ASHEVILLE,
N.C., July 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 second
quarter and year-to-date period ended June
30, 2012. The Company reported a net loss of $114,000 for the quarter ended June 30, 2012 compared to net income of
$742,000 for the same quarter of
2011. Earnings were $170,000 for the
six months ended June 30, 2012
compared to $1.3 million for the same
period of 2011. On a basic and diluted per share basis, the Company
had a net loss of $0.02 per share and
net income of $0.03 per share for the
three and six month periods ended June 30,
2012, respectively, while it had no shares outstanding
during the three and six month periods ended June 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20111031/CL96775LOGO)
"A decline in collateral valuations related to impaired loans
resulted in a large loan loss provision expense for
the quarter which, in turn, resulted in the net loss," said
Suzanne S. DeFerie, President and
Chief Executive Officer. "While we are disappointed
with this loss, we remain diligent in the prudent valuation of
our problem asset portfolio even as price volatility
in our local real estate market continues to result in lower
appraised values." Ms. DeFerie added, "Growth in quality
loans and a consistent improvement in the performance
of our existing loans remain our areas of emphasis over the next
several quarters."
Balance Sheet Review
Assets. Total assets increased $7.8 million, or 1.0%, to $798.7 million at June 30,
2012 from $790.9
million at December 31,
2011. Cash and cash equivalents increased $1.1 million, or 1.6%, to $73.5 million at June 30, 2012 from
$72.3 million at December 31, 2011. Investment securities
increased $35.6 million, or
14.3%, to $284.7 million at
June 30, 2012 from $249.1 million at December
31, 2011, primarily due to the reinvestment
into investment securities of proceeds from loan repayments and
prepayments. Loans receivable, net of
deferred fees, decreased $23.7
million, or 5.5%, to $409.1
million at June 30, 2012
from $432.9 million at
December 31, 2011 as loan repayments,
prepayments, and foreclosures exceeded new loan
originations.
Liabilities. Total deposits decreased
$2.2 million, or 0.4%, to
$606.0 million at June 30, 2012 from $608.2 million at
December 31, 2011. During the six
months ended June 30, 2012, the
Company continued its focus on core deposits, from
which it excludes certificates of deposit. Core deposits increased
$25.8 million, or
7.4%, to $375.5 million at
June 30, 2012 from $349.7 million at December
31, 2011. Over the same period, certificates of
deposit decreased $28.0 million, or
10.8%, to $230.5 million at
June 30, 2012 compared
to $258.5 million at December 31, 2011. Accounts payable and other
liabilities increased $9.8 million, or 154.7%, to
$16.1 million at June 30, 2012 from $6.3
million at December 31, 2011
primarily due to a $8.7
million increase in amounts due for the purchase of
investment securities in the process of
settlement.
Asset Quality
Provision for Loan Losses. The provision for
loan losses was $1.3 million for the
three months ended June 30,
2012 compared to $424,000 for
the three months ended June 30, 2011.
The increase in the provision was due to an
increase in the specific reserves for collateral dependent impaired
loans that resulted from a decline in the value of the
real estate collateral securing the impaired loans and an increase
in the loss factors used to estimate the general
allowance for loan losses, which were partially offset by
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
$11.6 million, or 2.83% of total
loans, at June 30, 2012 compared
to $10.6 million, or
2.45% of total loans, at December 31,
2011. We charged off $382,000
in loans during the three months ended June 30, 2012 compared to $781,000 during the three months ended
June 30, 2011.
The provision for loan losses was $1.9 million for the six months ended
June 30, 2012 compared to $1.1
million for the six months ended June
30, 2011. As was the case for the quarterly periods, the
increase in the provision was due to an increase in
the specific reserves for collateral dependent impaired loans
that resulted from a decline in the value of the real
estate collateral securing the impaired loans and an increase
in the loss factors used to estimate the general
allowance for loan losses, which were partially offset by
the combination of fewer charge-offs in the loan
portfolio and lower loan balances. We charged off $1.1
million in loans during the first six months of 2012 compared
to $1.6 million during the first six
months of 2011.
Nonperforming assets. Nonperforming assets
totaled $26.8 million, or 3.36% of
total assets, at June 30, 2012, compared to
$28.7 million, or 3.63% of total
assets, at December 31, 2011.
Nonperforming assets included $18.2 million in nonperforming loans and
$8.6 million in foreclosed real
estate at June 30, 2012,
compared to $20.6 million and
$8.1 million, respectively, at
December 31, 2011.
Nonperforming loans decreased $2.4
million, or 11.6%, to $18.2
million at June 30, 2012 from
$20.6 million at
December 31, 2011. The decrease in
nonperforming loans from December 31,
2011 to June 30,
2012 was primarily attributable to loans totaling
$2.4 million moving to foreclosed
real estate and loan payoffs, which were
partially offset by the addition of new loans that stopped
performing during the period. At June 30, 2012,
nonperforming loans included four commercial land development loans
that totaled $15.1 million,
two commercial mortgages that totaled $1.7 million, three commercial and industrial
loans that totaled $490,000, eight residential mortgages that
totaled $514,000, and three home
equity loans that totaled $399,000. As of June 30,
2012, the nonperforming loans had specific reserves of
$2.2 million.
As of June 30, 2012, the
Bank's largest nonperforming loan relationship was comprised of one
primary loan for the construction of a mixed-use
retail, commercial office, and residential condominium project
located in western North
Carolina and one debtor in possession loan that the Bank
purchased in the second quarter of 2012 in order to
secure its senior lien position. The loans totaled $11.0 million as of June
30, 2012 and were considered impaired and
nonaccruing. The Bank established a $948,000 specific reserve in the second
quarter of 2012 based on an updated appraisal. The Bank plans
to proceed with foreclosure. The project has eight
retail condominiums of which four have been leased, 11 commercial
office condominiums of which three have sold, and 29
residential condominiums of which one has sold.
Foreclosed real estate at June 30,
2012 included 20 properties with a total carrying value of
$8.6
million compared to 18 properties with a total
carrying value of $8.1 million as of
December 31, 2011. During the
six months ended June 30, 2012,
in addition to an increase of $369,000 to the loss provision, there were
eight new properties totaling $2.4
million added to foreclosed real estate, while six
properties totaling $1.5 million were sold.
Income Statement Analysis
Net Interest Income. Net interest income
decreased by $680,000, or 12.7%, to
$4.7 million for the three
months ended June 30, 2012 as
compared to $5.3 million for the
three months ended June 30,
2011. Total interest and dividend income
decreased by $1.1 million, or 15.1%,
to $6.4 million for the three
months ended June 30,
2012 as compared to $7.5
million for the three months ended June 30, 2011, primarily as a result
of an 84 basis point decrease in yields on interest-earning assets
and a $59.2 million decrease
in average loans that partially offset a $105.6 million increase in the average balances
of investments and other interest-earning assets. The
decline in total interest and dividend income was partially offset
by a $462,000, or 21.0%,
decrease in interest expense to $1.7
million for the three months ended June 30, 2012 compared to
$2.2 million for the three months
ended June 30, 2011. The decrease in
interest expense resulted from a 24 basis point
reduction in the average rate paid on interest-bearing liabilities
and a decline of $26.1 million
in the average balances of interest-bearing
liabilities during the three month periods.
Net interest income decreased by $1.2 million, or 11.2%, to $9.3 million for the six months ended June
30, 2012 as compared to $10.4
million for the six months ended June
30, 2011. Total interest and dividend income
decreased by $2.0 million, or 13.5%,
to $12.9 million for the six months
ended June 30, 2012 as
compared to $15.0 million for
the six months ended June 30, 2011,
primarily as a result of an 82 basis point decrease in
yields on interest-earning assets and a $62.4 million decrease in average loans that
partially offset a $113.1
million increase in the average balances of investments and
other interest-earning assets. The decline in total
interest and dividend income was partially offset by a $847,000, or 18.8%, decrease in
interest expense to $3.7
million for the six months ended June
30, 2012 compared to $4.5
million for the six months ended June 30, 2011. The decrease in interest expense
resulted from a 23 basis point reduction in the
average rate paid on interest-bearing liabilities and a decline of
$22.5 million in the average balances
of interest-bearing liabilities during the six month
periods.
Noninterest Income. Noninterest income
increased $109,000, or 5.8%, to
$2.0 million for the three
months ended June 30, 2012 from
$1.9 million for the three months
ended June 30, 2011. Factors
that contributed to the increase in noninterest income
during the 2012 period were increases of $105,000 in gains from the sale of
investment securities and $292,000 in
mortgage banking income, which were partially offset
by decreases of $127,000 in fees from
deposits and other services, $106,000
in loan fees, and $70,000 in other investment income. The decrease
in deposit and other service charge income was
primarily the result of lower deposit overdraft fees.
Noninterest income increased $420,000 to $4.0
million for the six months ended June
30, 2012 from $3.5 million for the six months
ended June 30, 2011. Factors that
contributed to the increase in noninterest income
during the 2012 period were increases of $607,000 in gains from the sale of investment
securities and $252,000
in mortgage banking income, which were partially offset by
decreases of $226,000 in fees
from deposits and other services, $100,000 in loan fees, and $96,000 in other investment income. The
decrease in deposit and other service charge income was
primarily the result of lower deposit overdraft fees.
Noninterest Expense. Noninterest expenses
decreased $42,000 for the three
months ended June 30, 2012
as compared to the three months ended June 30, 2011. The primary factors affecting the
decrease were decreases of $185,000 in foreclosed property expenses,
$94,000 in advertising expenses,
$90,000 in FDIC
insurance premiums, and $48,000
in occupancy expenses, which were partially offset by increases
of $209,000 in salaries
and benefits, $30,000 in professional
services, and $129,000 in other
noninterest expenses. The increase in salaries and
benefits was primarily due to $104,000 in expenses related to the
Bank's new employee stock ownership plan, and increases of
$65,000 in payroll taxes and other
benefit plan expenses, and $40,000 in compensation expenses for the three
months ended June 30, 2012 as
compared to the three months ended June 30, 2011. The increase in other noninterest
expenses was primarily attributable to increased
expenses related to holding company and public company compliance
and reporting.
Noninterest expenses increased $292,000 for the six months ended June 30, 2012 as compared to the six
months ended June 30, 2011. The
primary factors affecting the increase were increases of
$547,000 in salaries and
benefits, $196,000 in other
noninterest expenses, and $50,000 in
professional services, which were partially offset by
decreases of $214,000 in foreclosed
property expenses, $177,000 in
FDIC insurance premiums, $71,000 in advertising expense, and $58,000 in occupancy expense. The increase
in salaries and benefits was primarily due to a
$228,000 increase in compensation
expenses, $198,000 in
expenses related to the Bank's new employee stock ownership
plan, and an increase of $121,000 in
payroll taxes and other benefit plan expenses. The
increase in other noninterest expenses was primarily
attributable to increased expenses related to holding
company and public company compliance and reporting.
The Bank is a North
Carolina chartered stock 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 Reports 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
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(dollars in thousands)
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|
|
|
|
|
|
|
|
|
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|
|
|
June
30,
2012
|
|
December
31,
2011*
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total
assets
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|
|
|
|
|
|
|
|
|
$
798,667
|
|
$
790,868
|
|
1.0%
|
Cash and
cash equivalents
|
|
|
|
|
|
|
73,475
|
|
72,327
|
|
1.6%
|
Investment
securities
|
|
|
|
|
|
|
|
284,671
|
|
249,081
|
|
14.3%
|
Loans
receivable, net of deferred fees
|
|
|
|
|
|
409,140
|
|
432,883
|
|
-5.5%
|
Allowance
for loan losses
|
|
|
|
|
|
|
|
(11,563)
|
|
(10,627)
|
|
-8.8%
|
Deposits
|
|
|
|
|
|
|
|
|
|
606,022
|
|
608,236
|
|
-0.4%
|
FHLB
advances
|
|
|
|
|
|
|
|
60,000
|
|
60,000
|
|
0.0%
|
Accounts
payable and other liabilities
|
|
|
|
|
|
16,055
|
|
6,303
|
|
154.7%
|
Total
equity
|
|
|
|
|
|
|
|
|
|
116,079
|
|
115,571
|
|
0.4%
|
* Derived
from audited consolidated financial statements.
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Selected Operating Data
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|
(dollars in thousands,
except
shares outstanding
and per
share data)
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|
Three Months Ended
|
Six
Months Ended
|
June
30,
|
|
June
30,
|
2012
|
|
2011*
|
|
%
change
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|
2012
|
|
2011*
|
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%
change
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Interest
and
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|
dividend income
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|
$
6,398
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|
$
7,540
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|
-15.1%
|
|
$
12,937
|
|
$
14,955
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|
-13.5%
|
Interest
expense
|
|
1,743
|
|
2,205
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|
-21.0%
|
|
3,662
|
|
4,509
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|
-18.8%
|
Net
interest income
|
|
4,655
|
|
5,335
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|
-12.7%
|
|
9,275
|
|
10,446
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|
-11.2%
|
Provision
for loan losses
|
|
1,293
|
|
424
|
|
205.0%
|
|
1,891
|
|
1,081
|
|
74.9%
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
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|
|
after provision for
|
|
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|
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|
|
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|
|
loan losses
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|
|
3,362
|
|
4,911
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|
-31.5%
|
|
7,384
|
|
9,365
|
|
-21.2%
|
Noninterest income
|
|
1,999
|
|
1,890
|
|
5.8%
|
|
3,957
|
|
3,537
|
|
11.9%
|
Noninterest expense
|
|
5,588
|
|
5,630
|
|
-0.7%
|
|
11,154
|
|
10,862
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|
2.7%
|
Income
(loss) before
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|
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income tax
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provision (benefit)
|
|
(227)
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|
1,171
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|
-119.4%
|
|
187
|
|
2,040
|
|
-90.8%
|
Income
tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision (benefit)
|
|
(113)
|
|
429
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|
-126.3%
|
|
17
|
|
713
|
|
-97.6%
|
Net income
(loss)
|
|
$
(114)
|
|
$
742
|
|
-115.4%
|
|
$
170
|
|
$
1,327
|
|
-87.2%
|
|
|
|
|
|
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|
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|
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Net income
(loss) per
|
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common share:
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Basic
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$
(0.02)
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n/a
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|
n/a
|
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$
0.03
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n/a
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n/a
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Diluted
|
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|
|
$
(0.02)
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|
n/a
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|
n/a
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|
$
0.03
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|
n/a
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|
n/a
|
Average
shares outstanding:
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Basic
|
|
|
|
5,156,843
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|
n/a
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|
n/a
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|
5,152,941
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|
n/a
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|
n/a
|
Diluted
|
|
|
|
5,156,843
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|
n/a
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|
n/a
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|
5,152,941
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|
n/a
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|
n/a
|
* Certain amounts for prior periods were
reclassified to conform to the June 30, 2012
presentation.
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Selected Average Balances and
Yields/Costs
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For the
Three Months Ended June 30,
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2012
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2011
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Average
|
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Yield/
|
|
Average
|
|
Yield/
|
(dollars in thousands)
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|
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|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks
|
|
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|
$
62,491
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|
0.36%
|
|
$
18,662
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|
0.26%
|
Loans
receivable
|
|
|
|
|
|
420,084
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|
4.70%
|
|
479,309
|
|
5.13%
|
Investment
securities
|
|
|
|
|
|
68,807
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|
2.08%
|
|
74,023
|
|
2.61%
|
Mortgage-backed and similar securities
|
|
|
|
204,079
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|
2.17%
|
|
137,029
|
|
2.71%
|
Other
interest-earning assets
|
|
|
|
3,881
|
|
1.55%
|
|
3,944
|
|
0.92%
|
Interest-bearing deposits
|
|
|
|
|
|
547,247
|
|
0.84%
|
|
572,881
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|
1.12%
|
Overnight
and short-term borrowings
|
|
|
|
799
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|
1.01%
|
|
1,305
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|
0.61%
|
Federal
Home Loan Bank advances
|
|
|
|
60,000
|
|
4.04%
|
|
60,000
|
|
4.02%
|
|
|
|
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|
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|
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|
Interest
rate spread
|
|
|
|
|
|
|
|
2.26%
|
|
|
|
2.86%
|
Net
interest margin
|
|
|
|
|
|
|
|
2.49%
|
|
|
|
3.01%
|
|
|
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|
|
|
|
|
|
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|
|
For the
Six Months Ended June 30,
|
|
|
|
|
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|
|
2012
|
|
2011
|
|
|
|
|
|
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|
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Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in thousands)
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks
|
|
|
|
$
65,192
|
|
0.34%
|
|
$
18,571
|
|
0.25%
|
Loans
receivable
|
|
|
|
|
|
425,643
|
|
4.73%
|
|
488,081
|
|
5.11%
|
Investment
securities
|
|
|
|
|
|
65,768
|
|
2.19%
|
|
67,726
|
|
2.65%
|
Mortgage-backed and similar securities
|
|
|
|
198,767
|
|
2.17%
|
|
130,271
|
|
2.65%
|
Other
interest-earning assets
|
|
|
|
3,877
|
|
1.61%
|
|
3,957
|
|
0.87%
|
Interest-bearing deposits
|
|
|
|
|
|
548,968
|
|
0.90%
|
|
570,741
|
|
1.17%
|
Overnight
and short-term borrowings
|
|
|
|
789
|
|
0.25%
|
|
1,519
|
|
0.53%
|
Federal
Home Loan Bank advances
|
|
|
|
60,000
|
|
4.04%
|
|
60,000
|
|
4.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread
|
|
|
|
|
|
|
|
2.24%
|
|
|
|
2.83%
|
Net
interest margin
|
|
|
|
|
|
|
|
2.48%
|
|
|
|
2.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset Quality Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six
Months Ended
|
Allowance for Loan Losses
|
|
|
|
June
30,
|
|
June
30,
|
(dollars in thousands)
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, beginning of period
|
|
$
10,562
|
|
$
12,632
|
|
$
10,627
|
|
$
12,676
|
Provision
for loan losses
|
|
|
|
|
|
1,293
|
|
424
|
|
1,891
|
|
1,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
|
(382)
|
|
(781)
|
|
(1,098)
|
|
(1,585)
|
Recoveries
|
|
|
|
|
|
|
|
90
|
|
78
|
|
143
|
|
181
|
Net
charge-offs
|
|
|
|
|
|
(292)
|
|
(703)
|
|
(955)
|
|
(1,404)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, end of period
|
|
|
$
11,563
|
|
$
12,353
|
|
$
11,563
|
|
$
12,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percent of:
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
|
|
|
2.83%
|
|
2.64%
|
|
2.83%
|
|
2.64%
|
Total nonperforming loans
|
|
|
|
63.42%
|
|
87.05%
|
|
63.42%
|
|
87.05%
|
Nonperforming Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
June
30,
2012
|
|
December
31,
2011
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing Loans (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial construction and land development
|
|
|
|
$
15,087
|
|
$
14,695
|
|
2.7%
|
Commercial mortgage
|
|
|
|
|
|
|
|
1,711
|
|
833
|
|
105.4%
|
Commercial and industrial
|
|
|
|
|
|
490
|
|
2,595
|
|
-81.1%
|
Total commercial
|
|
|
|
|
|
|
|
17,288
|
|
18,123
|
|
-4.6%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-commercial construction and land development
|
|
|
-
|
|
110
|
|
-100.0%
|
Residential mortgage
|
|
|
|
|
|
|
|
514
|
|
1,922
|
|
-73.3%
|
Revolving mortgage
|
|
|
|
|
|
|
|
399
|
|
440
|
|
-9.3%
|
Consumer
|
|
|
|
|
|
|
|
|
|
31
|
|
27
|
|
14.8%
|
Total non-commercial
|
|
|
|
|
|
|
|
944
|
|
2,499
|
|
-62.2%
|
Total
nonaccruing loans (1)
|
|
|
|
|
|
18,232
|
|
20,622
|
|
-11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans past due 90 or more days
|
|
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans
|
|
|
|
|
|
|
18,232
|
|
20,622
|
|
-11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed
real estate
|
|
|
|
|
|
|
|
8,615
|
|
8,125
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming assets
|
|
|
|
|
|
26,847
|
|
28,747
|
|
-6.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
troubled debt restructurings (2)
|
|
|
|
5,191
|
|
1,142
|
|
354.6%
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets
|
|
|
|
|
|
$
32,038
|
|
$
29,889
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percent of total
loans
|
|
|
|
4.46%
|
|
4.76%
|
|
|
Nonperforming assets as a percent of total
assets
|
|
|
|
3.36%
|
|
3.63%
|
|
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets to total assets
|
|
|
|
4.01%
|
|
3.78%
|
|
|
(1)
Nonaccruing loans include nonaccruing troubled debt
restructurings.
|
|
|
|
|
(2)
Performing troubled debt restructurings exclude nonaccruing
troubled debt restructurings.
|
|
|
Foreclosed Real Estate by Loan Type
|
|
|
June
30, 2012
|
|
December 31, 2011
|
(dollars in thousands)
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
foreclosed loan type:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
|
|
|
|
2
|
|
$
2,730
|
|
3
|
|
$
3,045
|
Commercial
construction and land development
|
|
9
|
|
4,174
|
|
5
|
|
3,259
|
Residential mortgage
|
|
|
|
|
|
6
|
|
1,231
|
|
7
|
|
1,373
|
Residential construction and land
development
|
|
3
|
|
480
|
|
3
|
|
448
|
Total
|
|
|
|
|
|
|
|
20
|
|
$
8,615
|
|
18
|
|
$
8,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
June
30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
|
|
|
$
8,125
|
|
|
|
|
Transfers
from loans
|
|
|
|
|
|
|
|
2,368
|
|
|
|
|
Loss
provisions
|
|
|
|
|
|
|
|
(369)
|
|
|
|
|
Loss on
sale of foreclosed properties
|
|
|
|
|
|
(28)
|
|
|
|
|
Net
proceeds from sales of foreclosed properties
|
|
|
|
(1,481)
|
|
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
$
8,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
|
|
|
-0.06%
|
|
0.40%
|
|
0.04%
|
|
0.36%
|
Return on
average equity (1)
|
|
|
|
-0.39%
|
|
4.56%
|
|
0.29%
|
|
4.15%
|
Interest
rate spread (1)(2)
|
|
|
|
|
2.26%
|
|
2.86%
|
|
2.24%
|
|
2.83%
|
Net
interest margin (1)(3)
|
|
|
|
|
2.49%
|
|
3.01%
|
|
2.48%
|
|
2.98%
|
Noninterest expense to average assets (1)
|
|
2.84%
|
|
3.01%
|
|
2.83%
|
|
2.93%
|
Efficiency
ratio (4)
|
|
|
|
|
|
83.48%
|
|
77.69%
|
|
83.81%
|
|
77.45%
|
(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, except
shares
|
|
June
30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June
30,
|
outstanding and per share data)
|
|
2012
|
|
2012*
|
|
2011*
|
|
2011*
|
|
2011*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
$
6,398
|
|
$
6,539
|
|
$
6,783
|
|
$
7,112
|
|
$
7,540
|
Interest
expense
|
|
|
|
1,743
|
|
1,919
|
|
2,013
|
|
2,120
|
|
2,205
|
Net
interest income
|
|
|
|
4,655
|
|
4,620
|
|
4,770
|
|
4,992
|
|
5,335
|
Provision
for loan losses
|
|
|
|
1,293
|
|
598
|
|
1,974
|
|
730
|
|
424
|
Net
interest income after
|
|
|
|
|
|
|
|
|
|
|
|
|
provision for loan losses
|
|
|
3,362
|
|
4,022
|
|
2,796
|
|
4,262
|
|
4,911
|
Noninterest income
|
|
|
|
1,999
|
|
1,958
|
|
1,896
|
|
1,973
|
|
1,890
|
Noninterest expense
|
|
|
|
5,588
|
|
5,566
|
|
5,879
|
|
5,313
|
|
5,630
|
Income
(loss) before income
|
|
|
|
|
|
|
|
|
|
|
tax
provision (benefit)
|
|
|
|
(227)
|
|
414
|
|
(1,187)
|
|
922
|
|
1,171
|
Income tax
provision (benefit)
|
|
(113)
|
|
130
|
|
(476)
|
|
351
|
|
429
|
Net income
(loss)
|
|
|
|
$
(114)
|
|
$
284
|
|
$
(711)
|
|
$
571
|
|
$
742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share – Basic
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
Net income
(loss) per share – Diluted
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
|
n/a
|
|
n/a
|
Book value
per share
|
|
|
|
$
20.79
|
|
$
20.66
|
|
$
20.69
|
|
n/a
|
|
n/a
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
5,156,843
|
|
5,149,039
|
|
5,141,462
|
|
n/a
|
|
n/a
|
Diluted
|
|
|
|
|
|
5,156,843
|
|
5,149,039
|
|
5,141,462
|
|
n/a
|
|
n/a
|
Ending
shares outstanding
|
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
n/a
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
June
30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June
30,
|
(dollars in thousands)
|
|
|
2012
|
|
2012
|
|
2011**
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
$
798,667
|
|
$
796,901
|
|
$
790,868
|
|
$
798,748
|
|
$
755,143
|
Cash and
cash equivalents
|
|
|
73,475
|
|
80,087
|
|
72,327
|
|
75,402
|
|
25,825
|
Investment
securities
|
|
|
|
284,671
|
|
264,782
|
|
249,081
|
|
235,285
|
|
225,802
|
Loans
receivable, net of deferred fees
|
|
409,140
|
|
416,307
|
|
432,883
|
|
450,263
|
|
467,599
|
Allowance
for loan losses
|
|
|
|
(11,563)
|
|
(10,562)
|
|
(10,627)
|
|
(10,873)
|
|
(12,353)
|
Deposits
|
|
|
|
|
|
606,022
|
|
610,242
|
|
608,236
|
|
615,555
|
|
616,463
|
Escrowed
stock order funds
|
|
-
|
|
-
|
|
-
|
|
49,063
|
|
-
|
FHLB
advances
|
|
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
Total
equity
|
|
|
|
|
|
116,079
|
|
115,360
|
|
115,571
|
|
67,681
|
|
65,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
|
|
|
$
18,232
|
|
$
18,063
|
|
$
20,622
|
|
$
11,565
|
|
$
11,070
|
Nonperforming assets
|
|
|
|
26,847
|
|
27,198
|
|
28,747
|
|
22,262
|
|
20,588
|
Nonperforming loans to total loans
|
|
4.46%
|
|
4.34%
|
|
4.76%
|
|
2.57%
|
|
2.37%
|
Nonperforming assets to total assets
|
|
3.36%
|
|
3.41%
|
|
3.63%
|
|
2.79%
|
|
2.73%
|
Allowance
for loan losses
|
|
|
|
$
11,563
|
|
$
10,562
|
|
$
10,627
|
|
$
10,873
|
|
$
12,353
|
Allowance
for loan losses to total loans
|
|
2.83%
|
|
2.54%
|
|
2.45%
|
|
2.41%
|
|
2.64%
|
Allowance
for loan losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans
|
|
|
|
63.42%
|
|
58.47%
|
|
51.53%
|
|
94.02%
|
|
111.59%
|
* Certain amounts for prior periods were
reclassified to conform to the June 30, 2012
presentation.
|
|
|
** Ending
balance sheet data as of December 31, 2011 were derived from
audited consolidated financial statements.
|
SOURCE ASB Bancorp, Inc.