ASB Bancorp, Inc. Reports Third Quarter Results
ASHEVILLE, N.C., Oct. 30, 2012 /PRNewswire/ -- ASB Bancorp,
Inc. (the "Company") (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the "Bank"), announced today its
operating results for the three and nine month periods ended
September 30, 2012. The Company
reported net income of $457,000 for
the quarter ended September 30, 2012
compared to net income of $571,000
for the same quarter of 2011. Net income totaled $627,000 for the nine months ended September 30, 2012 compared to $1.9 million for the same period of 2011.
On a basic and diluted per share basis, the Company had net income
of $0.09 per share and $0.12 per share for the three and nine month
periods ended September 30, 2012,
respectively, while it had no shares outstanding during the three
and nine month periods ended September 30,
2011.
(Logo:
http://photos.prnewswire.com/prnh/20111031/CL96775LOGO )
"We are encouraged by recent trends in our asset quality,
particularly with the decrease in the levels of nonperforming
loans," said Suzanne S. DeFerie,
President and Chief Executive Officer. "Our focus for
subsequent quarters will be to aggressively reduce the levels of
foreclosed real estate and to implement strategies for improvement
in our net interest margin."
Third Quarter Highlights
- Net income for the third quarter of 2012 was $457,000, or $0.09
per basic and diluted share.
- Third quarter 2012 earnings and book value per share
improved over the previous three quarters.
- Nonperforming loans decreased $5.5
million, to $12.7 million at
September 30, 2012 from
$18.2 million at June 30, 2012.
- Nonperforming assets decreased $2.5 million to $24.3
million, or 3.15% of total assets, at
September 30, 2012 from
$26.8 million, or 3.36% of total
assets, at June 30, 2012 and
have improved in each quarter of 2012.
- Core deposits, or deposits excluding time deposits,
increased $3.7 million to
$379.2 million at
September 30, 2012 from $375.5 million at June 30,
2012 and have increased in each of the previous
four quarters. Since December 31,
2011, non-interest-bearing deposits increased
$11.5 million, or 21.2%
Balance Sheet Review
Assets. Total assets decreased $18.5 million, or 2.3%, to $772.4 million at September 30, 2012 from $790.9 million at December
31, 2011. Cash and cash equivalents decreased $21.7 million, or 30.1%, to $50.6 million at September
30, 2012 from $72.3 million at
December 31, 2011. Investment
securities increased $32.1 million,
or 12.9%, to $281.2 million at
September 30, 2012 from $249.1 million at December
31, 2011, primarily due to the reinvestment into investment
securities of proceeds from loan repayments and
prepayments. Loans receivable, net of deferred fees,
decreased $30.2 million, or 7.0%, to
$402.7 million at September 30, 2012 from $432.9 million at December
31, 2011 as loan repayments, prepayments, and foreclosures
exceeded new loan originations.
Liabilities. Total deposits decreased $21.6 million, or 3.5%, to $586.7 million at September 30, 2012 from $608.2 million at December
31, 2011. During the nine months ended September 30, 2012, the Company continued its
focus on core deposits, from which it excludes certificates of
deposit. Core deposits increased $29.5
million, or 8.4%, to $379.2
million at September 30, 2012
from $349.7 million at December 31, 2011. Non-interest-bearing deposits
increased $11.5 million, or 21.2%, to
$65.6 million at September 30, 2012 from $54.1 million at December
31, 2011. Over the same period, certificates of deposit
decreased $51.1 million, or 19.8%, to
$207.4 million at September 30, 2012 from $258.5 million at December
31, 2011. Accounts payable and other liabilities increased
$1.8 million, or 28.0%, to
$8.1 million at September 30, 2012 from $6.3 million at December
31, 2011.
Asset Quality
Provision for Loan Losses. The provision for loan
losses was $542,000 for the three
months ended September 30, 2012
compared to $730,000 for the three
months ended September 30, 2011. The
decrease in the provision was due to the combination of fewer
charge-offs in the loan portfolio, a decline in impaired loans, and
lower loan balances. The allowance for loan losses totaled
$10.2 million, or 2.54% of total
loans, at September 30, 2012 compared
to $10.6 million, or 2.45% of total
loans, at December 31, 2011. The
Company charged off $1.9 million in
loans during the three months ended September 30, 2012 compared to $2.2 million during the three months ended
September 30, 2011.
The provision for loan losses was $2.4
million for the nine months ended September 30, 2012 compared to $1.8 million for the nine months ended
September 30, 2011. The increase in
the provision was due to an increase in specific reserves for
collateral dependent impaired loans during the quarter ended
June 30, 2012 that resulted from a
decline in the value of the real estate collateral securing the
impaired loans. Loan charge-offs totaled $3.0 million for the first nine months of 2012
compared to $3.8 million for the
first nine months of 2011.
Nonperforming assets. Nonperforming assets totaled
$24.3 million, or 3.15% of total
assets, at September 30, 2012,
compared to $28.7 million, or 3.63%
of total assets, at December 31,
2011. Nonperforming assets included $12.7 million in nonperforming loans and
$11.6 million in foreclosed real
estate at September 30, 2012,
compared to $20.6 million and
$8.1 million, respectively, at
December 31, 2011.
Nonperforming loans decreased $7.9
million, or 38.3%, to $12.7
million at September 30, 2012
from $20.6 million at December 31, 2011. The decrease in
nonperforming loans from December 31,
2011 to September 30, 2012 was
primarily attributable to loans moving to foreclosed real estate,
charge-offs and loan payments, which were partially offset by the
addition of new loans that stopped performing during the period. At
September 30, 2012, nonperforming
loans included one $10.1 million
commercial land development relationship, two commercial mortgages
that totaled $1.3 million, three
commercial and industrial loans that totaled $145,000, ten residential mortgage loans that
totaled $1.0 million, and three home
equity loans that totaled $155,000.
As of September 30, 2012, the
nonperforming loans had specific reserves of $940,000.
As of September 30, 2012, the
Bank's largest nonperforming loan relationship was comprised of one
primary loan for the construction of a mixed-use retail, commercial
office, and residential condominium project located in western
North Carolina and one debtor in
possession loan that the Bank purchased in the second quarter of
2012 in order to secure its senior lien position. The loans totaled
$10.1 million as of September 30, 2012 and were considered impaired
and nonaccruing. The Bank established a $948,000 specific reserve in the second quarter
of 2012 based on an updated appraisal, which was subsequently
charged-off in the third quarter of 2012. The Bank is in the
process of foreclosure. The project has eight retail condominiums
of which four have been leased, 11 commercial office condominiums
of which three have sold, and 29 residential condominiums of which
one has sold.
Foreclosed real estate at September 30,
2012 included 17 properties with a total carrying value of
$11.6 million compared to 18
properties with a total carrying value of $8.1 million at December
31, 2011. During the nine months ended September 30, 2012, in addition to an increase of
$554,000 to the loss provision, there
were eleven new properties totaling $6.3
million added to foreclosed real estate, while thirteen
properties totaling $2.3 million were
sold.
Income Statement Analysis
Net Interest Income. Net interest income
decreased by $431,000, or 8.6%, to
$4.6 million for the three months
ended September 30, 2012 compared to
$5.0 million for the three months
ended September 30, 2011. Total
interest and dividend income decreased by $1.0 million, or 14.4%, to $6.1 million for the three months ended
September 30, 2012 compared to
$7.1 million for the three months
ended September 30, 2011, primarily
as a result of a 65 basis point decrease in yields on
interest-earning assets and a $47.2
million decrease in average loan balances that partially
offset a $72.3 million increase in
the average balances of all other interest-earning assets,
including investments. The decline in total interest and dividend
income was partially offset by a $593,000, or 28.0%, decrease in interest expense
to $1.5 million for the three months
ended September 30, 2012 compared to
$2.1 million for the three months
ended September 30, 2011. The
decrease in interest expense resulted from a 31 basis point
reduction in the average rate paid on interest-bearing liabilities
and a decline of $39.2 million in the
average balances of interest-bearing liabilities comparing the
three month periods.
Net interest income decreased by $1.6
million, or 10.4%, to $13.8
million for the nine months ended September 30, 2012 compared to $15.4 million for the nine months ended
September 30, 2011. Total interest
and dividend income decreased by $3.0
million, or 13.8%, to $19.0
million for the nine months ended September 30, 2012 compared to $22.1 million for the nine months ended
September 30, 2011, primarily as a
result of a 76 basis point decrease in yields on interest-earning
assets and a $57.3 million decrease
in average loan balances that partially offset a $99.3 million increase in the average balances of
all other interest-earning assets, including investments. The
decline in total interest and dividend income was partially offset
by a $1.4 million, or 21.7%, decrease
in interest expense to $5.2 million
for the nine months ended September 30,
2012 compared to $6.6 million
for the nine months ended September 30,
2011. The decrease in interest expense resulted from a 25
basis point reduction in the average rate paid on interest-bearing
liabilities and a decline of $28.1
million in the average balances of interest-bearing
liabilities comparing the nine month periods.
Noninterest Income. Noninterest income
increased $443,000, or 22.5%, to
$2.4 million for the three months
ended September 30, 2012 from
$2.0 million for the three months
ended September 30, 2011. Factors
that contributed to the increase in noninterest income during the
2012 period were increases of $469,000 in gains from the sale of investment
securities, $150,000 in mortgage
banking income, and $56,000 from
debit card services, which were partially offset by decreases of
$126,000 in fees from deposits and
other services and $106,000 in loan
fees. The increase in investment security gains resulted
primarily from the Bank's efforts to better position its portfolio
for rising rates, while the increase in mortgage banking income was
attributable to higher volumes of mortgage loans sold. The decrease
in deposit and other service charge income was primarily the result
of lower deposit overdraft fees.
Noninterest income increased $863,000 to $6.4
million for the nine months ended September 30, 2012 from $5.5 million for the nine months ended
September 30, 2011. Factors
that contributed to the increase in noninterest income during the
2012 period were increases of $1.1
million in gains from the sale of investment securities,
$402,000 in mortgage banking income
and $77,000 in debit card services,
which were partially offset by decreases of $352,000 in fees from deposits and other
services, $244,000 in loan fees, and
$96,000 in other investment income.
The increase in investment security gains resulted primarily from
the Bank's efforts to better position its portfolio for rising
rates, while the increase in mortgage banking income was
attributable to higher volumes of mortgage loans sold. The decrease
in deposit and other service charge income was primarily the result
of lower deposit overdraft fees.
Noninterest Expense. Noninterest expenses
increased $447,000, or 8.4%, to
$5.8 million for the three months
ended September 30, 2012 compared to
$5.3 million for the three months
ended September 30, 2011. The primary
factors affecting the increase were increases of $220,000 in salaries and employee benefits,
$124,000 in other noninterest
expenses, $83,000 in FDIC insurance
premiums, $60,000 in advertising
expenses, $37,000 in data processing
fees, and $32,000 in professional
services, which were partially offset by a decrease of $104,000 in foreclosed property expenses. The
increase in salaries and benefits was primarily due to $112,000 in expenses related to the Bank's new
employee stock ownership plan, and increases of $57,000 in compensation expenses and $51,000 in payroll taxes and other benefit plan
expenses. The increase in other noninterest expenses was primarily
attributable to increased expenses related to holding company and
public company compliance and reporting.
Noninterest expenses increased $739,000, or 4.6%, to $16.9 million for the nine months ended
September 30, 2012 compared to
$16.2 million for the nine months
ended September 30, 2011. The primary
factors affecting the increase were increases of $767,000 in salaries and benefits, $320,000 in other noninterest expenses, and
$82,000 in professional services,
which were partially offset by decreases of $318,000 in foreclosed property expenses,
$94,000 in FDIC insurance premiums,
and $63,000 in occupancy
expense. The increase in salaries and benefits was primarily
due to an increase of $310,000 in
expenses related to the Bank's new employee stock ownership plan, a
$285,000 increase in compensation
expenses, and an increase of $172,000
in payroll taxes and other benefit plan expenses. The increase in
other noninterest expenses was primarily attributable to increased
expenses related to holding company and public company compliance
and reporting.
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
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|
Chief
Executive Officer
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|
(828)
254-7411
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|
|
|
|
|
|
Selected Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
(dollars in thousands)
|
|
|
|
|
|
2012
|
|
2011*
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
$
772,407
|
|
$
790,868
|
|
-2.3%
|
Cash and
cash equivalents
|
|
|
|
|
|
50,583
|
|
72,327
|
|
-30.1%
|
Investment
securities
|
|
|
|
|
|
281,166
|
|
249,081
|
|
12.9%
|
Loans
receivable, net of deferred fees
|
|
|
|
402,724
|
|
432,883
|
|
-7.0%
|
Allowance
for loan losses
|
|
|
|
|
|
(10,220)
|
|
(10,627)
|
|
3.8%
|
Deposits
|
|
|
|
|
|
|
|
586,686
|
|
608,236
|
|
-3.5%
|
Core
deposits
|
|
|
|
|
|
|
|
379,237
|
|
349,695
|
|
8.4%
|
FHLB
advances
|
|
|
|
|
|
|
|
60,000
|
|
60,000
|
|
0.0%
|
Accounts
payable and other liabilities
|
|
|
|
8,068
|
|
6,303
|
|
28.0%
|
Total
equity
|
|
|
|
|
|
|
|
117,225
|
|
115,571
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|
1.4%
|
____________________
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* Derived
from audited consolidated financial statements.
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Selected Operating Data
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(dollars in thousands,
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Three
Months Ended
|
|
Nine
Months Ended
|
except
shares outstanding
|
September 30,
|
|
September 30,
|
and per
share data)
|
2012
|
|
2011*
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|
%
change
|
|
2012
|
|
2011*
|
|
%
change
|
|
|
|
|
|
|
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Interest
and
|
|
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|
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dividend income
|
|
$
6,088
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|
$
7,112
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-14.4%
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$
19,025
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$
22,067
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|
-13.8%
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Interest
expense
|
|
1,527
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|
2,120
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|
-28.0%
|
|
5,189
|
|
6,629
|
|
-21.7%
|
Net
interest income
|
4,561
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|
4,992
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-8.6%
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|
13,836
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|
15,438
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-10.4%
|
Provision
for loan losses
|
542
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|
730
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-25.8%
|
|
2,433
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|
1,811
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|
34.3%
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Net
interest income
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|
|
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|
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|
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|
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after provision for
|
|
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|
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|
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loan losses
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|
4,019
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|
4,262
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|
-5.7%
|
|
11,403
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|
13,627
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-16.3%
|
Noninterest income
|
2,416
|
|
1,973
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|
22.5%
|
|
6,373
|
|
5,510
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15.7%
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Noninterest expense
|
5,760
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|
5,313
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|
8.4%
|
|
16,914
|
|
16,175
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|
4.6%
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Income
before
|
|
|
|
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|
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|
|
income tax
|
|
|
|
|
|
|
|
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|
|
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provision
|
|
675
|
|
922
|
|
-26.8%
|
|
862
|
|
2,962
|
|
-70.9%
|
Income
tax
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
218
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|
351
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-37.9%
|
|
235
|
|
1,064
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|
-77.9%
|
Net
income
|
|
$
457
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|
$
571
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|
-20.0%
|
|
$
627
|
|
$
1,898
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|
-67.0%
|
|
|
|
|
|
|
|
|
|
|
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Net income
per
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|
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common share:
|
|
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Basic
|
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$
0.09
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n/a
|
|
n/a
|
|
$
0.12
|
|
n/a
|
|
n/a
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Diluted
|
|
$
0.09
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|
n/a
|
|
n/a
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|
$
0.12
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|
n/a
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|
n/a
|
Average
shares outstanding:
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Basic
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5,164,688
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n/a
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|
n/a
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|
5,156,885
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|
n/a
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|
n/a
|
Diluted
|
|
5,164,688
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|
n/a
|
|
n/a
|
|
5,156,885
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n/a
|
|
n/a
|
____________________
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* Certain amounts for prior periods were
reclassified to conform to the September 30, 2012
presentation.
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Selected Average Balances and
Yields/Costs
|
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For the
Three Months Ended September 30,
|
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2012
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2011
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Average
|
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Yield/
|
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Average
|
|
Yield/
|
(dollars in thousands)
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
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Cost
|
|
|
|
|
|
|
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|
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|
|
|
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Interest-earning deposits with banks
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$
51,135
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|
0.33%
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$
29,898
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|
0.20%
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Loans
receivable
|
|
|
|
|
|
413,221
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4.63%
|
|
460,388
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|
4.94%
|
Investment
securities
|
|
|
|
77,783
|
|
2.02%
|
|
75,322
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|
2.43%
|
Mortgage-backed and similar securities
|
|
202,744
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|
1.72%
|
|
154,145
|
|
2.38%
|
Other
interest-earning assets
|
|
|
|
3,879
|
|
1.64%
|
|
3,912
|
|
0.91%
|
Interest-bearing deposits
|
|
|
|
528,345
|
|
0.69%
|
|
567,206
|
|
1.06%
|
Federal
Home Loan Bank advances
|
|
60,000
|
|
4.04%
|
|
60,000
|
|
4.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread
|
|
|
|
|
|
|
2.23%
|
|
|
|
2.57%
|
Net
interest margin
|
|
|
|
|
|
|
2.45%
|
|
|
|
2.75%
|
|
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|
|
|
|
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|
|
|
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|
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|
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|
|
For the
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(dollars in thousands)
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks
|
|
$
60,472
|
|
0.34%
|
|
$
22,388
|
|
0.23%
|
Loans
receivable
|
|
|
|
|
|
421,472
|
|
4.70%
|
|
478,748
|
|
5.05%
|
Investment
securities
|
|
|
|
69,799
|
|
2.13%
|
|
70,286
|
|
2.57%
|
Mortgage-backed and similar securities
|
|
200,102
|
|
2.02%
|
|
138,316
|
|
2.55%
|
Other
interest-earning assets
|
|
|
|
3,878
|
|
1.62%
|
|
3,942
|
|
0.88%
|
Interest-bearing deposits
|
|
|
|
542,043
|
|
0.83%
|
|
569,550
|
|
1.13%
|
Federal
Home Loan Bank advances
|
|
60,000
|
|
4.04%
|
|
60,000
|
|
4.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread
|
|
|
|
|
2.24%
|
|
|
|
2.75%
|
Net
interest margin
|
|
|
|
|
2.47%
|
|
|
|
2.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset Quality Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Nine
Months Ended
|
Allowance for Loan Losses
|
|
September 30,
|
|
September 30,
|
(dollars in thousands)
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, beginning of period
|
$
11,563
|
|
$
12,353
|
|
$
10,627
|
|
$
12,676
|
Provision
for loan losses
|
|
|
|
542
|
|
730
|
|
2,433
|
|
1,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
(1,902)
|
|
(2,233)
|
|
(3,000)
|
|
(3,818)
|
Recoveries
|
|
|
|
|
|
17
|
|
23
|
|
160
|
|
204
|
Net
charge-offs
|
|
|
|
|
|
(1,885)
|
|
(2,210)
|
|
(2,840)
|
|
(3,614)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, end of period
|
|
$
10,220
|
|
$
10,873
|
|
$
10,220
|
|
$
10,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percent of:
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
|
|
2.54%
|
|
2.41%
|
|
2.54%
|
|
2.41%
|
Total nonperforming loans
|
|
|
|
80.32%
|
|
94.02%
|
|
80.32%
|
|
94.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
(dollars in thousands)
|
|
|
|
|
|
2012
|
|
2011
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans:
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing Loans (1)
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial construction and land development
|
|
$
10,054
|
|
$
14,695
|
|
-31.6%
|
Commercial mortgage
|
|
|
|
|
|
1,344
|
|
833
|
|
61.3%
|
Commercial and industrial
|
|
|
|
|
|
145
|
|
2,595
|
|
-94.4%
|
Total commercial
|
|
|
|
|
|
|
11,543
|
|
18,123
|
|
-36.3%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
Non-commercial construction and land development
|
|
-
|
|
110
|
|
-100.0%
|
Residential mortgage
|
|
|
|
|
|
1,003
|
|
1,922
|
|
-47.8%
|
Revolving mortgage
|
|
|
|
|
|
155
|
|
440
|
|
-64.8%
|
Consumer
|
|
|
|
|
|
|
|
23
|
|
27
|
|
-14.8%
|
Total non-commercial
|
|
|
|
|
|
1,181
|
|
2,499
|
|
-52.7%
|
Total
nonaccruing loans (1)
|
|
|
|
|
|
12,724
|
|
20,622
|
|
-38.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans past due 90 or more days
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming loans
|
|
|
|
|
|
12,724
|
|
20,622
|
|
-38.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed
real estate
|
|
|
|
|
|
11,600
|
|
8,125
|
|
42.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
nonperforming assets
|
|
|
|
|
|
24,324
|
|
28,747
|
|
-15.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
troubled debt restructurings (2)
|
|
|
|
5,156
|
|
1,142
|
|
351.5%
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets
|
|
|
|
|
|
$
29,480
|
|
$
29,889
|
|
-1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percent of total
loans
|
|
3.16%
|
|
4.76%
|
|
|
Nonperforming assets as a percent of total
assets
|
|
3.15%
|
|
3.63%
|
|
|
Performing
troubled debt restructurings and
|
|
|
|
|
|
|
|
|
total nonperforming assets to total assets
|
|
|
|
3.82%
|
|
3.78%
|
|
|
____________________
|
(1)
Nonaccruing loans include nonaccruing troubled debt
restructurings.
|
(2)
Performing troubled debt restructurings exclude nonaccruing
troubled debt restructurings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate by Loan Type
|
|
September 30, 2012
|
|
December 31, 2011
|
(dollars in thousands)
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
foreclosed loan type:
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
|
|
2
|
|
$
2,730
|
|
3
|
|
$
3,045
|
Commercial
construction and land development
|
9
|
|
7,631
|
|
5
|
|
3,259
|
Residential mortgage
|
|
|
|
3
|
|
691
|
|
7
|
|
1,373
|
Residential construction and land
development
|
2
|
|
245
|
|
3
|
|
448
|
Revolving
mortgage
|
|
|
|
1
|
|
303
|
|
-
|
|
-
|
Total
|
|
|
|
|
|
17
|
|
$
11,600
|
|
18
|
|
$
8,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real Estate
|
|
|
|
Nine
Months Ended
|
|
|
|
|
(dollars in thousands)
|
September
30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
$
8,125
|
|
|
|
|
Transfers
from loans
|
|
|
|
|
|
6,336
|
|
|
|
|
Loss
provisions
|
|
|
|
|
|
|
|
(554)
|
|
|
|
|
Loss on
sale of foreclosed properties
|
|
|
|
(32)
|
|
|
|
|
Net
proceeds from sales of foreclosed properties
|
|
(2,275)
|
|
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
$
11,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
|
|
|
0.23%
|
|
0.30%
|
|
0.11%
|
|
0.34%
|
Return on
average equity (1)
|
|
|
|
1.55%
|
|
3.37%
|
|
0.72%
|
|
3.88%
|
Interest
rate spread (1)(2)
|
|
|
|
2.23%
|
|
2.57%
|
|
2.24%
|
|
2.75%
|
Net
interest margin (1)(3)
|
|
|
|
2.45%
|
|
2.75%
|
|
2.47%
|
|
2.90%
|
Noninterest expense to average assets (1)
|
|
2.93%
|
|
2.77%
|
|
2.87%
|
|
2.88%
|
Efficiency
ratio (4)
|
|
81.90%
|
|
76.01%
|
|
83.15%
|
|
76.97%
|
____________________
|
(1) Ratios
are annualized.
|
(2)
Represents the difference between the weighted average yield on
average interest-earning assets and the
|
weighted average cost of
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Periods Ended
|
|
|
(dollars in thousands, except
shares
|
September 30,
|
|
June
30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
outstanding and per share data)
|
|
2012
|
|
2012*
|
|
2012*
|
|
2011*
|
|
2011*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
$
6,088
|
|
$
6,398
|
|
$
6,539
|
|
$
6,783
|
|
$
7,112
|
|
|
Interest
expense
|
|
|
|
1,527
|
|
1,743
|
|
1,919
|
|
2,013
|
|
2,120
|
|
|
Net
interest income
|
|
4,561
|
|
4,655
|
|
4,620
|
|
4,770
|
|
4,992
|
|
|
Provision
for loan losses
|
|
542
|
|
1,293
|
|
598
|
|
1,974
|
|
730
|
|
|
Net
interest income after
|
|
|
|
|
|
|
|
|
|
|
|
|
provision for loan losses
|
|
4,019
|
|
3,362
|
|
4,022
|
|
2,796
|
|
4,262
|
|
|
Noninterest income
|
|
2,416
|
|
1,999
|
|
1,958
|
|
1,896
|
|
1,973
|
|
|
Noninterest expense
|
|
5,760
|
|
5,588
|
|
5,566
|
|
5,879
|
|
5,313
|
|
|
Income
(loss) before income
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
provision (benefit)
|
|
675
|
|
(227)
|
|
414
|
|
(1,187)
|
|
922
|
|
|
Income tax
provision (benefit)
|
|
218
|
|
(113)
|
|
130
|
|
(476)
|
|
351
|
|
|
Net income
(loss)
|
|
|
|
$
457
|
|
$
(114)
|
|
$
284
|
|
$
(711)
|
|
$
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share – Basic
|
$
0.09
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
|
n/a
|
|
|
Net income
(loss) per share – Diluted
|
$
0.09
|
|
$
(0.02)
|
|
$
0.06
|
|
$
(0.14)
|
|
n/a
|
|
|
Book value
per share
|
|
$
20.99
|
|
$
20.79
|
|
$
20.66
|
|
$
20.69
|
|
n/a
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
5,164,688
|
|
5,156,843
|
|
5,149,039
|
|
5,141,462
|
|
n/a
|
|
|
Diluted
|
|
|
|
5,164,688
|
|
5,156,843
|
|
5,149,039
|
|
5,141,462
|
|
n/a
|
|
|
Ending
shares outstanding
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
5,584,551
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
(dollars in thousands)
|
|
2012
|
|
2012
|
|
2012
|
|
2011**
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
$
772,407
|
|
$
798,667
|
|
$
796,901
|
|
$
790,868
|
|
$
798,748
|
|
|
Cash and
cash equivalents
|
|
50,583
|
|
73,475
|
|
80,087
|
|
72,327
|
|
75,402
|
|
|
Investment
securities
|
|
281,166
|
|
284,671
|
|
264,782
|
|
249,081
|
|
235,285
|
|
|
Loans
receivable, net of deferred fees
|
402,724
|
|
409,140
|
|
416,307
|
|
432,883
|
|
450,263
|
|
|
Allowance
for loan losses
|
|
(10,220)
|
|
(11,563)
|
|
(10,562)
|
|
(10,627)
|
|
(10,873)
|
|
|
Deposits
|
|
|
|
586,686
|
|
606,022
|
|
610,242
|
|
608,236
|
|
615,555
|
|
|
Core
deposits
|
|
|
|
379,237
|
|
375,478
|
|
359,350
|
|
349,695
|
|
347,859
|
|
|
Escrowed
stock order funds
|
|
-
|
|
-
|
|
-
|
|
-
|
|
49,063
|
|
|
FHLB
advances
|
|
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
60,000
|
|
|
Total
equity
|
|
|
|
117,225
|
|
116,079
|
|
115,360
|
|
115,571
|
|
67,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
|
$
12,724
|
|
$
18,232
|
|
$
18,063
|
|
$
20,622
|
|
$
11,565
|
|
|
Nonperforming assets
|
|
24,324
|
|
26,847
|
|
27,198
|
|
28,747
|
|
22,262
|
|
|
Nonperforming loans to total loans
|
3.16%
|
|
4.46%
|
|
4.34%
|
|
4.76%
|
|
2.57%
|
|
|
Nonperforming assets to total assets
|
3.15%
|
|
3.36%
|
|
3.41%
|
|
3.63%
|
|
2.79%
|
|
|
Allowance
for loan losses
|
|
$
10,220
|
|
$
11,563
|
|
$
10,562
|
|
$
10,627
|
|
$
10,873
|
|
|
Allowance
for loan losses to total loans
|
2.54%
|
|
2.83%
|
|
2.54%
|
|
2.45%
|
|
2.41%
|
|
|
Allowance
for loan losses to
|
|
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans
|
|
80.32%
|
|
63.42%
|
|
58.47%
|
|
51.53%
|
|
94.02%
|
|
|
____________________
|
* Certain amounts for prior periods were
reclassified to conform to the September 30, 2012
presentation.
|
** Ending
balance sheet data as of December 31, 2011 were derived from
audited consolidated financial statements.
|
SOURCE ASB Bancorp, Inc.