ASHEVILLE, N.C., Jan. 31, 2012 /PRNewswire/ -- ASB Bancorp, Inc.
(the “Company”) (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the “Bank”), announced today its
operating results for the three months and year ended December 31, 2011. The Company was incorporated
on May 12, 2011 by the Bank to be the
Bank’s holding company upon completion of the Bank’s conversion
from the mutual to stock form of organization, which occurred on
October 11, 2011. The Company
reported a net loss of $711,000, or
$(0.14) per share, for the three
months ended December 31, 2011 and
net income of $1.2 million, or
$0.23 per share, for the year ended
December 31, 2011. The loss for the
fourth quarter was primarily caused by higher loan and foreclosed
property loss provisions that were principally attributable to
lower valuations of real estate held as collateral for collateral
dependent impaired loans and held in the foreclosed property
portfolio.
(Logo: http://photos.prnewswire.com/prnh/20111031/CL96775LOGO
)
“While we are disappointed with the fourth quarter loss, we are
pleased with the overall improved results over last year,” said
Suzanne S. DeFerie, President and
Chief Executive Officer. “We believe that our diligence in the
re-evaluation of our non-performing assets, which resulted in
additional write-downs during the quarter, will ultimately provide
more normalized earnings. Our local market economic
indicators have begun to show slight improvements; however, we
remain diligent in monitoring real estate valuations for consistent
indications of a positive trend, particularly in the commercial
segment of the market.”
Balance Sheet Review
Total assets increased $40.9
million, or 5.5%, to $790.9
million at December 31, 2011
from $750.0 million at December 31, 2010, primarily due to $53.9 million in proceeds from the sale of common
stock, net of issuance expenses, that were partially offset by an
$11.5 million reduction in deposits.
Cash and cash equivalents also increased $48.1 million, or 198.5%, to $72.3 million at December
31, 2011 from $24.2 million at
December 31, 2010 due to the receipt
of proceeds from the issuance of stock in the conversion.
Investment securities increased $67.7
million, or 37.3%, to $249.1
million at December 31, 2011
from $181.4 million at December 31, 2010, primarily due to the
reinvestment of proceeds from loan repayments and prepayments that
were not replaced by new loan originations. Loans receivable, net
of deferred fees, decreased $67.1
million, or 13.4%, to $432.9
million at December 31, 2011
from $500.0 million at December 31, 2010 as loan repayments,
prepayments, and foreclosures continued to outpace new loan
originations.
Deposits decreased $11.5 million,
or 1.9%, to $608.2 million at
December 31, 2011 from $619.8 million at December
31, 2010. During 2011, core deposits, which exclude
certificates of deposit, increased $17.3
million, or 5.2%, to $349.7
million at December 31, 2011
from $332.4 million at December 31, 2010 as a result of the Company’s
continued focus on increasing these types of deposits. Certificates
of deposit decreased $28.9 million,
or 10.0%, to $258.5 million at
December 31, 2011 compared to
$287.4 million at December 31, 2010.
Asset Quality
The provision for loan losses totaled $2.0 million for the fourth quarter of 2011
compared to $4.1 million for the
fourth quarter of 2010. The decrease in the provision was due to
the combination of fewer charge-offs in the loan portfolio, a
decline in impaired loans, and lower loan balances as compared to
the fourth quarter of 2010. The provision for loan losses for the
fourth quarter of 2011 was significantly higher than the provisions
for loan losses for the previous three quarters of 2011 primarily
because of lower valuations of real estate that serves as
collateral for collateral dependent impaired loans and held in the
foreclosed property portfolio.
The provision for loan losses totaled $3.8 million for the year ended December 31, 2011 compared to $22.4 million for the year ended December 31, 2010. The decrease in the provision
was due to the combination of fewer charge-offs in the loan
portfolio, a decline in impaired loans, and lower loan balances.
The allowance for loan losses totaled $10.6
million, or 2.45% of total loans at December 31, 2011 compared to $12.7 million, or 2.54% of total loans, at
December 31, 2010. The Company
charged off $5.8 million in loans,
net of recoveries, during 2011 compared to $18.7 million in loans charged off, net of
recoveries, during 2010.
Nonperforming assets totaled $28.7
million, or 3.63% of total assets, at December 31, 2011, compared to $24.1 million, or 3.21% of total assets, at
December 31, 2010. Nonperforming
assets included $20.6 million in
nonperforming loans and $8.1 million
in foreclosed real estate at December 31,
2011, compared to $13.4
million and $10.7 million,
respectively, at December 31, 2010.
As of December 31, 2011,
nonperforming loans included six commercial land development loans
that totaled $14.7 million, one
commercial mortgage in the amount of $833,000, five commercial and industrial loans
that totaled $2.6 million, eleven
residential mortgages that totaled $1.9
million, and five home equity loans that totaled
$440,000. As of December 31, 2011, the nonperforming loans had
specific reserves of $1.0 million.
Foreclosed real estate at December 31,
2011 included eighteen properties with a total carrying
value of $8.1 million.
During the fourth quarter of 2011, one loan for the construction
of a mixed-use retail, commercial office, and residential
condominium project located in western North Carolina migrated from a performing
troubled debt restructure loan to a nonaccruing loan. As of
December 31, 2011, the primary loan
had a balance of $8.6 million, and
the Bank loaned an additional $2.3
million loan to a third party associated with the borrower’s
Chapter 11 bankruptcy plan for the purpose of facilitating a debtor
in possession loan. The debtor in possession loan, which totaled
$2.9 million, has a superior position
to the Bank’s primary loan. The court dismissed the bankruptcy, the
loan stopped performing and the Bank is in the process of
repurchasing the debtor in possession note and proceeding to
foreclosure. The project has 8 retail condominiums of which 4 have
been leased, 11 commercial office condominiums of which 3 have
sold, and 29 residential condominiums of which one has sold.
Income Statement Analysis
Net interest income decreased $263,000, or 5.2%, to $4.7
million for the fourth quarter of 2011 compared to
$5.0 million for the fourth quarter
of 2010. The net interest margin decreased 23 basis points to 2.51%
for the quarter ended December 31,
2011 compared to 2.74% for the quarter ended December 2010. Interest and dividend income
decreased $832,000, or 11.0%, for the
fourth quarter of 2011 compared to the fourth quarter of 2010,
primarily resulting from a 59 basis point decrease in the average
yield on interest-earning assets that was partially offset by an
increase in average interest-earning assets of $29.5 million. Interest expense decreased
$569,000, or 22.0%, for the fourth
quarter of 2011 compared to the fourth quarter of 2010, primarily
resulting from a 34 basis point decline in the average rate paid on
interest-bearing deposits coupled with a $27.7 million decrease in average
interest-bearing deposits.
For the year ended December 31,
2011, net interest income decreased $1.3 million, or 6.0%, to $20.1 million compared to $21.4 million for the year ended December 31, 2010. The net interest margin
decreased 15 basis points to 2.79% in 2011 from 2.94% in 2010.
Interest and dividend income decreased $4.1
million, or 12.4%, to $28.7
million in 2011 from $32.8
million in 2010, primarily resulting from a 54 basis point
decrease in the average yield on interest-earning assets. Interest
expense decreased $2.8 million, or
24.5%, to $8.6 million in 2011 from
$11.4 million in 2010, principally
attributable to a 46 basis point reduction in the average rate paid
on interest-bearing deposits and, to a lesser extent, a
$12.4 million decrease in average
interest-bearing deposits.
Noninterest income increased $511,000, or 28.0%, to $2.3 million for the three months ended
December 31, 2011 compared to
$1.8 million for the three months
ended December 31, 2010, primarily
due to higher gains from sales of securities that were partially
offset by lower gains from sales of residential mortgage loans and
lower deposit overdraft fees. For the year ended December 31, 2011, noninterest income increased
$266,000, or 3.5%, to $7.9 million from $7.7
million for the year ended December
31, 2010, primarily due to higher gains from sales of
securities and higher loan prepayment fees that were partially
offset by lower deposit fees and lower gains from sales of
residential mortgage loans.
Noninterest expense increased $584,000, or 10.2%, to $6.3 million for the three months ended
December 31, 2011 from $5.7 million for the three months ended
December 31, 2010. The increase was
primarily attributable to increases in foreclosed property,
compensation and professional expenses that were partially offset
by lower deposit insurance expense. For the year ended December 31, 2011, noninterest expense increased
$314,000, or 1.4%, to $22.5 million from $22.2
million for the year ended December
31, 2010, primarily attributable to increases in
compensation, foreclosed property, professional service and data
processing expenses that were partially offset by lower deposit
insurance and advertising expenses.
ASB Bancorp, Inc. is a North
Carolina corporation with one wholly-owned subsidiary,
Asheville Savings Bank. The Bank is a North Carolina chartered savings bank with a
community focus offering traditional financial services through 13
full-service banking centers located in Buncombe, Madison, McDowell, Henderson, and Transylvania counties in Western North Carolina.
This news release, as well as other written communications made
from time to time by the Company and its subsidiaries and oral
communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of
the Company (including certain projections and business trends)
that are considered “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995 (the PSLRA). Such
forward-looking statements may be identified by the use of such
words as “believe,” “expect,” “anticipate,” “should,” “planned,”
“estimated,” “intend” and “potential.” For these statements, the
Company claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: prevailing economic and
geopolitical conditions; changes in interest rates, loan demand,
real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting the Company’s operations,
pricing, products and services and other factors that may be
described in the Company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q as filed with the Securities and Exchange
Commission. The forward-looking statements are made as of the date
of this release, and, except as may be required by applicable law
or regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Contact:
|
Suzanne S. DeFerie
|
|
|
Chief Executive
Officer
|
|
|
(828) 254-7411
|
|
|
|
|
Selected Financial Condition
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
(dollars in
thousands)
|
|
2011
|
|
2010
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
790,868
|
|
$
749,965
|
|
5.5%
|
|
|
Cash and cash
equivalents
|
|
72,327
|
|
24,234
|
|
198.5%
|
|
|
Investment securities
|
|
249,081
|
|
181,393
|
|
37.3%
|
|
|
Loans receivable, net of
deferred fees
|
|
432,883
|
|
500,003
|
|
-13.4%
|
|
|
Allowance for loan
losses
|
|
(10,627)
|
|
(12,676)
|
|
16.2%
|
|
|
Deposits
|
|
608,236
|
|
619,757
|
|
-1.9%
|
|
|
FHLB advances
|
|
60,000
|
|
60,000
|
|
0.0%
|
|
|
Total equity
|
|
115,571
|
|
62,881
|
|
83.8%
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
(dollars in
thousands,
except per share
data)
|
|
2011
|
|
2010
|
|
%
change
|
|
2011
|
|
2010
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dividend income
|
|
$
6,760
|
|
$
7,592
|
|
-11.0%
|
|
$
28,734
|
|
$
32,815
|
|
-12.4%
|
|
|
Interest expense
|
|
2,013
|
|
2,582
|
|
-22.0%
|
|
8,642
|
|
11,444
|
|
-24.5%
|
|
|
Net interest income
|
|
4,747
|
|
5,010
|
|
-5.2%
|
|
20,092
|
|
21,371
|
|
-6.0%
|
|
|
Provision for loan
losses
|
|
1,974
|
|
4,110
|
|
-52.0%
|
|
3,785
|
|
22,419
|
|
-83.1%
|
|
|
Net interest income
(loss)
|
|
|
|
|
after provision
for
|
|
|
|
|
loan losses
|
|
2,773
|
|
900
|
|
208.1%
|
|
16,307
|
|
(1,048)
|
|
1656.0%
|
|
|
Noninterest income
|
|
2,337
|
|
1,826
|
|
28.0%
|
|
7,949
|
|
7,683
|
|
3.5%
|
|
|
Noninterest expense
|
|
6,297
|
|
5,713
|
|
10.2%
|
|
22,481
|
|
22,167
|
|
1.4%
|
|
|
Income (loss) before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax
provision
|
|
(1,187)
|
|
(2,987)
|
|
60.3%
|
|
1,775
|
|
(15,532)
|
|
111.4%
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
(benefit)
|
|
(476)
|
|
(1,188)
|
|
59.9%
|
|
588
|
|
(6,074)
|
|
109.7%
|
|
|
Net income (loss)
|
|
$
(711)
|
|
$
(1,799)
|
|
60.5%
|
|
$
1,187
|
|
$
(9,458)
|
|
112.6%
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
Basic
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
|
$
0.23
|
|
n/a
|
|
n/a
|
|
|
Diluted
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
|
$
0.23
|
|
n/a
|
|
n/a
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
5,104,019
|
|
-
|
|
|
|
5,104,019
|
|
-
|
|
|
|
|
Diluted
|
|
5,104,019
|
|
-
|
|
|
|
5,104,019
|
|
-
|
|
|
|
|
|
|
|
(1) Weighted average shares
outstanding used in the calculation of basic and diluted earnings
per share were
|
|
|
calculated
from October 12, 2011, the date on which the Company’s stock began
trading, through
|
|
|
December 30,
2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balances and
Yields/Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
(dollars in
thousands)
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with
banks
|
|
$
64,849
|
|
0.25%
|
|
$
21,066
|
|
0.26%
|
|
|
Loans receivable
|
|
449,036
|
|
4.80%
|
|
527,481
|
|
4.86%
|
|
|
Investment securities
|
|
70,452
|
|
2.44%
|
|
55,537
|
|
2.61%
|
|
|
Mortgage-backed and similar
securities
|
|
168,030
|
|
2.06%
|
|
118,669
|
|
2.52%
|
|
|
Other interest-earning
assets
|
|
3,883
|
|
1.33%
|
|
3,970
|
|
0.40%
|
|
|
Total interest-earning
assets
|
|
756,250
|
|
3.56%
|
|
726,723
|
|
4.15%
|
|
|
Interest-bearing
deposits
|
|
552,558
|
|
1.01%
|
|
580,270
|
|
1.35%
|
|
|
Overnight and short-term
borrowings
|
|
367
|
|
0.00%
|
|
811
|
|
0.49%
|
|
|
Federal Home Loan Bank
advances
|
|
60,971
|
|
3.96%
|
|
60,000
|
|
4.03%
|
|
|
Total interest-bearing
liabilities
|
|
613,896
|
|
1.30%
|
|
641,081
|
|
1.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
|
|
|
|
2.26%
|
|
|
|
2.55%
|
|
|
Net interest margin
|
|
|
|
2.51%
|
|
|
|
2.74%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
(dollars in
thousands)
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with
banks
|
|
$
33,089
|
|
0.26%
|
|
$
21,997
|
|
0.27%
|
|
|
Loans receivable
|
|
471,260
|
|
4.97%
|
|
563,013
|
|
5.07%
|
|
|
Investment securities
|
|
70,327
|
|
2.53%
|
|
50,872
|
|
3.13%
|
|
|
Mortgage-backed and similar
securities
|
|
145,806
|
|
2.41%
|
|
87,474
|
|
3.06%
|
|
|
Other interest-earning
assets
|
|
3,927
|
|
1.02%
|
|
3,982
|
|
0.38%
|
|
|
Total interest-earning
assets
|
|
724,409
|
|
3.98%
|
|
727,338
|
|
4.52%
|
|
|
Interest-bearing
deposits
|
|
565,268
|
|
1.10%
|
|
577,648
|
|
1.56%
|
|
|
Overnight and short-term
borrowings
|
|
1,049
|
|
0.29%
|
|
1,189
|
|
0.25%
|
|
|
Federal Home Loan Bank
advances
|
|
60,245
|
|
4.01%
|
|
60,000
|
|
4.03%
|
|
|
Total interest-bearing
liabilities
|
|
626,562
|
|
1.38%
|
|
638,837
|
|
1.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
|
|
|
|
2.60%
|
|
|
|
2.73%
|
|
|
Net interest margin
|
|
|
|
2.79%
|
|
|
|
2.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset Quality
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
Allowance for Loan
Losses
|
|
December
31,
|
|
December
31,
|
|
|
(in thousands)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses,
beginning of period
|
|
$
10,873
|
|
$
16,883
|
|
$
12,676
|
|
$
8,994
|
|
|
Provision for loan
losses
|
|
1,974
|
|
4,110
|
|
3,785
|
|
22,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
(2,316)
|
|
(8,339)
|
|
(6,134)
|
|
(18,864)
|
|
|
Recoveries
|
|
96
|
|
22
|
|
300
|
|
127
|
|
|
Net charge-offs
|
|
(2,220)
|
|
(8,317)
|
|
(5,834)
|
|
(18,737)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses, end
of period
|
|
$
10,627
|
|
$
12,676
|
|
$
10,627
|
|
$
12,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percent of:
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
2.45%
|
|
2.54%
|
|
2.45%
|
|
2.54%
|
|
|
Total nonperforming
loans
|
|
51.53%
|
|
94.43%
|
|
51.53%
|
|
94.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets
|
|
December
31,
|
|
|
|
|
(dollars in
thousands)
|
|
2011
|
|
2010
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans:
|
|
|
|
|
|
|
|
|
Nonaccruing Loans (1)
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
$
833
|
|
$
3,810
|
|
-78.1%
|
|
|
Commercial construction
and land development
|
|
14,695
|
|
5,205
|
|
182.3%
|
|
|
Commercial and
industrial
|
|
2,595
|
|
377
|
|
588.3%
|
|
|
Total
commercial
|
|
18,123
|
|
9,392
|
|
93.0%
|
|
|
Non-commercial:
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
1,922
|
|
3,194
|
|
-39.8%
|
|
|
Non-commercial
construction and land development
|
|
110
|
|
553
|
|
-80.1%
|
|
|
Revolving
mortgage
|
|
440
|
|
191
|
|
130.4%
|
|
|
Consumer
|
|
27
|
|
94
|
|
-71.3%
|
|
|
Total
non-commercial
|
|
2,499
|
|
4,032
|
|
-38.0%
|
|
|
Total nonaccruing loans
(1)
|
|
20,622
|
|
13,424
|
|
53.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due 90 or more
days
|
|
|
|
|
|
|
|
|
and still
accruing
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
20,622
|
|
13,424
|
|
53.6%
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
8,125
|
|
10,650
|
|
-23.7%
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
28,747
|
|
24,074
|
|
19.4%
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled debt
restructurings (2)
|
|
1,142
|
|
15,233
|
|
-92.5%
|
|
|
Performing troubled debt
restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming
assets
|
|
$
29,889
|
|
$
39,307
|
|
-24.0%
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percent
of total loans
|
|
4.76%
|
|
2.68%
|
|
|
|
|
Nonperforming assets as a
percent of total assets
|
|
3.63%
|
|
3.21%
|
|
|
|
|
Performing troubled debt
restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets
to total assets
|
|
3.78%
|
|
5.24%
|
|
|
|
|
|
|
|
(1) Nonaccruing loans include
nonaccruing troubled debt restructurings.
|
|
|
(2) Performing troubled debt
restructurings exclude nonaccruing troubled debt
restructurings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
|
$
10,650
|
|
$
3,699
|
|
|
|
|
Transfers from loans
|
|
|
|
3,533
|
|
12,585
|
|
|
|
|
Capitalized cost
|
|
|
|
41
|
|
72
|
|
|
|
|
Loss provisions
|
|
|
|
(1,574)
|
|
(1,780)
|
|
|
|
|
Proceeds from sales of
properties,
|
|
|
|
|
|
|
|
|
|
|
net of gains and
losses
|
|
|
|
(4,525)
|
|
(3,788)
|
|
|
|
|
Sales of properties funded by
loans
|
|
|
|
-
|
|
(138)
|
|
|
|
|
Ending balance
|
|
|
|
$
8,125
|
|
$
10,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate by Loan
Type
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
|
(dollars in
thousands)
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage
|
|
3
|
|
$
3,045
|
|
3
|
|
$
4,135
|
|
|
Commercial construction and land
development
|
|
2
|
|
1,683
|
|
2
|
|
1,967
|
|
|
Residential mortgage
|
|
10
|
|
1,660
|
|
9
|
|
1,711
|
|
|
Residential construction and
land development
|
|
3
|
|
1,737
|
|
5
|
|
2,837
|
|
|
Total
|
|
18
|
|
$
8,125
|
|
19
|
|
$
10,650
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(1)
|
|
-0.35%
|
|
-0.94%
|
|
0.15%
|
|
-1.25%
|
|
|
Return on average equity
(1)
|
|
-2.14%
|
|
-10.68%
|
|
1.44%
|
|
-13.01%
|
|
|
Interest rate spread
(1)(2)
|
|
2.26%
|
|
2.55%
|
|
2.60%
|
|
2.73%
|
|
|
Net interest margin
(1)(3)
|
|
2.51%
|
|
2.74%
|
|
2.79%
|
|
2.94%
|
|
|
Efficiency ratio (4)
|
|
88.50%
|
|
83.41%
|
|
79.90%
|
|
76.18%
|
|
|
|
|
|
(1) Ratios are
annualized.
|
|
|
(2) Represents the difference
between the weighted average yield on average interest-earning
assets and the
|
|
|
weighted average
cost on average interest-bearing liabilities. Tax exempt income is
reported on a tax
|
|
|
equivalent basis
using a federal marginal tax rate of 34%.
|
|
|
(3) Represents net interest
income as a percent of average interest-earning assets. Tax exempt
income is
|
|
|
reported on a tax
equivalent basis using a federal marginal tax rate of
34%.
|
|
|
(4) Represents noninterest
expenses divided by the sum of net interest income, on a tax
equivalent basis
|
|
|
using a federal
marginal tax rate of 34%, and noninterest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Data
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
|
|
(dollars in
thousands,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
except per share
data)
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$
6,760
|
|
$
7,090
|
|
$
7,502
|
|
$
7,382
|
|
$
7,592
|
|
|
Interest expense
|
|
2,013
|
|
2,120
|
|
2,205
|
|
2,304
|
|
2,582
|
|
|
Net interest income
|
|
4,747
|
|
4,970
|
|
5,297
|
|
5,078
|
|
5,010
|
|
|
Provision for loan
losses
|
|
1,974
|
|
730
|
|
424
|
|
657
|
|
4,110
|
|
|
Net interest income
after
|
|
|
|
|
|
|
|
|
|
|
|
|
provision for loan
losses
|
|
2,773
|
|
4,240
|
|
4,873
|
|
4,421
|
|
900
|
|
|
Noninterest income
|
|
2,337
|
|
2,004
|
|
1,928
|
|
1,680
|
|
1,826
|
|
|
Noninterest expense
|
|
6,297
|
|
5,322
|
|
5,630
|
|
5,232
|
|
5,713
|
|
|
Income (loss) before
income
|
|
|
|
|
|
|
|
|
|
|
|
|
tax provision
|
|
(1,187)
|
|
922
|
|
1,171
|
|
869
|
|
(2,987)
|
|
|
Income tax provision
(benefit)
|
|
(476)
|
|
351
|
|
429
|
|
284
|
|
(1,188)
|
|
|
Net income (loss)
|
|
$
(711)
|
|
$
571
|
|
$
742
|
|
$
585
|
|
$
(1,799)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share –
Basic
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
Net income (loss) per share –
Diluted
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
Book value per share
|
|
$
20.69
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
Average shares outstanding
basic
|
|
5,104,019
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
Average shares outstanding
diluted
|
|
5,104,019
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
Ending shares
outstanding
|
|
5,584,551
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
(dollars in
thousands)
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2010*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
790,868
|
|
$
798,748
|
|
$
755,143
|
|
$
750,709
|
|
$
749,965
|
|
|
Cash and cash
equivalents
|
|
72,327
|
|
75,402
|
|
25,825
|
|
26,436
|
|
24,234
|
|
|
Investment securities
|
|
249,081
|
|
235,285
|
|
225,802
|
|
204,316
|
|
181,393
|
|
|
Loans receivable, net of
deferred fees
|
|
432,883
|
|
450,263
|
|
467,599
|
|
484,729
|
|
500,003
|
|
|
Allowance for loan
losses
|
|
(10,627)
|
|
(10,873)
|
|
(12,353)
|
|
(12,632)
|
|
(12,676)
|
|
|
Deposits
|
|
608,236
|
|
615,555
|
|
616,463
|
|
616,586
|
|
619,757
|
|
|
Escrowed stock order
funds
|
|
-
|
|
49,063
|
|
-
|
|
-
|
|
-
|
|
|
FHLB advances
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
|
Total equity
|
|
115,571
|
|
67,681
|
|
65,547
|
|
63,295
|
|
62,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
|
$
20,622
|
|
$
11,565
|
|
$
11,070
|
|
$
14,190
|
|
$
13,424
|
|
|
Nonperforming assets
|
|
28,747
|
|
22,262
|
|
20,588
|
|
24,696
|
|
24,074
|
|
|
Nonperforming loans to total
loans
|
|
4.76%
|
|
2.57%
|
|
2.37%
|
|
2.93%
|
|
2.68%
|
|
|
Nonperforming assets to total
assets
|
|
3.63%
|
|
2.79%
|
|
2.73%
|
|
3.29%
|
|
3.21%
|
|
|
Allowance for loan
losses
|
|
$
10,627
|
|
$
10,873
|
|
$
12,353
|
|
$
12,632
|
|
$
12,676
|
|
|
Allowance for loan losses to
total loans
|
|
2.45%
|
|
2.41%
|
|
2.64%
|
|
2.61%
|
|
2.54%
|
|
|
Allowance for loan losses
to
|
|
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
51.53%
|
|
94.02%
|
|
111.59%
|
|
89.02%
|
|
94.43%
|
|
|
|
|
|
* Ending balance sheet data as
of December 31, 2010 were derived from audited consolidated
financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE ASB Bancorp, Inc.