| Exhibit 99.1 |
|
|
N E W S from Summit Bancshares, Inc. |
|
|
|
For Immediate Release | For Information Contact: |
January 23, 2006 | Bob G. Scott, COO |
| (817) 877-2660 |
SUMMIT BANCSHARES ANNOUNCES
FOURTH QUARTER AND YEAR-END 2005 RESULTS
Fort Worth, Texas - Summit Bancshares, Inc. (Nasdaq:SBIT), a bank holding company for Summit Bank, N.A., today reported net income of $3,516,000, or $0.28 per diluted common share for the fourth quarter of 2005, compared to $2,919,000, or $0.23 per diluted common share, for the comparable 2004 period, a 21.7% increase. Return on average assets and return on average shareholders’ equity for the fourth quarter were 1.29% and 17.29%, respectively, compared to 1.18% and 15.58%, respectively, for the corresponding 2004 period.
For the year ended December 31, 2005, net income totaled $13,176,000, or $1.04 per diluted common share, compared to $10,762,000, or $0.85 per diluted common share, for the year of 2004 , a 22.4% increase. Return on average assets and return on average shareholders’ equity were 1.28% and 16.89%, respectively, for the year ended December 31, 2005, compared to 1.16% and 15.04%, respectively, for the year of 2004.
Philip E. Norwood, Chairman, President and Chief Executive Officer, stated, “We are very pleased with the earnings and growth performance for the fourth quarter and for the year of 2005. The Summit Bancshares/Summit Bank team of employees has worked very hard to make this such a successful year and they are to be commended for their efforts. The team and I are looking forward to a very productive and exciting 2006.”
Net interest income (tax equivalent) of $12.1 million for the fourth quarter 2005 improved $1.8 million, or 17.8%, over fourth quarter 2004. Average total interest earning assets increased 10.0% from fourth quarter 2004 to $1.0 billion for fourth quarter 2005. The net interest margin, on a taxable-equivalent basis, on average total interest earning assets increased 30 basis points to 4.71% for the fourth quarter 2005 compared to the corresponding 2004 quarter.
For the year ended December 31, 2005, net interest income totaled $44.4 million, reflecting a $6.9 million, or 18.3%, increase from the year of 2004. This increase resulted primarily from an increase of 11.3% in average total interest earning assets to $968 million for the year of 2005. Also, the net interest margin, on a taxable-equivalent basis, on average total interest earning assets increased 27 basis points to 4.58% for the year ended December 31, 2005 compared to the prior year, reflecting rising interest rates in the market. Net interest margin has increased each quarter of 2005 over that of the immediately preceding quarter, again reflecting rising interest rates.
A provision for loan losses of $340,000 for the fourth quarter 2005 was 17.2% greater than the provision for loan losses of $290,000 for the fourth quarter of 2004 primarily reflecting loan growth. Net charge-offs totaled $263,000 for the fourth quarter 2005, representing net charge-offs to average loans for the quarter of 0.03%. As of December 31, 2005, the allowance for loan losses as a percentage of total loans was 1.45%, the same rate as of December 31, 2004. For the year ended December 31, 2005, the provision for loan losses totaled $1,105,000, a $685,000 decrease compared to the provision for the prior year primarily driven by lack of loan charge-offs in 2005. Net charge-offs for the year were only $84,000, or 0.01%, of average loans.
Non-interest income of $1,913,000 for fourth quarter 2005 increased 5.6% over fourth quarter 2004. Service charges on deposits amounted to $974,000 for fourth quarter 2005, a decrease of 10.1% primarily due to higher interest earnings credits paid on commercial deposit accounts that are under account analysis for charges. Included in the increase for other income of $212,000 for the fourth quarter of 2005 over the fourth quarter of 2004 were the following: a) an increase of $149,000 in fee income from investment services due to the addition of Summit Financial Partners in March; b) an increase of $53,000 in fees for trust services partly due to the addition of these services in May 2004; and c) an increase in insurance commissions of $22,000. These increases were somewhat offset by a decrease in mortgage origination fees of $23,000 and a decrease of $46,000 in recovery of interest income from loans charged-off in prior years.
For the year ended December 31, 2005, non-interest income totaled $8,004,000, reflecting an increase of $762,000, or 10.5%, over the year of 2004. Service charges on deposits declined $310,000, or 7.3%, for the year of 2005 compared to the year 2004 for the same reason noted above. Other income increased $1,104,000, or 37.3%. Contributing to this increase were increases in a) investment services fees of $454,000; b) insurance commissions of $56,000; c) trust service fees of $175,000; and d) merchant card service fees of $65,000. Also, in 2005 the increase in other income reflects a gain on sale of land previously held for expansion of $247,000 and a rebate of $211,000 on a processing contract. In comparison, in 2004 there was a gain of $167,000 on the sale of an asset previously carried in Other Assets and a gain of $37,000 on the partial sale of land that had been held for future branch expansion.
Non-interest expense for the fourth quarter increased $1,009,000 over the same quarter of the previous year, a 14.0% increase. This increase includes the impacts of: a) staff additions to support the Company’s continued growth; b) the inclusion in the fourth quarter of this year of the expense of Summit Financial Partners which was acquired in March 2005; c) loss of tenant rents at one bank facility along with an overall increase in utilities expense at all the locations; c) an increase in business development expense; and e) increased expenses for healthcare benefits for employees and for the annual incentive bonus. These increases were partially offset by reduced expenses, compared to the fourth quarter of the prior year, for compliance with Sarbanes Oxley regulatory requirements.
Non-interest expense for the year of 2005 was $30.7 million and reflected an increase of $4.5 million, or 17.1%. In considering this increase it should be noted that the acquisition of Arlington National Bank (ANB) was made in May of 2004 and Summit Financial Partners (SFP) was acquired in March 2005, both of these acquisitions would have a comparative impact on increases in personnel expense and occupancy and equipment expense for the year of 2005. Reflected in the increase in expenses was a 19.2% increase in personnel expenses and a 15.8% increase in occupancy and equipment expenses.
2
Approximately 75% of the increase in personnel expense was attributed to salary and bonuses and reflects the addition of personnel, including ANB and SFP. The increase in occupancy and equipment expense also reflects ANB and SFP plus the loss of a tenant in September 2005 at one of the bank facilities. In Other Expenses there was an increase of $812,000, or 12.7%, which included increases in business development expense, professional fees, and miscellaneous other expenses.
At December 31, 2005, loans totaling $3,000,000 were on non-accrual status and represented 0.39% of total loans outstanding. The allowances for loan losses represented 374% of the non-accrual loans. The dollar amount of non-accrual loans was the lowest of the year at December 31, 2005.
Following the end of the year, a classified borrower with outstanding loan balances of approximately $9 million notified the Company that it was experiencing further financial distress. This borrower’s credits had been identified by the Bank as weaker credits for approximately a year. As of December 31, 2005 the borrower was current as to principal and interest and was current as to loan terms. The borrower has asked for an extension of payments of principal for a period yet to be determined. Any loss on this credit is subject to many different factors and will not be determined for some time. Based on current information provided by the borrower as to collateral, the Company believes the allowance for loan losses is sufficient to cover the exposure of loss, if any, on the credit.
The Company’s loans were $775 million at December 31, 2005, an increase of $72 million, or 10.3%, from December 31, 2004. Deposits increased $87 million in 2005 to $879 million at December 31, 2005, an increase of 10.9%. At December 31, 2005 shareholders’ equity was $81 million or a book value per share of $6.54.
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 Tuesday, January 24, 2006 at 10:30 a.m. (CT) to discuss the Company’s performance for the quarter and year ended December 31, 2005. To participate, please call (800)810-0924 and enter confirmation code 1674375. If you are unable to participate, an audio playback of the call will be available starting Tuesday, January 24, 2006 at 3:00 p.m. (CT) through midnight February 7, 2006 (CT) by calling (888)203-1112 and entering code 1674375.
The 2006 Annual Meeting of Shareholders will be held on April 18, 2006 at 3:30 p.m. (CT) at Summit Bancshares, Inc. Corporate Headquarters, 3880 Hulen Street, Suite 300, Fort Worth, Texas.
3
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 contain 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 the 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, 2004
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
4
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
|
| Quarter Ended |
|
|
| Twelve Months Ended |
|
|
| ||||||||||
|
|
| % |
|
| % |
| ||||||||||||
EARNINGS SUMMARY |
| 2005 |
| 2004 |
|
| 2005 |
| 2004 |
|
| ||||||||
|
|
|
|
|
|
| |||||||||||||
Interest income |
| $ | 16,734 |
| $ | 12,995 |
|
| 28.8 | % | $ | 59,961 |
| $ | 46,857 |
|
| 28.0 | % |
Interest expense |
|
| 4,709 |
|
| 2,782 |
|
| 69.3 | % |
| 15,768 |
|
| 9,506 |
|
| 65.9 | % |
|
|
|
|
|
|
|
| ||||||||||||
Net interest income |
|
| 12,025 |
|
| 10,213 |
|
| 17.7 | % |
| 44,193 |
|
| 37,351 |
|
| 18.3 | % |
Provision for loan losses |
|
| 340 |
|
| 290 |
|
| 17.2 | % |
| 1,105 |
|
| 1,790 |
|
| -38.3 | % |
Service charges on deposits |
|
| 974 |
|
| 1,084 |
|
| -10.1 | % |
| 3,938 |
|
| 4,248 |
|
| -7.3 | % |
Gain on sale of investment securities |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 32 |
|
| -100.0 | % |
Other income |
|
| 939 |
|
| 727 |
|
| 29.2 | % |
| 4,066 |
|
| 2,962 |
|
| 37.3 | % |
Salaries and benefits expense |
|
| 4,981 |
|
| 4,160 |
|
| 19.7 | % |
| 18,277 |
|
| 15,329 |
|
| 19.2 | % |
Occupancy and equipment expense |
|
| 1,431 |
|
| 1,237 |
|
| 15.7 | % |
| 5,175 |
|
| 4,467 |
|
| 15.8 | % |
Other expense |
|
| 1,799 |
|
| 1,805 |
|
| -0.3 | % |
| 7,206 |
|
| 6,394 |
|
| 12.7 | % |
|
|
|
|
|
|
|
| ||||||||||||
Earnings before income taxes |
|
| 5,387 |
|
| 4,532 |
|
| 18.9 | % |
| 20,434 |
|
| 16,613 |
|
| 23.0 | % |
Provision for income taxes |
|
| 1,871 |
|
| 1,613 |
|
| 16.0 | % |
| 7,258 |
|
| 5,851 |
|
| 24.0 | % |
|
|
|
|
|
|
|
| ||||||||||||
Net earnings |
| $ | 3,516 |
| $ | 2,919 |
|
| 20.5 | % | $ | 13,176 |
| $ | 10,762 |
|
| 22.4 | % |
|
|
|
|
|
|
|
| ||||||||||||
Basic earnings per share |
| $ | 0.28 |
| $ | 0.23 |
|
| 21.7 | % | $ | 1.06 |
| $ | 0.87 |
|
| 21.8 | % |
|
|
|
|
|
|
|
| ||||||||||||
Basic weighted average shares outstanding |
|
| 12,442 |
|
| 12,349 |
|
|
|
|
| 12,414 |
|
| 12,326 |
|
|
|
|
Diluted earnings per share |
| $ | 0.28 |
| $ | 0.23 |
|
| 21.7 | % | $ | 1.04 |
| $ | 0.85 |
|
| 22.4 | % |
|
|
|
|
|
|
|
| ||||||||||||
Diluted weighted average shares outstanding |
|
| 12,723 |
|
| 12,714 |
|
|
|
|
| 12,710 |
|
| 12,679 |
|
|
|
|
|
| Average for Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
BALANCE SHEET SUMMARY |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
| |||||||||||
Total loans |
| $ | 753,311 |
| $ | 735,109 |
| $ | 723,535 |
| $ | 706,902 |
| $ | 694,177 |
|
Total investment securities |
|
| 252,508 |
|
| 226,441 |
|
| 216,825 |
|
| 220,161 |
|
| 226,530 |
|
Earning assets |
|
| 1,017,095 |
|
| 974,844 |
|
| 945,251 |
|
| 932,258 |
|
| 924,557 |
|
Total assets |
|
| 1,082,477 |
|
| 1,038,628 |
|
| 1,007,680 |
|
| 993,154 |
|
| 984,814 |
|
Noninterest bearing deposits |
|
| 259,062 |
|
| 242,849 |
|
| 239,127 |
|
| 225,519 |
|
| 235,846 |
|
Interest bearing deposits |
|
| 608,863 |
|
| 590,390 |
|
| 558,905 |
|
| 559,853 |
|
| 560,341 |
|
Total deposits |
|
| 867,925 |
|
| 833,239 |
|
| 798,032 |
|
| 785,372 |
|
| 796,187 |
|
Other borrowings |
|
| 128,368 |
|
| 121,435 |
|
| 128,684 |
|
| 128,174 |
|
| 109,713 |
|
Shareholders’ equity |
|
| 80,684 |
|
| 79,053 |
|
| 76,575 |
|
| 75,602 |
|
| 74,543 |
|
|
| Average for Twelve Months |
|
|
|
|
|
|
| |||||||
|
|
| % |
|
|
|
|
| ||||||||
BALANCE SHEET SUMMARY |
| 2005 |
| 2004 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total loans |
| $ | 729,856 |
| $ | 647,686 |
|
| 12.7 | % |
|
|
|
|
|
|
Total investment securities |
|
| 229,065 |
|
| 207,663 |
|
| 10.3 | % |
|
|
|
|
|
|
Earning assets |
|
| 967,615 |
|
| 869,652 |
|
| 11.3 | % |
|
|
|
|
|
|
Total assets |
|
| 1,030,752 |
|
| 924,202 |
|
| 11.5 | % |
|
|
|
|
|
|
Noninterest bearing deposits |
|
| 241,735 |
|
| 212,482 |
|
| 13.8 | % |
|
|
|
|
|
|
Interest bearing deposits |
|
| 579,667 |
|
| 523,652 |
|
| 10.7 | % |
|
|
|
|
|
|
Total deposits |
|
| 821,402 |
|
| 736,134 |
|
| 11.6 | % |
|
|
|
|
|
|
Other borrowings |
|
| 126,651 |
|
| 112,592 |
|
| 12.5 | % |
|
|
|
|
|
|
Shareholders’ equity |
|
| 77,995 |
|
| 71,577 |
|
| 9.0 | % |
|
|
|
|
|
|
|
| Ending Balance |
| |||||||||||||
|
|
| ||||||||||||||
BALANCE SHEET SUMMARY |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
| |||||||||||
Total loans |
| $ | 774,886 |
| $ | 754,153 |
| $ | 721,161 |
| $ | 716,714 |
| $ | 702,619 |
|
Total investment securities |
|
| 256,842 |
|
| 236,544 |
|
| 214,750 |
|
| 214,222 |
|
| 223,351 |
|
Total earning assets |
|
| 1,032,620 |
|
| 1,006,368 |
|
| 945,661 |
|
| 939,934 |
|
| 930,990 |
|
Allowance for loan losses |
|
| (11,208 | ) |
| (11,131 | ) |
| (10,798 | ) |
| (10,519 | ) |
| (10,187 | ) |
Premises and equipment |
|
| 16,515 |
|
| 15,620 |
|
| 15,563 |
|
| 15,462 |
|
| 15,749 |
|
Total assets |
|
| 1,099,735 |
|
| 1,074,261 |
|
| 1,008,475 |
|
| 999,914 |
|
| 989,117 |
|
Noninterest bearing deposits |
|
| 263,027 |
|
| 258,644 |
|
| 241,643 |
|
| 232,556 |
|
| 235,399 |
|
Interest bearing deposits |
|
| 615,749 |
|
| 607,384 |
|
| 562,846 |
|
| 565,002 |
|
| 556,865 |
|
Total deposits |
|
| 878,776 |
|
| 866,028 |
|
| 804,489 |
|
| 797,558 |
|
| 792,264 |
|
Other borrowings |
|
| 134,231 |
|
| 123,892 |
|
| 122,203 |
|
| 124,007 |
|
| 118,094 |
|
Total liabilities |
|
| 1,018,402 |
|
| 994,534 |
|
| 930,891 |
|
| 925,477 |
|
| 914,627 |
|
Shareholders’ equity |
|
| 81,333 |
|
| 79,727 |
|
| 77,584 |
|
| 74,437 |
|
| 74,490 |
|
5
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
NONPERFORMING ASSETS |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
| |||||||||||
Nonaccrual loans |
| $ | 3,000 |
| $ | 4,989 |
| $ | 3,372 |
| $ | 3,294 |
| $ | 2,587 |
|
Restructured loans |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Other real estate & foreclosed assets |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming assets |
| $ | 3,000 |
| $ | 4,989 |
| $ | 3,372 |
| $ | 3,294 |
| $ | 2,587 |
|
|
|
|
|
|
|
| ||||||||||
Total nonperforming assets as a percentage of loans and foreclosed assets |
|
| 0.39 | % |
| 0.66 | % |
| 0.47 | % |
| 0.46 | % |
| 0.37 | % |
|
|
|
|
|
|
| ||||||||||
Accruing loans past due 90 days or more |
| $ | — |
| $ | 2,178 |
| $ | 36 |
| $ | — |
| $ | 18 |
|
|
|
|
|
|
|
|
|
| Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
ALLOWANCE FOR LOAN LOSSES |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
| |||||||||||
Balance at beginning of period |
| $ | 11,131 |
| $ | 10,798 |
| $ | 10,519 |
| $ | 10,187 |
| $ | 10,079 |
|
Loans charged off |
|
| (286 | ) |
| (25 | ) |
| (147 | ) |
| (84 | ) |
| (293 | ) |
Loan recoveries |
|
| 23 |
|
| 43 |
|
| 201 |
|
| 191 |
|
| 111 |
|
|
|
|
|
|
|
| ||||||||||
Net (charge-offs) recoveries |
|
| (263 | ) |
| 18 |
|
| 54 |
|
| 107 |
|
| (182 | ) |
Provision for loan losses |
|
| 340 |
|
| 315 |
|
| 225 |
|
| 225 |
|
| 290 |
|
|
|
|
|
|
|
| ||||||||||
Balance at end of period |
| $ | 11,208 |
| $ | 11,131 |
| $ | 10,798 |
| $ | 10,519 |
| $ | 10,187 |
|
|
|
|
|
|
|
| ||||||||||
Allowance for loan losses as a percentage of total loans |
|
| 1.45 | % |
| 1.48 | % |
| 1.50 | % |
| 1.47 | % |
| 1.45 | % |
|
|
|
|
|
|
| ||||||||||
Allowance for loan losses as a percentage of nonperforming loans |
|
| 373.66 | % |
| 223.11 | % |
| 320.23 | % |
| 319.34 | % |
| 393.78 | % |
|
|
|
|
|
|
| ||||||||||
Net charge-offs (recoveries) as a percentage of average loans |
|
| 0.03 | % |
| 0.00 | % |
| -0.01 | % |
| -0.02 | % |
| 0.03 | % |
|
|
|
|
|
|
| ||||||||||
Provision for loan losses as a percentage of average loans |
|
| 0.05 | % |
| 0.04 | % |
| 0.03 | % |
| 0.03 | % |
| 0.04 | % |
|
|
|
|
|
|
|
|
| Quarter Ended |
| |||||||||||||
|
|
| ||||||||||||||
SELECTED RATIOS |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
|
|
|
|
| |||||||||||
Return on average assets (annualized) |
|
| 1.29 | % |
| 1.32 | % |
| 1.27 | % |
| 1.23 | % |
| 1.18 | % |
|
|
|
|
|
|
| ||||||||||
Return on average equity (annualized) |
|
| 17.29 | % |
| 17.34 | % |
| 16.71 | % |
| 16.16 | % |
| 15.58 | % |
|
|
|
|
|
|
| ||||||||||
Average shareholders’ equity to average assets |
|
| 7.45 | % |
| 7.61 | % |
| 7.60 | % |
| 7.63 | % |
| 7.57 | % |
|
|
|
|
|
|
| ||||||||||
Yield on earning assets |
|
| 6.55 | % |
| 6.32 | % |
| 6.12 | % |
| 5.83 | % |
| 5.61 | % |
|
|
|
|
|
|
| ||||||||||
Cost of interest bearing funds |
|
| 2.53 | % |
| 2.38 | % |
| 2.13 | % |
| 1.85 | % |
| 1.65 | % |
|
|
|
|
|
|
| ||||||||||
Net interest margin (tax equivalent) |
|
| 4.71 | % |
| 4.58 | % |
| 4.57 | % |
| 4.47 | % |
| 4.41 | % |
|
|
|
|
|
|
| ||||||||||
Efficiency ratio |
|
| 58.70 | % |
| 56.84 | % |
| 59.07 | % |
| 59.69 | % |
| 59.71 | % |
|
|
|
|
|
|
| ||||||||||
End of period book value per common share |
| $ | 6.54 |
| $ | 6.41 |
| $ | 6.25 |
| $ | 6.01 |
| $ | 6.03 |
|
|
|
|
|
|
|
| ||||||||||
End of period common shares outstanding |
|
| 12,444 |
|
| 12,429 |
|
| 12,421 |
|
| 12,390 |
|
| 12,359 |
|
|
|
|
|
|
|
|
6
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
|
| Three Months Ended |
| ||||||||||||||||
|
|
| |||||||||||||||||
|
| December 31, 2005 |
| December, 2004 |
| ||||||||||||||
|
|
|
| ||||||||||||||||
YIELD ANALYSIS |
| Average |
| Interest |
| Yield |
| Average |
| Interest |
| Yield |
| ||||||
|
|
|
|
|
|
| |||||||||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold & due from time |
| $ | 11,276 |
| $ | 110 |
|
| 3.87 | % | $ | 3,850 |
| $ | 31 |
|
| 3.18 | % |
Investment securities (taxable) |
|
| 241,656 |
|
| 2,369 |
|
| 3.92 | % |
| 218,512 |
|
| 1,974 |
|
| 3.61 | % |
Investment securities (tax-exempt) |
|
| 10,852 |
|
| 147 |
|
| 5.42 | % |
| 8,018 |
|
| 104 |
|
| 5.20 | % |
Loans |
|
| 753,311 |
|
| 14,159 |
|
| 7.46 | % |
| 694,177 |
|
| 10,921 |
|
| 6.26 | % |
|
|
|
|
|
|
|
| ||||||||||||
Total Interest Earning Assets |
|
| 1,017,095 |
|
| 16,785 |
|
| 6.55 | % |
| 924,557 |
|
| 13,030 |
|
| 5.61 | % |
Noninterest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| 31,390 |
|
|
|
|
|
|
|
| 29,282 |
|
|
|
|
|
|
|
Other assets |
|
| 45,173 |
|
|
|
|
|
|
|
| 41,140 |
|
|
|
|
|
|
|
Allowance for loan losses |
|
| (11,181 | ) |
|
|
|
|
|
|
| (10,165 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Earning Assets |
|
| 65,382 |
|
|
|
|
|
|
|
| 60,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 1,082,477 |
|
|
|
|
|
|
| $ | 984,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
| $ | 249,910 |
|
| 1,028 |
|
| 1.63 | % | $ | 239,046 |
|
| 690 |
|
| 1.15 | % |
Savings deposits |
|
| 170,004 |
|
| 918 |
|
| 2.14 | % |
| 168,191 |
|
| 577 |
|
| 1.36 | % |
Certificates and other time deposits |
|
| 188,949 |
|
| 1,548 |
|
| 3.25 | % |
| 153,104 |
|
| 935 |
|
| 2.43 | % |
Other borrowings |
|
| 128,368 |
|
| 1,215 |
|
| 3.76 | % |
| 109,713 |
|
| 580 |
|
| 2.10 | % |
|
|
|
|
|
|
|
| ||||||||||||
Total Interest Bearing Liabilities |
|
| 737,231 |
|
| 4,709 |
|
| 2.53 | % |
| 670,054 |
|
| 2,782 |
|
| 1.65 | % |
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
| 259,062 |
|
|
|
|
|
|
|
| 235,846 |
|
|
|
|
|
|
|
Other liabilities |
|
| 5,500 |
|
|
|
|
|
|
|
| 4,371 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
| 80,684 |
|
|
|
|
|
|
|
| 74,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Bearing Liabilities |
|
| 345,246 |
|
|
|
|
|
|
|
| 314,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Liabilities and Shareholders’ Equity |
| $ | 1,082,477 |
|
|
|
|
|
|
| $ | 984,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Interest Income and Margin (tax equivalent) |
|
|
|
| $ | 12,076 |
|
| 4.71 | % |
|
|
| $ | 10,248 |
|
| 4.41 | % |
|
|
|
|
|
|
|
|
|
|
|
|
7
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
|
| Twelve Months Ended |
| ||||||||||||||||
|
|
| |||||||||||||||||
|
| December 31, 2005 |
| December 31, 2004 |
| ||||||||||||||
|
|
|
| ||||||||||||||||
YIELD ANALYSIS |
| Average |
| Interest |
| Yield |
| Average |
| Interest |
| Yield |
| ||||||
|
|
|
|
|
|
| |||||||||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold & due from time |
| $ | 8,694 |
| $ | 292 |
|
| 3.36 | % | $ | 14,303 |
| $ | 170 |
|
| 1.19 | % |
Investment securities (taxable) |
|
| 219,751 | �� |
| 8,281 |
|
| 3.77 | % |
| 200,383 |
|
| 7,409 |
|
| 3.70 | % |
Investment securities (tax-exempt) |
|
| 9,314 |
|
| 496 |
|
| 5.33 | % |
| 7,280 |
|
| 395 |
|
| 5.43 | % |
Loans |
|
| 729,856 |
|
| 51,064 |
|
| 7.00 | % |
| 647,686 |
|
| 39,024 |
|
| 6.03 | % |
|
|
|
|
|
|
|
| ||||||||||||
Total Interest Earning Assets |
|
| 967,615 |
|
| 60,133 |
|
| 6.21 | % |
| 869,652 |
|
| 46,998 |
|
| 5.40 | % |
Noninterest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| 30,620 |
|
|
|
|
|
|
|
| 28,620 |
|
|
|
|
|
|
|
Other assets |
|
| 43,296 |
|
|
|
|
|
|
|
| 35,281 |
|
|
|
|
|
|
|
Allowance for loan losses |
|
| (10,779 | ) |
|
|
|
|
|
|
| (9,351 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Earning Assets |
|
| 63,137 |
|
|
|
|
|
|
|
| 54,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 1,030,752 |
|
|
|
|
|
|
| $ | 924,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
| $ | 237,415 |
|
| 3,428 |
|
| 1.44 | % | $ | 232,155 |
|
| 2,518 |
|
| 1.08 | % |
Savings deposits |
|
| 168,507 |
|
| 3,124 |
|
| 1.85 | % |
| 149,510 |
|
| 1,832 |
|
| 1.23 | % |
Certificates and other time deposits |
|
| 173,745 |
|
| 5,111 |
|
| 2.94 | % |
| 141,987 |
|
| 3,327 |
|
| 2.34 | % |
Other borrowings |
|
| 126,651 |
|
| 4,105 |
|
| 3.24 | % |
| 112,592 |
|
| 1,829 |
|
| 1.62 | % |
|
|
|
|
|
|
|
| ||||||||||||
Total Interest Bearing Liabilities |
|
| 706,318 |
|
| 15,768 |
|
| 2.23 | % |
| 636,244 |
|
| 9,506 |
|
| 1.49 | % |
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
| 241,735 |
|
|
|
|
|
|
|
| 212,482 |
|
|
|
|
|
|
|
Other liabilities |
|
| 4,704 |
|
|
|
|
|
|
|
| 3,899 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
| 77,995 |
|
|
|
|
|
|
|
| 71,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Noninterest Bearing Liabilities |
|
| 324,434 |
|
|
|
|
|
|
|
| 287,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Liabilities and Shareholders’ Equity |
| $ | 1,030,752 |
|
|
|
|
|
|
| $ | 924,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Interest Income and Margin (tax equivalent) |
|
|
|
| $ | 44,365 |
|
| 4.58 | % |
|
|
| $ | 37,492 |
|
| 4.31 | % |
|
|
|
|
|
|
|
|
|
|
|
|
8
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
LOAN PORTFOLIO |
| December 31, |
| % |
| December 31, |
| % |
| ||||
|
|
|
|
| |||||||||
Commercial and industrial |
| $ | 277,827 |
|
| 35.9 | % | $ | 261,571 |
|
| 37.2 | % |
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
| 260,736 |
|
| 33.6 | % |
| 224,720 |
|
| 32.0 | % |
Residential |
|
| 91,183 |
|
| 11.8 | % |
| 82,839 |
|
| 11.8 | % |
Construction and development |
|
| 106,227 |
|
| 13.7 | % |
| 93,558 |
|
| 13.3 | % |
Consumer |
|
| 38,913 |
|
| 5.0 | % |
| 39,931 |
|
| 5.7 | % |
|
|
|
|
|
| ||||||||
Total loans (gross) |
|
| 774,886 |
|
| 100.0 | % |
| 702,619 |
|
| 100.0 | % |
Unearned discounts |
|
| — |
|
| 0.0 | % |
| — |
|
| 0.0 | % |
|
|
|
|
|
| ||||||||
Total loans (net) |
| $ | 774,886 |
|
| 100.0 | % |
| 702,619 |
|
| 100.0 | % |
|
|
|
|
|
|
REGULATORY CAPITAL DATA |
| December 31, |
| December 31, |
| ||
|
|
| |||||
Tier 1 Capital |
| $ | 85,377 |
| $ | 76,435 |
|
Tier 1 Ratio |
|
| 10.64 | % |
| 10.14 | % |
Total Capital (Tier 1 + Tier 2) |
| $ | 95,240 |
| $ | 85,863 |
|
Total Capital Ratio |
|
| 11.89 | % |
| 11.40 | % |
Total Risk-Adjusted Assets |
| $ | 802,309 |
| $ | 753,509 |
|
Tier 1 Leverage Ratio |
|
| 7.97 | % |
| 7.85 | % |
OTHER DATA |
| December 31, |
| December 31, |
| ||
|
|
| |||||
Full Time Equivalent Employees (FTE’s) |
|
| 267 |
|
| 254 |
|
Stock Price Range (For the Quarter Ended): |
|
|
|
|
|
|
|
High |
| $ | 19.75 |
| $ | 18.95 |
|
Low |
| $ | 16.78 |
| $ | 16.33 |
|
Close |
| $ | 17.98 |
| $ | 18.75 |
|
9