Exhibit 99.1
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Alabama National BanCorporation Announces Second Quarter 2007 Earnings
FOR IMMEDIATE RELEASE - Birmingham, Alabama (July 24, 2007) - Alabama National BanCorporation (“ANB”) (NASDAQ/Global Select Market: ALAB) today announced earnings for the quarter and six-month period ended June 30, 2007.
For the 2007 second quarter, ANB reported net income of $22.0 million, or $1.06 per diluted share. Six months year-to-date net income was $42.0 million, or $2.01 per diluted share. As previously reported, ANB sold its ANB Insurance Services, Inc. subsidiary on May 1, 2007. Earnings from the operation of this subsidiary and the gain from its sale are recorded as income from discontinued operations in the income statement.
Excluding the discontinued insurance operations, ANB reported earnings from continuing operations of $21.1 million in the 2007 second quarter, up 6.5% from the $19.8 million earned in the 2007 first quarter and up 9.2% from the 2006 second quarter’s $19.3 million in net income. Diluted earnings per share (continuing operations) of $1.01 in the 2007 second quarter were 7.0% above the $0.94 reported in the 2007 first quarter and 0.6% below the $1.02 reported in the year ago second quarter. Diluted cash earnings per share (continuing operations) were $1.05 in the 2007 second quarter, as compared with $1.00 and $1.06 in the 2007 first quarter and 2006 second quarter, respectively.
ANB had a record quarter for revenue production, with total revenue from continuing operations of $85.9 million. This revenue total was up 3.6% from the $82.7 million reported in the 2007 first quarter, and up 11.8% from the 2006 second quarter’s $76.8 million.
On a year-to-date basis, ANB’s $40.8 million in income from continuing operations equated to $1.95 in diluted earnings per share, down 3.9% from the $2.03 earned in the first six months of 2006. Year-to-date revenue from continuing operations for the first six months of 2007 was $168.6 million, up 14.4% from the 2006 six months.
ANB’s taxable equivalent net interest margin held steady during the 2007 second quarter with 2007 first quarter levels, declining 2 basis points to 3.72%. On a year-to-date basis, the 2007 six months net interest margin of 3.73% was 0.24% below levels for the same period in 2006. Ending loans (excluding loans held for sale) grew $113 million during the 2007 second quarter, representing an 8.3% annualized growth rate for the quarter. Loans grew $249 million during the first six months of 2007, representing an annualized 9.4% year-to-date growth rate. Ending deposits of $5.79 billion were approximately flat with first quarter levels and grew at an 8.0% annualized rate for the first six months of the year. Average loans and average deposits grew at 10.1% and 11.6% annualized rates during the 2007 second quarter, respectively. Ending total assets at June 30, 2007 were $7.9 billion.
On the credit quality front, ANB recognized $2.48 million in net charge-offs for the quarter, representing 0.18% of loans on an annualized basis, bringing the six month year-to-date annualized rate to 0.10%. The second quarter charge-offs were primarily comprised of charge-downs on properties on which the company’s subsidiary banks have or expect to foreclose. The company recorded a provision for loan losses of $3.3 million in the 2007 second quarter, up from $1.9 million recorded in the 2006 second quarter. Nonaccrual loans were $10.7 million at quarter end, or 0.19% of total loans. Other real estate owned was $7.7 million, bringing total nonperforming assets to $18.4 million. As a percentage of period-end loans and other real estate owned, nonperforming assets rose to 0.32% in the 2007 second quarter as compared with 0.13% in the year ago quarter, and 0.24% in the quarter ended March 31, 2007.
“We are pleased to report improvement from the first quarter’s performance, though our results remain below our long term expectations,” said John H. Holcomb III, Chairman and CEO. “We were particularly pleased to be able to report a record quarter for revenue production. Our net interest margin held steady from first quarter 2007 levels, and we had respectable loan growth for the quarter and year-to-date. Deposit growth was also respectable on an average and year-to-date basis. Our noninterest income areas showed some improvement, with several business lines reporting record or near-record results. Although the quarter’s 18 basis points in net loan losses and the 10 basis points in year-to-date net loan losses are both above our historical average, I believe we are continuing to take appropriate action on problem credits and to recognize problems promptly, which practices will serve us well in this economy.”
ANB’s performance resulted in a return on average tangible assets of 1.18% and a return on average tangible equity of 16.24% for the 2007 second quarter, down from 1.20% and 17.06% in the 2006 second quarter. On a 2007 year-to-date basis, these ratios were 1.14% and 15.71%, respectively. During the 2007 second quarter, ANB repurchased 200,000 shares of its common stock in open market purchases. Tangible book value per share at June 30, 2007 was $26.46.
ANB is a bank holding company operating 103 banking locations through eleven bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Alabama Exchange Bank in Tuskegee; and Bank of Dadeville. Florida subsidiaries are: Indian River National Bank in Vero Beach; First Gulf Bank, N.A. in north west Florida and Baldwin County, Alabama; Florida Choice Bank in metropolitan Orlando and central Florida; Community Bank of Naples, N.A.; CypressCoquina Bank in Ormond Beach; and Millennium Bank in Gainesville. ANB has two subsidiaries in Georgia: Georgia State Bank and The Peachtree Bank, both in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Commercial mortgage services, including the origination of permanent commercial real estate mortgage loans for various lenders, are provided by Byars and Company, a division of First American Bank. Brokerage services are provided to customers through First American Bank’s wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value.
Alabama National BanCorporation common stock is traded on the NASDAQ Global Select Market under the symbol “ALAB.”
Conference Call Instructions:
Alabama National will discuss financial results for the second quarter and six months ended June 30, 2007, as well as its goals and general outlook for the remainder of 2007, in a conference call to be held Wednesday, July 25, 2007 at 9:00 a.m. Central Time (10:00 Eastern Time). A listen-only simulcast and replay of Alabama National’s conference call will be available on-line at the following Internet links:
www.alabamanational.com, under “News,”
or
www.viavid.net/dce.aspx?sid=00004139,
on July 25, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days.
For live interactive access to the teleconference, please dial 1-800-811-8824 at 9:00 a.m. Central Time (10:00 Eastern) on July 25. For those without Internet access, a telephonic replay will be available through August 25, 2007 by dialing 1-888-203-1112 and entering Replay Pass Code 1854784.
Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values.
This press release, including the attached selected unaudited financial tables which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These “non-GAAP” financial measures are “cash earnings from continuing operations” (cash earnings per share from continuing operations), “tangible book value” (tangible book value per share), “return on average tangible equity” and “return on average tangible assets.” ANB’s management uses these non-GAAP measures in its analysis of ANB’s performance. Cash earnings from continuing operations is defined as net income from continuing operations plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings from continuing operations per basic and diluted share is defined as cash earnings from continuing operations divided by basic and diluted common shares outstanding. ANB’s management includes cash earnings from continuing operations measures to compare the company’s earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB’s performance. Tangible book value is defined as total equity reduced by recorded intangible assets. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace that are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period) divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as earnings for the period (annualized for the quarterly period) divided by average assets reduced by average goodwill and other intangible assets. ANB’s management includes these measures because it believes that they are important when measuring the company’s performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the “Reconciliation Table” in the attached unaudited financial tables for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures.
This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB’s senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
Contacts: Alabama National BanCorporation | ||||
John H. Holcomb III | William E. Matthews, V | |||
Chairman of the Board and | Executive Vice President and | |||
Chief Executive Officer | Chief Financial Officer | |||
(205)583-3648 | (205)583-3650 | |||
# # #
ALABAMA NATIONAL BANCORPORATION | ||||||||||
(Unaudited Financial Highlights) | ||||||||||
(in thousands, except per share amounts and percentages) | ||||||||||
Three Months Ended | ||||||||||
June 30, | Percentage | |||||||||
2007 | 2006 | Change (b) | ||||||||
Net interest income | $ | 64,206 | $ | 58,943 | 8.9 | % | ||||
Noninterest income | 21,657 | 17,863 | 21.2 | |||||||
Total revenue | 85,863 | 76,806 | 11.8 | |||||||
Provision for loan and lease losses | 3,273 | 1,920 | 70.5 | |||||||
Noninterest expense | 50,691 | 45,377 | 11.7 | |||||||
Income before taxes from continuing operations | 31,899 | 29,509 | 8.1 | |||||||
Income taxes | 10,840 | 10,222 | 6.0 | |||||||
Net income from continuing operations | 21,059 | 19,287 | 9.2 | |||||||
Income from discontinued operations (net of tax) | 979 | 30 | 3163.3 | |||||||
Net income | $ | 22,038 | $ | 19,317 | 14.1 | % | ||||
Weighted average common and common | ||||||||||
equivalent shares outstanding | ||||||||||
Basic | 20,714 | 18,806 | 10.1 | % | ||||||
Diluted | 20,858 | 18,984 | 9.9 | |||||||
Net income per common share from continuing operations | ||||||||||
Basic | $ | 1.02 | $ | 1.03 | (0.9 | )% | ||||
Diluted | 1.01 | 1.02 | (.6 | ) | ||||||
Net income per common share | ||||||||||
Basic | $ | 1.06 | $ | 1.03 | 3.6 | % | ||||
Diluted | 1.06 | 1.02 | 3.8 | |||||||
Cash earnings per share from continuing operations (a) | ||||||||||
Total | $ | 21,918 | $ | 20,144 | 8.8 | % | ||||
Basic | 1.06 | 1.07 | (1.2 | ) | ||||||
Diluted | 1.05 | 1.06 | (1.0 | ) | ||||||
Cash dividends declared on | ||||||||||
common stock | $ | .41 | $ | .375 | ||||||
Return on average assets | 1.13 | % | 1.16 | % | ||||||
Return on average tangible assets | 1.18 | 1.20 | ||||||||
Return on average equity | 10.14 | 11.33 | ||||||||
Return on average tangible equity | 16.24 | 17.06 | ||||||||
Noninterest Income | ||||||||||
Service charge income | $ | 4,190 | $ | 4,011 | 4.5 | % | ||||
Investment services income | 1,664 | 966 | 72.3 | |||||||
Wealth management income | 6,332 | 5,364 | 18.0 | |||||||
Gain on sale of mortgages | 3,693 | 2,661 | 38.8 | |||||||
Commercial mortgage banking income | 397 | 284 | 39.8 | |||||||
Gain on disposal of assets | 104 | 32 | 225.0 | |||||||
Securities losses | - | (516 | ) | NM | ||||||
Bank owned life insurance | 1,120 | 798 | 40.4 | |||||||
Other | 4,157 | 4,263 | (2.5 | ) | ||||||
Total noninterest income | $ | 21,657 | $ | 17,863 | 21.2 | % | ||||
(a) | Cash earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. |
(b) | Percentage change based on actual not rounded values. |
NM - Not meaningful
Six Months Ended | ||||||||||
June 30, | Percentage | |||||||||
2007 | 2006 | Change (b) | ||||||||
Net interest income | $ | 127,257 | $ | 111,518 | 14.1 | % | ||||
Noninterest income | 41,352 | 35,810 | 15.5 | |||||||
Total revenue | 168,609 | 147,328 | 14.4 | |||||||
Provision for loan and lease losses | 5,035 | 3,163 | 59.2 | |||||||
Noninterest expense | 101,801 | 87,416 | 16.5 | |||||||
Income before taxes from continuing operations | 61,773 | 56,749 | 8.9 | |||||||
Income taxes | 20,939 | 19,664 | 6.5 | |||||||
Net income from continuing operations | 40,834 | 37,085 | 10.1 | |||||||
Income from discontinued operations (net of tax) | 1,149 | 105 | 994.3 | |||||||
Net income | $ | 41,983 | $ | 37,190 | 12.9 | % | ||||
Weighted average common and common | ||||||||||
equivalent shares outstanding | ||||||||||
Basic | 20,752 | 18,074 | 14.8 | % | ||||||
Diluted | 20,904 | 18,252 | 14.5 | |||||||
Net income per common share from continuing operations | ||||||||||
Basic | $ | 1.97 | $ | 2.05 | (4.1 | )% | ||||
Diluted | 1.95 | 2.03 | (3.9 | ) | ||||||
Net income per common share | ||||||||||
Basic | $ | 2.02 | $ | 2.06 | (1.7 | )% | ||||
Diluted | 2.01 | 2.04 | (1.4 | ) | ||||||
Cash earnings per share from continuing operations (a) | ||||||||||
Total | $ | 42,643 | $ | 38,453 | 10.9 | % | ||||
Basic | 2.05 | 2.13 | (3.4 | ) | ||||||
Diluted | 2.04 | 2.11 | (3.2 | ) | ||||||
Cash dividends declared on | ||||||||||
common stock | $ | .82 | $ | .75 | ||||||
Return on average assets | 1.09 | % | 1.19 | % | ||||||
Return on average tangible assets | 1.14 | �� | 1.22 | |||||||
Return on average equity | 9.76 | 11.88 | ||||||||
Return on average tangible equity | 15.71 | 19.33 | ||||||||
Noninterest Income | ||||||||||
Service charge income | $ | 8,112 | $ | 7,711 | 5.2 | % | ||||
Investment services income | 2,725 | 1,830 | 48.9 | |||||||
Wealth management income | 12,036 | 10,731 | 12.2 | |||||||
Gain on sale of mortgages | 6,866 | 5,272 | 30.2 | |||||||
Commercial mortgage banking income | 796 | 1,016 | (21.7 | ) | ||||||
Gain on disposal of assets | 493 | 539 | (8.5 | ) | ||||||
Securities (losses) gains | - | (1,250 | ) | NM | ||||||
Bank owned life insurance | 2,225 | 1,540 | 44.5 | |||||||
Other | 8,099 | 8,421 | (3.8 | ) | ||||||
Total noninterest income | $ | 41,352 | $ | 35,810 | 15.5 | % | ||||
(a) | Cash earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. |
(b) | Percentage change based on actual not rounded values. |
NM - Not meaningful
June 30, | December 31, | Percentage | ||||||||
2007 | 2006 | Change | ||||||||
Total assets | $ | 7,902,537 | $ | 7,671,274 | 3.0 | % | ||||
Earning assets | 7,083,566 | 6,856,309 | 3.3 | |||||||
Securities (a) | 1,226,486 | 1,265,774 | (3.1 | ) | ||||||
Loans held for sale | 39,512 | 27,652 | 42.9 | |||||||
Loans and leases, net of unearned income | 5,705,522 | 5,456,136 | 4.6 | |||||||
Allowance for loan and lease losses | 70,474 | 68,246 | 3.3 | |||||||
Deposits | 5,785,510 | 5,567,603 | 3.9 | |||||||
Short-term borrowings | 133,372 | 161,830 | (17.6 | ) | ||||||
Long-term debt | 442,378 | 402,399 | 9.9 | |||||||
Stockholders' equity | 865,593 | 853,623 | 1.4 | |||||||
(a) Excludes trading securities | ||||||||||
ASSET QUALITY ANALYSIS | ||||||||||
(in thousands, except percentages) | ||||||||||
As of / For the Three Months Ended | ||||||||||
June 30, 2007 | March 31, 2007 | June 30, 2006 | ||||||||
Nonaccrual loans | $ | 10,686 | $ | 11,985 | $ | 5,625 | ||||
Restructured loans | - | - | - | |||||||
Loans past due 90 days or more and | ||||||||||
still accruing | -0- | -0- | -0- | |||||||
Total nonperforming loans | 10,686 | 11,985 | 5,625 | |||||||
Other real estate owned | 7,678 | 1,607 | 401 | |||||||
Total nonperforming assets | 18,364 | 13,592 | 6,026 | |||||||
Total non performing assets as a | ||||||||||
percentage of period-end loans | ||||||||||
and other real estate (a) | 0.32 | % | 0.24 | % | 0.13 | % | ||||
Allowance for loan and lease losses | 70,474 | 69,677 | 60,739 | |||||||
Provision for loan and lease losses | 3,273 | 1,762 | 1,920 | |||||||
Loans charged off | 2,799 | 501 | 513 | |||||||
Loan recoveries | 323 | 170 | 405 | |||||||
Net loan and lease losses | 2,476 | 331 | 108 | |||||||
Allowance for loan and lease losses as a | ||||||||||
percentage of period-end loans and leases (a) | 1.24 | % | 1.25 | % | 1.26 | % | ||||
Allowance for loan and lease losses as a | ||||||||||
percentage of period-end | ||||||||||
nonperforming loans | 659.50 | 581.37 | 1,079.80 | |||||||
Net losses to average loans and leases (annualized) | 0.18 | 0.02 | 0.01 | |||||||
For the Six Months Ended | ||||||||||
June 30, | Percentage | |||||||||
2007 | 2006 | Change | ||||||||
Provision for loan and lease losses | $ | 5,035 | $ | 3,163 | 59.2 | % | ||||
Loans charged off | 3,300 | 1,018 | 224.17 | |||||||
Loan recoveries | 493 | 700 | (29.6 | ) | ||||||
Net loan and lease losses | 2,807 | 318 | 782.7 | |||||||
Net losses to average loans and leases (annualized) | 0.10 | % | 0.01 | % | ||||||
(a) Excludes loans held for sale | ||||||||||
TAXABLE EQUIVALENT YIELDS/RATES | ||||||||||
Three Months Ended | ||||||||||
June 30, 2007 | March 31, 2007 | June 30, 2006 | ||||||||
Interest income: | ||||||||||
Interest and fees on loans | 8.09 | % | 8.13 | % | 7.75 | % | ||||
Interest on securities: | ||||||||||
Taxable | 4.61 | 4.62 | 4.45 | |||||||
Non-taxable | 6.08 | 6.22 | 6.41 | |||||||
Total interest earning assets | 7.48 | 7.48 | 7.10 | |||||||
Interest expense: | ||||||||||
Interest on deposits | 4.17 | % | 4.10 | % | 3.38 | % | ||||
Interest on short-term borrowing | 5.49 | 5.11 | 4.63 | |||||||
Interest on long-term debt | 5.09 | 5.41 | 5.00 | |||||||
Total interest bearing liabilities | 4.32 | 4.28 | 3.67 | |||||||
Net interest spread | 3.16 | 3.20 | 3.43 | |||||||
Net interest margin | 3.72 | 3.74 | 3.97 | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2007 | 2006 | ||||||
Interest income: | |||||||
Interest and fees on loans | 8.11 | % | 7.60 | % | |||
Interest on securities: | |||||||
Taxable | 4.61 | 4.41 | |||||
Non-taxable | 6.15 | 6.47 | |||||
Total interest earning assets | 7.48 | 6.95 | |||||
Interest expense: | |||||||
Interest on deposits | 4.13 | % | 3.21 | % | |||
Interest on short-term borrowing | 5.28 | 4.68 | |||||
Interest on long-term debt | 5.24 | 4.86 | |||||
Total interest bearing liabilities | 4.30 | 3.49 | |||||
Net interest spread | 3.18 | 3.46 | |||||
Net interest margin | 3.73 | 3.97 | |||||
STOCKHOLDERS' EQUITY AND CAPITAL RATIOS | |||||||
June 30, | December 31, | ||||||
2007 | 2006 | ||||||
Stockholders' Equity: | |||||||
Equity to assets | 10.95 | % | 11.13 | % | |||
Leverage ratio | 7.95 | 7.99 | |||||
Book value per common share (a) | $ | 42.42 | $ | 41.51 | |||
Tangible book value per common share (a)(b) | 26.46 | 25.55 | |||||
Ending shares outstanding | 20,407 | 20,562 |
(a) | Includes a cumulative mark to market adjustment to equity of $(0.48) and $(0.29) per share at June 30, 2007 and December 31, 2006, respectively. |
(b) | Total equity reduced by intangible assets divided by common shares outstanding. |
RECONCILIATION TABLE | |||||||||||||
(in thousands, except per share amounts and percentages) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
Net income from continuing operations | $ | 21,059 | $ | 19,287 | $ | 40,834 | $ | 37,085 | |||||
Amortization of intangibles, net of tax | 859 | 857 | 1,809 | 1,368 | |||||||||
Cash earnings from continuing operations | $ | 21,918 | $ | 20,144 | $ | 42,643 | $ | 38,453 | |||||
Net income per common share from | |||||||||||||
continuing operations - basic | $ | 1.02 | $ | 1.03 | $ | 1.97 | $ | 2.05 | |||||
Effect of amortization of intangibles per share | 0.04 | 0.04 | 0.08 | 0.08 | |||||||||
Cash earnings per common share from | |||||||||||||
continuing operations - basic | $ | 1.06 | $ | 1.07 | $ | 2.05 | $ | 2.13 | |||||
Net income per common share from | |||||||||||||
continuing operations - diluted | $ | 1.01 | $ | 1.02 | $ | 1.95 | $ | 2.03 | |||||
Effect of amortization of intangibles per share | 0.04 | 0.04 | 0.09 | 0.08 | |||||||||
Cash earnings per common share from | |||||||||||||
continuing operations - diluted | $ | 1.05 | $ | 1.06 | $ | 2.04 | $ | 2.11 | |||||
Average assets | $ | 7,825,999 | $ | 6,678,659 | $ | 7,776,049 | $ | 6,326,862 | |||||
Average intangible assets | (327,089 | ) | (229,375 | ) | (328,731 | ) | (193,489 | ) | |||||
Average tangible assets | $ | 7,498,910 | $ | 6,449,284 | $ | 7,447,318 | $ | 6,133,373 | |||||
Return on average assets | 1.13 | % | 1.16 | % | 1.09 | % | 1.19 | % | |||||
Effect of average intangible assets | 0.05 | 0.04 | 0.05 | 0.03 | |||||||||
Return on average tangible assets | 1.18 | % | 1.20 | % | 1.14 | % | 1.22 | % | |||||
Average equity | $ | 871,492 | $ | 683,649 | $ | 867,747 | $ | 631,380 | |||||
Average intangible assets | (327,089 | ) | (229,375 | ) | (328,731 | ) | (193,489 | ) | |||||
Average tangible equity | $ | 544,403 | $ | 454,274 | $ | 539,016 | $ | 437,891 | |||||
Return on average equity | 10.14 | % | 11.33 | % | 9.76 | % | 11.88 | % | |||||
Effect of average intangible assets | 6.10 | 5.73 | 5.95 | 7.45 | |||||||||
Return on average tangible equity | 16.24 | % | 17.06 | % | 15.71 | % | 19.33 | % | |||||
As of | |||||||
June 30, | December 31, | ||||||
2007 | 2006 | ||||||
Book value | $ | 865,593 | $ | 853,623 | |||
Intangible assets | (325,566 | ) | (328,166 | ) | |||
Tangible book value | $ | 540,027 | $ | 525,457 | |||
Book value per common share | $ | 42.42 | $ | 41.51 | |||
Effect of intangible assets per share | (15.96 | ) | (15.96 | ) | |||
Tangible book value per common share | $ | 26.46 | $ | 25.55 | |||
Alabama National BanCorporation and Subsidiaries | |||||||
Consolidated Statements of Financial Condition (Unaudited) | |||||||
(In thousands, except share amounts) | |||||||
June 30, 2007 | December 31, 2006 | ||||||
Assets | |||||||
Cash and due from banks | $ | 182,101 | $ | 200,153 | |||
Interest-bearing deposits in other banks | 25,419 | 16,350 | |||||
Federal funds sold and securities purchased under resell agreements | 83,627 | 89,865 | |||||
Trading securities, at fair value | 3,000 | 532 | |||||
Investment securities (fair values of $691,943 and $705,460) | 713,900 | 716,406 | |||||
Securities available for sale, at fair value | 512,586 | 549,368 | |||||
Loans held for sale | 39,512 | 27,652 | |||||
Loans and leases | 5,710,253 | 5,461,400 | |||||
Unearned income | (4,731 | ) | (5,264 | ) | |||
Loans and leases, net of unearned income | 5,705,522 | 5,456,136 | |||||
Allowance for loan and lease losses | (70,474 | ) | (68,246 | ) | |||
Net loans and leases | 5,635,048 | 5,387,890 | |||||
Property, equipment and leasehold improvements, net | 164,722 | 155,001 | |||||
Assets to be disposed of | - | 3,549 | |||||
Goodwill | 311,682 | 311,583 | |||||
Other intangible assets, net | 13,884 | 16,583 | |||||
Cash surrender value of life insurance … | 107,248 | 104,992 | |||||
Receivable from investment division customers | 6,438 | 1,114 | |||||
Other assets | 103,370 | 90,236 | |||||
Totals | $ | 7,902,537 | $ | 7,671,274 | |||
Liabilities and Stockholders' Equity | |||||||
Deposits: | |||||||
Noninterest bearing | $ | 767,775 | $ | 849,127 | |||
Interest bearing | 5,017,735 | 4,718,476 | |||||
Total deposits | 5,785,510 | 5,567,603 | |||||
Federal funds purchased and securities sold under repurchase agreements | 611,291 | 627,297 | |||||
Liabilities to be disposed of | - | 1,019 | |||||
Accrued expenses and other liabilities | 54,955 | 56,057 | |||||
Payable for securities purchased for investment division customers | 9,438 | 1,446 | |||||
Short-term borrowings | 133,372 | 161,830 | |||||
Long-term debt | 442,378 | 402,399 | |||||
Total liabilities | 7,036,944 | 6,817,651 | |||||
Common stock, $1 par; 50,000,000 shares authorized; 20,606,707 and 20,562,467 | |||||||
shares issued at June 30, 2007 and December 31, 2006, respectively | 20,607 | 20,562 | |||||
Additional paid-in capital | 575,836 | 573,756 | |||||
Retained earnings | 291,562 | 266,668 | |||||
Treasury stock at cost, 200,000 shares at June 30, 2007 | (12,578 | ) | - | ||||
Accumulated other comprehensive loss, net of tax | (9,834 | ) | (7,363 | ) | |||
Total stockholders' equity | 865,593 | 853,623 | |||||
Totals | $ | 7,902,537 | $ | 7,671,274 | |||
Alabama National BanCorporation and Subsidiaries | |||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||
(In thousands, except per share data) | |||||||||||||
For the Three Months | For the Six Months | ||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
Interest income: | |||||||||||||
Interest and fees on loans and leases | 115,100 | 91,857 | 226,665 | 169,095 | |||||||||
Interest on securities | 13,838 | 12,924 | 27,966 | 25,054 | |||||||||
Interest on deposits in other banks | 270 | 146 | 554 | 225 | |||||||||
Interest on trading securities | 10 | 8 | 24 | 19 | |||||||||
Interest on federal funds sold and securities purchased | |||||||||||||
under resell agreements | 907 | 993 | 1,794 | 1,725 | |||||||||
Total interest income | 130,125 | 105,928 | 257,003 | 196,118 | |||||||||
Interest expense: | |||||||||||||
Interest on deposits | 51,661 | 33,943 | 100,541 | 61,040 | |||||||||
Interest on federal funds purchased and securities sold | |||||||||||||
under repurchase agreements | 7,235 | 7,255 | 14,819 | 13,065 | |||||||||
Interest on short-term borrowings | 1,669 | 724 | 3,675 | 1,121 | |||||||||
Interest on long-term debt | 5,354 | 5,063 | 10,711 | 9,374 | |||||||||
Total interest expense | 65,919 | 46,985 | 129,746 | 84,600 | |||||||||
Net interest income | 64,206 | 58,943 | 127,257 | 111,518 | |||||||||
Provision for loan and lease losses | 3,273 | 1,920 | 5,035 | 3,163 | |||||||||
Net interest income after provision for loan and lease losses | 60,933 | 57,023 | 122,222 | 108,355 | |||||||||
Noninterest income: | |||||||||||||
Securities losses | - | (516 | ) | - | (1,250 | ) | |||||||
Gain on disposition of assets | 104 | 32 | 493 | 539 | |||||||||
Service charges on deposit accounts | 4,190 | 4,011 | 8,112 | 7,711 | |||||||||
Investment services income | 1,664 | 966 | 2,725 | 1,830 | |||||||||
Wealth management income | 6,332 | 5,364 | 12,036 | 10,731 | |||||||||
Gain on sale of mortgages | 3,693 | 2,661 | 6,866 | 5,272 | |||||||||
Commercial mortgage banking income | 397 | 284 | 796 | 1,016 | |||||||||
Bank owned life insurance | 1,120 | 798 | 2,225 | 1,540 | |||||||||
Other | 4,157 | 4,263 | 8,099 | 8,421 | |||||||||
Total noninterest income | 21,657 | 17,863 | 41,352 | 35,810 | |||||||||
Noninterest expense: | |||||||||||||
Salaries and employee benefits | 25,187 | 22,822 | 52,255 | 45,407 | |||||||||
Commission based compensation | 5,386 | 4,423 | 9,933 | 8,557 | |||||||||
Occupancy and equipment expenses | 5,819 | 5,025 | 11,519 | 9,683 | |||||||||
Amortization of intangibles | 1,282 | 1,276 | 2,699 | 2,028 | |||||||||
Other | 13,017 | 11,831 | 25,395 | 21,741 | |||||||||
Total noninterest expense | 50,691 | 45,377 | 101,801 | 87,416 | |||||||||
Income before provision for income taxes from continuing operations | 31,899 | 29,509 | 61,773 | 56,749 | |||||||||
Provision for income taxes | 10,840 | 10,222 | 20,939 | 19,664 | |||||||||
Net income from continuing operations | 21,059 | 19,287 | 40,834 | 37,085 | |||||||||
Income from discontinued operations, including a gain on disposal of | |||||||||||||
$1,462,000 for the three and six months ended June 30, 2007 (net of tax) | 979 | 30 | 1,149 | 105 | |||||||||
Net income | $ | 22,038 | $ | 19,317 | $ | 41,983 | $ | 37,190 | |||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 20,714 | 18,806 | 20,752 | 18,074 | |||||||||
Diluted | 20,858 | 18,984 | 20,904 | 18,252 | |||||||||
Earnings per common share from continuing operations: | |||||||||||||
Basic | $ | 1.02 | $ | 1.03 | $ | 1.97 | $ | 2.05 | |||||
Diluted | $ | 1.01 | $ | 1.02 | $ | 1.95 | $ | 2.03 | |||||
Earnings per common share: | |||||||||||||
Basic | $ | 1.06 | $ | 1.03 | $ | 2.02 | $ | 2.06 | |||||
Diluted | $ | 1.06 | $ | 1.02 | $ | 2.01 | $ | 2.04 | |||||
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES | |||||||||||||||||||
(Amounts in thousands, except yields and rates) | |||||||||||||||||||
Three Months 06/30/07 | Three Months 06/30/06 | ||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
Balance | Expense | Cost | Balance | Expense | Cost | ||||||||||||||
Assets: | |||||||||||||||||||
Earning assets: | |||||||||||||||||||
Loans and leases (1) | $ | 5,714,954 | $ | 115,303 | 8.09 | % | $ | 4,758,596 | $ | 91,978 | 7.75 | % | |||||||
Securities: | |||||||||||||||||||
Taxable | 1,078,873 | 12,393 | 4.61 | 1,089,534 | 12,087 | 4.45 | |||||||||||||
Tax exempt | 144,425 | 2,189 | 6.08 | 79,355 | 1,268 | 6.41 | |||||||||||||
Cash balances in other banks | 21,732 | 270 | 4.98 | 12,555 | 146 | 4.66 | |||||||||||||
Funds sold | 67,298 | 907 | 5.41 | 73,930 | 993 | 5.39 | |||||||||||||
Trading account securities | 859 | 10 | 4.67 | 814 | 8 | 3.94 | |||||||||||||
Total earning assets (2) | 7,028,141 | 131,072 | 7.48 | 6,014,784 | 106,480 | 7.10 | |||||||||||||
Cash and due from banks | 185,397 | 189,785 | |||||||||||||||||
Premises and equipment | 164,020 | 131,942 | |||||||||||||||||
Other assets | 518,772 | 402,259 | |||||||||||||||||
Allowance for loan and lease losses | (70,331 | ) | (60,111 | ) | |||||||||||||||
Total assets | $ | 7,825,999 | $ | 6,678,659 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,199,127 | $ | 8,717 | 2.92 | % | $ | 1,145,632 | $ | 7,651 | 2.68 | % | |||||||
Savings deposits | 1,102,663 | 9,682 | 3.52 | 936,041 | 6,061 | 2.60 | |||||||||||||
Time deposits | 2,667,493 | 33,262 | 5.00 | 1,950,926 | 20,231 | 4.16 | |||||||||||||
Funds purchased | 611,175 | 7,235 | 4.75 | 634,029 | 7,255 | 4.59 | |||||||||||||
Other short-term borrowings | 121,946 | 1,669 | 5.49 | 62,783 | 724 | 4.63 | |||||||||||||
Long-term debt | 422,275 | 5,354 | 5.09 | 406,217 | 5,063 | 5.00 | |||||||||||||
Total interest-bearing liabilities | 6,124,679 | 65,919 | 4.32 | 5,135,628 | 46,985 | 3.67 | |||||||||||||
Demand deposits | 779,936 | 773,744 | |||||||||||||||||
Accrued interest and other liabilities | 49,892 | 85,638 | |||||||||||||||||
Stockholders' equity | 871,492 | 683,649 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,825,999 | $ | 6,678,659 | |||||||||||||||
Net interest spread | 3.16 | % | 3.43 | % | |||||||||||||||
Net interest income/margin on | |||||||||||||||||||
a taxable equivalent basis | 65,153 | 3.72 | % | 59,495 | 3.97 | % | |||||||||||||
Tax equivalent adjustment (2) | 947 | 552 | |||||||||||||||||
Net interest income/margin | $ | 64,206 | 3.66 | % | $ | 58,943 | 3.93 | % | |||||||||||
(1) | Average loans include nonaccrual loans. All loans and deposits are domestic. |
(2) | Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. |
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES | |||||||||||||||||||
(Amounts in thousands, except yields and rates) | |||||||||||||||||||
Six Months 06/30/07 | Six Months 06/30/06 | ||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
Balance | Expense | Cost | Balance | Expense | Cost | ||||||||||||||
Assets: | |||||||||||||||||||
Earning assets: | |||||||||||||||||||
Loans and leases (1) | $ | 5,647,459 | $ | 227,079 | 8.11 | % | $ | 4,493,694 | $ | 169,344 | 7.60 | % | |||||||
Securities: | |||||||||||||||||||
Taxable | 1,097,562 | 25,098 | 4.61 | 1,079,285 | 23,627 | 4.41 | |||||||||||||
Tax exempt | 142,551 | 4,345 | 6.15 | 67,408 | 2,162 | 6.47 | |||||||||||||
Cash balances in other banks | 22,538 | 554 | 4.96 | 10,137 | 225 | 4.48 | |||||||||||||
Funds sold | 68,704 | 1,794 | 5.27 | 69,894 | 1,725 | 4.98 | |||||||||||||
Trading account securities | 982 | 24 | 4.93 | 904 | 19 | 4.24 | |||||||||||||
Total earning assets (2) | 6,979,796 | 258,894 | 7.48 | 5,721,322 | 197,102 | 6.95 | |||||||||||||
Cash and due from banks | 185,379 | 185,844 | |||||||||||||||||
Premises and equipment | 161,637 | 123,415 | |||||||||||||||||
Other assets | 518,970 | 353,164 | |||||||||||||||||
Allowance for loan and lease losses | (69,733 | ) | (56,883 | ) | |||||||||||||||
Total assets | $ | 7,776,049 | $ | 6,326,862 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,190,925 | $ | 17,105 | 2.90 | % | $ | 1,087,705 | $ | 13,445 | 2.49 | % | |||||||
Savings deposits | 1,114,971 | 19,424 | 3.51 | 917,604 | 11,174 | 2.46 | |||||||||||||
Time deposits | 2,599,553 | 64,012 | 4.97 | 1,833,611 | 36,421 | 4.01 | |||||||||||||
Funds purchased | 627,872 | 14,819 | 4.76 | 608,120 | 13,065 | 4.33 | |||||||||||||
Other short-term borrowings | 140,443 | 3,675 | 5.28 | 48,349 | 1,121 | 4.68 | |||||||||||||
Long-term debt | 412,058 | 10,711 | 5.24 | 388,676 | 9,374 | 4.86 | |||||||||||||
Total interest-bearing liabilities | 6,085,822 | 129,746 | 4.30 | 4,884,065 | 84,600 | 3.49 | |||||||||||||
Demand deposits | 766,770 | 730,340 | |||||||||||||||||
Accrued interest and other liabilities | 55,710 | 81,077 | |||||||||||||||||
Stockholders' equity | 867,747 | 631,380 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,776,049 | $ | 6,326,862 | |||||||||||||||
Net interest spread | 3.18 | % | 3.46 | % | |||||||||||||||
Net interest income/margin on | |||||||||||||||||||
a taxable equivalent basis | 129,148 | 3.73 | % | 112,502 | 3.97 | % | |||||||||||||
Tax equivalent adjustment (2) | 1,891 | 984 | |||||||||||||||||
Net interest income/margin | $ | 127,257 | 3.68 | % | $ | 111,518 | 3.93 | % | |||||||||||
(1) | Average loans include nonaccrual loans. All loans and deposits are domestic. |
(2) | Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. |