WINSTON-SALEM, N.C.,
July 21, 2011 /PRNewswire/ --
Southern Community Financial Corporation (NASDAQ: SCMF) (NASDAQ:
SCMFO), announced today that it earned $511
thousand in the second quarter of 2011, equating to
$0.03 per common share. This is
its first profit since the onset of the financial crisis in fourth
quarter of 2008.
(Logo: http://photos.prnewswire.com/prnh/20110721/CL38548LOGO
)
The Company's second quarter results compare to a net loss of
$488 thousand for the first quarter
of 2011 and a net loss of $371
thousand a year ago. Net income available to common
shareholders increased to $0.03 per
diluted share in the second quarter compared to net losses per
common share of $0.03 and
$0.02 for the first quarter 2011 and
second quarter 2010, respectively.
For the first six months of 2011, Southern Community Financial
reported net income available to common shareholders of
$23 thousand as credit quality trends
began to show marked improvement. Nonperforming loans
declined by 9% from the first quarter and the Bank's delinquency
rate on loans 30 to 89 days past due decreased by 65%
year-over-year. The Company saw an increase in non-interest
income over the first quarter of 2011 and continued to effectively
manage expenses downward on a linked quarter and year-over-year
basis.
"It has been a challenging two years, but the positive trends we
are experiencing now are reflective of the hard work and dedication
of our employees," said Chairman and CEO F.
Scott Bauer. "Our core business has remained strong
and our customers have remained loyal. Today, local deposits
represent more than 70% of our funding, the highest in our
history.
It's gratifying to know that our reputation as a provider of
excellent service has not diminished. Our Board and the
management team will continue to work through these challenging
times and be prepared for the opportunities that lie ahead.
We remain well capitalized with all ratios exceeding
regulatory requirements."
Financial Highlights:
- Net income available to common shareholders of $511 thousand, or $0.03 per diluted share;
- Provision for loan losses of $3.7
million decreased $400
thousand compared to first quarter of 2011;
- Year-to-date provision for loan losses of $7.8 million decreased $7.7 million, or 50%, year-over-year;
- Nonperforming loans decreased 9% to $66.8 million, or 6.42% of loans, at June 30, 2011 from $73.7
million, or 6.80% of loans, at March
31, 2011;
- Nonperforming assets decreased 7% to $89.8 million, or 5.75% of total assets, from
$96.8 million, or 6.04% of total
assets, at March 31, 2011;
- Net charge-offs of $3.9 million,
or 1.46% of average loans (annualized), down from $6.0 million, or 2.19% of average loans
(annualized), in the first quarter of 2011; and
- Allowance for loan losses decreased $153
thousand to $27.5 million, or
2.65% of total loans.
Asset Quality
Nonperforming loans decreased $6.9
million to $66.8 million, or
6.42% of total loans, at June 30,
2011 from $73.7 million, or
6.80% of total loans, at March 31,
2011. Included in the $6.9
million net reduction in nonperforming loans is a
$7.1 million formerly nonaccrual
collateral dependent loan that was restored to an accruing status.
This was the result of consistent payment performance over a
reasonable period of scheduled principal and interest payments.
For the six months ended June 30,
2011, $18.1 million in
formerly nonaccrual collateral dependent loans were restored to an
accruing status. Loans delinquent 30-89 days sequentially
increased by $934 thousand to
$4.3 million at June 30, 2011; however, delinquencies showed
significant improvement over the June 30,
2010 level of $9.7 million.
Foreclosed assets remained flat with the March 31, 2011 level as $4.0 million in sales of properties and
writedowns of $303 thousand offset
the new foreclosed asset additions during the second quarter of
2011. Nonperforming assets decreased to $89.8 million, or 5.75% of total assets, at
June 30, 2011 from $96.8 million, or 6.04% of total assets, at
March 31, 2011.
The provision for loan losses of $3.7
million in the second quarter of 2011 decreased $400 thousand from $4.1
million in the first quarter of 2011. The allowance
for loan losses (ALLL) decreased $153
thousand to $27.5 million, or
2.65% of total loans, from $27.7
million, or 2.55% of total loans, at March 31, 2011. Net charge-offs decreased
sequentially to $3.9 million, or
1.46% of average loans on an annualized basis, from $6.0 million, or 2.19% of average loans on an
annualized basis, for the first quarter of 2011. The overall
ALLL level remained relatively flat in dollar terms; however, its
ratio to total loans increased sequentially to 2.65% at
June 30, 2011 from 2.55% at
March 31, 2011 primarily due to a
$44.0 million decline in total loans,
or 4%, during the second quarter of 2011. As the overall ALLL
level remained relatively flat during the second quarter of 2011,
the specific allowance for impaired loans decreased by $748 thousand to $2.3
million on a linked quarter basis as the volume of impaired
loans requiring a specific allowance decreased to $14.8 million at June 30,
2011 from $15.5 million at
March 31, 2011.
Net Interest Income
Net interest income of $12.6
million in the second quarter of 2011 decreased $261 thousand, or 2%, compared to $12.8 million in the first quarter of 2011 as the
average balance of interest earning assets declined $49.9 million, or 3%, on a linked quarter basis.
This decline in earning assets was driven by a $52.2 million sequential decrease in average loan
balances, resulting from continued customer deleveraging, soft new
loan demand and problem loan remediation. The second quarter
2011 net interest margin of 3.43% improved by one basis point on a
linked quarter basis due to the above mentioned $7.1 million loan reinstated to accrual status
and the impact of continued downward repricing of deposits.
The impact of these positive factors was partially offset by
the impact of the shift in earning asset mix caused by the decrease
in loan balances.
On a year-over-year basis, net interest income decreased
$862 thousand, or 6%, and the net
interest margin decreased by three basis points from 3.46% in the
second quarter of 2010. This decrease in net interest income
was due primarily to a $85.4 million
decrease in the average balance of earning assets and the three
basis point reduction in net interest spread attributable to the
shift in the mix of earning assets as $64.2
million of this decrease was reinvested from loans to lower
yielding investments and overnight funds. The impact of the
earning asset mix shift was partially offset by the favorable
impact of the cost of deposits repricing downward.
Non-interest Income
Non-interest income increased by $631
thousand, or 22%, to $3.5
million during the second quarter of 2011 compared with the
first quarter of 2011. The sequential increase in
non-interest income was attributable primarily to $786 thousand increase in the fair value of
derivatives, a $132 thousand increase
in investment brokerage fee income, a $93
thousand increase in service charge income and a
$28 thousand increase in mortgage
banking income. A $524 thousand
gain on sales of investment securities was included in noninterest
income for the second quarter of 2011, which was a decrease of
$420 thousand from the first quarter
of 2011.
Compared to the second quarter of 2010, non-interest income
decreased by $858 thousand, or 20%.
The comparative quarter decrease was primarily related to a
$494 thousand decrease in gains on
investment security sales, a $200
thousand decrease in Small Business Investment Company
(SBIC) income, a $189 thousand
decrease in investment brokerage fee income, a $138 thousand decrease in service charge income
and a $68 thousand decrease in
mortgage banking income. These comparative quarter decreases
were partially offset by a $219
thousand increase in the fair value of derivatives.
Non-interest Expenses
Non-interest expenses of $11.3
million during the second quarter of 2011 decreased
$228 thousand, or 2%, on a linked
quarter basis. The sequential reduction in non-interest
expenses was attributable to a decrease in writedowns on foreclosed
properties of $306 thousand, a
$201 thousand decrease in FDIC
insurance premiums and a $178
thousand decrease in salaries and employee benefits.
Offsetting a portion of these sequential decreases were a
$147 thousand increase in marketing
expenses, a $128 thousand increase in
professional services, a $76 thousand
increase in occupancy expenses and a $63
thousand increase in other expenses related to foreclosed
real estate (OREO expense).
Compared to the second quarter of 2010, non-interest expenses
decreased $1.1 million or 9%.
This year-over-year decrease was due primarily to a
$753 thousand decrease in salaries
and employee benefits, a $543
thousand decrease in foreclosed asset related expenses
($285 thousand decrease in writedowns
on foreclosed properties and $258
thousand decrease in OREO expense) and a $230 thousand decrease in buyer incentive
expenses. These were partially offset by year-over-year
increases of $378 thousand in FDIC
insurance premiums, $254 thousand in
marketing expenses and $180 thousand
in professional services.
Balance Sheet
As of June 30, 2011, total assets
amounted to $1.56 billion,
representing a decrease of $41.9
million, or 3%, compared to March 31,
2011. Total assets decreased $98.1 million, or 6%, on a year-over-year basis.
The loan portfolio, excluding loans held for sale, decreased
by $45.1 million, or 4%,
sequentially, and decreased by $160.2
million, or 13%, since June 30,
2010 due to loan remediation activities and weak loan demand
resulting from the prolonged economic downturn. Total
deposits of $1.25 billion at
June 30, 2011 decreased $31.3 million, or 2%, sequentially due to an
$32.4 million decrease in interest
bearing deposits offset by a $1.1
million increase in demand deposits.
At June 30, 2011, stockholders'
equity of $94.7 million represented
6.07% of total assets. Stockholders' equity increased
$2.9 million, or 3%, on a linked
quarter basis due to net income of $1.1
million and an increase in unrealized gains on available for
sale investment securities of $1.7
million. The regulatory capital ratios at the Bank at
June 30, 2011 were in excess of the
levels required under the Consent Order with a Tier 1 leverage
ratio of 8.48% and a total risk-based capital ratio of 12.87%.
Conference Call
Southern Community's executive management team will host a
conference call on July 22, 2011, at
9:30 am Eastern Time to discuss the
quarter-end results. The call can be accessed by dialing
1-800-860-2442 or 1-412-858-4600. A replay of the conference
call can be accessed until 9:00 am on
August 4, 2011, by calling
1-877-344-7529 or 1-412-317-0088 and entering conference number
10002221.
About Southern Community Financial Corporation
Southern Community Financial Corporation is headquartered in
Winston-Salem, North Carolina and
is the holding company of Southern Community Bank and Trust, a
community bank with twenty-two banking offices throughout
North Carolina.
Southern Community Financial Corporation's common stock and
trust preferred securities are listed on the NASDAQ Global Select
Market under the trading symbols SCMF and SCMFO, respectively.
Additional information about Southern Community is available
on our website at www.smallenoughtocare.com or by email at
investor.relations@smallenoughtocare.com.
Forward-Looking Statements
Certain statements in this news release contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements relating to future plans and
expectations, and are thus prospective. Such forward-looking
statements include but are not limited to (1) statements regarding
potential future economic recovery, (2) statements with respect to
our plans, objectives, expectations, intentions and other
statements that are not historical facts, and (3) other statements
identified by words such as "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "targets" and "projects," as well
as similar expressions. Such statements are subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Although we believe that the
assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove to be inaccurate.
Therefore, we can give no assurance that the results
contemplated in the forward-looking statements will be realized.
The inclusion of this forward-looking information should not
be construed as a representation by our Company or any person that
the future events, plans or expectations contemplated by our
Company will be achieved.
The following factors, among others, could cause actual results
to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: (1) the
rate of delinquencies and amounts of charge-offs, the level of
allowance for loan losses, the rates of loan growth or shrinkage,
or adverse changes in asset quality in our loan portfolio, which
may result in increased credit risk-related losses and expenses;
(2) competitive pressures among depository and other financial
institutions may increase significantly and have an effect on
pricing, spending, third party relationships and revenues; (3) the
strength of the United States
economy in general and the strength of the local economies in which
we conduct operations may be different than expected resulting in,
among other things, a deterioration in the credit quality or a
reduced demand for credit, including the resultant effect on the
Company's loan portfolio and allowance for loan losses; (4) the
risk that the preliminary financial information reported herein and
our current preliminary analysis will be different when our review
is finalized; (5) changes in deposit rates, the net interest margin
and funding sources; (6) changes in the U.S. legal and regulatory
framework, including the effect of recent financial reform
legislation on the banking industry; and (7) adverse conditions in
the stock market, the public debt market and other capital markets
(including changes in interest rate conditions) could have a
negative impact on the Company. Additional factors that could
cause our results to differ materially from those described in the
forward-looking statements can be found in our reports (such as
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K) filed with the SEC and available at
the SEC's website (http://www.sec.gov). All subsequent
written and oral forward-looking statements concerning the Company
or any person acting on its behalf is expressly qualified in its
entirety by the cautionary statements above. We do not
undertake any obligation to update any forward-looking statement to
reflect circumstances or events that occur after the date the
forward-looking statements are made.
Southern Community Financial
Corporation
(Dollars in thousands except per
share data)
(Unaudited)
|
|
|
|
For the
three months ended
|
|
Six Months
Ended
|
|
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Jun
30,
|
|
June
30,
|
|
Income Statement
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
$
18,148
|
|
$
18,699
|
|
$
19,164
|
|
$
20,049
|
|
$
20,439
|
|
$
36,847
|
|
$
41,425
|
|
Interest Expense
|
|
5,578
|
|
5,868
|
|
6,759
|
|
6,773
|
|
7,007
|
|
11,446
|
|
14,746
|
|
Net Interest
Income
|
|
12,570
|
|
12,831
|
|
12,405
|
|
13,276
|
|
13,432
|
|
25,401
|
|
26,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
Losses
|
|
3,700
|
|
4,100
|
|
6,500
|
|
17,000
|
|
5,500
|
|
7,800
|
|
15,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (Loss) after
Provision for Loan Losses
|
|
8,870
|
|
8,731
|
|
5,905
|
|
(3,724)
|
|
7,932
|
|
17,601
|
|
11,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on
deposit accounts
|
|
1,581
|
|
1,488
|
|
1,617
|
|
1,640
|
|
1,719
|
|
3,069
|
|
3,276
|
|
Income from mortgage banking
activities
|
|
291
|
|
263
|
|
714
|
|
751
|
|
359
|
|
554
|
|
717
|
|
Investment brokerage and trust
fees
|
|
320
|
|
188
|
|
306
|
|
424
|
|
509
|
|
508
|
|
744
|
|
SBIC income (loss) and
management fees
|
|
123
|
|
122
|
|
6
|
|
126
|
|
323
|
|
245
|
|
499
|
|
Gain (Loss) on sale of
investment securities
|
|
524
|
|
944
|
|
1,135
|
|
24
|
|
1,018
|
|
1,468
|
|
2,372
|
|
Gain (Loss) and net cash
settlement on economic hedges
|
|
181
|
|
(605)
|
|
(79)
|
|
(384)
|
|
(38)
|
|
(424)
|
|
(69)
|
|
Other-than-temporary
impairment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(186)
|
|
Other Income
|
|
514
|
|
503
|
|
501
|
|
479
|
|
502
|
|
1,017
|
|
992
|
|
Total Non-Interest
Income
|
|
3,534
|
|
2,903
|
|
4,200
|
|
3,060
|
|
4,392
|
|
6,437
|
|
8,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,568
|
|
4,746
|
|
5,103
|
|
5,033
|
|
5,321
|
|
9,314
|
|
10,790
|
|
Occupancy and
equipment
|
|
1,860
|
|
1,784
|
|
1,778
|
|
1,839
|
|
1,895
|
|
3,644
|
|
3,811
|
|
FDIC deposit
insurance
|
|
932
|
|
1,133
|
|
469
|
|
405
|
|
554
|
|
2,065
|
|
1,101
|
|
Foreclosed asset
related
|
|
636
|
|
879
|
|
1,895
|
|
123
|
|
1,179
|
|
1,515
|
|
2,021
|
|
Other
|
|
3,259
|
|
2,941
|
|
3,363
|
|
3,584
|
|
3,384
|
|
6,200
|
|
6,453
|
|
Total Non-Interest
Expense
|
|
11,255
|
|
11,483
|
|
12,608
|
|
10,984
|
|
12,333
|
|
22,738
|
|
24,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Taxes
|
|
1,149
|
|
151
|
|
(2,503)
|
|
(11,648)
|
|
(9)
|
|
1,300
|
|
(4,652)
|
|
Provision for Income
Taxes
|
|
-
|
|
-
|
|
8,318
|
|
(3,698)
|
|
(270)
|
|
-
|
|
(302)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
1,149
|
|
$
151
|
|
$
(10,821)
|
|
$
(7,950)
|
|
$
261
|
|
$
1,300
|
|
$
(4,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective dividend on preferred
stock
|
|
638
|
|
639
|
|
633
|
|
633
|
|
632
|
|
1,277
|
|
1,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) available to
common shareholders
|
|
$
511
|
|
$
(488)
|
|
$
(11,454)
|
|
$
(8,583)
|
|
$
(371)
|
|
$
23
|
|
$
(5,615)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
(0.51)
|
|
$
(0.02)
|
|
$
-
|
|
$
(0.33)
|
|
Diluted
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
(0.51)
|
|
$
(0.02)
|
|
$
-
|
|
$
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
Banks
|
|
$
18,590
|
|
$
28,096
|
|
$
16,584
|
|
$
44,612
|
|
$
35,757
|
|
|
|
|
|
Federal Funds Sold and Overnight
Deposits
|
|
46,380
|
|
34,615
|
|
49,587
|
|
1,646
|
|
1,358
|
|
|
|
|
|
Investment Securities
|
|
357,428
|
|
350,962
|
|
352,873
|
|
322,431
|
|
307,595
|
|
|
|
|
|
Federal Home Loan Bank
Stock
|
|
7,879
|
|
8,750
|
|
8,750
|
|
9,092
|
|
9,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held for Sale
|
|
1,624
|
|
597
|
|
5,991
|
|
7,161
|
|
6,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1,038,349
|
|
1,083,468
|
|
1,130,076
|
|
1,183,753
|
|
1,198,565
|
|
|
|
|
|
Allowance for Loan
Losses
|
|
(27,511)
|
|
(27,664)
|
|
(29,580)
|
|
(35,100)
|
|
(29,609)
|
|
|
|
|
|
Net Loans
|
|
1,010,838
|
|
1,055,804
|
|
1,100,496
|
|
1,148,653
|
|
1,168,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Premises and
Equipment
|
|
39,360
|
|
39,878
|
|
40,550
|
|
40,718
|
|
41,535
|
|
|
|
|
|
Foreclosed Assets
|
|
23,022
|
|
23,060
|
|
17,314
|
|
19,385
|
|
18,781
|
|
|
|
|
|
Other Assets
|
|
56,865
|
|
62,118
|
|
61,253
|
|
69,088
|
|
69,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$ 1,561,986
|
|
$ 1,603,880
|
|
$ 1,653,398
|
|
$ 1,662,786
|
|
$ 1,660,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Bearing
|
|
$
127,485
|
|
$
126,393
|
|
$
110,114
|
|
$
119,249
|
|
$
123,573
|
|
|
|
|
|
Money market, savings and
NOW
|
|
490,382
|
|
521,577
|
|
582,878
|
|
599,978
|
|
623,854
|
|
|
|
|
|
Time
|
|
630,021
|
|
631,240
|
|
655,427
|
|
598,383
|
|
545,420
|
|
|
|
|
|
Total Deposits
|
|
1,247,888
|
|
1,279,210
|
|
1,348,419
|
|
1,317,610
|
|
1,292,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
209,954
|
|
224,608
|
|
204,784
|
|
228,343
|
|
242,303
|
|
|
|
|
|
Accrued Expenses and Other
Liabilities
|
|
9,404
|
|
8,208
|
|
7,854
|
|
7,739
|
|
7,981
|
|
|
|
|
|
Total
Liabilities
|
|
1,467,246
|
|
1,512,026
|
|
1,561,057
|
|
1,553,692
|
|
1,543,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
94,740
|
|
91,854
|
|
92,341
|
|
109,094
|
|
116,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$ 1,561,986
|
|
$ 1,603,880
|
|
$ 1,653,398
|
|
$ 1,662,786
|
|
$ 1,660,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per Common
Share
|
|
$
3.12
|
|
$
2.95
|
|
$
2.99
|
|
$
3.99
|
|
$
4.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended
|
|
Six Months
Ended
|
|
|
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Jun
30,
|
|
June
30,
|
|
|
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings (loss) per
Share
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
(0.51)
|
|
$
(0.02)
|
|
$
-
|
|
$
(0.33)
|
|
|
Diluted Earnings (loss) per
Share
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
(0.51)
|
|
$
(0.02)
|
|
$
-
|
|
$
(0.33)
|
|
|
Tangible Book Value per
Share
|
|
$
3.12
|
|
$
2.95
|
|
$
2.99
|
|
$
3.99
|
|
$
4.46
|
|
$
3.12
|
|
$
4.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets
(annualized) ROA
|
|
0.29%
|
|
0.04%
|
|
-2.55%
|
|
-1.91%
|
|
0.06%
|
|
0.16%
|
|
-0.52%
|
|
|
Return on Average Equity
(annualized) ROE
|
|
5.00%
|
|
0.67%
|
|
-39.43%
|
|
-27.07%
|
|
0.90%
|
|
2.85%
|
|
-7.35%
|
|
|
Return on Tangible Equity
(annualized)
|
|
5.03%
|
|
0.67%
|
|
-39.68%
|
|
-27.25%
|
|
0.90%
|
|
2.87%
|
|
-7.40%
|
|
|
Net Interest Margin
|
|
3.43%
|
|
3.42%
|
|
3.14%
|
|
3.39%
|
|
3.46%
|
|
3.42%
|
|
3.44%
|
|
|
Net Interest Spread
|
|
3.29%
|
|
3.30%
|
|
2.99%
|
|
3.20%
|
|
3.32%
|
|
3.29%
|
|
3.29%
|
|
|
Non-interest Income as a % of
Revenue
|
|
21.94%
|
|
18.45%
|
|
25.29%
|
|
18.73%
|
|
24.64%
|
|
20.22%
|
|
23.83%
|
|
|
Non-interest Income as a % of
Average Assets
|
|
0.90%
|
|
0.72%
|
|
0.99%
|
|
0.73%
|
|
1.04%
|
|
0.81%
|
|
0.99%
|
|
|
Non-interest Expense to Average
Assets
|
|
2.85%
|
|
2.86%
|
|
2.97%
|
|
2.64%
|
|
2.93%
|
|
2.85%
|
|
2.88%
|
|
|
Efficiency Ratio
|
|
69.89%
|
|
72.98%
|
|
75.93%
|
|
67.24%
|
|
69.19%
|
|
71.42%
|
|
69.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans
|
|
$
66,803
|
|
$
73,741
|
|
$
91,777
|
|
$
98,709
|
|
$
55,477
|
|
$
66,803
|
|
$
55,477
|
|
|
Nonperforming Assets
|
|
$
89,825
|
|
$
96,801
|
|
$
109,091
|
|
$
118,094
|
|
$
74,258
|
|
$
89,825
|
|
$
74,258
|
|
|
Nonperforming Loans to Total
Loans
|
|
6.42%
|
|
6.80%
|
|
8.08%
|
|
8.29%
|
|
4.60%
|
|
6.42%
|
|
4.63%
|
|
|
Nonperforming Assets to Total
Assets
|
|
5.75%
|
|
6.04%
|
|
6.60%
|
|
7.10%
|
|
4.47%
|
|
5.75%
|
|
4.47%
|
|
|
Allowance for Loan Losses to
Period-end Loans
|
|
2.65%
|
|
2.55%
|
|
2.60%
|
|
2.95%
|
|
2.46%
|
|
2.65%
|
|
2.46%
|
|
|
Allowance for Loan Losses to
Nonperforming Loans (X)
|
|
0.41
|
X
|
0.38
|
X
|
0.32
|
X
|
0.36
|
X
|
0.53
|
X
|
0.41
|
X
|
0.53
|
X
|
|
Net Charge-offs to Average Loans
(annualized)
|
|
1.46%
|
|
2.19%
|
|
4.10%
|
|
3.78%
|
|
3.95%
|
|
1.83%
|
|
2.58%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to Total
Assets
|
|
6.07%
|
|
5.73%
|
|
5.58%
|
|
6.56%
|
|
7.05%
|
|
6.07%
|
|
7.05%
|
|
|
Tangible Common Equity to Total
Tangible Assets (1)
|
|
3.36%
|
|
3.10%
|
|
3.04%
|
|
4.03%
|
|
4.52%
|
|
3.36%
|
|
4.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets
|
|
$ 1,495,592
|
|
$ 1,520,664
|
|
$ 1,562,393
|
|
$ 1,561,504
|
|
$ 1,564,646
|
|
|
|
|
|
|
Total Assets
|
|
1,606,580
|
|
1,630,975
|
|
1,681,068
|
|
1,680,902
|
|
1,695,640
|
|
|
|
|
|
|
Total Loans
|
|
1,085,468
|
|
1,111,697
|
|
1,200,609
|
|
1,213,497
|
|
1,215,776
|
|
|
|
|
|
|
Equity
|
|
92,084
|
|
91,958
|
|
115,962
|
|
118,352
|
|
119,293
|
|
|
|
|
|
|
Interest Bearing
Liabilities
|
|
1,377,769
|
|
1,407,978
|
|
1,436,443
|
|
1,435,705
|
|
1,451,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets
|
|
$ 1,470,795
|
|
$ 1,520,664
|
|
$ 1,565,031
|
|
$ 1,555,323
|
|
$ 1,556,140
|
|
|
|
|
|
|
Total Assets
|
|
1,582,455
|
|
1,630,975
|
|
1,681,561
|
|
1,651,907
|
|
1,687,184
|
|
|
|
|
|
|
Total Loans
|
|
1,059,527
|
|
1,111,697
|
|
1,162,365
|
|
1,209,013
|
|
1,209,033
|
|
|
|
|
|
|
Equity
|
|
92,209
|
|
91,958
|
|
108,870
|
|
116,501
|
|
116,671
|
|
|
|
|
|
|
Interest Bearing
Liabilities
|
|
1,347,893
|
|
1,407,978
|
|
1,438,633
|
|
1,405,419
|
|
1,442,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,835,724
|
|
16,824,008
|
|
16,812,380
|
|
16,812,625
|
|
16,814,378
|
|
16,829,898
|
|
16,810,357
|
|
|
Diluted
|
|
16,906,810
|
|
16,824,008
|
|
16,812,380
|
|
16,812,625
|
|
16,814,378
|
|
16,897,702
|
|
16,810,357
|
|
|
Period end outstanding
shares
|
|
16,831,375
|
|
16,838,125
|
|
16,812,625
|
|
16,812,625
|
|
16,812,625
|
|
16,831,375
|
|
16,812,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Tangible Common Equity to
Total Tangible Assets is period-ending common equity less
intangibles, divided by period-ending assets less
intangibles.
|
|
|
|
Management provides the above
non-GAAP measure, footnote (1) to provide readers with the impact
of purchase accounting on this key financial ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Southern Community Financial Corporation