Snb Bancshares (NASDAQ:SNBT)
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SNB Bancshares, Inc. Announces Second Quarter 2005 Results
- Net Earnings for the Second Quarter Up 66.2% to $2.4 Million - Continued Net
Interest Margin Expansion - Second Quarter Average Loans Up 31.9%
SUGAR LAND, Texas, July 20 /PRNewswire-FirstCall/ -- SNB Bancshares, Inc.
(NASDAQ:SNBT), a Sugar Land bank holding company and the parent company of
Southern National Bank of Texas, a community-oriented, independent bank with
offices in both Harris and Fort Bend Counties, today reported strong growth in
net earnings for the second quarter 2005. Net earnings for the quarter ended
June 30, 2005 were $2.4 million or $0.19 per diluted share, an increase in net
earnings of $938 thousand or 66.2% compared with $1.4 million or $0.20 per
diluted share for the second quarter of 2004. Notwithstanding the significant
increase in net earnings, the slight decrease in diluted earnings per share for
the second quarter of 2005 compared with the same period in 2004 is the result
of the comparative impact of the 5.4 million shares of common stock issued in
connection with our initial public offering in August 2004. For computation of
diluted earnings per share, weighted average shares of common stock and Class B
stock outstanding during the second quarter of 2005 were 12.6 million compared
with 7.2 million weighted average shares outstanding during the second quarter
of 2004.
Net earnings for the six months ended June 30, 2005 were $169 thousand or $0.01
per diluted share, a decrease of $2.5 million or 93.7% compared with $2.7
million or $0.37 per diluted share for the same period in 2004. This decrease
in net earnings for the six months ended June 30, 2005 as compared with the six
months ended June 30, 2004 is primarily the result of a balance sheet
restructuring plan which resulted in an impairment writedown loss of
approximately $6.1 million before tax, or approximately $4.1 million net of
tax, during the quarter ended March 31, 2005. More specifically, during March
2005, in an effort to reduce our liability-sensitive position and to improve
our net interest margin, our Board of Directors approved a plan to reposition
our balance sheet by reducing the amount of low-yielding investment securities
and using a portion of the proceeds to de-leverage our borrowing position. We
identified for sale from our available-for-sale securities portfolio
approximately $169.0 million in U.S. Government callable agency bonds, with
coupon rates of 3.07% or less and with a weighted average yield of 2.76%.
"The restructuring and de-leveraging of our balance sheet and the associated
impairment charge during the first quarter 2005 was a necessary step to reduce
our risks in a rising interest rate environment and to improve profitability
going forward," said R. Darrell Brewer, Treasurer and Chief Financial Officer.
"While we remain liability-sensitive, paying down debt lessened our
liability-sensitive position, thus reducing our risk from rising interest
rates, and increased yields on our bond portfolio have improved our net
interest margin. We do not anticipate any need for further large-scale
securities sales. We intend to fund loan growth with deposits, short-term and
cash equivalent investments, cash flows from securities and short-term
borrowings as needed," said Brewer. "Of the $163 million in proceeds from the
sale of low yielding securities, which had a weighted average yield of
approximately 2.76%, $75 million was used to pay down Federal Home Loan Bank
borrowings, which had an average cost of funds of 2.48%. In addition, $88
million was reinvested in securities with a weighted average yield of
approximately 4.90%. Furthermore, we expect that we will benefit from
increased cash flows from these new securities."
Net earnings for the six months ended June 30, 2005, excluding the first
quarter's non-recurring after-tax impairment writedown loss of $4.1 million or
$0.33 per basic share, would have been $4.2 million, a 57.3% increase compared
with $2.7 million in the same period of 2004. Diluted earnings per share,
excluding the non-recurring impairment writedown loss, would have been $0.33 on
12.6 million shares for the six months ended June 30, 2005 compared with $0.37
on 7.2 million shares for the same period of 2004. Year-to-date earnings per
share comparisons are affected by the increased number of shares outstanding as
a result of our initial public offering in August 2004.
Net earnings excluding the non-recurring impairment writedown loss and diluted
earnings per share excluding the non-recurring impairment writedown loss are
considered non-GAAP financial measures as defined under the rules and
regulations of the Securities and Exchange Commission. Management believes
that this presentation of net earnings and diluted earnings per share excluding
such charge should clarify investors' understanding of the Company's earnings
performance during the six months ended June 30, 2005 compared with the same
period of 2004.
SECOND QUARTER RESULTS
During the second quarter 2005, strong loan growth and improving yields from
the loan portfolio helped offset higher cost of funds. Since June 2004 the
Federal Reserve Bank's Federal Open Market Committee has raised the target Fed
funds rate nine times, by a quarter-point each time, taking Fed funds from
1.00% to 2.25% by year-end 2004, and to 3.25% at June 30, 2005. The Wall
Street Journal prime rate has followed suit, its rate increasing from 4.00% to
5.25% by year-end 2004, and to 6.25% at June 30, 2005. In spite of this
significant increase in short term interest rates over the past 12 months, our
net interest margin on a tax equivalent basis in the second quarter of 2005
expanded 53 basis points compared with the second quarter of 2004.
Net Interest Income
Net interest income for the second quarter of 2005 increased 23.2% to $8.6
million compared with $7.0 million for the same period in 2004. The increase
was primarily due to a 31.9% increase in average loans outstanding and a 121
basis point increase in the weighted average yield on earning assets, partially
offset by a 92 basis point increase in weighted average rates on
interest-bearing liabilities. The average balance of interest- earning assets
in the second quarter of 2005 increased $34.8 million compared with the same
period in 2004 while the average yield increased to 5.64% from 4.43%. As a
result of the balance sheet restructuring plan, the weighted average yield on
investment securities increased 76 basis points to 3.97% for the three months
ended June 30, 2005 compared with 3.21% for the same period in 2004. The
average balance of interest-bearing liabilities decreased $31.4 million in the
second quarter of 2005 compared with the second quarter of 2004. The weighted
average rate on total interest bearing liabilities increased to 2.80% in the
second quarter of 2005 from 1.88% in the second quarter of 2004.
The provision for loan losses in the second quarter of 2005 was $650 thousand,
a decrease compared with $900 thousand in the second quarter of 2004. Net
interest income after provision for loan losses increased 30.8% to $7.9 million
for the second quarter of 2005 compared with $6.1 million in the same period in
2004.
Non-interest Income
Non-interest income totaled $545 thousand in the second quarter of 2005
compared with $488 thousand in the second quarter of 2004, an increase of $57
thousand primarily due to growth in deposit account fees and fees for other
services. We posted $128 thousand in gains on the sale of securities in the
second quarter of 2005 compared with $144 thousand in gains on sales of
securities during the same period in 2004.
Non-interest Expense
Non-interest expense in the second quarter of 2005 increased 11.2% to $4.9
million compared with $4.4 million in the second quarter of 2004, primarily due
to increases in salaries and employee benefits, higher legal and professional
fees associated with being a publicly traded company, including Sarbanes-Oxley
compliance costs, continued technology upgrades and costs related to our new
branch in Katy.
RESULTS FOR SIX MONTHS ENDED JUNE 30, 2005
Net earnings for the six months ended June 30, 2005 were $169 thousand or $0.01
per diluted share, a decrease of $2.5 million or 93.7%, compared with $2.7
million or $0.37 per diluted share for same period in 2004. This decrease in
net earnings for the six months ended June 30, 2005 compared with the six
months ended June 30, 2004 is the result of the balance sheet restructuring
plan which resulted in an impairment writedown loss of approximately $6.1
million before tax (approximately $4.1 million after tax) during the quarter
ended March 31, 2005. This $6.1 million writedown loss, combined with a
decrease in gains on sales of securities of $375 thousand and a $1.2 million
increase in noninterest expenses, was partially offset by a $3.4 million
increase in net interest income, a $1.3 million decrease in the provision for
Federal income taxes and a $400 thousand decrease in the provision for loan
losses.
Diluted earnings per share excluding the non-recurring impairment charge would
have been $0.33 on 12.6 million shares for the six months ended June 30, 2005
compared with $0.37 on 7.2 million shares for the same period of 2004.
Net Interest Income
For the six months ended June 30, 2005, net interest income increased $3.4
million to $16.5 million compared with $13.1 million for the same period in
2004. This increase is primarily due to a 13.0% increase in average earning
assets, partially offset by a 7.2% increase in interest-bearing liabilities.
The average balance of interest-earning assets increased $122.6 million for the
six months ended June 30, 2005 compared with the same period in 2004, while the
average yield increased 91 basis points to 5.34% from 4.43%. The average
balance of interest-bearing liabilities increased $61.0 million for the six
months ended June 30, 2005, compared with the same period in 2004, while the
average rate increased 76 basis points to 2.67% from 1.91%. Our net interest
margin on a tax equivalent basis increased 32 basis points to 3.11% for the six
months ended June 30, 2005 compared with 2.79% for the same period in 2004.
Non-interest Income
For the six months ended June 30, 2005, non-interest income decreased by $6.4
million to a negative $5.2 million principally as a result of the $6.1 million
writedown loss in connection with the balance sheet restructuring plan and a
decrease of $375 thousand in gains on sales of securities.
Non-interest Expense
Non-interest expense for the six months ended June 30, 2005 was $9.8 million
compared with $8.6 million for the same period in 2004, an increase of $1.2
million or 13.6%, primarily due to a $426 thousand increase in compensation,
payroll taxes and benefits, a $452 thousand increase in legal and professional
fees and a $270 thousand increase in data processing expenses.
BALANCE SHEET REVIEW
Assets increased to $1.1 billion at June 30, 2005, up 1.6% from one year ago
and down 1.8% from December 31, 2004, principally as a result of the balance
sheet restructuring plan.
In the second quarter of 2005, total loans increased 29.8% compared with their
level at June 30, 2004 and 5.5% from the linked quarter to $664.9 million.
"Our loan growth continues to encompass all lending categories. The loan to
deposit ratio at June 30, 2005 reached 82.5%, showing success in our strategy
to increase this measure," said Harvey Zinn, President and Chief Executive
Officer. Commercial mortgage loans accounted for 44.9% of the loan portfolio
compared with 42.8% at June 30, 2004 and construction and land development
loans accounted for 22.1% compared with 23.2% at June 30, 2004.
Average deposits in the first six months of 2005 increased 2.6% to $848.1
million compared with $826.4 million in the first six months of 2004.
Noninterest-bearing demand deposits increased 9.9% and lower cost NOW, savings
and money market accounts increased 5.0% more than offsetting the 1.4% decline
in higher cost time deposits. "We continue our business strategy of providing
exceptional service to our community, allowing us to retain our deposit
customers," Brewer stated.
Shareholders' equity at June 30, 2005 more than doubled to $87.6 million from
$25.8 million at June 30, 2004, reflecting the $52 million in new equity raised
from the initial public offering in August 2004. Book value per share was
$7.05 at June 30, 2005, compared with $3.69 at June 30, 2004.
ASSET QUALITY
Nonperforming assets as of June 30, 2005 were $10.7 million, an increase of
$3.6 million compared with $7.4 million as of June 30, 2004, principally as a
result of an increase of $5.8 million in nonaccrual loans, partially offset by
a decrease in other real estate owned of $2.4 million. The $5.8 million
increase in nonaccrual loans was primarily the result of one business and
industrial loan, collateralized by furniture, fixtures and equipment and by
accounts receivable, in the amount of approximately $3.9 million placed on
nonaccrual status during June 2005. Although this loan was performing in
accordance with its terms, management was concerned about its future
performance and therefore placed it on nonaccrual status. Of the total
nonaccrual loans of approximately $8.4 million as of June 30, 2005, only two
loans totaling approximately $133 thousand were in excess of 30 days past due.
As a percentage of total loans and other real estate owned, nonperforming
assets were 1.61% at June 30, 2005, compared with 1.44% at June 30, 2004. At
March 31, 2005, nonperforming assets were $7.0 million, or 1.11% of total loans
and other real estate owned.
During the six months ended June 30, 2005, we recorded a provision for loan
losses of $1.3 million compared with $1.7 million for the same period in 2004.
The provision recorded in 2005 is less than the same period in 2004 primarily
due to having net recoveries of $16 thousand during the six months ended June
30, 2005 compared with $371 thousand in net charge-offs during the same period
of 2004. At June 30, 2005, the allowance for loan losses as a percentage of
total loans was 1.41% compared with 1.35% at June 30, 2004.
FRANCHISE GROWTH
"Our Katy branch has been open for approximately nine months and continues to
meet our goals, with deposit growth of approximately $1 million per month,"
said Zinn. "We have two de novo branch locations currently planned in Fort
Bend County. Our Pecan Grove location, which will be housed in leased space in
Richmond, Texas just southwest of Sugar Land, is scheduled to open in August
2005. In addition, we expect our Cinco Ranch location in Katy, Texas to open
during the first quarter of 2006. Additionally, we recently won the
competitive bids with respect to the depository contracts for two school
districts, Katy Independent School District and Fort Bend Independent School
District, both to begin in September 2005."
THE COMPANY
SNB Bancshares, Inc. (the "Company") is a bank holding company headquartered
approximately 15 miles southwest of downtown Houston in Sugar Land, Texas, the
largest city in fast growing Fort Bend County. The Company, with total assets
of $1.1 billion, total loans of $664.9 million, total deposits of $805.8
million and total shareholders' equity of $87.6 million, as of June 30, 2005,
has four full-service branches and two drive-through locations in Harris and
Fort Bend Counties.
Notice under the Private Securities Litigation Reform Act of 1995
Except for historical information contained herein, this press release may
constitute forward-looking statements for the purposes of the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as amended, and as
such, may involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from the results, performance or achievements
expressed or implied by such forward-looking statements. The Company intends
such forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation Act
of 1995, and is including this statement for purposes of said safe harbor
provisions.
The Company's actual results may differ materially from the results anticipated
in these forward-looking statements due to a variety of factors, including,
without limitation, the following: (a) the effects of future economic and
business conditions on the Company and our customers; (b) changes in
governmental legislation and regulations; (c) the risks of changes in interest
rates; (d) competition from other banks and financial institutions for customer
deposits and loans; (e) the failure of assumptions underlying the establishment
of reserves for loan losses; (f) changes in the levels of loan prepayments and
the resulting effects on the value of the Company's loan portfolio; (g) the
failure of assumptions underlying the establishment of and provisions made to
the allowance for loan losses; (h) the effect of changes in accounting policies
and practices which may be adopted by regulatory agencies and/or the Financial
Accounting Standards Board; (i) technological changes; (j) acquisition and
integration of acquired businesses; (k) the loss of senior management or
operating personnel and the potential inability to hire qualified personnel at
reasonable compensation levels; (l) acts of terrorism; and (m) other risks and
uncertainties listed from time to time in the Company's reports and other
documents filed with the Securities and Exchange Commission.
Contacts:
R. Darrell Brewer, CFO
(281) 269-7271
Whitney Rowe, Investor Relations & Corporate Secretary
(281) 269-7220
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except outstanding shares
and per share data)
(Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 % chg 2005 2004 % chg
EARNINGS SUMMARY:
Net earnings $2,355 $1,417 66.2% $169 $2,676 (93.7)%
Basic earnings
per share $0.19 $0.20 (6.5) $0.01 $0.38 (96.4)
Diluted earnings
per share 0.19 0.20 (5.0) 0.01 0.37 (97.3)
Weighted average
shares
outstanding:
Common stock 9,764,858 3,974,575 145.7 9,760,299 3,870,948 152.1
Class B
stock 2,670,095 3,019,414 (11.6) 2,674,372 3,123,041 (14.4)
Total 12,434,953 6,993,989 77.8 12,434,671 6,993,989 77.8
Shares outstanding
at end of period:
Common stock 9,782,478 4,312,148 126.9 9,782,478 4,312,148 126.9
Class B stock 2,652,475 2,681,841 (1.1) 2,652,475 2,681,841 (1.1)
Total 12,434,953 6,993,989 77.8 12,434,953 6,993,989 77.8
EARNINGS STATEMENT DATA:
Interest income:
Loans $10,819 $7,085 52.7% $20,616 $13,586 51.7%
Securities:
Taxable 3,593 4,030 (10.8) 7,519 7,351 2.3
Nontaxable 159 19 736.8 292 41 612.2
Federal funds
sold and
earning deposits 47 22 113.6 61 121 (49.6)
Total interest
income 14,618 11,156 31.0 28,488 21,099 35.0
Interest expense:
Demand deposits 1,708 1,025 66.6 3,494 1,976 76.8
Certificates and
other time
deposits 2,768 2,336 18.5 5,436 4,529 20.0
Junior
subordinated
debentures 671 516 30.0 1,295 1,037 24.9
Other borrowings 885 311 184.6 1,768 456 287.7
Total interest
expense 6,032 4,188 44.0 11,993 7,998 49.9
Net interest income 8,586 6,968 23.2 16,495 13,101 25.9
Provision for
loan losses 650 900 (27.8) 1,250 1,650 (24.2)
Net interest income
after provision 7,936 6,068 30.8 15,245 11,451 33.1
Noninterest income:
Service charges
on deposit
accounts 228 193 18.1 451 430 4.9
Gain on sale of
securities-net 128 144 (11.1) 128 503 (74.6)
Impairment write-
down of securities --- --- --- (6,144) --- N/M
Other 189 151 25.2 376 299 25.8
Total
noninterest
income 545 488 11.7 (5,189) 1,232 (521.2)
Noninterest Expense:
Salaries and
employee
benefits 2,934 2,757 6.4 5,867 5,441 7.8
Net occupancy
expense 440 438 0.5 845 887 (4.7)
Data processing 414 271 52.8 827 557 48.5
Legal and
professional
fees 353 153 130.7 742 290 155.9
FDIC deposit
insurance premium 31 28 10.7 60 53 13.2
Other 732 763 (4.1) 1,458 1,401 4.1
Total
noninterest
expense 4,904 4,410 11.2 9,799 8,629 13.6
Earnings before
income taxes 3,577 2,146 66.7 257 4,054 (93.7)
Provision for
income taxes 1,222 729 67.6 88 1,378 (93.6)
Net earnings $2,355 $1,417 66.2% $169 $2,676 (93.7)%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except outstanding shares
and per share data)
(Unaudited)
Q2 Q1 Q4 Q3 Q2
2005 2005 2004 2004 2004
EARNINGS STATEMENT
DATA:
Interest income:
Loans $10,819 $9,797 $9,153 $8,031 $7,085
Securities:
Taxable 3,593 3,926 3,992 4,184 4,030
Nontaxable 159 133 111 50 19
Federal Funds
Sold 47 14 19 14 22
Total
interest
income 14,618 13,870 13,275 12,279 11,156
Interest expense:
Demand
deposits 1,708 1,786 1,323 1,215 1,025
Certificates
and other
time deposits 2,768 2,668 2,333 2,179 2,336
Junior
subordinated
debentures 671 624 592 566 516
Other
borrowings 885 883 1,047 753 311
Total
interest
expense 6,032 5,961 5,295 4,713 4,188
Net interest
income 8,586 7,909 7,980 7,566 6,968
Provision
for loan losses 650 600 675 625 900
Net interest
income after
provision 7,936 7,309 7,305 6,941 6,068
Noninterest income:
Service charges
on deposit
accounts 228 223 163 193 193
Gain on sale
of securities-
net 128 --- --- 197 144
Impairment
write-down of
securities --- (6,144) --- --- ---
Other 189 187 182 153 151
Total
noninterest
income 545 (5,734) 345 543 488
Noninterest Expense:
Salaries and
employee
benefits 2,934 2,933 2,980 2,944 2,757
Net occupancy
expense 440 405 480 494 438
Data processing 414 413 377 284 271
Legal and
professional
fees 353 389 205 158 153
FDIC deposit
insurance
premium 31 29 31 31 28
Other 732 726 1,388 819 763
Total
noninterest
expense 4,904 4,895 5,461 4,731 4,410
Earnings (loss)
before income
taxes 3,577 (3,320) 2,189 2,753 2,146
Provision
(benefit) for
income taxes 1,222 (1,134) 736 935 729
Net earnings
(loss) $2,355 $(2,186) $1,453 $1,818 $1,417
Basic EPS $0.19 $(0.18) $0.12 $0.20 $0.20
Diluted EPS 0.19 (0.17) 0.11 0.19 0.20
Weighted average shares outstanding:
Common
stock 9,764,858 9,755,689 9,752,284 6,456,156 3,974,575
Class B
stock 2,670,095 2,678,696 2,679,498 2,680,521 3,019,414
Total 12,434,953 12,434,385 12,431,782 9,136,677 6,993,989
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Q2 Q2
2005 2004 % chg
BALANCE SHEET AVERAGES:
Loans $641,650 $486,394 31.9 %
Allowance for loan losses (9,013) (6,501) 38.6
Loans, net 632,637 479,893 31.8
Investment securities 386,894 504,454 (23.3)
Federal funds sold 1,366 8,371 (83.7)
Interest-earning deposits
in other financial
institutions 5,032 956 426.4
Cash and due from banks 14,907 14,348 3.9
Premises and equipment 18,810 12,661 48.6
Accrued interest receivable
and other assets 13,150 13,479 (2.4)
Total assets $1,072,796 $1,034,162 3.7 %
Demand deposits $118,122 $104,646 12.9 %
NOW, savings, and money
market accounts 337,496 342,693 (1.5)
Time deposits 369,909 404,545 (8.6)
Total deposits 825,527 851,884 (3.1)
Other borrowed funds 118,715 110,287 7.6
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable
and other liabilities 4,127 3,423 20.6
Total liabilities 986,619 1,003,844 (1.7)
Shareholders' equity 86,177 30,318 184.2
Total liabilities and
shareholders' equity $1,072,796 $1,034,162 3.7%
YTD YTD
2005 2004 % chg
BALANCE SHEET AVERAGES:
Loans $627,591 $461,230 36.1 %
Allowance for loan losses (8,706) (6,225) 39.9
Loans, net 618,885 455,005 36.0
Investment securities 436,613 458,366 (4.7)
Federal funds sold 1,104 16,821 (93.4)
Interest-earning deposits
in other financial
institutions 3,020 9,281 (67.5)
Cash and due from banks 16,113 16,358 (1.5)
Premises and equipment 17,599 12,461 41.2
Accrued interest receivable
and other assets 14,082 11,594 21.5
Total assets $1,107,416 $979,886 13.0 %
Demand deposits $111,737 $101,682 9.9 %
NOW, savings, and money
market accounts 356,637 339,681 5.0
Time deposits 379,735 385,069 (1.4)
Total deposits 848,109 826,432 2.6
Other borrowed funds 130,376 80,985 61.0
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable
and other liabilities 4,168 3,118 33.7
Total liabilities 1,020,903 948,785 7.6
Shareholders' equity 86,513 31,101 178.2
Total liabilities and
shareholders' equity $1,107,416 $979,886 13.0 %
June 30,
2005 2004
PERIOD END BALANCES:
Loans $664,899 $512,416 29.8 %
Allowance for loan losses (9,387) (6,929) 35.5
Loans, net 655,512 505,487 29.7
Investment securities 399,523 533,477 (25.1)
Federal funds sold 1,150 6,100 (81.1)
Interest-earning deposits
in other financial
institutions 642 91 605.5
Cash and due from banks 20,793 17,292 20.2
Premises and equipment 19,615 12,825 52.9
Accrued interest receivable
and other assets 12,063 16,624 (27.4)
Total assets $1,109,298 $1,091,896 1.6 %
Demand deposits $118,165 $114,401 3.3 %
NOW, savings, and money
market accounts 327,181 362,283 (9.7)
Time deposits 360,413 379,572 (5.0)
Total deposits 805,759 856,256 (5.9)
Other borrowed funds 173,100 168,500 2.7
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable
and other liabilities 4,570 3,101 47.4
Total liabilities 1,021,679 1,066,107 (4.2)
Shareholders' equity 87,619 25,789 239.8
Total liabilities and
shareholders' equity $1,109,298 $1,091,896 1.6 %
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands
(Unaudited)
Q2 Q1 Q4 Q3 Q2
2005 2005 2004 2004 2004
QUARTERLY AVERAGE
BALANCE SHEET HISTORY:
Loans $641,650 $613,375 $579,459 $533,607 $486,394
Allowance for
loan losses (9,013) (8,396) (7,748) (7,258) (6,501)
Loans, net 632,637 604,979 571,711 526,349 479,893
Investment
securities 386,894 486,885 496,204 517,041 504,454
Federal funds sold 1,366 838 1,496 816 8,371
Interest-earning
deposits in other
financial
institutions 5,032 986 1,849 2,985 956
Cash and due
from banks 14,907 17,333 16,316 13,116 14,348
Premises and
equipment 18,810 16,375 15,453 13,061 12,661
Accrued interest
receivable and
other assets 13,150 15,024 14,328 15,542 13,479
Total assets $1,072,796 $1,142,420 $1,117,357 $1,088,910 $1,034,162
Demand deposits $118,122 $105,280 $103,502 $111,968 $104,646
NOW, savings,
and money
market accounts 337,496 375,990 325,857 334,347 342,693
Time deposits 369,909 389,669 351,178 351,116 404,545
Total deposits 825,527 870,939 780,537 797,431 851,884
Other borrowed
funds 118,715 142,167 207,593 199,093 110,287
Junior subordinated
debentures 38,250 38,250 38,250 38,250 38,250
Accrued interest
payable and other
liabilities 4,127 4,209 3,977 3,536 3,423
Total
liabilities 986,619 1,055,565 1,030,357 1,038,310 1,003,844
Shareholders'
equity 86,177 86,855 87,000 50,600 30,318
Total
liabilities
and
shareholders'
equity $1,072,796 $1,142,420 $1,117,357 $1,088,910 $1,034,162
PERIOD END BALANCES
HISTORY:
Loans $664,899 $630,048 $598,292 $553,185 $512,416
Allowance for
loan losses (9,387) (8,738) (8,121) (7,473) (6,929)
Loans, net 655,512 621,310 590,171 545,712 505,487
Investment
securities 399,523 371,684 488,523 503,584 533,477
Federal funds sold 1,150 1,210 --- 1,735 6,100
Interest-earning
deposits in
other financial
institutions 642 25,773 441 2,179 91
Cash and due
from banks 20,793 15,950 20,794 13,692 17,292
Premises and
equipment 19,615 17,769 16,137 13,837 12,825
Accrued interest
receivable and
other assets 12,063 14,282 14,022 13,797 16,624
Total assets $1,109,298 $1,067,978 $1,130,088 $1,094,536 $1,091,896
Demand deposits $118,165 $111,408 $110,858 $103,007 $114,401
NOW, savings,
and money
market accounts 327,181 368,949 398,051 356,036 362,283
Time deposits 360,413 387,012 359,477 356,154 379,572
Total deposits 805,759 867,369 868,386 815,197 856,256
Other borrowed
funds 173,100 75,500 132,900 151,500 168,500
Junior subordinated
debentures 38,250 38,250 38,250 38,250 38,250
Accrued interest
payable and
other liabilities 4,570 3,489 4,151 3,536 3,101
Total
liabilities 1,021,679 984,608 1,043,687 1,008,483 1,066,107
Shareholders'
equity 87,619 83,370 86,401 86,053 25,789
Total
liabilities
and
shareholders'
equity $1,109,298 $1,067,978 $1,130,088 $1,094,536 $1,091,896
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
YIELD ANALYSIS:
For the Three Months Ended June 30,
2005
Average Interest Average
Outstanding Earned/ Yield/
Balance Paid Rate
Assets:
Interest-earning assets:
Loans $ 641,650 $ 10,819 6.67 %
Investment Securities 386,894 3,752 3.97
Federal funds sold 1,366 10 2.81
Interest-earning deposits
in other financial institutions 5,032 37 2.91
Total interest-earning assets 1,034,942 14,618 5.64 %
Less allowance for loan losses (9,013)
Total interest-earning assets,
net of allowance 1,025,929
Non-earning assets:
Cash and due from banks 14,907
Premises and equipment 18,810
Accrued interest receivable
and other assets 13,150
Total noninterest-earning
assets 46,867
Total assets $ 1,072,796
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
NOW, savings, and money market
accounts $ 337,496 $ 1,708 2.03 %
Time deposits 369,909 2,768 3.00
Junior subordinated debentures 38,250 671 6.94
Other borrowed funds 118,715 885 2.95
Total interest-bearing
liabilities 864,370 6,032 2.80 %
Noninterest-bearing liabilities:
Demand deposits 118,122
Accrued interest payable
and other liabilities 4,127
Total noninterest-bearing
liabilities 122,249
Total liabilities 986,619
Shareholders' equity 86,177
Total liabilities and
shareholders' equity $ 1,072,796
Net interest income $ 8,586
Net interest spread 2.84 %
Net interest margin
(tax equivalent) 3.33 %
For the Three Months Ended June 30,
2004
Average Interest Average
Outstanding Earned/ Yield/
Balance Paid Rate
Assets:
Interest-earning assets:
Loans $ 486,394 $ 7,085 5.76 %
Investment Securities 504,454 4,049 3.21
Federal funds sold 8,371 19 0.91
Interest-earning deposits
in other financial institutions 956 3 1.33
Total interest-earning assets 1,000,175 11,156 4.43 %
Less allowance for loan losses (6,501)
Total interest-earning assets,
net of allowance 993,674
Non-earning assets:
Cash and due from banks 14,348
Premises and equipment 12,661
Accrued interest receivable
and other assets 13,479
Total noninterest-earning
assets 40,488
Total assets $ 1,034,162
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
NOW, savings, and money market
accounts $ 342,693 $ 1,025 1.20 %
Time deposits 404,545 2,336 2.32
Junior subordinated debentures 38,250 516 5.34
Other borrowed funds 110,287 311 1.12
Total interest-bearing
liabilities 895,775 4,188 1.88 %
Noninterest-bearing liabilities:
Demand deposits 104,646
Accrued interest payable
and other liabilities 3,423
Total noninterest-bearing
liabilities 108,069
Total liabilities 1,003,844
Shareholders' equity 30,318
Total liabilities and
shareholders' equity $ 1,034,162
Net interest income $ 6,968
Net interest spread 2.55 %
Net interest margin
(tax equivalent) 2.80 %
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
RATE/VOLUME ANALYSIS:
For the Three Months Ended June 30, 2005
Compared with the Same Period in 2004
Increase
(Decrease)
Q2 Q2 Increase Due to Change in
2005 2004 (Decrease) Volume Rate Total
Interest-earning assets:
Loans $10,819 $7,085 $3,734 $2,231 $1,503 $3,734
Investment
securities 3,752 4,049 (297) (941) 644 (297)
Federal funds sold 10 19 (9) (16) 7 (9)
Interest-bearing
deposits in
other financial
institutions 37 3 34 14 20 34
Total interest income 14,618 11,156 3,462 1,288 2,174 3,462
Interest-bearing liabilities:
NOW, savings and
money market
accounts 1,708 1,025 683 (16) 699 683
Time deposits 2,768 2,336 432 (200) 632 432
Junior subordinated
debentures 671 516 155 --- 155 155
Other borrowed funds 885 311 574 23 551 574
Total in interest
expense 6,032 4,188 1,844 (193) 2,037 1,844
Net interest income $8,586 $6,968 $1,618 $1,481 $137 $1,618
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
YIELD ANALYSIS:
For the Six Months Ended June 30,
2005
Average Interest Average
Outstanding Earned/ Yield/
Balance Paid Rate
Assets:
Interest-earning assets:
Loans $627,591 $20,616 6.53%
Investment Securities 436,613 7,811 3.65
Federal funds sold 1,104 15 2.65
Interest-earning deposits in
other financial institutions 3,020 46 3.04
Total interest-earning
assets 1,068,328 28,488 5.34%
Less allowance for loan losses (8,706)
Total interest-earning assets,
net of allowance 1,059,621
Non-earning assets:
Cash and due from banks 16,113
Premises and equipment 17,599
Accrued interest receivable and
other assets 14,082
Total noninterest-earning
assets 47,795
Total assets $1,107,416
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
NOW, savings, and money market
accounts $356,637 $3,494 1.98%
Time deposits 379,735 5,436 2.89
Junior subordinated debentures 38,250 1,295 6.73
Other borrowed funds 130,376 1,768 2.70
Total interest-bearing
liabilities 904,998 11,993 2.67%
Noninterest-bearing liabilities:
Demand deposits 111,737
Accrued interest payable and
other liabilities 4,168
Total noninterest-bearing
liabilities 115,905
Total liabilities 1,020,903
Shareholders' equity 86,513
Total liabilities and
shareholders' equity $1,107,416
Net interest income $16,495
Net interest spread 2.67%
Net interest margin
(tax equivalent) 3.11%
For the Six Months Ended June 30,
2004
Average Interest Average
Outstanding Earned/ Yield/
Balance Paid Rate
Assets:
Interest-earning assets:
Loans $461,230 $13,586 5.83%
Investment Securities 458,366 7,392 3.23
Federal funds sold 16,821 77 0.91
Interest-earning deposits in
other financial institutions 9,281 44 0.94
Total interest-earning assets 945,698 21,099 4.43%
Less allowance for loan losses (6,225)
Total interest-earning assets,
net of allowance 939,473
Non-earning assets:
Cash and due from banks 16,358
Premises and equipment 12,461
Accrued interest receivable
and other assets 11,594
Total noninterest-earning
assets 40,413
Total assets $979,886
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
NOW, savings, and money market
accounts $339,681 $1,976 1.17%
Time deposits 385,069 4,529 2.37
Junior subordinated debentures 38,250 1,037 5.36
Other borrowed funds 80,985 456 1.13
Total interest-bearing
liabilities 843,985 7,998 1.91%
Noninterest-bearing liabilities:
Demand deposits 101,682
Accrued interest payable and
other liabilities 3,118
Total noninterest-bearing
liabilities 104,800
Total liabilities 948,785
Shareholders' equity 31,101
Total liabilities and
shareholders' equity $979,886
Net interest income $13,101
Net interest spread 2.52%
Net interest margin
(tax equivalent) 2.79%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
RATE/VOLUME ANALYSIS:
For the Six Months Ended June 30, 2005
Compared with the Same Period in 2004
Increase (Decrease)
Increase Due to Change in
2005 2004 (Decrease) Volume Rate Total
Interest-earning
assets:
Loans $20,616 $13,586 $7,030 $4,807 $2,223 $7,030
Securities 7,811 7,392 419 (348) 767 419
Federal funds
sold 15 77 (62) (70) 8 (62)
Interest-bearing
deposits in
other financial
institutions 46 44 2 (29) 31 2
Total interest
income 28,488 21,099 7,389 4,360 3,029 7,389
Interest-bearing
liabilities:
NOW, savings and
money market
accounts 3,494 1,976 1,518 98 1,420 1,518
Time deposits 5,436 4,529 907 (63) 970 907
Junior
subordinated
deferrable
interest
debentures 1,295 1,037 258 --- 258 258
Other borrowed
funds 1,768 456 1,312 278 1,034 1,312
Total interest
expense 11,993 7,998 3,995 313 3,682 3,995
Net interest
income $16,495 $13,101 $3,394 $4,047 $(653) $3,394
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
LOAN PORTFOLIO:
As of June 30, As of June 30,
2005 2004
Amount Percent Amount Percent
Business and industrial $78,626 11.8% $63,420 12.4%
Real estate:
Construction and land
development 146,661 22.1 118,931 23.2
Residential 129,366 19.5 99,360 19.4
Commercial mortgages 298,510 44.9 218,929 42.8
Consumer 13,242 2.0 13,048 2.5
Other 229 0.0 149 0.0
Gross loans 666,634 100.3 513,837 100.3
Less unearned discounts
and fees (1,735) (0.3) (1,421) (0.3)
Total loans $664,899 100.0% $512,416 100.0%
NONPERFORMING ASSETS:
As of June 30,
2005 2004
Nonaccrual loans $8,389 $2,626
Accruing loans past due 90 days
or more --- ---
Restructured loans 1,865 1,967
Other real estate 425 2,834
Total nonperforming assets $10,679 $7,427
Nonperforming assets to total loans
and other real estate 1.61% 1.44%
ALLOWANCE FOR LOAN LOSSES:
As of and for the Six Months Ended
June 30, 2005 June 30, 2004
Allowance for loan losses at
beginning of period $8,121 $5,650
Provision for loan losses 1,250 1,650
Charge-Offs:
Business and industrial (6) (159)
Real estate --- (221)
Consumer (42) (55)
Total charge-offs (48) (435)
Recoveries:
Business and industrial 41 30
Real estate 12 22
Consumer 11 12
Total recoveries 64 64
Net recoveries (charge-offs) 16 (371)
Allowance for loan losses at
end of period $9,387 $6,929
Allowance for loan losses to
end of period loans 1.41% 1.35%
Net charge-offs to average loans (0.01) 0.16
Allowance for loans losses to
end of period nonperforming loans 91.54 150.86
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Unaudited)
SELECTED RATIOS AND OTHER DATA:
Q2 Q2 YTD YTD
2005 2004 2005 2004
Return on average assets 0.88% 0.55% 0.03% 0.55%
Return on average equity 10.96 18.79 0.39 17.30
Leverage ratio 11.23 4.50
Tier 1 Capital to RWA ratio 16.44 7.48
Total Capital (Tier 1 + Tier 2)
to RWA ratio 18.62 12.64
Average equity to average total
assets 8.03 2.93 7.81 3.19
Tax equivalent yield on
earning assets 5.64 4.43 5.34 4.43
Cost of funds with demand
account 2.46 1.68 2.38 1.70
Net interest margin,
tax equivalent 3.33 2.80 3.11 2.79
Non-interest expense to
average total assets 1.83 1.72 1.78 1.77
Efficiency ratio 54.47 60.32 56.57 62.40
End of period book value
per share $7.05 $3.69
Full time equivalent employees 157 157
COMMON STOCK PERFORMANCE:
Second quarter 2005 First quarter 2005
Market value of common stock -
End of period $11.00 $11.31
Market value of common stock - High 11.49 15.00
Market value of common stock - Low 9.21 10.25
As of June 30, As of March 31,
2005 2005
Book value of common stock $7.05 $6.70
Market/book value of common stock 156.11% 168.69%
Price/12 month trailing earnings ratio 37.10 X 45.24 X
DATASOURCE: SNB Bancshares, Inc.
CONTACT: R. Darrell Brewer, CFO, +1-281-269-7271, or ,
or Whitney Rowe, Investor Relations & Corporate Secretary, +1-281-269-7220, or
, both of SNB Bancshares, Inc.
Web site: http://www.snbtx.com/