Published:
MidCarolina Financial Corporation Announces Results for 1st Quarter 2008
BURLINGTON, N.C., April 18 /PRNewswire-FirstCall/ -- MidCarolina Financial
Corporation (OTC Bulletin Board: MCFI) today reported record total assets of
$489.9 million at March 31, 2008, an increase of $55.1 million, or 13%, when
compared to the $434.8 million reported at March 31, 2007. Total loans, net of
mortgage loans held-for-sale, were a record $386.9 million at March 31, 2008,
an increase of $60.7 million, or 19%, from the level a year ago. Total
deposits at the end of the quarter were $390.7 million, an increase of $26.6
million, or 7%, when compared to 2007 1st quarter balances.
MidCarolina reported net income available to common shareholders of
$812,000 for the quarter ended March 31, 2008, a decrease of 6% when compared
to the $863,000 reported for the first quarter of 2007. Diluted earnings per
common share, adjusted for a 5-for-4 stock split effected as a 25% stock
dividend issued January 19, 2007, decreased to $0.16 for first quarter 2008,
compared to $0.18 in 2007.
Commenting on these results, Charles T. Canaday, Jr., President and CEO,
said, "The dramatic and rapid decreases in short-term interest rates during
the first quarter, caused by the Federal Reserve's initiatives to stimulate
our nation's economy which has been hampered by real estate related concerns,
have negatively impacted our interest margin. The Bank's asset quality remains
excellent despite the general market conditions and we are pleased that we did
not participate in the origination of sub prime mortgages. Our growth of
quality in-market loans has continued at our planned rate. Due to this loan
growth and our conservative approach to the market conditions noted, we chose
to increase our provision to loan loss reserves by $225,000 in the first
quarter. The Board of Directors and management are encouraged with our
operating results for the first quarter of 2008. We are proud of the growth
MidCarolina achieved in our existing markets ofAlamance andGuilford
Counties. Considering the uncertainty of the housing market as well as the
significant changes in interest rates, we are very pleased with our Company's
performance and credit quality. Our client base continues to expand as
commercial and retail businesses choose MidCarolina as their financial
partner."
MidCarolina Bank provides a complete line of banking services to
individuals and businesses through its six full-service banking offices and
two limited-service offices located in the cities ofBurlington, Graham
Greensboro andMebane, North Carolina. MidCarolina Bank, a wholly owned
subsidiary of MidCarolina Financial Corporation, also provides the Bank's
markets with personalized full brokerage services for stocks, bonds and mutual
funds and an array of insurance products.
MidCarolina Bank is insured by the FDIC and is an equal housing lender.
This press release contains forward-looking statements as defined by
federal securities laws. These statements may address issues that involve
significant risks, uncertainties, estimates and assumptions made by
management. Actual results could differ materially from current projections.
For further information and other factors which could affect the accuracy of
forward-looking statements, please see MidCarolina's reports filed with the
Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934 which are available at the SEC's website (www.sec.gov) or MidCarolina's
website (www.midcarolinabank.com). Readers are cautioned not to place undue
reliance on theses forward-looking statements, which reflect management's
judgments only as of the date hereof. MidCarolina Financial Corporation
undertakes no obligation to revise these statements following the date of this
press release.
PERFORMANCE SUMMARY
MIDCAROLINA FINANCIAL CORPORATION
(Dollars in thousands, except per
share and share data)
For the
Three Months Ended March 31,
2008 2007 %
(Unaudited) (Unaudited) Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income $7,585 $7,305 3.8%
Interest expense 4,318 4,102 5.3%
Net interest income 3,267 3,203 2.0%
Provision for loan losses 225 -
Net interest income after
provision for loan losses 3,042 3,203 -5.0%
Noninterest income 731 577 26.7%
Noninterest expense 2,388 2,388 0.0%
Income before income tax expense 1,385 1,392 -0.5%
Provision for income taxes 469 425 10.4%
Net income 916 967 -5.3%
Dividends on preferred stock (104) (104) -
Net income available to common
shareholders $812 $863 -5.9%
PER SHARE DATA
Earnings per common share, basic $0.17 $0.19 -10.5%
Earnings per common share, diluted 0.16 0.18 -11.1%
PERFORMANCE AND ASSET QUALITY RATIOS
Return on average assets 0.77% 0.92%
Return on average common equity 10.92% 14.72%
Net yield on earning assets
(taxable equivalent) 2.85% 3.21%
Average equity to average assets 7.31% 6.72%
Allowance for loan losses as a
percentage of total loans, end of
period 1.20% 1.29%
Non-performing assets to total
assets, end of period 0.26% 0.58%
Ratio of net charge-offs to
average loans outstanding 0.01% 0.00%
As of March 31,
2008 2007 %
(Unaudited) (Unaudited) Change
SELECTED BALANCE SHEET DATA
End of period balances
Total loans, net of mortgages
held-for-sale $386,882 $326,153 18.6%
Allowance for loan losses 4,650 4,212 10.4%
Loans, net of allowance for loan
losses 382,232 321,941 18.7%
Securities, available for sale 70,304 75,145 -6.4%
Total Assets 489,845 434,769 12.7%
Deposits:
Noninterest-bearing
deposits 30,904 38,944 -20.7%
Interest-bearing demand and
savings 85,911 83,911 2.4%
CD's and other time
deposits 273,845 241,167 13.6%
Total Deposits 390,660 364,022 7.3%
Borrowed Funds 53,000 30,000 76.7%
Junior Subordinated Debentures 8,764 8,764 0.0%
Total interest-bearing liabilities 421,520 363,842 15.9%
Shareholders' Equity 35,454 29,422 20.5%
SOURCE MidCarolina Financial Corporation
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