Business & Finance
Business and Finance
Business and Finance
Fri, July 31, 2009
Thu, July 30, 2009 Teche Holding Company: Teche Holding Company Earns Record $2.42 per Share in First Nine Months
FRANKLIN, LA--(Marketwire - July 30, 2009) - Teche Holding Company (
Fiscal year-to-date, Teche's net income was a record $2.42 per diluted share compared to $1.64 per diluted share for the fiscal nine months ended June 30, 2008.
For the past four quarters, Teche income was a solid $3.41 per share.
"We generated another healthy quarterly profit in our third quarter and are on pace for a record year with increased SmartGrowth deposits and loans boosting our net interest margin," said Patrick O. Little, President and Chief Executive Officer.
"These notable results were generated despite an ongoing national recession, economic uncertainties, and two items that reduced diluted earnings per share $0.42 so far this year. Specifically we booked impairment charges of $0.30 per diluted share related to our securities portfolio and an FDIC special assessment (levied on all insured banks) of $0.12 per share. During these difficult times, our dedicated employees continue to provide excellent customer service which resulted in an increase in both SmartGrowth deposits and loans," said Little. SmartGrowth deposits are made up of Teche's core deposits and exclude time deposits. SmartGrowth loans consist of all loans, excluding home mortgage loans.
"As a result of rebuilding efforts following several seasons of major devastating hurricanes, economic conditions in South Louisiana continue to be more favorable than in the rest of the U.S.," continued Little. "In fact, the State's appeal as a place for business continues to grow with Louisiana's solid diversified economy, low unemployment rates and its resilient housing market."
According to the Louisiana Economic Development Economic Highlights reported in March 2009, job growth was higher and unemployment was lower than the rest of the nation, which together led to a positive year in 2008 for population growth and immigration. Dozens of companies announced expansions in or relocations to Louisiana, kicking off projects that will result in over 17,000 new jobs, $2.5 billion in new capital investment, $45 million per year in new state tax revenues and billions of dollars in new sales for small businesses (Source: Louisiana Economic Development, The Economic Year in Review, created 3/13/2009).
Fiscal Third Quarter Financial 2009 Highlights
-- Record fiscal year to date EPS of $2.42. -- Fiscal year to date operating revenue increased 8.1% to a record $33.5 million. -- Net interest margin (NIM) expanded to 4.12% for the quarter, up 20 basis points in the quarter and 36 basis points from a year ago. -- Fiscal year to date return on average tangible equity of 10.13%, return on average assets of 0.88%. -- Net interest income increased 13.2%, to $7.5 million from $6.7 million. -- SmartGrowth Deposits increased 7.3%, or $25.3 million from June 30, 2008, and accounted for 61% of total deposits. -- SmartGrowth Loans increased 8.3% to $462.1 million from $426.6 million at June 30, 2008, and account for 74.7% of total loans. -- Asset quality remains strong, with nonperforming assets at 1.27% of total assets and quarterly net charge-offs of only 0.03% of average loans. -- Teche paid 57 consecutive cash dividends since June 1995 and consistently increased annual cash dividends to its present $1.40 per share, generating an annualized yield of 4.32%. -- Teche capital ratios remained well above the regulatory requirements for well-capitalized institutions, with a solid total risk-based capital ratio of 12.15% compared to 11.64% as of June 30, 2008. Tangible common equity to tangible assets stood at 8.44% compared to 8.11% a year earlier.
OPERATING RESULTS
"Our record profits for the past nine months of fiscal 2009 are nothing short of remarkable, considering the state of the national economy," said Little. "Even with the fact that we booked $0.42 per share in various charges this fiscal year, Teche still is posting record bottom line earnings."
"We were also very pleased with our return on assets and return on equity," said Little. Fiscal year to date, the annualized return on average assets was 0.88% and return on average tangible equity was 10.13%. In this same quarter in fiscal 2008, the company booked charges totaling $4.1 million resulting in a loss of $0.22 per share.
"Our top-line results are even more impressive," said Little. Revenues for the quarter, consisting of net interest income (before provision for loan losses) plus non-interest income, increased 9.1% to a record $11.6 million for the fiscal third quarter, compared to $10.6 million for fiscal third quarter 2008, reflecting strong loan and deposit quality and expanding net interest margin.
For the first nine months of fiscal 2009, revenue increased 8.1% to a record $33.5 million, compared to $31.0 million for the first nine months of fiscal 2008. Net interest income before the provision for loan losses increased 12.3% to $21.4 million for the first nine months of fiscal 2009, compared to $19.1 million for the same period a year ago.
The table below reflects Teche's operating revenues in millions over the past five quarters.
Jun Mar Dec Sep Jun Operating Revenue '09 '09 '08 '08 '08 ------ ------ ------ ------ ------ Net Interest Income $ 7.6 $ 7.1 $ 6.8 $ 6.8 $ 6.7 Non Interest Income $ 4.0 $ 4.1 $ 4.0 $ 3.9 $ 3.9 ------ ------ ------ ------ ------ Operating Revenue $ 11.6 $ 11.2 $ 10.8 $ 10.7 $ 10.6 ====== ====== ====== ====== ======
Fiscal third quarter 2009 marked the seventh consecutive quarter of NIM expansion for Teche as the company benefits from the success of its SmartGrowth strategy. For the first nine months of fiscal 2009, net interest margin was 3.96% compared to 3.71% for the first nine months of fiscal 2008.
"While our loan yields fell by 34 basis points, we reduced our cost of funds by 79 basis points, thus expanding our net interest margin by 36 basis points to 4.12%, for the quarter, compared to 3.76% in the third fiscal quarter a year ago and 3.92% in the linked quarter," remarked Little.
Net interest income, before provision for loan losses increased 13.2% to $7.5 million in fiscal third quarter of 2009 compared to $6.7 million in fiscal third quarter a year ago.
Non-interest income remained relatively stable. For the quarter, non-interest income amounted to 2.04% of average assets, down slightly compared to 2.11% for the linked quarter and 2.06% a year ago. Fiscal year to date, non-interest income was 2.07% of average assets compared to 2.14% for the same period in fiscal 2008.
For the quarter, non-interest expense was $8.2 million or 4.15% of average assets, compared to the linked quarter of $7.7 million or 3.94% of average assets, an increase of 6.9%, primarily due to a special FDIC assessment. Compared to the same quarter in fiscal 2008, non-interest expense decreased from $9.0 million, or 4.69% of average assets, to $8.2 million or 4.15%, primarily due to unusual charges in fiscal 2008.
ASSET QUALITY
"We remain focused on credit quality and capital adequacy, and we compare favorably to our peers on both measures," stated Little. "As a result of our solid commitment to sound underwriting standards, effective servicing and diligent collection efforts, our credit quality remained strong, and we believe our strong credit culture will continue to serve us well. The bulk of the increase in nonperforming assets (NPAs) is in our mortgage loan sector, where our market has experienced very little decline in home values. The result has been very low charge-offs. We believe we are well secured."
The following table sets forth asset quality ratios for each quarter over the last year:
Jun '09 Mar '09 Dec '08 Sep '08 Jun '08 ------- ------- ------- ------- ------- Net Charge-offs/Loans 0.03% 0.03% 0.01% 0.01% 0.04% ALLL/NPLs 74.30% 84.60% 87.00% 86.80% 121.10% ALLL/NPAs 68.00% 77.80% 78.80% 82.00% 103.70% ALLL/Loans 1.10% 1.05% 0.93% 0.94% 0.93% Non-Accrual Loans/Loans 1.07% 0.84% 0.81% 0.64% 0.56% NPAs/Assets 1.27% 1.05% 0.93% 0.88% 0.68% ------- ------- ------- ------- -------
Net charge-offs in fiscal third quarter were $192,000, or 0.03% of average loans, compared to $213,000, or 0.04% of average loans, for the same period a year ago. For the first nine months of fiscal 2009, net charge-offs totaled $449,000, or 0.07% of average loans, compared to $278,000, or 0.05% of average loans for the first nine months of fiscal 2008.
The allowance for loan and lease losses (ALLL) increased to $6.8 million, or 1.10% of total loans at quarter end, compared with $5.5 million, or 0.93% of total loans, at June 30, 2008, in part reflecting growth in the loan portfolio and non-performing loans. At March 31, 2009, the allowance for loan and lease losses was $6.5 million, or 1.05% of total loans.
Nonperforming assets totaled $10.1 million, or 1.27% of total assets, at June 30, 2009, compared to $8.3 million, or 1.05% of total assets at March 31, 2009, and $5.3 million, or 0.68% of total assets, a year ago. Nonperforming assets consist of non-accrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned.
BALANCE SHEET
Teche's total assets increased 1.7% to $789.5 million, at June 30, 2009, compared to $776.7 million a year ago, but decreased from $795.5 million at March 31, 2009 with lower levels of cash and securities in the portfolio. Total net loans grew 5.3% to $612.0 million at June 30, 2009, compared to $581.3 million a year ago and less than one percent compared to $607.1 million at March 31, 2009. Teche originated $59.5 million in loans during the current quarter, including $48.9 million in SmartGrowth loans, of which $29.6 million were commercial loans..
At June 30, 2009 SmartGrowth Loans comprised 74.7% of the total loan portfolio, compared to 72.7% a year ago. SmartGrowth Loans increased 8.3% to $462.1 million at June 30, 2009 compared to $426.6 million a year ago, and increased 1.4% from $455.7 million at March 31, 2009. Consumer and commercial loans increased 13.1% and 9.4% respectively over the past year. Consumer loans now total $106.6 million at June 30, 2009 and commercial loans increased to $209.1 million. "We have again posted solid gains in both commercial and consumer loans this past quarter and have been encouraged by the gradual increase in our SmartGrowth Loans," commented Little.
SmartGrowth deposits increased 7.3% to $370.9 million at June 30, 2009 compared to $345.6 million a year ago. Following the run off of $28.3 million of high cost time deposits, total deposits were $605.4 million at June 30, 2009, compared $608.4 million at June 30, 2008. SmartGrowth Deposits Accounts at June 30, 2009 were 61.3% of total deposits compared to 56.8% a year ago.
"Checking deposits were down seasonally this quarter," said Little, "but based on the last nine months we expect to book another year-over-year gain in checking and total SmartGrowth deposits again this year."
Stockholders' equity remained stable at $70.1 million, as earnings of $1.7 million for the quarter were offset primarily due to cash dividends and stock repurchases during the quarter.
Total cash and securities in the portfolio continued to gradually decline to $127.4 million from $142.8 million a year ago. The vast majority of our securities are government-sponsored enterprise mortgage-backed securities, with only $4.7 million, or 0.60% of total assets in private label mortgage backed securities. Of these securities, approximately 55% are rated AAA, AA or A at June 30, 2009.
Private Label Mortgage Backed Securities as of June 30, 2009 Carrying Value as of June 30, 2009 ------------------ Percent Face $ in % of of Bond Ratings Value Millions Face Assets --------- --------- -------- -------- AAA to A $ 3.4 $ 2.6 76% 0.33% BBB to B $ 2.0 $ 1.7 85% 0.21% CCC to C $ 2.5 $ 0.5 20% 0.06% --------- --------- -------- -------- $ 7.9 $ 4.7 59% 0.60% ========= ========= ======== ========
CAPITAL ADEQUACY
"Our capital and liquidity levels remain healthy and consequently, we did not see the need to participate in the TARP program," added Little. "We continue to believe that this decision best serves our customers, employees and shareholders due to the government's unclear mandate and changing restrictions on participating banks. We have the necessary resources to continue making high quality loans to businesses and consumers in our market. In addition, we will continue to prudently deploy our resources to the benefit of our customers and our shareholders."
Teche's capital ratios were very strong at the end of fiscal third quarter and all capital ratios continue to exceed the "well-capitalized" requirements established by banking regulators.
The Tier 1 capital ratio was 11.17% at June 30, 2009, compared with 11.02% at March 31, 2009 and 10.64% at June 30, 2008. Total risk-based ratio was 12.15% at June 30, 2009, compared with 11.98% at March 31, 2009 and 11.64% at June 30, 2008.
Tangible shareholders' equity improved to $66.4 million, or 8.44% of total assets at June 30, 2009, compared with $62.7 million, or 8.11% of total assets at June 30, 2008. Book value per share increased to $33.43 at June 30, 2009, from $31.47 a year ago and tangible book value per share increased to $31.67 at quarter end from $29.70 a year ago.
On June 30, 2009, Teche paid a $0.35 per share quarterly cash dividend to shareholders, generating an annualized yield of 4.23% based on the recent share price. Teche has paid 57 consecutive quarterly cash dividends since June 1995. "Because of the solid performance of our balance sheet, we are able to continue rewarding shareholders with quarterly cash dividends," Little noted.
ABOUT TECHE HOLDING COMPANY
Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and provides various deposit, loan and investments services to over 60,000 customers. Founded in 1934, Teche Federal Bank is the fourth largest publicly traded (
Teche Federal Bank has earned a Four Star-Rating of "Excellent" from Bauer Financial, Inc., based on March 31, 2009 results. Bauer Financial is an independent rating agency that has been reporting on and analyzing the performance of U.S. banks since 1983. Bauer Financial's Star Ratings are based on the Call Report data that all banks are required to file quarterly with the FDIC. Criteria used to determine the appropriate rating includes, but is not limited to: 1) the capital ratio (net worth to total assets), 2) liquidity, 3) profitability and 4) the level of delinquent loans. Click here to access the Bauer Financial website: [ www.bauerfinancial.com ].
[ www.teche.com ]
Statements contained in this news release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by Teche Holding Company with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Statements of Income (UNAUDITED) Three months Three months Three months ended ended ended June March June 2009 2009 2008 ------------ ------------ ----------- Interest Income $ 11,130 $ 11,013 $ 11,465 Interest Expense 3,583 3,950 4,798 ------------ ------------ ----------- Net Interest Income 7,547 7,063 6,667 Provision for Loan Losses 550 1,035 295 ------------ ------------ ----------- Net Interest Income after Provision for Loan Losses 6,997 6,028 6,372 Non Interest Income 4,036 4,114 3,951 Non Interest Expense 8,204 7,678 8,977 ------------ ------------ ----------- Income Before Gain on Sales of Securities and Income Taxes 2,829 2,464 1,346 Gain (Loss) on Securities (434) 18 (2,581) Income Taxes 662 826 (759) ------------ ------------ ----------- Net Income (loss) $ 1,733 $ 1,656 $ (476) ============ ============ =========== Selected Financial Data ------------ ------------ ----------- Dividends Declared Per Share $ 0.35 $ 0.35 $ 0.345 Basic Earnings (Loss) Per Common Share $ 0.82 $ 0.78 $ (0.22) Diluted Earnings (Loss) Per Common Share $ 0.81 $ 0.78 $ (0.22) Annualized Return on Avg. Assets 0.88% 0.85% (0.25)% Annualized Return on Avg. Equity 9.55% 9.24% (2.79)% Annualized Return on Avg. Tangible Equity (1) 10.11% 9.79% (2.89)% Yield on Interest Earning Assets 6.07% 6.11% 6.47 % Cost of Interest Bearing Liabilities 2.22% 2.47% 3.01 % Spread 3.85% 3.64% 3.46 % Net Interest Margin 4.12% 3.92% 3.76 % Non-Interest Income/Avg. Assets 2.04% 2.11% 2.06 % Non-Interest Expense/Avg. Assets 4.15% 3.94% 4.69 % Quarterly Net Charge Offs/Avg. Loans 0.03% 0.03% 0.04 % Weighted avg. shares Outstanding Basic 2,107 2,118 2,118 Diluted 2,125 2,128 2,118 AVERAGE BALANCE SHEET DATA ------------ ------------ ----------- Total Assets $ 790,499 $ 780,054 $ 766,358 Earning assets $ 733,368 $ 720,998 $ 708,836 Loans $ 615,616 $ 606,951 $ 607,091 Interest-bearing deposits $ 538,403 $ 532,033 $ 545,711 Total deposits $ 611,738 $ 596,291 $ 600,763 Total stockholders' equity $ 72,568 $ 71,689 $ 68,283 (1) Eliminates the effect of goodwill and the core deposit intangible assets and the related amortization expense on a tax-effected basis. The amount was calculated using the following information Average Stockholders' Equity $ 72,568 $ 71,689 $ 68,283 Less average goodwill and other intangible assets, net of related income taxes 3,703 3,708 3,733 ------------ ------------ ----------- Average Tangible Equity $ 68,865 $ 67,981 $ 64,550 ============ ============ =========== Net Income (Loss) $ 1,733 $ 1,656 $ (476) Plus Amortization of core deposit intangibles, net of related income taxes 7 7 10 ------------ ------------ ----------- Net Income (Loss), as adjusted $ 1,740 $ 1,663 $ (466) TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Statements of Income (UNAUDITED) Nine months Nine months ended ended June June 2009 2008 ------------ ------------ Interest Income $ 33,357 $ 34,217 Interest Expense 11,912 15,113 ------------ ------------ Net Interest Income 21,445 19,104 Provision for Loan Losses 1,740 665 ------------ ------------ Net Interest Income after Provision for Loan Losses 19,705 18,439 Non Interest Income 12,104 11,940 Non Interest Expense 23,478 22,948 ------------ ------------ Income Before Gain on Sales of Securities and Income Taxes 8,331 7,431 Gain (Loss) on Securities (852) (2,581) Income Taxes 2,326 1,260 ------------ ------------ Net Income $ 5,153 $ 3,590 ============ ============ Selected Financial Data ------------ ------------ Dividends Declared Per Share $ 1.05 $ 1.02 Basic Earnings Per Common Share $ 2.44 $ 1.66 Diluted Earnings Per Common Share $ 2.42 $ 1.64 Annualized Return on Avg. Assets 0.88% 0.64% Annualized Return on Avg. Equity 9.57% 6.96% Annualized Return on Avg. Tangible Equity (1) 10.13% 7.42% Yield on Interest Earning Assets 6.16% 6.64% Cost of Interest Bearing Liabilities 2.49% 3.27% Spread 3.67% 3.38% Net Interest Margin 3.96% 3.71% Non-Interest Income/Avg. Assets 2.07% 2.14% Non-Interest Expense/Avg. Assets 4.01% 4.11% FYTD Charge Offs/Avg. Loans 0.07% 0.05% Weighted avg. shares Outstanding Basic 2,114 2,166 Diluted 2,131 2,183 AVERAGE BALANCE SHEET DATA ------------ ------------ Total Assets $ 780,224 $ 744,468 Earning assets $ 721,646 $ 686,565 Loans $ 606,072 $ 590,694 Interest-bearing deposits $ 532,405 $ 522,774 Total deposits $ 602,766 $ 576,013 Total stockholders' equity $ 71,814 $ 68,761 (1) Eliminates the effect of goodwill and the core deposit intangible assets and the related amortization expense on a tax-effected basis. The amount was calculated using the following information Average Stockholders' Equity $ 71,814 $ 68,761 Less average goodwill and other intangible assets, net of related income taxes 3,712 3,742 Average Tangible Equity $ 68,102 $ 65,019 ============ ============ Net Income $ 5,153 $ 3,590 Plus Amortization of core deposit intangibles, net of related income taxes 22 29 ------------ ------------ Net Income, as adjusted $ 5,175 $ 3,619 ============ ============ TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Balance Sheets (UNAUDITED) at June 30, Mar. 31, Sept. 30, June 30, 2009 2009 2008 2008 --------- --------- --------- --------- SmartGrowth Loans Consumer $ 106,563 $ 104,524 $ 98,632 $ 94,242 Commercial 209,091 204,973 187,791 191,085 Home Equity 58,216 57,852 55,713 55,180 Alternative Mortgage Loans 88,200 88,305 87,404 86,060 --------- --------- --------- --------- Total SmartGrowth Loans 462,070 455,654 429,540 426,567 Mortgage Loans (owner occupied conforming) 156,759 157,954 160,596 160,243 --------- --------- --------- --------- 618,829 613,608 590,136 586,810 Allowance for Loan Losses (6,836) (6,478) (5,545) (5,470) --------- --------- --------- --------- Loans Receivable, Net 611,993 607,130 584,591 581,340 Cash and Securities 127,441 139,149 135,819 142,771 Goodwill and Other Intangibles 3,723 3,734 3,756 3,767 Foreclosed Real Estate 604 672 343 759 Other 45,752 44,811 44,979 48,041 --------- --------- --------- --------- TOTAL ASSETS $ 789,513 $ 795,496 $ 769,488 $ 776,678 ========= ========= ========= ========= SmartGrowth Deposits Checking $ 168,733 $ 175,477 $ 144,601 $ 144,375 Money Market 108,668 120,865 130,399 145,887 Savings 93,485 78,944 55,390 55,296 --------- --------- --------- --------- Total SmartGrowth Deposits 370,886 375,286 330,390 345,558 Time Deposits 234,556 236,403 258,838 262,862 --------- --------- --------- --------- Total Deposits 605,442 611,689 589,228 608,420 FHLB Advances 106,890 107,089 104,877 96,246 Other Liabilities 7,129 6,656 7,339 5,609 Stockholders' Equity 70,052 70,062 68,044 66,403 --------- --------- --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 789,513 $ 795,496 $ 769,488 $ 776,678 ========= ========= ========= ========= Ratio of Equity to Assets 8.87% 8.81% 8.84% 8.55% Tangible Equity Ratio (2) 8.44% 8.38% 8.40% 8.11% Risk-Based Capital Ratio 12.15% 11.98% 12.21% 11.64% Book Value per Common Share $ 33.43 $ 33.08 $ 32.12 $ 31.47 Tangible Book Value Per Common Share (2) $ 31.67 $ 31.33 $ 30.37 $ 29.70 Non-performing Assets/Total Assets 1.27% 1.05% 0.88% 0.68% Shares Outstanding (in thousands) 2,095 2,118 2,118 2,110 (2) Eliminates the effect of goodwill and the core deposit intangible assets and the related accumulated amortization on a tax-effected basis. The amount was calculated using the following information: Stockholders' Equity $ 70,052 $ 70,062 $ 68,044 $ 66,403 Less goodwill and other Intangible assets, net of related income taxes (3,697) (3,704) (3,721) (3,726) --------- --------- --------- --------- Tangible Stockholders' Equity $ 66,355 $ 66,358 $ 64,323 $ 62,677 ========= ========= ========= ========= Total Assets $ 789,513 $ 795,496 $ 769,488 $ 776,678 Less goodwill and other Intangible assets, net of related income taxes (3,697) (3,704) (3,721) (3,726) --------- --------- --------- --------- Total Tangible Assets $ 785,816 $ 791,792 $ 765,767 $ 772,952 ========= ========= ========= ========= Allowance for Loan Loss (in 000's) JUN '09 MAR '09 DEC '08 SEP '08 JUN '08 ======== ======== ======== ======== ======= Beginning ALLL $ 6,478 $ 5,631 $ 5,545 $ 5,470 $ 5,388 Provision for Loan Losses 550 1,035 155 160 295 Net Charge-offs 192 188 69 85 213 Ending ALLL $ 6,836 $ 6,478 $ 5,631 $ 5,545 $ 5,470 Quarter-End Loan Data 90 Days + 90 Days + June 30, 2009 Total Charge- Charge- Non Non Loans Offs Offs Accrual Accrual Dollars Dollars Percentage Dollars Percentage --------- ---------- --------- ---------- --------- Real Estate Loans Construction $ 26,778 $ 0 0.0% $ 54 0.20% Permanent, Secured by: 1-4 Dwelling Units: Revolving, Open-End Loans 16,443 0 0.00% 50 0.30% All Other Secured by First Liens 330,075 53 0.02% 4,325 1.31% Secured by Junior Liens 13,761 0 0.00% 82 0.60% Multifamily (5+ Dwelling Units) 25,749 0 0.00% 2,724 10.58% Nonresidential Property (Except Land) 82,159 4 0.00% 1,043 1.27% Land 36,177 0 0.00% 402 1.11% Non-Real Estate Loans: Commercial Loans 29,518 51 0.17% 199 0.67% Consumer Loans: Loans on Deposits 7,936 1 0.01% 84 1.06% Auto Loans 3,127 28 0.90% 10 0.32% Mobile Home Loans 40,285 44 0.11% 211 0.52% Other 6,821 11 0.16% 12 0.18% --------- ---------- ---------- Gross Loans $ 618,829 $ 192 0.03% $ 9,196 1.49% ========= ========== ========== Non-accruals $ 6,627 OREO & Foreclosed 856 90 + Days Past Due 2,569 --------- Nonperforming Assets $ 10,052 ========= NPAs/Assets 1.27% NPAs/(Loans + OREO) 1.62% LLR/Loans 1.10% Net Charge-offs/ Loans 0.03% Average Loan Balances & Yields Linked Quarter Comparison 06/30/2009 03/30/2009 Change Change Balance Yield Balance Yield Balance Yield ----------- ----- ----------- ----- ---------- ----- Real Estate Loans 1-4 Family $ 373,458 6.20% $ 374,209 6.26% $ (751) -0.06% Commercial 135,699 6.11% 127,325 6.15% 8,374 -0.04% ----------- ----------- ---------- 509,157 6.17% 501,534 6.23% 7,623 -0.06% Non-Real Estate Loans Commercial 30,158 6.38% 28,849 6.37% 1,309 -0.01% Consumer 77,859 9.30% 76,567 9.17% 1,292 0.13% ----------- ----------- ---------- 108,017 8.49% 105,416 8.40% 2,601 -0.09% ----------- ----------- ---------- Total All Loans $ 617,174 6.58% $ 606,950 6.61% $ 10,224 -0.03% =========== =========== ========== Average Loan Balances & Yields Prior Year Comparison 06/30/2009 06/30/2008 Change Change Balance Yield Balance Yield Balance Yield ----------- ----- ----------- ----- ---------- ----- Real Estate Loans 1-4 Family $ 373,458 6.20% $ 396,464 6.49% $ (23,006) -0.29% Commercial 135,699 6.11% 118,425 6.96% 17,274 -0.85% ----------- ----------- ---------- 509,157 6.17% 514,889 6.60% (5,732) -0.43% Non-Real Estate Loans Commercial 30,158 6.38% 25,651 7.02% 4,507 -0.64% Consumer 77,859 9.30% 67,799 9.35% 10,060 -0.05% ----------- ----------- ---------- 108,017 8.49% 93,450 8.71% 14,567 -0.22% ----------- ----------- ---------- Total All Loans $ 617,174 6.58% $ 608,339 6.92% $ 8,835 -0.34% =========== =========== ========== Interest-bearing Liabilities: Linked Quarter Comparison Average balances 06/30/2009 03/31/2009 Change Change % $ Avg. $ Avg. $ Avg. Balance Balance Yield Balance Yield Balance Yield Change -------- ---- -------- ---- ------- ----- ------ NOW Accounts $106,830 0.48% $102,831 0.60% $ 3,999 -0.12% 3.9% Non-interest bearing Deposits 66,278 0.00% 64,437 0.00% 1,841 0.00% 2.6% -------- ---- -------- ---- ------- ----- ------ Checking Total 173,108 0.30% 167,268 0.37% 5,840 -0.07% 3.5% Savings Accounts 86,301 0.87% 65,605 0.90% 20,696 -0.03% 31.5% Money Market Accounts 114,771 0.91% 120,379 1.46% (5,608) -0.55% -4.7% -------- ---- -------- ---- ------- ----- ------ Total SmartGrowth Deposits 374,180 0.62% 353,252 0.84% 20,928 -0.22% 5.9% Time Deposits 230,896 3.13% 243,039 3.27% (12,143) -0.14% -5.0% Total Deposits $605,076 1.58% $596,291 1.83% $ 8,785 -0.25% 1.5% FHLB Advances 106,193 4.51% 106,795 4.57% (602) -0.06% -0.6% -------- -------- ------- Total Interest- bearing liabilities $644,991 2.22% $638,649 2.47% $ 6,342 -0.25% 1.0% ======== ======== ======= Interest-bearing Liabilities: Prior Year Comparison Average balances 06/30/2009 06/30/2008 Change Change % $ Avg. $ Avg. $ Avg. Balance Balance Yield Balance Yield Balance Yield Change -------- ---- -------- ---- ------- ----- ------ NOW Accounts $106,830 0.48% $ 85,869 0.51% $20,961 -0.03% 24.4% Non-interest bearing Deposits 66,278 0.00% 56,195 0.00% 10,083 0.00% 17.9% -------- ---- -------- ---- ------- ----- ------ Checking Total 173,108 0.30% 142,064 0.31% 31,044 -0.01% 21.9% Savings Accounts 86,301 0.87% 54,479 0.76% 31,822 0.11% 58.4% Money Market Accounts 114,771 0.91% 147,934 2.38% (33,163) -1.47% -22.4% -------- ---- -------- ---- ------- ----- ------ Total SmartGrowth Deposits 374,180 0.62% 344,477 1.27% 29,703 -0.65% 8.6% Time Deposits 230,896 3.13% 257,429 4.09% (26,533) -0.96% -10.3% Total Deposits $605,076 1.58% $601,906 2.48% $ 3,170 -0.90% 0.5% FHLB Advances 106,193 4.51% 92,646 4.62% 13,547 -0.11% 14.6% -------- -------- ------- Total Interest- bearing liabilities $644,991 2.22% $638,357 3.01% $ 6,634 -0.79% 1.0% ======== ======== =======
