The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported a net loss for
the second quarter 2011 of $1,492,000 compared to a net loss of
$62,000 for the second quarter 2010. Net loss per diluted share was
21 cents in the second quarter of 2011 compared to a net loss per
diluted share of 1 cent in 2010. The quarter over quarter decrease
in earnings resulted primarily from an increase in the provision
for loan losses and losses on the sale and write-down of foreclosed
assets. These losses were partially offset by higher net interest
income. Pretax earnings before the provision for loan losses and
gain/loss on sale of securities and foreclosed assets increased
$858,000 or 23 percent to $4,511,000 in the second quarter 2011
compared to the second quarter 2010. The Company's largest
subsidiary, The Savannah Bank, N.A., continued to be profitable in
the second quarter. Other growth and performance ratios are
included in the attached financial highlights.
Total assets decreased 19 percent to $1.00 billion at June 30,
2011, down $233 million from $1.23 billion a year earlier. Loans
totaled $808 million compared to $849 million one year earlier, a
decrease of $41 million or 4.9 percent. Deposits totaled $857
million and $1.07 billion at June 30, 2011 and 2010, respectively,
a decrease of 20 percent. On June 25, 2010, The Savannah Bank, N.A.
entered into an agreement with the FDIC to purchase approximately
$201 million in deposits and certain other liabilities and assets
of First National Bank, Savannah ("First National"). Since
this transaction, the Company has allowed much of its brokered and
higher priced time deposits to run-off in order to reduce this
excess liquidity and improve its net interest margin. Shareholders'
equity was $85.1 million at June 30, 2011 compared to $89.6 million
at June 30, 2010. The Company's total capital to risk-weighted
assets ratio was 12.37 percent at June 30, 2011, which exceeds the
10 percent required by the regulatory agencies to maintain
well-capitalized status.
John C. Helmken II, President and CEO, said, "As noted above,
our pre-tax, pre-provision income increased 23 percent over second
quarter 2010. Our net interest income for the quarter
increased to over $9 million which was 9.2 percent higher than the
same quarter of last year. Our quarterly net interest margin
increased to 3.91 percent in 2011 from 3.54 percent last
year. The net interest margin also increased 18 basis points
from the first quarter of this year. We remain confident in
our direction and strategy.
"The strong core and fundamental operating results of this
quarter were overshadowed by the continued slide in area real
estate values that required us to impair and reserve against real
estate loans, a significant portion of which continue to perform as
agreed. Our discipline of revaluing collateral and other real
estate owned, with the Bryan Bank cycle being concluded in the
second quarter, drove the quarterly loss."
The allowance for loan losses was $23,523,000, or 2.91 percent
of total loans at June 30, 2011 compared to $18,775,000 or 2.21
percent of total loans a year earlier. Nonperforming assets
were $51,435,000 or 5.13 percent of total assets at June 30, 2011
compared to $48,978,000 or 3.97 percent at June 30,
2010. Second quarter net charge-offs were $5,140,000 compared
to net charge-offs of $4,581,000 for the same period in
2010. The provision for loan losses for the second quarter of
2011 was $6,300,000 compared to $3,745,000 for the second quarter
of 2010. The higher provision for loan losses was primarily
due to real estate related charge-offs and continued weakness in
the Company's local real estate markets.
Helmken continued, "We continue to work at controlling and
maximizing the variables that we can. Our margin and net
interest income have increased each of the last three
quarters. Compared to the second quarter of 2010, salaries and
benefits are down 6.8 percent and information technology expense is
down 20 percent. As we said last quarter and prior to that,
with strong capital levels and core earnings, we will aggressively
address any asset quality issues. Our allowance for loan
losses is now $23.5 million, or almost three percent of loan
balances."
Net interest income increased $759,000, or 9.2 percent, in the
second quarter 2011 versus the second quarter 2010. Second
quarter net interest margin increased to 3.91 percent in 2011 as
compared to 3.54 percent in the second quarter of 2010. The
increase was primarily due to a lower cost on interest-bearing
deposits partially offset by a decrease in the yield on
interest-earning assets. The cost of interest-bearing deposits
decreased to 1.06 percent in the second quarter 2011 from 1.54
percent for the same period in 2010, primarily due to the repricing
of time deposits. The yield on earning assets decreased from
5.07 percent for the second quarter of 2010 to 4.97 percent for the
second quarter of 2011 which was primarily a result of the Company
holding, on average, $31.8 million more in lower yielding
interest-bearing deposits and investments during the second quarter
of 2011 than the same period in 2010. The Company received
$190 million in cash when it acquired the deposits and certain
assets of First National in June, 2010 and much of this liquidity
was invested in interest-bearing deposits and investments. On
a linked quarter basis, the net interest margin increased 18 basis
points compared to the first quarter of 2011. The Company on
average held $23.5 million less in lower-yielding interest-bearing
deposits and investments during the second quarter of 2011 compared
to the first quarter of 2011. The Company continues to
aggressively manage the pricing on deposits and the use of
wholesale funds to mitigate the amount of margin compression.
Noninterest income decreased $19,000, or 1.1 percent, in the
second quarter of 2011 versus the same period in 2010. Service
charges on deposit accounts declined $112,000 in 2011 primarily due
to recent regulatory guidance related to NSF/overdraft
charges. This decline was partially offset by a $96,000
increase in the gain on sale of securities during the second
quarter of 2011 compared to the same period in 2010.
Noninterest expense increased $570,000, or 8.7 percent, to
$7,109,000 in the second quarter 2011 compared to the same period
in 2010. The increase in noninterest expense was mainly
attributable to a $784,000 or 237 percent increase in loss on sale
and write-down of foreclosed assets. Salaries and employee
benefits decreased $207,000 or 6.8 percent in the second quarter
2011. In addition information technology expense declined
$103,000 or 20 percent and FDIC deposit insurance premiums were
down $74,000 or 18 percent. The Company renegotiated and
renewed its contract with its core processor resulting in the
decline in its information technology expense. The decrease in
the FDIC insurance premiums was due to changes to the FDIC
assessment process which became effective in the second quarter of
2011.
The Savannah Bancorp, Inc. ("SAVB" or "Company"), a bank holding
company for The Savannah Bank, N.A., Bryan Bank & Trust
(Richmond Hill, Georgia), and Minis & Co., Inc., is
headquartered in Savannah, Georgia and began operations in
1990. SAVB 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.
Forward-Looking Statements
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934 as amended by
the Private Securities Litigation Reform Act of 1995. 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. 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 transactions 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 our Annual Report on Form 10-K,
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, which are based on current expectations. We do
not assume any obligation to update any forward-looking statements
as a result of new information, future developments or
otherwise.
The Savannah Bancorp,
Inc. and Subsidiaries |
Second Quarter
Financial Highlights |
($ in thousands, except share
data) |
(Unaudited) |
|
|
|
|
Balance Sheet Data at June
30 |
2011 |
2010 |
% Change |
|
Total assets |
$1,002,254 |
$1,234,817 |
(19) |
Interest-earning assets |
910,717 |
1,137,863 |
(20) |
Loans |
807,533 |
848,852 |
(4.9) |
Other real estate owned |
12,125 |
7,793 |
56 |
Deposits |
857,482 |
1,070,445 |
(20) |
Interest-bearing liabilities |
817,675 |
1,049,175 |
(22) |
Shareholders' equity |
85,134 |
89,594 |
(5.0) |
Loan to deposit ratio |
94.17% |
79.30% |
19 |
Equity to assets |
8.49% |
7.26% |
17 |
Tier 1 capital to risk-weighted assets |
11.29% |
12.10% |
(6.7) |
Total capital to risk-weighted assets |
12.36% |
13.36% |
(7.5) |
Outstanding shares |
7,199 |
7,201 |
0.0 |
Book value per share |
$11.83 |
$12.44 |
(4.9) |
Tangible book value per share |
$11.32 |
$12.09 |
(6.4) |
Market value per share |
$7.41 |
$9.76 |
(24) |
|
|
Loan Quality Data |
|
|
|
Nonaccruing loans |
$39,160 |
$39,001 |
0.4 |
Loans past due 90 days – accruing |
150 |
2,184 |
(93) |
Net charge-offs |
7,487 |
7,968 |
(6.0) |
Allowance for loan losses |
23,523 |
18,775 |
25 |
Allowance for loan losses to total loans |
2.91% |
2.21% |
32 |
Nonperforming assets to total assets |
5.13% |
3.97% |
29 |
|
|
|
|
Performance Data for the Second
Quarter |
|
|
|
Net loss |
$(1,492) |
$(62) |
NM |
Return on average assets |
(0.59)% |
(0.02)% |
NM |
Return on average equity |
(6.96)% |
(0.31)% |
NM |
Net interest margin |
3.91% |
3.54% |
10 |
Efficiency ratio |
66.18% |
65.38% |
1.2 |
Per share data: |
|
|
|
Net loss – basic |
$(0.21) |
$(0.01) |
NM |
Net loss – diluted |
$(0.21) |
$(0.01) |
NM |
Dividends |
$0.00 |
$0.00 |
0.0 |
Average shares (000s): |
|
|
|
Basic |
7,199 |
6,146 |
17 |
Diluted |
7,199 |
6,146 |
17 |
|
|
|
|
|
Performance Data for the First
Six Months |
|
|
|
Net loss |
$(1,366) |
$(550) |
(148) |
Return on average assets |
(0.27)% |
(0.05)% |
(440) |
Return on average equity |
(3.18)% |
(0.69)% |
(361) |
Net interest margin |
3.82% |
3.59% |
6.4 |
Efficiency ratio |
62.34% |
62.60% |
(0.4) |
Per share data: |
|
|
|
Net loss – basic |
$(0.19) |
$(0.09) |
112 |
Net loss – diluted |
$(0.19) |
$(0.09) |
112 |
Dividends |
$0.00 |
$0.02 |
NM |
Average shares (000s): |
|
|
|
Basic |
7,199 |
6,042 |
19 |
Diluted |
7,199 |
6,042 |
19 |
|
|
|
|
|
The Savannah Bancorp,
Inc. and Subsidiaries |
Consolidated Balance
Sheets |
($ in thousands, except share
data) |
(Unaudited) |
|
|
|
|
June
30, |
|
2011 |
2010 |
Assets |
|
|
Cash and due from banks |
$11,717 |
$19,606 |
Federal funds sold |
200 |
8,286 |
Interest-bearing deposits in banks |
36,353 |
203,611 |
Cash and cash equivalents |
48,270 |
231,503 |
Securities available for sale, at fair value
(amortized cost of $105,792 and $116,115) |
108,018 |
117,695 |
Loans, net of allowance for loan losses of
$23,523 and $18,775 |
784,010 |
830,077 |
Premises and equipment, net |
14,692 |
15,480 |
Other real estate owned |
12,125 |
7,793 |
Bank-owned life insurance |
6,407 |
6,206 |
Goodwill and other intangible assets,
net |
3,674 |
2,542 |
Other assets |
25,058 |
23,521 |
Total
assets |
$1,002,254 |
$1,234,817 |
|
|
|
Liabilities |
|
|
Deposits: |
|
|
Noninterest-bearing |
$96,025 |
$89,793 |
Interest-bearing demand |
136,991 |
121,834 |
Savings |
21,497 |
18,810 |
Money market |
267,270 |
257,961 |
Time deposits |
335,699 |
582,047 |
Total deposits |
857,482 |
1,070,445 |
Short-term borrowings |
12,575 |
15,295 |
Other borrowings |
9,677 |
13,257 |
FHLB advances |
23,656 |
29,661 |
Subordinated debt |
10,310 |
10,310 |
Other liabilities |
3,420 |
6,255 |
Total
liabilities |
917,120 |
1,145,223 |
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 |
48,644 |
48,644 |
Retained earnings |
27,909 |
32,715 |
Treasury stock, at cost, 2,210 and 536
shares |
(1) |
(1) |
Accumulated other comprehensive income,
net |
1,381 |
1,035 |
Total
shareholders' equity |
85,134 |
89,594 |
Total liabilities
and shareholders' equity |
$1,002,254 |
$1,234,817 |
The Savannah Bancorp,
Inc. and Subsidiaries |
Consolidated
Statements of Income |
for the Six Months and
Five Quarters Ending June 30, 2011 |
($ in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
For the Six
Months Ended |
|
2011 |
2010 |
Q2-11/ |
|
June
30, |
% |
|
Second |
First |
Fourth |
Third |
Second |
Q2-10 |
|
2011 |
2010 |
Chg |
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
% Chg |
Interest and dividend
income |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$21,317 |
$22,916 |
(7.0) |
|
$10,620 |
$10,697 |
$10,985 |
$11,100 |
$11,298 |
(6.0) |
Investment securities |
1,711 |
1,113 |
54 |
|
836 |
875 |
950 |
698 |
552 |
51 |
Deposits with banks |
59 |
30 |
97 |
|
27 |
32 |
37 |
80 |
24 |
13 |
Federal funds sold |
2 |
11 |
(82) |
|
1 |
1 |
-- |
9 |
3 |
(67) |
Total interest and
dividend income |
23,089 |
24,070 |
(4.1) |
|
11,484 |
11,605 |
11,972 |
11,887 |
11,877 |
(3.3) |
Interest expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
4,465 |
6,393 |
(30) |
|
2,082 |
2,383 |
2,731 |
3,336 |
3,118 |
(33) |
Borrowings & sub debt |
570 |
796 |
(28) |
|
281 |
289 |
330 |
358 |
392 |
(28) |
FHLB advances |
175 |
176 |
(0.6) |
|
86 |
89 |
78 |
164 |
91 |
(5.5) |
Total interest
expense |
5,210 |
7,365 |
(29) |
|
2,449 |
2,761 |
3,139 |
3,858 |
3,601 |
(32) |
Net interest income |
17,879 |
16,705 |
7.0 |
|
9,035 |
8,844 |
8,833 |
8,029 |
8,276 |
9.2 |
|
Provision for loan losses |
10,660 |
9,065 |
18 |
|
6,300 |
4,360 |
6,725 |
5,230 |
3,745 |
68 |
Net interest income after the provision
for loan losses |
7,219 |
7,640 |
(5.5) |
|
2,735 |
4,484 |
2,108 |
2,799 |
4,531 |
(40) |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
Trust and asset management fees |
1,345 |
1,311 |
2.6 |
|
683 |
662 |
651 |
637 |
678 |
0.7 |
Service charges on deposits |
718 |
915 |
(22) |
|
348 |
370 |
435 |
438 |
460 |
(24) |
Mortgage related income, net |
82 |
192 |
(57) |
|
68 |
14 |
76 |
130 |
103 |
(34) |
Gain (loss) on sale of securities |
455 |
608 |
(25) |
|
237 |
218 |
18 |
(18) |
141 |
68 |
Gain (loss) on hedges |
(5) |
(11) |
(55) |
|
2 |
(7) |
16 |
(3) |
(11) |
(118) |
Other operating income |
737 |
991 |
(26) |
|
369 |
368 |
571 |
354 |
355 |
3.9 |
Total noninterest
income |
3,332 |
4,006 |
(17) |
|
1,707 |
1,625 |
1,767 |
1,538 |
1,726 |
(1.1) |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
5,752 |
6,093 |
(5.6) |
|
2,846 |
2,906 |
2,907 |
2,948 |
3,053 |
(6.8) |
Occupancy and equipment |
1,864 |
1,802 |
3.4 |
|
981 |
883 |
1,041 |
1,102 |
909 |
7.9 |
Information technology |
818 |
1,014 |
(19) |
|
416 |
402 |
512 |
575 |
519 |
(20) |
FDIC deposit insurance |
816 |
798 |
2.3 |
|
336 |
480 |
448 |
442 |
410 |
(18) |
Loss on sale of foreclosed assets |
1,348 |
859 |
57 |
|
1,115 |
233 |
567 |
1,046 |
331 |
237 |
Other operating expense |
2,624 |
2,400 |
9.3 |
|
1,415 |
1,209 |
1,226 |
1,197 |
1,317 |
7.4 |
Total noninterest
expense |
13,222 |
12,966 |
2.0 |
|
7,109 |
6,113 |
6,701 |
7,310 |
6,539 |
8.7 |
Loss before income taxes |
(2,671) |
(1,320) |
(102) |
|
(2,667) |
(4) |
(2,826) |
(2,973) |
(282) |
(846) |
Income tax benefit |
(1,305) |
(770) |
(69) |
|
(1,175) |
(130) |
(950) |
(1,410) |
(220) |
(434) |
Net income (loss) |
$(1,366) |
$(550) |
(148) |
|
$(1,492) |
$126 |
($1,876) |
$(1,563) |
$(62) |
NM |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$(0.19) |
$(0.09) |
(111) |
|
$(0.21) |
$0.02 |
($0.26) |
$(0.22) |
$(0.01) |
NM |
Diluted |
$(0.19) |
$(0.09) |
(111) |
|
$(0.21) |
$0.02 |
($0.26) |
$(0.22) |
$(0.01) |
NM |
Average basic shares (000s) |
7,199 |
6,042 |
19 |
|
7,199 |
7,199 |
7,200 |
7,200 |
6,146 |
17 |
|
Average diluted shares (000s) |
7,199 |
6,042 |
19 |
|
7,199 |
7,199 |
7,200 |
7,200 |
6,146 |
17 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
Return on average equity |
(3.18)% |
(0.69)% |
(361) |
|
(6.96)% |
0.59% |
(8.43)% |
(6.91)% |
(0.31)% |
NM |
Return on average assets |
(0.27)% |
(0.05)% |
(440) |
|
(0.59)% |
0.05% |
(0.69)% |
(0.54)% |
(0.02)% |
NM |
|
Net interest margin |
3.82% |
3.59% |
6.4 |
|
3.91% |
3.73% |
3.57% |
3.02% |
3.54% |
10 |
|
Efficiency ratio |
62.34% |
62.60% |
(0.4) |
|
66.18% |
58.39% |
63.22% |
76.41% |
65.38% |
1.2 |
Average equity |
86,722 |
79,566 |
9.0 |
|
86,037 |
86,723 |
88,250 |
89,737 |
80,110 |
7.4 |
Average assets |
1,036,194 |
1,035,332 |
0.1 |
|
1,018,324 |
1,054,263 |
1,086,365 |
1,158,455 |
1,038,176 |
(1.9) |
Average interest-earning assets |
945,227 |
939,654 |
0.6 |
|
928,316 |
962,328 |
983,548 |
1,057,565 |
939,361 |
(1.2) |
Capital Resources
The banking regulatory agencies have adopted capital
requirements that specify the minimum level for which no prompt
corrective action is required. In addition, the FDIC assesses
FDIC insurance premiums based on certain "well-capitalized"
risk-based and equity capital ratios. As of June 30, 2011, the
Company and the Subsidiary Banks exceeded the minimum requirements
necessary to be classified as "well-capitalized." Bryan has
agreed with its primary regulator to maintain a Tier 1 Leverage
Ratio of not less than 8.00 percent.
Total tangible equity capital for the Company was $81.5 million,
or 8.13 percent of total assets at June 30, 2011. The table
below includes the regulatory capital ratios for the Company and
each Subsidiary Bank along with the minimum capital ratio and the
ratio required to maintain a well-capitalized regulatory
status.
($ in thousands) |
Company |
Savannah |
Bryan |
Minimum |
Well- Capitalized |
|
|
|
|
|
|
Qualifying Capital |
|
|
|
|
|
Tier 1 capital |
$84,679 |
$65,173 |
$18,428 |
-- |
-- |
Total capital |
94,394 |
72,248 |
20,916 |
-- |
-- |
|
|
|
|
|
|
Leverage Ratios |
|
|
|
|
|
Tier 1 capital to |
8.39% |
8.71% |
7.37% |
4.00% |
5.00% |
average assets |
|
|
|
|
|
|
Risk-based Ratios |
|
|
|
|
|
Tier 1 capital to risk-weighted assets |
11.09% |
11.65% |
9.53% |
4.00% |
6.00% |
Total capital to risk-weighted assets |
12.37% |
12.92% |
10.81% |
8.00% |
10.00% |
Tier 1 and total capital at the Company level includes $10
million of subordinated debt issued to the Company's
nonconsolidated subsidiaries. Total capital also includes the
allowance for loan losses up to 1.25 percent of risk-weighted
assets.
The Savannah Bancorp,
Inc. and Subsidiaries |
Allowance for Loan
Losses and Nonperforming Assets |
(Unaudited) |
|
|
2011 |
2010 |
|
Second |
First |
Fourth |
Third |
Second |
($ in thousands) |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
|
|
|
|
|
Allowance for loan
losses |
|
|
|
|
|
Balance at beginning of period |
$22,363 |
$20,350 |
$19,519 |
$18,775 |
$19,611 |
Provision for loan losses |
6,300 |
4,360 |
6,725 |
5,230 |
3,745 |
Net charge-offs |
(5,140) |
(2,347) |
(5,894) |
(4,486) |
(4,581) |
Balance at end of period |
$23,523 |
$22,363 |
$20,350 |
$19,519 |
$18,775 |
|
|
|
|
|
|
As a % of loans |
2.91% |
2.73% |
2.46% |
2.34% |
2.21% |
As a % of nonperforming loans |
59.84% |
64.38% |
56.69% |
47.56% |
45.59% |
As a % of nonperforming assets |
45.73% |
45.87% |
41.45% |
38.44% |
38.33% |
|
|
|
|
|
|
Net charge-offs as a % of average loans
(a) |
2.65% |
1.21% |
2.26% |
2.03% |
2.26% |
|
|
|
|
|
|
Risk element assets |
|
|
|
|
|
Nonaccruing loans |
$39,160 |
$33,921 |
$32,836 |
$40,837 |
$39,001 |
Loans past due 90 days – accruing |
150 |
817 |
3,064 |
204 |
2,184 |
Total nonperforming loans |
39,310 |
34,738 |
35,900 |
41,041 |
41,185 |
Other real estate owned |
12,125 |
14,014 |
13,199 |
9,739 |
7,793 |
Total nonperforming
assets |
$51,435 |
$48,752 |
$49,099 |
$50,780 |
$48,978 |
|
|
|
|
|
|
Loans past due 30-89 days |
$17,013 |
$9,175 |
$11,164 |
$10,757 |
$10,259 |
|
|
|
|
|
|
Nonperforming loans as a % of loans |
4.87% |
4.24% |
4.34% |
4.93% |
4.85% |
Nonperforming assets as a % of loans and
other real estate owned |
6.28% |
5.85% |
5.85% |
6.03% |
5.72% |
Nonperforming assets as a % of assets |
5.13% |
4.69% |
4.60% |
4.63% |
3.97% |
|
|
|
|
|
|
(a) Annualized |
The Savannah Bancorp,
Inc. and Subsidiaries |
Average Balance Sheet
and Rate/Volume Analysis – Second Quarter, 2011 and
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-Equivalent |
|
(a) Variance |
Average Balance |
Average Rate |
|
Interest (b) |
|
Attributable to |
QTD |
QTD |
QTD |
QTD |
|
QTD |
QTD |
Vari- |
|
|
6/30/2011 |
6/30/2010 |
6/30/2011 |
6/30/2010 |
|
6/30/2011 |
6/30/2010 |
ance |
Rate |
Volume |
($ in thousands) |
(%) |
|
($ in thousands) |
|
($ in thousands) |
|
|
|
|
Assets |
|
|
|
|
|
$35,785 |
$32,915 |
0.30 |
0.29 |
Interest-bearing deposits |
$27 |
$24 |
$3 |
$1 |
$2 |
108,408 |
78,271 |
2.85 |
2.44 |
Investments - taxable |
770 |
476 |
294 |
80 |
214 |
6,361 |
7,595 |
4.48 |
4.33 |
Investments - non-taxable |
71 |
82 |
(11) |
3 |
(14) |
595 |
7,365 |
0.67 |
0.16 |
Federal funds sold |
1 |
3 |
(2) |
9 |
(11) |
777,167 |
813,215 |
5.48 |
5.57 |
Loans (c) |
10,623 |
11,300 |
(677) |
(182) |
(495) |
928,316 |
939,361 |
4.97 |
5.07 |
Total interest-earning assets |
11,492 |
11,885 |
(393) |
(89) |
(304) |
90,008 |
98,815 |
|
|
Noninterest-earning assets |
|
|
|
|
|
$1,018,324 |
$1,038,176 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
$140,593 |
$126,536 |
0.29 |
0.37 |
NOW accounts |
100 |
116 |
(16) |
(25) |
9 |
21,169 |
18,015 |
0.15 |
0.40 |
Savings accounts |
8 |
18 |
(10) |
(11) |
1 |
235,375 |
188,443 |
1.11 |
1.57 |
Money market accounts |
654 |
739 |
(85) |
(216) |
131 |
40,527 |
63,147 |
0.51 |
0.85 |
Money market accounts -
institutional |
52 |
134 |
(82) |
(54) |
(28) |
163,689 |
168,090 |
1.61 |
2.43 |
CDs, $100M or more |
657 |
1,019 |
(362) |
(344) |
(18) |
43,599 |
97,563 |
0.81 |
1.05 |
CDs, broker |
88 |
255 |
(167) |
(58) |
(109) |
141,114 |
150,201 |
1.49 |
2.24 |
Other time deposits |
523 |
837 |
(314) |
(281) |
(33) |
786,066 |
811,995 |
1.06 |
1.54 |
Total interest-bearing deposits |
2,082 |
3,118 |
(1,036) |
(989) |
(47) |
23,545 |
34,695 |
3.49 |
3.65 |
Short-term/other borrowings |
205 |
316 |
(111) |
(14) |
(97) |
14,788 |
15,992 |
2.33 |
2.28 |
FHLB advances |
86 |
91 |
(5) |
2 |
(7) |
10,310 |
10,310 |
2.96 |
2.96 |
Subordinated debt |
76 |
76 |
-- |
-- |
-- |
|
|
|
|
Total interest-bearing |
|
|
|
|
|
834,709 |
872,992 |
1.18 |
1.65 |
liabilities |
2,449 |
3,601 |
(1,152) |
(1,001) |
(151) |
93,049 |
83,620 |
|
|
Noninterest-bearing deposits |
|
|
|
|
|
4,529 |
1,454 |
|
|
Other liabilities |
|
|
|
|
|
86,037 |
80,110 |
|
|
Shareholders' equity |
|
|
|
|
|
$1,018,324 |
$1,038,176 |
|
|
Liabilities and equity |
|
|
|
|
|
|
|
3.79 |
3.42 |
Interest rate spread |
|
|
|
|
|
|
|
3.91 |
3.54 |
Net interest margin |
|
|
|
|
|
|
|
|
|
Net interest income |
$9,043 |
$8,284 |
$759 |
$912 |
($153) |
$93,607 |
$66,369 |
|
|
Net earning assets |
|
|
|
|
|
$879,115 |
$895,615 |
|
|
Average deposits |
|
|
|
|
|
|
|
0.95 |
1.40 |
Average cost of deposits |
|
|
|
|
|
88% |
91% |
|
|
Average loan to deposit ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 results from tax exempt income less non-deductible TEFRA
interest expense and was $8 in the second quarter 2011 and 2010,
respectively. |
|
|
|
|
c) Average nonaccruing loans have
been excluded from total average loans and categorized in
noninterest-earning assets. |
|
|
|
|
|
|
The Savannah Bancorp,
Inc. and Subsidiaries |
Average Balance Sheet
and Rate/Volume Analysis – First Six Months, 2011 and
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-Equivalent |
|
(a) Variance |
Average Balance |
Average Rate |
|
Interest (b) |
|
Attributable to |
YTD |
YTD |
YTD |
YTD |
|
YTD |
YTD |
Vari- |
|
|
6/30/2011 |
6/30/2010 |
6/30/2011 |
6/30/2010 |
|
6/30/2011 |
6/30/2010 |
ance |
Rate |
Volume |
($ in thousands) |
(%) |
|
($ in thousands) |
|
($ in thousands) |
|
|
|
|
Assets |
|
|
|
|
|
$38,678 |
$19,450 |
0.31 |
0.31 |
Interest-bearing deposits |
$59 |
$30 |
$29 |
$ -- |
$29 |
116,911 |
77,969 |
2.72 |
2.50 |
Investments - taxable |
1,576 |
965 |
611 |
85 |
526 |
6,627 |
7,712 |
4.41 |
4.16 |
Investments - non-taxable |
145 |
159 |
(14) |
10 |
(24) |
647 |
7,179 |
0.62 |
0.31 |
Federal funds sold |
2 |
11 |
(9) |
11 |
(20) |
782,364 |
827,344 |
5.50 |
5.59 |
Loans (c) |
21,323 |
22,921 |
(1,598) |
(369) |
(1,229) |
945,227 |
939,654 |
4.93 |
5.17 |
Total interest-earning assets |
23,105 |
24,086 |
(981) |
(264) |
(717) |
90,967 |
95,678 |
|
|
Noninterest-earning assets |
|
|
|
|
|
$1,036,194 |
$1,035,332 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
$139,955 |
$124,688 |
0.31 |
0.38 |
NOW accounts |
212 |
235 |
(23) |
(43) |
20 |
20,761 |
17,742 |
0.18 |
0.44 |
Savings accounts |
19 |
39 |
(20) |
(23) |
3 |
235,342 |
180,672 |
1.19 |
1.58 |
Money market accounts |
1,388 |
1,418 |
(30) |
(349) |
319 |
41,316 |
65,380 |
0.53 |
0.89 |
Money market accounts -
institutional |
109 |
290 |
(181) |
(117) |
(64) |
170,933 |
164,974 |
1.66 |
2.56 |
CDs, $100M or more |
1,408 |
2,095 |
(687) |
(736) |
49 |
46,549 |
101,889 |
0.84 |
1.07 |
CDs, broker |
194 |
540 |
(346) |
(116) |
(230) |
148,428 |
150,012 |
1.54 |
2.39 |
Other time deposits |
1,135 |
1,776 |
(641) |
(632) |
(9) |
803,284 |
805,357 |
1.12 |
1.60 |
Total interest-bearing deposits |
4,465 |
6,393 |
(1,928) |
(2,017) |
89 |
24,472 |
38,955 |
3.46 |
3.35 |
Short-term/other borrowings |
420 |
647 |
(227) |
21 |
(248) |
15,243 |
15,828 |
2.32 |
2.24 |
FHLB advances |
175 |
176 |
(1) |
6 |
(7) |
10,310 |
10,310 |
2.93 |
2.91 |
Subordinated debt |
150 |
149 |
1 |
1 |
-- |
|
|
|
|
Total interest-bearing |
|
|
|
|
|
853,309 |
870,450 |
1.23 |
1.71 |
liabilities |
5,210 |
7,365 |
(2,155) |
(1,989) |
(166) |
92,366 |
81,485 |
|
|
Noninterest-bearing deposits |
|
|
|
|
|
3,797 |
3,831 |
|
|
Other liabilities |
|
|
|
|
|
86,722 |
79,566 |
|
|
Shareholders' equity |
|
|
|
|
|
$1,036,194 |
$1,035,332 |
|
|
Liabilities and equity |
|
|
|
|
|
|
|
3.70 |
3.46 |
Interest rate spread |
|
|
|
|
|
|
|
3.82 |
3.59 |
Net interest margin |
|
|
|
|
|
|
|
|
|
Net interest income |
$17,895 |
$16,721 |
$1,174 |
$1,725 |
($551) |
$91,918 |
$69,204 |
|
|
Net earning assets |
|
|
|
|
|
$895,650 |
$886,842 |
|
|
Average deposits |
|
|
|
|
|
|
|
1.01 |
1.45 |
Average cost of deposits |
|
|
|
|
|
87% |
93% |
|
|
Average loan to deposit ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 results from tax exempt income less non-deductible TEFRA
interest expense and was $16 in the first six months 2011 and 2010,
respectively. |
|
|
|
|
|
(c) Average nonaccruing loans
have been excluded from total average loans and categorized in
noninterest-earning assets. |
|
|
|
|
|
|
|
CONTACT: John C. Helmken II, President and CEO, 912-629-6486
Michael W. Harden, Jr., Chief Financial Officer, 912-629-6496
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