SAVANNAH, Ga., April 21, 2009 (GLOBE NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported a net loss for the first quarter 2009 of $285,000 compared to net income of $1,704,000 in the first quarter 2008. Net loss per diluted share was 5 cents in 2009 compared to net income of 29 cents per diluted share in the first quarter of 2008. The decline in first quarter earnings results primarily from a higher provision for loan losses and a lower net interest margin in 2009 as compared to 2008. Pretax earnings before the provision for loan losses and gain/loss on sale of securities and OREO were $3,180,000 in the first quarter 2009 compared to $3,685,000 in 2008. Other growth and performance ratios are included in the attached financial highlights and information.
During the first quarter 2009 the Company's two largest subsidiaries, The Savannah Bank, N.A. ("Savannah") and Bryan Bank & Trust ("Bryan"), continued to be profitable. Savannah and Bryan account for approximately 91 percent of the Company's total assets and loans.
Total assets increased 5.7 percent to $1 billion at March 31, 2009, up $54 million from $946 million a year earlier. Loans totaled $865 million compared to $835 million one year earlier, an increase of 3.6 percent. Deposits totaled $843 million and $771 million at March 31, 2009 and 2008, respectively, an increase of 9.2 percent. Shareholders' equity increased 1.3 percent to $80 million at March 31, 2009 from $79 million at March 31, 2008. The Company's total capital to risk-weighted assets ratio was 11.52 percent, well in excess of the 10 percent required by the regulatory agencies to maintain well-capitalized status.
John Helmken, President and CEO, said, "Many of the highlights of the first quarter of 2009 -- higher net interest margin compared to the prior quarter, significant deposit growth, reduced exposure to construction and development loans and the streamlining of support functions -- will likely be overshadowed by our first quarterly loss in many years. While we are disappointed by the effect on earnings, our aggressive recognition of charge-offs and impairments and provisioning for potential future losses is more than appropriate in such uncertain economic times. We have not yet seen a stabilization in real estate values, therefore we have pushed our allowance for loan losses up to 1.77 percent of loans at quarter-end, even though our nonperforming loans declined slightly during the quarter."
The allowance for loan losses was $15,309,000, or 1.77 percent of loans at March 31, 2009 compared to $12,128,000 or 1.45 percent of total loans a year earlier. Nonperforming assets were $32,537,000 or 3.73 percent of total loans and other real estate owned at March 31, 2009 compared to $19,536,000 or 2.33 percent at March 31, 2008. At December 31, 2008, nonperforming assets were $35,707,000 or 4.09 percent of loans and other real estate owned. First quarter net charge-offs were $1,711,000 compared to net charge-offs of $1,806,000 in the same period in 2008. The provision for loan losses for the first quarter of 2009 was $3,720,000 compared to $1,070,000 for the first quarter of 2008. The higher provision for loan losses was primarily due to continued weakness in the Company's local real estate markets. In particular, the Hilton Head Island/Bluffton residential market has continued to experience price declines.
Net interest income was down $405,000, or 5.0 percent, in the first quarter 2009 versus the first quarter 2008. First quarter net interest margin declined to 3.36 percent in 2009 as compared to 3.70 percent in 2008 primarily due to lower loan market rates, competitive local deposit pricing and higher levels of noninterest-earning assets. The prime rate declined 200 basis points from 5.25 percent to 3.25 percent over the one year period ended March 31, 2009. On a linked quarter basis, the first quarter 2009 net interest margin increased 12 basis points from the 3.24 percent margin for the fourth quarter 2008.
Noninterest income increased $245,000, or 14 percent in the first quarter of 2009 versus the same period in 2008 due to higher service charges on deposits and mortgage related income, a higher gain on hedges of $112,000 and a gain on the sale of securities of $184,000 partially offset by lower trust and asset management fees.
Noninterest expense increased to $6,475,000, up $324,000 or 5.3 percent, in the first quarter 2009 compared to the first quarter 2008. First quarter 2009 noninterest expense included $139,000 of higher FDIC insurance premiums and a loss on sale of OREO of $164,000. The remainder of the increase was due to higher occupancy and equipment and information technology expense partially offset by lower salaries and employee benefits.
Today, the Board of Directors approved a quarterly cash dividend of 2 cents per share payable on May 18, 2009 to shareholders of record on May 1, 2009.
Helmken added, "We have a strong capital and liquidity position and, more importantly, a strong and growing customer base, all of which aids us now and as we look toward the future. Given the importance of the preservation of capital in the current environment and the challenges of the current credit cycle, we lowered the cash dividend to 2 cents per share from 12.5 cents per share for the same period last year. The lower dividend will preserve over $600,000 of capital per quarter for our Company and give us additional 'dry powder' beyond our already well-capitalized status. This additional capital will also allow us to take advantage of any opportunities that may arise as we move through this cycle. This reduction was a difficult decision as we are fully aware of how important the dividend is to our shareholders, but we believe this will protect the long-term interests of our shareholders. The Board also reduced director's fees for the Company and all subsidiaries."
In April 2009 the Company filed an application with the appropriate regulatory agencies to consolidate Harbourside with Savannah under a national commercial bank charter. The Company expects to realize operational efficiencies and cost savings by consolidating these charters.
The Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank, N.A., Bryan Bank & Trust (Richmond Hill, Georgia), Harbourside Community Bank (Hilton Head Island, SC) 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 local 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.
Attachments
The Savannah Bancorp, Inc. and Subsidiaries
First Quarter Financial Highlights
March 31, 2009 and 2008
($ in thousands, except share data)
(Unaudited)
%
Balance Sheet Data at March 31 2009 2008 Change
--------------------------------------------------------------------
Total assets $999,900 $945,637 5.7
Interest-earning assets 920,205 866,483 6.2
Loans 864,926 834,734 3.6
Other real estate owned 8,342 2,025 312
Deposits 842,519 771,263 9.2
Interest-bearing liabilities 830,087 771,824 7.5
Shareholders' equity 79,644 78,885 1.0
Loan to deposit ratio 102.66% 108.23% (5.1)
Equity to assets 7.97% 8.34% (4.4)
Tier 1 capital to risk-weighted assets 10.26% 10.29% (0.3)
Total capital to risk-weighted assets 11.52% 11.54% (0.2)
Outstanding shares 5,932 5,931 0.0
Book value per share $ 13.42 $ 13.30 0.9
Tangible book value per share $ 12.98 $ 12.84 1.1
Market value per share $ 7.01 $ 17.50 (60)
Loan Quality Data
--------------------------------------------------------------------
Nonaccruing loans $ 23,927 $ 16,915 41
Loans past due 90 days - accruing 268 596 (55)
Net charge-offs 1,711 1,806 (5.3)
Allowance for loan losses 15,309 12,128 26
Allowance for loan losses to total
loans 1.77% 1.45% 22
Nonperforming assets to total loans and
other real estate owned 3.73% 2.33% 60
Performance Data for the First Quarter
--------------------------------------------------------------------
Net (loss) income $ (285) $ 1,704 NM
Return on average assets (0.12)% .73% NM
Return on average equity (1.43)% 8.76% NM
Net interest margin 3.36% 3.70% (9.2)
Efficiency ratio 66.93% 62.54% 7.0
Per share data:
Net (loss) income - basic $ (0.05) $ 0.29 NM
Net (loss) income - diluted $ (0.05) $ 0.29 NM
Dividends $ 0.125 $ 0.125 0.0
Average shares (000s):
Basic 5,933 5,928 0.1
Diluted 5,937 5,951 (0.2)
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, 2009 and 2008
($ in thousands, except share data)
(Unaudited)
March 31,
--------------------------------------------------------------------
2009 2008
--------------------------------------------------------------------
Assets
Cash and due from banks $ 23,180 $ 14,816
Federal funds sold 565 4,998
Interest-bearing deposits 6,460 2,344
--------------------------------------------------------------------
Cash and cash equivalents 30,205 22,158
Securities available for sale, at fair value
(amortized cost of $72,131 and $60,529) 74,589 62,367
Loans held for sale 49 793
Loans, net of allowance for loan losses
of $15,309 and $12,128 849,617 822,606
Premises and equipment, net 10,946 8,237
Other real estate owned 8,342 2,025
Bank-owned life insurance 6,271 6,044
Goodwill and other intangible assets, net 2,606 2,750
Other assets 17,275 18,657
--------------------------------------------------------------------
Total assets $999,900 $945,637
====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 84,739 $ 86,329
Interest-bearing demand 116,804 117,854
Savings 16,219 16,060
Money market 204,711 208,531
Time deposits 420,046 342,489
--------------------------------------------------------------------
Total deposits 842,519 771,263
Short-term borrowings 51,830 64,685
FHLB advances - long-term 10,167 11,895
Subordinated debt 10,310 10,310
Other liabilities 5,430 8,599
--------------------------------------------------------------------
Total liabilities 920,256 866,752
--------------------------------------------------------------------
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 5,933,789 and
5,931,008 shares 5,934 5,931
Additional paid-in capital 38,540 38,327
Retained earnings 32,525 31,474
Treasury stock, 1,443 and 318 shares (4) (4)
Accumulated other comprehensive income, net 2,649 3,157
--------------------------------------------------------------------
Total shareholders' equity 79,644 78,885
--------------------------------------------------------------------
Total liabilities and shareholders' equity $999,900 $945,637
====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Three Months and Five Quarters Ending March 31, 2009 and 2008
($ in thousands, except per share data)
---------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------------
For the Three Months Ended
---------------------------------------------------------------------
March 31,
---------------------- %
2009 2008 Chg
--------------------------------------------------------------------
Interest and dividend income
Loans, including fees $11,643 $14,211 (18)
Loans held for sale 3 12 (75)
Investment securities 905 782 16
Deposits with banks 13 67 (81)
Federal funds sold 2 53 (96)
--------------------------------------------------------------
Total interest and dividend income 12,566 15,125 (17)
--------------------------------------------------------------
Interest expense
Deposits 4,481 6,124 (27)
Short-term borrowings & sub debt 364 881 (59)
FHLB advances 55 49 12
--------------------------------------------------------------
Total interest expense 4,900 7,054 (31)
--------------------------------------------------------------
Net interest income 7,666 8,071 (5.0)
Provision for loan losses 3,720 1,070 248
--------------------------------------------------------------
Net interest income after the
provision for loan losses 3,946 7,001 (44)
--------------------------------------------------------------
Noninterest income
Trust and asset management fees 587 724 (19)
Service charges on deposits 467 387 21
Mortgage related income, net 92 63 46
Other operating income 283 306 (7.5)
Gain on hedges 396 284 39
Gain on sale of securities 184 -- NM
--------------------------------------------------------------
Total noninterest income 2,009 1,764 14
--------------------------------------------------------------
Noninterest expense
Salaries and employee benefits 3,351 3,473 (3.5)
Occupancy and equipment 1,008 889 13
Information technology 438 393 11
Loss (gain) on sale of OREO 164 1 NM
Other operating expense 1,514 1,395 8.5
--------------------------------------------------------------
Total noninterest expense 6,475 6,151 5.3
--------------------------------------------------------------
Income (loss) before income taxes (520) 2,614 NM
Income tax (benefit) expense (235) 910 NM
--------------------------------------------------------------
Net (loss) income $(285) $1,704 NM
==============================================================
Net (loss) income per share:
Basic $(0.05) $0.29 NM
==============================================================
Diluted $(0.05) $0.29 NM
==============================================================
Average basic shares (000s) 5,933 5,928 0.1
Average diluted shares (000s) 5,937 5,951 (0.2)
Performance Ratios
Return on average equity (1.43)% 8.76% NM
Return on average assets (0.12)% 0.73% NM
Net interest margin 3.36% 3.70% (9.2)
Efficiency ratio 66.93% 62.54% 7.0
Average equity 80,873 78,210 3.4
Average assets 1,003,068 934,756 7.3
Average interest-earning assets 925,531 876,022 5.7
--------------------------------------------------------------------
(Unaudited)
--------------------------------------------------------------------
2009 2008 Q1-09/
First Fourth Third Second First Q1-08
Quarter Quarter Quarter Quarter Quarter % Chg
--------------------------------------------------------------------
Interest
and
dividend
income
Loans,
including
fees $11,643 $12,268 $13,333 $13,447 $14,211 (18)
Loans held
for sale 3 8 20 20 12 (75)
Investment
securities 905 817 722 760 782 16
Deposits
with banks 13 18 30 34 67 (81)
Federal
funds sold 2 16 31 33 53 (96)
-------------------------------------------------------------
Total
interest
and
dividend
income 12,566 13,127 14,136 14,294 15,125 (17)
-------------------------------------------------------------
Interest
expense
Deposits 4,481 4,969 5,391 5,358 6,124 (27)
Short-term
borrowings
& sub debt 364 543 412 467 881 (59)
FHLB
advances 55 80 82 83 49 12
-------------------------------------------------------------
Total
interest
expense 4,900 5,592 5,885 5,908 7,054 (31)
-------------------------------------------------------------
Net
interest
income 7,666 7,535 8,251 8,386 8,071 (5.0)
Provision
for loan
losses 3,720 2,270 1,505 1,155 1,070 248
-------------------------------------------------------------
Net
interest
income
after the
provision
for loan
losses 3,946 5,265 6,746 7,231 7,001 (44)
-------------------------------------------------------------
Noninterest
income
Trust and
asset
management
fees 587 675 713 720 724 (19)
Service
charges on
deposits 467 447 513 534 387 21
Mortgage
related
income, net 92 60 86 86 63 46
Other
operating
income 283 314 296 300 306 (7.5)
Gain on
hedges 396 574 430 -- 284 39
Gain on
sale of
securities 184 29 -- 134 -- NM
-------------------------------------------------------------
Total
non-
interest
income 2,009 2,099 2,038 1,774 1,764 14
-------------------------------------------------------------
Noninterest
expense
Salaries
and
employee
benefits 3,351 3,095 3,479 3,489 3,473 (3.5)
Occupancy
and
equipment 1,008 1,118 967 910 889 13
Information
technology 438 421 424 395 393 11
Loss (gain)
on sale of
OREO 164 141 17 (17) 1 NM
Other
operating
expense 1,514 1,431 1,364 1,357 1,395 8.5
-------------------------------------------------------------
Total
non-
interest
expense 6,475 6,206 6,251 6,134 6,151 5.3
-------------------------------------------------------------
Income
(loss)
before
income
taxes (520) 1,158 2,533 2,871 2,614 NM
Income tax
(benefit)
expense (235) 380 895 985 910 NM
-------------------------------------------------------------
Net (loss)
income $(285) $778 $1,638 $1,886 $1,704 NM
=============================================================
Net (loss)
income per
share:
Basic $(0.05) $0.13 $0.28 $0.32 $0.29 NM
=============================================================
Diluted $(0.05) $0.13 $0.28 $0.32 $0.29 NM
=============================================================
Average
basic
shares
(000s) 5,933 5,933 5,930 5,931 5,928 0.1
Average
diluted
shares
(000s) 5,937 5,942 5,943 5,952 5,951 (0.2)
Performance
Ratios
Return on
average
equity (1.43)% 3.86% 8.24% 9.65% 8.76% NM
Return on
average
assets (0.12)% 0.31% 0.68% 0.80% 0.73% NM
Net interest
margin 3.36% 3.24% 3.63% 3.77% 3.70% (9.2)
Efficiency
ratio 66.93% 64.42% 60.75% 60.37% 62.54% 7.0
Average
equity 80,873 80,138 79,035 78,596 78,210 3.4
Average
assets 1,003,068 991,368 964,762 949,937 934,756 7.3
Average
interest-
earning
assets 925,531 922,642 901,992 892,397 876,022 5.7
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 March 31, 2009, 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 $77.0 million, or 7.70 percent of total assets at March 31, 2009. The table below includes the regulatory capital ratios for the Company and each Subsidiary Bank along with the minimum capital ratio and the ratio required to maintain a well-capitalized regulatory status.
($ in Well- thousands) Company Savannah Bryan Harbourside Minimum Capitalized -------------------------------------------------------------------- Qualifying Capital ---------- Tier 1 capital $84,389 $54,395 $20,780 $ 5,227 -- -- Total capital 94,730 61,309 23,270 5,967 -- -- Leverage Ratios -------- Tier 1 capital to average assets 8.41% 8.18% 8.63% 7.24% 4.00% 5.00% Risk-based Ratios ---------- Tier 1 capital to risk- weighted assets 10.26% 9.88% 10.45% 8.99% 4.00% 6.00% Total capital to risk- weighted assets 11.52% 11.14% 11.70% 10.28% 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 above the well-capitalized threshold. The Company currently has capacity to add approximately $14 million of trust preferred borrowings and to the capital markets, if needed, to maintain the well-capitalized status of the Subsidiary Banks.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2009 2008
--------------------------------------------------------------------
First Fourth Third Second First
($ in thousands) Quarter Quarter Quarter Quarter Quarter
--------------------------------------------------------------------
Allowance for loan
losses
Balance at begin-
ning of period $ 13,300 $ 12,390 $ 12,445 $ 12,128 $ 12,864
Provision for loan
losses 3,720 2,270 1,505 1,155 1,070
Net charge-offs (1,711) (1,360) (1,560) (838) (1,806)
--------------------------------------------------------------------
Balance at end of
period $ 15,309 $ 13,300 $ 12,390 $ 12,445 $ 12,128
====================================================================
As a % of loans 1.77% 1.54% 1.45% 1.48% 1.45%
As a % of non-
performing loans 63.27% 48.18% 56.25% 66.61% 69.26%
As a % of non-
performing assets 47.05% 37.25% 43.94% 59.18% 62.08%
Net charge-offs as
a % of average
loans (a) 0.82% 0.65% 0.75% 0.40% 0.90%
Risk element assets
Nonaccruing loans $ 23,927 $ 26,277 $ 17,753 $ 16,991 $ 16,915
Loans past due 90
days - accruing 268 1,330 4,274 1,693 596
--------------------------------------------------------------------
Total nonperforming
loans 24,195 27,607 22,027 18,684 17,511
Other real estate
owned 8,342 8,100 6,168 2,346 2,025
--------------------------------------------------------------------
Total non-
performing
assets $ 32,537 $ 35,707 $ 28,195 $ 21,030 $ 19,536
====================================================================
Loans past due
30-89 days $ 13,179 $ 8,269 $ 8,841 $ 6,528 $ 11,014
Nonperforming loans
as a % of loans 2.80% 3.19% 2.58% 2.22% 2.10%
Nonperforming
assets as a % of
loans and other
real estate owned 3.73% 4.09% 3.28% 2.50% 2.33%
(a) Annualized
The Savannah Bancorp, Inc. & Subsidiaries
Loan Concentration Schedule
March 31, 2009 and December 31, 2008
% of % of % Dollar
($ in thousands) 3/31/09 Total 12/31/08 Total Change
--------------------------------------------------------------------
Non-residential real
estate
Owner-occupied $140,879 16 $137,742 16 2.3
Non owner-occupied 139,334 16 124,502 14 12
Construction 11,893 1 26,965 3 (56)
Commercial land and
lot development 42,837 5 42,590 5 0.6
----------------------------------------------------------
Total non-residential
real estate 334,943 38 331,799 38 0.9
----------------------------------------------------------
Residential real
estate
Owner-occupied - 1-4
family 89,054 10 89,774 10 (0.8)
Non owner-occupied -
1-4 family 153,602 18 147,396 17 4.2
Construction 24,768 3 43,431 5 (43)
Residential land
and lot development 104,296 12 98,715 12 5.7
Home equity lines 57,243 7 55,092 6 3.9
----------------------------------------------------------
Total residential real
estate 428,963 50 434,408 50 (1.3)
----------------------------------------------------------
Total real estate loans 763,906 88 766,207 88 (0.3)
Commercial 85,405 10 81,348 10 5.0
Consumer 15,804 2 17,628 2 (10)
Unearned fees, net (189) -- (209) -- (9.6)
----------------------------------------------------------
Total loans, net of
unearned fees $864,926 100 $864,974 100 0.0
====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - First Quarter,
2009 and 2008
Average Balance Average Rate
----------------------------------------
QTD QTD QTD QTD
3/31/09 3/31/08 3/31/09 3/31/08
--------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 3,817 $ 6,910 1.38 3.89 Interest-bearing deposits
76,748 58,423 4.70 5.23 Investments - taxable
1,573 1,916 5.41 5.44 Investments - non-taxable
3,602 6,598 0.23 3.22 Federal funds sold
108 734 11.27 6.56 Loans held for sale
839,683 801,441 5.62 7.11 Loans (c)
----------------------
Total interest-earning
925,531 876,022 5.51 6.93 assets
----------------
77,537 58,734 Noninterest-earning assets
----------------------
$1,003,068 $ 934,756 Total assets
======================
Liabilities and equity
Deposits
$ 123,346 $ 115,485 0.53 1.56 NOW accounts
15,067 15,990 0.73 0.88 Savings accounts
107,227 135,539 1.79 2.75 Money market accounts
Money market accounts -
98,091 51,667 1.80 3.89 institutional
144,346 146,914 3.77 5.10 CDs, $100M or more
122,728 69,871 2.65 4.41 CDs, broker
140,807 129,993 3.57 4.85 Other time deposits
----------------------
Total interest-bearing
751,612 665,459 2.42 3.69 deposits
10,545 5,733 2.12 3.43 FHLB advances - long-term
62,134 83,349 1.66 3.33 Short-term borrowings
10,310 10,310 4.29 7.39 Subordinated debt
----------------------
Total interest-bearing
834,601 764,851 2.38 3.70 liabilities
----------------
Noninterest-bearing
81,126 83,522 deposits
6,468 8,173 Other liabilities
80,873 78,210 Shareholders' equity
----------------------
$1,003,068 $ 934,756 Liabilities and equity
======================
3.13 3.23 Interest rate spread
================
3.36 3.70 Net interest margin
================
Net interest income
$ 90,930 $ 111,171 Net earning assets
======================
$ 832,738 $ 748,981 Average deposits
======================
2.18 3.28 Average cost of deposits
================
Average loan to deposit
101% 107% ratio
======================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
---------------- ----------------
QTD QTD Vari-
3/31/09 3/31/08 ance Rate Volume
--------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing
deposits $ 13 $ 67 $ (54) $ (43) $ (11)
Investments - taxable 890 762 128 (76) 204
Investments -
non-taxable 21 26 (5) -- (5)
Federal funds sold 2 53 (51) (49) (2)
Loans held for sale 3 12 (9) 9 (18)
Loans (c) 11,645 14,213 (2,568) (2,944) 376
-------------------------
Total interest-earning
assets 12,574 15,133 (2,559) (3,067) 508
-------------------------------------------
Noninterest-earning
assets
Total assets
Liabilities and equity
Deposits
NOW accounts 160 449 (289) (293) 4
Savings accounts 27 35 (8) (6) (2)
Money market accounts 473 930 (457) (321) (136)
Money market accounts -
institutional 436 501 (65) (266) 201
CDs, $100M or more 1,342 1,867 (525) (482) (43)
CDs, broker 803 769 34 (303) 337
Other time deposits 1,240 1,573 (333) (410) 77
-------------------------
Total interest-bearing
deposits 4,481 6,124 (1,643) (2,084) 441
FHLB advances -
long-term 55 49 6 (19) 25
Short-term borrowings 255 691 (436) (343) (93)
Subordinated debt 109 190 (81) (79) (2)
-------------------------
Total interest-bearing
liabilities 4,900 7,054 (2,154) (2,489) 335
-------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $ 7,674 $ 8,079 $ (405) $ (578) $ 173
===========================================
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 in the first
quarter 2009 and 2008, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.