OMNI FINANCIAL SERVICES, INC. 
By Omni Financial Services, Inc. (NASDAQ: OFSI):
2006 Highlights:
- Record pro-forma net income of $5.6 million, up 65.85%
- Record diluted earnings per share of $0.66, up 29.41%
- Record net interest income of $26.4 million, up 46.27%
- Record growth of 47.30% in total assets, up $225.6 million
- Return on average equity of 12.59%
- Efficiency ratio of 62.62%
- $533 million in loan fundings ? over 3,700 accounts
- Net interest margin of 4.82%, an increase of 10 basis points over the prior year
Fourth Quarter 2006 Highlights:
- Pro-forma net income of $1.5 million, up 58.04% from prior year
- Diluted earnings per share of $0.13
- Net interest income of $7.7 million, up 41.96% from prior year
- Average loans outstanding grew 52.47%, up $166.6 million from prior year
- Net interest margin of 4.90%
Selected Financial Information | ||||||||
| For the Three Months Ended | For the Year Ended | |||||||
| December 31, | December 31, | |||||||
| 2006 | 2005 | % Change | 2006 | 2005 | % Change | |||
| Share Data | ||||||||
| Diluted earnings per share/Pro-forma (1) | $ 0.13 | $ 0.14 | -7.14% | $ 0.66 | $ 0.51 | 29.41% | ||
| Book value at period end | $ 6.38 | $ 4.02 | 58.80% | $ 6.38 | $ 4.02 | 58.80% | ||
| Tangible book value at period end | $ 5.87 | $ 3.22 | 82.39% | $ 5.87 | $ 3.22 | 82.39% | ||
| Performance Ratios: | ||||||||
| Return on average equity/Pro-forma (1) (2) | 8.20% | 15.19% | -46.00% | 12.59% | 14.98% | -15.99% | ||
| Net interest Margin | 4.90% | 4.90% | 0.00% | 4.82% | 4.72% | 2.12% | ||
| Efficiency ratio | 66.77% | 71.12% | -6.11% | 62.62% | 70.46% | -11.12% | ||
| Credit Quality Ratios: | ||||||||
| Allowance for loan losses to loans | 1.33% | 1.46% | -9.00% | 1.33% | 1.46% | -9.00% | ||
| Nonperforming assets to total assets | 1.22% | 1.29% | -5.83% | 1.22% | 1.29% | -5.83% | ||
| Net charge-offs to average loans (2) | 0.25% | 0.49% | -48.24% | 0.17% | 0.23% | -24.38% | ||
| Selected Balance Sheet Averages: | (Dollars in Thousands) | |||||||
| Loans outstanding | $ 484,185 | $ 317,551 | 52.47% | $ 418,587 | $ 280,810 | 49.06% | ||
| Total assets | $ 664,213 | $ 467,567 | 42.06% | $ 585,227 | $ 404,068 | 44.83% | ||
| Interest-earning assets | $ 625,123 | $ 439,975 | 42.08% | $ 548,412 | $ 384,204 | 42.74% | ||
| Interest-bearing deposits | $ 474,292 | $ 343,018 | 38.27% | $ 405,006 | $ 276,135 | 46.67% | ||
| Tangible shareholders equity | $ 65,106 | $ 18,384 | 254.14% | $ 38,796 | $ 18,462 | 110.14% | ||
| Shareholders' equity | $ 70,902 | $ 24,194 | 193.06% | $ 44,604 | $ 22,594 | 97.42% | ||
| (1)Adjusted to reflect the $3.69 M tax credit related to our conversion from an S-Corporation to a C-Corporation, recognized on January 1, 2006, and a combined Federal and state tax rate of 38% for the periods in 2005 that we operated as an S-Corporation. | ||||||||
| (2)Annualized | ||||||||
Omni Financial Services, Inc. (NASDAQ: OFSI), the bank holding company for Omni National Bank, reported a record increase of 65.8% in net income for the year ended December 31, 2006, to $5.6 million or $0.66 per diluted share, compared to $3.4 million or $0.51 per diluted share in the same period last year. For the quarter, the Company posted net income of $1.5 million or $0.13 per diluted share, which is an increase of 58.0% as compared to $920,000 or $0.14 as of December 31, 2005. For comparison purposes, the net income for the twelve months ended December 2006 has been reduced by a $3.69 million tax credit recorded on January 1, 2006 upon conversion from an S-Corporation to a C-Corporation and the quarter ended and year to date December 31, 2005 net income has been adjusted to reflect a combined federal and state tax expense of 38% for the period assuming the Company operated as a C-Corporation.
Net income calculated in accordance with generally accepted accounting principles (?GAAP?) for the twelve months ended December 31, 2006 increased 91.4% to $9.3 million or $1.09 diluted earnings per share from $4.9 million or $0.73 per diluted share for the same period of 2005. For the quarter ended December 31, 2006, GAAP income was $1.5 million or $0.13 diluted earning per share, compared to $1.3 million or $0.20 diluted earnings per share for the quarter ended December 31, 2005. ?It's exciting that we ended 2006 on such a high note by completing our public offering in early fourth quarter and we are able to report record growth in earnings for the year,? said Chairman and CEO Stephen Klein. ?This growth will allow us to seize the opportunities that fall in line with our expansion strategies. We would not have been able to experience this type of growth if it wasn't for the 52.7% increase in our loan portfolio, while maintaining the strong credit quality of the portfolio,? Klein said.
The primary reason for the surge in earnings during 2006 is the expansion in net interest income, which is driven by a 42.7% increase in average earning assets. The four prime rate increases totaling 100 basis points during 2006 also had a positive impact on earnings since the bank's interest rate risk position continues to be asset sensitive.
Financial Ratios
Pro-forma return on average equity for the year ended December 31, 2006 was 12.59% compared to 14.98% for the same period in 2005. GAAP return on equity for the year ended December 31, 2006 was 20.86% compared to 21.51% for the year ended December 31, 2005. The decline in pro-forma return on average equity resulted from a significant increase in capital from the Company's initial public offering in late 2006. Pro-forma return on average assets for the year ended December 31, 2006, was 0.96% compared to 0.84% for the same period in 2005. GAAP return on average assets was 1.59% for the twelve months ended December 31, 2006, compared to 1.20% for the twelve months ended December 31, 2005. The Company's efficiency ratio (non-interest expense divided by the sum of net interest income and non-interest income) improved to 62.62% during 2006 compared to 70.46% for the year ended December 31, 2005.
Net Interest Income and Margin
For the year ended December 31, 2006, the Company recorded record net interest income of $26.4 million, an increase of $8.4 million or 46.3% over the same period in 2005, the result of continued strong loan growth. For the quarter ended December 31, 2006, net interest income totaled $7.7 million an increase of 42.0% over the quarter ended December 31, 2005.
This is evidenced also by a steady? to-increasing net interest margin, which margin rose 10 basis points year-over-year from 4.72% to 4.82%. Klein stated, ?In particular, we are very pleased with the linked-quarter increase in our net interest margin which rose from 4.59% to 4.90%.? Omni's CFO Connie Perrine added, ?While many banks are suffering with declining net interest margins, we are concentrating heavily on maintaining our margins which is in part driven by an increase in core deposits.? Ms. Perrine went on to say that in the fourth quarter of 2006, ?core deposits grew $20.1 million, or 8.9% in the linked quarter. We were exceedingly pleased with these results, which were attributable in part to a highly successful money market campaign.?
Loans
Loans were $500.2 million at December 31, 2006, an increase of $172.6 million or 52.7% when compared to $327.6 million at December 31, 2005. On a linked-quarter basis, gross loans grew $32.1 million or 6.9% over the prior quarter. This growth has occurred while maintaining strong credit quality. Net charge-offs as a percentage of average loans decreased from 0.23% for the year ended December 31, 2005 to 0.17% for the same period in 2006. ?One of the benefits of geographical diversity is the ability to achieve varied pricing in our product lines,? Klein said. He added, ?We also benefit by having our credit exposure decentralized where our company may be less impacted by regional economic slow-downs. In fact, we've experienced accelerated growth in our Chicago division while we've seen a slow-down in our Tampa office, and our recently opened Philadelphia office is exceeding our expectations.? Chief Lending Officer Charlie Barnwell added, ?We continue investing in our infrastructure by adding new lenders and expanding in new areas, as evidenced by our growth in loans which was driven by extending more than $533 million in credit covering more than 3,700 accounts.?
The closing price of Omni Financial Services, Inc. common stock on December 29, 2006 (the last trading day of the year) was $10.42 per share.
Omni Financial Services, Inc. is a bank holding company headquartered in Atlanta, Georgia. Omni Financial Services, Inc. provides a full range of banking and related services through its wholly owned subsidiary, Omni National Bank, a national bank headquartered in Atlanta, Georgia. Omni has one full service banking location in Atlanta, one in Dalton, Georgia, four in North Carolina, one in Chicago, Illinois, and one in Tampa, Florida. In addition, Omni has loan production offices in Charlotte, North Carolina, Dalton, Georgia, Birmingham, Alabama and Philadelphia, Pennsylvania. Omni provides traditional lending and deposit gathering capabilities, as well as a broad array of financial products and services, including specialized services such as community redevelopment lending, small business lending and equipment leasing, warehouse lending, and asset-based lending. Omni Financial Services, Inc.'s common stock is traded on the NASDAQ Global Market under the ticker symbol "OFSI." Additional information about Omni Financial is available on its website at www.onb.com.
Except for historical information contained herein, the matters discussed in this press release consist of forward-looking information under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking information is necessarily subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. These risks and uncertainties include, but are not limited to, unforeseen general economic conditions, potential difficulties in the execution of Omni Financial Services, Inc.'s business and growth strategies, competitive risks and other factors set forth from time to time in Omni Financial Services, Inc.'s filings with the Securities and Exchange Commission. When used in this release, the words ?believes,? ?estimates,? ?plans,? ?expects,? ?should,? ?will,? ?may,? ?might,? ?outlook,? and ?anticipates? are similar expressions as they relate to Omni Financial Services, Inc.'s (including its subsidiaries), or its management, and are intended to identify forward-looking statements.
Omni Financial Services, Inc. from time to time becomes aware of rumors concerning its business, prospects and results of operations. As a matter of policy, Omni Financial Services, Inc. does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and other unsubstantiated information. Omni Financial Services, Inc. complies with federal and state laws applicable to the disclosure of information concerning its business, prospects and results of operations. Investors may be at significant risk in relying on unsubstantiated information from other sources.
| Omni Financial Services, Inc. | ||||||
| Consolidated Balance Sheets | ||||||
| (Dollars in thousands) | ||||||
| As of December 31, | ||||||
| 2006 | 2005 | 2004 | ||||
ASSETS | (Unaudited) | |||||
| Cash and due from banks | $ 6,194 | $ 8,597 | $ 4,129 | |||
| Federal funds sold | 16,341 | 1,818 | - | |||
| Investment securities available-for-sale | 135,546 | 105,825 | 66,818 | |||
| Loans held-for-sale | 9,635 | 8,205 | 4,435 | |||
| Loans | 500,207 | 327,634 | 226,066 | |||
| Allowance for Loan Losses | (6,646) | (4,791) | (3,463) | |||
| Net loans | 493,561 | 322,843 | 222,603 | |||
| Other real estate owned | 3,378 | 1,179 | 660 | |||
| Premises and equipment | 10,707 | 11,203 | 6,663 | |||
| Goodwill and other intangibles | 5,792 | 5,820 | 1,608 | |||
| Accrued interest receivable and other assets | 21,497 | 11,515 | 10,827 | |||
| Total Assets | $ 702,651 | $ 477,005 | $ 317,743 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||
| Demand | $ 48,486 | $ 26,687 | $ 17,269 | |||
| Savings and money market | 36,993 | 9,439 | 10,330 | |||
| Certificates-retail | 162,293 | 181,135 | 152,247 | |||
| Certificates-brokered | 296,004 | 133,385 | 54,385 | |||
| Total deposits | 543,776 | 350,646 | 234,231 | |||
| Fed funds purchased/repos | - | - | 3,970 | |||
| Federal Home Loan Bank borrowings | 57,500 | 69,500 | 45,300 | |||
| Junior subordinated debentures | 20,620 | 20,620 | 10,310 | |||
| Other liabilities | 8,410 | 7,157 | 2,912 | |||
| Total liabilities | 630,306 | 447,923 | 296,723 | |||
| Common stock, par value $1.00; 25,000,000 shares authorized: | ||||||
| 11,348,919, 7,242,612 and 6,546,864 shares issued | ||||||
| 11,349 | 7,243 | 6,547 | ||||
| Additional paid in capital | 54,565 | 13,725 | 7,474 | |||
| Retained earnings | 7,296 | 9,422 | 6,672 | |||
| Accumulated other comprehensive income (loss) | (765) | (1,208) | 427 | |||
| Treasury stock, at cost: 16,612 shares | (100) | (100) | (100) | |||
| Total shareholders' equity | 72,345 | 29,082 | 21,020 | |||
| Total shareholders' equity and liabilities | $ 702,651 | $ 477,005 | $ 317,743 | |||
| Omni Financial Services, Inc. | |||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
| 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ 12,879 | $ 8,420 | $ 43,978 | $ 27,164 | |||||||||||||||||||||||||||||||||||
| Interest on investment securities | 1,738 | 1,120 | 6,108 | 3,819 | |||||||||||||||||||||||||||||||||||
| Total interest income | 14,617 | 9,540 | 50,086 | 30,983 | |||||||||||||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||||||
| Interest on deposits | 5,943 | 3,085 | 18,480 | 9,681 | |||||||||||||||||||||||||||||||||||
| Interest on other borrowings | 1,015 | 1,060 | 5,190 | 3,242 | |||||||||||||||||||||||||||||||||||
| Total interest expense | 6,958 | 4,145 | 23,670 | 12,923 | |||||||||||||||||||||||||||||||||||
| Net interest income | 7,659 | 5,395 | Share
© Business Wire - 2007
OMNI Financial Services, Inc. is a financial services company. The Company is engaged in offering a range of financial products and services. It provides solutions to assist individuals, professionals, and business owners. The Company offers a range of services, including personal financial services, wealth management, business solutions, business continuation strategies, and asset protection. Its personal financial planning services include personal financial planning and retirement preparation. Its wealth management services include assessing risk tolerance, designing asset allocation strategies, and evaluating investment strategies. The Company's business solutions include employee growth and retention plans, key executive benefits, and asset management. Its business continuation/exit strategies include business valuations, buy/sell agreements, and funding strategies. It offers asset protection plans for physicians, business owners, or owners of rental real estate.
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