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WINSTON-SALEM, N.C., Oct. 27 /PRNewswire-FirstCall/ -- Southern Community Financial Corporation (Nasdaq: SCMF; SCMFO) (the "Company"), the holding company for Southern Community Bank and Trust, reported operating results for the three and nine month periods ended September 30, 2004. 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. For the 3rd quarter ended September 30, 2004, the Company reported net income of $2.1 million up 104.9% from $1.03 million in the year ago period. Earnings per share increased 9.1% to $0.12 per diluted share as compared to $0.11 per diluted share for the 3rd quarter of 2003. As for the nine month period ended September 30, 2004, net income rose to $5.7 million, an increase of 103.4% from $2.8 million for the same nine month period in 2003. On a diluted per share basis, the Company reported $0.33 as opposed to $0.31 for the nine month period ended September 30, 2003, up 6.5%.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020823/SCFCLOGO )
Significant milestones achieved during 2004:
-- 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
-- Increased common shares outstanding from 8.99 million at year-end 2003
to 17.81 million at the end of the third quarter
-- Paid an annual cash dividend of $0.11 per share on March 15, 2004
-- Added to the Russell 3000 Index on June 25, 2004
-- Completed the acquisition of 2 residential mortgage origination
offices from Davidson Mortgage
-- Merged its two banking units, Southern Community Bank and Trust and
The Community Bank into a single bank on October 18, 2004
-- Converted core data processors and began in-house item processing for
the combined Bank
Net interest income for the 3rd quarter rose to record levels despite the
continued pressure on our net interest margin. Net interest income rose to
$8.8 million, a 55.7% increase over the $5.7 million reported in the same
quarter a year ago. Year to date, net interest income rose to $25.9 million
from $15.7 million for the first nine months of 2003, a rise of 65.1%,
primarily as a result of continued growth in the loan portfolio.
The Company continues to generate solid fee income levels leading to a
47.0% rise in non-interest income over the third quarter of 2003 and totaled
$1.8 million compared to $1.3 million in the prior year period. As for the
nine months ended September 30, 2004, non-interest income was $5.2 million as
opposed to the $3.9 million reported in the corresponding period of 2003, an
increase of 33.9%. Growth in non-interest income during 2004 reflected the
contribution made by The Community Bank. Non-interest expense for the quarter
increased by 41.0% over the 3rd quarter of 2003 and totaled $6.9 million
compared to $4.9 million in the year ago period. This increase is a product
of the continued transition of The Community Bank acquisition along with
higher staff levels needed to support growth.
As of September 30, 2004, the Company posted total assets of $1.2 billion,
representing growth of $23.0 million, or 2.0% from June 30, 2004 and an
increase of $442.6 million, or 58.5% year over year reflecting assets acquired
in The Community Bank acquisition and internal growth in the loan portfolio.
The Bank's loan portfolio, net of allowance for loan losses, increased to
$764.7 million, an increase of $37.2 million, or 5.1% over the three month
period ended June 30, 2004 and an increase of $274.9 million, or 56.1% from
September 30, 2003. Total deposits expanded to $838.9 million at September
30, 2004, an increase of $44.1 million over the prior quarter and an increase
of $295.0 million from the year ago period.
The Company's allowance for loan losses equaled $12.6 million, or 1.62% of
total loans and 650% of non-performing loans at September 30, 2004. Credit
quality metrics displayed significant improvement as non-performing loans
totaled $1.9 million or 0.25% of total loans at quarter-end, in comparison
with $2.5 million or 0.34% of total loans as reported for June 30, 2004.
Annualized net charge-offs as a percentage of average loans were 0.27% for the
quarter ended September 30, 2004, flat with the same period in 2003.
At September 30, 2004 stockholders' equity totaled $134.8 million and
represented 11.24% of total assets. Stockholders' equity increased $85.6
million or 173.8% from $49.2 million for the year ago period. Regulatory
capital ratios are all well in excess of the "well-capitalized" threshold.
Southern Community Financial Corporation Chairman, President and Chief
Executive Officer F. Scott Bauer commented, "The Community Bank merger has
been successfully completed. Synergies have been created through the combined
institution which will benefit us in the future. Our people have continued to
provide the excellent service which has distinguished Southern Community since
we were formed eight years ago."
Southern Community Financial 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 symbol 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
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Income Statement 2004 2004 2004 2003 2003
Total Interest Income $13,909 $13,154 $12,849 $9,510 $9,338
Total Interest Expense 5,061 4,513 4,409 3,945 3,657
Net Interest Income 8,848 8,641 8,440 5,565 5,681
Provision for Loan Losses 575 717 597 595 465
Net Interest Income after
Provision for Loan Losses 8,273 7,924 7,843 4,970 5,216
Non-Interest Income
Service Charges on Deposit
Accounts 828 815 750 373 399
Other Income 1,020 965 779 761 858
Total Non-Interest Income 1,848 1,780 1,529 1,134 1,257
Non-Interest Expense
Salaries and Employee Benefits 3,473 3,525 3,454 2,541 2,549
Occupancy and Equipment 1,068 1,040 1,027 786 793
Other 2,355 2,161 2,270 1,491 1,550
Total Non-Interest Expense 6,896 6,726 6,751 4,818 4,892
Income Before Taxes 3,225 2,978 2,621 1,286 1,581
Provision for Income Taxes 1,119 1,021 935 450 553
Net Income 2,106 1,957 1,686 836 1,028
Net Income per Share
Basic $0.12 $0.11 $0.11 $0.09 $0.12
Diluted $0.12 $0.11 $0.10 $0.09 $0.11
Southern Community Financial Corporation
(Amounts in thousands except per share data)
(Unaudited)
Nine months ended
September 30, September 30,
2004 2003
Income Statement
Total Interest Income $39,912 $26,509
Total Interest Expense 13,983 10,806
Net Interest Income 25,929 15,703
Provision for Loan Losses 1,889 1,690
Net Interest Income after Provision
for Loan Losses 24,040 14,013
Non-Interest Income
Service Charges on Deposit Accounts 2,393 1,069
Other Income 2,764 2,782
Total Non-Interest Income 5,157 3,851
Non-Interest Expense
Salaries and Employee Benefits 10,452 7,062
Occupancy and Equipment 3,135 2,259
Other 6,786 4,194
Total Non-Interest Expense 20,373 13,515
Income Before Taxes 8,824 4,349
Provision for Income Taxes 3,075 1,522
Net Income 5,749 2,827
Net Income per Share
Basic $0.34 $0.32
Diluted $0.33 $0.31
Balance Sheet Sept. 30, June 30, March 31,
2004 2004 2004
Assets
Cash and due from Banks $23,544 $24,447 $19,297
Federal Funds Sold 1,231 4,349 6,014
Investment Securities 301,736 315,147 322,471
Loans 777,368 740,074 704,237
Allowance for Loan Losses (12,629) (12,567) (12,125)
Net Loans 764,739 727,507 692,112
Bank Premises and Equipment 26,755 25,320 24,730
Goodwill 50,351 50,063 50,071
Other Assets 31,104 29,603 28,295
Total Assets $1,199,460 $1,176,436 $1,142,990
Liabilities and Stockholders' Equity
Deposits
Non-Interest Bearing 87,118 89,358 89,327
Interest Bearing 751,775 705,454 711,946
Total Deposits 838,893 794,812 801,273
Borrowings 216,557 245,971 202,867
Accrued Expenses and Other Liabilities 9,228 6,574 7,775
Total Liabilities 1,064,678 1,047,357 1,011,915
Total Stockholders' Equity 134,782 129,079 131,075
Total Liabilities and Stockholders'
Equity $1,199,460 $1,176,436 $1,142,990
Book Value per Share $7.57 $7.29 $7.44
Balance Sheet December 31, September 30,
2003 2003
Assets
Cash and due from Banks $22,929 $19,571
Federal Funds Sold 271 19,436
Investment Securities 230,757 196,787
Loans 519,746 496,810
Allowance for Loan Losses (7,275) (6,948)
Net Loans 512,471 489,862
Bank Premises and Equipment 17,337 18,033
Goodwill - -
Other Assets 14,737 13,171
Total Assets $798,502 $756,860
Liabilities and Stockholders' Equity
Deposits
Non-Interest Bearing 51,868 50,019
Interest Bearing 523,350 493,863
Total Deposits 575,218 543,882
Borrowings 169,527 158,725
Accrued Expenses and Other
Liabilities 2,866 5,022
Total Liabilities 747,611 707,629
Total Stockholders' Equity 50,891 49,231
Total Liabilities and Stockholders' Equity $798,502 $756,860
Book Value per Share $5.66 $5.55
As of or for the three months ended
Sept. 30, June 30, March 31,
2004 2004 2004
Per Share Data:
Basic Earnings per Share $0.12 $0.11 $0.11
Diluted Earnings per Share $0.12 $0.11 $0.10
Book Value per Share $7.57 $7.29 $7.44
Cash dividends paid (1) - - $0.11
Selected Performance Ratios:
Return on Average Assets (annualized) 0.71% 0.68% 0.61%
Return on Average Equity (annualized) 6.24% 5.97% 5.61%
Return on Tangible Equity
(annualized) (2) 10.34% 9.94% 9.50%
Net Interest Margin 3.28% 3.32% 3.37%
Net Interest Spread 3.07% 3.10% 3.15%
Non-interest Income as a % of Revenue 17.28% 17.08% 15.34%
Non-interest Income as a % of Average
Assets 0.62% 0.62% 0.55%
Non-interest Expense to Average
Assets 2.33% 2.33% 2.45%
Efficiency Ratio 64.47% 64.54% 67.72%
Asset Quality:
Nonperforming Loans $1,942 $2,536 $1,132
Nonperforming Assets $2,972 $2,992 $1,685
Nonperforming Loans to Total Loans 0.25% 0.34% 0.16%
Nonperforming Assets to Total Assets 0.25% 0.25% 0.15%
Allowance for Loan Losses to Period-
end Loans 1.62% 1.70% 1.72%
Allowance for Loan Losses to
Nonperforming Loans (X) 6.50 4.96 10.71
Net Charge-offs to Average Loans
(annualized) 0.27% 0.15% 0.14%
Capital Ratios:
Equity to Total Assets 11.24% 10.97% 11.47%
Tangible Equity to Total Tangible
Assets (3) 7.18% 6.83% 7.23%
As of or for the three months ended
December 31, September 30,
2003 2003
Per Share Data:
Basic Earnings per Share $0.09 $0.12
Diluted Earnings per Share $0.09 $0.11
Book Value per Share $5.66 $5.55
Cash dividends paid (1) - -
Selected Performance Ratios:
Return on Average Assets (annualized) 0.43% 0.55%
Return on Average Equity (annualized) 6.64% 8.25%
Return on Tangible Equity
(annualized) (2) - -
Net Interest Margin 3.05% 3.21%
Net Interest Spread 2.85% 3.03%
Non-interest Income as a % of Revenue 16.91% 18.12%
Non-interest Income as a % of Average
Assets 0.59% 0.67%
Non-interest Expense to Average
Assets 2.48% 2.60%
Efficiency Ratio 71.91% 70.52%
Asset Quality:
Nonperforming Loans $769 $1,201
Nonperforming Assets $1,041 $1,863
Nonperforming Loans to Total Loans 0.15% 0.24%
Nonperforming Assets to Total Assets 0.13% 0.25%
Allowance for Loan Losses to Period-
end Loans 1.40% 1.40%
Allowance for Loan Losses to
Nonperforming Loans (X) 9.46 5.79
Net Charge-offs to Average Loans
(annualized) 0.21% 0.27%
Capital Ratios:
Equity to Total Assets 6.37% 6.50%
Tangible Equity to Total Tangible Assets (3) - -
As of or for the nine months ended
September 30, September 30,
2004 2003
Per Share Data:
Basic Earnings per Share $0.34 $0.32
Diluted Earnings per Share $0.33 $0.31
Book Value per Share $7.57 $5.55
Cash dividends paid (1) $0.11 -
Selected Performance Ratios:
Return on Average Assets (annualized) 0.67% 0.56%
Return on Average Equity (annualized) 5.96% 7.76%
Return on Tangible Equity
(annualized) (2) 10.01% -
Net Interest Margin 3.32% 3.32%
Net Interest Spread 3.10% 3.10%
Non-interest Income as a % of Revenue 16.59% 19.69%
Non-interest Income as a % of Average
Assets 0.60% 0.77%
Non-interest Expense to Average
Assets 2.36% 2.69%
Efficiency Ratio 65.54% 69.12%
Asset Quality:
Nonperforming Loans $1,942 $1,201
Nonperforming Assets $2,972 $1,863
Nonperforming Loans to Total Loans 0.25% 0.24%
Nonperforming Assets to Total Assets 0.25% 0.25%
Allowance for Loan Losses to Period-end Loans 1.62% 1.40%
Allowance for Loan Losses to
Nonperforming Loans (X) 6.50 5.79
Net Charge-offs to Average Loans (annualized) 0.19% 0.32%
Capital Ratios:
Equity to Total Assets 11.24% 6.50%
Tangible Equity to Total Tangible Assets (3) 7.18% -
(1) - Amount is an annual dividend.
(2) - Return on Tangible Equity is annualized net income divided by
average equity of $129 million year-to-date and $134 million for the
quarter, less intangibles of $52 million.
(3) - Tangible Equity to Total Tangible Assets is period-ending equity
less intangibles of $52 million, divided by period-ending assets
less intangibles of $52 million.
Management provides the above non-GAAP measures, footnotes (2) and (3), to
provide readers with the impact of purchase accounting on key financial
ratios.
SOURCE Southern Community Financial Corporation
-0- 10/27/2004
/CONTACT: F. Scott Bauer, Chairman and CEO of Southern Community
Financial Corporation, +1-336-768-8500/
/Photo: NewsCom: 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
ST: North Carolina
IN: FIN
SU: ERN
PF-JK
-- CLW085 --
2027 10/27/200417:50 EDThttp://www.prnewswire.com