WINSTON-SALEM, N.C.,
Jan. 30, 2012 /PRNewswire/ --
Southern Community Financial Corporation (NASDAQ: SCMF) (NASDAQ:
SCMFO), announced today that it earned $359
thousand, or $0.02 per diluted
common share, in the fourth quarter of 2011, posting its third
consecutive quarterly profit as credit quality trends continued
their year-long improvement. For the full year 2011, the
Company earned $520 thousand, or
$0.03 per diluted common share,
compared to a net loss of $25.7
million a year ago, or $1.53
net loss per common diluted share.
(Logo: http://photos.prnewswire.com/prnh/20110721/CL38548LOGO
)
The Company's fourth quarter results compare to a net income
available to common shareholders of $138
thousand for the third quarter of 2011 and a net loss
available to common shareholders of $11.5
million a year ago. Net income per diluted common
share of $0.02 in the fourth quarter
improved significantly from a net loss per diluted common share of
$0.68 for the fourth quarter 2010.
Net income in the third quarter 2011 was $0.01 per diluted common share.
Most credit issues have stabilized in the second half of 2011 as
nonperforming assets have decreased 19% to $87.9 million, or 5.85% of total assets, at
December 31, 2011 from $109.1 million, or 6.60% of total assets, from
year-end 2010.
In the past 12 months, the leading credit quality measures
improved. Noncurrent loans, charge-offs, delinquencies up to
89 days past due, nonperforming loans and nonperforming assets all
declined. In addition, allowance for loan losses required
significantly less funding in 2011 due to the improving quality of
the Bank's loan portfolio as the loan loss provision declined by
$23.9 million in 2011, a 67% decrease
from the $39.0 million in 2010.
"We have made exceptional progress in the past 12 months," said
CEO and President F. Scott Bauer.
"As we have continued to eliminate problem assets, our
balance sheet and income statement have both seen significant
improvement over the past year. The result has been a
$26.2 million turnaround in bottom
line results."
"We believe our credit trends will continue to improve during
2012," he said. "Problem loans are declining and we are
working very closely with customers who need our help in
restructuring their loans. The effort by our employees to get
our bank moving in the right direction has been phenomenal."
Southern Community Bank's capital ratios – the measure of a
bank's financial strength – continue to improve as well as
stockholder equity of $97.6 million
represented 6.50% of total assets. Tier 1 leverage capital, a
combination of equity and retained earnings, increased to 9.07% in
the fourth quarter compared to 8.76% at September 30, 2011.
"Although the Bank has made remarkable progress, we still face a
tentative, uncertain economy that most likely will continue to
challenge many financial institutions, including community banks,"
Bauer said. "Loan demand today is weak, but we are making
inroads in reaching out to business owners in our markets.
Our ability to serve small to medium sized business is one of
our strengths."
Southern Community Bank was recently presented the Small
Business Administration's "Achievement Award," and ranked
thirteenth out of ninety-one banks in North Carolina based upon the number of loans
made.
Financial Highlights:
- Net income available to common shareholders of $359 thousand, or $0.02 per diluted common share, for fourth
quarter 2011;
- For 2011, net income available to common shareholders of
$520 thousand, or $0.03 per diluted common share;
- Provision for loan losses of $3.4
million decreased $550
thousand compared to third quarter of 2011;
- Provision for loan losses for 2011 of $15.2 million decreased $23.8 million, or 61%, year-over-year;
- Nonperforming loans decreased 26% to $68.0 million, or 7.13% of loans, at December 31, 2011 from $91.8 million, or 8.08% of loans, at December 31, 2010;
- Nonperforming assets decreased 19% to $87.9 million, or 5.85% of total assets, from
$109.1 million, or 6.60% of total
assets, at December 31, 2010;
- Net charge-offs for 2011 have declined to 1.98% from 3.25% of
average loans (annualized) for the same period in 2010;
- Allowance for loan losses decreased $5.4
million year-over-year to $24.2
million, or 2.53% of total loans; and
- Personnel expenses decreased 13% and overall non-interest
expenses declined 7% for full year 2011, compared to 2010
levels.
For 2011, the Company reported net income available to common
shareholders of $520 thousand as the
Company stabilized its asset quality and continued to effectively
manage expenses downward on a year-over-year basis.
Asset Quality
Nonperforming loans decreased $4.4
million to $68.0 million, or
7.13% of total loans, at December 31,
2011 from $72.5 million, or
7.30% of total loans, at September 30,
2011 as a result of $6.4
million in gross charge-offs and $5.0
million in foreclosures outpacing $7.0 million of new additions to nonperforming
loans in the fourth quarter of 2011. On a year-over-year
basis, nonperforming loans were down $23.7
million, or 26%. Loans delinquent 30-89 days
sequentially increased by $691
thousand to $5.2 million at
December 31, 2011; however,
delinquencies showed improvement over the December 31, 2010 level of $5.5 million. Foreclosed assets increased
$698 thousand, or 4%, on a linked
quarter basis. New foreclosed asset additions during the
fourth quarter of 2011 were mostly offset by $2.8 million in sales of properties and
$1.6 million in valuation writedowns.
Nonperforming assets showed significant improvement of
$21.2 million or 19% year-over-year,
decreasing to $87.9 million or 5.85%
of total assets from $109.1 million
or 6.60% of total assets at December 31,
2010.
The provision for loan losses of $3.4
million in the fourth quarter of 2011 decreased $550 thousand from $4.0
million in the third quarter of 2011. The allowance
for loan losses (ALLL) decreased $2.2
million to $24.2 million, or
2.53% of total loans, from $26.4
million, or 2.66% of total loans, at September 30, 2011. This decrease in ALLL
was in part the result of the $37.8
million decrease in total loans outstanding at comparative
quarter-ends. Net charge-offs increased sequentially to
$5.6 million, or 2.29% of average
loans on an annualized basis, from $5.1
million, or 1.98% of average loans on an annualized basis,
for the third quarter of 2011. However, compared with the
fourth quarter of 2010, net charge-offs have declined from 4.10% of
average loans. For the full year 2011 compared with 2010, net
charge-offs have declined to 1.98% from 3.25% of average loans.
The overall ALLL level decreased by $2.2 million during the fourth quarter of 2011
primarily as a result of a $37.7
million decrease in loans collectively evaluated for
impairment. The specific allowance for impaired loans
decreased by $525 thousand to
$1.6 million on a linked quarter
basis despite the sequential increase of $158 thousand in the volume of impaired loans
individually evaluated for impairment.
Net Interest Income
Net interest income of $11.5
million in the fourth quarter of 2011 decreased $461 thousand, or 4%, compared to $12.0 million in the third quarter of 2011 as the
average balance of interest earning assets declined $25.3 million, or 2%, on a linked quarter basis.
This decline in earning assets was driven by a $37.3 million sequential decrease in average loan
balances, resulting from continued customer deleveraging, soft new
loan demand and problem loan remediation. The fourth quarter
2011 net interest margin of 3.22% declined by seven basis points on
a linked quarter basis as earning asset yields decreased by 11
basis points due to the shift in earning asset mix caused by the
decrease in loan balances.
On a year-over-year basis, net interest income decreased
$914 thousand, or 7%, and the net
interest margin of 3.22% increased by eight basis points from 3.14%
in the fourth quarter of 2010. This decrease in net interest
income was due to a $148.7 million
decrease in the average balance of earning assets partially offset
by the seven basis point increase in net interest spread. The
decrease in earning assets was driven by a $186.6 million decrease in the average balance of
loans. This decrease was partially offset by a $37.9 million net increase in the average balance
of investments and other earning assets. The year-over-year
increase in the net interest spread was attributable more to the
impact of downward repricing on the cost of deposits than the
impact of the earning asset mix shift as the year-over-year average
loan yield improved by one basis point.
Non-interest Income
Non-interest income increased by $1.2
million, or 38%, to $4.4
million during the fourth quarter of 2011 compared with the
third quarter of 2011. The sequential increase in
non-interest income was attributable primarily to the $1.0 million increase in gains on sales of
investment securities, $323 thousand
improvement in SBIC income, $52
thousand increase in wealth management income and
$34 thousand increase in mortgage
banking income. These linked quarter increases were partially
offset by a $121 thousand decrease in
fair value of derivatives, $90
thousand decrease in other income and a $36 thousand decrease in service charge
income.
Compared to the fourth quarter of 2010, non-interest income
increased by $203 thousand, or 5%.
The comparative quarter increase was primarily related to a
$646 thousand increase in gains on
investment security sales and a $166
thousand increase in the fair value of derivatives.
These comparative quarter increases were partially offset by
a $337 thousand decrease in mortgage
banking income, $200 thousand
decrease in service charge income, $31
thousand decrease in other income and an $11 thousand decrease in SBIC income.
Non-interest Expenses
Non-interest expenses of $11.5
million during the fourth quarter of 2011 increased
$1.1 million, or 10%, on a linked
quarter basis. The sequential increase in non-interest
expenses was attributable primarily to a $1.3 million increase in foreclosed asset related
expenses and $30 thousand increase in
personnel expenses. Of the increase in foreclosed asset
related expenses, the majority of this linked quarter increase was
attributable to $1.6 million in
writedowns on carrying values of foreclosed properties resulting
from declining real estate valuations. Offsetting a portion
of these sequential increases, there were sequential decreases of
$132 thousand in occupancy expenses,
$44 thousand in FDIC insurance
expense and $37 thousand in other
non-interest expenses.
Compared to the fourth quarter of 2010, non-interest expenses
decreased $1.1 million or 9%.
This year-over-year decrease was due primarily to a
$591 thousand decrease in salaries
and employee benefits, a $577
thousand decrease in foreclosure related expenses,
$173 thousand decrease in other
expenses and an $82 thousand decrease
in occupancy expenses. These were partially offset by a
year-over-year increase of $312
thousand in FDIC insurance expense.
Balance Sheet
As of December 31, 2011, total
assets amounted to $1.50 billion,
representing a decrease of $43.6
million, or 3%, compared to September
30, 2011. Total assets decreased $151.0 million, or 9%, on a year-over-year basis.
The loan portfolio, excluding loans held for sale, decreased
by $36.5 million, or 4%,
sequentially, and decreased by $180.1
million, or 16%, since December 31,
2010 due to loan remediation activities and weak loan demand
resulting from the prolonged economic downturn. Total
deposits of $1.18 billion at
December 31, 2011 decreased
$46.0 million, or 4%, sequentially
due to net deposit outflows in all categories. All interest
bearing deposits were impacted by the Bank's reductions in deposit
offering rates. The decrease in time deposits of $32.4 million, or 5%, was affected by the
$12.0 million outflow of brokered
deposits.
At December 31, 2011,
stockholders' equity of $97.6 million
represented 6.50% of total assets. Stockholders' equity
decreased $653 thousand, or 1%, on a
linked quarter basis due to a decrease in unrealized gains on
available for sale investment securities of $1.7 million offsetting the net income (before
preferred dividends) of $997
thousand. The regulatory capital ratios for the Bank
at December 31, 2011 were in excess
of required levels. The Bank's Tier 1 leverage ratio and
total risk-based capital ratio increased to 9.07% and 13.85%,
respectively, at December 31, 2011
from 8.76% and 13.35%, respectively, at September 30, 2011.
Conference Call
Southern Community's executive management team will host a
conference call on January 31, 2012,
at 8:30 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 and entering conference number
10008833. A replay of the conference call can be accessed
until 9:00 am on February 14, 2012, by calling 1-877-344-7529 or
1-412-317-0088 and entering conference number 10008833.
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
|
|
Years
Ended
|
|
|
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
|
Income Statement
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
$
16,602
|
|
$
17,287
|
|
$
18,148
|
|
$
18,699
|
|
$
19,164
|
|
$
70,736
|
|
$
80,638
|
|
|
Interest Expense
|
|
5,111
|
|
5,335
|
|
5,578
|
|
5,868
|
|
6,759
|
|
21,892
|
|
28,278
|
|
|
Net Interest
Income
|
|
11,491
|
|
11,952
|
|
12,570
|
|
12,831
|
|
12,405
|
|
48,844
|
|
52,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
Losses
|
|
3,400
|
|
3,950
|
|
3,700
|
|
4,100
|
|
6,500
|
|
15,150
|
|
39,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (Loss) after
Provision for Loan Losses
|
|
8,091
|
|
8,002
|
|
8,870
|
|
8,731
|
|
5,905
|
|
33,694
|
|
13,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on
deposit accounts
|
|
1,417
|
|
1,453
|
|
1,581
|
|
1,488
|
|
1,617
|
|
5,939
|
|
6,533
|
|
|
Income from mortgage banking
activities
|
|
377
|
|
343
|
|
291
|
|
263
|
|
714
|
|
1,274
|
|
2,182
|
|
|
Investment brokerage and trust
fees
|
|
276
|
|
224
|
|
320
|
|
188
|
|
306
|
|
1,008
|
|
1,474
|
|
|
SBIC income (loss) and
management fees
|
|
(5)
|
|
(328)
|
|
123
|
|
122
|
|
6
|
|
(88)
|
|
631
|
|
|
Gain (Loss) on sale of
investment securities
|
|
1,781
|
|
740
|
|
524
|
|
944
|
|
1,135
|
|
3,989
|
|
3,531
|
|
|
Gain (Loss) and net cash
settlement on economic hedges
|
|
87
|
|
208
|
|
181
|
|
(605)
|
|
(79)
|
|
(129)
|
|
(532)
|
|
|
Other-than-temporary
impairment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(186)
|
|
|
Other Income
|
|
470
|
|
560
|
|
514
|
|
503
|
|
501
|
|
2,047
|
|
1,972
|
|
|
Total Non-Interest
Income
|
|
4,403
|
|
3,200
|
|
3,534
|
|
2,903
|
|
4,200
|
|
14,040
|
|
15,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,512
|
|
4,482
|
|
4,568
|
|
4,746
|
|
5,103
|
|
18,308
|
|
20,926
|
|
|
Occupancy and
equipment
|
|
1,696
|
|
1,828
|
|
1,860
|
|
1,784
|
|
1,778
|
|
7,168
|
|
7,428
|
|
|
FDIC deposit
insurance
|
|
847
|
|
891
|
|
932
|
|
1,133
|
|
535
|
|
3,803
|
|
2,197
|
|
|
Foreclosed asset
related
|
|
1,786
|
|
531
|
|
636
|
|
879
|
|
2,363
|
|
3,832
|
|
4,914
|
|
|
Other
|
|
2,656
|
|
2,693
|
|
3,259
|
|
2,941
|
|
2,829
|
|
11,549
|
|
12,303
|
|
|
Total Non-Interest
Expense
|
|
11,497
|
|
10,425
|
|
11,255
|
|
11,483
|
|
12,608
|
|
44,660
|
|
47,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Taxes
|
|
997
|
|
777
|
|
1,149
|
|
151
|
|
(2,503)
|
|
3,074
|
|
(18,803)
|
|
|
Provision for Income
Taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,318
|
|
-
|
|
4,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
997
|
|
$
777
|
|
$
1,149
|
|
$
151
|
|
$
(10,821)
|
|
$
3,074
|
|
$
(23,121)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective dividend on preferred
stock
|
|
638
|
|
639
|
|
638
|
|
639
|
|
633
|
|
2,554
|
|
2,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) available to
common shareholders
|
|
$
359
|
|
$
138
|
|
$
511
|
|
$
(488)
|
|
$
(11,454)
|
|
$
520
|
|
$
(25,652)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.02
|
|
$
0.01
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
0.03
|
|
$
(1.53)
|
|
|
Diluted
|
|
$
0.02
|
|
$
0.01
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
0.03
|
|
$
(1.53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
|
|
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
Banks
|
|
$
23,356
|
|
$
23,062
|
|
$
18,590
|
|
$
28,096
|
|
$
16,584
|
|
|
|
|
|
|
Federal Funds Sold and Overnight
Deposits
|
|
23,198
|
|
33,862
|
|
46,380
|
|
34,615
|
|
49,587
|
|
|
|
|
|
|
Investment Securities
|
|
406,701
|
|
404,340
|
|
357,428
|
|
350,962
|
|
352,873
|
|
|
|
|
|
|
Federal Home Loan Bank
Stock
|
|
6,842
|
|
7,381
|
|
7,879
|
|
8,750
|
|
8,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held for Sale
|
|
4,459
|
|
5,750
|
|
1,624
|
|
597
|
|
5,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
950,022
|
|
986,533
|
|
1,038,349
|
|
1,083,468
|
|
1,130,076
|
|
|
|
|
|
|
Allowance for Loan
Losses
|
|
(24,165)
|
|
(26,409)
|
|
(27,511)
|
|
(27,664)
|
|
(29,580)
|
|
|
|
|
|
|
Net Loans
|
|
925,857
|
|
960,124
|
|
1,010,838
|
|
1,055,804
|
|
1,100,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Premises and
Equipment
|
|
38,315
|
|
38,878
|
|
39,360
|
|
39,878
|
|
40,550
|
|
|
|
|
|
|
Foreclosed Assets
|
|
19,812
|
|
19,114
|
|
23,022
|
|
23,060
|
|
17,314
|
|
|
|
|
|
|
Other Assets
|
|
53,816
|
|
53,482
|
|
56,865
|
|
62,118
|
|
61,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
1,502,356
|
|
$
1,545,993
|
|
$
1,561,986
|
|
$
1,603,880
|
|
$
1,653,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Bearing
|
|
$
135,434
|
|
$
137,599
|
|
$
127,485
|
|
$
126,393
|
|
$
110,114
|
|
|
|
|
|
|
Money market, savings and
NOW
|
|
475,900
|
|
487,393
|
|
490,382
|
|
521,577
|
|
582,878
|
|
|
|
|
|
|
Time
|
|
571,838
|
|
604,188
|
|
630,021
|
|
631,240
|
|
655,427
|
|
|
|
|
|
|
Total Deposits
|
|
1,183,172
|
|
1,229,180
|
|
1,247,888
|
|
1,279,210
|
|
1,348,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
211,143
|
|
208,668
|
|
209,954
|
|
224,608
|
|
204,784
|
|
|
|
|
|
|
Accrued Expenses and Other
Liabilities
|
|
10,406
|
|
9,857
|
|
9,404
|
|
8,208
|
|
7,854
|
|
|
|
|
|
|
Total
Liabilities
|
|
1,404,721
|
|
1,447,705
|
|
1,467,246
|
|
1,512,026
|
|
1,561,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
97,635
|
|
98,288
|
|
94,740
|
|
91,854
|
|
92,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
1,502,356
|
|
$
1,545,993
|
|
$
1,561,986
|
|
$
1,603,880
|
|
$
1,653,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per Common
Share
|
|
$
3.29
|
|
$
3.33
|
|
$
3.12
|
|
$
2.95
|
|
$
2.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended
|
|
Years
Ended
|
|
|
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
|
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings (loss) per
Share
|
|
$
0.02
|
|
$
0.01
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
0.03
|
|
$
(1.53)
|
|
|
Diluted Earnings (loss) per
Share
|
|
$
0.02
|
|
$
0.01
|
|
$
0.03
|
|
$
(0.03)
|
|
$
(0.68)
|
|
$
0.03
|
|
$
(1.53)
|
|
|
Tangible Book Value per
Share
|
|
$
3.29
|
|
$
3.33
|
|
$
3.12
|
|
$
2.95
|
|
$
2.99
|
|
$
3.29
|
|
$
2.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets
(annualized) ROA
|
|
0.26%
|
|
0.20%
|
|
0.29%
|
|
0.04%
|
|
-2.55%
|
|
0.20%
|
|
-1.38%
|
|
|
Return on Average Equity
(annualized) ROE
|
|
4.02%
|
|
3.24%
|
|
5.00%
|
|
0.67%
|
|
-39.43%
|
|
3.25%
|
|
-19.94%
|
|
|
Return on Tangible Equity
(annualized)
|
|
4.04%
|
|
3.26%
|
|
5.03%
|
|
0.67%
|
|
-39.68%
|
|
3.27%
|
|
-20.07%
|
|
|
Net Interest Margin
|
|
3.22%
|
|
3.29%
|
|
3.43%
|
|
3.42%
|
|
3.14%
|
|
3.34%
|
|
3.35%
|
|
|
Net Interest Spread
|
|
3.06%
|
|
3.14%
|
|
3.29%
|
|
3.30%
|
|
2.99%
|
|
3.20%
|
|
3.19%
|
|
|
Non-interest Income as a % of
Revenue
|
|
27.70%
|
|
21.12%
|
|
21.94%
|
|
18.45%
|
|
25.29%
|
|
22.33%
|
|
22.96%
|
|
|
Non-interest Income as a % of
Average Assets
|
|
1.15%
|
|
0.82%
|
|
0.90%
|
|
0.72%
|
|
0.99%
|
|
0.89%
|
|
0.93%
|
|
|
Non-interest Expense to Average
Assets
|
|
3.00%
|
|
2.67%
|
|
2.85%
|
|
2.86%
|
|
2.97%
|
|
2.84%
|
|
2.84%
|
|
|
Efficiency Ratio
|
|
72.34%
|
|
68.80%
|
|
69.89%
|
|
72.98%
|
|
75.93%
|
|
71.02%
|
|
70.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans
|
|
$
68,048
|
|
$
72,457
|
|
$
66,803
|
|
$
73,741
|
|
$
91,777
|
|
$
68,048
|
|
$
91,777
|
|
|
Nonperforming Assets
|
|
$
87,860
|
|
$
91,571
|
|
$
89,825
|
|
$
96,801
|
|
$
109,091
|
|
$
87,860
|
|
$
109,091
|
|
|
Nonperforming Loans to Total
Loans
|
|
7.13%
|
|
7.30%
|
|
6.42%
|
|
6.80%
|
|
8.08%
|
|
7.13%
|
|
8.08%
|
|
|
Nonperforming Assets to Total
Assets
|
|
5.85%
|
|
5.92%
|
|
5.75%
|
|
6.04%
|
|
6.60%
|
|
5.85%
|
|
6.60%
|
|
|
Allowance for Loan Losses to
Period-end Loans
|
|
2.53%
|
|
2.66%
|
|
2.65%
|
|
2.55%
|
|
2.60%
|
|
2.53%
|
|
2.60%
|
|
|
Allowance for Loan Losses to
Nonperforming Loans (X)
|
|
0.36
|
X
|
0.36
|
X
|
0.41
|
X
|
0.38
|
X
|
0.32
|
X
|
0.36
|
X
|
0.32
|
X
|
|
Net Charge-offs to Average Loans
(annualized)
|
|
2.29%
|
|
1.98%
|
|
1.46%
|
|
2.19%
|
|
4.10%
|
|
1.98%
|
|
3.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to Total
Assets
|
|
6.50%
|
|
6.36%
|
|
6.07%
|
|
5.73%
|
|
5.58%
|
|
6.50%
|
|
5.58%
|
|
|
Tangible Common Equity to Total
Tangible Assets (1)
|
|
3.68%
|
|
3.62%
|
|
3.36%
|
|
3.10%
|
|
3.04%
|
|
3.68%
|
|
3.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets
|
|
$
1,462,016
|
|
$
1,477,405
|
|
$
1,495,592
|
|
$
1,520,664
|
|
$
1,562,393
|
|
|
|
|
|
|
Total Assets
|
|
1,570,773
|
|
1,587,849
|
|
1,606,580
|
|
1,630,975
|
|
1,681,068
|
|
|
|
|
|
|
Total Loans
|
|
1,039,531
|
|
1,061,036
|
|
1,085,468
|
|
1,111,697
|
|
1,200,609
|
|
|
|
|
|
|
Equity
|
|
94,455
|
|
93,122
|
|
92,084
|
|
91,958
|
|
115,962
|
|
|
|
|
|
|
Interest Bearing
Liabilities
|
|
1,333,836
|
|
1,354,558
|
|
1,377,769
|
|
1,407,978
|
|
1,436,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning
Assets
|
|
$
1,416,350
|
|
$
1,441,624
|
|
$
1,470,795
|
|
$
1,520,664
|
|
$
1,565,031
|
|
|
|
|
|
|
Total Assets
|
|
1,520,101
|
|
1,550,998
|
|
1,582,455
|
|
1,630,975
|
|
1,681,561
|
|
|
|
|
|
|
Total Loans
|
|
975,717
|
|
1,012,969
|
|
1,059,527
|
|
1,111,697
|
|
1,162,365
|
|
|
|
|
|
|
Equity
|
|
98,411
|
|
95,164
|
|
92,209
|
|
91,958
|
|
108,870
|
|
|
|
|
|
|
Interest Bearing
Liabilities
|
|
1,272,345
|
|
1,308,892
|
|
1,347,893
|
|
1,407,978
|
|
1,438,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,827,684
|
|
16,830,099
|
|
16,835,724
|
|
16,824,008
|
|
16,812,380
|
|
16,829,391
|
|
16,811,439
|
|
|
Diluted
|
|
16,891,910
|
|
16,896,214
|
|
16,906,810
|
|
16,824,008
|
|
16,812,380
|
|
16,896,692
|
|
16,811,439
|
|
|
Period end outstanding
shares
|
|
16,827,075
|
|
16,828,575
|
|
16,831,375
|
|
16,838,125
|
|
16,812,625
|
|
16,827,075
|
|
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