SOUTHERN COMMUNITY FINANCIAL CORP. 
By WINSTON-SALEM, N.C., Oct. 20, 2011 /PRNewswire/ -- Southern Community Financial Corporation (NASDAQ: SCMF) (NASDAQ: SCMFO), announced today that it earned $138 thousand in the third quarter of 2011, equating to $0.01 per common share. This is its second consecutive quarterly profit since the onset of the financial crisis in fourth quarter of 2008.
(Logo: http://photos.prnewswire.com/prnh/20110721/CL38548LOGO )
The Company's third quarter results compare to a net income available to common shareholders of $511 thousand for the second quarter of 2011 and a net loss available to common shareholders of $8.6 million a year ago. Net income per diluted share of $0.01 in the third quarter improved significantly from a net loss per diluted share of $0.51 for the third quarter 2010. Net income available to common shareholders in the second quarter 2011 was $0.03 per diluted share.
Most credit issues have stabilized through the first nine months of 2011, with only a slight increase in nonperforming loans from the second quarter. Of particular note, says bank management, are the marked improvements and positive trends in asset quality they have seen since September 30, 2010.
Chairman and CEO F. Scott Bauer credits the employees and management team for Southern Community Bank's ability to navigate through a difficult financial crisis and recession while continuing to make progress in a still tentative and uncertain economic climate.
"While the last three years have been challenging, 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. Today, local deposits represent more than 70% of our funding, the highest since Southern Community started fifteen years ago. We sincerely thank our customers and shareholders for their support."
While making significant inroads in eliminating problem loans from its balance sheet, management has seen its capital - the measure of a company's strength - jump to $98.3 million from $92.3 million in nine months, while exceeding all required regulatory capital levels. Demand deposits - the measure of customer confidence in the bank - increased by $10.1 million, or 8%.
"Our reputation for providing excellent service has never diminished. We will have substantial opportunity for growth in the future driven by industry consolidation and changes in our competition," Bauer said. "Our Board and management team will continue to work through this tough economic environment and prepare for the opportunities ahead."
Financial Highlights:
-- Net income available to common shareholders of $138 thousand, or $0.01
per diluted share, for third quarter 2011;
-- Year-to-date net income available to common shareholders of $161
thousand, or $0.01 per diluted share;
-- Provision for loan losses of $4.0 million increased $250 thousand
compared to second quarter of 2011;
-- Year-to-date provision for loan losses of $11.8 million decreased $20.8
million, or 64%, year-over-year;
-- Nonperforming loans increased 8% to $72.5 million, or 7.30% of loans, at
September 30, 2011 from $66.8 million, or 6.42% of loans, at June 30,
2011;
-- Despite a 2% increase on a linked quarter basis, nonperforming assets
decreased 22% to $91.6 million, or 5.92% of total assets, from $118.1
million, or 7.10% of total assets, at September 30, 2010;
-- Year-to-date net charge-offs have declined to 1.88% from 2.98% of
average loans (annualized) for the same period in 2010; and
-- Allowance for loan losses decreased $1.1 million to $26.4 million, or
2.66% of total loans.
For the first nine months of 2011, the Company reported net income available to common shareholders of $161 thousand as the Company stabilized its asset quality and continued to effectively manage expenses downward on a linked quarter and year-over-year basis.
Asset Quality
Nonperforming loans increased $5.7 million to $72.5 million, or 7.30% of total loans, at September 30, 2011 from $66.8 million, or 6.42% of total loans, at June 30, 2011 primarily due to a $10.2 million relationship being restructured and placed on a nonaccrual status during the quarter. On a year-over-year basis, nonperforming loans were down $26.3 million, or 27%. Loans delinquent 30-89 days sequentially increased by $253 thousand to $4.5 million at September 30, 2011; however, delinquencies showed significant improvement over the September 30, 2010 level of $8.9 million. Foreclosed assets decreased $3.9 million, or 17%, on a linked quarter basis as $6.0 million in sales of properties and writedowns of $315 thousand offset the new foreclosed asset additions during the third quarter of 2011. Despite a $1.7 million, or 2%, increase on a linked quarter basis, nonperforming assets showed significant improvement of $26.5 million or 22% year-over-year, decreasing to $91.6 million or 5.92% of total assets from $118.1 million or 7.10% of total assets at September 30, 2010.
The provision for loan losses of $4.0 million in the third quarter of 2011 increased $250 thousand from $3.7 million in the second quarter of 2011. The allowance for loan losses (ALLL) decreased $1.1 million to $26.4 million, or 2.66% of total loans, from $27.5 million, or 2.65% of total loans, at June 30, 2011. This decrease in ALLL was in part the result of the $47.7 million decrease in total loans outstanding at comparative quarter-ends. Net charge-offs increased sequentially to $5.1 million, or 1.98% of average loans on an annualized basis, from $3.9 million, or 1.46% of average loans on an annualized basis, for the second quarter of 2011; however, compared with the third quarter of 2010, net charge-offs have declined from 3.78% of average loans on an annualized basis. For the nine months year-to-date in 2011 compared with the prior year-to-date period, net charge-offs have declined to 1.88% from 2.98% of average loans on an annualized basis. While the overall ALLL level decreased by $1.1 million during the third quarter of 2011 primarily as a result of a $59.7 million decrease in loans collectively evaluated for impairment, the specific allowance for impaired loans decreased by $183 thousand to $2.1 million on a linked quarter basis despite the sequential increase of $12.0 million in the volume of impaired loans individually evaluated for impairment.
Net Interest Income
Net interest income of $12.0 million in the third quarter of 2011 decreased $618 thousand, or 5%, compared to $12.6 million in the second quarter of 2011 as the average balance of interest earning assets declined $29.2 million, or 2%, on a linked quarter basis. This decline in earning assets was driven by a $24.4 million sequential decrease in average loan balances, resulting from continued customer deleveraging, soft new loan demand and problem loan remediation. The third quarter 2011 net interest margin of 3.29% declined by 14 basis points on a linked quarter basis as earning asset yields decreased by 20 basis points due to 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 $1.3 million, or 10%, and the net interest margin decreased by ten basis points from 3.39% in the third quarter of 2010. This decrease in net interest income was due to a $113.7 million decrease in the average balance of earning assets and the six basis point reduction in net interest spread attributable to the shift in the mix of earning assets as $82.3 million of the $196.0 million decrease in average loans 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 decreased by $334 thousand, or 9%, to $3.2 million during the third quarter of 2011 compared with the second quarter of 2011. The sequential decrease in non-interest income was attributable primarily to $451 thousand decrease in Small Business Investment Company (SBIC) income, $128 thousand decrease in service charge income and a $96 thousand decrease in investment brokerage fee income. These linked quarter decreases were partially offset by primarily a $216 thousand increase in gains on sales of investment securities and a $52 thousand increase in mortgage banking income.
Compared to the third quarter of 2010, non-interest income increased by $140 thousand, or 5%. The comparative quarter increase was primarily related to a $716 thousand increase in gains on investment security sales and a $592 thousand increase in the fair value of derivatives. These comparative quarter increases were partially offset by a $454 thousand decrease in SBIC income, a $408 thousand decrease in mortgage banking income, a $200 thousand decrease in investment brokerage fee income and a $187 thousand decrease in service charge income.
Non-interest Expenses
Non-interest expenses of $10.4 million during the third quarter of 2011 decreased $830 thousand, or 7%, on a linked quarter basis. The sequential reduction in non-interest expenses was attributable primarily to a $318 thousand decrease in professional services, $218 thousand decrease in advertising, $161 thousand decrease in real estate appraisal expenses, $105 thousand decrease in foreclosure related expenses, $86 thousand decrease in personnel expenses, $41 thousand decrease in FDIC insurance premiums and $32 thousand decrease in occupancy expenses. Offsetting a portion of these sequential decreases was a $137 thousand decrease in gains on sales of foreclosed assets.
Compared to the third quarter of 2010, non-interest expenses decreased $559 thousand or 5%. This year-over-year decrease was due primarily to a $551 thousand decrease in salaries and employee benefits, a $206 thousand decrease in professional services, a $92 thousand decrease in real estate appraisal expenses and a $77 thousand decrease in advertising. These were partially offset primarily by a year-over-year increase of $330 thousand in FDIC insurance premiums.
Balance Sheet
As of September 30, 2011, total assets amounted to $1.55 billion, representing a decrease of $16.0 million, or 1%, compared to June 30, 2011. Total assets decreased $116.8 million, or 7%, on a year-over-year basis. The loan portfolio, excluding loans held for sale, decreased by $51.8 million, or 5%, sequentially, and decreased by $197.2 million, or 17%, since September 30, 2010 due to loan remediation activities and weak loan demand resulting from the prolonged economic downturn. Total deposits of $1.23 billion at September 30, 2011 decreased $18.7 million, or 2%, sequentially primarily due to the $18.2 million outflow of brokered deposits. While interest bearing deposits decreased $28.8 million on a linked quarter basis, demand deposits increased by $10.1 million, or 8%.
At September 30, 2011, stockholders' equity of $98.3 million represented 6.36% of total assets. Stockholders' equity increased $3.5 million, or 4%, on a linked quarter basis due to net income (before preferred dividends) of $777 thousand and an increase in unrealized gains on available for sale investment securities of $2.8 million. The regulatory capital ratios for the Bank at September 30, 2011 were in excess of required levels. During the third quarter, the Bank's Tier 1 leverage ratio and total risk-based capital ratio increased to 8.76% and 13.35%, respectively, at September 30, 2011 from 8.48% and 12.87%, respectively, at June 30, 2011.
Conference Call
Southern Community's executive management team will host a conference call on October 21, 2011, 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. A replay of the conference call can be accessed until 9:00 am on November 4, 2011, by calling 1-877-344-7529 or 1-412-317-0088 and entering conference number 10005195.
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
Sep 30, Jun 30, Mar 31,
Income Statement 2011 2011 2011
---- ---- ----
Interest Income $17,287 $18,148 $18,699
Interest Expense 5,335 5,578 5,868
----- ----- -----
Net Interest Income 11,952 12,570 12,831
Provision for Loan Losses 3,950 3,700 4,100
Net Interest Income (Loss) after
Provision for Loan Losses 8,002 8,870 8,731
Non-Interest Income
Service charges and fees on deposit
accounts 1,453 1,581 1,488
Income from mortgage banking
activities 343 291 263
Investment brokerage and trust fees 224 320 188
SBIC income (loss) and management
fees (328) 123 122
Gain (Loss) on sale of investment
securities 740 524 944
Gain (Loss) and net cash settlement
on economic hedges 208 181 (605)
Other-than-temporary impairment - - -
Other Income 560 514 503
--- --- ---
Total Non-Interest Income 3,200 3,534 2,903
Non-Interest Expense
Salaries and employee benefits 4,482 4,568 4,746
Occupancy and equipment 1,828 1,860 1,784
FDIC deposit insurance 891 932 1,133
Foreclosed asset related 531 636 879
Other 2,693 3,259 2,941
----- ----- -----
Total Non-Interest Expense 10,425 11,255 11,483
Income (Loss) Before Taxes 777 1,149 151
Provision for Income Taxes - - -
--- --- ---
Net Income (Loss) $777 $1,149 $151
==== ====== ====
Effective dividend on preferred stock 639 638 639
--- --- ---
Net Income (loss) available to common
shareholders $138 $511 $(488)
==== ==== =====
Net Income (Loss) per Common Share
Basic $0.01 $0.03 $(0.03)
Diluted $0.01 $0.03 $(0.03)
===== ===== ======
For the three months ended
Dec 31, Sep 30,
Income Statement 2010 2010
---- ----
Interest Income $19,164 $20,049
Interest Expense 6,759 6,773
----- -----
Net Interest Income 12,405 13,276
Provision for Loan Losses 6,500 17,000
Net Interest Income (Loss) after
Provision for Loan Losses 5,905 (3,724)
Non-Interest Income
Service charges and fees on deposit
accounts 1,617 1,640
Income from mortgage banking
activities 714 751
Investment brokerage and trust fees 306 424
SBIC income (loss) and management
fees 6 126
Gain (Loss) on sale of investment
securities 1,135 24
Gain (Loss) and net cash settlement
on economic hedges (79) (384)
Other-than-temporary impairment - -
Other Income 501 479
--- ---
Total Non-Interest Income 4,200 3,060
Non-Interest Expense
Salaries and employee benefits 5,103 5,033
Occupancy and equipment 1,778 1,839
FDIC deposit insurance 469 561
Foreclosed asset related 1,895 528
Other 3,363 3,023
----- -----
Total Non-Interest Expense 12,608 10,984
Income (Loss) Before Taxes (2,503) (11,648)
Provision for Income Taxes 8,318 (3,698)
----- ------
Net Income (Loss) $(10,821) $(7,950)
======== =======
Effective dividend on preferred stock 633 633
--- ---
Net Income (loss) available to common
shareholders $(11,454) $(8,583)
======== =======
Net Income (Loss) per Common Share
Basic $(0.68) $(0.51)
Diluted $(0.68) $(0.51)
====== ======
Nine Months Ended
Sep 30, Sep 30,
Income Statement 2011 2010
---- ----
Interest Income $54,134 $61,474
Interest Expense 16,781 21,519
------ ------
Net Interest Income 37,353 39,955
Provision for Loan Losses 11,750 32,500
Net Interest Income (Loss) after
Provision for Loan Losses 25,603 7,455
Non-Interest Income
Service charges and fees on deposit
accounts 4,522 4,916
Income from mortgage banking
activities 897 1,468
Investment brokerage and trust fees 732 1,168
SBIC income (loss) and management
fees (83) 625
Gain (Loss) on sale of investment
securities 2,208 2,396
Gain (Loss) and net cash settlement
on economic hedges (216) (453)
Other-than-temporary impairment - (186)
Other Income 1,577 1,471
----- -----
Total Non-Interest Income 9,637 11,405
Non-Interest Expense
Salaries and employee benefits 13,796 15,823
Occupancy and equipment 5,472 5,650
FDIC deposit insurance 2,956 1,662
Foreclosed asset related 2,046 2,099
Other 8,893 9,926
----- -----
Total Non-Interest Expense 33,163 35,160
Income (Loss) Before Taxes 2,077 (16,300)
Provision for Income Taxes - (4,000)
--- ------
Net Income (Loss) $2,077 $(12,300)
====== ========
Effective dividend on preferred stock 1,916 1,898
----- -----
Net Income (loss) available to common
shareholders $161 $(14,198)
==== ========
Net Income (Loss) per Common Share
Basic $0.01 $(0.84)
Diluted $0.01 $(0.84)
===== ======
Balance Sheet Sep 30, Jun 30, Mar 31,
2011 2011 2011
---- ---- ----
Assets
Cash and due from Banks $23,062 $18,590 $28,096
Federal Funds Sold and
Overnight Deposits 33,862 46,380 34,615
Investment Securities 404,340 357,428 350,962
Federal Home Loan Bank Stock 7,381 7,879 8,750
Loans Held for Sale 5,750 1,624 597
Loans 986,533 1,038,349 1,083,468
Allowance for Loan Losses (26,409) (27,511) (27,664)
------- ------- -------
Net Loans 960,124 1,010,838 1,055,804
Bank Premises and Equipment 38,878 39,360 39,878
Foreclosed Assets 19,114 23,022 23,060
Other Assets 53,482 56,865 62,118
------ ------ ------
Total Assets $1,545,993 $1,561,986 $1,603,880
========== ========== ==========
Liabilities and
Stockholders' Equity
Deposits
Non-Interest Bearing $137,599 $127,485 $126,393
Money market, savings and
NOW 487,393 490,382 521,577
Time 604,188 630,021 631,240
------- ------- -------
Total Deposits 1,229,180 1,247,888 1,279,210
Borrowings 208,668 209,954 224,608
Accrued Expenses and Other
Liabilities 9,857 9,404 8,208
----- ----- -----
Total Liabilities 1,447,705 1,467,246 1,512,026
Total Stockholders' Equity 98,288 94,740 91,854
------ ------ ------
Total Liabilities and
Stockholders' Equity $1,545,993 $1,561,986 $1,603,880
========== ========== ==========
Tangible Book Value per
Common Share $3.33 $3.12 $2.95
===== ===== =====
Balance Sheet Dec 31, Sep 30,
2010 2010
---- ----
Assets
Cash and due from Banks $16,584 $44,612
Federal Funds Sold and
Overnight Deposits 49,587 1,646
Investment Securities 352,873 322,431
Federal Home Loan Bank Stock 8,750 9,092
Loans Held for Sale 5,991 7,161
Loans 1,130,076 1,183,753
Allowance for Loan Losses (29,580) (35,100)
------- -------
Net Loans 1,100,496 1,148,653
Bank Premises and Equipment 40,550 40,718
Foreclosed Assets 17,314 19,385
Other Assets 61,253 69,088
------ ------
Total Assets $1,653,398 $1,662,786
========== ==========
Liabilities and
Stockholders' Equity
Deposits
Non-Interest Bearing $110,114 $119,249
Money market, savings and
NOW 582,878 599,978
Time 655,427 598,383
------- -------
Total Deposits 1,348,419 1,317,610
Borrowings 204,784 228,343
Accrued Expenses and Other
Liabilities 7,854 7,739
----- -----
Total Liabilities 1,561,057 1,553,692
Total Stockholders' Equity 92,341 109,094
------ -------
Total Liabilities and
Stockholders' Equity $1,653,398 $1,662,786
========== ==========
Tangible Book Value per
Common Share $2.99 $3.99
===== =====
For the three months ended
Sep 30, Jun 30, Mar 31,
2011 2011 2011
---- ---- ----
Per Common Share Data:
Basic Earnings (loss) per
Share $0.01 $0.03 $(0.03)
Diluted Earnings (loss) per
Share $0.01 $0.03 $(0.03)
Tangible Book Value per
Share $3.33 $3.12 $2.95
Selected Performance Ratios:
Return on Average Assets
(annualized) ROA 0.20% 0.29% 0.04%
Return on Average Equity
(annualized) ROE 3.24% 5.00% 0.67%
Return on Tangible Equity
(annualized) 3.26% 5.03% 0.67%
Net Interest Margin 3.29% 3.43% 3.42%
Net Interest Spread 3.14% 3.29% 3.30%
Non-interest Income as a %
of Revenue 21.12% 21.94% 18.45%
Non-interest Income as a %
of Average Assets 0.82% 0.90% 0.72%
Non-interest Expense to
Average Assets 2.67% 2.85% 2.86%
Efficiency Ratio 68.80% 69.89% 72.98%
Asset Quality:
Nonperforming Loans $72,457 $66,803 $73,741
Nonperforming Assets $91,571 $89,825 $96,801
Nonperforming Loans to Total
Loans 7.30% 6.42% 6.80%
Nonperforming Assets to
Total Assets 5.92% 5.75% 6.04%
Allowance for Loan Losses to
Period-end Loans 2.66% 2.65% 2.55%
Allowance for Loan Losses to
Nonperforming Loans (X) 0.36 X 0.41 X 0.38 X
Net Charge-offs to Average
Loans (annualized) 1.98% 1.46% 2.19%
Capital Ratios:
Equity to Total Assets 6.36% 6.07% 5.73%
Tangible Common Equity to
Total Tangible Assets (1) 3.62% 3.36% 3.10%
Average Balances:
Year to Date
Interest Earning Assets $1,477,405 $1,495,592 $1,520,664
Total Assets 1,587,849 1,606,580 1,630,975
Total Loans 1,061,036 1,085,468 1,111,697
Equity 93,122 92,084 91,958
Interest Bearing Liabilities 1,354,558 1,377,769 1,407,978
Quarterly
Interest Earning Assets $1,441,624 $1,470,795 $1,520,664
Total Assets 1,550,998 1,582,455 1,630,975
Total Loans 1,012,969 1,059,527 1,111,697
Equity 95,164 92,209 91,958
Interest Bearing Liabilities 1,308,892 1,347,893 1,407,978
Weighted Average Number of
Shares Outstanding
Basic 16,830,099 16,835,724 16,824,008
Diluted 16,896,214 16,906,810 16,824,008
Period end outstanding
shares 16,828,575 16,831,375 16,838,125
For the three months ended
Dec 31, Sep 30,
2010 2010
---- ----
Per Common Share Data:
Basic Earnings (loss) per Share $(0.68) $(0.51)
Diluted Earnings (loss) per Share $(0.68) $(0.51)
Tangible Book Value per Share $2.99 $3.99
Selected Performance Ratios:
Return on Average Assets
(annualized) ROA -2.55% -1.91%
Return on Average Equity
(annualized) ROE -39.43% -27.07%
Return on Tangible Equity
(annualized) -39.68% -27.25%
Net Interest Margin 3.14% 3.39%
Net Interest Spread 2.99% 3.20%
Non-interest Income as a % of
Revenue 25.29% 18.73%
Non-interest Income as a % of
Average Assets 0.99% 0.73%
Non-interest Expense to Average
Assets 2.97% 2.64%
Efficiency Ratio 75.93% 67.24%
Asset Quality:
Nonperforming Loans $91,777 $98,709
Nonperforming Assets $109,091 $118,094
Nonperforming Loans to Total Loans 8.08% 8.29%
Nonperforming Assets to Total
Assets 6.60% 7.10%
Allowance for Loan Losses to
Period-end Loans 2.60% 2.95%
Allowance for Loan Losses to
Nonperforming Loans (X) 0.32 X 0.36 X
Net Charge-offs to Average Loans
(annualized) 4.10% 3.78%
Capital Ratios:
Equity to Total Assets 5.58% 6.56%
Tangible Common Equity to Total
Tangible Assets (1) 3.04% 4.03%
Average Balances:
Year to Date
Interest Earning Assets $1,562,393 $1,561,504
Total Assets 1,681,068 1,680,902
Total Loans 1,200,609 1,213,497
Equity 115,962 118,352
Interest Bearing Liabilities 1,436,443 1,435,705
Quarterly
Interest Earning Assets $1,565,031 $1,555,323
Total Assets 1,681,561 1,651,907
Total Loans 1,162,365 1,209,013
Equity 108,870 116,501
Interest Bearing Liabilities 1,438,633 1,405,419
Weighted Average Number of Shares
Outstanding
Basic 16,812,380 16,812,625
Diluted 16,812,380 16,812,625
Period end outstanding shares 16,812,625 16,812,625
Nine Months Ended
Sep 30, Sep 30,
2011 2010
---- ----
Per Common Share Data:
Basic Earnings (loss) per Share $0.01 $(0.84)
Diluted Earnings (loss) per Share $0.01 $(0.84)
Tangible Book Value per Share $3.33 $3.39
Selected Performance Ratios:
Return on Average Assets
(annualized) ROA 0.17% -0.98%
Return on Average Equity
(annualized) ROE 2.98% -13.90%
Return on Tangible Equity
(annualized) 3.00% -13.99%
Net Interest Margin 3.38% 3.42%
Net Interest Spread 3.24% 3.26%
Non-interest Income as a % of
Revenue 20.51% 22.21%
Non-interest Income as a % of
Average Assets 0.81% 0.91%
Non-interest Expense to Average
Assets 2.79% 2.80%
Efficiency Ratio 70.57% 68.46%
Asset Quality:
Nonperforming Loans $72,457 $98,709
Nonperforming Assets $91,571 $118,094
Nonperforming Loans to Total Loans 7.30% 8.29%
Nonperforming Assets to Total
Assets 5.92% 7.10%
Allowance for Loan Losses to
Period-end Loans 2.66% 2.95%
Allowance for Loan Losses to
Nonperforming Loans (X) 0.36 X 0.36 X
Net Charge-offs to Average Loans
(annualized) 1.88% 2.98%
Capital Ratios:
Equity to Total Assets 6.36% 6.56%
Tangible Common Equity to Total
Tangible Assets (1) 3.62% 4.03%
Average Balances:
Year to Date
Interest Earning Assets
Total Assets
Total Loans
Equity
Interest Bearing Liabilities
Quarterly
Interest Earning Assets
Total Assets
Total Loans
Equity
Interest Bearing Liabilities
Weighted Average Number of Shares
Outstanding
Basic 16,829,966 16,811,122
Diluted 16,897,742 16,811,122
Period end outstanding shares 16,828,575 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
