Atlantic Southern Financial Group, Inc. Reports Net Loss for First Quarter 2010
30 Abril 2010 - 7:30AM
Atlantic Southern Financial Group (Nasdaq:ASFN) today reported a
net loss of $1.6 million, or $0.39 per diluted share, for the first
quarter of 2010 compared to net earnings of $742 thousand, or $0.18
per share, in the first quarter of 2009. The net loss was primarily
driven by adding $1.3 million to the allowance for loan losses and
paying approximately $911 thousand in FDIC quarterly
assessments.
The net interest income for the first quarter of 2010 was $4.4
million compared to $5.4 million for the same period a year
earlier, which represents a decrease of $1.0 million. The net
interest margin was 2.08 percent for the first quarter of 2010
compared to 2.44 percent for the first quarter of 2009. "Our
increased liquidity position coupled with the uncollectible
interest on non-accrual loans is continuing to have a significant
impact on our net interest margin," stated Mark Stevens, President
and Chief Executive Officer of Atlantic Southern Financial
Group. "Our management team and board of directors are
intensely focused on balance sheet management, including capital
preservation, liquidity management, lowering our cost of funds and
reducing our reliance on non-core funding sources while maintaining
our high level of commitment to customer service," Stevens
said.
The Company's nonperforming assets decreased approximately
$1.2 million, or 0.90 percent, to approximately $135.8 million
as of March 31, 2010 as compared to $137.0 million as of December
31, 2009. This decrease is due mostly to pay downs and/or
partial charge-offs on non-accrual loans since December 31,
2009. Non-accrual loans decreased $7.1 million from December
31, 2009 to March 31, 2010, largely due to approximately $9.3
million moving to other real estate owned. During the first
quarter of 2010, there was approximately $5.1 million in loans
moved to non-accrual. All non-accrual loans are adequately
collateralized based on management's judgment and supported by
recent collateral appraisals. The Company continues to
actively market and continuously monitor all other real estate
owned properties in order to minimize losses. "The economic
conditions continue to negatively affect our credit
quality. We expect the challenges to continue in
2010, but we remain committed to our strategy of aggressively
working through our problem credits and pursuing the best economic
outcome for our Company in each instance," stated
Stevens.
As a result of the decrease in non-accrual loans, the total
nonperforming assets decreased to 14.42 percent of total assets as
of March 31, 2010 compared to 14.45 percent as of December 31,
2009. Net charge-offs annualized for the first quarter of 2010
were 0.92 percent of average loans compared to 0.27 percent for the
same period a year earlier. During the first quarter of 2010,
the Company charged off approximately $1.7 million primarily due to
the impairment of several real estate loans.
At March 31, 2010, the allowance for loan loss amounted to $21.1
million or 3.03 percent of total loans outstanding compared to
$21.5 million, or 2.99 percent, of total loans outstanding at
December 31, 2009. Provision for loan losses increased
approximately $1.0 million for the first quarter of 2010 to $1.3
million compared to the same period in 2009.
For the first quarter of 2010, noninterest income was $869
thousand compared to $1.3 million for the first quarter of
2009. The decrease is primarily attributed to the Company not
reporting any gains on the sales of investment securities during
the first quarter of 2010 compared to a $220 thousand gain on the
sales of investment securities for the first quarter of 2009 that
resulted from the sale of several mortgage-backed securities and
state, county and municipal bonds during the first quarter of
2009. Also, the Company's mortgage department experienced a
decrease in mortgage closing volume during the first quarter of
2010 compared to the same period in 2009.
Noninterest expense for the first quarter of 2010 was $5.6
million compared to $5.3 million for the first quarter of
2009. The increase was mostly due to the Company absorbing
more other real estate expenses from several foreclosed properties
and an increase of $715 thousand in quarterly FDIC assessments with
an offset of a decrease in salaries and employee benefits of $449
thousand. Since the Bank entered into the Cease and Desist
Order with the FDIC in September 2009, the Bank has experienced
higher assessments due to the Bank's risk classification with the
FDIC. At the end of the first quarter of 2010, the Company had
a total of 84 foreclosed properties compared to 37 properties at
the end of the first quarter of 2009. When comparing the
first quarter of 2010 to the first quarter of 2009, the decrease in
salaries and employee benefits is attributed to the Company having
a 7 percent reduction in staff, the utilization of a bank officer
one day per quarter furlough and no accrual for bonuses or to the
Company's salary continuation plan.
At March 31, 2010, total gross loans were $698.3 million, down
$20.3 million or 2.82 percent, from December 31, 2009. Total
deposits at March 31, 2010 were $861.3 million, a decrease of $138
thousand, or 0.02 percent, from December 31, 2009. The Company
was able to increase its retail time deposits at March 31, 2010 by
$24.5 million from December 31, 2009 due to management's aggressive
efforts to increase core deposits. Non-interest bearing and
interest bearing deposits decreased at March 31, 2010 by $13.1
million from December 31, 2009. Management was able to
decrease wholesale deposits at March 31, 2010 by $11.3 million from
December 31, 2009 due to management's efforts to reduce reliance on
wholesale deposits for funding needs.
Total shareholders' equity was $28.1 million at March 31,
2010. The Bank's total risk-based capital ratio at March 31,
2010 was 6.25 percent compared to 6.28 percent at December 31,
2009.
About Atlantic Southern Financial Group, Inc. and Atlantic
Southern Bank
With headquarters in Macon, Georgia, Atlantic Southern Financial
Group, Inc., operates nine banking locations in the middle Georgia
markets of Macon and Warner Robins, five locations in the coastal
markets of Savannah, Darien, Brunswick, one location in the south
Georgia market of Valdosta, Georgia and one location in the
northeast Florida market of Jacksonville, Florida. The Company
specializes in commercial real estate and small business
lending.
Safe Harbor
This news release contains forward-looking statements, as
defined by Federal Securities Laws, including statements about
financial outlook and business environment. These statements
are provided to assist in the understanding of a future financial
performance and such performance involves risks and uncertainties
that may cause actual results to differ materially from those in
such statements. Any such statements are based on current
expectations and involve a number of risks and
uncertainties. For a discussion of factors that may cause such
forward-looking statements to differ materially from actual
results, please refer to the section entitled "Forward-Looking
Statements" in Atlantic Southern Financial Group, Inc.'s annual
report filed on Form 10-K with the Securities and Exchange
Commission.
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Atlantic Southern Financial Group, Inc.
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Financial Highlights
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(unaudited)
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(In Thousands, Except Per Share Data)
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Three Months Ended
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March 31,
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March 31,
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2010
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2009
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EARNINGS (LOSS) SUMMARY
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Interest and Dividend Income
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$ 9,780
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$ 12,547
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Interest Expense
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5,370
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7,150
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Net Interest Income
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4,410
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5,397
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Provision for Loan Losses
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1,302
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350
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Noninterest Income
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869
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1,263
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Noninterest Expense
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5,610
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5,315
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Earnings (Loss) Before Income Taxes
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(1,633)
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995
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Provision for Income Taxes
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--
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253
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Net Earnings (Loss)
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$ (1,633)
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$ 742
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Three Months Ended
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March 31,
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March 31,
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PERFORMANCE MEASURES
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2010
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2009
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Per Share Data:
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Net earnings (loss)
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$ (0.39)
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$ 0.18
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Diluted net earnings (loss)
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(0.39)
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0.18
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Book Value
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6.67
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21.42
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Tangible book value
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6.08
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16.11
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Key Performance Ratios
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Return on average equity (1)
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-22.70%
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3.35%
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Return on average assets (1)
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-0.70%
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0.30%
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Net interest margin, tax equivalent (1)
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2.08%
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2.44%
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(1) Annualized
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March 31,
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December 31,
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ASSET QUALITY
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2010
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2009
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Non-performing assets/loans & OREO
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18.71%
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18.52%
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Allowance for loan losses/total loans
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3.03%
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2.99%
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Allowance for loan losses/non-performing loans
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19.54%
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18.53%
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Net charge-offs to average loans (2)
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0.92%
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4.27%
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AT PERIOD END
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Loans
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$ 698,290
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$ 718,559
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Earning Assets
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876,076
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892,065
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Total Assets
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941,722
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948,380
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Deposits
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861,295
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861,157
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Shareholders' equity
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28,085
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29,639
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AVERAGE BALANCES
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Loans
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$ 710,886
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$ 779,790
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Earning Assets
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863,552
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967,271
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Total Assets
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942,289
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1,070,628
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Deposits
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855,629
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927,405
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Shareholders' equity
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29,170
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74,504
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(2) March 31, 2010 is annualized.
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CONTACT: Atlantic Southern Financial Group
Mark Stevens
478-330-5800
mstevens@atlanticsouthernbank.com
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