Exhibit 99.1
SECURITY BANK CORPORATION ANNOUNCES
FIRST QUARTER 2009 FINANCIAL RESULTS
AND BANKS ENTER AGREEMENTS WITH FDIC AND STATE
Macon, GA., April 24, 2009 / GlobeNewswire/ — Security Bank Corporation (Nasdaq: SBKC) today reported a net loss of $18.5 million for the first quarter ended March 31, 2009, compared with a net loss of $24.2 million for the first quarter of 2008. Diluted loss for the first quarter of 2009 was $0.79 per share compared to a loss of $1.22 per share for the comparable year ago period. The reduction in net loss for the first quarter of 2009 was primarily driven by a $30.1 million decrease in the provision for loan losses which more than offset a decrease in net interest income of $10.9 million. On a pre-tax, pre-provision basis, losses for the first quarter of 2009 were $8.2 million versus income of $3.8 million for the first quarter of 2008.
Security Bank Corporation also announced today that five of its six banking subsidiaries have entered into Cease and Desist Orders with the Federal Deposit Insurance Corporation (FDIC) and with the State of Georgia Department of Banking and Finance. The orders set forth requirements for the banks to take actions to address capital levels and lending policies, and place restrictions on dividends by the banks to Security Bank Corporation and restrictions on brokered deposits, among other items. Security Bank Corporation has also withdrawn its application to participate in the TARP Capital Purchase Program.
Deposit and retirement accounts continue to be insured for a minimum of $250,000 per depositor by the FDIC through December 2009. Because Security Bank is participating in the FDIC’s Transaction Account Guarantee Program, most types of checking accounts are insured without limit.
Tony E. Collins, Security Bank Corporation’s President and CEO commented, “Our financial results continue to be impacted by the unprecedented economic conditions we are facing, as the residential housing market remains under significant pressure. The consent orders highlight a process that involves working with the FDIC and State to reduce the risks in our lending portfolio and improve the quality of our asset management. We have been working closely with our regulators throughout this process and have already initiated many of the steps outlined in the orders. We greatly appreciate the continued support of our customers and our employees who remain committed to providing our customers with the highest level of service.”
Liquidity
Security Bank Corporation currently has approximately $481 million of available liquidity in the form of cash and cash equivalents, unpledged securities and available secured fed funds lines. This represents approximately 17% of total assets as of March 31, 2009.
Asset Quality
Nonperforming assets (nonaccrual loans and OREO) at the end of first quarter 2009 were $391 million, or 14.0% of total assets compared to 11.5% at the end of the fourth quarter of 2008 and 7.9% at the end of the first quarter in 2008. While Security Bank Corporation sold $7 million of OREO during the first quarter of 2009, new properties totaling approximately $19 million were moved to OREO from nonaccrual loans. Approximately $91 million of loans were placed on nonaccrual status during the first quarter. Security Bank Corporation charged-off approximately $18 million in loans resulting in net charge-offs to average loans of 3.7% annualized for the first quarter of 2009, a decrease from 5.9% in net charge-offs to average loans annualized for the fourth quarter of 2008. Net charge-offs to average loans were 4.4% annualized for the first quarter of 2008. Security Bank Corporation increased its allowance for loan losses to 2.8% of loans receivable at March 31, 2009, or $53.5 million versus 2.3% of loans or $49.7 million at March 31, 2008.
Balance Sheet
Loans receivable totaled $1.93 billion at March 31, 2009, down 12% from $2.18 billion at March 31, 2008. On a sequential basis, loans declined 11% annualized with a 3% annualized decline in the middle and coastal Georgia markets, a 19% annualized decline in the Atlanta market and a 14% annualized decline in Security Real Estate Services, Inc.
Total deposits were $2.40 billion at March 31, 2009 an increase of 4% from $2.31 billion at March 31, 2008 and decreased 1.5% from $2.44 billion at December 31, 2008. Total assets decreased 1% to $2.79 billion at March 31, 2009, compared to $2.82 billion at March 31, 2008, and decreased 2% compared with $2.85 billion at December 31, 2008.
Tangible shareholders’ equity at March 31, 2009 declined to $64.1 million from $179.4 million at March 31, 2008, primarily reflecting net losses incurred during the period.
Net Interest Income
Net interest income for the first quarter of 2009 was $3.9 million, a decrease of 74% from $14.8 million when compared to the first quarter of 2008. The decrease is primarily the result of a decline in the net interest margin and the significant increase in non-performing assets in Security Bank Corporation’s loan portfolio. The net interest margin (on a fully tax-equivalent basis (“FTE”)) was 0.60% for the quarter ended
March 31, 2009, compared to 1.02% for the fourth quarter of 2008 and 2.33% for the comparable period one year ago. The decrease in the net interest margin in the first quarter of 2009 on a year-over-year and sequential quarterly basis was the result of costs associated with the current credit cycle, including carrying costs and reversals of interest for nonaccruing loans, liquidity costs, the decline in market interest rates and the asset-sensitive nature of the balance sheet.
Noninterest Income and Expense
Noninterest income for the first quarter of 2009 decreased $1.0 million to $4.8 million compared to the first quarter of 2008 due primarily to a decrease in mortgage banking fees of $1.0 million. During the fourth quarter of 2008 Security Bank Corporation outsourced its personal mortgage-lending department to a mortgage company in Texas.
Noninterest expense for the first quarter of 2009 was $16.9 million, a decrease of $19.0 million sequentially, and essentially flat with the first quarter 2008 level. Excluding increased credit cycle costs and increases in foreclosure expenses, losses on sales of OREO and FDIC insurance premiums, noninterest expense was down $2.3 million or 22% over the first quarter 2008 level. The decline in controllable noninterest expense was primarily due to reduced salary and benefits expense and the elimination of directors’ fees at the holding company and bank level.
Investor Contact: | Lorraine D Miller, CFA | |
Senior Vice President | ||
478.722.6210 | ||
Media Contact: | Tom Woodbery | |
Senior Vice President | ||
478.796.6007 |
This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are “tangible book value,” “tangible equity to tangible assets” and “return on average tangible equity.” Security Bank Corporation’s management uses these non-GAAP measures in its analysis of Security Bank Corporation’s performance.
Tangible book value is defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Security Bank Corporation that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Tangible equity to tangible assets is the ratio of tangible equity defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits, to tangible assets defined as total assets reduced by recorded intangible assets, net of related deferred tax benefits. Tangible equity to tangible assets is an important measure of Security Bank Corporation’s capital strength without the effects of purchase accounting as noted above. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period or year-to-
date period, as applicable) divided by average equity reduced by average goodwill and other intangible assets, net of related deferred tax benefits. Security Bank Corporation’s management includes this measure because it believes that it is important when measuring Security Bank Corporation’s performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and many investors use this measure as part of their analysis of Security Bank Corporation.
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. Please refer to the “Reconciliation Table” in the attached schedules for a more detailed analysis of these non-GAAP measures and the most directly comparable GAAP measures.
About Security Bank Corporation
Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.8 billion at March 31, 2009. Security Bank Corporation operates six community banks with banking offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta.
Security Bank Corporation common stock is traded on the NASDAQ Global Select Market under the ticker symbol “SBKC.” You may obtain copies of all documents that Security Bank Corporation files with the Securities and Exchange Commission, free of charge, at the SEC’s website atwww.sec.gov or on Security Bank Corporation’s website at www.securitybank.net under the “Investor Information” tab, including the Cease and Desist Orders referenced in this release that Security Bank Corporation will file on Form 8-K on April 24, 2009. In addition, copies of these documents may also be obtained from us without charge by directing a written request to Security Bank Corporation, 4219 Forsyth Road, Macon, Georgia 31210, Attention: Investor Relations.
Safe Harbor
This press release contains forward-looking statements as defined by federal securities laws, including statements about Security Bank Corporation’s loan loss provisions, capital or liquidity adequacy, deferred tax asset and any potential impairment, net charge-offs, non-performing assets, net interest margin changes, compliance with regulatory orders, the overall economic cycle and its impact on real estate values in Security Bank Corporation’s markets, loan growth, and Security Bank Corporation’s long-term prospects, among others. Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements may address issues involving significant risks, uncertainties, estimates and assumptions made by management. Security Bank Corporation’s ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Security Bank Corporation believes that the expectations and estimates reflected in its forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Please refer to Security Bank Corporation’s public filings with the Securities and Exchange Commission for a summary of important factors and risk factors that could affect Security Bank Corporation’s financial results and operations and its forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Security Bank Corporation does not intend, and undertakes no responsibility to update or revise any forward looking statement, whether as a result of difference in actual results, changes in assumptions or changes in other factors affecting such statements, except as required by law.
Security Bank Corporation
Selected Consolidated Financial Data
(Dollars in Thousands, except Per Share Amounts)
Unaudited
Quarters Ended March 31, | |||||||||||
2009 | 2008 | % Change | |||||||||
RESULTS SUMMARY: | |||||||||||
Net interest income | $ | 3,907 | $ | 14,799 | -73.6 | % | |||||
Provision for loan losses | 12,108 | 42,199 | -71.3 | % | |||||||
Noninterest income | 4,849 | 5,862 | -17.3 | % | |||||||
Foreclosed property expenses | 1,949 | 1,373 | 42.0 | % | |||||||
Losses (gains) on sales of ORE | 2,523 | 274 | 820.8 | % | |||||||
Other noninterest expense | 12,439 | 15,260 | -18.5 | % | |||||||
Income taxes | (1,811 | ) | (14,247 | ) | -87.3 | % | |||||
Net income (loss) | (18,452 | ) | (24,198 | ) | -23.7 | % | |||||
PER SHARE: | |||||||||||
Basic earnings (loss) | $ | (0.79 | ) | $ | (1.22 | ) | -35.2 | % | |||
Diluted earnings (loss) | (0.79 | ) | (1.22 | ) | -35.2 | % | |||||
Cash dividends declared | — | 0.088 | -100.0 | % | |||||||
Book value | 2.83 | 13.34 | -78.8 | % | |||||||
Tangible book value | 2.75 | 7.72 | -64.4 | % | |||||||
KEY PERFORMANCE RATIOS (a): | |||||||||||
Return on average tangible equity | -97.91 | % | -53.31 | % | |||||||
Return on average assets | -2.63 | % | -3.45 | % | |||||||
Efficiency ratio | 193.14 | % | 81.83 | % | |||||||
Net interest margin (FTE) | 0.60 | % | 2.33 | % | |||||||
Net charge-offs to average loans | 3.73 | % | 4.43 | % | |||||||
BALANCE SHEET SUMMARY - END OF PERIOD | |||||||||||
Investment securities | $ | 404,689 | $ | 306,018 | 32.2 | % | |||||
Mortgage loans Held for sale | — | 5,759 | -100.0 | % | |||||||
Loans receivable | 1,928,758 | 2,181,557 | -11.6 | % | |||||||
Allowance for loan losses | 53,545 | 49,749 | 7.6 | % | |||||||
Total assets | 2,786,149 | 2,818,477 | -1.1 | % | |||||||
Deposits | 2,402,469 | 2,309,671 | 4.0 | % | |||||||
Other borrowed money | 289,673 | 170,066 | 70.3 | % | |||||||
Shareholders' equity | 65,934 | 309,876 | -78.7 | % | |||||||
Tangible equity to tangible assets | 2.30 | % | 6.67 | % | -65.5 | % | |||||
ASSET QUALITY - END OF PERIOD | |||||||||||
Nonaccrual loans | $ | 285,308 | $ | 186,520 | 53.0 | % | |||||
Loans 90 Days Past Due and Accruing | — | 68 | -100.0 | % | |||||||
Other real estate owned | 105,581 | 35,749 | 195.3 | % | |||||||
Total nonperforming assets | 390,889 | 222,337 | 75.8 | % | |||||||
Allowance for loan losses/loans | 2.78 | % | 2.28 | % |
(a) | Income annualized based on number of days in the period, except efficiency ratio |
NOTE: Refer to the attached GAAP to non-GAAP reconciliation
Security Bank Corporation
Average Balance Sheet and Net Interest Income Analysis
(Dollars in Thousands)
Unaudited
Quarter Ended March 31, 2009 | ||||||||||
Average Balance | Income/ Expense | Yield/ Rate | ||||||||
ASSETS | ||||||||||
Earning assets: | ||||||||||
Interest-bearing deposits and fed funds sold | $ | 300,772 | $ | 129 | 0.17 | % | ||||
Investment securities | 401,072 | 3,320 | 3.36 | % | ||||||
Mortgage Loans Held for Sale | 0 | 0 | 0.00 | % | ||||||
Loans | 1,955,732 | 23,891 | 4.95 | % | ||||||
Other earning assets | 1,238 | 17 | 5.57 | % | ||||||
Total earning assets | 2,658,814 | 27,357 | 4.17 | % | ||||||
Non-earning assets | 187,659 | |||||||||
Total assets | $ | 2,846,473 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Interest-bearing liabilities: | ||||||||||
Savings and interest-bearing transaction | $ | 377,679 | $ | 1,655 | 1.78 | % | ||||
Time deposits | 1,921,980 | 18,907 | 3.99 | % | ||||||
Borrowings | 295,752 | 2,875 | 3.94 | % | ||||||
Total interest-bearing liabilities | 2,595,411 | 23,437 | 3.66 | % | ||||||
Noninterest-bearing liabilities: | ||||||||||
Noninterest bearing deposits | 145,065 | |||||||||
Other noninterest-bearing liabilities | 27,605 | |||||||||
Total liabilities | $ | 2,768,081 | ||||||||
Shareholders’ Equity | 78,392 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,846,473 | ||||||||
Interest rate spread | 0.51 | % | ||||||||
Net interest income | $ | 3,920 | ||||||||
Net interest margin (FTE) | 0.60 | % |
Security Bank Corporation (SBKC)
Selected Financial Information
(Amounts in thousands, except per share data)
2009 | 2008 | 2007 | |||||||||||||||||||
1st Quarter | Dec. 31/YTD | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | Dec. 31/YTD | |||||||||||||||
Period-End Balance Sheet | |||||||||||||||||||||
Total Assets | $ | 2,786,149 | $ | 2,846,054 | $ | 2,846,054 | $ | 2,888,353 | $ | 2,877,383 | $ | 2,818,477 | $ | 2,833,071 | |||||||
Interest-Bearing Deposits and Fed Funds Sold | 252,189 | 277,472 | 277,472 | $ | 14,556 | $ | 94,665 | $ | 25,466 | 13,627 | |||||||||||
Total Securities | 404,689 | 407,343 | 407,343 | 347,020 | 342,994 | 306,018 | 305,399 | ||||||||||||||
Mortgage Loans held for Sale | — | — | — | 4,780 | 6,192 | 5,759 | 7,605 | ||||||||||||||
Loans: | |||||||||||||||||||||
Commercial Real-Estate | 866,580 | 906,909 | 906,909 | 942,075 | 983,733 | 963,384 | 947,371 | ||||||||||||||
Construction/A&D (2) | 623,461 | 652,806 | 652,806 | 715,631 | 772,179 | 862,532 | 898,690 | ||||||||||||||
Personal Real-Estate | 158,249 | 157,405 | 157,405 | 152,604 | 160,878 | 157,040 | 158,244 | ||||||||||||||
Other | 280,468 | 264,356 | 264,356 | 239,799 | 225,472 | 198,601 | 178,008 | ||||||||||||||
Total Loans | 1,928,758 | 1,981,476 | 1,981,476 | 2,050,109 | 2,142,262 | 2,181,557 | 2,182,313 | ||||||||||||||
Allowance for loan losses | 53,545 | 59,437 | 59,437 | 60,442 | 48,452 | 49,749 | 31,698 | ||||||||||||||
Other earning assets | 1,238 | 1,238 | 1,238 | 1,238 | 1,238 | 1,238 | 1,238 | ||||||||||||||
Total Earning Assets | 2,586,874 | 2,667,529 | 2,667,529 | 2,417,703 | 2,587,351 | 2,520,038 | 2,510,182 | ||||||||||||||
Cash and Due From Banks | 34,955 | 37,216 | 37,216 | 283,238 | 117,970 | 71,313 | 91,644 | ||||||||||||||
Other Real Estate | 105,581 | 94,717 | 94,717 | 83,362 | 62,814 | 35,749 | 28,175 | ||||||||||||||
Intangibles: | |||||||||||||||||||||
Goodwill | — | — | — | 18,373 | 18,373 | 128,074 | 128,571 | ||||||||||||||
Core-Deposit | 3,038 | 3,241 | 3,241 | 3,444 | 3,647 | 3,879 | 4,125 | ||||||||||||||
Deposits: | |||||||||||||||||||||
Demand Deposits | 147,942 | 153,006 | 153,006 | 145,416 | 172,610 | 164,842 | 158,759 | ||||||||||||||
Interest bearing deposits | 2,254,527 | 2,285,130 | 2,285,130 | 2,257,138 | 2,283,016 | 2,144,829 | 2,139,946 | ||||||||||||||
Total Deposits | 2,402,469 | 2,438,136 | 2,438,136 | 2,402,554 | 2,455,626 | 2,309,671 | 2,298,705 | ||||||||||||||
Fed Funds purchased & repo agreements | 25,999 | 36,844 | 36,844 | 31,343 | 36,084 | 31,328 | 68,417 | ||||||||||||||
Other borrowed funds | 263,674 | 263,777 | 263,777 | 266,558 | 180,340 | 138,738 | 137,909 | ||||||||||||||
Shareholders Equity | 65,934 | 84,708 | 84,708 | 166,662 | 183,285 | 309,876 | 306,693 | ||||||||||||||
Average Balance Sheet | |||||||||||||||||||||
Total Assets | $ | 2,846,473 | $ | 2,870,635 | $ | 2,900,222 | $ | 2,863,228 | $ | 2,877,604 | $ | 2,818,622 | $ | 2,591,947 | |||||||
Total Securities | 401,072 | 338,437 | 362,556 | 345,775 | 348,677 | 296,395 | 216,610 | ||||||||||||||
Mortgage Loans held for Sale | — | 4,129 | 1,994 | 3,869 | 4,782 | 5,896 | 6,328 | ||||||||||||||
Loans: | |||||||||||||||||||||
Commercial Real-Estate | 883,298 | 954,279 | 918,047 | 965,881 | 974,558 | 958,903 | 907,729 | ||||||||||||||
Construction/A&D | 640,090 | 777,000 | 688,792 | 742,968 | 802,453 | 875,131 | 825,302 | ||||||||||||||
Personal Real-Estate | 157,932 | 157,160 | 154,547 | 158,421 | 157,616 | 158,069 | 153,682 | ||||||||||||||
Other | 274,412 | 231,497 | 262,853 | 240,954 | 219,744 | 201,989 | 195,286 | ||||||||||||||
Total Loans | 1,955,732 | 2,119,936 | 2,024,239 | 2,108,224 | 2,154,371 | 2,194,092 | 2,081,999 | ||||||||||||||
Other earning assets | 302,010 | 161,701 | 287,946 | 170,505 | 100,342 | 55,246 | 36,866 | ||||||||||||||
Total Earning Assets | 2,658,814 | 2,624,203 | 2,676,735 | 2,628,373 | 2,608,172 | 2,551,629 | 2,341,803 | ||||||||||||||
Cash and Due From Banks | 32,114 | 27,031 | 29,382 | 44,079 | 34,520 | 35,272 | 51,442 | ||||||||||||||
Other Real Estate | 97,843 | 63,459 | 88,808 | 77,300 | 53,994 | 33,299 | 15,970 | ||||||||||||||
Deposits: | |||||||||||||||||||||
Demand Deposits | 145,065 | 154,173 | 141,830 | 157,289 | 162,222 | 155,389 | 163,712 | ||||||||||||||
Interest bearing deposits | |||||||||||||||||||||
Savings | 13,862 | 14,978 | 14,090 | 15,112 | 15,741 | 14,979 | 16,005 | ||||||||||||||
NOW | 310,956 | 348,413 | 302,184 | 333,136 | 376,409 | 382,597 | 373,522 | ||||||||||||||
Money Market | 52,861 | 86,857 | 58,768 | 81,446 | 96,607 | 110,976 | 145,619 | ||||||||||||||
Time deposits > $100,000 | 1,082,354 | 1,082,546 | 1,107,146 | 1,099,022 | 1,067,626 | 1,061,895 | 892,248 | ||||||||||||||
Time deposits < $100,000 | 839,626 | 680,342 | 790,572 | 709,688 | 637,784 | 575,833 | 521,923 | ||||||||||||||
Total Deposits | 2,444,724 | 2,367,309 | 2,414,590 | 2,395,693 | 2,356,389 | 2,301,669 | 2,113,029 | ||||||||||||||
Fed Funds purchased & repo agreements | 32,642 | 37,535 | 37,697 | 32,168 | 39,601 | 44,745 | 43,881 | ||||||||||||||
Other borrowed funds | 263,110 | 199,771 | 265,201 | 230,453 | 171,993 | 130,379 | 100,430 | ||||||||||||||
Shareholders Equity | 78,392 | 240,934 | 160,690 | 184,340 | 306,580 | 313,635 | 313,504 |
Security Bank Corporation (SBKC)
Selected Financial Information
(Amounts in thousands, except per share data)
2009 | 2008 | 2007 | ||||||||||||||||||||||||||
1st Quarter | Dec. 31/YTD | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | Dec. 31/YTD | ||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||||
Interest Income | $ | 27,344 | $ | 145,948 | $ | 31,367 | $ | 36,150 | $ | 37,689 | $ | 40,742 | $ | 192,840 | ||||||||||||||
Interest Expense | 23,437 | 98,526 | 24,544 | 24,126 | 23,913 | 25,943 | 102,316 | |||||||||||||||||||||
Net Interest Income | 3,907 | 47,422 | 6,823 | 12,024 | 13,776 | 14,799 | 90,524 | |||||||||||||||||||||
Loan loss provision | 12,108 | 128,070 | 29,129 | 26,359 | 30,383 | 42,199 | 32,660 | |||||||||||||||||||||
Service charges on deposit accounts | 1,915 | 9,183 | 2,218 | 2,425 | 2,253 | 2,287 | 9,363 | |||||||||||||||||||||
Securities Gains (Losses) | 2,626 | 3,334 | 1,299 | — | 1 | 2,034 | (3 | ) | ||||||||||||||||||||
Other income | 308 | 6,118 | 402 | 1,339 | 2,836 | 1,541 | 9,622 | |||||||||||||||||||||
Total noninterest income | 4,849 | 18,635 | 3,919 | 3,764 | 5,090 | 5,862 | 18,982 | |||||||||||||||||||||
Salaries and benefits | 6,255 | 31,623 | 7,004 | 7,803 | 8,080 | 8,736 | 35,061 | |||||||||||||||||||||
Occupancy and equipment | 1,751 | 6,401 | 1,503 | 1,848 | 1,501 | 1,549 | 6,189 | |||||||||||||||||||||
Foreclosed Property Expenses | 1,949 | 7,003 | 2,202 | 2,104 | 1,324 | 1,373 | 2,879 | |||||||||||||||||||||
Losses (Gains) on Sales of ORE | 2,523 | 8,235 | 2,487 | 3,904 | 1,570 | 274 | 1,944 | |||||||||||||||||||||
Other noninterest expense | 4,433 | 147,826 | 22,681 | 5,391 | 114,779 | 4,975 | 21,002 | |||||||||||||||||||||
Total noninterest expense | 16,911 | 201,088 | 35,877 | 21,050 | 127,254 | 16,907 | 67,075 | |||||||||||||||||||||
Pre-tax earnings (loss) | (20,263 | ) | (263,101 | ) | (54,264 | ) | (31,621 | ) | (138,771 | ) | (38,445 | ) | 9,771 | |||||||||||||||
Income Taxes | (1,811 | ) | (8,735 | ) | 34,310 | (11,472 | ) | (17,326 | ) | (14,247 | ) | 3,183 | ||||||||||||||||
Net income (loss) | $ | (18,452 | ) | $ | (254,366 | ) | $ | (88,574 | ) | $ | (20,149 | ) | $ | (121,445 | ) | $ | (24,198 | ) | $ | 6,588 | ||||||||
Earnings (loss) per share-basic | $ | (0.79 | ) | $ | (11.36 | ) | $ | (3.81 | ) | $ | (0.87 | ) | $ | (5.23 | ) | $ | (1.22 | ) | $ | 0.35 | ||||||||
Earnings (loss) per share-diluted | $ | (0.79 | ) | $ | (11.36 | ) | $ | (3.81 | ) | $ | (0.87 | ) | $ | (5.23 | ) | (1.22 | ) | 0.34 | ||||||||||
End of period shares outstanding | 23,274,639 | 23,274,639 | 23,274,639 | 23,259,539 | 23,248,585 | 23,233,634 | 18,912,264 | |||||||||||||||||||||
Weighted average diluted shares o/s | 23,274,639 | 22,387,908 | 23,265,091 | 23,247,824 | 23,235,668 | 19,810,520 | 19,225,069 | |||||||||||||||||||||
Tax equivalent adjustment | 13 | 94 | 15 | 15 | 15 | 50 | 445 | |||||||||||||||||||||
Net interest income (FTE) | 3,920 | 47,516 | 6,838 | 12,039 | 13,791 | 14,849 | 90,969 | |||||||||||||||||||||
Effective Tax Rate | 8.94 | % | 3.32 | % | -63.23 | % | 36.28 | % | 12.49 | % | 37.06 | % | 32.58 | % | ||||||||||||||
Stock and related per share data: | ||||||||||||||||||||||||||||
Book value | $ | 2.83 | $ | 3.64 | $ | 3.64 | $ | 7.17 | $ | 7.88 | $ | 13.34 | $ | 16.22 | ||||||||||||||
Tangible book value | 2.75 | 3.55 | 3.55 | 6.28 | 7.00 | 7.72 | 9.28 | |||||||||||||||||||||
Dividends declared per share | — | 0.1313 | — | — | 0.0438 | 0.0875 | 0.35 | |||||||||||||||||||||
Other Key Ratios/Data: | ||||||||||||||||||||||||||||
Return on average tangible equity (1) | -97.91 | % | -153.17 | % | -250.92 | % | -48.95 | % | -275.40 | % | -53.31 | % | 3.63 | % | ||||||||||||||
Return on average assets (1) | -2.63 | % | -8.86 | % | -12.15 | % | -2.80 | % | -16.97 | % | -3.45 | % | 0.25 | % | ||||||||||||||
Net interest margin (FTE) (1) | 0.60 | % | 1.81 | % | 1.02 | % | 1.82 | % | 2.13 | % | 2.33 | % | 3.88 | % | ||||||||||||||
Efficiency ratio (FTE) | 192.84 | % | 303.98 | % | 333.54 | % | 133.21 | % | 673.98 | % | 81.63 | % | 61.00 | % | ||||||||||||||
Tangible Equity/Tangible Assets | 2.30 | % | 2.91 | % | 2.91 | % | 5.10 | % | 5.69 | % | 6.67 | % | 6.50 | % | ||||||||||||||
Loan Performance Data: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 285,308 | $ | 232,436 | $ | 232,436 | $ | 199,907 | $ | 186,139 | $ | 186,520 | $ | 50,635 | ||||||||||||||
Loans 90 Days Past Due and Accruing | — | 146 | 146 | — | — | 68 | 242 | |||||||||||||||||||||
Other real estate (ORE) | 105,581 | 94,717 | 94,717 | 83,362 | 62,814 | 35,749 | 28,175 | |||||||||||||||||||||
Total nonperforming assets | 390,889 | 327,299 | 327,299 | 283,269 | 248,953 | 222,337 | 79,052 | |||||||||||||||||||||
Net charge-offs | 18,000 | 100,331 | 30,134 | 14,369 | 31,680 | 24,148 | 23,298 | |||||||||||||||||||||
Reversal of Interest | 1,456 | 6,751 | 1,487 | 968 | 1,268 | 3,028 | 1,874 | |||||||||||||||||||||
Forfeited Interest from NPA’s | 5,025 | 16,477 | 4,773 | 4,704 | 4,259 | 2,741 | 4,435 | |||||||||||||||||||||
Allowance for loan losses/loans | 2.78 | % | 3.00 | % | 3.00 | % | 2.95 | % | 2.26 | % | 2.28 | % | 1.45 | % | ||||||||||||||
NPA’s/Loans plus ORE | 19.21 | % | 15.76 | % | 15.76 | % | 13.28 | % | 11.29 | % | 10.03 | % | 3.58 | % | ||||||||||||||
Nonperforming assets/total assets | 14.03 | % | 11.50 | % | 11.50 | % | 9.81 | % | 8.65 | % | 7.89 | % | 2.79 | % | ||||||||||||||
Net charge-offs to average loans (1) | 3.73 | % | 4.73 | % | 5.92 | % | 2.71 | % | 5.91 | % | 4.43 | % | 1.12 | % |
(1) | The actual number of days in the period was used to annualize income |
(2) | At March 31, 2009, approximately 60% of loans were residential and 40% of loans were commercial. |
NOTE: Refer to the attached GAAP to non-GAAP reconciliation
Security Bank Corporation (SBKC)
GAAP Reconciliation Table
(Amounts in thousands, except per share data)
2009 | 2008 | 2007 | ||||||||||||||||||||||||||
1st Quarter | Dec 31/YTD | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | Dec 31/YTD | ||||||||||||||||||||||
Reconciliation Table- GAAP to non-GAAP: | ||||||||||||||||||||||||||||
Book Value per share | $ | 2.83 | $ | 3.64 | $ | 3.64 | $ | 7.17 | $ | 7.88 | $ | 13.34 | $ | 16.22 | ||||||||||||||
Effect of intangible assets per share | (0.08 | ) | (0.09 | ) | (0.09 | ) | (0.89 | ) | (0.88 | ) | (5.62 | ) | (6.94 | ) | ||||||||||||||
Tangible book value | $ | 2.75 | $ | 3.55 | $ | 3.55 | $ | 6.28 | $ | 7.00 | $ | 7.72 | $ | 9.28 | ||||||||||||||
Equity | $ | 65,934 | $ | 84,708 | $ | 84,708 | $ | 166,662 | $ | 183,285 | $ | 309,876 | $ | 306,693 | ||||||||||||||
Intangible assets | 3,038 | 3,241 | 3,241 | 21,817 | 22,020 | 131,953 | 132,696 | |||||||||||||||||||||
Less tax effect of Core-Deposit Intangible (38%) | (1,154 | ) | (1,232 | ) | (1,232 | ) | (1,309 | ) | (1,386 | ) | (1,474 | ) | (1,568 | ) | ||||||||||||||
Tangible equity | $ | 64,050 | $ | 82,699 | $ | 82,699 | $ | 146,154 | $ | 162,651 | $ | 179,397 | $ | 175,565 | ||||||||||||||
Assets | $ | 2,786,149 | $ | 2,846,054 | $ | 2,846,054 | $ | 2,888,353 | $ | 2,877,383 | $ | 2,818,477 | $ | 2,833,071 | ||||||||||||||
Intangible assets | 1,884 | 2,009 | 2,009 | 20,508 | 20,634 | 130,479 | 131,129 | |||||||||||||||||||||
Tangible assets | $ | 2,784,265 | $ | 2,844,045 | $ | 2,844,045 | $ | 2,867,845 | $ | 2,856,749 | $ | 2,687,998 | $ | 2,701,942 | ||||||||||||||
Equity/Assets | 2.37 | % | 2.98 | % | 2.98 | % | 5.77 | % | 6.37 | % | 10.99 | % | 10.83 | % | ||||||||||||||
Effect of intangible assets | -0.07 | % | -0.07 | % | -0.07 | % | -0.67 | % | -0.68 | % | -4.32 | % | -4.33 | % | ||||||||||||||
Tangible Equity/Tangible Assets | 2.30 | % | 2.91 | % | 2.91 | % | 5.10 | % | 5.69 | % | 6.67 | % | 6.50 | % | ||||||||||||||
Average Equity | $ | 78,392 | $ | 240,934 | $ | 160,690 | $ | 184,340 | $ | 306,580 | $ | 313,635 | $ | 313,504 | ||||||||||||||
Average Intangible assets | 3,165 | 76,263 | 21,540 | 21,944 | 130,657 | 132,599 | 133,878 | |||||||||||||||||||||
Less tax effect of Core-Deposit Intangible (38%) | (1,203 | ) | (1,402 | ) | (1,279 | ) | (1,357 | ) | (1,440 | ) | (1,533 | ) | (1,763 | ) | ||||||||||||||
Average tangible equity | $ | 76,430 | $ | 166,073 | $ | 140,429 | $ | 163,753 | $ | 177,363 | $ | 182,569 | $ | 181,389 | ||||||||||||||
Net Income (loss) | (18,452 | ) | $ | (254,366 | ) | $ | (88,574 | ) | $ | (20,149 | ) | $ | (121,445 | ) | $ | (24,198 | ) | $ | 6,588 | |||||||||
Return on average tangible equity (a) | -97.91 | % | -153.17 | % | -250.92 | % | -48.95 | % | -275.40 | % | -53.31 | % | 3.63 | % |
(a) | The actual number of days in the period were used to annualize income |