The Savannah Bancorp, Inc. (Nasdaq:SAVB) (the "Company") reported
net income for the second quarter 2012 of $416,000 compared to a
net loss of $1,492,000 for the second quarter 2011. Net income per
diluted share was 6 cents in the second quarter 2012 compared to a
net loss per diluted share of 21 cents in 2011. The quarter over
quarter increase in earnings resulted primarily from decreases in
losses on sales of foreclosed assets and in the provision for loans
losses, which were partially offset by lower net interest income.
Pretax core earnings decreased $668,000, or 15 percent, to
$3,843,000 in the second quarter of 2012 compared to $4,511,000 in
the second quarter of 2011. The quarter over quarter decrease in
pretax core earnings resulted primarily from a decrease in net
interest income. Net loss for the first six months of 2012 was
$615,000 compared to a net loss of $1,366,000 for the same period
in 2011. Other growth and performance ratios are included in the
attached financial highlights.
Total assets decreased 5.0 percent to $952 million at June 30,
2012, down approximately $50 million from $1.0 billion a year
earlier. Loans totaled $725 million compared to $808 million
one year earlier, a decrease of approximately $83 million, or 10
percent. Deposits totaled $818 million and $857 million at
June 30, 2012 and 2011, respectively, a decrease of 4.6
percent. Shareholders' equity was $83.7 million at June 30,
2012 compared to $85.1 million at June 30, 2011. The Company's
total capital to risk-weighted assets ratio was 13.14 percent at
June 30, 2012, which exceeds the 10 percent required by the
regulatory agencies to maintain well-capitalized status.
John C. Helmken II, President and CEO, said, "We are very
pleased to report positive earnings this quarter. We continue
to focus on improving our asset quality and working problem assets
through the system. We are finally seeing this effort
positively impact our asset quality metrics. Our level of
nonperforming assets decreased 17 percent in 2012 to their lowest
point since the first quarter of 2010. Loans past due 30-89 days
have also been substantially lower at each quarter-end in 2012
versus prior periods and are less than one third of the balance
reported one year ago."
The Company's allowance for loan losses was $22,776,000, or 3.14
percent of total loans at June 30, 2012 compared to $23,523,000 or
2.91 percent of total loans a year earlier. Nonperforming
assets were $45,913,000 or 4.82 percent of total assets at June 30,
2012 compared to $51,435,000 or 5.13 percent of total assets at
June 30, 2011. Other real estate owned ("OREO") increased
$4,210,000, or 35 percent, to $16,335,000 at June 30, 2012, as
compared to June 30, 2011, due to an increase in foreclosures on
real property as a result of borrower defaults. For the second
quarter of 2012, net charge-offs were $2,160,000 compared to net
charge-offs of $5,140,000 for the second quarter of 2011. The
provision for loan losses for the second quarter of 2012 was
$2,540,000 compared to $6,300,000 for the same period in
2011. The decline in the provision for loan losses for the
second quarter of 2012 when compared to the same period in 2011 was
primarily due to lower real estate related charge-offs. While
the local real estate market has not fully stabilized and continues
to show weakness, the Company experienced slower in-flows on
nonperforming assets in the second quarter 2012 compared to the
same period in 2011.
Helmken continued, "To maintain a steady net interest margin in
this low rate environment is a testimony to the hard work and
efforts of our team. In addition, our trust and asset
management fees were higher this quarter on both a linked quarter
and quarter over quarter basis. We continue to work to contain
non-credit expenses, however, credit costs, charge-offs and loan
loss provisions remain too high. Management and the Board of
Directors continue to evaluate all alternatives to resolve and
reduce nonperforming and classified assets."
Net interest income decreased $600,000, or 6.6 percent, in the
second quarter of 2012 versus the second quarter of 2011. Net
interest income decreased quarter over quarter due primarily to a
lower level of interest-earning assets, particularly accruing
loans. Average accruing loans declined approximately $73
million to $704 million for the second quarter in 2012 compared to
$777 million for the same period in 2011. This decline was due
to normal pay downs, charge-offs and weakened demand for new
loans. Although net interest income declined, the net
interest margin remained stable at 3.91 percent in the second
quarter of 2012 compared to the same period in 2011. The yield
on earning assets declined 30 basis points to 4.67 percent during
the second quarter of 2012 compared to the second quarter of
2011. This decline in yield on interest-earning assets was
mainly due to the Company holding, on average, $47 million more in
lower yielding interest-bearing deposits and $74 million less in
higher yielding accruing loans. However, the decline in the
yield on interest-earning assets was offset by a 30 basis point
decline in the cost of interest-bearing liabilities. This
decline was primarily due to the re-pricing of time deposits and
money market accounts in the current low interest rate
environment. On a linked quarter basis, the net interest
margin decreased one basis point when compared to the first quarter
of 2012.
Noninterest income decreased $163,000, or 9.5 percent, in the
second quarter of 2012 versus the same period in 2011. This
decrease was primarily related to a decline in gain on sale of
securities of $214,000 in the second quarter of 2012 compared to
the same period in 2011. This decline was partially offset by
an increase in other operating income of $73,000 or 20
percent. The increase in other operating income during the
second quarter of 2012 compared to 2011 was due primarily to
increases in rent income from premises and OREO and from fees
related to ATMs and debit cards.
Noninterest expense decreased $211,000, or 3.0 percent, to
$6,898,000 during the second quarter of 2012 as compared to the
same period in 2011. This decrease was mainly due to a
$330,000, or 30 percent, decrease in losses on sales of foreclosed
assets in the second quarter of 2012 as compared to the same
quarter in 2011.
The Savannah Bancorp, Inc., a bank holding company for The
Savannah Bank, N.A. ("Savannah"), Bryan Bank & Trust (Richmond
Hill, Georgia) ("Bryan"), and Minis & Co., Inc., is
headquartered in Savannah, Georgia and began operations in
1990. The two bank subsidiaries, Savannah and Bryan, are
collectively referred to as the "Subsidiary Banks." The
Company has eleven branches in Coastal Georgia and South
Carolina. Its primary businesses include loan, deposit, trust,
asset management, and mortgage origination services provided to
local customers.
This press release contains certain performance measures
determined by methods other than in accordance with accounting
principles generally accepted in the United States of America
("GAAP"). Management of the Company uses these non-GAAP
measures in its analysis of the Company's performance. These
measures are useful when evaluating the underlying performance and
efficiency of the Company's operations and balance sheet. The
Company's management believes that these non-GAAP measures provide
a greater understanding of ongoing operations, enhance
comparability of results with prior periods and demonstrate the
effects of significant gains and charges in the current period. The
Company's management believes that investors may use these non-GAAP
financial measures to evaluate the Company's financial performance
without the impact of unusual items that may obscure trends in the
Company's underlying performance. These disclosures should not be
viewed as a substitute for financial measures determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies.
This press release contains statements that constitute
"forward-looking statements" within the meaning of federal
securities laws. All statements other than statements of
historical fact are forward-looking statements. These
forward-looking statements include, among others, statements
identified by words or phrases such as "potential," "opportunity,"
"believe," "expect," "anticipate," "current," "intention,"
"estimate," "assume," "outlook," "continue," "seek," "plans,"
"achieve," and similar expressions, or future or conditional verbs
such as "will," "would," "should," "could," "may" or similar
expressions of the future or otherwise regarding the outlook for
the Company's future business and financial performance and/or the
performance of the banking industry and economy in general. These
forward-looking statements include, among others, our assessment of
local real estate markets and the decline in values on loan
collateral and OREO; expectations regarding loan demand, new
business and relationships; expectations regarding our ability to
improve asset quality; expectations on our ability to contain
operating and other non-credit expenses in 2012; our evaluation of
alternatives to reduce nonperforming and classified assets; and the
assumptions underlying our expectations. Prospective investors
are cautioned that any such forward-looking statements are not
guarantees of future performance and involve known and unknown
risks and uncertainties which may cause the actual results,
performance or achievements of the Company to be materially
different from the future results, performance or achievements
expressed or implied by such forward-looking
statements. Actual results may differ materially from those
contemplated by such forward-looking statements.
These statements are based on the current beliefs and
expectations of our management and are subject to significant risks
and uncertainties. There can be no assurance that these
results will occur or that the expected benefits associated
therewith will be achieved. A number of important factors
could cause actual results to differ materially from those
contemplated by our forward-looking statements in this press
release. Many of these factors are beyond our ability to
control or predict. These factors include, but are not limited
to, those found in our filings with the Securities and Exchange
Commission, including under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the
year ended December 31, 2011, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. We believe these forward-looking
statements are reasonable; however, undue reliance should not be
placed on any forward-looking statements, including those which are
based on current expectations and speak only as of the date that
they are made. We do not assume any obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise, except as required by law.
A printable format of this entire Earnings Release
may be obtained from the Company's Corporate Website at
www.savb.com under the "SEC Filings and More" link and then "Latest
Earnings Release".
|
The Savannah Bancorp,
Inc. and Subsidiaries |
Second Quarter
Financial Highlights |
June 30, 2012 and
2011 |
($ in thousands, except share
data) |
(Unaudited) |
|
|
|
% |
Balance Sheet Data at June
30 |
2012 |
2011 |
Change |
Total assets |
$952,221 |
$1,002,254 |
(5.0) |
Interest-earning assets |
889,197 |
910,717 |
(2.4) |
|
Loans |
725,345 |
807,533 |
(10) |
Other real estate owned |
16,335 |
12,125 |
35 |
Deposits |
817,966 |
857,482 |
(4.6) |
Interest-bearing liabilities |
736,668 |
817,675 |
(9.9) |
Shareholders' equity |
83,714 |
85,134 |
(1.7) |
Loan to deposit ratio |
88.68% |
94.17% |
(5.8) |
Equity to assets |
8.79% |
8.49% |
3.5 |
Tier 1 capital to risk-weighted assets |
11.86% |
11.09% |
6.9 |
Total capital to risk-weighted assets |
13.14% |
12.37% |
6.2 |
Outstanding shares |
7,199 |
7,199 |
0.0 |
Book value per share |
$11.63 |
$11.83 |
(1.7) |
Tangible book value per share |
$11.15 |
$11.32 |
(1.5) |
Market value per share |
$4.85 |
$7.41 |
(35) |
|
|
|
|
Loan Quality Data |
|
|
|
Nonaccruing loans |
$29,417 |
$39,160 |
(25) |
Loans past due 90 days – accruing |
161 |
150 |
7.3 |
Net charge-offs |
6,421 |
7,487 |
(14) |
Allowance for loan losses |
22,776 |
23,523 |
(3.2) |
Allowance for loan losses to total loans |
3.14% |
2.91% |
7.9 |
Nonperforming assets to total assets |
4.82% |
5.13% |
(6.0) |
|
|
|
|
Performance Data
for the Second Quarter |
|
|
Net income (loss) |
$416 |
$ (1,492) |
128 |
Return on average assets |
0.17% |
(0.59)% |
129 |
Return on average equity |
1.96% |
(6.96)% |
128 |
Net interest margin |
3.91% |
3.91% |
0.0 |
Efficiency ratio |
69.13% |
66.18% |
4.5 |
|
|
|
|
Per share data: |
|
|
|
Net income (loss) – basic |
$0.06 |
$ (0.21) |
129 |
Net income (loss) – diluted |
$0.06 |
$ (0.21) |
129 |
|
|
|
|
Average shares (000s): |
|
|
|
Basic |
7,199 |
7,199 |
0.0 |
Diluted |
7,199 |
7,199 |
0.0 |
|
|
|
|
Performance Data
for the First Six Months |
|
|
Net loss |
$ (615) |
$ (1,366) |
55 |
Return on average assets |
(0.13)% |
(0.27)% |
52 |
Return on average equity |
(1.47)% |
(3.18)% |
54 |
Net interest margin |
3.91% |
3.82% |
2.4 |
Efficiency ratio |
70.20% |
62.34% |
13 |
|
|
|
|
Per share data: |
|
|
|
Net loss – basic |
$(0.08) |
$(0.19) |
58 |
Net loss – diluted |
$(0.08) |
$(0.19) |
58 |
|
|
|
|
Average shares (000s): |
|
|
|
Basic |
7,199 |
7,199 |
0.0 |
Diluted |
7,199 |
7,199 |
0.0 |
|
The Savannah Bancorp,
Inc. and Subsidiaries |
Consolidated Balance
Sheets |
($ in thousands, except share
data) |
(Unaudited) |
|
|
|
|
June
30, |
|
2012 |
2011 |
Assets |
|
|
Cash and due from banks |
$14,438 |
$11,717 |
Federal funds sold |
340 |
200 |
Interest-bearing deposits |
84,063 |
36,353 |
Cash and cash
equivalents |
98,841 |
48,270 |
Securities available for sale, at fair value
(amortized cost of $84,480 and $105,792) |
86,665 |
108,018 |
Loans, net of allowance for loan losses of
$22,776 and $23,523 |
702,569 |
784,010 |
Premises and equipment, net |
14,058 |
14,692 |
Other real estate owned |
16,335 |
12,125 |
Bank-owned life insurance |
6,612 |
6,407 |
Goodwill and other intangible assets,
net |
3,450 |
3,674 |
Other assets |
23,691 |
25,058 |
Total
assets |
$952,221 |
$1,002,254 |
|
|
|
Liabilities |
|
|
Deposits: |
|
|
Noninterest-bearing |
$128,010 |
$96,025 |
Interest-bearing demand |
149,939 |
136,991 |
Savings |
23,053 |
21,497 |
Money market |
241,015 |
267,270 |
Time deposits |
275,949 |
335,699 |
Total deposits |
817,966 |
857,482 |
Short-term borrowings |
15,405 |
12,575 |
Other borrowings |
7,847 |
9,677 |
FHLB advances |
13,150 |
23,656 |
Subordinated debt |
10,310 |
10,310 |
Other liabilities |
3,829 |
3,420 |
Total
liabilities |
868,507 |
917,120 |
Shareholders' equity |
|
|
Preferred stock, par value $1 per
share: shares authorized 10,000,000, none issued |
-- |
-- |
Common stock, par value $1 per share: shares
authorized 20,000,000, issued 7,201,346 |
7,201 |
7,201 |
Additional paid-in capital |
48,671 |
48,644 |
Retained earnings |
26,488 |
27,909 |
Treasury stock, at cost, 2,109 and 2,210
shares |
(1) |
(1) |
Accumulated other
comprehensive income, net |
1,355 |
1,381 |
Total
shareholders' equity |
83,714 |
85,134 |
Total liabilities
and shareholders' equity |
$952,221 |
$1,002,254 |
The Savannah Bancorp,
Inc. and Subsidiaries |
Consolidated
Statements of Operations |
for the Six Months
and Five Quarters Ending June 30, 2012 |
($ in thousands, except per
share data) |
|
|
(Unaudited) |
|
For the Six Months Ended |
2012 |
2011 |
Q2-12/ |
|
June
30, |
% |
Second |
First |
Fourth |
Third |
Second |
Q2-11 |
|
2012 |
2011 |
Chg |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Chg |
Interest and dividend
income |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$19,332 |
$21,317 |
(9.3) |
$ 9,490 |
$ 9,842 |
$10,083 |
$10,535 |
$10,620 |
(11) |
Investment securities |
1,068 |
1,711 |
(38) |
531 |
537 |
587 |
700 |
836 |
(36) |
Deposits with banks |
107 |
59 |
81 |
59 |
48 |
43 |
25 |
27 |
119 |
Federal funds sold |
1 |
2 |
(50) |
-- |
1 |
-- |
1 |
1 |
100 |
Total
interest and dividend income |
20,508 |
23,089 |
(11) |
10,080 |
10,428 |
10,713 |
11,261 |
11,484 |
(12) |
Interest expense |
|
|
|
|
|
|
|
|
|
Deposits |
2,834 |
4,465 |
(37) |
1,323 |
1,511 |
1,674 |
1,877 |
2,082 |
(36) |
Borrowings & sub debt |
512 |
570 |
(10) |
249 |
263 |
271 |
283 |
281 |
(11) |
FHLB advances |
157 |
175 |
(10) |
73 |
84 |
86 |
87 |
86 |
(15) |
Total interest
expense |
3,503 |
5,210 |
(33) |
1,645 |
1,858 |
2,031 |
2,247 |
2,449 |
(33) |
Net interest income |
17,005 |
17,879 |
(4.9) |
8,435 |
8,570 |
8,682 |
9,014 |
9,035 |
(6.6) |
Provision for loan
losses |
7,280 |
10,660 |
32 |
2,540 |
4,740 |
6,510 |
2,865 |
6,300 |
(60) |
Net interest income after the
provision for loan losses |
9,725 |
7,219 |
35 |
5,895 |
3,830 |
2,172 |
6,149 |
2,735 |
116 |
Noninterest income |
|
|
|
|
|
|
|
|
|
Trust and asset management fees |
1,347 |
1,345 |
0.1 |
690 |
657 |
638 |
663 |
683 |
1.0 |
Service charges on deposits |
696 |
718 |
(3.1) |
346 |
350 |
369 |
371 |
348 |
(0.6) |
Mortgage related income, net |
102 |
82 |
24 |
41 |
61 |
29 |
72 |
68 |
(40) |
Gain on sale of securities |
23 |
455 |
(95) |
23 |
-- |
-- |
308 |
237 |
(90) |
Other operating income |
894 |
732 |
22 |
444 |
450 |
461 |
403 |
371 |
20 |
Total
noninterest income |
3,062 |
3,332 |
(8.1) |
1,544 |
1,518 |
1,497 |
1,817 |
1,707 |
(9.5) |
Noninterest expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
5,925 |
5,752 |
3.0 |
2,942 |
2,983 |
2,644 |
2,886 |
2,846 |
3.4 |
Occupancy and equipment |
1,731 |
1,864 |
(7.1) |
868 |
863 |
894 |
925 |
981 |
(12) |
Information technology |
954 |
818 |
17 |
478 |
476 |
462 |
428 |
416 |
15 |
FDIC deposit insurance |
747 |
816 |
(8.5) |
411 |
336 |
162 |
325 |
336 |
22 |
Loan collection and OREO costs |
649 |
556 |
17 |
365 |
284 |
621 |
324 |
330 |
11 |
Amortization of intangibles |
112 |
112 |
0.0 |
56 |
56 |
56 |
56 |
56 |
0.0 |
Loss on sales of foreclosed assets |
2,090 |
1,348 |
55 |
785 |
1,305 |
754 |
577 |
1,115 |
(30) |
Other operating expense |
1,879 |
1,956 |
(3.9) |
993 |
886 |
1,020 |
897 |
1,029 |
(3.5) |
Total
noninterest expense |
14,087 |
13,222 |
6.5 |
6,898 |
7,189 |
6,613 |
6,418 |
7,109 |
(3.0) |
Income (loss) before income taxes |
(1,300) |
(2,671) |
51 |
541 |
(1,841) |
(2,944) |
1,548 |
(2,667) |
120 |
Income tax expense
(benefit) |
(685) |
(1,305) |
(48) |
125 |
(810) |
(910) |
320 |
(1,175) |
111 |
Net income
(loss) |
$ (615) |
$ (1,366) |
55 |
$ 416 |
$ (1,031) |
$ (2,034) |
$ 1,228 |
$ (1,492) |
128 |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ (0.08) |
$ (0.19) |
58 |
$ 0.06 |
$ (0.14) |
$ (0.28) |
$ 0.17 |
$ (0.21) |
129 |
Diluted |
$ (0.08) |
$ (0.19) |
58 |
$ 0.06 |
$ (0.14) |
$ (0.28) |
$ 0.17 |
$ (0.21) |
129 |
Average basic shares
(000s) |
7,199 |
7,199 |
0.0 |
7,199 |
7,199 |
7,199 |
7,199 |
7,199 |
0.0 |
Average diluted shares (000s) |
7,199 |
7,199 |
0.0 |
7,199 |
7,199 |
7,199 |
7,199 |
7,199 |
0.0 |
Performance Ratios |
|
|
|
|
|
|
|
|
|
Return on average equity |
(1.47)% |
(3.18)% |
54 |
1.96% |
(4.86)% |
(9.27)% |
5.64% |
(6.96)% |
128 |
Return on average assets |
(0.13)% |
(0.27)% |
52 |
0.17% |
(0.42)% |
(0.82)% |
0.49% |
(0.59)% |
129 |
Net interest margin |
3.91% |
3.82% |
2.4 |
3.91% |
3.92% |
3.88% |
4.01% |
3.91% |
0.0 |
Efficiency ratio |
70.20% |
62.34% |
13 |
69.13% |
71.26% |
64.97% |
59.26% |
66.18% |
4.5 |
Average equity |
84,615 |
86,722 |
(2.4) |
84,063 |
85,166 |
87,013 |
86,320 |
86,037 |
(2.3) |
Average assets |
965,091 |
1,036,194 |
(6.9) |
955,242 |
974,940 |
987,888 |
990,303 |
1,018,324 |
(6.2) |
Average interest-earning assets |
872,568 |
945,227 |
(7.7) |
866,866 |
878,273 |
889,449 |
893,188 |
928,316 |
(6.6) |
Capital Resources
The Subsidiary Banks' primary regulators have adopted capital
requirements that specify the minimum capital level for which no
prompt corrective action is required. In addition, the FDIC
has adopted FDIC insurance assessment rates based on certain
"well-capitalized" risk-based and equity capital
ratios. Failure to meet minimum capital requirements can
result in the initiation of certain actions by the regulators that,
if undertaken, could have a material effect on the Company's and
the Subsidiary Banks' financial statements and condition. As
of June 30, 2012, the Company and Savannah were categorized as
"well-capitalized" under the regulatory framework for prompt
corrective action in the most recent notification from the
FDIC. In the first quarter of 2012, Bryan entered into a
Consent Order ("Order") with its regulators which includes a
capital provision requiring Bryan to maintain a Tier 1 Leverage
Ratio of not less than 8.00 percent and a Total Risk-based Capital
Ratio of not less than 10.00 percent. As a result of this
capital provision, Bryan is automatically classified as "adequately
capitalized" for regulatory purposes. As of June 30, 2012,
Bryan had a Tier 1 Leverage Ratio of 7.88 percent which was below
the requirement set by the Order. However, Bryan's Leverage
Ratio did increase 31 basis points in the second quarter 2012 on a
linked quarter basis. The Company is evaluating its options to
bring Bryan into compliance with this stipulation. Savannah has
agreed with its primary regulator to maintain a Tier 1 Leverage
Ratio of not less than 8.00 percent and a Total Risk-based Capital
Ratio of not less than 12.00 percent and is currently in compliance
with this agreement.
Total tangible equity capital for the Company was $80.3 million,
or 8.46 percent of total tangible assets at June 30, 2012. The
table below shows the regulatory capital amounts and ratios for the
Company and each Subsidiary Bank along with the minimum capital
ratio and the ratio required to maintain a well-capitalized
regulatory status.
|
|
|
|
|
Well- |
($ in thousands) |
Company |
Savannah |
Bryan |
Minimum |
Capitalized |
|
|
|
|
|
|
Qualifying Capital |
|
|
|
|
|
Tier 1 capital |
$ 81,209 |
$ 62,520 |
$ 18,421 |
-- |
-- |
Total capital |
89,941 |
68,965 |
20,570 |
-- |
-- |
|
|
|
|
|
|
Leverage Ratios |
|
|
|
|
|
Tier 1 capital to average assets |
8.60% |
8.92% |
7.88% |
4.00% |
5.00% |
|
|
|
|
|
|
Risk-based Ratios |
|
|
|
|
|
Tier 1 capital to risk-weighted assets |
11.86% |
12.30% |
10.98% |
4.00% |
6.00% |
Total capital to risk-weighted assets |
13.14% |
13.56% |
12.26% |
8.00% |
10.00% |
Tier 1 and total capital at the Company level includes $10
million of subordinated debt issued to the Company's
nonconsolidated subsidiaries. Total capital also includes the
allowance for loan losses up to 1.25 percent of risk-weighted
assets.
The Savannah Bancorp,
Inc. and Subsidiaries |
Allowance for Loan
Losses and Nonperforming Assets |
(Unaudited) |
|
|
2012 |
2011 |
|
Second |
First |
Fourth |
Third |
Second |
($ in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
|
|
|
|
|
Allowance for loan
losses |
|
|
|
|
|
Balance at beginning of period |
$ 22,396 |
$ 21,917 |
$ 22,854 |
$ 23,523 |
$ 22,363 |
Provision for loan losses |
2,540 |
4,740 |
6,510 |
2,865 |
6,300 |
Net charge-offs |
(2,160) |
(4,261) |
(7,447) |
(3,534) |
(5,140) |
Balance at end of period |
$ 22,776 |
$ 22,396 |
$ 21,917 |
$ 22,854 |
$ 23,523 |
|
|
|
|
|
|
As a % of loans |
3.14% |
3.01% |
2.89% |
2.90% |
2.91% |
As a % of nonperforming loans |
77.00% |
68.66% |
62.83% |
53.72% |
59.84% |
As a % of nonperforming assets |
49.61% |
44.61% |
39.70% |
38.30% |
45.73% |
|
|
|
|
|
|
Net charge-offs as a % of average loans
(a) |
1.80% |
2.27% |
2.41% |
1.84% |
2.65% |
|
|
|
|
|
|
Risk element assets |
|
|
|
|
|
Nonaccruing loans |
$ 29,417 |
$ 30,742 |
$ 34,668 |
$ 41,689 |
$ 39,160 |
Loans past due 90 days – accruing |
161 |
1,876 |
213 |
851 |
150 |
Total nonperforming loans |
29,578 |
32,618 |
34,881 |
42,540 |
39,310 |
Other real estate owned |
16,335 |
17,589 |
20,332 |
17,135 |
12,125 |
Total nonperforming
assets |
$ 45,913 |
$ 50,207 |
$ 55,213 |
$ 59,675 |
$ 51,435 |
|
|
|
|
|
|
Loans past due 30-89 days |
$ 5,364 |
$ 4,701 |
$ 15,132 |
$ 13,096 |
$ 17,013 |
|
|
|
|
|
|
Nonperforming loans as a % of loans |
4.08% |
4.39% |
4.59% |
5.39% |
4.87% |
Nonperforming assets as a % of loans and
other real estate owned |
6.19% |
6.60% |
7.08% |
7.41% |
6.28% |
Nonperforming assets as a % of assets |
4.82% |
5.17% |
5.60% |
6.04% |
5.13% |
|
|
|
|
|
|
(a) Annualized |
The Savannah Bancorp,
Inc. and Subsidiaries |
Average Balance Sheet
and Rate/Volume Analysis – Second Quarter, 2012 and 2011
|
|
|
|
|
|
|
Taxable-Equivalent |
|
(a) Variance |
Average
Balance |
Average
Rate |
|
Interest
(b) |
|
Attributable
to |
QTD |
QTD |
QTD |
QTD |
|
QTD |
QTD |
Vari- |
|
|
06/30/12 |
06/30/11 |
06/30/12 |
06/30/11 |
|
06/30/12 |
06/30/11 |
ance |
Rate |
Volume |
($ in thousands) |
(%) |
|
($ in thousands) |
|
($ in thousands) |
|
|
|
|
Assets |
|
|
|
|
|
$ 82,750 |
$ 35,785 |
0.29 |
0.30 |
Interest-bearing deposits |
$ 59 |
$ 27 |
$ 32 |
$ (1) |
$ 33 |
74,084 |
108,408 |
2.56 |
2.85 |
Investments - taxable (d) |
472 |
770 |
(298) |
(78) |
(220) |
5,788 |
6,361 |
4.44 |
4.48 |
Investments - non-taxable (d) |
64 |
71 |
(7) |
(1) |
(6) |
670 |
595 |
0.00 |
0.67 |
Federal funds sold |
-- |
1 |
(1) |
(1) |
-- |
703,574 |
777,167 |
5.41 |
5.48 |
Loans (c) |
9,493 |
10,623 |
(1,130) |
(136) |
(994) |
866,866 |
928,316 |
4.67 |
4.97 |
Total interest-earning assets |
10,088 |
11,492 |
(1,404) |
(217) |
(1,187) |
88,376 |
90,008 |
|
|
Noninterest-earning assets |
|
|
|
|
|
$ 955,242 |
$ 1,018,324 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
$ 145,104 |
$ 140,593 |
0.16 |
0.29 |
NOW accounts |
58 |
100 |
(42) |
(46) |
4 |
22,569 |
21,169 |
0.07 |
0.15 |
Savings accounts |
4 |
8 |
(4) |
(4) |
-- |
217,110 |
235,375 |
0.86 |
1.11 |
Money market
accounts |
466 |
654 |
(188) |
(147) |
(41) |
27,629 |
40,527 |
0.29 |
0.51 |
MMA - institutional |
20 |
52 |
(32) |
(22) |
(10) |
127,794 |
163,689 |
1.16 |
1.61 |
Time deposits, $100M or
more |
368 |
657 |
(289) |
(184) |
(105) |
41,608 |
43,599 |
0.72 |
0.81 |
Time deposits,
broker |
75 |
88 |
(13) |
(10) |
(3) |
116,190 |
141,114 |
1.15 |
1.49 |
Other time deposits |
332 |
523 |
(191) |
(120) |
(71) |
698,004 |
786,066 |
0.76 |
1.06 |
Total interest-bearing deposits |
1,323 |
2,082 |
(759) |
(532) |
(227) |
24,337 |
23,545 |
2.79 |
3.49 |
Short-term/other borrowings |
169 |
205 |
(36) |
(41) |
5 |
14,266 |
14,788 |
2.05 |
2.33 |
FHLB advances |
73 |
86 |
(13) |
(10) |
(3) |
10,310 |
10,310 |
3.11 |
2.96 |
Subordinated debt |
80 |
76 |
4 |
4 |
-- |
|
|
|
|
|
|
|
|
|
|
746,917 |
834,709 |
0.88 |
1.18 |
Total interest-bearing liabilities |
1,645 |
2,449 |
(804) |
(579) |
(225) |
120,532 |
93,049 |
|
|
Noninterest-bearing deposits |
|
|
|
|
|
3,730 |
4,529 |
|
|
Other liabilities |
|
|
|
|
|
84,063 |
86,037 |
|
|
Shareholders' equity |
|
|
|
|
|
$ 955,242 |
$1,018,324 |
|
|
Liabilities and equity |
|
|
|
|
|
|
|
3.79 |
3.79 |
Interest rate spread |
|
|
|
|
|
|
|
3.91 |
3.91 |
Net interest margin |
|
|
|
|
|
|
|
|
|
Net interest income |
$ 8,443 |
$ 9,043 |
$ (600) |
$ 362 |
$ (962) |
$ 119,949 |
$ 93,607 |
|
|
Net earning assets |
|
|
|
|
|
$ 818,536 |
$ 879,115 |
|
|
Average deposits |
|
|
|
|
|
|
|
0.65 |
0.95 |
Average cost of deposits |
|
|
|
|
|
86% |
88% |
|
|
Average loan to deposit ratio (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) This table shows the changes
in interest income and interest expense for the comparative periods
based on either changes in average volume or changes in average
rates for interest-earning assets and interest-bearing
liabilities. Changes which are not solely due to rate changes
or solely due to volume changes are attributed to volume. |
(b) The taxable equivalent
adjustment of $8 in the second quarter of 2012 and 2011 results
from tax exempt income less non-deductible TEFRA interest
expense. |
(c) Average nonaccruing loans
have been excluded from total average loans and categorized in
noninterest-earning assets. |
(d) Average investment
securities do not include the unrealized gain/loss on available for
sale investment securities. |
The Savannah Bancorp,
Inc. and Subsidiaries |
Average Balance Sheet
and Rate/Volume Analysis – First Six Months, 2012 and
2011 |
|
|
|
|
|
|
Taxable-Equivalent |
|
(a) Variance |
Average
Balance |
Average
Rate |
|
Interest
(b) |
|
Attributable
to |
YTD |
YTD |
YTD |
YTD |
|
YTD |
YTD |
Vari- |
|
|
06/30/12 |
06/30/11 |
06/30/12 |
06/30/11 |
|
06/30/12 |
06/30/11 |
ance |
Rate |
Volume |
($ in thousands) |
(%) |
|
($ in thousands) |
|
($ in thousands) |
|
|
|
|
Assets |
|
|
|
|
|
$ 81,249 |
$ 38,678 |
0.26 |
0.31 |
Interest-bearing deposits |
$ 107 |
$ 59 |
$ 48 |
$ (10) |
$ 58 |
74,776 |
116,911 |
2.55 |
2.72 |
Investments - taxable (d) |
950 |
1,576 |
(626) |
(99) |
(527) |
5,809 |
6,627 |
4.42 |
4.41 |
Investments - non-taxable (d) |
128 |
145 |
(17) |
-- |
(17) |
586 |
647 |
0.34 |
0.62 |
Federal funds sold |
1 |
2 |
(1) |
(1) |
-- |
710,148 |
782,364 |
5.46 |
5.50 |
Loans (c) |
19,338 |
21,323 |
(1,985) |
(156) |
(1,829) |
872,568 |
945,227 |
4.72 |
4.93 |
Total interest-earning assets |
20,524 |
23,105 |
(2,581) |
(265) |
(2,316) |
92,523 |
90,967 |
|
|
Noninterest-earning assets |
|
|
|
|
|
$ 965,091 |
$ 1,036,194 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
$ 143,772 |
$ 139,955 |
0.17 |
0.31 |
NOW accounts |
120 |
212 |
(92) |
(98) |
6 |
21,750 |
20,761 |
0.07 |
0.18 |
Savings accounts |
8 |
19 |
(11) |
(11) |
-- |
220,472 |
235,342 |
0.90 |
1.19 |
Money market
accounts |
988 |
1,388 |
(400) |
(340) |
(60) |
29,826 |
41,316 |
0.30 |
0.53 |
MMA - institutional |
44 |
109 |
(65) |
(47) |
(18) |
132,963 |
170,933 |
1.21 |
1.66 |
Time deposits, $100M or
more |
800 |
1,408 |
(608) |
(384) |
(224) |
44,646 |
46,549 |
0.74 |
0.84 |
Time deposits,
broker |
165 |
194 |
(29) |
(23) |
(6) |
119,025 |
148,428 |
1.19 |
1.54 |
Other time deposits |
709 |
1,135 |
(426) |
(259) |
(167) |
712,454 |
803,284 |
0.80 |
1.12 |
Total interest-bearing deposits |
2,834 |
4,465 |
(1,631) |
(1,163) |
(468) |
23,463 |
24,472 |
2.99 |
3.46 |
Short-term/other borrowings |
350 |
420 |
(70) |
(57) |
(13) |
15,460 |
15,243 |
2.04 |
2.32 |
FHLB advances |
157 |
175 |
(18) |
(21) |
3 |
10,310 |
10,310 |
3.15 |
2.93 |
Subordinated debt |
162 |
150 |
12 |
11 |
1 |
|
|
|
|
|
|
|
|
|
|
761,687 |
853,309 |
0.92 |
1.23 |
Total interest-bearing liabilities |
3,503 |
5,210 |
(1,707) |
(1,230) |
(477) |
115,137 |
92,366 |
|
|
Noninterest-bearing deposits |
|
|
|
|
|
3,652 |
3,797 |
|
|
Other liabilities |
|
|
|
|
|
84,615 |
86,722 |
|
|
Shareholders' equity |
|
|
|
|
|
$ 965,091 |
$1,036,194 |
|
|
Liabilities and equity |
|
|
|
|
|
|
|
3.80 |
3.70 |
Interest rate spread |
|
|
|
|
|
|
|
3.91 |
3.82 |
Net interest margin |
|
|
|
|
|
|
|
|
|
Net interest income |
$ 17,021 |
$ 17,895 |
$ (874) |
$ 965 |
$(1,839) |
$ 110,881 |
$ 91,918 |
|
|
Net earning assets |
|
|
|
|
|
$ 827,591 |
$ 895,650 |
|
|
Average deposits |
|
|
|
|
|
|
|
0.69 |
1.01 |
Average cost of deposits |
|
|
|
|
|
86% |
87% |
|
|
Average loan to deposit ratio (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) This table shows the changes
in interest income and interest expense for the comparative periods
based on either changes in average volume or changes in average
rates for interest-earning assets and interest-bearing
liabilities. Changes which are not solely due to rate changes
or solely due to volume changes are attributed to
volume. |
(b) The taxable equivalent
adjustment of $16 in the first six months of 2012 and 2011 results
from tax exempt income less non-deductible TEFRA interest
expense. |
(c) Average nonaccruing loans
have been excluded from total average loans and categorized in
noninterest-earning assets. |
(d) Average investment
securities do not include the unrealized gain/loss on available for
sale investment securities. |
The Savannah Bancorp,
Inc. and Subsidiaries |
Reconciliation of
Non-GAAP Financial Measures |
(Unaudited) |
|
|
|
For the |
|
Three Months Ended |
|
June 30, |
($ in thousands) |
2012 |
2011 |
Pre-tax Core Earnings |
|
|
Income (loss) before income taxes |
$ 541 |
$ (2,667) |
Add: Provision for loan
losses |
2,540 |
6,300 |
Add: Loss on
foreclosed assets |
785 |
1,115 |
Less: Gain on
sale of securities |
(23) |
(237) |
Pre-tax core earnings |
$ 3,843 |
$ 4,511 |
|
|
|
|
June 30, |
|
2012 |
2011 |
Tangible Book Value per
Share |
|
|
Book value per share |
$ 11.63 |
$ 11.83 |
Less: Effect
to adjust for intangible assets |
0.48 |
0.51 |
Tangible book value per share |
$ 11.15 |
$ 11.32 |
|
|
|
Tangible Equity to Tangible
Assets |
|
|
Equity to assets |
8.79% |
8.49% |
Less: Effect
to adjust for intangible assets |
0.33% |
0.33% |
Tangible equity to tangible assets |
8.46% |
8.16% |
CONTACT: John C. Helmken II
President and CEO
(912) 629-6486
Michael W. Harden, Jr.
Chief Financial Officer
(912) 629-6496
The Savannah Bancorp, Inc. (MM) (NASDAQ:SAVB)
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