StellarOne Corporation Reports Third Quarter Results
- Press Release
- Source: StellarOne Corporation
- On 7:00 am EDT, Wednesday October 28, 2009
CHARLOTTESVILLE, Va., Oct. 28, 2009 (GLOBE NEWSWIRE) -- StellarOne Corporation (Nasdaq:STEL - News) (StellarOne) today reported a third quarter 2009 net loss of $7.7 million and a net loss available to common shareholders, which deducts from net loss the dividends and discount accretion on preferred stock, of $8.1 million, or $0.36 per diluted common share. Those results compare to net income of $2.0 million, or diluted earnings per share of $0.09 during the same period in the prior year, and a net loss to common shareholders of $785 thousand or $0.03 per diluted common share recognized for the second quarter of this year.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| STEL | 10.29 | +0.12 |
Highlights for the quarter include:
* Continuing earnings impact from credit losses. As pre-announced on October 9, 2009, the results for the third quarter of 2009 were impacted by a provision for loan losses totaling $20.1 million for the period, which compares to a provision for loan losses of $6.5 million during the second quarter of 2009 and $6.0 million for the same quarter in the prior year. Risk rating downgrades, increasing historical loss experience, the economic climate and other environmental factors necessitated the additional allowances. * Improvement in pre-tax pre-provision earnings sequentially. Pre-tax pre-provision earnings amounted to $7.0 million for the quarter, an increase of $1.3 million or 22.7% compared to second quarter of this year, and a decrease of $1.8 million or 20.2% compared to the same period prior year. * Reduction in non-performing assets and relatively stable levels excluding the benefit of charge-offs taken during the quarter; improved allowance for loan loss coverage for both performing (1.85%) and non-performing (67.0%) loans receivable. * Tax equivalent revenues of $30.3 million for the quarter, essentially flat with $30.4 million recorded in the second quarter of this year, and down from $32.5 million for the same quarter in the prior year. Margin compression abated during the quarter on the strength of liability re-pricing. * Efficiency improvement marked by stable revenues and reduced overhead as compared to second quarter. * A continuance of strong levels of capital and liquidity, with a tangible common equity ratio of 9.35%, and tier 1 risk-based and total risk-based capital ratios of 13.14% and 14.40%, respectively, at September 30, 2009.
Nonperforming Asset Levels Decline But Credit Losses Increase
StellarOne's ratio of non-performing assets as a percentage of total assets decreased to 2.27% as of September 30, 2009, compared to 2.60% as of June 30, 2009 and increased when compared to 1.62% at September 30, 2008. Non-performing assets totaled $67.7 million at September 30, 2009, compared to $79.6 million at June 30, 2009. Annualized net charge-offs as a percentage of average loans receivable amounted to 2.47% for the third quarter of 2009, compared to 1.20% for the second quarter of this year and 0.44% for the same quarter in the prior year. Net charge-offs for the third quarter totaled $13.9 million and were up $7.0 million compared to the $6.9 million recognized during the second quarter of this year and up $11.4 million compared to $2.5 million during the same quarter of last year.
The primary concentration of credit issues within the portfolio continues to be the residential development and construction loan segment of our portfolio, with emphasis on a concentration at Smith Mountain Lake, Virginia (SML). Of the total nonaccrual loans of $61.3 million at September 30, 2009, approximately $33.2 million are residential development and construction loans, of which approximately $21.5 million are SML related.
StellarOne recorded a provision for loan losses of $20.1 million for the third quarter of 2009, an increase of $13.6 million compared to the second quarter of this year, and $6 million for the same period in the prior year. The third quarter provision compares to net charge-offs of $13.9 million for the quarter, resulting in an allowance as a percentage of total loans of 1.85% or up 29 basis points when compared to 1.56% for June 30, 2009. The allowance represents 67.0% of non-performing loans at September 30, 2009, compared to 47.8% of non-performing loans at June 30, 2009.
Noninterest Income Contracts on Mortgage Banking Revenue Decrease
On an operating basis, which excludes gains and losses from sales of assets, total non-interest income amounted to $7.7 million for the third quarter of 2009, a decrease of $550 thousand or 6.6% from $8.3 million for the second quarter of this year, and an increase of $660 thousand or 9.31% from $7.1 million for the same period in the prior year. Mortgage banking revenue totaled $1.8 million for the third quarter, a decrease of $300 thousand or 14.4% compared to $2.1 million for the second quarter of this year, and an increase of $1.2 million or over 100% compared to the third quarter of the prior year. The elevated level of secondary mortgage originations reflects the continuing favorable interest rate environment. Retail banking fee income amounted to $4.3 million for the third quarter, an increase of $216 thousand or 5.3% compared to $4.1 million for the second quarter of this year, largely a result of more NSF charge activity and a higher realization rate associated with these fees. Wealth management revenues from trust and brokerage fees for the third quarter were $1.1 million or essentially flat compared to $989 thousand in the second quarter of this year. Revenues from this line of business remain suppressed due to lower market valuations for assets under management. Revenues from other miscellaneous income sources for the third quarter were $201 thousand, down $579 thousand or 74.2% compared to $780 thousand for the second quarter of this year. This variance related principally to seasonal insurance related revenues recorded in the second quarter and losses on pass-through investments accounted for under the equity method.
Net Interest Income and Margin Stabilize
Net interest income, on a tax-equivalent basis, amounted to $22.7 million for the third quarter, which compares to $22.7 for second quarter of this year and $27.4 million for the same period in the prior year. The net interest margin was 3.30% for the third quarter, compared to 3.34% for the second quarter of this year. The average yield on earning assets decreased 18 basis points to 5.11% as compared to 5.29% for the second quarter of this year, which was substantially offset by improvement in the cost of interest bearing liabilities, which contracted 15 basis points from 2.31% during the second quarter to 2.16% during the third quarter of this year. The repricing sensitivity of interest bearing liabilities accelerated relative to interest earning assets during the third quarter as a higher percentage of the CD portfolio repriced. This repricing relationship is expected to continue during the fourth quarter as the net interest margin is anticipated to improve.
Noninterest Expense Decreases
Non-interest expense for the third quarter amounted to $22.7 million, or down $1.4 million or 5.8% when compared to the $24.1 million for the second quarter of this year and down $411 thousand or 1.8% when compared to the same quarter in the prior year. Excluding the increase in FDIC insurance, non-interest expense is down $909 thousand or 4.0% compared with the third quarter of last year. A special assessment from the FDIC totaling $1.3 million, which was paid in September 2009, was accrued during the second quarter and accounted for most of decrease as compared to the second quarter of this year. Exclusive of the special assessment, noninterest expense was relatively flat compared to the second quarter of this year. StellarOne's efficiency ratio was 74.77% for the third quarter of 2009, compared to 77.58% for the second quarter of 2009, reflecting the decrease in noninterest expense.
Capital Levels Remain Strong
StellarOne's capital level remains strong during the economic downturn. The period-end tangible common equity ratio was 9.35% at September 30, 2009 compared to 9.27% at June 30, 2009. Tier 1 risk-based and total risk-based capital ratios were 13.14% and 14.40%, respectively, at September 30, 2009 compared to 13.47% and 14.72% at June 30, 2009. Excluding the $30 million in preferred stock issued in connection with participation in the TARP program, StellarOne's tier 1 risk-based common ratio was 11.95% compared to 12.28% at June 30, 2009. Shareholder's equity, excluding the preferred stock, represented 11.90% of total assets at September 30, while book value per common share at September 30, 2009 was $15.66 per share. All risk-based capital ratios remain well above regulatory standards for well-capitalized banks.
Deposit Growth Enhances Strong Liquidity
Average loans for the third quarter of 2009 were $2.26 billion, remaining relatively flat when compared to $2.29 billion for the second quarter. Average securities were $344.2 million for the third quarter, up $17.0 million or 5.2% from $327.2 million for the second quarter of this year. Average deposits for the third quarter were $2.43 billion, up $21.2 million or 0.9% compared to $2.41 billion for the second quarter of this year. Average interest bearing deposits increased approximately $25.0 million while non-interest bearing deposits contracted approximately $3.8 million. Total average earning assets were $2.73 billion for the third quarter, or flat when compared to the second quarter of this year. At September 30, 2009, total assets were $2.98 billion, compared to $3.06 billion at June 30, 2009. Cash and cash equivalents were $148.4 million at September 30, 2009, a decrease of $36.0 million or 19.5% compared to $184.4 million at June 30, 2009. Shareholder's equity at September 30, 2009 was $384.9 million, a decrease of $4.8 million or 1.2% compared to June 30, 2009.
About StellarOne
StellarOne Corporation is a traditional community bank offering a full range of business and consumer banking services, including trust and wealth management services. Through the activities of its sole subsidiary, StellarOne Bank, StellarOne operates 58 full-service financial centers, one loan production office, and 66 ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia.
Earnings Webcast
To hear a live webcast of StellarOne's third quarter 2009 earnings conference call at 10:00 a.m. (EDT) today, please visit our website at www.stellarone.com and click on the Investor Relations section for detailed instructions on how to participate. Replays of the conference call will be available from 1:00 p.m. (EDT) on Wednesday, October 28, 2009 through 11:59 p.m. (EDT) on Wednesday, November 4, 2009, by dialing toll free (888) 203-1112 and using passcode #8884079.
Non-GAAP Financial Measures
This report refers to the efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis and non-interest income excluding gains or losses on securities, fixed assets, and foreclosed assets. It also refers to operating earnings, which reflects net income and associated performance ratios adjusted for non-recurring expenses associated with mergers, asset gains and losses or expenses that are unusual in nature. Such information is not in accordance with generally accepted accounting principles in the United States (GAAP) and should not be construed as such. These are non-GAAP financial measures that we believe provide investors with important information regarding our operational efficiency. Comparison of our efficiency ratio or operating earnings with those of other companies may not be possible because other companies may calculate them differently. Pre-tax, pre-provision earnings, which adds back provision and tax expense to net income, is used to demonstrate a more representative comparison of operational performance without the volatility of credit quality that is typically present in times of economic stress. Management believes such financial information is meaningful to the reader in understanding operating performance but cautions that such information should not be viewed as a substitute for GAAP. StellarOne, in referring to its net income, is referring to income under GAAP.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. When we use words such as "believes," "expects," "anticipates" or similar expressions, we are making forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date thereof. StellarOne wishes to caution the reader that factors, such as those listed below, in some cases have affected and could affect StellarOne's actual results, causing actual results to differ materially from those in any forward-looking statement. These factors include: (i) expected cost savings from StellarOne's acquisitions and dispositions, (ii) competitive pressure in the banking industry or in StellarOne's markets may increase significantly, (iii) changes in the interest rate environment may reduce margins, (iv) general economic conditions, either nationally or regionally, may be less favorable than expected resulting in, among other things, credit quality deterioration, (v) changes may occur in banking legislation and regulation, (vi) changes may occur in general business conditions, (vii) changes may occur in the securities markets, and (viii) the impact of governmental restrictions on entities participating in the US Treasury Department Capital Purchase Program. Please refer to StellarOne's filings with the Securities and Exchange Commission for additional information, which may be accessed at www.StellarOne.com under "Investor Relations," "SEC Filings & Other Documents."
NOTE: Risk-based capital ratios are preliminary.
SELECTED FINANCIAL DATA
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands, except per share data)
SUMMARY INCOME Three Months Ended Nine Months Ended
STATEMENT September September
--------------------- ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Interest income -
taxable equivalent $ 35,150 $ 42,540 $ 107,533 $ 118,366
Interest expense 12,474 15,120 39,311 42,952
---------- ---------- ---------- ----------
Net interest income
- taxable
equivalent 22,676 27,420 68,222 75,414
Less: taxable
equivalent
adjustment 530 602 1,443 1,748
---------- ---------- ---------- ----------
Net interest income 22,146 26,818 66,779 73,666
Provision for loan
and lease losses 20,050 6,000 34,300 9,787
---------- ---------- ---------- ----------
Net interest income
after provision for
loan and lease
losses 2,096 20,818 32,479 63,879
Noninterest income 7,583 5,084 22,224 17,895
Noninterest expense 22,748 23,159 69,029 66,806
(Benefit) provision
for income taxes (5,389) 714 (6,466) 4,712
---------- ---------- ---------- ----------
Net (loss) income (7,680) 2,029 (7,860) 10,256
Dividends and
accretion on
preferred stock (378) -- (1,122) --
Accretion of
preferred stock
discount (86) -- (245) --
---------- ---------- ---------- ----------
Net (loss) income
available to common
shareholders $ (8,144) $ 2,029 $ (9,227) $ 10,256
========== ========== ========== ==========
Earnings (Loss)
per share available
to common
shareholders
Basic $ (0.36) $ 0.09 $ (0.41) $ 0.51
Diluted $ (0.36) $ 0.09 $ (0.41) $ 0.51
SUMMARY AVERAGE Three Months Ended Nine Months Ended
BALANCE SHEET September September
--------------------- ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Total loans $2,260,411 $2,279,282 $2,278,781 $2,066,251
Total securities 344,249 343,334 327,459 331,957
Total earning assets 2,728,401 2,683,757 2,706,903 2,449,972
Total assets 3,012,564 2,992,850 2,992,852 2,719,226
Total deposits 2,428,693 2,380,468 2,388,587 2,109,783
Shareholders' Equity 389,573 365,086 391,491 317,750
Three Months Ended Nine Months Ended
PERFORMANCE RATIOS September September
--------------------- ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Return on average
assets -1.01% 0.27% -0.35% 0.50%
Return on average
equity -7.86% 2.21% -2.68% 4.31%
Return on average
realized equity (A) -7.94% 2.19% -2.68% 4.31%
Net interest margin
(taxable equivalent) 3.30% 4.06% 3.37% 4.11%
Efficiency (taxable
equivalent) (B) 74.77% 66.63% 75.60% 69.60%
Three Months Ended Nine Months Ended
CREDIT QUALITY September September
--------------------- ---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Allowance for loan
losses:
Beginning of period $ 34,923 $ 28,615 $ 30,464 $ 15,082
Provision for loan
losses 20,050 6,000 34,300 9,787
Charge-offs (14,571) (2,686) (25,796) (5,212)
Recoveries 638 172 2,072 905
---------- ---------- ---------- ----------
Net charge-offs (13,933) (2,514) (23,724) (4,307)
Allowance acquired
via acquisition -- -- -- 11,539
---------- ---------- ---------- ----------
End of period $ 41,040 $ 32,101 $ 41,040 $ 32,101
========== ========== ========== ==========
Nine Months Ended
September 30 September
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Non accrual loans $ 61,292 $ 42,617
Loans past due 90
days accruing
interest 938 1,554
Foreclosed assets 5,437 4,189
---------- ----------
Total
non-performing
assets $ 67,667 $ 48,360
========== ==========
Nonperforming
assets as a % of
total assets: 2.27% 1.62%
Nonperforming assets
as a % of loans plus
foreclosed assets 3.04% 2.22%
Allowance for loan
losses as a % of
total loans 1.85% 1.40%
Net charge-offs as
a % of average
loans outstanding 2.47% 0.44% 1.39% 0.28%
CAPITAL MANAGEMENT September 30
--------------------- ----------------------
2009 2008
---------- ----------
Tier 1 risk-based
capital ratio 13.14% 12.17%
Tangible equity ratio 10.39% 9.65%
Tangible common
equity ratio 9.35% 9.65%
Period end shares
issued and
outstanding 22,661,007 22,599,223
Book value per
common share 15.66 16.31
Tangible book value
per common share 11.96 12.38
Three Months Ended Nine Months Ended
September September
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Shares issued 8,215 1,527 55,944 11,803,280
Average common shares
issued and
outstanding 22,657,474 22,599,189 22,639,473 20,095,261
Average diluted
common shares issued
and outstanding 22,707,904 22,669,384 22,689,945 20,164,890
Cash dividends paid
per common share $ 0.04 $ 0.16 $ 0.24 $ 0.48
SUMMARY ENDING September 30
BALANCE SHEET
--------------------- ----------------------
2009 2008
---------- ----------
Total loans $2,221,914 $2,285,949
Total securities 345,779 374,080
Total earning assets 2,723,516 2,690,395
Total assets 2,982,264 2,985,858
Total deposits 2,404,421 2,349,916
Shareholders' Equity 384,927 364,967
Book value per share $ 16.99 $ 16.31
OTHER DATA
End of period full
time employees 825 841
NOTES:
(A) Excludes the effect on average stockholders' equity of
unrealized gains (losses) that result from changes in market
values of securities and other comprehensive pension expense.
(B) Computed by dividing non-interest expense by the sum of net
interest income and non-interest income, net of gains or
losses on securities, fixed assets and foreclosed assets.
This is a non-GAAP financial measure, which we believe
provides investors with important information regarding our
operational efficiency. Comparison of our efficiency ratio
with those of other companies may not be possible, because
other companies may calculate the efficiency ratio differently.
(C) Individual amounts shown above are calculated from actual, not
rounded amounts in the thousands, which appear above.
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands, except per share data)
SELECTED BALANCE SHEET DATA 9/30/2009 9/30/2008
--------- ---------
Assets
Cash and cash equivalents $ 148,398 $ 80,844
Securities available for sale 345,331 373,155
Securities held to maturity 448 925
Total securities 345,779 374,080
Mortgage loans held for sale 45,739 8,975
Real estate - construction 319,067 386,423
Real estate - 1-4 family residential 726,788 746,740
Real estate - commercial
and multifamily 914,986 845,026
Commercial, financial and
agricultural 207,346 227,503
Consumer loans 46,908 64,551
All other loans 6,819 15,706
Total loans 2,221,914 2,285,949
Deferred loan costs 1,009 1,056
Allowance for loan losses (41,040) (32,101)
Net loans 2,181,883 2,254,904
Premises and equipment, net 84,834 87,510
Core deposit intangibles, net 8,961 10,704
Goodwill 74,880 74,488
Bank owned life insurance 29,866 28,572
Foreclosed assets 5,437 4,189
Other assets 56,487 61,592
Total assets 2,982,264 2,985,858
Liabilities
Deposits:
Noninterest bearing deposits 312,217 333,826
Money market & interest checking 842,536 720,308
Savings 194,885 198,232
CD's and other time deposits 1,054,783 1,097,550
Total deposits 2,404,421 2,349,916
Federal funds purchased and
securities sold under agreements to
repurchase 572 708
Federal Home Loan Bank advances 145,000 220,717
Subordinated debt 32,991 32,991
Other liabilities 14,353 16,559
Total liabilities 2,597,337 2,620,891
Stockholders' equity
Preferred stock 28,310 --
Common stock 22,661 22,599
Additional paid-in capital 230,080 225,411
Retained earnings 98,992 118,273
Accumulated other comprehensive
income (loss), net 4,884 (1,316)
Total stockholders' equity 384,927 364,967
Total liabilities and stockholders'
equity $2,982,264 $2,985,858
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands)
For the Percent
Three Months Ended Increase
9/30/2009 9/30/2008 (Decrease)
--------- --------- ----------
Interest Income
Loans, including fees $ 30,954 $ 37,619 -17.72%
Federal funds sold and deposits
in other banks 74 291 -74.57%
Investment securities:
Taxable 2,284 2,829 -19.26%
Tax-exempt 1,112 888 25.23%
Dividends 195 311 -37.30%
Total interest income 34,619 41,938 -17.45%
Interest Expense
Deposits 10,857 12,839 -15.44%
Federal funds repurchased and
securities sold under agreements
to repurchase 4 4 0.00%
Federal Home Loan Bank advances
and other borrowings 1,320 1,795 -26.46%
Subordinated debt 292 481 -39.29%
Other borrowings -- 1 -100.00%
Total interest expense 12,473 15,120 -17.51%
Net interest income 22,146 26,818 -17.42%
Provision for loan losses 20,050 6,000 >100.00%
Net interest income after
provision for loan losses 2,096 20,818 -89.93%
Noninterest Income
Retail banking fees 4,329 4,083 6.02%
Commissions and fees from
fiduciary activities 736 984 -25.20%
Brokerage fee income 369 316 16.77%
Mortgage banking-related fees 1,783 607 >100.00%
Losses on sale of premises and
equipment (17) -- N/A
Gains (losses) on securities
available for sale 31 (333) >100.00%
Losses on sale of foreclosed assets (177) (1,669) -89.39%
Income from bank owned life
insurance 328 359 -8.64%
Other operating income 201 737 -72.73%
Total noninterest income 7,583 5,084 49.15%
Noninterest Expense
Compensation and employee benefits 11,027 11,251 -1.99%
Net occupancy 2,121 2,040 3.97%
Supplies and equipment 2,069 2,202 -6.04%
Amortization-intangible assets 432 438 -1.37%
Marketing 404 565 -28.50%
State franchise taxes 574 556 3.24%
FDIC insurance 1,159 661 75.34%
Data processing 391 726 -46.14%
Professional fees 609 622 -2.09%
Telecommunications 452 513 -11.89%
Other operating expenses 3,510 3,585 -2.09%
Total noninterest expense 22,748 23,159 -1.77%
(Loss) income before income taxes (13,069) 2,743 >100.00%
Income tax (benefit) expense (5,389) 714 >100.00%
Net (loss) income $(7,680) $2,029 >100.00%
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands)
For the Percent
Nine Months Ended Increase
9/30/2009 9/30/2008 (Decrease)
--------- --------- ----------
Interest Income
Loans, including fees $ 95,140 $ 104,088 -8.60%
Federal funds sold and deposits
in other banks 158 853 -81.48%
Investment securities:
Taxable 7,293 8,039 -9.28%
Tax-exempt 2,932 2,720 7.79%
Dividends 568 918 -38.13%
Total interest income 106,091 116,618 -9.03%
Interest Expense
Deposits 33,868 35,501 -4.60%
Federal funds purchased and
securities sold under agreements
to repurchase 11 64 -82.81%
Federal Home Loan Bank advances
and other borrowings 4,441 5,334 -16.74%
Subordinated debt 992 1,411 -29.70%
Commercial paper -- 635 -100.00%
Other borrowings -- 7 -100.00%
Total interest expense 39,312 42,952 -8.47%
Net interest income 66,779 73,666 -9.35%
Provision for loan losses 34,300 9,787 >100.00%
Net interest income after
provision for loan losses 32,479 63,879 -49.16%
Noninterest Income
Retail banking fees 12,153 10,546 15.24%
Commissions and fees from
fiduciary activities 2,238 2,952 -24.19%
Brokerage fee income 867 954 -9.12%
Mortgage banking-related fees 5,290 2,836 86.53%
Losses on sale of premises and
equipment (107) (64) 67.19%
Gains (losses) on securities
available for sale 45 (95) >100.00%
Losses on sale of foreclosed
assets (797) (2,428) -67.17%
Income from bank owned life
insurance 962 856 12.38%
Other operating income 1,573 2,338 -32.72%
Total noninterest income 22,224 17,895 24.19%
Noninterest Expense
Compensation and employee benefits 32,390 34,182 -5.24%
Net occupancy 6,375 5,035 26.61%
Supplies and equipment 6,475 5,913 9.50%
Amortization-intangible assets 1,305 1,130 15.49%
Marketing 914 1,813 -49.59%
State franchise taxes 1,744 1,535 13.62%
FDIC insurance 4,352 776 >100.00%
Data processing 1,893 2,801 -32.42%
Professional fees 1,602 1,836 -12.75%
Telecommunications 1,396 1,260 10.79%
Other operating expenses 10,583 10,525 0.55%
Total noninterest expense 69,029 66,806 3.33%
Income before income taxes (14,326) 14,968 >100.00%
Income tax (benefit) expense (6,466) 4,712 >100.00%
Net (loss) income $ (7,860) $ 10,256 >100.00%
STELLARONE CORPORATION
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Dollars in thousands)
For the Three Months Ended September 30,
(unaudited)
-----------------------------------------------------
2009 2008
-------------------------- -------------------------
Dollars Average Interest Average Average Interest Average
in thousands Balance Inc/Exp Rates Balance Inc/Exp Rates
------------ ---------- ------- ----- ---------- -------------
Assets
Loans
receivable,
net $2,260,411 $31,055 5.45% $2,279,282 $37,744 6.59%
Investment
securities
Taxable 232,267 2,311 3.89% 256,426 3,155 4.81%
Tax exempt 111,982 1,710 5.98% 86,908 1,366 6.15%
---------- ------- ----- ---------- ------- ----
Total
investments 344,249 4,021 4.57% 343,334 4,521 5.15%
Interest
bearing
deposits 54,109 36 0.26% 735 3 1.60%
Federal
funds sold 69,632 38 0.21% 60,406 272 1.76%
---------- ------- ----- ---------- ------- ----
467,990 4,095 3.42% 404,475 4,796 4.64%
---------- ------- ---------- -------
Total
earning assets 2,728,401 $35,150 5.11% 2,683,757 $42,540 6.30%
------- -------
Total
nonearning
assets 284,163 309,093
---------- ----------
Total assets $3,012,564 $2,992,850
---------- ----------
Liabilities
and
Stockholders'
Equity
Interest-
bearing
deposits
Interest
checking $ 536,184 $ 1,276 0.94% $ 507,990 $ 439 0.34%
Money market 312,479 1,199 1.52% 232,802 1,096 1.87%
Savings 194,314 431 0.88% 202,329 1,935 3.79%
Time deposits:
Less than
$100,000 713,888 5,070 2.82% 754,557 6,014 3.16%
$100,000
and more 359,362 2,880 3.18% 351,678 3,355 3.78%
---------- ------- ----- ---------- ------- ----
Total
interest-
bearing
deposits 2,116,227 10,856 2.04% 2,049,356 12,839 2.49%
Federal funds
purchased and
securities
sold under
agreements to
repurchase 554 4 2.95% 950 4 1.65%
Federal Home
Loan Bank
advances and
other
borrowings 145,000 1,321 3.56% 194,799 1,795 3.61%
Subordinated
debt 32,991 293 3.48% 32,991 481 5.71%
Other
borrowings -- -- N/A 6 1 65.22%
---------- ------- ----- ---------- ------- ----
178,545 1,618 3.55% 228,746 2,281 3.90%
---------- ------- ----- ---------- ------- ----
Total
interest-
bearing
liabilities 2,294,772 12,474 2.16% 2,629,780 15,120 2.63%
------- -------
Total
noninterest-
bearing
liabilities 328,219 349,662
---------- ----------
Total
liabilities 2,622,991 2,979,442
Stockholders'
equity 389,573 365,086
---------- ----------
Total
liabilities and
stockholders'
equity $3,012,564 $3,344,528
---------- ----------
Net interest
income (tax
equivalent) $22,676 $27,420
------- -------
Average
interest
rate spread 2.95% 3.67%
Interest
expense as
percentage
of average
earning assets 1.81% 2.24%
Net
interest
margin 3.30% 4.06%
STELLARONE CORPORATION
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Dollars in thousands)
For the Nine Months Ended September 30,
(unaudited)
-----------------------------------------------------
2009 2008
-------------------------- -------------------------
Dollars Average Interest Average Average Interest Average
in thousands Balance Inc/Exp Rates Balance Inc/Exp Rates
------------ ---------- -------- ----- ---------- -------- -----
Assets
Loans
receivable,
net $2,278,781 $95,455 5.60% $2,066,251 $104,371 6.75%
Investment
securities
Taxable 229,777 7,409 4.25% 243,015 8,999 4.87%
Tax exempt 97,682 4,511 6.09% 88,942 4,185 6.18%
---------- -------- ----- ---------- -------- -----
Total
investments 327,459 11,920 4.80% 331,957 13,184 5.22%
Interest
bearing
deposits 51,972 80 0.20% 1,651 16 1.27%
Federal
funds sold 48,691 78 0.21% 50,113 795 2.07%
---------- -------- ----- ---------- -------- -----
428,122 12,078 3.72% 383,721 13,995 4.79%
---------- -------- ---------- --------
Total
earning assets 2,706,903 $107,533 5.31% 2,449,972 $118,366 6.45%
-------- --------
Total
nonearning
assets 285,949 269,254
---------- ----------
Total assets $2,992,852 $2,719,226
---------- ----------
Liabilities and
Stockholders'
Equity
Interest-
bearing
deposits
Interest
checking $ 525,761 $ 3,928 1.00% $ 436,958 $ 1,338 0.41%
Money market 274,671 3,076 1.50% 185,302 2,578 1.85%
Savings 191,522 1,261 0.88% 180,276 4,731 3.50%
Time deposits:
Less than
$100,000 756,730 17,056 3.01% 679,507 16,974 3.33%
$100,000
and more 329,713 8,547 3.47% 324,088 9,880 4.06%
---------- -------- ----- ---------- -------- -----
Total
interest-
bearing
deposits 2,078,397 33,868 2.18% 1,806,131 35,501 2.62%
Federal funds
purchased and
securities
sold under
agreements to
repurchase 455 10 2.90% 4,757 64 1.77%
Federal Home
Loan Bank
advances and
other
borrowings 166,319 4,441 3.52% 205,461 5,334 3.41%
Subordinated
debt 32,991 992 3.97% 30,146 1,411 6.15%
Commercial
paper -- -- N/A 32,554 635 2.56%
Other
borrowings -- -- N/A 459 7 2.00%
---------- -------- ----- ---------- -------- -----
199,765 5,443 3.59% 273,377 7,451 3.58%
---------- -------- ----- ---------- -------- -----
Total
interest-
bearing
liabilities 2,278,162 39,311 2.30% 2,079,508 42,952 2.75%
-------- --------
Total
noninterest-
bearing
liabilities 323,199 321,968
---------- ----------
Total
liabilities 2,601,361 2,401,476
Stockholders'
equity 391,491 317,750
---------- ----------
Total
liabilities
and
stockholders'
equity $2,992,852 $2,719,226
---------- ----------
Net interest
income (tax
equivalent) $ 68,222 $ 75,414
-------- --------
Average
interest
rate spread 3.01% 3.70%
Interest
expense as
percentage
of average
earning
assets 1.94% 2.34%
Net interest
margin 3.37% 4.11%
Contact:
StellarOne Corporation
Jeffrey W. Farrar, Executive Vice President and
Chief Financial Officer
(434) 964-2217
JFarrar@StellarOne.com
Related Headlines
- Coverage initiated on StellarOne by FBR Capital - Briefing.com
- STELLARONE CORP Financials - EDGAR Online Financials
- STELLARONE CORP Files SEC form 8-K, Results of Operations and Financial Condition - EDGAR Online
- StellarOne Corporation Announces Change in Results for Third Quarter - GlobeNewswire
- STELLARONE CORP Files SEC form 10-Q, Quarterly Report - EDGAR Online
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