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WINSTON-SALEM, N.C., Oct. 21 /PRNewswire-FirstCall/ -- Southern Community Financial Corporation (Nasdaq: SCMF SCMFP) (the "Company"), the holding company for Southern Community Bank and Trust, reported operating results for the three and nine-month periods ended September 30, 2003. For the 3rd quarter ended September 30, 2003, the Company reported net income of $1,028,000, up 9.8% from $936,000 in the year ago period. Earnings per share increased 10.0% to $0.11 per diluted share as compared to $0.10 per diluted share for the 3rd quarter of 2002. As for the nine-month period ended September 30, 2003, net income rose to $2,827,000, an increase of 30.6% from $2,164,000 for the same nine-month period in 2002. On a diluted per share basis, the Company reported $0.31 as opposed to $0.24 for the nine-month period ended September 30, 2002, up 29.2%.
Significant milestones achieved during 2003:
* Announced the execution of a definitive agreement to acquire The
Community Bank;
* Total assets in excess of $750 million;
* Ranked as the 3rd largest community bank in the Piedmont Triad
(Greensboro, High Point, and Winston-Salem, NC);
* Opening of a new, thirty thousand square foot corporate office;
* Opening of a full-service office facility in High Point;
* Expanded the ATM network with three new locations (Winston-Salem at
Ernie Shore Field, Lewisville, and High Point);
* Filed a registration statement for the issuance of $30 million in Trust
Preferred securities.
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
$5.7 million, a 20.8% increase over the $4.7 million reported in the same
quarter a year ago. Year to date, net interest income rose to $15.7 million
from $12.4 million for the first nine months of 2002, a rise of 26.2%,
primarily as a result of continued growth in the loan portfolio complemented
by the Company's ability to manage its funding costs in the current interest
rate environment.
The Company continues to generate solid fee income levels leading to a
24.7% rise in non-interest income over the third quarter of 2002 totaling
$1.3 million compared to $1.0 million in the prior year period. As for the
nine months ended September 30, 2003, non-interest income was $3.9 million as
opposed to the $2.7 million reported in the corresponding period of 2002, an
increase of 45.1%. Growth in non-interest income during 2003 reflected
continued strength in fee-based services which can be attributed to an
increase in service charges on deposit accounts as well as improved
performance in the full-service brokerage and mortgage areas. Non-interest
expense for the quarter increased by 26.4% over the 3rd quarter of 2002 and
totaled $4.9 million compared to $3.9 million in the year ago period. This
increase is a product of the opening of a new corporate office as well as
continued internal growth.
As of September 30, 2003, the Company posted total assets of
$756.9 million, representing growth of $30.7 million, or 4.2% from
June 30, 2003 and an increase of $161.8 million, or 27.2% year over year
reflecting increases in the loan and investment portfolios. The Bank's loan
portfolio, net of allowance for loan losses, increased to $489.9 million, an
increase of $25.5 million, or 5.5% over the three-month period ended
June 30, 2003 and an increase of $85.4 million, or 21.1% from
September 30, 2002. Total deposits expanded to $543.9 million at September
30, 2003, an increase of $38.5 million over the prior quarter and an increase
of $95.7 million from the year ago period.
The Company's allowance for loan losses equaled $6.9 million, or 1.40% of
total loans and 579% of non-performing loans at September 30, 2003. Credit
quality metrics improved significantly as non-performing loans totaled
$1.2 million or 0.24% of total loans at quarter-end, in comparison with
$2.2 million or 0.53% of total loans as reported for September 30, 2002. Net
charge-offs at 0.27% of average loans for the 3rd quarter were down on a
consecutive quarter basis as compared to 0.41% reported in the prior quarter.
At September 30, 2003 stockholders' equity totaled $49.2 million and
represented 6.50% of total assets. Stockholders' equity increased
$2.6 million or 5.7% from $46.6 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, "We are particularly pleased with
the earnings growth we achieved in the third quarter and on a year-over-year
basis despite the adverse impact of lower interest rates on our net interest
margin. Our people delivered another solid quarter highlighted by robust loan
growth, good non-interest income, and continued strong credit quality. Also,
we are looking forward to joining together with The Community Bank team. They
are an excellent institution with a commitment to service."
Southern Community Financial is the holding company of Southern Community
Bank and Trust, a community bank with eight offices in Winston-Salem,
Clemmons, High Point, Kernersville and Yadkinville, North Carolina. Services
are also provided through "Southern eCom" internet banking and 24-hour phone
banking. Southern Community is headquartered in Winston-Salem, North
Carolina.
Southern Community Financial Corporation's common stock and convertible
trust preferred are listed on the NASDAQ National Market under the trading
symbol SCMF and SCMFP, respectively. Additional information about Southern
Community is available on its website at 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)
For the three months ended
September June March
30, 30, 31,
Income Statement 2003 2003 2003
Total Interest Income $9,338$8,801$8,370
Total Interest Expense 3,657 3,625 3,524
Net Interest Income 5,681 5,176 4,846
Provision for Loan Losses 465 685 540
Net Interest Income after Provision
for Loan Losses 5,216 4,491 4,306
Non-Interest Income
Service Charges on Deposit Accounts 399 373 297
Other Income 858 1,051 873
Gain on Sale of Securities 0 0 0
Total Non-Interest Income 1,257 1,424 1,170
Non-Interest Expense
Salaries and Employee Benefits 2,549 2,413 2,100
Occupancy and Equipment 793 776 690
Other 1,550 1,415 1,229
Total Non-Interest Expense 4,892 4,604 4,019
Income Before Taxes 1,581 1,311 1,457
Provision for Income Taxes 553 459 510
Net Income 1,028 852 947
Net Income per Share
Basic $0.12$0.10$0.11
Diluted $0.11$0.09$0.10Southern Community Financial Corporation
(Amounts in thousands except per share data)
For the three months ended
December September
31, 30,
Income Statement 2002 2002
Total Interest Income $8,917$8,656
Total Interest Expense 3,879 3,955
Net Interest Income 5,038 4,701
Provision for Loan Losses 475 400
Net Interest Income after Provision
for Loan Losses 4,563 4,301
Non-Interest Income
Service Charges on Deposit Accounts 311 277
Other Income 962 732
Gain on Sale of Securities 0 0
Total Non-Interest Income 1,273 1,009
Non-Interest Expense
Salaries and Employee Benefits 2,289 2,102
Occupancy and Equipment 665 636
Other 1,237 1,133
Total Non-Interest Expense 4,191 3,871
Income Before Taxes 1,645 1,439
Provision for Income Taxes 594 503
Net Income 1,051 936
Net Income per Share
Basic $0.12$0.11
Diluted $0.12$0.10Southern Community Financial Corporation
(Amounts in thousands except per share data)
Nine Months ended
September September
30, 30,
Income Statement 2003 2002
Total Interest Income $26,509$24,364
Total Interest Expense 10,806 11,924
Net Interest Income 15,703 12,440
Provision for Loan Losses 1,690 1,180
Net Interest Income after Provision
for Loan Losses 14,013 11,260
Non-Interest Income
Service Charges on Deposit Accounts 1,069 810
Other Income 2,782 1,775
Gain on Sale of Securities 0 69
Total Non-Interest Income 3,851 2,654
Non-Interest Expense
Salaries and Employee Benefits 7,062 5,469
Occupancy and Equipment 2,259 1,842
Other 4,194 3,278
Total Non-Interest Expense 13,515 10,589
Income Before Taxes 4,349 3,325
Provision for Income Taxes 1,522 1,161
Net Income 2,827 2,164
Net Income per Share
Basic $0.32$0.25
Diluted $0.31$0.24
For the three months ended
September June March December September
Balance Sheet 30, 30, 31, 31, 30,
2003 2003 2003 2002 2002
Assets
Cash and due from Banks $19,571$18,346$17,170$16,632$15,758
Federal Funds Sold 19,436 1,097 605 11,084 10,883
Investment Securities 189,454 205,036 126,643 136,324 132,811
Other Investments, at
cost 7,333 6,833 5,355 5,355 4,829
Loans 496,810 471,145 442,896 421,938 410,578
Allowance for Loan
Losses (6,948) (6,816) (6,603) (6,342) (6,129)
Net Loans 489,862 464,329 436,293 415,596 404,449
Bank Premises and
Equipment 18,033 18,041 16,629 15,962 15,127
Other Assets 13,171 12,439 11,363 11,286 11,221
Total Assets $756,860$726,121$614,058$612,239$595,078
Liabilities and
Stockholders' Equity
Deposits
Non-Interest Bearing 50,019 53,357 46,873 41,869 40,619
Interest Bearing 493,863 452,016 415,121 407,347 407,589
Total Deposits 543,882 505,373 461,994 449,216 448,208
Borrowings 141,475 150,980 83,436 95,706 80,000
Convertible Trust
Preferred Securities 17,250 17,250 17,250 17,250 17,250
Accrued Expenses and
Other Liabilities 5,022 3,510 3,089 2,528 3,027
Total Liabilities 707,629 677,113 565,769 564,700 548,485
Total Stockholders'
Equity 49,231 49,008 48,289 47,539 46,593
Total Liabilities and
Stockholders' Equity $756,860$726,121$614,058$612,239$595,078
Book Value per Share $5.55$5.57$5.49$5.41$5.30
As of or for the three months ended
September June March
30, 30, 31,
2003 2003 2003
Per Share Data:
Basic Earnings per Share $0.12$0.10$0.11
Diluted Earnings per Share $0.11$0.09$0.10
Book Value per Share $5.55$5.57$5.49
Selected Performance Ratios:
Return on Average Assets 0.55% 0.52% 0.64%
Return on Average Equity 8.25% 7.19% 8.00%
Net Interest Margin 3.21% 3.38% 3.48%
Net Interest Spread 3.03% 3.15% 3.21%
Non-interest Income as a % of Revenue 18.12% 21.57% 19.45%
Non-interest Income as a % of Average
Assets 0.67% 0.88% 0.79%
Non-interest Expense to Average
Assets 2.60% 2.83% 2.71%
Efficiency Ratio 70.52% 69.75% 66.81%
Asset Quality:
Nonperforming Loans $1,201$1,092$3,432
Nonperforming Assets $1,863$1,766$3,646
Nonperforming Loans to Total Loans 0.24% 0.23% 0.77%
Nonperforming Assets to Total Assets 0.25% 0.24% 0.59%
Allowance for Loan Losses to Period-
end Loans 1.40% 1.45% 1.49%
Allowance for Loan Losses to
Nonperforming Loans (X) 5.79 6.24 1.92
Net Charge-offs to Average Loans
(annualized) 0.27% 0.41% 0.26%
Capital Ratios:
Equity to Total Assets 6.50% 6.75% 7.86%
As of or for the three months ended
December September
31, 30,
2002 2002
Per Share Data:
Basic Earnings per Share $0.12$0.11
Diluted Earnings per Share $0.12$0.10
Book Value per Share $5.41$5.30
Selected Performance Ratios:
Return on Average Assets 0.69% 0.64%
Return on Average Equity 8.87% 8.25%
Net Interest Margin 3.48% 3.49%
Net Interest Spread 3.19% 3.17%
Non-interest Income as a % of Revenue 20.17% 18.79%
Non-interest Income as a % of Average
Assets 0.83% 0.69%
Non-interest Expense to Average
Assets 2.73% 2.65%
Efficiency Ratio 66.44% 67.79%
Asset Quality:
Nonperforming Loans $1,823$2,194
Nonperforming Assets $2,206$2,442
Nonperforming Loans to Total Loans 0.43% 0.53%
Nonperforming Assets to Total Assets 0.36% 0.41%
Allowance for Loan Losses to Period-
end Loans 1.50% 1.49%
Allowance for Loan Losses to
Nonperforming Loans (X) 3.48 2.79
Net Charge-offs to Average Loans
(annualized) 0.25% 0.24%
Capital Ratios:
Equity to Total Assets 7.76% 7.83%
As of or for the nine months ended
September September
30, 30,
2003 2002
Per Share Data:
Basic Earnings per Share $0.32$0.25
Diluted Earnings per Share $0.31$0.24
Book Value per Share $5.55$5.30
Selected Performance Ratios:
Return on Average Assets 0.56% 0.54%
Return on Average Equity 7.76% 6.63%
Net Interest Margin 3.32% 3.29%
Net Interest Spread 3.10% 2.96%
Non-interest Income as a % of Revenue 19.69% 17.58%
Non-interest Income as a % of Average
Assets 0.77% 0.66%
Non-interest Expense to Average
Assets 2.69% 2.64%
Efficiency Ratio 69.12% 70.15%
Asset Quality:
Nonperforming Loans $1,201$2,194
Nonperforming Assets $1,863$2,442
Nonperforming Loans to Total Loans 0.24% 0.53%
Nonperforming Assets to Total Assets 0.25% 0.41%
Allowance for Loan Losses to Period-
end Loans 1.40% 1.49%
Allowance for Loan Losses to
Nonperforming Loans (X) 5.79 2.79
Net Charge-offs to Average Loans
(annualized) 0.32% 0.15%
Capital Ratios:
Equity to Total Assets 6.50% 7.83%
SOURCE Southern Community Financial Corporation
-0- 10/21/2003
/CONTACT: F. Scott Bauer, Chairman and CEO of Southern Community
Financial Corporation, +1-336-768-8500/
/Web site: http://www.smallenoughtocare.com /
(SCMF SCMFP)
CO: Southern Community Financial Corporation
ST: North Carolina
IN: FIN
SU: ERN
JD-MG
-- CHTU022 --
4187 10/21/200313:05 EDThttp://www.prnewswire.com