Security Bank Corporation Announces Acquisition in North Metro Atlanta Market and Reports Record First Quarter Earnings21 April 2006
Security Bank Corporation (Nasdaq: SBKC) today announced its third acquisition in the northern metropolitan Atlanta market with the signing of a definitive agreement to acquire Homestead Bank, a community bank located in Suwanee, Georgia. Homestead Bank, with approximately $258.9 million in total assets, $214.8 million in deposits and $20.7 million in shareholders' equity as of March 31, 2006, operates one full service banking office in Gwinnett County.
Separately, Security Bank Corporation announced earnings and results of operations for the first quarter of 2006. All per share figures have been adjusted for the Company's two-for-one stock split on May 27, 2005.
Definitive Agreement Signed to Acquire Homestead Bank
Under the terms of the merger agreement with Homestead Bank, Security Bank will pay approximately $50 million to Homestead Bank's shareholders, based on the value of the consideration at the time of signing the definitive agreement. Security Bank will issue approximately 79% of the purchase price in common stock, and the remainder in cash to a significant shareholder. The transaction was unanimously approved by the boards of directors of both companies and is subject to regulatory approval, the approval of Homestead shareholders and other customary closing conditions. The acquisition is expected to be completed during the third quarter of 2006 and is expected to be accretive to Security Bank's earnings during the first full year of combined operations.
In a joint statement, Heyward Horton, President and Chief Executive Officer of Homestead, said, "We are enthusiastic about joining the Security Bank team of successful community banks. I'm confident we will continue providing superior service to our customers as part of Security Bank. Security Bank's success is the result of empowering people to make local decisions based on the unique needs of each market."
Rett Walker, President and Chief Executive Officer of Security Bank, said, "Homestead's management shares our passion for building shareholder value by providing superior banking service to the local community. Strategically, this expands our franchise in the Atlanta metropolitan area and when combined with our prior acquisitions in the northern metropolitan area of Atlanta, greatly enhances our position in three of the fastest growing markets in Georgia. This acquisition is consistent with our disciplined acquisition strategy of focused expansion into demographically attractive markets. It also meets our stated financial goals of anticipated earnings accretion within one year and the expectation of earning back tangible book value dilution within five years."
Announcement of First Quarter Earnings
Earnings Summary
Net income for the first quarter of 2006 increased 51% to a record $5.1 million, compared to $3.4 million in the first quarter of 2005. Diluted earnings per share were $0.35 versus $0.29 for the same quarter in 2005, an increase of 21%.
The Company's annualized returns on average equity and assets for the first quarter were 11.44% and 1.25%, respectively, compared to 12.82% and 1.28%, respectively, for the first quarter of 2005. The Company's return on average tangible equity for the first quarter of 2006 was 20.26% compared to 17.68% in the first quarter of 2005.
Rett Walker remarked on the Company's performance, "We are pleased with our first quarter results. We successfully completed the conversion of Rivoli Bancorp and the acquisition of Neighbors Bancshares and saw strong growth in our loan portfolio. In addition, our net interest margin held up well and we incurred minimal charge-offs during the quarter."
Security Bank Corporation's first quarter 2006 results reflect the completion of the Company's acquisition of SouthBank in May 2005, which now operates as Security Bank of North Metro, and the acquisition of Rivoli BanCorp, Inc. in December 2005, which operates as Security Bank of Bibb County. On April 10, 2006, the Company completed the acquisition of Neighbors Bancshares Inc., a community bank holding company for Neighbors Bank, located in Alpharetta, Georgia. Neighbors Bank had approximately $147.5 million in assets at March 31, 2006. For accounting purposes, the acquisition of Neighbors was effective as of March 31, 2006 and therefore the balances of Neighbors Bank are included in the Company's balance sheet data presented below. However, there was no impact on the Company's first quarter average balances or the Company's results of operations for the first quarter of 2006.
Balance Sheet
Loans, excluding loans held for resale, were $1.47 billion at March 31, 2006, up from $890.5 million at March 31, 2005, an increase of 65%. Excluding acquisitions, loans increased $150.3 million or 16.9% since March 31, 2005. Total deposits were $1.53 billion at March 31, 2006, an increase of 69% from $907.1 million. Excluding acquisitions, deposits increased $206.7 million or 23% since March 31, 2005. Total assets increased 71% to $1.91 billion at March 31, 2006, compared to $1.12 billion at March 31, 2005. Excluding acquisitions, total assets increased $205.5 million or 18.4%, compared to March 31, 2005.
Shareholders' equity increased $106.7 million to $217.6 million, an increase of 96% compared to March 31, 2005. The primary reasons for the increase were the acquisitions of SouthBank, Rivoli Bancorp and Neighbors Bancshares, which contributed approximately $89.2 million of the increase along with the increase in earnings, net of dividends paid, which contributed the remainder.
Net Interest Income
Net interest income (on a fully tax equivalent basis) for the first quarter of 2006 was $16.8 million, an increase of 51% when compared to the first quarter of 2005. The increase is primarily the result of the continued growth in the Company's loan portfolio. The net interest margin on a fully tax-equivalent basis was 4.54% for the quarter ended March 31, 2006, compared to 4.50% for the comparable period one year ago and 4.53% for the fourth quarter of 2005.
Noninterest Income and Expense
Noninterest income for the first quarter of 2006 was $4.9 million versus $3.5 million for the first quarter of 2005, an increase of 40%. The change is attributable to an increase in service charges on deposits of approximately $507,000 resulting from the significant increase in core deposits during the period. The increase is also attributable to an increase in the recognized portion of construction loan origination fees in the first quarter of 2005.
Noninterest expense for the first quarter of 2006 was $12.8 million, an increase of 52% over the first quarter 2005's level of $8.5 million. The increase is primarily attributable to a $2.8 million increase in salaries and benefits, which is the direct result of the Company's significant growth through acquisitions completed since the first quarter of 2005. The increase is also related to occupancy and equipment, which increased approximately $462,000 due to the addition of numerous properties in connection with acquisitions since the first quarter of 2005. The Company's efficiency ratio was 59.3% for the first quarter of 2006 compared to 57.9% for the first quarter of 2005.
Asset Quality
Total nonperforming assets (nonaccrual, repossessed assets and other real estate owned) were 0.72% of total loans plus other real estate owned when compared to 0.75% and 0.74% at the end of the first and fourth quarters, respectively, of 2005. Net charge-offs to average loans decreased to 0.06% for the first quarter of 2006 from 0.15% in the first quarter of 2005. The allowance for loan losses was $17.8 million at March 31, 2006, up from $11.4 million at March 31, 2005. The increase in the allowance is primarily attributable to growth in the Company's loan portfolio and the addition of $4.9 million of loss reserves in connection with the previously noted acquisitions.
Other Information
Security Bank Corporation's management team will host a conference call to discuss these results at 8:30 AM EDT on Thursday, April 20, 2006. 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 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 20, 2006 until 11:59 PM EDT Friday, April 28, 2006. The reservation numbers for this playback are Account #286 and Conference ID # 146953.
Security Bank Corporation will file a registration statement, including a proxy statement addressed to the shareholders of Homestead Bank and a prospectus for the Security Bank Corporation stock to be offered in the proposed merger with Homestead Bank, with the SEC. A definitive proxy statement will be sent to Homestead Bank's shareholders seeking their approval of the proposed merger. Investors and shareholders are urged to read the registration statement carefully when it becomes available, because it will contain important information about the proposed merger. Investors and shareholders may obtain a free copy of the registration statement, when it becomes available, and other documents filed with, or furnished to, the SEC by the Company at the SEC's website at http://www.sec.gov. Copies of the registration statement and other documents filed by the Company with the SEC may also be obtained for free from the Company by directing a written request to Security Bank Corporation, 4219 Forsyth Road, Macon, Georgia 31210; attn: Chief Financial Officer. Additional details about the definitive agreement are posted at Security Bank's web site at http://www.securitybank.net. Select Investor Info/Presentations.
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" and "return on average tangible equity." 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. 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 that 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) divided by average equity reduced by average goodwill and other intangible assets. 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. These disclosures should not be viewed as a substitute for 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
Security Bank Corporation is a Georgia multi-bank holding company based in Macon, Bibb County, Georgia. The Company's wholly-owned bank subsidiaries are Security Bank of Bibb County, Security Bank of Houston County, Security Bank of Jones County, Security Bank of North Metro and Neighbors Bank. The banks maintain 15 full service offices in Central Georgia (Macon, Perry, Warner Robins, and Gray), two full service offices in Coastal Georgia (Brunswick and St. Simons Island), one full service office in Griffin, Georgia and two full service offices in North Metro Atlanta (Woodstock and Alpharetta) as well as loan production offices in Hiram, Cumming and Oconee County, Georgia. In addition, Security Bank of Bibb County operates a wholly-owned mortgage subsidiary; Fairfield Financial Services, Inc. Fairfield has offices in Macon, Warner Robins, Columbus, Richmond Hill, Gray, Pooler, Woodstock, St. Simons Island and Brunswick.
Safe Harbor
This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to Security Bank Corporation's filings with the Securities and Exchange Commission for a summary of important factors that could affect Security Bank Corporation's forward-looking statements. Security Bank Corporation does not intend to and assumes no responsibility for updating or revising any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.
Security Bank Corporation
Selected Consolidated Financial Data
(Dollars in Thousands, except Per Share Amounts)
Unaudited
Quarters Ended
March 31,
2006 2005 % Change
EARNINGS SUMMARY:
Net interest income (FTE) $16,814 $11,110 51.3%
Provision for Loan Losses 630 775 -18.7%
Noninterest Income 4,917 3,514 39.9%
Noninterest Expense 12,881 8,463 52.2%
Provision for Income Taxes 2,979 1,897 57.0%
Net Income 5,140 3,407 50.9%
PER COMMON SHARE:
Basic earnings $0.36 $0.29 24.1%
Diluted earnings 0.35 0.29 20.7%
Cash dividends declared 0.075 0.065 15.4%
Book value 13.79 9.44 46.1%
Tangible book value 7.08 6.69 5.8%
KEY PERFORMANCE RATIOS (a):
Return on average equity 11.44% 12.82%
Return on average assets 1.25% 1.28%
Efficiency ratio 59.27% 57.87%
Net interest margin (FTE) 4.54% 4.50%
Net charge-offs to average loans 0.06% 0.15%
BALANCE SHEET SUMMARY - END OF PERIOD
Investment securities $146,932 $112,703 30.4%
Loans Held for Resale 7,776 6,384 21.8%
Loans, gross 1,469,692 890,491 65.0%
Allowance for loan losses 17,812 11,357 56.8%
Total assets 1,912,841 1,116,123 71.4%
Deposits 1,530,384 907,074 68.7%
Other borrowed money 143,936 90,176 59.6%
Stockholders' equity 217,641 110,968 96.1%
ASSET QUALITY - END OF PERIOD
Nonaccrual loans $8,171 $5,761 41.8%
Loans 90 Days Past Due and Accruing - - 0.0%
Other real estate owned 2,488 938 165.2%
Total nonperforming assets 10,659 6,699 59.1%
Allowance for loan losses/NPA's 167.11% 169.53% -1.4%
Allowance for loan losses/loans 1.21% 1.28% -5.5%
(a) Annualized based on number of days in the period, except efficiency
ratio
Security Bank Corporation
Average Balance Sheet and Net Interest Income Analysis
(Dollars in Thousands)
Unaudited
Quarter Ended
March 31, 2006
Average Income/ Yield/
Balance Expense Rate
ASSETS
Earning assets:
Interest-bearing deposits and fed
funds sold $19,386 $220 4.60%
Investment securities 142,473 1,608 4.58%
Loans Held for Resale 5,200 86 6.71%
Loans 1,334,789 26,949 8.19%
Other earning assets 1,238 21 6.88%
Total earning assets 1,503,086 28,884 7.79%
Non-earning assets 169,920
Total assets $1,673,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings and interest-bearing
transaction $388,549 $2,448 2.56%
Time deposits 771,349 7,482 3.93%
Other borrowings 161,348 2,140 5.38%
Total interest-bearing liabilities 1,321,246 12,070 3.70%
Noninterest-bearing liabilities:
Noninterest bearing deposits 155,181
Other noninterest-bearing liabilities 14,360
Total liabilities 1,490,787
Stockholders' Equity 182,219
Total liabilities and stockholders'
equity $1,673,006
Interest rate spread 4.09%
Net interest income $16,814
Net interest margin (FTE) 4.54%
Security Bank Corporation (SBKC)
Selected Financial Information
(Amounts in thousands, except per share data)
2006 2005
1st Quarter Dec. 31/YTD
Period-End Balance Sheet
Total Assets $1,912,841 $1,662,413
Total Securities 146,932 150,986
Mortgage Loans held for Sale 7,776 5,562
Loans:
Commercial:
Real-Estate 699,215 609,010
Construction 430,585 334,114
All Other 103,396 95,688
Residential:
Consumer Real-Estate 155,031 163,874
Consumer Construction 30,376 19,750
All Other Consumer 51,089 49,683
Total Loans 1,469,692 1,272,119
Allowance for loan losses 17,812 16,148
Other Assets:
Other earning assets: 78,567 41,330
Total Earning Assets: 1,702,967 1,469,997
Intangibles:
Goodwill 102,659 74,582
Core-Deposit 5,129 4,687
Deposits:
Demand Deposits 168,235 156,698
Interest bearing deposits 1,362,149 1,134,555
Total Deposits 1,530,384 1,291,253
Fed Funds purchased
& repo agreements 18,271 43,876
Other borrowed funds 125,665 128,265
Common Equity 217,641 179,305
Average Balance Sheet
Total Assets $1,673,006 $1,238,033
Total Securities 142,473 116,110
Mortgage Loans held for Sale 5,200 6,726
Loans:
Commercial:
Real-Estate 624,990 432,199
Construction 385,784 284,620
All Other 93,284 99,034
Residential:
Consumer Real-Estate 157,463 116,890
Consumer Construction 20,480 18,883
All Other Consumer 52,788 45,900
Total Loans 1,334,789 997,526
Other Assets:
Other earning assets: 20,624 16,840
Total Earning Assets: 1,503,086 1,137,202
Deposits:
Demand Deposits 155,181 119,867
Interest bearing deposits
Savings 21,036 19,969
NOW 240,033 158,264
Money Market 127,480 80,640
Time deposits > $100,000 445,970 317,143
Time deposits < $100,000 325,379 305,609
Total Deposits 1,315,079 1,001,492
Fed Funds purchased
& repo agreements 24,608 16,295
Other borrowed funds 136,740 83,754
Common Equity 182,219 126,461
Income Statement
Interest Income $28,783 $78,192
Interest Expense 12,070 27,839
Net Interest Income 16,713 50,353
Loan loss provision 630 2,833
Service charges on deposit accounts 2,104 7,351
Mortgage banking revenues 1,251 4,539
Other income 1,562 4,713
Total noninterest income 4,917 16,603
Salaries and benefits 7,762 22,811
Occupancy and equipment 1,296 3,785
Other noninterest expense 3,823 12,032
Total noninterest expense 12,881 38,628
Pre-tax earnings 8,119 25,495
Income Taxes 2,979 9,310
Net income $5,140 $16,185
Basic earnings per share (3) $0.36 $1.31
Diluted earnings per share (3) 0.35 1.27
End of period shares outstanding (3) 15,782,125 14,386,960
Weighted average diluted shares o/s (3) 14,784,856 12,736,544
Tax equivalent adjustment 101 323
Net interest income (FTE) 16,814 50,677
Effective Tax Rate 36.69% 36.52%
Stock and related per share data: (3)
Book value $13.79 $12.46
Tangible book value 7.08 7.08
Dividends declared per share 0.075 0.26
Other Key Ratios/Data:
Return on average equity (2) 11.44% 12.80%
Return on average assets (2) 1.25% 1.31%
Net interest margin (FTE) (2) 4.54% 4.46%
Efficiency ratio (FTE) 59.27% 57.42%
Tangible Equity/Tangible Assets 6.09% 6.32%
Loan Performance Data:
Nonaccrual loans $8,171 $6,997
Loans 90 Days Past Due and Accruing - -
Other real estate owned (ORE) 2,488 2,394
Total non performing assets 10,659 9,391
Net charge-offs 198 1,219
Allowance for loan losses/NPA's 167.11% 171.95%
Allowance for loan losses/loans 1.21% 1.27%
NPA's/Loans plus ORE 0.72% 0.74%
Nonperforming assets/total assets 0.56% 0.56%
Net charge-offs to average loans (1) 0.06% 0.12%
2005
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Period-End Balance Sheet
Total Assets $1,662,413 $1,345,566 $1,329,629 $1,116,123
Total Securities 150,986 121,374 122,763 112,703
Mortgage Loans held for Sale 5,562 9,372 7,413 6,384
Loans:
Commercial:
Real-Estate 609,010 418,020 423,720 412,779
Construction 334,114 316,701 309,270 232,629
All Other 95,688 137,879 126,290 69,983
Residential:
Consumer Real-Estate 163,874 118,679 116,119 115,168
Consumer Construction 19,750 19,371 20,041 17,835
All Other Consumer 49,683 53,420 46,285 42,097
Total Loans 1,272,119 1,064,070 1,041,725 890,491
Allowance for loan losses 16,148 13,628 13,264 11,357
Other Assets:
Other earning assets: 41,330 23,928 45,141 18,846
Total Earning Assets: 1,469,997 1,218,744 1,217,042 1,028,424
Intangibles:
Goodwill 74,582 49,677 50,507 31,852
Core-Deposit 4,687 1,498 1,580 542
Deposits:
Demand Deposits 156,698 137,295 121,600 115,241
Interest bearing deposits 1,134,555 949,084 952,487 791,833
Total Deposits 1,291,253 1,086,379 1,074,087 907,074
Fed Funds purchased
& repo agreements 43,876 10,052 5,714 12,469
Other borrowed funds 128,265 100,207 94,007 77,707
Common Equity 179,305 140,408 137,019 110,968
Average Balance Sheet
Total Assets $1,353,208 $1,326,590 $1,184,441 $1,082,503
Total Securities 117,857 123,002 115,694 107,674
Mortgage Loans held for Sale 6,754 8,769 6,132 5,167
Loans:
Commercial:
Real-Estate 472,728 423,215 420,250 412,048
Construction 331,779 319,456 270,505 215,265
All Other 102,402 134,147 87,386 71,513
Residential:
Consumer Real-Estate 119,560 117,944 115,347 114,644
Consumer Construction 19,189 19,539 18,662 18,125
All Other Consumer 45,985 50,465 44,783 42,483
Total Loans 1,091,643 1,064,766 956,933 874,078
Other Assets:
Other earning assets: 17,800 17,327 18,467 13,729
Total Earning Assets: 1,234,054 1,213,864 1,097,226 1,000,648
Deposits:
Demand Deposits 131,616 122,600 116,899 108,057
Interest bearing deposits
Savings 18,648 19,646 20,821 20,782
NOW 198,465 175,373 141,396 116,830
Money Market 78,800 83,961 81,233 78,542
Time deposits > $100,000 355,908 349,889 304,208 257,372
Time deposits < $100,000 312,576 324,000 298,644 286,742
Total Deposits 1,096,013 1,075,469 963,201 868,325
Fed Funds purchased
& repo agreements 19,704 12,224 15,899 17,256
Other borrowed funds 86,260 89,601 76,511 82,205
Common Equity 141,576 138,246 118,365 107,792
Income Statement
Interest Income $22,860 $21,444 $18,023 $15,865
Interest Expense 8,864 7,976 6,162 4,837
Net Interest Income 13,996 13,468 11,861 11,028
Loan loss provision 630 624 804 775
Service charges on deposit
accounts 1,940 1,956 1,858 1,597
Mortgage banking revenues 1,040 1,333 1,207 959
Other income 1,117 1,121 1,517 958
Total noninterest income 4,097 4,410 4,582 3,514
Salaries and benefits 6,044 6,115 5,598 5,054
Occupancy and equipment 1,048 985 906 846
Other noninterest expense 3,485 3,156 2,828 2,563
Total noninterest expense 10,577 10,256 9,332 8,463
Pre-tax earnings 6,886 6,998 6,307 5,304
Income Taxes 2,507 2,509 2,397 1,897
Net income $4,379 $4,489 $3,910 $3,407
Basic earnings per share (3) $0.34 $0.36 $0.32 $0.29
Diluted earnings per share (3) 0.33 0.33 0.32 0.29
End of period shares
outstanding (3) 14,386,960 12,911,550 12,851,640 11,755,982
Weighted average diluted
shares o/s (3) 13,316,163 13,218,030 12,374,075 11,970,224
Tax equivalent adjustment 81 79 81 82
Net interest income (FTE) 14,077 13,547 11,943 11,110
Effective Tax Rate 36.41% 35.85% 38.00% 35.77%
Stock and related per
share data: (3)
Book value $12.46 $10.87 $10.66 $9.44
Tangible book value 7.08 6.94 6.65 6.69
Dividends declared per share 0.065 0.065 0.065 0.065
Other Key Ratios/Data:
Return on average equity (2) 12.27% 12.88% 13.25% 12.82%
Return on average assets (2) 1.28% 1.34% 1.32% 1.28%
Net interest margin (FTE) (2) 4.53% 4.43% 4.37% 4.50%
Efficiency ratio (FTE) 58.20% 57.11% 56.47% 57.87%
Tangible Equity/Tangible
Assets 6.32% 6.89% 6.65% 7.25%
Loan Performance Data:
Nonaccrual loans $6,997 $5,746 $5,200 $5,761
Loans 90 Days Past Due and
Accruing - - 59 -
Other real estate owned (ORE) 2,394 1,722 1,467 938
Total non performing assets 9,391 7,468 6,726 6,699
Net charge-offs 321 260 317 321
Allowance for loan
losses/NPA's 171.95% 182.49% 197.20% 169.53%
Allowance for loan
losses/loans 1.27% 1.28% 1.27% 1.28%
NPA's/Loans plus ORE 0.74% 0.70% 0.64% 0.75%
Nonperforming assets/total
assets 0.56% 0.56% 0.51% 0.60%
Net charge-offs to average
loans (1) 0.12% 0.10% 0.13% 0.15%
2004
Dec. 31/YTD 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Period-End
Balance Sheet
Total Assets $1,063,485 $1,063,485 $1,012,647 $993,038 $936,848
Total Securities 111,412 111,412 115,325 107,067 96,026
Mortgage Loans
held for Sale 7,507 7,507 9,363 8,882 7,707
Loans:
Commercial:
Real-Estate 406,654 406,654 402,458 428,849 391,934
Construction 192,181 192,181 155,400 124,119 116,468
All Other 71,081 71,081 61,039 60,800 62,714
Residential:
Consumer
Real-Estate 115,470 115,470 115,503 110,820 113,318
Consumer
Construction 18,953 18,953 17,088 16,793 19,704
All Other
Consumer 41,426 41,426 40,833 40,328 36,676
Total Loans 845,765 845,765 792,321 781,709 740,814
Allowance for
loan losses 10,903 10,903 10,465 10,096 9,612
Other Assets:
Other earning
assets: 20,898 20,898 14,076 18,123 12,597
Total Earning
Assets: 985,582 985,582 931,085 915,781 857,144
Intangibles:
Goodwill 28,579 28,579 28,579 28,579 28,579
Core-Deposit 585 585 628 671 713
Deposits:
Demand Deposits 119,545 119,545 109,136 109,261 106,447
Interest bearing
deposits 723,013 723,013 682,066 683,783 654,889
Total Deposits 842,558 842,558 791,202 793,044 761,336
Fed Funds purchased
& repo agreements 21,811 21,811 20,972 9,108 7,375
Other borrowed
funds 85,693 85,693 89,840 84,003 81,857
Common Equity 106,671 106,671 104,154 100,448 80,593
Average Balance Sheet
Total Assets $972,091 $1,027,551 $994,605 $958,467 $907,742
Total Securities 103,896 113,085 105,948 95,970 100,582
Mortgage Loans
held for Sale 6,955 6,455 7,429 7,650 6,285
Loans:
Commercial:
Real-Estate 399,341 405,831 417,861 415,541 358,129
Construction 141,240 175,867 143,811 126,777 118,505
All Other 61,297 62,406 61,193 61,536 60,054
Residential:
Consumer
Real-Estate 114,399 115,952 112,151 112,235 117,266
Consumer
Construction 17,849 18,158 16,768 17,445 19,042
All Other
Consumer 41,148 42,564 41,914 39,716 40,369
Total Loans 775,274 820,778 793,698 773,250 713,365
Other Assets:
Other earning
assets: 10,457 9,061 10,208 8,550 14,008
Total Earning
Assets: 896,582 949,379 917,283 885,420 834,240
Deposits:
Demand Deposits 105,695 111,249 106,740 104,558 100,232
Interest bearing
deposits
Savings 19,299 19,620 20,029 19,585 17,963
NOW 81,385 93,356 78,070 80,406 73,708
Money Market 85,886 80,011 88,879 89,628 85,028
Time deposits >
$100,000 195,271 223,083 204,094 183,349 170,561
Time deposits <
$100,000 293,068 289,686 296,809 289,925 295,854
Total Deposits 780,604 817,005 794,621 767,451 743,346
Fed Funds purchased
& repo agreements 10,871 13,423 9,791 14,448 5,821
Other borrowed
funds 80,024 84,631 80,812 77,892 76,757
Common Equity 94,453 105,184 101,958 93,004 77,667
Income Statement
Interest Income $53,926 $14,717 $13,824 $13,057 $12,328
Interest Expense 14,373 4,135 3,669 3,294 3,275
Net Interest Income 39,553 10,582 10,155 9,763 9,053
Loan loss provision 2,819 852 529 718 720
Service charges on
deposit accounts 6,450 1,704 1,636 1,634 1,476
Mortgage banking
revenues 4,931 1,019 1,425 1,284 1,203
Other income 3,452 1,426 627 722 677
Total noninterest
income 14,833 4,149 3,688 3,640 3,356
Salaries and
benefits 18,629 4,916 4,759 4,621 4,333
Occupancy and
equipment 3,365 851 866 855 793
Other noninterest
expense 10,314 2,844 2,581 2,470 2,419
Total noninterest
expense 32,308 8,611 8,206 7,946 7,545
Pre-tax earnings 19,259 5,268 5,108 4,739 4,144
Income Taxes 6,940 1,851 1,898 1,729 1,462
Net income $12,319 $3,417 $3,210 $3,010 $2,682
Basic earnings
per share (3) $1.10 $0.29 $0.28 $0.27 $0.26
Diluted earnings
per share (3) 1.07 0.29 0.27 0.27 0.25
End of period
shares outstanding
(3) 11,639,810 11,639,810 11,625,170 11,622,984 10,270,584
Weighted average
diluted
shares o/s (3) 11,482,830 11,922,292 11,837,508 11,404,906 10,384,274
Tax equivalent
adjustment 359 89 91 94 92
Net interest
income (FTE) 39,912 10,671 10,246 9,857 9,145
Effective Tax Rate 36.04% 35.14% 37.16% 36.48% 35.28%
Stock and related per
share data: (3)
Book value $9.16 $9.16 $8.96 $8.64 $7.85
Tangible book value 6.68 6.68 6.46 6.14 5.01
Dividends declared per
share 0.22 0.055 0.055 0.055 0.055
Other Key Ratios/Data:
Return on average
equity (2) 13.04% 12.92% 12.52% 13.02% 13.89%
Return on average
assets (2) 1.27% 1.32% 1.28% 1.26% 1.19%
Net interest margin
(FTE) (2) 4.45% 4.47% 4.44% 4.48% 4.41%
Efficiency ratio
(FTE) 59.02% 58.10% 58.89% 58.87% 60.36%
Tangible Equity/
Tangible Assets 7.49% 7.49% 7.62% 7.39% 5.65%
Loan Performance Data:
Nonaccrual loans $6,214 $6,214 $5,909 $4,748 $3,807
Loans 90 Days Past
Due and Accruing - - - 23 236
Other real estate
owned (ORE) 1,991 1,991 1,857 1,923 1,853
Total non performing
assets 8,205 8,205 7,766 6,694 5,896
Net charge-offs 1,323 414 160 234 515
Allowance for loan
losses/NPA's 132.88% 132.88% 134.75% 150.82% 163.03%
Allowance for loan
losses/loans 1.29% 1.29% 1.32% 1.29% 1.30%
NPA's/Loans plus
ORE 0.97% 0.97% 0.98% 0.85% 0.79%
Nonperforming
assets/total assets 0.77% 0.77% 0.77% 0.67% 0.63%
Net charge-offs to
average loans (1) 0.17% 0.20% 0.08% 0.12% 0.29%
(1) Annualized
(2) The actual number of days in the period were used to annualize income
(3) Adjusted for 2-for-1 stock split effective May 27, 2005
2006 2005
1st Quarter Dec 31/YTD
Reconciliation Table
- GAAP to non-GAAP:
Book Value per share $13.79 $12.46
Effect of intangible assets per share (6.71) (5.38)
Tangible book value $7.08 $7.08
Equity $217,641 $179,305
Intangible assets 107,788 79,269
Tangible equity $109,853 $100,036
Assets $1,912,841 $1,662,413
Intangible assets 107,788 79,269
Tangible assets $1,805,053 $1,583,144
Equity/Assets 11.38% 10.79%
Effect of intangible assets -5.29% -4.47%
Tangible Equity/Tangible Assets 6.09% 6.32%
2005
4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter
Reconciliation Table
- GAAP to non-GAAP:
Book Value per share $12.46 $10.87 $10.66 $9.44
Effect of intangible
assets per share (5.38) (3.93) (4.01) (2.75)
Tangible book value $7.08 $6.94 $6.65 $6.69
Equity $179,305 $140,408 $137,019 $110,968
Intangible assets 79,269 51,175 52,087 32,394
Tangible equity $100,036 $89,233 $84,932 $78,574
Assets $1,662,413 $1,345,566 $1,329,629 $1,116,123
Intangible assets 79,269 51,175 52,087 32,394
Tangible assets $1,583,144 $1,294,391 $1,277,542 $1,083,729
Equity/Assets 10.79% 10.43% 10.31% 9.94%
Effect of intangible
assets -4.47% -3.54% -3.66% -2.69%
Tangible Equity/Tangible
Assets 6.32% 6.89% 6.65% 7.25%
2004
4th 3rd 2nd 1st
Dec 31/YTD Quarter Quarter Quarter Quarter
Reconciliation Table
- GAAP to non-GAAP:
Book Value per share $9.16 $9.16 $8.96 $8.64 $7.85
Effect of intangible
assets per share (2.48) (2.48) (2.50) (2.50) (2.84)
Tangible book value $6.68 $6.68 $6.46 $6.14 $5.01
Equity $106,671 $106,671 $104,154 $100,448 $80,593
Intangible assets 29,164 29,164 29,207 29,250 29,292
Tangible equity $77,507 $77,507 $74,947 $71,198 $51,301
Assets $1,063,485 $1,063,485 $1,012,647 $993,038 $936,848
Intangible assets 29,164 29,164 29,207 29,250 29,292
Tangible assets $1,034,321 $1,034,321 $983,440 $963,788 $907,556
Equity/Assets 10.03% 10.03% 10.29% 10.12% 8.60%
Effect of intangible
assets -2.54% -2.54% -2.67% -2.73% -2.95%
Tangible Equity/
Tangible Assets 7.49% 7.49% 7.62% 7.39% 5.65%
Source: prnewswire
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