Net Income Increases 17.9% and Net Interest Margin Increases to
5.64% Compared to Second Quarter 2005 FORT WORTH, Texas, July 26
/PRNewswire-FirstCall/ -- State National Bancshares, Inc.
(NASDAQ:SNBI) ("SNBI"), the parent company of State National Bank,
today announced net income for the second quarter 2006 of $4.6
million, or $0.37 per diluted common share, compared to $3.9
million, or $0.37 per diluted common share, for the comparable 2005
period. Net income for the six months ended June 30, 2006 was $9.1
million, or $0.75 per diluted common share, compared to $7.3
million, or $0.71 per diluted common share, for the comparable 2005
period. On June 12, 2006, SNBI entered into a definitive agreement
with Banco Bilbao Vizcaya Argentaria, S.A., a bank organized under
the laws of Spain, (MADRID: BBVA) ("BBVA") pursuant to which BBVA
has agreed to acquire SNBI for approximately $38.50 per share or
approximately $480 million in cash. The transaction is expected to
close during the first quarter of 2007. SNBI expects to continue to
pay dividends through the fourth quarter of 2006. SNBI completed
the acquisition of Heritage Financial Corporation ("Heritage") on
October 6, 2005. The results of operations for Heritage have been
included in SNBI's consolidated financial statements since the date
of acquisition. "Our Company remains focused on our strengths: net
interest margin, noninterest expenses efficiencies and quality loan
growth," said Tom C. Nichols, Chairman, President and CEO of SNBI.
"The BBVA merger announcement in June was a positive development
and all of our bankers and managers remain customer aware and
bottom-line driven." Results of Operations For the three months
ended June 30, 2006, net income was $4.6 million compared to $3.9
million for the same period in 2005. Net income per diluted common
share was $0.37 for the three months ended June 30, 2006 compared
with $0.37 for the same period in 2005. Included in the 2006 second
quarter results are transaction costs related to the pending
acquisition by BBVA totaling $755,000, or $0.06 per share. Return
on average assets, average common equity and average tangible
equity for the three months ended June 30, 2006 were 1.10%, 8.33%
and 15.37%, respectively, compared to 1.14%, 9.70% and 19.51%,
respectively for the three months ended June 30, 2005. State
National's efficiency ratio was 64.67% and 65.18% for the three
months ended June 30, 2006 and June 30, 2005, respectively. The
2006 efficiency ratio was negatively impacted by the previously
mentioned transaction costs recorded in the 2nd quarter of 2006.
Net income was $9.1 million for the six month period ended June 30,
2006, compared to $7.3 million for the six month period ended June
30, 2005. Net income per diluted common share was $0.75 for the six
month period ended June 30, 2006, compared to $0.71 for the
comparable period in 2005 which represents an increase of 5.6% on a
per share basis. Returns on average assets, average common equity
and average tangible equity for the first six months of 2006 were
1.11%, 8.44% and 15.78%, respectively, compared to 1.08%, 9.34% and
19.22%, respectively for the six months ended June 30, 2005. State
National's efficiency ratio was 64.13% and 65.60% for the six
months ended June 30, 2006 and June 30, 2005, respectively. Our
tax-equivalent net interest income was $25.4 million for the three
months ended June 30, 2006 as compared to $18.6 million for the
comparable period in 2005, an increase of 36.7%. Our net interest
margin on a fully taxable-equivalent basis was 5.64% for second
quarter of 2006 as compared to 5.35% in the same period in 2005.
These increases were primarily attributable to higher loan volumes
due primarily to the acquisition of Heritage as well as to higher
interest rates earned on our loan portfolio. Our tax-equivalent net
interest income was $49.5 million for the six months ended June 30,
2006 as compared to $36.0 million for the comparable period in
2005, an increase of 37.2%. Our net interest margin on a fully
taxable-equivalent basis was 5.52% for first six months of 2006 as
compared to 5.29% in the same period in 2005. These increases were
primarily attributable to higher loan volumes due primarily to the
acquisition of Heritage as well as to higher interest rates earned
on our loan portfolio. Provision for loan losses was $320,000 for
the three month period ended June 30, 2006 as compared to $300,000
for the three month period ended June 30, 2005. This represents an
increase of 6.7%. The provision for loan losses represented 0.12%
of average total loans for the second quarter 2006 compared to
0.12% for the same period in 2005. Provision for loan losses was
$800,000 for the six month period ended June 30, 2006 as compared
to $600,000 for the six month period ended June 30, 2005. This
represents an increase of 33.3%. Management calculated a provision
for loan losses during 2006 to provide amounts slightly above the
long term average net charge offs and to increase the overall loan
loss reserve percentage to approximate peer ratios. The provision
for loan losses represented 0.15% of average total loans for the
first six months of 2006 compared to 0.13% for the same period in
2005. Noninterest income was $5.0 million for the three month
period ended June 30, 2006 and $4.5 million for the three month
period ended June 30, 2005, a 10.9% increase. This increase is
primarily related to increased transactional and savings accounts
resulting from our acquisition of Heritage. Noninterest income was
$9.7 million for the six month period ended June 30, 2006 and $8.9
million for the six month period ended June 30, 2005, a 9.3%
increase. This increase is primarily related to increased
transactional and savings accounts resulting from our acquisition
of Heritage. Noninterest expense was $16.8 million for the second
quarter of 2006 as compared to $13.7 million for the same period in
2005, an increase of 22.6% which is primarily attributable to the
acquisition of Heritage. Also included in the second quarter of
2006 are costs related to the pending acquisition by BBVA totaling
$755,000. These costs represent legal fees and fairness opinion
fees associated with the pending acquisition. Noninterest expense
was $32.5 million for the first six months of 2006 as compared to
$27.1 million for the same period in 2005, an increase of 20.1%
which is primarily attributable to the acquisition of Heritage and
previously mentioned transaction costs recorded in the 2nd quarter
of 2006. Financial Condition Assets totaled $1.6 billion at June
30, 2006, reflecting an increase of $268.8 million, or 19.7%, as
compared to assets at June 30, 2005. The increase was primarily
attributable to the acquisition of Heritage. At June 30, 2006,
assets related to Heritage represented approximately $232.4
million. Loans at June 30, 2006 totaled $1.1 billion, an increase
of $139.7 million, or 14.5% from $965.9 million at June 30, 2005.
The increase in loans was primarily related to the acquisition of
Heritage, with loans related to Heritage totaling approximately
$94.9 million at June 30, 2006. Total deposits at June 30, 2006
were $1.3 billion, an increase of $183.9 million, or 16.3% from
$1.1 billion at June 30, 2005. The increase in deposits was
primarily attributable to the acquisition of Heritage, with
deposits related to Heritage totaling approximately $165.1 million
at June 30, 2006. Other Information SNBI paid a quarterly cash
dividend of $0.10 per common shares on June 15, 2006 to common
shareholders of record on June 5, 2006. Due to the pending
acquisition, SNBI has elected not to host an earnings conference
call related to the 2nd quarter 2006 earnings results.
FORWARD-LOOKING STATEMENTS This press release contains certain
forward-looking information about State National that is intended
to be covered by the safe harbor for "forward- looking statements"
provided by the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact are
forward- looking statements. Such statements involve inherent risks
and uncertainties, many of which are difficult to predict and are
generally beyond the control of State National. State National
cautions readers that a number of important factors could cause
actual results to differ materially from those expressed in,
implied or projected by, such forward-looking statements. Risks and
uncertainties include, but are not limited to: the possibility that
personnel changes will not proceed as planned; planned acquisitions
and related cost savings cannot be realized or realized within the
expected time frame; costs and uncertainties related to the outcome
of pending litigation; revenues are lower than expected;
competitive pressure among depository institutions increases
significantly; the integration of acquired businesses costs more,
takes longer or is less successful than expected; the cost of
additional capital is more than expected; a change in the interest
rate environment reduces interest margins; general economic
conditions, either nationally or in the market areas in which State
National operates, are less favorable than expected; legislative or
regulatory requirements or changes that adversely affect State
National's business or regulatory capital requirements, or that
alter the regulatory capital treatment of the State National's
trust preferred securities; changes in the securities markets and
other risks that are described in State National's public filings
with the U.S. Securities and Exchange Commission (the "SEC"). If
any of these risks or uncertainties materializes or if any of the
assumptions underlying such forward-looking statements proves to be
incorrect, State National's results could differ materially from
those expressed in, implied or projected by such forward- looking
statements. All information in this release and its attachments is
as of July 26, 2006. State National assumes no obligation to update
such forward-looking statements. State National Bancshares, Inc.
Financial Highlights (Dollars in thousands, except per share data)
As of or For The Three Month Periods Ended June 30, March 31, Dec.
31, Sept. 30, June 30, 2006 2006 2005 2005 2005 Income Statement
(Unaudited) Data: Total interest income $25,263 $23,886 $23,474
$19,589 $18,572 Total interest expense 6,031 5,512 5,230 3,882
3,385 Net interest income 19,232 18,374 18,244 15,707 15,187
Provision for loan losses 320 480 150 150 300 Net interest income
after provision 18,912 17,894 18,094 15,557 14,887 Noninterest
income 4,999 4,697 4,886 4,931 4,508 Noninterest expense 16,761
15,784 15,912 14,025 13,669 Income before income taxes and minority
interest in consolidated subsidiary's net (income) loss 7,150 6,807
7,068 6,463 5,726 Income tax expense 2,586 2,280 2,061 2,085 1,866
Minority interest in consolidated subsidiary's net (income) loss
(12) 60 --- --- --- Net income $4,552 $4,587 $5,007 $4,378 $3,860
Balance Sheet Data: Total assets $1,634,602 $1,692,678 $1,662,877
$1,397,009 $1,365,816 Securities 239,279 218,491 214,881 124,899
133,916 Total loans 1,105,508 1,094,896 1,086,195 973,322 965,853
Intangibles, net 115,686 116,676 118,422 83,833 84,657 Total
deposits 1,311,449 1,382,539 1,357,078 1,150,776 1,127,582 Junior
subordinated debentures 47,000 47,000 47,000 47,000 47,000 Other
borrowings 44,420 33,919 34,438 28,280 22,113 Stockholders' equity
218,575 216,072 212,257 161,335 158,213 Per Share Data:
Earnings-basic $0.38 $0.38 $0.42 $0.43 $0.38 Earnings-diluted 0.37
0.38 0.41 0.42 0.37 Cash dividend 0.10 0.10 --- --- --- Book value
18.19 18.03 17.73 16.03 15.73 Period end shares outstanding
12,014,083 11,984,083 11,971,107 10,063,415 10,059,915 Weighted
average shares outstanding- basic 12,003,918 11,976,230 11,971,107
10,080,154 10,059,860 Weighted average shares outstanding- diluted
12,270,849 12,176,031 12,297,044 10,352,201 10,322,065 Performance
Ratios: Return on average equity 8.33% 8.54% 9.44% 10.85% 9.70%
Return on average assets 1.10 1.11 1.22 1.27 1.14 Return on average
tangible common equity 15.37 16.13 17.95 21.54 19.51 Net interest
margin 5.64 5.40 5.36 5.41 5.35 Efficiency ratio 64.67 63.56 63.99
63.93 65.18 Asset Quality Ratios: Nonperforming assets to loans and
other real estate 0.99% 0.92% 0.89% 0.73% 0.74% Allowance for loan
losses to nonperforming loans 127.44 139.17 144.03 220.08 231.36
Allowance for loan losses to total loans 1.19 1.19 1.16 1.19 1.19
Net charge-offs (recoveries) to average loans (annualized) 0.10
(0.00) 0.32 0.03 0.09 Liquidity and Capital Ratios: Average loans
to average deposits 82.16% 80.89% 80.79% 84.95% 86.45% Total equity
to total assets 13.37 12.77 12.76 11.55 11.58 Average equity to
average assets 13.25 13.02 12.91 11.70 11.77 Tangible equity to
tangible assets(A) 6.84 6.58 6.19 6.23 5.91 Leverage ratio 9.91
9.64 9.36 9.71 9.61 Tier 1 risk-based capital ratio 12.44 12.37
11.98 11.74 11.84 Total risk-based capital ratio 13.51 13.46 13.04
12.82 12.96 (A) This ratio is calculated based on regulatory
tangible common equity. State National Bancshares, Inc. Financial
Highlights (Dollars in thousands, except per share data) As of or
For The Six Months Ended June 30, June 30, 2006 2005 Income
Statement Data: (Unaudited) Total interest income $49,149 $36,008
Total interest expense 11,543 6,117 Net interest income 37,606
29,891 Provision for loan losses 800 600 Net interest income after
provision 36,806 29,291 Noninterest income 9,696 8,872 Noninterest
expense 32,545 27,094 Income before income taxes and minority
interest in consolidated subsidiary's net loss 13,957 11,069 Income
tax expense 4,866 3,772 Minority interest in consolidated
subsidiary's net loss 48 --- Net income $9,139 $7,297 Per Share
Data: Earnings-basic $0.76 $0.73 Earnings-diluted 0.75 0.71 Cash
dividend 0.10 --- Book value 18.19 15.73 Period end shares
outstanding 12,014,083 10,059,915 Weighted average shares
outstanding-basic 11,992,388 10,057,357 Weighted average shares
outstanding-diluted 12,222,764 10,320,427 Performance Ratios:
Return on average equity 8.44% 9.34% Return on average assets 1.11
1.08 Return on average tangible common equity 15.78 19.22 Net
interest margin 5.52 5.29 Efficiency ratio 64.13 65.60 Asset
Quality Ratios: Nonperforming assets to loans and other real estate
0.99% 0.75% Allowance for loan losses to nonperforming loans 127.44
231.36 Allowance for loan losses to total loans 1.19 1.21 Net
charge-offs to average loans (annualized) 0.05 0.09 Liquidity and
Capital Ratios: Average loans to average deposits 81.52% 85.78%
Total equity to total assets 13.37 11.58 Average equity to average
assets 13.13 11.61 Tangible equity to tangible assets(A) 6.84 5.91
Leverage ratio 9.91 9.61 Tier 1 risk-based capital ratio 12.44
11.84 Total risk-based capital ratio 13.51 12.96 (A) This ratio is
calculated based on regulatory tangible common equity. State
National Bancshares, Inc. Consolidated Balance Sheets (Dollars in
thousands) June 30, March 31, Dec 31, Sept 30, June 30, 2006 2006
2005 2005 2005 ASSETS (Unaudited) Cash and due from banks $77,228
$71,236 $72,922 $64,658 $64,175 Federal funds sold --- 65,700
36,950 60,900 34,500 Interest-bearing deposits in other banks 3,301
35,318 44,763 16,525 11,384 Cash and cash equivalents 80,529
172,254 154,635 142,083 110,059 Securities available- for-sale
231,660 210,399 206,787 116,958 126,001 Federal Reserve Bank stock
and other investments 7,619 8,092 8,094 7,941 7,915 Loans
held-for-sale 6,949 7,477 11,584 6,761 8,765 Loans held-for-
investment 1,098,559 1,087,419 1,074,611 966,561 957,088 Total
Loans 1,105,508 1,094,896 1,086,195 973,322 965,853 Less allowance
for loan losses 13,122 13,072 12,591 11,620 11,538 Net loans
1,092,386 1,081,824 1,073,604 961,702 954,315 Premises and
equipment, net 51,897 50,643 48,769 35,583 35,136 Goodwill 99,354
99,351 100,486 70,818 70,818 Other intangible assets, net 16,332
17,325 17,936 13,015 13,839 Accrued interest receivable 9,018 7,921
8,919 6,766 6,142 Other real estate and other repossessed assets
601 696 935 1,851 2,212 Other Assets 45,206 44,173 42,712 40,292
39,379 TOTAL ASSETS $1,634,602 $1,692,678 $1,662,877 $1,397,009
$1,365,816 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES:
Noninterest bearing demand deposits $479,610 $509,329 $487,369
$428,795 $401,797 Interest bearing demand deposits 492,570 535,221
523,857 441,275 448,760 Interest bearing time deposits 339,269
337,989 345,852 280,706 277,025 Total deposits 1,311,449 1,382,539
1,357,078 1,150,776 1,127,582 Federal funds purchased and
repurchase agreements 43,150 32,718 28,597 27,470 21,273 Accrued
interest payable 1,781 1,691 1,645 1,202 1,091 Other liabilities
10,191 10,591 10,459 8,416 9,817 Junior subordinated debentures
47,000 47,000 47,000 47,000 47,000 Notes payable 1,270 1,201 5,841
810 840 Total liabilities 1,414,841 1,475,740 1,450,620 1,235,674
1,207,603 Minority interest in consolidated subsidiary 1,186 866
--- --- --- SHAREHOLDERS' EQUITY Common Stock 12,014 11,984 11,971
11,971 10,060 Additional paid-in-capital 178,560 177,823 177,428
177,012 133,850 Retained earnings 30,904 27,553 24,164 19,157
14,779 Accumulated other comprehensive loss (2,903) (1,288) (1,306)
(677) (476) Subscription Receivable --- --- --- (46,128) --- Total
shareholders' equity 218,575 216,072 212,257 161,335 158,213 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $1,634,602 $1,692,678
$1,662,877 $1,397,009 $1,365,816 State National Bancshares, Inc.
Consolidated Statements of Operations (Dollars in thousands) Three
Month Periods Ended June 30, March 31, Dec. 31, Sept. 30, June 30,
2006 2006 2005 2005 2005 (Unaudited) Interest on loans $22,170
$20,785 $20,471 $17,728 $16,989 Interest on securities 2,632 2,320
2,480 1,277 1,342 Interest on federal funds sold and other earning
assets 461 781 523 584 241 Total interest income 25,263 23,886
23,474 19,589 18,572 Interest expense - deposits 4,632 4,215 4,031
2,862 2,471 Interest expense - federal funds purchased and
securities sold under agreement to repurchase 366 304 248 178 124
Interest expense - subordinated notes payable 1,010 942 898 832 780
Interest expense - notes payable 23 51 53 10 10 Total interest
expense 6,031 5,512 5,230 3,882 3,385 Net interest income 19,232
18,374 18,244 15,707 15,187 Provision for loan losses 320 480 150
150 300 Net interest income after provision for loan losses 18,912
17,894 18,094 15,557 14,887 Service charges on deposit accounts
2,799 2,695 2,750 2,600 2,435 Gain on sale of loans 651 633 797 804
776 Bank owned life insurance 326 327 416 316 319 Other income
1,223 1,042 923 1,211 978 Total noninterest income 4,999 4,697
4,886 4,931 4,508 Salaries and employee benefits 8,054 8,251 8,176
7,297 7,248 Net occupancy and equipment 2,461 2,544 2,547 2,322
2,139 Amortization of intangibles 997 1,022 1,031 824 823
Professional fees 587 504 281 326 336 Communication 325 320 371 300
276 Merger 755 --- 230 19 40 Other 3,582 3,143 3,276 2,937 2,807
Total noninterest expense 16,761 15,784 15,912 14,025 13,669 Income
before income taxes and minority interest in consolidated
subsidiary's net (income) loss 7,150 6,807 7,068 6,463 5,726 Income
tax expense 2,586 2,280 2,061 2,085 1,866 Minority interest in
consolidated subsidiary's net (income) loss (12) 60 --- --- --- Net
income $4,552 $4,587 $5,007 $4,378 $3,860 State National
Bancshares, Inc. Consolidated Statements of Operations (Dollars in
thousands) Six Months Ended June 30, June 30, 2006 2005 (Unaudited)
Interest on loans $42,955 $32,791 Interest on securities 4,952
2,823 Interest on federal funds sold and other earning assets 1,242
394 Total interest income 49,149 36,008 Interest expense - deposits
8,846 4,405 Interest expense - federal funds purchased and
securities sold under agreement to repurchase 671 209 Interest
expense - subordinated notes payable 1,952 1,482 Interest expense -
notes payable 74 21 Total interest expense 11,543 6,117 Net
interest income 37,606 29,891 Provision for loan losses 800 600 Net
interest income after provision for loan losses 36,806 29,291
Service charges on deposit accounts 5,494 4,815 Gain on sale of
loans 1,284 1,349 Bank owned life insurance 653 634 Other income
2,265 2,074 Total noninterest income 9,696 8,872 Salaries and
employee benefits 16,305 14,317 Net occupancy and equipment 5,005
4,307 Amortization of intangibles 2,019 1,647 Professional fees
1,091 691 Communication 645 556 Merger 755 --- Other 6,725 5,576
Total noninterest expense 32,545 27,094 Income before income taxes
and minority interest in consolidated subsidiary's net loss 13,957
11,069 Income tax expense 4,866 3,772 Minority interest in
consolidated subsidiary's net loss 48 --- Net income $9,139 $7,297
State National Bancshares, Inc. Selected Financial Information
(Dollars in thousands) Three Month Period Ended June 30, March 31,
Dec 31, Sept 30, June 30, 2006 2006 2005 2005 2005 Condensed
Average (Unaudited) Balance Sheet Total loans $1,097,418 $1,083,370
$1,082,133 $963,379 $964,792 Securities and other investments
238,968 216,846 235,434 130,028 137,497 Federal funds sold and
other earning assets 38,746 72,482 52,253 68,377 34,611 Total
earning assets 1,375,132 1,372,698 1,369,820 1,161,784 1,136,900
Allowance for loan losses (13,303) (12,813) (13,127) (11,627)
(11,438) Cash and due from banks 67,390 70,120 69,898 62,622 61,063
Goodwill 99,350 100,012 100,494 70,818 70,818 Other intangible
assets, net 16,757 17,669 16,281 13,357 14,191 Other real estate
680 804 1,266 2,036 1,744 Premises and equipment, net 51,497 49,451
47,505 35,835 34,994 Other Assets 52,420 51,556 52,239 44,677
44,726 Total assets $1,649,923 $1,649,497 $1,644,376 $1,379,502
$1,352,998 Noninterest bearing demand $476,571 $476,067 $466,397
$412,567 $397,852 Interest bearing demand, savings and money market
522,112 519,680 521,784 443,542 443,461 Time less than $100,000
186,564 192,444 198,860 153,975 156,724 Time greater than $100,000
150,501 151,113 152,400 123,981 117,918 Total deposits 1,335,748
1,339,304 1,339,441 1,134,065 1,115,955 Federal funds purchased and
other interest bearing liabilities 33,905 31,649 29,939 23,869
20,871 Subordinated notes payable 47,000 47,000 47,000 47,000
47,000 Notes payable 1,245 4,203 4,199 823 850 Other liabilities
12,409 12,319 11,540 12,412 9,141 Total liabilities 1,430,307
1,434,475 1,432,119 1,218,169 1,193,817 Minority interest in
consolidated subsidiary 975 289 --- --- --- Total shareholders'
equity 218,641 214,733 212,257 161,333 159,181 Total liabilities
and shareholders' equity $1,649,923 $1,649,497 $1,644,376
$1,379,502 $1,352,998 State National Bancshares, Inc. Selected
Financial Information (Dollars in thousands) Six Months Ended June
30, June 30, 2006 2005 Condensed Average Balance Sheet (Unaudited)
Total loans $1,090,394 $956,056 Securities and other investments
227,907 144,107 Federal funds sold and other earning assets 55,614
30,475 Total earning assets 1,373,915 1,1,30,638 Allowance for loan
losses (13,058) (11,453) Cash and due from banks 68,755 61,080
Goodwill 99,681 70,818 Other intangible assets, net 17,213 14,605
Other real estate 742 1,925 Premises and equipment, net 50,474
34,464 Other Assets 51,988 44,068 Total assets $1,649,710
$1,346,145 Noninterest bearing demand $476,319 $392,854 Interest
bearing demand, savings and money market 520,896 445,009 Time less
than $100,000 189,504 158,874 Time greater than $100,000 150,807
117,756 Total deposits 1,337,526 1,114,493 Federal funds purchased
and other interest bearing liabilities 32,777 19,444 Subordinated
notes payable 47,000 47,000 Notes payable 2,724 865 Other
liabilities 12,364 8,110 Total liabilities 1,432,391 1,189,912
Minority interest in consolidated subsidiary 632 --- Total
shareholders' equity 216,687 156,233 Total liabilities and
shareholders' equity $1,649,710 $1,346,145 State National
Bancshares, Inc. Selected Financial Information (Dollars in
thousands) As of or For The Three Month Periods Ended June 30,
March 31, Dec 31, Sept 30, June 30, 2006 2006 2005 2005 2005
Allowance for (Unaudited) loan losses Balance, beginning of period
$13,072 $12,591 $11,620 $11,538 $11,386 Provision for loan losses
320 480 150 150 300 Loan loss reserves of acquired banks --- ---
1,670 --- --- Charge-offs: Real estate - construction 18 --- --- 15
--- Real estate - 1-4 family 54 48 36 --- 38 Real estate - other
--- --- --- --- --- Commercial loans 267 --- 272 106 384 Consumer
loans 114 126 257 212 180 Agriculture and other loans 19 --- 500
--- --- Total charge-offs 472 174 1,065 333 602 Recoveries: Real
estate - construction --- --- --- --- --- Real estate - 1-4 family
2 1 1 3 12 Real estate - other 3 3 3 3 3 Commercial loans 142 54 87
210 219 Consumer loans 29 79 122 46 218 Agriculture and other loans
26 38 3 3 2 Total recoveries 202 175 216 265 454 Net charge-offs
(recoveries) 270 (1) 849 68 148 Balance, end of period $13,122
$13,072 $12,591 $11,620 $11,538 Nonperforming Assets Nonaccrual
loans $8,659 $9,087 $8,654 $5,188 $4,892 Accruing loans 90 or more
days past due 13 220 --- --- --- Restructured loans 1,625 86 88 92
95 Total non-performing loans 10,297 9,393 8,742 5,280 4,987 Other
real estate 593 684 927 1,836 2,212 Repossessed assets 8 13 8 15 6
Total non-performing assets $10,898 $10,090 $9,677 $7,131 $7,205
Ratios Allowance for loan losses to total loans 1.19% 1.19% 1.16%
1.19% 1.19% Allowance for loan losses to nonperforming loans 127.44
139.17 144.03 220.08 231.36 Nonperforming assets to loans and other
real estate 0.99 0.92 0.89 0.73 0.74 Nonperforming loans to total
loans 0.93 0.86 0.80 0.54 0.52 Nonperforming assets to total loans
0.99 0.92 0.89 0.73 0.75 Net charge-offs (recoveries) to average
loans (annualized) 0.10 (0.00) 0.32 0.03 0.09 State National
Bancshares, Inc. Yield Analysis (Dollars in thousands) Three Month
Period Ended June 30, 2006 June 30, 2005 Interest Interest Average
Income/ Yield/ Average Income/ Yield/ Balance Expenses Rate(A)
Balance Expense Rate(A) (Unaudited) Assets: Interest earnings
assets: Total loans $1,097,418 $22,199 8.09% $964,792 $16,989 7.04%
Securities 238,968 2,749 4.60% 137,497 1,355 3.94% Time deposits in
other banks 17,069 111 2.60% 8,985 57 2.54% Federal funds sold
21,677 350 6.46% 25,626 184 2.87% Total interest- earnings assets
1,375,132 25,409 7.39% 1,136,900 18,585 6.54% Noninterest- earning
assets: Cash and due from banks 67,390 61,063 Intangible assets
116,107 85,009 Premises and equipment, net 51,497 34,994 Accrued
interest receivable and other assets 53,100 46,470 Allowance for
loan losses (13,303) (11,438) Total noninterest- earning assets
274,791 216,098 Total assets $1,649,923 $1,352,998 Liabilities and
shareholders' equity: Interest-bearing liabilities: Demand, savings
and money market deposits $522,112 1,796 1.38% $443,461 982 0.89%
Time deposits 337,065 2,836 3.37% 274,642 1,489 2.17% Fed funds
purchased and securities sold under agreement to repurchase 33,905
366 4.32% 20,871 124 2.38% Subordinated notes payable 47,000 1,010
8.60% 47,000 780 6.64% Note payable 1,245 23 7.39% 850 10 4.71%
Total interest- bearing liabilities 941,327 6,031 2.56% 786,824
3,385 1.72% Noninterest- bearing liabilities: Demand deposits
476,571 397,852 Accrued interest payable and other liabilities
12,409 9,141 Total noninterest- bearing liabilities 488,980 406,993
Total liabilities 1,430,307 1,193,817 Minority interest in
consolidated subsidiary 975 --- Shareholders' equity 218,641
159,181 Total liabilities and shareholders' equity $1,649,923
$1,352,998 Net interest income $19,378 $15,200 Net interest
spread(B) 4.83% 4.82% Net interest margin(C) 5.64% 5.35% (A) Yields
on tax-exempt securities are calculated on a fully taxable
equivalent basis assuming a 35% tax rate. (B) Represents the
average rate earned on interest-earning assets less the average
rate paid on interest-bearing liabilities. (C) Represents net
interest income on a fully taxable equivalent basis as a percentage
of average interest-earning assets. State National Bancshares, Inc.
Yield Analysis (Dollars in thousands) Six Month Period Ended June
30, 2006 June 30, 2005 Interest Interest Average Income/ Yield/
Average Income/ Yield/ Balance Expenses Rate(A) Balance Expense
Rate(A) (Unaudited) Assets: Interest earnings assets: Total loans
$1,090,394 $43,015 7.89% $956,056 $32,791 6.86% Securities 227,907
5,192 4.56% 144,107 2,851 3.96% Time deposits in other banks 24,712
537 4.35% 9,415 110 2.34% Federal funds sold 30,902 705 4.56%
21,060 284 2.70% Total interest- earnings assets 1,373,915 49,449
7.20% 1,130,638 36,036 6.37% Noninterest- earning assets: Cash and
due from banks 68,755 61,080 Intangible assets 116,894 85,423
Premises and equipment, net 50,474 34,464 Accrued interest
receivable and other assets 52,730 45,993 Allowance for loan losses
(13,058) (11,453) Total noninterest- earning assets 275,795 215,507
Total assets $1,649,710 $1,346,145 Liabilities and shareholders'
equity: Interest-bearing liabilities: Demand, savings and money
market deposits $520,896 3,365 1.29% $445,009 1,664 0.75% Time
deposits 340,311 5,481 3.22% 276,630 2,741 1.98% Fed funds
purchased and securities sold under agreement to repurchase 32,777
671 4.09% 19,444 209 2.15% Subordinated notes payable 47,000 1,952
8.31% 47,000 1,482 6.31% Note payable 2,724 74 5.43% 865 21 4.86%
Total interest-bearing liabilities 943,708 11,543 2.45% 788,948
6,117 1.55% Noninterest-bearing liabilities: Demand deposits
476,319 392,854 Accrued interest payable and other liabilities
12,364 8,110 Total noninterest- bearing liabilities 488,683 400,964
Total liabilities 1,432,391 1,189,912 Minority interest in
consolidated subsidiary 632 --- Shareholders' equity 216,687
156,233 Total liabilities and shareholders' equity $1,649,710
$1,346,145 Net interest income $37,906 $29,919 Net interest
spread(B) 4.75% 4.82% Net interest margin(C) 5.52% 5.29% (A) Yields
on tax-exempt securities are calculated on a fully taxable
equivalent basis assuming a 35% tax rate. (B) Represents the
average rate earned on interest-earning assets less the average
rate paid on interest-bearing liabilities. (C) Represents net
interest income on a fully taxable equivalent basis as a percentage
of average interest-earning assets. Cash Earnings Per Share Our
balance sheet has a significant amount of intangible assets and a
corresponding amount of intangible amortization, creating a wide
margin between GAAP and Cash (GAAP EPS plus tax effected intangible
amortization expense per share) EPS. Cash EPS is a good indicator
of the increase in tangible book value per share net of any
dividends paid. Therefore, we believe Cash EPS is a very important
performance measurement for our company. Below is a table
reconciling GAAP EPS to Cash EPS for the quarters and the six
months ended June 30, 2006 and June 30, 2005. Three Months Ended
Six Months Ended June 30, June 30, 2006 2005 2006 2005 (Unaudited)
(Unaudited) GAAP EPS fully diluted $0.37 $0.37 $0.75 $0.71
Intangible amortization expense per share tax effected 0.05 0.05
0.11 0.10 Cash EPS fully diluted $0.42 $0.42 $0.86 $0.81
DATASOURCE: State National Bancshares, Inc. CONTACT: Tom C.
Nichols, Chairman, President and Chief Executive Officer, or Don E.
Cosby, Executive Vice President and Chief Financial Officer, both
of State National Bancshares, Inc., +1-817-547-1150, or fax,
+1-817-547-1159 Web site: http://www.statenationalbank.com/
Copyright
State National Bancshares (NASDAQ:SNBI)
Historical Stock Chart
From May 2024 to Jun 2024
State National Bancshares (NASDAQ:SNBI)
Historical Stock Chart
From Jun 2023 to Jun 2024