EX-99.1 7 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

SECURITY BANK CORPORATION ANNOUNCES

FIRST QUARTER 2009 FINANCIAL RESULTS

AND BANKS ENTER AGREEMENTS WITH FDIC AND STATE

Macon, GA., April 24, 2009 / GlobeNewswire/ — Security Bank Corporation (Nasdaq: SBKC) today reported a net loss of $18.5 million for the first quarter ended March 31, 2009, compared with a net loss of $24.2 million for the first quarter of 2008. Diluted loss for the first quarter of 2009 was $0.79 per share compared to a loss of $1.22 per share for the comparable year ago period. The reduction in net loss for the first quarter of 2009 was primarily driven by a $30.1 million decrease in the provision for loan losses which more than offset a decrease in net interest income of $10.9 million. On a pre-tax, pre-provision basis, losses for the first quarter of 2009 were $8.2 million versus income of $3.8 million for the first quarter of 2008.

Security Bank Corporation also announced today that five of its six banking subsidiaries have entered into Cease and Desist Orders with the Federal Deposit Insurance Corporation (FDIC) and with the State of Georgia Department of Banking and Finance. The orders set forth requirements for the banks to take actions to address capital levels and lending policies, and place restrictions on dividends by the banks to Security Bank Corporation and restrictions on brokered deposits, among other items. Security Bank Corporation has also withdrawn its application to participate in the TARP Capital Purchase Program.

Deposit and retirement accounts continue to be insured for a minimum of $250,000 per depositor by the FDIC through December 2009. Because Security Bank is participating in the FDIC’s Transaction Account Guarantee Program, most types of checking accounts are insured without limit.

Tony E. Collins, Security Bank Corporation’s President and CEO commented, “Our financial results continue to be impacted by the unprecedented economic conditions we are facing, as the residential housing market remains under significant pressure. The consent orders highlight a process that involves working with the FDIC and State to reduce the risks in our lending portfolio and improve the quality of our asset management. We have been working closely with our regulators throughout this process and have already initiated many of the steps outlined in the orders. We greatly appreciate the continued support of our customers and our employees who remain committed to providing our customers with the highest level of service.”


Liquidity

Security Bank Corporation currently has approximately $481 million of available liquidity in the form of cash and cash equivalents, unpledged securities and available secured fed funds lines. This represents approximately 17% of total assets as of March 31, 2009.

Asset Quality

Nonperforming assets (nonaccrual loans and OREO) at the end of first quarter 2009 were $391 million, or 14.0% of total assets compared to 11.5% at the end of the fourth quarter of 2008 and 7.9% at the end of the first quarter in 2008. While Security Bank Corporation sold $7 million of OREO during the first quarter of 2009, new properties totaling approximately $19 million were moved to OREO from nonaccrual loans. Approximately $91 million of loans were placed on nonaccrual status during the first quarter. Security Bank Corporation charged-off approximately $18 million in loans resulting in net charge-offs to average loans of 3.7% annualized for the first quarter of 2009, a decrease from 5.9% in net charge-offs to average loans annualized for the fourth quarter of 2008. Net charge-offs to average loans were 4.4% annualized for the first quarter of 2008. Security Bank Corporation increased its allowance for loan losses to 2.8% of loans receivable at March 31, 2009, or $53.5 million versus 2.3% of loans or $49.7 million at March 31, 2008.

Balance Sheet

Loans receivable totaled $1.93 billion at March 31, 2009, down 12% from $2.18 billion at March 31, 2008. On a sequential basis, loans declined 11% annualized with a 3% annualized decline in the middle and coastal Georgia markets, a 19% annualized decline in the Atlanta market and a 14% annualized decline in Security Real Estate Services, Inc.

Total deposits were $2.40 billion at March 31, 2009 an increase of 4% from $2.31 billion at March 31, 2008 and decreased 1.5% from $2.44 billion at December 31, 2008. Total assets decreased 1% to $2.79 billion at March 31, 2009, compared to $2.82 billion at March 31, 2008, and decreased 2% compared with $2.85 billion at December 31, 2008.

Tangible shareholders’ equity at March 31, 2009 declined to $64.1 million from $179.4 million at March 31, 2008, primarily reflecting net losses incurred during the period.

Net Interest Income

Net interest income for the first quarter of 2009 was $3.9 million, a decrease of 74% from $14.8 million when compared to the first quarter of 2008. The decrease is primarily the result of a decline in the net interest margin and the significant increase in non-performing assets in Security Bank Corporation’s loan portfolio. The net interest margin (on a fully tax-equivalent basis (“FTE”)) was 0.60% for the quarter ended


March 31, 2009, compared to 1.02% for the fourth quarter of 2008 and 2.33% for the comparable period one year ago. The decrease in the net interest margin in the first quarter of 2009 on a year-over-year and sequential quarterly basis was the result of costs associated with the current credit cycle, including carrying costs and reversals of interest for nonaccruing loans, liquidity costs, the decline in market interest rates and the asset-sensitive nature of the balance sheet.

Noninterest Income and Expense

Noninterest income for the first quarter of 2009 decreased $1.0 million to $4.8 million compared to the first quarter of 2008 due primarily to a decrease in mortgage banking fees of $1.0 million. During the fourth quarter of 2008 Security Bank Corporation outsourced its personal mortgage-lending department to a mortgage company in Texas.

Noninterest expense for the first quarter of 2009 was $16.9 million, a decrease of $19.0 million sequentially, and essentially flat with the first quarter 2008 level. Excluding increased credit cycle costs and increases in foreclosure expenses, losses on sales of OREO and FDIC insurance premiums, noninterest expense was down $2.3 million or 22% over the first quarter 2008 level. The decline in controllable noninterest expense was primarily due to reduced salary and benefits expense and the elimination of directors’ fees at the holding company and bank level.

 

Investor Contact:      Lorraine D Miller, CFA
     Senior Vice President
     478.722.6210
Media Contact:      Tom Woodbery
     Senior Vice President
     478.796.6007

This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are “tangible book value,” “tangible equity to tangible assets” and “return on average tangible equity.” Security Bank Corporation’s management uses these non-GAAP measures in its analysis of Security Bank Corporation’s performance.

Tangible book value is defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Security Bank Corporation that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Tangible equity to tangible assets is the ratio of tangible equity defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits, to tangible assets defined as total assets reduced by recorded intangible assets, net of related deferred tax benefits. Tangible equity to tangible assets is an important measure of Security Bank Corporation’s capital strength without the effects of purchase accounting as noted above. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period or year-to-


date period, as applicable) divided by average equity reduced by average goodwill and other intangible assets, net of related deferred tax benefits. Security Bank Corporation’s management includes this measure because it believes that it is important when measuring Security Bank Corporation’s performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and many investors use this measure as part of their analysis of Security Bank Corporation.

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 may be presented by other companies. Please refer to the “Reconciliation Table” in the attached schedules for a more detailed analysis of these non-GAAP measures and the most directly comparable GAAP measures.

About Security Bank Corporation

Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.8 billion at March 31, 2009. Security Bank Corporation operates six community banks with banking offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta.

Security Bank Corporation common stock is traded on the NASDAQ Global Select Market under the ticker symbol “SBKC.” You may obtain copies of all documents that Security Bank Corporation files with the Securities and Exchange Commission, free of charge, at the SEC’s website at www.sec.gov or on Security Bank Corporation’s website at www.securitybank.net under the “Investor Information” tab, including the Cease and Desist Orders referenced in this release that Security Bank Corporation will file on Form 8-K on April 24, 2009. In addition, copies of these documents may also be obtained from us without charge by directing a written request to Security Bank Corporation, 4219 Forsyth Road, Macon, Georgia 31210, Attention: Investor Relations.

Safe Harbor

This press release contains forward-looking statements as defined by federal securities laws, including statements about Security Bank Corporation’s loan loss provisions, capital or liquidity adequacy, deferred tax asset and any potential impairment, net charge-offs, non-performing assets, net interest margin changes, compliance with regulatory orders, the overall economic cycle and its impact on real estate values in Security Bank Corporation’s markets, loan growth, and Security Bank Corporation’s long-term prospects, among others. Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements may address issues involving significant risks, uncertainties, estimates and assumptions made by management. Security Bank Corporation’s ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Security Bank Corporation believes that the expectations and estimates reflected in its forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Please refer to Security Bank Corporation’s public filings with the Securities and Exchange Commission for a summary of important factors and risk factors that could affect Security Bank Corporation’s financial results and operations and its forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Security Bank Corporation does not intend, and undertakes no responsibility to update or revise any forward looking statement, whether as a result of difference in actual results, changes in assumptions or changes in other factors affecting such statements, except as required by law.


Security Bank Corporation

Selected Consolidated Financial Data

(Dollars in Thousands, except Per Share Amounts)

Unaudited

 

     Quarters Ended March 31,  
     2009     2008     % Change  

RESULTS SUMMARY:

      

Net interest income

   $ 3,907     $ 14,799     -73.6 %

Provision for loan losses

     12,108       42,199     -71.3 %

Noninterest income

     4,849       5,862     -17.3 %

Foreclosed property expenses

     1,949       1,373     42.0 %

Losses (gains) on sales of ORE

     2,523       274     820.8 %

Other noninterest expense

     12,439       15,260     -18.5 %

Income taxes

     (1,811 )     (14,247 )   -87.3 %

Net income (loss)

     (18,452 )     (24,198 )   -23.7 %

PER SHARE:

      

Basic earnings (loss)

   $ (0.79 )   $ (1.22 )   -35.2 %

Diluted earnings (loss)

     (0.79 )     (1.22 )   -35.2 %

Cash dividends declared

     —         0.088     -100.0 %

Book value

     2.83       13.34     -78.8 %

Tangible book value

     2.75       7.72     -64.4 %

KEY PERFORMANCE RATIOS (a):

      

Return on average tangible equity

     -97.91 %     -53.31 %  

Return on average assets

     -2.63 %     -3.45 %  

Efficiency ratio

     193.14 %     81.83 %  

Net interest margin (FTE)

     0.60 %     2.33 %  

Net charge-offs to average loans

     3.73 %     4.43 %  

BALANCE SHEET SUMMARY - END OF PERIOD

      

Investment securities

   $ 404,689     $ 306,018     32.2 %

Mortgage loans Held for sale

     —         5,759     -100.0 %

Loans receivable

     1,928,758       2,181,557     -11.6 %

Allowance for loan losses

     53,545       49,749     7.6 %

Total assets

     2,786,149       2,818,477     -1.1 %

Deposits

     2,402,469       2,309,671     4.0 %

Other borrowed money

     289,673       170,066     70.3 %

Shareholders' equity

     65,934       309,876     -78.7 %

Tangible equity to tangible assets

     2.30 %     6.67 %   -65.5 %

ASSET QUALITY - END OF PERIOD

      

Nonaccrual loans

   $ 285,308     $ 186,520     53.0 %

Loans 90 Days Past Due and Accruing

     —         68     -100.0 %

Other real estate owned

     105,581       35,749     195.3 %

Total nonperforming assets

     390,889       222,337     75.8 %

Allowance for loan losses/loans

     2.78 %     2.28 %  

 

(a) Income annualized based on number of days in the period, except efficiency ratio

NOTE: Refer to the attached GAAP to non-GAAP reconciliation


Security Bank Corporation

Average Balance Sheet and Net Interest Income Analysis

(Dollars in Thousands)

Unaudited

 

     Quarter Ended March 31, 2009  
     Average
Balance
   Income/
Expense
    Yield/
Rate
 

ASSETS

       

Earning assets:

       

Interest-bearing deposits and fed funds sold

   $ 300,772    $ 129     0.17 %

Investment securities

     401,072      3,320     3.36 %

Mortgage Loans Held for Sale

     0      0     0.00 %

Loans

     1,955,732      23,891     4.95 %

Other earning assets

     1,238      17     5.57 %

Total earning assets

     2,658,814      27,357     4.17 %

Non-earning assets

     187,659     
           

Total assets

   $ 2,846,473     
           

LIABILITIES AND SHAREHOLDERS’ EQUITY

       

Interest-bearing liabilities:

       

Savings and interest-bearing transaction

   $ 377,679    $ 1,655     1.78 %

Time deposits

     1,921,980      18,907     3.99 %

Borrowings

     295,752      2,875     3.94 %

Total interest-bearing liabilities

     2,595,411      23,437     3.66 %

Noninterest-bearing liabilities:

       

Noninterest bearing deposits

     145,065     

Other noninterest-bearing liabilities

     27,605     

Total liabilities

   $ 2,768,081     
           

Shareholders’ Equity

     78,392     
           

Total liabilities and shareholders’ equity

   $ 2,846,473     
           

Interest rate spread

        0.51 %

Net interest income

      $ 3,920    

Net interest margin (FTE)

        0.60 %  


Security Bank Corporation (SBKC)

Selected Financial Information

(Amounts in thousands, except per share data)

 

     2009    2008    2007
     1st Quarter    Dec. 31/YTD    4th Quarter    3rd Quarter    2nd Quarter    1st Quarter    Dec. 31/YTD

Period-End Balance Sheet

                    

Total Assets

   $ 2,786,149    $ 2,846,054    $ 2,846,054    $ 2,888,353    $ 2,877,383    $ 2,818,477    $ 2,833,071

Interest-Bearing Deposits and Fed Funds Sold

     252,189      277,472      277,472    $ 14,556    $ 94,665    $ 25,466      13,627

Total Securities

     404,689      407,343      407,343      347,020      342,994      306,018      305,399

Mortgage Loans held for Sale

     —        —        —        4,780      6,192      5,759      7,605

Loans:

                    

Commercial Real-Estate

     866,580      906,909      906,909      942,075      983,733      963,384      947,371

Construction/A&D (2)

     623,461      652,806      652,806      715,631      772,179      862,532      898,690

Personal Real-Estate

     158,249      157,405      157,405      152,604      160,878      157,040      158,244

Other

     280,468      264,356      264,356      239,799      225,472      198,601      178,008

Total Loans

     1,928,758      1,981,476      1,981,476      2,050,109      2,142,262      2,181,557      2,182,313

Allowance for loan losses

     53,545      59,437      59,437      60,442      48,452      49,749      31,698

Other earning assets

     1,238      1,238      1,238      1,238      1,238      1,238      1,238

Total Earning Assets

     2,586,874      2,667,529      2,667,529      2,417,703      2,587,351      2,520,038      2,510,182

Cash and Due From Banks

     34,955      37,216      37,216      283,238      117,970      71,313      91,644

Other Real Estate

     105,581      94,717      94,717      83,362      62,814      35,749      28,175

Intangibles:

                    

Goodwill

     —        —        —        18,373      18,373      128,074      128,571

Core-Deposit

     3,038      3,241      3,241      3,444      3,647      3,879      4,125

Deposits:

                    

Demand Deposits

     147,942      153,006      153,006      145,416      172,610      164,842      158,759

Interest bearing deposits

     2,254,527      2,285,130      2,285,130      2,257,138      2,283,016      2,144,829      2,139,946

Total Deposits

     2,402,469      2,438,136      2,438,136      2,402,554      2,455,626      2,309,671      2,298,705

Fed Funds purchased & repo agreements

     25,999      36,844      36,844      31,343      36,084      31,328      68,417

Other borrowed funds

     263,674      263,777      263,777      266,558      180,340      138,738      137,909

Shareholders Equity

     65,934      84,708      84,708      166,662      183,285      309,876      306,693

Average Balance Sheet

                    

Total Assets

   $ 2,846,473    $ 2,870,635    $ 2,900,222    $ 2,863,228    $ 2,877,604    $ 2,818,622    $ 2,591,947

Total Securities

     401,072      338,437      362,556      345,775      348,677      296,395      216,610

Mortgage Loans held for Sale

     —        4,129      1,994      3,869      4,782      5,896      6,328

Loans:

                    

Commercial Real-Estate

     883,298      954,279      918,047      965,881      974,558      958,903      907,729

Construction/A&D

     640,090      777,000      688,792      742,968      802,453      875,131      825,302

Personal Real-Estate

     157,932      157,160      154,547      158,421      157,616      158,069      153,682

Other

     274,412      231,497      262,853      240,954      219,744      201,989      195,286

Total Loans

     1,955,732      2,119,936      2,024,239      2,108,224      2,154,371      2,194,092      2,081,999

Other earning assets

     302,010      161,701      287,946      170,505      100,342      55,246      36,866

Total Earning Assets

     2,658,814      2,624,203      2,676,735      2,628,373      2,608,172      2,551,629      2,341,803

Cash and Due From Banks

     32,114      27,031      29,382      44,079      34,520      35,272      51,442

Other Real Estate

     97,843      63,459      88,808      77,300      53,994      33,299      15,970

Deposits:

                    

Demand Deposits

     145,065      154,173      141,830      157,289      162,222      155,389      163,712

Interest bearing deposits

                    

Savings

     13,862      14,978      14,090      15,112      15,741      14,979      16,005

NOW

     310,956      348,413      302,184      333,136      376,409      382,597      373,522

Money Market

     52,861      86,857      58,768      81,446      96,607      110,976      145,619

Time deposits > $100,000

     1,082,354      1,082,546      1,107,146      1,099,022      1,067,626      1,061,895      892,248

Time deposits < $100,000

     839,626      680,342      790,572      709,688      637,784      575,833      521,923

Total Deposits

     2,444,724      2,367,309      2,414,590      2,395,693      2,356,389      2,301,669      2,113,029

Fed Funds purchased & repo agreements

     32,642      37,535      37,697      32,168      39,601      44,745      43,881

Other borrowed funds

     263,110      199,771      265,201      230,453      171,993      130,379      100,430

Shareholders Equity

     78,392      240,934      160,690      184,340      306,580      313,635      313,504


Security Bank Corporation (SBKC)

Selected Financial Information

(Amounts in thousands, except per share data)

 

    2009     2008     2007  
    1st Quarter     Dec. 31/YTD     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter     Dec. 31/YTD  

Results of Operations

             

Interest Income

  $ 27,344     $ 145,948     $ 31,367     $ 36,150     $ 37,689     $ 40,742     $ 192,840  

Interest Expense

    23,437       98,526       24,544       24,126       23,913       25,943       102,316  

Net Interest Income

    3,907       47,422       6,823       12,024       13,776       14,799       90,524  

Loan loss provision

    12,108       128,070       29,129       26,359       30,383       42,199       32,660  

Service charges on deposit accounts

    1,915       9,183       2,218       2,425       2,253       2,287       9,363  

Securities Gains (Losses)

    2,626       3,334       1,299       —         1       2,034       (3 )

Other income

    308       6,118       402       1,339       2,836       1,541       9,622  

Total noninterest income

    4,849       18,635       3,919       3,764       5,090       5,862       18,982  

Salaries and benefits

    6,255       31,623       7,004       7,803       8,080       8,736       35,061  

Occupancy and equipment

    1,751       6,401       1,503       1,848       1,501       1,549       6,189  

Foreclosed Property Expenses

    1,949       7,003       2,202       2,104       1,324       1,373       2,879  

Losses (Gains) on Sales of ORE

    2,523       8,235       2,487       3,904       1,570       274       1,944  

Other noninterest expense

    4,433       147,826       22,681       5,391       114,779       4,975       21,002  

Total noninterest expense

    16,911       201,088       35,877       21,050       127,254       16,907       67,075  

Pre-tax earnings (loss)

    (20,263 )     (263,101 )     (54,264 )     (31,621 )     (138,771 )     (38,445 )     9,771  

Income Taxes

    (1,811 )     (8,735 )     34,310       (11,472 )     (17,326 )     (14,247 )     3,183  

Net income (loss)

  $ (18,452 )   $ (254,366 )   $ (88,574 )   $ (20,149 )   $ (121,445 )   $ (24,198 )   $ 6,588  

Earnings (loss) per share-basic

  $ (0.79 )   $ (11.36 )   $ (3.81 )   $ (0.87 )   $ (5.23 )   $ (1.22 )   $ 0.35  

Earnings (loss) per share-diluted

  $ (0.79 )   $ (11.36 )   $ (3.81 )   $ (0.87 )   $ (5.23 )     (1.22 )     0.34  

End of period shares outstanding

    23,274,639       23,274,639       23,274,639       23,259,539       23,248,585       23,233,634       18,912,264  

Weighted average diluted shares o/s

    23,274,639       22,387,908       23,265,091       23,247,824       23,235,668       19,810,520       19,225,069  

Tax equivalent adjustment

    13       94       15       15       15       50       445  

Net interest income (FTE)

    3,920       47,516       6,838       12,039       13,791       14,849       90,969  

Effective Tax Rate

    8.94 %     3.32 %     -63.23 %     36.28 %     12.49 %     37.06 %     32.58 %

Stock and related per share data:

             

Book value

  $ 2.83     $ 3.64     $ 3.64     $ 7.17     $ 7.88     $ 13.34     $ 16.22  

Tangible book value

    2.75       3.55       3.55       6.28       7.00       7.72       9.28  

Dividends declared per share

    —         0.1313       —         —         0.0438       0.0875       0.35  

Other Key Ratios/Data:

             

Return on average tangible equity (1)

    -97.91 %     -153.17 %     -250.92 %     -48.95 %     -275.40 %     -53.31 %     3.63 %

Return on average assets (1)

    -2.63 %     -8.86 %     -12.15 %     -2.80 %     -16.97 %     -3.45 %     0.25 %

Net interest margin (FTE) (1)

    0.60 %     1.81 %     1.02 %     1.82 %     2.13 %     2.33 %     3.88 %

Efficiency ratio (FTE)

    192.84 %     303.98 %     333.54 %     133.21 %     673.98 %     81.63 %     61.00 %

Tangible Equity/Tangible Assets

    2.30 %     2.91 %     2.91 %     5.10 %     5.69 %     6.67 %     6.50 %

Loan Performance Data:

             

Nonaccrual loans

  $ 285,308     $ 232,436     $ 232,436     $ 199,907     $ 186,139     $ 186,520     $ 50,635  

Loans 90 Days Past Due and Accruing

    —         146       146       —         —         68       242  

Other real estate (ORE)

    105,581       94,717       94,717       83,362       62,814       35,749       28,175  

Total nonperforming assets

    390,889       327,299       327,299       283,269       248,953       222,337       79,052  

Net charge-offs

    18,000       100,331       30,134       14,369       31,680       24,148       23,298  

Reversal of Interest

    1,456       6,751       1,487       968       1,268       3,028       1,874  

Forfeited Interest from NPA’s

    5,025       16,477       4,773       4,704       4,259       2,741       4,435  

Allowance for loan losses/loans

    2.78 %     3.00 %     3.00 %     2.95 %     2.26 %     2.28 %     1.45 %

NPA’s/Loans plus ORE

    19.21 %     15.76 %     15.76 %     13.28 %     11.29 %     10.03 %     3.58 %

Nonperforming assets/total assets

    14.03 %     11.50 %     11.50 %     9.81 %     8.65 %     7.89 %     2.79 %

Net charge-offs to average loans (1)

    3.73 %     4.73 %     5.92 %     2.71 %     5.91 %     4.43 %     1.12 %

 

(1) The actual number of days in the period was used to annualize income
(2) At March 31, 2009, approximately 60% of loans were residential and 40% of loans were commercial.

NOTE: Refer to the attached GAAP to non-GAAP reconciliation


Security Bank Corporation (SBKC)

GAAP Reconciliation Table

(Amounts in thousands, except per share data)

 

     2009     2008     2007  
     1st Quarter     Dec 31/YTD     4th Quarter     3rd Quarter     2nd Quarter     1st Quarter     Dec 31/YTD  

Reconciliation Table- GAAP to non-GAAP:

              

Book Value per share

   $ 2.83     $ 3.64     $ 3.64     $ 7.17     $ 7.88     $ 13.34     $ 16.22  

Effect of intangible assets per share

     (0.08 )     (0.09 )     (0.09 )     (0.89 )     (0.88 )     (5.62 )     (6.94 )
                                                        

Tangible book value

   $ 2.75     $ 3.55     $ 3.55     $ 6.28     $ 7.00     $ 7.72     $ 9.28  

Equity

   $ 65,934     $ 84,708     $ 84,708     $ 166,662     $ 183,285     $ 309,876     $ 306,693  

Intangible assets

     3,038       3,241       3,241       21,817       22,020       131,953       132,696  

Less tax effect of Core-Deposit Intangible (38%)

     (1,154 )     (1,232 )     (1,232 )     (1,309 )     (1,386 )     (1,474 )     (1,568 )
                                                        

Tangible equity

   $ 64,050     $ 82,699     $ 82,699     $ 146,154     $ 162,651     $ 179,397     $ 175,565  

Assets

   $ 2,786,149     $ 2,846,054     $ 2,846,054     $ 2,888,353     $ 2,877,383     $ 2,818,477     $ 2,833,071  

Intangible assets

     1,884       2,009       2,009       20,508       20,634       130,479       131,129  
                                                        

Tangible assets

   $ 2,784,265     $ 2,844,045     $ 2,844,045     $ 2,867,845     $ 2,856,749     $ 2,687,998     $ 2,701,942  

Equity/Assets

     2.37 %     2.98 %     2.98 %     5.77 %     6.37 %     10.99 %     10.83 %

Effect of intangible assets

     -0.07 %     -0.07 %     -0.07 %     -0.67 %     -0.68 %     -4.32 %     -4.33 %
                                                        

Tangible Equity/Tangible Assets

     2.30 %     2.91 %     2.91 %     5.10 %     5.69 %     6.67 %     6.50 %

Average Equity

   $ 78,392     $ 240,934     $ 160,690     $ 184,340     $ 306,580     $ 313,635     $ 313,504  

Average Intangible assets

     3,165       76,263       21,540       21,944       130,657       132,599       133,878  

Less tax effect of Core-Deposit Intangible (38%)

     (1,203 )     (1,402 )     (1,279 )     (1,357 )     (1,440 )     (1,533 )     (1,763 )
                                                        

Average tangible equity

   $ 76,430     $ 166,073     $ 140,429     $ 163,753     $ 177,363     $ 182,569     $ 181,389  

Net Income (loss)

     (18,452 )   $ (254,366 )   $ (88,574 )   $ (20,149 )   $ (121,445 )   $ (24,198 )   $ 6,588  

Return on average tangible equity (a)

     -97.91 %     -153.17 %     -250.92 %     -48.95 %     -275.40 %     -53.31 %     3.63 %

 

(a) The actual number of days in the period were used to annualize income