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