Net income for the year ended
"The current operating environment is challenging with continuing
deterioration in our economy and the historically low interest rates resulting
from actions by our Federal Reserve System," stated
During 2008, the company recorded a
Non-performing assets totaled
Total assets were
Deposits grew to
The Company's book value per share was
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the three months and
year ended
Three Months Year Ended December 31, Ended December 31, 2008 2007 2008 2007 (Dollars and shares in thousands, except per share data) Summary Results of Operations Data: Interest income $9,508 $10,536 $40,212 $39,520 Interest expense 5,163 6,154 21,853 22,781 Net interest income 4,345 4,382 18,359 16,739 Provision for loan losses 1,211 760 3,161 2,050 Net interest income after provision for loan losses 3,134 3,622 15,198 14,689 Noninterest income 342 273 (399) 1,262 Noninterest expense 3,110 2,762 12,321 10,875 Income before taxes 366 1,133 2,478 5,076 Income tax expense (benefit) (4) 363 626 1,641 Net income $370 $770 $1,852 $3,435 Reconciliation of GAAP to Non-GAAP Measures Net income, as reported (GAAP) $370 $770 $1,852 $3,435 Non-operating items: Impairment charge on FNMA stock, net of income tax 59 - 1,257 - Gain on property held for sale, net of income tax - - - (210) Operating earnings (net income, excluding non-operating items) $429 $770 $3,109 $3,225 Per Share Data: Net income, basic $0.12 $0.26 $0.62 $1.17 Net income, diluted $0.12 $0.24 $0.58 $1.06 Book value $13.07 $12.99 $13.07 $12.99 Weighted average number of shares outstanding: Basic 3,037 2,946 2,998 2,942 Diluted 3,144 3,212 3,167 3,234 Performance Ratios: Return on average assets (1) 0.21% 0.50% 0.27% 0.60% Return on average equity (1) 3.77% 8.00% 4.70% 9.40% Net interest margin (1) 2.61% 2.92% 2.80% 3.05% Efficiency ratio (2) 66.34% 59.35% 68.60% 60.41% Growth Ratios and Other Data: Percentage change in net income from the same period of the previous year (51.9)% (46.1)% Percentage change in diluted net income per Share from the same period of the previous year (50.0)% (45.3)% (1) Annualized for the three month period.
(2) Computed by dividing noninterest expense by the sum of net interest income, excluding the gain on sale and impairment charge on securities and real estate activity, and noninterest income.
SUMMARY OF CONSOLIDATED FINANCIAL DATA, CONTINUED At December 31, 2008 2007 (Dollars in thousands) Summary Balance Sheet Data: Assets $692,979 $628,129 Investment securities 85,412 87,507 Loans (3) 566,607 508,850 Allowance for loan losses 7,006 5,751 Deposits 469,538 412,821 Federal Home Loan Bank Advances and related debt 164,675 158,520 Junior subordinate debentures 13,403 13,403 Shareholders' equity 39,786 38,278 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (3) 1.73% 0.92% Nonperforming assets, past due and restructured loans to total assets 1.42% 0.75% Net charge-offs year to date to average total loans (3) 0.35% 0.27% Allowance for loan losses to nonperforming loans 91.00% 129.65% Allowance for loan losses to total loans (3) 1.24% 1.13% Capital Ratios: Average equity to average assets 5.69% 6.35% Leverage ratio 7.74% 8.31% Tier 1 risk-based capital ratio 9.30% 10.02% Total risk-based capital ratio 10.44% 11.15% Growth Ratios and Other Data: Percentage change in assets 10.32% Percentage change in loans (3) 11.35% Percentage change in deposits 13.74% Percentage change in equity 3.94% Loans to deposit ratio (3) 120.67% (3) Includes nonperforming loans.
EXPLANATION OF USE OF CERTAIN NON-GAAP FINANCIAL MEASURES AND FORWARD-LOOKING
STATEMENTS
This press release contains financial information determined by methods other than in accordance with Generally Accepted Accounting Principles ("GAAP"). The attached financial highlights provide reconciliations between GAAP net income and operating earnings, which is a non-GAAP measure. The company's management believes that such non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare the company's operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP, and investors should consider the company's impairment charge on the FNMA preferred stock in the third and fourth quarters of 2008 and the gain on property held for sale in the first six months of 2007 when assessing the performance of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results as reported under GAAP.
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations projected growth, or loan quality, and are thus prospective. Such forward- looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, changes in the credit markets, greater than expected non-interest expenses, excessive loan losses and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. For a more detailed description of factors that could cause or contribute to such differences, please see our filings with the Securities and Exchange Commission.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
FINANCIAL CONTACT: JIM AUSTIN 864-679-9070 MEDIA CONTACT: EDDIE TERRELL 864-679-9016 WEB SITE: www.southernfirst.com
SOURCE Southern First Bancshares, Inc.