Snb Bancshares (NASDAQ:SNBT)
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* Net Earnings for the Third Quarter up 19.6% to $2.2 million * Third Quarter Average Loans up 23.5%
SUGAR LAND, Texas, Oct. 27 /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 third quarter 2005 compared with the same quarter a year ago. Net earnings for the quarter ended September 30, 2005 were $2.2 million or $0.17 per diluted share, an increase in net earnings of $356 thousand or 19.6% compared with $1.8 million or $0.19 per diluted share for the third quarter of 2004. Notwithstanding the increase in net earnings, the slight decrease in diluted earnings per share for the third quarter of 2005 compared with the same period in 2004 was 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 third quarter of 2005 were 12.6 million compared with 9.3 million weighted average shares outstanding during the third quarter of 2004.
Net earnings for the nine months ended September 30, 2005 were $2.3 million, a decrease of $2.2 million or 47.9% compared with $4.5 million for the same period in 2004. This decrease in net earnings for the nine months ended September 30, 2005 as compared with the nine months ended September 30, 2004 is primarily the result of the balance sheet restructuring plan initiated during March 2005 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 on approximately $169 million of securities identified for sale from our available-for-sale securities portfolio. Diluted earnings per share for the nine months ended September 30, 2005, were $0.19 on 12.6 million shares compared with $0.57 on 7.9 million shares for the same period of 2004. Year-to-date earnings per share comparisons are also affected by the increased number of shares outstanding as a result of our initial public offering in August 2004.
"Previously issued earnings releases and other documents filed with the Securities and Exchange Commission discussed more fully this first quarter restructuring and de-leveraging of our balance sheet and the associated impairment charge," said R. Darrell Brewer, Treasurer and Chief Financial Officer.
Net earnings for the nine months ended September 30, 2005, excluding the first quarter's non-recurring after-tax impairment writedown loss of $4.1 million or $0.32 per basic share, would have been $6.4 million, a 42.2% increase compared with $4.5 million in the same period of 2004. Diluted earnings per share, excluding the non-recurring impairment writedown loss, would have been $0.51 on 12.6 million shares for the nine months ended September 30, 2005 compared with $0.57 per share on 7.9 million shares for the same period of 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 nine months ended September 30, 2005 compared with the same period of 2004.
THIRD QUARTER RESULTS
Net earnings for the quarter ended September 30, 2005 of $2.2 million or $0.17 per diluted share, represented an increase in net earnings of $356 thousand or 19.6% compared with $1.8 million or $0.19 per diluted share for the third quarter of 2004. This $356 thousand increase in net earnings was the result of an $897 thousand increase in net interest income, partially offset by a $152 thousand decrease in total noninterest income, a $216 thousand increase in total noninterest expense and a $198 thousand increase in our provision for income taxes.
During the third quarter 2005, strong loan growth and improving yields from the loan portfolio helped offset higher cost of funds. Since June 2004, the Fed funds rate increased from 1.00% to 2.25% by year-end 2004, and to 3.75% at September 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 6.75% at September 30, 2005. Notwithstanding this significant increase in short term interest rates over the past fifteen months, our net interest margin on a tax equivalent basis in the third quarter of 2005 expanded 29 basis points to 3.14% compared with 2.85% for the third quarter of 2004. However, we remain a liability sensitive bank, and rising interest rates have caused our net interest margin to decrease 19 basis points from 3.33% for the linked quarter ended June 30, 2005.
Net Interest Income
Net interest income for the third quarter of 2005 increased by $897 thousand or 11.9% to $8.5 million compared with $7.6 million for the same period in 2004. Total interest income increased by $3.3 million to $15.6 million for the third quarter of 2005 compared with $12.3 million for the same quarter in 2004, partially offset by a $2.5 million increase in total interest expense to $7.2 million for the third quarter of 2005 compared with $4.7 million for the same quarter in 2004. The $3.3 million increase in total interest income was primarily due to a $3.5 million increase in loan interest income, resulting from a 23.5% increase in volume of average loans outstanding combined with a 97 basis point increase in the average yield on loans. The average balance of loans in the third quarter of 2005 increased $125.1 million to $658.8 million compared with $533.7 million for the same period in 2004, while the average yield on loans increased to 6.86% from 5.89%. The $2.5 million increase in total interest expense was principally the result of a 112 basis point increase in average rates on interest-bearing liabilities to 3.15% in the third quarter of 2005 compared with 2.03% in the third quarter of 2004. The average balance of interest-bearing liabilities decreased $19.9 million in the third quarter of 2005 compared with the third quarter of 2004.
The provision for loan losses in the third quarter of 2005 was $600 thousand, a $25 thousand decrease compared with $625 thousand in the third quarter of 2004. Net interest income after provision for loan losses increased $922 thousand or 13.3% to $7.9 million for the third quarter of 2005 compared with $6.9 million in the same period in 2004.
Noninterest Income
Noninterest income totaled $391 thousand in the third quarter of 2005 compared with $543 thousand in the third quarter of 2004, a decrease of $152 thousand primarily as a result of reduced gains on sales of securities. We posted $197 thousand in gains on the sale of securities in the third quarter of 2004 compared with no sales of securities during the same period in 2005.
Noninterest Expense
Noninterest expense in the third quarter of 2005 increased $216 thousand or 4.6% to $4.9 million compared with $4.7 million in the third quarter of 2004, primarily due to increases in data processing expenses and higher legal and professional fees associated with being a publicly traded company, including Sarbanes-Oxley compliance costs, partially offset by reduced salaries and employee benefit expenses, net occupancy expenses and other expenses.
RESULTS FOR NINE MONTHS ENDED SEPTEMBER 30, 2005
Net earnings for the nine months ended September 30, 2005 were $2.3 million or $0.19 per diluted share, a decrease of $2.2 million or 47.9%, compared with $4.5 million or $0.57 per diluted share for same period in 2004. This decrease in net earnings for the nine months ended September 30, 2005 compared with the same period in 2004 is primarily the result of our balance sheet restructuring plan which resulted in a non-recurring 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 non-recurring impairment writedown loss, combined with a decrease in gains on sales of securities of $572 thousand and a $1.4 million increase in noninterest expenses, was partially offset by a $4.3 million increase in net interest income, a $1.1 million decrease in the provision for Federal income taxes and a $425 thousand decrease in the provision for loan losses.
Diluted earnings per share excluding the non-recurring impairment writedown loss would have been $0.51 on 12.6 million shares for the nine months ended September 30, 2005 compared with $0.57 per share on 7.9 million shares for the same period of 2004.
Net Interest Income
For the nine months ended September 30, 2005, net interest income increased by $4.3 million or 20.8% to $25.0 million compared with $20.7 million for the same period in 2004. This increase is primarily due to a 31.4% increase in average loans outstanding, along with an 80 basis point increase in the average yield on loans outstanding, partially offset by an 88 basis point increase in weighted average rates on total interest-bearing liabilities.
Total interest income increased by $10.7 million to $44.1 million for the nine months ended September 30, 2005 compared with $33.4 million for the same period in 2004, partially offset by a $6.4 million increase in total interest expense to $19.1 million for the nine months ended September 30, 2005 compared with $12.7 million for the same period in 2004. The $10.7 million increase in total interest income was primarily due to a $10.6 million increase in loan interest income, resulting from a 31.4% increase in volume of average loans outstanding combined with an 80 basis point increase in the average yield on loans. The average balance of loans for the nine months ended September 30, 2005 increased $152.6 million to $638.1 million compared with $485.5 million for the same period in 2004, while the average yield on loans increased to 6.65% from 5.85%.
The $6.4 million increase in total interest expense for the nine months ended September 30, 2005 was principally the result of an 88 basis point increase in weighted average rates on total interest-bearing liabilities. The weighted average rate on total interest bearing liabilities increased to 2.83% for the nine months ended September 30, 2005 compared with 1.95% for the same period in 2004, while the average balance of interest-bearing liabilities increased $33.8 million to $904.3 million for the nine months ended September 30, 2005 compared with $870.5 million for the same period of 2004. Our net interest margin on a tax equivalent basis increased 31 basis points to 3.12% for the nine months ended September 30, 2005 compared with 2.81% for the same period in 2004.
Noninterest Income
For the nine months ended September 30, 2005, noninterest income decreased by $6.6 million to a negative $4.8 million compared with noninterest income of $1.8 million for the same period of 2004, principally as a result of the $6.1 million non-recurring impairment writedown loss in connection with the balance sheet restructuring plan and a decrease of $572 thousand in gains on sales of securities.
Noninterest Expense
Noninterest expense for the nine months ended September 30, 2005 was $14.7 million compared with $13.4 million for the same period in 2004, an increase of $1.3 million or 10.4%, primarily due to a $589 thousand increase in legal and professional fees, a $443 thousand increase in data processing expenses and a $393 thousand increase in salaries and employee benefits.
BALANCE SHEET REVIEW
Assets at September 30, 2005 were $1.1 billion, up 2.4% from September 30, 2004 and down 0.8% from December 31, 2004, principally as a result of the balance sheet restructuring plan. As of September 30, 2005, total loans were up $104.8 million or 18.9% to $658.0 million compared with $553.2 million as of September 30, 2004 and down 1.0% from $664.9 million at June 30, 2005.
Commented Harvey Zinn, President and Chief Executive Officer, "Although our loans were down slightly from the end of the second quarter, our average loan growth continues. For the three months ended September 30, 2005, our loans averaged $658.8 million, up from $641.7 million for the linked second quarter of 2005 and up $125.2 million or 23.5% from the average for the three months ended September 30, 2004. For the nine months ended September 30, 2005, our loans averaged $638.1 million, up $152.6 million or 31.4% compared with average loans of $485.5 million for the nine months ended September 30, 2004."
Commercial mortgage loans accounted for 46.6% of the loan portfolio compared with 47.1% at September 30, 2004 and construction and land development loans accounted for 21.0% of the loan portfolio compared with 19.3% at September 30, 2004.
Average deposits in the first nine months of 2005 increased 1.2% to $826.7 million compared with $816.7 million for the first nine months of 2004. Noninterest-bearing demand deposits increased 8.1% and lower cost NOW, savings and money market accounts increased 2.7%, more than offsetting the 2.0% decline in higher cost time deposits. "We continued our strategy of allowing broker and internet deposits to run off upon maturity, as these higher costing deposits decreased approximately $72.4 million to $9.4 million at September 30, 2005 compared with $81.8 million at September 30, 2004. We remain focused on our business strategy of providing exceptional service to our community, allowing us to retain our core deposit customers," Brewer stated.
Shareholders' equity at September 30, 2005 was $88.3 million compared with $86.1 million at September 30, 2004. Book value per share was $7.10 at September 30, 2005, compared with $6.92 at September 30, 2004.
ASSET QUALITY
Nonperforming assets as of September 30, 2005 were $11.8 million, an increase of $5.4 million compared with $6.4 million as of September 30, 2004, principally as a result of an increase of $7.2 million in nonaccrual loans, partially offset by a decrease in other real estate owned of $1.7 million to $490 thousand at September 30, 2005 compared with $2.2 million at September 30, 2004. The $7.2 million increase in nonaccrual loans was primarily the result of two real estate loans and one business and industrial loan. The business and industrial loan, collateralized by furniture, fixtures and equipment and by accounts receivable, in the amount of approximately $3.9 million was placed on nonaccrual status during June 2005. Although this loan is performing in accordance with its terms, management was concerned about its future performance and therefore placed it on nonaccrual status. The two real estate loans, both related to the same guarantor and placed on nonaccrual status in February 2005, consisted of one loan in the amount of $2.4 million secured by multi-family real estate and another loan in the amount of $711 thousand secured by commercial real estate. Although these two loans are performing in accordance with their terms, management was concerned about the cash flow of the related properties and the financial status of the related guarantor.
As a percentage of total loans and other real estate owned, nonperforming assets were 1.79% at September 30, 2005, compared with 1.15% at September 30, 2004. At June 30, 2005, nonperforming assets were $10.7 million, or 1.61% of total loans and other real estate owned.
During the nine months ended September 30, 2005, we recorded a provision for loan losses of $1.9 million compared with $2.3 million for the same period in 2004. Although the provision recorded in 2005 is less than the same period in 2004, the allowance for loan losses as a percentage of total loans at September 30, 2005 increased to 1.40% compared with 1.35% at September 30, 2004.
FRANCHISE GROWTH
"Our Katy branch has been open for approximately one year and continues to meet our goals, with deposit growth of approximately $1 million per month," said Zinn. "Our Pecan Grove location, housed in leased space in Richmond, Texas just southwest of Sugar Land, opened on September 30, 2005. In addition, we expect our Cinco Ranch location in Katy, Texas to open during 2006. Additionally, in September, 2005, we became the depository for two school districts, Katy Independent School District and Fort Bend Independent School District."
THE COMPANY
SNB Bancshares, Inc. 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 $658.0 million, total deposits of $738.3 million and total shareholders' equity of $88.3 million, as of September 30, 2005, has five 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
Ended September 30,
2005 2004 % chg
EARNINGS SUMMARY:
Net earnings $2,174 $1,818 19.6%
Basic earnings per share $0.17 $0.20 (12.1)
Diluted earnings per share 0.17 0.19 (10.5)
Weighted average shares
outstanding:
Common stock 9,782,761 6,456,156 51.5
Class B stock 2,652,475 2,680,521 (1.0)
Total 12,435,236 9,136,677 36.1
Shares outstanding at
end of period:
Common stock 9,782,878 9,750,312 0.3
Class B stock 2,652,475 2,680,041 (1.0)
Total 12,435,353 12,430,353 0.0
EARNINGS STATEMENT DATA:
Interest income:
Loans $11,551 $8,031 43.8%
Securities:
Taxable 3,845 4,184 (8.1)
Nontaxable 197 50 294.0
Federal funds sold and
earning deposits 41 14 192.9
Total interest income 15,634 12,279 27.3
Interest expense:
Demand deposits 1,860 1,215 53.1
Certificates and other
time deposits 2,899 2,179 33.0
Junior subordinated debentures 701 566 23.9
Other borrowings 1,711 753 127.2
Total interest expense 7,171 4,713 52.2
Net interest income 8,463 7,566 11.9
Provision for loan losses 600 625 (4.0)
Net interest income after provision 7,863 6,941 13.3
Noninterest income:
Service charges on
deposit accounts 195 193 1.0
Gain on sale of
securities-net --- 197 (100.0)
Impairment write-down
of securities --- --- ---
Other 196 153 28.1
Total noninterest income 391 543 (28.0)
Noninterest Expense:
Salaries and employee benefits 2,912 2,944 (1.1)
Net occupancy expense 477 494 (3.4)
Data processing 457 284 60.9
Legal and professional fees 295 158 86.7
FDIC deposit insurance premium 29 31 (6.5)
Other 777 820 (5.2)
Total noninterest expense 4,947 4,731 4.6
Earnings before income taxes 3,307 2,753 20.1
Provision for income taxes 1,133 935 21.2
Net earnings $2,174 $1,818 19.6%
For the Nine Months
Ended September 30,
2005 2004 % chg
EARNINGS SUMMARY:
Net earnings $2,343 $4,494 (47.9)%
Basic earnings per share $0.19 $0.58 (67.7)
Diluted earnings per share 0.19 0.57 (66.7)
Weighted average shares
outstanding:
Common stock 9,767,868 4,738,974 106.1
Class B stock 2,666,993 2,974,458 (10.3)
Total 12,434,861 7,713,432 61.2
Shares outstanding at
end of period:
Common stock 9,782,878 9,750,312 0.3
Class B stock 2,652,475 2,680,041 (1.0)
Total 12,435,353 12,430,353 0.0
EARNINGS STATEMENT DATA:
Interest income:
Loans $32,167 $21,617 48.8%
Securities:
Taxable 11,364 11,535 (1.5)
Nontaxable 489 91 437.4
Federal funds sold and
earning deposits 102 135 (24.4)
Total interest income 44,122 33,378 32.2
Interest expense:
Demand deposits 5,354 3,190 67.8
Certificates and other
time deposits 8,335 6,708 24.3
Junior subordinated debentures 1,996 1,603 24.5
Other borrowings 3,479 1,209 187.8
Total interest expense 19,164 12,710 50.8
Net interest income 24,958 20,668 20.8
Provision for loan losses 1,850 2,275 (18.7)
Net interest income after provision 23,108 18,393 25.6
Noninterest income:
Service charges on
deposit accounts 646 623 3.7
Gain on sale of
securities-net 128 700 (81.7)
Impairment write-down
of securities (6,144) --- ---
Other 572 453 26.3
Total noninterest income (4,798) 1,776 (370.2)
Noninterest Expense:
Salaries and employee benefits 8,779 8,386 4.7
Net occupancy expense 1,322 1,382 (4.3)
Data processing 1,284 841 52.7
Legal and professional fees 1,037 448 131.5
FDIC deposit insurance premium 89 84 6.0
Other 2,235 2,221 0.6
Total noninterest expense 14,746 13,362 10.4
Earnings before income taxes 3,564 6,807 (47.6)
Provision for income taxes 1,221 2,313 (47.2)
Net earnings $2,343 $4,494 (47.9)%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except outstanding shares
and per share data)
(Unaudited)
Q3 Q2 Q1 Q4 Q3
2005 2005 2005 2004 2004
EARNINGS STATEMENT
DATA:
Interest income:
Loans $11,551 $10,819 $9,797 $9,153 $8,031
Securities:
Taxable 3,845 3,593 3,926 3,992 4,184
Nontaxable 197 159 133 111 50
Federal funds
sold and
earning
deposits 41 47 14 19 14
Total interest
income 15,634 14,618 13,870 13,275 12,279
Interest expense:
Demand deposits 1,860 1,708 1,786 1,323 1,215
Certificates
and other
time deposits 2,899 2,768 2,668 2,333 2,179
Junior
subordinated
debentures 701 671 624 592 566
Other borrowings 1,711 885 883 1,047 753
Total
interest
expense 7,171 6,032 5,961 5,295 4,713
Net interest
income 8,463 8,586 7,909 7,980 7,566
Provision for
loan losses 600 650 600 675 625
Net interest
income after
provision 7,863 7,936 7,309 7,305 6,941
Noninterest income:
Service charges
on deposit
accounts 195 228 223 163 193
Gain on sale of
securities-net --- 128 --- --- 197
Impairment
write-down of
securities --- --- (6,144) --- ---
Other 196 189 187 182 153
Total
noninterest
income 391 545 (5,734) 345 543
Noninterest
Expense:
Salaries and
employee
benefits 2,912 2,934 2,933 2,980 2,944
Net occupancy
expense 477 440 405 480 494
Data processing 457 414 413 377 284
Legal and
professional
fees 295 353 389 205 158
FDIC deposit
insurance
premium 29 31 29 31 31
Other 777 732 726 1,388 820
Total
noninterest
expense 4,947 4,904 4,895 5,461 4,731
Earnings (loss)
before income
taxes 3,307 3,577 (3,320) 2,189 2,753
Provision
(benefit) for
income taxes 1,133 1,222 (1,134) 736 935
Net earnings
(loss) $2,174 $2,355 $(2,186) $1,453 $1,818
Basic EPS $0.17 $0.19 $(0.18) $0.12 $0.20
Diluted EPS 0.17 0.19 (0.17) 0.11 0.19
Weighted average
shares
outstanding:
Common stock 9,782,761 9,764,858 9,755,689 9,752,284 6,456,156
Class B
stock 2,652,475 2,670,095 2,678,696 2,679,498 2,680,521
Total 12,435,236 12,434,953 12,434,385 12,431,782 9,136,677
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Q3 Q3
2005 2004 % chg
BALANCE SHEET AVERAGES:
Loans $658,760 $533,607 23.5%
Allowance for loan losses (9,414) (7,258) 29.7
Loans, net 649,346 526,349 23.4
Investment securities 406,438 517,041 (21.4)
Federal funds sold 3,449 816 322.7
Interest-earning deposits in
other financial institutions 1,106 2,985 (62.9)
Cash and due from banks 19,831 13,116 51.2
Premises and equipment 20,702 13,061 58.5
Accrued interest receivable and
other assets 13,330 15,542 (14.2)
Total assets $1,114,202 $1,088,910 2.3%
Demand deposits $117,312 $111,968 4.8%
NOW, savings, and money market
accounts 327,733 334,347 (2.0)
Time deposits 339,671 351,116 (3.3)
Total deposits 784,716 797,431 (1.6)
Other borrowed funds 197,209 199,093 (0.9)
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable and
other liabilities 5,449 3,536 54.1
Total liabilities 1,025,624 1,038,310 (1.2)
Shareholders' equity 88,578 50,600 75.1
Total liabilities and
shareholders' equity $1,114,202 $1,088,910 2.3%
September 30,
2005 2004
PERIOD END BALANCES:
Loans $658,003 $553,185 18.9%
Allowance for loan losses (9,185) (7,473) 22.9
Loans, net 648,818 545,712 18.9
Investment securities 408,473 503,584 (18.9)
Federal funds sold 1,450 1,735 (16.4)
Interest-earning deposits in
other financial institutions 7,267 2,179 233.5
Cash and due from banks 19,472 13,692 42.2
Premises and equipment 21,835 13,837 57.8
Accrued interest receivable and
other assets 13,432 13,797 (2.6)
Total assets $1,120,747 $1,094,536 2.4%
Demand deposits $128,090 $103,007 24.4%
NOW, savings, and money market
accounts 330,463 356,036 (7.2)
Time deposits 279,766 356,154 (21.4)
Total deposits 738,319 815,197 (9.4)
Other borrowed funds 250,500 151,500 65.3
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable and
other liabilities 5,341 3,536 51.0
Total liabilities 1,032,410 1,008,483 2.4
Shareholders' equity 88,337 86,053 2.7
Total liabilities and
shareholders' equity $1,120,747 $1,094,536 2.4%
YTD YTD
2005 2004 % chg
BALANCE SHEET AVERAGES:
Loans $638,095 $485,532 31.4%
Allowance for loan losses (8,945) (6,572) 36.1
Loans, net 629,150 478,960 31.4
Investment securities 426,444 478,067 (10.8)
Federal funds sold 1,894 11,446 (83.5)
Interest-earning deposits in
other financial institutions 2,375 7,168 (66.9)
Cash and due from banks 17,366 15,269 13.7
Premises and equipment 18,645 12,799 45.7
Accrued interest receivable and
other assets 13,829 12,921 7.0
Total assets $1,109,703 $1,016,630 9.2%
Demand deposits $113,615 $105,136 8.1%
NOW, savings, and money market
accounts 346,896 337,891 2.7
Time deposits 366,234 373,668 (2.0)
Total deposits 826,745 816,695 1.2
Other borrowed funds 152,899 120,642 26.7
Junior subordinated debentures 38,250 38,250 0.0
Accrued interest payable and
other liabilities 4,600 3,258 41.2
Total liabilities 1,022,494 978,845 4.5
Shareholders' equity 87,209 37,785 130.8
Total liabilities and
shareholders' equity $1,109,703 $1,016,630 9.2%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Q3 Q2 Q1
2005 2005 2005
QUARTERLY AVERAGE
BALANCE SHEET HISTORY:
Loans $658,760 $641,650 $613,375
Allowance for loan losses (9,414) (9,013) (8,396)
Loans, net 649,346 632,637 604,979
Investment securities 406,438 386,894 486,885
Federal funds sold 3,449 1,366 838
Interest-earning deposits
in other financial
institutions 1,106 5,032 986
Cash and due from banks 19,831 14,907 17,333
Premises and equipment 20,702 18,810 16,375
Accrued interest receivable
and other assets 13,330 13,150 15,024
Total assets $1,114,202 $1,072,796 $1,142,420
Demand deposits $117,312 $118,122 $105,280
NOW, savings, and money market
accounts 327,733 337,496 375,990
Time deposits 339,671 369,909 389,669
Total deposits 784,716 825,527 870,939
Other borrowed funds 197,209 118,715 142,167
Junior subordinated debentures 38,250 38,250 38,250
Accrued interest payable
and other liabilities 5,449 4,127 4,209
Total liabilities 1,025,624 986,619 1,055,565
Shareholders' equity 88,578 86,177 86,855
Total liabilities and
shareholders' equity $1,114,202 $1,072,796 $1,142,420
PERIOD END BALANCES HISTORY:
Loans $658,003 $664,899 $630,048
Allowance for loan losses (9,185) (9,387) (8,738)
Loans, net 648,818 655,512 621,310
Investment securities 408,473 399,523 371,684
Federal funds sold 1,450 1,150 1,210
Interest-earning deposits in
other financial institutions 7,267 642 25,773
Cash and due from banks 19,472 20,793 15,950
Premises and equipment 21,835 19,615 17,769
Accrued interest receivable
and other assets 13,432 12,063 14,282
Total assets $1,120,747 $1,109,298 $1,067,978
Demand deposits $128,090 $118,165 $111,408
NOW, savings, and money
market accounts 330,463 327,181 368,949
Time deposits 279,766 360,413 387,012
Total deposits 738,319 805,759 867,369
Other borrowed funds 250,500 173,100 75,500
Junior subordinated debentures 38,250 38,250 38,250
Accrued interest payable
and other liabilities 5,341 4,570 3,489
Total liabilities 1,032,410 1,021,679 984,608
Shareholders' equity 88,337 87,619 83,370
Total liabilities and
shareholders' equity $1,120,747 $1,109,298 $1,067,978
Q4 Q3
2004 2004
QUARTERLY AVERAGE
BALANCE SHEET HISTORY:
Loans $579,459 $533,607
Allowance for loan losses (7,748) (7,258)
Loans, net 571,711 526,349
Investment securities 496,204 517,041
Federal funds sold 1,496 816
Interest-earning deposits in other
financial institutions 1,849 2,985
Cash and due from banks 16,316 13,116
Premises and equipment 15,453 13,061
Accrued interest receivable and
other assets 14,328 15,542
Total assets $1,117,357 $1,088,910
Demand deposits $103,502 $111,968
NOW, savings, and money market
accounts 325,857 334,347
Time deposits 351,178 351,116
Total deposits 780,537 797,431
Other borrowed funds 207,593 199,093
Junior subordinated debentures 38,250 38,250
Accrued interest payable and other
liabilities 3,977 3,536
Total liabilities 1,030,357 1,038,310
Shareholders' equity 87,000 50,600
Total liabilities and shareholders'
equity $1,117,357 $1,088,910
PERIOD END BALANCES HISTORY:
Loans $598,292 $553,185
Allowance for loan losses (8,121) (7,473)
Loans, net 590,171 545,712
Investment securities 488,523 503,584
Federal funds sold --- 1,735
Interest-earning deposits in other
financial institutions 441 2,179
Cash and due from banks 20,794 13,692
Premises and equipment 16,137 13,837
Accrued interest receivable and
other assets 14,022 13,797
Total assets $1,130,088 $1,094,536
Demand deposits $110,858 $103,007
NOW, savings, and money market
accounts 398,051 356,036
Time deposits 359,477 356,154
Total deposits 868,386 815,197
Other borrowed funds 132,900 151,500
Junior subordinated debentures 38,250 38,250
Accrued interest payable and other
liabilities 4,151 3,536
Total liabilities 1,043,687 1,008,483
Shareholders' equity 86,401 86,053
Total liabilities and shareholders'
equity $1,130,088 $1,094,536
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
YIELD ANALYSIS:
For the Three Months Ended September 30,
2005 2004
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
Assets:
Interest-earning
assets:
Loans $658,760 $11,551 6.86% $533,607 $8,031 5.89%
Investment
securities 406,438 4,042 4.08 517,041 4,234 3.20
Federal funds
sold 3,449 31 3.52 816 3 1.33
Interest-earning
deposits in
other
financial
institutions 1,106 10 3.58 2,985 11 1.45
Total
interest-
earning
assets 1,069,753 15,634 5.79% 1,054,449 12,279 4.55%
Less allowance
for loan
losses (9,414) (7,258)
Total
interest-
earning
assets,
net of
allowance 1,060,339 1,047,191
Non-earning
assets:
Cash and due
from banks 19,831 13,116
Premises and
equipment 20,702 13,061
Accrued
interest
receivable
and other
assets 13,330 15,542
Total
noninterest-
earning
assets 53,863 41,719
Total
assets $1,114,202 $1,088,910
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
NOW, savings,
and money
market
accounts $327,733 $1,860 2.25% $334,347 $1,215 1.45%
Time deposits 339,671 2,899 3.39 351,116 2,179 2.47
Other borrowed
funds 197,209 1,711 3.39 199,093 753 1.51
Junior
subordinated
debentures 38,250 701 7.17 38,250 566 5.79
Total
interest-
bearing
liabilities 902,863 7,171 3.15% 922,806 4,713 2.03%
Noninterest-
bearing
liabilities:
Demand
deposits 117,312 111,968
Accrued interest
payable and
other
liabilities 5,449 3,536
Total
noninterest-
bearing
liabilities 122,761 115,504
Total
liabilities 1,025,624 1,038,310
Shareholders'
equity 88,578 50,600
Total
liabilities
and
shareholders'
equity $1,114,202 $1,088,910
Net interest
income $8,463 $7,566
Net interest
spread 2.64 2.52
Net interest
margin (tax
equivalent) 3.14% 2.85%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
RATE VOLUME ANALYSIS:
For the Three Months Ended September 30, 2005
Compared with the Same Period in 2004
Increase (Decrease)
Q3 Q3 Increase Due to Change in
2005 2004 (Decrease) Volume Rate Total
Interest-earning
assets:
Loans $11,551 $8,031 $3,520 $1,858 $1,662 $3,520
Investment
securities 4,042 4,234 (192) (890) 698 (192)
Federal funds
sold 31 3 28 9 19 28
Interest-bearing
deposits in
other financial
institutions 10 11 (1) (7) 6 (1)
Total interest
income 15,634 12,279 3,355 970 2,385 3,355
Interest-bearing
liabilities:
NOW, savings and
money market
accounts 1,860 1,215 645 (24) 669 645
Time deposits 2,899 2,179 720 (71) 791 720
Other borrowed
funds 1,711 753 958 (7) 965 958
Junior
subordinated
debentures 701 566 135 --- 135 135
Total in interest
expense 7,171 4,713 2,458 (102) 2,560 2,458
Net interest
income $8,463 $7,566 $897 $1,072 $(175) $897
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
YIELD ANALYSIS:
For the Nine Months Ended September 30,
2005 2004
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
Assets:
Interest-earning
assets:
Loans $638,095 $32,167 6.65% $485,532 $21,617 5.85%
Investment
securities 426,444 11,853 3.79 478,067 11,626 3.19
Federal funds
sold 1,894 46 3.18 11,446 80 0.92
Interest-earning
deposits in
other financial
institutions 2,375 56 3.13 7,168 55 1.00
Total
interest-
earning
assets 1,068,808 44,122 5.49% 982,213 33,378 4.46%
Less allowance
for loan
losses (8,945) (6,572)
Total
interest-
earning
assets,
net of
allowance 1,059,863 975,641
Non-earning
assets:
Cash and due
from banks 17,366 15,269
Premises and
equipment 18,645 12,799
Accrued interest
receivable and
other assets 13,829 12,921
Total
noninterest-
earning
assets 49,840 40,989
Total
assets $1,109,703 $1,016,630
Liabilities
and
Shareholders'
Equity:
Interest-bearing
liabilities:
NOW, savings,
and money
market
accounts $346,896 $5,354 2.06% $337,891 $3,190 1.26%
Time deposits 366,234 8,335 3.04 373,668 6,708 2.40
Other borrowed
funds 152,899 3,479 3.00 120,642 1,209 1.34
Junior
subordinated
debentures 38,250 1,996 6.88 38,250 1,603 5.51
Total
interest-
bearing
liabilities 904,279 19,164 2.83% 870,451 12,710 1.95%
Noninterest-
bearing
liabilities:
Demand
deposits 113,615 105,136
Accrued
interest payable
and other
liabilities 4,600 3,258
Total
noninterest-
bearing
liabilities 118,215 108,394
Total
liabilities 1,022,494 978,845
Shareholders'
equity 87,209 37,785
Total
liabilities
and
shareholders'
equity $1,109,703 $1,016,630
Net interest
income $24,958 $20,668
Net interest
spread 2.66 2.51
Net interest
margin (tax
equivalent) 3.12% 2.81%
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
RATE VOLUME ANALYSIS:
For the Nine Months Ended September 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 $32,167 $21,617 $10,550 6,675 3,875 $10,550
Investment
securities 11,853 11,626 227 (1,230) 1,457 227
Federal funds
sold 46 80 (34) (66) 32 (34)
Interest-bearing
deposits in
other financial
institutions 56 55 1 (36) 37 1
Total interest
income 44,122 33,378 10,744 5,343 5,401 10,744
Interest-bearing
liabilities:
NOW, savings and
money market
accounts 5,354 3,190 2,164 85 2,079 2,164
Time deposits 8,335 6,708 1,627 (133) 1,760 1,627
Other borrowed
funds 3,479 1,209 2,270 322 1,948 2,270
Junior
subordinated
debentures 1,996 1,603 393 --- 393 393
Total in interest
expense 19,164 12,710 6,454 274 6,180 6,454
Net interest
income $24,958 $20,668 $4,290 $5,069 $(779) $4,290
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
LOAN PORTFOLIO:
As of As of As of
September 30, December 31, September 30,
2005 2004 2004
Amount Percent Amount Percent Amount Percent
Business and
industrial $77,614 11.8% $70,101 11.7% $64,152 11.6%
Real estate:
Construction
and land
development 137,997 21.0 123,655 20.7 106,536 19.3
Residential 123,908 18.8 126,200 21.1 110,828 20.0
Commercial
mortgages 306,610 46.6 267,158 44.7 260,359 47.1
Consumer 13,135 2.0 12,592 2.1 12,715 2.3
Other 345 0.0 227 0.0 154 0.0
Gross loans 659,609 100.2 599,933 100.3 554,744 100.3
Less unearned
discounts and
fees (1,606) (0.2) (1,641) (0.3) (1,559) (0.3)
Total
loans $658,003 100.0% $598,292 100.0% $553,185 100.0%
NONPERFORMING ASSETS:
As of As of As of
September 30, December 31, September 30,
2005 2004 2004
Nonaccrual loans $9,472 $1,489 $2,237
Accruing loans past due
90 days or more --- 62 ---
Restructured loans 1,839 1,917 1,942
Other real estate and
repossessed assets 490 1,320 2,183
Total nonperforming assets $11,801 $4,788 $6,362
Nonperforming assets to
total loans and other
real estate 1.79% 0.80% 1.15%
ALLOWANCE FOR LOAN LOSSES:
As of and
As of and for the for the
Nine Months Ended Year Ended
September 30, September 30, December 31,
2005 2004 2004
Allowance for loan losses at
beginning of period $8,121 $5,650 $5,650
Provision for loan losses 1,850 2,275 2,950
Charge-Offs:
Business and industrial (801) (242) (242)
Real estate --- (235) (262)
Consumer (68) (84) (110)
Total charge-offs (869) (561) (614)
Recoveries:
Business and industrial 59 33 50
Real estate 13 60 63
Consumer 11 16 22
Total recoveries 83 109 135
Net recoveries (charge-offs) (786) (452) (479)
Allowance for loan losses at
end of period $9,185 $7,473 $8,121
Allowance for loan losses to
end of period loans 1.40% 1.35% 1.36%
Net charge-offs to average loans 0.12 0.09 0.09
Allowance for loans losses to
end of period nonperforming
loans 81.20 178.82 234.17
SNB BANCSHARES, INC.
AND CONSOLIDATED SUBSIDIARIES
SELECTED FINANCIAL DATA
(Unaudited)
SELECTED RATIOS AND OTHER DATA:
Q3 Q3 YTD YTD
2005 2004 2005 2004
Return on average assets 0.77% 0.66% 0.28% 0.59%
Return on average equity 9.74 14.30 3.59 15.89
Leverage ratio 11.15 10.83
Tier 1 Capital to RWA ratio 16.96 18.28
Total Capital (Tier 1 +
Tier 2) to RWA ratio 18.99 20.56
Average equity to average
total assets 7.95 4.65 7.86 3.72
Tax equivalent yield on
earning assets 5.72 4.55 5.42 4.46
Cost of funds with demand
accounts 2.79 1.81 2.52 1.74
Net interest margin, tax
equivalent 3.14 2.85 3.12 2.81
Non-interest expense to
average total assets 1.76 1.73 1.78 1.76
Efficiency ratio 55.88 59.79 56.34 61.45
End of period book value
per share $7.10 $6.92
Full time equivalent
employees 162 156
COMMON STOCK PERFORMANCE:
Third Second
quarter quarter
2005 2005
Market value of common
stock - End of period $11.25 $11.00
Market value of common
stock - High 11.90 11.49
Market value of common
stock - Low 10.85 9.21
As of As of
September 30, June 30,
2005 2005
Book value of common stock $7.10 $7.05
Market/book value of
common stock 158.37% 156.11%
Price/12 month trailing
earnings ratio 36.85X 36.67X
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
, for SNB Bancshares, Inc.
Web site: http://www.snbtx.com/