Attached files
file | filename |
---|---|
8-K - FORM 8-K - Reliance Bancshares, Inc. | c65585e8vk.htm |
Exhibit 99.1
News
FOR IMMEDIATE RELEASE
Contact: Thomas T. Cooke
(314) 378-7800
tcooke@reliancebankstl.com
Contact: Thomas T. Cooke
(314) 378-7800
tcooke@reliancebankstl.com
Earnings Release
RELIANCE BANCSHARES, INC. ANNOUNCES SECOND QUARTER, 2011 RESULTS
ST. LOUIS, July 22, 2011 Reliance Bancshares, Inc., the parent company of Reliance Bank and
Reliance Bank, FSB, announces its second quarter, 2011 results. Problem loans decreased $38.9
million since December 31, 2010 or 22.7% while problem assets decreased $15 million or 7.4% from
December 31, 2010. The Company has experienced two consecutive quarters of problem loan reduction.
Non-performing loans totaled 16.2% of outstanding loans as of June 30, 2011, compared to 17.6% at
December 31, 2010. During the second quarter of 2011, net charge-offs were $6.6 million. We
continue to make headway in the resolution of our troubled assets and I am pleased with the
progress that has been achieved in reducing our problem loans for the second consecutive quarter,
said Allan D. Ivie, IV, President and CEO.
The Company reports a net loss of $8.2 million compared to a net loss of $3.5 million for the
second quarter, 2010. Year-to-date, the net loss totaled $13.4 million compared to a net loss of
$6.0 million for the same period last year. The Company contributed $11.9 million to the reserve
for loan losses during the first six months comparing favorably to $17.3 million for the same
period in 2010. The second quarter 2011 provision for possible loan losses was $6.8 million
compared to $9.6 million for the same period last year. At June 30, 2011 the reserve for loan
losses was $37.3 million which represented 4.57% of outstanding loans. Management remains
cautiously optimistic that the number of problem credits has stabilized.
Originated In | ||||||||||||
Florida | All other | Total | ||||||||||
Net Charge-offs (quarter ended 6/30/2011) |
$ | 0.3 | million | $ | 6.3 | million | $ | 6.6 | million | |||
Net Charge-offs (quarter ended 6/30/2010) |
$ | 3.9 | million | $ | 2.3 | million | $ | 6.2 | million | |||
Non-performing Loans (6/30/2011) |
$ | 20.5 | million | $ | 111.7 | million | $ | 132.2 | million | |||
Non-performing Loans (12/31/2010) |
$ | 26.3 | million | $ | 144.8 | million | $ | 171.1 | million | |||
Non-performing Loans (6/30/2010) |
$ | 22.6 | million | $ | 71.3 | million | $ | 93.9 | million | |||
Non-performing Assets* (6/30/2011) |
$ | 35.0 | million | $ | 152.1 | million | $ | 187.1 | million | |||
Non-performing Assets* (12/31/2010) |
$ | 41.6 | million | $ | 160.5 | million | $ | 202.1 | million | |||
Non-performing Assets* (6/30/2010) |
$ | 42.9 | million | $ | 87.3 | million | $ | 130.2 | million | |||
Outstanding Loans Originated In
Respective Markets |
$ | 43.8 | million | $ | 771.3 | million | $ | 815.1 | million |
* | Included in Non-performing Assets are Non-performing Loans, Other Real Estate Owned and Non-performing Investments. |
Net interest income for the second quarter, 2011, was $8.5 million, a 16.7% decrease compared to
the prior years quarter. For the six months ended June 30, 2011, net interest income decreased
$3.2 million, or 15% compared to the same period in 2010. The reduction in net interest income is
primarily due to a planned decline in commercial real estate loan volumes. The Company has
realized a positive impact to earnings as a result of reduced deposit costs, enhanced deposit mix
and improved loan yields. Mr. Ivie added, Despite the challenges to asset quality, the underlying
strength of our retail branch network continues to demonstrate our ability to generate positive and
sustainable returns.
The Company continues to achieve overhead cost savings although the costs to resolve problem assets
have challenged the Companys ability to achieve positive earnings. The total of provision
expense, other real estate expense and professional fees was $11.2 million in the second quarter
2011 and $19.4 million year-to-date compared to $11.1 million in the second quarter of 2010 and
$20.3 million year-to-date at June 30, 2010. Mr. Ivie concluded, The cost of resolving problem
assets has contributed significantly to our inability to return the bank to profitability. We will
continue to aggressively address credit quality and anticipate shrinkage in our overall loan
portfolio. The shrinkage will allow us to better manage capital as we reposition the Bank to take
advantage of improving economic conditions.
Total assets as of June 30, 2011 were $1.2 billion. This represents a 5.1% decrease compared to
December 31, 2010. For the six month period ended June 30, 2011, loans decreased 16.0% or $155.2
million compared to year-end December, 2010. The reduction in loans resulted from scheduled
amortizations, pay downs and charge-offs. In addition, the Company completed the planned closure
of the loan production offices in Phoenix and Houston. Management remains focused on improving
credit quality, conserving capital and growing core products and business relationships.
The Company continues to shrink its Commercial Real Estate loans while improving balance sheet
liquidity. The loan to deposit ratio has dropped to 79.9% at June 30, 2011 compared to 89.8% at
December 31, 2010. Total deposits for the quarter ended June 30, 2011 were $1.0 billion, a
decrease of 5.6% compared to December 31, 2010. Noninterest bearing deposits increased $6.7
million since December 31, 2010 or 10.9% while all other deposits decreased $66.6 million or 6.5%
since December 31, 2010. The Company continues to reduce its reliance on wholesale and
rate-sensitive deposits there by lowering its cost of funding and reducing volatility in its
deposit volumes.
About Reliance Bancshares, Inc.
Reliance Bancshares, Inc., headquartered in St. Louis, MO, is a publicly held Missouri bank holding
company that provides a full range of banking services to individual and corporate customers. The
Companys common stock is quoted on the Pink Sheets (www.pinksheets.com) under the symbol
RLBS. It currently operates 20 branches in the St. Louis metropolitan area under the name of
Reliance Bank. It also owns and operates Reliance Bank, FSB, which is located in Fort Myers,
Florida, with two branches in the Southwest Florida area. The companys total assets as of June
30, 2011 exceeded $1.2 Billion. Reliance Banks website can be found at
www.reliancebankstl.com.
Forward looking statements
This news release may include forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. When used in this news release, the words anticipates,
expects, intends and similar expressions as they relate to Reliance Bancshares, its operations
or its management are intended to identify such forward-looking statements. These forward-looking
statements are subject to numerous risks and uncertainties. There are important factors that could
cause actual results to differ materially from those in forward-looking statements, certain of
which are beyond our control. These factors, risks and uncertainties are discussed in our most
recent Annual Report on Form 10-K filed with the SEC, as updated from time to time in our other SEC
filings.
Contact:
Reliance Bancshares, Inc.
Investor Relations
Thomas T. Cooke
314-569-7200
tcooke@reliancebankstl.com
Reliance Bancshares, Inc.
Investor Relations
Thomas T. Cooke
314-569-7200
tcooke@reliancebankstl.com
RELIANCE BANCSHARES, INC.
CONSOLIDATED SUMMARY
(unaudited)
CONSOLIDATED SUMMARY
(unaudited)
(in thousands)
December 31, | ||||||||
BALANCE SHEETS | June 30, 2011 | 2010 | ||||||
ASSETS |
||||||||
Cash and due from banks |
$ | 9,673 | $ | 8,364 | ||||
Short-term investments |
90,811 | 18,800 | ||||||
Debt and equity investments |
238,131 | 241,599 | ||||||
Loans |
815,132 | 970,289 | ||||||
Less reserve for loan losses |
(37,279 | ) | (37,301 | ) | ||||
Net loans |
777,853 | 932,988 | ||||||
Premises and equipment, net |
34,872 | 35,778 | ||||||
Goodwill and identifiable intangible assets |
1,262 | 1,270 | ||||||
Other real estate owned |
54,311 | 30,851 | ||||||
Other assets |
22,995 | 26,375 | ||||||
Total assets |
$ | 1,229,908 | $ | 1,296,025 | ||||
LIABILITIES & EQUITY |
||||||||
Noninterest bearing deposits |
67,988 | 61,288 | ||||||
Interest bearing deposits |
952,268 | 1,018,871 | ||||||
Total deposits |
1,020,256 | 1,080,159 | ||||||
Short-term borrowings |
23,600 | 15,178 | ||||||
Long-term FHLB borrowings |
88,000 | 93,000 | ||||||
Other liabilities |
6,370 | 3,442 | ||||||
Total liabilities |
1,138,226 | 1,191,779 | ||||||
Stockholders equity |
91,682 | 104,246 | ||||||
Total liabilities & equity |
$ | 1,229,908 | $ | 1,296,025 | ||||
For the Six | For the Six | For the Quarter | For the Quarter | |||||||||||||
months Ended | months Ended | Ended | Ended | |||||||||||||
INCOME STATEMENTS | June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | ||||||||||||
Total interest income |
$ | 26,552 | $ | 34,265 | $ | 12,755 | $ | 16,657 | ||||||||
Total interest expense |
8,715 | 13,236 | 4,253 | 6,446 | ||||||||||||
Net interest income |
17,837 | 21,029 | 8,502 | 10,211 | ||||||||||||
Provision for loan losses |
11,916 | 17,320 | 6,816 | 9,628 | ||||||||||||
Net after provision |
5,921 | 3,709 | 1,686 | 583 | ||||||||||||
NONINTEREST INCOME |
||||||||||||||||
Service charges on deposits |
407 | 460 | 216 | 236 | ||||||||||||
Gain (loss) sale of securities |
57 | 266 | 57 | 201 | ||||||||||||
Other income |
1,292 | 714 | 764 | 349 | ||||||||||||
Total noninterest income |
1,756 | 1,440 | 1,037 | 786 | ||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||
Salaries and benefits |
7,014 | 6,489 | 3,390 | 3,224 | ||||||||||||
Other real estate expense |
6,276 | 2,596 | 3,738 | 1,222 | ||||||||||||
Occupancy and equipment |
2,073 | 2,161 | 1,015 | 1,074 | ||||||||||||
FDIC assessment |
1,777 | 1,539 | 868 | 754 | ||||||||||||
Data processing |
1,243 | 350 | 654 | 208 | ||||||||||||
Advertising |
||||||||||||||||
Other |
2,671 | 2,183 | 1,243 | 1,083 | ||||||||||||
Total noninterest expense |
21,054 | 15,318 | 10,908 | 7,565 | ||||||||||||
Loss before taxes |
(13,377 | ) | (10,169 | ) | (8,185 | ) | (6,196 | ) | ||||||||
Income taxes |
| (4,167 | ) | | (2,693 | ) | ||||||||||
Net loss |
$ | (13,377 | ) | $ | (6,002 | ) | $ | (8,185 | ) | $ | (3,503 | ) | ||||
###