MACON, Ga., Feb. 1 /PRNewswire-FirstCall/ -- Atlantic Southern
Financial Group, Inc. (NASDAQ:ASFN) today announced the financial
results for the year ended December 31, 2007 and for the fourth
quarter of 2007. Summary -- Fourth Quarter Earnings -- Net Earnings
of $1,742,000 -- Diluted Earnings per Share of $0.39 -- Record
Earnings for the year ending 2007 -- Net Earnings of $7,744,000 --
Diluted Earnings per share of $1.75 -- Total Assets of $852,479,000
-- Strong Loan and Deposit Growth Net Earnings For the fourth
quarter of 2007, net earnings were $1,742,000 compared to
$1,865,000 a year earlier. Diluted earnings per share decreased to
$.39 from $.52 a year ago. Compared with the fourth quarter of
2006, the Company's net earnings decreased $123,000, or 7%, and the
diluted earnings per share decreased $0.13, or 25%. The decrease in
the fourth quarter net earnings is attributable to a decrease in
net interest income. The expenses from interest-bearing liabilities
have been increasing due to competitive pressures on deposit rates
as the yields on interest-earning assets have declined in response
to the recent interest rate cuts. The decrease in the diluted
earnings per share is due to the increase in the number of shares
outstanding from the Company's acquisitions of Sapelo National Bank
in the fourth quarter of 2006 and First Community Bank in the first
quarter of 2007 and from the Company's stock offering in June 2006.
The Company had record net earnings of $7,744,000 for the year
ended December 31, 2007 compared to $5,964,000 for the year ended
December 31, 2006. Compared with the year-ending 2006, net earnings
increased $1,780,000, or 30%. Diluted earnings per share for the
year ended December 31, 2007 decreased to $1.75 from $1.77 for the
year ended December 31, 2006. Mark Stevens, President & CEO,
stated, "We produced record annual earnings in 2007 although
earnings pressure resulted from the current banking environment in
which we are now operating. As the Federal Reserve made aggressive
rate cuts in 2007, earnings were challenged. Additionally,
competitive deposit rates in our markets have made it difficult to
reduce our cost of funds as rates trend downward." "We are adding a
wealth management division in 2008 to our Company in anticipation
of increasing non-interest income. We have hired a seasoned
financial advisor to provide financial services including
retirement planning, estate planning and asset allocation
strategies. We also opened a retail branch in Jacksonville, Florida
on December 3, 2007 and have hired a Florida banking team with
strong ties in the Jacksonville market. We expect our Northeast
Florida Region to produce core deposits as well as earning assets",
Stevens said. Balance Sheet Total assets at December 31, 2007 were
$852,479,000, an increase of 27%, or $181,404,000, from December
31, 2006. Of the increase reported in total assets, approximately
$81.0 million was related to the acquisition of First Community
Bank that occurred during the first quarter of 2007. At December
31, 2007, total gross loans were $697.4 million, up $164.0 million
or 31%, from December 31, 2006. This increase is partly due to
$50.0 million in loans from the Company's acquisition of First
Community Bank while the Company had an internal loan growth of
$114.0 million. Total deposits at December 31, 2007 were $705.2
million, an increase of $148.2 million, or 27%, from December 31,
2006. Approximately $58.6 million in deposit growth came from the
acquisition of First Community Bank. Also, the Company had internal
deposit growth of $89.6 million with an approximate $23.1 million
increase in brokered deposits. "Loan demand continues to drive
earnings. Loan demand is solid in all markets and credit quality
remains a top priority for our organization. We anticipate slower
loan growth in 2008 with the uncertainty in the real estate
market," Stevens said. Asset Quality The Company experienced an
increase in non-accrual loans with approximately $4.3 million as of
December 31, 2007 with the majority of the balance consisting of a
$2.9 million non-accrual loan secured by residential real estate
and a $1.2 million credit relationship secured by commercial real
estate. All non-accrual loans are well collateralized and the
Company does not anticipate any losses. As a result of the increase
in non-accrual loans, the total nonperforming assets (non-accrual,
loans 90 days or more past due and other real estate owned)
increased to 0.79% of total loans plus other real estate owned as
of December 31, 2007 compared to 0.12% as of December 31, 2006. Net
charge-offs for 2007 were 0.11% of average loans compared to 0.04%
for 2006. At December 31, 2007, the allowance for loan loss
amounted to $8.9 million or 1.27% of total loans outstanding
compared to $7.3 million or 1.36% of total loans outstanding at
December 31, 2006. Provision for loan loss decreased approximately
$1.0 million in 2007 to $665 thousand. The decrease is due to
management's determination that the allowance for loan loss was
adequate and the Company having minimal credit quality issues from
the loan portfolio. "Asset quality continues to be good and we
believe our allowance for loan loss is adequate, which is a
favorable position during this extremely volatile environment,"
Stevens stated. 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,
six locations in the coastal markets of Savannah, Darien, Brunswick
and St. Simons Island, Georgia, one location in the northeast
Florida market of Jacksonville, Florida, and a loan production
office in the south Georgia market of Valdosta, Georgia. 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. Atlantic Southern Financial Group, Inc. Financial
Highlights (unaudited) (In Thousands, Except Per Share Data) For
the Year Ended Three Months Ended December December December
December 31, 31, 31, 31, 2007 2006 2007 2006 EARNINGS SUMMARY
Interest Income $59,306 $37,874 $15,333 $11,286 Interest Expense
31,513 18,973 8,401 5,979 Net Interest Income 27,793 18,901 6,932
5,307 Provision for Loan Losses 665 1,671 25 282 Noninterest Income
3,399 1,694 851 492 Noninterest Expense 18,636 10,110 5,080 3,109
Earnings Before Income Taxes 11,891 8,814 2,678 2,408 Provision for
Income Taxes 4,147 2,850 936 543 Net Earnings $7,744 $5,964 $1,742
$1,865 For the Year Ended December 31, PERFORMANCE MEASURES 2007
2006 2005 Per Share Data: Net earnings $1.89 $1.97 $1.49 Diluted
net earnings 1.75 1.77 1.33 Book Value 21.46 17.24 9.75 Tangible
book value 15.96 14.30 9.75 Key Performance Ratios Return on
average equity 9.33% 15.05% 17.15% Return on average assets 0.98%
1.21% 1.18% Net interest margin, tax equivalent 3.85% 4.05% 4.01%
Efficiency ratio 58.46% 50.35% 47.19% As of December 31, ASSET
QUALITY 2007 2006 2005 Non-performing assets/loans & OREO 0.79%
0.12% 0.09% Allowance for loan losses/total loans 1.27% 1.36% 1.25%
Allowance for loan losses/non- performing loans 185.68% 1120.06%
1445.99% Net charge-offs to average loans 0.11% 0.04% 0.05% AT
PERIOD END Loans $697,423 $533,425 $331,810 Earning Assets 792,040
469,553 317,385 Total Assets 852,479 671,075 388,710 Deposits
705,232 556,995 334,575 Shareholders' equity 89,083 62,232 25,386
DATASOURCE: Atlantic Southern Financial Group, Inc. CONTACT: Mark
Stevens of Atlantic Southern Financial Group, Inc., +1-478-330-5820
Web site: http://www.atlanticsouthernbank.com/
Copyright
Atlantic Southern Financial Grp., Inc. (MM) (NASDAQ:ASFN)
Historical Stock Chart
From Sep 2024 to Oct 2024
Atlantic Southern Financial Grp., Inc. (MM) (NASDAQ:ASFN)
Historical Stock Chart
From Oct 2023 to Oct 2024