Syringa Bancorp Consolidated Third Quarter 2009 Financial Results |
Syringa Bancorp (OTCBB:SGBP) reported that capital levels remain strong despite an unprecedented operating environment for community banks. Its subsidiary, Syringa Bank, reported risk based capital of 12.03% at September 30, 2009, which exceeds the FDIC's minimum "well capitalized" benchmark for risk based capital ratio of 10%. Management continues to actively reflect declining real estate prices and borrower financial stress in its loan portfolio and added $7,620,159 to the allowance for loan and lease losses in the third quarter of 2009. The Bancorp also recorded a $2,472,488 one-time charge for tax expense in the third quarter to write-off all existing deferred tax assets. Due to these unusually large expense items, Syringa Bancorp reported a net loss of $10,699,735 in the third quarter of 2009 and a net loss of $15,058,760 or $3.67 per diluted share through the first three quarters of 2009.
"Economic conditions are particularly challenging for community banks right now due to elevated loan losses and reduced net interest income caused by historically low interest rates and shrinking balance sheets," said Jerry F. Aldape, President and CEO. "In the third quarter, we maintained a strong capital position while recognizing stress in our loan portfolio, liquidating some non-performing assets, and writing-off a deferred tax asset. On the funding side, local customer deposit growth was strong in the third quarter due to product enhancements and the safety of FDIC-insured accounts. By writing-off the deferred tax asset we presented a very conservative balance sheet at the end of the quarter and retain the ability to offset future income taxes once we return to profitability. We have confidence in the long-term economic strength and vitality of Idaho and look forward to more normalized economic conditions and interest rates following this recession. Until then, we are aggressively managing the stress in our loan portfolio and preparing our organization for the future."
Local customer deposits as of September 30, 2009 increased $21,837,780 (14.3%) to $174,516,019 from $152,678,238 at September 30, 2008. Syringa Bancorp's total assets as of September 30, 2009 decreased $23,906,156 (8.1%) to $269,885,371 from $293,791,528 at September 30, 2008. Net interest income in the first nine months of 2009 decreased $1,739,114 (19.5%) to $7,163,376 from $8,902,490 in the same period of 2008.
Syringa Bancorp's non-interest income in the first nine months of 2009 improved $167,347 (16.7%) to $1,171,404 from $1,004,057 in the same period of 2008, including a $155,492 (43.4%) increase in non-interest income generated from mortgage activity. Non-interest expenses in the first nine months of 2009 improved $501,725 (5.4%) to $8,781,242 from $9,282,967 in the same period of 2008, including a $1,378,079 (24.4%) decrease in expense related to salaries and benefits. Total non-interest expenses were reduced despite significant increases in FDIC insurance, losses on real estate owned, and loan costs.
Syringa Bancorp was organized in April 2005 as a holding company of Syringa Bank. The Bank was formed in 1996 and has since expanded to six branch locations, two mortgage offices, and a residential construction loan production office, all within the state of Idaho. Syringa Bank is an Idaho state-chartered commercial bank.
Statements in this report regarding future events, performance or results are "forward-looking statements" within the meaning of the Private Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe harbors of the PSLRA. Actual results could be materially different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ include but are not limited to: general economic and banking business conditions, competitive conditions between banks and non-bank financial service providers, interest rate fluctuations, regulatory and accounting changes, risks related to construction and development, commercial real estate and consumer lending and other risks. Forward-looking statements are accurate only as of the date released, and we do not undertake any responsibility to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Syringa Bancorp and Subsidiary Consolidated Balance Sheet and Income Statement Unaudited Balance Sheet Income Statement (In Thousands) (In Thousands) For Nine Months Ending 9/30/2009 9/30/2008 9/30/2009 9/30/2008 Assets Cash and Due from Banks 4,146 3,742 Interest and Fee Income Fed Funds/Investments 591 659 Fed Funds/Investments 22,240 19,318 Loans 10,392 14,129 Total Interest and Fee Income 10,983 14,789 Gross Loans 243,750 265,914 Loan Loss Reserve (6,200 ) (4,427 ) Interest Expense Net Loans 237,550 261,488 Deposits 3,079 4,594 Other Borrowings 492 1,044 Premises & Fixed Assets 3,090 3,421 TPS Interest Expense 248 248 Total Interest Expense 3,819 5,886 Other Assets 2,859 5,823 Net Interest Income 7,163 8,902 Total Assets 269,885 293,792 Loan Loss Provision 12,140 2,858 Liabilities Deposits Net Interest Income after Non-Interest Bearing 24,323 31,505 Provision for Loan Losses (4,976 ) 6,044 Interest Bearing 197,113 172,479 Total Deposits 221,436 203,984 Non-Interest Income 1,171 1,004 Other Borrowings 20,000 47,604 Non-Interest Expense Trust Preferred Securities (TPS) 5,155 5,155 Salaries and Benefits 4,275 5,653 Occupancy / FF&E 1,009 1,050 Other Liabilities 794 1,580 Data Processing / ATM / Online Banking 297 306 Total Liabilities 247,385 258,322 Marketing 150 414 FDIC Insurance 476 131 Capital Loan Costs 502 279 Stockholders' Equity 34,417 34,499 Loss (Gain) on REO 838 7 Series A & B Preferred Equity 8,057 - Other 1,235 1,443 Series A & B Preferred Dividends (253 ) - Total Non-Interest Expense 8,781 9,283 Undivided Profits (4,893 ) 2,642 Current Year Earnings (15,059 ) (1,314 ) Pre-Tax Net Income (12,586 ) (2,235 ) Net Unrealized Gain/(Loss) on AFS Securities 231 (358 ) Income Taxes 2,472 (921 ) Total Capital 22,500 35,469 Net Income (15,059 ) (1,314 ) Total Liabilities and Capital 269,885 293,792 ------------------------------------------------------------------------------- A service of YellowBrix, Inc. |
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