CHATTANOOGA, Tenn., April 25, 2006 (PRIMEZONE) -- First Security Group, Inc. (Nasdaq:FSGI), a community bank holding company serving middle and eastern Tennessee and northern Georgia, today reported results for the first quarter of 2006.
-- Net income for the first quarter of 2006 was $2.5 million, an
increase of 123.7% over net income for the first quarter of 2005.
-- Diluted net income per share was $0.14 for the first quarter
of 2006, an increase of 55.6% over per share income in the
prior-year period. Per share results were impacted by the 37.4%
increase in average diluted shares as the result of a third
quarter 2005 public stock offering.
-- Total assets grew 33.1% over the last twelve months to
$1.1 billion, of which $77.6 million, or 9.7%, was organic.
-- Asset quality is strong and continues to improve, with annualized
net charge-offs reduced to 0.28% this quarter, and non-performing
assets plus delinquencies at 0.51% of total assets, down from 0.34%
and 0.56%, respectively, at year-end 2005.
-- Total revenue increased 32.6% over the prior year, to
$14.2 million.
Rodger B. Holley, Chairman, President and CEO of First Security, commented, "Our strong performance in the first quarter was driven by loan portfolio growth and an improving net interest margin, both of which contributed to our expanding revenue stream. We see revenue growth continuing into 2006 based on our hometown banking philosophy and broad range of financial products. We see numerous opportunities in our new Cookeville market, as well as in existing markets as we open additional de novo branches, and mature as a company."
Net income for the first quarter of 2006 was $2.5 million, an increase of 123.7 percent above the $1.1 million reported for the prior-year period. Diluted net income per share was $0.14 compared with $0.09 reported for the 2005 first quarter, an increase of 55.6 percent. Results reflect exceptional revenue growth from a combination of acquisition and organic loan growth, an expanding net interest margin, and growing fee income. Per share results also reflect the impact of First Security's stock offering of 4.9 million shares in the third quarter of 2005; average diluted shares for the first quarter of 2006 increased by 4,860,000, or 37.4 percent, above last year's first quarter.
Total revenue, comprised of net interest income and non-interest income, was $14.2 million for the first quarter of 2006, an increase of 32.6 percent over the $10.7 million reported for the first quarter of 2005. Net interest income increased 30.7 percent over the prior-year period, reaching $11.8 million; year-over-year growth reflects the combination of a 28.6 percent increase in average earning assets and an eight basis point improvement in the net interest margin to 5.27 percent. Compared with the previous quarter, the first quarter margin improved by 21 basis points, from 5.06 percent. Mr. Holley noted the Company's success at maintaining a strong, stable net interest margin, which has remained within a narrow 21 basis point band over the last five quarters.
Non-interest income for first quarter of 2006 was $2.4 million, a 42.7 percent increase above the $1.7 million earned in the first quarter of 2005. Of this $729,000 increase, Jackson Bank & Trust accounted for $325,000, primarily NSF fees. First Security accounted for the remaining $404,000 of fee income, an increase of 23.7 percent. The major contributors to First Security's organic growth were BOLI income (up $197,000), trust fees (up $57,000), and overdraft charges (up $53,000).
Non-interest expense for the first quarter was $10.0 million, an increase of $2.1 million, or 26.0 percent, over the $8.0 million incurred in the first quarter of 2005. The increase primarily reflects additional investment to support corporate growth and the inclusion of $1.1 million of Jackson Bank expenses. Excluding Jackson Bank, expenses rose $924,000 or 11.6 percent. Company-wide, salaries and benefits increased $1.0 million or 22.6 percent year over year; the largest contributor was the inclusion of Jackson Bank. FTE employees were 361 at quarter-end, 38 of which are with Jackson Bank. Excluding the 38 Jackson employees, First Security reduced its total workforce by three employees despite the opening of two de novo branches in the 2005 fourth quarter. The core efficiency ratio improved to 66.07 percent for the first quarter of 2006 compared with 71.31 percent for the prior-year period.
"One of our most important priorities is maintaining and continuing to improve asset quality," Mr. Holley noted, "and the results of our efforts have been impressive. All credit quality indicators are trending in the right direction, and I believe this will continue." Net charge-offs were $531,000, or 0.28 percent of average loans on an annualized basis, compared with $641,000, or 0.34 percent of average loans for the linked quarter, and $589,000, or 0.39 percent of average loans for the first quarter of 2005. Non-performing assets plus delinquencies declined to $5.4 million or 0.51 percent of total assets at March 31, 2006, compared with $5.8 million or 0.56 percent of total assets at December 31, 2005, and $6.8 million or 0.86 percent of total assets twelve months ago. Loan loss reserves were 1.32 percent of total loans at March 31, 2006.
Total assets were $1.1 billion at March 31, 2006, an increase of $264.2 million, or 33.1 percent, above year-earlier levels. Loan growth was $152.2 million, or 24.8 percent, over the twelve-month period, with Jackson Bank contributing approximately $104.3 million, or 68.5 percent, of this growth. On an organic basis, loan growth within FSGBank's franchise was $47.9 million, or 7.8 percent, year over year. The loan categories with the largest increases over the past twelve months were residential mortgage loans, up $65.7 million or 44.1 percent, to $214.8 million, most of which was acquired with Jackson Bank, and construction/land development loans, up $51.4 million or 58.1 percent, to $139.8 million, with the majority of the increase coming from the Knoxville market. Commercial real estate increased $16.9 million or 12.1 percent, to $157.1 million.
Since year-end 2005, loans grew $18.0 million or 2.4 percent (9.6 percent annualized), all of which was organic. Construction and land development accounted for $11.5 million of this growth, up 9.0 percent (36.0 percent annualized), while consumer loans, up $3.0 million or 4.4 percent (17.6 percent annualized), were another strong category; over 50% of the consumer loan increase was derived from private banking activities.
Deposits were $882.5 million at the end of first quarter, up $214.1 million, or 32.0 percent; Jackson Bank contributed approximately $140.2 million, or 65.5 percent, of total deposit growth. At March 31, 2006, core deposits (demand, savings, money market and retail time deposits) were $624.5 million, up 29.4 percent year over year. At period-end, they comprised 70.8 percent of total deposits compared with 72.2 percent of deposits twelve months ago. Since year-end 2005, deposits increased 2.4 percent (9.6 percent annualized), of which $8.7 million consisted of core deposits, which grew 1.4 percent (5.6 percent annualized). Brokered deposits, primarily used to match fund First Security's leasing portfolio, were $86.2 million, or 9.8 percent of the deposit portfolio.
Shareholders' equity at March 31, 2006 was $138.1 million, a twelve-month increase of $51.5 million, or 59.5 percent. The majority of this increase reflects $44.7 million in proceeds from the issuance of 4.9 million shares during the 2005 third quarter. Total shares outstanding at quarter-end were 17,574,000. First Security's tangible leverage ratio at quarter-end was 10.3 percent. Mr. Holley concluded, "We are off to a good start for the year, and our outlook for 2006 remains very positive. By growing our geographic and business franchise while producing greater operating earnings, we continue to build value for our shareholders."
Web Cast and Conference Call Information
First Security's executive management team will host a conference call and simultaneous web cast on Tuesday, April 25 at 3:00 PM Eastern Time to discuss first quarter results. The web cast can be accessed live on the Company's website, www.FSGBank.com, on the Corporate Information/Investor Relations page. A replay will be available approximately two hours after the live conference call ends, and will be archived on the Company's website for one month.
About First Security Group, Inc.
First Security Group, Inc. is a bank holding company headquartered in Chattanooga, TN with $1.1 billion in assets. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A. has 37 full-service banking offices along the interstate corridors of middle and eastern Tennessee and northern Georgia. In Dalton, GA, FSGBank operates six full-service banking offices under the name of Dalton Whitfield Bank and two offices under the name Primer Banco Seguro (PBS); PBS serves the region's rapidly growing Latino population. FSGBank also operates under the name of Jackson Bank & Trust along the I-40 corridor. FSGBank provides retail and commercial banking services, trust and investment management, mortgage banking, asset-based lending, financial planning, Internet banking (www.FSGBank.com ) and equipment leasing through its wholly-owned subsidiaries, Kenesaw Leasing, Inc. and J & S Leasing, Inc.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). First Security's management uses these "non-GAAP" measures in their analysis of First Security's performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities. These non-GAAP measures may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on First Security'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 First Security'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.
Forward-Looking Statements
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by First Security with the Securities and Exchange Commission. First Security undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
The First Security Group, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1833
First Security Group, Inc
Consolidated Financial Highlights
(Unaudited)
(Amounts in thousands, except per share amounts and
full-time equivalent employees)
--------------------------------------------------------------------
1st Quarter 4th Quarter 3rd Quarter
2006 2005 2005
----------- ----------- -----------
Earnings:
Net interest income $ 11,765 $ 11,609 $ 10,391
Provision for
loan losses $ 543 $ 243 $ 693
Non-interest income $ 2,436 $ 2,364 $ 2,388
Non-interest expense $ 10,039 $ 10,041 $ 9,154
Net income, before
extraordinary items $ 2,474 $ 2,472 $ 1,923
Extraordinary items,
net of tax $ -- $ (210) $ 2,385
Net income $ 2,474 $ 2,262 $ 4,308
Earnings - Normalized
Non-interest income,
adjusted (b) $ 2,436 $ 2,364 $ 2,388
Non-interest expense,
adjusted (b) $ 10,039 $ 9,845 $ 8,651
Net operating income,
net of tax (b) $ 2,474 $ 2,605 $ 2,265
Per Share Data:
Net income before
extraordinary items,
basic $ 0.14 $ 0.14 $ 0.13
Net income, basic $ 0.14 $ 0.13 $ 0.28
Net income before
extraordinary items,
diluted $ 0.14 $ 0.14 $ 0.12
Net income, diluted $ 0.14 $ 0.13 $ 0.28
Cash dividends declared $ 0.03 $ 0.03 $ --
Book value $ 7.86 $ 7.84 $ 7.84
Tangible book value $ 6.04 $ 6.00 $ 6.14
Per Share Data
- Normalized:
Net operating income,
basic (b) $ 0.14 $ 0.15 $ 0.15
Net operating income,
diluted (b) $ 0.14 $ 0.15 $ 0.14
Performance Ratios:
Return on average
assets (a) 0.95% 0.95% 0.84%
Return on average
equity (a) 7.11% 7.17% 6.76%
Return on average
tangible assets (a) 0.98% 0.98% 0.86%
Return on average
tangible equity (a) 9.21% 9.33% 8.20%
Net interest margin,
taxable equivalent 5.27% 5.06% 5.11%
Efficiency ratio (a) 70.69% 71.86% 71.63%
Non-interest income
to net interest
income and non-
interest income (a) 17.15% 16.92% 18.69%
Performance Ratios
- Normalized
Operating return on
average assets (b) 0.95% 1.00% 0.99%
Operating return on
average equity (b) 7.11% 7.55% 7.96%
Operating return on
average tangible
assets (b) 0.98% 1.03% 1.01%
Operating return on
average tangible
equity (b) 9.21% 9.83% 9.66%
Core efficiency
ratio (a)(c) 66.07% 62.35% 64.47%
Non-interest income,
adjusted to net
interest income and
non-interest income,
adjusted (b) 17.15% 16.92% 18.69%
Capital & Liquidity:
Total equity to
total assets 13.01% 13.30% 13.00%
Tangible equity to
tangible assets 10.30% 10.51% 10.47%
Total loans to
total deposits 86.87% 86.90% 86.91%
Asset Quality:
Net charge-offs $ 531 $ 641 $ 600
Net loans charged-off
to average loans,
annualized 0.28% 0.34% 0.36%
Non-accrual loans $ 1,119 $ 1,314 $ 1,114
Other real estate owned $ 2,110 $ 1,552 $ 1,394
Repossessed assets $ 1,251 $ 1,891 $ 2,037
Non-performing
assets (NPA) $ 4,480 $ 4,757 $ 4,545
NPA to total assets 0.42% 0.46% 0.43%
Loans 90 days past due $ 904 $ 1,042 $ 2,905
NPA + loans 90 days
past due to total
assets 0.51% 0.56% 0.70%
Allowance for loan
losses to total
loans 1.32% 1.35% 1.42%
Allowance for loan
losses to NPA 225.51% 212.76% 231.44%
Period End Balances:
Total loans $ 766,622 $ 748,659 $ 742,250
Intangible assets $ 32,026 $ 32,463 $ 30,026
Total assets $ 1,062,009 $ 1,040,692 $ 1,061,999
Deposits $ 882,492 $ 861,507 $ 854,076
Stockholders' equity $ 138,141 $ 138,389 $ 138,044
Common stock market
capitalization $ 194,193 $ 171,950 $ 171,610
Full-time equivalent
employees 361 358 361
Common shares
outstanding - basic 17,574 17,654 17,601
Common shares
outstanding - diluted 17,934 17,942 17,909
Average Balances:
Loans $ 753,872 $ 744,411 $ 668,040
Intangible assets $ 31,784 $ 31,946 $ 20,113
Total earning assets $ 924,752 $ 929,063 $ 821,480
Total assets $ 1,043,280 $ 1,044,501 $ 915,065
Deposits $ 860,499 $ 855,158 $ 748,603
Stockholders' equity $ 139,281 $ 137,964 $ 113,867
Shares outstanding,
basic 17,489 17,603 15,353
Shares outstanding,
diluted 17,852 17,908 15,661
2nd Quarter 1st Quarter
2005 2005
-------- --------
Earnings:
Net interest income $ 9,440 $ 9,001
Provision for loan losses $ 843 $ 1,143
Non-interest income $ 2,388 $ 1,707
Non-interest expense $ 8,212 $ 7,966
Net income, before extraordinary items $ 1,895 $ 1,106
Extraordinary items, net of tax $ -- $ --
Net income $ 1,895 $ 1,106
Earnings - Normalized
Non-interest income,
adjusted (b) $ 1,961 $ 1,707
Non-interest expense,
adjusted (b) $ 7,974 $ 7,966
Net operating income,
net of tax (b) $ 1,766 $ 1,106
Per Share Data:
Net income before extraordinary
items, basic $ 0.15 $ 0.09
Net income, basic $ 0.15 $ 0.09
Net income before extraordinary
items, diluted $ 0.15 $ 0.09
Net income, diluted $ 0.15 $ 0.09
Cash dividends declared $ -- $ --
Book value $ 7.01 $ 6.81
Tangible book value $ 5.83 $ 5.62
Per Share Data - Normalized:
Net operating income, basic (b) $ 0.14 $ 0.09
Net operating income, diluted (b) $ 0.14 $ 0.09
Performance Ratios:
Return on average assets (a) 0.93% 0.57%
Return on average equity (a) 8.57% 5.13%
Return on average tangible assets (a) 0.95% 0.58%
Return on average tangible equity (a) 10.32% 6.22%
Net interest margin, taxable equivalent 5.22% 5.19%
Efficiency ratio (a) 69.43% 74.39%
Non-interest income to net interest
income and non-interest income (a) 20.19% 15.94%
Performance Ratios - Normalized
Operating return on average assets (b) 0.87% 0.57%
Operating return on average equity (b) 7.99% 5.13%
Operating return on average
tangible assets (b) 0.89% 0.58%
Operating return on average
tangible equity (b) 9.62% 6.22%
Core efficiency ratio (a)(c) 68.60% 71.31%
Non-interest income, adjusted to net
interest income and non-interest
income, adjusted (b) 17.20% 15.94%
Capital & Liquidity:
Total equity to total assets 10.73% 10.86%
Tangible equity to tangible assets 9.10% 9.14%
Total loans to total deposits 88.13% 91.93%
Asset Quality:
Net charge-offs $ 544 $ 589
Net loans charged-off to average loans,
annualized 0.35% 0.39%
Non-accrual loans $ 1,226 $ 1,794
Other real estate owned $ 1,813 $ 1,547
Repossessed assets $ 2,716 $ 2,828
Non-performing assets (NPA) $ 5,755 $ 6,169
NPA to total assets 0.69% 0.77%
Loans 90 days past due $ 966 $ 666
NPA + loans 90 days past due to
total assets 0.81% 0.86%
Allowance for loan losses to total loans 1.47% 1.44%
Allowance for loan losses to NPA 159.25% 143.72%
Period End Balances:
Total loans $623,986 $614,417
Intangible assets $ 14,933 $ 15,093
Total assets $831,254 $797,772
Deposits $708,008 $668,361
Stockholders' equity $ 89,216 $ 86,621
Common stock market capitalization $117,790 $117,716
Full-time equivalent employees 319 326
Common shares outstanding - basic 12,734 12,726
Common shares outstanding - diluted 13,015 12,994
Average Balances:
Loans $620,185 $603,152
Intangible assets $ 15,019 $ 15,189
Total earning assets $737,664 $719,123
Total assets $813,172 $780,715
Deposits $693,037 $651,865
Stockholders' equity $ 88,459 $ 86,286
Shares outstanding, basic 12,733 12,722
Shares outstanding, diluted 13,014 12,992
(a) These ratios are calculated using net income, before
extraordinary items.
(b) These amounts and ratios are calculated using net operating
income (net of tax) which excludes extraordinary items as defined
by GAAP and certain non-recurring items. Since these items and
their impact on First Security's performance are difficult to
predict, management believes presentation 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 First Security's core business. Refer to the
following non-GAAP reconciliation table for a detail of the
non-recurring items.
(c) In accordance with SNL Financial practice, the core efficiency
ratio is calculated on a fully tax equivalent basis excluding
non-recurring items (see footnote (b) and non-GAAP reconciliation
table) and certain non-cash items, such as amortization of
intangibles, gains or losses on investment securities and gains,
losses and write-downs on foreclosed and repossessed properties.
First Security Group, Inc. and Subsidiary
Consolidated Income Statements
(Unaudited)
Three Months Ended
March 31,
-----------------
(in thousands, except per share amounts) 2006 2005
---------------------------------------------------------------------
INTEREST INCOME
Loans, including fees $15,619 $10,923
Debt Securities -taxable 1,277 774
Debt Securities -non-taxable 381 240
Other 145 51
-----------------
Total Interest Income 17,422 11,988
-----------------
INTEREST EXPENSE
Interest Bearing Demand Deposits 159 57
Savings Deposits and Money Market Accounts 644 428
Certificates of Deposit of $100 thousand or more 1,650 764
Certificates of Deposit of less than
$100 thousand 2,200 1,026
Brokered Certificates of Deposit 847 557
Other 157 155
-----------------
Total Interest Expense 5,657 2,987
-----------------
NET INTEREST INCOME 11,765 9,001
Provision for Loan Losses 543 1,143
-----------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 11,222 7,858
-----------------
NONINTEREST INCOME
Service Charges on Deposit Accounts 1,153 903
Gain (Loss) on Sales of Available-for-Sale
Securities, net -- --
Other 1,283 804
-----------------
Total Noninterest Income 2,436 1,707
-----------------
NONINTEREST EXPENSES
Salaries and Employee Benefits 5,607 4,575
Expense on Premises and Fixed Assets,
net of rental income 1,665 1,318
Other 2,767 2,073
-----------------
Total Noninterest Expenses 10,039 7,966
-----------------
INCOME BEFORE INCOME TAX PROVISION 3,619 1,599
Income Tax Provision 1,145 493
-----------------
NET INCOME $ 2,474 $ 1,106
=================
NET INCOME PER SHARE:
Net Income Per Share - Basic $ 0.14 $ 0.09
Net Income Per Share - Diluted $ 0.14 $ 0.09
First Security Group, Inc. and Subsidiary
Consolidated Balance Sheets
(in thousands, except share data)
March 31, December 31, March 31,
2006 2005 2005
(unaudited) (unaudited)
---------------------------------------------------------------------
ASSETS
Cash and Due from Banks $ 27,824 $ 23,917 $ 21,131
Federal Funds Sold and
Securities Purchased under
Agreements to Resell 16,800 17,835 --
---------- ---------- ----------
Cash and Cash Equivalents 44,624 41,752 21,131
---------- ---------- ----------
Interest-Bearing Deposits
in Banks 1,696 1,153 2,834
---------- ---------- ----------
Securities Available For Sale 157,425 155,993 108,127
---------- ---------- ----------
Loans Held for Sale 6,177 4,244 5,766
Loans 760,445 744,415 608,651
---------- ---------- ----------
Total Loans 766,622 748,659 614,417
Less: Allowance for Loan Losses 10,103 10,121 8,866
---------- ---------- ----------
756,519 738,538 605,551
---------- ---------- ----------
Premises and Equipment, net 31,543 31,604 25,977
---------- ---------- ----------
Goodwill 26,965 27,032 12,430
---------- ---------- ----------
Intangible Assets 5,061 5,431 2,663
---------- ---------- ----------
Other Assets 38,176 39,189 19,059
---------- ---------- ----------
TOTAL ASSETS $1,062,009 $1,040,692 $ 797,772
========== ========== ==========
LIABILITIES
Deposits
Noninterest - Bearing Demand $ 159,441 $ 153,278 $ 121,103
Interest - Bearing Demand 79,117 75,123 56,473
---------- ---------- ----------
238,558 228,401 177,576
---------- ---------- ----------
Savings and Money Market
Accounts 149,176 152,901 146,301
---------- ---------- ----------
Time Deposits:
Certificates of Deposit of
$100 thousand or more 171,733 156,134 111,179
Certificates of Deposit less
than $100 thousand 236,801 234,501 158,612
Brokered Certificates
of Deposit 86,224 89,570 74,693
---------- ---------- ----------
494,758 480,205 344,484
---------- ---------- ----------
Total Deposits 882,492 861,507 668,361
Federal Funds Purchased
and Securities Sold under
Agreements to Repurchase 19,483 16,894 28,279
Security Deposits 4,369 4,094 3,447
Other Borrowings 8,147 10,150 2,147
Other Liabilities 9,377 9,658 8,917
---------- ---------- ----------
Total Liabilities 923,868 902,303 711,151
---------- ---------- ----------
STOCKHOLDERS' EQUITY
Common stock - $.01 par value -
50,000,000 shares authorized;
17,573,707 issued as of March
31, 2006; 17,653,833 issued
as of December 31, 2005;
12,726,140 issued as of
March 31, 2005 122 122 88
Paid-In Surplus 121,832 122,545 78,096
Unallocated ESOP Shares (1,349) (91) --
Retained Earnings 19,425 17,392 9,368
Accumulated Other
Comprehensive Loss (1,889) (1,579) (931)
---------- ---------- ----------
Total Stockholders' Equity 138,141 138,389 86,621
---------- ---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,062,009 $1,040,692 $ 797,772
========== ========== ==========
Non-GAAP Reconciliation Table
(Amounts in thousands)
---------------------------------------------------------------------
1st 4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter Quarter
2006 2005 2005 2005 2005
------- ------- ------- ------- -------
Return on average
assets 0.95% 0.95% 0.84% 0.93% 0.57%
Effect of intangible
assets 0.03% 0.03% 0.02% 0.02% 0.01%
------- ------- ------- ------- -------
Return on average
tangible assets 0.98% 0.98% 0.86% 0.95% 0.58%
======= ======= ======= ======= =======
Return of average
equity 7.11% 7.17% 6.76% 8.57% 5.13%
Effect of intangible
assets 2.10% 2.16% 1.44% 1.75% 1.09%
------- ------- ------- ------- -------
Return on average
tangible equity 9.21% 9.33% 8.20% 10.32% 6.22%
======= ======= ======= ======= =======
Return on average
assets 0.95% 0.95% 0.84% 0.93% 0.57%
Effect of non-
recurring items -- 0.05% 0.15% -0.06% --
------- ------- ------- ------- -------
Operating return on
average assets 0.95% 1.00% 0.99% 0.87% 0.57%
Effect of average
intangible assets 0.03% 0.03% 0.02% 0.02% 0.01%
------- ------- ------- ------- -------
Operating return on
average tangible
assets 0.98% 1.03% 1.01% 0.89% 0.58%
======= ======= ======= ======= =======
Return on average
equity 7.11% 7.17% 6.76% 8.57% 5.13%
Effect of non-
recurring items -- 0.38% 1.20% -0.58% --
------- ------- ------- ------- -------
Operating return on
average equity 7.11% 7.55% 7.96% 7.99% 5.13%
Effect on average
intangible assets 2.10% 2.28% 1.70% 1.63% 1.09%
------- ------- ------- ------- -------
Operating return on
average tangible
equity 9.21% 9.83% 9.66% 9.62% 6.22%
======= ======= ======= ======= =======
Total equity to total
assets 13.01% 13.30% 13.00% 10.73% 10.86%
Effect of average
intangible assets -2.71% -2.79% -2.53% -1.63% -1.72%
------- ------- ------- ------- -------
Tangible equity to
tangible assets 10.30% 10.51% 10.47% 9.10% 9.14%
======= ======= ======= ======= =======
Efficiency ratio 70.69% 71.86% 71.63% 69.43% 74.39%
Effect of non-
recurring items 0.00% -1.37% -3.90% 0.47% 0.00%
Effect of non-
cash items -3.41% -7.09% -2.26% -0.34% -2.00%
Effect of net interest
income, tax
equivalent
adjustment -1.21% -1.05% -1.00% -0.96% -1.08%
------- ------- ------- ------- -------
Core efficiency ratio 66.07% 62.35% 64.47% 68.60% 71.31%
======= ======= ======= ======= =======
Non-interest expense $10,039 $10,041 $ 9,154 $ 8,212 $ 7,966
Severance -- -- (157) -- --
Impairment of long-
lived assets -- -- (308) -- --
Jackson Bank & Trust
integration costs
and other -- (196) (38) -- --
Reinsurance under-
writing expense -- -- -- (238) --
------- ------- ------- ------- -------
Non-interest expense,
adjusted $10,039 $ 9,845 $ 8,651 $ 7,974 $ 7,966
======= ======= ======= ======= =======
Non-interest income $ 2,436 $ 2,364 $ 2,388 $ 2,388 $ 1,707
Recovery on previously
disposed repossessed
asset -- -- -- (173) --
Reinsurance under-
writing revenue -- -- -- (254) --
------- ------- ------- ------- -------
Non-interest income,
adjusted $ 2,436 $ 2,364 $ 2,388 $ 1,961 $ 1,707
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Net income $ 2,474 $ 2,262 $ 4,308 $ 1,895 $ 1,106
Extraordinary gain,
net of tax -- 210 (2,385) -- --
Non-recurring expenses
(income), net of tax -- 133 342 (129) --
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Net operating income,
net of tax $ 2,474 $ 2,605 $ 2,265 $ 1,766 $ 1,106
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Per Common Share:
Book value $ 7.86 $ 7.84 $ 7.84 $ 7.01 $ 6.81
Effect of intangible
assets (1.82) (1.84) (1.70) (1.18) (1.19)
------- ------- ------- ------- -------
Tangible book value $ 6.04 $ 6.00 $ 6.14 $ 5.83 $ 5.62
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Net income, basic $ 0.14 $ 0.13 $ 0.28 $ 0.15 $ 0.09
Effect of extra-
ordinary and non-
recurring items,
net of tax -- 0.02 (0.13) (0.01) --
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Net operating income,
basic $ 0.14 $ 0.15 $ 0.15 $ 0.14 $ 0.09
======= ======= ======= ======= =======
Net income, diluted $ 0.14 $ 0.13 $ 0.28 $ 0.15 $ 0.09
Effect of extra-
ordinary and non-
recurring items,
net of tax -- 0.02 (0.14) (0.01) --
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Net operating income,
diluted $ 0.14 $ 0.15 $ 0.14 $ 0.14 $ 0.09
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Supplemental Data (Amounts in thousands)
--------------------------------------- -------
Allowance for
loan losses $10,103 $10,121 $10,519 $ 9,165 $ 8,866
Net interest income,
tax equivalent $12,022 $11,846 $10,587 $ 9,597 $ 9,161
Amortization of
intangibles $ 341 $ 334 $ 254 $ 160 $ 182
Gain on sales of
available-for-sale
securities, net $ -- $ 117 $ -- $ -- $ --
Gain on foreclosed
and repossessed
property and
premises and
equipment $ (100) $ (45) $ (61) $ (190) $ (86)
Losses on foreclosed
and repossessed
property and
premises and
equipment $ 11 $ 69 $ 28 $ 18 $ 33
Write-downs on
foreclosed and
repossessed property $ 200 $ 537 $ 43 $ (2) $ 62
Mortgage loan and
related fees $ 258 $ 355 $ 419 $ 366 $ 328