First National Bancshares, Inc. (Nasdaq:FNSC) today announced its
results for the quarter ended March 31, 2010. First National
reported a decrease in troubled loans, an increase in recovery of
assets, and continuing improvements in such important
quarter-to-quarter indicators as core interest margins and
decreased expenses.
For the first quarter 2010, First National Bancshares, the
holding company for Spartanburg-based First National Bank of the
South, posted a net loss of $5.4 million to common shareholders --
more than two-thirds of which was a $3.7 million, non-cash
provision for loan losses that represents adjustments to the value
of the Company's assets. Most noninterest expense categories -- in
particular, salaries and benefits with a 20-percent reduction --
declined. FDIC insurance premiums, however, increased almost 600
percent for the first quarter of 2010 to $757,000 as compared to
the first quarter of 2009, and this growth was in addition to
increases in other regulatory fees. Credit quality was positively
reflected in the significant year-to-year decrease of approximately
$31 million, or 80 percent, in 30-89-day delinquencies to $7.6
million as of March 31, 2010.
"While we are not pleased the first quarter resulted in a $5.4
million loss, we do see significant indications of progress. With
$3.7 million or 69 percent of that figure a result of non-cash
provisions for loan losses, we cannot lose sight that this
quarter's performance represents a decrease of $6 million, when
compared to the fourth quarter of 2009," J. Barry Mason, President
and CEO of both First National Bancshares and its subsidiary First
National Bank of the South, said. "We have weathered many storms in
this recession, though other challenges lie ahead for us."
Mason said: "We are encouraged by the performance of our newest
branch at Fort Mill/Tega Cay, which has attracted more than $25
million in deposits since opening a year ago," and cited these
significant positive events have transpired since year-end
2009:
-
Net interest margin improvement;
-
Overhead expense reduction;
-
Reduction in non-performing assets;
-
Recoveries of $1 million on nonperforming assets, and;
-
Increased liquidity.
"We continue to aggressively manage our balance sheet, from
write-downs of real-estate assets to allowing brokered deposits to
run off. Such actions demonstrate how diligently First National is
striving to improve its capital ratios," Mason said. "As we see
signs of our regional economy improving, First National remains
committed to its goals of making quality loans, attracting
deposits, and providing the very best service to its
customers."
First National also made continued progress in complying with
the recommendations of regulators. Like all U.S. banks, every First
National depositor is insured by the FDIC by up to
$250,000.
"Management is driving continuous improvements at First National
Bancshares. We believe we will continue to make major strides
as the economy recovers, as we gain additional capital, and as we
continue the bank's resilience in handling non-performing assets,"
C. Dan Adams, Chairman of First National Bancshares, said. "Though
the future is uncertain, First National remains committed to goals
of delivering value to our stakeholders -- customers,
communities and shareholders -- through capital, credit
quality and customer service."
First National Bancshares' 10-Q filing, with full financial
tables, is available at the U.S. Securities and Exchange
Commission site, www.sec.gov.
About First National Bancshares
First National Bancshares, Inc. (Nasdaq:FNSC) is a bank holding
company, based in Spartanburg, South Carolina, with approximately
$675 million in assets. It provides a wide range of financial
services to consumer and commercial customers through its wholly
owned banking subsidiary, First National Bank of the South, which
has full-service branches in six South Carolina counties.
Additional information about First National is available online at
www.fnbwecandothat.com.
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, and are thus prospective. Such forward-looking
statements include but are not limited to (1) statements regarding
potential future economic recovery, (2) statements with
respect to First National's plans, objectives, expectations and
intentions and other statements that are not historical facts, and
(3) other statements identified by words such as "believes,"
"expects," "anticipates," "estimates," "intends," "plans,"
"targets," and "projects," as well as similar
expressions. Such statements are subject to risks,
uncertainties, and other factors which could cause actual results
to differ materially from future results expressed or implied by
such forward-looking statements. 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 the future events, plans, or expectations contemplated
by our company will be achieved.
The following factors, among others, could cause actual results
to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: (1)
competitive pressures among depository and other financial
institutions may increase significantly and have an effect on
pricing, spending, third-party relationships and revenues; (2) the
strength of the United States economy in general and the strength
of the local economies in which First National conducts operations
may be different than expected resulting in, among other things, a
deterioration in the credit quality or a reduced demand for credit,
including the resultant effect on the company's loan portfolio and
allowance for loan losses; (3) the rate of delinquencies and
amounts of charge-offs, the level of allowance for loan loss, the
rates of loan growth, or adverse changes in asset quality in First
National's loan portfolio, which may result in increased credit
risk-related losses and expenses; (4) changes in the U.S. legal and
regulatory framework; and (5) adverse conditions in the stock
market, the public debt market and other capital markets (including
changes in interest rate conditions) could have a negative impact
on the company; and (6) whether First National will be able to
accomplish the directives contained in the Consent Order with the
Office of the Comptroller of the Currency effective as of April 27,
2009, and continue as a going concern. Additional factors that
could cause First National's results to differ materially from
those described in the forward-looking statements can be found in
First National's reports (such as Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K)
filed with the SEC and available at the SEC's Internet site
(http://www.sec.gov). All subsequent written and oral
forward-looking statements concerning the company or any person
acting on its behalf is expressly qualified in its entirety by the
cautionary statements above. First National does not undertake any
obligation to update any forward-looking statement to reflect
circumstances or events that occur after the date the
forward-looking statements are made.
CONTACT: Byrum Innovation Group, Inc.
Media Contact:
Reed Byrum, APR
864.567.7468
reedbyrum@byruminnovation.com
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