BIRMINGHAM, Ala., Aug. 13 /PRNewswire-FirstCall/ --
HIGHLIGHTS: -- Deposits grew approximately 3.1% to a new high of $2.84 billion. -- Loans decreased slightly from the previous quarter to $2.48 billion. -- New capital raised totaling $11.4 million. Capital optimization continues as planned. -- Net loss of $53.7 million for the quarter, driven principally by a provision for loan losses of $50.4 million and losses on other real estate owned (OREO) of $3.4 million.
Superior Bancorp today reported its second quarter 2010 results, which included a loss for the quarter of $53.7 million as the company expensed $50.4 million to bring its loan loss reserves to 3.2% of loans. A summary of the results is provided below and in the attached financial data:
As of and for the Quarters Ended ----------------- June 30, March 31, Dollars in thousands, except per share data 2010 2010 ------------------------------------------- --------- ---------- Total assets $3,358,335 $3,344,357 Total loans, net of unearned income 2,482,560 2,505,465 Total deposits 2,838,521 2,753,378 Stockholders' equity 149,314 187,153 Net interest income 23,153 23,505 Provision for loan losses 50,363 9,127 Loss before income taxes (50,215) (9,219) Income tax expense (benefit) (1) 3,507 (3,479) Net loss (53,722) (5,740) Net loss applicable to common stockholders (54,621) (5,740) Net loss per common share (4.44) (0.49) Total branches 73 73 (1) - Reflects the effect of recording a valuation allowance against our deferred tax assets. Comments on our Second Quarter Performance
Stan Bailey, Chairman & CEO, stated, "Superior's second quarter results reflect the continued challenge presented by the current credit environment. After our $50 million second quarter provision for loan losses, our new reserve level is 3.20% of loans and stands at 2.4X our last 12 months' level of chargeoffs. Regardless, our capital plus reserves at quarter-end were $229 million versus $230 million at March 31. Our top priority remains the completion of our capital optimization plan during 2010, while we continue to focus on credit quality improvement and a return to profitability during 2011."
Capital Optimization Plan
In late 2009, our shareholders approved an increase in authorized shares to 200 million, a preparatory step in our program to build our equity base. In December 2009, we retired the entire outstanding $69.0 million principal amount of TARP Preferred Stock in exchange for a like amount of newly issued Trust Preferred Securities, which resulted in a $23.1 million accounting gain, resulting in an increase to tangible common equity. As noted above, however, this conversion also had a 0.22% negative net interest margin impact in the second quarter due to interest expense on the Trust Preferred Securities.
During the second quarter, we issued $11.4 million of cumulative mandatory convertible preferred stock for cash, at par. At the same time, we issued the purchaser five-year warrants to purchase 814,288 shares of our common stock at an exercise price of $3.50 per share. In addition, we exchanged $3.5 million of privately held Trust Preferred Securities for common stock and recognized an after-tax gain of $0.5 million in connection with this transaction.
Comparison of Second Quarter 2010 with First Quarter 2010
Net interest income declined slightly, from $23.5 million to $23.2 million. Our net interest margin declined from 3.19% to 3.02%. Several factors contributed to this decline, including our maintenance of significantly higher levels of lower yielding short-term investments increased for liquidity purposes, lower yields on our overall investment portfolio, the negative impact of an increase in non-accrual loans, and a higher volume of interest-bearing deposits. We lowered the yield on our investment portfolio through a restructuring which reduced our interest rate risk and improved our risk-based capital. The effect on net interest margin of loans being placed on non-accrual status approximated 0.19% in the second quarter of 2010. The total impact of non-accruals, including foregone interest, was approximately 0.57%. We estimate that the cost of excess liquidity maintained in the second quarter was approximately 0.04%. The conversion of preferred stock issued to the US Treasury under the Capital Purchase Program to Trust Preferred Stock, which had the effect of converting dividend payments into interest expense, lowered the net interest margin by 0.22%. This additional interest expense will continue to hold down our net interest margin until the Treasury obligation is repaid. Deposit costs continued to decline, following the favorable trend demonstrated throughout the past several quarters.
Core noninterest income was $6.9 million for the quarter, and increased $0.7 million, or 11.4%, from the first quarter, after adjusting both quarters to eliminate investment securities gains and losses and derivatives transactions. Mortgage banking income increased $0.7 million to $2.7 million in the second quarter, as the result of the expansion of our mortgage operations. In addition, we recognized a $0.5 million gain on the exchange of trust preferred debt for common stock. Both of these items are discussed in more detail below.
Core noninterest expense increased $0.5 million from the first quarter to $26.3 million after eliminating credit costs for other real estate owned and FDIC insurance costs from both quarters.
We also recorded a $22.0 million valuation allowance against our deferred tax assets during the second quarter which eliminated any tax benefit on our net losses year-to-date.
Credit Quality
Loans 30-89 days past due ("DPD") and still accruing decreased to 1.78% of total loans at June 30, 2010 compared to 1.88% at March 31, 2010. Non-performing loans, including loans 90 DPD and still accruing, increased to $231.4 million, or 9.3%, of total loans in the second quarter, compared to 7.1% of total loans at March 31, 2010. Of the non-performing loans, approximately 70% are in Florida and 30% in Alabama. Of our $45.2 million OREO portfolio, approximately 56% is in Alabama and 44% is in Florida. Net charge-offs for the quarter were $14.1 million, or an annualized rate of 2.26% of total loans. The provision for loan losses for the quarter was $50.4 million compared to a provision of $9.1 million for the first quarter. The allowance for loan losses at June 30, 2010 was $79.4 million, or 3.20% of loans, up from $43.2 million at the end of the first quarter. During the quarter we experienced (1) a migration of performing classified loans into non-performing status, (2) an increase in troubled debt restructurings ("TDRs") resulting from workout activity, and/or (3) an increase in collateral impairments relative to other external factors such as short sales, updated appraisals, etc. These factors created the need for increased loan loss provisions during the second quarter of 2010. In addition, management increased the general allowance for loan losses to account for the estimated increase in losses related to the recent oil spill in the Gulf of Mexico.
Balance Sheet
Loan demand in the second quarter was relatively flat, with total loans decreasing slightly, by 0.9% from March 31, 2010 to June 30, 2010. We expect this slowed rate of loan growth to continue throughout 2010, due to the current condition of the economy. We continue to experience strong growth in our deposit base, with deposits up 3.1% from the first quarter, as we continue to experience the benefits of our de novo branching program and our focus on relationship banking. Deposits at our 22 de novo branches reached $540 million at June 30, 2010. This expansion, which was initiated in 2006 and which continued into 2010 with the opening of our 22nd new branch, has been the single largest contributing factor in the increase in liquidity in our bank, and in our demonstrated transformation of Superior from a transaction-based bank into a relationship-based bank.
Liquidity and Capital
Liquidity at Superior Bank remained excellent. Federal Home Loan Bank borrowings were approximately 7.6% of deposits. Brokered deposits, excluding CDARS, totaled approximately 6.5% of deposits. Including CDARS, brokered deposits totaled approximately 8.3% of deposits.
Superior Bank's Total Risk Based Capital was $229.4 million at June 30, 2010. Our capital ratios slipped during the quarter as the result of our increased provision for loan losses described above. We are responding to the decline in the capital ratio by instituting several initiatives, including a repositioning of our securities portfolio and a focus on lending activity to meet the needs of existing customers.
About Superior Bancorp
Superior Bancorp is a $3.4 billion thrift holding company headquartered in Birmingham, and the second largest bank holding company headquartered in Alabama. The principal subsidiary of Superior Bancorp is Superior Bank, a southeastern community bank that currently has 73 branches, with 45 locations throughout the state of Alabama and 28 locations in Florida. Superior Bank also operates 24 consumer finance offices in North Alabama as 1st Community Credit and Superior Financial Services.
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). Superior's management uses these "non-GAAP" measures in its analysis of Superior's performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on Superior's performance are difficult to predict, management 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 Superior'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 are presented by other companies.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Some of the disclosures in this Quarterly Report on Form 10-Q, including any statements preceded by, followed by or which include the words "may," "could," "should," "will," "would," "hope," "might," "believe," "expect," "anticipate," "estimate," "intend," "plan," "assume" or similar expressions constitute forward-looking statements. These forward-looking statements, implicitly and explicitly, include the assumptions underlying the statements and other information with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates, intentions, financial condition, results of operations, future performance and business, including our expectations and estimates with respect to our revenues, expenses, earnings, return on equity, return on assets, efficiency ratio, asset quality, the adequacy of our allowance for loan losses and other financial data and capital and performance ratios. Although we believe that the expectations reflected in our forward-looking statements are reasonable, these statements involve risks and uncertainties which are subject to change based on various important factors (some of which are beyond our control). Such forward looking statements should, therefore, be considered in light of various important factors set forth from time to time in our reports and registration statements filed with the SEC. The following factors, among others, could cause our financial performance to differ materially from our goals, plans, objectives, intentions, expectations and other forward-looking statements: (1) the strength of the United States economy in general and the strength of the regional and local economies in which we conduct operations; (2) changes in local economic conditions in the markets in which we operate; (3) the continued weakening in the real estate values in the markets in which we operate; (4) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; (5) increases in FDIC deposit insurance premiums and assessments; (6) inflation or deflation and interest rate, market and monetary fluctuations; (7) the adequacy of our allowance for loan losses to cover actual losses and impact of credit risk exposures; (8) greater loan losses than historic levels and increased allowance for loan loss; (9) our timely development of new products and services in a changing environment, including the features, pricing and quality compared to the products and services of our competitors; (10) the willingness of users to substitute competitors' products and services for our products and services; (11) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (12) the impact of changes in financial services policies, laws and regulations, including laws, regulations and policies concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; (13) our ability to comply with any requirements imposed on us and Superior Bank by our regulators; (14) restrictions or limitations on our access to funds from Superior Bank; (15) changes in accounting policies, principles and guidelines applicable to us; (16) our focus on lending to small to mid-size community-based businesses, which may increase our credit risk; (17) our ability to resolve any regulatory, legal or judicial proceeding on acceptable terms and its effect on our financial condition or results of operations; (18) technological changes; (19) changes in consumer spending and savings habits; (20) the effect of natural or environmental disasters, such as, among other things, hurricanes and oil spills, in our geographic markets; (21) the continuing instability in the domestic and international capital markets; (22) (the effects on our operations of policy initiatives or laws that have been and may continue to be introduced by the Presidential administration or Congress and related regulatory actions, including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder; (23) our ability to successfully integrate the assets, liabilities, customers, systems and management we acquire or merge into our operations; (24) our ability to raise additional capital to fund growth plans or to meet regulatory requirements; and (25) other factors and information contained in reports and other filings we make with the SEC. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this report. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We do not intend to update our forward-looking information and statements, whether written or oral, to reflect changes. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
More information on Superior Bancorp and its subsidiaries may be obtained over the Internet, http://www.superiorbank.com/, or by calling 1-877-326-BANK (2265).
Superior Bancorp and Subsidiaries Condensed Consolidated Statements of Financial Condition (Dollars In Thousands) December June 30, 31, -------- 2010 2009 2009 ---- ---- ---- (Unaudited) ----------- Assets Cash and due from banks $54,648 $80,621 $74,020 Interest-bearing deposits in other banks 245,182 19,868 23,714 Federal funds sold 1,328 2,426 2,036 ----- ----- ----- Total cash and cash equivalents 301,158 102,915 99,770 Investment securities available-for-sale 269,943 306,300 286,310 Tax lien certificates 18,820 25,533 19,292 Mortgage loans held- for-sale 54,823 100,707 71,879 Loans, net of unearned income 2,482,560 2,398,471 2,472,697 Less: Allowance for loan losses (79,425) (33,504) (41,884) ------- ------- ------- Net loans 2,403,135 2,364,967 2,430,813 --------- --------- --------- Premises and equipment, net 102,765 105,343 104,022 Accrued interest receivable 15,168 16,025 15,581 Stock in FHLB 18,212 18,212 18,212 Cash surrender value of life insurance 50,792 49,174 50,142 Intangible assets 14,746 18,873 16,694 Other real estate 45,184 35,206 41,618 Other assets 63,589 66,166 67,536 ------ ------ ------ Total assets $3,358,335 $3,209,421 $3,221,869 ========== ========== ========== Liabilities and Stockholders' Equity Deposits Noninterest-bearing $275,712 $246,724 $257,744 Interest-bearing 2,562,809 2,357,834 2,398,829 --------- --------- --------- Total deposits 2,838,521 2,604,558 2,656,573 Advances from FHLB 216,324 228,320 218,322 Security repurchase agreements 762 2,164 841 Notes payable 45,150 45,688 45,917 Subordinated debentures 81,196 60,774 84,170 Accrued expenses and other liabilities 27,068 27,236 24,342 ------ ------ ------ Total liabilities 3,209,021 2,968,740 3,030,165 Stockholders' Equity Preferred stock, par value $.001 per share; shares authorized 5,000,000: Series B, cumulative convertible preferred stock; 111, -0 -and -0 -shares issued and outstanding at June 30, 2010 and 2009 and December 31, 2009, respectively - - - Series C, cumulative convertible preferred stock; 3, -0 -and - 0 -shares issued and outstanding at June 30, 2010 and 2009 and December 31, 2009, respectively - - - Common stock, par value $.001 per share; shares authorized 200,000,000, 20,000,000 and 200,000,000 at June 30, 2010 and 2009 and December 31, 2009, respectively; shares issued 12,560,457, 10,438,590, and 11,673,837, respectively; outstanding 12,560,457, 10,111,684 and 11,667,794, respectively 13 10 12 Surplus - preferred 10,888 63,563 - - warrants 9,827 8,646 8,646 - common 325,159 329,736 322,043 Accumulated deficit (191,250) (141,483) (130,889) Accumulated other comprehensive loss (5,136) (7,991) (7,825) Treasury stock, at cost - (11,333) - Unearned ESOP stock (174) (353) (263) Unearned restricted stock (13) (114) (20) --- ---- --- Total stockholders' equity 149,314 240,681 191,704 ------- ------- ------- Total liabilities and stockholders' equity $3,358,335 $3,209,421 $3,221,869 ========== ========== ========== Superior Bancorp and Subsidiaries Condensed Consolidated Statements of Operations (Amounts In Thousands, Except Per Share Data) For the Three Months Ended ------------- June 30, 2010 2009 ---- ---- (Unaudited) ----------- Interest income Interest and fees on loans $36,212 $35,959 Interest on investment securities: Taxable 2,625 3,778 Exempt from Federal income tax 314 434 Interest on federal funds sold 2 2 Interest and dividends on other investments 393 456 --- --- Total interest income 39,546 40,629 Interest expense Interest on deposits 11,452 14,109 Interest on FHLB advances and other borrowings 2,542 2,597 Interest on subordinated debt 2,399 1,206 ----- ----- Total interest expense 16,393 17,912 ------ ------ Net interest income 23,153 22,717 Provision for loan losses 50,363 5,982 ------ ----- Net interest (loss) income after provision for loan losses (27,210) 16,735 Noninterest income Service charges and fees on deposits 2,335 2,524 Mortgage banking income 2,667 2,271 Investment securities gains (losses) Gain on sale of investment securities 1,858 - Total other-than-temporary impairment ("OTTI") losses (683) (6,685) Portion of OTTI recognized in other comprehensive loss 181 904 --- --- Investment securities gains (losses) 1,356 (5,781) Change in fair value of derivatives (239) (67) Increase in cash surrender value of life insurance 558 540 Gain on exchange of subordinated debt for common stock 507 - Other income 1,344 1,340 ----- ----- Total noninterest income 8,528 827 Noninterest expenses Salaries and employee benefits 13,840 12,304 Occupancy, furniture and equipment expense 4,850 4,503 Amortization of core deposit intangibles 869 985 FDIC assessment 1,853 1,932 Foreclosure losses 3,358 1,748 Other operating expenses 6,763 6,323 ----- ----- Total noninterest expenses 31,533 27,795 ------ ------ Loss before income taxes (50,215) (10,233) Income tax expense (benefit) 3,507 (4,539) ----- ------ Net loss (53,722) (5,694) Preferred stock dividends and amortization (899) (1,167) Gain on exchange of preferred stock for subordinated debt - - --- --- Net loss applicable to common shareholders $(54,621) $(6,861) ======== ======= Basic loss per share $(4.44) $(0.68) ====== ====== Diluted loss per share $(4.44) $(0.68) ====== ====== Weighted average common shares outstanding 12,305 10,071 Weighted average common shares outstanding, assuming dilution 12,305 10,071 For the Six Months Ended ------------------ June 30, 2010 2009 ---- ---- (Unaudited) ----------- Interest income Interest and fees on loans $72,554 $70,911 Interest on investment securities: Taxable 5,536 7,787 Exempt from Federal income tax 626 863 Interest on federal funds sold 3 7 Interest and dividends on other investments 765 818 --- --- Total interest income 79,484 80,386 Interest expense Interest on deposits 22,977 29,002 Interest on FHLB advances and other borrowings 5,064 4,938 Interest on subordinated debt 4,785 2,400 ----- ----- Total interest expense 32,826 36,340 ------ ------ Net interest income 46,658 44,046 Provision for loan losses 59,490 9,434 ------ ----- Net interest (loss) income after provision for loan losses (12,832) 34,612 Noninterest income Service charges and fees on deposits 4,551 4,911 Mortgage banking income 4,677 3,961 Investment securities gains (losses) Gain on sale of investment securities 1,858 - Total other-than-temporary impairment ("OTTI") losses (883) (17,189) Portion of OTTI recognized in other comprehensive loss 183 5,563 --- ----- Investment securities gains (losses) 1,158 (11,626) Change in fair value of derivatives (29) (266) Increase in cash surrender value of life insurance 1,126 1,055 Gain on exchange of subordinated debt for common stock 507 - Other income 2,750 2,557 ----- ----- Total noninterest income 14,740 592 Noninterest expenses Salaries and employee benefits 28,040 24,613 Occupancy, furniture and equipment expense 9,613 8,919 Amortization of core deposit intangibles 1,739 1,971 FDIC assessment 3,233 2,389 Foreclosure losses 5,935 2,317 Other operating expenses 12,782 11,650 ------ ------ Total noninterest expenses 61,342 51,859 ------ ------ Loss before income taxes (59,434) (16,655) Income tax expense (benefit) 28 (7,387) --- ------ Net loss (59,462) (9,268) Preferred stock dividends and amortization (899) (2,310) Gain on exchange of preferred stock for subordinated debt - - --- --- Net loss applicable to common shareholders $(60,361) $(11,578) ======== ======== Basic loss per share $(5.04) $(1.15) ====== ====== Diluted loss per share $(5.04) $(1.15) ====== ====== Weighted average common shares outstanding 11,977 10,062 Weighted average common shares outstanding, assuming dilution 11,977 10,062 Year Ended December 31, 2009 ---- Interest income Interest and fees on loans $144,660 Interest on investment securities: Taxable 14,085 Exempt from Federal income tax 1,610 Interest on federal funds sold 9 Interest and dividends on other investments 1,718 ----- Total interest income 162,082 Interest expense Interest on deposits 54,360 Interest on FHLB advances and other borrowings 10,097 Interest on subordinated debt 5,063 ----- Total interest expense 69,520 ------ Net interest income 92,562 Provision for loan losses 28,550 ------ Net interest (loss) income after provision for loan losses 64,012 Noninterest income Service charges and fees on deposits 10,112 Mortgage banking income 7,084 Investment securities gains (losses) Gain on sale of investment securities 5,644 Total other-than-temporary impairment ("OTTI") losses (23,079) Portion of OTTI recognized in other comprehensive loss 7,333 ----- Investment securities gains (losses) (10,102) Change in fair value of derivatives (826) Increase in cash surrender value of life insurance 2,198 Gain on exchange of subordinated debt for common stock - Other income 5,113 ----- Total noninterest income 13,579 Noninterest expenses Salaries and employee benefits 49,962 Occupancy, furniture and equipment expense 18,643 Amortization of core deposit intangibles 3,941 FDIC assessment 6,348 Foreclosure losses 8,116 Other operating expenses 23,475 ------ Total noninterest expenses 110,485 ------- Loss before income taxes (32,894) Income tax expense (benefit) (13,005) ------- Net loss (19,889) Preferred stock dividends and amortization (4,193) Gain on exchange of preferred stock for subordinated debt 23,097 ------ Net loss applicable to common shareholders $(985) ===== Basic loss per share $(0.09) ====== Diluted loss per share $(0.09) ====== Weighted average common shares outstanding 10,687 Weighted average common shares outstanding, assuming dilution 10,687 SUPERIOR BANCORP AND SUBSIDIARIES UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars in thousands, except per share data) As of and for the Three Months Ended June 30, -------- 2010 2009 ---- ---- Selected Average Balances : Total assets $3,354,105 3,173,974 Total liabilities 3,163,511 2,927,821 Loans, net of unearned income 2,512,856 2,387,078 Mortgage loans held-for-sale 53,136 71,942 Investment securities 288,632 322,165 Total interest-earning assets 3,039,108 2,856,333 Noninterest-bearing deposits 269,095 245,819 Interest-bearing deposits 2,522,490 2,311,070 Advances from FHLB 217,488 241,266 Federal funds borrowed and security repurchase agreements 900 2,092 Subordinated debentures 84,487 60,795 Total interest-bearing liabilities 2,874,816 2,664,339 Stockholders' equity 190,594 246,153 Per Share Data: Net (loss) income - basic $(4.44) $(0.68) -diluted (5) $(4.44) $(0.68) Weighted average common shares outstanding -basic 12,305 10,071 Weighted average common shares outstanding -diluted (5) 12,305 10,071 Common book value per share at period end $10.24 $16.66 Tangible common book value per share at period end $9.06 $14.79 Preferred shares outstanding at period end 114 69,000 Common shares outstanding at period end 12,560,457 10,111,684 Performance Ratios and Other Data: Return on average assets (1) (6.42) (0.72) Return on average tangible assets (1) (6.45) (0.72) Return on average stockholders' equity (1) (113.06) (9.28) Return on average tangible equity (1) (122.87) (10.07) Net interest margin (1)(2)(3) 3.02 3.22 Net interest spread (1)(3)(4) 2.89 3.04 Average loan to average deposit ratio 91.92 96.17 Average interest-earning assets to average interest-bearing liabilities 105.71 107.21 Core deposit intangible ("CDI") and other intangibles $14,746 $18,873 Assets Quality Ratios: Nonaccrual loans $215,891 $105,356 Accruing loans 90 days or more delinquent 15,547 12,373 Other real estate owned and repossessed assets 45,506 35,660 Total nonperforming assets ("NPAs") 276,944 153,389 Restructured loans, not included in total NPAs, net of specific allowance 147,588 19,143 Net loan charge-offs 14,128 2,348 Allowance for loan losses to nonperforming loans 34.32 28.46 Allowance for loan losses to loans, net of unearned income 3.20 1.40 NPA to loans plus NPAs, net of unearned income 10.95 6.30 NPAs to total assets 8.25 4.77 Net loan charge-offs to average loans (1) 2.26 0.39 Net loan charge-offs as a percentage of: Provision for loan losses 28.05 39.26 Allowance for loan losses (1) 71.34 28.11 As of and for the Six Months Ended June 30, -------- 2010 2009 ---- ---- Selected Average Balances : Total assets $3,313,590 $3,136,721 Total liabilities 3,122,448 2,887,864 Loans, net of unearned income 2,502,589 2,364,676 Mortgage loans held-for-sale 49,762 61,091 Investment securities 286,355 332,153 Total interest-earning assets 2,996,273 2,828,018 Noninterest-bearing deposits 265,636 238,722 Interest-bearing deposits 2,483,879 2,255,913 Advances from FHLB 217,903 280,079 Federal funds borrowed and security repurchase agreements 1,088 2,580 Subordinated debentures 84,372 60,823 Total interest-bearing liabilities 2,836,654 2,629,548 Stockholders' equity 191,142 248,857 Per Share Data: Net (loss) income - basic $(5.04) $(1.15) -diluted (5) $(5.04) $(1.15) Weighted average common shares outstanding -basic 11,977 10,062 Weighted average common shares outstanding -diluted (5) 11,977 10,062 Common book value per share at period end $10.24 $16.66 Tangible common book value per share at period end $9.06 $14.79 Preferred shares outstanding at period end 114 69,000 Common shares outstanding at period end 12,560,457 10,111,684 Performance Ratios and Other Data: Return on average assets (1) (3.62) (0.60) Return on average tangible assets (1) (3.64) (0.60) Return on average stockholders' equity (1) (62.73) (7.51) Return on average tangible equity (1) (68.35) (8.17) Net interest margin (1)(2)(3) 3.10 3.17 Net interest spread (1)(3)(4) 2.97 2.97 Average loan to average deposit ratio 92.83 97.24 Average interest-earning assets to average interest-bearing liabilities 105.63 107.55 Core deposit intangible ("CDI") and other intangibles $14,746 $18,873 Assets Quality Ratios: Nonaccrual loans $215,891 $105,356 Accruing loans 90 days or more delinquent 15,547 12,373 Other real estate owned and repossessed assets 45,506 35,660 Total nonperforming assets ("NPAs") 276,944 153,389 Restructured loans, not included in total NPAs, net of specific allowance 147,588 19,143 Net loan charge-offs 21,949 4,780 Allowance for loan losses to nonperforming loans 34.32 28.46 Allowance for loan losses to loans, net of unearned income 3.20 1.40 NPA to loans plus NPAs, net of unearned income 10.95 6.30 NPAs to total assets 8.25 4.77 Net loan charge-offs to average loans (1) 1.77 0.41 Net loan charge-offs as a percentage of: Provision for loan losses 36.90 50.66 Allowance for loan losses (1) 55.73 28.77 As of and for the Year Ended December 31, 2009 ---- Selected Average Balances : Total assets $3,153,395 Total liabilities 2,909,778 Loans, net of unearned income 2,401,805 Mortgage loans held-for-sale 61,309 Investment securities 313,514 Total interest-earning assets 2,846,345 Noninterest-bearing deposits 246,428 Interest-bearing deposits 2,289,900 Advances from FHLB 252,187 Federal funds borrowed and security repurchase agreements 2,057 Subordinated debentures 62,117 Total interest-bearing liabilities 2,646,039 Stockholders' equity 243,617 Per Share Data: Net (loss) income - basic $(0.09) - diluted (5) $(0.09) Weighted average common shares outstanding - basic 10,687 Weighted average common shares outstanding - diluted (5) 10,687 Common book value per share at period end $15.69 Tangible common book value per share at period end $14.26 Preferred shares outstanding at period end - Common shares outstanding at period end 11,667,794 Performance Ratios and Other Data: Return on average assets (1) (0.63) Return on average tangible assets (1) (0.63) Return on average stockholders' equity (1) (8.16) Return on average tangible equity (1) (8.85) Net interest margin (1)(2)(3) 3.28 Net interest spread (1)(3)(4) 3.09 Average loan to average deposit ratio 97.11 Average interest-earning assets to average interest-bearing liabilities 107.57 Core deposit intangible ("CDI") and other intangibles $16,694 Assets Quality Ratios: Nonaccrual loans $155,631 Accruing loans 90 days or more delinquent 3,920 Other real estate owned and repossessed assets 41,998 Total nonperforming assets ("NPAs") 201,549 Restructured loans, not included in total NPAs, net of specific allowance 110,777 Net loan charge-offs 15,516 Allowance for loan losses to nonperforming loans 26.25% Allowance for loan losses to loans, net of unearned income 1.69 NPA to loans plus NPAs, net of unearned income 8.01 NPAs to total assets 6.26 Net loan charge-offs to average loans (1) 0.65 Net loan charge-offs as a percentage of: Provision for loan losses 54.35 Allowance for loan losses (1) 37.04 (1) Annualized for the three and six months ended June 30, 2010 and June 30, 2009. (2) Net interest income divided by average earning assets. (3) Calculated on a taxable equivalent basis. (4) Yield on average interest-earning assets less rate on average interest-bearing liabilities. (5) Common stock equivalents of 415,329 and 67,422, 439,600 and 77,027, and 159,561 were not included in computing diluted earnings per share for the three and six months ended June 30, 2010, and 2009 and the twelve months ended December 31, 2009, respectively, because their effects were antidilutive. SUPERIOR BANCORP AND SUBSIDIARIES UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, Except Per Share Data) For the Three For the Six Months Months Ended Ended ------------- ------------------ June 30, June 30, -------- -------- Reconciliation Table 2010 2009 2010 2009 ---- ---- ---- ---- Net loss (GAAP) $(53,722) $(5,694) $(59,462) $(9,268) Amortization of core deposit intangibles 547 621 1,096 1,242 Investment securities (gains) losses, net of tax (854) 3,642 (730) 7,324 Change in fair value of derivatives, net of tax 151 42 18 168 Gain on exchange of subordinated debt for common stock, net of tax (319) - (319) - ---- --- ---- --- Operating loss (non-GAAP) $(54,197) $(1,389) $(59,397) $(534) ======== ======= ======== ===== Core noninterest income (non-GAAP) $6,904 $6,675 $13,104 $12,484 Investment securities gains (losses) 1,356 (5,781) 1,158 (11,626) Change in fair value of derivatives (239) (67) (29) (266) Gain on exchange of subordinated debt for common stock 507 - 507 - --- --- --- --- Total noninterest income (GAAP) $8,528 $827 $14,740 $592 ====== ==== ======= ==== Core noninterest expense (non-GAAP) $26,322 $24,115 $52,174 $47,153 FDIC assessment 1,853 1,932 3,233 2,389 Foreclosure losses 3,358 1,748 5,935 2,317 ----- ----- ----- ----- Total noninterest expense (GAAP) $31,533 $27,795 $61,342 $51,859 ======= ======= ======= ======= As of June 30, -------- 2010 2009 ---- ---- Total stockholders' equity (GAAP) $149,314 $240,681 Intangible assets (GAAP) 14,746 18,873 Carrying value of warrants 9,827 8,646 Liquidation value of preferred equity 10,888 63,563 ------ ------ Total tangible common equity (non- GAAP) $113,853 $149,599 ======== ======== Common shares outstanding 12,560 10,112 ====== ====== Tangible common book value per share at period end $9.06 $14.79 ===== ======
Superior Bancorp
CONTACT: Jim White, Chief Financial Officer, +1-205-327-3656
Web Site: http://www.superiorbank.com/
