| Exhibit 99 |
FOR RELEASE 6:00 AM EST, TUESDAY, NOVEMBER 4, 2008
Contact: Robert S. Tissue, Sr. Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@SummitFGI.com
SUMMIT FINANCIAL GROUP REPORTS THIRD QUARTER 2008 EARNINGS
MOOREFIELD, WV -- October 30, 2008 - -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported a net loss for the third quarter of $7.7 million, or $1.03 per diluted share, compared with third quarter 2007 earnings from continuing operations of $3.8 million, or $0.50 per diluted share. Third quarter 2008 results include a $12.0 million provision for loan losses that reflects the higher levels of nonperforming loans in the current quarter, as well as a non-cash other-than-temporary impairment charge of $4.5 million pre-tax ($2.8 million after-tax) relating to the further write-down to fair value of Summit’s investments in Fannie Mae and Freddie Mac preferred stock.
Excluding from third quarter operating earnings the 2008 impact of this impairment charge and a 2007 pre-tax gain of $752,000 ($474,000 after-tax) from the change in the fair value of interest rate swaps, pro forma third quarter results were a loss of $4.8 million for 2008, or $0.65 per diluted share, compared with pro forma 2007 income from continuing operations of $3.3 million, or $0.44 per diluted share.
H. Charles Maddy III, president and chief executive officer of Summit Financial Group, stated, “Obviously we are disappointed with our operating results for this quarter, but we are encouraged that our core earnings capacity remains solid going forward and we are confident that we have provided appropriately for our known problem assets. Accordingly, we anticipate our fourth quarter 2008 earnings will range between $0.45 and $0.48 per diluted share.”
Highlights for the 2008 third quarter include:
| · | A $12.0 million provision for possible loan losses recorded this quarter, raising the allowance for loan losses to 1.83 percent of loans in response to recently identified nonperforming loans of $49.9 million. |
| · | Recorded an other-than-temporary impairment charge of $4.5 million to reflect Fannie Mae and Freddie Mac preferred stock investments at their fair values as of September 30, 2008 as a result of the third quarter announcement by the U.S. Treasury and the Federal Housing Finance Agency (“FHFA”) that both Fannie Mae and Freddie Mac were being placed under conservatorship and that management of the entities would be under the control of the FHFA. The plan announced by the U.S. Treasury and FHFA included the elimination of dividends on all Fannie Mae and Freddie Mac preferred stock issuances. |
| · | Operating revenues, excluding nonrecurring items, increased 4.6 percent over the prior-year third quarter but declined 9.5 percent from the linked quarter. |
| · | A decline of 39 basis points in the net interest margin was primarily due to $1.6 million of interest income reversed when loans were placed on nonaccrual status in the current quarter. |
| · | Loan growth of $172.3 million, or 17.3 percent year-over-year, was derived principally from commercial real estate and residential mortgages. |
| · | Plans to complete the acquisition of Greater Atlantic Bank are proceeding according to the revised agreement entered into on June 10, 2008; it is anticipated that the merger will be completed in the fourth quarter of 2008 subject to regulatory approval. |
For the nine months ended September 30, 2008, the Company recorded a net loss of $1.3 million, or $0.17 per diluted share, compared with net income from continuing operations of $9.7 million, or $1.33 per diluted share, for the prior-year nine month period. Excluding other-than-temporary impairment charges relating to Fannie Mae and Freddie Mac aggregating $6.0 million for 2008 ($3.80 million after-tax) and pre-tax changes in the fair value of interest rate swaps of $705,000 and $694,000 in 2008 and 2007, respectively, pro forma earnings for the nine months ended September 30, 2008 were $2.1 million, or $0.28 per diluted share, compared with pro forma net income from continuing operations of $9.2 million, or $1.27 per diluted share, for the first nine months of 2007.
“In the space of one short quarter, Summit caught up with the rest of the world,” commented Mr. Maddy. “Despite the quality of our borrowers and our markets, the real estate crisis and its ensuing impact on financial markets have finally reached our shores. Summit serves an affluent clientele, possessing resources that have sustained loan performance far into this real estate cycle. Unfortunately, and for different reasons, several of our larger real estate developers ran out of cash at the same time.
“We are responding aggressively to the situation. Each of these projects is basically sound, and we have several workout strategies available to us. We are in the process of developing a plan for each project that will reduce our exposures expeditiously while we strive to minimize potential losses,” Mr. Maddy continued. “We doubled our loan loss reserve this quarter, which now stands at a very strong 1.83 percent of loans, and believe we are adequately reserved to cover losses associated with these recently identified problem assets.”
Total revenue, composed of net interest income and noninterest income, was $8.2 million for the third quarter of 2008, down 36.4 percent from year-ago revenue of $12.9 million. Excluding the 2008 impairment charge on securities and the 2007 changes in fair value of interest rate swaps, operating revenue for third quarter 2008 was $12.7 million, up 4.6 percent from the $12.2 million reported in the third quarter of 2007. Net interest income was $10.4 million for the current period, 3.9 percent higher than the $10.0 million reported for the year-ago quarter. Growth resulted from an 18.0 percent increase in average earning assets year-over-year partially offset by a 39 basis point decline in the net interest margin to 2.89 percent.
Mr. Maddy remarked, “Our goal has been to maintain a neutral balance sheet and a stable net interest margin, and we have been consistently successful quarter after quarter; over the previous four quarters, for example, the margin has varied within a narrow band from 3.24 percent to 3.33 percent. During the current quarter, however,
we reversed $1.6 million from interest income when we transferred $49.9 million of loans to nonaccrual status; had this not been the case, our margin would have been in excess of 3.30 percent for the current quarter . On a going forward basis, lost interest income from nonaccrual loans should approximate $770,000 each quarter given the present level of nonperforming loans. Consistent with past experience, we do not anticipate any material impact from the recent 50 basis point cut in the fed funds rate.”
Noninterest income, reported on a GAAP basis, was a loss of $2.2 million for the 2008 third quarter compared with income of $2.9 million for the year-ago quarter. Excluding the securities impairment charge of $4.5 million in the current quarter and the $752,000 change in fair value of interest rate swaps in the 2007 quarter, noninterest income from operations totaled $2.3 million for the 2008 third quarter and $2.2 million for the 2007 third quarter. Insurance commissions of approximately $1.3 million each quarter, primarily from the Kelly Agencies, should contribute an after-tax profit of approximately $400,000 for the full year.
The $12.0 million provision for loan losses recorded this quarter was the primary factor contributing to the decline in operating earnings, up from $525,000 in the year-ago period and $1.8 million in the second quarter of 2008. Although only $917,000 was charged off this quarter, management estimates that the loss potential associated with the $50 million of loans transferred to nonaccrual status should be less than $10 million. After a thorough review of its loan portfolio metrics and problem loans, management anticipates that the provision for loan losses should return to its normal level of approximately $750,000 in the fourth quarter (barring unforeseen circumstances which are not apparent at this time). Year-to-date, Summit had net charge-offs of $2.5 million, or 0.30 percent of average loans (annualized); this compares with net charge-offs of $0.8 million, or 0.11 percent of average loans for the 2007 nine-month period.
Noninterest expense was generally well controlled, up 6.8 percent or $465,000 from the year-ago third quarter, to $7.3 million. Salaries and employee benefits, which accounted for 56.5 percent of noninterest expense in the current quarter, were $4.1 million, up 1.5 percent over prior year, when they were 59.4 percent of noninterest expense. The other expense category accounted for the majority of the year-over-year increase, up $344,000, or 21.1 percent, to $2.0 million; FDIC premium was up $135,000; telephone expense was up $60,000 and foreclosure and repossession expenses increased $54,000. Summit’s efficiency ratio, based on continuing operations and excluding one-time nonrecurring items, was 54.52 percent for the current quarter, 61 basis points higher than the year-ago ratio of 53.91 percent primarily from the reversal of interest income from loans placed on nonaccrual status this quarter.
Assets at September 30, 2008 were $1.6 billion, up $226.6 million, or 16.9 percent, since the 2007 third quarter-end. Total loans were $1.2 billion at period end, up $172.3 million or 17.3 percent during the same twelve month period. Year over year loan growth was mainly derived from commercial real estate and 1-4 family residential mortgages, which increased $71.6 million, or 20.3 percent, and $62.0 million, or 20.3 percent, respectively. Construction and development (C&D) loans outstanding were $225.6 million at third quarter 2008, up $13.0 million or 6.1 percent from a year-ago.
For the most recent quarter, loan growth slowed to 2.3 percent (9.2 percent annualized), increasing by $26.2 million. The majority of loan growth ($16.8 million, or 64 percent of the total) was in the commercial real estate and C&D loan categories, which grew 33.63 percent and 30.43 percent, respectively.
Commercial real estate and 1-4 family residential mortgages represent 36.3 percent and 31.4 percent of total loans, respectively, at September 30, 2008. Non-real estate related commercial loans accounted for 9.8 percent of the loan portfolio, while C&D loans of $225.6 million represented 19.3 percent of total loans, down from 21.3 percent at September 30, 2007; C&D loans were the only category to reduce significantly over the course of the past year.
Nonperforming loans were $59.8 million, or 5.13 percent of total loans, at September 30, 2008, compared with $15.6 million, or 1.37 percent of loans, for the linked quarter, and $6.9 million, or 0.69 percent, for the year-ago quarter. During the current quarter, $49.9 million of loans were placed on nonaccrual, offset by a net reduction of $9.7 million of nonperforming loans through reclassification to performing status ($3.4 million), payoffs ($826,000), charge-offs ($656,000) and transfer to OREO ($625,000). The loans reclassified to nonperforming status this quarter principally consist of four projects:
| · | A completed hotel and adjacent golf course in northern Virginia, having a total loan balance of $23.7 million, which opened late this summer and has yet to stabilize its operations to the point to generate sufficient cash flow to service its debt. |
| · | 3 projects in VA and WV consisting of developed and partially developed residential lots, representing total loan balances of $21.5 million. Prices are depressed and sales have been slower than anticipated. |
Mr. Maddy commented that these projects had been performing until recently He added, “These are all viable projects, but the absorption rates are too slow in this weak market to repay our loans. We have credit staff in-house with extensive experience to manage the workout process to a favorable conclusion; we anticipate that the level of nonperforming loans should reduce to approximately 2.5 percent of loans within a six month period through aggressive collection efforts and discounted sales of our collateral.”
At September 30, 2008, foreclosed real estate was $2.3 million compared with $2.5 million for the linked quarter and $815,000 for the year-ago quarter.
Loans in the 30-89 day delinquent category totaled $13.8 million at September 30, 2008, down from $39.6 million for the preceding quarter and $7.5 million at September 30, 2007. Residential mortgages accounted for $8.5 million of third quarter 2008 delinquencies, with three larger loans in Virginia representing $2.7 million.
For the current quarter, net charge-offs were $917,000, or an annualized 0.32 percent of average loans, compared with $999,000, or an annualized 0.36 percent for the linked quarter, and $566,000, or 0.23 percent annualized for the year earlier period. The $12.0 million loan loss provision recorded this quarter raised the loan loss reserve to 1.83 percent of loans at September 30, 2008 compared with 0.91 percent for the linked quarter and 0.88 percent at September 30, 2007.
Total deposits at September 30, 2008 were $945.2 million compared with $857.7 million at June 30, 2008 and $828.6 million for the year-ago quarter, an increase of $87.5 million or 10.2 percent, and $116.6, or 14.1 percent, respectively. Core deposits were approximately 70 percent of total deposits in the current quarter compared with 74 percent in the linked quarter and 77 percent in the year-ago quarter. Despite a greater reliance on time deposits to meet funding needs, Summit has maintained a consistent margin through diversification of funding sources, in particular, the Federal Home Loan Bank.
Shareholders' equity at September 30, 2008 was $80.5 million, a decrease of 13.9 percent over the last twelve months. Capital ratios for Summit and its banking subsidiary, Summit Community Bank, remain in excess of regulatory requirements for “well-capitalized”, the highest regulatory capital requirement under Federal regulation. As of third quarter-end, common shares outstanding totaled 7,410,791 compared with 7,402,666 for the 2007 third quarter.
ABOUT THE COMPANY
Summit Financial Group, Inc., a financial holding company with total assets of $1.6 billion, operates fifteen banking locations through its wholly-owned community bank, Summit Community Bank, headquartered in Moorefield, West Virginia. Summit also operates Summit Insurance Services, LLC headquartered in Moorefield, West Virginia.
FORWARD-LOOKING STATEMENTS
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.
NON-GAAP FINANCIAL MEASURES
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Specifically, Summit adjusted several GAAP performance measures to exclude the effects of the non-cash, other-than-temporary impairment charges on securities recorded in the 2nd and 3rd quarters of 2008 and to exclude the effects of the non-cash changes in fair value of interest rate swaps included in its Statements of Income. Management deems these items to be unusual in nature and believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of Summit's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||
| Quarterly Performance Summary -- Q3 2008 vs Q3 2007 | ||||||||||||
| For the Quarter Ended | Percent | |||||||||||
| Dollars in thousands | 9/30/2008 | 9/30/2007 | Change | |||||||||
| Condensed Statements of Income | ||||||||||||
| Interest income | ||||||||||||
| Loans, including fees | $ | 18,527 | $ | 19,921 | -7.0 | % | ||||||
| Securities | 4,108 | 3,446 | 19.2 | % | ||||||||
| Other | 2 | 9 | -77.8 | % | ||||||||
| Total interest income | 22,637 | 23,376 | -3.2 | % | ||||||||
| Interest expense | ||||||||||||
| Deposits | 6,704 | 8,627 | -22.3 | % | ||||||||
| Borrowings | 5,549 | 4,753 | 16.7 | % | ||||||||
| Total interest expense | 12,253 | 13,380 | -8.4 | % | ||||||||
| Net interest income | 10,384 | 9,996 | 3.9 | % | ||||||||
| Provision for loan losses | 12,000 | 525 | 2185.7 | % | ||||||||
| Net interest income after provision | ||||||||||||
| for loan losses | (1,616 | ) | 9,471 | -117.1 | % | |||||||
| Noninterest income | ||||||||||||
| Insurance commissions | 1,337 | 1,303 | 2.6 | % | ||||||||
| Service fee income | 828 | 788 | 5.1 | % | ||||||||
| Other-than-temporary impairment of securities | (4,495 | ) | - | n/a | ||||||||
| Net cash settlement on interest rate swaps | - | (181 | ) | -100.0 | % | |||||||
| Change in fair value of interest rate swaps | - | 752 | -100.0 | % | ||||||||
| Other income | 155 | 244 | -36.5 | % | ||||||||
| Total noninterest income | (2,175 | ) | 2,906 | -174.8 | % | |||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 4,113 | 4,054 | 1.5 | % | ||||||||
| Net occupancy expense | 489 | 466 | 4.9 | % | ||||||||
| Equipment expense | 538 | 496 | 8.5 | % | ||||||||
| Professional fees | 173 | 176 | -1.7 | % | ||||||||
| Other expenses | 1,972 | 1,628 | 21.1 | % | ||||||||
| Total noninterest expense | 7,285 | 6,820 | 6.8 | % | ||||||||
| Income from continuing operations before income taxes | (11,076 | ) | 5,557 | -299.3 | % | |||||||
| Income taxes | (3,402 | ) | 1,802 | -288.8 | % | |||||||
| Income from continuing operations | (7,674 | ) | 3,755 | -304.4 | % | |||||||
| Discontinued operations | ||||||||||||
| Exit costs and impairment of long-lived assets | - | - | n/m | |||||||||
| Operating income (loss) | - | (200 | ) | n/m | ||||||||
| Income (loss) from discontinued operations | ||||||||||||
| before income taxes | - | (200 | ) | n/m | ||||||||
| Income taxes | - | (69 | ) | n/m | ||||||||
| Income (loss) from discontinued operations | - | (131 | ) | n/m | ||||||||
| Net Income | $ | (7,674 | ) | $ | 3,624 | -311.8 | % | |||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||
| Quarterly Performance Summary -- Q3 2008 vs Q3 2007 | ||||||||||||
| For the Quarter Ended | Percent | |||||||||||
| 9/30/2008 | 9/30/2007 | Change | ||||||||||
| Per Share Data | ||||||||||||
| Earnings per share from continuing operations | ||||||||||||
| Basic | $ | (1.04 | ) | $ | 0.51 | -303.9 | % | |||||
| Diluted | $ | (1.03 | ) | $ | 0.50 | -306.0 | % | |||||
| Earnings per share from discontinued operations | ||||||||||||
| Basic | $ | - | $ | (0.02 | ) | -100.0 | % | |||||
| Diluted | $ | - | $ | (0.02 | ) | -100.0 | % | |||||
| Earnings per share | ||||||||||||
| Basic | $ | (1.04 | ) | $ | 0.49 | -312.2 | % | |||||
| Diluted | $ | (1.03 | ) | $ | 0.48 | -314.6 | % | |||||
| Average shares outstanding | ||||||||||||
| Basic | 7,410,791 | 7,399,213 | 0.2 | % | ||||||||
| Diluted | 7,445,242 | 7,458,515 | -0.2 | % | ||||||||
| Performance Ratios | ||||||||||||
| Return on average equity | -34.71 | % | 16.13 | % | -315.2 | % | ||||||
| Return on average equity - continuing operations | -34.71 | % | 16.71 | % | -307.7 | % | ||||||
| Return on average assets | -1.99 | % | 1.11 | % | -279.3 | % | ||||||
| Return on average assets - continuing operations | -1.99 | % | 1.15 | % | -273.0 | % | ||||||
| Net interest margin | 2.89 | % | 3.28 | % | -11.9 | % | ||||||
| Efficiency ratio (A) | 54.52 | % | 55.49 | % | -1.7 | % | ||||||
| Efficiency ratio - continuing operations (A) | 54.52 | % | 53.91 | % | 1.1 | % | ||||||
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||
| Nine Month Performance Summary -- 2008 vs 2007 | ||||||||||||
| For the Nine Months Ended | Percent | |||||||||||
| Dollars in thousands | 9/30/2008 | 9/30/2007 | Change | |||||||||
| Condensed Statements of Income | ||||||||||||
| Interest income | ||||||||||||
| Loans, including fees | $ | 58,173 | $ | 57,712 | 0.8 | % | ||||||
| Securities | 11,655 | 9,832 | 18.5 | % | ||||||||
| Other | 8 | 43 | -81.4 | % | ||||||||
| Total interest income | 69,836 | 67,587 | 3.3 | % | ||||||||
| Interest expense | ||||||||||||
| Deposits | 20,263 | 26,537 | -23.6 | % | ||||||||
| Borrowings | 16,876 | 12,324 | 36.9 | % | ||||||||
| Total interest expense | 37,139 | 38,861 | -4.4 | % | ||||||||
| Net interest income | 32,697 | 28,726 | 13.8 | % | ||||||||
| Provision for loan losses | 14,750 | 1,305 | 1030.3 | % | ||||||||
| Net interest income after provision | ||||||||||||
| for loan losses | 17,947 | 27,421 | -34.6 | % | ||||||||
| Noninterest income | ||||||||||||
| Insurance commissions | 3,939 | 1,719 | 129.1 | % | ||||||||
| Service fee income | 2,395 | 2,141 | 11.9 | % | ||||||||
| Other-than-temporary impairment of securities | (6,036 | ) | - | - | ||||||||
| Net cash settlement on interest rate swaps | (170 | ) | (544 | ) | -68.8 | % | ||||||
| Change in fair value of interest rate swaps | 705 | 694 | 1.6 | % | ||||||||
| Other income | 968 | 649 | 49.2 | % | ||||||||
| Total noninterest income | 1,801 | 4,659 | -61.3 | % | ||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 12,695 | 10,518 | 20.7 | % | ||||||||
| Net occupancy expense | 1,407 | 1,292 | 8.9 | % | ||||||||
| Equipment expense | 1,606 | 1,436 | 11.8 | % | ||||||||
| Professional fees | 473 | 543 | -12.9 | % | ||||||||
| Other expenses | 5,341 | 4,399 | 21.4 | % | ||||||||
| Total noninterest expense | 21,522 | 18,188 | 18.3 | % | ||||||||
| Income from continuing operations before income taxes | (1,774 | ) | 13,892 | -112.8 | % | |||||||
| Income taxes | (518 | ) | 4,223 | -112.3 | % | |||||||
| Income from continuing operations | (1,256 | ) | 9,669 | -113.0 | % | |||||||
| Discontinued operations | ||||||||||||
| Exit costs and impairment of long-lived assets | - | 123 | n/a | |||||||||
| Operating income (loss) | - | (798 | ) | -100.0 | % | |||||||
| Income (loss) from discontinued operations | ||||||||||||
| before income taxes | - | (675 | ) | -100.0 | % | |||||||
| Income taxes | - | (231 | ) | -100.0 | % | |||||||
| Income (loss) from discontinued operations | - | (444 | ) | -100.0 | % | |||||||
| Net Income | $ | (1,256 | ) | $ | 9,225 | -113.6 | % | |||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||
| Nine Month Performance Summary -- 2008 vs 2007 | ||||||||||||
| For the Nine Months Ended | Percent | |||||||||||
| 9/30/2008 | 9/30/2007 | Change | ||||||||||
| Per Share Data | ||||||||||||
| Earnings per share from continuing operations | ||||||||||||
| Basic | (0.17 | ) | 1.34 | -112.7 | % | |||||||
| Diluted | (0.17 | ) | 1.33 | -112.8 | % | |||||||
| Earnings per share from discontinued operations | ||||||||||||
| Basic | - | (0.06 | ) | -100.0 | % | |||||||
| Diluted | - | (0.06 | ) | -100.0 | % | |||||||
| Earnings per share | ||||||||||||
| Basic | $ | (0.17 | ) | $ | 1.28 | -113.3 | % | |||||
| Diluted | $ | (0.17 | ) | $ | 1.27 | -113.4 | % | |||||
| Average shares outstanding | ||||||||||||
| Basic | 7,409,986 | 7,190,875 | 3.0 | % | ||||||||
| Diluted | 7,447,313 | 7,252,778 | 2.7 | % | ||||||||
| Performance Ratios | ||||||||||||
| Return on average equity | -1.82 | % | 14.41 | % | -112.6 | % | ||||||
| Return on average equity - continuing operations | -1.82 | % | 15.11 | % | -112.0 | % | ||||||
| Return on average assets | -0.11 | % | 0.97 | % | -111.3 | % | ||||||
| Return on average assets - continuing operations | -0.11 | % | 1.01 | % | -110.9 | % | ||||||
| Net interest margin | 3.16 | % | 3.27 | % | -3.4 | % | ||||||
| Efficiency ratio (A) | 52.11 | % | 55.65 | % | -6.4 | % | ||||||
| Efficiency ratio - continuing operations (A) | 52.11 | % | 52.99 | % | -1.7 | % | ||||||
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||
Five Quarter Performance Summary | |||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Condensed Statements of Income | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans, including fees | $ | 18,527 | $ | 19,576 | $ | 20,069 | $ | 20,199 | $ | 19,921 | ||||||||||
| Securities | 4,108 | 3,761 | 3,786 | 3,590 | 3,446 | |||||||||||||||
| Other | 2 | 3 | 4 | 8 | 9 | |||||||||||||||
| Total interest income | 22,637 | 23,340 | 23,859 | 23,797 | 23,376 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 6,704 | 6,435 | 7,124 | 7,759 | 8,627 | |||||||||||||||
| Borrowings | 5,549 | 5,530 | 5,796 | 5,697 | 4,753 | |||||||||||||||
| Total interest expense | 12,253 | 11,965 | 12,920 | 13,456 | 13,380 | |||||||||||||||
| Net interest income | 10,384 | 11,375 | 10,939 | 10,341 | 9,996 | |||||||||||||||
| Provision for loan losses | 12,000 | 1,750 | 1,000 | 750 | 525 | |||||||||||||||
| Net interest income after provision | ||||||||||||||||||||
| for loan losses | (1,616 | ) | 9,625 | 9,939 | 9,591 | 9,471 | ||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Insurance commissions | 1,337 | 1,275 | 1,327 | 1,157 | 1,303 | |||||||||||||||
| Service fee income | 828 | 824 | 743 | 863 | 788 | |||||||||||||||
| Other-than-temporary impairment of securities | (4,495 | ) | (1,541 | ) | - | - | - | |||||||||||||
| Net cash settlement on interest rate swaps | - | - | (170 | ) | (183 | ) | (181 | ) | ||||||||||||
| Change in fair value of interest rate swaps | - | - | 705 | 783 | 752 | |||||||||||||||
| Other income | 155 | 570 | 243 | 78 | 244 | |||||||||||||||
| Total noninterest income | (2,175 | ) | 1,128 | 2,848 | 2,698 | 2,906 | ||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 4,113 | 4,187 | 4,395 | 4,090 | 4,054 | |||||||||||||||
| Net occupancy expense | 489 | 443 | 476 | 466 | 466 | |||||||||||||||
| Equipment expense | 538 | 533 | 534 | 568 | 496 | |||||||||||||||
| Professional fees | 173 | 182 | 118 | 152 | 176 | |||||||||||||||
| Other expenses | 1,972 | 1,804 | 1,566 | 1,634 | 1,628 | |||||||||||||||
| Total noninterest expense | 7,285 | 7,149 | 7,089 | 6,910 | 6,820 | |||||||||||||||
| Income before income taxes | (11,076 | ) | 3,604 | 5,698 | 5,379 | 5,557 | ||||||||||||||
| Income taxes | (3,402 | ) | 1,010 | 1,874 | 1,511 | 1,802 | ||||||||||||||
| Income from continuing operations | (7,674 | ) | 2,594 | 3,824 | 3,868 | 3,755 | ||||||||||||||
| Discontinued operations | ||||||||||||||||||||
| Exit costs and impairment of long-lived assets | - | - | - | (435 | ) | - | ||||||||||||||
| Operating income (loss) | - | - | - | (9,549 | ) | (200 | ) | |||||||||||||
| Income (loss) from discontinued operations | ||||||||||||||||||||
| before income taxes | - | - | - | (9,984 | ) | (200 | ) | |||||||||||||
| Income taxes | - | - | - | (3,347 | ) | (69 | ) | |||||||||||||
| Income (loss) from discontinued operations | - | - | - | (6,637 | ) | (131 | ) | |||||||||||||
| Net Income | $ | (7,674 | ) | $ | 2,594 | $ | 3,824 | $ | (2,769 | ) | $ | 3,624 | ||||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||
Five Quarter Performance Summary | ||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | ||||||||||||||||
| Per Share Data | ||||||||||||||||||||
| Earnings per share from continuing operations | ||||||||||||||||||||
| Basic | $ | (1.04 | ) | $ | 0.35 | $ | 0.52 | $ | 0.52 | $ | 0.51 | |||||||||
| Diluted | $ | (1.03 | ) | $ | 0.35 | $ | 0.51 | $ | 0.52 | $ | 0.50 | |||||||||
| Earnings per share from discontinued operations | ||||||||||||||||||||
| Basic | $ | - | $ | - | $ | - | $ | (0.89 | ) | $ | (0.02 | ) | ||||||||
| Diluted | $ | - | $ | - | $ | - | $ | (0.89 | ) | $ | (0.02 | ) | ||||||||
| Earnings per share | ||||||||||||||||||||
| Basic | $ | (1.04 | ) | $ | 0.35 | $ | 0.52 | $ | (0.37 | ) | $ | 0.49 | ||||||||
| Diluted | $ | (1.03 | ) | $ | 0.35 | $ | 0.51 | $ | (0.37 | ) | $ | 0.48 | ||||||||
| Average shares outstanding | ||||||||||||||||||||
| Basic | 7,410,791 | 7,410,217 | 7,408,941 | 7,401,684 | 7,399,213 | |||||||||||||||
| Diluted | 7,445,242 | 7,448,170 | 7,449,105 | 7,450,049 | 7,458,515 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Return on average equity | -34.71 | % | 11.16 | % | 16.55 | % | -11.62 | % | 16.13 | % | ||||||||||
| Return on average equity - continuing operations | -34.71 | % | 11.16 | % | 16.55 | % | 16.23 | % | 16.71 | % | ||||||||||
| Return on average assets | -1.99 | % | 0.70 | % | 1.06 | % | -0.81 | % | 1.11 | % | ||||||||||
| Return on average assets - continuing operations | -1.99 | % | 0.70 | % | 1.06 | % | 1.13 | % | 1.15 | % | ||||||||||
| Net interest margin | 2.89 | % | 3.33 | % | 3.28 | % | 3.24 | % | 3.28 | % | ||||||||||
| Efficiency ratio - continuing operations (A) | 54.52 | % | 49.87 | % | 52.11 | % | 53.03 | % | 53.91 | % | ||||||||||
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Selected Balance Sheet Data | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Dollars in thousands, except per share amounts | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Assets | $ | 1,567,325 | $ | 1,525,978 | $ | 1,465,110 | $ | 1,435,536 | $ | 1,340,679 | ||||||||||
| Securities | 327,648 | 307,232 | 302,029 | 300,066 | 279,289 | |||||||||||||||
| Loans, net | 1,145,606 | 1,130,483 | 1,079,223 | 1,052,489 | 986,437 | |||||||||||||||
| Intangible assets | 9,792 | 9,880 | 9,968 | 10,055 | 10,143 | |||||||||||||||
| Retail deposits | 663,569 | 634,007 | 652,148 | 652,296 | 638,633 | |||||||||||||||
| Brokered time deposits | 281,655 | 223,742 | 184,796 | 176,391 | 189,966 | |||||||||||||||
| Short-term borrowings | 98,316 | 147,900 | 93,950 | 172,055 | 124,699 | |||||||||||||||
| Long-term borrowings and | ||||||||||||||||||||
| subordinated debentures | 434,016 | 419,775 | 431,918 | 335,327 | 283,268 | |||||||||||||||
| Shareholders' equity | 80,510 | 91,466 | 91,955 | 89,420 | 93,475 | |||||||||||||||
| Book value per share | $ | 10.86 | $ | 12.34 | $ | 12.41 | $ | 12.06 | $ | 12.63 | ||||||||||
| Tangible book value per share | $ | 9.54 | $ | 11.01 | $ | 11.07 | $ | 10.70 | $ | 11.26 | ||||||||||
| Tangible equity / Tangible assets | 4.5 | % | 5.4 | % | 5.6 | % | 5.6 | % | 6.3 | % | ||||||||||
| Tier 1 leverage ratio | 6.2 | % | 7.0 | % | 7.8 | % | 7.3 | % | 8.1 | % | ||||||||||
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Loan Composition | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Commercial | $ | 115,106 | $ | 112,793 | $ | 111,442 | $ | 92,599 | $ | 87,018 | ||||||||||
| Commercial real estate | 423,982 | 415,187 | 394,619 | 384,478 | 352,396 | |||||||||||||||
| Construction and development | 225,582 | 217,623 | 211,052 | 225,270 | 212,570 | |||||||||||||||
| Residential real estate | 366,989 | 361,009 | 336,985 | 322,640 | 305,016 | |||||||||||||||
| Consumer | 31,433 | 30,361 | 30,206 | 31,956 | 33,254 | |||||||||||||||
| Other | 6,240 | 6,206 | 6,395 | 6,641 | 6,794 | |||||||||||||||
| Total loans | 1,169,332 | 1,143,179 | 1,090,699 | 1,063,584 | 997,048 | |||||||||||||||
| Less unearned fees and interest | 2,293 | 2,347 | 1,878 | 1,903 | 1,884 | |||||||||||||||
| Total loans net of unearned fees and interest | 1,167,039 | 1,140,832 | 1,088,821 | 1,061,681 | 995,164 | |||||||||||||||
| Less allowance for loan losses | 21,433 | 10,349 | 9,598 | 9,192 | 8,727 | |||||||||||||||
| Loans, net | $ | 1,145,606 | $ | 1,130,483 | $ | 1,079,223 | $ | 1,052,489 | $ | 986,437 | ||||||||||
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Retail Deposit Composition | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Non interest bearing checking | $ | 70,353 | $ | 68,912 | $ | 64,111 | $ | 65,727 | $ | 65,230 | ||||||||||
| Interest bearing checking | 182,383 | 194,255 | 201,820 | 222,825 | 230,491 | |||||||||||||||
| Savings | 58,678 | 60,245 | 53,427 | 40,845 | 39,596 | |||||||||||||||
| Time deposits | 352,155 | 310,595 | 332,790 | 322,899 | 303,316 | |||||||||||||||
| Total retail deposits | $ | 663,569 | $ | 634,007 | $ | 652,148 | $ | 652,296 | $ | 638,633 | ||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Asset Quality Information | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Gross loan charge-offs | $ | 969 | $ | 1,079 | $ | 646 | $ | 332 | $ | 599 | ||||||||||
| Gross loan recoveries | (52 | ) | (80 | ) | (52 | ) | (47 | ) | (33 | ) | ||||||||||
| Net loan charge-offs | $ | 917 | $ | 999 | $ | 594 | $ | 285 | $ | 566 | ||||||||||
| Net loan charge-offs to average loans (annualized) | 0.32 | % | 0.36 | % | 0.22 | % | 0.11 | % | 0.23 | % | ||||||||||
| Allowance for loan losses | $ | 21,433 | $ | 10,349 | $ | 9,598 | $ | 9,192 | $ | 8,727 | ||||||||||
| Allowance for loan losses as a percentage | ||||||||||||||||||||
| of period end loans | 1.87 | % | 0.91 | % | 0.88 | % | 0.86 | % | 0.88 | % | ||||||||||
| Nonperforming assets: | ||||||||||||||||||||
| Nonperforming loans | $ | 59,845 | $ | 15,614 | $ | 13,957 | $ | 10,333 | $ | 6,916 | ||||||||||
| Foreclosed properties and | ||||||||||||||||||||
| other repossessed assets | 2,284 | 2,546 | 2,205 | 2,058 | 815 | |||||||||||||||
| Total | $ | 62,129 | $ | 18,160 | $ | 16,162 | $ | 12,391 | $ | 7,731 | ||||||||||
| Nonperforming loans to period end loans | 5.13 | % | 1.37 | % | 1.28 | % | 0.97 | % | 0.69 | % | ||||||||||
| Nonperforming assets to period end assets | 3.96 | % | 1.19 | % | 1.11 | % | 0.86 | % | 0.58 | % | ||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Commercial | $ | 140 | $ | 81 | $ | 695 | $ | 716 | $ | 712 | ||||||||||
| Commercial real estate | 27,347 | 3,184 | 5,095 | 4,346 | 582 | |||||||||||||||
| Construction and development | 29,127 | 6,460 | 3,694 | 2,016 | 2,557 | |||||||||||||||
| Residential real estate | 2,799 | 5,521 | 4,247 | 3,012 | 2,871 | |||||||||||||||
| Consumer | 432 | 368 | 226 | 243 | 194 | |||||||||||||||
| Total | $ | 59,845 | $ | 15,614 | $ | 13,957 | $ | 10,333 | $ | 6,916 | ||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||
| Loans Past Due 30-89 Days | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Dollars in thousands | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Commercial | $ | 706 | $ | 1,089 | $ | 321 | $ | 264 | $ | 87 | ||||||||||
| Commercial real estate | 1,407 | 24,606 | 1,249 | 1,604 | 2,278 | |||||||||||||||
| Construction and development | 1,996 | 9,919 | 1,059 | 997 | 817 | |||||||||||||||
| Residential real estate | 8,537 | 2,962 | 3,792 | 4,485 | 3,303 | |||||||||||||||
| Consumer | 1,140 | 979 | 946 | 1,335 | 984 | |||||||||||||||
| Total | $ | 13,786 | $ | 39,555 | $ | 7,367 | $ | 8,685 | $ | 7,469 | ||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||||||
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | ||||||||||||||||||||||||
| Q3 2008 vs Q3 2007 | Q3 2008 | Q3 2007 | ||||||||||||||||||||||
| Average | Earnings / | Yield / | Average | Earnings / | Yield / | |||||||||||||||||||
| Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||||
| Loans, net of unearned interest | ||||||||||||||||||||||||
| Taxable | $ | 1,144,923 | $ | 18,413 | 6.40 | % | $ | 967,106 | $ | 19,790 | 8.12 | % | ||||||||||||
| Tax-exempt | 8,365 | 173 | 8.23 | % | 9,523 | 192 | 8.00 | % | ||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Taxable | 269,735 | 3,563 | 5.25 | % | 223,731 | 2,900 | 5.14 | % | ||||||||||||||||
| Tax-exempt | 50,484 | 820 | 6.46 | % | 47,910 | 822 | 6.81 | % | ||||||||||||||||
| Interest bearing deposits other banks | ||||||||||||||||||||||||
| and Federal funds sold | 295 | 2 | 2.70 | % | 662 | 11 | 6.59 | % | ||||||||||||||||
| Total interest earning assets | 1,473,802 | 22,971 | 6.20 | % | 1,248,932 | 23,715 | 7.53 | % | ||||||||||||||||
| Noninterest earning assets | ||||||||||||||||||||||||
| Cash & due from banks | 20,936 | 14,356 | ||||||||||||||||||||||
| Premises & equipment | 22,047 | 22,103 | ||||||||||||||||||||||
| Other assets | 38,782 | 32,935 | ||||||||||||||||||||||
| Allowance for loan losses | (11,053 | ) | (8,939 | ) | ||||||||||||||||||||
| Total assets | $ | 1,544,514 | $ | 1,309,387 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||||
| Interest bearing | ||||||||||||||||||||||||
| demand deposits | $ | 187,442 | $ | 586 | 1.24 | % | $ | 230,918 | $ | 1,969 | 3.38 | % | ||||||||||||
| Savings deposits | 60,584 | 261 | 1.71 | % | 40,752 | 163 | 1.59 | % | ||||||||||||||||
| Time deposits | 585,197 | 5,857 | 3.98 | % | 517,405 | 6,495 | 4.98 | % | ||||||||||||||||
| Short-term borrowings | 119,769 | 671 | 2.23 | % | 89,941 | 1,180 | 5.21 | % | ||||||||||||||||
| Long-term borrowings and | ||||||||||||||||||||||||
| subordinated debentures | 418,093 | 4,878 | 4.64 | % | 263,968 | 3,573 | 5.37 | % | ||||||||||||||||
| 1,371,085 | 12,253 | 3.56 | % | 1,142,984 | 13,380 | 4.64 | % | |||||||||||||||||
| Noninterest bearing liabilities | ||||||||||||||||||||||||
| Demand deposits | 78,012 | 66,079 | ||||||||||||||||||||||
| Other liabilities | 6,991 | 10,435 | ||||||||||||||||||||||
| Total liabilities | 1,456,088 | 1,219,498 | ||||||||||||||||||||||
| Shareholders' equity | 88,426 | 89,889 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders' equity | $ | 1,544,514 | $ | 1,309,387 | ||||||||||||||||||||
| NET INTEREST EARNINGS | $ | 10,718 | $ | 10,335 | ||||||||||||||||||||
| NET INTEREST YIELD ON EARNING ASSETS | 2.89 | % | 3.28 | % | ||||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||||||
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | ||||||||||||||||||||||||
| YTD 2008 vs YTD 2007 | ||||||||||||||||||||||||
| For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Earnings / | Yield / | Average | Earnings / | Yield / | |||||||||||||||||||
| Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||||
| Loans, net of unearned interest | ||||||||||||||||||||||||
| Taxable | $ | 1,107,474 | $ | 57,824 | 6.97 | % | $ | 945,496 | $ | 57,435 | 8.12 | % | ||||||||||||
| Tax-exempt | 8,647 | 529 | 8.17 | % | 9,274 | 550 | 7.93 | % | ||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Taxable | 256,914 | 9,921 | 5.16 | % | 214,602 | 8,216 | 5.12 | % | ||||||||||||||||
| Tax-exempt | 50,923 | 2,594 | 6.80 | % | 46,931 | 2,419 | 6.89 | % | ||||||||||||||||
| Interest bearing deposits other banks | ||||||||||||||||||||||||
| and Federal funds sold | 391 | 7 | 2.39 | % | 1,190 | 43 | 4.83 | % | ||||||||||||||||
| Total interest earning assets | 1,424,349 | 70,875 | 6.65 | % | 1,217,493 | 68,663 | 7.54 | % | ||||||||||||||||
| Noninterest earning assets | ||||||||||||||||||||||||
| Cash & due from banks | 18,118 | 14,003 | ||||||||||||||||||||||
| Premises & equipment | 22,058 | 22,207 | ||||||||||||||||||||||
| Other assets | 37,579 | 29,132 | ||||||||||||||||||||||
| Allowance for loan losses | (10,176 | ) | (8,564 | ) | ||||||||||||||||||||
| Total assets | $ | 1,491,928 | $ | 1,274,271 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||||
| Interest bearing | ||||||||||||||||||||||||
| demand deposits | $ | 198,246 | $ | 2,134 | 1.44 | % | $ | 227,461 | $ | 6,120 | 3.60 | % | ||||||||||||
| Savings deposits | 54,583 | 668 | 1.63 | % | 43,449 | 561 | 1.73 | % | ||||||||||||||||
| Time deposits | 536,493 | 17,461 | 4.35 | % | 536,784 | 19,856 | 4.95 | % | ||||||||||||||||
| Short-term borrowings | 110,228 | 2,161 | 2.62 | % | 78,002 | 3,098 | 5.31 | % | ||||||||||||||||
| Long-term borrowings and | ||||||||||||||||||||||||
| subordinated debentures | 418,265 | 14,715 | 4.70 | % | 227,914 | 9,226 | 5.41 | % | ||||||||||||||||
| 1,317,815 | 37,139 | 3.76 | % | 1,113,610 | 38,861 | 4.67 | % | |||||||||||||||||
| Noninterest bearing liabilities | ||||||||||||||||||||||||
| Demand deposits | 74,153 | 64,028 | ||||||||||||||||||||||
| Other liabilities | 8,085 | 11,297 | ||||||||||||||||||||||
| Total liabilities | 1,400,053 | 1,188,935 | ||||||||||||||||||||||
| Shareholders' equity | 91,875 | 85,336 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders' equity | $ | 1,491,928 | $ | 1,274,271 | ||||||||||||||||||||
| NET INTEREST EARNINGS | $ | 33,736 | $ | 29,802 | ||||||||||||||||||||
| NET INTEREST YIELD ON EARNING ASSETS | 3.16 | % | 3.27 | % | ||||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures | ||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||||||||
| Dollars in thousands (except per share amounts) | 9/30/2008 | 9/30/2007 | 9/30/2008 | 9/30/2007 | ||||||||||||
| Income from continuing operations - excluding other- | ||||||||||||||||
| than- temporary charge on securities and change in | ||||||||||||||||
| fair value of interest rate swaps | $ | (4,842 | ) | $ | 3,281 | $ | 2,103 | $ | 9,232 | |||||||
| Other-than-temporary impairment charge on securities | (4,495 | ) | - | (6,036 | ) | - | ||||||||||
| Applicable income tax effect | 1,663 | - | 2,233 | - | ||||||||||||
| Change in fair value of interest rate swaps | - | 752 | 705 | 694 | ||||||||||||
| Applicable income tax effect | - | (278 | ) | (261 | ) | (257 | ) | |||||||||
| (2,832 | ) | 474 | (3,359 | ) | 437 | |||||||||||
| GAAP income from continuing operations | $ | (7,674 | ) | $ | 3,755 | $ | (1,256 | ) | $ | 9,669 | ||||||
| Diluted earnings per share from continuing operations - | ||||||||||||||||
| excluding other-than-temporary impairment charge | ||||||||||||||||
| on securities | $ | (0.65 | ) | $ | 0.44 | $ | 0.28 | $ | 1.27 | |||||||
| Other-than-temporary impairment charge on securities | (0.60 | ) | - | (0.81 | ) | - | ||||||||||
| Applicable income tax effect | 0.22 | - | 0.30 | - | ||||||||||||
| Change in fair value of interest rate swaps | - | 0.10 | 0.09 | 0.10 | ||||||||||||
| Applicable income tax effect | - | (0.04 | ) | (0.03 | ) | (0.04 | ) | |||||||||
| (0.38 | ) | 0.06 | (0.45 | ) | 0.06 | |||||||||||
| GAAP diluted earnings per share | $ | (1.03 | ) | $ | 0.50 | $ | (0.17 | ) | $ | 1.33 | ||||||
| Total revenue - excluding other-than-temporary | ||||||||||||||||
| impairment charge on securities and change in fair | ||||||||||||||||
| value of interest rate swaps | $ | 12,704 | $ | 12,150 | $ | 39,829 | $ | 32,691 | ||||||||
| Other-than-temporary impairment charge on securities | (4,495 | ) | - | (6,036 | ) | - | ||||||||||
| Change in fair value of interest rate swaps | - | 752 | 705 | 694 | ||||||||||||
| (4,495 | ) | 752 | (5,331 | ) | 694 | |||||||||||
| GAAP total revenue | $ | 8,209 | $ | 12,902 | $ | 34,498 | $ | 33,385 | ||||||||
| Non-interest income - excluding other-than-temporary | ||||||||||||||||
| impairment charge on securities and change in fair | ||||||||||||||||
| value of interest rate swaps | $ | 2,320 | $ | 2,154 | $ | 7,132 | $ | 3,965 | ||||||||
| Other-than-temporary impairment charge on securities | (4,495 | ) | - | (6,036 | ) | - | ||||||||||
| Change in fair value of interest rate swaps | - | 752 | 705 | 694 | ||||||||||||
| (4,495 | ) | 752 | (5,331 | ) | 694 | |||||||||||
| GAAP non-interest income | $ | (2,175 | ) | $ | 2,906 | $ | 1,801 | $ | 4,659 | |||||||