CORNELIA, Ga., Feb. 13 /PRNewswire-FirstCall/ -- Habersham Bancorp
(Nasdaq: HABC) reports a fourth quarter loss of $10.2 million or $3.63 per
diluted share, compared to fourth quarter earnings of $65,000 or $.02 per
diluted share in 2007. The decrease resulted principally from a decrease in
net interest income of approximately $2.2 million, additional expense from
provisions for loan losses of approximately $8.7 million and a goodwill
impairment charge of approximately $3.5 million.
Habersham Bancorp reports a loss of $14.8 million or $5.27 per diluted
share for the year ended December 31, 2008 when compared to earnings of $2.9
million or $1.00 per diluted share for the year ended December 31, 2007. The
decrease resulted principally from a decrease in net interest income of
approximately $7.7 million, additional expense from provisions for loan losses
of approximately $16 million and a goodwill impairment charge of approximately
$3.5 million.
Decreases in net interest income resulted from: 1) an increase in the
total dollar balances of loans on nonaccrual status and 2) the total dollar
balances of variable rate loans tied to a decreasing prime interest rate.
Non-performing assets increased approximately $54.3 million from December 31,
2007 to December 31, 2008 primarily as a result of increases in nonaccrual
loans, other real estate and accruing loans 90 days past due totaling
approximately $37.7 million, $15.8 million and $761,000, respectively.
The Company's net interest margins for the fourth quarter and year-to-date
of 2008 were 2.07% and 2.81%, respectively, compared to 3.95% and 4.41% for
the fourth quarter and year-to-date of 2007, respectively.
Total assets of $494.9 million at December 31, 2008, reflect a decrease of
$19.3 million or 3.75% from $514.2 million at December 31, 2007. Decreases in
the total loan portfolios and in cash and cash equivalents and in goodwill of
approximately $39.5 million, $8.1 million and $3.5 million, respectively, were
offset by increases in other real estate, other assets (primarily in income
tax accounts), investment securities and in premises and equipment of
approximately $15.8 million, $7.5 million, $5.6 million and $3.4 million,
respectively.
A decrease in total shareholders' equity of approximately $12.2 million
resulted from a year-to-date loss and dividends paid of approximately $14.8
million and $705,000, respectively, offset by proceeds from the issuance of
preferred stock at December 31, 2008 of approximately $3 million and an
increase in accumulated other comprehensive income of approximately $455,000.
The construction of the Flowery Branch Office was completed during the
fourth quarter of 2008 and began operations in November of 2008.
David D. Stovall, President and C.E.O. of Habersham Bancorp, stated, "The
past several months in the financial services market in particular and the
economy in general, have been plagued with uncertainties.
Among these uncertainties is the issue of goodwill of the company and its
potential impairment. This particular issue is being dealt with by companies
in other segments of the marketplace as well.
"Management of the Company determined that goodwill had become impaired
based upon a decrease in valuation of the Company's common stock during the
fourth quarter of 2008. Therefore, approximately $3.5 million of the fourth
quarter loss is attributable to the non-cash write-off of the Company's total
goodwill account."
He added, "Also, during the fourth quarter of 2008, the Company issued $3
million in Preferred Stock to a private investor, to strengthen our capital
and our commitment for the soundness of the Bank. Additionally, the Company
has a first quarter pending sale of an unrelated company investment which will
result in additional Company capital available for Bank use, if necessary, in
the amount of $750,000."
HABERSHAM BANCORP FINANCIAL HIGHLIGHTS
(Unaudited) (dollar amount in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
Summary of Operations December 31, December 31,
2008 2007 2008 2007
Interest income $ 5,484 $ 8,690 $ 26,135 $ 36,375
Interest expense 3,387 4,352 14,288 16,847
Net interest income 2,097 4,338 11,847 19,528
Provision for loan losses 8,651 595 16,021 675
Net interest (loss) income
after provision for
loan losses (6,554) 3,743 (4,174) 18,853
Other income 852 1,085 3,761 3,773
Investment securities gains 47 - 363 5
Other expense 8,922 4,918 22,638 18,672
(Loss) earnings before
income taxes (14,577) (90) (22,688) 3,959
Income tax benefit (expense) 4,335 155 7,839 (1,020)
Net (loss) earnings $ (10,242) $ 65 $ (14,849) $ 2,939
Net (loss) earnings
per share - basic $(3.63) $ .02 $(5.27) $1.00
Net (loss) earnings
per share - diluted $(3.63) $ .02 $(5.27) $1.00
Weighted average number
of common shares
Outstanding 2,818,593 2,864,245 2,818,593 2,942,292
Weighted average number
of common and common
equivalent shares
outstanding 2,818,593 2,864,245 2,818,593 2,952,528
Cash dividends declared
per common share $ .00 $ .60 $ .25 $ .90
December 31, December 31,
Balance Sheet Summary 2008 2007
Total Assets $ 494,869 $ 514,219
Loans, net 310,607 348,251
Deposits 392,888 390,267
Stockholders' Equity 41,998 54,182
SOURCE Habersham Bancorp