ELLIJAY, Ga., April 27, 2007 (PRIME NEWSWIRE) -- Appalachian Bancshares, Inc. (Nasdaq:APAB) today announced that net income for the first quarter of 2007 was $1,559,000, or $0.30 per diluted share, a 1.56% increase in net income when compared to $1,535,000, or $0.29 per diluted share, for the same period in 2006.
Total assets grew 34% to $827.1 million on March 31, 2007, compared to $617.4 million on March 31, 2006. Total loans were $672.7 million at March 31, 2007, an increase of $180.0 million or 36%, when compared to $492.7 million on March 31, 2006. Deposits grew 44% to $708.0 million on March 31, 2007, compared to $490.6 million on March 31, 2006.
Tracy Newton, chief executive officer, said, "Our expansionary efforts continued to show results in 2007. Since completing our stock offering in October 2005, we have focused on hiring the right people and building the infrastructure needed to run a growing bank and to expand into new markets. At March 31, 2007, $77.3 million in loans and $56.3 million in deposits were attributable to the six new banking offices opened in our new markets since March 31, 2006, as well as $2.6 million in loans held for sale attributable to our new mortgage department. In addition, on Monday, April 23, 2007, we became a multi-state bank franchise, upon the opening of Appalachian Community Bank, F.S.B., our new thrift subsidiary, headquartered in McCaysville, Georgia, with branch locations in Ducktown, Tennessee, and Murphy, North Carolina."
Annualized return on average assets for the first quarter of 2007 was 0.80% compared to 1.07% for the first quarter of 2006. Annualized return on average shareholders' equity for the first quarter of 2007 was 9.40% compared to 10.32% for the same quarter in 2006. Earnings for the first quarter of 2007 were impacted by the $2.7 million increase in non-interest expenses, $1.4 million of which resulted from the Company's expansionary activities, which included hiring 90 new full-time equivalent employees since March 31, 2006. In addition, net interest income increased $1.9 million, or 26.9%, resulting from higher earning assets and liabilities. Book value per share stood at $13.14 at March 31, 2007, compared to $11.91 per share at March 31, 2006.
Conference Call
The Company will hold a conference call on Friday, April 27, 2007, at 11:00 a.m. ET, to discuss its financial results and strategic initiatives and to entertain questions. Listeners will be able to participate in the question and answer session. The telephone number for the conference call is 1-877-407-9210. The conference call will also be available by webcast through the Company's website, www.apab.com, by clicking on the Investor Relations section. A replay of the call will be archived on the Company's website for one year.
About Appalachian Bancshares, Inc.
The Company is based in Ellijay, Georgia, and is the holding company of Appalachian Community Bank, a Georgia state-chartered bank, and Appalachian Community Bank, F.S.B., a federally-chartered thrift. The Company, through Appalachian Community Bank (which also operates in Gilmer County, Georgia, under the trade name of Gilmer County Bank) and Appalachian Community Bank, F.S.B., provides a full range of community banking services, to individuals and to small and medium-sized businesses, through its ten banking offices, located in Ellijay, East Ellijay, Blue Ridge, Blairsville, Chatsworth, Dawsonville and McCaysville, Georgia, and in Ducktown, Tennessee, and Murphy, North Carolina. The Company's common stock trades on the NASDAQ Global Market under the symbol APAB. For more information, please visit the Company's website at www.apab.com.
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes, and other risks and uncertainties described in our company's filings with the Securities and Exchange Commission. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Please contact Tracy Newton, Chief Executive Officer, or Joe Moss, President and Chief Operating Officer, at (706) 276-8160, with any questions or requests for additional information.
APPALACHIAN BANCSHARES, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
--------------------
2007 2006
-------- --------
Summary Results of Operations Data:
Interest income $ 16,564 $ 11,063
Interest expense 7,694 4,075
-------- --------
Net interest income 8,870 6,988
Provision for loan losses 636 885
-------- --------
Net interest income after provision
for loan losses 8,234 6,103
Noninterest income 1,372 859
Noninterest expense 7,297 4,586
-------- --------
Income before taxes 2,309 2,376
Income tax expense 750 841
-------- --------
Net income $ 1,559 $ 1,535
======== ========
Per Share Data:
Net income, basic $ 0.30 $ 0.30
Net income, diluted 0.30 0.29
Book value 13.14 11.91
Weighted average number of
shares outstanding:
Basic 5,215 5,154
Diluted 5,257 5,289
Performance Ratios:
Return on average assets(1) 0.80% 1.07%
Return on average equity(1) 9.40% 10.32%
Net interest margin(1) (2) 4.90% 5.25%
Efficiency ratio(3) 71.25% 58.44%
Growth Ratios and Other Data:
Percentage change in net income 1.56%
Percentage change in diluted net
income per share 3.45%
At March 31,
--------------------
2007 2006
-------- --------
Summary Balance Sheet Data:
Assets $827,088 $617,369
Average earning assets 741,437 545,574
Investment securities 76,137 72,103
Loans 670,098 492,678
Loans held for sale 2,570 --
Allowance for loan losses 8,144 6,002
Deposits 707,961 490,553
Short-term borrowings 5,185 25,775
Accrued interest 1,532 860
Federal Home Loan Bank advances 34,800 29,700
Subordinated long-term capital notes 6,186 6,186
Other liabilities 2,965 2,911
Shareholders' equity 68,459 61,384
Asset Quality Ratios:
Nonperforming loans to total loans 0.39% 0.43%
Nonperforming assets to total assets 0.46% 0.44%
Net charge-offs to average total loans 0.02% 0.20%
Allowance for loan losses to
nonperforming loans 310.60% 284.05%
Allowance for loan losses to total loans 1.21% 1.22%
Growth Ratios and Other Data:
Percentage change in assets 33.97%
Percentage change in loans 36.01%
Percentage change in deposits 44.32%
Percentage change in equity 11.53%
Loans to deposits ratio 94.65%
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(1) Annualized.
(2) Taxable equivalent.
(3) Computed by dividing noninterest expense by the sum of the net
interest income and noninterest income.
APPALACHIAN BANCSHARES, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
--------------------
2007 2006
-------- --------
Interest Income
Interest and fees on loans $ 15,585 $ 10,301
Interest on securities:
Taxable securities 691 531
Nontaxable securities 157 167
Interest on deposits with other banks 27 8
Interest on federal funds sold 104 56
-------- --------
Total Interest Income 16,564 11,063
-------- --------
Interest Expense
Interest on deposits 7,211 3,670
Interest on federal funds purchased and
securities sold under agreements to
repurchase 28 34
Interest on Federal Home Loan Bank advances 321 267
Interest on subordinated long-term
capital notes 134 104
-------- --------
Total Interest Expense 7,694 4,075
-------- --------
Net Interest Income 8,870 6,988
Provision for loan losses 636 885
-------- --------
Net Interest Income After Provision for
Loan Losses 8,234 6,103
-------- --------
Noninterest Income
Customer service fees 513 376
Mortgage origination commissions 480 274
Other operating income 379 209
-------- --------
Total Noninterest Income 1,372 859
-------- --------
Noninterest Expenses
Salaries and employee benefits 4,415 2,691
Occupancy, furniture and equipment expense 854 514
Other operating expenses 2,028 1,381
-------- --------
Total Noninterest expense 7,297 4,586
-------- --------
Income before income taxes 2,309 2,376
Income tax expense 750 841
-------- --------
Net Income $ 1,559 $ 1,535
======== ========
Earnings Per Common Share
Basic 0.30 0.30
Diluted 0.30 0.29
Cash Dividends Declared Per Common Share -- --
Weighted Average Shares Outstanding
Basic 5,215 5,154
Diluted 5,257 5,289
APPALACHIAN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)
March 31, December 31, March 31,
2007 2006 2006
-------- -------- --------
Assets
Cash and due from banks $ 17,422 $ 7,940 $ 7,742
Interest-bearing deposits with
other banks 4,465 541 7,959
Federal funds sold 16,312 3,107 6,140
-------- -------- --------
Cash and Cash Equivalents 38,199 11,588 21,841
Securities available-for-sale 76,137 74,725 72,103
Loans, net of unearned income 670,098 631,786 492,678
Loans, held for sale 2,570 -- --
Allowance for loan losses (8,144) (7,670) (6,002)
-------- -------- --------
Net Loans 664,524 624,116 486,676
Premises and equipment, net 24,620 23,412 18,264
Accrued interest 8,554 8,157 4,994
Cash surrender value on
life insurance 8,513 8,438 8,214
Intangibles, net 2,166 2,197 1,992
Other assets 4,375 5,581 3,285
-------- -------- --------
Total Assets $827,088 $758,214 $617,369
======== ======== ========
Liabilities and Shareholders' Equity
Liabilities
Noninterest-bearing deposits $ 60,823 $ 53,422 $ 50,660
Interest-bearing deposits 647,138 597,712 439,893
-------- -------- --------
Total Deposits 707,961 651,134 490,553
Short-term borrowings 5,185 4,738 25,775
Accrued interest 1,532 1,454 860
Federal Home Loan Bank advances 34,800 25,050 29,700
Subordinated long-term capital notes 6,186 6,186 6,186
Other liabilities 2,965 2,889 2,911
-------- -------- --------
Total Liabilities 758,629 691,451 555,985
-------- -------- --------
Shareholders' Equity
Preferred Stock, 20,000,000 shares
authorized, none issued -- -- --
Common stock, par value $0.01 per
share, 20,000,000 shares authorized,
5,208,611 shares issued at March
31, 2007, 5,280,497 shares issued
at December 31, 2006 and 5,232,097
shares issued at March 31, 2006 52 53 52
Paid-in capital 43,232 43,870 43,302
Retained earnings 25,320 23,761 19,292
Accumulated other comprehensive loss (145) (221) (562)
Treasury stock, at cost (-0- shares
at March 31, 2007, 75,973 shares
at December 31, 2006 and March
31, 2006) -- (700) (700)
-------- -------- --------
Total Shareholders' Equity 68,459 66,763 61,384
-------- -------- --------
Total Liabilities and
Shareholders' Equity $827,088 $758,214 $617,369
======== ======== ========