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Exhibit
99.1
WGNB
Corp. Announces Second Quarter 2008 Earnings
CARROLLTON,
Ga.—(BUSINESS WIRE)—July 11, 2008—WGNB Corp. (NASDAQ:WGNB), the holding company
for First National Bank of Georgia, announced its 2008 second quarter loss of
$4.3 million, or $0.71 per diluted share, compared to its 2007 second quarter
earnings of $2.3 million, or $0.45 per diluted share. The year to
date net loss for WGNB Corp. through June 30, 2008 was $2.5 million, or $0.41
per diluted share, compared to net earnings of $4.2 million, or $0.84 per
diluted share for the first six months of 2007.
The
Company continues to be impacted by the residential real estate construction and
development downturn that is plaguing the metro Atlanta area. The amount of
non-performing assets stands at $88.3 million, or 9.7 percent of total assets,
as of June 30, 2008. The Company has recognized a significant loan loss
provision in the second quarter of 2008 in the amount of $8.1 million ($8.9
million for the year to date) and charged off $1.4 million in accrued interest
($1.7 million for the year to date 2008). The current allowance for
loan loss is $17.4 million, or 2.67 percent of total loans.
The
Company sold $5.8 million of non-performing assets in the second quarter of 2008
($13.3 million for the year to date 2008) and recorded a gain of $109 thousand
($121 thousand for the year to date); however, it recognized $39.5 million of
new non-performing loans in the second quarter of 2008. Management
remains confident that it is fairly and conservatively providing for estimated
loan losses in the construction and development loan portfolio.
“It is
important to highlight that, although the large loan loss provision and
charge-off of accrued interest are not extraordinary items in the banking
industry, the Company maintains core earnings potential,” said H. B. “Rocky”
Lipham, III, Chief Executive Officer. “Adding back the year to date $8.9 million
loan loss provision and the $1.7 million charge off of accrued interest, the
Company’s net earnings would have been approximately $4.0 million net of
applicable taxes. Once we have captured this credit risk in our
earnings stream, the Company can return to profitability with the performing
assets it has built over its long history. It is equally important to
highlight that the Company still has tier 1 capital plus the allowance for loan
losses in the amount of $74.0 million.”
In
response to current asset quality issues and the need for capital preservation,
the Board of Directors has made a decision to suspend further payments of
dividends on the common stock until sufficient earnings have been
attained. “This decision was not taken lightly by the Board of
Directors and reflects its belief that suspending dividends is a necessary step
in the long term viability of the Company. The Company has paid a continuous and
year over year increasing dividend over the past 15 years up until the second
quarter of 2008 when dividends were reduced by fifty percent in response to
recent asset quality issues,” stated W. Thomas Green, Jr., Chairman of the
Board.
“We are
committed to critically evaluating our loan quality, fairly valuing our assets
and reducing non-performing assets as quickly as practical, while maintaining
safe and sound capital levels,” added Lipham. “We think strong capital equals a
strong bank. Taking steps such as the dividend suspension and
pursuing the rights offering we have previously disclosed are designed to
enhance our capital position.”
“The
current economic environment, particularly in the metro Atlanta real estate
market, is being felt by many financial institutions. We believe that our policy
of early recognition of weakness and an early commitment to raise capital
positions us better to weather this storm and return the Company to
profitability as soon as possible. Our earnings in 2008 will be
significantly impacted by this downturn in construction and development lending,
and this downturn is likely not behind us. However, management and
the Board are committed to taking the steps necessary to return the Company to
its long history of higher than peer performance as soon as possible,” concluded
Lipham.
About WGNB Corp.
WGNB
Corp. stock is traded on the NASDAQ Capital Market under the ticker,
“WGNB”. First National Bank of Georgia has seventeen locations in
Carroll, Douglas, Haralson, and Coweta counties and total assets of $909
million. The Bank is the largest and most enduring locally-owned
community bank headquartered in Carroll County.
For more
information about WGNB Corp and First National Bank of Georgia, visit our
investor relations page on our website, www.wgnb.com or www.fnbga.com
. Interested parties may contact Steven J. Haack, Chief Financial
Officer, via e-mail at shaack@fnbga.com . If you prefer to contact us
by mail you can do that by contacting Investor Relations at the mailing address
of WGNB Corp., P.O. Box 280, Carrollton, Georgia 30112 to request
information.
Safe
Harbor
Except
for financial information contained in this press release, the matters discussed
may 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 risk and uncertainties, which
could cause actual results to differ materially from forward-looking
information. These risks and uncertainties include but are not
limited to, general economic conditions, competition and other factors included
in filings with the Securities and Exchange Commission.
When used
in this release, the words “believes,” “estimates,” “plans,” “expects,”
“should,” “will,” “may,” “might,” “outlook,” ”likely,” and “anticipates” or
similar expressions as they relate to WGNB Corp. (including its subsidiaries),
or its management are intended to identify forward-looking
statements.
The
Company, from time to time, becomes aware of rumors concerning the Company or
its business. As a matter of policy, the Company 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 unsubstantiated information regarding the Company. The
Company complies with Federal and State law applicable to disclosure of
information concerning the Company. Investors may be at significant
risk in relying on unsubstantiated information from other
sources.
WGNB
Corp.
Financial
Highlights
(In
Thousands, Except Per Share Data)
|
June
30,
2008
|
June
30,
2007
|
|||||||
|
|
(unaudited)
|
(unaudited)
|
||||||
|
For
the Year to Date
|
||||||||
|
Total
interest income
|
$ | 25,764 | $ | 24,216 | ||||
|
Total
interest expense
|
13,100 | 11,345 | ||||||
|
Net
interest income
|
12,664 | 12,781 | ||||||
|
Provision
for loan loss
|
8,850 | 750 | ||||||
|
Net
interest income after provision
|
3,814 | 12,121 | ||||||
|
Total
other income
|
4,944 | 3,532 | ||||||
|
Total
other expense
|
13,502 | 9,415 | ||||||
|
(Loss)
earnings before income taxes
|
(4,744 | ) | 6,238 | |||||
|
Income
tax benefit (expense)
|
2,281 | (2,004 | ) | |||||
|
Net
(loss) earnings
|
$ | (2,463 | ) | $ | 4,234 | |||
|
Per
Share Data:
|
||||||||
|
Common
shares outstanding
|
6,057,594 | 5,003,790 | ||||||
|
Weighted
average shares outstanding
|
6,057,594 | 5,002,545 | ||||||
|
Weighted
average diluted shares outstanding
|
6,057,594 | 5,042,834 | ||||||
|
Net
(loss) earnings
|
(0.41 | ) | 0.85 | |||||
|
Diluted
net (loss) earnings
|
(0.41 | ) | 0.84 | |||||
|
Cash
dividends declared year to date
|
0.32 | 0.40 | ||||||
|
Book
value
|
12.32 | 10.85 | ||||||
|
Tangible
book value
|
7.51 | 10.85 | ||||||
|
At
Period End:
|
||||||||
|
Total
assets
|
909,549 | 622,798 | ||||||
|
Total
loans
|
651,529 | 515,161 | ||||||
|
Allowance
for loan losses
|
17,367 | 6,373 | ||||||
|
Earning
assets
|
753,345 | 591,243 | ||||||
|
Non-performing
assets
|
88,280 | 6,582 | ||||||
|
Foreclosed
property
|
29,450 | 2,974 | ||||||
|
Intangible
assets
|
29,174 | - | ||||||
|
Deposits
|
741,738 | 510,492 | ||||||
|
Junior
subordinated debentures
|
10,850 | - | ||||||
|
Stockholders’
equity
|
74,672 | 54,274 | ||||||
|
Tangible
stockholders’ equity
|
45,498 | 54,274 | ||||||
|
Key
Performance Ratios Year to Date:
|
||||||||
|
Return
on average assets
|
(0.55 | )% | 1.40 | % | ||||
|
Return
on average equity
|
(6.17 | )% | 15.67 | % | ||||
|
Return
on average tangible equity
|
(9.47 | )% | 15.67 | % | ||||
|
Net
interest margin, tax equivalent
|
3.36 | % | 4.78 | % | ||||
|
Dividend
payout ratio
|
176.82 | % | 52.35 | % | ||||
|
Efficiency
ratio
|
76.68 | % | 57.35 | % | ||||
|
Asset
Quality Ratios:
|
||||||||
|
Non-performing
assets/loans & OREO
|
12.96 | % | 1.27 | % | ||||
|
Loan
loss reserve/total loans
|
2.67 | % | 1.24 | % | ||||
|
Loan
loss reserve/non-performing assets
|
19.67 | % | 96.83 | % | ||||
|
Loan
loss reserve/total capital
|
23.26 | % | 11.74 | % | ||||
|
NCO’s/average
loans
|
0.63 | % | 0.02 | % | ||||
|
Capital
Ratios:
|
||||||||
|
Tangible
equity/tangible assets
|
5.16 | % | 8.71 | % | ||||
|
Tier
1 leverage ratio
|
6.40 | % | 9.59 | % | ||||
|
Total
risk based capital ratio
|
9.53 | % | 11.63 | % | ||||
|
Contact:
|
WGNB
Corp., Carrollton
|
Steven J.
Haack, 770/832-3557
shaack@fnbga.com
or
Media
Contact for WGNB
Charity
Aaron, 770/214-7208
caaron@fnbga.com
The following information was filed by Wgnb Corp (WGNAP) on Monday, July 14, 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 Wgnb 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 , added and changed by Wgnb Corp.
WGNAP Quarterly Reports
- 10-Q Quarterly Report November 2009
- 10-Q Quarterly Report August 2009
- 10-Q Quarterly Report May 2009
- 10-Q Quarterly Report November 2008
-
10-Q Quarterly Report July 2008
