SPARTANBURG, S.C., Oct. 10 /PRNewswire-FirstCall/ -- First National
Bancshares, Inc. (NASDAQ:FNSC), the bank holding company for First
National Bank of the South, today reported record earnings of $1.28
million for the quarter ended September 30, 2007, an increase of
18.2% over net income of $1.1 million reported for the same period
in 2006. First National also reported growth in total assets of
37.3%, or $156.1 million, to end the quarter at $574.1 million, as
compared to total assets of $418.0 million as of September 30,
2006. Loans grew by $118.3 million to $458.3 million, an increase
of 34.8% over total loans on September 30, 2006, of $340.0 million.
Deposits rose by $123.3 million to $453.8 million on September 30,
2007, as compared to $330.5 million on September 30, 2006, or an
increase of 37.3%. Earnings per diluted share for the quarter ended
September 30, 2007, were $0.24 as compared to $0.25 per diluted
share for the same period last year. Diluted shares outstanding for
the quarter ended September 30, 2007, increased by 23.2% over the
same period in 2006. The increase reflects the dilutive effect of
the potential issuance of shares of common stock as a result of the
conversion of shares of Series A preferred stock, which were sold
in July of 2007 pursuant to a public offering. Net income for the
nine months ended September 30, 2007, increased by 8.9% over the
same period in 2006 to $2.9 million or $0.62 per diluted share, as
compared to net income of $2.7 million or $0.63 per diluted share
for the same period last year. Jerry L. Calvert, President and CEO,
said, "We are pleased that we were able to deliver a double digit
increase in net income for the third quarter of 2007 while
continuing to grow our franchise. This increase was driven by a 27%
increase in net interest income over 2006. We seek to achieve
consistent increases in our net interest income and noninterest
income while carefully managing the additional overhead expenses
required to support our growth." Mr. Calvert stated, "We are very
pleased with the increase in our deposit base during 2007. Opening
three full-service branches during the year, two of which are
larger market headquarters facilities, has required significant
capital investments in our infrastructure and additional overhead
expenses. However, we are beginning to see an increase in retail
deposits as a result of this expansion. As these additional
branches continue to grow their deposit base, we expect to see a
corresponding reduction in our cost of funds." Mr. Calvert
continued, "While we have encountered some challenges during 2007
in the area of nonperforming loans, we continue to believe that the
circumstances surrounding these credits are not typical for our
company. We remain confident that we will be able to resolve the
majority of these credits by year-end." Mr. Calvert concluded, "The
remainder of 2007 presents many challenges to growth in earnings.
We plan to continue to devote close attention to managing our net
interest margin to minimize the reduction in the yield on earning
assets, which will result from the 50 basis point reduction in the
prime rate that occurred during late September. We have begun to
devote substantial resources to integrate the Carolina National
franchise in Columbia into our growing branch network, and we look
forward to the resulting anticipated increase in shareholder
value." Net interest income for the quarter and nine months ended
September 30, 2007, increased by 26.9% and 26.7%, respectively, or
$982,000 and $2.7 million, respectively, compared to the same
periods in 2006, due primarily to the growth in average earning
assets. The net interest margin decreased by 42 basis points to
3.39% for the quarter ended September 30, 2007, as compared to
3.81% for the quarter ended September 30, 2006. However, the net
interest margin for the third quarter of 2007 has remained fairly
consistent with the net interest margin of 3.40% posted for the
quarter ended June 30, 2007. The 34.8% increase in the loan
portfolio since September 30, 2006, and the $17.8 million increase
in residential mortgage loans held for sale from the wholesale
mortgage division, were the main factors behind the growth in
earning assets. This increase was funded primarily by growth of
$123.3 million in deposits. In addition, First National received
$16.5 million in net proceeds in July 2007 from the sale of 720,000
shares of Series A preferred stock in a public offering.
Nonperforming assets were $8.0 million as of September 30, 2007, or
1.40% of total assets, as compared to $1.1 million as of September
30, 2006, an increase of $6.9 million. The majority of this
increase relates to two loan relationships that also existed as of
June 30, 2007, totaling $3.4 million. Based on our evaluation and
assessment, we do not anticipate any losses on these relationships.
However, management has allocated specific reserves to these and
other nonaccrual loans that it believes will offset losses, if any,
arising from less than full recovery of the loans from the
supporting collateral. All amounts presented above reflect the 7%
stock dividend distributed on March 30, 2007. COMPANY HIGHLIGHTS
First National Bancshares, Inc. is a $574-million asset bank
holding company based in Spartanburg, South Carolina. Its common
stock is traded on the NASDAQ Global Market under the symbol FNSC.
It was incorporated in 1999 to conduct general banking business
through its wholly-owned bank subsidiary, First National Bank of
the South. First National Bank of the South provides a wide range
of financial services to consumer and commercial customers through
three operating divisions -- the banking division, small business
lending division, and the wholesale mortgage lending division. The
banking division operates seven full- service branches, three in
Spartanburg County operating as First National Bank of Spartanburg,
and four operating as First National Bank of the South in
Charleston, Mount Pleasant, Greenville and Greer. First National
also operates loan production offices in Columbia, Daniel Island
and Rock Hill, South Carolina. First National Bank also operates a
small business lending division under the name of First National
Business Capital and this division provides small business lending
services to customers in the Carolinas and Georgia. First National
Bank's wholesale mortgage lending division provides services to
community banks and mortgage brokers across the Southeast from its
office on North Main Street in Greenville. In addition to these
services, First National offers trust and investment management
services to its customers through an alliance with Colonial Trust
Company, which has offices in Spartanburg and Greenville.
Additional information about First National is available online in
the Investor Relations section of
http://www.firstnational-online.com/. First National Bancshares,
Inc. and Carolina National Corporation (NASDAQ:CNCP) recently
announced they have entered into a definitive merger agreement.
Following the merger, Carolina National's four Columbia offices
will begin operating under the name First National Bank of the
South. FORWARD-LOOKING STATEMENTS Certain statements in this press
release contain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, such as
statements concerning our future growth, plans, objectives,
expectations, performance, events and the like, as well as any
other statements, including those regarding the proposed merger,
that are not historical facts and are thus prospective. Such
forward-looking statements are subject to risks, uncertainties, and
other factors, including, but not limited to: the businesses of
First National and Carolina National may not be integrated
successfully or such integration may take longer to accomplish than
expected; disruption from the merger may make it more difficult to
maintain relationships with clients, associates, or suppliers; the
required governmental approvals of the merger may not be obtained
on the proposed terms and schedule; shareholders may not approve
the merger; changes in worldwide and U.S. economic conditions;
changes in the interest rate environment which may reduce the net
interest margin; a downturn in the economy or real estate market;
greater than expected noninterest expenses or excessive loan losses
as a result of changes in market conditions and the adverse impact
on the value of the underlying collateral 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 First National's and Carolina
National's 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. These projections and statements are
based on management's estimates and assumptions with respect to
future events and financial performance and are believed to be
reasonable though they are inherently uncertain and difficult to
predict. 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 either company or any person that
the future events, plans, or expectations contemplated by either
company will be achieved. First National and Carolina National do
not intend to and assume no responsibility for updating or revising
any forward-looking statement contained in this press release,
whether as a result of new information, future events or otherwise.
ADDITIONAL INFORMATION ABOUT THE MERGER AND WHERE TO FIND IT In
connection with the proposed merger, First National and Carolina
National filed a preliminary joint proxy statement/prospectus on a
Form S-4 registration statement with the Securities and Exchange
Commission (the "SEC") on October 8, 2007. INVESTORS AND
SHAREHOLDERS ARE ADVISED TO READ THE PRELIMINARY JOINT PROXY
STATEMENT/PROSPECTUS AND ANY APPLICABLE AMENDMENTS OR SUPPLEMENTS
AS THEY BECOME AVAILABLE BECAUSE THESE DOCUMENTS WILL CONTAIN
IMPORTANT INFORMATION. Shareholders may obtain a free copy of the
final joint proxy statement/prospectus (when available), as well as
other filings containing information about First National and
Carolina National at the SEC's internet site (http://www.sec.gov/).
Free copies of the final joint proxy statement/prospectus and each
company's filings with the SEC may also be obtained from the
respective companies. Free copies of First National's filings may
be obtained by directing a request to First National Bancshares,
Inc., 215 N. Pine Street, Spartanburg, South Carolina, 29302,
Attention: Jerry L. Calvert. Free copies of Carolina National's
filings may be obtained by directing a request to Carolina National
Corporation, 1350 Main St., Columbia, South Carolina 29201,
Attention: Roger B. Whaley. PARTICIPANTS IN THE SOLICITATION First
National, Carolina National, and their respective directors and
executive officers may be soliciting proxies from their respective
shareholders in favor of the merger. Information regarding First
National's directors and executive officers is available in its
2007 definitive proxy statement (form type DEF 14A) available at
http://www.sec.gov/. Information regarding Carolina National's
directors and executive officers is available in its 2007
definitive proxy statement (form type DEF 14A) available at
http://www.sec.gov/. Other information regarding the participants
in the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, are
contained in the preliminary joint proxy statement/prospectus and
other relevant materials to be filed with the SEC when they become
available. First National Bancshares, Inc. Summary Quarterly
Financial Data (unaudited) (Dollars in thousands, except per share
data) Income Statement Data: For Nine Months Ended Sept. 30,
Increase/ 2007 2006 (Decrease) Interest income $29,404 $20,364
44.4% Interest expense 16,551 10,219 62.0% Net interest income
12,853 10,145 26.7% Provision for loan losses 1,213 940 29.0% Net
interest income after provision for loan losses 11,640 9,205 26.5%
Noninterest income 2,887 1,398 106.5% Noninterest expense 10,152
6,452 57.3% Income before income taxes 4,375 4,151 5.4% Provision
for income taxes 1,452 1,467 (1.0%) Net income $2,923 $2,684 8.9%
Selected Performance Ratios (annualized): Net interest margin 3.42%
3.79% (9.8%) Return on average assets 0.75% 0.97% (22.7%) Return on
average equity 11.43% 15.35% (25.5%) Efficiency ratio 64.50% 55.90%
15.4% Per Share Data and Shares Outstanding(1): Net income - basic
$0.74 $0.75 (1.3%) Net income - diluted 0.62 0.63 (1.6%) Book value
per common share $8.10 $6.88 17.7% Weighted average common shares
outstanding: Basic 3,696,135 3,584,073 3.1% Diluted 4,704,425
4,291,255 9.6% Common shares outstanding at period end 3,695,822
3,700,505 (0.1%) Income Statement Data: For Three Months Ended
Sept. 30, Increase/ 2007 2006 (Decrease) Interest income $10,618
$7,622 39.3% Interest expense 5,981 3,967 50.8% Net interest income
4,637 3,655 26.9% Provision for loan losses 422 243 73.7% Net
interest income after provision for loan losses 4,215 3,412 23.5%
Noninterest income 1,182 471 151.0% Noninterest expense 3,550 2,204
61.1% Income before income taxes 1,847 1,679 10.0% Provision for
income taxes 567 596 (4.9%) Net income $1,280 $1,083 18.2% Selected
Performance Ratios (annualized): Net interest margin 3.39% 3.78%
(10.3%) Return on average assets 0.91% 1.09% (16.5%) Return on
average equity 10.85% 17.78% (39.0%) Efficiency ratio 61.01% 53.44%
14.2% Per Share Data and Shares Outstanding(1): Net income - basic
$0.29 $0.30 (3.3%) Net income - diluted $0.24 $0.25 (4.0%) Weighted
average shares outstanding: Basic 3,695,822 3,610,632 2.4% Diluted
5,289,673 4,293,718 23.2% (1) All share amounts reflect the 3 for 2
stock split distributed on January 18, 2006, the 6% stock dividend
distributed on May 16, 2006, and the 7% stock dividend distributed
on March 30, 2007. Balance Sheet Data: As of Sept. 30, Increase/
2007 2006 (Decrease) Total assets $574,104 $418,020 37.3% Loans,
net of unearned income (2) 458,322 339,978 34.8% Mortgage loans
held for sale 17,837 - 100.0% Allowance for loan losses 4,781 3,543
34.9% Securities available for sale 75,230 57,751 30.3% Deposits
Noninterest-bearing 31,383 29,018 8.2% Interest-bearing 422,395
301,463 40.1% Total deposits 453,778 330,481 37.3% FHLB advances
and other borrowed funds 56,539 46,073 22.7% Junior subordinated
debentures 13,403 13,403 - Shareholders' equity $46,289 $25,444
81.9% Average equity to average assets ratio 6.60% 6.34% 4.1% Total
loans to deposits(2) 101.00% 102.87% (1.8%) Asset Quality Data:
Nonperforming loans $6,100 $1,129 440.3% Other real estate owned
1,911 - 100.0% Total nonperforming assets $8,011 $1,129 609.6% As
of or for the nine months Asset Quality Ratios: ended Sept. 30,
Increase/ 2007 2006 (Decrease) Nonperforming assets to total
loans(2) 1.75% 0.33% 429.7% Nonperforming assets to total assets
1.40% 0.27% 416.8% Net chargeoffs quarter-to-date to average total
loans(2) 0.14% 0.01% 1300.0% Net chargeoffs year-to-date to average
total loans(2) 0.07% 0.04% 75.0% Allowance for loan losses to
nonperforming assets 59.68% 313.82% (81.0%) Allowance for loan
losses to total loans(2) 1.04% 1.05% (1.0%) (2) Total loans include
nonperforming loans, but not mortgage loans held for sale.
DATASOURCE: First National Bancshares, Inc. CONTACT: Jerry L.
Calvert of First National Bancshares, Inc., +1-864-594-5690 Web
site: http://www.firstnational-online.com/
Copyright
Carolina National (NASDAQ:CNCP)
Historical Stock Chart
From May 2024 to Jun 2024
Carolina National (NASDAQ:CNCP)
Historical Stock Chart
From Jun 2023 to Jun 2024