 |  |  |  |  |  |  |  |  |
|
Superior Bancorp Earnings Increase 50% as Community Merger Completed- Operating Earnings of $0.08 per Share
BIRMINGHAM, Ala., Jan. 29 /PRNewswire-FirstCall/ -- Superior Bancorp (NASDAQ: SUPR) announced today its fourth quarter 2006 operating earnings of $2.4 million, or $0.08 per common share. Operating earnings reflect net income adjusted to exclude after-tax merger-related expenses and management separation costs. CEO Stan Bailey stated, "Superior established 2006 as a growth year in terms of franchise expansion, balance sheet growth through partnerships with other community banks and through organic growth, while improving earnings performance and credit quality. I consider 2006 a very successful year, resulting in the creation of a $2.4 billion community bank with 57 banking offices from Huntsville, Alabama to Tampa, Florida. Now, we are focusing our efforts in 2007 on enhancing shareholder value through improved earnings performance and the integration of our new partners into a cohesive franchise serving high-growth markets in Alabama and Florida." Net income for the fourth quarter 2006 was $2.1 million, or $0.06 per common share, including the $347,000 after-tax effect of merger-related expenses and management separation costs. This represents a 50% increase in net income per common share, when compared to $813,000, or $.04 per share for the third quarter of 2006. A reconciliation of net income to operating earnings is provided in the selected financial data. For the year 2006, Superior Bancorp's net income was $5.0 million, or $0.21 per common share, compared to a loss of $(5.8) million, or $(0.42) per common share, in 2005. At December 31, 2006, Superior's total assets had increased 72% to $2.439 billion, compared to total assets of $1.415 billion at December 31, 2005. Loans, net of unearned interest, increased $677 million, or 70%, to $1.640 billion from $963 million at December 31, 2005. Deposits increased $825 million, or 79%, to $1.869 billion at December 31, 2006 from $1.044 billion at December 31, 2005. The Community and Kensington acquisitions contributed in aggregate approximately $470 million of loans and $700 million of deposits, respectively, to the balance sheet growth. Excluding acquisitions, Superior grew its loan portfolio approximately 21% and deposits approximately 11% during 2006. Net interest margin increased to 3.34% for the fourth quarter of 2006 from 3.26% for the fourth quarter of 2005. Fourth quarter 2006 net interest margin increased 0.30% from 3.04% in third quarter of 2006. This increase was largely due to the merger with Community Bank, the completion of approximately $150 million of transactions undertaken to deleverage the balance sheet, and the impact of purchase accounting relating to the Community and Kensington acquisitions. Asset quality continued to improve, as indicated by a 0.05% decline in non-performing assets ("NPAs") to 0.63% of total loans plus NPAs at December 31, 2006 compared to 0.68% at December 31, 2005. Net loan charge-offs as a percentage of average loans declined to 0.18% during the fourth quarter of 2006 compared to 0.32% in the fourth quarter of 2005. The allowance for loan losses at December 31, 2006 was $18.9 million, or 1.15% of net loans, compared to $12.0 million, or 1.24% of net loans, at December 31, 2005. During 2006, Superior announced and closed two banking partnerships through its acquisitions of 1st Kensington Bank of Tampa, Florida, with $340 million in assets, and Community Bank in North Alabama, with $560 million in assets. In early 2007, Superior announced an agreement to merge with the $325 million asset Peoples Community Bank of Sarasota, Florida. Upon completion of the Peoples acquisition and the 13 announced de novo branches, Superior will be a $2.8 billion community bank operating 73 offices in Alabama and Florida. The Peoples acquisition is currently expected to be completed in the second quarter of 2007, subject to the satisfaction of customary conditions to closing and the approval of the stockholders of Peoples. Looking forward, Superior expects to focus its short-term efforts on the integration of Kensington and Community while continuing its longer-term plan of expansion by opening approximately 13 new banking offices over the next 18 months in North Alabama and Florida. This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("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 may be 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
UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except Per Share Data)
As of and for the As of and for the
Three Months Twelve Months
Ended Dec. 31, Ended Dec. 31,
2006 2005 2006 2005
Selected Average Balances:
Total assets $2,183,425 $1,389,860 $1,683,325 $1,403,193
Loans, net of unearned
income 1,481,121 942,234 1,159,083 931,919
Mortgage loans held for
sale 18,801 15,843 17,761 15,293
Investment securities 362,936 247,396 286,733 262,595
Total interest-earning
assets 1,922,535 1,234,594 1,499,297 1,246,830
Noninterest-bearing
deposits 160,366 94,645 111,757 93,564
Interest-bearing deposits 1,488,958 968,762 1,152,017 972,915
Advances from FHLB 218,322 150,057 191,612 147,145
Federal funds borrowed and
security repurchase
agreements 29,550 22,097 32,607 25,226
Junior subordinated
debentures owed to
unconsolidated subsidiary
trusts 38,051 31,959 33,642 31,959
Total interest-bearing
liabilities 1,782,090 1,174,403 1,414,290 1,192,171
Stockholders' Equity 220,154 103,928 140,827 101,804
Per Share Data:
Net income (loss) -
basic (1) $0.07 $0.06 $0.21 $(0.42)
- diluted (1)(2) $0.06 $0.05 $0.21 $(0.42)
Weighted average shares
outstanding - basic 31,122 19,847 23,409 19,154
Weighted average shares
outstanding - diluted (2) 31,720 20,541 24,034 19,154
Common book value per
share at period end $7.95 $5.21 $7.95 $5.21
Tangible common book value
per share at period end $4.30 $4.61 $4.30 $4.61
Common shares outstanding
at period end 34,652 20,172 34,652 20,172
Performance Ratios and
Other Data:
Return on average assets (3) 0.37% 0.31% 0.30% (0.41)%
Return on average
stockholders' equity (3) 3.71 4.17 3.55 (5.68)
Net interest margin
(3)(4)(5) 3.34 3.26 2.93 3.14
Net interest spread
(3)(5)(6) 3.02 3.08 3.18 3.00
Noninterest income to
average assets (3)(7) 0.60 0.81 0.66 0.77
Noninterest expense to
average assets (3)(8) 2.83 3.06 2.87 3.14
Efficiency ratio (9) 80.01 82.27 82.23 87.99
Average loan to average
deposit ratio 90.94 90.42 93.12 88.82
Average interest-earning
assets to average
interest bearing
liabilities 107.88 105.13 106.01 104.58
Intangible assets (10) $126,789 $12,090 $126,789 $12,090
Assets Quality Ratios:
Nonaccrual loans $7,773 $4,550 $7,773 $4,550
Accruing loans 90 days or
more delinquent 514 49 514 49
Restructured loans 305 153 305 153
Other real estate
owned/repossessed assets 1,821 1,842 1,821 1,842
Net loan charge-offs 662 763 2,316 4,032
Allowance for loan losses
to nonperforming loans 240.30% 252.76% 240.30% 252.76%
Allowance for loan losses
to loans, net of unearned
income 1.15 1.25 1.15 1.25
Nonperforming assets
("NPA's") to loans plus
NPA's, net of unearned
income 0.63 0.68 0.63 0.68
Nonaccrual loans to loans,
net of unearned income 0.47 0.47 0.47 0.47
Net loan charge-offs to
average loans (3) 0.18 0.32 0.20 0.43
Net loan charge-offs as a
percentage of:
Provision for loan
losses 101.85 101.73 92.64 115.20
Allowance for loan
losses (3) 13.90 25.20 12.26 33.57
(1) - Earnings per share for the twelve-month period ended December 31,
2005 has been calculated on net income (loss) adjusted for
preferred stock dividends of $305,000 and the effect of the
preferred stock conversion totaling $2,006,000.
(2) - Common stock equivalents ("CSE's") of 1,002,000 were not included
for the twelve-month period ended December 31, 2005 because their
effect was anti-dilutive.
(3) - Annualized for the three- and twelve-month periods ended December
31, 2006 and 2005.
(4) - Net interest income divided by average interest earning assets.
(5) - Calculated on a taxable equivalent basis.
(6) - Yield on average interest-earning assets less rate on average
interest-bearing liabilities.
(7) - Noninterest income has been adjusted to exclude certain items such
as gain on sale of assets, insurance proceeds, changes in fair
value of derivatives and investment security gains(losses).
(8) - Noninterest expense has been adjusted to exclude certain items such
as merger related costs, subsidiary startup costs, loss on sale of
assets and management separation costs.
(9) - Efficiency ratio is calculated by dividing noninterest expense,
adjusted to exclude certain items such as management separation
costs, losses on other real estate and the loss on sale of assets,
by noninterest income, adjusted for gain on sale of assets,
insurance proceeds, changes in fair value of derivatives and
investment security gains (losses), plus net interest income on a
fully tax equivalent basis.
(10) - Intangible assets as of December 31, 2006 consist of goodwill of
$111,727,000, core deposit intangibles, net of amortization, of
$14,998,000, and other intangible assets of $64,000.
Superior Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in Thousands)
As of
December 31,
2006 2005
(Unaudited) (Audited)
Assets
Cash and due from banks $54,092 $35,088
Interest-bearing deposits in other
banks 10,728 9,772
Federal funds sold 19,319 -
Investment securities available for
sale 362,525 242,306
Tax lien certificates 16,313 289
Mortgage loans held for sale 24,433 21,355
Loans, net of unearned income 1,639,528 963,253
Less: Allowance for loan losses (18,892) (12,011)
Net loans 1,620,636 951,242
Premises and equipment, net 94,626 56,017
Accrued interest receivable 14,372 7,081
Stock in FHLB and Federal Reserve
Bank 13,382 10,966
Cash surrender value of life
insurance 40,598 39,169
Goodwill and other intangibles 126,789 12,090
Other assets 41,346 30,094
Total assets $2,439,159 $1,415,469
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $189,527 $92,342
Interest-bearing 1,679,255 951,354
Total deposits 1,868,782 1,043,696
Advances from FHLB 187,840 181,090
Federal funds borrowed and security
repurchase agreements 30,637 33,406
Notes payable 5,545 3,755
Junior subordinated debentures owed
to unconsolidated subsidiary trusts 40,532 31,959
Accrued expenses and other
liabilities 30,173 16,498
Total liabilities 2,163,509 1,310,404
Stockholders' Equity
Common stock, par value $.001 per
share; authorized 50,000,000
shares; shares issued 34,732,345
and 20,221,456, respectively;
outstanding 34,651,669 and
20,171,633, respectively 35 20
Surplus 253,662 87,979
Retained earnings 26,491 21,494
Accumulated other comprehensive
loss (1,736) (2,544)
Treasury stock, at cost (716) (341)
Unearned ESOP stock (2,086) (1,543)
Unearned restricted stock -
Total stockholders' equity 275,650 105,065
Total liabilities and
stockholders' equity $2,439,159 $1,415,469
Superior Bancorp and Subsidiaries
Consolidated Statements of Operations
(Amounts In Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
(Unaudited)(Unaudited) (Unaudited)(Audited)
Interest income
Interest and fees on loans $30,682 $17,364 $92,720 $63,895
Interest on investment securities
Taxable 4,238 2,843 12,994 11,632
Exempt from Federal income tax 116 67 389 246
Interest on federal funds sold 341 106 569 460
Interest and dividends on other
investments 746 278 2,166 1,047
Total interest income 36,123 20,658 108,838 77,280
Interest expense
Interest on deposits 15,678 8,004 46,511 27,915
Interest on FHLB advances and
other borrowings 3,391 1,828 11,603 7,493
Interest on subordinated debentures 931 731 3,269 2,847
Total interest expense 20,000 10,563 61,383 38,255
Net interest income 16,123 10,095 47,455 39,025
Provision for loan losses 650 750 2,500 3,500
Net interest income after
provision for loan losses 15,473 9,345 44,955 35,525
Noninterest income
Service charges and fees on
deposits 1,530 1,170 4,947 4,687
Mortgage banking income 839 657 2,997 2,558
Investment security gains (losses) - 29 - (948)
Change in fair value of derivatives 331 (165) 374 (325)
Increase in cash surrender value of
life insurance 357 413 1,579 1,544
Insurance proceeds - 114 - 5,114
Other income 549 602 1,926 2,067
Total noninterest income 3,606 2,820 11,823 14,697
Noninterest expense
Salaries and employee benefits 8,738 5,727 26,805 23,104
Occupancy, furniture and equipment
expense 2,430 1,742 7,821 7,680
Management separation costs 265 65 265 15,467
Merger related costs 285 - 635 -
Subsidiary startup costs - - 135 -
Other operating expense 4,399 3,243 14,194 14,369
Total noninterest expense 16,117 10,777 49,855 60,620
Income (loss) before income
taxes 2,962 1,388 6,923 (10,398)
Income tax expense (benefit) 903 296 1,926 (4,612)
Net income (loss) 2,059 1,092 4,997 (5,786)
Preferred stock dividends - - - 305
Effect of early conversion
of preferred stock - - - 2,006
Net income (loss) available
to common stockholders $2,059 $1,092 $4,997 $(8,097)
Basic net income (loss) per common
share $0.07 $0.06 $0.21 $(0.42)
Diluted net income (loss) per common
share $0.06 $0.05 $0.21 $(0.42)
Weighted average common shares
outstanding 31,122 19,847 23,409 19,154
Weighted average common shares
outstanding, assuming dilution 31,720 20,541 24,034 19,154
SUPERIOR BANCORP AND SUBSIDIARIES
UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except Per Share Data)
For the Three-Month
Period Ended
Reconciliation Table December 31, 2006
Net income $2,059
Merger-related items, net of tax 180
Management separation costs, net of tax 167
Operating earnings $2,406
Diluted net income per common share $0.06
Merger-related items, net of tax 0.01
Management separation costs, net of tax 0.01
Diluted operating earnings per common share $0.08
Website: http://www.superiorbank.com/ |
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2003 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
