-- First quarter 2008 earnings per share: $0.07 BIRMINGHAM, Ala.,
April 28 /PRNewswire-FirstCall/ -- Superior Bancorp (Nasdaq: SUPRD
until May 27, 2008; SUPR thereafter) announced today its first
quarter 2008 earnings. A summary of its results is provided below
and in the attached selected financial data. As of and for the
Quarter Ended (Dollars in thousands, except per March 31, March 31,
share data) 2008 2007 Total assets $2,963,899 $2,451,810 Total
loans, net of unearned income 2,066,192 1,675,317 Total deposits,
excluding brokered certificates of deposit 2,107,123 1,694,524 Net
income 695 2,298 Net income per common share (1) 0.07 0.26 Total
branches 74 60 (1) -- Retroactively restated to reflect 1-for-4
reverse stock split effective April 28, 2008. CEO Stan Bailey
stated, "Our priorities in the current credit cycle are managing
the quality of our balance sheet, fulfilling the potential of our
20 new branches, obtaining customers from our new foreign and 'big
bank' competition, running a profitable operation and remaining a
'well capitalized' bank. Our first quarter performance is
consistent with these priorities." First Quarter 2008 Performance
First quarter 2008 net income was $695,000, or $.07 per share,
compared to $1.9 million for the fourth quarter of 2007 and $2.3
million for the first quarter of 2007. First quarter 2008 net
income includes the effect of $1.4 million, net of tax effect, in
new branch overhead expense and $564,000, net of tax effect, in
core deposit intangible amortization compared to first quarter 2007
core deposit amortization of $192,000, net of tax effect. First
quarter 2007 results do not include the effect of Superior
Bancorp's acquisition of People's Community Bancshares, Inc., which
was completed on July 27, 2007. Superior Bancorp's total deposits,
excluding brokered certificates of deposit, at March 31, 2008,
increased 1.2% (4.9% annualized) to $2.1 billion from December 31,
2007 and increased 24% from March 31, 2007. The acquisition of
People's Community Bancshares, Inc. accounted for approximately 16%
of the deposit growth since March 31, 2007. As of March 31, 2008
Superior Bancorp's de novo branches accounted for approximately
$208 million of core deposits, predominantly from new customer
relationships. Customer dislocation resulting from recent merger
activities in Superior's markets also contributed to the deposit
performance. Loans increased to $2.1 billion at March 31, 2008, an
increase of 2.4% (9.6% annualized) from December 31, 2007 and 23.3%
from March 31, 2007. Credit Quality With regard to credit quality
at March 31, 2008, non-performing assets ("NPAs") were 1.81% of
total loans plus NPAs compared to 1.47% at December 31, 2007, which
is in line with management's expectations. The $7.8 million NPA
increase during the first quarter of 2008 was predominantly located
in Superior's Florida segment, with the largest exposure being one
relationship of approximately $1.3 million and several smaller real
estate credits. The increase also included one real estate
relationship in the Alabama segment of about $2.7 million in
addition to several smaller credits. Non-performing loans ("NPLs")
to total loans increased to 1.49% at March 31, 2008 from 1.26% at
December 31, 2007, with the increase primarily related to the
construction and single-family residential portfolios, which
collectively accounted for approximately 86% of the total increase.
Allowance for loan losses to NPLs decreased to 75.42% at March 31,
2008 from 90.31% at December 31, 2007. Overall past due loans
declined during the first quarter with the 90 days past due (DPD)
and still accruing category moving to 0.00% from 0.10% as a
percentage of total loans at December 31, 2007. Loans in the 30-89
DPD category increased to 1.25% from 1.13% as a percentage of total
loans at December 31, 2007. Net loan charge-offs as a percentage of
average loans were 0.29% during the first quarter of 2008, compared
to 0.33% and 0.24% during the fourth quarter of 2007 and the year
ended December 31, 2007, respectively. Of the $1.5 million net
charge-offs in the first quarter of 2008, approximately 40% were
1-4 family mortgage-related, 24% were commercial real
estate-related and 27% were in the consumer finance subsidiaries.
The provision for loan losses increased to $1.9 million in the
first quarter of 2008, compared to $1.7 million in the fourth
quarter of 2007 and $705,000 in the first quarter of 2007. This
increase in the provision maintained the allowance for loan losses
at 1.13% of net loans, or $23.3 million, at March 31, 2008,
compared to 1.13% of net loans or $22.9 million, at December 31,
2007. Superior's management believes the allowance for loan losses
at March 31, 2008 is appropriate to absorb any possible losses in
the loan portfolio. Management's assessment of Superior's credit
quality is based on various internal and external factors that
affect the collectability of loans. Management is constantly
monitoring and assessing these factors through a consistent
methodology of estimating the allowance for loan losses. 1-for-4
Reverse Stock Split On April 28, 2008, Superior Bancorp completed a
1-for-4 reverse stock split of its issued and outstanding shares of
common stock, reducing the number of authorized shares of common
stock from 60,000,000 to 15,000,000 and the number of common shares
outstanding from 40,211,230 to 10,052,808. This action brings
Superior's authorized common shares and common shares outstanding
in line with peer community banks. All disclosures regarding common
stock and related per share information have been retroactively
restated for all periods presented to reflect the reverse stock
split. The 1-for-4 reverse stock split is effective in the market
as of the open of business Monday, April 28, 2008 and Superior's
new symbol is SUPRD. The "D" will be removed from the symbol as of
the open of business Tuesday, May 27, 2008. De Novo Branch
Expansion In furtherance of Superior's de novo branch strategy, the
company has opened 18 of 20 planned new branches since September
2006 in key Alabama and Florida markets, representing approximately
$208 million of core deposits as of March 31, 2008. For the first
quarter of 2008, after-tax overhead expense associated with the new
branches was $1.4 million, representing an approximately 3%
annualized premium on deposits. Two more Alabama branches are
scheduled to open before the end of 2008. Upon completion, Superior
Bancorp will have invested approximately $25 to $30 million toward
its de novo branch expansion program. Capital Superior Bank
continues to be categorized as "well capitalized" under regulatory
guidelines with a total risk-based capital ratio of 10.43% as of
March 31, 2008. Other key equity ratios of Superior Bank at March
31, 2008 were total equity to total assets of 13.58% and tangible
equity to tangible assets of 7.74%. Outlook The entire banking
industry is operating in an adverse environment relative to
maximizing short-term performance. Factors such as the challenging
credit cycle, housing softness, gloomy media coverage, weakened
consumer confidence and dramatic Federal Reserve rate reductions
provide a stiff headwind in 2008. At Superior, management continues
to adapt to these factors while remaining focused on taking the
actions that management believes will ultimately result in enhanced
shareholder value. About Superior Bancorp Superior Bancorp is a
$3.0 billion thrift holding company headquartered in Birmingham,
Alabama. The principal subsidiary of Superior Bancorp is Superior
Bank, a Southeastern community bank and the third largest
U.S.-owned bank headquartered in Alabama. Superior Bank has 74
branches with 43 locations throughout the state of Alabama and 31
locations in Florida. Superior Bank currently has two new branches
planned for Alabama during the remainder of 2008 in addition to
those that have opened since September 2006. Superior Bank operates
22 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
their analysis of Superior's performance. Non-GAAP measures
typically adjust GAAP performance measures to exclude the effects
of charges, expenses and gains related to the consummation of
mergers and acquisitions, and costs related to the integration of
merged entities. These non-GAAP measures may also exclude other
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 Annual Report on Form 10-K, 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) 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; (3) inflation, interest rate, market and monetary
fluctuations; (4) our ability to successfully integrate the assets,
liabilities, customers, systems and management we acquire or merge
into our operations; (5) 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; (6) the willingness of users to substitute
competitors' products and services for our products and services;
(7) 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; (8) our ability to resolve any legal
proceeding on acceptable terms and its effect on our financial
condition or results of operations; (9) technological changes; (10)
changes in consumer spending and savings habits; (11) the effect of
natural disasters, such as hurricanes, in our geographic markets;
and (12) regulatory, legal or judicial proceedings. Superior
Bancorp disclaims any intent or obligation to update
forward-looking 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) March 31, December
31, 2008 2007 2007 (Unaudited) (Unaudited) Assets Cash and due from
banks $67,057 $47,339 $52,983 Interest bearing deposits in other
banks 5,515 12,447 6,916 Federal funds sold 10,647 14,889 3,452
Investment securities available for sale 367,975 342,837 361,171
Tax lien certificates 12,085 12,188 15,615 Mortgage loans held for
sale 41,789 28,059 33,408 Loans, net of unearned income 2,066,192
1,675,317 2,017,011 Less: Allowance for loan losses (23,273)
(18,977) (22,868) Net loans 2,042,919 1,656,340 1,994,143 Premises
and equipment, net 104,687 95,689 104,799 Accrued interest
receivable 15,566 13,440 16,512 Stock in FHLB 19,227 13,383 14,945
Cash surrender value of life insurance 45,731 40,895 45,277
Goodwill and other intangibles 186,519 128,743 187,520 Other assets
44,182 45,561 48,684 Total assets $2,963,899 $2,451,810 $2,885,425
Liabilities and Stockholders' Equity Deposits Noninterest-bearing
$226,256 $189,729 $207,602 Interest-bearing - brokered certificates
of deposit 58,761 166,169 118,893 - customer deposits 1,880,867
1,504,795 1,874,116 Total deposits 2,165,884 1,860,693 2,200,611
Advances from FHLB 312,832 200,840 222,828 Federal funds borrowed
and security repurchase agreements 6,619 23,022 17,075 Notes
payable 9,500 5,993 9,500 Junior subordinated debentures owed to
unconsolidated subsidiary trusts 53,658 43,859 53,744 Accrued
expenses and other liabilities 63,571 38,872 31,625 Total
liabilities 2,612,064 2,173,279 2,535,383 Stockholders' Equity
Convertible preferred stock, par value $.001 per share; authorized
5,000,000 shares; - 0 - shares issued and outstanding - - - Common
stock, par value $.001 per share; authorized 15,000,000 shares;
shares issued 10,373,556, 8,684,761, and 10,380,658 respectively;
outstanding 10,052,808, 8,664,592, and 10,027,079, respectively 11
9 10 Surplus 329,008 254,020 329,232 Retained earnings 34,252
28,234 33,557 Accumulated other comprehensive gain (loss) 966
(1,024) 174 Treasury stock, at cost (11,364) (716) (12,309)
Unearned ESOP stock (582) (1,992) (622) Unearned restricted stock
(456) - - Total stockholders' equity 351,835 278,531 350,042 Total
liabilities and stockholders' equity $2,963,899 $2,451,810
$2,885,425 Superior Bancorp and Subsidiaries Condensed Consolidated
Statements of Income (Amounts In Thousands, Except Per Share Data)
Three Months Ended Year Ended March 31, December 31, 2008 2007 2007
(Unaudited) Interest income Interest and fees on loans $37,346
$34,312 $150,443 Interest on investment securities: Taxable 4,052
4,439 17,174 Exempt from Federal income tax 430 129 897 Interest on
federal funds sold 80 127 471 Interest and dividends on other
investments 644 737 2,944 Total interest income 42,552 39,744
171,929 Interest expense Interest on deposits 20,253 17,468 79,667
Interest on FHLB advances and other borrowings 2,792 3,249 12,971
Subordinated debentures 1,015 993 4,129 Total interest expense
24,060 21,710 96,767 Net interest income 18,492 18,034 75,162
Provision for loan losses 1,872 705 4,541 Net interest income after
provision for loan losses 16,620 17,329 70,621 Noninterest income
Service charges and fees on deposits 2,103 1,786 7,957 Mortgage
banking income 1,266 950 3,860 Investment securities gains 402 243
308 Change in fair value of derivatives 1,050 (152) 1,310 Increase
in cash surrender value of life insurance 552 448 1,895 Other
income 1,228 811 4,027 Total noninterest income 6,601 4,086 19,357
Noninterest expenses Salaries and employee benefits 12,141 10,098
42,316 Occupancy, furniture and equipment expense 4,060 3,127
13,391 Amortization of intangibles 896 304 1,691 Loss on
extinguishment of debt - - 1,469 Merger related costs 108 319 639
Loss on termination of ESOP - - 158 Other operating expenses 5,059
4,178 18,559 Total noninterest expenses 22,264 18,026 78,223 Income
before income taxes 957 3,389 11,755 Income tax expense 262 1,091
4,134 Net income $695 $2,298 $7,621 Basic net income per common
share $0.07 $0.27 $0.82 Diluted net income per common share $0.07
$0.26 $0.82 Weighted average common shares outstanding 10,011 8,610
9,244 Weighted average common shares outstanding, assuming dilution
10,045 8,760 9,333 SUPERIOR BANCORP AND SUBSIDIARIES UNAUDITED
SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars in thousands, except
per share data) As of and As of and for the for the Year
Three-Months Ended Ended March 31, December 31, 2008 2007 2007
Selected Average Balances : Total assets $2,897,591 $2,422,721
$2,620,962 Loans, net of unearned income 2,032,730 1,647,768
1,814,032 Mortgage loans held for sale 37,582 19,626 24,997
Investment securities 347,167 352,789 350,561 Total
interest-earning assets 2,472,689 2,077,159 2,246,177
Noninterest-bearing deposits 216,745 179,567 191,066
Interest-bearing deposits 1,982,981 1,649,267 1,790,719 Advances
from FHLB 246,247 207,851 221,831 Federal funds borrowed and
security repurchase agreements 8,389 23,984 17,061 Junior
subordinated debentures owed to unconsolidated subsidiary trusts
53,707 43,936 48,557 Total interest-bearing liabilities 2,304,554
1,934,405 2,088,719 Stockholders' equity 351,350 276,419 308,272
Per Share Data (8): Net income - basic $0.07 $0.27 $0.82 - diluted
$0.07 $0.26 $0.82 Weighted average common shares outstanding -
basic 10,011 8,610 9,244 Weighted average common shares outstanding
- diluted 10,045 8,760 9,333 Common book value per share at period
end $35.00 $32.14 $34.91 Tangible common book value per share at
period end $16.44 $17.29 $16.21 Common shares outstanding at period
end 10,053 8,665 10,027 Performance Ratios and Other Data: Return
on average assets(1) 0.10% 0.38% 0.29% Return on average tangible
assets 0.10 0.41 0.31 Return on average stockholders' equity(1)
0.80 3.37 2.47 Return on average tangible equity 1.70 6.33 4.91 Net
interest margin(1)(2)(3) 3.04 3.53 3.37 Net interest
spread(1)(3)(4) 2.76 3.22 3.04 Noninterest income to average
assets(1)(5) 0.72 0.66 0.67 Noninterest expense to average
assets(1)(6) 2.95 2.91 2.83 Efficiency ratio (7) 88.92 78.79 79.48
Average loan to average deposit ratio 94.12 91.17 92.80 Average
interest-earning assets to average interest bearing liabilities
107.30 107.38 107.54 Intangible assets - goodwill $162,466 $113,988
$162,466 - core deposit intangible ("CDI") and other intangibles
24,053 14,755 25,054 Assets Quality Ratios: Nonaccrual loans
$30,543 $7,645 $22,533 Accruing loans 90 days or more delinquent
251 432 2,117 Restructured loans 65 503 671 Other real estate owned
and repossessed assets 6,748 1,581 4,415 Net loan charge-offs 1,467
620 4,282 Allowance for loan losses to nonperforming loans 75.42%
221.18% 90.31% Allowance for loan losses to loans, net of unearned
income 1.13 1.13 1.13 Nonperforming assets ("NPA") to loans plus
NPAs, net of unearned income 1.81 0.61 1.47 NPAs to total assets
1.27 0.41 1.03 Net loan charge-offs to average loans(1) 0.29 0.15
0.24 Net loan charge-offs as a percentage of: Provision for loan
losses 78.37 87.94 94.30 Allowance for loan losses(1) 25.28 13.25
18.72 (1)- Annualized for the three-month periods ended March 31,
2008 and 2007. (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)-Noninterest income has been
adjusted for changes in fair value of derivatives and investment
security gains(losses). (6)-Noninterest expense has been adjusted
for CDI amortization, extinguishment of debt, termination of ESOP,
merger related costs, management separation costs, losses on other
real estate and the loss on sale of assets, (7)-Efficiency ratio is
calculated by dividing noninterest expense, adjusted for CDI
amortization, merger related costs, extinguishment of debt,
termination of ESOP, losses on other real estate and the loss on
sale of assets, by noninterest income, adjusted for changes in fair
values of derivatives and investment security gains (losses), plus
net interest income on a fully tax equivalent basis. (8)-Per share
data has been retroactively restated to reflect 1-for-4 reverse
stock split effective April 28, 2008. SUPERIOR BANCORP AND
SUBSIDIARIES UNAUDITED SUMMARY CONSOLIDATED FINANCIAL DATA (Dollars
in Thousands, except Per Share Data) For the Three-Month Period
Ended Reconciliation Table March 31, 2008 March 31, 2007 Net income
(GAAP) $695 $2,298 Merger-related items, net of tax 68 201
Operating earnings (non-GAAP) $763 $2,499 As of March 31, 2008
March 31, 2007 Total stockholders' equity (GAAP) $351,835 $278,531
Intangible assets (GAAP) 186,519 128,743 Total tangible equity
(non-GAAP) $165,316 $149,788 For the Three-Month Period Ended Other
Financial Data of Subsidiary (Superior Bank) March 31, 2008 March
31, 2007 Net income $1,677 $3,283 Total stockholders equity 399,873
307,966 Return on average assets(1) 0.23% 0.56% Return on average
tangible assets(1) 0.25% 0.59% Return on average stockholders'
equity(1) 1.71% 4.34% Return on average tangible equity(1) 3.24%
7.48% (1) Annualized. DATASOURCE: Superior Bancorp CONTACT: Mark
Tarnakow, Chief Financial Officer, Superior Bancorp,
+1-205-327-3608 Web site: http://www.superiorbank.com/
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