Exhibit 99.1
N E W S | from Summit Bancshares, Inc. |
For Immediate Release | For Information Contact: |
January 25, 2005 | Bob G. Scott, COO |
| (817) 877-2660 |
SUMMIT BANCSHARES ANNOUNCES
FOURTH QUARTER AND YEAR 2004 RESULTS
Fort Worth, Texas - Summit Bancshares, Inc. (Nasdaq:SBIT), bank holding company for Summit Bank, N.A., today reported net income for fourth quarter 2004 of $2,919,000, or $0.23 per diluted common share, compared to $2,403,000, or $0.19 per diluted common share, for the comparable 2003 period, a 21% increase. Return on assets and return on shareholders’ equity averaged 1.18% and 15.58%, respectively, compared to 1.21% and 13.93%, respectively, for the corresponding 2003 period.
For the year ended December 31, 2004, net income totaled $10,762,000, or $0.85 per diluted common share, compared to $9,768,000, or $0.77 per diluted common share, for the corresponding 2003 period, a 10.4% increase. Return on assets and return on shareholders’ equity averaged 1.16% and 15.04%, respectively, for the year ended December 31, 2004, compared to 1.32% and 14.43%, respectively, for the corresponding 2003 period.
Summit completed its acquisition of ANB Financial Corporation and its subsidiary, Arlington National Bank, (“ANB”), effective May 1, 2004. The results of operations for this acquisition have been included in Summit’s consolidated financial statements since the purchase date. Also, Summit completed on December 31, 2004, a two (2) for one (1) stock split payable in the form of a 100% stock dividend. Therefore, all historical per share data has been changed to reflect the split.
Net interest income of $10.2 million for the fourth quarter 2004 improved $2.0 million, or 25.1%, over fourth quarter 2003. Average total interest earning assets increased 23.9% from fourth quarter 2003 to $925 million for fourth quarter 2004 in part due to the ANB purchase. The net interest margin, on a taxable-equivalent basis, on average total interest earning assets increased 5 basis points to 4.41% for the fourth quarter 2004 compared to the corresponding 2003 quarter.
For the year ended December 31, 2004, net interest income totaled $37.4 million, reflecting a $6.3 million, or 20.1%, increase from the year of 2003. This increase resulted primarily from an increase of 24.6% in average total interest earning assets to $870 million for the year of 2004. The net interest margin, on a taxable-equivalent basis, on average total interest earning assets decreased 17 basis points to 4.31% for the year ended December 31, 2004 compared to the prior year period, primarily due to the lower interest rate environment in 2004 as compared to 2003. After declining for several quarters, the net interest margin has increased for the last two quarters of 2004 as prime rate has increased.
A provision for loan losses of $290,000 for the fourth quarter 2004 was comparable to the provision for loan losses of $294,000 for the fourth quarter of 2003. Net charge-offs totaled $182,000 for the fourth quarter 2004, representing charge-offs to average loans for the quarter of 0.03%. As of December 31, 2004, the allowance for loan losses as a percentage of total loans was 1.45%, a level maintained for the last three quarters. For the year ended December 31, 2004, the provision for loan losses totaled $1,790,000, reflecting a $910,000 increase over the provision of the prior year period primarily driven by strong loan growth. Net charge-offs for the year were $641,000, or 0.10%, of average loans.
Non-interest income of $1,811,000 for fourth quarter 2004 increased 32.1% over fourth quarter 2003, excluding the gain on sale of investment securities of $129,000 in the fourth quarter of 2003. Service charges on deposits amounted to $1,084,000 for fourth quarter 2004, an increase of 23% primarily due to the inclusion this year of the fees related to the Arlington locations. The higher earnings credit rate paid for commercial deposit accounts on analysis had a negative impact on service fees. Included in the increase of other income of $237,000 for the quarter were the following: a) an increase due to inclusion of the Arlington locations, and b) increases in insurance commission of $13,500, mortgage origination fees of $38,400, debit card fees of $33,000, recovered interest on loans previously on non-accrual of $65,800, and trust fees of $41,900. These increases were somewhat offset by $13,000 decrease in fees from investment services.
For the year ended December 31, 2004, non-interest income totaled $7,210,000, reflecting an increase of $1,412,000, or 24.4%, over the year of 2003, excluding gains on investment securities of $32,000 and $230,000, respectively for the years of 2004 and 2003. Service charges on deposits increased $805,000, or 23.4%, for the year of 2004 compared to the year 2003. Excluding the contribution of ANB, the increase in service charges on deposits was 7.4%. Other income increased $607,000 or 25.8%. Contributing to this increase were increases in insurance commissions of $39,700, debit card and ATM income of $119,000, recovered interest on loans previously on non-accrual or charged-off loans of $65,800, fees from sales of personalized checks of $86,000, trust fees of $155,700, and income from sale of assets of $334,100 which included foreclosed assets and student loans. These increases in other income were somewhat offset by decreases in letter of credit fees of $77,600, mortgage origination fees of $92,000, and fees from investment services of $86,800.
Non-interest expense of $7,202,000 for fourth quarter 2004 increased $1,448,000, or 25.2%, over fourth quarter 2003. Excluding the impact of the acquisition of ANB, the increase in expenses was $538,000, or 9.3%. Also contributing to the increase in non-interest expenses were the expenses related to the opening of a remote motor bank facility for the Hulen Branch and the opening of a new facility for the Euless branch, both opened in October. Also reflected in the fourth quarter 2004 expenses are costs related to compliance with the Sarbanes Oxley Act’s Section 404 (“SOX 404”), which required additional expenditures for auditing and consulting fees in the amount of approximately $180,000. Some portion of this expense is considered a one time expenditure, but the future cost of compliance is yet to be determined.
Non-interest expense of $26,190,000 for the year of 2004 increased $4,737,000, or 22.1%, compared to the year of 2003. Excluding the expenses related to the acquired Arlington locations the increase in expenses was $1,986,000 or 9.3%. As noted above, the opening of the new Hulen motor bank and the Euless Branch added expenses in 2004. Also, the additional expense for SOX 404 compliance for the year was approximately $350,000. The growth of Summit in 2003 and 2004 required increased expenditures for staff, support equipment, supplies, etc. The efficiency ratio was 58.6% for the year of 2004 compared to 57.6% for 2003. As the economy of scale of the Arlington acquisition is reflected for a full twelve months, as the newer branches continue to grow within their markets and facilities and as the net interest margin improves in a rising rate environment, the efficiency ratio is expected to improve.
2
At December 31, 2004, loans totaling $2,587,000 were on non-accrual status and represented 0.37% of total loans outstanding. The allowances for loan losses represented 394% of the non-accrual loans. The dollar amount of non-accrual loans was similar to the level over the past four quarters.
Summit files annual, quarterly and special reports, proxy statements and other information with the SEC. Investors may read and copy any of these reports, statements and other information at the SEC’s public reference room located at 450 Fifth Street, N.W., Washington, D.C. 20549. Investors should call the SEC at 1-800-SEC-0330 for further information on the public reference room. The reports, statements, and other information filed by Summit with the SEC are also available free at the SEC’s web site at http://www.sec.gov. You can also obtain a free copy of these reports, statements and other information from Summit’s web site at http:///www.summitbank.net.
The Company will host a conference call Wednesday, January 26, 2005 at 10:30 a.m. (CT) to discuss the Company’s performance for the quarter and year ended December 31, 2004. To participate, please call (800)406-5356 and enter confirmation code 7474413. If you are unable to participate, an audio playback of the call will be available starting Wednesday, January 26, 2005 at 2:00 p.m. (CT) through midnight February 9, 2005 (CT) by calling (888)203-1112 and entering code 7474413.
The 2005 Annual Meeting of Shareholders will be held on April 19, 2005 at 3:30 p.m. (CT) at Summit Bancshares, Inc. Corporate Headquarters, 3880 Hulen Street, Suite 300, Fort Worth, Texas.
Certain statements contained in this press release that are not historical in nature, including statements regarding the Company’s and/or management’s intentions, strategies, beliefs, expectations, representations, plans, projections, or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions for forward-looking statements contained in such Act. We are including this statement for purposes of invoking these safe harbor provisions. Forward-looking statements are based on assumptions involving certain known and unknown risks and uncertainties, many of which are beyond the Company’s control, and other important factors that could cause actual results, performance or achievements to differ materially from the expectations expressed or implied by such forward-looking statements. These risks and uncertainties are listed from time to time in the Company’s filings with the Securities and Exchange Commission, including but not limited to, those set forth under the heading “Factors That May Affect Future Results” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003.
Summit Bancshares, Inc. · 3880 Hulen Street, Ste. 300 · Fort Worth, Texas 76107
Telephone (817) 336-6817 · Fax (817) 877-2672 · Web Site: www.summitbank.net
3
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
|
| Quarter Ended |
| % |
| Twelve Months Ended |
| % |
| ||||||||||
|
|
|
|
|
| ||||||||||||||
|
| 2004 |
| 2003 |
|
| 2004 |
| 2003 |
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||||||
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
| $ | 12,995 |
| $ | 10,020 |
|
| 29.7 | % | $ | 46,857 |
| $ | 38,527 |
|
| 21.6 | % |
Interest expense |
|
| 2,782 |
|
| 1,853 |
|
| 50.1 | % |
| 9,506 |
|
| 7,437 |
|
| 27.8 | % |
|
|
|
|
|
|
|
| ||||||||||||
Net interest income |
|
| 10,213 |
|
| 8,167 |
|
| 25.1 | % |
| 37,351 |
|
| 31,090 |
|
| 20.1 | % |
Provision for loan losses |
|
| 290 |
|
| 294 |
|
| -1.4 | % |
| 1,790 |
|
| 880 |
|
| 103.4 | % |
Service charges on deposits |
|
| 1,084 |
|
| 881 |
|
| 23.0 | % |
| 4,248 |
|
| 3,443 |
|
| 23.4 | % |
Gain on Sale of Investment Securities |
|
| — |
|
| 129 |
|
| -100.0 | % |
| 32 |
|
| 230 |
|
| -86.1 | % |
Other Income |
|
| 727 |
|
| 490 |
|
| 48.4 | % |
| 2,962 |
|
| 2,355 |
|
| 25.8 | % |
Salaries and benefits expense |
|
| 4,160 |
|
| 3,594 |
|
| 15.7 | % |
| 15,329 |
|
| 12,926 |
|
| 18.6 | % |
Occupancy and equipment expense |
|
| 1,237 |
|
| 983 |
|
| 25.8 | % |
| 4,467 |
|
| 3,611 |
|
| 23.7 | % |
Other expense |
|
| 1,805 |
|
| 1,177 |
|
| 53.4 | % |
| 6,394 |
|
| 4,916 |
|
| 30.1 | % |
|
|
|
|
|
|
|
| ||||||||||||
Earnings before income taxes |
|
| 4,532 |
|
| 3,619 |
|
| 25.2 | % |
| 16,613 |
|
| 14,785 |
|
| 12.4 | % |
Provision for income taxes |
|
| 1,613 |
|
| 1,216 |
|
| 32.6 | % |
| 5,851 |
|
| 5,017 |
|
| 16.6 | % |
|
|
|
|
|
|
|
| ||||||||||||
Net earnings |
| $ | 2,919 |
| $ | 2,403 |
|
| 21.5 | % | $ | 10,762 |
| $ | 9,768 |
|
| 10.2 | % |
|
|
|
|
|
|
|
| ||||||||||||
Basic earnings per share |
| $ | 0.23 |
| $ | 0.19 |
|
| 21.1 | % | $ | 0.87 |
| $ | 0.79 |
|
| 10.1 | % |
|
|
|
|
|
|
|
| ||||||||||||
Basic weighted average shares outstanding |
|
| 12,349 |
|
| 12,310 |
|
|
|
|
| 12,326 |
|
| 12,322 |
|
|
|
|
Diluted earnings per share |
| $ | 0.23 |
| $ | 0.19 |
|
| 21.1 | % | $ | 0.85 |
| $ | 0.77 |
|
| 10.4 | % |
|
|
|
|
|
|
|
| ||||||||||||
Diluted weighted average shares outstanding |
|
| 12,714 |
|
| 12,680 |
|
|
|
|
| 12,679 |
|
| 12,634 |
|
|
|
|
|
| Average for Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
|
| ||||||||||
BALANCE SHEET SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
| $ | 694,177 |
| $ | 678,915 |
| $ | 642,935 |
| $ | 573,862 |
| $ | 537,635 |
|
Total investment securities |
|
| 226,530 |
|
| 218,831 |
|
| 196,972 |
|
| 187,988 |
|
| 205,162 |
|
Earning assets |
|
| 924,557 |
|
| 914,595 |
|
| 871,084 |
|
| 767,274 |
|
| 746,066 |
|
Total assets |
|
| 984,814 |
|
| 976,911 |
|
| 925,830 |
|
| 808,009 |
|
| 788,426 |
|
Noninterest bearing deposits |
|
| 235,846 |
|
| 226,462 |
|
| 207,815 |
|
| 179,396 |
|
| 184,106 |
|
Interest bearing deposits |
|
| 560,341 |
|
| 557,329 |
|
| 521,812 |
|
| 454,352 |
|
| 450,401 |
|
Total deposits |
|
| 796,187 |
|
| 783,791 |
|
| 729,628 |
|
| 633,748 |
|
| 634,507 |
|
Other borrowings |
|
| 109,713 |
|
| 118,083 |
|
| 121,193 |
|
| 101,349 |
|
| 82,160 |
|
Shareholders’ equity |
|
| 74,543 |
|
| 71,038 |
|
| 70,583 |
|
| 70,116 |
|
| 68,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average for Twelve Months |
| % |
| |||||
|
|
|
| |||||||
|
| 2004 |
| 2003 |
|
| ||||
|
|
|
|
| ||||||
BALANCE SHEET SUMMARY |
|
|
|
|
|
|
|
|
|
|
Total loans |
| $ | 647,686 |
| $ | 504,520 |
|
| 28.4 | % |
Total investment securities |
|
| 207,663 |
|
| 185,318 |
|
| 12.1 | % |
Earning assets |
|
| 869,652 |
|
| 697,750 |
|
| 24.6 | % |
Total assets |
|
| 924,202 |
|
| 739,658 |
|
| 24.9 | % |
Noninterest bearing deposits |
|
| 212,482 |
|
| 172,784 |
|
| 23.0 | % |
Interest bearing deposits |
|
| 523,652 |
|
| 436,017 |
|
| 20.1 | % |
Total deposits |
|
| 736,134 |
|
| 608,801 |
|
| 20.9 | % |
Other borrowings |
|
| 112,592 |
|
| 60,156 |
|
| 87.2 | % |
Shareholders’ equity |
|
| 71,577 |
|
| 67,673 |
|
| 5.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Ending Balance |
| |||||||||||||
|
|
| ||||||||||||||
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
|
| ||||||||||
BALANCE SHEET SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
| $ | 702,619 |
| $ | 689,906 |
| $ | 672,686 |
| $ | 593,271 |
| $ | 553,769 |
|
Total investment securities |
|
| 223,351 |
|
| 219,264 |
|
| 214,991 |
|
| 181,879 |
|
| 195,959 |
|
Total earning assets |
|
| 930,990 |
|
| 928,638 |
|
| 905,228 |
|
| 818,393 |
|
| 751,063 |
|
Allowance for loan losses |
|
| (10,187 | ) |
| (10,079 | ) |
| (9,844 | ) |
| (8,320 | ) |
| (7,784 | ) |
Premises and equipment |
|
| 15,749 |
|
| 15,643 |
|
| 15,145 |
|
| 12,755 |
|
| 12,920 |
|
Total assets |
|
| 989,117 |
|
| 990,406 |
|
| 969,708 |
|
| 860,361 |
|
| 795,478 |
|
Noninterest bearing deposits |
|
| 235,399 |
|
| 232,586 |
|
| 218,343 |
|
| 186,198 |
|
| 192,877 |
|
Interest bearing deposits |
|
| 556,865 |
|
| 558,938 |
|
| 557,347 |
|
| 470,186 |
|
| 448,504 |
|
Total deposits |
|
| 792,264 |
|
| 791,524 |
|
| 775,690 |
|
| 656,384 |
|
| 641,381 |
|
Other borrowings |
|
| 118,094 |
|
| 121,355 |
|
| 121,785 |
|
| 129,691 |
|
| 82,234 |
|
Total liabilities |
|
| 914,627 |
|
| 916,858 |
|
| 901,009 |
|
| 788,786 |
|
| 726,794 |
|
Shareholders’ equity |
|
| 74,490 |
|
| 73,548 |
|
| 68,699 |
|
| 71,575 |
|
| 68,684 |
|
4
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
|
| ||||||||||
NONPERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
| $ | 2,587 |
| $ | 2,545 |
| $ | 2,832 |
| $ | 2,405 |
| $ | 2,351 |
|
Restructured loans |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Other real estate & foreclosed assets |
|
| — |
|
| 4 |
|
| 369 |
|
| 7 |
|
| — |
|
Accruing loans past due 90 days or more |
|
| 18 |
|
| 2,300 |
|
| 111 |
|
| — |
|
| 55 |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming assets |
| $ | 2,605 |
| $ | 4,849 |
| $ | 3,312 |
| $ | 2,412 |
| $ | 2,406 |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming assets as a percentage of loans and foreclosed assets |
|
| 0.37 | % |
| 0.70 | % |
| 0.49 | % |
| 0.41 | % |
| 0.43 | % |
|
|
|
|
|
|
|
|
| Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
|
| ||||||||||
ALLOWANCE FOR LOAN LOSSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
| $ | 10,079 |
| $ | 9,844 |
| $ | 8,320 |
| $ | 7,784 |
| $ | 7,483 |
|
Balance acquired in Arlington National Bank Acquisition |
|
| — |
|
| — |
|
| 1,254 |
|
| — |
|
| — |
|
Loans charged off |
|
| (293 | ) |
| (415 | ) |
| (196 | ) |
| (137 | ) |
| (163 | ) |
Loan recoveries |
|
| 111 |
|
| 155 |
|
| 66 |
|
| 68 |
|
| 170 |
|
|
|
|
|
|
|
| ||||||||||
Net (charge-offs) recoveries |
|
| (182 | ) |
| (260 | ) |
| (130 | ) |
| (69 | ) |
| 7 |
|
Provision for loan losses |
|
| 290 |
|
| 495 |
|
| 400 |
|
| 605 |
|
| 294 |
|
|
|
|
|
|
|
| ||||||||||
Balance at end of period |
| $ | 10,187 |
| $ | 10,079 |
| $ | 9,844 |
| $ | 8,320 |
| $ | 7,784 |
|
|
|
|
|
|
|
| ||||||||||
Allowance for loan losses as a percentage of total loans |
|
| 1.45 | % |
| 1.46 | % |
| 1.46 | % |
| 1.40 | % |
| 1.41 | % |
|
|
|
|
|
|
| ||||||||||
Allowance for loan losses as a percentage of nonperforming loans |
|
| 393.82 | % |
| 396.03 | % |
| 347.60 | % |
| 345.95 | % |
| 323.57 | % |
|
|
|
|
|
|
| ||||||||||
Net charge-offs (recoveries) as a percentage of average loans |
|
| 0.03 | % |
| 0.04 | % |
| 0.02 | % |
| 0.01 | % |
| 0.00 | % |
|
|
|
|
|
|
| ||||||||||
Provision for loan losses as a percentage of average loans |
|
| 0.04 | % |
| 0.07 | % |
| 0.06 | % |
| 0.11 | % |
| 0.05 | % |
|
|
|
|
|
|
|
|
| Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
|
| ||||||||||
SELECTED RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
| 1.18 | % |
| 1.14 | % |
| 1.13 | % |
| 1.22 | % |
| 1.21 | % |
|
|
|
|
|
|
| ||||||||||
Return on average equity (annualized) |
|
| 15.58 | % |
| 15.66 | % |
| 14.79 | % |
| 14.06 | % |
| 13.93 | % |
|
|
|
|
|
|
| ||||||||||
Average shareholders’ equity to average assets |
|
| 7.57 | % |
| 7.27 | % |
| 7.62 | % |
| 8.68 | % |
| 8.68 | % |
|
|
|
|
|
|
| ||||||||||
Yield on earning assets |
|
| 5.61 | % |
| 5.39 | % |
| 5.23 | % |
| 5.36 | % |
| 5.35 | % |
|
|
|
|
|
|
| ||||||||||
Cost of interest bearing funds |
|
| 1.65 | % |
| 1.49 | % |
| 1.42 | % |
| 1.39 | % |
| 1.38 | % |
|
|
|
|
|
|
| ||||||||||
Net interest margin (tax equivalent) |
|
| 4.41 | % |
| 4.29 | % |
| 4.18 | % |
| 4.36 | % |
| 4.36 | % |
|
|
|
|
|
|
| ||||||||||
Efficiency ratio |
|
| 59.71 | % |
| 59.23 | % |
| 58.90 | % |
| 55.94 | % |
| 59.29 | % |
|
|
|
|
|
|
| ||||||||||
End of period book value per common share |
| $ | 6.03 |
| $ | 5.96 |
| $ | 5.57 |
| $ | 5.82 |
| $ | 5.59 |
|
|
|
|
|
|
|
| ||||||||||
End of period common shares outstanding |
|
| 12,359 |
|
| 12,334 |
|
| 12,372 |
|
| 12,307 |
|
| 12,305 |
|
|
|
|
|
|
|
|
5
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
|
| Three Months Ended |
| |||||||||||||||||||
|
|
| ||||||||||||||||||||
|
| December 31, 2004 |
| December 31, 2003 |
| |||||||||||||||||
|
|
|
| |||||||||||||||||||
|
| Average Balance |
| Interest |
| Yield |
| Average |
| Interest |
| Yield |
| |||||||||
|
|
|
|
|
|
|
| |||||||||||||||
YIELD ANALYSIS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Federal funds sold & due from time |
| $ | 3,850 |
| $ | 31 |
|
| 3.18 | % | $ | 3,269 |
| $ | 6 |
|
| 0.76 | % | |||
Investment securities (taxable) |
|
| 218,512 |
|
| 1,974 |
|
| 3.61 | % |
| 198,302 |
|
| 1,932 |
|
| 3.87 | % | |||
Investment securities (tax-exempt) |
|
| 8,018 |
|
| 104 |
|
| 5.20 | % |
| 6,860 |
|
| 90 |
|
| 5.20 | % | |||
Loans |
|
| 694,177 |
|
| 10,921 |
|
| 6.26 | % |
| 537,635 |
|
| 8,031 |
|
| 5.93 | % | |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Interest Earning Assets |
|
| 924,557 |
|
| 13,030 |
|
| 5.61 | % |
| 746,066 |
|
| 10,059 |
|
| 5.35 | % | |||
Noninterest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Cash and due from banks |
|
| 29,282 |
|
|
|
|
|
|
|
| 25,387 |
|
|
|
|
|
|
| |||
Other assets |
|
| 41,140 |
|
|
|
|
|
|
|
| 24,555 |
|
|
|
|
|
|
| |||
Allowance for loan losses |
|
| (10,165 | ) |
|
|
|
|
|
|
| (7,582 | ) |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Noninterest Earning Assets |
|
| 60,257 |
|
|
|
|
|
|
|
| 42,360 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Assets |
| $ | 984,814 |
|
|
|
|
|
|
| $ | 788,426 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Transaction and money market accounts |
| $ | 239,046 |
|
| 690 |
|
| 1.15 | % | $ | 197,375 |
|
| 509 |
|
| 1.02 | % | |||
Savings deposits |
|
| 168,191 |
|
| 577 |
|
| 1.36 | % |
| 128,319 |
|
| 394 |
|
| 1.22 | % | |||
Certificates and other time deposits |
|
| 153,104 |
|
| 935 |
|
| 2.43 | % |
| 124,707 |
|
| 740 |
|
| 2.36 | % | |||
Other borrowings |
|
| 109,713 |
|
| 580 |
|
| 2.10 | % |
| 82,160 |
|
| 209 |
|
| 1.01 | % | |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Interest Bearing Liabilities |
|
| 670,054 |
|
| 2,782 |
|
| 1.65 | % |
| 532,561 |
|
| 1,852 |
|
| 1.38 | % | |||
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Demand deposits |
|
| 235,846 |
|
|
|
|
|
|
|
| 184,106 |
|
|
|
|
|
|
| |||
Other liabilities |
|
| 4,371 |
|
|
|
|
|
|
|
| 3,360 |
|
|
|
|
|
|
| |||
Shareholders’ equity |
|
| 74,543 |
|
|
|
|
|
|
|
| 68,399 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Noninterest Bearing Liabilities |
|
| 314,760 |
|
|
|
|
|
|
|
| 255,865 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Liabilities and Shareholders’ Equity |
| $ | 984,814 |
|
|
|
|
|
|
| $ | 788,426 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Interest Income and Margin (tax equivalent) |
|
|
|
| $ | 10,248 |
|
| 4.41 | % |
|
|
| $ | 8,207 |
|
| 4.36 | % | |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
6
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
|
| Twelve Months Ended |
| ||||||||||||||||
|
|
| |||||||||||||||||
|
| December 31, 2004 |
| December 31, 2003 |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
| Average |
| Interest |
| Yield |
| Average |
| Interest |
| Yield |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
YIELD ANALYSIS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold & due from time |
| $ | 14,303 |
| $ | 170 |
|
| 1.19 | % | $ | 7,912 |
| $ | 81 |
|
| 1.02 | % |
Investment securities (taxable) |
|
| 200,383 |
|
| 7,409 |
|
| 3.70 | % |
| 179,539 |
|
| 7,106 |
|
| 3.96 | % |
Investment securities (tax-exempt) |
|
| 7,280 |
|
| 395 |
|
| 5.43 | % |
| 5,779 |
|
| 314 |
|
| 5.43 | % |
Loans |
|
| 647,686 |
|
| 39,024 |
|
| 6.03 | % |
| 504,520 |
|
| 31,171 |
|
| 6.18 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total Interest Earning Assets |
|
| 869,652 |
|
| 46,998 |
|
| 5.40 | % |
| 697,750 |
|
| 38,672 |
|
| 5.54 | % |
Noninterest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| 28,620 |
|
|
|
|
|
|
|
| 26,295 |
|
|
|
|
|
|
|
Other assets |
|
| 35,281 |
|
|
|
|
|
|
|
| 22,964 |
|
|
|
|
|
|
|
Allowance for loan losses |
|
| (9,351 | ) |
|
|
|
|
|
|
| (7,351 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Earning Assets |
|
| 54,550 |
|
|
|
|
|
|
|
| 41,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 924,202 |
|
|
|
|
|
|
| $ | 739,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
| $ | 232,155 |
|
| 2,518 |
|
| 1.08 | % | $ | 193,841 |
|
| 2,108 |
|
| 1.09 | % |
Savings deposits |
|
| 149,510 |
|
| 1,832 |
|
| 1.23 | % |
| 119,851 |
|
| 1,581 |
|
| 1.32 | % |
Certificates and other time deposits |
|
| 141,987 |
|
| 3,327 |
|
| 2.34 | % |
| 122,325 |
|
| 3,121 |
|
| 2.55 | % |
Other borrowings |
|
| 112,592 |
|
| 1,829 |
|
| 1.62 | % |
| 60,156 |
|
| 627 |
|
| 1.04 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total Interest Bearing Liabilities |
|
| 636,244 |
|
| 9,506 |
|
| 1.49 | % |
| 496,173 |
|
| 7,437 |
|
| 1.50 | % |
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
| 212,482 |
|
|
|
|
|
|
|
| 172,784 |
|
|
|
|
|
|
|
Other liabilities |
|
| 3,899 |
|
|
|
|
|
|
|
| 3,028 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
| 71,577 |
|
|
|
|
|
|
|
| 67,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Bearing Liabilities |
|
| 287,958 |
|
|
|
|
|
|
|
| 243,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Liabilities and Shareholders’ Equity |
| $ | 924,202 |
|
|
|
|
|
|
| $ | 739,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Interest Income and Margin (tax equivalent) |
|
|
|
| $ | 37,492 |
|
| 4.31 | % |
|
|
| $ | 31,235 |
|
| 4.48 | % |
|
|
|
|
|
|
|
|
|
|
|
|
7
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
|
| December 31, |
| % |
| December 31, |
| % |
| ||||
|
|
|
|
|
| ||||||||
LOAN PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
| $ | 261,571 |
|
| 37.2 | % | $ | 219,805 |
|
| 39.7 | % |
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
| 224,720 |
|
| 32.0 | % |
| 159,082 |
|
| 28.7 | % |
Residential |
|
| 82,839 |
|
| 11.8 | % |
| 67,635 |
|
| 12.2 | % |
Construction and development |
|
| 93,558 |
|
| 13.3 | % |
| 74,069 |
|
| 13.4 | % |
Consumer |
|
| 39,931 |
|
| 5.7 | % |
| 33,178 |
|
| 6.0 | % |
|
|
|
|
|
| ||||||||
Total loans (gross) |
|
| 702,619 |
|
| 100.0 | % |
| 553,769 |
|
| 100.0 | % |
Unearned discounts |
|
| — |
|
| 0.0 | % |
| — |
|
| 0.0 | % |
|
|
|
|
|
| ||||||||
Total loans (net) |
|
| 702,619 |
|
| 100.0 | % |
| 553,769 |
|
| 100.0 | % |
|
|
|
|
|
|
|
| December 31, |
| December 31, |
| ||
|
|
|
| ||||
REGULATORY CAPITAL DATA |
|
|
|
|
|
|
|
Tier 1 Capital |
| $ | 76,449 |
| $ | 67,996 |
|
Tier 1 Ratio |
|
| 10.15 | % |
| 11.45 | % |
Total Capital (Tier 1 + Tier 2) |
| $ | 85,874 |
| $ | 75,426 |
|
Total Capital Ratio |
|
| 11.40 | % |
| 12.70 | % |
Total Risk-Adjusted Assets |
| $ | 753,206 |
| $ | 594,044 |
|
Tier 1 Leverage Ratio |
|
| 7.85 | % |
| 8.62 | % |
|
| December 31, |
| December 31, |
| ||
|
|
|
| ||||
OTHER DATA |
|
|
|
|
|
|
|
Full Time Equivalent Employees (FTE’s) |
|
| 254 |
|
| 225 |
|
Stock Price Range (For the Quarter Ended): |
|
|
|
|
|
|
|
High |
| $ | 18.95 |
| $ | 14.48 |
|
Low |
| $ | 16.33 |
| $ | 13.23 |
|
Close |
| $ | 18.75 |
| $ | 13.81 |
|
8