SAVANNAH, Ga., April 17, 2007 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income of $2,311,000 in the first quarter 2007, down $40,000, or 1.7 percent, from $2,351,000 in the first quarter 2006. Net income per diluted share was 39 cents in the first quarter 2007 compared to 40 cents per share in the first quarter 2006, a decrease of 2.5 percent. The slight earnings decrease is primarily attributable to a higher provision for credit losses and a lower net interest margin resulting primarily from higher deposit costs. Return on average equity was 13.90 percent, return on average assets was 1.12 percent and the efficiency ratio was 55.78 percent in the first quarter 2007. Prior period per share amounts have been restated to reflect the 5-for-4 stock split in December 2006.
Total assets increased 11 percent to $848 million at March 31, 2007, up from $764 million a year earlier. Loans, excluding loans held for sale, were $730 million compared to $641 million one year earlier, an increase of 14 percent. Deposits totaled $712 million and $630 million at March 31, 2007 and 2006, respectively, an increase of 13 percent.
During the first quarter, a banking office site was selected in Bluffton, SC for Harbourside Community Bank and the lease for a build-to-suit facility was signed. Bluffton is one of the high growth coastal areas adjacent to Hilton Head Island. John Helmken, President and CEO of The Savannah Bancorp commented, "The Bluffton market is an essential part of our strategy for Harbourside. We have a branch manager and directors on board who are very much a part of the Bluffton community. We are also excited about our new Bryan Bank branch office which is currently in the design phase. This new office will allow us to capture an even greater share of the fast growing Bryan County market."
"Although we are in a challenging interest rate environment and very competitive banking markets with short-term challenges, we are located in great markets with many experienced bankers who provide the foundation for long-term success. In addition to loan growth, we are increasing our focus on noninterest revenues and core deposit growth through evaluation of existing strategies, review of lines of business and introduction of new products. We are also working diligently to add additional players to the team who will significantly improve our growth capabilities in our existing markets," added Helmken.
Nonperforming assets were $2,012,000 or 0.28 percent of total loans plus other real estate at March 31, 2007 compared to $2,093,000 or 0.33 percent of total loans at March 31, 2006. First quarter net credit losses were $234,000 for 2007 compared to $0 in the first quarter 2006. The first quarter net charge-offs included one charge-off for $200,000 on a second mortgage loan indirectly related to the borrower's losses incurred in Hurricane Katrina. The first quarter provision for credit losses included an extra $200,000 for the first quarter net charge-offs.
Net interest income increased 3.3 percent in the first quarter 2007 over the first quarter 2006. First quarter net interest margin declined to 4.17 percent in 2007 from 4.59 percent in 2006. Noninterest income declined $19,000, or 1.8 percent due to slightly lower mortgage related income and lower service charges on deposit accounts. Noninterest expense increased $252,000 or 5.1 percent in the first quarter 2007 compared to the first quarter 2006. Higher personnel, occupancy, equipment and information technology cost were partially offset by lower other operating expenses. Other operating expenses decreased by $191,000, resulting from approximately $198,000 in nonrecurring pre-opening expenses in the first quarter 2006.
Today, the Board of Directors declared a regular quarterly cash dividend of 12 cents per share, payable on May 20, 2007 to shareholders of record as of April 27, 2007. This is the 47th consecutive quarterly dividend.
The Savannah Bancorp, Inc. is a bank holding company with three banking subsidiaries, The Savannah Bank, N.A., Bryan Bank & Trust and Harbourside Community Bank. The Company has six banking locations in Savannah, GA, one in Richmond Hill, GA and one on Hilton Head Island, SC. Comprehensive historical and current financial information on the Company is available on its corporate website at www.savb.com.
Forward-Looking Statements
This press release may contain statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding future expectations or events. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations.
The Savannah Bancorp, Inc. and Subsidiaries
First Quarter Financial Highlights
March 31, 2007 and 2006
($ in thousands, except per share data)
(Unaudited)
---------------------------------------------------------------------
%
Balance Sheet Data at March 31 2007 2006 Change
---------------------------------------------------------------------
Total assets $848,292 $764,087 11
Interest-earning assets 807,111 729,403 11
Loans 730,387 641,376 14
Allowance for credit losses 9,220 8,228 12
Non-accruing loans 400 1,945 (79)
Loans past due 90 days - accruing 990 148 NM
Other real estate owned 622 -- NM
Deposits 712,170 629,981 13
Interest-bearing liabilities 674,522 601,630 12
Shareholders' equity 68,441 59,646 15
Allowance for credit losses to
total loans 1.26% 1.28% (1.6)
Nonperforming assets to total loans
and OREO 0.28% 0.33% (15)
Loan to deposit ratio 103% 102% 1.0
Equity to assets 8.07% 7.81% 3.3
Tier 1 capital to risk-weighted assets 11.23% 11.26% (0.3)
Total capital to risk-weighted assets 12.48% 12.51% (0.2)
Outstanding shares(a) 5,790 5,759 0.5
Book value per share(a) $ 11.82 $ 10.36 14
Market value per share(a) $ 27.00 $ 28.06 (3.8)
Performance Ratios for the First Quarter
----------------------------------------
Net income $ 2,311 $ 2,351 (1.7)
Return on average assets 1.12% 1.29% (13)
Return on average equity 13.90% 16.14% (14)
Net interest margin 4.17% 4.59% (9.2)
Efficiency ratio 55.78% 54.47% 2.4
Per share data:(a)
Net income - basic $ .40 $ .41 2.4
Net income - diluted $ .39 $ .40 2.5
Dividends $ .120 $ .112 7.1
Average shares:(a)
Basic 5,783 5,759 0.4
Diluted 5,890 5,886 0.1
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006.
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, 2007 and 2006
($ in thousands, except per share data)
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March 31,
2007 2006
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Assets
Cash and due from banks $ 16,890 $ 15,343
Federal funds sold 20,176 20,245
Interest-bearing deposits in banks 2,786 3,539
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Cash and cash equivalents 39,852 39,127
Securities available for sale, at fair value
(amortized cost of $57,918 in 2007 and
$50,121 in 2006) 57,785 49,442
Loans held for sale 1,835 16,067
Loans, net of allowance for credit losses
of $9,220 in 2007 and $8,228 in 2006 721,167 633,148
Premises and equipment, net 6,274 5,750
Other real estate owned 622 --
Bank-owned life insurance 5,813 5,603
Other assets 14,944 14,950
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Total assets $ 848,292 $ 764,087
=====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 98,663 $ 96,645
Interest-bearing demand 112,490 90,293
Savings 18,917 19,794
Money market 170,039 130,132
Time deposits 312,061 293,117
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Total deposits 712,170 629,981
Short-term borrowings 37,480 37,589
Federal Home Loan Bank advances - long-term 13,225 20,395
Subordinated debt to nonconsolidated
subsidiaries 10,310 10,310
Other liabilities 6,666 6,166
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Total liabilities 779,851 704,441
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Shareholders' equity
Common stock, par value $1 per share:
authorized 20,000,000 shares; issued
5,790,376 and 4,607,475 shares
in 2007 and 2006, respectively 5,790 4,607
Preferred stock, par value $1 per share:
authorized 10,000,000 shares, none issued -- --
Additional paid-in capital 35,732 36,341
Retained earnings 27,308 19,977
Treasury stock, 318 and 267 shares
in 2007 and 2006, respectively (4) (4)
Accumulated other comprehensive loss, net (385) (1,275)
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Total shareholders' equity 68,441 59,646
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Total liabilities and
shareholders' equity $ 848,292 $ 764,087
=====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
For the Three Months and Five Quarters Ending March 31, 2007 and 2006
($ in thousands, except per share data)
(Unaudited)
For the Three Months Ended
--------------------------------------------------------------------
March 31, %
2007 2006 Chg
--------------------------------------------------------------------
Interest and dividend income
Loans, including fees $ 14,351 $ 11,721 22
Loans held for sale 34 209 (84)
Investment securities 620 510 22
Deposits with banks 83 47 77
Federal funds sold 172 127 35
---------------------------------------------------------
Total interest and dividend
income 15,260 12,614 21
---------------------------------------------------------
Interest expense
Deposits 6,092 3,894 56
Other borrowings 625 368 70
FHLB advances 164 247 (34)
Subordinated Debt 203 188 8.0
---------------------------------------------------------
Total interest expense 7,084 4,697 51
---------------------------------------------------------
Net interest income 8,176 7,917 3.3
Provision for credit losses 500 415 20
---------------------------------------------------------
Net interest income after the
provision for credit losses 7,676 7,502 2.3
---------------------------------------------------------
Noninterest income
Service charges on deposits 347 376 (7.7)
Mortgage related income, net 210 231 (9.1)
Trust fees 176 158 11
Other operating income 319 306 4.2
---------------------------------------------------------
Total noninterest income 1,052 1,071 (1.8)
---------------------------------------------------------
Noninterest expense
Salaries and employee benefits 2,964 2,691 10
Occupancy and equipment 758 651 16
Information technology 425 362 17
Other operating expense 1,000 1,191 (16)
---------------------------------------------------------
Total noninterest expense 5,147 4,895 5.1
---------------------------------------------------------
Income before income taxes 3,581 3,678 (2.6)
Income tax expense 1,270 1,327 (4.3)
---------------------------------------------------------
Net income $ 2,311 $ 2,351 (1.7)
=========================================================
Net income per share:
Basic $ .40 $ .41 (2.4)
=========================================================
Diluted $ .39 $ .40 (2.5)
=========================================================
Average basic shares (000s) 5,783 5,759 0.4
Average diluted shares (000s) 5,890 5,886 0.1
Performance Ratios
Return on average equity 13.90% 16.14% (14)
Return on average assets 1.12% 1.29% (13)
Net interest margin 4.17% 4.59% (9.2)
Efficiency ratio 55.78% 54.47% 2.4
Average equity 67,434 59,058 14
Average assets 834,033 736,674 13
Average interest-earning assets 799,678 703,438 14
(Unaudited)
2007 2006
---------------------- ------------------------------------- Q1-07/
First Fourth Third Second First Q1-06
Quarter Quarter Quarter Quarter Quarter % Chg
---------------------------------------------------------------------
Interest and
dividend income
Loans,
including
fees $14,351 $14,063 $13,209 $12,548 $11,721 22
Loans held
for sale 34 52 64 233 209 (84)
Investment
securities 620 599 572 559 510 22
Deposits
with banks 83 127 65 54 47 77
Federal funds
sold 172 116 166 148 127 35
--------------------------------------------------------------
Total interest
and dividend
income 15,260 14,957 14,076 13,542 12,614 21
--------------------------------------------------------------
Interest expense
Deposits 6,092 5,754 5,251 4,443 3,894 56
Other borrowings 625 561 326 546 368 70
FHLB advances 164 168 166 197 247 (34)
Subordinated Debt 203 214 214 200 188 8.0
--------------------------------------------------------------
Total interest
expense 7,084 6,697 5,957 5,386 4,697 51
--------------------------------------------------------------
Net interest
income 8,176 8,260 8,119 8,156 7,917 3.3
Provision for
credit losses 500 450 360 360 415 20
--------------------------------------------------------------
Net interest
income after
the provision
for credit
losses 7,676 7,810 7,759 7,796 7,502 2.3
--------------------------------------------------------------
Noninterest income
Service charges
on deposits 347 389 384 377 376 (7.7)
Mortgage related
income, net 210 200 203 252 231 (9.1)
Trust fees 176 170 164 166 158 11
Other operating
income 319 331 305 291 306 4.2
--------------------------------------------------------------
Total non-
interest
income 1,052 1,090 1,056 1,086 1,071 (1.8)
--------------------------------------------------------------
Noninterest expense
Salaries and
employee
benefits 2,964 2,659 2,717 2,785 2,691 10
Occupancy and
equipment 758 768 755 746 651 16
Information
technology 425 417 372 374 362 17
Other operating
expense 1,000 1,293 1,101 1,071 1,191 (16)
--------------------------------------------------------------
Total non-
interest
expense 5,147 5,137 4,945 4,976 4,895 5.1
--------------------------------------------------------------
Income before
income taxes 3,581 3,763 3,870 3,906 3,678 (2.6)
Income tax
expense 1,270 1,240 1,280 1,368 1,327 (4.3)
--------------------------------------------------------------
Net income $ 2,311 $ 2,523 $ 2,590 $ 2,538 $ 2,351 (1.7)
==============================================================
Net income per
share:
Basic $ .40 $ .44 $ .45 $ .44 $ .41 (2.4)
==============================================================
Diluted $ .39 $ .43 $ .44 $ .43 $ .40 (2.5)
==============================================================
Average basic
shares (000s) 5,783 5,779 5,761 5,759 5,759 0.4
Average diluted
shares (000s) 5,890 5,884 5,886 5,894 5,886 0.1
Performance Ratios
Return on
average equity 13.90% 15.33% 16.46% 16.91% 16.14% (14)
Return on
average assets 1.12% 1.24% 1.34% 1.33% 1.29% (13)
Net interest
margin 4.17% 4.26% 4.42% 4.51% 4.59% (9.2)
Efficiency
ratio 55.78% 54.9% 53.9% 53.8% 54.5% 2.4
Average
equity 67,434 65,297 62,435 60,195 59,058 14
Average
assets 834,033 809,491 767,649 765,080 736,674 13
Average
interest-
earning
assets 799,678 772,192 732,405 729,101 703,438 14
(a) Share and per share amounts have been restated to reflect the
effect of a 5-for-4 stock split in December 2006.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis -
First Quarter, 2007 and 2006
Taxable-Equivalent
Average Balance Average Rate Interest (a)
------------------------------ -------------
Q1 Q1 Q1 Q1 Q1 Q1 Vari-
2007 2006 2007 2006 2007 2006 ance
---------------------------------------------------------------------
($ in thousands) (%) ($ in thousands)
Assets
Interest-bearing
$ 6,195 $ 4,367 5.43 4.55 deposits $ 83 $ 49 $ 34
Investments
51,186 44,616 4.79 4.27 - taxable 605 470 135
Investments
1,940 2,938 7.94 10.90 - non-taxable 38 79 (41)
Federal funds
13,230 11,355 5.27 4.43 sold 172 124 48
Loans held for
1,652 12,668 8.35 6.69 sale 34 209 (175)
725,475 627,494 8.03 7.58 Loans (b) 14,367 11,721 2,646
-------- -------- ------ ------- -------
Total interest-
earning
799,678 703,438 7.76 7.29 assets 15,299 12,652 2,647
---- ---- ------ ------- -------
Noninterest-
34,355 33,236 earning assets
-------- --------
$834,033 $736,674 Total assets
======== ========
Liabilities
and equity
Deposits
$109,131 $ 88,405 2.01 1.06 NOW accounts 542 231 311
Savings
18,391 19,880 0.99 1.00 accounts 45 49 (4)
Money market
149,898 128,158 4.26 3.10 accounts 1,576 981 595
CDs, $100M or
117,174 91,971 5.29 4.13 more 1,527 937 590
80,100 90,751 4.76 3.51 CDs, broker 940 785 155
Other time
119,332 94,358 4.97 3.91 deposits 1,462 909 553
-------- -------- ------ ------- -------
Total interest-
bearing
594,026 513,523 4.16 3.07 deposits 6,092 3,892 2,200
FHLB advances
13,272 20,441 5.01 4.88 - long term 164 246 (82)
Other
49,352 31,559 5.14 4.72 borrowings 625 367 258
Subordinated
10,310 10,310 7.99 7.40 debt 203 188 15
-------- -------- ------ ------- -------
Total interest-
bearing
666,960 575,833 4.31 3.31 Liabilities 7,084 4,693 2,391
---- ---- ------ ------ -------
Noninterest-
93,132 93,400 bearing deposits
6,507 8,383 Other liabilities
67,434 59,058 Shareholders' equity
-------- --------
Liabilities
$834,033 $736,674 and equity
======== ========
Interest rate
3.45 3.98 spread
==== ====
Net interest
4.17 4.59 margin
==== ====
Net interest
income $ 8,215 $ 7,959 $ 256
======= ======= =======
Net earning
$132,718 $127,605 assets
======== ========
$687,158 $606,923 Average deposits
======== ========
Average cost
3.60 2.60 of deposits
==== ====
Average loan to
106% 103% deposit ratio
======== ========
(a) The taxable equivalent adjustment results from tax exempt income less
non-deductible TEFRA interest expense and was $39 and $42 in the
first quarter 2007 and 2006, respectively.
(b) Average nonaccruing loans have been excluded from total average loans
and categorized as a noninterest-earning asset.
The Savannah Bancorp, Inc. and Subsidiaries
Historical Trend Data - Five Years and Five Quarters
---------------------------------------------------------------------
The following tables show per share information for the most recent
five years and five quarters. Share and per share information have
been restated to reflect the effect of the 5-for-4 stock splits in
December 2004 and December 2006.
(amounts in thousands except share data)
For the Most Recent Five Years
------------------------------
2006 2005 2004 2003 2002
---- ---- ---- ---- ----
Net income $ 10,002 $ 9,040 $ 5,736 $ 4,644 $ 4,508
Average shares
Basic 5,765 5,396 5,136 5,129 5,125
Diluted 5,876 5,531 5,261 5,226 5,200
Net income per
share ($)
Basic 1.73 1.68 1.12 0.91 0.88
Diluted 1.70 1.63 1.09 0.89 0.87
Dividends per share 0.45 0.43 0.42 0.41 0.39
Market price per
common share ($)
High close 30.40 30.00 22.08 18.56 14.14
Low close 26.58 21.20 16.11 12.15 11.35
Year-end close 27.25 28.38 21.64 18.56 12.20
At December 31 ($)
Assets 843,514 717,901 617,341 476,865 437,598
Shareholders' equity 66,574 58,543 40,071 36,771 34,756
Book value per share 11.52 10.20 7.80 7.17 6.78
Outstanding shares 5,781 5,739 5,140 5,129 5,126
Performance ratios (%)
Return on equity 16.19 19.06 15.04 12.99 13.50
Return on assets 1.30 1.32 1.03 1.05 1.14
Net interest margin 4.44 4.25 3.86 3.91 4.10
Efficiency ratio 54.29 51.91 58.47 59.40 59.17
For the Most Recent Five Quarters
---------------------------------
(Unaudited) 2006
2007 -------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
Net income $ 2,311 $ 2,523 $ 2,590 $ 2,538 $ 2,351
Average shares
Basic 5,783 5,779 5,761 5,759 5,759
Diluted 5,890 5,884 5,886 5,894 5,886
Net income per
share ($)
Basic 0.400 0.437 0.450 0.441 0.408
Diluted 0.390 0.429 0.441 0.432 0.401
Dividends per share 0.120 0.112 0.112 0.112 0.112
Market price per
common share ($)
High close 28.07 28.14 30.31 30.40 29.58
Low close 27.00 26.60 26.58 27.26 27.12
Quarter-end close 27.00 27.25 26.64 30.26 28.06
At quarter-end ($)
Assets 848,292 843,514 793,746 772,026 764,087
Shareholders' equity 68,441 66,574 64,394 61,018 59,646
Book value per share 11.82 11.52 11.15 10.59 10.36
Outstanding shares 5,790 5,781 5,771 5,759 5,759
Performance ratios (%)
Return on equity 13.90 15.33 16.46 16.91 16.14
Return on assets 1.12 1.24 1.34 1.33 1.29
Net interest margin 4.17 4.26 4.42 4.51 4.59
Efficiency ratio 55.78 54.94 53.90 53.84 54.47
Additional financial highlights are available at www.savb.com