MORRISTOWN,, TN -- Community National Bank of the Lakeway Area (NASDAQ:CNLA) today reported results for the first quarter of 2007, ending March 31, 2007. Net income for the quarter was $127 thousand, or $0.07 per basic and diluted share, compared with a loss of $(40) thousand, or $(0.04) per share for the same prior year period. Highlights for the first quarter of 2007 include:
-- Community National Bank reported its fourth consecutive quarterly
profit. Loan demand continues to be strong, the net interest margin
continues to climb, and efficiency continues to improve as the bank
grows. ROAA increased from (0.16) % for the quarter ended March 31,
2006 to 0.49% for the quarter ended March 31, 2007. Based on current
events and trends, management expects profits to continue to increase.
-- The net interest margin for the quarter ended March 31, 2007 was 3.59%
compared to 2.74% for the same period in 2006. The steady increase in
loans booked continues to influence the margin in a positive manner.
-- Loans grew 29.5% for the twelve month period from $57.9 million at
March 31, 2006 to $75.0 million at March 31, 2007. With the exception
of residential real estate, all categories of loan demand have been and
remain strong.
-- As a result of not replacing brokered time deposits that matured in the
first quarter of 2007, deposits decreased slightly, from $80.4 million
at March 31, 2006 to $75.9 million at March 31, 2007. However, core
deposits (total deposits less brokered time deposits) increased in the
last twelve months by 37% from $49.5 million at March 31, 2006 to $67.6
million at March 31, 2007. Brokered time deposits now account for less
than 3% of total deposits, providing a stable base of low-cost deposits
for future growth while maintaining the flexibility to increase the use
of brokered deposits if necessary to fund loan growth in excess of
deposit growth.
In early April 2007, we opened a loan production Office in Dandridge, TN. According to State of Tennessee statistics, Dandridge and the surrounding area is one of the fastest growing areas in the state. It is a bedroom and retirement community located in Jefferson County, TN. Dandridge is the county seat of Jefferson County where the Bank also has a full service branch. The new office will offer all types of loans, but is expected to produce primarily residential real estate loans, as that area is exploding with lake front and lake view housing.
We also signed a letter of intent to lease property in West Morristown on which we intend to build a full service Branch. The plan is to open in a temporary facility in late second quarter or early third quarter, and then build a permanent facility.
During the quarter ended March 31, 2007, the Bank foreclosed on its first piece of property since opening in April 2003. The $200 thousand foreclosure, as well as $192 thousand of the $241 thousand in nonaccrual loans at March 31, 2007, is attributable to one loan customer relationship. Management does not expect a loss on the disposition of the property securing the $192 thousand credit. The Bank also had $85 thousand in net charge-offs during the quarter primarily related to the foreclosed property. Management does not believe the increase in nonperforming loans indicates a downward trend in the overall quality of the loan portfolio.
Samuel F. Grigsby, Jr. CEO of Community National Bank of the Lakeway Area, commented, "The first quarter of 2007 was another good quarter for the Bank. Our net interest margin continues to climb and our efficiency ratio continues to decrease. It feels good to have established a trend of profitable quarters, having posted four consecutive ones. We are excited about our new loan production office in Dandridge and soon to open full service branch in Morristown. We believe these locations will grow our base, and although they may temporarily slow the rate of increase in profitability, will be very beneficial in the long run to the Bank and our shareholders."
This press release contains forward-looking statements concerning Community National Bank of the Lakeway Area's future activities. Such statements are subject to important factors that could cause Community National Bank of the Lakeway Area's actual results to differ materially from those anticipated by the forward-looking statements. These factors include the factors identified in Community National Bank of the Lakeway Area's Annual Report on Form 10-KSB for the year ended December 31, 2006 under the heading "Risk Factors" which are incorporated herein by reference.
Community National Bank of the Lakeway Area
Financial Highlights
(Unaudited)
Three-Months Ended March 31,
%
2007 2006 Change
All dollars in thousands except per share data
Earnings
Net interest income $882 $642 37.4%
Provision for loan losses 38 41 -7.3%
Noninterest income 90 57 57.9%
Noninterest expense 807 698 15.6%
Income taxes - - 0.0%
Net income 127 (40) 160.9%
Per Share Information
Earnings per share $0.07 $(0.04) 133.3%
Dividends per share 0 0 0.0%
Book value per share 7.99 5.52 44.7%
Operating Ratios
Net interest margin 3.59% 2.74%
Return on average assets 0.49% -0.16%
Return on average equity 3.54% -2.74%
Efficiency ratio 83.0% 99.9%
Net chargeoffs / average loans 0.12% 0.01%
Average Balances
Loans, Net $72,902 $55,121 32.3%
Total earning assets 98,399 93,757 5.0%
Total assets 102,939 98,151 4.9%
Deposits 74,791 80,944 -7.6%
Borrowed funds 13,155 10,920 20.5%
Shareholders' equity 14,359 5,849 145.5%
As of
December
As of March 31, % 31, %
End Of Period Balances 2007 2006 Change 2006 Change
Loans $74,959 $57,864 29.5% $72,971 2.7%
Reserve for loan losses 687 583 17.8% 734 -6.4%
Total earning assets 98,818 93,684 5.5% 98,922 -0.1%
Total assets 103,940 97,444 6.7% 104,348 -0.4%
Deposits 75,879 80,367 -5.6% 75,823 0.1%
Borrowed funds 12,890 11,107 16.1% 13,631 -5.4%
Shareholders' equity 14,486 5,538 161.6% 14,300 1.3%
Asset Quality (End Of Period)
Loans 90 days past due and
still accruing $0 $0 $17
Nonaccrual loans 241 8 295
Other real estate owned 200 0 0
Total nonperforming assets 441 8 312
Nonperforming assets / total
assets 0.42% 0.01% 0.30%
Allowance for loan losses /
total loans 0.92% 1.01% 1.01%
First Call Analyst:
FCMN Contact:
Source: Community National Bank of the Lakeway Area
|
| Notes:
CONTACT: Samuel F. Grigsby, Jr., Chief Executive Officer,
+1-423-317-3228, or Darwin K. Kilday, Chief Financial Officer,
+1-423-317-3229, both of Community National Bank of the Lakeway Area
Web site: http://www.cnbla.com/
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
 | |
| Advertisement |
|
