ALAB Astera Labs Inc

BIRMINGHAM, Ala., April 18 /PRNewswire-FirstCall/ -- Alabama National BanCorporation ("ANB") (NASDAQ:ALAB) today announced earnings for the quarter ended March 31, 2006. For the 2006 first quarter, ANB reported earnings of $17.8 million, up 15.5% from the 2005 first quarter. Diluted earnings per share of $1.02 were up 14.7% from the 2005 first quarter. Diluted cash earnings per share were $1.05, up 14.0% from the 2005 first quarter. Total revenue grew to $71.5 million in the 2006 first quarter, up 12.3% from $63.7 million in the 2005 first quarter. Noninterest income represented 26.5% of first quarter 2006 total revenue, approximately even with the 26.4% reported in the 2005 first quarter. ANB's taxable equivalent net interest margin improved to 3.96% for the 2006 first quarter, up 2 basis points from the 2005 first quarter and up 5 basis points from the fourth quarter of 2005. "The first quarter was highlighted by a continuation of strong asset quality and solid EPS growth. We are also pleased to have shown a slight improvement in our net interest margin as compared with the fourth quarter of 2005," said John H. Holcomb, III, Chairman and CEO. "This first quarter performance is a good start to 2006." Total assets at March 31, 2006 were $6.1 billion. Loan growth (excluding loans held for sale) was 10.3% annualized during the 2006 first quarter, and deposits grew at a 6.8% annualized rate. At March 31, 2006 deposits totaled $4.4 billion, compared to $4.3 billion at December 31, 2005. Quarter-end share owners' equity was $582.4 million, or $33.95 per share, and tangible book value per share was $24.82. During the 2006 first quarter, ANB recognized $210 thousand in net charge- offs, or an annualized rate of 0.02% of average loans. Quarter-end nonperforming assets were 0.09% of period end loans and other real estate. The allowance for loan losses covered nonperforming loans 1,528%. ANB's acquisition of Florida Choice Bank was completed on April 3, 2006. Accordingly, ANB's first quarter results and balances do not include Florida Choice Bank. ANB is a bank holding company operating 93 banking locations through eleven bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Alabama Exchange Bank in Tuskegee; and Bank of Dadeville. Florida subsidiaries are: Indian River National Bank in Vero Beach; First Gulf Bank, N.A. in Escambia County, Florida and Baldwin County, Alabama; Florida Choice Bank in central Florida; Community Bank of Naples, N.A.; Public Bank in metropolitan Orlando; CypressCoquina Bank in Ormond Beach; and Millennium Bank in Gainesville. ANB has one subsidiary in Georgia, Georgia State Bank in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Commercial mortgage services including the origination of permanent commercial real estate mortgage loans for various lenders is provided by Byars and Company, a Division of First American Bank. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank. Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB." Conference Call Instructions: Alabama National will discuss financial results for the first quarter completed March 31, 2006 as well as its goals and general outlook for the remainder of 2006 in a conference call to be held Wednesday, April 19, 2006 at 9:00 a.m. Central Time. A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links: http://www.alabamanational.com/, under "In The News," or http://www.viavid.net/, on April 19, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days. For live interactive access to the teleconference, please dial 1-800-938-1464 at 9:00 a.m. Central Time on April 19. For those without Internet access, a telephonic replay will be available through May 19 by dialing 1-800-642-1687 and entering Conference ID number 7461576. Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values. 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 "cash earnings" (cash earnings per share), "tangible book value" (tangible book value per share), "return on average tangible equity" and "return on average tangible assets." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Cash earnings is defined as net income plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings per basic and diluted share is defined as cash earnings divided by basic and diluted common shares outstanding. ANB's management includes cash earnings measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value is defined as total equity reduced by recorded intangible assets. 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 that 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 Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period) divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as earnings for the period (annualized for the quarterly period) divided by average assets reduced by average goodwill and other intangible assets. ANB's management includes these measures because it believes that they are important when measuring the company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures. This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. ALABAMA NATIONAL BANCORPORATION Unaudited Financial Highlights (in thousands, except per share amounts and percentages) Three Months Ended March 31, Percentage 2006 2005 Change (b) Net interest income $52,575 $46,905 12.1% Noninterest income 18,929 16,783 12.8 Total revenue 71,504 63,688 12.3 Provision for loan and lease losses 1,243 1,544 (19.5) Noninterest expense 42,973 38,661 11.2 Income before taxes and cumulative effect of accounting change 27,288 23,483 16.2 Income taxes 9,463 8,003 18.2 Net income before cumulative effect of accounting change 17,825 15,480 15.1 Cumulative effect of accounting change (net of tax) 48 - NM Net income $17,873 $15,480 15.5 Weighted average common and common equivalent shares outstanding Basic 17,334 17,151 1.1% Diluted 17,502 17,384 0.7 Net income per common share Basic $1.03 $.90 14.2% Diluted 1.02 .89 14.7 Cash earnings (a) Total $18,413 $16,039 14.8% Basic 1.06 .94 13.6 Diluted 1.05 .92 14.0 Cash dividends declared on common stock $.3750 $.3375 Return on average assets 1.21% 1.17% Return on average tangible assets 1.25 1.20 Return on average equity 12.53 11.73 Return on average tangible equity 17.20 16.52 NONINTEREST INCOME Service charge income $3,868 $3,930 (1.6)% Investment services income 864 1,145 (24.5) Wealth management income 5,367 4,521 18.7 Gain on sale of mortgages 2,611 2,670 (2.2) Commercial mortgage banking income 732 - NM Gain on disposal of assets 507 428 18.5 Securities (losses) gains (734) 72 NM Bank owned life insurance 742 654 13.5 Insurance commissions 982 795 23.5 Other 3,990 2,568 55.4 Total noninterest income $18,929 $16,783 12.8 (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. NM - Not meaningful March 31, December 31, Percentage 2006 2005 Change Total assets $6,085,546 $5,931,673 2.6% Earning assets 5,522,205 5,385,824 2.5 Securities (a) 1,137,864 1,136,487 0.1 Loans held for sale 21,126 14,940 41.4 Loans and leases, net of unearned income 4,247,199 4,144,095 2.5 Allowance for loan and lease losses 53,848 52,815 2.0 Deposits 4,414,826 4,343,264 1.6 Short-term borrowings 30,800 34,700 (11.2) Long-term debt 378,431 369,246 2.5 Stockholders' equity 582,363 571,879 1.8 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended March 31, December 31, March 31, 2006 2005 2005 Nonaccrual loans $3,524 $6,446 $6,374 Restructured loans - - - Loans past due 90 days or more and still accruing - 0 - - 0 - - 0 - Total nonperforming loans 3,524 6,446 6,374 Other real estate owned 487 623 1,079 Total nonperforming assets 4,011 7,069 7,453 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.09% 0.17% 0.20% Allowance for loan and lease losses $53,848 $52,815 $47,826 Provision for loan and lease losses 1,243 1,640 1,544 Loans charged off 505 1,109 489 Loan recoveries 295 605 187 Net loan and lease losses 210 504 302 Allowance for loan and lease losses as a percentage of period-end loans and leases (a) 1.27% 1.27% 1.31% Allowance for loan and lease losses as a percentage of period-end nonperforming loans 1,528.04 819.35 750.33 Net losses to average loans and leases (annualized) 0.02 0.05 0.03 (a) Excludes loans held for sale TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended March 31, December 31, March 31, 2006 2005 2005 Interest income: Interest and fees on loans and leases 7.42% 7.09% 6.24% Interest on securities: Taxable 4.38 4.14 4.17 Non-taxable 6.55 6.35 6.24 Total interest earning assets 6.78 6.44 5.68 Interest expense: Interest on deposits 3.02 2.73 1.85 Interest on short-term borrowing 4.77 4.27 3.57 Interest on long-term debt 4.71 4.35 3.63 Total interest bearing liabilities 3.30 2.99 2.07 Net interest spread 3.48 3.45 3.61 Net interest margin 3.96 3.91 3.94 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS As of March 31, December 31, 2006 2005 Stockholders' Equity: Equity to assets 9.57% 9.64% Leverage ratio 8.40 8.29 Book value per common share (a) $33.95 $33.40 Tangible book value per common share (a)(b) 24.82 24.20 Ending shares outstanding (in thousands) 17,155 17,124 (a) Includes a cumulative mark to market adjustment to equity of $(0.59) and $(0.52) per share at March 31, 2006 and December 31, 2005, respectively. (b) Total equity reduced by intangible assets divided by common shares outstanding. RECONCILIATION TABLE (in thousands, except per share amounts and percentages) Three Months Ended March 31, 2006 2005 Net income $17,873 $15,480 Amortization of intangibles, net of tax 540 559 Cash earnings $18,413 $16,039 Net income per common share - basic $1.03 $0.90 Effect of amortization of intangibles per share 0.03 0.04 Cash earnings per common share - basic $1.06 $0.94 Net income per common share - diluted $1.02 $0.89 Effect of amortization of intangibles per share 0.03 0.03 Cash earnings per common share - diluted $1.05 $0.92 Average assets $5,971,156 $5,365,706 Average intangible assets (157,010) (155,411) Average tangible assets $5,814,146 $5,210,295 Return on average assets 1.21% 1.17% Effect of average intangible assets .04 .03 Return on average tangible assets 1.25% 1.20% Average equity $578,530 $535,336 Average intangible assets (157,010) (155,411) Average tangible equity $421,520 $379,925 Return on average equity 12.53% 11.73% Effect of average intangible assets 4.67 4.79 Return on average tangible equity 17.20% 16.52% As of March 31, December 31, 2006 2005 Book value $582,363 $571,879 Intangible assets (156,633) (157,429) Tangible book value $425,730 $414,450 Book value per common share $33.95 $33.40 Effect of intangible assets per share (9.13) (9.20) Tangible book value per common share $24.82 $24.20 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (In thousands, except share amounts) March 31, 2006 December 31, 2005 Assets Cash and due from banks $185,535 $189,256 Interest-bearing deposits in other banks 16,515 19,428 Federal funds sold and securities purchased under resell agreements 97,151 70,472 Trading securities, at fair value 2,350 402 Investment securities (fair values of $608,874 and $576,424) 626,378 591,153 Securities available for sale, at fair value 511,486 545,334 Loans held for sale 21,126 14,940 Loans and leases 4,250,772 4,147,739 Unearned income (3,573) (3,644) Loans and leases, net of unearned income 4,247,199 4,144,095 Allowance for loan and lease losses (53,848) (52,815) Net loans and leases 4,193,351 4,091,280 Property, equipment and leasehold improvements, net 115,215 114,159 Goodwill 148,071 148,071 Other intangible assets, net 8,562 9,358 Cash surrender value of life insurance 75,328 74,593 Receivable from investment division customers 23,647 7,166 Other assets 60,831 56,061 Totals $6,085,546 $5,931,673 Liabilities and Stockholders' Equity Deposits: Noninterest bearing $723,956 $729,045 Interest bearing 3,690,870 3,614,219 Total deposits 4,414,826 4,343,264 Federal funds purchased and securities sold under repurchase agreements 591,396 545,337 Accrued expenses and other liabilities 62,352 61,361 Payable for securities purchased for investment division customers 25,378 5,886 Short-term borrowings 30,800 34,700 Long-term debt 378,431 369,246 Total liabilities 5,503,183 5,359,794 Common stock, $1 par; 50,000,000 shares authorized; 17,155,010 and 17,124,316 shares issued at March 31, 2006 and December 31, 2005, respectively 17,155 17,124 Additional paid-in capital 347,991 347,434 Retained earnings 227,367 216,144 Accumulated other comprehensive loss, net of tax (10,150) (8,823) Total stockholders' equity 582,363 571,879 Totals $6,085,546 $5,931,673 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) (In thousands, except per share data) For the three months ended March 31, 2006 2005 Interest income: Interest and fees on loans and leases 77,238 55,166 Interest on securities 12,130 12,102 Interest on deposits in other banks 79 48 Interest on trading securities 11 4 Interest on federal funds sold and securities purchased under resell agreements 732 524 Total interest income 90,190 67,844 Interest expense: Interest on deposits 27,097 14,858 Interest on federal funds purchased and securities sold under repurchase agreements 5,810 2,368 Interest on short-term borrowings 397 406 Interest on long-term debt 4,311 3,307 Total interest expense 37,615 20,939 Net interest income 52,575 46,905 Provision for loan and lease losses 1,243 1,544 Net interest income after provision for loan and lease losses 51,332 45,361 Noninterest income: Securities (losses) gains (734) 72 Gain on disposition of assets 507 428 Service charges on deposit accounts 3,868 3,930 Investment services income 864 1,145 Wealth management income 5,367 4,521 Gain on sale of mortgages 2,611 2,670 Commercial mortgage banking income 732 - Bank owned life insurance 742 654 Insurance commissions 982 795 Other 3,990 2,568 Total noninterest income 18,929 16,783 Noninterest expense: Salaries and employee benefits 23,298 20,453 Commission based compensation 4,134 3,494 Occupancy and equipment expenses 4,757 4,139 Amortization of intangibles 796 825 Other 9,988 9,750 Total noninterest expense 42,973 38,661 Income before provision for income taxes and cumulative effect of accounting change 27,288 23,483 Provision for income taxes 9,463 8,003 Net income before cumulative effect of accounting change 17,825 15,480 Cumulative effect of accounting change (net of tax) 48 - Net income $17,873 $15,480 Weighted average common shares outstanding: Basic 17,334 17,151 Diluted 17,502 17,384 Earnings per common share before cumulative effect of accounting change: Basic $1.03 $0.90 Diluted $1.02 $0.89 Earnings per common share: Basic $1.03 $0.90 Diluted $1.02 $0.89 AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 03/31/06 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $4,225,849 $77,366 7.42% Securities: Taxable 1,068,922 11,540 4.38 Tax exempt 55,328 894 6.55 Cash balances in other banks 7,692 79 4.17 Funds sold 65,813 732 4.51 Trading account securities 995 11 4.48 Total earning assets (2) 5,424,599 90,622 6.78 Cash and due from banks 181,859 Premises and equipment 114,793 Other assets 303,524 Allowance for loan and lease losses (53,619) Total assets $5,971,156 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,029,134 $5,794 2.28 Savings deposits 898,962 5,113 2.31 Time deposits 1,714,993 16,190 3.83 Funds purchased 581,923 5,810 4.05 Other short-term borrowings 33,755 397 4.77 Long-term debt 370,940 4,311 4.71 Total interest-bearing liabilities 4,629,707 37,615 3.30 Demand deposits 686,454 Accrued interest and other liabilities 76,465 Stockholders' equity 578,530 Total liabilities and stockholders' equity $5,971,156 Net interest spread 3.48% Net interest income/margin on a taxable equivalent basis 53,007 3.96% Tax equivalent adjustment (2) 432 Net interest income/margin $52,575 3.93% Three Months 03/31/05 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $3,593,014 $55,297 6.24% Securities: Taxable 1,122,456 11,541 4.17 Tax exempt 55,234 850 6.24 Cash balances in other banks 14,369 48 1.35 Funds sold 87,935 524 2.42 Trading account securities 311 4 5.22 Total earning assets (2) 4,873,319 68,264 5.68 Cash and due from banks 82,775 Premises and equipment 100,578 Other assets 356,351 Allowance for loan and lease losses (47,317) Total assets $5,365,706 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $875,630 $2,544 1.18 Savings deposits 891,190 2,638 1.20 Time deposits 1,498,534 9,676 2.62 Funds purchased 425,560 2,368 2.26 Other short-term borrowings 46,127 406 3.57 Long-term debt 369,259 3,307 3.63 Total interest-bearing liabilities 4,106,300 20,939 2.07 Demand deposits 674,369 Accrued interest and other liabilities 49,701 Stockholders' equity 535,336 Total liabilities and stockholders' equity $5,365,706 Net interest spread 3.61% Net interest income/margin on a taxable equivalent basis 47,325 3.94% Tax equivalent adjustment (2) 420 Net interest income/margin $46,905 3.90% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 03/31/06 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $4,225,849 $77,366 7.42% Securities: Taxable 1,068,922 11,540 4.38 Tax exempt 55,328 894 6.55 Cash balances in other banks 7,692 79 4.17 Funds sold 65,813 732 4.51 Trading account securities 995 11 4.48 Total earning assets (2) 5,424,599 90,622 6.78 Cash and due from banks 181,859 Premises and equipment 114,793 Other assets 303,524 Allowance for loan and lease losses (53,619) Total assets $5,971,156 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,029,134 $5,794 2.28 Savings deposits 898,962 5,113 2.31 Time deposits 1,714,993 16,190 3.83 Funds purchased 581,923 5,810 4.05 Other short-term borrowings 33,755 397 4.77 Long-term debt 370,940 4,311 4.71 Total interest-bearing liabilities 4,629,707 37,615 3.30 Demand deposits 686,454 Accrued interest and other liabilities 76,465 Stockholders' equity 578,530 Total liabilities and stockholders' equity $5,971,156 Net interest spread 3.48% Net interest income/margin on a taxable equivalent basis 53,007 3.96% Tax equivalent adjustment (2) 432 Net interest income/margin $52,575 3.93% Three Months 12/31/05 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $4,146,649 $74,124 7.09% Securities: Taxable 1,084,433 11,312 4.14 Tax exempt 49,776 797 6.35 Cash balances in other banks 8,242 83 4.00 Funds sold 73,264 748 4.05 Trading account securities 501 5 3.96 Total earning assets (2) 5,362,865 87,069 6.44 Cash and due from banks 174,929 Premises and equipment 112,147 Other assets 295,111 Allowance for loan and lease losses (52,374) Total assets $5,892,678 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $950,750 $4,539 1.89 Savings deposits 900,844 4,647 2.05 Time deposits 1,692,425 15,216 3.57 Funds purchased 586,165 5,367 3.63 Other short-term borrowings 54,229 584 4.27 Long-term debt 347,510 3,807 4.35 Total interest-bearing liabilities 4,531,923 34,160 2.99 Demand deposits 718,055 Accrued interest and other liabilities 76,452 Stockholders' equity 566,248 Total liabilities and stockholders' equity $5,892,678 Net interest spread 3.45% Net interest income/margin on a taxable equivalent basis 52,909 3.91% Tax equivalent adjustment (2) 413 Net interest income/margin $52,496 3.88% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. DATASOURCE: Alabama National BanCorporation CONTACT: John H. Holcomb III, Chairman of the Board and Chief Executive Officer, +1-205-583-3648, or William E. Matthews, V, Executive Vice President and Chief Financial Officer, +1-205-583-3650, both of Alabama National BanCorporation Web site: http://www.alabamanational.com/

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