Superior Bancorp Announces First Quarter 2008 Earnings

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Supernova Metals Corp	CSE:SUPR	CSE	Common Stock

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-- First quarter 2008 earnings per share: $0.07 BIRMINGHAM, Ala., April 28 /PRNewswire-FirstCall/ -- Superior Bancorp (Nasdaq: SUPRD until May 27, 2008; SUPR thereafter) announced today its first quarter 2008 earnings. A summary of its results is provided below and in the attached selected financial data. As of and for the Quarter Ended (Dollars in thousands, except per March 31, March 31, share data) 2008 2007 Total assets $2,963,899 $2,451,810 Total loans, net of unearned income 2,066,192 1,675,317 Total deposits, excluding brokered certificates of deposit 2,107,123 1,694,524 Net income 695 2,298 Net income per common share (1) 0.07 0.26 Total branches 74 60 (1) -- Retroactively restated to reflect 1-for-4 reverse stock split effective April 28, 2008. CEO Stan Bailey stated, "Our priorities in the current credit cycle are managing the quality of our balance sheet, fulfilling the potential of our 20 new branches, obtaining customers from our new foreign and 'big bank' competition, running a profitable operation and remaining a 'well capitalized' bank. Our first quarter performance is consistent with these priorities." First Quarter 2008 Performance First quarter 2008 net income was $695,000, or $.07 per share, compared to $1.9 million for the fourth quarter of 2007 and $2.3 million for the first quarter of 2007. First quarter 2008 net income includes the effect of $1.4 million, net of tax effect, in new branch overhead expense and $564,000, net of tax effect, in core deposit intangible amortization compared to first quarter 2007 core deposit amortization of $192,000, net of tax effect. First quarter 2007 results do not include the effect of Superior Bancorp's acquisition of People's Community Bancshares, Inc., which was completed on July 27, 2007. Superior Bancorp's total deposits, excluding brokered certificates of deposit, at March 31, 2008, increased 1.2% (4.9% annualized) to $2.1 billion from December 31, 2007 and increased 24% from March 31, 2007. The acquisition of People's Community Bancshares, Inc. accounted for approximately 16% of the deposit growth since March 31, 2007. As of March 31, 2008 Superior Bancorp's de novo branches accounted for approximately $208 million of core deposits, predominantly from new customer relationships. Customer dislocation resulting from recent merger activities in Superior's markets also contributed to the deposit performance. Loans increased to $2.1 billion at March 31, 2008, an increase of 2.4% (9.6% annualized) from December 31, 2007 and 23.3% from March 31, 2007. Credit Quality With regard to credit quality at March 31, 2008, non-performing assets ("NPAs") were 1.81% of total loans plus NPAs compared to 1.47% at December 31, 2007, which is in line with management's expectations. The $7.8 million NPA increase during the first quarter of 2008 was predominantly located in Superior's Florida segment, with the largest exposure being one relationship of approximately $1.3 million and several smaller real estate credits. The increase also included one real estate relationship in the Alabama segment of about $2.7 million in addition to several smaller credits. Non-performing loans ("NPLs") to total loans increased to 1.49% at March 31, 2008 from 1.26% at December 31, 2007, with the increase primarily related to the construction and single-family residential portfolios, which collectively accounted for approximately 86% of the total increase. Allowance for loan losses to NPLs decreased to 75.42% at March 31, 2008 from 90.31% at December 31, 2007. Overall past due loans declined during the first quarter with the 90 days past due (DPD) and still accruing category moving to 0.00% from 0.10% as a percentage of total loans at December 31, 2007. Loans in the 30-89 DPD category increased to 1.25% from 1.13% as a percentage of total loans at December 31, 2007. Net loan charge-offs as a percentage of average loans were 0.29% during the first quarter of 2008, compared to 0.33% and 0.24% during the fourth quarter of 2007 and the year ended December 31, 2007, respectively. Of the $1.5 million net charge-offs in the first quarter of 2008, approximately 40% were 1-4 family mortgage-related, 24% were commercial real estate-related and 27% were in the consumer finance subsidiaries. The provision for loan losses increased to $1.9 million in the first quarter of 2008, compared to $1.7 million in the fourth quarter of 2007 and $705,000 in the first quarter of 2007. This increase in the provision maintained the allowance for loan losses at 1.13% of net loans, or $23.3 million, at March 31, 2008, compared to 1.13% of net loans or $22.9 million, at December 31, 2007. Superior's management believes the allowance for loan losses at March 31, 2008 is appropriate to absorb any possible losses in the loan portfolio. Management's assessment of Superior's credit quality is based on various internal and external factors that affect the collectability of loans. Management is constantly monitoring and assessing these factors through a consistent methodology of estimating the allowance for loan losses. 1-for-4 Reverse Stock Split On April 28, 2008, Superior Bancorp completed a 1-for-4 reverse stock split of its issued and outstanding shares of common stock, reducing the number of authorized shares of common stock from 60,000,000 to 15,000,000 and the number of common shares outstanding from 40,211,230 to 10,052,808. This action brings Superior's authorized common shares and common shares outstanding in line with peer community banks. All disclosures regarding common stock and related per share information have been retroactively restated for all periods presented to reflect the reverse stock split. The 1-for-4 reverse stock split is effective in the market as of the open of business Monday, April 28, 2008 and Superior's new symbol is SUPRD. The "D" will be removed from the symbol as of the open of business Tuesday, May 27, 2008. De Novo Branch Expansion In furtherance of Superior's de novo branch strategy, the company has opened 18 of 20 planned new branches since September 2006 in key Alabama and Florida markets, representing approximately $208 million of core deposits as of March 31, 2008. For the first quarter of 2008, after-tax overhead expense associated with the new branches was $1.4 million, representing an approximately 3% annualized premium on deposits. Two more Alabama branches are scheduled to open before the end of 2008. Upon completion, Superior Bancorp will have invested approximately $25 to $30 million toward its de novo branch expansion program. Capital Superior Bank continues to be categorized as "well capitalized" under regulatory guidelines with a total risk-based capital ratio of 10.43% as of March 31, 2008. Other key equity ratios of Superior Bank at March 31, 2008 were total equity to total assets of 13.58% and tangible equity to tangible assets of 7.74%. Outlook The entire banking industry is operating in an adverse environment relative to maximizing short-term performance. Factors such as the challenging credit cycle, housing softness, gloomy media coverage, weakened consumer confidence and dramatic Federal Reserve rate reductions provide a stiff headwind in 2008. At Superior, management continues to adapt to these factors while remaining focused on taking the actions that management believes will ultimately result in enhanced shareholder value. About Superior Bancorp Superior Bancorp is a $3.0 billion thrift holding company headquartered in Birmingham, Alabama. The principal subsidiary of Superior Bancorp is Superior Bank, a Southeastern community bank and the third largest U.S.-owned bank headquartered in Alabama. Superior Bank has 74 branches with 43 locations throughout the state of Alabama and 31 locations in Florida. Superior Bank currently has two new branches planned for Alabama during the remainder of 2008 in addition to those that have opened since September 2006. Superior Bank operates 22 consumer finance offices in North 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. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Some of the disclosures in this Annual Report on Form 10-K, including any statements preceded by, followed by or which include the words "may," "could," "should," "will," "would," "hope," "might," "believe," "expect," "anticipate," "estimate," "intend," "plan," "assume" or similar expressions constitute forward-looking statements. These forward-looking statements, implicitly and explicitly, include the assumptions underlying the statements and other information with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates, intentions, financial condition, results of operations, future performance and business, including our expectations and estimates with respect to our revenues, expenses, earnings, return on equity, return on assets, efficiency ratio, asset quality, the adequacy of our allowance for loan losses and other financial data and capital and performance ratios. Although we believe that the expectations reflected in our forward-looking statements are reasonable, these statements involve risks and uncertainties which are subject to change based on various important factors (some of which are beyond our control). Such forward looking statements should, therefore, be considered in light of various important factors set forth from time to time in our reports and registration statements filed with the SEC. The following factors, among others, could cause our financial performance to differ materially from our goals, plans, objectives, intentions, expectations and other forward-looking statements: (1) the strength of the United States economy in general and the strength of the regional and local economies in which we conduct operations; (2) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; (3) inflation, interest rate, market and monetary fluctuations; (4) our ability to successfully integrate the assets, liabilities, customers, systems and management we acquire or merge into our operations; (5) our timely development of new products and services in a changing environment, including the features, pricing and quality compared to the products and services of our competitors; (6) the willingness of users to substitute competitors' products and services for our products and services; (7) the impact of changes in financial services policies, laws and regulations, including laws, regulations and policies concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; (8) our ability to resolve any legal proceeding on acceptable terms and its effect on our financial condition or results of operations; (9) technological changes; (10) changes in consumer spending and savings habits; (11) the effect of natural disasters, such as hurricanes, in our geographic markets; and (12) regulatory, legal or judicial proceedings. 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 Condensed Consolidated Statements of Financial Condition (Dollars In Thousands) March 31, December 31, 2008 2007 2007 (Unaudited) (Unaudited) Assets Cash and due from banks $67,057 $47,339 $52,983 Interest bearing deposits in other banks 5,515 12,447 6,916 Federal funds sold 10,647 14,889 3,452 Investment securities available for sale 367,975 342,837 361,171 Tax lien certificates 12,085 12,188 15,615 Mortgage loans held for sale 41,789 28,059 33,408 Loans, net of unearned income 2,066,192 1,675,317 2,017,011 Less: Allowance for loan losses (23,273) (18,977) (22,868) Net loans 2,042,919 1,656,340 1,994,143 Premises and equipment, net 104,687 95,689 104,799 Accrued interest receivable 15,566 13,440 16,512 Stock in FHLB 19,227 13,383 14,945 Cash surrender value of life insurance 45,731 40,895 45,277 Goodwill and other intangibles 186,519 128,743 187,520 Other assets 44,182 45,561 48,684 Total assets $2,963,899 $2,451,810 $2,885,425 Liabilities and Stockholders' Equity Deposits Noninterest-bearing $226,256 $189,729 $207,602 Interest-bearing - brokered certificates of deposit 58,761 166,169 118,893 - customer deposits 1,880,867 1,504,795 1,874,116 Total deposits 2,165,884 1,860,693 2,200,611 Advances from FHLB 312,832 200,840 222,828 Federal funds borrowed and security repurchase agreements 6,619 23,022 17,075 Notes payable 9,500 5,993 9,500 Junior subordinated debentures owed to unconsolidated subsidiary trusts 53,658 43,859 53,744 Accrued expenses and other liabilities 63,571 38,872 31,625 Total liabilities 2,612,064 2,173,279 2,535,383 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 15,000,000 shares; shares issued 10,373,556, 8,684,761, and 10,380,658 respectively; outstanding 10,052,808, 8,664,592, and 10,027,079, respectively 11 9 10 Surplus 329,008 254,020 329,232 Retained earnings 34,252 28,234 33,557 Accumulated other comprehensive gain (loss) 966 (1,024) 174 Treasury stock, at cost (11,364) (716) (12,309) Unearned ESOP stock (582) (1,992) (622) Unearned restricted stock (456) - - Total stockholders' equity 351,835 278,531 350,042 Total liabilities and stockholders' equity $2,963,899 $2,451,810 $2,885,425 Superior Bancorp and Subsidiaries Condensed Consolidated Statements of Income (Amounts In Thousands, Except Per Share Data) Three Months Ended Year Ended March 31, December 31, 2008 2007 2007 (Unaudited) Interest income Interest and fees on loans $37,346 $34,312 $150,443 Interest on investment securities: Taxable 4,052 4,439 17,174 Exempt from Federal income tax 430 129 897 Interest on federal funds sold 80 127 471 Interest and dividends on other investments 644 737 2,944 Total interest income 42,552 39,744 171,929 Interest expense Interest on deposits 20,253 17,468 79,667 Interest on FHLB advances and other borrowings 2,792 3,249 12,971 Subordinated debentures 1,015 993 4,129 Total interest expense 24,060 21,710 96,767 Net interest income 18,492 18,034 75,162 Provision for loan losses 1,872 705 4,541 Net interest income after provision for loan losses 16,620 17,329 70,621 Noninterest income Service charges and fees on deposits 2,103 1,786 7,957 Mortgage banking income 1,266 950 3,860 Investment securities gains 402 243 308 Change in fair value of derivatives 1,050 (152) 1,310 Increase in cash surrender value of life insurance 552 448 1,895 Other income 1,228 811 4,027 Total noninterest income 6,601 4,086 19,357 Noninterest expenses Salaries and employee benefits 12,141 10,098 42,316 Occupancy, furniture and equipment expense 4,060 3,127 13,391 Amortization of intangibles 896 304 1,691 Loss on extinguishment of debt - - 1,469 Merger related costs 108 319 639 Loss on termination of ESOP - - 158 Other operating expenses 5,059 4,178 18,559 Total noninterest expenses 22,264 18,026 78,223 Income before income taxes 957 3,389 11,755 Income tax expense 262 1,091 4,134 Net income $695 $2,298 $7,621 Basic net income per common share $0.07 $0.27 $0.82 Diluted net income per common share $0.07 $0.26 $0.82 Weighted average common shares outstanding 10,011 8,610 9,244 Weighted average common shares outstanding, assuming dilution 10,045 8,760 9,333 SUPERIOR BANCORP AND SUBSIDIARIES UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars in thousands, except per share data) As of and As of and for the for the Year Three-Months Ended Ended March 31, December 31, 2008 2007 2007 Selected Average Balances : Total assets $2,897,591 $2,422,721 $2,620,962 Loans, net of unearned income 2,032,730 1,647,768 1,814,032 Mortgage loans held for sale 37,582 19,626 24,997 Investment securities 347,167 352,789 350,561 Total interest-earning assets 2,472,689 2,077,159 2,246,177 Noninterest-bearing deposits 216,745 179,567 191,066 Interest-bearing deposits 1,982,981 1,649,267 1,790,719 Advances from FHLB 246,247 207,851 221,831 Federal funds borrowed and security repurchase agreements 8,389 23,984 17,061 Junior subordinated debentures owed to unconsolidated subsidiary trusts 53,707 43,936 48,557 Total interest-bearing liabilities 2,304,554 1,934,405 2,088,719 Stockholders' equity 351,350 276,419 308,272 Per Share Data (8): Net income - basic $0.07 $0.27 $0.82 - diluted $0.07 $0.26 $0.82 Weighted average common shares outstanding - basic 10,011 8,610 9,244 Weighted average common shares outstanding - diluted 10,045 8,760 9,333 Common book value per share at period end $35.00 $32.14 $34.91 Tangible common book value per share at period end $16.44 $17.29 $16.21 Common shares outstanding at period end 10,053 8,665 10,027 Performance Ratios and Other Data: Return on average assets(1) 0.10% 0.38% 0.29% Return on average tangible assets 0.10 0.41 0.31 Return on average stockholders' equity(1) 0.80 3.37 2.47 Return on average tangible equity 1.70 6.33 4.91 Net interest margin(1)(2)(3) 3.04 3.53 3.37 Net interest spread(1)(3)(4) 2.76 3.22 3.04 Noninterest income to average assets(1)(5) 0.72 0.66 0.67 Noninterest expense to average assets(1)(6) 2.95 2.91 2.83 Efficiency ratio (7) 88.92 78.79 79.48 Average loan to average deposit ratio 94.12 91.17 92.80 Average interest-earning assets to average interest bearing liabilities 107.30 107.38 107.54 Intangible assets - goodwill $162,466 $113,988 $162,466 - core deposit intangible ("CDI") and other intangibles 24,053 14,755 25,054 Assets Quality Ratios: Nonaccrual loans $30,543 $7,645 $22,533 Accruing loans 90 days or more delinquent 251 432 2,117 Restructured loans 65 503 671 Other real estate owned and repossessed assets 6,748 1,581 4,415 Net loan charge-offs 1,467 620 4,282 Allowance for loan losses to nonperforming loans 75.42% 221.18% 90.31% Allowance for loan losses to loans, net of unearned income 1.13 1.13 1.13 Nonperforming assets ("NPA") to loans plus NPAs, net of unearned income 1.81 0.61 1.47 NPAs to total assets 1.27 0.41 1.03 Net loan charge-offs to average loans(1) 0.29 0.15 0.24 Net loan charge-offs as a percentage of: Provision for loan losses 78.37 87.94 94.30 Allowance for loan losses(1) 25.28 13.25 18.72 (1)- Annualized for the three-month periods ended March 31, 2008 and 2007. (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 changes in fair value of derivatives and investment security gains(losses). (6)-Noninterest expense has been adjusted for CDI amortization, extinguishment of debt, termination of ESOP, 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, extinguishment of debt, termination of ESOP, 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)-Per share data has been retroactively restated to reflect 1-for-4 reverse stock split effective April 28, 2008. SUPERIOR BANCORP AND SUBSIDIARIES UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except Per Share Data) For the Three-Month Period Ended Reconciliation Table March 31, 2008 March 31, 2007 Net income (GAAP) $695 $2,298 Merger-related items, net of tax 68 201 Operating earnings (non-GAAP) $763 $2,499 As of March 31, 2008 March 31, 2007 Total stockholders' equity (GAAP) $351,835 $278,531 Intangible assets (GAAP) 186,519 128,743 Total tangible equity (non-GAAP) $165,316 $149,788 For the Three-Month Period Ended Other Financial Data of Subsidiary (Superior Bank) March 31, 2008 March 31, 2007 Net income $1,677 $3,283 Total stockholders equity 399,873 307,966 Return on average assets(1) 0.23% 0.56% Return on average tangible assets(1) 0.25% 0.59% Return on average stockholders' equity(1) 1.71% 4.34% Return on average tangible equity(1) 3.24% 7.48% (1) Annualized. DATASOURCE: Superior Bancorp CONTACT: Mark Tarnakow, Chief Financial Officer, Superior Bancorp, +1-205-327-3608 Web site: http://www.superiorbank.com/

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SUPR Supernova Metals Corp