Sound Banking Company Reports Second Quarter 2008 Results
August 22 2008 - 5:31PM
PR Newswire (US)
MOREHEAD CITY, N.C., Aug. 22 /PRNewswire-FirstCall/ -- Sound
Banking Company (OTC:SNBN) (BULLETIN BOARD: SNBN) reported today
that net income for the second quarter of 2008 was $18 thousand or
$0.02 per diluted share compared with $162 thousand or $0.19 per
diluted share for the second quarter of 2007. Net income for the
first six months of 2008 was $115 thousand, or $0.14 per diluted
share compared with $410 thousand or $0.49 per diluted share for
the same period of 2007. The decline in earnings was primarily
attributable to a lower interest margin and an increase in the loan
loss provision. The Bank also incurred higher non-interest expenses
associated with its expansion into the Beaufort market. Net
interest income was $868,000 for the current quarter, a decreased
of $127,000 or 13% when compared to $994,000 for the second quarter
of 2007. Year-to-date net interest income was $1,781,000, a
decreased $201,000 or 10% from the $1,982,000 reported for the
comparable 2007 period. The decline in net interest income was the
direct result of interest rate cuts by the Federal Reserve over the
last nine months. The Bank's net interest margin in the second
quarter of 2008 was 3.20% compared to 3.88% for the same period of
2007. At June 30, 2008, the Bank's reserve for loan losses was
1.40% of total loans outstanding compared with 1.15 % at December
31, 2007 and a peer group average of 1.22%. Total assets as of June
30, 2008 were $122 million, a $10 million or 9% increase when
compared to total assets of $112 million a year earlier. At quarter
end, loans outstanding were $90.5 million. Asset growth during the
current period came mainly from increases in investments and other
interest- earning assets. Commenting on the second quarter results,
Phil Collins, President & CEO, stated, "Our performance
reflects the current economic climate of low interest rates and a
very soft real estate market. In the second quarter, we made a
prudent decision to increase our loan loss reserve even though our
loan losses have been minimal this year because we expect little,
if any, improvement in current economic conditions until 2009.
However, it is important to note that we are well capitalized and
are appropriately positioned to operate in this uncertain
environment." Sound Banking Company is a state chartered bank and
offers a full range of financial services. Sound Bank,
headquartered in Morehead City, operates full service offices in
Morehead City, Beaufort and Cape Carteret and a loan production
office in New Bern, North Carolina. Information about Sound Banking
Company and its products and services is available on its web site
at: http://www.soundbanking.com/ The information as of and for the
quarter ended June 30, 2008 as presented is unaudited. This news
release contains forward-looking statements. The actual results
might differ materially from those projected in the forward-
looking statements for various reasons, including our limited
operating history, substantial changes in financial markets,
regulatory changes, changes in interest rates, loss of deposits and
loan demand to other savings and financial institutions, and
changes in real estate values and the real estate market.
DATASOURCE: Sound Banking Company CONTACT: Phil Collins, Sound
Banking Company, +1-252-727-5558 Web site:
http://www.soundbanking.com/
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