EXHIBIT 99.1
StellarOne Corporation Reports Fourth Quarter Earnings and Declares Dividend
CHARLOTTESVILLE, Va., Feb. 2, 2010 (GLOBE NEWSWIRE) -- StellarOne Corporation (Nasdaq:STEL) (StellarOne) today reported fourth quarter 2009 earnings of $546 thousand and net income available to common shareholders, which deducts from net income the dividends and discount accretion on preferred stock, of $80 thousand, or $0.00 per diluted common share. Those results compare to a net loss of $845 thousand, or $(0.04) per diluted common share during the same quarter in the prior year, and a net loss to common shareholders of $9.4 million or $(0.41) per diluted common share recognized for the third quarter of this year. Net interest margin expansion and reduced provisions for loan losses contributed to the improvement in earnings for the quarter as compared to same quarter in the prior year and third quarter of 2009.
For the year ended December 31, 2009, the net loss was $8.5 million and the net loss available to common shareholders was $10.4 million, or $0.46 per common share, compared to net income of $9.4 million, or $0.45 per average common share in 2008. Key factors affecting full year 2009 results included contraction in net interest income associated with the lower interest rate environment, increased loan loss provision, related losses on foreclosed properties and securities impairments, and increased noninterest expense associated with significantly higher FDIC insurance expense.
Fourth quarter 2009 highlights include:
- Net interest income on a tax equivalent basis totaled $23.5 million for the fourth quarter of 2009, up $871 thousand or 3.5% compared to $22.7 million recorded in the third quarter of this year, and down from $25.3 million for the same quarter in the prior year.
- Margin expansion of fifteen basis points on a sequential quarter basis due largely to the approximately $304.4 million or 29.2% of the CD portfolio re-pricing during the quarter. The net interest margin was 3.45% for the fourth quarter of 2009, compared to 3.30% for the third quarter.
- Provision expense decreased to its lowest level of any quarter in 2009 as a result of decreased net charge-offs experienced during the quarter and a 4.2% reduction in non-performing loans. The provision for loan losses totaled $3.5 million for the period, which compares to a provision for loan losses of $20.1 million, $6.5 million and $7.8 million during the third, second and first quarters of 2009, respectively. These provision levels compare to net charge-offs of $4.4 million, $13.9 million, $6.9 million and $2.9 million during the same periods, respectively.
- Nonperforming assets as a percentage of total assets decreased to 2.18% at December 31, 2009, compared to 2.27% at September 30, 2009. The allowance for loan loss as a percentage of total loans remained essentially flat at 1.84% and 66.0% of non-performing loans.
- Annualized charge-offs were 0.78% for the fourth quarter of 2009, a decrease from 2.47% in the third quarter.
- Pre-tax pre-provision earnings amounted to $3.6 million for the quarter, a decrease of $1.5 million or 30.1% compared to the third quarter of 2009, and a decrease of $5.5 million or 60.7% compared to the same period prior year. Pre-tax pre-provision earnings for the fourth quarter of 2009 were impacted by losses on foreclosed assets totaling $1.8 million, other than temporary impairments of available for sale securities of $655 thousand, and higher noninterest expense due primarily to elevated levels of professional fees and compensation associated with severance payments, mortgage commissions, and stock awards.
- Continuing strong levels of capital and liquidity, with a tangible common equity ratio of 9.23%, and tier 1 risk-based and total risk-based capital ratios of 13.21% and 14.46%, respectively, at December 31, 2009.
Credit Losses Decrease and Non-performing Asset Levels Decline
StellarOne’s ratio of non-performing assets as a percentage of total assets decreased to 2.18% as of December 31, 2009, compared to 2.27% as of September 30, 2009 and increased when compared to 1.66% at December 31, 2008. Non-performing assets totaled $66.3 million at December 31, 2009, compared to $67.7 million at September 30, 2009. Non-performing loans totaled $59.3 million at December 31, 2009, or flat compared with $59.1 million at September 30, 2009. Foreclosed assets totaled $4.5 million at December 31, 2009, also improved from $5.4 million at the end of the third quarter. Annualized net charge-offs as a percentage of average loans receivable amounted to 0.78% for the fourth quarter of 2009, compared to 2.47% for the third quarter of this year and 2.22% for the same quarter in the prior year. Net charge-offs for the fourth quarter of 2009 totaled $4.4 million and were down $9.6 million compared to the $13.9 million recognized during the third quarter of this year and down $8.3 million compared to $12.6 million during the same quarter of last year.
The primary concentration of credit issues within the portfolio continues to be the residential development and construction loan segment of our portfolio, with emphasis on a concentration at Smith Mountain Lake, Virginia (SML). Of the total nonaccrual loans of $59.3 million at December 31, 2009, approximately $28.8 million are residential development and construction loans, of which approximately $18.6 million are SML related.
StellarOne recorded a provision for loan losses of $3.5 million for the fourth quarter of 2009, a decrease of $16.6 million compared to the third quarter of this year and a decrease of $7.5 million compared to the same period in the prior year. The fourth quarter 2009 provision compares to net charge-offs of $4.4 million, resulting in an allowance as a percentage of total loans of 1.84% or essentially flat when compared to 1.85% for September 30, 2009. The allowance represents 66.0% of non-performing loans at December 31, 2009, compared to 67.0% of non-performing loans at September 30, 2009.
Noninterest Income Remains Stable on a Sequential Basis
On an operating basis, which excludes gains and losses from sales and impairments of assets, total non-interest income amounted to $7.7 million for the fourth quarter of 2009, or flat compared to the third quarter, and an increase of $1.2 million or 17.8% from $6.6 million for the same period in prior year. Mortgage banking revenue totaled $2.0 million for the fourth quarter, an increase of $223 thousand or 12.5% compared to $1.8 million for the third quarter of this year, and an increase of $1.4 million or over 100% compared to the fourth quarter of the prior year. The elevated level of retail and wholesale mortgage originations reflects the continuing favorable interest rate environment. Retail banking fee income amounted to $4.2 million for the fourth quarter of 2009, a decrease of $115 thousand or 2.7% compared to $4.3 million for the third quarter of this year, primarily a result of slightly less NSF charge activity. Wealth management revenues from trust and brokerage fees for the fourth quarter of 200 9 were $1.1 million or flat compared to the third quarter of this year. Revenues from other miscellaneous income sources for the fourth quarter of 2009 were $338 thousand, up $137 thousand or 68.2% compared to $201 thousand for the third quarter of this year. This variance related principally to fluctuations in income on other investments and pass-through investments accounted for under the equity method.
Net Interest Income Increases 3.5% and Margin Expands 15 Basis Points Sequentially
Net interest income, on a tax-equivalent basis, amounted to $23.5 million for the fourth quarter, which compares to $22.7 for third quarter of this year, and $25.3 million for the same period in prior year. The net interest margin was 3.45% for the fourth quarter, compared to 3.30% for the third quarter of this year. The average yield on earning assets decreased 2 basis points to 5.09% as compared to 5.11% for the third quarter of 2009, which was substantially offset by improvement in the cost of interest bearing liabilities, which contracted 21 basis points from 2.16% during the third quarter to 1.95% during the fourth quarter of this year. The re-pricing sensitivity of interest bearing liabilities accelerated relative to interest earning assets during the fourth quarter as approximately $304.4 million or 29.2% of the CD portfolio repriced.
Noninterest Expense Increases
Non-interest expense for the fourth quarter amounted to $24.9 million, or up $2.1 million or 9.4% when compared to the $22.7 million for the third quarter of this year and up $2.8 million or 12.8% when compared to the same quarter in the prior year. This sequential increase was driven by an increase in professional fees of $645 thousand related to credit workout agreements and consulting engagements, and a $1.1 million increase in salaries and benefits associated with increased staffing, elevated mortgage commission levels, and incentives. StellarOne’s efficiency ratio was 79.22% for the fourth quarter of 2009, compared to 74.79% for the third quarter of 2009, reflecting the increase in noninterest expense.
Capital Levels Remain Strong
StellarOne’s risk-based capital ratios remain well above regulatory standards for well-capitalized banks. The period-end tangible common equity ratio was 9.23% at December 31, 2009 compared to 9.35% at September 30, 2009. Tier 1 risk-based and total risk-based capital ratios were 13.21% and 14.46%, respectively, at December 31, 2009 compared to 13.15% and 14.41% at September 30, 2009. Excluding the $30 million in preferred stock issued in connection with participation in the TARP program, StellarOne’s Tier 1 risk-based common ratio was 12.01% compared to 11.95% at September 30, 2009. Shareholder’s equity, excluding the preferred stock, represented 12.88% of total assets at December 31, while book value per common share at December 31, 2009 was $17.24 per share.
Liquidity Remains Strong While Loan and Deposit Balances Maintain Stability
Average loans for the fourth quarter of 2009 were $2.25 billion, remaining relatively flat when compared to $2.26 billion for the third quarter. Average securities were $350.2 million for the fourth quarter, up $6.0 million or 1.7% from $344.2 million for the third quarter of 2009. Average deposits for the fourth quarter were $2.41 billion, down $14.9 million or 0.6% compared to $2.43 billion for the third quarter of 2009. Average interest bearing deposits decreased approximately $16.1 million while non-interest bearing deposits increased approximately $1.1 million. Total average earning assets were $2.71 billion for the fourth quarter, or relatively flat when compared to $2.73 billion for the third quarter of 2009. At December 31, 2009, total assets were $3.03 billion, compared to $2.98 billion at September 30, 2009. Cash and cash equivalents were $152.9 million at December 31, 2009, an increase of $4.5 million or 3.0% compared to $148.4 million at September 30, 2009.
Board Declares First Quarter 2010 Dividend
StellarOne’s Board of Directors approved a quarterly cash dividend in the amount of $0.04 per share payable on February 26, 2010 to shareholders of record on February 8, 2010. The payment represents an annual yield to shareholders of approximately 1.6% based on the closing price of StellarOne stock on February 1, 2010.
About StellarOne
StellarOne Corporation is a traditional community bank, offering a full range of business and consumer banking services, including trust and wealth management services. Through the activities of its sole subsidiary, StellarOne Bank, StellarOne operates 56 full-service financial centers, one loan production office, and over 60 ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia.
Earnings Webcast
To hear a live webcast of StellarOne’s fourth quarter 2009 earnings conference call at 10:00 a.m. (ET) today, please visit our website at www.StellarOne.com and click on the Investor Relations section for detailed instructions on how to participate. Replays of the conference call will be available from 1:00 p.m. (ET) on Tuesday, February 2, 2010 through 11:59 p.m. (ET) on Monday, February 8, 2010, by dialing toll free (888) 203-1112 and using passcode #3692204.
Non-GAAP Financial Measures
This report refers to the efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis and non-interest income excluding gains or losses on securities, fixed assets, and foreclosed assets. Comparison of our efficiency ratio or operating earnings with those of other companies may not be possible because other companies may calculate them differently. It also refers to operating earnings, which reflects net income and associated performance ratios adjusted for non-recurring expenses associated with mergers, asset gains and losses or expenses that are unusual in nature. Pre-tax, pre-provision earnings, which adds back provision and tax expense to net income, is used to demonstrate a more representative comparison of operational performance without the volatility of credit quality that is typically present in times of economic stress. Such information is not in accordance with generally accepted accounting principles in the United States (GAAP) and should not be construed as such. These are non-GAAP financial measures that we believe provide investors with important information regarding our operational efficiency. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information should not be viewed as a substitute for GAAP. StellarOne, in referring to its net income, is referring to income under GAAP.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results, or those anticipated. When we use words such as “believes,” “expects,” “anticipates” or similar expressions, we are making forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date thereof. StellarOne wishes to caution the reader that factors, such as those listed below, in some cases have affected and could affect StellarOne’s actual results, causing actual results to differ materially from those in any forward-looking statement. These factors include: (i) expected cost savings from StellarOne’s acquisitions and dispositions, (ii) competitive pressure in the banking industry or in Stel larOne’s markets may increase significantly, (iii) changes in the interest rate environment may reduce margins, (iv) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, credit quality deterioration, (v) changes may occur in banking legislation and regulation, (vi) changes may occur in general business conditions, (vii) changes may occur in the securities markets, and (viii) the impact of governmental restrictions on entities participating in the US Treasury Department Capital Purchase Program. Please refer to StellarOne’s filings with the Securities and Exchange Commission for additional information, which may be accessed at www.StellarOne.com
NOTE: Risk-based capital ratios are preliminary.
SELECTED FINANCIAL DATA | ||||
StellarOne Corporation (NASDAQ: STEL) | ||||
(Dollars in thousands, except per share data) | ||||
SUMMARY INCOME STATEMENT | Three Months Ended December | Twelve Months Ended December | ||
2009 | 2008 | 2009 | 2008 | |
Interest income - taxable equivalent | $34,747 | $40,206 | $142,243 | $158,573 |
Interest expense | 11,200 | 14,869 | 50,512 | 57,821 |
Net interest income - taxable equivalent | 23,547 | 25,337 | 91,731 | 100,752 |
Less: taxable equivalent adjustment | 641 | 730 | 2,534 | 3,278 |
Net interest income | 22,906 | 24,607 | 89,197 | 97,474 |
Provision for loan and lease losses | 3,500 | 11,000 | 37,800 | 20,787 |
Net interest income after provision for loan and lease losses | 19,406 | 13,607 | 51,397 | 76,687 |
Noninterest income | 5,541 | 6,538 | 26,383 | 25,232 |
Noninterest expense | 24,875 | 22,054 | 93,904 | 88,860 |
(Benefit) provision for income taxes | (474) | (1,064) | (7,594) | 3,648 |
Net (loss) income | 546 | (845) | (8,530) | 9,411 |
Dividends and accretion on preferred stock | (378) | (53) | (1,500) | (53) |
Accretion of preferred stock discount | (88) | -- | (334) | -- |
Net income (loss) available to common shareholders | $80 | $(898) | $(10,364) | $9,358 |
Earnings (Loss) per share available to common shareholders | ||||
Basic | $0.00 | $(0.04) | $(0.46) | $0.45 |
Diluted | $0.00 | $(0.04) | $(0.46) | $0.45 |
SUMMARY AVERAGE BALANCE SHEET | Three Months Ended December | Twelve Months Ended December | ||
2009 | 2008 | 2009 | 2008 | |
Total loans | $2,246,934 | $2,280,419 | $2,270,754 | $2,120,085 |
Total securities | 350,171 | 355,929 | 333,737 | 337,983 |
Total earning assets | 2,707,923 | 2,650,566 | 2,707,714 | 2,500,555 |
Total assets | 3,029,485 | 2,993,297 | 3,031,637 | 2,810,642 |
Total deposits | 2,413,767 | 2,324,441 | 2,394,933 | 2,163,740 |
Shareholders' Equity | 422,788 | 406,768 | 428,373 | 362,902 |
PERFORMANCE RATIOS | Three Months Ended December | Twelve Months Ended December | ||
2009 | 2008 | 2009 | 2008 | |
Return on average assets | 0.07% | -0.11% | -0.28% | 0.33% |
Return on average equity | 0.52% | -0.83% | -1.99% | 2.59% |
Return on average realized equity (A) | 0.52% | -0.83% | -2.01% | 2.60% |
Net interest margin (taxable equivalent) | 3.45% | 3.80% | 3.39% | 4.03% |
Efficiency (taxable equivalent) (B) | 79.22% | 69.23% | 76.25% | 69.56% |
CAPITAL MANAGEMENT | December 31 | |||
2009 | 2008 | |||
Tier 1 risk-based capital ratio | 13.21% | 14.13% | ||
Tangible equity ratio | 10.26% | 10.79% | ||
Tangible common equity ratio | 9.23% | 9.75% | ||
Period end shares issued and outstanding | 22,661,125 | 22,605,063 | ||
Book value per common share | 17.24 | 17.85 | ||
Tangible book value per common share | 11.86 | 13.71 | ||
Three Months Ended December | Twelve Months Ended December | |||
2009 | 2008 | 2009 | 2008 | |
Shares issued | -- | 5,840 | 56,062 | 11,809,120 |
Average common shares issued and outstanding | 22,661,125 | 22,601,965 | 22,644,931 | 20,725,650 |
Average diluted common shares issued and outstanding | 22,700,405 | 22,665,604 | 22,692,423 | 20,794,127 |
Cash dividends paid per common share | $0.04 | $0.16 | $0.28 | $0.64 |
SUMMARY ENDING BALANCE SHEET | December 31 | |||
2009 | 2008 | |||
Total loans | $2,185,538 | $2,263,291 | ||
Total securities | 378,961 | 328,093 | ||
Total earning assets | 2,710,439 | 2,614,339 | ||
Total assets | 3,033,101 | 2,995,285 | ||
Total deposits | 2,436,120 | 2,323,108 | ||
Shareholders' Equity | 420,785 | 433,556 | ||
OTHER DATA | ||||
End of period full time employees | 827 | 846 | ||
NOTES: | ||||
(A) Excludes the effect on average stockholders' equity of unrealized gains (losses) that result from changes in market values of securities and other comprehensive pension expense. | ||||
(B) Computed by dividing non-interest expense by the sum of net interest income and non-interest income, net of gains, losses or impairments on securities, fixed assets and foreclosed assets. This is a non-GAAP financial measure, which we believe provides investors with important information regarding our operational efficiency. Comparison of our efficiency ratio with those of other companies may not be possible, because other companies may calculate the efficiency ratio differently. | ||||
(C) Individual amounts shown above are calculated from actual, not rounded amounts in the thousands, which appear above. |
QUARTERLY PERFORMANCE SUMMARY | |||||
StellarOne Corporation (NASDAQ: STEL) | |||||
(Dollars in thousands, except per share data) | |||||
CREDIT QUALITY | Three Months Ended December | Twelve Months Ended December | |||
2009 | 2008 | 2009 | 2008 | ||
Allowance for loan losses: | |||||
Beginning of period | $41,040 | $32,101 | $30,464 | $15,082 | |
Provision for loan losses | 3,500 | 11,000 | 37,800 | 20,787 | |
Charge-offs | (5,151) | (12,979) | (30,947) | (18,191) | |
Recoveries | 783 | 342 | 2,855 | 1,247 | |
Net charge-offs | (4,368) | (12,637) | (28,092) | (16,944) | |
Allowance acquired via acquisition | -- | -- | -- | 11,539 | |
End of period | $40,172 | $30,464 | $40,172 | $30,464 | |
Accruing Troubled Debt Restructurings | $20,680 | $-- | |||
December 31 | Twelve Months Ended December | ||||
2009 | 2008 | 2009 | 2008 | ||
Non accrual loans | $56,624 | $44,491 | |||
Non accrual TDR's | 2,678 | -- | |||
Total non-performing loans | 59,302 | 44,491 | |||
Loans past due 90 days accruing interest | 1,511 | 781 | |||
Loans held for sale | 936 | -- | |||
Foreclosed assets | 4,505 | 4,627 | |||
Total non-performing assets | $66,254 | $49,899 | |||
Nonperforming assets as a % of total assets: | 2.18% | 1.66% | |||
Nonperforming assets as a % of loans plus foreclosed assets | 3.03% | 2.17% | |||
Allowance for loan losses as a % of total loans | 1.84% | 1.35% | |||
Net charge-offs as a % of average loans outstanding | 0.78% | 2.22% | 1.24% | 0.80% | |
December 31, 2009 | |||||
Loans Outstanding | Nonaccrual Loans | Nonaccrual Loans to Loans Outstanding | |||
Commercial | |||||
Commercial & industrial | $210,594 | $7,994 | 3.80% | ||
Agriculture | 1,309 | -- | N/A | ||
Total commercial | 211,903 | 7,994 | 3.77% | ||
Commercial real estate | |||||
Construction, land development & vacant land | 274,280 | 28,816 | 10.51% | ||
Non-owner occupied | 393,747 | 1,796 | 0.46% | ||
Owner occupied | 368,502 | 5,378 | 1.46% | ||
Farmland | 22,209 | 287 | 1.29% | ||
Total commercial real estate | 1,058,738 | 36,277 | 3.43% | ||
Consumer | 39,173 | 84 | 0.21% | ||
Residential real estate | |||||
Residential | 732,786 | 13,513 | 1.84% | ||
Multi-family | 83,312 | 449 | 0.54% | ||
Home equity lines | 52,599 | 985 | 1.87% | ||
Total residential | 868,697 | 14,947 | 1.72% | ||
All other loans | 7,027 | -- | N/A | ||
Total loans | $2,185,538 | $59,302 | 2.71% |
QUARTERLY PERFORMANCE SUMMARY | ||
StellarOne Corporation (NASDAQ: STEL) | ||
(Dollars in thousands, except per share data) | ||
SELECTED BALANCE SHEET DATA | 12/31/2009 | 12/31/2008 |
Assets | ||
Cash and cash equivalents | $152,926 | $115,529 |
Securities available for sale | 378,514 | 327,173 |
Securities held to maturity | 447 | 920 |
Total securities | 378,961 | 328,093 |
Mortgage loans held for sale | 44,165 | 15,847 |
Real estate - construction | 296,489 | 380,833 |
Real estate - 1-4 family residential | 785,385 | 764,811 |
Real estate - commercial and multifamily | 845,561 | 818,565 |
Commercial, financial and agricultural | 211,903 | 225,637 |
Consumer loans | 39,173 | 60,042 |
All other loans | 7,027 | 13,403 |
Total loans | 2,185,538 | 2,263,291 |
Deferred loan costs | 969 | 1,295 |
Allowance for loan losses | (40,172) | (30,464) |
Net loans | 2,146,335 | 2,234,122 |
Premises and equipment, net | 83,546 | 89,022 |
Core deposit intangibles, net | 8,408 | 10,266 |
Goodwill | 113,652 | 113,353 |
Bank owned life insurance | 30,196 | 28,903 |
Foreclosed assets | 4,505 | 4,627 |
Other assets | 70,407 | 55,523 |
Total assets | 3,033,101 | 2,995,285 |
Liabilities | ||
Deposits: | ||
Noninterest bearing deposits | 302,009 | 307,621 |
Money market & interest checking | 961,857 | 742,212 |
Savings | 197,763 | 187,448 |
CD's and other time deposits | 974,491 | 1,085,827 |
Total deposits | 2,436,120 | 2,323,108 |
Federal funds purchased and securities sold under agreements to repurchase | 783 | 699 |
Federal Home Loan Bank advances | 130,000 | 187,700 |
Subordinated debt | 32,991 | 32,991 |
Other liabilities | 12,422 | 17,231 |
Total liabilities | 2,612,316 | 2,561,729 |
Stockholders' equity | ||
Preferred stock | 28,398 | 28,121 |
Common stock | 22,661 | 22,605 |
Additional paid-in capital | 268,965 | 268,293 |
Retained earnings | 96,947 | 113,661 |
Accumulated other comprehensive income, net | 3,814 | 876 |
Total stockholders’ equity | 420,785 | 433,556 |
Total liabilities and stockholders’ equity | $3,033,101 | $2,995,285 |
QUARTERLY PERFORMANCE SUMMARY | |||
StellarOne Corporation (NASDAQ: STEL) | |||
(Dollars in thousands) | |||
Percent | |||
For the Three Months Ended | Increase | ||
12/31/2009 | 12/31/2008 | (Decrease) | |
Interest Income | |||
Loans, including fees | $30,697 | $35,603 | -13.78% |
Federal funds sold and deposits in other banks | 51 | 93 | -45.16% |
Investment securities: | |||
Taxable | 2,236 | 2,882 | -22.41% |
Tax-exempt | 1,075 | 865 | 24.28% |
Dividends | 47 | 33 | 42.42% |
Total interest income | 34,106 | 39,476 | -13.60% |
Interest Expense | |||
Deposits | 9,615 | 12,438 | -22.70% |
Federal funds repurchased and securities sold under agreements to repurchase | 5 | 9 | -44.44% |
Federal Home Loan Bank advances and other borrowings | 1,315 | 1,873 | -29.79% |
Subordinated debt | 265 | 549 | -51.73% |
Total interest expense | 11,200 | 14,869 | -24.68% |
Net interest income | 22,906 | 24,607 | -6.91% |
Provision for loan losses | 3,500 | 11,000 | >100.00% |
Net interest income after provision for loan losses | 19,406 | 13,607 | 42.62% |
Noninterest Income | |||
Retail banking fees | 4,214 | 4,210 | 0.10% |
Commissions and fees from fiduciary activities | 722 | 725 | -0.41% |
Brokerage fee income | 336 | 316 | 6.33% |
Mortgage banking-related fees | 2,007 | 610 | >100.00% |
Gains (losses) on sale of premises and equipment | 30 | (60) | N/A |
Impairments of securities available for sale | (655) | -- | |
(Losses) gains on securities available for sale | 1 | 6 | >100.00% |
Losses on sale of foreclosed assets | (1,782) | (68) | 2520.59% |
Income from bank owned life insurance | 330 | 332 | -0.60% |
Other operating income | 338 | 467 | -27.62% |
Total noninterest income | 5,541 | 6,538 | -15.25% |
Noninterest Expense | |||
Compensation and employee benefits | 12,175 | 10,565 | 15.24% |
Net occupancy | 2,203 | 2,078 | 6.02% |
Supplies and equipment | 2,261 | 1,997 | 13.22% |
Amortization-intangible assets | 425 | 438 | -2.97% |
Marketing | 362 | 370 | -2.16% |
State franchise taxes | 574 | 556 | 3.24% |
FDIC insurance | 957 | 643 | 48.83% |
Data processing | 573 | 1,045 | -45.17% |
Professional fees | 1,254 | 164 | 664.63% |
Telecommunications | 461 | 502 | -8.17% |
Other operating expenses | 3,630 | 3,696 | -1.79% |
Total noninterest expense | 24,875 | 22,054 | 12.79% |
Income (loss) before income taxes | 72 | (1,909) | >100.00% |
Income tax benefit | (474) | (1,064) | >100.00% |
Net income (loss) | $546 | $(845) | >100.00% |
QUARTERLY PERFORMANCE SUMMARY | |||
StellarOne Corporation (NASDAQ: STEL) | |||
(Dollars in thousands) | |||
Percent | |||
For the Twelve Months Ended | Increase | ||
12/31/2009 | 12/31/2008 | (Decrease) | |
Interest Income | |||
Loans, including fees | $125,837 | $139,692 | -9.92% |
Federal funds sold and deposits in other banks | 209 | 968 | -78.41% |
Investment securities: | |||
Taxable | 9,528 | 10,921 | -12.76% |
Tax-exempt | 4,008 | 3,585 | 11.80% |
Dividends | 127 | 129 | -1.55% |
Total interest income | 139,709 | 155,295 | -10.04% |
Interest Expense | |||
Deposits | 43,483 | 47,939 | -9.30% |
Federal funds purchased and securities sold under agreements to repurchase | 16 | 73 | -78.08% |
Federal Home Loan Bank advances and other borrowings | 5,756 | 7,207 | -20.13% |
Subordinated debt | 1,257 | 1,959 | -35.83% |
Commercial paper | -- | 635 | -100.00% |
Other borrowings | -- | 8 | -100.00% |
Total interest expense | 50,512 | 57,821 | -12.64% |
Net interest income | 89,197 | 97,474 | -8.49% |
Provision for loan losses | 37,800 | 20,787 | >100.00% |
Net interest income after provision for loan losses | 51,397 | 76,687 | -32.98% |
Noninterest Income | |||
Retail banking fees | 16,367 | 14,756 | 10.92% |
Commissions and fees from fiduciary activities | 2,960 | 3,677 | -19.50% |
Brokerage fee income | 1,203 | 1,269 | -5.20% |
Mortgage banking-related fees | 7,297 | 3,446 | 111.75% |
Losses on sale of premises and equipment | (76) | (124) | -38.71% |
Impairments of securities available for sale | (2,525) | (274) | >100.00% |
Gains on securities available for sale | 45 | 186 | >100.00% |
Losses on sale of foreclosed assets | (2,580) | (2,497) | 3.32% |
Income from bank owned life insurance | 1,292 | 1,213 | 6.51% |
Other operating income | 2,400 | 3,580 | -32.96% |
Total noninterest income | 26,383 | 25,232 | 4.56% |
Noninterest Expense | |||
Compensation and employee benefits | 44,564 | 44,747 | -0.41% |
Net occupancy | 8,578 | 7,113 | 20.60% |
Supplies and equipment | 8,735 | 7,910 | 10.43% |
Amortization-intangible assets | 1,730 | 1,568 | 10.33% |
Marketing | 1,276 | 2,184 | -41.58% |
State franchise taxes | 2,318 | 2,091 | 10.86% |
FDIC insurance | 5,309 | 1,419 | >100.00% |
Data processing | 2,466 | 3,847 | -35.90% |
Professional fees | 2,856 | 2,000 | 42.80% |
Telecommunications | 1,857 | 1,761 | 5.45% |
Other operating expenses | 14,215 | 14,220 | -0.04% |
Total noninterest expense | 93,904 | 88,860 | 5.68% |
(Loss) income before income taxes | (16,124) | 13,059 | >100.00% |
Income tax (benefit) expense | (7,594) | 3,648 | >100.00% |
Net (loss) income | $(8,530) | $9,411 | >100.00% |
STELLARONE CORPORATION | ||||||
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES | ||||||
THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008 | ||||||
(Dollars in thousands) | ||||||
For the Three Months Ended December 31, | ||||||
(unaudited) | ||||||
2009 | 2008 | |||||
Average | Interest | Average | Average | Interest | Average | |
Dollars in thousands | Balance | Inc/Exp | Rates | Balance | Inc/Exp | Rates |
Assets | ||||||
Loans receivable, net | $2,246,934 | $30,759 | 5.43% | $2,280,419 | $35,725 | 6.23% |
Investment securities | ||||||
Taxable | 241,856 | 2,283 | 3.69% | 271,336 | 3,083 | 4.45% |
Tax exempt | 108,315 | 1,654 | 5.98% | 84,593 | 1,331 | 6.16% |
Total investments | 350,171 | 3,937 | 4.40% | 355,929 | 4,414 | 4.85% |
Interest bearing deposits | 44,411 | 14 | 0.12% | 926 | 10 | 4.23% |
Federal funds sold | 66,407 | 37 | 0.22% | 13,292 | 57 | 1.68% |
460,989 | 3,988 | 3.39% | 370,147 | 4,481 | 4.73% | |
Total earning assets | 2,707,923 | $34,747 | 5.09% | 2,650,566 | $40,206 | 6.03% |
Total nonearning assets | 321,562 | 342,731 | ||||
Total assets | $3,029,485 | $2,993,297 | ||||
Liabilities and Stockholders' Equity | ||||||
Interest-bearing deposits | ||||||
Interest checking | $549,036 | $1,315 | 0.95% | $503,879 | $303 | 0.24% |
Money market | 348,225 | 1,331 | 1.52% | 224,129 | 910 | 1.61% |
Savings | 197,889 | 448 | 0.90% | 192,396 | 1,853 | 3.82% |
Time deposits: | ||||||
Less than $100,000 | 673,076 | 4,177 | 2.46% | 759,215 | 6,179 | 3.23% |
$100,000 and more | 331,951 | 2,344 | 2.80% | 333,315 | 3,193 | 3.80% |
Total interest-bearing deposits | 2,100,177 | 9,615 | 1.82% | 2,012,934 | 12,438 | 2.45% |
Federal funds purchased and securities sold under agreements to repurchase | 637 | 5 | 3.18% | 2,928 | 9 | 1.20% |
Federal Home Loan Bank advances and other borrowings | 144,837 | 1,315 | 3.55% | 206,848 | 1,873 | 3.54% |
Subordinated debt | 32,991 | 265 | 3.14% | 32,991 | 549 | 6.51% |
178,465 | 1,585 | 3.48% | 242,767 | 2,431 | 3.92% | |
Total interest-bearing liabilities | 2,278,642 | 11,200 | 1.95% | 2,255,701 | 14,869 | 2.61% |
Total noninterest-bearing liabilities | 328,055 | 330,828 | ||||
Total liabilities | 2,606,697 | 2,586,529 | ||||
Stockholders' equity | 422,788 | 406,768 | ||||
Total liabilities and stockholders' equity | $3,029,485 | $2,993,297 | ||||
Net interest income (tax equivalent) | $23,547 | $25,337 | ||||
Average interest rate spread | 3.14% | 3.42% | ||||
Interest expense as percentage of average earning assets | 1.64% | 2.23% | ||||
Net interest margin | 3.45% | 3.80% |
STELLARONE CORPORATION CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008 (Dollars in thousands) | |||||||
For the Twelve Months Ended December 31, | |||||||
(unaudited) | |||||||
2009 | 2008 | ||||||
Dollars in thousands | Average Balance | InterestInc/Exp | Average Rates | Average Balance | InterestInc/Exp | Average Rates | |
Assets | |||||||
Loans receivable, net | $2,270,754 | $126,214 | 5.56% | $2,120,085 | $140,097 | 6.61% | |
Investment securities | |||||||
Taxable | 233,375 | 9,655 | 4.08% | 250,134 | 11,991 | 4.75% | |
Tax exempt | 100,362 | 6,165 | 6.06% | 87,849 | 5,517 | 6.18% | |
Total investments | 333,737 | 15,820 | 4.68% | 337,983 | 17,508 | 5.12% | |
Interest bearing deposits | 50,066 | 94 | 0.19% | 1,469 | 25 | 1.67% | |
Federal funds sold | 53,157 | 115 | 0.21% | 41,018 | 943 | 2.26% | |
436,960 | 16,029 | 3.62% | 380,470 | 18,476 | 4.80% | ||
Total earning assets | 2,707,714 | $142,243 | 5.25% | 2,500,555 | $158,573 | 6.34% | |
Total nonearning assets | 323,923 | 310,087 | |||||
Total assets | $3,031,637 | $2,810,642 | |||||
Liabilities and Stockholders' Equity | |||||||
Interest-bearing deposits | |||||||
Interest checking | $531,627 | $5,243 | 0.99% | $453,780 | $6,137 | 1.35% | |
Money market | 293,211 | 4,407 | 1.50% | 195,061 | 3,488 | 1.78% | |
Savings | 193,127 | 1,709 | 0.88% | 183,323 | 2,087 | 1.14% | |
Time deposits: | |||||||
Less than $100,000 | 735,645 | 21,233 | 2.89% | 699,543 | 23,154 | 3.30% | |
$100,000 and more | 330,277 | 10,891 | 3.30% | 326,407 | 13,073 | 3.99% | |
Total interest-bearing deposits | 2,083,887 | 43,483 | 2.09% | 1,858,114 | 47,939 | 2.57% | |
Federal funds purchased and securities sold under agreements to repurchase | 501 | 16 | 3.15% | 4,297 | 73 | 1.67% | |
Federal Home Loan Bank advances and other borrowings | 160,904 | 5,756 | 3.53% | 205,810 | 7,207 | 3.44% | |
Subordinated debt | 32,991 | 1,257 | 3.76% | 30,861 | 1,959 | 6.25% | |
Commercial paper | -- | -- | N/A | 24,371 | 635 | 2.56% | |
Other borrowings | -- | -- | N/A | 343 | 8 | 2.29% | |
194,396 | 7,029 | 3.57% | 265,682 | 9,882 | 3.66% | ||
Total interest-bearing liabilities | 2,278,283 | 50,512 | 2.22% | 2,123,796 | 57,821 | 2.71% | |
Total noninterest-bearing liabilities | 324,981 | 323,944 | |||||
Total liabilities | 2,603,264 | 2,447,740 | |||||
Stockholders' equity | 428,373 | 362,902 | |||||
Total liabilities and stockholders' equity | $3,031,637 | $2,810,642 | |||||
Net interest income (tax equivalent) | $91,731 | $100,752 | |||||
Average interest rate spread | 3.04% | 3.63% | |||||
Interest expense as percentage of average earning assets | 1.87% | 2.31% | |||||
Net interest margin | 3.39% | 4.03% |
CONTACT: Jeffrey W. Farrar, Executive Vice President and Chief Financial Officer of StellarOne Corporation (434) 964-2217 JFarrar@StellarOne.com