This impairment charge will have no adverse effect on: * Daily operations including FDIC coverage of customer deposits * Regulatory capital - all bank subsidiaries remain "well capitalized" * Cash flow or liquidity * Tangible book value
MACON, Ga., July 24, 2008 (PRIME NEWSWIRE) -- Security Bank Corporation (Nasdaq:SBKC) today announced that it will record a $109.7 million pretax, non-cash charge in its second quarter earnings related to impairment of goodwill associated with prior acquisitions. In accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, management re-evaluated its recorded goodwill at the end of the second quarter for possible impairment. The adjustment of goodwill is a non-cash charge that will not adversely impact Security Bank Corporation's daily operations, FDIC deposit insurance coverage, regulatory capital or balance sheet liquidity and cash flow. Furthermore, as of June 30, 2008, each of the six bank subsidiaries remains in the highest regulatory capital category of "well capitalized."
Security Bank Corporation management will host a conference call to discuss results for the quarter ended June 30, 2008 at 10:00 AM Eastern Daylight Savings Time on Wednesday, July 30, 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.
About Security Bank Corporation
Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.8 billion at March 31, 2008. Security Bank Corporation operates six community banks with offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta. In addition, Security Bank Corporation operates an interim real estate and development lender and traditional mortgage originator, Security Real Estate 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 Corporation 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. 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 Corporation's ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Security Bank Corporation 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.