Please wait while we load the requested 10-Q report or click the link below:
Nexity Financial Second Quarter Results
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Nexity Financial Corporation (NASDAQ: NXTY):
Second Quarter 2008 Summary:
- Raised $10 million in trust preferred securities to strengthen capital ratios which remain well capitalized: Total Risk-Based Capital 10.53%, Tier 1 Risk-Based Capital 9.23%, Leverage Ratio 8.40%
- Net loss of $0.35 in the quarter
- Proactively identifying and managing problem credits: charged off $2.9 million in the second quarter and increased nonperforming assets $30.3 million bringing nonperforming assets to 4.87% of total assets
- Strengthened loan loss reserve to 1.62% of net loans at June 30, 2008 versus 1.36% at March 31, 2008
- Total loans of $729.0 million, up 15.9% from last year and 45.2% annualized from the 1st Quarter
- Improved liquidity position with total deposit growth of $107.5 million or 77.1% annualized from the 1st Quarter to $668.6 million
- Strong noninterest income growth during the second quarter of 2008 of 378.4% compared with the second quarter of 2007
Nexity Financial Corporation (NASDAQ: NXTY) today reported a second quarter net loss of $2.75 million, or ($0.35) per diluted share compared with net income of $1.14 million, or $0.13 per diluted share for the same period in 2007 and $679,470, or $0.08 per diluted share for the first quarter in 2008. The decrease in earnings was primarily related to a higher provision for loan losses related to an increased level of nonperforming loans and net charge-offs. Net interest income was up from the first quarter and noninterest income continues to be strong. Noninterest income was up $2,227,344 or 378.4% from the same quarter in 2007 primarily due to significantly increased revenue from our investment division.
During the second quarter of 2008, we issued $10.0 million in trust preferred securities to strengthen our capital position during this challenging banking environment. The total risk-based capital, tier 1 risk-based capital, and leverage ratios at June 30, 2008 were 10.53%, 9.23%, and 8.40%, respectively, compared with 10.93%, 9.94%, and 8.72%, respectively, at June 30, 2007. Each of these ratios is above the “well capitalized” regulatory minimums of 10%, 6%, and 5%, respectively.
We are aggressively addressing our problem credits and have established a special asset management initiative spear-headed by a seasoned professional. Individual and unique strategies are being developed to maximize our recovery efforts for each credit relationship. As previously stated we believe the middle part of this year, specifically the second and third quarters of 2008, will prove to be difficult from a charge-off and non-performing asset standpoint. These anticipated results are disappointing but not unexpected given the extreme difficulties being experienced in the markets and geographies we serve.
The following information was filed by Nexity Financial Corp (NXTYQ) on Thursday, July 31, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Nexity Financial Corp's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Nexity Financial Corp.