FRANKLIN, Tenn., July 27, 2010 (GLOBE NEWSWIRE) -- Tennessee Commerce Bancorp, Inc. (Nasdaq:TNCC), parent company of Tennessee Commerce Bank, reported the following quarterly highlights for the second quarter of 2010:
Quarterly Highlights
- Net income for the second quarter of 2010, before the preferred dividend, was $1.9 million, compared to a net loss of $6.5 million for the second quarter of 2009.
- Diluted earnings per common share for the second quarter of 2010 was $0.26, compared to a loss of $1.46 for the second quarter of 2009.
- Net interest income of $13.3 million for the second quarter of 2010 represented an improvement of 27.7% compared to net interest income of $10.5 million for the second quarter of 2009.
- Efficiency ratio improved to 47.14% for the second quarter of 2010, compared to an efficiency ratio of 71.82% for the second quarter of 2009.
- Credit trends: At June 30, 2010, NPAs decreased $3.7 million, NPLs plus loans over 90 days past due decreased $4.0 million and early stage delinquencies improved significantly with a decrease of $26.7 million, compared to March 31, 2010.
Net interest income of $13.3 million for the second quarter of 2010 represents an improvement of 27.7% when compared to $10.5 million for the second quarter of 2009. As a result of the improvement in net interest income, the net interest margin remains strong at 4.25% for the second quarter of 2010 compared to 3.45% for the same period last year. Funding costs for deposits decreased 93 basis points for the second quarter of 2010 compared to the second quarter of 2009, while the yield on loans increased 10 basis points over the same periods. Funding costs remained flat from the first quarter of 2010, while yield on loans increased 5 basis points from the first quarter of 2010. These favorable changes contributed to the increase of 80 basis points in our net interest margin compared to the second quarter of 2009 and to the continued strong margin compared to the first quarter of 2010.
"We are pleased with our financial results during the quarter and moreover we are pleased that credit quality has been stable and improving. We are optimistic that the positive momentum evident in our regional economy will continue," stated Mike Sapp, President and Chief Executive Officer of Tennessee Commerce Bancorp, Inc.
Total assets increased slightly to $1.4 billion at June 30, 2010 or 0.44% from December 31, 2009. Total loans increased to $1.2 billion at June 30, 2010 or 2.2% from December 31, 2009, while total deposits increased to $1.2 billion or 0.07% for the same period.
Non-performing assets decreased slightly to $37.8 million at June 30, 2010 compared to $41.5 million at March 31, 2010. Repossessed assets, consisting primarily of transportation assets, decreased by $3.6 million from March 31, 2010 to $36.3 million at June 30, 2010.
The loan loss provision of $4.5 million for the second quarter of 2010 exceeded the net charge-offs of $4.2 million, resulting in a ratio of loan loss provision to net charge-offs of 105.6%. The allowance for loan losses at June 30, 2010 was $20.3 million or 1.7% of total loans. The coverage ratio of allowance for loan losses to non-performing loans at June 30, 2010 was 59.6%.
Non-interest income was $894,000 for the second quarter of 2010 compared to approximately $687,000 for the linked first quarter and a loss of $1.6 million for the second quarter of 2009. This improvement was primarily attributable to increased fees associated with leveraged leases slightly offset by losses on repossessions and loan buybacks exceeding gains on loan sales.
Non-interest expenses increased to $6.7 million in the second quarter of 2010 compared to $6.4 million in the second quarter of 2009, representing a 5.11% increase. The increase was mainly attributable to increased costs associated with other real estate owned, repossessed assets and increased collection efforts of $1.2 million in the second quarter of 2010 compared to approximately $695,000 in the second quarter of 2009.
The efficiency ratio for the second quarter of 2010 was 47.1% compared to 71.8% in the second quarter of 2009 and continues to be among one of the best efficiency ratios in our peer group based on the Uniform Bank Performance Report as of March 31, 2010. The significant improvement in the efficiency ratio over the periods was mainly attributed to the $2.9 million increase in net interest income combined with a $2.5 million increase in non-interest income, while non-interest expenses only increased by approximately $326,000.
The holding company and the bank continue to exceed the well capitalized regulatory guidelines of 10.00% for total risk-based capital, 6.00% for Tier 1 capital, and 5.00% for Tier 1 leverage capital. At June 30, 2010, total risk-based capital was 10.99% for the holding company and 10.95% for the bank; Tier 1 capital was 9.73% for the holding company and 9.69% for the bank; and Tier 1 leverage capital was 8.96% for the holding company and 8.93% for the bank. Tangible common book value per share at the end of the quarter increased to $12.51 compared to $12.09 at March 31, 2010. The ratio of tangible common equity to tangible assets increased to 5.09% at June 30, 2010 up from 4.94% from March 31, 2010.
In conclusion, Mr. Sapp stated, "We were pleased with our second quarter results. Continued earnings improvement and managed growth have resulted in strengthening capital ratios. During the quarter our community came together to help the thousands of businesses and individuals that were impacted by the devastating floods. The response to these challenges is yet another example of the positive, can-do attitude that helps drive the spirit and economy of Middle Tennessee."
Second Quarter Conference Call
Tennessee Commerce will provide an online, real-time webcast and rebroadcast of its second quarter earnings conference call to be held at 10:00 a.m. Eastern on July 27, 2010. The live broadcast will be available online at http://www.tncommercebank.com under the Investor Relations tab.
An audio replay of the conference call will be available approximately two hours after the call's completion on our website at http://www.tncommercebank.com under the Investor Relations tab or by dialing one of the following Dial-In Numbers and the Conference ID shown below:
Encore Dial In #: (800) 642-1687
Encore Dial In #: (706) 645-9291
Conference ID number: 68528917
Web PIN: 7422
The recording will be available on our website from: 07/27/2010 to 07/27/2011
About Tennessee Commerce Bancorp, Inc.
Tennessee Commerce Bancorp, Inc. is the parent company of Tennessee Commerce Bank. The Company celebrated its tenth anniversary on January 14, 2010. The Bank provides a wide range of banking services and is primarily focused on business accounts. Its corporate and banking offices are located in Franklin, Tennessee, and it has loan production offices in Atlanta, Birmingham and Minneapolis. Tennessee Commerce Bancorp's stock is traded on the NASDAQ Global Market under the symbol TNCC.
Additional information concerning Tennessee Commerce can be accessed at www.tncommercebank.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about our regional economy and non-GAAP financial measures. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "expect," "outlook," "estimate," "continue," "predict," "project", "intend," "could" and "should," and other words of similar meaning. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to, the effects of future economic, business and market conditions and changes, domestic and foreign, that may affect general economic conditions, governmental monetary and fiscal policies, negative developments in the financial services industry and U.S. and global credit markets, fluctuations in interest rates, changes in accounting policies, rules and practices, other matters discussed in this press release and other factors identified in the Company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date of this press release, and Tennessee Commerce undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release. Tennessee Commerce is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.
|
TENNESSEE COMMERCE BANCORP, INC. CONSOLIDATED BALANCE SHEETS JUNE 30, 2010 (UNAUDITED) AND DECEMBER 31, 2009 |
||
| (Dollars in thousands, except share data) |
June 30, 2010 |
December 31, 2009 (1) |
| ASSETS | ||
| Cash and due from banks | $9,277 | $22,864 |
| Federal funds sold | 11,610 | 15,010 |
| Cash and cash equivalents | 20,887 | 37,874 |
| Securities available for sale | 92,887 | 93,668 |
| Loans | 1,197,059 | 1,171,301 |
| Allowance for loan losses | (20,346) | (19,913) |
| Net loans | 1,176,713 | 1,151,388 |
| Premises and equipment, net | 2,482 | 1,967 |
| Accrued interest receivable | 8,545 | 9,711 |
| Restricted equity securities | 2,169 | 2,169 |
| Income tax receivable | -- | 68 |
| Bank-owned life insurance | 27,571 | 25,673 |
| Other real estate owned | 795 | 814 |
| Reposessions | 36,336 | 36,951 |
| Other assets | 21,143 | 23,149 |
| Total assets | $1,389,528 | $1,383,432 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||
| Liabilities | ||
| Deposits | ||
| Non-interest-bearing | $24,553 | $30,111 |
| Interest-bearing | 1,218,903 | 1,212,431 |
| Total deposits | 1,243,456 | 1,242,542 |
| Accrued interest payable | 1,390 | 1,430 |
| Accrued dividend payable | 187 | 187 |
| Short-term borrowings | 8,750 | 14,000 |
| Other liabilities | 8,863 | 5,783 |
| Long-term subordinated debt and other borrowings | 26,100 | 23,198 |
| Total liabilities | 1,288,746 | 1,287,140 |
| Shareholders equity | ||
| Preferred stock, 1,000,000 shares authorized; 30,000 shares of $0.50 par value Fixed Rate Cumulative Perpetual, Series A issued and outstanding at June 30, 2010 and December 31, 2009 | 15,000 | 15,000 |
| Common stock, $0.50 par value; 20,000,000 shares authorized at June 30, 2010 and at December 31, 2009; 5,648,384 and 5,646,368 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively | 2,824 | 2,823 |
| Common stock warrant | 453 | 453 |
| Additional paid-in capital | 63,507 | 63,247 |
| Retained earnings | 18,921 | 16,056 |
| Accumulated other comprehensive (loss) income | 77 | (1,287) |
| Total shareholders equity | 100,782 | 96,292 |
| Total liabilities and shareholders equity | $1,389,528 | $1,383,432 |
(1) The balance sheet at December 31, 2009 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements.
|
TENNESSEE COMMERCE BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2010 AND 2009 (UNAUDITED) |
||||
| Six Months Ended June 30, | Three Months Ended June 30, | |||
| (Dollars in thousands except share data) | 2010 | 2009 | 2010 | 2009 |
| Interest income | ||||
| Loans, including fees | $39,104 | $36,570 | $19,840 | $18,674 |
| Securities | 2,003 | 2,788 | 766 | 1,233 |
| Federal funds sold | 13 | 5 | 11 | -- |
| Total interest income | 41,120 | 39,363 | 20,617 | 19,907 |
| Interest expense | ||||
| Deposits | 13,495 | 18,083 | 6,774 | 8,954 |
| Other | 1,033 | 989 | 500 | 502 |
| Total interest expense | 14,528 | 19,072 | 7,274 | 9,456 |
| Net interest income | 26,592 | 20,291 | 13,343 | 10,451 |
| Provision for loan losses | 9,050 | 21,639 | 4,450 | 13,125 |
| Net interest income (loss) after provision for | 17,542 | (1,348) | 8,893 | (2,674) |
| loan losses | ||||
| Non-interest income | ||||
| Service charges on deposit accounts | 60 | 91 | 33 | 48 |
| Securities gains (losses) | 696 | 338 | 277 | (80) |
| Gain (loss) on sale of loans | 530 | (989) | 741 | (629) |
| Loss on repossession | (2,008) | (1,368) | (1,133) | (1,157) |
| Other | 2,303 | 394 | 976 | 257 |
| Total non-interest income (loss) | 1,581 | (1,534) | 894 | (1,561) |
| Non-interest expense | ||||
| Salaries and employee benefits | 5,376 | 5,340 | 2,661 | 2,991 |
| Occupancy and equipment | 923 | 792 | 446 | 382 |
| Data processing fees | 1,007 | 699 | 473 | 395 |
| FDIC expense | 1,061 | 1,151 | 515 | 674 |
| Professional fees | 1,074 | 988 | 523 | 598 |
| Other | 3,779 | 2,348 | 2,093 | 1,345 |
| Total non-interest expense | 13,220 | 11,318 | 6,711 | 6,385 |
| Income (loss) before income taxes | 5,903 | (14,200) | 3,076 | (10,620) |
| Income tax expense (benefit) | 2,288 | (5,435) | 1,190 | (4,071) |
| Net income (loss) | 3,615 | (8,765) | 1,886 | (6,549) |
| Preferred dividends | (750) | (796) | (375) | (352) |
| Net income (loss) available to common shareholders | $2,865 | $(9,561) | $1,511 | $(6,901) |
| Earnings (loss) per share (EPS): | ||||
| Basic EPS | $0.51 | $(2.02) | $0.27 | $(1.46) |
| Diluted EPS | 0.50 | (2.02) | 0.26 | (1.46) |
| Weighted average shares outstanding: | ||||
| Basic | 5,647,884 | 4,732,387 | 5,648,384 | 4,733,070 |
| Diluted | 5,718,903 | 4,732,387 | 5,737,048 | 4,733,070 |
| Tennessee Commerce Bancorp, Inc | |||
| Financial Highlights | |||
| (Dollars in thousands except ratios and share data) | |||
| 2010 | 2009 | % Change | |
| For the Quarter Ending June 30, | |||
| Earnings: | |||
| Net Interest Income | $13,343 | $10,451 | 27.67% |
| Non-Interest Income | 894 | (1,561) | 157.27% |
| Provision for Loan Losses | 4,450 | 13,125 | -66.10% |
| Operating Expense | 6,711 | 6,385 | 5.11% |
| Operating Income (loss) | 3,076 | (10,620) | 128.96% |
| Applicable Tax | 1,190 | (4,071) | 129.23% |
| Net Income (loss) | 1,886 | (6,549) | 128.80% |
| Preferred Dividends | 375 | 352 | 6.53% |
| Net Income (loss) Available to Common Shareholders | $1,511 | $(6,901) | 121.90% |
| At June 30 | |||
| Total Assets | $1,389,528 | $1,339,539 | 3.73% |
| Net Loans | 1,176,713 | 1,128,181 | 4.30% |
| Earning Assets | 1,281,210 | 1,235,285 | 3.72% |
| Allowance for Loan Losses | 20,346 | 18,938 | 7.43% |
| Deposits | 1,243,456 | 1,203,681 | 3.30% |
| Shareholders' Equity | $100,782 | $90,726 | 11.08% |
| Total Shares Outstanding | 5,648,384 | 4,733,712 | 19.32% |
| Key Ratios | |||
| Net Interest Margin | 4.25% | 3.45% | 23.19% |
| Return on Average Assets | 0.44% | -2.13% | 120.66% |
| Return on Average Common Equity | 8.67% | -42.51% | 120.40% |
| Efficiency Ratio | 47.14% | 71.82% | 34.36% |
| Loan Loss Reserve/Loans | 1.70% | 1.65% | 3.03% |
| Capital/Assets | 7.25% | 6.77% | 7.09% |
| Basic Earnings per Share | $0.27 | $(1.46) | 118.49% |
| Diluted Earnings per Share | $0.26 | $(1.46) | 117.81% |
| TENNESSEE COMMERCE BANCORP, INC. | |||||
| LOAN DATA | |||||
| (Dollars in thousands) | |||||
| 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | |
| LOAN BALANCES BY TYPE: | |||||
| Commercial and Industrial | $652,149 | $651,382 | $649,475 | $637,016 | $639,287 |
| Consumer | 3,636 | 3,581 | 3,476 | 3,421 | 3,827 |
| Real Estate: | |||||
| Construction | 131,187 | 135,416 | 142,109 | 206,512 | 216,208 |
| 1-4 Family | 43,591 | 44,339 | 42,425 | 40,033 | 37,988 |
| Other | 268,743 | 268,119 | 259,220 | 198,653 | 175,510 |
| Total Real Estate | 443,521 | 447,874 | 443,754 | 445,198 | 429,706 |
| Tax leases | 97,753 | 83,334 | 74,596 | 74,070 | 74,299 |
| Total | $1,197,059 | $1,186,171 | $1,171,301 | $1,159,705 | $1,147,119 |
| ASSET QUALITY DATA: | |||||
| Total Assets | $1,389,528 | $1,382,851 | $1,383,432 | $1,335,751 | $1,339,539 |
| Nonaccrual Loans | 34,041 | 34,792 | 19,151 | 28,854 | 23,332 |
| Troubled Debt | 99 | 104 | 111 | 114 | 121 |
| Total Non-Performing Loans (1) | 34,140 | 34,896 | 19,262 | 28,968 | 23,453 |
| Loans 90+ Days Past Due | 2,943 | 6,232 | 1,328 | 1,332 | 2,240 |
| Repossessions | 36,336 | 39,993 | 36,951 | 27,448 | 22,775 |
| Other Real Estate Owned | 795 | 480 | 814 | 1,254 | 5,635 |
| Total Non-Performing Assets (2) | 37,779 | 41,504 | 21,293 | 31,440 | 31,207 |
| Total Non-Performing Assets (Adj) (3) | $74,115 | $81,497 | $58,244 | $58,888 | $53,982 |
| Non-Performing Loans to Total Loans | 2.9% | 2.9% | 1.6% | 2.5% | 2.0% |
| Non-Performing Assets to Total Loans | 3.2% | 3.5% | 1.8% | 2.7% | 2.7% |
| Non-Performing Assets to Total Assets | 2.7% | 3.0% | 1.5% | 2.4% | 2.3% |
| Non-Performing Assets (Adj) to Total Assets | 5.3% | 5.9% | 4.2% | 4.4% | 4.0% |
| Allowance for Loan Losses to Non-Performing Loans | 59.6% | 57.6% | 103.4% | 68.0% | 80.8% |
| Allowance for Loan Losses to Total Loans | 1.7% | 1.7% | 1.7% | 1.7% | 1.7% |
| Loans 30-89 Days Past Due to Total Loans (loans not included in non-performing loans) | 2.2% | 4.5% | 4.5% | 3.0% | 3.3% |
| Net Charge-offs to Average Gross Loans | 0.4% | 0.4% | 0.3% | 0.4% | 0.8% |
| NET CHARGE-OFFS FOR QUARTER | $4,214 | $4,403 | $3,927 | $4,498 | $9,611 |
| (1) Non-Performing Loans are comprised of Nonaccrual Loans and Troubled Debt | |||||
| (2) Non-Performing Assets are comprised of Non-Accruals + 90 Days Past Due + ORE | |||||
| (3) Non-Performing Assets (Adjusted) are comprised of Non-Accruals + 90 Days Past Due + ORE + REPOs (consolidated) | |||||
| TENNESSEE COMMERCE BANCORP, INC. | |||||
| FINANCIAL HIGHLIGHTS | |||||
| (Dollars in thousands, except per share amounts) | |||||
| At or for the Three Months Ended | |||||
| Jun-10 | Mar-10 | Dec-09 | Sep-09 | Jun-09 | |
| Total Assets | $ 1,389,528 | $ 1,382,851 | $ 1,383,432 | $ 1,335,751 | $ 1,339,539 |
| Total Net Loans | 1,176,713 | 1,166,061 | 1,151,388 | 1,140,015 | 1,128,181 |
| Total Deposits | 1,243,456 | 1,239,835 | 1,242,542 | 1,202,285 | 1,203,681 |
| Reserves/ Loans (%) | 1.70% | 1.70% | 1.70% | 1.70% | 1.65% |
| Total Equity | 100,782 | 98,407 | 96,292 | 92,772 | 90,726 |
| Common Equity | 70,651 | 68,300 | 66,207 | 62,710 | 60,688 |
| Net Interest Income | 13,343 | 13,249 | 13,201 | 11,424 | 10,451 |
| Operating Revenue | 14,237 | 13,936 | 11,825 | 12,777 | 8,890 |
| Net Income (Loss) Available to Common Shareholders | 1,511 | 1,354 | 1,276 | 1,161 | (6,901) |
| Diluted Earnings (Loss) Per Share | $ 0.26 | $ 0.24 | $ 0.27 | $ 0.25 | $ (1.46) |
| Return on Average Assets | 0.44% | 0.40% | 0.38% | 0.34% | -2.13% |
| Return on Average Common Equity | 8.67% | 8.13% | 7.94% | 7.46% | -42.51% |
| Net Interest Margin | 4.25% | 4.25% | 4.18% | 3.61% | 3.45% |
| Total Capital / Total Assets | 7.25% | 7.12% | 6.96% | 6.95% | 6.77% |
| Total Capital Ratio - Bank | 10.95% | 10.72% | 10.63% | 10.68% | 10.53% |
| Total Capital Ratio - Corporation | 10.99% | 10.82% | 10.83% | 10.62% | 10.49% |
| Pre-tax, Pre-Provision Income | 7,526 | 7,427 | 6,857 | 7,758 | 2,505 |
| Net Income (loss) | 1,886 | 1,729 | 1,651 | 1,536 | (6,549) |
| Net Income Available to Common Shareholders | 1,511 | 1,354 | 1,276 | 1,161 | (6,901) |
| Average assets | 1,375,357 | 1,371,526 | 1,344,253 | 1,343,276 | 1,301,538 |
| Average Common Equity | 69,903 | 67,526 | 63,718 | 61,754 | 65,114 |
| (Dollars in thousands) | ||||||
| Three months ended June 30, | Three months ended June 30, | |||||
| ASSETS | 2010 | 2009 | ||||
| Average | Average | Average | Average | |||
| Balance | Interest | Rate | Balance | Interest | Rate | |
| Interest Earning Assets | ||||||
| Securities - taxable | $ 69,766 | $ 766 | 4.39% | $ 96,410 | $ 1,233 | 5.11% |
| Loans | 1,169,762 | 19,840 | 6.80% | 1,117,841 | 18,674 | 6.70% |
| Fed funds sold | 18,933 | 11 | 0.23% | 1,420 | -- | 0.00% |
| Interest-bearing accounts | 1,258,461 | 20,617 | 6.57% | 1,215,671 | 19,907 | 6.57% |
| Non-interest earning assets | ||||||
| Cash and due from banks | 16,136 | 11,210 | ||||
| Net fixed assets and equipment | 2,146 | 2,208 | ||||
| Accrued interest and other assets | 98,614 | 72,449 | ||||
| Total assets | $ 1,375,357 | $ 1,301,538 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Interest Earning Liabilities | ||||||
| Deposits (other than demand) | $ 1,199,311 | $ 6,774 | 2.27% | $ 1,115,266 | $ 8,954 | 3.22% |
| Fed funds purchased & FHLB Advances | 105 | -- | 0.00% | 25,254 | 32 | 0.51% |
| Subordinated Debt and other borrowings | 35,030 | 500 | 5.73% | 33,198 | 470 | 5.68% |
| 1,234,446 | 7,274 | 2.36% | 1,173,718 | 9,456 | 3.23% | |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing demand deposits | 22,897 | 24,398 | ||||
| Other liabilities | 18,443 | 8,747 | ||||
| Shareholders' equity | 99,571 | 94,675 | ||||
| Total Liabilities and Shareholders' Equity | $ 1,375,357 | $ 1,301,538 | ||||
| Net Interest/Spread | 4.21% | 3.34% | ||||
| Net Interest Margin | 4.25% | 3.45% | ||||
| (Dollars in thousands) | ||||||
| Six months ended June 30, | Six months ended June 30, | |||||
| ASSETS | 2010 | 2009 | ||||
| Average | Average | Average | Average | |||
| Balance | Interest | Rate | Balance | Interest | Rate | |
| Interest Earning Assets | ||||||
| Securities - taxable | $ 84,940 | $ 2,003 | 4.71% | $ 105,214 | $ 2,788 | 5.33% |
| Loans | 1,163,888 | 39,104 | 6.78% | 1,085,140 | 36,570 | 6.80% |
| Fed funds sold | 11,329 | 13 | 0.23% | 5,770 | 5 | 0.17% |
| Interest-bearing accounts | 1,260,157 | 41,120 | 6.58% | 1,196,124 | 39,363 | 6.63% |
| Non-interest earning assets | ||||||
| Cash and due from banks | 12,380 | 8,606 | ||||
| Net fixed assets and equipment | 2,057 | 2,249 | ||||
| Accrued interest and other assets | 98,859 | 63,056 | ||||
| Total assets | $ 1,373,453 | $ 1,270,035 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Interest Earning Liabilities | ||||||
| Deposits (other than demand) | $ 1,204,675 | $ 13,495 | 2.26% | $ 1,085,115 | $ 18,083 | 3.36% |
| Fed funds purchased & FHLB Advances | 2,022 | 8 | 0.80% | 22,805 | 67 | 0.59% |
| Subordinated Debt and other borrowings | 35,595 | 1,025 | 5.81% | 33,198 | 922 | 5.60% |
| 1,242,292 | 14,528 | 2.36% | 1,141,118 | 19,072 | 3.37% | |
| Non-interest bearing liabilities | ||||||
| Non-interest bearing demand deposits | 22,977 | 23,079 | ||||
| Other liabilities | 9,819 | 8,445 | ||||
| Shareholder's equity | 98,365 | 97,393 | ||||
| Total Liabilities and Shareholders' Equity | $ 1,373,453 | $ 1,270,035 | ||||
| Net Interest Spread | 4.22% | 3.26% | ||||
| Net Interest Margin | 4.25% | 3.42% | ||||
GAAP Reconciliation and Management Explanation for Non-GAAP Financial Measures
Certain financial information included in this press release is determined by methods other than in accordance with GAAP, as follows:
- "Tangible common book value per share" is defined as total shareholders' equity, excluding preferred stock, net of discount, and common stock warrant, reduced by goodwill and other intangible assets, divided by total common shares outstanding. Management believes this measure is important to investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets.
- "Tangible common equity to tangible assets" is defined as total shareholders' equity, excluding preferred stock, net of discount, and common stock warrant, reduced by goodwill and other intangible assets, divided by the difference of total assets less goodwill and other intangible assets. Management believes this measure is important to investors who are interested in evaluating the adequacy of our capital levels.
- "Efficiency ratio" is defined as non-interest expense divided by the sum of net interest income and non-interest income. Management believes that this measure is important to investors who are interested in comparing the performance of our core business operations.
- "Pre-tax, pre-provision income" is defined as income before income taxes reduced by provision for loan losses. Management believes that pre-tax, pre-provision income is important to investors as it shows income trends without giving effect to loan loss provision.
You should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP measures used by other companies. The following tables present a reconciliation to provide a more detailed analysis of these non-GAAP performance measures:
| (Dollars in thousands) | ||
| 6/30/2010 | 3/31/2010 | |
| Shareholders' equity | $100,782 | $98,407 |
| Less: | ||
| Preferred stock, net of discount(1) | (29,678.00) | (29,654) |
| Common stock warrant | (453) | (453) |
| Goodwill and other intangible assets | — | — |
| Tangible common equity | $70,651 | $68,300 |
| Total common shares outstanding | 5,648,384 | 5,648,384 |
| Tangible common book value per share | $13 | $12 |
| Total assets | $1,389,528 | $1,382,851 |
| Less: | ||
| Goodwill and other intangible assets | — | — |
| Tangible assets | $1,389,528 | $1,382,851 |
| Tangible common equity to tangible assets | 5.08% | 4.94% |
| (1) Represents both the par value and additional paid-in capital with respect to the Series A Preferred Stock. | ||
| (Dollars in thousands) | ||
| Three Months Ended | ||
| June 30, | ||
| 2010 | 2009 | |
| Non-interest expense | $6,711 | $6,385 |
| Net interest income | 13,343 | 10,451 |
| Non-interest income | 894 | (1,561) |
| Net revenues | $14,237 | $8,890 |
| Efficiency ratio | 47.14% | 71.82% |
| (Dollars in thousands) | |||||
| Jun-10 | Mar-10 | Dec-09 | Sep-09 | Jun-09 | |
| Income (loss) before income taxes | $3,076 | $2,827 | $2,707 | $2,508 | $(10,620) |
| Provision for loan loss | 4,450 | 4,600 | 4,150 | 5,250 | 13,125 |
| Pre-tax pre-provision income | $7,526 | $7,427 | $6,857 | $7,758 | $2,505 |