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Re: sublime post# 63281

Monday, 07/30/2007 8:30:27 AM

Monday, July 30, 2007 8:30:27 AM

Post# of 72830
SUPR 8.48 Superior Bancorp's Second Quarter Income Increases 54%
- Purchased 4 branch properties in North Tampa
Jul 30, 2007 8:00:00 AM

BIRMINGHAM, Ala., July 30 /PRNewswire-FirstCall/ -- Superior Bancorp (Nasdaq: SUPR) announced today its second quarter 2007 net income of $2.0 million, or $.06 per share, an increase of 54% compared to net income of $1.3 million, or $.06 per share for the second quarter 2006.

CEO Stan Bailey stated, "We have adjusted our strategic plans for the current economic environment by accelerating our $25 to $30 million expansion program of 19 de novo offices, implementing a stock repurchase program, accelerating the remaining balance sheet engineering and maintaining double- digit net income growth. These steps along with maintaining stable credit quality continue to enhance our long term shareholder value regardless of the short term view of the banking sector by the investment community."

Net income for the first six months of 2007 was $4.3 million, or $0.12 per common share, including the $268,000 after-tax effect of merger-related expenses. This represents a 20% increase in net income per common share as compared to $2.1 million, or $.10 per share, for the first six months of 2006. A reconciliation of net income to operating earnings is provided in the selected financial data.

At June 30, 2007, Superior Bancorp's total assets had increased 61% to $2.470 billion, compared to total assets of $1.531 billion at June 30, 2006. Loans, net of unearned interest, increased $639 million, or 59%, to $1.720 billion from $1.081 billion at June 30, 2006. Deposits increased $745 million, or 65%, to $1.885 billion at June 30, 2007 from $1.140 billion at June 30, 2006. The 2006 acquisitions of Community Bancshares, Inc. and Kensington Bankshares, Inc. contributed an aggregate of approximately $470 million of loans and $700 million of deposits to the balance sheet growth. Excluding acquisitions, Superior grew its loan portfolio approximately 16% and deposits approximately 4% in the twelve months ended June 30, 2007.

Net interest income increased $7.1 million to $17.5 million for the second quarter of 2007 from $10.4 million in the second quarter of 2006. Net interest margin increased to 3.39% for the second quarter of 2007 from 3.18% for the second quarter of 2006. This increase reflects the second full quarter of the benefits from the bank mergers in 2006 and our continued realignment of our balance sheet mix.

Asset quality remained stable at June 30, 2007 with non-performing assets ("NPAs") at 0.76% of total loans plus NPAs compared to 0.63% at December 31, 2006. Net loan charge-offs as a percentage of average loans were 0.18% during the first six months of 2007 compared to 0.20% for all of 2006. The allowance for loan losses at June 30, 2007 was $19.1 million, or 1.11% of net loans, compared to $18.9 million, or 1.15% of net loans, at December 31, 2006.

Superior Bancorp and People's Community Bancshares Inc., of Sarasota, Florida, consummated their merger on July 27, 2007. The completed merger of People's Community Bank of the West Coast with Superior Bank, Superior Bancorp's principal subsidiary, creates a banking franchise totaling $2.8 billion in assets that serves its customers through 63 banking offices from Huntsville, Alabama to Venice, Florida. The Florida component, with approximately $1 billion in assets, has 25 branches from Panama City to Venice. The existing People's Community Bank of the West Coast locations will continue to be led by Neil McCurry and his management team and operate under the People's Community Bank banner.

Superior Bank opened 6 de novo branches between November 2006 and June 2007, with plans to open 8 branches in the remainder of 2007 and 5 branches in 2008 in Northeast Alabama and Florida. Superior Bank will invest approximately $25 to $30 million towards its de novo expansion program.

About Superior Bancorp

Superior Bancorp is a $2.8 billion thrift holding company headquartered in Birmingham, Alabama. The principal subsidiary of Superior Bancorp is Superior Bank, a Southeastern community federal savings bank. Superior Bank has 63 branches with 38 locations throughout the state of Alabama and 25 locations in Florida. In addition, Superior Bank currently has 13 new branches planned for Northeast Alabama and Florida during 2007 and 2008.

Superior Bank also has loan production offices in Montgomery, Alabama and Tallahassee, Marianna and Panama City, Florida, and operates 19 consumer finance offices in Northeast Alabama as 1st Community Credit and Superior Financial Services.

This press release contains financial information determined by methods other than in accordance with U. S. generally accepted accounting principles ("GAAP"). Superior's management uses these "non-GAAP" measures in their analysis of Superior's performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities. These non-GAAP measures may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on Superior's performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of Superior's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that are presented by other companies.

Statements in this document that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Superior Bancorp cautions that such "forward looking statements," wherever they occur in this document or in other statements attributable to Superior Bancorp are necessarily estimates reflecting the judgment of Superior Bancorp's senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the "forward looking statements." Such "forward looking statements" should, therefore, be considered in light of various important factors set forth from time to time in Superior Bancorp's reports and registration statements filed with the SEC. While it is impossible to list all such factors that could affect the accuracy of such "forward looking statements," some of those factors include: general economic conditions, especially in the Southeast; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in the competitive environment in the markets served by Superior Bancorp.; changes in the loan portfolio and the deposit base of Superior Bancorp; and the effects of natural disasters such as hurricanes.

Superior Bancorp disclaims any intent or obligation to update "forward looking statements."

More information on Superior Bancorp and its subsidiaries may be obtained
over the Internet, http://www.superiorbank.com, or by calling 1-877-326-BANK
(2265).



Superior Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars In Thousands)

June 30, Dec. 31,
2007 2006 2006
(Unaudited) (Unaudited)
Assets
Cash and due from banks $49,664 $22,712 $49,783
Interest bearing deposits in other
banks 4,718 5,191 10,994
Federal funds sold 12,843 9,055 25,185
Investment securities available for
sale 322,739 233,554 354,716
Tax lien certificates 18,457 6,054 16,313
Mortgage loans held for sale 23,213 23,142 24,433
Loans, net of unearned income 1,719,808 1,080,713 1,639,528
Less: Allowance for loan losses (19,147) (12,311) (18,892)
Net loans 1,700,661 1,068,402 1,620,636
Premises and equipment, net 89,620 59,452 94,626
Accrued interest receivable 14,405 7,593 14,387
Stock in FHLB 12,798 11,847 12,382
Cash surrender value of life insurance 41,273 39,841 40,598
Goodwill and other intangibles 128,976 11,998 129,520
Other assets 50,926 32,386 47,417

Total assets $2,470,293 $1,531,227 $2,440,990

Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $182,807 $103,696 $191,323
Interest-bearing deposits 1,701,998 1,036,569 1,679,518
Total deposits 1,884,805 1,140,265 1,870,841

Advances from FHLB 187,840 201,090 187,840
Federal funds borrowed and security
repurchase agreements 20,586 30,975 23,415
Notes payable 5,958 3,650 5,545
Junior subordinated debentures owed to
unconsolidated subsidiary trusts 43,770 31,959 44,006
Capital lease obligation 3,772 - 3,798
Accrued expenses and other liabilities 44,609 17,358 29,458
Total liabilities 2,191,340 1,425,297 2,164,903


Stockholders' Equity
Convertible preferred stock, par
value $.001 per share; authorized
5,000,000 shares;
- 0 - shares issued and outstanding - - -
Common stock, par value $.001 per
share; authorized 60,000,000
shares; shares issued 34,752,583,
20,357,446 and 34,732,345
respectively; outstanding
34,670,907, 20,171,497 and
34,651,669, respectively 35 20 35
Surplus 254,207 88,986 253,815
Retained earnings 30,205 23,618 26,491
Accumulated other comprehensive
loss (2,876) (4,949) (1,452)
Treasury stock, at cost (716) (310) (716)
Unearned ESOP stock (1,902) (1,435) (2,086)
Total stockholders' equity 278,953 105,930 276,087

Total liabilities and
stockholders' equity $2,470,293 $1,531,227 $2,440,990



Superior Bancorp and Subsidiaries
Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)

Three Months Year
Ended Six Months Ended Ended
June 30 June 30 Dec. 31
2007 2006 2007 2006 2006
(Unaudited) (Unaudited)
Interest income
Interest on investment
securities $34,986 $20,254 $69,297 $38,672 $92,659
Taxable 4,096 2,749 8,535 5,510 12,994
Exempt from Federal income tax 138 90 266 167 389
Interest on federal funds sold 156 51 283 86 570
Interest and dividends on other
investments 691 464 1,429 822 2,165

Total interest income 40,067 23,608 79,810 45,257 108,777

Interest expense
Interest on deposits 18,780 9,767 36,249 18,180 46,511
Interest on FHLB advances and
other borrowings 2,770 2,648 6,019 5,120 11,603
Subordinated debentures 1,004 780 1,996 1,541 3,269

Total interest expense 22,554 13,195 44,264 24,841 61,383

Net interest income 17,513 10,413 35,546 20,416 47,394

Provision for loan losses 1,000 700 1,705 1,300 2,500

Net interest income after
provision for loan losses 16,513 9,713 33,841 19,116 44,894

Noninterest income
Service charges and fees on
deposits 1,894 1,129 3,684 2,160 4,915
Mortgage banking income 1,132 708 2,082 1,238 2,997
Investment securities gains - - 242 - -
Change in fair value of
derivatives 118 (33) (34) 37 374
Increase in cash surrender value
of life insurance 452 359 900 780 1,580
Other income 942 664 1,750 1,114 1,945

Total noninterest income 4,538 2,827 8,624 5,329 11,811

Noninterest expenses
Salaries and employee benefits 10,168 5,798 20,236 11,666 26,805
Occupancy, furniture and
equipment expense 2,995 1,739 6,142 3,586 7,754
Amortization of intangibles 304 - 609 - 265
Merger costs 107 51 426 72 635
Subsidiary start-up costs - - - - 135
Other operating expenses 4,484 3,072 8,670 6,141 14,191

Total noninterest expenses 18,058 10,660 36,083 21,465 49,785

Income before income
taxes 2,993 1,880 6,382 2,980 6,920

Income tax expense 1,024 606 2,116 856 1,923

Net income $1,969 $1,274 $4,266 $2,124 $4,997

Basic net income per common share $0.06 $0.06 $0.12 $0.11 $0.21
Diluted net income per common
share $0.06 $0.06 $0.12 $0.10 $0.21

Weighted average common shares
outstanding 34,452 20,129 34,445 20,073 23,409
Weighted average common shares
outstanding, assuming dilution 34,940 20,757 34,989 20,716 24,034



SUPERIOR BANCORP AND SUBSIDIARIES
UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)

As of and for the Three-Months
Ended June 30,
2007 2006
Selected Average Balances:
Total assets $2,430,830 $1,468,775
Loans, net of unearned income 1,663,579 1,030,557
Mortgage loans held for sale 29,762 17,272
Investment securities 331,021 236,471
Total interest-earning assets 2,081,725 1,319,213
Noninterest-bearing deposits 179,366 93,705
Interest-bearing deposits 1,680,570 1,010,693
Advances from FHLB 188,104 174,497
Federal funds borrowed and security
repurchase agreements 13,732 34,113
Junior subordinated debentures owed
to unconsolidated subsidiary trusts 43,826 31,959
Total interest-bearing liabilities 1,935,989 1,254,930
Stockholders' Equity 278,695 105,477

Per Share Data:
Net income - basic $0.06 $0.06
- diluted $0.06 $0.06
Weighted average common shares
outstanding - basic 34,452 20,129
Weighted average common shares
outstanding - diluted 34,940 20,757
Common book value per share at period
end $8.05 $5.25
Tangible common book value per share
at period end $4.33 $4.66
Common shares outstanding at period
end 34,670 20,171

Performance Ratios and Other Data:
Return on average assets(1) 0.32% 0.35%
Return on average stockholders'
equity(1) 2.83 4.84
Net interest margin(1)(2)(3) 3.39 3.18
Net interest spread(1)(3)(4) 3.06 2.97
Noninterest income to average
assets(1)(5) 0.73 0.74
Noninterest expense to average
assets(1)(6) 2.91 2.89
Efficiency ratio(7) 80.23 80.36
Average loan to average deposit ratio 91.04 94.88
Average interest-earning assets to
average interest bearing liabilities 107.53 105.12
Intangible assets (8) $128,976 $11,998

Assets Quality Ratios:
Nonaccrual loans $11,020 $4,567
Accruing loans 90 days or more
delinquent 397 -
Restructured loans 501 203
Other real estate owned and
repossessed assets 1,125 866
Net loan charge-offs 830 388
Allowance for loan losses to
nonperforming loans 160.66% 258.09%
Allowance for loan losses to loans,
net of unearned income 1.11 1.14
Nonperforming assets("NPA") to loans
plus NPA's, net of unearned income 0.76 0.52
NPA's to total assets 0.53 0.37
Nonaccrual loans to loans, net of
unearned income 0.64 0.42
Net loan charge-offs to average
loans(1) 0.20 0.15
Net loan charge-offs as a percentage
of:
Provision for loan losses 83.00 55.43
Allowance for loan losses(1) 17.39 12.64



As of and
As of the for the Year
Six Months Ended
Ended June 30, December 31,
2007 2006 2006
Selected Average Balances:
Total assets $2,426,798 $1,444,537 $1,683,325
Loans, net of unearned income 1,655,731 1,003,705 1,159,083
Mortgage loans held for sale 24,708 18,533 17,761
Investment securities 341,845 250,242 286,733
Total interest-earning assets 2,079,455 1,294,932 1,499,297
Noninterest-bearing deposits 179,466 92,583 111,757
Interest-bearing deposits 1,665,005 987,864 1,152,017
Advances from FHLB 197,923 175,040 191,612
Federal funds borrowed and security
repurchase agreements 18,830 33,402 32,607
Junior subordinated debentures owed to
unconsolidated subsidiary trusts 43,881 31,959 33,642
Total interest-bearing liabilities 1,935,202 1,231,960 1,414,290
Stockholders' Equity 277,563 105,418 140,827

Per Share Data:
Net income - basic $0.12 $0.11 $0.21
- diluted $0.12 $0.10 $0.21
Weighted average common shares
outstanding - basic 34,445 20,073 23,409
Weighted average common shares
outstanding - diluted 34,989 20,716 24,034
Common book value per share at period
end $8.05 $5.25 $7.97
Tangible common book value per share
at period end $4.33 $4.66 $4.23
Common shares outstanding at period
end 34,670 20,171 34,652

Performance Ratios and Other Data:
Return on average assets(1) 0.35% 0.30% 0.30%
Return on average stockholders'
equity(1) 3.10 4.06 3.55
Net interest margin(1)(2)(3) 3.46 3.19 3.17
Net interest spread(1)(3)(4) 3.14 2.99 2.93
Noninterest income to average
assets(1)(5) 0.69 0.72 0.66
Noninterest expense to average
assets(1)(6) 2.91 2.98 2.84
Efficiency ratio (7) 79.50 83.24 81.47
Average loan to average deposit ratio 91.11 94.61 93.12
Average interest-earning assets to
average interest bearing liabilities 107.45 105.11 106.01
Intangible assets (8) $128,976 $11,998 $129,520

Assets Quality Ratios:
Nonaccrual loans $11,020 $4,567 $7,773
Accruing loans 90 days or more
delinquent 397 - 514
Restructured loans 501 203 305
Other real estate owned and
repossessed assets 1,125 866 1,821
Net loan charge-offs 1,450 1,000 2,316
Allowance for loan losses to
nonperforming loans 160.66% 258.09% 219.88%
Allowance for loan losses to loans,
net of unearned income 1.11 1.14 1.15
Nonperforming assets("NPA") to loans
plus NPA's, net of unearned income 0.76 0.52 0.63
NPA's to total assets 0.53 0.37 0.43
Nonaccrual loans to loans, net of
unearned income 0.64 0.42 0.47
Net loan charge-offs to average
loans(1) 0.18 0.20 0.20
Net loan charge-offs as a percentage
of:
Provision for loan losses 85.04 76.92 92.64
Allowance for loan losses(1) 15.27 16.38 12.26


(1)- Annualized for the three- and six-month periods ended June 30, 2007
and 2006.
(2)- Net interest income divided by average earning assets.
(3)- Calculated on a taxable equivalent basis.
(4)- Yield on average interest-earning assets less rate on average
interest-bearing liabilities.
(5)- Noninterest income has been adjusted for such as change in fair value
of derivatives and investment security gains(losses).
(6)- Noninterest expense has been adjusted for CDI amortization, merger
related costs, management separation costs, losses on other real
estate and the loss on sale of assets,
(7)- Efficiency ratio is calculated by dividing noninterest expense,
adjusted for CDI amortization, merger related costs, management
separation costs, losses on other real estate and the loss on sale of
assets, by noninterest income, adjusted for changes in fair values
of derivatives and investment security gains (losses), plus net
interest income on a fully tax equivalent basis.
(8)- Intangible assets consist of goodwill of $114,587,000 and core
deposit intangibles ("CDI"), net of amortization, of $14,389,000.



SUPERIOR BANCORP AND SUBSIDIARIES
UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)

For the Three-Month For the Six-Month
Period Ended Period Ended
June 30, 2007 June 30, 2007
Reconciliation Table
Net income (GAAP) $1,969 $4,266
Merger-related items, net of tax 67 268

Operating earnings (non-GAAP) $2,036 $4,534


As of
June 30, June 30, December 31
2007 2006 2006
Total stockholders' equity (GAAP) $278,953 $105,930 $276,087
Intangible assets (GAAP) 128,976 11,998 129,520
Total tangible equity (non-GAAP) $149,977 $93,932 $146,567


For the Three-Month For the Six-Month
Period Ended Period Ended
Other Financial Data of
Subsidiary (Superior Bank) June 30, June 30, June 30, June 30,
2007 2006 2007 2006

Net income $3,160 $2,126 $6,444 $3,757
Total stockholders equity 307,919 126,631 307,919 126,631
Return on average assets(1) 0.53% 0.59% 0.54% 0.53%
Return on average stockholders'
equity(1) 4.10% 6.69% 4.22% 5.96%
Return on average tangible
equity(1) 7.04% 7.39% 7.26% 6.59%

(1) Annualized

SOURCE Superior Bancorp

----------------------------------------------

Mark Tarnakow
Chief Financial Officer
Superior Bancorp +1-205-327-3608




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