FORT WORTH, Texas, Oct. 16 /PRNewswire-FirstCall/ -- Summit
Bancshares, Inc. (NASDAQ:SBIT), the bank holding company for Summit
Bank, N.A., today reported net income for the third quarter of 2006
of $3,590,000, or $0.28 per diluted common share, compared to
$3,456,000, or $0.27 per diluted common share, for the comparable
2005 period, a 3.7% increase in per share earnings. For the nine
months ended September 30, 2006, net income was $9,539,000, or
$0.75 per diluted common share, a 1.3% decrease over the same
period of the prior year. This decrease for the nine months is
attributable, in part, to the large provision for loan losses of
$2,000,000 that was recorded in the first quarter of 2006. Philip
E. Norwood, Chairman, President and Chief Executive Officer stated,
"We believe that the fundamentals of the Company remain strong with
a 14.7% increase in net interest income (tax equivalent) for the
third quarter of 2006 compared to the same period of the prior
year. Also, average loans and average deposits for the third
quarter of 2006 increased 14.7% and 8.9%, respectively, from the
third quarter of 2005." He further stated, "We are excited about
the pending merger with Cullen/Frost Bankers, Inc. that was
announced on July 3, 2006. The merger is expected to close on
December 8, 2006. We are looking forward to joining the current
Frost employees in Tarrant County and around the state in providing
additional new products and services to our customers." Net
interest income (tax equivalent) for the third quarter of 2006 was
$12.9 million compared to $11.3 million in the third quarter of
last year, a 14.7% increase. Contributing to this increase was an
11.6% increase in average earning assets and an increase in net
interest margin of 13 basis points to 4.71%, comparing the third
quarter of 2006 to the third quarter of 2005. For the nine months
ended September 30, 2006, net interest income (tax equivalent) was
$37.8 million, an increase of 17.0% over the first nine months of
2005. The Company believes that the increase in net interest margin
reflects the increase in market interest rates that have occurred
over the last twelve months and the Company's sensitivity to
changes in market interest rates as well as the 11.6% increase in
average earning assets in the third quarter of 2006 versus the same
quarter last year. Non-interest income for the third quarter of
2006 was $2,101,000, a decrease of $75,000 over the third quarter
of the prior year. This decrease resulted primarily from an
extraordinary gain on sale of assets in the third quarter of 2005
in the amount of $247,000. In the third quarter of 2006 compared to
the third quarter of 2005, there were positive increases in service
charges on deposits, investment service fees, mortgage origination
fees and debit card fees. For the nine months ended September 30,
2006, non- interest income was $6,170,000, an increase of 1.3% over
the first nine months of 2005. Non-interest expenses of $8,957,000
for the third quarter of 2006 increased $1,320,000, or 17.3%
compared to the third quarter of last year. Included in the third
quarter 2006 total non-interest expense was the expense impact of a
$524,000 check fraud loss representing approximately 40% of the
increase for the quarter. Approximately 38% of the increase in
non-interest expenses was due to increases in salaries and benefits
of personnel and occupancy and equipment expenses directly related
to the growth of the Company. Also, in the third quarter of 2006,
there was a 68% increase in legal and professional fees compared to
the third quarter of 2005. A portion of this increase is
attributable to legal and consulting fees incurred in connection
with collection efforts related to a problem credit that was
reported in January 2006. Non-interest expense for the nine months
ended September 30, 2006, was $25,377,000 compared to $22,447,000
for the same period in the prior year, an increase of 13.1%. This
increase in non-interest expense is primarily due to the check
fraud loss noted above and increases in salary and benefits expense
and occupancy equipment expense. The provision for loan losses was
$415,000 for the third quarter of 2006 compared to $315,000 for the
same quarter of 2005. This increase is primarily attributable to a
13.7% increase in period-end loans from September 30, 2005 to
September 30, 2006. In the first and second quarters of 2006, the
Company recorded provisions for loan losses of $2.0 million and
$1.1 million, respectively, in each case primarily related to the
problem credit noted above. In the second quarter of 2006, net loan
charge-offs of $4.2 million were recorded, primarily related to
this problem credit. On October 5, 2006, the Company filed a report
with the Securities and Exchange Commission reporting a $3.0
million loan charge-off recovery resulting from a cash payment of
$4.5 million on this problem credit. It is anticipated that the
recovery will result in a reduction in the provision for loan
losses in the fourth quarter of 2006. The allowance for loan losses
was 1.21% of total loans as of September 30, 2006. As of September
30, 2006, non-accrual loans were $9.3 million, or 1.08% of total
loans. The Company's loans were $858 million at September 30, 2006,
an increase of 13.7% over September 2005. Deposits increased 7.2%
to $929 million at September 30, 2006. At September 30, 2006,
shareholders' equity was $88.8 million, a book value of $7.04 per
outstanding share. Return on average assets and return on average
shareholders' equity was 1.23% and 16.40%, respectively, for the
quarter ended September 30, 2006 and 1.12% and 15.08%,
respectively, for the nine months ended September 30, 2006. Summit
files annual, quarterly and current reports, proxy statements and
other information with the SEC. Investors may read and copy any of
these reports, statements and other information at the SEC's public
reference room located at 450 Fifth Street, N.W., Washington, D.C.
20549. Investors should call the SEC at 1-800-SEC-0330 for further
information on the public reference room. The reports, statements,
and other information filed by Summit with the SEC are also
available free at the SEC's web site at http://www.sec.gov/ . You
can also obtain a free copy of these reports, statements and other
information from Summit's web site at http://www.summitbank.net/ .
Certain statements contained in this press release that are not
historical in nature, including statements regarding the Company's
and/or management's intentions, strategies, beliefs, expectations,
representations, plans, projections, or predictions of the future,
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be
covered by the safe harbor provisions for forward-looking
statements contained in the Act. We are including this statement
for purposes of invoking these safe harbor provisions.
Forward-looking statements are based on assumptions involving
certain known and unknown risks and uncertainties, many of which
are beyond the Company's control, and other important factors that
could cause actual results, performance or achievements to differ
materially from those expressed or implied in such forward-looking
statements. These risks and uncertainties are described from time
to time in the Company's filings with the Securities and Exchange
Commission, including but not limited to, those set forth under the
heading "Risk Factors" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2005. SUMMIT BANCSHARES, INC.
(Unaudited) (Dollars in thousands, except per share data) Quarter
Ended Nine Months Ended September 30, % September 30, % EARNINGS
SUMMARY 2006 2005 Change 2006 2005 Change Interest income $19,859
$15,476 28.3% $56,337 $43,227 30.3% Interest expense 7,015 4,263
64.6% 18,770 11,059 69.7% Net interest income 12,844 11,213 14.5%
37,567 32,168 16.8% Provision for loan losses 415 315 31.7% 3,515
765 359.5% Service charges on deposits 1,046 992 5.4% 2,968 2,964
0.1% Gain on sale of investment securities --- --- 0.0% --- ---
0.0% Other income 1,055 1,184 -10.9% 3,202 3,127 2.4% Salaries and
benefits expense 4,895 4,579 6.9% 14,731 13,296 10.8% Occupancy and
equipment expense 1,495 1,311 14.0% 4,343 3,744 16.0% Other expense
2,567 1,747 46.9% 6,303 5,407 16.6% Earnings before income taxes
5,573 5,437 2.5% 14,845 15,047 -1.3% Provision for income taxes
1,983 1,981 0.1% 5,306 5,387 -1.5% Net earnings $3,590 $3,456 3.9%
$9,539 $9,660 -1.3% Basic earnings per share $0.28 $0.28 0.0% $0.76
$0.78 -2.6% Basic weighted average shares outstanding 12,591 12,420
12,533 12,405 Diluted earnings per share $0.28 $0.27 3.7% $0.75
$0.76 -1.3% Diluted weighted average shares outstanding 12,882
12,664 12,800 12,705 Average for Quarter Ended Sept. 30, June 30,
March 31, Dec. 31, Sept. 30, BALANCE SHEET SUMMARY 2006 2006 2006
2005 2005 Total loans $843,458 $830,097 $793,536 $753,311 $735,109
Total investment securities 242,428 242,468 253,197 252,508 226,441
Earning assets 1,087,761 1,073,869 1,048,192 1,017,095 974,844
Total assets 1,161,279 1,139,224 1,116,659 1,082,477 1,038,628
Noninterest bearing deposits 261,768 258,103 251,034 259,062
242,849 Interest bearing deposits 645,270 636,102 608,619 608,863
590,390 Total deposits 907,038 894,205 859,653 867,925 833,239
Other borrowings 161,058 155,510 169,405 128,368 121,435
Shareholders' equity 86,863 84,121 82,609 80,684 79,053 Average for
Nine Months Ended September 30, % BALANCE SHEET SUMMARY 2006 2005
Change Total loans $822,546 $721,952 13.9% Total investment
securities 245,991 221,165 11.2% Earning assets 1,070,085 950,940
12.5% Total assets 1,139,217 1,013,320 12.4% Noninterest bearing
deposits 257,008 235,896 8.9% Interest bearing deposits 630,131
569,827 10.6% Total deposits 887,139 805,723 10.1% Other borrowings
161,960 126,073 28.5% Shareholders' equity 84,547 77,089 9.7%
Ending Balance Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
BALANCE SHEET SUMMARY 2006 2006 2006 2005 2005 Total loans $857,840
$841,961 $808,606 $774,886 $754,153 Total investment securities
251,153 235,246 247,882 256,842 236,544 Total earning assets
1,110,008 1,084,382 1,058,892 1,032,620 1,006,368 Allowance for
loan losses (10,399) (9,958) (13,092) (11,208) (11,131) Premises
and equipment 16,613 16,791 16,855 16,515 15,620 Total assets
1,177,313 1,160,731 1,121,269 1,099,735 1,074,261 Noninterest
bearing deposits 270,863 262,264 262,087 263,027 258,644 Interest
bearing deposits 657,935 643,036 627,810 615,749 607,384 Total
deposits 928,798 905,300 889,897 878,776 866,028 Other borrowings
153,742 165,848 144,527 134,231 123,892 Total liabilities 1,088,546
1,076,480 1,038,928 1,018,402 994,534 Shareholders' equity 88,767
84,251 82,341 81,333 79,727 SUMMIT BANCSHARES, INC. (Unaudited)
(Dollars in thousands) Sept. 30, June 30, March 31, Dec. 31, Sept.
30, NONPERFORMING ASSETS 2006 2006 2006 2005 2005 Nonaccrual loans
$9,289 $6,058 $11,164 $3,000 $4,989 Restructured loans --- --- ---
--- --- Other real estate & foreclosed assets --- --- 387 ---
--- Total nonperforming assets $9,289 $6,058 $11,551 $3,000 $4,989
Total nonperforming assets as a percentage of loans and foreclosed
assets 1.08% 0.72% 1.43% 0.39% 0.66% Accruing loans past due 90
days or more $638 $--- $--- $--- $2,178 Quarter Ended Sept. 30,
June 30, March 31, Dec. 31, Sept. 30, ALLOWANCE FOR LOAN LOSSES
2006 2006 2006 2005 2005 Balance at beginning of period $9,958
$13,092 $11,208 $11,131 $10,798 Loans charged off (22) (4,311)
(257) (286) (25) Loan recoveries 48 77 141 23 43 Net (charge-offs)
recoveries 26 (4,234) (116) (263) 18 Provision for loan losses 415
1,100 2,000 340 315 Balance at end of period $10,399 $9,958 $13,092
$11,208 $11,131 Allowance for loan losses as a percentage of total
loans 1.21% 1.18% 1.62% 1.45% 1.48% Allowance for loan losses as a
percentage of nonperforming loans 111.95% 164.38% 117.27% 373.66%
223.11% Net charge-offs (recoveries) as a percentage of average
loans 0.00% 0.51% 0.01% 0.03% 0.00% Provision for loan losses as a
percentage of average loans 0.05% 0.13% 0.25% 0.05% 0.04% Quarter
Ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, SELECTED
RATIOS 2006 2006 2006 2005 2005 Return on average assets
(annualized) 1.23% 1.24% 0.88% 1.29% 1.32% Return on average equity
(annualized) 16.40% 16.80% 11.91% 17.29% 17.34% Average
shareholders' equity to average assets 7.48% 7.38% 7.40% 7.45%
7.61% Yield on earning assets 7.27% 7.09% 6.82% 6.55% 6.32% Cost of
interest bearing funds 3.45% 3.16% 2.88% 2.53% 2.38% Net interest
margin (tax equivalent) 4.71% 4.76% 4.68% 4.71% 4.58% Efficiency
ratio 59.63% 55.46% 58.20% 58.70% 56.84% End of period book value
per common share $7.04 $6.68 $6.60 $6.54 $6.41 End of period common
shares outstanding 12,601 12,604 12,484 12,444 12,429 SUMMIT
BANCSHARES, INC. (Unaudited) (Dollars in thousands) Three Months
Ended September 30, 2006 Average YIELD ANALYSIS Balance Interest
Yield Interest Earning Assets: Federal funds sold & interest
bearing deposits $1,875 $24 5.08% Investment securities (taxable)
227,135 2,389 4.21% Investment securities (tax-exempt) 15,293 213
5.57% Loans 843,458 17,308 8.14% Total Interest Earning Assets
1,087,761 19,934 7.27% Noninterest Earning Assets: Cash and due
from banks 34,114 Other assets 49,588 Allowance for loan losses
(10,184) Total Noninterest Earning Assets 73,518 Total Assets
$1,161,279 Interest Bearing Liabilities: Transaction and money
market accounts $255,760 1,475 2.29% Savings deposits 163,024 1,198
2.92% Certificates and other time deposits 226,486 2,330 4.08%
Other borrowings 161,058 2,012 4.96% Total Interest Bearing
Liabilities 806,328 7,015 3.45% Noninterest Bearing Liabilities:
Demand deposits 261,768 Other liabilities 6,320 Shareholders'
equity 86,863 Total Noninterest Bearing Liabilities 354,951 Total
Liabilities and Shareholders' Equity $1,161,279 Net Interest Income
and Margin (tax equivalent) $12,919 4.71% SUMMIT BANCSHARES, INC.
(Unaudited) (Dollars in thousands) Three Months Ended September 30,
2005 Average YIELD ANALYSIS Balance Interest Yield Interest Earning
Assets: Federal funds sold & interest bearing deposits $13,294
$114 3.40% Investment securities (taxable) 216,541 2,073 3.83%
Investment securities (tax-exempt) 9,900 133 5.37% Loans 735,109
13,203 7.13% Total Interest Earning Assets 974,844 15,523 6.32%
Noninterest Earning Assets: Cash and due from banks 30,876 Other
assets 43,824 Allowance for loan losses (10,916) Total Noninterest
Earning Assets 63,784 Total Assets $1,038,628 Interest Bearing
Liabilities: Transaction and money market accounts $232,640 886
1.51% Savings deposits 173,539 866 1.98% Certificates and other
time deposits 184,211 1,433 3.09% Other borrowings 121,435 1,078
3.52% Total Interest Bearing Liabilities 711,825 4,263 2.38%
Noninterest Bearing Liabilities: Demand deposits 242,849 Other
liabilities 4,901 Shareholders' equity 79,053 Total Noninterest
Bearing Liabilities 326,803 Total Liabilities and Shareholders'
Equity $1,038,628 Net Interest Income and Margin (tax equivalent)
$11,260 4.58% SUMMIT BANCSHARES, INC. (Unaudited) (Dollars in
thousands) Nine Months Ended September 30, 2006 Average YIELD
ANALYSIS Balance Interest Yield Interest Earning Assets: Federal
funds sold & interest bearing deposits $1,548 $56 4.84%
Investment securities (taxable) 232,074 7,084 4.07% Investment
securities (tax-exempt) 13,917 569 5.45% Loans 822,546 48,827 7.94%
Total Interest Earning Assets 1,070,085 56,536 7.06% Noninterest
Earning Assets: Cash and due from banks 32,633 Other assets 48,262
Allowance for loan losses (11,763) Total Noninterest Earning Assets
69,132 Total Assets $1,139,217 Interest Bearing Liabilities:
Transaction and money market accounts $259,503 4,041 2.08% Savings
deposits 155,337 3,032 2.61% Certificates and other time deposits
215,291 6,136 3.81% Other borrowings 161,960 5,561 4.59% Total
Interest Bearing Liabilities 792,091 18,770 3.17% Noninterest
Bearing Liabilities: Demand deposits 257,008 Other liabilities
5,571 Shareholders' equity 84,547 Total Noninterest Bearing
Liabilities 347,126 Total Liabilities and Shareholders' Equity
$1,139,217 Net Interest Income and Margin (tax equivalent) $37,766
4.72% SUMMIT BANCSHARES, INC. (Unaudited) (Dollars in thousands)
Nine Months Ended September 30, 2005 Average YIELD ANALYSIS Balance
Interest Yield Interest Earning Assets: Federal funds sold &
interest bearing deposits $7,823 $181 3.09% Investment securities
(taxable) 212,369 5,913 3.71% Investment securities (tax-exempt)
8,796 349 5.29% Loans 721,952 36,905 6.83% Total Interest Earning
Assets 950,940 43,348 6.09% Noninterest Earning Assets: Cash and
due from banks 30,361 Other assets 42,663 Allowance for loan losses
(10,644) Total Noninterest Earning Assets 62,380 Total Assets
$1,013,320 Interest Bearing Liabilities: Transaction and money
market accounts $233,203 2,400 1.38% Savings deposits 168,002 2,206
1.76% Certificates and other time deposits 168,622 3,563 2.83%
Other borrowings 126,073 2,890 3.06% Total Interest Bearing
Liabilities 695,900 11,059 2.12% Noninterest Bearing Liabilities:
Demand deposits 235,896 Other liabilities 4,435 Shareholders'
equity 77,089 Total Noninterest Bearing Liabilities 317,420 Total
Liabilities and Shareholders' Equity $1,013,320 Net Interest Income
and Margin (tax equivalent) $32,289 4.54% SUMMIT BANCSHARES, INC.
(Unaudited) (Dollars in thousands, except per share data) September
30, September 30, LOAN PORTFOLIO 2006 % 2005 % Commercial and
industrial $310,236 36.2% $270,807 35.9% Real estate: Commercial
281,107 32.8% 244,966 32.5% Residential 93,764 10.9% 89,487 11.9%
Construction and development 135,992 15.8% 109,431 14.5% Consumer
36,741 4.3% 39,462 5.2% Total loans (gross) $857,840 100.0%
$754,153 100.0% Sept. 30, Sept. 30, REGULATORY CAPITAL DATA 2006
2005 Tier 1 Capital $93,120 $82,621 Tier 1 Ratio 10.96% 10.45%
Total Capital (Tier 1 + Tier 2) $103,519 $92,520 Total Capital
Ratio 12.18% 11.70% Total Risk-Adjusted Assets $849,874 $790,653
Tier 1 Leverage Ratio 8.10% 8.04% Sept. 30, Sept. 30, OTHER DATA
2006 2005 Full Time Equivalent Employees (FTE's) 252 264 Stock
Price Range (For the Quarter Ended): High $28.94 $19.28 Low $26.69
$17.16 Close $28.12 $18.37
http://www.newscom.com/cgi-bin/prnh/20041025/DASBANKLOGO
http://photoarchive.ap.org/ DATASOURCE: Summit Bancshares, Inc.
CONTACT: Bob G. Scott, COO of Summit Bancshares, Inc.,
+1-817-877-2660 Web site: http://www.summitbank.net/
Copyright
Summit Bancshares (NASDAQ:SBIT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Summit Bancshares (NASDAQ:SBIT)
Historical Stock Chart
From Sep 2023 to Sep 2024