BIRMINGHAM, Ala., Aug. 13 /PRNewswire-FirstCall/ --
HIGHLIGHTS:
- Deposits grew approximately 3.1% to a new high of $2.84 billion.
- Loans decreased slightly from the previous quarter to
$2.48 billion.
- New capital raised totaling $11.4
million. Capital optimization continues as planned.
- Net loss of $53.7 million for the
quarter, driven principally by a provision for loan losses of
$50.4 million and losses on other
real estate owned (OREO) of $3.4
million.
Superior Bancorp (Nasdaq: SUPR) today reported its second
quarter 2010 results, which included a loss for the quarter of
$53.7 million as the company expensed
$50.4 million to bring its loan loss
reserves to 3.2% of loans. A summary of the results is
provided below and in the attached financial data:
|
|
|
As of and for the Quarters
Ended
|
|
Dollars in thousands, except per
share data
|
June 30, 2010
|
March 31, 2010
|
|
Total assets
|
$3,358,335
|
$3,344,357
|
|
Total loans, net of unearned
income
|
2,482,560
|
2,505,465
|
|
Total deposits
|
2,838,521
|
2,753,378
|
|
Stockholders' equity
|
149,314
|
187,153
|
|
Net interest income
|
23,153
|
23,505
|
|
Provision for loan
losses
|
50,363
|
9,127
|
|
Loss before income
taxes
|
(50,215)
|
(9,219)
|
|
Income tax expense
(benefit) (1)
|
3,507
|
(3,479)
|
|
Net loss
|
(53,722)
|
(5,740)
|
|
Net loss applicable to common
stockholders
|
(54,621)
|
(5,740)
|
|
Net loss per common
share
|
(4.44)
|
(0.49)
|
|
Total branches
|
73
|
73
|
|
(1) – Reflects the effect of
recording a valuation allowance against our deferred tax
assets.
|
|
|
|
|
|
|
Comments on our Second Quarter Performance
Stan Bailey, Chairman & CEO,
stated, "Superior's second quarter results reflect the continued
challenge presented by the current credit environment. After
our $50 million second quarter
provision for loan losses, our new reserve level is 3.20% of loans
and stands at 2.4X our last 12 months' level of chargeoffs.
Regardless, our capital plus reserves at quarter-end were
$229 million versus $230 million at March
31. Our top priority remains the completion of our
capital optimization plan during 2010, while we continue to focus
on credit quality improvement and a return to profitability during
2011."
Capital Optimization Plan
In late 2009, our shareholders approved an increase in
authorized shares to 200 million, a preparatory step in our program
to build our equity base. In December
2009, we retired the entire outstanding $69.0 million principal amount of TARP Preferred
Stock in exchange for a like amount of newly issued Trust Preferred
Securities, which resulted in a $23.1
million accounting gain, resulting in an increase to
tangible common equity. As noted above, however, this
conversion also had a 0.22% negative net interest margin impact in
the second quarter due to interest expense on the Trust Preferred
Securities.
During the second quarter, we issued $11.4 million of cumulative mandatory convertible
preferred stock for cash, at par. At the same time, we issued
the purchaser five-year warrants to purchase 814,288 shares of our
common stock at an exercise price of $3.50 per share. In addition, we exchanged
$3.5 million of privately held Trust
Preferred Securities for common stock and recognized an after-tax
gain of $0.5 million in connection
with this transaction.
Comparison of Second Quarter 2010 with First Quarter
2010
Net interest income declined slightly, from $23.5 million to $23.2 million. Our net
interest margin declined from 3.19% to 3.02%. Several factors
contributed to this decline, including our maintenance of
significantly higher levels of lower yielding short-term
investments increased for liquidity purposes, lower yields on our
overall investment portfolio, the negative impact of an increase in
non-accrual loans, and a higher volume of interest-bearing
deposits. We lowered the yield on our investment portfolio
through a restructuring which reduced our interest rate risk and
improved our risk-based capital. The effect on net interest margin
of loans being placed on non-accrual status approximated 0.19% in
the second quarter of 2010. The total impact of non-accruals,
including foregone interest, was approximately 0.57%. We
estimate that the cost of excess liquidity maintained in the second
quarter was approximately 0.04%. The conversion of preferred
stock issued to the US Treasury under the Capital Purchase Program
to Trust Preferred Stock, which had the effect of converting
dividend payments into interest expense, lowered the net interest
margin by 0.22%. This additional interest expense will
continue to hold down our net interest margin until the Treasury
obligation is repaid. Deposit costs continued to decline, following
the favorable trend demonstrated throughout the past several
quarters.
Core noninterest income was $6.9
million for the quarter, and increased $0.7 million, or 11.4%, from the first quarter,
after adjusting both quarters to eliminate investment securities
gains and losses and derivatives transactions. Mortgage
banking income increased $0.7 million to
$2.7 million in the second quarter, as the result of the
expansion of our mortgage operations. In addition, we
recognized a $0.5 million gain on the
exchange of trust preferred debt for common stock. Both of
these items are discussed in more detail below.
Core noninterest expense increased $0.5
million from the first quarter to $26.3 million after eliminating credit costs for
other real estate owned and FDIC insurance costs from both
quarters.
We also recorded a $22.0 million
valuation allowance against our deferred tax assets during the
second quarter which eliminated any tax benefit on our net losses
year-to-date.
Credit Quality
Loans 30-89 days past due ("DPD") and still accruing decreased
to 1.78% of total loans at June 30,
2010 compared to 1.88% at March 31,
2010. Non-performing loans, including loans 90 DPD and
still accruing, increased to $231.4
million, or 9.3%, of total loans in the second quarter,
compared to 7.1% of total loans at March 31,
2010. Of the non-performing loans, approximately 70%
are in Florida and 30% in
Alabama. Of our $45.2 million OREO portfolio, approximately 56%
is in Alabama and 44% is in
Florida. Net charge-offs for
the quarter were $14.1 million, or an
annualized rate of 2.26% of total loans. The provision for loan
losses for the quarter was $50.4
million compared to a provision of $9.1 million for the first quarter. The
allowance for loan losses at June 30,
2010 was $79.4 million, or
3.20% of loans, up from $43.2 million
at the end of the first quarter. During the quarter we experienced
(1) a migration of performing classified loans into non-performing
status, (2) an increase in troubled debt restructurings ("TDRs")
resulting from workout activity, and/or (3) an increase in
collateral impairments relative to other external factors such as
short sales, updated appraisals, etc. These factors created
the need for increased loan loss provisions during the second
quarter of 2010. In addition, management increased the
general allowance for loan losses to account for the estimated
increase in losses related to the recent oil spill in the
Gulf of Mexico.
Balance Sheet
Loan demand in the second quarter was relatively flat, with
total loans decreasing slightly, by 0.9% from March 31, 2010 to June 30,
2010. We expect this slowed rate of loan growth to
continue throughout 2010, due to the current condition of the
economy. We continue to experience strong growth in our
deposit base, with deposits up 3.1% from the first quarter, as we
continue to experience the benefits of our de novo branching
program and our focus on relationship banking. Deposits at
our 22 de novo branches reached $540
million at June 30, 2010. This
expansion, which was initiated in 2006 and which continued into
2010 with the opening of our 22nd new branch, has been the single
largest contributing factor in the increase in liquidity in our
bank, and in our demonstrated transformation of Superior from a
transaction-based bank into a relationship-based bank.
Liquidity and Capital
Liquidity at Superior Bank remained excellent. Federal
Home Loan Bank borrowings were approximately 7.6% of deposits.
Brokered deposits, excluding CDARS, totaled approximately
6.5% of deposits. Including CDARS, brokered deposits totaled
approximately 8.3% of deposits.
Superior Bank's Total Risk Based Capital was $229.4 million at June 30,
2010. Our capital ratios slipped during the quarter as
the result of our increased provision for loan losses described
above. We are responding to the decline in the capital ratio
by instituting several initiatives, including a repositioning of
our securities portfolio and a focus on lending activity to meet
the needs of existing customers.
About Superior Bancorp
Superior Bancorp is a $3.4 billion
thrift holding company headquartered in Birmingham, and the second largest bank
holding company headquartered in Alabama. The principal subsidiary of Superior
Bancorp is Superior Bank, a southeastern community bank that
currently has 73 branches, with 45 locations throughout the state
of Alabama and 28 locations in
Florida. Superior Bank also
operates 24 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 its analysis of Superior's performance.
Non-GAAP measures typically adjust GAAP performance measures to
exclude the effects of 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 Quarterly Report on Form
10-Q, 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) changes in local economic conditions in the markets
in which we operate; (3) the continued weakening in the real estate
values in the markets in which we operate; (4) 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; (5) increases in FDIC deposit
insurance premiums and assessments; (6) inflation or deflation and
interest rate, market and monetary fluctuations; (7) the
adequacy of our allowance for loan losses to cover actual losses
and impact of credit risk exposures; (8) greater loan losses
than historic levels and increased allowance for loan loss;
(9) 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;
(10) the willingness of users to substitute competitors'
products and services for our products and services;
(11) changes in loan underwriting, credit review or loss
reserve policies associated with economic conditions, examination
conclusions, or regulatory developments; (12) 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; (13) our ability to comply with any requirements imposed on
us and Superior Bank by our regulators; (14) restrictions or
limitations on our access to funds from Superior Bank; (15) changes
in accounting policies, principles and guidelines applicable to us;
(16) our focus on lending to small to mid-size community-based
businesses, which may increase our credit risk; (17) our ability to
resolve any regulatory, legal or judicial proceeding on acceptable
terms and its effect on our financial condition or results of
operations; (18) technological changes; (19) changes in
consumer spending and savings habits; (20) the effect of
natural or environmental disasters, such as, among other things,
hurricanes and oil spills, in our geographic markets; (21)
the continuing instability in the domestic and international
capital markets; (22) (the effects on our operations of policy
initiatives or laws that have been and may continue to be
introduced by the Presidential administration or Congress and
related regulatory actions, including but not limited to the
Dodd-Frank Wall Street Reform and Consumer Protection Act and the
regulations promulgated thereunder; (23) our ability to
successfully integrate the assets, liabilities, customers, systems
and management we acquire or merge into our operations; (24)
our ability to raise additional capital to fund growth plans or to
meet regulatory requirements; and (25) other factors and
information contained in reports and other filings we make
with the SEC. If one or more of the factors affecting our
forward-looking information and statements proves incorrect, then
our actual results, performance or achievements could differ
materially from those expressed in, or implied by, forward-looking
information and statements contained in this report. Therefore, we
caution you not to place undue reliance on our forward-looking
information and statements. We do not intend to update our
forward-looking information and statements, whether written or
oral, to reflect changes. All forward-looking statements
attributable to us are expressly qualified by these cautionary
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)
|
|
|
June 30,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
2009
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
54,648
|
|
$
80,621
|
|
$
74,020
|
|
Interest-bearing deposits in
other banks
|
245,182
|
|
19,868
|
|
23,714
|
|
Federal funds sold
|
1,328
|
|
2,426
|
|
2,036
|
|
Total cash and cash
equivalents
|
301,158
|
|
102,915
|
|
99,770
|
|
Investment securities
available-for-sale
|
269,943
|
|
306,300
|
|
286,310
|
|
Tax lien certificates
|
18,820
|
|
25,533
|
|
19,292
|
|
Mortgage loans
held-for-sale
|
54,823
|
|
100,707
|
|
71,879
|
|
Loans, net of unearned
income
|
2,482,560
|
|
2,398,471
|
|
2,472,697
|
|
Less: Allowance for loan
losses
|
(79,425)
|
|
(33,504)
|
|
(41,884)
|
|
Net loans
|
2,403,135
|
|
2,364,967
|
|
2,430,813
|
|
Premises and equipment,
net
|
102,765
|
|
105,343
|
|
104,022
|
|
Accrued interest
receivable
|
15,168
|
|
16,025
|
|
15,581
|
|
Stock in FHLB
|
18,212
|
|
18,212
|
|
18,212
|
|
Cash surrender value of life
insurance
|
50,792
|
|
49,174
|
|
50,142
|
|
Intangible assets
|
14,746
|
|
18,873
|
|
16,694
|
|
Other real estate
|
45,184
|
|
35,206
|
|
41,618
|
|
Other assets
|
63,589
|
|
66,166
|
|
67,536
|
|
Total assets
|
$ 3,358,335
|
|
$ 3,209,421
|
|
$
3,221,869
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Noninterest-bearing
|
$
275,712
|
|
$
246,724
|
|
$
257,744
|
|
Interest-bearing
|
2,562,809
|
|
2,357,834
|
|
2,398,829
|
|
Total deposits
|
2,838,521
|
|
2,604,558
|
|
2,656,573
|
|
Advances from FHLB
|
216,324
|
|
228,320
|
|
218,322
|
|
Security repurchase
agreements
|
762
|
|
2,164
|
|
841
|
|
Notes payable
|
45,150
|
|
45,688
|
|
45,917
|
|
Subordinated
debentures
|
81,196
|
|
60,774
|
|
84,170
|
|
Accrued expenses and other
liabilities
|
27,068
|
|
27,236
|
|
24,342
|
|
Total liabilities
|
3,209,021
|
|
2,968,740
|
|
3,030,165
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Preferred stock, par value $.001
per share; shares authorized 5,000,000:
|
|
|
|
|
|
|
Series B, cumulative convertible
preferred stock; 111, - 0 - and - 0 - shares issued and outstanding
at June 30, 2010 and 2009 and December 31, 2009,
respectively
|
-
|
|
-
|
|
-
|
|
Series C, cumulative convertible
preferred stock; 3, - 0 - and - 0 - shares issued and outstanding
at June 30, 2010 and 2009 and December 31, 2009,
respectively
|
-
|
|
-
|
|
-
|
|
Common stock, par value $.001
per share; shares authorized 200,000,000, 20,000,000 and
200,000,000 at June 30, 2010 and 2009 and December 31, 2009,
respectively; shares issued 12,560,457, 10,438,590, and 11,673,837,
respectively; outstanding 12,560,457, 10,111,684 and 11,667,794,
respectively
|
13
|
|
10
|
|
12
|
|
Surplus
- preferred
|
10,888
|
|
63,563
|
|
-
|
|
- warrants
|
9,827
|
|
8,646
|
|
8,646
|
|
- common
|
325,159
|
|
329,736
|
|
322,043
|
|
Accumulated deficit
|
(191,250)
|
|
(141,483)
|
|
(130,889)
|
|
Accumulated other comprehensive
loss
|
(5,136)
|
|
(7,991)
|
|
(7,825)
|
|
Treasury stock, at
cost
|
-
|
|
(11,333)
|
|
-
|
|
Unearned ESOP
stock
|
(174)
|
|
(353)
|
|
(263)
|
|
Unearned restricted
stock
|
(13)
|
|
(114)
|
|
(20)
|
|
Total stockholders'
equity
|
149,314
|
|
240,681
|
|
191,704
|
|
Total liabilities and
stockholders' equity
|
$ 3,358,335
|
|
$ 3,209,421
|
|
$
3,221,869
|
|
|
|
|
|
|
|
|
Superior Bancorp and
Subsidiaries
|
|
|
Condensed Consolidated
Statements of Operations
|
|
|
(Amounts In Thousands, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Year Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2009
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$ 36,212
|
|
$ 35,959
|
|
$ 72,554
|
|
$ 70,911
|
|
$
144,660
|
|
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
2,625
|
|
3,778
|
|
5,536
|
|
7,787
|
|
14,085
|
|
|
Exempt from Federal income
tax
|
|
314
|
|
434
|
|
626
|
|
863
|
|
1,610
|
|
|
Interest on federal funds
sold
|
|
2
|
|
2
|
|
3
|
|
7
|
|
9
|
|
|
Interest and dividends on other
investments
|
|
393
|
|
456
|
|
765
|
|
818
|
|
1,718
|
|
|
Total interest income
|
|
39,546
|
|
40,629
|
|
79,484
|
|
80,386
|
|
162,082
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
11,452
|
|
14,109
|
|
22,977
|
|
29,002
|
|
54,360
|
|
|
Interest on FHLB advances and
other borrowings
|
|
2,542
|
|
2,597
|
|
5,064
|
|
4,938
|
|
10,097
|
|
|
Interest on subordinated
debt
|
|
2,399
|
|
1,206
|
|
4,785
|
|
2,400
|
|
5,063
|
|
|
Total interest
expense
|
|
16,393
|
|
17,912
|
|
32,826
|
|
36,340
|
|
69,520
|
|
|
Net interest
income
|
|
23,153
|
|
22,717
|
|
46,658
|
|
44,046
|
|
92,562
|
|
|
Provision for loan
losses
|
|
50,363
|
|
5,982
|
|
59,490
|
|
9,434
|
|
28,550
|
|
|
Net interest (loss) income after
provision for loan losses
|
|
(27,210)
|
|
16,735
|
|
(12,832)
|
|
34,612
|
|
64,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on
deposits
|
|
2,335
|
|
2,524
|
|
4,551
|
|
4,911
|
|
10,112
|
|
|
Mortgage banking
income
|
|
2,667
|
|
2,271
|
|
4,677
|
|
3,961
|
|
7,084
|
|
|
Investment securities gains
(losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of investment
securities
|
|
1,858
|
|
-
|
|
1,858
|
|
-
|
|
5,644
|
|
|
Total other-than-temporary
impairment ("OTTI") losses
|
|
(683)
|
|
(6,685)
|
|
(883)
|
|
(17,189)
|
|
(23,079)
|
|
|
Portion of OTTI recognized in
other comprehensive loss
|
|
181
|
|
904
|
|
183
|
|
5,563
|
|
7,333
|
|
|
Investment
securities gains (losses)
|
|
1,356
|
|
(5,781)
|
|
1,158
|
|
(11,626)
|
|
(10,102)
|
|
|
Change in fair value of
derivatives
|
|
(239)
|
|
(67)
|
|
(29)
|
|
(266)
|
|
(826)
|
|
|
Increase in cash surrender value
of life insurance
|
|
558
|
|
540
|
|
1,126
|
|
1,055
|
|
2,198
|
|
|
Gain on exchange of subordinated
debt for common stock
|
|
507
|
|
-
|
|
507
|
|
-
|
|
-
|
|
|
Other income
|
|
1,344
|
|
1,340
|
|
2,750
|
|
2,557
|
|
5,113
|
|
|
Total noninterest
income
|
|
8,528
|
|
827
|
|
14,740
|
|
592
|
|
13,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
13,840
|
|
12,304
|
|
28,040
|
|
24,613
|
|
49,962
|
|
|
Occupancy, furniture and
equipment expense
|
|
4,850
|
|
4,503
|
|
9,613
|
|
8,919
|
|
18,643
|
|
|
Amortization of core deposit
intangibles
|
|
869
|
|
985
|
|
1,739
|
|
1,971
|
|
3,941
|
|
|
FDIC assessment
|
|
1,853
|
|
1,932
|
|
3,233
|
|
2,389
|
|
6,348
|
|
|
Foreclosure losses
|
|
3,358
|
|
1,748
|
|
5,935
|
|
2,317
|
|
8,116
|
|
|
Other operating
expenses
|
|
6,763
|
|
6,323
|
|
12,782
|
|
11,650
|
|
23,475
|
|
|
Total noninterest
expenses
|
|
31,533
|
|
27,795
|
|
61,342
|
|
51,859
|
|
110,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(50,215)
|
|
(10,233)
|
|
(59,434)
|
|
(16,655)
|
|
(32,894)
|
|
|
Income tax expense
(benefit)
|
|
3,507
|
|
(4,539)
|
|
28
|
|
(7,387)
|
|
(13,005)
|
|
|
Net loss
|
|
(53,722)
|
|
(5,694)
|
|
(59,462)
|
|
(9,268)
|
|
(19,889)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends and
amortization
|
|
(899)
|
|
(1,167)
|
|
(899)
|
|
(2,310)
|
|
(4,193)
|
|
|
Gain on exchange of preferred
stock for subordinated debt
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,097
|
|
|
Net loss applicable to common
shareholders
|
|
$ (54,621)
|
|
$ (6,861)
|
|
$ (60,361)
|
|
$ (11,578)
|
|
$
(985)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
|
$
(4.44)
|
|
$ (0.68)
|
|
$
(5.04)
|
|
$
(1.15)
|
|
$
(0.09)
|
|
|
Diluted loss per
share
|
|
$
(4.44)
|
|
$ (0.68)
|
|
$
(5.04)
|
|
$
(1.15)
|
|
$
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
12,305
|
|
10,071
|
|
11,977
|
|
10,062
|
|
10,687
|
|
|
Weighted average common shares
outstanding, assuming dilution
|
|
12,305
|
|
10,071
|
|
11,977
|
|
10,062
|
|
10,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPERIOR BANCORP AND
SUBSIDIARIES
|
|
UNAUDITED SUMMARY CONSOLIDATED
FINANCIAL DATA
|
|
(Dollars in thousands, except
per share data)
|
|
|
|
|
|
|
As of and for the
|
|
As of and for the
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
Year Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2009
|
|
|
Selected Average
Balances :
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ 3,354,105
|
|
3,173,974
|
|
$ 3,313,590
|
|
$ 3,136,721
|
|
$
3,153,395
|
|
|
Total liabilities
|
|
3,163,511
|
|
2,927,821
|
|
3,122,448
|
|
2,887,864
|
|
2,909,778
|
|
|
Loans, net of unearned
income
|
|
2,512,856
|
|
2,387,078
|
|
2,502,589
|
|
2,364,676
|
|
2,401,805
|
|
|
Mortgage loans
held-for-sale
|
|
53,136
|
|
71,942
|
|
49,762
|
|
61,091
|
|
61,309
|
|
|
Investment securities
|
|
288,632
|
|
322,165
|
|
286,355
|
|
332,153
|
|
313,514
|
|
|
Total interest-earning
assets
|
|
3,039,108
|
|
2,856,333
|
|
2,996,273
|
|
2,828,018
|
|
2,846,345
|
|
|
Noninterest-bearing
deposits
|
|
269,095
|
|
245,819
|
|
265,636
|
|
238,722
|
|
246,428
|
|
|
Interest-bearing
deposits
|
|
2,522,490
|
|
2,311,070
|
|
2,483,879
|
|
2,255,913
|
|
2,289,900
|
|
|
Advances from FHLB
|
|
217,488
|
|
241,266
|
|
217,903
|
|
280,079
|
|
252,187
|
|
|
Federal funds borrowed and
security repurchase agreements
|
|
900
|
|
2,092
|
|
1,088
|
|
2,580
|
|
2,057
|
|
|
Subordinated
debentures
|
|
84,487
|
|
60,795
|
|
84,372
|
|
60,823
|
|
62,117
|
|
|
Total interest-bearing
liabilities
|
|
2,874,816
|
|
2,664,339
|
|
2,836,654
|
|
2,629,548
|
|
2,646,039
|
|
|
Stockholders' equity
|
|
190,594
|
|
246,153
|
|
191,142
|
|
248,857
|
|
243,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income -
basic
|
|
$
(4.44)
|
|
$
(0.68)
|
|
$
(5.04)
|
|
$
(1.15)
|
|
$
(0.09)
|
|
|
- diluted (5)
|
|
$
(4.44)
|
|
$
(0.68)
|
|
$
(5.04)
|
|
$
(1.15)
|
|
$
(0.09)
|
|
|
Weighted average common shares
outstanding - basic
|
|
12,305
|
|
10,071
|
|
11,977
|
|
10,062
|
|
10,687
|
|
|
Weighted average common shares
outstanding - diluted (5)
|
|
12,305
|
|
10,071
|
|
11,977
|
|
10,062
|
|
10,687
|
|
|
Common book value per share at
period end
|
|
$
10.24
|
|
$
16.66
|
|
$
10.24
|
|
$
16.66
|
|
$
15.69
|
|
|
Tangible common book value per
share at period end
|
|
$
9.06
|
|
$
14.79
|
|
$
9.06
|
|
$
14.79
|
|
$
14.26
|
|
|
Preferred shares outstanding at
period end
|
|
114
|
|
69,000
|
|
114
|
|
69,000
|
|
-
|
|
|
Common shares outstanding at
period end
|
|
12,560,457
|
|
10,111,684
|
|
12,560,457
|
|
10,111,684
|
|
11,667,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios and Other
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(1)
|
|
(6.42)
|
|
(0.72)
|
|
(3.62)
|
|
(0.60)
|
|
(0.63)
|
|
|
Return on average tangible
assets (1)
|
|
(6.45)
|
|
(0.72)
|
|
(3.64)
|
|
(0.60)
|
|
(0.63)
|
|
|
Return on average stockholders'
equity (1)
|
|
(113.06)
|
|
(9.28)
|
|
(62.73)
|
|
(7.51)
|
|
(8.16)
|
|
|
Return on average tangible
equity (1)
|
|
(122.87)
|
|
(10.07)
|
|
(68.35)
|
|
(8.17)
|
|
(8.85)
|
|
|
Net interest margin
(1)(2)(3)
|
|
3.02
|
|
3.22
|
|
3.10
|
|
3.17
|
|
3.28
|
|
|
Net interest spread
(1)(3)(4)
|
|
2.89
|
|
3.04
|
|
2.97
|
|
2.97
|
|
3.09
|
|
|
Average loan to average deposit
ratio
|
|
91.92
|
|
96.17
|
|
92.83
|
|
97.24
|
|
97.11
|
|
|
Average interest-earning assets
to average interest-bearing liabilities
|
|
105.71
|
|
107.21
|
|
105.63
|
|
107.55
|
|
107.57
|
|
|
Core deposit intangible ("CDI")
and other intangibles
|
|
$
14,746
|
|
$
18,873
|
|
$
14,746
|
|
$
18,873
|
|
$
16,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
$
215,891
|
|
$
105,356
|
|
$
215,891
|
|
$
105,356
|
|
$
155,631
|
|
|
Accruing loans 90 days or more
delinquent
|
|
15,547
|
|
12,373
|
|
15,547
|
|
12,373
|
|
3,920
|
|
|
Other real estate owned and
repossessed assets
|
|
45,506
|
|
35,660
|
|
45,506
|
|
35,660
|
|
41,998
|
|
|
Total
nonperforming assets ("NPAs")
|
|
276,944
|
|
153,389
|
|
276,944
|
|
153,389
|
|
201,549
|
|
|
Restructured loans, not included
in total NPAs, net of specific allowance
|
|
147,588
|
|
19,143
|
|
147,588
|
|
19,143
|
|
110,777
|
|
|
Net loan charge-offs
|
|
14,128
|
|
2,348
|
|
21,949
|
|
4,780
|
|
15,516
|
|
|
Allowance for loan losses to
nonperforming loans
|
|
34.32
|
|
28.46
|
|
34.32
|
|
28.46
|
|
26.25%
|
|
|
Allowance for loan losses to
loans, net of unearned income
|
|
3.20
|
|
1.40
|
|
3.20
|
|
1.40
|
|
1.69
|
|
|
NPA to loans plus NPAs, net of
unearned income
|
|
10.95
|
|
6.30
|
|
10.95
|
|
6.30
|
|
8.01
|
|
|
NPAs to total
assets
|
|
8.25
|
|
4.77
|
|
8.25
|
|
4.77
|
|
6.26
|
|
|
Net loan charge-offs to average
loans (1)
|
|
2.26
|
|
0.39
|
|
1.77
|
|
0.41
|
|
0.65
|
|
|
Net loan charge-offs as a
percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
28.05
|
|
39.26
|
|
36.90
|
|
50.66
|
|
54.35
|
|
|
Allowance for loan losses
(1)
|
|
71.34
|
|
28.11
|
|
55.73
|
|
28.77
|
|
37.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized for the three and
six months ended June 30, 2010 and June 30, 2009.
|
|
|
(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) Common stock equivalents of
415,329 and 67,422, 439,600 and 77,027, and 159,561 were not
included in computing diluted earnings per share for the three and
six months ended June 30, 2010, and 2009 and the twelve months
ended December 31, 2009, respectively, because their effects were
antidilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPERIOR BANCORP AND
SUBSIDIARIES
|
|
|
UNAUDITED SUMMARY CONSOLIDATED
FINANCIAL DATA
|
|
|
(Dollars in Thousands, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
Reconciliation
Table
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
Net loss (GAAP)
|
|
$ (53,722)
|
|
$ (5,694)
|
|
$ (59,462)
|
|
$ (9,268)
|
|
|
Amortization of core deposit
intangibles
|
|
547
|
|
621
|
|
1,096
|
|
1,242
|
|
|
Investment securities (gains)
losses, net of tax
|
|
(854)
|
|
3,642
|
|
(730)
|
|
7,324
|
|
|
Change in fair value of
derivatives, net of tax
|
|
151
|
|
42
|
|
18
|
|
168
|
|
|
Gain on exchange of subordinated
debt for common stock, net of tax
|
|
(319)
|
|
-
|
|
(319)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
(non-GAAP)
|
|
$ (54,197)
|
|
$ (1,389)
|
|
$ (59,397)
|
|
$ (534)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core noninterest income
(non-GAAP)
|
|
$ 6,904
|
|
$ 6,675
|
|
$ 13,104
|
|
$ 12,484
|
|
|
Investment securities gains
(losses)
|
|
1,356
|
|
(5,781)
|
|
1,158
|
|
(11,626)
|
|
|
Change in fair value of
derivatives
|
|
(239)
|
|
(67)
|
|
(29)
|
|
(266)
|
|
|
Gain on exchange of subordinated
debt for common stock
|
|
507
|
|
-
|
|
507
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income
(GAAP)
|
|
$ 8,528
|
|
$
827
|
|
$ 14,740
|
|
$
592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core noninterest expense
(non-GAAP)
|
|
$ 26,322
|
|
$ 24,115
|
|
$ 52,174
|
|
$ 47,153
|
|
|
FDIC assessment
|
|
1,853
|
|
1,932
|
|
3,233
|
|
2,389
|
|
|
Foreclosure losses
|
|
3,358
|
|
1,748
|
|
5,935
|
|
2,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense
(GAAP)
|
|
$ 31,533
|
|
$ 27,795
|
|
$ 61,342
|
|
$ 51,859
|
|
|
|
|
|
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|
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|
|
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As of
|
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|
|
June 30,
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Total stockholders' equity
(GAAP)
|
|
$ 149,314
|
|
$ 240,681
|
|
|
|
|
|
|
Intangible assets
(GAAP)
|
|
14,746
|
|
18,873
|
|
|
|
|
|
|
Carrying value of
warrants
|
|
9,827
|
|
8,646
|
|
|
|
|
|
|
Liquidation value of
preferred equity
|
|
10,888
|
|
63,563
|
|
|
|
|
|
|
Total tangible common equity
(non-GAAP)
|
|
$ 113,853
|
|
$ 149,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
12,560
|
|
10,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Tangible common book value per
share at period end
|
|
$
9.06
|
|
$ 14.79
|
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SOURCE Superior Bancorp
Copyright . 13 PR Newswire