EXHIBIT 99.1
StellarOne Corporation Announces Second Quarter Earnings of $1.6 Million
CHARLOTTESVILLE, Va., July 21, 2010 (GLOBE NEWSWIRE) -- StellarOne Corporation (Nasdaq:STEL) (StellarOne) today reported second quarter 2010 earnings of $1.6 million and net income available to common shareholders, which deducts from net income the dividends and discount accretion on preferred stock, of $1.1 million, or $0.05 net income per diluted common share. Those results compare to a net loss to common shareholders of $785 thousand, or $0.03 loss per diluted common share during the same quarter in the prior year, and net income to common shareholders of $1.4 million or $0.06 per diluted common share recognized for the first quarter of 2010. Strong noninterest income contributions from all business segments offset higher loan loss provisioning and losses on foreclo sed assets, resulting in an earnings level comparable to the first quarter.
Second quarter 2010 key components include:
- Increased fee income from mortgage banking, retail banking and wealth management contributed to a $938 thousand or 11.6% sequential quarter increase in noninterest income on an operating basis.
- Net interest margin expanded another seven basis points on a sequential quarter basis due largely to continued core deposit re-pricing, which reduced the associated cost of funds by 19 basis points.
- Loans past due between 30 and 89 days were down $17.8 million or 30.1% on a sequential quarter basis, while nonperforming assets as a percentage of total assets increased to 2.36% at June 30, 2010, compared with 2.07% at March 31, 2010.
- Pre-tax, pre-provision earnings amounted to $8.8 million for the second quarter, an increase of $42 thousand or 0.5% compared to the first quarter of 2010, and an increase of $3.1 million or 54.8% compared to the same period in the prior year. First quarter 2010 results included $1.1 million in gains on sale of assets.
- The second quarter provision for loan losses totaled $7.4 million compared to net charge-offs of $6.5 million. This compares to a provision for loan losses of $6.5 million for the second quarter in 2009 and $6.7 million in the first quarter of 2010, respectively.
- Annualized charge-offs were 1.19% for the second quarter of 2010, compared to 1.20% for the corresponding quarter in the prior year and up from 1.13% for the first quarter of 2010.
Operating Noninterest Income Rises Sequentially
On an operating basis, which excludes gains and losses from sales and impairments of securities and other assets, total non-interest income amounted to $8.4 million for the second quarter of 2010, or up $624 thousand or 8.1% on a sequential basis compared to the first quarter of 2010, and an increase of $269 thousand or 3.3% from $8.1 million for the same period in prior year. Mortgage banking revenue totaled $2.1 million for the second quarter of 2010, or up $90 thousand or 4.6% compared to $2.0 million for the first quarter of 2010 and is down $30 thousand or 1.5% when compared to the same quarter in 2009. Mortgage revenues and profitability were impacted by approximately $539 thousand in indemnification losses that were recorded through losses on foreclosed assets in the second quarter of 2010. Retail banking fee income amounted to $4.3 million for the second quarter of 2010, an increase of $374 thousand or 9.6% compared to $3.9 million for the first quarter of 2010. This sequential quarter in crease was attributable to increases of approximately $211 thousand and $129 thousand in debit card fee income and NSF charge activity, respectively. Wealth management revenues from trust and brokerage fees for the first quarter of 2010 were $1.3 million or up $79 thousand or 6.6% when compared to $1.2 million realized during the first quarter of 2010. Total noninterest income contracted on a sequential basis largely due to the $1.1 million nonrecurring gains recognized on the sale of a financial services center and investment securities during the first quarter of 2010.
Net Interest Margin Continues to Expand While Earning Assets Remain Stable
Net interest income, on a tax-equivalent basis, amounted to $23.8 million for the second quarter of 2010, which compares to $23.1 million for the first quarter of 2010, and $22.6 million for the same period in prior year. The net interest margin was 3.59% for the second quarter, compared to 3.52% for the first quarter of 2010 and 3.31% for the second quarter of 2009. The average yield on earning assets decreased 11 basis points to 4.93% as compared to 5.04% for the first quarter of 2010, which was offset by improvement in the cost of interest bearing liabilities, which contracted 19 basis points from 1.78% during the first quarter of this year to 1.59% during the second quarter of 2010. The re-pricing sensitivity of interest bearing liabilities outpaced interest earning assets during the second quarter as approximately $230.8 million or 25.1% of the CD portfolio re-priced, while cost of funds associated with interest checking and money market accounts was reduced by 34 basis points and 19 basis points, resp ectively. Average earning assets remained flat sequentially, with average earnings assets of $2.66 billion and $2.67 billion at June 30, 2010 and March 31, 2010, respectively. While earning assets sequentially were flat overall, loans decreased $35.8 million on a sequential quarter basis. This decrease was attributable to both consumers and businesses reducing the level of debt within the economy and the company's continuing conscious effort to reduce it's exposure to construction lending.
Past Due Loans Contract While Non-performing Asset Levels Increase
StellarOne's past due loans between 30 and 89 days totaled $41.4 million at June 30, 2010 or down $17.8 million or 30.1% compared to $59.3 million at March 31, 2010. While a favorable reduction in past dues, there was some migration to non-performing assets. Non-performing loans totaled $64.1 million at June 30, 2010, up $4.9 million or 8.3% when compared to $59.2 million at March 31, 2010 and down $8.9 million or 12.2% compared to $73.0 at June 30, 2009. Non-performing assets totaled $70.6 million at June 30, 2010, up $8.5 million or 13.8% from $62.0 million at March 31, 2010 and were down $6.5 million or 8.5% compared to $77.1 million at June 30, 2009. Foreclosed assets totaled $6.0 million, up $3.7 million or greater than 100% compared to $2.3 million at March 31, 2010 and up $1.8 million or 44.5% compared to June 30, 2009. The ratio of non-performing assets as a percentage of total assets increased sequentially to 2.36% as of June 30, 2010, compared to 2.07% as of March 31, 2010, and decreased compared to 2.49% at June 30, 2009. Annualized net charge-offs as a percentage of average loans receivable amounted to 1.19% for the second quarter of 2010, down compared to 2.22% for the full-year 2009 results and up slightly from 1.13% for the first quarter of 2010. Net charge-offs for the second quarter of 2010 totaled $6.5 million or up $241 thousand compared to the $6.2 million realized during the first quarter of 2010 and down $427 thousand or 6.2% when compared to $6.9 million during the second quarter of 2009.
The mix of non-performing loans continues to be weighted to the residential development and construction loan segment of our portfolio. Of the total nonaccrual loans of $64.1 million at June 30, 2010, approximately $30.7 million are residential development and construction loans, of which approximately $13.8 million are located at Smith Mountain Lake, Virginia. The non-performing loans at Smith Mountain Lake are down $2.4 million from first quarter of 2010, and total real estate exposure at Smith Mountain Lake has now been reduced to under $30 million from a peak level over $50 million at merger consummation in 2008.
StellarOne recorded a provision for loan losses of $7.4 million for the second quarter of 2010, a decrease of $629 thousand compared to same period in the prior year and up $650 thousand on a sequential quarter basis. The second quarter 2010 provision compares to net charge-offs of $6.5 million, resulting in an allowance as a percentage of total loans of 1.95% or up seven basis points when compared to 1.88% for March 31, 2010. The allowance represents 64.8% of non-performing loans at June 30, 2010, or down 3.9% when compared to 68.7% at March 31, 2010.
Efficiency Ratio Decreases Sequentially
StellarOne's efficiency ratio was 69.35% for the second quarter of 2010, compared to 77.58% for the second quarter of 2009 and 72.23% for the first quarter of 2010. The decrease in the efficiency ratio reflects a decrease in noninterest expense when comparing the current quarter to the second quarter of 2009 and an increase in core earnings when comparing the ratio sequentially. Non-interest expense for the first quarter amounted to $22.8 million, or up $244 thousand or 1.1% when compared to the $22.5 million for the first quarter of 2010 and down $1.3 million or 5.3% when compared to the second quarter in 2009. The small sequential increase was driven by increases in FDIC insurance expense of $213 thousand, marketing expense of $166 thousand and professional fees of $66 thousand which were offset by reductions in salaries and benefits of $214 thousand and net occupancy of $139 thousand. Other expenses also increased on a sequential basis as DDA charge-offs and foreclosed asset expenses both increased slightly.
Earnings Retention Adds to Existing Strong Capital Base
StellarOne's risk-based capital ratios remain well above regulatory standards for well-capitalized banks. The period-end tangible common equity ratio was 9.57% at June 30, 2010 compared to 9.40% at March 31, 2010. Tier 1 risk-based and total risk-based capital ratios were 13.95% and 15.20%, respectively, at June 30, 2010 compared to 13.67% and 14.93% at March 31, 2010. 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 12.67% compared to 12.40% at March 31, 2010. Shareholder's equity, excluding the preferred stock, represented 13.24% of total assets at June 30, 2010, while book value per common share was $17.39 per share.
Balance Sheet Continues To Be Liquid and Stable
Average loans for the second quarter of 2010 were $2.17 billion, or down approximately 1.6% when compared to $2.20 billion for the first quarter of 2010. Average securities were $372.9 million for the second quarter, up $7.4 million or 2.0% from $365.6 million for the first quarter of 2009. Average deposits for the second quarter of 2010 were $2.39 billion or down slightly from $2.40 billion on a sequential quarter basis. Average interest bearing deposits decreased sequentially by approximately $15.5 million while non-interest bearing deposits increased approximately $5.3 million. At June 30, 2010, total assets were $2.99 billion, compared to $3.00 billion at March 31, 2010. Cash and cash equivalents were $126.3 million at June 30, 2010, a decrease of $39.1 million or 23.7% compared to $165.4 million at March 31, 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 a suite of 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 first quarter 2010 earnings conference call at 11:00 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 2:00 p.m. (ET) on Wednesday, July 21, 2010 through midnight (ET) on Wednesday, July 28, 2010, by dialing toll free (800) 642-1687 and using passcode #87757750.
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 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. The tangible common equity and Tier 1 common equity ratios are used by management to assess the quality of capital and management believes that i nvestors may find them useful in their analysis of the company. These capital measures are not necessarily comparable to similar capital measures that may be presented by other companies. 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 StellarOne's markets may increase significantly, (iii) changes in t he 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 June | Six Months Ended June | ||
2010 | 2009 | 2010 | 2009 | |
Interest income - taxable equivalent | $ 32,755 | $ 35,821 | $ 65,851 | $ 72,363 |
Interest expense | 8,932 | 13,259 | 18,914 | 26,839 |
Net interest income - taxable equivalent | 23,823 | 22,562 | 46,937 | 45,524 |
Less: taxable equivalent adjustment | 605 | 631 | 1,220 | 1,194 |
Net interest income | 23,218 | 21,931 | 45,717 | 44,330 |
Provision for loan and lease losses | 7,350 | 6,500 | 14,050 | 14,250 |
Net interest income after provision for | ||||
loan and lease losses | 15,868 | 15,431 | 31,667 | 30,080 |
Noninterest income | 8,380 | 7,815 | 17,195 | 14,943 |
Noninterest expense | 22,791 | 24,057 | 45,338 | 46,280 |
Income tax (benefit) expense | (96) | (485) | 116 | (1,077) |
Net income (loss) | 1,553 | (326) | 3,408 | (180) |
Dividends and accretion on preferred stock | (374) | (374) | (744) | (744) |
Accretion of preferred stock discount | (91) | (85) | (179) | (159) |
Net income (loss) available to common shareholders | $ 1,088 | $ (785) | $ 2,485 | $ (1,083) |
Earnings (Loss) per share available to common shareholders | ||||
Basic | $ 0.05 | $ (0.03) | $ 0.11 | $ (0.05) |
Diluted | $ 0.05 | $ (0.03) | $ 0.11 | $ (0.05) |
SUMMARY AVERAGE BALANCE SHEET | Three Months Ended June | Six Months Ended June | ||
2010 | 2009 | 2010 | 2009 | |
Total loans | $ 2,168,536 | $ 2,291,735 | $ 2,186,318 | $ 2,288,118 |
Total securities | 372,921 | 327,224 | 369,259 | 319,287 |
Total earning assets | 2,664,297 | 2,729,485 | 2,665,572 | 2,696,336 |
Total assets | 2,984,954 | 3,052,806 | 2,991,928 | 3,021,964 |
Total deposits | 2,392,502 | 2,407,444 | 2,394,933 | 2,368,201 |
Shareholders' equity | 425,043 | 429,703 | 423,659 | 431,232 |
PERFORMANCE RATIOS | Three Months Ended June | Six Months Ended June | ||
2010 | 2009 | 2010 | 2009 | |
Return on average assets | 0.21% | -0.04% | 0.23% | -0.01% |
Return on average equity | 1.47% | -0.30% | 1.62% | -0.08% |
Return on average realized equity (A) | 1.49% | -0.30% | 1.64% | -0.08% |
Net interest margin (taxable equivalent) | 3.59% | 3.31% | 3.55% | 3.40% |
Efficiency (taxable equivalent) (B) | 69.35% | 77.58% | 70.75% | 75.67% |
CAPITAL MANAGEMENT | June 30, | |||
2010 | 2009 | |||
Tier 1 risk-based capital ratio | 13.95% | 13.28% | ||
Tangible equity ratio | 10.62% | 10.27% | ||
Tangible common equity ratio | 9.57% | 9.27% | ||
Period end shares issued and outstanding | 22,742,034 | 22,652,792 | ||
Book value per common share | 17.39 | 17.59 | ||
Tangible book value per common share | 12.06 | 12.16 | ||
Three Months Ended June | Six Months Ended June | |||
2010 | 2009 | 2010 | 2009 | |
Shares issued | 57,218 | 22,156 | 80,909 | 47,729 |
Average common shares issued and outstanding | 22,716,350 | 22,641,114 | 22,695,536 | 22,630,323 |
Average diluted common shares issued and outstanding | 22,785,511 | 22,691,158 | 22,758,404 | 22,693,721 |
Cash dividends paid per common share | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.20 |
SUMMARY ENDING BALANCE SHEET | June 30, | |||
2010 | 2009 | |||
Total loans | $ 2,128,003 | $ 2,240,113 | ||
Total securities | 413,141 | 353,967 | ||
Total earning assets | 2,669,388 | 2,778,355 | ||
Total assets | 2,987,785 | 3,095,687 | ||
Total deposits | 2,387,496 | 2,449,338 | ||
Shareholders' equity | 425,440 | 428,478 | ||
OTHER DATA | ||||
End of period full time equivalent employees | 830 | 831 | ||
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) | ||||
CREDIT QUALITY | Three Months Ended June | Six Months Ended June | ||
2010 | 2009 | 2010 | 2009 | |
Allowance for loan losses: | ||||
Beginning of period | $ 40,644 | $ 35,319 | $ 40,172 | $ 30,464 |
Provision for loan losses | 7,350 | 6,500 | 14,050 | 14,250 |
Charge-offs | (7,154) | (7,783) | (13,862) | (11,225) |
Recoveries | 685 | 887 | 1,165 | 1,434 |
Net charge-offs | (6,469) | (6,896) | (12,697) | (9,791) |
End of period | $ 41,525 | $ 34,923 | $ 41,525 | $ 34,923 |
Accruing Troubled Debt Restructurings | $ 33,918 | $ 5,519 | ||
June 30, | Six Months Ended June | |||
2010 | 2009 | 2010 | 2009 | |
Non accrual loans | $ 61,495 | $ 71,590 | ||
Non accrual TDR's | 2,595 | 1,405 | ||
Total non-performing loans | 64,090 | 72,995 | ||
Loans held for sale | 527 | -- | ||
Foreclosed assets | 5,953 | 4,121 | ||
Total non-performing assets | $ 70,570 | $ 77,116 | ||
Nonperforming assets as a % of total assets | 2.36% | 2.49% | ||
Nonperforming assets as a % of loans plus | ||||
foreclosed assets | 3.31% | 3.44% | ||
Allowance for loan losses as a % of total loans | 1.95% | 1.56% | ||
Net charge-offs as a % of average loans outstanding | 1.19% | 1.20% | 1.16% | 0.86% |
June 30, 2010 | |||
Loans Outstanding | Nonaccrual Loans | Nonaccrual Loans to Loans Outstanding | |
Commercial: | |||
Commercial & industrial | $ 192,753 | $ 8,664 | 4.49% |
Agriculture | 891 | -- | N/A |
Total commercial | 193,644 | 8,664 | 4.47% |
Commercial real estate: | |||
Construction, land development & vacant land | 259,674 | 30,684 | 11.82% |
Non-owner occupied | 400,926 | 6,168 | 1.54% |
Owner occupied | 351,819 | 3,109 | 0.88% |
Farmland | 18,764 | 212 | 1.13% |
Total commercial real estate | 1,031,183 | 40,173 | 3.90% |
Consumer | 35,236 | 33 | 0.09% |
Residential real estate: | |||
Residential | 732,646 | 13,939 | 1.90% |
Multi-family | 81,323 | 443 | 0.54% |
Home equity lines | 46,842 | 692 | 1.48% |
Total residential | 860,811 | 15,074 | 1.75% |
All other loans | 7,129 | 146 | 2.05% |
Total loans | $ 2,128,003 | $ 64,090 | 3.01% |
QUARTERLY PERFORMANCE SUMMARY | |||
STELLARONE CORPORATION (Nasdaq:STEL) | |||
(Dollars in thousands, except per share data) | |||
Percent | |||
Increase | |||
SELECTED BALANCE SHEET DATA | 6/30/2010 | 6/30/2009 | (Decrease) |
Assets | |||
Cash and cash equivalents | $126,280 | $184,390 | -31.51% |
Securities: | |||
Securities available for sale | 413,141 | 353,517 | 16.87% |
Securities held to maturity | -- | 450 | -100.00% |
Total securities | 413,141 | 353,967 | 16.72% |
Mortgage loans held for sale | 42,265 | 51,229 | -17.50% |
Loans: | |||
Real estate - construction | 278,438 | 344,694 | -19.22% |
Real estate - 1-4 family residential | 779,488 | 777,167 | 0.30% |
Real estate - commercial and multifamily | 834,068 | 832,469 | 0.19% |
Commercial, financial and agricultural | 193,644 | 220,557 | -12.20% |
Consumer loans | 35,236 | 50,783 | -30.61% |
All other loans | 7,129 | 14,443 | -50.64% |
Total loans | 2,128,003 | 2,240,113 | -5.00% |
Deferred loan costs | 940 | 984 | -4.47% |
Allowance for loan losses | (41,525) | (34,923) | 18.90% |
Net loans | 2,087,418 | 2,206,174 | -5.38% |
Premises and equipment, net | 80,129 | 85,837 | -6.65% |
Core deposit intangibles, net | 7,487 | 9,393 | -20.29% |
Goodwill | 113,652 | 113,652 | 0.00% |
Bank owned life insurance | 30,846 | 29,538 | 4.43% |
Foreclosed assets | 5,953 | 4,121 | 44.46% |
Other assets | 80,614 | 57,386 | 40.48% |
Total assets | 2,987,785 | 3,095,687 | -3.49% |
Liabilities | |||
Deposits: | |||
Noninterest bearing deposits | 303,409 | 318,879 | -4.85% |
Money market & interest checking | 963,962 | 849,277 | 13.50% |
Savings | 232,134 | 191,686 | 21.10% |
CD's and other time deposits | 887,991 | 1,089,496 | -18.50% |
Total deposits | 2,387,496 | 2,449,338 | -2.52% |
Federal funds purchased and securities | |||
sold under agreements to repurchase | 1,040 | 503 | >100.00% |
Federal Home Loan Bank advances | 120,000 | 170,000 | -29.41% |
Subordinated debt | 32,991 | 32,991 | 0.00% |
Other liabilities | 20,818 | 14,377 | 44.80% |
Total liabilities | 2,562,345 | 2,667,209 | -3.93% |
Stockholders' equity | |||
Preferred stock | 28,577 | 28,224 | 1.25% |
Common stock | 22,742 | 22,653 | 0.39% |
Additional paid-in capital | 269,630 | 268,690 | 0.35% |
Retained earnings | 97,606 | 108,045 | -9.66% |
Accumulated other comprehensive income, net | 6,885 | 866 | >100.00% |
Total stockholders' equity | 425,440 | 428,478 | -0.71% |
Total liabilities and stockholders' equity | $2,987,785 | $3,095,687 | -3.49% |
QUARTERLY PERFORMANCE SUMMARY | |||
STELLARONE CORPORATION (Nasdaq:STEL) | |||
(Dollars in thousands) | |||
Percent | |||
For the Three Months Ended | Increase | ||
6/30/2010 | 6/30/2009 | (Decrease) | |
Interest Income | |||
Loans, including fees | $ 28,850 | $ 31,694 | -8.97% |
Federal funds sold and deposits in other banks | 70 | 52 | 34.62% |
Investment securities: | |||
Taxable | 2,170 | 2,416 | -10.18% |
Tax-exempt | 1,029 | 972 | 5.86% |
Dividends | 31 | 56 | -44.64% |
Total interest income | 32,150 | 35,190 | -8.64% |
Interest Expense | |||
Deposits | 7,603 | 11,360 | -33.07% |
Federal funds purchased and securities sold under | |||
agreements to repurchase | 7 | 3 | >100.00% |
Federal Home Loan Bank advances and other borrowings | 1,059 | 1,558 | -32.03% |
Subordinated debt | 263 | 338 | -22.19% |
Total interest expense | 8,932 | 13,259 | -32.63% |
Net interest income | 23,218 | 21,931 | 5.87% |
Provision for loan losses | 7,350 | 6,500 | 13.08% |
Net interest income after provision for loan losses | 15,868 | 15,431 | 2.83% |
Noninterest Income | |||
Retail banking fees | 4,294 | 4,113 | 4.40% |
Commissions and fees from fiduciary activities | 845 | 744 | 13.58% |
Brokerage fee income | 426 | 245 | 73.88% |
Mortgage banking-related fees | 2,054 | 2,083 | -1.39% |
Losses on sale of premises and equipment | -- | (289) | >100.00% |
Gains on securities available for sale | 19 | 11 | 72.73% |
Losses on sale of foreclosed assets | (679) | (355) | 91.27% |
Income from bank owned life insurance | 327 | 331 | -1.21% |
Other operating income | 1,094 | 932 | 17.38% |
Total noninterest income | 8,380 | 7,815 | 7.23% |
Noninterest Expense | |||
Compensation and employee benefits | 11,096 | 10,836 | 2.40% |
Net occupancy | 2,040 | 2,163 | -5.69% |
Supplies and equipment | 2,152 | 2,265 | -4.99% |
Amortization-intangible assets | 413 | 434 | -4.84% |
Marketing | 319 | 388 | -17.78% |
State franchise taxes | 554 | 574 | -3.48% |
FDIC insurance | 1,322 | 2,088 | -36.69% |
Data processing | 565 | 645 | -12.40% |
Professional fees | 741 | 489 | 51.53% |
Telecommunications | 420 | 477 | -11.95% |
Other operating expenses | 3,169 | 3,698 | -14.31% |
Total noninterest expense | 22,791 | 24,057 | -5.26% |
Income (loss) before income taxes | 1,457 | (811) | >100.00% |
Income tax benefit | (96) | (485) | >100.00% |
Net income (loss) | $ 1,553 | $ (326) | >100.00% |
QUARTERLY PERFORMANCE SUMMARY | |||
STELLARONE CORPORATION (Nasdaq:STEL) | |||
(Dollars in thousands) | |||
Percent | |||
For the Six Months Ended | Increase | ||
6/30/2010 | 6/30/2009 | (Decrease) | |
Interest Income | |||
Loans, including fees | $ 57,936 | $ 64,186 | -9.74% |
Federal funds sold and deposits in other banks | 131 | 84 | 55.95% |
Investment securities: | |||
Taxable | 4,428 | 4,988 | -11.23% |
Tax-exempt | 2,076 | 1,820 | 14.07% |
Dividends | 60 | 91 | -34.07% |
Total interest income | 64,631 | 71,169 | -9.19% |
Interest Expense | |||
Deposits | 16,210 | 23,011 | -29.56% |
Federal funds purchased and securities sold under | |||
agreements to repurchase | 13 | 7 | 85.71% |
Federal Home Loan Bank advances and other borrowings | 2,169 | 3,121 | -30.50% |
Subordinated debt | 522 | 700 | -25.43% |
Total interest expense | 18,914 | 26,839 | -29.53% |
Net interest income | 45,717 | 44,330 | 3.13% |
Provision for loan losses | 14,050 | 14,250 | -1.40% |
Net interest income after provision for loan losses | 31,667 | 30,080 | 5.28% |
Noninterest Income | |||
Retail banking fees | 8,214 | 7,824 | 4.98% |
Commissions and fees from fiduciary activities | 1,678 | 1,502 | 11.72% |
Brokerage fee income | 785 | 498 | 57.63% |
Mortgage banking-related fees | 4,016 | 3,507 | 14.51% |
Gain on sale of financial center | 748 | -- | >100.00% |
Gains (losses) on sale of premises and equipment | 27 | (90) | >100.00% |
Gains on securities available for sale | 321 | 13 | >100.00% |
Losses on sale of foreclosed assets | (1,043) | (620) | 68.23% |
Income from bank owned life insurance | 651 | 635 | 2.52% |
Other operating income | 1,798 | 1,674 | 7.41% |
Total noninterest income | 17,195 | 14,943 | 15.07% |
Noninterest Expense | |||
Compensation and employee benefits | 22,406 | 21,362 | 4.89% |
Net occupancy | 4,219 | 4,254 | -0.82% |
Supplies and equipment | 4,330 | 4,406 | -1.72% |
Amortization-intangible assets | 825 | 872 | -5.39% |
Marketing | 473 | 628 | -24.68% |
State franchise taxes | 1,108 | 1,170 | -5.30% |
FDIC insurance | 2,432 | 3,193 | -23.83% |
Data processing | 1,108 | 1,502 | -26.23% |
Professional fees | 1,416 | 993 | 42.60% |
Telecommunications | 846 | 944 | -10.38% |
Other operating expenses | 6,175 | 6,956 | -11.23% |
Total noninterest expense | 45,338 | 46,280 | -2.04% |
Income (loss) before income taxes | 3,524 | (1,257) | >100.00% |
Income tax expense (benefit) | 116 | (1,077) | >100.00% |
Net income (loss) | $ 3,408 | $ (180) | >100.00% |
STELLARONE CORPORATION (Nasdaq:STEL) | ||||||
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES | ||||||
THREE MONTHS ENDED JUNE 30, 2010 AND 2009 | ||||||
(Dollars in thousands) | ||||||
For the Three Months Ended June 30, | ||||||
(unaudited) | ||||||
2010 | 2009 | |||||
Average | Interest | Average | Average | Interest | Average | |
Dollars in thousands | Balance | Inc/Exp | Rates | Balance | Inc/Exp | Rates |
Assets | ||||||
Loans receivable, net | $ 2,168,536 | $ 28,901 | 5.35% | $ 2,291,735 | $ 31,801 | 5.57% |
Investment securities | ||||||
Taxable | 268,782 | 2,201 | 3.24% | 230,102 | 2,472 | 4.25% |
Tax exempt | 104,139 | 1,583 | 6.01% | 97,122 | 1,496 | 6.09% |
Total investments | 372,921 | 3,784 | 4.01% | 327,224 | 3,968 | 4.80% |
Interest bearing deposits | 60,854 | 30 | 0.20% | 51,966 | 21 | 0.16% |
Federal funds sold | 61,986 | 40 | 0.26% | 58,560 | 31 | 0.21% |
495,761 | 3,854 | 3.07% | 437,750 | 4,020 | 3.64% | |
Total earning assets | 2,664,297 | $ 32,755 | 4.93% | 2,729,485 | $ 35,821 | 5.26% |
Total nonearning assets | 320,657 | 323,321 | ||||
Total assets | $ 2,984,954 | $ 3,052,806 | ||||
Liabilities and Stockholders' Equity | ||||||
Interest-bearing deposits | ||||||
Interest checking | $ 571,920 | $ 902 | 0.63% | $ 524,408 | $ 1,255 | 0.96% |
Money market | 389,863 | 1,120 | 1.15% | 275,534 | 1,047 | 1.52% |
Savings | 224,076 | 482 | 0.86% | 191,788 | 420 | 0.88% |
Time deposits: | ||||||
Less than $100,000 | 615,084 | 3,311 | 2.16% | 794,180 | 5,926 | 2.99% |
$100,000 and more | 290,634 | 1,788 | 2.47% | 305,297 | 2,712 | 3.56% |
Total interest-bearing deposits | 2,091,577 | 7,603 | 1.46% | 2,091,207 | 11,360 | 2.18% |
Federal funds purchased and securities sold under agreements to repurchase | 950 | 7 | 2.91% | 464 | 3 | 2.56% |
Federal Home Loan Bank advances and other borrowings | 122,913 | 1,059 | 3.41% | 170,067 | 1,553 | 3.61% |
Subordinated debt | 32,991 | 263 | 3.15% | 32,991 | 343 | 4.11% |
156,854 | 1,329 | 3.35% | 203,522 | 1,899 | 3.69% | |
Total interest-bearing liabilities | 2,248,431 | 8,932 | 1.59% | 2,294,729 | 13,259 | 2.31% |
Total noninterest-bearing liabilities | 311,480 | 328,374 | ||||
Total liabilities | 2,559,911 | 2,623,103 | ||||
Stockholders' equity | 425,043 | 429,703 | ||||
Total liabilities and stockholders' equity | $ 2,984,954 | $ 3,052,806 | ||||
Net interest income (tax equivalent) | $ 23,823 | $ 22,562 | ||||
Average interest rate spread | 3.34% | 2.95% | ||||
Interest expense as percentage of average earning assets | 1.34% | 1.95% | ||||
Net interest margin | 3.59% | 3.31% |
STELLARONE CORPORATION (Nasdaq:STEL) | ||||||
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES | ||||||
SIX MONTHS ENDED JUNE 30, 2010 AND 2009 | ||||||
(Dollars in thousands) | ||||||
For the Six Months Ended June 30, | ||||||
(unaudited) | ||||||
2010 | 2009 | |||||
Average | Interest | Average | Average | Interest | Average | |
Dollars in thousands | Balance | Inc/Exp | Rates | Balance | Inc/Exp | Rates |
Assets | ||||||
Loans receivable, net | $ 2,186,318 | $ 58,038 | 5.35% | $ 2,288,118 | $ 64,400 | 5.68% |
Investment securities | ||||||
Taxable | 264,353 | 4,488 | 3.38% | 228,873 | 5,078 | 4.41% |
Tax exempt | 104,906 | 3,194 | 6.06% | 90,414 | 2,801 | 6.16% |
Total investments | 369,259 | 7,682 | 4.14% | 319,287 | 7,879 | 4.91% |
Interest bearing deposits | 52,503 | 58 | 0.22% | 50,885 | 40 | 0.16% |
Federal funds sold | 57,492 | 73 | 0.25% | 38,046 | 44 | 0.23% |
479,254 | 7,813 | 3.24% | 408,218 | 7,963 | 3.88% | |
Total earning assets | 2,665,572 | $ 65,851 | 4.98% | 2,696,336 | $ 72,363 | 5.41% |
Total nonearning assets | 326,356 | 325,628 | ||||
Total assets | $ 2,991,928 | $ 3,021,964 | ||||
Liabilities and Stockholders' Equity | ||||||
Interest-bearing deposits | ||||||
Interest checking | $ 565,395 | $ 2,234 | 0.80% | $ 520,463 | $ 2,652 | 1.03% |
Money market | 391,046 | 2,414 | 1.24% | 255,453 | 1,877 | 1.48% |
Savings | 212,136 | 931 | 0.89% | 190,103 | 830 | 0.88% |
Time deposits: | ||||||
Less than $100,000 | 629,318 | 6,887 | 2.21% | 778,506 | 11,986 | 3.10% |
$100,000 and more | 301,406 | 3,744 | 2.50% | 314,643 | 5,666 | 3.63% |
Total interest-bearing deposits | 2,099,301 | 16,210 | 1.56% | 2,059,168 | 23,011 | 2.25% |
Federal funds purchased and securities sold under agreements to repurchase | 906 | 13 | 2.85% | 405 | 7 | 3.44% |
Federal Home Loan Bank advances and other borrowings | 125,028 | 2,169 | 3.45% | 177,155 | 3,121 | 3.50% |
Subordinated debt | 32,991 | 522 | 3.15% | 32,991 | 700 | 4.22% |
158,925 | 2,704 | 3.38% | 210,551 | 3,828 | 3.62% | |
Total interest-bearing liabilities | 2,258,226 | 18,914 | 1.69% | 2,269,719 | 26,839 | 2.38% |
Total noninterest-bearing liabilities | 310,043 | 321,013 | ||||
Total liabilities | 2,568,269 | 2,590,732 | ||||
Stockholders' equity | 423,659 | 431,232 | ||||
Total liabilities and stockholders' equity | $ 2,991,928 | $ 3,021,964 | ||||
Net interest income (tax equivalent) | $ 46,937 | $ 45,524 | ||||
Average interest rate spread | 3.29% | 3.03% | ||||
Interest expense as percentage of average earning assets | 1.43% | 2.01% | ||||
Net interest margin | 3.55% | 3.40% |
STELLARONE CORPORATION (Nasdaq:STEL) | ||||
FINANCIAL INFORMATION - FOUR QUARTER TREND | ||||
(Dollars in thousands, except per share data) | ||||
Quarter Ended | ||||
June 30, | March 31, | December 31, | September 30, | |
2010 | 2010 | 2009 | 2009 | |
Interest income | 32,150 | 32,481 | 34,106 | 34,433 |
Interest expense | 8,932 | 9,982 | 11,200 | 12,473 |
Net interest income | 23,218 | 22,499 | 22,906 | 21,960 |
Provision for loan losses | 7,350 | 6,700 | 3,500 | 20,050 |
Total net interest income after provision | 15,868 | 15,799 | 19,406 | 1,910 |
Non interest income | 8,380 | 8,814 | 5,540 | 5,900 |
Non interest expense | 22,791 | 22,547 | 24,875 | 22,748 |
Income (loss) before income taxes | 1,457 | 2,066 | 71 | (14,938) |
Income tax (benefit) expense | (96) | 212 | (474) | (6,043) |
Net income (loss) | 1,553 | 1,854 | 545 | (8,895) |
Preferred stock dividends | (374) | (370) | (378) | (378) |
Accretion of preferred stock discount | (91) | (88) | (88) | (86) |
Net income (loss) available to common shareholders | 1,088 | 1,396 | 79 | (9,359) |
Net income (loss) per share | ||||
basic | 0.05 | 0.06 | -- | (0.42) |
diluted | 0.05 | 0.06 | -- | (0.42) |
STELLARONE CORPORATION (Nasdaq:STEL) | |||||
SEGMENT INFORMATION | |||||
(Dollars in thousands) | |||||
At and for the Three Months Ended June 30, 2010 (In thousands): | |||||
Commercial | Mortgage | Wealth | |||
Bank | Banking | Management | Other | Consolidated | |
Net interest income (expense) | $ 23,152 | $ 330 | $ -- | $ (264) | $ 23,218 |
Provision for loan losses | 7,350 | -- | -- | -- | 7,350 |
Noninterest income | 6,413 | 1,532 | 1,271 | 212 | 8,380 |
Noninterest expense | 20,681 | 1,674 | 961 | 523 | 22,791 |
Provision for income taxes | 14 | 56 | 93 | (259) | (96) |
Net income (loss) | $ 1,520 | $ 132 | $ 217 | $ (316) | $ 1,553 |
Total Assets | $ 2,925,753 | $ 43,564 | $ 668 | $ 462,512 | $ 2,987,785 |
Average Assets | $ 2,935,076 | $ 31,839 | $ 325 | $ (278,686) | $ 2,984,954 |
At and for the Three Months Ended June 30, 2009 (In thousands): | |||||
Commercial | Mortgage | Wealth | |||
Bank | Banking | Management | Other | Consolidated | |
Net interest income (expense) | $ 21,793 | $ 476 | $ -- | $ (338) | $ 21,931 |
Provision for loan losses | 6,500 | -- | -- | -- | 6,500 |
Noninterest income | 5,648 | 2,085 | 989 | 144 | 7,815 |
Noninterest expense | 21,725 | 1,922 | 928 | 533 | 24,057 |
Provision for income taxes | (825) | 192 | 18 | 130 | (485) |
Net income (loss) | $ 41 | $ 447 | $ 43 | $ (857) | $ (326) |
Total Assets | $ 2,980,953 | $ 53,023 | $ 594 | $ 464,882 | $ 3,095,687 |
Average Assets | $ 2,945,702 | $ 46,323 | $ 461 | $ 466,355 | $ 3,052,806 |
At and for the Six Months Ended June 30, 2010 (In thousands): | |||||
Commercial | Mortgage | Wealth | |||
Bank | Banking | Management | Other | Consolidated | |
Net interest income (expense) | $ 45,534 | $ 704 | $ -- | $ (521) | $ 45,717 |
Provision for loan losses | 14,050 | -- | -- | -- | 14,050 |
Noninterest income | 13,017 | 3,412 | 2,463 | 424 | 17,195 |
Noninterest expense | 41,051 | 3,437 | 1,948 | 1,023 | 45,338 |
Provision for income taxes | 196 | 204 | 155 | (439) | 116 |
Net income (loss) | $ 3,254 | $ 475 | $ 360 | $ (681) | $ 3,408 |
Average Assets | $ 2,941,435 | $ 32,731 | $ 346 | $ 386,390 | $ 2,991,928 |
At and for the Six Months Ended June 30, 2009 (In thousands): | |||||
Commercial | Mortgage | Wealth | |||
Bank | Banking | Management | Other | Consolidated | |
Net interest income (expense) | $ 44,227 | $ 798 | $ -- | $ (695) | $ 44,330 |
Provision for loan losses | 14,250 | -- | -- | -- | 14,250 |
Noninterest income | 11,170 | 3,509 | 1,999 | 366 | 14,943 |
Noninterest expense | 42,323 | 3,417 | 1,861 | 780 | 46,280 |
Provision for income taxes | (1,373) | 267 | 41 | (12) | (1,077) |
Net income (loss) | $ 197 | $ 623 | $ 97 | $ (1,097) | $ (180) |
Average Assets | $ 2,923,623 | $ 38,028 | $ 511 | $ 467,555 | $ 3,021,964 |
CONTACT: Jeffrey W. Farrar, Executive Vice President and Chief Financial Officer of StellarOne Corporation (434) 964-2217 jfarrar@stellarone.com