Suffolk Bancorp Announces Profit For The Second And Third Quarters Of 2011, Revised Loss For The First Quarter Of 2011, Restated Results For The Third And Fourth Quarters Of 2010

Suffolk Bancorp (NASDAQ: SUBK) (“Suffolk”) today released results of its operations during the third quarter of 2011 which included earnings-per-share of $0.32, an increase from a loss of ($0.32) (restated) during the comparable period of 2010. Net income was $3,072,000, up from a loss of ($3,137,000) (restated) during the same quarter last year. The loss-per-share for the year to date was ($0.13), down from earnings-per-share of $0.33 (restated) a year ago. The net loss for the year to date was ($1,232,000), down from earnings of $3,187,000 (restated) posted during the first nine months of 2010. The key points are:
  • Suffolk returned to profitability during the second quarter of 2011 and remained so in the third quarter of 2011.
  • Suffolk’s capital ratios exceeded all regulatory requirements at September 30, 2011.
  • Suffolk’s allowance for loan losses at September 30, 2011 was $43,693,000, or 4.31 percent of total loans; and at June 30, 2011, $49,911,000, or 4.71 percent of total loans. At March 31, 2011, it was $47,539,000, in comparison to $46,893,000 as previously announced on April 12th, a difference of $646,000 or 1.4 percent over what was disclosed initially. The substance of the restatements reflects the timing of the provision for the allowance rather than the amount. That provision has been reallocated among prior quarters by means of the restatement of the third and fourth quarters of 2010.
  • Suffolk is now current in its filings with the Securities and Exchange Commission.

J. Gordon Huszagh, President and Chief Executive Officer stated, “We are pleased to be able to report the final results of the quarters ended September 30, 2011, June 30, 2011, and March 31, 2011, and the restatement of the quarter ended September 30, 2010 and year ended December 31, 2010. While we regret the delay in reporting our results, we believe that the comprehensive review that we have undertaken was necessary to provide our investors with what we believe to be accurate information. We believe we have an outstanding franchise in a good marketplace, an excellent net interest margin, a substantial allowance for loan losses, and ample capital. These, along with the patience and loyalty of our customers and employees, are what preserved our core banking business throughout this challenging period, and these are the foundation for our future.”

A detailed financial summary for each of the quarters follows the text of this release. The summary for September 30, 2011 starts on page 3. The summary for June 30, 2011 starts on page 6. The summary for March 31, 2011 starts on page 9. The summary for December 31, 2010 starts on page 12. The summary for September 30, 2010 starts on page 15.

With respect to the restatement of the fourth and third quarters of 2010, numerous steps have been taken to address the weaknesses in loan administration and accounting which led to these restatements. These are detailed in each of the five of Suffolk’s reports on Form 10-Q/A, Form 10-K/A, Form 10-K, and Form 10-Q. These filings are available on Suffolk’s website at www.SCNB.com, or through the website of the Securities and Exchange Commission at www.sec.gov.

Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through SCNB, a full-service commercial bank headquartered in Riverhead, New York. Organized in 1890, SCNB has 30 offices in Suffolk County, New York.

Safe Harbor Statement Pursuant to the Private Securities Litigation Reform Act of 1995

This press release includes statements which look to the future. These can include remarks about Suffolk, the banking industry, the economy in general, expectations of the business environment in which Suffolk operates, projections of future performance, and potential future credit experience. These remarks are based upon current management expectations, and may, therefore, involve risks and uncertainties that cannot be predicted or quantified and are beyond Suffolk’s control and are subject to a variety of uncertainties that could cause future results to vary materially from Suffolk’s historical performance, or from current expectations. Factors affecting Suffolk Bancorp include particularly, but are not limited to: changes in interest rates; increases or decreases in retail and commercial economic activity in Suffolk’s market area; variations in the ability and propensity of consumers and businesses to borrow, repay, or deposit money, or to use other banking and financial services; results of regulatory examinations; any failure by Suffolk to comply with our written agreement with the OCC (the “Agreement”) or the individual minimum capital ratios for the Bank established by the OCC; the cost of compliance with the Agreement; failure by Suffolk to maintain effective internal controls over financial reporting; larger-than-expected losses from the sale of assets; potential litigation or regulatory action relating to the matters resulting in Suffolk’s failure to file on time its Quarterly Report on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011, and September 30, 2011 or resulting from the revisions to earnings previously announced on April 12, 2011 or the restatement of its financial statements for the quarterly period ended September 30, 2010 and year ended December 31, 2010; and the potential that net charge-offs are higher than expected or for further increases in our provision for loan losses. Further, it could take Suffolk longer than anticipated to implement its strategic plans to increase revenue and manage non-interest expense, or it may not be possible to implement those plans at all. Finally, new and unanticipated legislation, regulation, or accounting standards may require Suffolk to change its practices in ways that materially change the results of operations.
 

STATISTICAL SUMMARY(unaudited, in thousands of dollars except for share and per share data)
             

3rd Qtr 2011

3rd Qtr 2010
Change 9 Mos. 2011 9 Mos. 2010 Change
EARNINGS

 

restated
restated
Earnings (Loss)-Per-Share - Basic $ 0.32 $ (0.32 ) 200.0 % $ (0.13 ) $ 0.33 (139.4 %)
Cash Dividends-Per-Share - 0.22 (100.0 %) - 0.66 (100.0 %)
Net (Loss) Income 3,072 (3,137 ) 197.9 % (1,232 ) 3,187 (138.7 %)
Net Interest Income 17,025 19,367 (12.1 %) 53,320 57,957 (8.0 %)
 
AVERAGE BALANCES $ 1,572,758 $ 1,692,499 (7.1 %) $ 1,609,507 $ 1,712,563 (6.0 %)
Average Assets
Average Net Loans 1,035,628 1,123,851 (7.9 %) 1,076,457 1,139,414 (5.5 %)
Average Investment Securities 329,713 461,833 (28.6 %) 379,122 462,200 (18.0 %)
Average Interest-Earning Assets 1,511,595 1,590,211 (4.9 %) 1,542,302 1,607,497 (4.1 %)
Average Deposits 1,402,354 1,460,000 (3.9 %) 1,414,657 1,426,597 (0.8 %)
Average Borrowings 289 55,554 (99.5 %) 27,101 110,445 (75.5 %)
Average Interest -Bearing Liabilities 872,426 991,869 (12.0 %) 928,340 1,042,415 (10.9 %)
Average Equity 136,024 145,916 (6.8 %) 134,959 141,038 (4.3 %)
 

RATIOS

Return on Average Equity
9.03 % (8.60 %) 205.0 % (1.22 %) 3.01 % (140.5 %)
Return on Average Assets 0.78 % (0.74 %) 205.4 % (0.10 %) 0.25 % (140.0 %)
Average Equity/Average Assets 8.65 % 8.62 % 0.3 % 8.39 % 8.24 % 1.8 %
Net Interest Margin (FTE) 4.72 % 5.13 % (8.0 %) 4.85 % 5.06 % (4.2 %)
Efficiency Ratio 76.88 % 59.10 % 30.1 % 70.49 % 56.73 % 24.3 %
Tier 1 Leverage Ratio End of Period 8.57 % 8.03 % 6.7 %
Tier 1 Risk-based Capital Ratio End of Period 12.60 % 11.00 % 14.5 %
Total Risk-based Capital Ratio End of Period 13.88 % 12.26 % 13.2 %
 

ASSET QUALITY

during period:Net Charge-offs
$ 7,068 $ 8,885 (20.5 %) $ 8,764 $ 12,274 (28.6 %)
Net Charge-offs/Average Net Loans (annualized) 2.73 % 3.16 % (14.2 %) 1.09 % 1.44 % (24.3 %)

at end of period:Total Non-performing Loans
92,070 32,062 187.2 %
Foreclosed Real Estate ("OREO") 1,800 - 100.0 %
Total Non-performing Assets 93,870 32,062 192.8 %
Allowance/Non-performing Loans 47.46 % 83.15 % (42.9 %)
Allowance/Loans, Net of Discount

4.31
% 2.35 % 83.4 %
Net Loans/Deposits

71.62
% 75.09 % (4.6 %)
 
EQUITY 9,726,814 9,665,245 0.6 %
Shares Outstanding
Common Equity $ 140,204 $ 143,628 (2.4 %)
Book Value Per Common Share 14.41 14.86 (3.0 %)
Tangible Common Equity 139,390 142,814 (2.4 %)
Tangible Book Value Per Common Share 14.33 14.78 (3.0 %)
 

LOAN DISTRIBUTION

at end of period:Commercial, Financial & Agricultural Loans
$ 213,569 $ 250,182 (14.6 %)
Commercial Real Estate Mortgages 433,057 422,158 2.6 %
Real Estate - Construction Loans 62,023 101,535 (38.9 %)
Residential Mortgages (1st and 2nd Liens) 171,515 203,847 (15.9 %)
Home Equity Loans 80,704 85,800 (5.9 %)
Consumer Loans 51,516 69,991 (26.4 %)
Other Loans   504     944   (46.6 %)
Total Loans (Net of Unearned Discounts) $ 1,012,888 $ 1,134,457 (10.7 %)
 
 

CONSOLIDATED STATEMENT OF CONDITION(unaudited, in thousands of dollars except for share data)
         
September 30,
2011     2010 Change
ASSETS restated
Cash & Due From Banks $ 166,966 $ 58,028 187.7 %
Federal Reserve Bank Stock 712 652 9.2 %

Federal Home Loan Bank Stock
1,744 3,531 (50.6 %)

Investment Securities:
Available for Sale, at Fair Value 307,362 446,399 (31.1 %)
Obligations of States & Political Subdivisions, Held to Maturity 9,422 10,050 (6.2 %)
Corporate Bonds & Other Securities   80     100   (20.0 %)
Total Investment Securities 316,864 456,549 (3 0.6 %)
 
Total Loans 1,012,888 1,134,457 (10.7 %)
Allowance for Loan Losses   43,693     26,659   63.9 %
Net Loans 969,195 1,107,798 (12.5 %)
 
Premises & Equipment, Net 26,904 22,368 20.3 %
Other Real Estate Owned, Net 1,800 - 100.0 %
Accrued Interest and Loan Fees Receivable 7,318 7,895 (7.3 %)
Goodwill 814 814 0.0 %
Other Assets   30,502     24,465   24.7 %
TOTAL ASSETS $ 1,522,819   $ 1,682,100   (9.5 %)
 
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits $ 519,604 $ 521,527 (0.4 %)
Saving, N.O.W. & Money Market Deposits 562,203 629,126 (10.6 %)
Time Certificates of $100,000 or More 181,415 214,064 (15.3 %)
Other Time Deposits   89,957     110,561   (18.6 %)
Total Deposits 1,353,179 1,475,278 (8.3 %)
 
Federal Home Loan Bank Borrowings - 40,000 (100.0 %)
Dividend Payable on Common Stock - 2,126 (100.0 %)
Accrued Interest Payable 419 650 (35.5 %)
Other Liabilities   29,017     20,418   42.1 %
TOTAL LIABILITIES   1,382,615     1,538,472   (10.1 %)
 

STOCKHOLDERS' EQUITYCommon Stock (par value $2.50; 15,000,000 shares authorized;

9,726,814 and 9,665,245 shares outstanding at
September 30, 2011 and 2010, respectively) 34,330 34,169 0.5 %
Surplus 24,010 22,784 5.4 %
Treasury Stock at Par (4,005,270 and 4,002,158 shares, respectively) (10,013 ) (10,005 ) (0.1 %)
Retained Earnings   90,148     89,835   0.3 %
138,475 136,783 1.2 %
 
Accumulated Other Comprehensive Income (Loss), Net of Tax   1,729     6,845   (74.7 %)
TOTAL STOCKHOLDERS' EQUITY   140,204     143,628   (2.4 %)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,522,819   $ 1,682,100   (9.5 %)
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands of dollars except for share and per share data)
             
For the 3 Months Ended For the Year to Date
9/30/11   9/30/10 Change 2011   2010 Change
INTEREST INCOME restated restated
Federal Funds Sold & Interest Due from Banks $ 79 $ 3 2,533.3 % $ 140 $ 8 1,650.0 %
United States Treasury Securities 1 71 (98.6 %) $ 96 213 (54.9 %)
Obligations of States & Political Subdivisions 1,544 1,979 (22.0 %) $ 5,332 5,818 (8.4 %)
Mortgage-Backed Securities 1,412 1,888 (25.2 %) $ 4,558 5,957 (23.5 %)
U.S. Government Agency Obligations 44 202 (78.2 %) $ 337 607 (44.5 %)
Corporate Bonds & Other Securities 59 95 (37.9 %) $ 203 320 (36.6 %)
Loans and Loan Fees   15,100   17,464   (13.5 %) $ 47,488   52,545   (9.6 %)

Total Interest Income
18,239 21,702 (16.0 %) 58,154 65,468 (11.2 %)

INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits 435 827 (47.4 %) $ 1,618 2,551 (36.6 %)
Time Certificates of $100,000 or more 471 709 (33.6 %) $ 1,576 2,271 (30.6 %)
Other Time Deposits 307 436 (29.6 %) $ 985 1,365 (27.8 %)
Federal Funds Purchased & Repurchase Agreements 1 - 100.0 % $ 1 2 (50.0 %)
Borrowings   -   363   (100.0 %) $ 654     1,322   (50.5 %)
Total Interest Expense 1,214 2,335 (48.0 %) 4,834 7,511 (35.6 %)
Net Interest Income 17,025 19,367 (12.1 %) 53,320 57,957 (8.0 %)
Provision for Loan Losses   900   14,729   (93.9 %) $ 24,088     26,549   (9.3 %)

Net Interest Income After Provision for Loan Losses
16,125 4,638 247.7 % 29,232 31,408 (6.9 %)

OTHER INCOME
Service Charges on Deposit Accounts 953 1,215 (21.6 %) $ 2,964 3,745 (20.9 %)
Other Service Charges, Commissions & Fees 988 1,007 (1.9 %) $ 2,631 2,591 1.5 %
Fiduciary Fees 213 243 (12.3 %) $ 644 760 (15.3 %)
Net Gain on Sale of Securities Available for Sale - - 0.0 % $ 1,645 12 13,608.3 %
Other Operating Income   236   202   16.8 %   830     689   20.5 %
Total Other Income 2,390 2,667 (10.4 %) 8,714 7,797 11.8 %
OTHER EXPENSE - -
Salaries & Employee Benefits 8,141 7,457 9.2 % $ 23,458 21,682 8.2 %
Net Occupancy Expense 1,435 1,336 7.4 % $ 4,391 4,030 9.0 %
Equipment Expense 506 511 (1.0 %) $ 1,451 1,576 (7.9 %)
Outside Services 1,425 727 96.0 % $ 3,423 1,646 108.0 %
FDIC Assessments 555 862 (35.6 %) $ 2,541 2,089 21.6 %
OREO Expense 182 - 0.0 % $ 293 - 100.0 %
Prepayment Fee on Borrowing - - 0.0 % $ 1,028 - 100.0 %
Other Operating Expense   2,683   2,128   26.1 % $ 7,145     6,280   13.8 %
Total Other Expense 14,927 13,021 14.6 % 43,730 37,303 17.2 %
Income (Loss) Before Provision for Income Taxes 3,588 (5,716 ) (162.8 %) (5,784 ) 1,902 (404.1 %)
Provision for (Benefit from) Income Taxes $ 516   (2,579 ) (120.0 %) $ (4,552 )   (1,285 ) 254.2 %
NET INCOME (LOSS)   3,072 $ (3,137 ) (197.9 %) $ (1,232 ) $ 3,187   (138.7 %)

Average:     Common Shares Outstanding
9,726,948 9,662,328 0.7 % 9,718,809 9,649,550 0.7 %
Dilutive Stock Options   -   -   0.0 %   -     6,408   (100.0 %)
Average Total 9,726,948 9,662,328 0.7 % 9,718,809 9,655,958 0.7 %

EARNINGS PER COMMON SHARE     Basic
$ 0.32 $ (0.32 ) (197.3 %) $ (0.13 ) $ 0.33 (138.4 %)

Diluted                 
$ 0.32 $ (0.32 ) (197.3 %) $ (0.13 ) $ 0.33 (138.4 %)
 
 

STATISTICAL SUMMARY(unaudited, in thousands of dollars except for share and per share data)
             

2nd Qtr 2011

2nd Qtr 2010

Change

6 Mos. 2011

6 Mos. 2010

Change

EARNINGS
Earnings (Loss)-Per-Share - Basic $ 0.34 $ 0.50 (32.0 %) $ (0.44 ) $ 0.66 (166.7 %)
Cash Dividends-Per-Share - 0.22 (100.0 %) - 0.44 (100.0 %)
Net (Loss) Income 3,270 4,792 (31.8 %) (4,304 ) 6,324 (168.1 %)
Net Interest Income 17,888 19,344 (7.5 %) 36,295 38,590 (5.9 %)
 
AVERAGE BALANCES $ 1,629,490 $ 1,720,074 (5.3 %) $ 1,646,784 $ 1,722,749 (4.4 %)
Average Assets
Average Net Loans 1,080,789 1,145,212 (5.6 %) 1,097,209 1,147,334 (4.4 %)
Average Investment Securities 401,341 463,885 (13.5 %) 404,235 462,388 (12.6 %)
Average Interest-Earning Assets 1,553,655 1,612,752 (3.7 %) 1,554,485 1,612,747 (3.6 %)
Average Deposits 1,421,090 1,440,853 (1.4 %) 1,420,880 1,409,629 0.8 %
Average Borrowings 38,222 109,513 (65.1 %) 40,729 138,344 (70.6 %)
Average Interest -Bearing Liabilities 943,304 1,057,269 (10.8 %) 956,730 1,068,106 (10.4 %)
Average Equity 132,152 139,368 (5.2 %) 134,418 138,558 (3.0 %)
 

RATIOS

Return on Average Equity
9.90 % 13.75 % (28.0 %) (6.40 %) 9.13 % (170.1 %)
Return on Average Assets 0.80 % 1.11 % (27.9 %) (0.52 %) 0.73 % (171.2 %)
Average Equity/Average Assets 8.11 % 8.10 % 0.1 % 8.16 % 8.04 % 1.5 %
Net Interest Margin (FTE) 4.86 % 5.05 % (3.8 %) 4.92 % 5.03 % (2.2 %)
Efficiency Ratio 68.35 % 56.45 % 21.1 % 67.58 % 55.54 % 21.7 %
Tier 1 Leverage Ratio June 30 8.03 % 8.19 % (2.0 %)
Tier 1 Risk-based Capital Ratio June 30 11.66 % 11.08 % 5.2 %
Total Risk-based Capital Ratio June 30 12.95 % 12.33 % 5.0 %
 

ASSET QUALITY

during period:
$ 845 $ 3,249 (74.0 %) $ 1,696 $ 3,337 (49.2 %)
Net Charge-offs

Net Charge-offs/Average Net Loans (annualized)

0.31
% 1.13 % (72.6 %)

0.31
% 0.58 % 46.6 %

at end of period:Total Non-performing Loans
58,599 36,097 62.3 %
Foreclosed Real Estate ("OREO") 1,800 - 100.0 %
Total Non-performing Assets 60,399 36,097 67.3 %
Allowance/Non-performing Loans

85.17
%

57.81
% 47.3 %
Allowance/Loans, Net of Discount 4.71 % 1.80 % 161.7 %
Net Loans/Deposits 71.32 % 78.21 % (8.8 %)
 

EQUITY

Shares Outstanding
9,727,031 9,652,708 0.8 %
Common Equity $ 135,116 $ 143,196 (5.6 %)
Book Value Per Common Share 13.89 14.83 (6.3 %)
Tangible Common Equity 134,302 142,382 (5.7 %)
Tangible Book Value Per Common Share 13.81 14.75 (6.4 %)
 

LOAN DISTRIBUTION

at end of period:
$ 239,432 $ 260,674 (8.1 %)
Commercial, Financial & Agricultural Loans
Commercial Real Estate Mortgages 436,511 404,335 8.0 %
Real Estate - Construction Loans 68,148 119,519 (43.0 %)
Residential Mortgages (1st and 2nd Liens) 175,389 209,264 (16.2 %)
Home Equity Loans 81,824 88,805 (7.9 %)
Consumer Loans 57,509 75,576 (23.9 %)
Other Loans   443     1,016  

(56.4
%)
Total Loans (Net of Unearned Discounts) $ 1,059,256 $ 1,159,189 (8.6 %)
 
 

CONSOLIDATED STATEMENTS OF CONDITION(unaudited, in thousands of dollars except for share data)
       
June 30,
2011   2010 Change
ASSETS

Cash & Due From Banks
$ 165,206 $ 48,609 239.9 %
Federal Reserve Bank Stock 712 652 9.2 %
Federal Home Loan Bank Stock 1,744 5,462 (68.1 %)

Investment Securities:

Available for Sale, at Fair Value
321,890 444,435 (27.6 %)
Obligations of States & Political Subdivisions, Held to Maturity 9,603 10,250 (6.3 %)
Corporate Bonds & Other Securities   80     100   (20.0 %)
Total Investment Securities 331,573 454,785 (27.1 %)
 
Total Loans 1,059,256 1,159,189 (8.6 %)
Allowance for Loan Losses   49,911     20,866   139.2 %
Net Loans 1,009,345 1,138,323 (11.3 %)
 
Premises & Equipment, Net 24,982 22,569 10.7 %
Other Real Estate Owned, Net 1,800 - 100.0 %
Accrued Interest and Loan Fees Receivable 6,696 7,022 (4.6 %)
Goodwill 814 814 0.0 %
Other Assets   33,359     24,716   35.0 %
TOTAL ASSETS $ 1,576,231   $ 1,702,952   (7.4 %)
 

LIABILITIES & STOCKHOLDERS' EQUITY

Demand Deposits
$ 524,368 $ 513,781 2.1 %
Saving, N.O.W. & Money Market Deposits 600,320 613,171 (2.1 %)
Time Certificates of $100,000 or More 202,782 223,902 (9.4 %)
Other Time Deposits   87,738     104,627   (16.1 %)
Total Deposits 1,415,208 1,455,481 (2.8 %)
 
Federal Home Loan Bank Borrowings - 82,900 (100.0 %)
Dividend Payable on Common Stock - 2,124 (100.0 %)
Accrued Interest Payable 410 647 (36.6 %)
Other Liabilities   25,497     18,604   37.1 %
TOTAL LIABILITIES   1,441,115     1,559,756   (7.6 %)
 

STOCKHOLDERS' EQUITY

Common Stock (par value $2.50; 15,000,000 shares authorized;

9,727,031 and 9,652,708 shares outstanding atJune 30, 2011 and 2010, respectively)
34,331 34,137 0.6 %
Surplus 24,013 22,464 6.9 %
Treasury Stock at Par (4,005,270 and 4,002,158 shares, respectively) (10,013 ) (10,005 ) (0.1 %)
Retained Earnings   87,077     95,099   (8.4 %)
135,408 141,695 (4.4 %)
 
Accumulated Other Comprehensive Income (Loss), Net of Tax   (292 )   1,501   (119.5 %)
TOTAL STOCKHOLDERS' EQUITY   135,116     143,196   (5.6 %)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,576,231   $ 1,702,952   (7.4 %)
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands of dollars except for share and per share data)
             

For the 3 Months Ended

June 30,

For the 6 Months Ended

June 30,

 
2011   2010 Change 2011   2010

Change

INTEREST INCOME

Federal Funds Sold & Interest Due from Banks
$ 45 $ 3 1,400.0 % $ 61 $ 5

1,120.0

%
United States Treasury Securities 25 71 (64.8 %) 95 142

(33.1

%)
Obligations of States & Political Subdivisions 1,877 1,960 (4.2 %) 3,788 3,839

(1.3

%)
Mortgage-Backed Securities 1,510 1,979 (23.7 %) 3,146 4,069

(22.7

%)
U.S. Government Agency Obligations 139 203 (3 1.5 %) 293 405

(27.7

%)
Corporate Bonds & Other Securities 60 125 (52.0 %) 144 225

(36.0

%)
Loans and Loan Fees   15,940     17,508 (9.0 %)   32,388     35,081

(7.7

%)
Total Interest Income 19,596 21,849 (10.3 %) 39,915 43,766

(8.8

%)
 

INTEREST EXPENSE

Saving, N.O.W. & Money Market Deposits
549 864 (36.5 %) 1,183 1,724

(31.4

%)
Time Certificates of $100,000 or more 523 761 (31.3 %) 1,105 1,562

(29.3

%)
Other Time Deposits 321 453 (29.1 %) 678 929

(27.0

%)
Federal Funds Purchased & Repurchase Agreements - 1 (100.0 %) - 2

(100.0

%)
Borrowings   315     426 (26.1 %)   654     959

(31.8

%)
Total Interest Expense 1,708 2,505 (31.8 %) 3,620 5,176

(30.1

%)
 
Net Interest Income 17,888 19,344 (7.5 %) 36,295 38,590

(5.9

%)
Provision for Loan Losses   3,217     2,983 7.8 %   23,188     11,820

96.2

%
Net Interest Income After Provision for Loan Losses 14,671 16,361 (10.3 %) 13,107 26,770

(51.0

%)
 

OTHER INCOME

Service Charges on Deposit Accounts
1,006 1,264 (20.4 %) 2,011 2,530

(20.5

%)
Other Service Charges, Commissions & Fees 976 920 6.1 % 1,643 1,584

3.7

%
Fiduciary Fees 206 210 (1.9 %) 431 517

(16.6

%)
Net Gain on Sale of Securities Available for Sale 1,645 12 13,608.3 % 1,645 12

13,608.3

%
Other Operating Income   270     216 25.0 %   594     487

22.0

%
Total Other Income 4,103 2,622 56.5 % 6,324 5,130

23.3

%
 

OTHER EXPENSE

Salaries & Employee Benefits
7,772 7,193 8.0 % 15,317 14,225

7.7

%
Net Occupancy Expense 1,422 1,266 12.3 % 2,956 2,694

9.7

%
Equipment Expense 463 532 (13.0 %) 945 1,065

(11.3

%)
Outside Services 1,110 564 96.8 % 1,998 919

117.4

%
FDIC Assessments 855 624 37.0 % 1,986 1,227

61.9

%
OREO Expense (29 ) - (100.0 %) 111 -

100.0

%
Prepayment Fee on Borrowing 1,028 - 100.0 % 1,028 -

100.0

%
Other Operating Expense   2,409     2,220 8.5 %   4,462     4,152

7.5

%
Total Other Expense 15,030 12,399 21.2 % 28,803 24,282

18.6

%
 
Income (Loss) Before Provision for Income Taxes 3,744 6,584 (43.1 %) (9,372 ) 7,618

(223.0

%)
Provision for (Benefit from) Income Taxes   474     1,792 (73.5 %)   (5,068 )   1,294

(491.7

%)
NET INCOME (LOSS) $ 3,270   $ 4,792 (31.8 %) $ (4,304 ) $ 6,324

(168.1

%)
 

Average:     Common Shares Outstanding
9,723,360 9,651,857 0.7 % 9,714,672 9,643,056

0.7

%
Dilutive Stock Options   -     7,915 (100.0 %)   -     7,316

(100.0

%)
Average Total 9,723,360 9,659,772 0.7 % 9,714,672 9,650,372

0.7

%
 

EARNINGS PER COMMON SHARE      Basic

$

0.34
$ 0.50 (32.0 %) $ (0.44 ) $ 0.66

(167.6

%)

Diluted

$

0.34
$ 0.50 (32.0 %) $ (0.44 ) $ 0.66

(167.6

%)
 
 

STATISTICAL SUMMARY

(unaudited, in thousands of dollars except for share and per share data)
             

 

1st Qtr 2011

1st Qtr 2010

Change

EARNINGS
(Loss) Earnings-Per-Share - Basic $ (0.78 ) $ 0.16

(587.5
%)
Cash Dividends-Per-Share - 0.22 (100.0 %)
(Loss) Net Income (7,574 ) 1,532

(594.4
%)
Net Interest Income 18,407 19,246 (4.4 %)
 
AVERAGE BALANCES $ 1,647,044 $ 1,725,399 (4.5 %)
Average Assets
Average Net Loans 1,113,812 1,149,479 (3.1 %)
Average Investment Securities 407,162 460,873 (11.7 %)
Average Interest-Earning Assets 1,555,324 1,612,741 (3.6 %)
Average Deposits 1,420,729 1,378,057 3.1 %
Average Borrowings 43,263 167,497 (74.2 %)
Average Interest -Bearing Liabilities 970,365 1,079,064 (10.1 %)
Average Equity 136,708 137,738 (0.7 %)
 

RATIOS

Return on Average Equity
(22.16 %) 4.45 % (598.0 %)
Return on Average Assets (1.84 %) 0.36 %

(611.1
%)
Average Equity/Average Assets 8.30 % 7.98 % 4.0 %
Net Interest Margin (FTE) 4.99 % 5.02 % (0.6 %)
Efficiency Ratio 66.77 % 54.62 % 22.2 %
Tier 1 Leverage Ratio Mar. 31 7.94 % 7.99 % (0.6 %)
Tier 1 Risk-based Capital Ratio Mar. 31 11.04 % 10.72 % 3.0 %
Total Risk-based Capital Ratio Mar. 31 12.32 % 11.97 % 2.9 %
 

ASSET QUALITY

during period:
$ 851 $ 88 867.0 %
Net Charge-offs

Net Charge-offs/Average Net Loans (annualized)

0.31
% 0.03 % 933.3 %
at end of period:

Total Non-performing Loans
48,339 31,731 52.3 %
Foreclosed Real Estate ("OREO") 3,261 - 100.0 %
Total Non-performing Assets 51,600 31,731 62.6 %
Allowance/Non-performing Loans 98.35 % 66.60 % 47.7 %
Allowance/Loans, Net of Discount 4.33 % 1.80 % 140.6 %
Net Loans/Deposits 74.27 % 83 .49 % (11.0 %)
 

EQUITY

Shares Outstanding
9,712,070 9,643,694 0.7 %
Common Equity $ 130,655 $ 138,866 (5.9 %)
Book Value Per Common Share 13.45 14.40 (6.6 %)
Tangible Common Equity 129,841 138,052 (5.9 %)
Tangible Book Value Per Common Share 13.37 14.32 (6.6 %)
 

LOAN DISTRIBUTION

at end of period:
$ 255,607 $ 279,374 (8.5 %)
Commercial, Financial & Agricultural Loans
Commercial Real Estate Mortgages 437,302 389,904 12.2 %
Real Estate - Construction Loans 76,644 126,678 (39.5 %)
Residential Mortgages (1st and 2nd Liens) 183,971 214,611 (14.3 %)
Home Equity Loans 83,167 83,919 (0.9 %)
Consumer Loans 61,644 78,588

(21.6
%)
Other Loans   487     937   (48.0 %)
Total Loans (Net of Unearned Discounts) $ 1,098,823 $ 1,174,011 (6.4 %)
 
 

CONSOLIDATED STATEMENTS OF CONDITION(unaudited, in thousands of dollars except for share data
       
March 31,
2011   2010 Change

ASSETS

Cash & Due From Banks
$ 82,117 $ 39,758 106.5 %
Federal Reserve Bank Stock 652 652 0.0 %
Federal Home Loan Bank Stock 3,531 9,227 (61.7 %)

Investment Securities:

Available for Sale, at Fair Value
391,072 443,530 (11.8 %)
Obligations of States & Political Subdivisions, Held to Maturity 9,713 10,009 (3.0 %)
Corporate Bonds & Other Securities   80     100   (20.0 %)
Total Investment Securities 400,865 453,639 (11.6 %)
 
Total Loans 1,098,823 1,174,011 (6.4 %)
Allowance for Loan Losses   47,539     21,132   125.0 %
Net Loans 1,051,284 1,152,879 (8.8 %)
 
Premises & Equipment, Net 25,219 22,889 10.2 %
Other Real Estate Owned, Net 3,261 - 100.0 %
Accrued Interest and Loan Fees Receivable 7,946 7,968 (0.3 %)
Goodwill 814 814 0.0 %
Other Assets   35,529     24,193   46.9 %
TOTAL ASSETS $ 1,611,218   $ 1,712,019   (5.9 %)
 

LIABILITIES & STOCKHOLDERS' EQUITY

Demand Deposits
$ 482,479 $ 458,930 5.1 %
Saving, N.O.W. & Money Market Deposits 629,369 587,425 7.1 %
Time Certificates of $100,000 or More 208,739 228,285 (8.6 %)
Other Time Deposits   94,810     106,232   (10.8 %)
Total Deposits 1,415,397 1,380,872 2.5 %
 
Federal Home Loan Bank Borrowings 40,000 170,400 (76.5 %)
Dividend Payable on Common Stock - 2,122 (100.0 %)
Accrued Interest Payable 561 681 (17.6 %)
Other Liabilities   24,605     19,078   29.0 %
TOTAL LIABILITIES   1,480,563     1,573,153   (5.9 %)
 

STOCKHOLDERS' EQUITY

Common Stock (par value $2.50; 15,000,000 shares authorized;

9,712,070 and 9,643,694 shares outstanding atMarch 31, 2011 and 2010, respectively)
34,293 34,115 0.5 %
Surplus 23,788 22,212 7.1 %
Treasury Stock at Par (4,005,270 and 4,002,158 shares, respectively) (10,013 ) (10,005 ) (0.1 %)
Retained Earnings   83,806     92,430   (9.3 %)
131,874 138,752 (5.0 %)
 
Accumulated Other Comprehensive Income (Loss), Net of Tax   (1,219 )   114   (1,169.3 %)
TOTAL STOCKHOLDERS' EQUITY   130,655     138,866   (5.9 %)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,611,218   $ 1,712,019   (5.9 %)
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands of dollars except for share and per share data)
       

For the 3 Months EndedMarch 31,
2011   2010 Change

INTEREST INCOME

Federal Funds Sold & Interest from Bank Deposits

$

16

$

2
700.0 %
United States Treasury Securities 70 71 (1.4 %)
Obligations of States & Political Subdivisions 1,911 1,879 1.7 %
Mortgage-Backed Securities 1,636 2,090 (21.7 %)
U.S. Government Agency Obligations 154 202 (23.8 %)
Corporate Bonds & Other Securities 84 100 (16.0 %)
Loans   16,448     17,573   (6.4 %)
Total Interest Income 20,319 21,917 (7.3 %)
 

INTEREST EXPENSE

Saving, N.O.W. & Money Market Deposits
634 860 (26.3 %)
Time Certificates of $100,000 or more 582 801 (27.3 %)
Other Time Deposits 357 476 (25.0 %)
Federal Funds Purchased & Repurchase Agreements - 1 (100.0 %)
Borrowings   339     533   (36.4 %)
Total Interest Expense 1,912 2,671 (28.4 %)
 
Net Interest Income 18,407 19,246 (4.4 %)
Provision for Loan Losses   19,971     8,837   126.0 %
Net Interest Income After Provision (1,564 ) 10,409 (115.0 %)
 

OTHER INCOME

Service Charges on Deposit Accounts
1,005 1,266 (20.6 %)
Other Service Charges, Commissions & Fees 667 664 0.5 %
Fiduciary Fees 225 307 (26.7 %)
Other Operating Income   324     271   19.6 %
Total Other Income 2,221 2,508 (11.4 %)
 

OTHER EXPENSE

Salaries & Employee Benefits
7,545 7,032 7.3 %
Net Occupancy Expense 1,534 1,428 7.4 %
Equipment Expense 482 533 (9.6 %)
Outside Services 888 356 149.4 %
FDIC Assessments 1,131 603 87.6 %
OREO Expense 140 - 100.0 %
Other Operating Expense   2,053     1,931   6.3 %
Total Other Expense 13,773 11,883 15.9 %
 
Income (Loss) Before Provision for Income Taxes (13,116 ) 1,034 (1,368.5 %)
Provision for (Benefit from) Income Taxes   (5,542 )   (498 ) (1,012.9 %)
NET INCOME (LOSS) $ (7,574

)

$
1,532   (594.4 %)
 

Average:     Common Shares Outstanding
9,705,888 9,634,156 0.7 %
Dilutive Stock Options   -     6,665   (100.0 %)
Average Total 9,705,888 9,640,821 0.7 %
 

EARNINGS PER COMMON SHARE       Basic

$

(0.78

)

$

0.16
(587.5 %)

Diluted

$

(0.78

)

$

0.16
(587.5 %)
 
 

STATISTICAL SUMMARY(unaudited, in thousands of dollars except for share and per share data)
           
EARNINGS

 

4th Qtr 2010

4th Qtr 2009

Change
YTD 2010 YTD 2009 Change

 

restated
restated

Earnings-Per-Share - Basic

$

0.32
$ 0.54 (40.7 %) $ 0.65 $ 2.35 (72.3 %)

Cash Dividends-Per-Share

 

0.15
0.22 (3 1.8 %) 0.81 0.88 (8.0 %)

Net Income

3,069
5,153 (40.4 %) 6,256 22,548 (72.3 %)

Net Interest Income

18,635
18,814 (1.0 %) 76,592 74,336 3.0 %
 

AVERAGE BALANCES

Average Assets

$

1,672,174
$ 1,680,870 (0.5 %) $ 1,702,384 $ 1,662,426 2.4 %

Average Net Loans

1,101,736
1,113,437 (1.1 %) 1,129,917 1,107,294 2.0 %

Average Investment Securities

439,053
470,495 (6.7 %) 456,367 440,222 3.7 %

Average Interest-Earning Assets

1,563,649
1,588,251 (1.5 %) 1,596,384 1,562,686 2.2 %

Average Deposits

1,443,024
1,409,597 2.4 % 1,430,738 1,371,252 4.3 %

Average Borrowings

41,906
104,375 (59.9 %) 93,169 131,986 (29.4 %)

Average Interest -Bearing Liabilities

950,419
1,010,494 (5.9 %) 1,019,227 1,024,352 (0.5 %)

Average Equity

143,392
132,079 8.6 % 141,631 123,205 15.0 %
 

RATIOS

Return on Average Equity

8.56

%
15.61 % (45.2 %) 4.42 % 18.30 % (75.8 %)

Return on Average Assets

0.73

%
1.23 % (40.7 %) 0.37 % 1.36 % (72.8 %)

Average Equity/Assets

8.58

%
7.86 % 9.2 % 8.32 % 7.41 % 12.3 %

Net Interest Margin (FTE)

5.01

%
4.98 % 0.6 % 5.05 % 4.99 % 1.2 %

Efficiency Ratio

61.08

%
58.20 % 4.9 % 57.82 % 57.11 % 1.2 %

Tier 1 Leverage Ratio Dec. 31

8.26

%
8.21 % 0.6 %

Tier 1 Risk-based Capital Ratio Dec. 31

11.36

%
10.74 % 5.8 %

Total Risk-based Capital Ratio Dec. 31

12.62

%
11.73 % 7.6 %
 

ASSET QUALITY

during period:
$ 658 473.3 % $ 16,051 $ 993 1,516.4 %
Net Charge-offs $ 3,777
Net Charge-offs/Average Net Loans (annualized) 1.37 % 0.24 % 470.8 % 1.42 % 0.09 % 1,477.8 %

at end of period:
$ 28,991 $ 19,297 50.2 %

Loans Not Accruing Interest & Loans 90 Days Past Due
Restructured Loans Past Due 90 Days 493 10,075 (95.1 %)
Total Non-performing Loans 29,484 29,372 0.4 %
Foreclosed Real Estate ("OREO") 5,719 - 100.0 %
Total Non-performing Assets 35,203 29,372 19.9 %
Allowance/Non-performing Loans 96.39 % 41.99 % 129.5 %
Allowance/Loans, Net of Discount 2.56 % 1.06 % 141.5 %
Net Loans/Deposits 77.27 % 82.87 % (6.8 %)
 

EQUITY

Shares Outstanding
9,692,312 9,615,494 0.8 %
Common Equity $ 136,820 $ 137,171 (0.3 %)
Book Value Per Common Share 14.12 14.27 (1.1 %)
Tangible Common Equity 136,006 136,357 (0.3 %)
Tangible Book Value Per Common Share 14.03 14.18 (1.1 %)
 

LOAN DISTRIBUTION

at end of period:
$ 259,565 (4.2 %)
Commercial, Financial & Agricultural Loans $ 248,750
Commercial Real Estate Mortgages 431,179 375,652 14.8 %
Real Estate - Construction Loans 82,720 133,431 (38.0 %)
Residential Mortgages (1st and 2nd Liens) 195,993 214,501 (8.6 %)
Home Equity Loans 84,696 82,808 2.3 %
Consumer Loans 67,814 80,352 (15.6 %)
Other Loans   1,127     14,070   (92.0 %)
Total Loans (Net of Unearned Discounts) $ 1,112,279 $ 1,160,379 (4.1 %)
 
 

CONSOLIDATED STATEMENTS OF CONDITION(unaudited, in thousands of dollars except for share and per share data)
         
December 31,
2010     2009 Change
ASSETS restated
Cash & Due From Banks $ 41,149 $ 37,007 11.2 %
Federal Reserve Bank Stock 652 652 0.0 %

Federal Home Loan Bank Stock
3,531 8,346 (57.7 %)

Investment Securities:
Available for Sale, at Fair Value 396,670 437,000 (9.2 %)
Obligations of States & Political Subdivisions, Held to Maturity 9,936 9,243 7.5 %
Corporate Bonds & Other Securities   80     100   (20.0 %)
Total Investment Securities 406,686 446,343 (8.9 %)
 
Total Loans 1,112,279 1,160,379 (4.1 %)
Allowance for Loan Losses   28,419     12,333   130.4 %
Net Loans 1,083,860 1,148,046 (5.6 %)
 
Premises & Equipment, Net 25,548 23,346 9.4 %
Other Real Estate Owned, Net 5,719 - 100.0 %
Accrued Interest Receivable, Net 7,025 7,843 (10.4 %)
Goodwill 814 814 0.0 %
Other Assets   31,883     22,099   44.3 %
TOTAL ASSETS $ 1,606,867   $ 1,694,496   (5.2 %)
 
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits $ 493,630 $ 487,648 1.2 %
Saving, N.O.W. & Money Market Deposits 601,828 578,551 4.0 %
Time Certificates of $100,000 or More 210,096 214,771 (2.2 %)
Other Time Deposits   97,199     104,308   (6.8 %)
Total Deposits 1,402,753 1,385,278 1.3 %
 
Federal Home Loan Bank Borrowings 40,000 150,800 (73.5 %)
Dividend Payable on Common Stock 1,454 2,115 (31.3 %)
Accrued Interest Payable 591 829 (28.7 %)
Other Liabilities   25,249     18,303   38.0 %
TOTAL LIABILITIES   1,470,047     1,557,325   (5.6 %)
 

STOCKHOLDERS' EQUITY

Common Stock (par value $2.50; 15,000,000 shares authorized;

9,692,312 and 9,615,494 shares outstanding atDecember 31, 2010 and 2009, respectively)
34,236 34,031 0.6 %
Surplus 23,368 21,685 7.8 %
Treasury Stock at Par (4,002,158 and 3,996,878 shares, respectively) (10,005 ) (9,992 ) (0.1 %)
Retained Earnings   91,450     93,154   (1.8 %)
139,049 138,878 0.1 %
 
Accumulated Other Comprehensive Loss, Net of Tax   (2,229 )   (1,707 ) (3 0.6 %)
TOTAL STOCKHOLDERS' EQUITY   136,820     137,171   (0.3 %)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,606,867   $ 1,694,496   (5.2 %)
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands of dollars except for share and per share data)
             

For the 3 Months Ended

December 31,

For the Year to Date

December 31,
2010   2009 Change 2010   2009 Change
INTEREST INCOME restated restated
Federal Funds Sold & Interest from Bank Deposits $ 20 $ 3 566.7 % $ 28 $ 51 (45.1 %)
United States Treasury Securities 71 72 (1.4 %) 284 364 (22.0 %)
Obligations of States & Political Subdivisions 1,989 1,833 8.5 % 7,807 7,087 10.2 %
Mortgage-Backed Securities 1,771 2,164 (18.2 %) 7,728 7,546 2.4 %
U.S. Government Agency Obligations 162 260 (37.7 %) 769 2,057 (62.6 %)
Corporate Bonds & Other Securities 79 100 (21.0 %) 399 434 (8.1 %)
Loans   16,746     17,332 (3.4 %)   69,291     69,469 (0.3 %)

Total Interest Income

20,838
21,764 (4.3 %) 86,306 87,008 (0.8 %)
 

INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits 789 898 (12.1 %) 3,340 3,630 (8.0 %)
Time Certificates of $100,000 or more 644 946 (31.9 %) 2,915 3,537 (17.6 %)
Other Time Deposits 424 529 (19.8 %) 1,789 2,531 (29.3 %)
Federal Funds Purchased & Repurchase Agreements 1 - 100.0 % 3 120 (97.5 %)
Borrowings   345     577 (40.2 %)   1,667     2,854 (41.6 %)
Total Interest Expense 2,203 2,950 (25.3 %) 9,714 12,672 (23.3 %)
 
Net-interest Income 18,635 18,814 (1.0 %) 76,592 74,336 3.0 %
Provision for Loan Losses   5,537     1,275 334.3 %   32,086     4,275 650.5 %

Net-interest Income After Provision
13,098 17,539 (25.3 %) 44,506 70,061 (36.5 %)
 

OTHER INCOME
Service Charges on Deposit Accounts 1,061 1,322 (19.7 %) 4,806 5,341 (10.0 %)
Other Service Charges, Commissions & Fees 974 720 35.3 % 3,565 3,306 7.8 %
Fiduciary Fees 216 231 (6.5 %) 976 1,010 (3.4 %)
Gain on Other Real Estate Owned 310 - 100.0 % 310 - 100.0 %
Net Securities Gains 363 - 100.0 % 375 - 100.0 %
Other Operating Income   502     492 2.0 %   1,191     1,461 (18.5 %)

Total Other Income
3,426 2,765 23.9 % 11,223 11,118 0.9 %
 

OTHER EXPENSE
Salaries & Employee Benefits 6,836 7,375 (7.3 %) 28,518 28,267 0.9 %
Net Occupancy Expense 1,369 1,251 9.4 % 5,399 5,088 6.1 %
Equipment Expense 474 572 (17.1 %) 2,050 2,291 (10.5 %)
FDIC Assessments 662 515 28.5 % 2,751 2,717 1.3 %
OREO Expense 882 - 100.0 % 882 - 100.0 %
Other Operating Expense   3,252     2,847 14.2 %   11,178     10,438 7.1 %
Total Other Expense 13,475 12,560 7.3 % 50,778 48,801 4.1 %
 
Income (Loss) Before Provision for Income Taxes 3,049 7,744 (60.6 %) 4,951 32,378 (84.7 %)
Provision for (Benefit From) Income Taxes   (20 )   2,591 (100.8 %)   (1,305 )   9,830 (113.3 %)
NET INCOME $ 3,069   $ 5,153 (40.4 %) $ 6,256   $ 22,548 (72.3 %)
 

Average:     Common Shares Outstanding
9,685,194 9,615,320 0.7 % 9,658,534 9,602,802 0.6 %
Dilutive Stock Options   4,022     19,137 (79.0 %)   4,447     18,175 (75.5 %)
Average Total 9,689,216 9,634,457 0.6 % 9,662,981 9,620,977 0.4 %
 

EARNINGS PER COMMON SHARE        Basic

$

0.32
$ 0.54 (40.7 %) $ 0.65 $ 2.35 (72.3 %)

Diluted

$

0.32
$ 0.53 (39.6 %) $ 0.65 $ 2.34 (72.2 %)
 
 

STATISTICAL SUMMARY(unaudited, in thousands of dollars except for share and per share data)
                 

 

3rd Qtr 2010

3rd Qtr 2009
Change 9 Mos. 2010 9 Mos. 2009 Change

EARNINGS

restated
restated

Earnings-Per-Share - Basic

$

(0.32

)
$ 0.63 (150.8 %) $ 0.33 $ 1.81 (81.8 %)

Cash Dividends-Per-Share

0.22
0.22 0.0 % 0.66 0.66 0.0 %

Net Income

(3,137

)
6,028 (152.0 %) 3,187 17,395 (81.7 %)

Net Interest Income

19,367
18,474 4.8 % 57,957 55,522 4.4 %
 

AVERAGE BALANCES

Average Assets

$

1,692,499
$ 1,683,916 0.5 % $ 1,712,563 $ 1,656,210 3.4 %

Average Net Loans

1,123,851
1,109,161 1.3 % 1,139,414 1,105,224 3.1 %

Average Investment Securities

461,833
422,680 9.3 % 462,200 430,022 7.5 %

Average Interest-Earning Assets

1,590,211
1,587,600 0.2 % 1,607,497 1,560,306 3.0 %

Average Deposits

1,460,000
1,436,122 1.7 % 1,426,597 1,358,330 5.0 %

Average Borrowings

55,554
91,637 (39.4 %) 110,445 141,290 (21.8 %)

Average Interest -Bearing Liabilities

991,869
1,018,949 (2.7 %) 1,042,415 1,029,022 1.3 %

Average Equity

145,916
124,664 17.0 % 141,038 120,214 17.3 %
 

RATIOS

Return on Average Equity

(8.60

%)
19.34 % (144.5 %) 3.01 % 19.29 % (84.4 %)

Return on Average Assets

(0.74

%)
1.43 % (151.7 %) 0.25 % 1.40 % (82.1 %)

Average Equity/Assets

8.62

%
7.40 % 16.5 % 8.24 % 7.26 % 13.5 %

Net Interest Margin (FTE)

5.13

%
4.89 % 4.9 % 5.06 % 4.98 % 1.6 %

Efficiency Ratio

59.10

%
56.66 % 4.3 % 56.73 % 56.74 % (0.0 %)

Tier 1 Leverage Ratio Sept.30

8.03

%
8.00 % 0.4 %

Tier 1 Risk-based Capital Ratio Sept.30

11.00

%
10.76 % 2.2 %

Total Risk-based Capital Ratio Sept.30

12.26

%
11.73 % 4.5 %
 

ASSET QUALITY

during period:

Net Charge-offs

$

8,885
$ 132 6,631.1 % $ 12,274 $ 334 3,574.9 %

Net Charge-offs/Average Net Loans (annualized)

3.16

%
0.05 % 6,260.0 % 1.44 % 0.04 % 3,500.0 %

at end of period:

Loans Not Accruing Interest/Loans Past Due 90 Days

$

32,062
$ 14,025 128.6 %

Restructured Loans Past Due 90 Days

-
10,075 (100.0 %)

Foreclosed Real Estate ("OREO")

-
- -

Total Non-performing Assets

32,062
24,100 33.0 %

Allowance/Non-performing Assets

83.15

%
48.61 % 71.1 %

Allowance/Loans, Net of Discount

2.35

%
1.04 % 126.0 %

Net Loans/Deposits

75.09

%
78.85 % (4.8 %)
 
EQUITY 9,607,360 0.6 %
Shares Outstanding

9,665,245
Common Equity

$

143,628
$ 133,366 7.7 %
Book Value Per Common Share

14.86
13.88 7.1 %
Tangible Common Equity

142,814
132,552 7.7 %
Tangible Book Value Per Common Share

14.78
13.80 7.1 %
 

LOAN DISTRIBUTION

at end of period:

Commercial, Financial & Agricultural Loans

$

250,182
$ 236,195 5.9 %
Commercial Real Estate Mortgages

422,158
366,727 15.1 %
Real Estate - Construction Loans

101,535
135,526 (25.1 %)
Residential Mortgages (1st and 2nd Liens)

203,847
215,782 (5.5 %)
Home Equity Loans

85,800
82,470 4.0 %
Consumer Loans

69,991
83,220 (15.9 %)
Other Loans  

944
    1,428   (33.9 %)
Total Loans (Net of Unearned Discounts)

$

1,134,457
$ 1,121,348 1.2 %
 
 

CONSOLIDATED STATEMENTS OF CONDITION(unaudited, in thousands of dollars except for share and per share data)
         
September 30,
2010     2009 Change
ASSETS restated
Cash & Due From Banks $ 58,028 $ 39,320 47.6 %
Federal Reserve Bank Stock 652 652 0.0 %

Federal Home Loan Bank Stock

 
3,531 6,145 (42.5 %)

Investment Securities:
Available for Sale, at Fair Value 446,399 453,711 (1.6 %)
Obligations of States & Political Subdivisions, Held to Maturity 10,050 14,353 (30.0 %)
Corporate Bonds & Other Securities   100     100   0.0 %
Total Investment Securities 456,549 468,164 (2.5 %)
 
Total Loans 1,134,457 1,121,348 1.2 %
Allowance for Loan Losses   26,659     11,716   127.5 %
Net Loans 1,107,798 1,109,632 (0.2 %)
 
Premises & Equipment, Net 22,368 23,523 (4.9 %)
Accrued Interest Receivable, Net 7,895 7,935 (0.5 %)
Goodwill 814 814 0.0 %
Other Assets   24,465     15,631   56.5 %
TOTAL ASSETS $ 1,682,100   $ 1,671,816   0.6 %
 
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits $ 521,527 $ 495,991 5.1 %
Saving, N.O.W. & Money Market Deposits 629,126 572,247 9.9 %
Time Certificates of $100,000 or More 214,064 230,205 (7.0 %)
Other Time Deposits   110,561     108,812   1.6 %
Total Deposits 1,475,278 1,407,255 4.8 %
 
Federal Funds Purchased - 1,400 (100.0 %)
Federal Home Loan Bank Borrowings 40,000 101,900 (60.7 %)
Dividend Payable on Common Stock 2,126 2,114 0.6 %
Accrued Interest Payable 650 906 (28.3 %)
Other Liabilities   20,418     24,875   (17.9 %)
TOTAL LIABILITIES   1,538,472     1,538,450   0.0 %
 

STOCKHOLDERS' EQUITY

Common Stock (par value $2.50; 15,000,000 shares authorized;

9,665,245 and 9,607,360 shares outstandingat September 30, 2010 and 2009, respectively)
34,169 34,010 0.5 %
Surplus 22,784 21,437 6.3 %
Treasury Stock at Par (4,002,158 and 3,996,878 shares, respectively) (10,005 ) (9,992 ) 0.1 %
Retained Earnings   89,835     90,116   (0.3 %)
136,783 135,571 0.9 %
 
Accumulated Other Comprehensive Income (Loss), Net of Tax   6,845     (2,205 ) (410.4 %)
TOTAL STOCKHOLDERS' EQUITY   143,628     133,366   7.7 %
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,682,100   $ 1,671,816   0.6 %
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands of dollars except for share and per share data)
             
For the 3 Months Ended

September 30,
For the 9 Months Ended

September 30,
2010   2009 Change 2010   2009 Change

restated

restated

INTEREST INCOME

Federal Funds Sold & Interest from Bank Deposits

$

3
$ 44 (93.2 %)

$

8
$ 48 (83.3 %)
United States Treasury Securities 71 94 (24.5 %) 213 292 (27.1 %)
Obligations of States & Political Subdivisions 1,979 1,804 9.7 % 5,818 5,254 10.7 %
Mortgage-Backed Securities 1,888 1,836 2.8 % 5,957 5,382 10.7 %
U.S. Government Agency Obligations 202 354 (42.9 %) 607 1,797 (66.2 %)
Corporate Bonds & Other Securities 95 123 (22.8 %) 320 334 (4.2 %)
Loans   17,464     17,261 1.2 %   52,545     52,137 0.8 %
Total Interest Income 21,702 21,516 0.9 % 65,468 65,244 0.3 %
 

INTEREST EXPENSE

Saving, N.O.W. & Money Market Deposits
827 934 (11.5 %) 2,551 2,732 (6.6 %)
Time Certificates of $100,000 or more 709 960 (26.1 %) 2,271 2,591 (12.4 %)
Other Time Deposits 436 584 (25.3 %) 1,365 2,002 (3 1.8 %)
Federal Funds Purchased & Repurchase Agreements - - - 2 120 (98.3 %)
Borrowings   363     564 (35.6 %)   1,322     2,277 (41.9 %)
Total Interest Expense 2,335 3,042 (23.2 %) 7,511 9,722 (22.7 %)
 
Net-interest Income 19,367 18,474 4.8 % 57,957 55,522 4.4 %
Provision for Loan Losses   14,729     975 1,410.7 %   26,549     3,000 785.0 %
Net-interest Income After Provision 4,638 17,499 (73.5 %) 31,408 52,522 (40.2 %)
 

OTHER INCOME

Service Charges on Deposit Accounts
1,215 1,354 (10.3 %) 3,745 4,019 (6.8 %)
Other Service Charges, Commissions & Fees 1,007 929 8.4 % 2,591 2,586 0.2 %
Fiduciary Fees 243 237 2.5 % 760 779 (2.4 %)
Net Securities Gains - - - 12 - 100.0 %
Other Operating Income   202     246 (17.9 %)   689     969 (28.9 %)
Total Other Income 2,667 2,766 (3.6 %) 7,797 8,353 (6.7 %)
 

OTHER EXPENSE

Salaries & Employee Benefits
7,457 7,190 3.7 % 21,682 20,892 3.8 %
Net Occupancy Expense 1,336 1,250 6.9 % 4,030 3,837 5.0 %
Equipment Expense 511 586 (12.8 %) 1,576 1,719 (8.3 %)
FDIC Assessments 862 517 66.7 % 2,089 2,202 (5.1 %)
Other Operating Expense   2,855     2,491 14.6 %   7,926     7,591 4.4 %
Total Other Expense 13,021 12,034 8.2 % 37,303 36,241 2.9 %
 
Income (Loss) Before Provision for Income Taxes (5,716 ) 8,231 (169.4 %) 1,902 24,634 (92.3 %)
Provision for (Benefit From) Income Taxes   (2,579 )   2,203 (217.1 %)   (1,285 )   7,239 (117.8 %)
NET INCOME $ (3,137 ) $ 6,028 (152.0 %) $ 3,187   $ 17,395 (81.7 %)
 

Average:     Common Shares Outstanding
9,662,328 9,607,023 0.6 % 9,649,550 9,598,583 0.5 %
Dilutive Stock Options   -     19,286 (100.0 %)   6,408     17,976 (64.4 %)
Average Total 9,662,328 9,626,309 0.4 % 9,655,958 9,616,559 0.4 %
 

EARNINGS PER COMMON SHARE       Basic

$

(0.32

)
$ 0.63 (150.8 %) $ 0.33 $ 1.81 (81.8 %)

Diluted

$

(0.32

)
$ 0.63 (150.8 %) $ 0.33 $ 1.81 (81.8 %)
 

Copyright Business Wire 2010

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