UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 30, 2012
SUFFOLK BANCORP
(Exact name of registrant as specified in its charter)
New York | 000-13580 | 11-2708279 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
4 West Second Street, Riverhead, New York | 11901 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (631) 208-2400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 - RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 30, 2012, the Company announced its earnings for the period ended June 30, 2012.
The press release issued by the Company on July 30, 2012 announcing the foregoing event is furnished herewith as Exhibit 99.1.
This information is being furnished in accordance with General Instruction B.2. of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
ITEM 9.01 - FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
The following Exhibit is furnished as part of this report.
Exhibit 99.1 Press release issued by the Company on July 30, 2012
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUFFOLK BANCORP | ||||
Date: July 30, 2012 | By: | /s/ Brian K. Finneran | ||
Brian K. Finneran | ||||
Executive Vice President & Chief Financial Officer |
INDEX OF EXHIBITS
Exhibit Number |
Description | |
Exhibit 99.1 | Press release issued by the Company on July 30, 2012 |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
|
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Contact: Press: | Frank D. Filipo | |||||
Executive Vice President & | ||||||
Operating Officer | ||||||
(631) 208-2400 | ||||||
Investor: | Brian K. Finneran | 4 West Second Street | ||||
Executive Vice President & | Riverhead, NY 11901 | |||||
Chief Financial Officer | (631) 208-2400 (Voice) - (631) 727-3214 (FAX) | |||||
(631) 208-2400 | invest@suffolkbancorp.com |
SUFFOLK BANCORP REPORTS RESULTS FOR THE SECOND QUARTER OF 2012
June 2012 non-performing assets decline by 25% versus first quarter 2012
Net income increases by 28% versus 2011
Core deposits increase to 81% of total funding. Demand deposits increase by 9% versus 2011
Net interest margin remains strong at 4.39%. Average cost of funds declines to 0.29% in 2012
Riverhead, New York, July 30, 2012 Suffolk Bancorp (the Company) (NASDAQ - SUBK), parent company of Suffolk County National Bank (the Bank), today reported second quarter 2012 net income of $4.2 million, or $0.43 per diluted common share, compared to net income of $3.3 million, or $0.34 per diluted common share, a year ago. For the six-month period ended June 30, 2012, the Company recorded net income of $5.4 million, or $0.55 per diluted common share, compared with a net loss of $4.3 million, or ($0.44) per diluted common share, in the June 2011 year-to-date period.
The improvement in second quarter earnings in 2012 was primarily the result of a $5.6 million reduction in the provision for loan losses, which includes a $2.4 million credit to the provision in 2012, and an $891 thousand (5.9%) decrease in total operating expenses. The decrease in the provision for loan losses resulted from a significant reduction in the level of criticized and classified assets in 2012 coupled with continued positive results from ongoing workout and non-performing asset disposition activities. Partially offsetting the foregoing improvements was a $3.0 million (16.8%) contraction in net interest income and a $1.7 million (41.5%) decrease in total non-interest income in 2012 versus 2011.
The reduction in operating expenses in 2012 resulted from a non-recurring $1.0 million pre-payment fee incurred on the termination of a Federal Home Loan Bank borrowing during the second quarter of 2011 coupled with a lower level of consulting expenses incurred in 2012. Partially offsetting this improvement was a decrease in non-interest income largely due to a $1.6 million reduction in net gains on the sales of securities available for sale in 2012. The reduction in net interest income resulted from a lower level of average interest-earning assets, primarily loans, coupled with a narrowing of the net interest margin in 2012 when compared to the same period a year ago. The decrease in the net interest margin was due to the continued low level of interest rates, a shift in the Companys balance sheet mix from loans into lower-yielding overnight interest-bearing deposits, due principally to ongoing loan workout activity, and the level of non-accrual loans still present in 2012.
Commenting on the second quarter results, President and CEO Howard C. Bluver stated, I am extremely pleased with the progress we made during the second quarter in cleaning up our balance sheet. As I have stated in the past, among my highest priorities upon being appointed CEO seven months ago was to recruit a top notch executive management team and to implement aggressive credit remediation steps. With the new executive team fully in place, we were able to make significant progress this quarter in reducing our levels of both non-performing loans and our criticized and classified loan book.
I note in this regard that total non-performing assets were reduced by 25% from $85 million at March 31, 2012 to $64 million at the end of the second quarter. This reduction results from loans that were sold in the quarter, and still includes $7.5 million in non-performing loans that were reclassified as held-for-sale that are subject to a definitive sales agreement with an anticipated August 2012 closing. These positive results were achieved via very focused and aggressive workout activities, including working with existing borrowers where warranted, and selling or contracting to sell loans either individually or in bulk on attractive terms. During the quarter, we sold or transferred loans to held-for-sale at an aggregate price of 77% of book value, resulting in a $7.0 million charge to the allowance for loan losses. Similarly, we were able to achieve accelerated improvement in our total criticized and classified loan levels during the quarter, from $247 million at the end of the first quarter 2012 to $175 million at June 30, 2012.
I am very pleased that we were able to execute these improvements in our key credit metrics while maintaining both strong capital ratios and a healthy allowance for loan losses. With our critical staff complete and in place, we will continue to implement aggressive
credit remediation strategies throughout 2012, and expect to see additional improvements in our key credit metrics as the year moves on.
PRESS RELEASE July 30, 2012 Page 2 of 7 |
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I also want to emphasize that our core deposit franchise continues to be among the best in the region and performed very well in the second quarter. Over 80% of our total deposits are in low cost, stable core deposit products, including over 40% in demand deposit accounts. This product mix continues to be a primary strength of our Company, and resulted in a total cost of funds of approximately 29 basis points during the second quarter and a net interest margin of 4.39%. As we continue our aggressive efforts to put the legacy asset issues behind us, we will never lose sight of the fact that our core deposit franchise is the single most important competitive advantage we have.
Once we have completed the work of cleaning up our balance sheet, I believe that our strong management team, superior deposit franchise and attractive market area will yield improved financial results in the coming quarters.
Performance Highlights
| Asset Quality Total non-accrual loans, excluding loans categorized as held-for-sale, decreased to $54 million or 6.38% of loans outstanding at June 30, 2012 versus $81 million or 8.33% of loans outstanding at December 31, 2011 and $59 million or 5.53% of loans outstanding at June 30, 2011. Total accruing loans delinquent 30 days or more amounted to 1.62% of loans outstanding at June 30, 2012 versus 3.56% of loans outstanding at December 31, 2011 and 3.85% of loans outstanding at June 30, 2011. Net loan charge-offs of $8.4 million, including $7.0 million related to loans sold and transferred to held-for-sale during the quarter, were recorded in the second quarter of 2012 versus net recoveries of $50 thousand in the first quarter of 2012 and net charge-offs of $845 thousand in the second quarter of 2011. The allowance for loan losses totaled $29.2 million at June 30, 2012, $40.0 million at December 31, 2011 and $49.9 million at June 30, 2011, representing 3.45%, 4.12% and 4.71% of total loans, respectively, at such dates. The allowance for loan losses as a percentage of non-accrual loans, excluding non-accrual loans categorized as held-for-sale, was 54%, 49% and 85% at June 30, 2012, December 31, 2011 and June 30, 2011, respectively. The Company held other real estate owned of $2 million at June 30, 2012, December 31, 2011 and June 30, 2011. |
| Core Deposits Core deposits, consisting of demand, N.O.W., savings and money market accounts, totaled $1.1 billion at June 30, 2012, December 31, 2011 and June 30, 2011. Core deposits represented 81% of total deposits at June 30, 2012 and December 31, 2011 and 79% of total deposits at June 30, 2011. Demand deposits increased by 8.4% to $570 million at June 30, 2012 versus $525 million at December 31, 2011 and by 8.7% from $524 million at June 30, 2011. Demand deposits represented 41% of total deposits at June 30, 2012, 40% at December 31, 2011 and 37% at June 30, 2011. |
| Capital The Companys Tier I Leverage ratio was 8.89% at June 30, 2012 versus 8.85% at December 31, 2011 and 8.03% at June 30, 2011. The Companys Total Risk-Based Capital ratio was 15.59% at June 30, 2012 versus 14.26% at December 31, 2011 and 12.95% at June 30, 2011. The Companys Tangible Common Equity ratio (non-GAAP financial measure) was 8.78% at June 30, 2012 versus 9.05% at December 31, 2011 and 8.43% at June 30, 2011. |
| Loans Loans outstanding at June 30, 2012 declined by 12.5% to $848 million when compared to December 31, 2011 and by 19.9% from June 30, 2011. |
| Net Interest Margin Net interest margin was 4.39% in the second quarter of 2012 versus 4.24% in the first quarter of 2012 and 4.87% in the second quarter of 2011. |
| Performance Ratios Return on average assets and return on average common stockholders equity were 1.10% and 12.39%, respectively, for the second quarter of 2012 and 0.31% and 3.44%, respectively, for the first quarter of 2012. For the second quarter of 2011, return on average assets and return on average common stockholders equity were 0.80% and 9.92%, respectively. |
Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through the Suffolk County National Bank, a full service commercial bank headquartered in Riverhead, New York and Suffolk Bancorps wholly owned subsidiary. Organized in 1890, the Bank has 30 offices in Suffolk County, New York. For more information about the Bank and its products and services, please visit www.scnb.com.
PRESS RELEASE July 30, 2012 Page 3 of 7 |
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Non-GAAP Disclosure
This press release includes a non-GAAP financial measure of the Companys tangible common equity ratio. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by generally accepted accounting principles in the United States (GAAP). The Company believes that this non-GAAP financial measure provides both management and investors a more complete understanding of the underlying operational results and trends and the Companys marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.
Safe Harbor Statement Pursuant to the Private Securities Litigation Reform Act of 1995
This press release includes statements which look to the future. These can include remarks about the Company, the banking industry, the economy in general, expectations of the business environment in which the Company operates, projections of future performance, and potential future credit experience. These remarks are based upon current management expectations, and may, therefore, involve risks and uncertainties that cannot be predicted or quantified and are beyond the Companys control and are subject to a variety of uncertainties that could cause future results to vary materially from the Companys historical performance, or from current expectations. These remarks may be identified by such forward-looking statements as should, expect, believe, view, opportunity, allow, continues, reflects, typically, usually, anticipate, or similar statements or variations of such terms. Factors that could affect the Company include particularly, but are not limited to: a failure by the Company to meet the deadlines under SEC rules for filing its periodic reports (or any permitted extension thereof); changes in interest rates; increases or decreases in retail and commercial economic activity in the Companys market area; variations in the ability and propensity of consumers and businesses to borrow, repay, or deposit money, or to use other banking and financial services; results of regulatory examinations; any failure by the Company to comply with our written agreement with the OCC (the Agreement) or the individual minimum capital ratios for the Bank established by the OCC; the cost of compliance with the Agreement; any failure by the Company to maintain effective internal controls over financial reporting; larger-than-expected losses from the sale of assets; potential litigation or regulatory action relating to the matters resulting in the Companys failure to file on time its Quarterly Report on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011, and September 30, 2011 or resulting from the revisions to earnings previously announced on April 12, 2011 or the restatement of its financial statements for the quarterly period ended September 30, 2010 and year ended December 31, 2010; and the potential that net charge-offs are higher than expected or for further increases in our provision for loan losses. Further, it could take the Company longer than anticipated to implement its strategic plans to increase revenue and manage non-interest expense, or it may not be possible to implement those plans at all. Finally, new and unanticipated legislation, regulation, or accounting standards may require the Company to change its practices in ways that materially change the results of operations. We have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.
Financial Highlights Follow
PRESS RELEASE July 30, 2012 Page 4 of 7 |
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CONSOLIDATED STATEMENTS OF CONDITION
(unaudited, in thousands of dollars except for share data)
June 30, | December 31, | June 30, | ||||||||||
2012 | 2011 | 2011 | ||||||||||
ASSETS |
||||||||||||
Cash and Cash Equivalents |
||||||||||||
Non-interest Bearing Deposits |
$ | 65,407 | $ | 73,651 | $ | 37,364 | ||||||
Interest Bearing Deposits |
278,531 | 98,908 | 127,842 | |||||||||
Federal Funds Sold |
1,150 | | | |||||||||
|
|
|
|
|
|
|||||||
Total Cash and Cash Equivalents |
345,088 | 172,559 | 165,206 | |||||||||
Federal Reserve Bank, Federal Home Loan Bank and Other Stock |
2,376 | 2,536 | 2,536 | |||||||||
Investment Securities: |
||||||||||||
Available for Sale, at Fair Value |
307,719 | 299,204 | 321,890 | |||||||||
Held to Maturity (Fair Value of $8,920, $10,241 and $10,479, respectively) |
8,095 | 9,315 | 9,603 | |||||||||
|
|
|
|
|
|
|||||||
Total Investment Securities |
315,814 | 308,519 | 331,493 | |||||||||
|
|
|
|
|
|
|||||||
Loans, Net of Unearned Discount |
848,225 | 969,654 | 1,059,256 | |||||||||
Allowance for Loan Losses |
29,227 | 39,958 | 49,911 | |||||||||
|
|
|
|
|
|
|||||||
Net Loans |
818,998 | 929,696 | 1,009,345 | |||||||||
Loans Held-for-Sale |
7,500 | | | |||||||||
Premises and Equipment, Net |
27,743 | 27,984 | 24,982 | |||||||||
Deferred Taxes |
16,916 | 18,465 | 21,740 | |||||||||
Income Tax Receivable |
6,760 | 5,421 | 1,091 | |||||||||
Other Real Estate Owned, Net |
2,172 | 1,800 | 1,800 | |||||||||
Accrued Interest and Loan Fees Receivable |
5,256 | 6,885 | 6,696 | |||||||||
Prepaid FDIC Assessment |
1,046 | 1,843 | 2,844 | |||||||||
Goodwill and Other Intangibles |
2,438 | 2,437 | 2,472 | |||||||||
Other Assets |
6,295 | 6,082 | 6,026 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
$ | 1,558,402 | $ | 1,484,227 | $ | 1,576,231 | ||||||
|
|
|
|
|
|
|||||||
LIABILITIES & STOCKHOLDERS EQUITY |
||||||||||||
Demand Deposits |
$ | 569,742 | $ | 525,379 | $ | 524,368 | ||||||
Saving, N.O.W. & Money Market Deposits |
551,822 | 531,544 | 600,320 | |||||||||
Time Certificates of $100,000 or More |
176,253 | 168,140 | 202,782 | |||||||||
Other Time Deposits |
83,949 | 86,809 | 87,738 | |||||||||
|
|
|
|
|
|
|||||||
Total Deposits |
1,381,766 | 1,311,872 | 1,415,208 | |||||||||
Unfunded Pension Liability |
20,286 | 18,212 | 11,322 | |||||||||
Capital Leases |
4,726 | 4,737 | 2,804 | |||||||||
Accrued Interest Payable |
325 | 348 | 410 | |||||||||
Other Liabilities |
12,195 | 12,498 | 11,371 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
1,419,298 | 1,347,667 | 1,441,115 | |||||||||
|
|
|
|
|
|
|||||||
STOCKHOLDERS EQUITY |
||||||||||||
Common Stock (par value $2.50; 15,000,000 shares authorized; 9,726,814, 9,726,814 and 9,727,031 shares outstanding at June 30, 2012, December 31, 2011 and June 30, 2011, respectively) |
34,330 | 34,330 | 34,331 | |||||||||
Surplus |
24,101 | 24,010 | 24,013 | |||||||||
Retained Earnings |
96,671 | 91,303 | 87,077 | |||||||||
Treasury Stock at Par (4,005,270 shares) |
(10,013 | ) | (10,013 | ) | (10,013 | ) | ||||||
Accumulated Other Comprehensive Loss, Net of Tax |
(5,985 | ) | (3,070 | ) | (292 | ) | ||||||
|
|
|
|
|
|
|||||||
TOTAL STOCKHOLDERS EQUITY |
139,104 | 136,560 | 135,116 | |||||||||
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|
|
|
|
|
|||||||
TOTAL LIABILITIES & STOCKHOLDERS EQUITY |
$ | 1,558,402 | $ | 1,484,227 | $ | 1,576,231 | ||||||
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|
|
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PRESS RELEASE July 30, 2012 Page 5 of 7 |
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CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands of dollars except for share and per share data)
Three Months Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
INTEREST INCOME |
||||||||||||||||
Loans and Loan Fees |
$ | 12,927 | $ | 15,940 | $ | 25,321 | $ | 32,388 | ||||||||
United States Treasury Securities |
| 25 | | 95 | ||||||||||||
Obligations of States & Political Subdivisions |
1,526 | 1,877 | 3,052 | 3,788 | ||||||||||||
Collateralized Mortgage Obligations |
1,199 | 1,502 | 2,393 | 3,130 | ||||||||||||
Mortgage-Backed Securities |
19 | 8 | 26 | 16 | ||||||||||||
U.S. Government Agency Obligations |
4 | 139 | 4 | 293 | ||||||||||||
Corporate Bonds |
16 | | 16 | | ||||||||||||
Federal Funds Sold & Interest Due from Banks |
137 | 45 | 214 | 61 | ||||||||||||
Dividends |
17 | 60 | 63 | 144 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Interest Income |
15,845 | 19,596 | 31,089 | 39,915 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
INTEREST EXPENSE |
||||||||||||||||
Saving, N.O.W. & Money Market Deposits |
303 | 549 | 620 | 1,183 | ||||||||||||
Time Certificates of $100,000 or more |
406 | 523 | 845 | 1,105 | ||||||||||||
Other Time Deposits |
258 | 321 | 538 | 678 | ||||||||||||
Interest on Borrowings |
| 315 | | 654 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Interest Expense |
967 | 1,708 | 2,003 | 3,620 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Interest Income |
14,878 | 17,888 | 29,086 | 36,295 | ||||||||||||
(Credit) Provision for Loan Losses |
(2,400 | ) | 3,217 | (2,400 | ) | 23,188 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Interest Income After (Credit) Provision for Loan Losses |
17,278 | 14,671 | 31,486 | 13,107 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NON-INTEREST INCOME |
||||||||||||||||
Service Charges on Deposit Accounts |
1,000 | 1,006 | 1,950 | 2,011 | ||||||||||||
Other Service Charges, Commissions & Fees |
846 | 976 | 1,596 | 1,643 | ||||||||||||
Fiduciary Fees |
208 | 206 | 409 | 431 | ||||||||||||
Net Gain (Loss) on Sale of Securities Available for Sale |
2 | 1,645 | (2 | ) | 1,645 | |||||||||||
Other Operating Income |
345 | 270 | 703 | 594 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Non-Interest Income |
2,401 | 4,103 | 4,656 | 6,324 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
OPERATING EXPENSES |
||||||||||||||||
Total Employee Compensation |
8,875 | 7,772 | 17,459 | 15,317 | ||||||||||||
Net Occupancy Expense |
1,276 | 1,422 | 2,730 | 2,956 | ||||||||||||
Equipment Expense |
491 | 463 | 1,003 | 945 | ||||||||||||
Outside Services |
1,047 | 1,400 | 2,193 | 2,288 | ||||||||||||
FDIC Assessments |
478 | 855 | 548 | 1,986 | ||||||||||||
OREO Expense |
12 | (29 | ) | 59 | 111 | |||||||||||
Prepayment Fee on Borrowing |
| 1,028 | | 1,028 | ||||||||||||
Other Operating Expense |
1,960 | 2,119 | 4,752 | 4,172 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Operating Expenses |
14,139 | 15,030 | 28,744 | 28,803 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (Loss) Before Income Tax Expense (Benefit) |
5,540 | 3,744 | 7,398 | (9,372 | ) | |||||||||||
Income Tax Expense (Benefit) |
1,340 | 474 | 2,030 | (5,068 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCOME (LOSS) |
$ | 4,200 | $ | 3,270 | $ | 5,368 | $ | (4,304 | ) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Average: Common Shares Outstanding |
9,726,814 | 9,723,360 | 9,726,814 | 9,714,672 | ||||||||||||
Dilutive Stock Options |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Average Total |
9,726,814 | 9,723,360 | 9,726,814 | 9,714,672 | ||||||||||||
EARNINGS (LOSS) PER COMMON SHARE Basic |
$ | 0.43 | $ | 0.34 | $ | 0.55 | $ | (0.44 | ) | |||||||
Diluted |
$ | 0.43 | $ | 0.34 | $ | 0.55 | $ | (0.44 | ) |
PRESS RELEASE July 30, 2012 Page 6 of 7 |
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STATISTICAL SUMMARY
(unaudited, in thousands of dollars except for share and per share data)
Three Months Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
EARNINGS: |
||||||||||||||||
Earnings (Loss) Per Common Share - Diluted |
$ | 0.43 | $ | 0.34 | $ | 0.55 | $ | (0.44 | ) | |||||||
Cash Dividends Per Common Share |
| | | | ||||||||||||
Net Income (Loss) |
4,200 | 3,270 | 5,368 | (4,304 | ) | |||||||||||
Net Interest Income |
14,878 | 17,888 | 29,086 | 36,295 | ||||||||||||
AVERAGE BALANCES: |
||||||||||||||||
Total Assets |
$ | 1,534,720 | $ | 1,629,490 | $ | 1,514,168 | $ | 1,646,784 | ||||||||
Loans - Net of Unearned Discount |
902,864 | 1,080,789 | 926,933 | 1,097,209 | ||||||||||||
Investment Securities |
302,868 | 401,341 | 311,096 | 404,235 | ||||||||||||
Interest-Earning Assets |
1,436,641 | 1,553,655 | 1,425,533 | 1,554,485 | ||||||||||||
Demand Deposits |
543,745 | 516,008 | 528,611 | 504,879 | ||||||||||||
Total Deposits |
1,353,724 | 1,421,090 | 1,334,034 | 1,420,880 | ||||||||||||
Borrowings |
233 | 38,222 | 117 | 40,729 | ||||||||||||
Stockholders Equity |
136,344 | 132,152 | 136,400 | 134,418 | ||||||||||||
FINANCIAL PERFORMANCE RATIOS: |
||||||||||||||||
Return on Average Assets |
1.10 | % | 0.80 | % | 0.71 | % | (0.53 | %) | ||||||||
Return on Average Stockholders Equity |
12.39 | % | 9.92 | % | 7.91 | % | (6.46 | %) | ||||||||
Average Stockholders Equity/Average Assets |
8.88 | % | 8.11 | % | 9.01 | % | 8.16 | % | ||||||||
Average Loans/Average Deposits |
66.69 | % | 76.05 | % | 69.48 | % | 77.22 | % | ||||||||
Net Interest Margin (FTE) |
4.39 | % | 4.87 | % | 4.33 | % | 4.96 | % | ||||||||
Operating Efficiency Ratio |
78.25 | % | 70.49 | % | 81.36 | % | 67.07 | % | ||||||||
CAPITAL RATIOS (1): |
||||||||||||||||
Tier 1 Leverage Ratio |
8.89 | % | 8.03 | % | 8.89 | % | 8.03 | % | ||||||||
Tier 1 Risk-Based Capital Ratio |
14.32 | % | 11.66 | % | 14.32 | % | 11.66 | % | ||||||||
Total Risk-Based Capital Ratio |
15.59 | % | 12.95 | % | 15.59 | % | 12.95 | % | ||||||||
Tangible Common Equity Ratio (2) |
8.78 | % | 8.43 | % | 8.78 | % | 8.43 | % |
(1) | At end of period. |
(2) | The ratio of tangible common equity to tangible assets, or TCE ratio, is calculated by dividing total common stockholders equity by total assets, after reducing both amounts by intangible assets. The TCE ratio is not required by GAAP or by applicable bank regulatory requirements, but is a metric used by management to evaluate the adequacy of our capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. With respect to the calculation of the actual unaudited TCE ratio as of June 30, 2012, reconciliations of tangible common equity to GAAP total common stockholders equity and tangible assets to GAAP total assets are set forth below: |
Total stockholders equity |
$ | 139,104 | Total assets | $ | 1,558,402 | |||||
Less: intangible assets |
2,438 | Less: intangible assets | 2,438 | |||||||
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Tangible common equity |
$ | 136,666 | Tangible assets | $ | 1,555,964 | |||||
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PRESS RELEASE July 30, 2012 Page 7 of 7 |
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STATISTICAL SUMMARY
(continued)
(unaudited, in thousands of dollars except for share and per share data)
Three Months Ended June 30, |
Six Months
Ended June 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
ASSET QUALITY: |
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Net Charge-offs |
$ | 8,382 | $ | 845 | $ | 8,332 | $ | 1,696 | ||||||||
Net Charge-offs/Average Loans (annualized) |
3.73 | % | 0.31 | % | 1.81 | % | 0.31 | % | ||||||||
at end of period: |
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Non-accrual Loans |
$ | 54,079 | $ | 58,599 | $ | 54,079 | $ | 58,599 | ||||||||
Non-accrual Loans Held-for-Sale |
7,500 | | 7,500 | | ||||||||||||
Loans 90 Days Past Due and Still Accruing |
| | | | ||||||||||||
Foreclosed Real Estate (OREO) |
2,172 | 1,800 | 2,172 | 1,800 | ||||||||||||
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Total Non-performing Assets |
$ | 63,751 | $ | 60,399 | $ | 63,751 | $ | 60,399 | ||||||||
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Allowance/Non-accrual Loans (3) |
54.05 | % | 85.17 | % | 54.05 | % | 85.17 | % | ||||||||
Allowance/Total Loans (3) |
3.45 | % | 4.71 | % | 3.45 | % | 4.71 | % | ||||||||
EQUITY: |
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at end of period: |
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Common Shares Outstanding |
9,726,814 | 9,727,031 | 9,726,814 | 9,727,031 | ||||||||||||
Stockholders Equity |
$ | 139,104 | $ | 135,116 | $ | 139,104 | $ | 135,116 | ||||||||
Book Value Per Common Share |
14.30 | 13.89 | 14.30 | 13.89 | ||||||||||||
Tangible Common Equity |
136,666 | 132,644 | 136,666 | 132,644 | ||||||||||||
Tangible Book Value Per Common Share |
14.05 | 13.64 | 14.05 | 13.64 | ||||||||||||
LOAN DISTRIBUTION (3): |
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at end of period: |
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Commercial, Financial & Agricultural Loans |
$ | 200,094 | $ | 239,432 | $ | 200,094 | $ | 239,432 | ||||||||
Commercial Real Estate Mortgages |
364,316 | 436,511 | 364,316 | 436,511 | ||||||||||||
Real Estate - Construction Loans |
43,632 | 68,148 | 43,632 | 68,148 | ||||||||||||
Residential Mortgages (1st and 2nd Liens) |
146,642 | 175,389 | 146,642 | 175,389 | ||||||||||||
Home Equity Loans |
75,223 | 81,824 | 75,223 | 81,824 | ||||||||||||
Consumer & Other Loans |
18,318 | 57,952 | 18,318 | 57,952 | ||||||||||||
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Total Loans - Net of Unearned Discount |
$ | 848,225 | $ | 1,059,256 | $ | 848,225 | $ | 1,059,256 | ||||||||
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(3) | Excluding loans held-for-sale. |
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