CORNELIA, Ga., Feb. 6 /PRNewswire-FirstCall/ -- Habersham Bancorp
(Nasdaq: HABC) reports fourth quarter earnings of $65,000 or $.02 per diluted
share, compared to fourth quarter earnings of $1.2 million or $.39 per
diluted share in 2006. An additional expense to the provision for loan losses
totaling $595,000 was made during the fourth quarter of 2007.
Year-to-date net earnings for the year ended December 31, 2007 was $2.9
million or $1.00 per diluted share, a decrease of 44.5 % when compared to $5.3
million or $1.77 per diluted share for the year ended December 31, 2006. The
decrease was attributable primarily to an increase in nonaccrual loans, which
reduced interest income and increased expenses relating to the provision for
loan losses. During 2007, nonaccrual loans increased by $10.4 million, or
2068.7%, and net interest income decreased by $1.7 million, or approximately
8.1%. The increase in nonaccrual loans resulted principally from a decline in
the 1-4 family real estate market in both construction lending and new
mortgages. To maintain an adequate allowance for loan losses, the Company
increased the provision for loan losses to $675,000 during 2007. In
addition, increases in interest costs outpaced increases in interest earned as
variable rate interest loans repriced at lower interest rates more quickly
than the rates paid on deposit balances as each responded to decreases in the
interest rates set by the Federal Reserve Bank.
Total assets of $514.2 million at December 31, 2007, reflects a decrease
of $41.5 million from $555.7 million at December 31, 2006. Management reported
that the decrease is due primarily to decreases in cash and cash equivalents
and short-term investments in federal funds sold. The federal funds sold
balance increased temporarily as a result of a $78.5 million increase in
deposit balances at December 31, 2006 that was paid out during January 2007.
Increases in other real estate, the loan portfolio, investment securities and
premises and equipment totaled approximately $11.0 million (2037.3%), $5.4
million (1.6%), $4.3 million (4.9%) and $3.2 million (24.4%) million,
respectively, for 2007. The increase in other real estate properties resulted
primarily from foreclosures of construction loans secured by 1-4 family
properties located in the metro Atlanta area and surrounding counties. The
net increase in the loan portfolio resulted primarily from activity within the
commercial lending portfolio.
Expansion efforts for 2007 resulted in the purchase of properties in Hall
and Warren counties for new office locations. The Warrenton Office was moved
from a downtown location to a new site to improve operational efficiency.
Construction on the Hall county Flowery Branch Office began in 2007 with an
estimated completion date of 4th quarter 2008. Also, a branch office was
placed into operation for the Flowery Branch area during December 2007 in
order to provide service during the construction phase of the new building.
A decrease in total shareholders' equity of approximately $1.4 million
resulted from a stock repurchase program and dividends paid during 2007 of
approximately $2.2 million and $2.6 million, respectively, offset by year-to-
date earnings of approximately $2.9 million. The Company repurchased 150,000
shares under the repurchase program in October 2007 and paid an additional
$.50 per share dividend during December 2007.
HABERSHAM BANCORP FINANCIAL HIGHLIGHTS
(Unaudited) (dollar amount in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Earnings Summary
Interest income $8,690 $9,115 $36,375 $34,460
Interest expense 4,352 3,811 16,847 13,218
Net interest income 4,338 5,304 19,528 21,242
Provision for loan losses 595 - 675 -
Net interest income
after provision
for loan losses 3,743 5,304 18,853 21,242
Other income 1,085 870 3,863 3,670
Investment securities gains
(loss), net - - 5 (13)
Other expense 4,918 4,527 18,762 17,194
Earnings before
income tax expense (90) 1,647 3,959 7,705
Income tax (benefit) expense (155) 483 1,020 2,412
Net earnings $65 $1,164 $2,939 $5,293
Net earnings per
share-basic $.02 $.39 $1.00 $1.80
Net earnings
per share-diluted $.02 $.39 $1.00 $1.77
Weighted average number
of common shares
outstanding 2,864,245 2,956,559 2,942,292 2,942,737
Weighted average
number of common
and common
equivalent shares
outstanding 2,864,245 2,993,861 2,952,528 2,983,048
Cash dividends declared
per common share $.60 $.09 $.90 $.36
Balance Sheet Summary December 31, 2007 December 31, 2006
Total Assets $514,219 $555,738
Loans, net 348,251 342,816
Deposits 390,267 450,629
Shareholders' Equity 54,182 55,564
SOURCE Habersham Bancorp