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WINSTON-SALEM, N.C., Jan. 31 /PRNewswire-FirstCall/ -- Southern Community Financial Corporation (Nasdaq: SCMF; SCMFO) (the "Company"), the holding company for Southern Community Bank and Trust, announced record net income for the year ended December 31, 2004 of $8.1 million, an increase of 121.2% over net income of $3.7 million earned in 2003. The Company completed the acquisition of The Community Bank in the first quarter of 2004, which has provided much of the year-over-year growth. Diluted earnings per share for the year were $0.45, up 12.5% from the $0.40 reported for 2003. Net income for the fourth quarter of 2004 was $2.4 million, or $0.13 per diluted share versus net income of $836,000, or $0.09 per diluted share reported for the year-ago fourth quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020823/SCFCLOGO )
Recent significant milestones achieved:
- Completed the acquisition of The Community Bank raising assets to over
$1 billion and increasing the number of banking offices to 18.
- Opened a loan production office in Mooresville, North Carolina.
- Redeemed all of the outstanding 7.25% Cumulative Convertible Trust
Preferred Securities (SCMFP) on March 12, 2004.
- Paid an annual cash dividend of $0.11 per share on March 15, 2004.
- Declared second consecutive annual cash dividend of $0.12 per share on
January 19, 2005.
- Added to the Russell 3000 Index on June 25, 2004.
- Completed the acquisition of 2 residential offices from Davidson
Mortgage to compliment the move into Mooresville.
- Merged its two banking units, Southern Community Bank and Trust and The
Community Bank into a single bank; and
- Converted core data processors and began in-house item processing for
the combined Bank.
Net interest income for the fourth quarter of 2004 was $9.1 million or
63.0% higher than the $5.6 million earned in the fourth quarter of 2003. For
the year, net interest income rose to $35.0 million, a 64.6% increase over the
$21.3 million reported for the year ended December 31, 2003. The Company's
net interest margin for the fourth quarter was 3.29%, compared with 3.28% for
the third quarter of 2004 and 3.05% for the same period in 2003. For 2004,
the net interest margin was 3.31% compared with 3.25% for 2003. The increase
in the net interest margin was primarily related to higher yields on loans as
a result of increases in the prime rate in addition to continued improvement
in the Company's asset mix.
Non-interest income for the year ended December 31, 2004 was $7.4 million,
an increase of 48.6% over the $5.0 million reported for the corresponding 2003
period. For the three months ended December 31, 2004 and 2003, non-interest
income was $2.2 million and $1.1 million, respectively. Growth in non-
interest income during 2004 reflected the contribution made by The Community
Bank. Non-interest expense for the fourth quarter of 2004 increased by
48.3% over the same period in 2003 and totaled $7.1 million compared to
$4.8 million in the year ago period. Total non-interest expense for 2004 and
2003 was $27.5 million and $18.3 million, respectively. This increase
reflects the higher expenses primarily due to the Community Bank acquisition,
as well as normal salary and employee benefit increases.
At December 31, 2004, total assets were $1.2 billion, an increase of
$423.9 million or 53.0% from year-end 2003 assets of $798.5 million. The
increase in total assets for the year was a result of the assets acquired in
The Community Bank acquisition in addition to internal growth in the loan
portfolio. The Bank's loan portfolio, net of allowance for loan losses,
increased to $783.6 million, an increase of $271.1 million or 52.9% from
December 31, 2003, while on a linked quarter basis net loans increased
$18.8 million or 2.5%. Total deposits expanded $270.0 million year-over-year
to $845.2 million at December 31, 2004, an increase of $6.3 million over the
prior quarter.
The Company's allowance for loan losses equaled $12.5 million, or 1.57% of
total loans and 577% of non-performing loans at December 31, 2004. Net
charge-offs as a percentage of average loans, a primary measure of credit
quality, were 0.20% for the quarter and 0.19% for the year ended December 31,
2004, a significant improvement from 0.27% reported in the third quarter of
2004 and 0.29% for the year ended December 31, 2003. Non-performing loans
totaled $2.2 million at year-end 2004 compared to $1.9 million at
September 30, 2004.
Stockholders' equity totaled $136.9 million, or 11.20% of total assets at
December 31, 2004 which represents an increase of $86.0 million, or 169.0%
from $50.9 million for the year ago period. Regulatory capital ratios are all
well in excess of the "well-capitalized" threshold.
Southern Community Financial Corporation Chairman and Chief Executive
Officer F. Scott Bauer commented, "This past year has been one of significant
growth and positive changes for the future as we surpassed $1 billion in
assets with the completion of The Community Bank merger. However, we have
remained dedicated to providing quality service and value for our customers
and are well-positioned to continue this effort in 2005. Furthermore, we are
proud to have recently announced our second consecutive annual cash dividend
of $0.12 per share on our common stock."
Southern Community Financial Corporation is headquartered in Winston-
Salem, North Carolina and is the holding company of Southern Community Bank
and Trust, a community bank, with eighteen banking offices throughout the
Piedmont Triad region of North Carolina.
Southern Community Financial Corporation's common stock and trust
preferred securities are listed on the NASDAQ National Market under the
trading symbols SCMF and SCMFO, respectively. Additional information about
Southern Community is available on its website
at http://www.smallenoughtocare.com or by email at
investor.relations@smallenoughtocare.com.
This news release contains forward-looking statements. Such statements
are subject to certain factors that may cause the Company's results to vary
from those expected. These factors include changing economic and financial
market conditions, competition, ability to execute our business plan, items
already mentioned in this press release, and other factors described in our
filings with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements, which reflect
management's judgment only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect
events and circumstances that arise after the date hereof.
Southern Community Financial Corporation
(Amounts in thousands except per share data)
(Unaudited)
For the three months ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2004 2004 2004 2004 2003
Income Statement
Total Interest Income $14,744 $13,909 $13,154 $12,849 $9,510
Total Interest Expense 5,674 5,061 4,513 4,409 3,945
Net Interest Income 9,070 8,848 8,641 8,440 5,565
Provision for Loan Losses 350 575 717 597 595
Net Interest Income after
Provision for Loan Losses 8,720 8,273 7,924 7,843 4,970
Non-Interest Income
Service Charges on Deposit
Accounts 1,109 828 815 750 373
Other Income 1,140 1,020 965 779 761
Total Non-Interest Income 2,249 1,848 1,780 1,529 1,134
Non-Interest Expense
Salaries and Employee Benefits 3,297 3,473 3,525 3,454 2,541
Occupancy and Equipment 1,217 1,068 1,040 1,027 786
Other 2,633 2,355 2,161 2,270 1,491
Total Non-Interest Expense 7,147 6,896 6,726 6,751 4,818
Income Before Taxes 3,822 3,225 2,978 2,621 1,286
Provision for Income Taxes 1,469 1,119 1,021 935 450
Net Income 2,353 2,106 1,957 1,686 836
Net Income per Share
Basic $0.13 $0.12 $0.11 $0.11 $0.09
Diluted $0.13 $0.12 $0.11 $0.10 $0.09
Southern Community Financial Corporation
(Amounts in thousands except per share data)
(Unaudited)
Twelve months ended
Dec. 31, Dec. 31,
Income Statement 2004 2003
Total Interest Income $54,656 $36,019
Total Interest Expense 19,657 14,751
Net Interest Income 34,999 21,268
Provision for Loan Losses 2,239 2,285
Net Interest Income after Provision
for Loan Losses 32,760 18,983
Non-Interest Income
Service Charges on Deposit Accounts 3,502 1,442
Other Income 3,904 3,543
Total Non-Interest Income 7,406 4,985
Non-Interest Expense
Salaries and Employee Benefits 13,749 9,603
Occupancy and Equipment 4,352 3,045
Other 9,419 5,685
Total Non-Interest Expense 27,520 18,333
Income Before Taxes 12,646 5,635
Provision for Income Taxes 4,544 1,972
Net Income 8,102 3,663
Net Income per Share
Basic $0.47 $0.41
Diluted $0.45 $0.40
Balance Sheet Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2004 2004 2004 2004 2003
Assets
Cash and due from
Banks $17,758 $19,544 $24,447 $19,297 $22,929
Federal Funds Sold 80 1,231 4,349 6,014 271
Investment
Securities 312,909 301,736 315,147 322,471 230,757
Loans 796,103 777,368 740,074 704,237 519,746
Allowance for Loan
Losses (12,537) (12,629) (12,567) (12,125) (7,275)
Net Loans 783,566 764,739 727,507 692,112 512,471
Bank Premises
and Equipment 28,325 26,755 25,320 24,730 17,337
Goodwill 50,135 50,351 50,063 50,071 -
Other Assets 29,589 31,104 29,603 28,295 14,737
Total Assets $1,222,361 $1,195,460 $1,176,436 $1,142,990 $798,502
Liabilities and
Stockholders' Equity
Deposits
Non-Interest
Bearing 83,907 87,118 89,358 89,327 51,868
Interest Bearing 761,321 751,775 705,454 711,946 523,350
Total Deposits 845,228 838,893 794,812 801,273 575,218
Borrowings 233,141 212,557 245,971 202,867 169,527
Accrued Expenses
and Other
Liabilities 7,086 9,228 6,574 7,775 2,866
Total
Liabilities 1,085,455 1,060,678 1,047,357 1,011,915 747,611
Total Stockholders'
Equity 136,906 134,782 129,079 131,075 50,891
Total Liabilities
and Stockholders'
Equity $1,222,361 $1,195,460 $1,176,436 $1,142,990 $798,502
Book Value per
Share $7.68 $7.57 $7.29 $7.44 $5.66
As of or for the three months ended
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
2004 2004 2004 2004 2003
Per Share Data:
Basic Earnings per Share $0.13 $0.12 $0.11 $0.11 $0.09
Diluted Earnings per Share $0.13 $0.12 $0.11 $0.10 $0.09
Book Value per Share $7.68 $7.57 $7.29 $7.44 $5.66
Cash dividends paid (1) - - - $0.11 -
Selected Performance Ratios:
Return on Average Assets
(annualized) 0.78% 0.71% 0.68% 0.61% 0.43%
Return on Average Equity
(annualized) 6.93% 6.24% 5.97% 5.61% 6.64%
Return on Tangible Equity
(annualized) 11.35% 10.34% 9.94% 9.50% -
Net Interest Margin 3.29% 3.28% 3.32% 3.37% 3.05%
Net Interest Spread 3.03% 3.07% 3.10% 3.15% 2.85%
Non-interest Income as a % of
Revenue 19.87% 17.28% 17.08% 15.34% 16.91%
Non-interest Income as a % of
Average Assets 0.74% 0.62% 0.62% 0.55% 0.59%
Non-interest Expense to Average
Assets 2.36% 2.33% 2.33% 2.45% 2.48%
Efficiency Ratio 63.14% 64.47% 64.54% 67.72% 71.91%
Asset Quality:
Nonperforming Loans $2,174 $1,942 $2,536 $1,132 $769
Nonperforming Assets $3,260 $2,972 $2,992 $1,685 $1,041
Nonperforming Loans to Total Loans 0.27% 0.25% 0.34% 0.16% 0.15%
Nonperforming Assets to Total
Assets 0.27% 0.25% 0.25% 0.15% 0.13%
Allowance for Loan Losses to
Period-end Loans 1.57% 1.62% 1.70% 1.72% 1.40%
Allowance for Loan Losses to
Nonperforming Loans (X) 5.77 6.50 4.96 10.71 9.46
Net Charge-offs to Average Loans
(annualized) 0.20% 0.27% 0.15% 0.14% 0.21%
Capital Ratios:
Equity to Total Assets 11.20% 11.27% 10.97% 11.47% 6.37%
Tangible Equity to Total Tangible
Assets (2) 7.21% 7.21% 6.83% 7.23% -
(1) - Amount is an annual dividend.
(2) - Tangible Equity to Total Tangible Assets is period-ending equity
less intangibles of $52.5 million, divided by period-ending assets less
intangibles of $52.5 million.
Management provides the above non-GAAP measures, footnote (2), to provide
readers with the impact of purchase accounting on key financial ratios.
As of or for the twelve months ended
Dec. 31, Dec. 31,
2004 2003
Per Share Data:
Basic Earnings per Share $0.47 $0.41
Diluted Earnings per Share $0.45 $0.40
Book Value per Share $7.68 $5.66
Cash dividends paid (1) $0.11 -
Selected Performance Ratios:
Return on Average Assets (annualized) 0.69% 0.53%
Return on Average Equity (annualized) 6.20% 7.48%
Return on Tangible Equity
(annualized) 10.37% -
Net Interest Margin 3.31% 3.25%
Net Interest Spread 3.08% 3.03%
Non-interest Income as a % of Revenue 17.46% 18.99%
Non-interest Income as a % of Average
Assets 0.63% 0.72%
Non-interest Expense to Average
Assets 2.36% 2.63%
Efficiency Ratio 64.90% 69.83%
Asset Quality:
Nonperforming Loans $2,174 $769
Nonperforming Assets $3,260 $1,041
Nonperforming Loans to Total Loans 0.27% 0.15%
Nonperforming Assets to Total Assets 0.27% 0.13%
Allowance for Loan Losses to Period-
end Loans 1.57% 1.40%
Allowance for Loan Losses to
Nonperforming Loans (X) 5.77 9.46
Net Charge-offs to Average Loans
(annualized) 0.19% 0.29%
Capital Ratios:
Equity to Total Assets 11.20% 6.37%
Tangible Equity to Total Tangible
Assets (2) 7.21% -
(1) - Amount is an annual dividend.
(2) - Tangible Equity to Total Tangible Assets is period-ending equity
less intangibles of $52.5 million, divided by period-ending assets less
intangibles of $52.5 million.
Management provides the above non-GAAP measures, footnote (2), to provide
readers with the impact of purchase accounting on key financial ratios.
SOURCE Southern Community Financial Corporation
-0- 01/31/2005
/CONTACT: F. Scott Bauer, Chairman and CEO of Southern Community
Financial Corporation, +1-336-768-8500/
/Photo: http://www.newscom.com/cgi-bin/prnh/20020823/SCFCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /
/Web site: http://www.smallenoughtocare.com /
(SCMF SCMFO)
CO: Southern Community Financial Corporation; The Community Bank; Southern
Community Bank and Trust
ST: North Carolina
IN: FIN
SU: ERN
AB-JK
-- CLM015 --
2154 01/31/200508:00 ESThttp://www.prnewswire.com