ASB Bancorp, Inc. Reports Fourth Quarter Results
ASHEVILLE, N.C., Jan. 31, 2013 /PRNewswire/ -- ASB Bancorp,
Inc. (the "Company") (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the "Bank"), announced today its
unaudited preliminary operating results for the three months and
year ended December 31, 2012. The
Company reported net income of $235,000, or $0.05
per share, for the quarter ended December
31, 2012 compared to a net loss of $711,000, or $0.14
per share, for the same quarter of 2011. Net income totaled
$862,000, or $0.17 per share, for the year ended December 31, 2012 compared to net income of
$1.2 million, or $0.23 per share, for the year ended December 31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20111031/CL96775LOGO
)
"During the fourth quarter we continued our progress toward the
goal of improving balance sheet quality," said Suzanne S. DeFerie, President and Chief
Executive Officer. "The reductions of nonperforming loans to
a level of 0.30% of total loans and delinquent loans to a level of
0.82% of total loans represent our lowest levels since the
recession began and the 2.74% ratio of total nonperforming assets
to total assets also reflects substantial improvement in our asset
quality. In addition, the early repayment of $10.0 million in FHLB advances and the continued
aggressive management of the overall cost of funds should
contribute to an improvement in our net interest margin in future
periods."
Fourth Quarter Highlights
- Net income for the fourth quarter of 2012 was $235,000, or $0.05
per basic and diluted share.
- Nonperforming loans decreased $11.5
million, to $1.2 million at
December 31, 2012 from $12.7
million at September 30, 2012 as
foreclosure was completed on the collateral securing our largest
nonperforming loan. As a result, nonperforming loans were
0.30% of total loans at December
31, 2012.
- Delinquent loans totaled $3.2
million, or 0.82% of total loans, at December 31, 2012, representing a significant
decrease from $15.7 million, or 3.63%
of total loans, at December 31,
2011.
- While the allowance for loan losses declined to 2.20% of total
loans at December 31, 2012 from 2.45%
of total loans at December 31, 2011,
the allowance for loan losses was 739.6% of nonperforming loans at
December 31, 2012 compared to 51.5%
of nonperforming loans at December
31, 2011.
- Nonperforming assets decreased $3.7
million to $20.6 million, or
2.74% of total assets, at December 31, 2012 from $24.3 million, or 3.15% of total assets, at
September 30, 2012 and decreased
$8.1 million from $28.7 million, or 3.63% of total assets, at
December 31, 2011.
Nonperforming assets have improved in each quarter of 2012.
- Core deposits, or deposits excluding time deposits, increased
$9.9 million to $389.1 million at December
31, 2012 from $379.2 million
at September 30, 2012 and have
increased in each of the previous four quarters. Since
December 31, 2011,
noninterest-bearing deposits have increased $11.2 million, or 20.7%.
- Book value per share decreased $1.02 to $19.97
during the fourth quarter of 2012, primarily due to the
$3.6 million purchase of 223,382
shares to fulfill restricted stock awards under the 2012 Equity
Incentive Plan, which was intended to reduce the dilutive effects
of the restricted stock awards anticipated to be granted in the
first quarter of 2013. In addition, accumulated other comprehensive
loss related to defined benefit pension plan obligations increased
by $917,000 and unrealized security
gains decreased by $1.6 million, both
of which reduced book value during the fourth quarter of 2012.
- During the fourth quarter of 2012, a FHLB advance for
$10.0 million at a rate of 4.45% that
matures in June of 2017 was prepaid incurring a prepayment penalty
of $1.7 million. The interest expense
savings will be approximately $445,000 per annum over the remaining term.
Balance Sheet Review
Assets. Total assets decreased $41.5 million, or 5.2%, to $749.4 million at December
31, 2012 from $790.9 million
at December 31, 2011.
Investment securities decreased $5.7
million, or 2.3%, to $243.4
million at December 31, 2012
from $249.1 million at December 31, 2011, primarily due to securities
sold in late December, the proceeds from which were not reinvested
until January, partially offset by the reinvestment into investment
securities of proceeds from loan repayments and prepayments. Loans
receivable, net of deferred fees, decreased $45.2 million, or 10.4%, to $387.7 million at December
31, 2012 from $432.9 million
at December 31, 2011 as loan
repayments, prepayments, and foreclosures continued to outpace new
loan originations. In December of 2012, the Bank completed
the foreclosure on the collateral of its largest nonperforming
loan in the amount of $9.8 million,
net of write-downs, which was moved into foreclosed properties.
Liabilities. Total liabilities decreased
$37.5 million to $637.8 million at December
31, 2012 compared to $675.3 million at December 31, 2011. Total deposits decreased
$29.9 million, or 4.9%, to
$578.3 million at December 31, 2012 from $608.2 million at December
31, 2011. During 2012, core deposits, which exclude
certificates of deposit, increased $39.4
million, or 11.3%, to $389.1
million at December 31, 2012
from $349.7 million at December 31, 2011 as a result of the Company's
continued focus on increasing these types of deposits. Certificates
of deposit decreased $69.3 million,
or 26.8%, to $189.2 million at
December 31, 2012 compared to
$258.5 million at December 31, 2011. FHLB advances decreased
$10.0 million to $50.0 million
at December 31, 2012, compared to
December 31, 2011, due to the
prepayment of an advance with a maturity date in June of 2017.
Asset Quality
Provision for Loan Losses. The provision for
loan losses was a negative amount or a credit of $(733,000) for the fourth quarter of 2012
compared to a provision expense of $2.0
million for the fourth quarter of 2011. The significant
decrease in the provision primarily resulted from a reduction in
the Bank's general loan loss reserves related to its historical
loss rates from certain high risk commercial construction and land
development loans and from commercial real estate loan
participations purchased, both of which carry no current unimpaired
balances. In addition, the fourth quarter of 2012 had fewer
charge-offs in the loan portfolio, a decline in impaired loans, and
lower loan balances as compared to the fourth quarter of 2011.
The allowance for loan losses totaled $8.5 million, or 2.20% of total loans, at
December 31, 2012 compared to
$10.6 million, or 2.45% of total
loans at December 31, 2011. The
decrease in 2012 was primarily attributable to the previously
discussed reduction in the Bank's general loan loss reserves as
well as significant reductions in the Bank's nonperforming and
delinquent loans.
The provision for loan losses was $1.7
million for the year ended December
31, 2012 compared to $3.8
million for the year ended December
31, 2011. The decrease in the provision was a result of a
decrease in net loan charge-offs in 2012, as well as the previously
discussed reduction in the Bank's general loan loss reserves. Net
loan charge-offs were $3.8 million
for the year ended December 31, 2012
compared to $5.8 million for the year
ended December 31, 2011.
Nonperforming Assets. Nonperforming assets
totaled $20.6 million, or 2.74% of
total assets, at December 31, 2012,
compared to $28.7 million, or 3.63%
of total assets, at December 31,
2011. Nonperforming assets included $1.2 million in nonperforming loans and
$19.4 million in foreclosed real
estate at December 31, 2012, compared
to $20.6 million and $8.1 million, respectively, at December 31, 2011. As of December 31, 2012, nonperforming loans included
ten residential mortgages that totaled $808,000, and three home equity loans that
totaled $155,000. Foreclosed real
estate at December 31, 2012 included
eighteen properties with a total carrying value of $19.4 million.
During the fourth quarter of 2012, the Bank completed
foreclosure on the collateral securing its largest nonperforming
loan relationship that had an original purpose of constructing a
mixed-use retail, commercial office, and residential condominium
project located in western North
Carolina. As a result of this foreclosure, the Bank acquired
forty-four of the forty-eight condominium units in the building
including all eight of the retail units (three of which are
leased), eight of the eleven commercial office condominiums (three
were sold by the developer prior to the foreclosure) and
twenty-eight of the twenty-nine residential units (one was sold by
the developer prior to the foreclosure). Following an
additional write-down of approximately $630,000 on the loans secured by this collateral
in the fourth quarter of 2012, the Bank recorded this foreclosed
property in the amount of $9.8
million.
Income Statement Analysis
Net Interest Income. Net interest income
decreased $107,000, or 2.2%, to
$4.7 million for the
fourth quarter of 2012 compared to $4.8
million for the fourth quarter of 2011. The net interest
margin increased 7 basis points to 2.59% for the quarter ended
December 31, 2012 compared to 2.52%
for the quarter ended December 2011.
Interest and dividend income decreased $817,000, or 12.0%, for the fourth quarter of
2012 compared to the fourth quarter of 2011, primarily resulting
from a 28 basis point decrease in the average yield on
interest-earning assets and a decrease in average interest-earning
assets of $27.1 million. Interest
expense decreased $710,000, or 35.3%,
for the fourth quarter of 2012 compared to the fourth quarter of
2011, primarily resulting from a 39 basis point decline in the
average rate paid on interest-bearing liabilities coupled with a
$42.2 million decrease in average
interest-bearing liabilities.
For the year ended December 31,
2012, net interest income decreased $1.7 million, or 8.5%, to $18.5 million compared to $20.2 million for the year ended December 31, 2011. The net interest margin
decreased 30 basis points to 2.50% in 2012 from 2.80% in 2011.
Interest and dividend income decreased $3.9
million, or 13.4%, to $25.0
million in 2012 from $28.9
million in 2011, primarily resulting from a 64 basis point
decrease in the average yield on interest-earning assets. Interest
expense decreased $2.1 million, or
24.9%, to $6.5 million in 2012 from
$8.6 million in 2011, principally
attributable to a 29 basis point reduction in the average rate paid
on interest-bearing liabilities and, to a lesser extent, a
$31.7 million decrease in average
interest-bearing liabilities.
Noninterest income. Noninterest income
increased $1.2 million, or 61.2%, to
$3.1 million for the
three months ended December 31,
2012 compared to $1.9 million
for the three months ended December 31,
2011, primarily due to increases of $716,000 for gains from sales of securities and
$198,000 for gains from sales of
residential mortgage loans. For the year ended December 31, 2012, noninterest income increased
$2.0 million, or 27.4%, to
$9.4 million from $7.4 million for the year ended December 31, 2011, primarily due to increases of
$1.8 million for gains from sales of
securities and $600,000 for gains
from sales of residential mortgage loans, that were partially
offset by a decrease in other deposit service fees.
Noninterest Expense. Noninterest expense
increased $2.3 million, or 38.7%, to
$8.2 million for the
three months ended December 31,
2012 from $5.9 million for the
three months ended December 31, 2011.
The increase was primarily attributable to a $1.7 million penalty to prepay a FHLB advance
during the fourth quarter of 2012. For the year ended December 31, 2012, noninterest expense increased
$3.0 million, or 13.7%, to
$25.1 million from $22.1 million for the year ended December 31, 2011, primarily due to the FHLB
prepayment penalty and increases in compensation and benefits.
In January of 2013, the Bank approved the curtailment of
benefits under its qualified and nonqualified defined benefit
pension plans. While the action had no effect on the 2012
financial position and results of operations, the Bank's annual
expenses related to its pension plans are expected to decline by
approximately $536,000 before income
taxes in 2013 due to a one-time curtailment adjustment, and by
a minimum of $100,000 before income
taxes in subsequent periods based on current actuarial
estimates.
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
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
(dollars in thousands)
|
|
|
|
2012
|
|
2011
|
|
%
change
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
$
749,354
|
|
$
790,868
|
|
-5.2%
|
Cash and
cash equivalents
|
|
|
|
47,390
|
|
72,327
|
|
-34.5%
|
Investment
securities
|
|
|
|
243,385
|
|
249,081
|
|
-2.3%
|
Loans
receivable, net of deferred fees
|
|
|
|
387,721
|
|
432,883
|
|
-10.4%
|
Allowance
for loan losses
|
|
|
|
(8,513)
|
|
(10,627)
|
|
19.9%
|
Deposits
|
|
|
|
578,299
|
|
608,236
|
|
-4.9%
|
Core
deposits
|
|
|
|
389,095
|
|
349,695
|
|
11.3%
|
FHLB
advances
|
|
|
|
50,000
|
|
60,000
|
|
-16.7%
|
Accounts
payable and other liabilities
|
|
|
|
9,115
|
|
6,303
|
|
44.6%
|
Total
equity
|
|
|
|
111,529
|
|
115,571
|
|
-3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year
Ended
|
(dollars in thousands,
|
December 31,
|
|
December 31,
|
except
per share data)
|
2012
|
|
2011
|
|
%
change
|
|
2012
|
|
2011
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
|
|
|
|
|
|
dividend income
|
$
5,967
|
|
$
6,784
|
|
-12.0%
|
|
$
24,992
|
|
$
28,851
|
|
-13.4%
|
Interest
expense
|
1,303
|
|
2,013
|
|
-35.3%
|
|
6,492
|
|
8,642
|
|
-24.9%
|
Net
interest income
|
4,664
|
|
4,771
|
|
-2.2%
|
|
18,500
|
|
20,209
|
|
-8.5%
|
Provision
for (recovery
|
|
|
|
|
|
|
|
|
|
|
|
of) loan losses
|
(733)
|
|
1,974
|
|
-137.1%
|
|
1,700
|
|
3,785
|
|
-55.1%
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
|
|
after provision for
|
|
|
|
|
|
|
|
|
|
|
|
loan losses
|
5,397
|
|
2,797
|
|
93.0%
|
|
16,800
|
|
16,424
|
|
2.3%
|
Noninterest income
|
3,083
|
|
1,912
|
|
61.2%
|
|
9,456
|
|
7,422
|
|
27.4%
|
Noninterest expense
|
8,178
|
|
5,896
|
|
38.7%
|
|
25,092
|
|
22,071
|
|
13.7%
|
Income
(loss) before
|
|
|
|
|
|
|
|
|
|
|
|
income tax provision
|
302
|
|
(1,187)
|
|
125.4%
|
|
1,164
|
|
1,775
|
|
-34.4%
|
Income
tax
|
|
|
|
|
|
|
|
|
|
|
|
provision (benefit)
|
67
|
|
(476)
|
|
114.1%
|
|
302
|
|
588
|
|
-48.6%
|
Net income
(loss)
|
$
235
|
|
$
(711)
|
|
133.1%
|
|
$
862
|
|
$
1,187
|
|
-27.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.05
|
|
$
(0.14)
|
|
135.7%
|
|
$
0.17
|
|
$
0.23
|
|
-26.1%
|
Diluted
|
$
0.05
|
|
$
(0.14)
|
|
135.7%
|
|
$
0.17
|
|
$
0.23
|
|
-26.1%
|
Weighted
average shares
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (1)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
5,172,580
|
|
5,141,462
|
|
|
|
5,160,830
|
|
5,141,462
|
|
|
Diluted
|
5,172,580
|
|
5,141,462
|
|
|
|
5,160,830
|
|
5,141,462
|
|
|
(1)
Weighted average shares outstanding used in the calculation of
basic and diluted earnings per share for the
|
2011 periods 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
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31,
|
|
|
2012
|
|
2011
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in thousands)
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks
|
|
$
48,092
|
|
0.39%
|
|
$
64,849
|
|
0.25%
|
Loans
receivable
|
|
409,925
|
|
4.59%
|
|
449,036
|
|
4.82%
|
Investment
securities
|
|
71,477
|
|
2.35%
|
|
70,452
|
|
2.44%
|
Mortgage-backed and similar securities
|
|
195,879
|
|
1.67%
|
|
168,030
|
|
2.07%
|
Other
interest-earning assets
|
|
3,737
|
|
3.41%
|
|
3,883
|
|
1.33%
|
Interest-bearing deposits
|
|
514,354
|
|
0.56%
|
|
552,558
|
|
1.01%
|
Overnight
and short-term borrowings
|
|
454
|
|
0.00%
|
|
367
|
|
0.00%
|
Federal
Home Loan Bank advances
|
|
56,848
|
|
4.01%
|
|
60,971
|
|
3.96%
|
|
|
|
|
|
|
|
|
|
Interest
rate spread
|
|
|
|
2.39%
|
|
|
|
2.28%
|
Net
interest margin
|
|
|
|
2.59%
|
|
|
|
2.52%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2012
|
|
2011
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in thousands)
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks
|
|
$
57,361
|
|
0.35%
|
|
$
33,089
|
|
0.26%
|
Loans
receivable
|
|
418,569
|
|
4.67%
|
|
471,260
|
|
4.99%
|
Investment
securities
|
|
70,222
|
|
2.19%
|
|
70,327
|
|
2.53%
|
Mortgage-backed and similar securities
|
|
199,042
|
|
1.93%
|
|
145,806
|
|
2.41%
|
Other
interest-earning assets
|
|
3,842
|
|
2.06%
|
|
3,927
|
|
1.02%
|
Interest-bearing deposits
|
|
535,084
|
|
0.77%
|
|
565,268
|
|
1.10%
|
Overnight
and short-term borrowings
|
|
616
|
|
0.32%
|
|
1,049
|
|
0.29%
|
Federal
Home Loan Bank advances
|
|
59,208
|
|
4.03%
|
|
60,245
|
|
4.01%
|
|
|
|
|
|
|
|
|
|
Interest
rate spread
|
|
|
|
2.27%
|
|
|
|
2.62%
|
Net
interest margin
|
|
|
|
2.50%
|
|
|
|
2.80%
|
|
|
|
|
|
|
|
|
|
Selected Asset Quality Data
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year
Ended
|
Allowance for Loan Losses
|
|
December 31,
|
|
December 31,
|
(in
thousands)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, beginning of period
|
|
$
10,220
|
|
$
10,873
|
|
$
10,627
|
|
$
12,676
|
Provision
for (recovery of) loan losses
|
|
(733)
|
|
1,974
|
|
1,700
|
|
3,785
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
(995)
|
|
(2,316)
|
|
(3,995)
|
|
(6,134)
|
Recoveries
|
|
21
|
|
96
|
|
181
|
|
300
|
Net
charge-offs
|
|
(974)
|
|
(2,220)
|
|
(3,814)
|
|
(5,834)
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, end of period
|
|
$
8,513
|
|
$
10,627
|
|
$
8,513
|
|
$
10,627
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percent of:
|
|
|
|
|
|
|
|
|
Total loans
|
|
2.20%
|
|
2.45%
|
|
2.20%
|
|
2.45%
|
Total nonperforming loans
|
|
739.62%
|
|
51.53%
|
|
739.62%
|
|
51.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
December 31,
|
|
|
(dollars in thousands)
|
|
|
|
2012
|
|
2011
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans:
|
|
|
|
|
|
|
|
|
Nonaccruing Loans (1)
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
Commercial mortgage
|
|
|
|
$
-
|
|
$
833
|
|
-100.0%
|
Commercial construction and land development
|
|
|
|
40
|
|
14,695
|
|
-99.7%
|
Commercial and industrial
|
|
|
|
114
|
|
2,595
|
|
-95.6%
|
Total commercial
|
|
|
|
154
|
|
18,123
|
|
-99.2%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
|
|
808
|
|
1,922
|
|
-58.0%
|
Non-commercial construction and land development
|
|
|
|
-
|
|
110
|
|
-100.0%
|
Revolving mortgage
|
|
|
|
155
|
|
440
|
|
-64.8%
|
Consumer
|
|
|
|
34
|
|
27
|
|
25.9%
|
Total non-commercial
|
|
|
|
997
|
|
2,499
|
|
-60.1%
|
Total
nonaccruing loans (1)
|
|
|
|
1,151
|
|
20,622
|
|
-94.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans past due 90 or more days
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans
|
|
|
|
1,151
|
|
20,622
|
|
-94.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed
real estate
|
|
|
|
19,411
|
|
8,125
|
|
138.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming assets
|
|
|
|
20,562
|
|
28,747
|
|
-28.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
troubled debt restructurings (2)
|
|
|
|
5,065
|
|
1,142
|
|
343.5%
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets
|
|
|
|
$
25,627
|
|
$
29,889
|
|
-14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percent of total
loans
|
|
|
|
0.30%
|
|
4.76%
|
|
|
Nonperforming assets as a percent of total
assets
|
|
|
|
2.74%
|
|
3.63%
|
|
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets to total assets
|
|
|
|
|
|
|
3.42%
|
|
3.78%
|
|
|
(1)
Nonaccruing loans include nonaccruing troubled debt
restructurings.
|
(2)
Performing troubled debt restructurings exclude nonaccruing
troubled debt restructurings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
(dollars in thousands)
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
$
8,125
|
|
$
10,650
|
|
|
Transfers
from loans
|
|
|
|
17,464
|
|
3,533
|
|
|
Capitalized cost
|
|
|
|
22
|
|
41
|
|
|
Loss
provisions
|
|
|
|
(1,308)
|
|
(1,574)
|
|
|
Net loss
on sale of foreclosed properties
|
|
|
|
(176)
|
|
(410)
|
|
|
Net
proceeds from sales of foreclosed properties
|
|
|
|
(4,716)
|
|
(4,115)
|
|
|
Ending
balance
|
|
|
|
$
19,411
|
|
$
8,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate by Loan Type
|
|
December 31,
|
(unaudited)
|
|
2012
|
|
2011
|
(dollars in thousands)
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
2
|
|
$
1,709
|
|
3
|
|
$
3,045
|
Commercial
construction and land development
|
|
10
|
|
16,642
|
|
2
|
|
1,683
|
Residential mortgage
|
|
5
|
|
944
|
|
10
|
|
1,660
|
Residential construction and land
development
|
|
1
|
|
116
|
|
3
|
|
1,737
|
Total
|
|
18
|
|
$
19,411
|
|
18
|
|
$
8,125
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year
Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
|
0.12%
|
|
-0.35%
|
|
0.11%
|
|
0.15%
|
Return on
average equity (1)
|
|
0.82%
|
|
-2.14%
|
|
0.74%
|
|
1.44%
|
Interest
rate spread (1)(2)
|
|
2.39%
|
|
2.28%
|
|
2.27%
|
|
2.62%
|
Net
interest margin (1)(3)
|
|
2.59%
|
|
2.52%
|
|
2.50%
|
|
2.80%
|
Noninterest expense to average assets (1)
|
|
4.26%
|
|
2.89%
|
|
3.21%
|
|
2.88%
|
Efficiency
ratio (4)
|
|
|
|
|
104.48%
|
|
87.82%
|
|
89.08%
|
|
79.60%
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Periods Ended
|
(dollars in thousands,
|
|
|
December 31,
|
|
September 30,
|
|
June
30,
|
|
March 31,
|
|
December 31,
|
except
per share data)
|
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011*
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
|
$
5,967
|
|
$
6,088
|
|
$
6,398
|
|
$
6,539
|
|
$
6,784
|
Interest
expense
|
|
|
1,303
|
|
1,527
|
|
1,743
|
|
1,919
|
|
2,013
|
Net
interest income
|
|
|
4,664
|
|
4,561
|
|
4,655
|
|
4,620
|
|
4,771
|
Provision
for (recovery of) loan losses
|
|
|
(733)
|
|
542
|
|
1,293
|
|
598
|
|
1,974
|
Net
interest income after
|
|
|
|
|
|
|
|
|
|
|
|
provision for loan losses
|
|
|
5,397
|
|
4,019
|
|
3,362
|
|
4,022
|
|
2,797
|
Noninterest income
|
|
|
3,083
|
|
2,416
|
|
1,999
|
|
1,958
|
|
1,912
|
Noninterest expense
|
|
|
8,178
|
|
5,760
|
|
5,588
|
|
5,566
|
|
5,896
|
Income
(loss) before income
|
|
|
|
|
|
|
|
|
|
|
|
tax
provision
|
|
|
302
|
|
675
|
|
(227)
|
|
414
|
|
(1,187)
|
Income tax
provision (benefit)
|
|
|
67
|
|
218
|
|
(113)
|
|
130
|
|
(476)
|
Net income
(loss)
|
|
|
$
235
|
|
$
457
|
|
$
(114)
|
|
$
284
|
|
$
(711)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share – Basic
|
|
|
$
0.05
|
|
$
0.09
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
Net income
(loss) per share – Diluted
|
|
|
$
0.05
|
|
$
0.09
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
Book value
per share
|
|
|
$
19.97
|
|
$
20.99
|
|
$
20.79
|
|
$
20.66
|
|
$
20.69
|
Average
shares outstanding basic
|
|
|
5,172,580
|
|
5,164,689
|
|
5,156,842
|
|
5,149,039
|
|
5,141,462
|
Average
shares outstanding diluted
|
|
|
5,172,580
|
|
5,164,689
|
|
5,156,842
|
|
5,149,039
|
|
5,141,462
|
Ending
shares outstanding
|
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
December 31,
|
|
September 30,
|
|
June
30,
|
|
March 31,
|
|
December 31,
|
(dollars in thousands)
|
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011**
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
749,354
|
|
$
772,407
|
|
$
798,667
|
|
$
796,901
|
|
$
790,868
|
Cash and
cash equivalents
|
|
|
47,390
|
|
50,583
|
|
73,475
|
|
80,087
|
|
72,327
|
Investment
securities
|
|
|
243,385
|
|
281,166
|
|
284,671
|
|
264,782
|
|
249,081
|
Loans
receivable, net of deferred fees
|
|
|
387,721
|
|
402,724
|
|
409,140
|
|
416,307
|
|
432,883
|
Allowance
for loan losses
|
|
|
(8,513)
|
|
(10,220)
|
|
(11,563)
|
|
(10,562)
|
|
(10,627)
|
Deposits
|
|
|
578,299
|
|
586,686
|
|
606,022
|
|
610,242
|
|
608,236
|
Core
deposits
|
|
|
389,095
|
|
379,237
|
|
375,478
|
|
359,350
|
|
349,695
|
FHLB
advances
|
|
|
50,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
Total
equity
|
|
|
111,529
|
|
117,225
|
|
116,079
|
|
115,360
|
|
115,571
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
|
|
$
1,151
|
|
$
12,724
|
|
$
18,232
|
|
$
18,063
|
|
$
20,622
|
Nonperforming assets
|
|
|
20,562
|
|
24,324
|
|
26,847
|
|
27,198
|
|
28,747
|
Nonperforming loans to total loans
|
|
|
0.30%
|
|
3.16%
|
|
4.46%
|
|
4.34%
|
|
4.76%
|
Nonperforming assets to total assets
|
|
|
2.74%
|
|
3.15%
|
|
3.36%
|
|
3.41%
|
|
3.63%
|
Allowance
for loan losses
|
|
|
$
8,513
|
|
$
10,220
|
|
$
11,563
|
|
$
10,562
|
|
$
10,627
|
Allowance
for loan losses to total loans
|
|
|
2.20%
|
|
2.54%
|
|
2.83%
|
|
2.54%
|
|
2.45%
|
Allowance
for loan losses to
|
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans
|
|
|
739.62%
|
|
80.32%
|
|
63.42%
|
|
58.47%
|
|
51.53%
|
* Certain
amounts in the prior years' financial statements have been
reclassified to conform to the December 31,
|
2012 presentation. The
reclassifications had no effect on net income or equity as
previously reported.
|
** Ending
balance sheet data as of December 31, 2011 were derived from
audited consolidated financial statements.
|
SOURCE ASB Bancorp, Inc.