MACON, Ga., April 18, 2007 (PRIME NEWSWIRE) -- Security Bank Corporation (Nasdaq:SBKC) today announced its financial results for the first quarter ended March 31, 2007.
Highlights
* Net income of $6.8 million for the first quarter of 2007 compared
to $5.1 million in the same quarter of 2006
* Diluted earnings per share of $0.35 for the first quarter of the
current year was up $0.04 from the fourth quarter 2006
* Broadly-based first quarter loan growth of $115.9 million or
approximately 24% on an annualized basis
* Net interest margin of 4.22%
* Loan loss provision and net charge-offs decline, nonperforming
loans stable
* Efficiency ratio improved to 56.8%
* Broadened footprint in Metro Atlanta with announcement of
acquisition in high-growth Douglas County
Earnings Summary
Net income for the first quarter of 2007 increased 32% to $6.8 million, compared to $5.1 million for the first quarter of 2006. Diluted earnings per share of $0.35 was unchanged compared to the same quarter of 2006 and up $0.04 from the fourth quarter 2006 level of $0.31 per diluted operating earnings per share.
The Company's annualized returns on average tangible equity and average assets for the first quarter of 2007 were 15.78% and 1.13%, respectively, compared to 19.92% and 1.25%, respectively, for the first quarter of 2006. The Company's offering of 1,725,000 shares of common stock in May 2006, which generated approximately $35.9 million in additional capital, was the primary contributor to the decreases in returns on average tangible equity when compared to prior periods.
Rett Walker, Security Bank Corporation President and CEO, remarked, "We are pleased with our first quarter results. We successfully completed the conversion of Homestead Bank, experienced very strong growth in our loan portfolio and our net interest margin held up well. We also did a good job of controlling expenses."
On April 9, 2007, the Company announced its latest acquisition in the metropolitan Atlanta market with the signing of a definitive merger agreement to acquire First Commerce Community Bankshares, Inc. and its wholly owned subsidiary, First Commerce Community Bank located in Douglasville, Georgia. First Commerce, with approximately $252 million in total assets and $230 million in deposits as of December 31, 2006, operates two full service banking offices in Douglas County. The acquisition is expected to close during the third quarter of 2007 and is subject to regulatory approval, the approval of First Commerce Community Bankshares' shareholders and other customary closing conditions.
Balance Sheet
Loans, excluding loans held for resale, were $2.0 billion at March 31, 2007, up from $1.47 billion at March 31, 2006, an increase of 37%. Excluding acquisitions, loans increased $311.3 million or 21% since March 31, 2006.
Total deposits were $2.0 billion at March 31, 2007, an increase of 32% from $1.53 billion at March 31, 2006. Excluding acquisitions, deposits increased $252.4 million or 16.5% since March 31, 2006. Total assets increased 33% to $2.54 billion at March 31, 2007, compared to $1.91 billion at March 31, 2006. Excluding acquisitions, total assets increased $320.2 million or 16.7%, compared to March 31, 2006.
Shareholders' equity increased $94.7 million to $311.7 million, an increase of 44% compared to March 31, 2006. The primary reasons for the increase were the acquisitions during the period, which contributed approximately $37.5 million of the increase, and the May 2006 stock offering, which contributed $35.9 million of the increase. The remaining increase of $21.3 million is primarily attributable to earnings, net of dividends paid.
Net Interest Income
Net interest income (on a fully tax-equivalent basis) for the first quarter of 2007 was $22.9 million, an increase of 36% when compared to the first quarter of 2006. The increase is primarily the result of the continued growth in the Company's loan portfolio, both from organic growth and growth from acquisitions. The net interest margin (on a fully tax-equivalent basis) was 4.22% for the quarter ended March 31, 2007, compared to 4.54% for the comparable period one year ago and 4.14% for the fourth quarter of 2006.
Noninterest Income and Expense
Noninterest income for the first quarter of 2007 was $5.1 million, which increased slightly when compared to the $4.9 million recognized during the first quarter of 2006.
Noninterest expense for the first quarter of 2007 was $15.9 million, an increase of 24% over the first quarter 2006 level of $12.9 million. The increase is primarily attributable to a $1.8 million increase in salaries and benefits, most of which is the direct result of the Company's significant growth from the acquisitions of Neighbors Bancshares, Inc. and Homestead Bank during 2006. The increase is also related to occupancy and equipment expenses, which increased approximately $192,000 due to the addition of properties in connection with acquisitions since the first quarter of 2006. Furthermore, the increase is related to increased costs with respect to foreclosed property expense ($186,000), professional fees ($150,000) and software amortization ($93,000). The remainder of the increase is spread over various expense categories. Compared to the first quarter of 2006, the Company's efficiency ratio improved to 56.8% from 59.3%.
Asset Quality
Total nonperforming assets (nonaccrual, repossessed assets and other real estate owned) at March 31, 2007 were $42.5 million, or 2.11% of total loans plus other real estate owned compared to $37.2 million, or 1.95% at the end of the fourth quarter of 2006. The total nonperforming asset figure of $42.5 million at March 31, 2007 was within management's estimate of $40 to $43 million in nonperforming assets in its news release dated December 28, 2006.
Net charge-offs to average loans decreased to 0.05% for the first quarter of 2007 from 0.06% in the first quarter of 2006. The allowance for loan losses was $23.3 million, or 1.16% of loans at March 31, 2007, up from $17.8 million at March 31, 2006. The increase in the allowance for loan losses is primarily attributable to growth in the Company's loan portfolio and the addition of $2.9 million of loss reserves in connection with the acquisition of Homestead Bank during the period.
Other Information
Management is reiterating its earnings projection of $1.51 to $1.55 per diluted share for full fiscal year 2007, which would represent an increase of 9% to 12% over 2006's operating earnings per diluted share of $1.38.
Security Bank Corporation management will host a conference call to discuss these results at 8:30 AM Eastern Daylight Time on Thursday, April 19, 2007. This call is open to all interested parties. From locations within the United States, the call-in number is 877-407-8035 (201-689-8035 from outside the United States). Please call in 10 minutes prior to the beginning of the conference call and ask for the Security Bank Corporation conference call.
A recorded playback of the conference call will be available by calling 877-660-6853, (201-612-7415 from outside the United States) from approximately 12:00 PM EDT, Thursday, April 19th, until 11:59 PM EDT Friday, April 27, 2007. The reservation numbers for this playback are Account #286 and Conference ID # 235409.
This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are "tangible book value", "return on average tangible equity", "net operating income", and "operating earnings per diluted share." Security Bank's management uses these non-GAAP measures in its analysis of Security Bank's performance.
Tangible book value is defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Security Bank that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period or year-to-date period, as applicable) divided by average equity reduced by average goodwill and other intangible assets, net of related deferred tax benefits. Security Bank's management includes this measure because it believes that it is important when measuring the Company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and this measure is used by many investors as part of their analysis of Security Bank.
Further, non-GAAP measures typically adjust GAAP performance measures to exclude the effects of significant gains, losses or expenses that are unusual in nature and not expected to recur. Other non-GAAP financial measures included in this release are referred to as "net operating income" and "operating earnings per diluted share", which exclude losses on the sale of investment securities and gains on the early prepayment of advances with the Federal Home Loan Bank. Since these items and their impact on the Company's performance are difficult to predict, management believes presentations of financial measures, excluding the impact of these items, provide useful supplemental information that is important for a proper understanding of the operating results of the Company's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures.
About Security Bank Corporation
Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.5 billion at March 31, 2007. Security Bank Corporation operates 6 community banks with banking offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta. In addition, Security Bank Corporation operates an interim real estate and development lender and traditional mortgage originator, Fairfield Financial Services, Inc., with offices throughout Georgia.
Security Bank Corporation common stock is traded on the NASDAQ Global Select Market under the ticker symbol "SBKC."
Safe Harbor
This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward looking statements. These statements may address issues involving significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections and expectations for many reasons, including without limitation, changing events and trends that have influenced Security Bank Corporation's assumptions, but are beyond Security Bank Corporation's control. Forward-looking statements are necessarily estimates reflecting the best judgment of Security Bank Corporation senior management based upon current information and involve a number of risks and uncertainties. Please refer to Security Bank Corporation's public filings with the Securities and Exchange Commission for a summary of important factors that could affect Security Bank Corporation's financial results and operations and its forward-looking statements. Security Bank Corporation does not intend to and assumes no responsibility, except as required by law, for updating or revising any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.
Additional Information About the First Commerce Transaction
Security Bank will file a Registration Statement on Form S-4 regarding the First Commerce transaction with the Securities and Exchange Commission that will contain a proxy statement/prospectus for the shareholders of First Commerce. First Commerce will mail the proxy statement/prospectus to its shareholders. These documents will contain important information about the transaction, and Security Bank Corporation and First Commerce urge you to read these documents when they become available.
This press release does not constitute an offer to buy, or a solicitation to sell, shares of First Commerce common stock or the solicitation of any proxies from First Commerce shareholders.
You may obtain copies of all documents filed with the Securities and Exchange Commission regarding this transaction, free of charge, at the SEC's website at www.sec.gov. In addition, copies of these documents may also be obtained from us without charge by directing a written request to Security Bank Corporation, P.O. Box 4748, Macon, Georgia 31208, attention: Chief Financial Officer.
For more information, contact Rett Walker, Chief Executive Officer at 478-722-6220 or Jim McLemore, Chief Financial Officer at 478-722-6243. Media inquiries should be directed to Tom Woodbery, Marketing Director, at 478-722-6117.
Security Bank Corporation
Selected Consolidated Financial Data
(Dollars in Thousands, except Per Share Amounts)
Unaudited
Quarters Ended
March 31, %
2007 2006 Change
---- ---- -------
EARNINGS SUMMARY:
Net interest income (FTE) $ 22,888 $ 16,814 36.1%
Provision for Loan Losses 1,260 630 100.0%
Noninterest Income 5,122 4,917 4.2%
Noninterest Expense 15,918 12,881 23.6%
Provision for Income Taxes 3,935 2,979 32.1%
Net Income 6,786 5,140 32.0%
PER COMMON SHARE:
Basic earnings $ 0.35 $ 0.36 -2.8%
Diluted earnings 0.35 0.35 0.0%
Cash dividends declared 0.088 0.075 16.7%
Book value 16.25 13.75 18.2%
Tangible book value 9.39 7.08 32.6%
KEY PERFORMANCE RATIOS (a):
Return on average tangible
equity (b) 15.78% 19.92%
Return on average assets 1.13% 1.25%
Efficiency ratio 56.83% 59.27%
Net interest margin (FTE) 4.22% 4.54%
Net charge-offs to average
loans 0.05% 0.06%
BALANCE SHEET SUMMARY - END OF
PERIOD
Investment securities $ 191,945 $ 146,932 30.6%
Loans Held for Resale 8,341 7,776 7.3%
Loans, gross 2,016,997 1,469,692 37.2%
Allowance for loan losses 23,336 17,812 31.0%
Total assets 2,541,603 1,912,841 32.9%
Deposits 2,019,089 1,530,384 31.9%
Other borrowed money 188,953 143,936 31.3%
Shareholders' equity 311,729 217,033 43.6%
ASSET QUALITY - END OF PERIOD
Nonaccrual loans $ 39,139 $ 8,171 379.0%
Loans 90 Days Past Due and
Accruing -- -- 0.0%
Other real estate owned 3,403 2,488 36.8%
Total nonperforming assets 42,542 10,659 299.1%
Allowance for loan losses/NPA's 54.85% 167.11%
Allowance for loan losses/loans 1.16% 1.21%
(a) Annualized based on number of days in the period, except
efficiency ratio
(b) Calculation of this measure is illustrated in the attached GAAP
to non-GAAP reconciliation
Security Bank Corporation
Average Balance Sheet and Net Interest Income Analysis
(Dollars in Thousands)
Unaudited
Quarter Ended
March 31, 2007
Average Income/ Yield/
Balance Expense Rate
------- ------- ------
ASSETS
Earning assets:
Interest-bearing
deposits and fed
funds sold $ 51,054 $ 675 5.36%
Investment securities 194,248 2,505 5.23%
Loans Held for Resale 4,557 73 6.50%
Loans 1,950,864 42,867 8.91%
Other earning assets 1,238 24 7.86%
Total earning assets 2,201,961 46,144 8.50%
Non-earning assets 239,365
-----------
Total assets $ 2,441,326
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Savings and
interest-bearing
transaction $ 522,329 $ 4,598 3.57%
Time deposits 1,295,273 16,787 5.26%
Other borrowings 125,594 1,871 6.04%
Total interest-bearing
liabilities 1,943,196 23,256 4.85%
Noninterest-bearing
liabilities:
Noninterest bearing
deposits 165,255
Other
noninterest-bearing
liabilities 24,184
Total liabilities $ 2,132,635
-----------
Shareholders' Equity 308,691
-----------
Total liabilities and
shareholders' equity $ 2,441,326
===========
Interest rate spread 3.65%
Net interest income $ 22,888
Net interest margin (FTE) 4.22%
Security Bank Corporation (SBKC)
Selected Financial Information
(Amounts in thousands, except per share data)
2007
--------------
1st Quarter
--------------
Period-End Balance Sheet
------------------------
Total Assets $ 2,541,603
Total Securities 191,945
Mortgage Loans held for Sale 8,341
Loans:
Commercial:
Real-Estate 932,971
Construction 703,703
All Other 154,406
Residential:
Consumer Real-Estate 152,217
Consumer Construction 28,470
All Other Consumer 45,230
Total Loans 2,016,997
Allowance for loan losses 23,336
Other Assets:
Other earning assets: 78,319
Total Earning Assets: 2,295,602
Intangibles:
Goodwill 128,553
Core-Deposit 4,863
Deposits:
Demand Deposits 176,658
Interest bearing deposits 1,842,431
Total Deposits 2,019,089
Fed Funds purchased
& repo agreements 59,065
Other borrowed funds 129,888
Common Equity 311,729
======================================================
Average Balance Sheet
---------------------
Total Assets $ 2,441,326
Total Securities 194,248
Mortgage Loans held for Sale 4,557
Loans:
Commercial:
Real-Estate 937,948
Construction 627,003
All Other 156,406
Residential:
Consumer Real-Estate 151,018
Consumer Construction 29,134
All Other Consumer 49,355
Total Loans 1,950,864
Other Assets:
Other earning assets: 52,292
Total Earning Assets: 2,201,961
Deposits:
Demand Deposits 165,255
Interest bearing deposits
Savings 16,612
NOW 367,657
Money Market 138,060
Time deposits gt. $100,000 779,136
Time deposits lt. $100,000 516,137
Total Deposits 1,982,857
Fed Funds purchased
& repo agreements 34,158
Other borrowed funds 91,436
Common Equity 308,691
======================================================
Income Statement
----------------
Interest Income $ 46,033
Interest Expense 23,256
Net Interest Income 22,777
Loan loss provision 1,260
Service charges on deposit accounts 2,098
Mortgage banking revenues 1,039
Securities Gains (Losses) 2
Other income 1,983
Total noninterest income 5,122
Salaries and benefits 9,551
Occupancy and equipment 1,488
Other noninterest expense 4,879
Total noninterest expense 15,918
Pre-tax earnings 10,721
Income Taxes 3,935
Net income $ 6,786
Basic earnings per share (3) $ 0.35
Diluted earnings per share (3) 0.35
Operating diluted earnings per share (3), (4) 0.35
End of period shares outstanding (3) 19,181,241
Weighted average diluted shares o/s (3) 19,456,857
Tax equivalent adjustment 111
Net interest income (FTE) 22,888
Effective Tax Rate 36.70%
======================================================
Stock and related per share data: (3)
-------------------------------------
Book value $ 16.25
Tangible book value 9.39
Dividends declared per share 0.0875
======================================================
Other Key Ratios/Data:
----------------------
Return on average tangible equity (2), (4) 15.78%
Return on average assets (2) 1.13%
Net interest margin (FTE) (2) 4.22%
Efficiency ratio (FTE) 56.83%
Tangible Equity/Tangible Assets (4) 7.48%
======================================================
Loan Performance Data:
----------------------
Nonaccrual loans $ 39,139
Loans 90 Days Past Due and Accruing -
Other real estate owned (ORE) 3,403
Total nonperforming assets 42,542
Net charge-offs 260
Allowance for loan losses/NPA's 54.85%
Allowance for loan losses/loans 1.16%
NPA's/Loans plus ORE 2.11%
Nonperforming assets/total assets 1.67%
Net charge-offs to average loans (1) 0.05%
======================================================
2006
----------------------------------------------------------
Dec. 31/YTD 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
----------------------------------------------------------
Period-End
Balance Sheet
-------------
Total
Assets $2,494,071 $2,494,071 $2,314,913 $1,974,376 $1,912,841
Total
Securities 229,940 229,940 211,005 163,378 146,932
Mortgage
Loans held
for Sale 8,878 8,878 8,947 12,201 7,776
Loans:
Commercial:
Real-Estate 916,919 916,919 884,417 705,072 699,215
Con-
struction 602,712 602,712 553,296 460,131 430,585
All Other 152,289 152,289 125,468 115,968 103,396
Residential:
Consumer
Real-
Estate 150,398 150,398 151,559 151,633 155,031
Consumer
Construc-
tion 30,262 30,262 30,332 32,057 30,376
All Other
Consumer 48,521 48,521 45,892 36,102 51,089
Total
Loans 1,901,101 1,901,101 1,790,964 1,500,963 1,469,692
Allowance for
loan losses 22,336 22,336 21,477 18,190 17,812
Other Assets:
Other
earning
assets: 97,808 97,808 49,612 82,265 78,567
Total
Earning
Assets: 2,237,727 2,237,727 2,060,528 1,758,807 1,702,967
Intangibles:
Goodwill 127,984 127,984 131,162 103,014 102,659
Core-Deposit 5,110 5,110 5,356 4,907 5,129
Deposits:
Demand
Deposits 178,967 178,967 173,129 172,023 168,235
Interest
bearing
deposits 1,791,960 1,791,960 1,659,876 1,403,986 1,362,149
Total
Deposits 1,970,927 1,970,927 1,833,005 1,576,009 1,530,384
Fed Funds
purchased
& repo
agreements 50,917 50,917 35,819 20,030 18,271
Other
borrowed
funds 124,688 124,688 123,988 112,465 125,665
Common
Equity 305,800 305,800 301,665 257,172 217,033
=====================================================================
Average
Balance Sheet
-------------
Total
Assets $2,028,906 $2,368,642 $2,157,297 $1,906,800 $1,673,006
Total
Securities 173,665 216,433 183,291 151,542 142,473
Mortgage
Loans held
for Sale 6,576 6,064 7,015 8,011 5,200
Total Loans 1,599,508 1,864,427 1,697,108 1,494,812 1,334,789
Other
earning
assets: 35,756 37,051 39,313 45,829 20,624
Total
Earning
Assets: 1,815,505 2,123,975 1,926,727 1,700,194 1,503,086
Deposits:
Demand
Deposits 166,190 169,410 172,393 166,941 155,181
Interest
bearing
deposits
Savings 19,268 17,085 18,645 20,359 21,036
NOW 310,624 358,114 335,152 307,630 240,033
Money
Market 127,456 146,241 132,302 103,540 127,480
Time
deposits gt.
$100,000 571,992 688,977 608,483 542,530 445,970
Time
deposits lt.
$100,000 423,708 506,804 471,973 386,389 325,379
Total
Deposits 1,619,238 1,886,631 1,738,948 1,527,389 1,315,079
Fed Funds
purchased
& repo
agreements 29,874 45,112 26,036 23,230 24,608
Other
borrowed
funds 108,997 108,338 89,927 102,493 136,740
Common
Equity 252,004 304,362 283,937 235,731 182,219
=====================================================================
Income Statement
----------------
Interest
Income $ 148,081 $ 44,415 $ 40,669 $ 34,214 $ 28,783
Interest
Expense 68,647 22,353 19,082 15,142 12,070
Net Interest
Income 79,434 22,062 21,587 19,072 16,713
Loan loss
provision 4,468 1,873 1,226 739 630
Service
charges on
deposit
accounts 9,162 2,336 2,387 2,335 2,104
Mortgage
banking
revenues 4,922 1,007 1,231 1,433 1,251
Securities
Gains
(Losses) (1,601) (1,331) (270) -- --
Other income 5,423 1,074 1,638 1,149 1,562
Total non-
interest
income 17,906 3,086 4,986 4,917 4,917
Salaries and
benefits 32,376 8,313 8,497 7,804 7,762
Occupancy and
equipment 5,622 1,471 1,396 1,459 1,296
Other non-
interest
expense 17,604 4,891 4,539 4,351 3,823
Total non-
interest
expense 55,602 14,675 14,432 13,614 12,881
Pre-tax
earnings 37,270 8,600 10,915 9,636 8,119
Income Taxes 13,878 3,378 3,975 3,546 2,979
Net income $ 23,392 $ 5,222 $ 6,940 $ 6,090 $ 5,140
Basic
earnings per
share(c) $ 1.36 $ 0.26 $ 0.38 $ 0.36 $ 0.36
Diluted
earnings per
share(c) 1.33 0.26 0.37 0.36 0.35
Operating
diluted
earnings per
share (c),(d) 1.38 0.31 0.37 0.36 0.35
End of
period shares
outstand-
ing(c) 19,166,314 19,166,314 19,161,507 17,519,112 15,782,125
Weighted
average
diluted
shares
o/s (c) 17,564,990 19,528,891 18,971,126 16,910,380 14,784,856
Tax equi-
valent ad-
justment 414 106 107 100 101
Net interest
income (FTE) 79,848 22,168 21,694 19,172 16,814
Effective
Tax Rate 37.24% 39.28% 36.42% 36.80% 36.69%
=====================================================================
Stock and related
per share data:(c)
------------------
Book value $ 15.96 $ 15.96 $ 15.74 $ 14.68 $ 13.75
Tangible
book value 8.99 8.99 8.76 8.66 7.08
Dividends
declared per
share 0.30 0.075 0.075 0.075 0.075
=====================================================================
Other Key
Ratios/Data:
------------
Return on
average
tangible
equity(b),(d) 16.53% 12.19% 17.13% 18.81% 19.92%
Return on
average
assets(b) 1.15% 0.87% 1.28% 1.28% 1.25%
Net interest
margin
(FTE)(b) 4.40% 4.14% 4.47% 4.52% 4.54%
Efficiency
ratio (FTE) 56.88% 58.11% 54.09% 56.51% 59.27%
Tangible
Equity/
Tangible
Assets(d) 7.39% 7.39% 7.67% 8.09% 6.15%
=====================================================================
Loan Performance
Data:
----------------
Nonaccrual
loans $ 34,401 $ 34,401 $ 16,946 $ 17,269 $ 8,171
Loans 90
Days Past
Due and
Accruing -- -- -- -- --
Other real
estate
owned (ORE) 2,775 2,775 1,867 1,817 2,488
Total non-
performing
assets 37,176 37,176 18,813 19,086 10,659
Net charge-
offs 2,362 1,014 789 361 198
Allowance
for loan
losses/NPAs 60.08% 60.08% 114.16% 95.31% 167.11%
Allowance for
loan losses/
loans 1.18% 1.18% 1.20% 1.21% 1.21%
NPAs/Loans
plus ORE 1.95% 1.95% 1.05% 1.27% 0.72%
Nonperforming
assets/total
assets 1.49% 1.49% 0.81% 0.97% 0.56%
Net charge-
offs to
average
loans(a) 0.15% 0.22% 0.18% 0.10% 0.06%
=====================================================================
----------------------------------------------------------
2005
----------------------------------------------------------
Dec. 31/YTD 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
----------------------------------------------------------
Period-End
Balance Sheet
-------------
Total
Assets $1,662,413 $1,662,413 $1,345,566 $1,329,629 $1,116,123
Total
Securities 150,986 150,986 121,374 122,763 112,703
Mortgage
Loans held
for Sale 5,562 5,562 9,372 7,413 6,384
Loans:
Commercial:
Real-
Estate 609,010 609,010 418,020 423,720 412,779
Construc-
tion 334,114 334,114 316,701 309,270 232,629
All Other 95,688 95,688 137,879 126,290 69,983
Residential:
Consumer
Real-
Estate 163,874 163,874 118,679 116,119 115,168
Consumer
Construc-
tion 19,750 19,750 19,371 20,041 17,835
All Other
Consumer 49,683 49,683 53,420 46,285 42,097
Total
Loans 1,272,119 1,272,119 1,064,070 1,041,725 890,491
Allowance
for loan
losses 16,148 16,148 13,628 13,264 11,357
Other Assets:
Other
earning
assets: 41,330 41,330 23,928 45,141 18,846
Total
Earning
Assets: 1,469,997 1,469,997 1,218,744 1,217,042 1,028,424
Intangibles:
Goodwill 74,582 74,582 49,677 50,507 31,852
Core-Deposit 4,687 4,687 1,498 1,580 542
Deposits:
Demand
Deposits 156,698 156,698 137,295 121,600 115,241
Interest
bearing
deposits 1,134,555 1,134,555 949,084 952,487 791,833
Total
Deposits 1,291,253 1,291,253 1,086,379 1,074,087 907,074
Fed Funds
purchased
& repo
agreements 43,876 43,876 10,052 5,714 12,469
Other
borrowed
funds 128,265 128,265 100,207 94,007 77,707
Common Equity 179,279 179,279 140,382 136,993 110,942
=====================================================================
Average Balance
Sheet
---------------
Total
Assets $1,238,033 $1,353,208 $1,326,590 $1,184,441 $1,082,503
Total
Securities 116,110 117,857 123,002 115,694 107,674
Mortgage
Loans held
for Sale 6,726 6,754 8,769 6,132 5,167
Total Loans 997,526 1,091,643 1,064,766 956,933 874,078
Other earning
assets: 16,840 17,800 17,327 18,467 13,729
Total
Earning
Assets: 1,137,202 1,234,054 1,213,864 1,097,226 1,000,648
Deposits:
Demand
Deposits 119,867 131,616 122,600 116,899 108,057
Interest
bearing
deposits
Savings 19,969 18,648 19,646 20,821 20,782
NOW 158,264 198,465 175,373 141,396 116,830
Money
Market 80,640 78,800 83,961 81,233 78,542
Time
deposits gt.
$100,000 317,143 355,908 349,889 304,208 257,372
Time
deposits lt.
$100,000 305,609 312,576 324,000 298,644 286,742
Total
Deposits 1,001,492 1,096,013 1,075,469 963,201 868,325
Fed Funds
purchased
& repo
agreements 16,295 19,704 12,224 15,899 17,256
Other
borrowed
funds 83,754 86,260 89,601 76,511 82,205
Common
Equity 126,461 141,576 138,246 118,365 107,792
=====================================================================
Income Statement
----------------
Interest
Income $ 78,192 $ 22,860 $ 21,444 $ 18,023 $ 15,865
Interest
Expense 27,839 8,864 7,976 6,162 4,837
Net Interest
Income 50,353 13,996 13,468 11,861 11,028
Loan loss
provision 2,833 630 624 804 775
Service
charges on
deposit
accounts 7,351 1,940 1,956 1,858 1,597
Mortgage
banking
revenues 4,539 1,040 1,333 1,207 959
Securities
Gains
(Losses) (6) - - - (6)
Other income 4,719 1,117 1,121 1,517 964
Total non-
interest
income 16,603 4,097 4,410 4,582 3,514
Salaries and
benefits 22,811 6,044 6,115 5,598 5,054
Occupancy and
equipment 3,785 1,048 985 906 846
Other non-
interest
expense 12,032 3,485 3,156 2,828 2,563
Total non-
interest
expense 38,628 10,577 10,256 9,332 8,463
Pre-tax
earnings 25,495 6,886 6,998 6,307 5,304
Income Taxes 9,310 2,507 2,509 2,397 1,897
Net income $ 16,185 $ 4,379 $ 4,489 $ 3,910 $ 3,407
Basic
earnings per
share(c) $ 1.31 $ 0.34 $ 0.36 $ 0.32 $ 0.29
Diluted
earnings per
share(c) 1.27 0.33 0.33 0.32 0.29
Operating
diluted
earnings per
share(c),(d) 1.27 0.33 0.33 0.32 0.29
End of period
shares
outstand-
ing(c) 14,386,960 14,386,960 12,911,550 12,851,640 11,755,982
Weighted
average
diluted
shares
o/s(c) 12,736,544 13,316,163 13,218,030 12,374,075 11,970,224
Tax
equivalent
adjustment 324 81 79 82 82
Net interest
income (FTE) 50,677 14,077 13,547 11,943 11,110
Effective
Tax Rate 36.52% 36.41% 35.85% 38.00% 35.77%
=====================================================================
Stock and related
per share data:(c)
------------------
Book value $ 12.46 $ 12.46 $ 10.87 $ 10.66 $ 9.44
Tangible
book value 7.08 7.08 6.94 6.65 6.69
Dividends
declared
per share 0.26 0.065 0.065 0.065 0.065
=====================================================================
Other Key
Ratios/Data:
-------------
Return on
average
tangible
equity(b),(d) 19.30% 19.15% 20.46% 19.64% 17.64%
Return on
average
assets(b) 1.31% 1.28% 1.34% 1.32% 1.28%
Net interest
margin
(FTE)(b) 4.46% 4.53% 4.43% 4.37% 4.50%
Efficiency
ratio (FTE) 57.42% 58.20% 57.11% 56.47% 57.87%
Tangible
Equity/
Tangible
Assets(d) 6.42% 6.42% 6.93% 6.69% 7.27%
=====================================================================
Loan Performance
Data:
----------------
Nonaccrual
loans $ 6,997 $ 6,997 $ 5,746 $ 5,200 $ 5,761
Loans 90
Days Past
Due and
Accruing -- -- -- 59 --
Other real
estate
owned (ORE) 2,394 2,394 1,722 1,467 938
Total non-
performing
assets 9,391 9,391 7,468 6,726 6,699
Net charge-
offs 1,219 321 260 317 321
Allowance for
loan losses/
NPAs 171.95% 171.95% 182.49% 197.20% 169.53%
Allowance for
loan losses/
loans 1.27% 1.27% 1.28% 1.27% 1.28%
NPAs/Loans
plus ORE 0.74% 0.74% 0.70% 0.64% 0.75%
Nonperforming
assets/total
assets 0.56% 0.56% 0.56% 0.51% 0.60%
Net charge-offs
to average
loans(a) 0.12% 0.12% 0.10% 0.13% 0.15%
=====================================================================
gt. = greater than
lt. = less than
(a) Annualized
(b) The actual number of days in the period were used to annualize
income
(c) Adjusted for 2-for-1 stock split effective May 27, 2005
(d) Calculation of this measure is illustrated in the attached
GAAP to non-GAAP reconciliation
2007
-----------
1st Quarter
-----------
Reconciliation Table- GAAP to non-GAAP:
--------------------------------------
Book Value per share $ 16.25
Effect of intangible assets per share (6.86)
Tangible book value $ 9.39
Equity $ 311,729
Intangible assets 133,416
Less tax effect of Core-Deposit Intangible (38%) (1,848)
Tangible equity $ 180,161
Assets $ 2,541,603
Intangible assets 131,568
Tangible assets $ 2,410,035
Equity/Assets 12.27%
Effect of intangible assets -4.79%
Tangible Equity/Tangible Assets 7.48%
Average Equity $ 308,691
Average Intangible assets 136,228
Less tax effect of Core-Deposit Intangible (38%) (1,896)
Average tangible equity $ 174,359
Net Income (a) $ 27,521
Return on average tangible equity 15.78%
Diluted earnings per share $ 0.35
Effect of securities (gains) losses, net of tax --
Effect of prepayment of FHLB advances, net of tax --
Diluted operating earnings per share $ 0.35
Net income $ 6,786
Effect of securities (gains) losses, net of tax (1)
Effect of prepayment of FHLB advances, net of tax --
Net operating income $ 6,785
2006
---------------------------------------------------------------------
Dec 31/YTD 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
---------------------------------------------------------------------
Reconciliation
Table-
GAAP to non-GAAP:
------------------
Book Value
per share $15.96 $15.96 $15.74 $14.68 $13.75
Effect of
intangible
assets
per share (6.97) (6.97) (6.98) (6.02) (6.67)
Tangible
book value $8.99 $8.99 $8.76 $8.66 $7.08
Equity $305,800 $305,800 $301,665 $257,172 $217,033
Intangible
assets 133,094 133,094 136,518 107,921 107,788
Less tax
effect of
Core-Deposit
Intangible
(38%) (1,942) (1,942) (2,035) (1,865) (1,949)
Tangible
equity $ 174,648 $ 174,648 $ 167,182 $ 151,116 $ 111,194
Assets $2,494,071 $2,494,071 $2,314,913 $1,974,376 $1,912,841
Intangible
assets 131,152 131,152 134,483 106,056 105,839
Tangible
assets $2,362,919 $2,362,919 $2,180,430 $1,868,320 $1,807,002
Equity/
Assets 12.26% 12.26% 13.03% 13.03% 11.35%
Effect of
intangible
assets -4.87% -4.87% -5.36% -4.94% -5.19%
Tangible
Equity/
Tangible
Assets 7.39% 7.39% 7.67% 8.09% 6.15%
Average
Equity $252,004 $304,362 $283,937 $235,731 $182,219
Average
Intangible
assets 112,385 136,443 125,227 107,763 79,313
Less tax
effect of
Core-Deposit
Intangible
(38%) (1,921) (2,001) (2,006) (1,918) (1,754)
Average
tangible
equity $ 141,540 $ 169,920 $ 160,716 $ 129,886 $ 104,660
Net
Income (a) $23,392 $20,718 $27,534 $24,427 $20,846
Return on
average
tangible
equity 16.53% 12.19% 17.13% 18.81% 19.92%
Diluted
earnings
per share $1.33 $0.26 $0.37 $0.36 $0.35
Effect of
securities
losses,
net of tax 0.06 0.05 0.01 -- --
Effect of
prepayment
of FHLB
advances,
net of tax
(0.01) -- (0.01) -- --
Diluted
operating
earnings
per share $1.38 $0.31 $0.37 $0.36 $0.35
Net income $23,392 $5,222 $6,940 $6,090 $5,140
Effect of
securities
losses,
net of tax 980 808 172 -- --
Effect of
prepayment
of FHLB
advances,
net of tax (174) -- (174) -- --
Net operating
income $24,198 $6,030 $6,938 $6,090 $5,140
2005
--------------------------------------------------------------------
Dec 31/YTD 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
--------------------------------------------------------------------
Reconciliation
Table-
GAAP to non-GAAP:
------------------
Book Value
per share $ 12.46 $ 12.46 $ 10.87 $ 10.66 $ 9.44
Effect of
intangible
assets
per share (5.38) (5.38) (3.93) (4.01) (2.75)
Tangible
book value $ 7.08 $ 7.08 $ 6.94 $ 6.65 $ 6.69
Equity $ 179,279 $ 179,279 $ 140,382 $ 136,993 $ 110,942
Intangible
assets 79,269 79,269 51,175 52,087 32,394
Less tax
effect of
Core-Deposit
Intangible
(38%) (1,781) (1,781) (569) (600) (206)
Tangible
equity $ 101,791 $ 101,791 $ 89,776 $ 85,506 $ 78,754
Assets $1,662,413 $1,662,413 $1,345,566 $1,329,629 $1,116,123
Intangible
assets 77,488 77,488 50,606 51,487 32,188
Tangible
assets $1,584,925 $1,584,925 $1,294,960 $1,278,142 $1,083,935
Equity/
Assets 10.78% 10.78% 10.43% 10.30% 9.94%
Effect of
intangible
assets -4.36% -4.36% -3.50% -3.61% -2.67%
Tangible
Equity/
Tangible
Assets 6.42% 6.42% 6.93% 6.69% 7.27%
Average
Equity $126,461 $141,576 $138,246 $118,365 $107,792
Average
Intangible
assets 43,025 51,446 51,782 38,851 29,649
Less tax
effect of
Core-Deposit
Intangible
(38%) (429) (571) (587) (337) (206)
Average
tangible
equity $ 83,865 $ 90,701 $87,051 $79,851 $78,349
Net
Income (a) $ 16,185 $ 17,373 $ 17,810 $ 15,685 $ 13,817
Return on
average
tangible
equity 19.30% 19.15% 20.46% 19.64% 17.64%
Diluted
earnings
per share $ 1.27 $ 0.33 $ 0.33 $ 0.32 $ 0.29
Effect of
securities
losses,
net of tax -- -- -- -- --
Effect of
prepayment
of FHLB
advances,
net of tax -- -- -- -- --
Diluted
operating
earnings
per share $ 1.27 $ 0.33 $ 0.33 $ 0.32 $ 0.29
Net income $ 16,185 $ 4,379 $ 4,489 $ 3,910 $ 3,407
Effect of
securities
losses, net
of tax 4 -- -- -- 4
Effect of
prepayment
of FHLB
advances,
net of tax -- -- -- -- --
Net operating
income $ 16,189 $ 4,379 $ 4,489 $ 3,910 $ 3,411
(a) The actual number of days in the period were used to annualize
income