ELLIJAY, Ga., Oct. 26, 2007 (PRIME NEWSWIRE) -- Appalachian Bancshares, Inc. (Nasdaq:APAB), holding company for Appalachian Community Bank and Appalachian Community Bank, F.S.B., today announced that total assets grew to $898.0 million, as of September 30, 2007, compared to $742.8 million on September 30, 2006, an increase of 20.9%. Total loans, net of allowance, were $744.0 million, an increase of $158.6 million, or 27.1%, when compared with $585.4 million on September 30, 2006. Deposits grew to $766.7 million as of September 30, 2007, an increase of $167.4 million, or 27.9%, when compared to $599.3 million on September 30, 2006.
Tracy Newton, President and Chief Executive Officer, stated that, "We continue to see exceptional growth in our balance sheet, with our total assets approaching $900 million. Also, we continue to see benefits from our investment in expanding our network of branches, which has helped us to increase, both, deposits and total loans, by over 27% since last year."
Net income for the first nine months of 2007 was $4,467,000, or $0.85 per diluted share, a 2.4% increase in net income when compared to $4,362,000, or $0.83 per diluted share, for the same period in 2006. Net income for the third quarter of 2007 was $1,407,000, or $0.27 per diluted share, a 1.4% increase in net income when compared to $1,388,000, or $0.26 per diluted share, for the same period in 2006.
Annualized return on average shareholders' equity was 8.62% for the nine months ended September 30, 2007, compared to 9.44% for the nine months ended September 30, 2006. Annualized return on average assets was 0.71% for the nine months ended September 30, 2007, compared to 0.92% for the nine months ended September 30, 2006.
Mr. Newton commented that, "Given the current market environment, we are pleased with the returns we have seen through the third quarter. As is the case throughout much of the banking industry, we have experienced a year-over-year increase in our non-performing loans. Our board of directors and management continue to review and analyze the economic circumstances in each of our markets and our related loan portfolios, and we will continue to closely monitor our loan concentrations and our relevant lending policies and procedures. With this proactive approach to date, we feel confident that our loan loss reserves remain adequate."
Mr. Newton commented further that, "We also are excited about the recent appointment of Danny Dukes as our new Chief Financial Officer. Danny's background and experience will be a very valuable addition to our management team, and we believe that we have the right team in place to handle any changing market conditions and to capitalize on our expanded network of branches."
The net interest margin was 4.76% for the nine months ended September 30, 2007, compared to 5.09% for the same period a year ago.
Total revenue, net of interest expense, was $10.9 million and $31.8 million for the quarter and nine-month period ended September 30, 2007, respectively. This represented increases of 21% and 26.3% over the same periods in 2006.
Book value per share stood at $13.66 at September 30, 2007, compared to $12.54 per share at September 30, 2006, an increase of approximately 8.9%.
Conference Call
The Company will hold a conference call on Friday, October 26, 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 also will 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 in Whitfield County, Georgia, under the trade name of Banco Fuerza) 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 thirteen banking offices, located in Ellijay, East Ellijay, Blue Ridge, Blairsville, Chatsworth, Dawsonville, McCaysville, Dahlonega and Dalton, 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.
APPALACHIAN BANCSHARES, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Summary Results
of Operations
Data:
Interest
income $ 18,529 $ 14,124 $ 53,059 $ 37,699
Interest
expense 9,154 6,188 25,380 15,350
---------- ---------- ---------- ----------
Net interest
income 9,375 7,936 27,679 22,349
Provision for
loan losses 677 751 2,260 2,459
---------- ---------- ---------- ----------
Net interest
income after
provision
for loan
losses 8,698 7,185 25,419 19,890
Noninterest
income 1,499 1,049 4,131 2,846
Noninterest
expense 8,085 6,355 22,817 16,266
---------- ---------- ---------- ----------
Income before
taxes 2,112 1,879 6,733 6,470
Income tax
expense 705 491 2,266 2,108
---------- ---------- ---------- ----------
Net income $ 1,407 $ 1,388 $ 4,467 $ 4,362
========== ========== ========== ==========
Per Share Data:
Net income,
basic $ 0.27 $ 0.27 $ 0.85 $ 0.85
Net income,
diluted 0.27 0.26 0.85 0.83
Book value 13.66 12.54 13.66 12.54
Weighted average
number of shares
outstanding:
Basic 5,298,509 5,169,202 5,256,568 5,160,226
Diluted 5,298,509 5,290,563 5,270,801 5,282,110
Performance
Ratios:
Return on
average
assets(1) 0.63% 0.80% 0.71% 0.92%
Return on
average
equity(1) 7.84% 8.70% 8.62% 9.44%
Net interest
margin(1)(2) 4.58% 4.96% 4.76% 5.09%
Efficiency
ratio(3) 74.35% 70.73% 71.73% 64.56%
Growth Ratios and
Other Data:
Percentage
change in
net income 1.37% 2.41%
Percentage
change in
diluted net
income per
share 3.85% 2.41%
At September 30,
--------------------
2007 2006
-------- --------
Summary Balance Sheet Data:
Assets $898,027 $742,786
Average earning assets QTD 820,311 640,065
Average earning assets YTD 784,442 592,156
Investment securities 78,768 71,983
Mortgage loans held for sale 4,187 --
Loans, net of unearned income 752,988 592,618
Allowance for loan losses 8,966 7,172
Deposits 766,726 599,348
Short-term borrowings 9,125 42,514
Accrued interest 1,979 1,202
Federal Home Loan Bank advances 37,450 25,500
Subordinated long-term capital notes 6,186 6,186
Other liabilities 4,266 3,150
Shareholders' equity 72,295 64,886
Asset Quality Ratios:
Nonperforming loans to total loans 0.77% 0.44%
Nonperforming assets to total assets 0.82% 0.39%
Net charge-offs to average total loans 0.14% 0.26%
Allowance for loan losses to
nonperforming loans 154.08% 277.98%
Allowance for loan losses to total loans 1.19% 1.21%
Growth Ratios and Other Data:
Percentage change in assets 20.90%
Percentage change in loans 27.06%
Percentage change in deposits 27.93%
Percentage change in equity 11.42%
Loans to deposits ratio 98.21%
---------------------
(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 Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Interest Income
Interest and
fees on loans $ 17,546 $ 13,305 $ 50,152 $ 35,235
Interest on
securities:
Taxable
securities 719 584 2,116 1,683
Nontaxable
securities 165 161 475 508
Interest on
deposits with
other banks 9 6 73 24
Interest on
federal funds
sold 90 68 243 249
---------- ---------- ---------- ----------
Total
Interest
Income 18,529 14,124 53,059 37,699
---------- ---------- ---------- ----------
Interest Expense
Interest on
deposits 8,553 5,592 23,659 13,793
Interest on
federal
funds
purchased,
short-term
notes
and securities
sold under
agreements to
repurchase 79 187 191 343
Interest on
Federal Home
Loan Bank
advances 389 275 1,129 848
Interest on
subordinated
long-term
capital notes 133 134 401 366
---------- ---------- ---------- ----------
Total
Interest
Expense 9,154 6,188 25,380 15,350
---------- ---------- ---------- ----------
Net Interest Income 9,375 7,936 27,679 22,349
Provision for
loan losses 677 751 2,260 2,459
---------- ---------- ---------- ----------
Net Interest Income
After Provision
for Loan Losses 8,698 7,185 25,419 19,890
---------- ---------- ---------- ----------
Noninterest Income
Customer
service fees 586 413 1,647 1,200
Mortgage
origination
commissions 483 391 1,476 942
Other
operating
income 430 245 1,008 704
---------- ---------- ---------- ----------
Total
Noninterest
Income 1,499 1,049 4,131 2,846
---------- ---------- ---------- ----------
Noninterest
Expenses
Salaries and
employee
benefits 4,870 3,820 13,808 9,690
Occupancy,
furniture
and equipment
expense 937 733 2,700 1,900
Other
operating
expenses 2,278 1,802 6,309 4,676
---------- ---------- ---------- ----------
Total
Noninterest
expense 8,085 6,355 22,817 16,266
---------- ---------- ---------- ----------
Income before
income taxes 2,112 1,879 6,733 6,470
Income tax
expense 705 491 2,266 2,108
---------- ---------- ---------- ----------
Net Income $ 1,407 $ 1,388 $ 4,467 $ 4,362
========== ========== ========== ==========
Earnings Per
Common Share
Basic 0.27 0.27 0.85 0.85
Diluted 0.27 0.26 0.85 0.83
Cash Dividends
Declared Per
Common Share -- -- -- --
Weighted Average
Shares
Outstanding
Basic 5,298,509 5,169,202 5,256,568 5,160,226
Diluted 5,298,509 5,290,563 5,270,801 5,282,110
APPALACHIAN BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)
September December September
30, 31, 30,
2007 2006 2006
--------- --------- ---------
Assets
Cash and due from banks $ 11,280 $ 7,940 $ 28,403
Interest-bearing deposits
with other banks 509 541 5,058
Federal funds sold 728 3,107 8,583
--------- --------- ---------
Cash and Cash Equivalents 12,517 11,588 42,044
Securities available-for-sale 78,768 74,725 71,983
Mortgage loans held for
sale 4,187 -- --
Loans, net of unearned
income 752,988 631,786 592,618
Allowance for loan losses (8,966) (7,670) (7,172)
--------- --------- ---------
Net Loans 744,022 624,116 585,446
Premises and equipment, net 31,868 23,412 22,562
Accrued interest 9,666 8,157 6,587
Cash surrender value on
life insurance 8,690 8,438 8,361
Intangibles, net 2,315 2,197 2,228
Other assets 5,994 5,581 3,575
--------- --------- ---------
Total Assets $ 898,027 $ 758,214 $ 742,786
========= ========= =========
Liabilities and
Shareholders' Equity
Liabilities
Noninterest-bearing deposits $ 62,877 $ 53,422 $ 57,509
Interest-bearing deposits 703,849 597,712 541,839
--------- --------- ---------
Total Deposits 766,726 651,134 599,348
Short-term borrowings 9,125 4,738 42,514
Accrued interest 1,979 1,454 1,202
Federal Home Loan Bank
advances 37,450 25,050 25,500
Subordinated long-term
capital notes 6,186 6,186 6,186
Other liabilities 4,266 2,889 3,150
--------- --------- ---------
Total Liabilities 825,732 691,451 677,900
--------- --------- ---------
Shareholders' Equity
Preferred Stock, 20,000,000
shares authorized, none
issued -- -- --
Common stock, par value
$0.01 per share,
20,000,000 shares
authorized, 5,294,026
shares issued at September
30, 2007, 5,280,497 shares
issued at December 31,
2006 and 5,252,197 shares
issued at September 30, 2006 53 53 53
Paid-in capital 44,039 43,870 43,722
Retained earnings 28,228 23,761 22,118
Accumulated other
comprehensive loss (25) (221) (307)
Treasury stock, at cost
(-0- shares at September 30,
2007, 75,973 shares at
December 31, 2006 and
September 30, 2006) -- (700) (700)
--------- --------- ---------
Total Shareholders' Equity 72,295 66,763 64,886
--------- --------- ---------
Total Liabilities and
Shareholders' Equity $ 898,027 $ 758,214 $ 742,786
========= ========= =========