OMNI FINANCIAL SERVICES, INC. 
By Omni Financial Services, Inc. (NASDAQ: OFSI):
- Third Quarter Diluted EPS Up 58% and Year to Date Diluted EPS Up 49%
- Annual Loan Portfolio Growth of 49%
- Continued Strong Credit Quality: 0.14% Year to Date Net Charge Offs
- Dividend of $0.04 per Share Declared
Omni Financial Services, Inc. (NASDAQ: OFSI) today announced net income for the third quarter of 2006 of $1.44 million or $0.19 diluted earnings per share, an increase of 81.5% from $791,000 or $0.12 diluted earnings per share for the same quarter in 2005 on a ?pro forma? basis. Net income for the quarter ended September 30, 2005 has been adjusted to reflect a combined federal and state tax expense of 38% for the period assuming the Company operated as a C Corporation. Net income for the nine month period ended September 30, 2006 totaled $4.16 million or $0.55 diluted earnings per share on a pro forma basis compared to $2.47 million or $0.37 diluted earnings per share during the same period in 2005, an increase of 68.8%. For comparison purposes, net income for the nine months ended September 2006 has been reduced by a $3.69 million tax credit recorded on January 1, 2006 upon conversion from an S Corporation to a C Corporation and for the nine months ending September 30, 2005 net income has been adjusted to reflect a combined federal and state tax expense of 38% for the period assuming the Company operated as a C Corporation.
The Company priced an initial public stock offering on September 28, 2006 and consummated the offering on October 4, 2006 issuing 3,350,000 common shares. On October 12, 2006 the Company issued an additional 502,500 common shares pursuant to the underwriters' exercise of their over-allotment option. Proceeds net of underwriters' fees and offering costs approximated $33.0 million and were received in October 2006 and as a result had no effect on total assets or equity as of September 30, 2006.
With total assets of $643.3 million as of September 30, 2006, the Company recorded a $166.3 million, or 34.9%, increase in total assets as compared to December 31, 2005. Total earning assets at the end of the quarter were $609.9 million, an increase of 40.5% from September 30, 2005. Strong loan production contributed to this increase. Gross loans grew to $468.1 million at September 30, 2006 from $314.7 million at September 30, 2005. ?We continue to be excited by our proven ability to sustain impressive loan growth,? stated Stephen M. Klein, Chairman and Chief Executive Officer. ?In just one year loans have increased $153 million, an impressive 49%. Our Redevelopment Lending group continues to lead the way by more than doubling its portfolio in the last twelve months. These loans totaled $116.7 million at September 30, 2006.?
Deposits increased to $495.2 million at September 30, 2006, an increase of 47.2%, compared to $336.3 million at September 30, 2005. Core deposits, which equal total deposits less brokered certificates of deposit, represented 46.0% of the Company's deposit mix at September 30, 2006, compared to 61.8% at September 30, 2005. The Company has placed increasing reliance on brokered certificates of deposit to fund strong loan growth.
The Company's commitment to a strong credit culture is again evidenced by its low charge off ratio. Net charge-offs for the nine month periods ended September 30, 2006 and 2005, were $421,000 and $266,000, respectively. Annualized, this equates to 0.14% and 0.13% of average loans for nine month periods of 2006 and 2005, respectively. The allowance for loan losses totaled $6.2 million or 1.33% of loans at September 30, 2006 compared $4.8 million or 1.51% of loans at September 30, 2005. The loan loss provision for the quarter and nine months ended September 30, 2006 totaled $916,000 and $1.87 million, respectively, compared to $160,000 and $840,000 for the quarter and nine months ended September 30, 2005. The decrease in overall percentage of loan loss reserves reflects the portfolio growth in loan products which have lower historical loss rates.
At the October 24, 2006 meeting, the board of directors of Omni Financial Services, Inc. declared a quarterly cash dividend of $0.04 per share. The dividend is payable on November 17, 2006 to shareholders of record as of November 6, 2006.
About Omni
Omni Financial Services, Inc. is a bank holding company headquartered in Atlanta, Georgia. Omni Financial Services, Inc. provides a full range of banking and related services through its wholly owned subsidiary, Omni National Bank, a national bank headquartered in Atlanta, Georgia. We have one full service banking location in Atlanta, one in Dalton, Georgia, five in North Carolina, one in Chicago, Illinois, and one in Tampa, Florida. In addition, we have loan production offices in Charlotte, North Carolina, Dalton, Georgia, and Birmingham, Alabama. While we provide traditional lending and deposit gathering capabilities, we also offer a broad array of financial products and services, including specialized services such as community redevelopment lending, small business lending and equipment leasing, warehouse lending, and asset-based lending. Omni Financial Services, Inc.'s common stock is traded on the NASDAQ Global Market under the ticker symbol "OFSI."
Except for historical information contained herein, the matters discussed in this press release consist of forward-looking information under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking information is necessarily subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. These risks and uncertainties include, but are not limited to, unforeseen general economic conditions, potential difficulties in the execution of Omni Financial Services, Inc.'s business and growth strategies, competitive risks and other factors set forth from time to time in Omni Financial Services, Inc.'s filings with the Securities and Exchange Commission. When used in this release, the words ?believes,? ?estimates,? ?plans,? ?expects,? ?should,? ?will,? ?may,? ?might,? ?outlook,? and ?anticipates? are similar expressions as they relate to Omni Financial Services, Inc. (including its subsidiaries), or its management, and are intended to identify forward-looking statements.
Omni Financial Services, Inc. from time to time becomes aware of rumors concerning its business, prospects and results of operations. As a matter of policy, Omni Financial Services, Inc. does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and other unsubstantiated information. Omni Financial Services, Inc. complies with federal and state laws applicable to the disclosure of information concerning its business, prospects and results of operations. Investors may be at significant risk in relying on unsubstantiated information from other sources.
| Omni Financial Services, Inc. | ||||
| Consolidated Balance Sheets | ||||
| (Dollars in thousands) | ||||
Sept. 30, |
Dec. 31, |
Sept. 30, | ||
| ASSETS | (Unaudited) | (Audited) | (Unaudited) | |
| Cash and due from banks | $ 7,228 | $ 8,597 | $ 4,414 | |
| Federal funds sold | 2,084 | 1,818 | - | |
| Investment securities available-for-sale | 127,630 | 105,824 | 97,620 | |
| Loans held-for-sale | 4,866 | 8,205 | 17,386 | |
| Loans | 468,091 | 327,635 | 314,680 | |
| Allowance for Loan Losses | (6,236) | (4,791) | (4,755) | |
| Net loans | 461,855 | 322,844 | 309,925 | |
| Other real estate owned | 2,251 | 1,178 | 1,645 | |
| Premises and equipment | 12,328 | 11,203 | 11,060 | |
| Goodwill and other intangibles | 5,799 | 5,820 | 5,772 | |
| Accrued interest receivable and other assets | 19,281 | 11,516 | 10,727 | |
| $ 643,322 | $477,005 | $ 458,549 | ||
| LIABILITIES & SHAREHOLDERS' EQUITY | ||||
| Demand | $ 38,588 | $ 26,687 | $ 22,363 | |
| Savings and money market | 15,088 | 9,439 | 9,080 | |
| Certificates-retail | 173,921 | 181,135 | 176,274 | |
| Certificates-brokered | 267,555 | 133,385 | 128,565 | |
| Total deposits | 495,152 | 350,646 | 336,282 | |
| Fed funds purchased/repos | - | - | 2,419 | |
| Federal Home Loan Bank borrowings | 82,500 | 69,500 | 71,000 | |
| Junior subordinated debentures | 20,620 | 20,620 | 20,000 | |
| Other liabilities | 7,119 | 7,158 | 6,507 | |
| Total liabilities | 605,391 | 447,924 | 436,208 | |
| Total shareholders' equity | 37,931 | 29,081 | 22,341 | |
| $ 643,322 | $ 477,005 | $ 458,549 | ||
| Omni Financial Services, Inc. | |||||
| Consolidated Statements of Income | |||||
| (Dollars in thousands) | |||||
| Three months ended | Nine months ended | ||||
| September 30, | September 30, | ||||
| 2006 | 2005 | 2006 | 2005 | ||
| (unaudited) | |||||
| Interest income: | |||||
| Interest and fees on loans | $ 11,814 | $ 7,360 | $ 31,099 | $ 18,744 | |
| Interest on investment securities | 1,540 | 1,042 | 4,370 | 2,699 | |
| Total interest income | 13,354 | 8,402 | 35,469 | 21,443 | |
| Interest expense: | |||||
| Interest on deposits | 5,210 | 2,842 | 12,537 | 6,596 | |
| Interest on other borrowings | 1,496 | 845 | 4,175 | 2,182 | |
| Total interest expense | 6,706 | 3,687 | 16,712 | 8,778 | |
| Net interest income | 6,648 | 4,715 | 18,757 | 12,665 | |
| Provision for loan losses | 916 | 160 | 1,866 | 840 | |
| Net interest income after provision for loan losses | 5,732 | 4,555 | 16,891 | 11,825 | |
| Noninterest income: | |||||
| Service charges on deposit accounts | 195 | 137 | 535 | 392 | |
| Investment securities (losses) gains, net | 14 | (1) | 13 | (7) | |
| Gain on sale of loans | 199 | 817 | 916 | 1,216 | |
| Other income | 81 | (39) | 424 | 398 | |
| Total noninterest income | 489 | 914 | 1,888 | 1,999 | |
| Noninterest Expense: | |||||
| Salaries and employee benefits | 2,081 | 2,118 | 6,242 | 5,209 | |
| Occupancy and equipment | 734 | 577 | 2,099 | 1,518 | |
| Advertising and marketing | 52 | 118 | 299 | 247 | |
| Professional fees | 180 | 192 | 796 | 515 | |
| Office suppplies | 78 | 89 | 220 | 182 | |
| Loan related and other real estate owned expense | 120 | 195 | 440 | 543 | |
| Telecommunications | 125 | 120 | 410 | 302 | |
| Other | 693 | 924 | 2,061 | 1,767 | |
| Total noninterest expense | 4,063 | 4,333 | 12,567 | 10,283 | |
| Income before income taxes | 2,158 | 1,136 | 6,212 | 3,541 | |
| Income tax expense (benefit) | 722 | - | (1,641) | - | |
| Net income | $ 1,436 | $ 1,136 | $ 7,853 | $ 3,541 | |
| Pro Forma data (1): | |||||
| Net income: | |||||
| As reported | $ 1,436 | $ 1,136 | $ 7,853 | $ 3,541 | |
| Adjustment for income tax expense | - | (345) | - | (1,076) | |
| Adjustment for change in tax status | - | - | (3,691) | - | |
| Pro forma net income | $ 1,436 | $ 791 | $ 4,162 | $ 2,465 | |
| (1) Adjusted to reflect the $3.69 M tax credit related to our conversion from an S-Corporation to a C-Corporation, recognized on January 1, 2006, and a combined Federal and state tax rate of 38% for the periods in 2005 that we operated as an S-Corporation. | |||||
| Omni Financial Services, Inc. | ||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||||||||||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Share Data | ||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding - basic | 7,549,192 | 6,530,252 | 7,419,287 | 6,530,252 | ||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 7,713,775 | 6,616,895 | 7,583,706 | 6,616,895 | ||||||||||||||||||||||||||||||||||
| Book value at quarter end | $ 5.06 | $ 3.41 | $ 5.06 | $ 3.41 | ||||||||||||||||||||||||||||||||||
| Tangible book value at quarter end | $ 4.29 | $ 2.53 | $ 4.29 | $ 2.53 | ||||||||||||||||||||||||||||||||||
| Basic earnings per share/GAAP | $ 0.19 | $ 0.17 | $ 1.06 | $ 0.54 | ||||||||||||||||||||||||||||||||||
| Diluted earnings per share/GAAP | $ 0.19 | $ 0.17 | $ 1.04 | $ 0.53 | ||||||||||||||||||||||||||||||||||
| Basic earnings per share/Pro Forma (1) | $ 0.19 | $ 0.12 | $ 0.56 | $ 0.38 | ||||||||||||||||||||||||||||||||||
| Diluted earnings per share/Pro Forma (1) | $ 0.19 | $ 0.12 | $ 0.55 | $ 0.37 | ||||||||||||||||||||||||||||||||||
| Cash dividends declared (2) | $ 0.040 | $ 0.027 | $ 0.108 | $ 0.111 | ||||||||||||||||||||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||||||||||||||||||||
| Return on average assets/Pro Forma (1) (3) | 0.93% | 0.72% | 0.99% | 0.86% | ||||||||||||||||||||||||||||||||||
| Return on average equity/Pro Forma (1) (3) | 15.46% | 13.10% | 15.43% | Share
© Business Wire - 2006
OMNI Financial Services, Inc. is a financial services company. The Company is engaged in offering a range of financial products and services. It provides solutions to assist individuals, professionals, and business owners. The Company offers a range of services, including personal financial services, wealth management, business solutions, business continuation strategies, and asset protection. Its personal financial planning services include personal financial planning and retirement preparation. Its wealth management services include assessing risk tolerance, designing asset allocation strategies, and evaluating investment strategies. The Company's business solutions include employee growth and retention plans, key executive benefits, and asset management. Its business continuation/exit strategies include business valuations, buy/sell agreements, and funding strategies. It offers asset protection plans for physicians, business owners, or owners of rental real estate.
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