second quarter 2007. Second quarter net interest margin declined to 3.77 percent in 2008 from 4.13 percent in 2007 primarily due to lower loan market rates, competitive deposit pricing and growth in higher cost deposits. The second quarter 2008 net interest margin was a slight improvement over the 3.70 percent margin for the first quarter 2008.
Noninterest income increased $791,000, or 79 percent in the second quarter of 2008 versus the same period in 2007 due to higher trust and investment management fees of $531,000 and the gain on the sale of securities of $134,000 partially offset by $80,000 in lower mortgage related income.
Noninterest expense increased to $6,151,000, up $1,125,000 or 22 percent, in the second quarter 2008 compared to the second quarter 2007. Second quarter 2008 noninterest expense included $353,000 of expenses related to Minis. Noninterest expense also included $135,000 of higher FDIC insurance premiums and approximately $75,000 of costs related to other real estate owned and loan costs. The remainder of the increase was due to higher personnel, occupancy and equipment and other expense.
Today, the Board of Directors approved a regular quarterly cash dividend of 12.5 cents per share payable on August 18, 2008 to shareholders of record on August 1, 2008.
The Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank, N.A. ("Savannah"), Bryan Bank & Trust (Richmond Hill, Georgia) ("Bryan"), Harbourside Community Bank (Hilton Head Island, SC) ("Harbourside") and Minis & Co., Inc., is headquartered in Savannah, Georgia and began operations in 1990. Its primary businesses include loan, deposit, trust, asset management, and mortgage origination services provided to customers.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements identified by words or phrases such as "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "assume," "outlook," "continue," "seek," "plans," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. These statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. There can be no assurance that these transactions will occur or that the expected benefits associated therewith will be achieved. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond our ability to control or predict. These factors include, but are not limited to, those found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.
The Savannah Bancorp, Inc. and Subsidiaries
Second Quarter Financial Highlights
June 30, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
%
Balance Sheet Data at June 30 2008 2007 Change
---------------------------------------------------------------------
Total assets $963,600 $872,664 10
Interest-earning assets 901,643 829,589 8.7
Loans 838,426 752,328 11
Allowance for loan losses 12,445 9,517 31
Non-accruing loans 16,991 1,895 NM
Loans past due 90 days - accruing 1,693 44 NM
Other real estate owned 2,346 656 NM
Net charge-offs 2,644 332 NM
Deposits 808,148 726,013 11
Interest-bearing liabilities 793,509 706,804 12
Shareholders' equity 78,463 70,025 12
Allowance for loan losses to total loans 1.48% 1.27% 17
Nonperforming assets to total loans and
other real estate owned 2.50% 0.34% NM
Loan to deposit ratio 103.75% 103.62% 0.1
Equity to assets 8.14% 8.02% 1.5
Tier 1 capital to risk-weighted assets 10.50% 11.32% (7.2)
Total capital to risk-weighted assets 11.75% 12.57% (6.5)
Outstanding shares 5,931 5,834 1.7
Book value per share $ 13.23 $ 12.00 10
Tangible book value per share $ 12.77 $ 12.00 6.4
Market value per share $ 13.00 $ 25.10 (48)
Performance Data for the Second Quarter
---------------------------------------------------------------------
Net income $ 1,886 $ 2,591 (27)
Return on average assets 0.80% 1.23% (35)
Return on average equity 9.65% 14.94% (35)
Net interest margin 3.77% 4.13% (8.7)
Efficiency ratio 60.44% 53.40% 13
Per share data:
Net income - basic $ 0.32 $ 0.44 (27)
Net income - diluted $ 0.32 $ 0.44 (27)
Dividends $ 0.125 $ 0.120 4.2
Average shares (000s):
Basic 5,931 5,824 1.8
Diluted 5,952 5,899 0.9
Performance Data for the First Six Months
---------------------------------------------------------------------
Net income $ 3,590 $ 4,902 (27)
Return on average assets 0.76% 1.17% (35)
Return on average equity 9.18% 14.42% (36)
Net interest margin 3.74% 4.15% (9.9)
Efficiency ratio 61.47% 54.58% 13
Per share data:
Net income - basic $ 0.61 $ 0.84 (27)
Net income - diluted $ 0.60 $ 0.83 (28)
Dividends $ 0.250 $ 0.240 4.2
Average shares (000s):
Basic 5,929 5,803 2.2
Diluted 5,952 5,895 1.0
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
June 30,
---------------------------------------------------------------------
2008 2007
---------------------------------------------------------------------
Assets
Cash and due from banks $ 18,237 $ 23,093
Federal funds sold 12,707 8,777
Interest-bearing deposits 9,763 4,874
---------------------------------------------------------------------
Cash and cash equivalents 40,707 36,744
Securities available for sale, at fair value
(amortized cost of $56,475 in 2008 and $64,379
in 2007) 56,678 63,489
Loans held for sale 1,263 1,126
Loans, net of allowance for loan losses
of $12,445 in 2008 and $9,517 in 2007 825,981 742,811
Premises and equipment, net 9,519 6,198
Other real estate owned 2,346 656
Bank-owned life insurance 6,100 5,870
Goodwill and other intangible assets, net 2,714 --
Other assets 18,292 15,770
---------------------------------------------------------------------
Total assets $963,600 $872,664
=====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 83,736 $ 89,098
Interest-bearing demand 127,699 122,209
Savings 16,005 18,627
Money market 221,958 168,411
Time deposits 358,750 327,668
---------------------------------------------------------------------
Total deposits 808,148 726,013
Short-term borrowings 46,961 56,437
FHLB advances - long-term 11,826 3,142
Subordinated debt 10,310 10,310
Other liabilities 7,892 6,737
---------------------------------------------------------------------
Total liabilities 885,137 802,639
---------------------------------------------------------------------
Shareholders' equity
Preferred stock, par value $1 per share:
authorized 10,000,000 shares, none issued -- --
Common stock, par value $1 per share: authorized
20,000,000 shares; issued 5,931,008 and 5,833,860
shares in 2008 and 2007, respectively 5,931 5,834
Additional paid-in capital 38,419 36,347
Retained earnings 32,618 29,189
Treasury stock, 318 in 2008 and 2007 (4) (4)
Accumulated other comprehensive income (loss), net 1,499 (1,341)
---------------------------------------------------------------------
Total shareholders' equity 78,463 70,025
---------------------------------------------------------------------
Total liabilities and shareholders' equity $963,600 $872,664
=====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
For the Six Months and Five Quarters Ending June 30, 2008 and 2007
($ in thousands, except per share data)
---------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------------
For the Six Months Ended
---------------------------------------------------------------------
June 30,
----------------- %
2008 2007 Chg
---------------------------------------------------------------------
Interest and dividend income
Loans, including fees $27,658 $29,224 (5.4)
Loans held for sale 32 69 (54)
Investment securities 1,542 1,346 15
Deposits with banks 101 201 (50)
Federal funds sold 86 296 (71)
-------------------------------------------------------------
Total interest and dividend income 29,419 31,136 (5.5)
-------------------------------------------------------------
Interest expense
Deposits 11,482 12,571 (8.7)
Short-term borrowings 1,348 1,658 (19)
FHLB advances 132 319 (59)
-------------------------------------------------------------
Total interest expense 12,962 14,548 (11)
-------------------------------------------------------------
Net interest income 16,457 16,588 (0.8)
Provision for loan losses 2,225 895 149
-------------------------------------------------------------
Net interest income after the provision for
loan losses 14,232 15,693 (9.3)
-------------------------------------------------------------
Noninterest income
Trust and asset management fees 1,444 365 296
Service charges on deposits 921 695 33
Mortgage related income, net 149 376 (60)
Other operating income 890 623 42
Gain (loss) on sale of OREO 16 (6) NM
Gain on sale of securities 134 -- NM
-------------------------------------------------------------
Total noninterest income 3,554 2,053 73
-------------------------------------------------------------
Noninterest expense
Salaries and employee benefits 6,962 5,802 20
Occupancy and equipment 1,799 1,540 17
Information technology 788 806 (2.2)
Other operating expense 2,752 2,026 36
-------------------------------------------------------------
Total noninterest expense 12,301 10,174 21
-------------------------------------------------------------
Income before income taxes 5,485 7,572 (28)
Income tax expense 1,895 2,670 (29)
-------------------------------------------------------------
Net income $ 3,590 $ 4,902 (27)
=============================================================
Net income per share:
Basic $ 0.61 $ 0.84 (27)
=============================================================
Diluted $ 0.60 $ 0.83 (28)
=============================================================
Average basic shares (000s) 5,929 5,803 2.2
Average diluted shares (000s) 5,952 5,895 1.0
Performance Ratios
Return on average equity 9.18% 14.42% (36)
Return on average assets 0.76% 1.17% (35)
Net interest margin 3.74% 4.15% (9.9)
Efficiency ratio 61.47% 54.58% 13
Average equity 78,404 68,544 14
Average assets 942,258 845,071 12
Average interest-earning assets 884,125 810,525 9.1
-----------------------------------------------------------------------
(Unaudited)
-----------------------------------------------------------------------
2008 2007 Q2-08/
Second First Fourth Third Second Q2-07
Quarter Quarter Quarter Quarter Quarter % Chg
------------------------------------------------------
Interest and
dividend income
Loans, including
fees $13,447 $14,211 $15,016 $15,196 $14,872 (9.6)
Loans held for
sale 20 12 14 15 35 (43)
Investment
securities 760 782 767 794 726 4.7
Deposits with
banks 34 67 100 44 119 (71)
Federal funds
sold 33 53 45 130 125 (74)
-----------------------------------------------
Total interest
and dividend
income 14,294 15,125 15,942 16,179 15,877 (10)
-----------------------------------------------
Interest expense
Deposits 5,358 6,124 6,881 6,963 6,479 (17)
Short-term
borrowings 467 881 935 860 831 (44)
FHLB advances 83 49 46 48 155 (46)
-----------------------------------------------
Total interest
expense 5,908 7,054 7,862 7,871 7,465 (21)
-----------------------------------------------
Net interest
income 8,386 8,071 8,080 8,308 8,412 (0.3)
Provision for
loan losses 1,155 1,070 3,145 635 395 192
-----------------------------------------------
Net interest
income after
the provision
for loan losses 7,231 7,001 4,935 7,673 8,017 (9.8)
-----------------------------------------------
Noninterest
income
Trust and asset
management fees 720 724 769 379 189 281
Service charges
on deposits 534 387 349 339 348 53
Mortgage related
income, net 86 63 98 141 166 (48)
Other operating
income 300 590 315 305 303 (1.0)
Gain (loss) on
sale of OREO 17 (1) (38) -- (6) NM
Gain on sale of
securities 134 -- -- -- -- NM
-----------------------------------------------
Total
noninterest
income 1,791 1,763 1,493 1,164 1,000 79
-----------------------------------------------
Noninterest
expense
Salaries and
employee
benefits 3,489 3,473 3,125 2,919 2,838 23
Occupancy and
equipment 910 889 958 796 782 16
Information
technology 395 393 422 388 381 3.7
Other operating
expense 1,357 1,395 1,285 1,073 1,025 32
-----------------------------------------------
Total
noninterest
expense 6,151 6,150 5,790 5,176 5,026 22
-----------------------------------------------
Income before
income taxes 2,871 2,614 638 3,661 3,991 (28)
Income tax
expense 985 910 285 1,280 1,400 (30)
-----------------------------------------------
Net income $ 1,886 $ 1,704 $ 353 $ 2,381 $ 2,591 (27)
===============================================
Net income per
share:
Basic $ 0.32 $ 0.29 $ 0.06 $ 0.41 $ 0.44 (27)
===============================================
Diluted $ 0.32 $ 0.29 $ 0.06 $ 0.40 $ 0.44 (27)
===============================================
Average basic
shares (000s) 5,931 5,928 5,923 5,862 5,824 1.8
Average diluted
shares (000s) 5,952 5,951 5,968 5,928 5,899 0.9
Performance Ratios
Return on
average equity 9.65% 8.76% 1.83% 13.04% 14.94% (35)
Return on
average assets 0.80% 0.73% 0.15% 1.08% 1.23% (35)
Net interest
margin 3.77% 3.70% 3.72% 3.95% 4.13% (8.7)
Efficiency ratio 60.44% 62.54% 60.48% 54.65% 53.40% 13
Average equity 78,596 78,210 74,447 72,436 69,583 13
Average assets 949,937 934,756 910,785 875,532 855,989 11
Average
interest-
earning assets 892,397 876,022 865,430 837,586 821,253 8.7
Capital Resources
The banking regulatory agencies have adopted capital requirements that specify the minimum level for which no prompt corrective action is required. In addition, the FDIC assesses FDIC insurance premiums based on certain "well-capitalized" risk-based and equity capital ratios. As of June 30, 2008, the Company and the Subsidiary Banks exceeded the minimum requirements necessary to be classified as "well-capitalized."
Total tangible equity capital for the Company was $75.7 million, or 7.86 percent of total assets at June 30, 2008. The table below includes the regulatory capital ratios for the Company and each Subsidiary Bank along with the minimum capital ratio and the ratio required to maintain a well-capitalized regulatory status.
($ in Well- thousands) Company Savannah Bryan Harbourside Minimum Capitalized ----------------------------------------------------------------------- Qualifying Capital Tier 1 capital $84,250 $52,580 $19,146 $7,666 -- -- Total capital 94,311 59,185 21,569 8,630 -- -- Leverage Ratios Tier 1 capital to average assets 8.87% 8.33% 8.85% 8.15% 4.00% 5.00% Risk-based Ratios Tier 1 capital to risk- weighted assets 10.50% 9.99% 9.88% 9.99% 4.00% 6.00% Total capital to risk-weighted assets 11.75% 11.24% 11.14% 11.24% 8.00% 10.00%
Tier 1 and total capital at the Company level includes $10 million of subordinated debt issued to the Company's nonconsolidated subsidiaries. Total capital also includes the allowance for loan losses up to 1.25 percent of risk-weighted assets.
The capital ratios are significantly above the well-capitalized threshold. The Company currently has access to approximately $12 million of trust preferred borrowings and to the capital markets, if needed, to maintain the well-capitalized status of the Subsidiary Banks.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2008 2007
-------------------------------------------
Second First Fourth Third Second
($ in thousands) Quarter Quarter Quarter Quarter Quarter
-------------------------------------------
Allowance for loan losses
Balance at beginning of
period $12,128 $12,864 $ 9,842 $ 9,517 $ 9,220
Provision for loan losses 1,155 1,070 3,145 635 395
Net charge-offs (838) (1,806) (123) (310) (98)
-------------------------------------------
Balance at end of period $12,445 $12,128 $12,864 $ 9,842 $ 9,517
===========================================
As a % of loans 1.48% 1.45% 1.59% 1.26% 1.27%
As a % of nonperforming
loans 66.61% 69.26% 73.83% 145.68% 490.82%
As a % of nonperforming
assets 59.18% 62.08% 65.85% 124.46% 366.74%
Net charge-offs as a % of
average loans (a) 0.40% 0.90% 0.07% 0.17% 0.05%
Risk element assets
Nonaccruing loans $16,991 $16,915 $14,663 $ 5,028 $ 1,895
Loans past due 90 days -
accruing 1,693 596 2,761 1,728 44
-------------------------------------------
Total nonperforming loans 18,684 17,511 17,424 6,756 1,939
Other real estate owned 2,346 2,025 2,112 1,152 656
-------------------------------------------
Total nonperforming
assets $21,030 $19,536 $19,536 $ 7,908 $ 2,595
===========================================
Loans past due 30-89 days $ 6,528 $11,014 $ 4,723 $ 5,302 $ 5,127
Nonperforming loans as a
% of loans 2.22% 2.10% 2.24% 0.87% 0.26%
Nonperforming assets as a
% of loans and other real
estate owned 2.50% 2.33% 2.51% 1.01% 0.34%
Nonperforming assets as a
% of capital (b) 23.13% 21.47% 21.92% 9.30% 3.26%
(a) Annualized
(b) Capital includes the allowance for loan losses
The Savannah Bancorp, Inc. & Subsidiaries
Loan Concentration Schedule
June 30, 2008 and December 31, 2007
% of % of % Dollar
($ in thousands) 6/30/08 Total 12/31/07 Total Change
----------------------------------------------------------------------
Non-residential real estate
Owner-occupied $136,838 16 $118,714 15 15
Non owner-occupied 116,475 14 118,904 15 (2)
Construction 25,567 3 33,923 4 (25)
Commercial land and lot
development 38,943 5 38,127 5 2
------------------------------------------------------------
Total non-residential real
estate 317,823 38 309,668 39 3
------------------------------------------------------------
Residential real estate
Owner-occupied -- 1-4 family 84,526 10 83,828 10 1
Non owner-occupied -- 1-4
family 126,816 15 114,992 14 10
Construction 55,151 7 57,541 7 (4)
Residential land and lot
development 108,082 13 109,718 14 (1)
Home equity lines 47,178 5 43,322 5 9
------------------------------------------------------------
Total residential real estate 421,753 50 409,401 50 3
------------------------------------------------------------
Total real estate loans 739,576 88 719,069 89 3
Commercial 80,217 10 71,370 9 12
Consumer 18,882 2 18,692 2 1
Unearned fees, net (249) -- (480) -- (48)
------------------------------------------------------------
Total loans, net of unearned
fees $838,426 100 $808,651 100 4
======================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - Second Quarter, 2008
and 2007
Average Balance Average Rate
-------------------------------------
QTD QTD QTD QTD
6/30/08 6/30/07 6/30/08 6/30/07
----------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 5,675 $9,207 2.40 5.18 Interest-bearing deposits
57,466 56,757 5.17 5.01 Investments - taxable
1,915 2,060 5.24 7.79 Investments - non-taxable
7,080 9,408 1.87 5.33 Federal funds sold
980 2,063 8.19 6.80 Loans held for sale
819,281 741,758 6.58 8.05 Loans (c)
-------------------
892,397 821,253 6.43 7.77 Total interest-earning assets
---------------
57,540 34,736 Noninterest-earning assets
-------------------
$949,937 $855,989 Total assets
===================
Liabilities and equity
Deposits
$121,168 $120,092 1.16 2.09 NOW accounts
15,882 18,799 0.88 1.02 Savings accounts
138,915 128,106 2.25 4.11 Money market accounts
Money market accounts -
68,601 34,291 2.50 5.51 institutional
149,010 125,404 4.64 5.36 CDs, $100M or more
69,404 68,149 3.44 4.78 CDs, broker
131,358 121,831 4.42 5.05 Other time deposits
-------------------
694,338 616,672 3.10 4.21 Total interest-bearing deposits
11,876 12,095 2.80 5.14 FHLB advances - long-term
62,738 48,122 2.10 5.14 Short-term borrowings
10,310 10,310 5.37 8.33 Subordinated debt
-------------------
Total interest-bearing
779,262 687,199 3.04 4.36 Liabilities
---------------
84,130 92,844 Noninterest-bearing deposits
7,949 6,363 Other liabilities
78,596 69,583 Shareholders' equity
-------------------
$949,937 $855,989 Liabilities and equity
===================
3.39 3.41 Interest rate spread
===============
3.77 4.13 Net interest margin
===============
Net interest income
$113,135 $134,054 Net earning assets
===================
$778,468 $709,516 Average deposits
===================
2.76 3.66 Average cost of deposits
===============
105% 105% Average loan to deposit ratio
====================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
------------------ ---------------
QTD QTD Vari-
6/30/08 6/30/07 ance Rate Volume
-----------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 34 $ 119 $(85) $ (64) $ (21)
Investments - taxable 741 709 32 23 9
Investments - non-taxable 25 40 (15) (13) (2)
Federal funds sold 33 125 (92) (81) (11)
Loans held for sale 20 35 (15) 7 (22)
Loans (c) 13,449 14,888 (1,439) (2,718) 1,279
---------------------------
Total interest-earning
assets 14,302 15,916 (1,614) (2,744) 1,130
--------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 351 625 (274) (278) 4
Savings accounts 35 48 (13) (7) (6)
Money market accounts 778 1,313 (535) (594) 59
Money market accounts -
institutional 427 471 (44) (257) 213
CDs, $100M or more 1,724 1,677 47 (225) 272
CDs, broker 595 812 (217) (228) 11
Other time deposits 1,448 1,533 (85) (191) 106
---------------------------
Total interest-bearing
deposits 5,358 6,479 (1,121) (1,707) 586
FHLB advances - long-term 83 155 (72) (71) (1)
Short-term borrowings 329 617 (288) (365) 77
Subordinated debt 138 214 (76) (76) --
---------------------------
Total interest-bearing
Liabilities 5,908 7,465 (1,557) (2,262) 705
--------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $ 8,394 $ 8,451 $ (57) $ (482) $ 425
============================================
Net earning assets
Average deposits
Average cost of deposits
Average loan to deposit
ratio
(a) This table shows the changes in interest income and interest
expense for the comparative periods based on either changes in
average volume or changes in average rates for interest-earning
assets and interest-bearing liabilities. Changes which are not
solely due to rate changes or solely due to volume changes are
attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $8 and $39 in
the second quarter 2008 and 2007, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - First Six Months, 2008
and 2007
Average Balance Average Rate
------------------------------------
YTD YTD YTD YTD
6/30/08 6/30/07 6/30/08 6/30/07
------------------------------------
($ in thousands) (%)
Assets
$ 6,294 $7,710 3.22 5.26 Interest-bearing deposits
57,945 53,986 5.20 4.91 Investments - taxable
1,915 2,000 5.45 7.86 Investments - non-taxable
6,750 11,309 2.56 5.28 Federal funds sold
857 1,859 7.49 7.48 Loans held for sale
810,364 733,661 6.85 8.04 Loans (c)
------------------
884,125 810,525 6.68 7.77 Total interest-earning assets
----------------
58,133 34,546 Noninterest-earning assets
------------------
$942,258 $845,071 Total assets
==================
Liabilities and equity
Deposits
$118,326 $114,642 1.35 2.05 NOW accounts
15,935 18,596 0.91 1.01 Savings accounts
137,228 121,890 2.49 4.37 Money market accounts
Money market accounts -
60,134 34,291 3.09 4.21 institutional
147,962 121,312 4.87 5.30 CDs, $100M or more
69,637 74,090 3.93 4.81 CDs, broker
130,675 120,588 4.63 5.01 Other time deposits
------------------
679,897 605,409 3.39 4.19 Total interest-bearing deposits
8,804 12,680 3.01 5.07 FHLB advances - long-term
72,956 48,734 2.80 5.14 Short-term borrowings
10,310 10,310 6.38 8.14 Subordinated debt
------------------
Total interest-bearing
771,967 677,133 3.37 4.33 Liabilities
----------------
83,827 92,988 Noninterest-bearing deposits
8,060 6,406 Other liabilities
78,404 68,544 Shareholders' equity
------------------
$942,258 $845,071 Liabilities and equity
==================
3.31 3.44 Interest rate spread
================
3.74 4.15 Net interest margin
================
Net interest income
$112,158 $133,392 Net earning assets
==================
$763,724 $698,397 Average deposits
==================
3.02 3.63 Average cost of deposits
================
106% 105% Average loan to deposit ratio
===================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
------------------ ---------------
YTD YTD Vari-
6/30/08 6/30/07 ance Rate Volume
-----------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 101 $ 201 $ (100) $ (78) $ (22)
Investments - taxable 1,502 1,314 188 78 110
Investments - non-taxable 52 78 (26) (24) (2)
Federal funds sold 86 296 (210) (153) (57)
Loans held for sale 32 69 (37) -- (37)
Loans (c) 27,662 29,256 (1,594) (4,353) 2,759
---------------------------
Total interest-earning
assets 29,435 31,214 (1,779) (4,405) 2,626
--------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 799 1,167 (368) (400) 32
Savings accounts 72 93 (21) (9) (12)
Money market accounts 1,706 2,643 (937) (1,143) 206
Money market accounts -
institutional 928 716 212 (192) 404
CDs, $100M or more 3,593 3,189 404 (260) 664
CDs, broker 1,364 1,768 (404) (325) (79)
Other time deposits 3,020 2,995 25 (228) 253
---------------------------
Total interest-bearing
deposits 11,482 12,571 (1,089) (2,415) 1,326
FHLB advances - long-term 132 319 (187) (130) (57)
Short-term borrowings 1,020 1,242 (222) (569) 347
Subordinated debt 328 416 (88) (90) 2
---------------------------
Total interest-bearing
Liabilities 12,962 14,548 (1,586) (3,241) 1,655
--------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $16,473 $16,666 $(193) $(1,164) $971
============================================
Net earning assets
Average deposits
Average cost of deposits
Average loan to deposit
ratio
(a) This table shows the changes in interest income and interest
expense for the comparative periods based on either changes in
average volume or changes in average rates for interest-earning
assets and interest-bearing liabilities. Changes which are not
solely due to rate changes or solely due to volume changes are
attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $16 and $78 in
2008 and 2007, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.