SNBT Snb Bancshares (Texas) (MM)

SNB Bancshares, Inc. Announces Strong Results for Fourth Quarter and Year * Net Earnings for the Fourth Quarter up 89.2% to $1.5 million SUGAR LAND, Texas, Jan. 27 /PRNewswire-FirstCall/ -- SNB Bancshares, Inc. (NASDAQ:SNBT), a Sugar Land bank holding company with assets of $1.1 billion, and the parent company of Southern National Bank of Texas, a community- oriented, independent bank with offices in both Harris and Fort Bend Counties, today reported strong growth both in net earnings and in assets for the fourth quarter and the year ended December 31, 2004. Net earnings for the quarter were $1.5 million or $0.12 per diluted share, an increase of $712 thousand or 89.2%, compared with $799 thousand or $0.11 per diluted share for the fourth quarter of 2003. The slight increase in diluted earnings per share for the fourth quarter of 2004 compared with the same period in 2003, notwithstanding the significant increase in net earnings, is due to the 5,436,364 shares of common stock issued in connection with our Initial Public Offering in August 2004. Net earnings for the year ended December 31, 2004 were $6.0 million or $0.66 per diluted share, an increase of $2.6 million or 75.7%, compared with $3.4 million or $0.48 per diluted share for 2003. "The fourth quarter of 2004 represented our first full quarter as a publicly-traded company," said Harvey E. Zinn, President and Chief Executive Officer. "During August 2004 we completed our successful Initial Public Offering, which added $52.2 million to our capital, and we remain excited about our future as a publicly-traded company. Our shareholders' equity at December 31, 2004 was $86.5 million compared to $30.8 million at December 31, 2003, an increase of 181.0%." Continued Mr. Zinn, "We are pleased with our earnings growth, both for the fourth quarter of 2004 and for the year, compared with the same periods a year ago. We continue to seek quality loan growth which has resulted in a 39.0% increase in average loans for the fourth quarter, compared with the fourth quarter of 2003. Notwithstanding our earnings growth in 2004, our earnings are expected to be negatively impacted by generally rising interest rates, principally due to our continued liability sensitive position. In addition, we expect to incur increased expenses related to compliance with the Sarbanes- Oxley internal control system requirements that become effective this year. Consequently, management has established an initial earnings estimate for the full year 2005 of $0.43 to $0.46 per diluted share. Also, during 2005, our EPS will continue to be affected by the increased shares outstanding as a result of our IPO completed during August, 2004. For 2004, we had 8,899,465 total weighted average shares outstanding. During 2005, we anticipate that we will have approximately 12,432,653 total weighted average shares outstanding, or approximately 39.7% more shares, assuming no option exercises, stock issuances or stock repurchases." Said Zinn, "During 2004, and specifically since June 30th, the Federal Reserve raised the benchmark Fed funds rate five times, each a quarter-point increase, taking the Fed funds rate from 1.00% to 2.25% by year end. Because we are liability sensitive, we have more liabilities subject to such increases than we do interest-earning assets. We are pleased with our management of our net interest margin ("NIM") during this time, which saw us record a NIM of 2.85% for the year ended December 31, 2004 compared with 3.07% for the year ended December 31, 2003. For the fourth quarter of 2004, our NIM was 2.94%, up 0.13% compared with 2.81% for the fourth quarter of 2003. Comparing our NIM for the linked third quarter of 2004, we saw an increase of 0.09%, with the fourth quarter 2004 NIM of 2.94%, compared to the third quarter 2004 NIM of 2.85%. However, we anticipate that we will experience more pressure on our net interest income and on our NIM during 2005 if the Federal Reserve continues its plan of measured increases." Lisa Simon, Chairman of the Board, added, "Our strong equity position will allow us to expand our market area, and we took our first step in that direction by opening a de novo branch in Katy, Texas on October 12, 2004. We remain focused on our intermediate and long-term strategies of increasing our market area, increasing core deposits and changing the mix of our interest- earning assets by increasing our loan portfolio as a percentage of earning assets." FOURTH QUARTER RESULTS Net earnings for the fourth quarter of 2004 were $1.5 million compared with $799 thousand for the same quarter of 2003, an increase of $712 thousand or 89.2%. The increase was primarily due to a $2.3 million increase in net interest income, partially offset by a $1.3 million increase in non-interest expense. Net earnings were $0.12 per diluted share compared with $0.11 per diluted share for the fourth quarter of 2003. We posted returns on average assets of 0.54% and 0.37% for the fourth quarters ended December 31, 2004 and 2003, respectively. Returns on average equity were 6.91% and 10.49% for the fourth quarters ended December 31, 2004 and 2003, respectively. Net Interest Income Net interest income for the fourth quarter of 2004 increased $2.3 million or 39.4% to $8.0 million, compared with $5.7 million for the same period in 2003. The increase was primarily due to a 33.4% increase in average earning assets, partially offset by the combined effect of a 27.6% increase in interest-bearing liabilities and a 0.28% increase in weighted average rates on interest-bearing liabilities from 2.00% for the three months ended December 31, 2003 to 2.28% for the three months ended December 31, 2004. The average balance of interest-earning assets increased $270.0 million from the quarter ended December 31, 2003 compared with the same period in 2004, while the average yield increased 0.28% to 4.82% from 4.54%. The average balance of interest-bearing liabilities increased $199.5 million for the three months ended December 31, 2004, compared with the same period in 2003. Our net interest margin on a tax equivalent basis increased 0.13% to 2.94% for the quarter ended December 31, 2004, compared with 2.81% for the same period in 2003. Non-interest Expense Non-interest expense for the fourth quarter of 2004 was $5.4 million compared with $4.1 million for the fourth quarter of 2003, an increase of $1.3 million, or 30.3%. This $1.3 million increase in non-interest expense was principally the result of a $545 thousand increase in other real estate expenses and a $491 thousand increase in salaries and employee benefits due primarily to increased staffing. Of the $545 thousand increase in other real estate expenses, approximately $535 thousand related to valuation adjustments to the carrying value of the related properties. The book value of ORE, as a result of these value write-downs as well as sales of ORE, was $895 thousand at December 31, 2004, compared with $2.2 million at September 30, 2004. RESULTS FOR YEAR ENDED DECEMBER 31, 2004 Net earnings for the year ended December 31, 2004 were $6.0 million, an increase of $2.6 million or 75.7%, compared with $3.4 million for the year ended December 31, 2003, primarily due to a $7.5 million increase in net interest income, partially offset by a $3.3 million increase in non-interest expense, and a $1.3 million increase in the provision for Federal income taxes. Diluted earnings per share for the year ended December 31, 2004 were $0.66, compared with $0.48 per share for the same period in 2003. We posted returns on average assets of 0.58% and 0.47% for the years ended December 31, 2004 and 2003, respectively. Returns on average equity were 11.97% and 11.13% for the years ended December 31, 2004 and 2003, respectively. Net Interest Income For the year ended December 31, 2004, net interest income increased $7.5 million to $28.7 million compared with $21.2 million for the year ended December 31, 2003. This increase is primarily due to a $316.7 million increase in average earning assets, partially offset by a $282.0 million increase in interest-bearing liabilities. The average yield of interest- earning assets for the year ended December 31, 2004, decreased 0.18% to 4.57% from 4.75%. The average rate of interest-bearing liabilities for the year ended December 31, 2004, compared with the same period in 2003, increased 0.04% to 2.04% from 2.00%. Our net interest margin on a tax equivalent basis decreased 0.22% to 2.85% for the year ended December 31, 2004 from 3.07% for the year 2003. Non-interest Income For the year ended December 31, 2004, non-interest income decreased to $2.1 million compared with $2.3 million for the year 2003, primarily due to a $180 thousand decrease in the net gains on sales of securities. Non-interest Expense Non-interest expense for the year ended December 31, 2004 was $18.7 million compared with $15.5 million for the year ended December 31, 2003, an increase of $3.2 million or 21.0%, primarily due to an increase of $2.0 million in salaries and employee benefits and a $904 thousand increase in other non-interest expense. Approximately $724 thousand of the $904 thousand increase in other non-interest expense was related to other real estate expenses, including $116 thousand in property taxes and $535 thousand in valuation expense related to the carrying value of the properties. ASSET QUALITY Nonperforming assets as of December 31, 2004 were $4.4 million, a decrease compared with $4.6 million at December 31, 2003, and down from $6.4 million at September 30, 2004. As a percentage of total loans and other real estate owned, nonperforming assets were 0.73% as of December 31, 2004, down from 1.07% as of December 31, 2003 and from 1.15% as of September 30, 2004. For the year ended December 31, 2004, we recorded a provision for loan losses of $3.0 million compared with $2.8 million for the year 2003. The increase in the provision was due primarily to the increase in the size of the loan portfolio. At December 31, 2004, the allowance for loan losses as a percentage of total loans was 1.36% compared with 1.33% at December 31, 2003. Net charge-offs for the year ended December 31, 2004 totaled $479 thousand, compared with $1.2 million for the same period in 2003. THE COMPANY SNB Bancshares, Inc. (the "Company") is a bank holding company headquartered approximately 15 miles southwest of downtown Houston in Sugar Land, Texas, the largest city in fast growing Fort Bend County. The Company, with total assets of $1.1 billion, total loans of $598.7 million, total deposits of $868.4 million and total shareholders' equity of $86.5 million, as of December 31, 2004, has four full-service branches in Harris and Fort Bend Counties. CONFERENCE CALL In conjunction with SNB Bancshares, Inc.'s (SNBT) Fourth Quarter Earnings Release, scheduled after the market closes on Thursday, January 27, 2005, management will host a conference call for analysts and investors at 10:30 a.m., Eastern Time (9:30 a.m., Central Time) on Friday, January 28, 2005. Interested parties may participate by calling (800) 798-2864 and entering the access code 49622179. The conference call will also be available via the Internet by accessing the Investor Relations section of the Company's website http://www.snbtx.com/ . An audio archive of the call will be available at the same website address beginning on January 28, 2005. Notice under the Private Securities Litigation Reform Act of 1995 Except for historical information contained herein, this press release may constitute forward-looking statements for the purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such, may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Act of 1995, and is including this statement for purposes of said safe harbor provisions. The Company's actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation, the following: (a) the effects of future economic and business conditions on the Company and our customers; (b) changes in governmental legislation and regulations; (c) the risks of changes in interest rates; (d) competition from other banks and financial institutions for customer deposits and loans; (e) the failure of assumptions underlying the establishment of reserves for loan losses; (f) changes in the levels of loan prepayments and the resulting effects on the value of the Company's loan portfolio; (g) the failure of assumptions underlying the establishment of and provisions made to the allowance for loan losses; (h) the effect of changes in accounting policies and practices which may be adopted by regulatory agencies and/or the Financial Accounting Standards Board; (i) technological changes; (j) acquisition and integration of acquired businesses; (k) the loss of senior management or operating personnel and the potential inability to hire qualified personnel at reasonable compensation levels; (l) acts of terrorism; and (m) other risks and uncertainties listed from time to time in the Company's reports filed with the Securities and Exchange Commission. Contacts: R. Darrell Brewer, CFO (281) 269-7271 Whitney Rowe, Investor Relations & Corp. Secretary (281) 269-7220 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) For the Three Months Ended December 31, 2004 2003 % chg EARNINGS SUMMARY: Net earnings $1,511 $799 89.2% Basic earnings per share 0.12 0.11 9.1% Diluted earnings per share 0.12 0.11 9.1% Weighted average shares outstanding: Common stock 9,752,284 3,710,023 162.9% Class B stock 2,679,498 3,283,966 (18.4%) Total 12,431,782 6,993,989 77.7% Shares outstanding at end of period: Common stock 9,753,612 3,735,523 161.1% Class B stock 2,679,041 3,258,466 (17.8%) Total 12,432,653 6,993,989 77.8% EARNINGS STATEMENT DATA: Interest income: Loans $9,161 6,371 43.8% Securities: Taxable 3,992 2,977 34.1% Nontaxable 111 22 398.6% Federal funds sold and earning deposits 19 7 167.8% Total interest income 13,283 9,377 41.7% Interest expense: Demand deposits 1,323 720 83.7% Certificates and other time deposits 2,333 2,159 8.1% Other borrowings 1,639 769 113.2% Total interest expense 5,295 3,648 45.1% Net interest income 7,988 5,729 39.4% Provision for loan losses 675 720 (6.3%) Net interest income after provision 7,313 5,009 46.0% Noninterest income: Service charges on deposit accounts 163 199 (18.4%) Gain on sale of securities-net 0 0 0.0% Other 182 133 37.2% Total noninterest income 345 332 3.8% Noninterest Expense: Salaries and employee benefits 2,980 2,489 19.7% Net occupancy expense 470 464 1.2% Data processing 377 292 29.4% Legal and professional fees 205 151 35.1% FDIC deposit insurance premium 31 22 39.6% Other 1,317 712 85.1% Total noninterest expense 5,380 4,130 30.3% Earnings before income taxes 2,278 1,211 88.1% Provision for income taxes 767 412 86.3% Net earnings $1,511 799 89.2% For the Year Ended December 31, 2004 2003 % chg EARNINGS SUMMARY: Net earnings $6,005 $3,417 75.7% Basic earnings per share 0.67 0.49 38.1% Diluted earnings per share 0.66 0.48 37.5% Weighted average shares outstanding: Common stock 5,999,150 3,707,911 61.8% Class B stock 2,900,315 3,286,078 (11.7%) Total 8,899,465 6,993,989 27.2% Shares outstanding at end of period: Common stock 9,753,612 3,735,523 161.1% Class B stock 2,679,041 3,258,466 (17.8%) Total 12,432,653 6,993,989 77.8% EARNINGS STATEMENT DATA: Interest income: Loans 30,778 24,200 27.2% Securities: Taxable 15,527 8,904 74.4% Nontaxable 202 96 111.0% Federal funds sold and earning deposits 154 38 301.1% Total interest income 46,661 33,238 40.4% Interest expense: Demand deposits 4,514 2,757 63.7% Certificates and other time deposits 9,041 6,753 33.9% Other borrowings 4,451 2,549 74.6% Total interest expense 18,006 12,059 49.3% Net interest income 28,655 21,179 35.3% Provision for loan losses 2,950 2,821 4.6% Net interest income after provision 25,705 18,358 40.0% Noninterest income: Service charges on deposit accounts 786 873 (10.0%) Gain on sale of securities-net 700 880 (20.4%) Other 634 556 14.0% Total noninterest income 2,120 2,309 (8.2%) Noninterest Expense: Salaries and employee benefits 11,365 9,328 21.8% Net occupancy expense 1,820 1,679 8.4% Data processing 1,218 1,163 4.7% Legal and professional fees 653 571 14.3% FDIC deposit insurance premium 115 83 37.4% Other 3,569 2,665 33.9% Total noninterest expense 18,740 15,489 21.0% Earnings before income taxes 9,085 5,178 75.4% Provision for income taxes 3,080 1,761 74.9% Net earnings 6,005 3,417 75.7% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) 4Q 3Q 2Q 2004 2004 2004 EARNINGS STATEMENT DATA: Interest income: Loans $9,161 $8,031 $7,085 Securities: Taxable 3,992 4,184 4,030 Nontaxable 111 50 19 Federal Funds Sold 19 14 22 Total interest income 13,283 12,279 11,156 Interest expense: Demand deposits 1,323 1,215 1,025 Certificates and other time deposits 2,333 2,179 2,336 Other borrowings 1,639 1,319 827 Total interest expense 5,295 4,713 4,188 Net interest income 7,988 7,566 6,968 Provision for loan losses 675 625 900 Net interest income after provision 7,313 6,941 6,068 Noninterest income: Service charges on deposit accounts 163 193 193 Gain on sale of securities-net 0 197 144 Other 182 153 151 Total noninterest income 345 543 488 Noninterest Expense: Salaries and employee benefits 2,980 2,944 2,757 Net occupancy expense 470 483 428 Data processing 377 284 271 Legal and professional fees 205 158 153 FDIC deposit insurance premium 31 31 28 Other 1,317 831 773 Total noninterest expense 5,380 4,731 4,410 Income before income taxes 2,278 2,753 2,146 Provision for income taxes 767 935 729 Net income $1,511 $1,818 $1,417 Basic EPS $0.12 0.20 0.20 Diluted EPS $0.12 0.19 0.20 Weighted average shares outstanding: Common stock 9,752,284 6,456,156 3,974,575 Class B stock 2,679,498 2,680,521 3,019,414 Total 12,431,782 9,136,677 6,993,989 1Q 4Q 2004 2003 EARNINGS STATEMENT DATA: Interest income: Loans $6,501 $6,371 Securities: Taxable 3,321 2,977 Nontaxable 22 22 Federal Funds Sold 99 7 Total interest income 9,943 9,377 Interest expense: Demand deposits 951 720 Certificates and other time deposits 2,193 2,159 Other borrowings 666 769 Total interest expense 3,810 3,648 Net interest income 6,133 5,729 Provision for loan losses 750 720 Net interest income after provision 5,383 5,009 Noninterest income: Service charges on deposit accounts 237 199 Gain on sale of securities-net 359 0 Other 148 133 Total noninterest income 744 332 Noninterest Expense: Salaries and employee benefits 2,684 2,489 Net occupancy expense 439 464 Data processing 286 292 Legal and professional fees 137 151 FDIC deposit insurance premium 25 22 Other 648 712 Total noninterest expense 4,219 4,130 Income before income taxes 1,908 1,211 Provision for income taxes 649 412 Net income $1,259 $799 Basic EPS 0.18 0.11 Diluted EPS 0.17 0.11 Weighted average shares outstanding: Common stock 3,767,320 3,710,023 Class B stock 3,226,669 3,283,966 Total 6,993,989 6,993,989 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) Unaudited) Q4 Q4 2004 2003 % chg BALANCE SHEET AVERAGES: Loans $579,459 $417,004 39.0% Allowance for loan losses (7,748) (5,611) 38.1% Loans, net 571,711 411,393 39.0% Investment securities 496,204 389,132 27.5% Federal funds sold 1,496 1,518 (1.4%) Interest-earning deposits in other financial institutions 1,849 1,325 39.5% Cash and due from banks 16,316 22,405 (27.2%) Premises and equipment 15,453 12,776 21.0% Accrued interest receivable and other assets 14,328 9,020 58.8% Total assets $1,117,357 $847,569 31.8% Demand deposits $103,502 $90,916 13.8% NOW, savings, and money market accounts 325,857 254,539 28.0% Time deposits 351,178 344,652 1.9% Total deposits 780,537 690,107 13.1% Other borrowed funds 207,593 85,970 141.5% Notes payable to bank --- --- 0.0% Junior subordinated debentures 38,250 38,250 0.0% Accrued interest payable and other liabilities 3,977 2,997 32.7% Total liabilities 1,030,357 817,324 26.1% Shareholders' equity 87,000 30,245 187.7% Total liabilities and shareholders' equity $1,117,357 $847,569 31.8% Year Ended December 31, 2004 2003 % chg BALANCE SHEET AVERAGES: Loans $509,142 $383,844 32.6% Allowance for loan losses (6,868) (4,788) 43.4% Loans, net 502,274 379,056 32.5% Investment securities 482,626 302,590 59.5% Federal funds sold 8,945 1,058 745.5% Interest-earning deposits in other financial institutions 5,830 2,387 144.2% Cash and due from banks 15,533 26,543 (41.5%) Premises and equipment 13,466 11,784 14.3% Accrued interest receivable and other assets 13,275 6,834 94.2% Total assets $1,041,949 $730,252 42.7% Demand deposits $104,725 $95,080 10.1% NOW, savings, and money market accounts 334,865 236,022 41.9% Time deposits 368,015 259,968 41.6% Total deposits 807,605 591,070 36.6% Other borrowed funds 142,498 78,063 82.5% Notes payable to bank --- 1,651 (100.0%) Junior subordinated debentures 38,250 25,934 47.5% Accrued interest payable and other liabilities 3,440 2,825 21.8% Total liabilities 991,793 699,543 41.8% Shareholders' equity 50,156 30,709 63.3% Total liabilities and shareholders' equity $1,041,949 $730,252 42.7% December 31, 2004 2003 % chg PERIOD END BALANCES: Loans $598,717 $424,479 41.0% Allowance for loan losses (8,121) (5,650) 43.7% Loans, net 590,596 418,829 41.0% Investment securities 488,523 412,620 18.4% Federal funds sold --- 3,195 (100.0%) Interest-earning deposits in other financial institutions 441 501 (12.0%) Cash and due from banks 20,794 27,427 (24.2%) Premises and equipment 16,137 12,691 27.2% Accrued interest receivable and other assets 13,566 8,578 58.1% Total assets $1,130,057 $883,841 27.9% Demand deposits $110,858 $101,749 9.0% NOW, savings, and money market accounts 398,051 295,389 34.8% Time deposits 359,477 336,833 6.7% Total deposits 868,386 733,971 18.3% Other borrowed funds 132,900 77,800 70.8% Junior subordinated debentures 38,250 38,250 0.0% Accrued interest payable and other liabilities 4,062 3,053 33.0% Total liabilities 1,043,598 853,074 22.3% Shareholders' equity 86,459 30,767 181.0% Total liabilities and shareholders' equity $1,130,057 $883,841 27.9% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) 4Q 3Q 2Q 2004 2004 2004 QUARTERLY AVERAGE BALANCE SHEET HISTORY: Loans $579,459 $533,607 $486,394 Allowance for loan losses (7,748) (7,258) (6,501) Loans, net 571,711 526,349 479,893 Investment securities 496,204 517,041 504,454 Federal funds sold 1,496 816 8,371 Interest-earning deposits in other financial institutions 1,849 2,985 956 Cash and due from banks 16,316 13,116 14,348 Premises and equipment 15,453 13,061 12,661 Accrued interest receivable and other assets 14,328 15,542 13,479 Total assets $1,117,357 $1,088,910 $1,034,162 Demand deposits $103,502 $111,968 $104,646 NOW, savings, and money market accounts 325,857 334,347 342,693 Time deposits 351,178 351,116 404,545 Total deposits 780,537 797,431 851,884 Other borrowed funds 207,593 199,093 110,287 Junior subordinated debentures 38,250 38,250 38,250 Accrued interest payable and other liabilities 3,977 3,536 3,423 Total liabilities 1,030,357 1,038,310 1,003,844 Shareholders' equity 87,000 50,600 30,318 Total liabilities and shareholders' equity $1,117,357 $1,088,910 $1,034,162 PERIOD END BALANCES HISTORY: Loans $598,717 $553,185 $512,416 Allowance for loan losses (8,121) (7,473) (6,929) Loans, net 590,596 545,712 505,487 Investment securities 488,523 503,584 533,477 Federal funds sold 0 1,735 6,100 Interest-earning deposits in other financial institutions 441 2,179 91 Cash and due from banks 20,794 13,692 17,292 Premises and equipment 16,137 13,837 12,825 Accrued interest receivable and other assets 13,566 13,797 16,624 Total assets $1,130,057 $1,094,536 $1,091,896 Demand deposits $110,858 $103,007 $114,401 NOW, savings, and money market accounts 398,051 356,036 362,283 Time deposits 359,477 356,154 379,572 Total deposits 868,386 815,197 856,256 Other borrowed funds 132,900 151,500 168,500 Junior subordinated debentures 38,250 38,250 38,250 Accrued interest payable and other liabilities 4,062 3,536 3,101 Total liabilities 1,043,598 1,008,483 1,066,107 Shareholders' equity 86,459 86,053 25,789 Total liabilities and shareholders' equity $1,130,057 $1,094,536 $1,091,896 1Q 4Q 2004 2003 QUARTERLY AVERAGE BALANCE SHEET HISTORY: Loans $436,066 $417,004 Allowance for loan losses (5,949) (5,611) Loans, net 430,117 411,393 Investment securities 412,277 389,132 Federal funds sold 25,269 1,518 Interest-earning deposits in other financial institutions 17,607 1,325 Cash and due from banks 18,366 22,405 Premises and equipment 12,672 12,776 Accrued interest receivable and other assets 9,713 9,020 Total assets $926,021 $847,569 Demand deposits $98,717 $90,916 NOW, savings, and money market accounts 336,670 254,539 Time deposits 365,592 344,652 Total deposits 800,979 690,107 Other borrowed funds 51,683 85,970 Junior subordinated debentures 38,250 38,250 Accrued interest payable and other liabilities 2,816 2,997 Total liabilities 893,728 817,324 Shareholders' equity 32,293 30,245 Total liabilities and shareholders' equity $926,021 $847,569 PERIOD END BALANCES HISTORY: Loans $460,872 $424,479 Allowance for loan losses (6,181) (5,650) Loans, net 454,691 418,829 Investment securities 448,373 412,620 Federal funds sold 28,200 3,195 Interest-earning deposits in other financial institutions 339 501 Cash and due from banks 21,151 27,427 Premises and equipment 12,628 12,691 Accrued interest receivable and other assets 9,765 8,578 Total assets $975,147 $883,841 Demand deposits $112,404 $101,749 NOW, savings, and money market accounts 328,232 295,389 Time deposits 403,267 336,833 Total deposits 843,903 733,971 Other borrowed funds 55,500 77,800 Junior subordinated debentures 38,250 38,250 Accrued interest payable and other liabilities 3,118 3,053 Total liabilities 940,771 853,074 Shareholders' equity 34,376 30,767 Total liabilities and shareholders' equity $975,147 $883,841 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) YIELD ANALYSIS: For the Three Months Ended December 31, 2004 2003 Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Assets: Interest-earning assets: Loans $579,459 $9,161 6.19% $417,004 $6,371 5.98% Investment Securities 496,204 4,103 3.35 389,132 2,999 3.08 Federal funds sold 1,496 7 1.94 1,518 3 0.88 Interest-earning deposits in other financial institutions 1,849 12 2.60 1,325 4 1.05 Total interest- earning assets 1,079,008 13,283 4.82% 808,979 9,377 4.54% Less allowance for loan losses (7,748) (5,611) Total interest- earning assets, net of allowance 1,071,260 803,368 Non-earning assets: Cash and due from banks 16,316 22,405 Premises and equipment 15,453 12,776 Accrued interest receivable and other assets 14,328 9,020 Total non-earning assets 46,097 44,201 Total assets $1,117,357 $847,569 Liabilities and Shareholders' Equity: Interest-bearing liabilities: NOW, savings, and money market accounts $325,857 $1,323 1.62% $254,539 $720 1.12% Time deposits 351,178 2,333 2.64 344,652 2,159 2.49 Other borrowed funds 207,593 1,047 2.01 85,970 241 1.12 Junior subordinated debentures 38,250 592 6.05 38,250 528 5.40 Total interest- bearing liabilities 922,878 5,295 2.28% 723,411 3,648 2.00% Noninterest-bearing liabilities: Demand deposits 103,502 90,916 Accrued interest payable and other liabilities 3,977 2,997 Total noninterest- bearing liabilities 107,479 93,913 Total liabilities 1,030,357 817,324 Shareholders' equity 87,000 30,245 Total liabilities and shareholders' equity $1,117,357 $847,569 Net interest income $7,988 $5,729 Net interest spread 2.53% 2.53% Net interest margin 2.94% 2.81% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) RATE VOLUME ANALYSIS: For the Three Months Ended December 31, 2004 Compared with the Same Period in 2003 Q4 Q4 Increase 2004 2003 (Decrease) Interest-earning assets: Loans $9,161 $6,371 $2,790 Securities 4,103 2,999 1,104 Federal funds sold 7 3 4 Interest-bearing deposits in other financial institutions 12 4 8 Interest income 13,283 9,377 3,906 Interest-bearing liabilities: NOW, savings and money market accounts 1,323 720 603 Time deposits 2,333 2,159 174 Other borrowed funds 1,047 241 806 Junior subordinated deferrable interest debentures 592 528 64 Interest expense 5,295 3,648 1,647 Net interest income $7,988 $5,729 $2,259 RATE VOLUME ANALYSIS: For the Three Months Ended December 31, 2004 Compared with the Same Period in 2003 Increase (Decrease) Due to Change in Volume Rate Total Interest-earning assets: Loans $2,441 $349 $2,790 Securities 830 274 1,104 Federal funds sold --- 4 4 Interest-bearing deposits in other financial institutions 1 7 8 Interest income 3,272 634 3,906 Interest-bearing liabilities: NOW, savings and money market accounts 200 403 603 Time deposits 41 133 174 Other borrowed funds 342 464 806 Junior subordinated deferrable interest debentures --- 64 64 Interest expense 583 1,064 1,647 Net interest income $2,689 $(430) $2,259 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) YIELD ANALYSIS: For the Years Ended December 31, 2004 2003 Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Assets: Interest-earning assets: Loans $509,142 $30,778 5.95% $383,844 $24,200 6.22% Investment Securities 482,626 15,729 3.28 302,590 9,000 2.97 Federal funds sold 8,945 87 0.96 1,058 11 1.03 Interest-earning deposits in other financial institutions 5,830 67 1.13 2,387 27 1.12 Total interest- earning assets 1,006,543 46,661 4.57% 689,879 33,238 4.75% Less allowance for loan losses (6,868) (4,788) Total interest- earning assets, net of allowance 999,675 685,091 Non-earning assets: Cash and due from banks 15,533 26,543 Premises and equipment 13,466 11,784 Accrued interest receivable and other assets 13,275 6,834 Total non-earning assets 42,274 45,161 Total assets $1,041,949 $730,252 Liabilities and Shareholders' Equity: Interest-bearing liabilities: NOW, savings, and money market accounts $334,865 $4,514 1.35% $236,022 $2,757 1.17% Time deposits 368,015 9,041 2.46 259,968 6,753 2.60 Other borrowed funds 142,498 2,256 1.56 78,063 941 1.19 Notes payable to bank 0 0 0.00 1,651 53 3.21 Junior subordinated debentures 38,250 2,195 5.64 25,934 1,555 6.00 Total interest- bearing liabilities 883,628 18,006 2.04% 601,639 12,059 2.00% Noninterest-bearing liabilities: Demand deposits 104,725 95,080 Accrued interest payable and other liabilities 3,440 2,825 Total noninterest- bearing liabilities 108,165 97,905 Total liabilities 991,793 699,543 Shareholders' equity 50,156 30,709 Total liabilities and shareholders' equity $1,041,949 $730,252 Net interest income $28,655 $21,179 Net interest spread 2.53% 2.75% Net interest margin 2.85% 3.07% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) RATE VOLUME ANALYSIS: For the Year Ended December 31, 2004 Compared with the Same Period in 2003 Increase (Decrease) Increase Due to Change in 2004 2003 (Decrease) Volume Rate Total Interest-earning assets: Loans $30,778 $24,200 $6,578 7,792 (1,214) $6,578 Securities 15,729 9,000 6,729 5,355 1,374 6,729 Federal funds sold 87 11 76 79 (3) 76 Interest-bearing deposits in other financial institutions 67 27 40 40 --- 40 Interest income 46,661 33,238 13,423 13,266 157 13,423 Interest-bearing liabilities: NOW, savings and money market accounts 4,514 2,757 1,757 1,154 603 1,757 Time deposits 9,041 6,753 2,288 2,807 (519) 2,288 Other borrowed funds 2,256 941 1,315 776 539 1,315 Notes payable to bank --- 53 (53) (53) --- (53) Junior subordinated deferrable interest debentures 2,195 1,555 640 729 (89) 640 Interest expense 18,006 12,059 5,947 5,413 534 5,947 Net interest income $28,655 $21,179 $7,476 $7,853 $(377) $7,476 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) LOAN PORTFOLIO: As of December 31, As of December 31, 2004 2003 Amount Percent Amount Percent Business and industrial $70,101 11.7% $55,218 13.0% Real estate: Construction and land development 123,655 20.7 65,628 15.5 Residential 126,200 21.1 117,593 27.7 Commercial mortgages 267,583 44.7 175,686 41.4 Consumer 12,592 2.1 11,092 2.6 Other 227 0.0 198 0.1 Gross loans 600,358 100.3 425,415 100.3 Less unearned discounts and fees (1,641) (0.3) (936) (0.3) Total loans $598,717 100.0% $424,479 100.0% NONPERFORMING ASSETS: As of As of Dec. 31, Dec. 31, 2004 2003 Nonaccrual loans $1,489 $2,496 Accruing loans past due 90 days or more 62 --- Restructured loans 1,917 2,015 Other real estate 895 40 Total nonperforming assets $4,363 $4,551 Nonperforming assets to total loans and other real estate 0.73% 1.07% ALLOWANCE FOR LOAN LOSSES: As of and for the As of and for the Three Months Ended Years Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2004 2003 2004 2003 Allowance for loan losses at beginning of period $7,473 $5,329 $5,650 $4,006 Provision for loan losses 675 720 2,950 2,821 Charge-Offs: Business and industrial 0 (95) (242) (516) Real estate (27) (362) (262) (673) Consumer (26) (13) (110) (337) Total charge-offs (53) (470) (614) (1,526) Recoveries: Business and industrial 17 2 50 185 Real estate 3 51 63 51 Consumer 6 18 22 113 Total recoveries 26 71 135 349 Net charge-offs (27) (399) (479) (1,177) Allowance for loan losses at end of period $8,121 $5,650 $8,121 $5,650 Allowance for loan losses to end of period loans 1.36% 1.33% 1.36% 1.33% Net charge-offs to average loans 0.00 0.10 0.09 0.31 Allowance for loans losses to end of period nonperforming loans 234.17 125.25 234.17 125.25 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) SELECTED RATIOS AND OTHER DATA: Q4 Q4 Year Ended 12/31 2004 2003 2004 2003 Return on average assets 0.54% 0.37% 0.58% 0.47% Return on average equity 6.91 10.49 11.97 11.13 Leverage ratio 10.88 5.09 Tier 1 Capital to RWA ratio 17.74 8.84 Total Capital (Tier 1 + Tier 2) to RWA ratio 19.87 15.35 Average equity to average total assets 7.79 3.57 4.81 4.21 Yield on earning assets 4.82 4.54 4.56 4.75 Cost of funds with demand accounts 2.05 1.78 1.82 1.73 Net interest margin 2.94 2.81 2.85 3.07 Non-interest expense to average total assets 1.89 1.71 1.73 1.65 Efficiency ratio 64.55 68.13 62.31 68.51 End of period book value per share $6.95 $4.40 Full time equivalent employees 164 149 COMMON STOCK PERFORMANCE (A): Fourth quarter For the period of 2004 08/18/04 - 12/31/04 Market value of common stock - End of period $ 14.75 $ 14.75 Market value of common stock - High 15.49 15.49 Market value of common stock - Low 11.76 10.00 As of December 31, 2004 Book value of common stock $6.95 Market/book value of common stock 212.10% Price/12 month trailing earnings ratio 22.01 X (A) The common stock began trading on the Nasdaq Stock Market National Market System on August 18, 2004. DATASOURCE: SNB Bancshares, Inc. CONTACT: R. Darrell Brewer, CFO, +1-281-269-7271, or , or Whitney Rowe, Investor Relations & Corp. Secretary, +1-281-269-7220, or , both of SNB Bancshares, Inc. Web site: http://www.snbtx.com/

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