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8-K - FORM 8-K - Athens Bancshares Corp | c11760e8vk.htm |
Exhibit 99.1
ATHENS BANCSHARES CORPORATION REPORTS 2010 FINANCIAL RESULTS
Athens, Tennessee February 2, 2011. Athens Bancshares Corporation (NASDAQ: AFCB news) (the
Company), the holding company for Athens Federal Community Bank (the Bank), today announced its
results of operations for the three and twelve months ended December 31, 2010. The Companys net
income for the three months ended December 31, 2010, was $600,000 or $0.24 per diluted share,
compared to net income of $54,000 for the same period in 2009. For the twelve months ended
December 31, 2010, net income was $843,000 or $0.34
per diluted share, compared to net income of $1.3 million for the year ended December 31, 2009.
per diluted share, compared to net income of $1.3 million for the year ended December 31, 2009.
On January 6, 2010, the Bank converted from a mutual savings bank to a stock savings bank and
became the wholly owned subsidiary of the Company. In connection with the conversion, the Company
sold an aggregate of 2,677,250 shares of common stock at a price of $10.00 per share to depositors
of the Bank. In addition, in connection with the conversion, the Bank formed the Athens Federal
Foundation, to which the Company contributed an additional 100,000 shares of common stock (valued
at $10.00 per share) and $100,000 in cash. Because the Banks conversion and the Companys stock
offering were consummated on January 6, 2010, the Company was not an operating company during 2009.
As a result, the information presented for 2009 is on a consolidated basis for the Bank only.
Net interest income after provision for loan losses increased $471,000 for the year ended December
31, 2010 as compared to the year ended December 31, 2009. Interest income decreased $139,000 when
comparing the two periods as the average yield of interest-earning assets decreased from 6.34%
during the year ended December 31, 2009 to 5.60% for 2010, which more than offset an increase in
average balance of earning assets from $231.4 million in 2009 to $259.5 million in 2010. Interest
expense decreased $1.3 million as the average cost of interest-bearing liabilities decreased from
2.67% to 2.01% when comparing the same two periods, which more than offset an increase in the
average balance of those liabilities from $211.9 million in 2009 to $217.0 million in 2010. The
provision for loan losses increased $687,000 from $1.0 million for the year ended December 31, 2009
to $1.7 million for the year ended December 31, 2010. The primary reasons for the increase in
provision for loan losses were the increase in loans classified as substandard and a decline in
overall economic conditions. Substandard loans increased from $7.7 million at December 31, 2009
to $9.0 million at December 31, 2010.
Net interest income after provision for loan losses increased $345,000 during the three months
ended December 31, 2010 as compared to the three months ended December 31, 2009. Interest income
increased $147,000 when comparing the two periods as the average yield on interest-earning assets
decreased from 5.98% during the fourth quarter of 2009 to 5.63% for the same period in 2010, which
substantially offset an increase in the average balance of interest earning assets from $236.7
million to $262.4 million. The average balances of loans, short term investments and investments
increased $8.3 million, $806,000 and $16.6 million, respectively, when comparing the three months
ended December 31, 2009 to the same period in 2010. The increases were primarily due to the
deployment of funds received in the Banks mutual to stock conversion in January 2010. Interest
expense decreased $323,000 as the average cost of interest-bearing liabilities decreased from 2.39%
to 1.76% when comparing the two quarterly periods. The average balance of those liabilities
increased $2.7 million from $215.7 million for
the three months ended December 31, 2009 to $218.4 million for the same period ended December 31,
2010. The provision for loan losses increased $125,000 for the three months ended December 31,
2010 as compared to the same period ended December 31, 2009 primarily due to increases in loans
classified as substandard and a decline in overall economic conditions.
Non-interest income decreased $265,000 for the year ended December 31, 2010 as compared to the year
ended December 31, 2009. The decrease was primarily due to a decrease in income related to the
sale of mortgage loans on the secondary market. Non-interest income increased $85,000 when
comparing the three months ended December 31, 2010 to the same period ended December 31, 2009. The
primary reason for the increase was an increase in income related to the origination and sale of
mortgage loans on the secondary market.
Non-interest expense increased $1.4 million for the year ended December 31, 2010 compared to the
year ended December 31, 2009. The primary reason for the increases was the contribution of $1.1
million in stock and cash to the Athens Federal Foundation. Non-interest expense increased $18,000
when comparing the three months ended December 31, 2010 to the same period ended December 31, 2009,
primarily due to increase in salary and benefits expense related to the ESOP implemented in
connection with the Banks conversion.
The income tax benefit for the year ended December 31, 2010 was ($7,000) as compared to an income
tax expense of $644,000 for the same period in 2009. The primary reason for the change was the tax
benefit received from the contribution to the Athens Federal Foundation.
Total assets as of December 31, 2010 were $278.0 million compared to $276.5 million at December 31,
2009. At December 31, 2010, the Bank was considered well-capitalized under applicable federal
regulatory capital guidelines.
This release may contain forward-looking statements within the meaning of the federal securities
laws. These statements are not historical facts; rather, they are statements based on the
Companys current expectations regarding its business strategies and their intended results and its
future performance. Forward-looking statements are preceded by terms such as expects,
believes, anticipates, intends and similar expressions.
Forward-looking statements are not guarantees of future performance. Numerous risks and
uncertainties could cause or contribute to the Companys actual results, performance and
achievements to be materially different from those expressed or implied by the forward-looking
statements. Factors that may cause or contribute to these differences include, without limitation,
general economic conditions, including changes in market interest rates and changes in monetary and
fiscal policies of the federal government; legislative and regulatory changes; and other factors
disclosed periodically in the Companys filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are
cautioned not to place undue reliance on them, whether included in this report or made elsewhere
from time to time by the Company or on its behalf. Except as may be required by applicable law or
regulation, the Company assumes no obligation to update any forward-looking statements.
ATHENS BANCHSARES CORPORATION AND SUBSIDIARY
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited Dollars in thousands, except per share amounts)
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited Dollars in thousands, except per share amounts)
THREE MONTHS ENDED | YEARS ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operating Data: |
||||||||||||||||
Total interest income |
$ | 3,695 | $ | 3,548 | $ | 14,529 | $ | 14,668 | ||||||||
Total interest expense |
963 | 1,286 | 4,360 | 5,657 | ||||||||||||
Net interest income |
2,732 | 2,262 | 10,169 | 9,011 | ||||||||||||
Provision for loan losses |
603 | 478 | 1,711 | 1,024 | ||||||||||||
Net interest income after provision for loan losses |
2,129 | 1,784 | 8,458 | 7,987 | ||||||||||||
Total non-interest income |
1,190 | 1,105 | 4,405 | 4,670 | ||||||||||||
Total non-interest expense |
2,667 | 2,649 | 12,027 | 10,668 | ||||||||||||
Income before income taxes |
652 | 240 | 836 | 1,989 | ||||||||||||
Income tax expense (benefit) |
52 | 186 | (7 | ) | 644 | |||||||||||
Net income |
$ | 600 | $ | 54 | $ | 843 | $ | 1,345 | ||||||||
Net income per share, basic |
$ | 0.24 | N/A | $ | 0.34 | N/A | ||||||||||
Average common shares outstanding, basic |
2,521,243 | N/A | 2,511,543 | N/A | ||||||||||||
Net income per share, diluted |
$ | 0.24 | N/A | $ | 0.34 | N/A | ||||||||||
Average common shares outstanding, diluted |
2,522,062 | N/A | 2,511,749 | N/A | ||||||||||||
Performance ratios (annualized for quarterly
period): |
||||||||||||||||
Return on average assets |
0.85 | % | 0.09 | % | 0.30 | % | 0.54 | % | ||||||||
Return on average equity |
4.76 | 0.83 | 1.71 | 5.29 | ||||||||||||
Interest rate spread |
3.87 | 3.59 | 3.59 | 3.67 | ||||||||||||
Net interest margin |
4.17 | 3.81 | 3.92 | 3.89 |
AS OF | AS OF | |||||||
DECEMBER 31, 2010 | DECEMBER 31, 2009 | |||||||
FINANCIAL CONDITION DATA: |
||||||||
Total assets |
$ | 278,015 | $ | 276,458 | ||||
Gross loans |
203,352 | 194,817 | ||||||
Allowance for loan losses |
3,965 | 3,413 | ||||||
Deposits |
215,687 | 236,064 | ||||||
Securities sold under agreements to repurchase |
795 | 899 | ||||||
Total liabilities |
228,437 | 250,736 | ||||||
Stockholders equity (total equity at December 31, 2009) |
49,577 | 25,722 | ||||||
Non-performing assets: |
||||||||
Nonaccrual loans |
$ | 1,912 | $ | 1,997 | ||||
Accruing loans past due 90 days |
127 | 16 | ||||||
Foreclosed real estate |
1,087 | 780 | ||||||
Other non-performing assets |
16 | 10 | ||||||
Trouble debt restructurings |
$ | 6,057 | $ | 3,515 | ||||
Asset quality ratios: |
||||||||
Allowance for loan losses as a percent of total gross loans |
1.95 | % | 1.75 | % | ||||
Allowance for loan losses as a percent of non-performing loans |
194.46 | 169.63 | ||||||
Non-performing loans as a percent of total loans |
1.00 | 1.03 | ||||||
Non-performing loans as a percent of total assets |
0.73 | 0.73 | ||||||
Non-performing assets and troubled debt restructurings as a
percentage of total assets |
3.31 | 2.28 | ||||||
Regulatory capital ratios (Bank only): |
||||||||
Total capital (to risk-weighted assets) |
20.78 | % | 15.33 | % | ||||
Tier 1 capital (to risk-weighted assets) |
19.63 | 14.08 | ||||||
Tier 1 capital (to adjusted total assets) |
13.53 | 9.07 | ||||||
Tangible capital (to adjusted total assets) |
13.53 | 9.07 |
Contact:
|
Athens Bancshares Corporation Jeffrey L. Cunningham President and CEO 423-745-1111 |