SNB Bancshares, Inc. Announces Balance Sheet Repositioning
30 December 2005 - 9:40AM
PR Newswire (US)
SUGAR LAND, Texas, Dec. 29 /PRNewswire-FirstCall/ -- SNB
Bancshares, Inc. (NASDAQ:SNBT) ("Company"), a Sugar Land bank
holding company with assets of $1.1 billion and the parent Company
of Southern National Bank of Texas, announced today that its Board
of Directors has approved a plan to reposition the Company's
balance sheet by reducing the amount of low-yielding investment
securities and using the proceeds to de-leverage its borrowing
position. The Board approved this plan in an effort to reduce the
Company's liability sensitive position and to improve its net
interest margin. As previously announced on November 16, 2005,
Prosperity Bancshares, Inc. (NASDAQ:PRSP) ("Prosperity") and the
Company have signed a definitive agreement for Prosperity to
acquire SNB Bancshares, Inc. and its subsidiary, Southern National
Bank of Texas. Prosperity has approved this balance sheet
repositioning plan in accordance with the provisions of the
Agreement and Plan of Reorganization by and between Prosperity and
the Company. The Company has identified for sale from its
available-for-sale securities portfolio approximately $205.0
million in U.S. Government callable agency bonds, mortgage-backed
securities and collateralized mortgage obligations with a weighted
average yield of 3.45%. The Company plans to use the net proceeds
from such sales to reduce borrowings with an average rate of 4.29%.
The Company expects to incur an impairment writedown charge on
securities and a prepayment penalty on long-term borrowings
totaling approximately $5.3 million net of tax during the quarter
ended December 31, 2005. As a result of these transactions, the
Company expects its year-end total securities portfolio to
approximate $265.0 million and its borrowings to approximate $25
million. The yield on the investment securities portfolio is
expected to improve by approximately 50 to 55 basis points, and the
effective duration is expected to increase from approximately 3.2
years to approximately 3.3 years. Except for historical information
contained herein, this press release contains forward-looking
statements regarding SNB Bancshares' prospective performance and
strategies within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. SNB Bancshares intends such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, and is including this statement for
purposes of said safe harbor provisions. The following factors,
among others, could cause actual results to differ materially from
the expectations stated in any forward-looking statement: a change
in general business and economic conditions in the markets the
Company serves; changes in the interest rate environment, deposit
flows, loan demand, real estate values, and competition; changes in
accounting principles, policies or guidelines; changes in
legislation and regulation; and other economic, competitive,
governmental, regulatory, geopolitical, and technological factors
affecting SNB Bancshares' operations, pricing, and services. SNB
Bancshares undertakes no obligation to update these forward-looking
statements to reflect events or circumstances that occur after the
date on which such statements were made. Please also read the
additional risks and factors described from time to time in SNB
Bancshares' reports and documents filed with the Securities and
Exchange Commission. CONTACT: Darrell Brewer Chief Financial
Officer 281-269-7271 DATASOURCE: SNB Bancshares, Inc. CONTACT:
Darrell Brewer, Chief Financial Officer of SNB Bancshares, Inc.,
+1-281-269-7271 Web site: http://www.snbtx.com/
Copyright
Snb Bancshares (NASDAQ:SNBT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Snb Bancshares (NASDAQ:SNBT)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Snb Bancshares (Texas) (MM) (NASDAQ): 0 recent articles
More Snb Bancshares (Texas) (MM) News Articles