SAVANNAH, Ga., Oct. 20, 2009 (GLOBE NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq: SAVB) reported net income for the third quarter 2009 of $346,000 compared to $1,638,000 in the third quarter 2008. Net income per diluted share was 6 cents in the third quarter of 2009 compared to 28 cents per diluted share in 2008. The quarter over quarter decline in earnings results primarily from a higher provision for loan losses, higher FDIC insurance premiums 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 foreclosed assets were $3,607,000 in the third quarter 2009 compared to $4,055,000 in 2008. Net income for the first nine months of 2009 was $167,000 compared to $5,228,000 for the same period in 2008. Other growth and performance ratios are included in the attached financial highlights and information.
Total assets increased 6.1 percent to $1.04 billion at September 30, 2009, up $60 million from $981 million a year earlier. Loans totaled $867 million compared to $854 million one year earlier, an increase of 1.5 percent. Deposits totaled $881 million and $803 million at September 30, 2009 and 2008, respectively, an increase of 9.7 percent. Shareholders' equity was $79.0 million at September 30, 2009 compared to $79.6 million at September 30, 2008. The Company's total capital to risk-weighted assets ratio was 11.53 percent, which exceeds the 10 percent required by the regulatory agencies to maintain well-capitalized status.
John Helmken, President and CEO, said, "In addition to achieving profitability for the third quarter, we accomplished the charter consolidation of Harbourside Community Bank into The Savannah Bank. While there were one time costs associated with the consolidation, we will benefit over the long term through reduced overhead expenses of maintaining two South Carolina branches rather than a separate bank. We are also pleased to be able to continue to pay a dividend."
Helmken continued, "We are excited about the new business opportunities we continue to see and the new relationships we are establishing. Likewise, we appreciate the loyalty of our existing customers. We feel that with our growing customer base and reduced overhead, coupled with the apparent stabilization of our loan portfolio, we are well positioned for 2010 and beyond. Many of our competitors are afraid to do business -- we are actively and successfully looking for ways to expand our existing relationships and create new ones."
The allowance for loan losses was $16,880,000, or 1.95 percent of loans at September 30, 2009 compared to $12,390,000 or 1.45 percent of total loans a year earlier. Nonperforming assets were $36,253,000 or 3.48 percent of total assets at September 30, 2009 compared to $28,195,000 or 2.87 percent at September 30, 2008. Third quarter net charge-offs were $2,277,000 compared to net charge-offs of $1,560,000 for the same period in 2008. Year to date net charge-offs were $6,925,000 in 2009 compared to $4,204,000 for the same period in 2008. The provision for loan losses for the third quarter of 2009 was $3,560,000 compared to $1,505,000 for the third quarter of 2008. The higher provision for loan losses was primarily due to real estate-related charge-offs and continued weakness in the Company's local real estate markets.
Helmken added, "Our profitability, well capitalized status, liquidity and strong balance sheet are the foundation that we need to manage our Company in the current environment as well as to take advantage of opportunities that lie ahead. Even in the midst of this difficult economic environment our core earnings continue to be very solid. Our focus on expense control and overhead reduction are finally starting to pass through to earnings particularly when salaries and benefits expense declines by over $500,000 compared to the third quarter of 2008. We still have work to do in our loan portfolio and continue to make that our top priority. Fortunately, we started aggressively addressing those issues ahead of many of our competitors and we feel this advantage will result in a more prompt resolution at the lowest possible cost. However, it is expensive to manage these problem assets in terms of the personnel, collection costs and foregone interest."
Net interest income was down $11,000, or 0.1 percent, in the third quarter 2009 versus the third quarter 2008. The net interest margin declined 5 basis points on a linked quarter basis from the 3.52 percent margin for the second quarter 2009. Third quarter net interest margin was 3.47 percent in 2009 as compared to 3.63 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 175 basis points from 5.00 percent to 3.25 percent over the one year period ended September 30, 2009.
Noninterest income increased $189,000, or 9.3 percent in the third quarter of 2009 versus the same period in 2008 due to a gain on the sale of securities of $604,000 partially offset by lower trust and asset management fees, lower service charges on deposits and a lower gain on hedges.
Noninterest expense increased to $6,476,000, up $225,000 or 3.6 percent, in the third quarter 2009 compared to the same period in 2008. Third quarter 2009 noninterest expense included $275,000 of higher occupancy and equipment expense, $242,000 of higher FDIC insurance premiums and a loss on sale of foreclosed assets of $220,000. Salaries and employee benefits decreased $541,000.
In the third quarter the Company completed the charter consolidation of Harbourside Community Bank ("Harbourside") into The Savannah Bank, N.A. ("Savannah"). The two branches of Harbourside became branches of Savannah effective September 30, 2009.
Today, the Board of Directors approved a quarterly cash dividend of 2 cents per share payable on November 16, 2009 to shareholders of record on October 30, 2009.
The Savannah Bancorp, Inc. ("SAVB" or "Company"), a bank holding company for Savannah, Bryan Bank & Trust (Richmond Hill, Georgia), and Minis & Co., Inc., is headquartered in Savannah, Georgia and began operations in 1990. SAVB has ten branches in Coastal Georgia and South Carolina. 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.
The Savannah Bancorp, Inc. and Subsidiaries
Third Quarter Financial Highlights
September 30, 2009 and 2008
($ in thousands, except share data)
(Unaudited)
%
Balance Sheet Data at September 30 2009 2008 Change
---------------------------------------------------------------------
Total assets $1,041,358 $981,341 6.1
Interest-earning assets 955,120 914,010 4.5
Loans 867,236 854,447 1.5
Other real estate owned 10,252 6,168 66
Deposits 881,111 803,483 9.7
Interest-bearing liabilities 876,293 807,041 8.6
Shareholders' equity 79,049 79,595 (0.7)
Loan to deposit ratio 98.43% 106.34% (7.4)
Equity to assets 7.59% 8.11% (6.4)
Tier 1 capital to risk-weighted assets 10.27% 10.32% (0.5)
Total capital to risk-weighted assets 11.53% 11.58% (0.4)
Outstanding shares 5,932 5,934 0.0
Book value per share $ 13.33 $ 13.41 (0.6)
Tangible book value per share $ 12.90 $ 12.96 (0.5)
Market value per share $ 8.10 $ 13.25 (39)
Loan Quality Data
---------------------------------------------------------------------
Nonaccruing loans $ 25,694 $ 17,753 45
Loans past due 90 days - accruing 307 4,274 (93)
Net charge-offs 6,925 4,204 65
Allowance for loan losses 16,880 12,390 36
Allowance for loan losses to total loans 1.95% 1.45% 34
Nonperforming assets to total assets 3.48% 2.87% 21
Performance Data for the Third Quarter
---------------------------------------------------------------------
Net income $ 346 $ 1,638 (79)
Return on average assets .13% .68% (81)
Return on average equity 1.73% 8.24% (79)
Net interest margin 3.47% 3.63% (4.4)
Efficiency ratio 61.87% 60.75% 1.8
Per share data:
Net income - basic $ 0.06 $ 0.28 (79)
Net income - diluted $ 0.06 $ 0.28 (79)
Dividends $ 0.02 $ 0.125 (84)
Average shares (000s):
Basic 5,932 5,930 0.0
Diluted 5,936 5,943 (0.1)
Performance Data for the First Nine Months
---------------------------------------------------------------------
Net income $ 167 $ 5,228 (97)
Return on average assets .02% .74% (97)
Return on average equity .28% 8.88% (97)
Net interest margin 3.45% 3.70% (6.8)
Efficiency ratio 65.35% 61.21% 6.8
Per share data:
Net income - basic $ 0.03 $ 0.88 (97)
Net income - diluted $ 0.03 $ 0.88 (97)
Dividends $ 0.165 $ 0.375 (56)
Average shares (000s):
Basic 5,933 5,929 0.1
Diluted 5,936 5,949 (0.2)
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 2009 and 2008
($ in thousands, except share data)
(Unaudited)
September 30,
---------------------------------------------------------------------
2009 2008
---------------------------------------------------------------------
Assets
Cash and due from banks $ 22,519 $ 14,968
Federal funds sold 16,627 11,570
Interest-bearing deposits 3,847 4,221
---------------------------------------------------------------------
Cash and cash equivalents 42,993 30,759
Securities available for sale, at fair value
(amortized cost of $92,834 and $61,200) 94,990 61,803
Loans held for sale 269 326
Loans, net of allowance for loan losses of
$16,880 and $12,390 850,356 842,057
Premises and equipment, net 15,862 11,196
Other real estate owned 10,252 6,168
Bank-owned life insurance 6,375 6,160
Goodwill and other intangible assets, net 2,534 2,678
Other assets 17,727 20,194
---------------------------------------------------------------------
Total assets $1,041,358 $981,341
=====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 80,781 $ 86,290
Interest-bearing demand 116,376 118,951
Savings 16,314 14,572
Money market 227,744 186,659
Time deposits 439,896 397,011
---------------------------------------------------------------------
Total deposits 881,111 803,483
Short-term borrowings 49,988 67,782
FHLB advances - long-term 15,665 11,756
Subordinated debt 10,310 10,310
Other liabilities 5,235 8,415
---------------------------------------------------------------------
Total liabilities 962,309 901,746
---------------------------------------------------------------------
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 shares 5,934 5,934
Additional paid-in capital 38,584 38,496
Retained earnings 32,740 33,514
Treasury stock, 1,443 and 318 shares (4) (4)
Accumulated other comprehensive income, net 1,795 1,655
---------------------------------------------------------------------
Total shareholders' equity 79,049 79,595
---------------------------------------------------------------------
Total liabilities and shareholders' equity $1,041,358 $981,341
=====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Nine Months and Five Quarters Ending September 30, 2009
and 2008
($ in thousands, except per share data)
---------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------------
For the Nine Months Ended
-------------------------
September 30,
------------------ %
2009 2008 Chg
---------------------------------------------------------------------
Interest and dividend income
Loans, including fees $35,282 $40,991 (14)
Loans held for sale 6 52 (88)
Investment securities 2,731 2,264 21
Deposits with banks 36 131 (73)
Federal funds sold 12 117 (90)
--------------------------------------------------------------
Total interest and dividend income 38,067 43,555 (13)
--------------------------------------------------------------
Interest expense
Deposits 12,802 16,873 (24)
Short-term borrowings & sub debt 1,056 1,760 (40)
FHLB advances 219 214 2.3
--------------------------------------------------------------
Total interest expense 14,077 18,847 (25)
--------------------------------------------------------------
Net interest income 23,990 24,708 (2.9)
Provision for loan losses 10,505 3,730 182
--------------------------------------------------------------
Net interest income after the provision for
loan losses 13,485 20,978 (36)
--------------------------------------------------------------
Noninterest income
Trust and asset management fees 1,738 2,157 (19)
Service charges on deposits 1,345 1,434 (6.2)
Mortgage related income, net 340 235 45
Other operating income 916 902 1.6
Gain on hedges 825 714 16
Gain on sale of securities 978 134 630
--------------------------------------------------------------
Total noninterest income 6,142 5,576 10
--------------------------------------------------------------
Noninterest expense
Salaries and employee benefits 9,287 10,441 (11)
Occupancy and equipment 2,702 2,766 (2.3)
Information technology 1,341 1,212 11
Loss on sale of foreclosed assets 1,269 1 NM
Other operating expense 5,091 4,116 24
--------------------------------------------------------------
Total noninterest expense 19,690 18,536 6.2
--------------------------------------------------------------
Income (loss) before income taxes (63) 8,018 (101)
Income tax (benefit) expense (230) 2,790 (108)
--------------------------------------------------------------
Net income (loss) $167 $5,228 (97)
==============================================================
Net income (loss) per share:
Basic $0.03 $0.88 (97)
==============================================================
Diluted $0.03 $0.88 (97)
==============================================================
Average basic shares (000s) 5,933 5,929 0.1
Average diluted shares (000s) 5,936 5,949 (0.2)
Performance Ratios
Return on average equity .28% 8.88% (97)
Return on average assets .02% 0.74% (97)
Net interest margin 3.45% 3.70% (6.8)
Efficiency ratio 65.35% 61.21% 6.8
Average equity 79,921 78,616 1.7
Average assets 1,011,778 949,813 6.5
Average interest-earning assets 930,345 890,124 4.5
----------------------------------------------------------------------
(Unaudited)
----------------------------------------------------------------------
2009 2008
--------------------------------------------- Q3-09/
Third Second First Fourth Third Q3-08
Quarter Quarter Quarter Quarter Quarter % Chg
----------------------------------------------------
Interest and
dividend income
Loans, including
fees $11,786 $11,852 $11,643 $12,268 $13,333 (12)
Loans held for
sale -- 4 3 8 20 NM
Investment
securities 932 894 905 817 722 29
Deposits with
banks 11 12 13 18 30 (63)
Federal funds sold 8 2 2 16 31 (74)
---------------------------------------------------------------
Total interest
and dividend
income 12,737 12,764 12,566 13,127 14,136 (10)
---------------------------------------------------------------
Interest expense
Deposits 4,057 4,264 4,481 4,969 5,391 (25)
Short-term
borrowings & sub
debt 354 338 364 543 412 (14)
FHLB advances 86 78 55 80 82 4.9
---------------------------------------------------------------
Total interest
expense 4,497 4,680 4,900 5,592 5,885 (24)
---------------------------------------------------------------
Net interest
income 8,240 8,084 7,666 7,535 8,251 (0.1)
Provision for loan
losses 3,560 3,225 3,720 2,270 1,505 137
---------------------------------------------------------------
Net interest
income after the
provision for
loan losses 4,680 4,859 3,946 5,265 6,746 (31)
---------------------------------------------------------------
Noninterest income
Trust and asset
management fees 580 571 587 675 713 (19)
Service charges on
deposits 446 432 467 447 513 (13)
Mortgage related
income, net 89 159 92 60 86 3.5
Other operating
income 324 309 283 314 296 9.5
Gain on hedges 184 245 396 574 430 (57)
Gain on sale of
securities 604 190 184 29 -- NM
---------------------------------------------------------------
Total noninterest
income 2,227 1,906 2,009 2,099 2,038 9.3
---------------------------------------------------------------
Noninterest expense
Salaries and
employee benefits 2,938 2,998 3,351 3,095 3,479 (16)
Occupancy and
equipment 1,242 452 1,008 1,118 967 28
Information
technology 452 451 438 421 424 6.6
Loss on sale of
foreclosed assets 220 885 164 141 17 NM
Other operating
expense 1,624 1,953 1,514 1,431 1,364 19
---------------------------------------------------------------
Total noninterest
expense 6,476 6,739 6,475 6,206 6,251 3.6
---------------------------------------------------------------
Income (loss)
before income
taxes 431 26 (520) 1,158 2,533 (83)
Income tax
(benefit) expense 85 (80) (235) 380 895 (91)
---------------------------------------------------------------
Net income (loss) $346 $106 $(285) $778 $1,638 (79)
===============================================================
Net income (loss) per share:
Basic $0.06 $0.02 $(0.05) $0.13 $0.28 (79)
===============================================================
Diluted $0.06 $0.02 $(0.05) $0.13 $0.28 (79)
===============================================================
Average basic
shares (000s) 5,932 5,932 5,933 5,933 5,930 0.0
Average diluted
shares (000s) 5,936 5,936 5,937 5,942 5,943 (0.1)
Performance Ratios
Return on average
equity 1.73% 0.53% (1.43)% 3.86% 8.24% (79)
Return on average
assets 0.13% 0.04% (0.12)% 0.31% 0.68% (81)
Net interest
margin 3.47% 3.52% 3.36% 3.24% 3.63% (4.4)
Efficiency ratio 61.87% 67.46% 66.93% 64.42% 60.75% 1.8
Average equity 79,302 79,606 80,873 80,138 79,035 0.3
Average assets 1,026,871 1,005,112 1,003,068 991,368 964,762 6.4
Average interest-
earning assets 943,236 922,073 925,531 922,642 901,992 4.6
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 September 30, 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 $76.5 million, or 7.35 percent of total assets at September 30, 2009. The table below includes the regulatory capital ratios for the Company and each Subsidiary Bank along with the minimum capital ratio and the ratio required to maintain a well-capitalized regulatory status.
Well-
($ in thousands) Company Savannah Bryan Minimum Capitalized
---------------------------------------------------------------------
Qualifying Capital
Tier 1 capital $84,720 $60,069 $21,763 -- --
Total capital 95,108 67,627 24,306 -- --
Leverage Ratios
Tier 1 capital to
average assets 8.43% 7.88% 8.82% 4.00% 5.00%
Risk-based Ratios
Tier 1 capital to
risk-weighted
assets 10.27% 10.00% 10.76% 4.00% 6.00%
Total capital to
risk-weighted
assets 11.53% 11.26% 12.01% 8.00% 10.00%
Tier 1 and total capital at the Company level includes $10 million of subordinated debt issued to the Company's nonconsolidated subsidiaries. Total capital also includes the allowance for loan losses up to 1.25 percent of risk-weighted assets.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2009 2008
---------------------------------------------------------------------
Third Second First Fourth Third
($ in thousands) Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------------------
Allowance for loan losses
Balance at beginning of
period $15,597 $15,309 $13,300 $12,390 $12,445
Provision for loan losses 3,560 3,225 3,720 2,270 1,505
Net charge-offs (2,277) (2,937) (1,711) (1,360) (1,560)
---------------------------------------------------------------------
Balance at end of period $16,880 $15,597 $15,309 $13,300 $12,390
=====================================================================
As a % of loans 1.95% 1.81% 1.77% 1.54% 1.45%
As a % of nonperforming
loans 64.92% 56.99% 63.27% 48.18% 56.25%
As a % of nonperforming
assets 46.56% 46.22% 47.05% 37.25% 43.94%
Net charge-offs as a % of
average loans(a) 1.07% 1.41% 0.82% 0.65% 0.75%
Risk element assets
Nonaccruing loans $25,694 $24,994 $23,927 $26,277 $17,753
Loans past due 90 days -
accruing 307 2,374 268 1,330 4,274
---------------------------------------------------------------------
Total nonperforming loans 26,001 27,368 24,195 27,607 22,027
Other real estate owned 10,252 6,377 8,342 8,100 6,168
---------------------------------------------------------------------
Total nonperforming
assets $36,253 $33,745 $32,537 $35,707 $28,195
=====================================================================
Loans past due 30-89 days $8,122 $6,670 $16,906 $8,269 $8,841
Nonperforming loans as a
% of loans 3.00% 3.17% 2.80% 3.19% 2.58%
Nonperforming assets as a
% of loans and other real
estate owned 4.13% 3.88% 3.73% 4.09% 3.28%
Nonperforming assets as a
% of assets 3.48% 3.31% 3.25% 3.54% 2.87%
(a) Annualized
The Savannah Bancorp, Inc. & Subsidiaries
Loan Concentration Schedule
September 30, 2009 and December 31, 2008
%
% of % of Dollar
($ in thousands) 9/30/09 Total 12/31/08 Total Change
----------------------------------------------------------------------
Non-residential real estate
Owner-occupied $129,971 15 $137,742 16 (5.6)
Non owner-occupied 151,799 17 124,502 14 22
Construction 5,120 1 26,965 3 (81)
Commercial land and lot
development 47,555 6 42,590 5 12
---------------------------------------------------------------
Total non-residential real
estate 334,445 39 331,799 38 (0.8)
---------------------------------------------------------------
Residential real estate
Owner-occupied - 1-4 family 93,848 11 89,774 10 4.5
Non owner-occupied - 1-4
family 155,265 18 147,396 17 5.3
Construction 26,156 3 43,431 5 (40)
Residential land and lot
development 96,822 11 98,715 12 (1.9)
Home equity lines 57,261 6 55,092 6 3.9
---------------------------------------------------------------
Total residential real estate 429,352 49 434,408 50 (1.2)
---------------------------------------------------------------
Total real estate loans 763,797 88 766,207 88 (0.3)
Commercial 88,478 10 81,348 10 8.8
Consumer 15,250 2 17,628 2 (13)
Unearned fees, net (289) -- (209) -- 38
---------------------------------------------------------------
Total loans, net of unearned
fees $867,236 100 $864,974 100 0.3
======================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - Third Quarter, 2009
and 2008
Average Balance Average Rate
---------------------------------------
QTD QTD QTD QTD
9/30/09 9/30/08 9/30/09 9/30/08
---------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 4,471 $ 5,530 0.98 2.15 Interest-bearing deposits
81,799 57,053 4.31 4.88 Investments - taxable
3,976 1,912 5.09 5.39 Investments - non-taxable
10,692 6,356 0.30 1.94 Federal funds sold
48 1,189 0.00 6.67 Loans held for sale
842,250 829,952 5.55 6.37 Loans(c)
----------------------
943,236 901,992 5.36 6.22 Total interest-earning assets
----------------
83,635 62,770 Noninterest-earning assets
----------------------
$1,026,871 $ 964,762 Total assets
======================
Liabilities and equity
Deposits
$ 119,632 $ 118,182 0.44 1.15 NOW accounts
16,210 15,450 0.64 0.90 Savings accounts
146,032 134,961 1.72 2.42 Money market accounts
Money market accounts -
80,315 71,632 1.26 2.40 institutional
163,351 150,487 3.23 4.28 CDs, $100M or more
116,761 95,919 1.77 3.26 CDs, broker
147,381 133,062 3.11 4.01 Other time deposits
----------------------
Total interest-bearing
789,682 719,693 2.04 2.97 deposits
15,665 11,802 2.18 2.76 FHLB advances - long-term
42,998 52,162 2.51 2.05 Short-term borrowings
10,310 10,310 3.16 5.50 Subordinated debt
----------------------
Total interest-bearing
858,655 793,967 2.08 2.94 liabilities
----------------
81,960 83,562 Noninterest-bearing deposits
6,954 8,198 Other liabilities
79,302 79,035 Shareholders' equity
----------------------
$1,026,871 $ 964,762 Liabilities and equity
=====================
3.28 3.28 Interest rate spread
================
3.47 3.63 Net interest margin
================
Net interest income
$ 84,581 $ 108,025 Net earning assets
======================
$ 871,642 $ 803,255 Average deposits
======================
1.85 2.66 Average cost of deposits
================
97% 103% Average loan to deposit ratio
======================
Taxable-Equivalent (a) Variance
Interest(b) Attributable to
-------------------------- -----------------
QTD QTD Vari-
9/30/09 9/30/08 ance Rate Volume
----------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 11 $ 30 $ (19) $ (16) $ (3)
Investments - taxable 888 702 186 (82) 268
Investments - non-taxable 51 26 25 (1) 26
Federal funds sold 8 31 (23) (26) 3
Loans held for sale -- 20 (20) (20) --
Loans(c) 11,787 13,334 (1,547) (1,715) 168
--------------------------
Total interest-earning
assets 12,745 14,143 (1,398) (1,955) 557
--------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 133 344 (211) (211) --
Savings accounts 26 35 (9) (10) 1
Money market accounts 634 822 (188) (238) 50
Money market accounts -
institutional 256 433 (177) (206) 29
CDs, $100M or more 1,330 1,625 (295) (398) 103
CDs, broker 522 787 (265) (360) 95
Other time deposits 1,156 1,345 (189) (302) 113
--------------------------
Total interest-bearing
deposits 4,057 5,391 (1,334) (1,687) 353
FHLB advances - long-term 86 82 4 (17) 21
Short-term borrowings 272 267 (5) 63 (58)
Subordinated debt 82 143 (61) (61) --
--------------------------
Total interest-bearing
liabilities 4,497 5,883 (1,386) (1,721) 335
--------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $ 8,248 $ 8,260 $ (12) $ (234) $ 222
======= ======= ======= ======= =======
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 $7 in
the third quarter 2009 and 2008, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis - First Nine Months,
2009 and 2008
Average Balance Average Rate
---------------------------------------
YTD YTD YTD YTD
9/30/09 9/30/08 9/30/09 9/30/08
---------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 5,703 $ 6,038 0.84 2.89 Interest-bearing deposits
76,717 57,646 4.62 5.09 Investments - taxable
2,348 1,915 5.58 5.50 Investments - non-taxable
6,263 6,618 0.26 2.36 Federal funds sold
76 968 10.56 7.16 Loans held for sale
839,238 816,939 5.62 6.69 Loans(c)
----------------------
930,345 890,124 5.47 6.52 Total interest-earning assets
----------------
81,433 59,689 Noninterest-earning assets
----------------------
$1,011,778 $ 949,813 Total assets
======================
Liabilities and equity
Deposits
$ 122,543 $ 118,278 0.48 1.29 NOW accounts
15,905 15,773 0.70 0.90 Savings accounts
124,157 136,467 1.76 2.47 Money market accounts
Money market accounts -
89,891 63,994 1.58 2.83 institutional
156,011 148,809 3.48 4.67 CDs, $100M or more
117,660 78,462 2.20 3.66 CDs, broker
143,510 131,476 3.34 4.42 Other time deposits
----------------------
Total interest-bearing
769,677 693,259 2.22 3.24 deposits
13,413 9,812 2.18 2.91 FHLB advances - long-term
50,209 65,973 2.05 2.60 Short-term borrowings
10,310 10,310 3.72 6.09 Subordinated debt
----------------------
Total interest-bearing
843,609 779,354 2.23 3.22 liabilities
----------------
81,760 83,738 Noninterest-bearing deposits
6,488 8,105 Other liabilities
79,921 78,616 Shareholders' equity
----------------------
$1,011,778 $ 949,813 Liabilities and equity
======================
3.24 3.30 Interest rate spread
================
3.45 3.70 Net interest margin
================
Net interest income
$ 86,736 $ 110,770 Net earning assets
======================
$ 851,437 $ 776,997 Average deposits
======================
2.01 2.89 Average cost of deposits
================
99% 105% Average loan to deposit ratio
=========== ==========
Taxable-Equivalent (a) Variance
Interest(b) Attributable to
-------------------------- -----------------
YTD YTD Vari-
9/30/09 9/30/08 ance Rate Volume
----------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing deposits $ 36 $ 131 $ (95) $ (93) $ (2)
Investments - taxable 2,651 2,203 448 (203) 651
Investments - non-taxable 98 79 19 1 18
Federal funds sold 12 117 (105) (104) (1)
Loans held for sale 6 52 (46) 25 (71)
Loans(c) 35,288 40,997 (5,709) (6,538) 829
--------------------------
Total interest-earning
assets 38,091 43,579 (5,488) (6,991) 1,503
--------------------------------------------
Noninterest-earning assets
Total assets
Liabilities and equity
Deposits
NOW accounts 442 1,141 (699) (717) 18
Savings accounts 83 106 (23) (24) 1
Money market accounts 1,631 2,529 (898) (725) (173)
Money market accounts -
institutional 1,060 1,361 (301) (598) 297
CDs, $100M or more 4,058 5,219 (1,161) (1,324) 163
CDs, broker 1,939 2,153 (214) (857) 643
Other time deposits 3,589 4,364 (775) (1,062) 287
--------------------------
Total interest-bearing
deposits 12,802 16,873 (4,071) (5,289) 1,218
FHLB advances - long-term 219 214 5 (54) 59
Short-term borrowings 769 1,289 (520) (271) (249)
Subordinated debt 287 471 (184) (183) (1)
--------------------------
Total interest-bearing
liabilities 14,077 18,847 (4,770) (5,771) 1,001
--------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders' equity
Liabilities and equity
Interest rate spread
Net interest margin
Net interest income $24,014 $24,732 $ (718) $(1,220) $ 502
============================================
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 $24 in the
first nine months 2009 and 2008, respectively.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.