SAVANNAH, Ga., July 22, 2010 (GLOBE NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported a net loss for the second quarter 2010 of $62,000 compared to net income of $106,000 in the second quarter 2009. Net loss per diluted share was 1 cent in the second quarter of 2010 compared to net income per diluted share of 2 cents in 2009. The quarter over quarter decline in earnings results primarily from a higher provision for loan losses. Pretax earnings before the provision for loan losses and gain/loss on sale of securities and foreclosed assets were $3,653,000 in the second quarter 2010 compared to $3,946,000 in 2009. Other growth and performance ratios are included in the attached financial highlights. On June 25, 2010, The Savannah Bank, N.A. ("Savannah"), the Company's largest subsidiary bank, entered into an agreement with the FDIC to purchase substantially all deposits and certain liabilities and assets of First National Bank, Savannah ("First National"). Savannah acquired approximately $42 million in assets and assumed $216 million in liabilities, including $201 million in customer deposits. The assets primarily include cash and due from accounts and investment securities. Savannah acquired the local, non-brokered deposits of approximately $105 million at a premium of 0.11 percent. In connection with closing, Savannah received a cash payment from the FDIC totaling $174 million, based on the differential between liabilities assumed and assets acquired, taking into account the deposit premium. Total assets increased 21 percent to $1.23 billion at June 30, 2010, up $210 million from $1.02 billion a year earlier. Loans totaled $849 million compared to $862 million one year earlier, a decrease of 1.6 percent. Deposits totaled $1.07 billion and $847 million at June 30, 2010 and 2009, respectively, an increase of 26 percent. Deposits include $195 million in deposits from the acquisition of First National. Shareholders' equity was $89.6 million at June 30, 2010 compared to $79.0 million at June 30, 2009. Shareholder's equity includes $11.2 million in net proceeds from the issuance of common stock in the second quarter 2010. The Company's total capital to risk-weighted assets ratio was 13.38 percent at June 30, 2010, which exceeds the 10 percent required by the regulatory agencies to maintain well-capitalized status.
John C. Helmken II, President and CEO, said, "Though we did report a small loss this quarter, we should not lose sight of the Company's significant second quarter events: a successful capital raise, the acquisition of a bank through an FDIC-assisted transaction, a key executive hire and continued progress in our loan portfolio. In addition, our net interest margin remained above 3.50 percent for a second consecutive quarter and our deposit mix continues to improve. We enter the second half of the year well positioned for growth."
Helmken continued, "With the addition of Mike Viers to lead our Commercial Banking Group in Savannah, we expect to see growth on each side of the balance sheet. Regardless of economic conditions, there is tremendous opportunity in our existing markets and we remain focused on soliciting core relationships for our Company. We have the best team in the market to make that happen." The allowance for loan losses was $18,775,000, or 2.21 percent of loans at June 30, 2010 compared to $15,597,000 or 1.81 percent of total loans a year earlier. Nonperforming assets were $48,978,000 or 3.97 percent of total assets at June 30, 2010 compared to $33,745,000 or 3.31 percent at June 30, 2009. Second quarter net charge-offs were $4,581,000 compared to net charge-offs of $2,937,000 for the same period in 2009. The provision for loan losses for the second quarter of 2010 was $3,745,000 compared to $3,225,000 for the second quarter of 2009. The higher provision for loan losses was primarily due to real estate-related charge-offs and continued weakness in the Company's local real estate markets. Net interest income was up $192,000, or 2.4 percent, in the second quarter 2010 versus the second quarter 2009. Second quarter net interest margin increased to 3.54 percent in 2010 as compared to 3.52 percent in 2009, primarily due to significantly lower deposit rates partially offset by higher levels of noninterest-earning assets. The net interest margin decreased 10 basis points on a linked quarter basis from the 3.64 percent margin for the first quarter 2010.
Noninterest income decreased $180,000, or 9.4 percent, in the second quarter of 2010 versus the same period in 2009 due to lower mortgage related income, $256,000 lower gain on hedges, and a lower gain on the sale of securities, partially offset by $107,000, or 19 percent, higher trust and asset management fees.
Noninterest expense decreased $200,000 to $6,539,000 in the second quarter 2010 compared to the same period in 2009. Second quarter 2010 noninterest expense included $405,000, or 50 percent, of lower FDIC insurance premiums and $554,000, or 63 percent, lower loss on sale of foreclosed assets. The second quarter 2009 included the special assessment from the FDIC which accounts for most of the net decline in FDIC insurance premiums. Occupancy and equipment expense was $457,000 higher, or 101 percent, and other operating expense was $179,000 higher, or 16 percent. In the second quarter 2009, the Company purchased its previously leased Hilton Head Island branch from an outside party and reversed approximately $527,000 in accrued rent expense that was recorded in occupancy and equipment expense. The Savannah Bancorp, Inc. ("SAVB" or "Company"), a bank holding company for The Savannah Bank, N.A., Bryan Bank & Trust (Richmond Hill, Georgia), and Minis & Co., Inc., is headquartered in Savannah, Georgia and began operations in 1990. SAVB has fourteen branches in Coastal Georgia and South Carolina. Its primary businesses include loan, deposit, trust, asset management, and mortgage origination services provided to local customers. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements identified by words or phrases such as "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "assume," "outlook," "continue," "seek," "plans," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. These statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. There can be no assurance that these transactions will occur or that the expected benefits associated therewith will be achieved. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond our ability to control or predict. These factors include, but are not limited to, those found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.
The Savannah Bancorp, Inc. and Subsidiaries
Second Quarter Financial Highlights
June 30, 2010 and 2009
($ in thousands, except share data)
(Unaudited)
%
Balance Sheet Data at June 30
2010
2009
Change
Total assets
$ 1,234,8170
$ 1,019,557
21
Interest-earning assets
1,137,863
936,927
21
Loans
848,852
862,242
(1.6)
Other real estate owned
7,793
6,377
22
Deposits
1,070,445
847,037
26
Interest-bearing liabilities
1,049,175
856,041
23
Shareholders' equity
89,594
78,980
13
Loan to deposit ratio
79.30%
101.80%
(22)
Equity to assets
7.26%
7.75%
(6.3)
Tier 1 capital to risk-weighted assets
12.12%
10.30%
18
Total capital to risk-weighted assets
13.38%
11.55%
16
Outstanding shares
7,201
5,932
21
Book value per share
$ 12.44
$13.31
(6.5)
Tangible book value per share
$ 12.09
$ 12.88
(6.1)
Market value per share
$ 9.76
$ 6.65
47
Loan Quality Data
Nonaccruing loans
$ 39,001
$ 24,994
56
Loans past due 90 days – accruing
2,184
2,374
(8.0)
Net charge-offs
7,968
4,648
71
Allowance for loan losses
18,775
15,597
20
Allowance for loan losses to total loans
2.21%
1.81%
22
Nonperforming assets to total assets
3.97%
3.31%
20
Performance Data for the Second Quarter
Net (loss) income
$ (62)
$ 106
(158)
Return on average assets
(0.02)%
0.04%
(150)
Return on average equity
(0.31)%
0.53%
(158)
Net interest margin
3.56%
3.52%
1.1
Efficiency ratio
65.38%
67.46%
(3.1)
Per share data:
Net (loss) income – basic
$ (0.01)
$ 0.02
(150)
Net (loss) income – diluted
$ (0.01)
$ 0.02
(150)
Dividends
$ 0.00
$ 0.02
NM
Average shares (000s):
Basic
6,146
5,932
3.6
Diluted
6,146
5,936
3.5
Performance Data for the First Six Months
Net loss
$ (550)
$ (179)
207
Return on average assets
(0.05)%
(0.04)%
25
Return on average equity
(0.69)%
(0.45)%
(53)
Net interest margin
3.59%
3.44%
4.4
Efficiency ratio
62.60%
67.20%
(6.8)
Per share data:
Net loss – basic
$ (0.09)
$ (0.03)
200
Net loss – diluted
$ (0.09)
$ (0.03)
200
Dividends
$ 0.02
$ 0.145
(86)
Average shares (000s):
Basic
6,042
5,933
1.8
Diluted
6,042
5,936
1.8
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
($ in thousands, except share data)
(Unaudited)
June 30,
2010
2009
Assets
Cash and due from banks
$ 19,606
$ 22,650
Federal funds sold
8,286
11,550
Interest-bearing deposits
203,611
6,209
Cash and cash equivalents
231,503
40,409
Securities available for sale, at fair value (amortized
cost of $116,115 and $81,862)
117,695
83,883
Loans, net of allowance for loan losses
of $18,775 and $15,597
830,077
846,645
Premises and equipment, net
15,480
16,408
Other real estate owned
7,793
6,377
Bank-owned life insurance
6,206
6,326
Goodwill and other intangible assets, net
2,542
2,570
Other assets
23,521
16,939
Total assets
$ 1,234,817
$ 1,019,557
Liabilities
Deposits:
Noninterest-bearing
$ 89,793
$ 78,961
Interest-bearing demand
121,834
121,919
Savings
18,810
16,421
Money market
257,961
219,990
Time deposits
582,047
409,746
Total deposits
1,070,445
847,037
Short-term borrowings
19,295
49,604
Other borrowings
13,257
12,385
FHLB advances – long-term
25,661
15,666
Subordinated debt
10,310
10,310
Other liabilities
6,255
5,575
Total liabilities
1,145,223
940,577
Shareholders' equity
Preferred stock, par value $1 per share: shares
authorized 10,000,000, none issued
--
--
Common stock, par value $1 per share: shares authorized
20,000,000, issued 7,201,346 and 5,933,789
7,201
5,934
Additional paid-in capital
48,644
38,567
Retained earnings
32,715
32,512
Treasury stock, at cost, 536 and 1,443 shares
(1)
(4)
Accumulated other comprehensive income, net
1,035
1,971
Total shareholders' equity
89,594
78,980
Total liabilities and shareholders' equity
$ 1,234,817
$ 1,019,557
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
for the Six Months and Five Quarters Ending June 30, 2010
($ in thousands, except per share data)
(Unaudited)
For the Six Months Ended
2010
2009
Q2-10/
June 30,
%
Second
First
Fourth
Third
Second
Q2-09
2010
2009
Chg
Quarter
Quarter
Quarter
Quarter
Quarter
% Chg
Interest and dividend income
Loans, including fees
$22,916
$23,502
(2.5)
$11,298
$11,618
$11,793
$11,786
$11,856
(4.7)
Investment securities
1,113
1,799
(38)
552
561
688
932
894
(38)
Deposits with banks
30
25
20
24
6
9
11
12
100
Federal funds sold
11
4
175
3
8
6
8
2
50
Total interest and dividend income
24,070
25,330
(5.0)
11,877
12,193
12,496
12,737
12,764
(6.9)
Interest expense
Deposits
6,393
8,745
(27)
3,118
3,275
3,652
4,057
4,264
(27)
Borrowings & sub debt
796
702
13
392
404
446
354
338
16
FHLB advances
176
133
32
91
85
83
86
78
17
Total interest expense
7,365
9,580
(23)
3,601
3,764
4,181
4,497
4,680
(23)
Net interest income
16,705
15,750
6.1
8,276
8,429
8,315
8,240
8,084
2.4
Provision for loan losses
9,065
6,945
31
3,745
5,320
2,560
3,560
3,225
16
Net interest income after the
provision for loan losses
7,640
8,805
(13)
4,531
3,109
5,755
4,680
4,859
(6.8)
Noninterest income
Trust and asset management fees
1,311
1,158
13
678
633
613
580
571
19
Service charges on deposits
915
899
1.8
460
455
464
446
432
6.5
Mortgage related income, net
192
251
(24)
103
89
92
89
159
(35)
Other operating income
991
592
67
355
636
322
324
309
15
Gain on hedges
(11)
641
(102)
(11)
--
48
184
245
(104)
Gain on sale of securities
608
374
63
141
467
1,141
604
190
(26)
Total noninterest income
4,006
3,915
2.3
1,726
2,280
2,680
2,227
1,906
(9.4)
Noninterest expense
Salaries and employee benefits
6,093
6,349
(4.0)
3,053
3,040
2,859
2,938
2,998
1.8
Occupancy and equipment
1,802
1,460
23
909
893
1,014
1,242
452
101
Information technology
1,014
889
14
519
495
469
452
451
15
FDIC deposit insurance
798
1,114
(28)
410
388
376
396
815
(50)
Loss on sale of foreclosed assets
859
1,049
(18)
331
528
1,269
220
885
(63)
Other operating expense
2,400
2,353
2.0
1,317
1,083
1,301
1,228
1,138
16
Total noninterest expense
12,966
13,214
(1.9)
6,539
6,427
7,288
6,476
6,739
(3.0)
Income (loss) before income taxes
(1,320)
(494)
167
(282)
(1,038)
1,147
431
26
NM
Income tax expense (benefit)
(770)
(315)
144
(220)
(550)
385
85
(80)
175
Net income (loss)
$ (550)
$ (179)
207
$ (62)
$ (488)
$ 762
$ 346
$ 106
(158)
Net income (loss) per share:
Basic
$ (0.09)
$ (0.03)
200
$ (0.01)
$ (0.08)
$ 0.13
$ 0.06
$ 0.02
(150)
Diluted
$ (0.09)
$ (0.03)
200
$ (0.01)
$ (0.08)
$ 0.13
$ 0.06
$ 0.02
(150)
Average basic shares (000s)
6,042
5,933
1.8
6,146
5,938
5,932
5,932
5,932
3.6
Average diluted shares (000s)
6,042
5,936
1.8
6,146
5,938
5,937
5,936
5,936
3.5
Performance Ratios
Return on average equity
(0.69)%
(0.45)%
(53)
(0.31)%
(2.50)%
3.80%
1.73%
0.53%
(158)
Return on average assets
(0.05)%
(0.04)%
(25)
(0.02)%
(0.19)%
0.29%
0.13%
0.04%
(150)
Net interest margin
3.59%
3.44%
4.4
3.56%
3.64%
3.47%
3.47%
3.52%
1.1
Efficiency ratio
62.60%
67.20%
(6.8)
65.38%
60.01%
66.28%
61.87%
67.46%
(3.1)
Average equity
79,566
80,236
(0.8)
80,110
79,016
79,459
79,302
79,606
0.6
Average assets
1,035,332
1,004,105
3.1
1,038,176
1,032,454
1,038,328
1,026,871
1,005,112
3.3
Average interest-earning assets
939,654
923,791
1.7
939,361
938,805
951,258
943,236
922,073
1.9
Capital Resources The banking regulatory agencies have adopted capital requirements that specify the minimum level for which no prompt corrective action is required. In addition, the FDIC assesses FDIC insurance premiums based on certain "well-capitalized" risk-based and equity capital ratios. As of June 30, 2010, the Company and the Subsidiary Banks exceeded the minimum requirements necessary to be classified as "well-capitalized."
Total tangible equity capital for the Company was $87.1 million, or 7.05 percent of total assets at June 30, 2010. The table below includes the regulatory capital ratios for the Company and each Subsidiary Bank along with the minimum capital ratio and the ratio required to maintain a well-capitalized regulatory status.
Well-
($ in thousands)
Company
Savannah
Bryan
Minimum
Capitalized
Qualifying Capital
Tier 1 capital
$ 96,133
$ 65,070
$ 22,866
--
--
Total capital
106,160
72,240
25,479
--
--
Leverage Ratios
Tier 1 capital to average assets
9.28%
8.54%
8.97%
4.00%
5.00%
Risk-based Ratios
Tier 1 capital to risk- weighted assets
12.12%
11.45%
11.05%
4.00%
6.00%
Total capital to risk- weighted assets
13.38%
12.71%
12.32%
8.00%
10.00%
Tier 1 and total capital at the Company level includes $10 million of subordinated debt issued to the Company's nonconsolidated subsidiaries. Total capital also includes the allowance for loan losses up to 1.25 percent of risk-weighted assets.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2010
2009
Second
First
Fourth
Third
Second
($ in thousands)
Quarter
Quarter
Quarter
Quarter
Quarter
Allowance for loan losses
Balance at beginning of period
$ 19,611
$ 17,678
$ 16,880
$ 15,597
$ 15,309
Provision for loan losses
3,745
5,320
2,560
3,560
3,225
Net charge-offs
(4,581)
(3,387)
(1,762)
(2,277)
(2,937)
Balance at end of period
$ 18,775
$ 19,611
$ 17,678
$ 16,880
$ 15,597
As a % of loans
2.21%
2.26%
2.00%
1.95%
1.81%
As a % of nonperforming loans
45.59%
53.40%
51.77%
64.92%
56.99%
As a % of nonperforming assets
38.33%
44.47%
41.62%
46.56%
46.22%
Net charge-offs as a % of average loans (a)
2.26%
1.63%
0.83%
1.07%
1.41%
Risk element assets
Nonaccruing loans
$ 39,001
$ 35,579
$ 32,545
$ 25,694
$ 24,994
Loans past due 90 days – accruing
2,184
1,146
1,570
307
2,374
Total nonperforming loans
41,185
36,725
34,115
26,001
27,368
Other real estate owned
7,793
7,374
8,329
10,252
6,377
Total nonperforming assets
$ 48,978
$ 44,099
$ 42,444
$ 36,253
$ 33,745
Loans past due 30-89 days
$ 10,259
$ 13,740
$ 5,182
$ 8,122
$ 6,670
Nonperforming loans as a % of loans
4.85%
4.23%
3.86%
3.00%
3.17%
Nonperforming assets as a % of loans
and other real estate owned
5.72%
5.03%
4.76%
4.13%
3.88%
Nonperforming assets as a % of assets
3.97%
4.21%
4.04%
3.48%
3.31%
(a) Annualized
The Savannah Bancorp, Inc. and Subsidiaries
Loan Concentration Schedule
June 30, 2010 and December 31, 2009
($ in thousands)
6/30/10
% of Total
12/31/09
% of Total
% Dollar Change
Non-residential real estate
Owner-occupied
$ 157,906
19
$ 137,439
16
15
Non owner-occupied
146,937
17
159,091
18
(7.6)
Construction
5,966
1
5,352
1
11
Commercial land and lot development
45,289
5
47,080
5
(3.8)
Total non-residential real estate
356,098
42
348,962
40
2.0
Residential real estate
Owner-occupied – 1-4 family
85,003
10
95,741
11
(11)
Non owner-occupied – 1-4 family
162,224
19
158,172
18
2.6
Construction
25,781
3
27,061
3
(4.7)
Residential land and lot development
76,958
9
92,346
10
(17)
Home equity lines
56,492
7
57,527
6
(1.8)
Total residential real estate
406,458
48
430,847
48
(5.7)
Total real estate loans
762,556
90
779,809
88
(2.2)
Commercial
71,453
8
89,379
10
(20)
Consumer
15,101
2
14,971
2
0.8
Unearned fees, net
(258)
--
(273)
--
(5.5)
Total loans, net of unearned fees
$ 848,852
100
$ 883,886
100
(4.0)
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis – Second Quarter, 2010 and 2009
Taxable-Equivalent
(a) Variance
Average Balance
Average Rate
Interest (b)
Attributable to
QTD
QTD
QTD
QTD
QTD
QTD
Vari-
6/30/10
6/30/09
6/30/10
6/30/09
6/30/10
6/30/09
ance
Rate
Volume
($ in thousands)
(%)
($ in thousands)
($ in thousands)
Assets
$ 32,915
$ 8,819
0.24
0.55
Interest-bearing deposits
$ 20
$ 12
$ 8
$ (7)
$ 15
78,271
71,551
2.44
4.89
Investments - taxable
476
873
(397)
(437)
40
7,595
1,467
4.33
7.38
Investments - non-taxable
82
27
55
(11)
66
7,365
4,414
0.27
0.18
Federal funds sold
5
2
3
1
2
813,215
835,822
5.57
5.69
Loans (c)
11,300
11,858
(558)
(250)
(308)
939,361
922,073
5.07
5.56
Total interest-earning assets
11,883
12,772
(889)
(1,126)
237
98,815
83,039
Noninterest-earning assets
$ 1,038,176
$ 1,005,112
Total assets
Liabilities and equity
Deposits
$ 126,536
$ 124,691
0.37
0.49
NOW accounts
117
153
(36)
(37)
1
18,015
16,425
0.40
0.71
Savings accounts
18
29
(11)
(13)
2
188,443
118,787
1.57
1.76
Money market accounts
739
522
217
(56)
273
63,147
91,463
1.03
1.61
Money market accounts - institutional
162
367
(205)
(132)
(73)
168,090
160,127
2.36
3.48
CDs, $100M or more
988
1,391
(403)
(447)
44
97,563
113,551
1.18
2.17
CDs, broker
288
613
(325)
(280)
(45)
150,201
142,272
2.16
3.35
Other time deposits
807
1,189
(382)
(422)
40
811,995
767,316
1.54
2.23
Total interest-bearing deposits
3,119
4,264
(1,145)
(1,320)
175
34,695
45,704
3.63
2.12
Short-term/other borrowings
314
242
72
172
(100)
15,992
13,974
2.26
2.24
FHLB advances - long-term
90
78
12
1
11
10,310
10,310
2.92
3.73
Subordinated debt
75
96
(21)
(21)
--
Total interest-bearing
872,992
837,304
1.65
2.24
liabilities
3,598
4,680
(1,082)
(1,232)
150
83,620
82,172
Noninterest-bearing deposits
1,454
6,030
Other liabilities
80,110
79,606
Shareholders' equity
$ 1,038,176
$ 1,005,112
Liabilities and equity
3.42
3.32
Interest rate spread
3.54
3.52
Net interest margin
Net interest income
$ 8,285
$ 8,092
$ 193
$ 106
$ 87
$ 66,369
$ 84,769
Net earning assets
$ 895,615
$ 849,488
Average deposits
1.40
2.01
Average cost of deposits
91%
98%
Average loan to deposit ratio
(a) This table shows the changes in interest income and interest expense for the comparative periods based on either changes in average volume or changes in average rates for interest-earning assets and interest-bearing liabilities. Changes which are not solely due to rate changes or solely due to volume changes are attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income less non-deductible TEFRA interest expense and was $8 in the second quarter 2010 and 2009, respectively.
(c) Average nonaccruing loans have been excluded from total average loans and categorized in noninterest-earning assets.
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis – First Six Months, 2010 and 2009
Taxable-Equivalent
(a) Variance
Average Balance
Average Rate
Interest (b)
Attributable to
YTD
YTD
YTD
YTD
YTD
YTD
Vari-
6/30/10
6/30/09
6/30/10
6/30/09
6/30/10
6/30/09
ance
Rate
Volume
($ in thousands)
(%)
($ in thousands)
($ in thousands)
Assets
$ 19,450
$ 6,331
0.31
0.80
Interest-bearing deposits
$ 30
$ 25
$ 5
$ (15)
$ 20
77,969
74,133
2.50
4.79
Investments - taxable
965
1,761
(796)
(842)
46
7,712
1,520
4.16
6.63
Investments - non-taxable
159
50
109
(19)
128
7,179
4,011
0.31
0.20
Federal funds sold
11
4
7
2
5
827,344
837,796
5.59
5.66
Loans (c)
22,921
23,506
(585)
(291)
(294)
939,654
923,791
5.17
5.53
Total interest-earning assets
24,086
25,346
(1,260)
(1,649)
389
95,678
80,314
Noninterest-earning assets
$ 1,035,332
$ 1,004,105
Total assets
Liabilities and equity
Deposits
$ 124,688
$ 124,023
0.38
0.50
NOW accounts
235
310
(75)
(74)
(1)
17,742
15,750
0.44
0.72
Savings accounts
39
56
(17)
(22)
5
180,672
113,038
1.58
1.78
Money market accounts
1,418
996
422
(112)
534
65,380
94,759
0.98
1.71
Money market accounts - institutional
318
805
(487)
(343)
(144)
164,974
152,281
2.52
3.62
CDs, $100M or more
2,064
2,730
(666)
(831)
165
101,889
118,115
1.13
2.42
CDs, broker
573
1,417
(844)
(756)
(88)
150,012
141,542
2.35
3.46
Other time deposits
1,746
2,431
(685)
(779)
94
805,357
759,508
1.60
2.32
Total interest-bearing deposits
6,393
8,745
(2,352)
(2,712)
360
38,955
53,875
3.36
1.86
Short-term/other borrowings
650
497
153
401
(248)
15,828
12,269
2.20
2.19
FHLB advances - long-term
173
133
40
1
39
10,310
10,310
2.91
4.01
Subordinated debt
149
205
(56)
(56)
--
Total interest-bearing
870,450
835,962
1.71
2.31
liabilities
7,365
9,580
(2,215)
(2,487)
272
81,485
81,660
Noninterest-bearing deposits
3,831
6,247
Other liabilities
79,566
80,236
Shareholders' equity
$ 1,035,332
$ 1,004,105
Liabilities and equity
3.46
3.22
Interest rate spread
3.59
3.44
Net interest margin
Net interest income
$16,721
$ 15,766
$ 955
$ 838
$ 117
$ 69,204
$ 87,829
Net earning assets
$ 886,842
$ 841,168
Average deposits
1.45
2.10
Average cost of deposits
93%
100%
Average loan to deposit ratio
(a) This table shows the changes in interest income and interest expense for the comparative periods based on either changes in average volume or changes in average rates for interest-earning assets and interest-bearing liabilities. Changes which are not solely due to rate changes or solely due to volume changes are attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income less non-deductible TEFRA interest expense and was $16 in the first six months 2010 and 2009, respectively.
(c) Average nonaccruing loans have been excluded from total average loans and categorized in noninterest-earning assets.
CONTACT: The Savannah Bancorp, Inc. John C. Helmken II, President and CEO 912-629-6486 Michael W. Harden, Jr., Chief Financial Officer 912-629-6496