CORNELIA, Ga., Nov. 5 /PRNewswire-FirstCall/ -- Habersham Bancorp
(Nasdaq: HABC) reports a third quarter loss of $4,291,000 or $1.52 per diluted
share when compared to third quarter earnings of $855,000 or $.29 per diluted
share for the same period in 2007. The decrease resulted principally from a
decrease in net interest income of approximately $2,029,000 and additional
expense from provision for loan losses of approximately $6,213,000.
For the nine-month period ended September 30, 2008, the Company reports a
loss of $4,607,000 or $1.63 per diluted share when compared to year-to-date
earnings of $2,874,000 or $.96 per diluted share for the nine-month period
ended September 30, 2007. The decrease resulted principally from a decrease
in net interest income of approximately $5,441,000 and additional expense from
provision for loan losses of approximately $7,290,000.
The decreases in net interest income resulted from: 1) an increase in the
total dollar balances of loans on nonaccrual status and, 2) the total dollar
balances of variable rate loans tied to a decreasing prime interest rate.
Non-performing assets increased approximately $26,249,000 from December 31,
2007 to September 30, 2008 primarily as a result of increases in nonaccrual
loans, other real estate, and accruing loans 90 days past due totaling
approximately $17,452,000, $8,584,000 and $213,000, respectively.
The Company's net interest margin for the third quarter and first nine
months of 2008 was 2.80% and 3.08%, respectively, compared to 4.35% and 4.58%
for the third quarter and first nine months of 2007.
Total assets of $500.1 million at September 30, 2008 reflect a decrease of
$14.1 million or 2.74% from $514.2 million at December 31, 2007. Decreases in
the loan portfolios (net of allowance for loan losses), cash and cash
equivalent balances and investment securities of approximately $20.7 million,
$7.4 million and $1.1 million, respectively, were offset by increases in other
real estate, other assets, and premises and equipment, net, of approximately
$8.6 million, $3.8 million and $2.7 million, respectively.
David D. Stovall, President and C. E. O. of Habersham, stated, "Given the
uncertainty of the economy and the markets in which we operate, our board of
directors and management feel it to be paramount that we remain well
capitalized through this troubled economy and aggressively manage our troubled
assets. To this end, we made a third quarter loan loss provision in excess of
$6 million. We believe that we have identified our troubled assets, and are
working to minimize any losses, but this provision gives us added protection,
in the event that the economy as a whole continues to deteriorate into 2009.
We are also, like many of our counterparts, exploring many avenues of capital
protection for the best interest of our shareholders."
HABERSHAM BANCORP FINANCIAL HIGHLIGHTS
(Unaudited)(dollar amounts in thousands, except per share amounts)
Three Months Nine Months
Ended Ended
Summary of Operations September 30, September 30,
2008 2007 2008 2007
Interest income $ 6,212 $ 9,295 $ 20,650 $ 27,685
Interest expense 3,342 4,396 10,901 12,495
Net interest income 2,870 4,899 9,749 15,190
Provision for loan losses 6,293 80 7,370 80
Net interest (loss) income
after provision for
loan losses (3,423) 4,819 2,379 15,110
Other income 907 931 2,910 2,778
Investment securities gains 27 - 316 5
Other expense 4,589 4,564 13,716 13,844
(Loss) earnings before
income taxes (7,078) 1,186 (8,111) 4,049
Income tax benefit (expense) 2,787 (331) 3,504 (1,175)
Net (loss) earnings $ (4,291) $ 855 $ (4,607) $ 2,874
Net (loss) earnings per
share - basic $(1.52) $.29 $(1.63) $.97
Net (loss) earnings per
share - diluted $(1.52) $.29 $(1.63) $.96
Weighted average number of
common shares Outstanding 2,818,593 2,968,593 2,818,593 2,968,593
Weighted average number of
common and common
equivalent shares outstanding 2,818,593 2,968,593 2,818,593 2,982,240
Cash dividends declared per
common share $.05 $.10 $.25 $.30
September 30, December 31,
Balance Sheet Summary 2008 2007
Total Assets $ 500,115 $ 514,219
Loans, net 328,449 348,251
Deposits 387,277 390,267
Stockholders' Equity 47,525 54,182
SOURCE Habersham Bancorp