CapitalSouth Bancorp (?CapitalSouth?) (NASDAQ-GM: CAPB) today announced results for the third quarter of 2006. Total assets at the end of the quarter were $460.6 million, a 17.8% increase over the $390.9 million at the end of the third quarter 2005. Deposits grew 13.8% during the same period, ending the third quarter 2006 at $375.6 million. Stockholders' equity ended the third quarter at $40.5 million, or $13.63 per share, up $1.72 from September 30, 2005.
For the quarter ended September 30, 2006, CapitalSouth reported earnings of $611,000, level with the third quarter 2005. For the quarter, diluted earnings per share decreased 25.9% to $.20 from the $.27 reported for the third quarter 2005 due to the additional shares outstanding as a result of our Initial Public Offering in December 2005. Earnings in the third quarter 2006 resulted in a return on average shareholders' equity (ROE) of 6.02% compared to 9.11% in the same quarter of 2005, and a return on average assets (ROA) of 0.54% compared to 0.64% for the same quarter of 2005.
During the third quarter 2006, CapitalSouth recorded a loan loss provision of $119,000 and recognized $31,000 in net recoveries, representing -0.03% of average total loans for the period compared with net charge-offs representing .05% of average total loans for the third quarter of 2005. At September 30, 2006, nonperforming assets were 0.69% of period end loans and other real estate compared to 0.55% at December 31, 2005. The allowance for loan losses as a percentage of period end nonperforming loans was 200% at September 30, 2006, compared to 229% at December 31, 2005.
?This is an exciting time in the life of our Company as we continue our focus on growth and expansion,? stated W. Dan Puckett, Chairman and CEO. ?Our new market expansion and in-market expansion continues to mature and grow, creating higher returns on these investments. I am pleased that we have been successful in absorbing the expansion costs of the new offices opened late in 2005 and look forward to increased profitability as these offices continue to increase their contribution to our earnings. Additionally, the merger of our subsidiary banks, scheduled for November 2006, will generate efficiencies that will allow us to grow our Montgomery market more profitably.?
CapitalSouth Bancorp is a bank holding company operating nine full service banking offices and one loan production office through two bank subsidiaries as follows: CapitalSouth Bank with seven full service banking offices in Birmingham and Huntsville, Alabama, and Jacksonville, Florida, as well as a loan production office in Atlanta, Georgia; and Capital Bank with two full service banking offices in Montgomery, Alabama. CapitalSouth targets small to medium-sized businesses in the markets it serves. Two of CapitalSouth Bank's offices operate under the name ?Banco Hispano? and provide financial services to the growing Latino community prevalent in their areas. CapitalSouth offers SBA lending services and other loan programs for business owners through its Business Capital Group, which operates through full-service offices as well as the loan production office. CapitalSouth also provides Internet banking services at www.capitalsouthbank.com and www.capitalbankal.com as well as personal investment services.
CapitalSouth Bancorp common stock is traded on the NASDAQ Global Market System under the symbol ?CAPB?.
This press release contains ?forward-looking? statements as defined by the Private Securities Litigation Reform Act of 1995, which is based on CapitalSouth's current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events, or results. Such statements involve potential risks and uncertainties and, accordingly, actual performance results may differ materially. CapitalSouth undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new, updated information, future events, or otherwise.
CapitalSouth Bancorp | ||||||
(Unaudited Financial Highlights) | ||||||
(in thousands, except for per share amounts and percentages) | ||||||
Three Months Ended | ||||||
September 30 | Percentage | |||||
2006 | 2005 | Change | ||||
Net interest income | $ 4,069 | $ 3,380 | 20.4% | |||
Provision for loan losses | 119 | 257 | -53.7% | |||
Noninterest income | 573 | 456 | 25.7% | |||
Noninterest expense | 3,624 | 2,653 | 36.6% | |||
Income before provision for income taxes | 899 | 926 | -2.9% | |||
Provision for income taxes | 288 | 316 | -8.9% | |||
Net income | $ 611 | $ 610 | 0.2% | |||
Weighted average common and common equivalent shares outstanding | ||||||
Basic | 2,969 | 2,248 | 32.1% | |||
Diluted | 3,019 | 2,276 | 32.6% | |||
Net income per common share | ||||||
Basic | $ 0.21 | $ 0.27 | -22.2% | |||
Diluted | $ 0.20 | $ 0.27 | -25.9% | |||
Return on average assets | 0.54% | 0.64% | ||||
Return on average tangible assets | 0.54% | 0.64% | ||||
Return on average equity | 6.02% | 9.11% | ||||
Return on average tangible equity | 6.22% | 9.28% | ||||
Noninterest Income | ||||||
Service charges on deposits | $ 303 | $ 246 | 23.2% | |||
Investment banking income, net | 52 | 17 | 205.9% | |||
Business Capital Group loan income | 130 | 105 | 23.8% | |||
Other | 88 | 88 | 0.0% | |||
Total noninterest income | $ 573 | $ 456 | 25.7% | |||
Noninterest Expense | ||||||
Salaries and employee benefits | $ 1,878 | $ 1,569 | 19.7% | |||
Occupancy and equipment expense | 582 | 398 | 46.2% | |||
Professional fees | 345 | 186 | 85.5% | |||
Advertising | 169 | 39 | 333.3% | |||
Other | 650 | 461 | 41.0% | |||
Total noninterest expense | $ 3,624 | $ 2,653 | 36.6% |
CapitalSouth Bancorp | ||||||
(Unaudited Financial Highlights) | ||||||
(in thousands, except for per share amounts and percentages) | ||||||
Nine Months Ended | ||||||
September 30 | Percentage | |||||
2006 | 2005 | Change | ||||
Net interest income | $ 11,674 | $ 9,477 | 23.2% | |||
Provision for loan losses | 459 | 758 | -39.4% | |||
Noninterest income | 2,569 | 1,688 | 52.2% | |||
Noninterest expense | 10,605 | 7,554 | 40.4% | |||
Income before provision for income taxes | 3,179 | 2,853 | 11.4% | |||
Provision for income taxes | 1,110 | 930 | 19.4% | |||
Net income | $ 2,069 | $ 1,923 | 7.6% | |||
Weighted average common and common equivalent shares outstanding | ||||||
Basic | 2,961 | 2,244 | 32.0% | |||
Diluted | 3,020 | 2,283 | 32.3% | |||
Net income per common share | ||||||
Basic | $ 0.70 | $ 0.86 | -18.6% | |||
Diluted | $ 0.69 | $ 0.84 | -17.9% | |||
Return on average assets | 0.63% | 0.71% | ||||
Return on average tangible assets | 0.63% | 0.71% | ||||
Return on average equity | 6.99% | 9.83% | ||||
Return on average tangible equity | 7.23% | 9.89% | ||||
Noninterest Income | ||||||
Service charges on deposits | $ 830 | $ 721 | 15.1% | |||
Investment banking income, net | 146 | 50 | 192.0% | |||
Business Capital Group loan income | 268 | 640 | -58.1% | |||
Gain on sale of nonmarketable equity securities | 1,055 | - | 100.0% | |||
Other | 270 | 277 | -2.5% | |||
Total noninterest income | $ 2,569 | $ 1,688 | 52.2% | |||
Noninterest Expense | ||||||
Salaries and employee benefits | $ 5,868 | $ 4,256 | 37.9% | |||
Occupancy and equipment expense | 1,661 | 1,240 | 34.0% | |||
Professional fees | 1,036 | 614 | 68.7% | |||
Advertising | 511 | 259 | 97.3% | |||
Other | 1,529 | 1,185 | 29.0% | |||
Total noninterest expense | $ 10,605 | $ 7,554 | 40.4% |
CapitalSouth Bancorp | ||||||
(Unaudited Financial Highlights) | ||||||
(in thousands, except for per share amounts and percentages) | ||||||
Sept 30, | Sept 30, | Percentage | ||||
Period End Balances: | 2006 | 2005 | Change | |||
Total assets | $ 460,602 | $ 390,862 | 17.8% | |||
Earning assets | 438,457 | 368,467 | 19.0% | |||
Securities | 67,903 | 68,485 | -0.8% | |||
Loans held for sale | - | 82 | -100.0% | |||
Loans | 363,759 | 284,623 | 27.8% | |||
Allowance for loan losses | 4,160 | 3,744 | 11.1% | |||
Deposits | 375,599 | 329,910 | 13.8% | |||
Borrowings | 40,248 | 28,951 | 39.0% | |||
Stockholders' equity | 40,496 | 26,796 | 51.1% | |||
Equity to assets | 8.79% | 6.86% | ||||
Leverage ratio | 8.60% | 6.61% | ||||
Book value per common share | $ 13.63 | $ 11.91 | 14.4% | |||
Tangible book value per common share | $ 13.20 | $ 11.35 | 16.3% | |||
Ending shares outstanding | 2,972 | 2,250 | 32.1% |
Asset Quality Analysis | ||||||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
As of / For the Three Months Ended | ||||||||||||||||||||||||||||||
Sept 30, 2006 | June 30, 2006 | Mar 31, 2005 | Dec 31, 2005 | Sept 30, 2005 | ||||||||||||||||||||||||||
Nonacrrual loans | $ 2,085 | $ 1,545 | $ 2,135 | $ 1,684 | $ 1,281 | |||||||||||||||||||||||||
Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||||||||||||
Other real estate owned and repossessions | 431 | 357 | 298 | 111 | 320 | |||||||||||||||||||||||||
Total nonperforming assets |
1st Jan change | Capi. | |
---|---|---|
+18.42% | 582B | |
+17.81% | 313B | |
+17.02% | 251B | |
+20.62% | 209B | |
+20.86% | 180B | |
+25.17% | 169B | |
+9.14% | 164B | |
+10.39% | 154B | |
-8.02% | 140B |
- Stock Market
- Equities
- CAPB Stock
- News CapitalSouth Bancorp.
- Capitalsouth Bancorp : CapitalSouth Bancorp Announces Third Quarter 2006 Results