DARIEN, Ga., July 27 /PRNewswire-FirstCall/ -- Southeastern
Banking Corporation (Other OTC: SEBC) today announced its operating
results for the quarter and six months ended June 30, 2010 compared to the corresponding
periods last year.
- A net loss approximating $2,052,000 was recognized for the 2010 second
quarter, compared to net income of $104,000 for the 2009 first quarter. On a
per share basis, the net loss totaled $0.66 in 2010 versus net income of $0.03 in 2009.
- Year-to-date, SEBC recognized a $3,224,000 net loss at June 30, 2010, compared to net income of
$742,000 at June 30, 2009. On a per share basis, the
net loss totaled $1.03 in 2010, a
$1.26 decline from $0.23 net income in 2009.
Major variances in the 2010 – 2009 quarterly results
included:
- $1,885,000 increase in the
provision for loan losses to address loan quality issues;
- $604,000 reduction in net
interest income due to an increase in nonaccrual loans and lower
average balances on higher-yielding earning assets, specifically
loans and investment securities, offset by a reduction in interest
expense on deposits and other borrowed funds;
- $188,000 net loss on sales
($143,000) and other-than-temporary
impairment ($45,000) of investment
securities available-for-sale during the second quarter of 2010
versus $0 in 2009;
- $912,000 net loss on sales
($2,000) and write-downs ($910,000) on foreclosed real estate in 2010
versus $96,000 net loss in 2009;
and
- $1,299,000 increase in income tax
benefit.
Following the quarterly trend, variances in the 2010 – 2009
year-to-date results included:
- $3,930,000 increase in the
provision for loan losses;
- $1,164,000 reduction in net
interest income;
- $188,000 net loss on sales and
other-than-temporary impairment of investment securities
available-for-sale during 2010 year-to-date versus a $198,000 net gain on sales in 2009;
- $908,000 net loss on sales and
write-downs on foreclosed real estate in 2010 versus $82,000 in 2009; and
- $2,332,000 reduction in income
tax expense.
SEBC also announces the suspension of dividends until operating
performance improves and credit losses abate. Regulatory
approval will be required prior to payment of a future
dividend.
Southeastern Banking Corporation (the Company), with assets of
$437 million, is a financial services
company with operations in southeast Georgia and northeast Florida. Southeastern Bank (SEB), the
Company's bank subsidiary chartered in 1888, offers a full line of
commercial and retail services to meet the financial needs of its
customer base through its seventeen branch locations and ATM
network. Services offered include traditional deposit and
credit services, long-term mortgage originations, and credit cards.
SEB also offers 24-hour delivery channels, including internet
and telephone banking, and provides insurance and investment
brokerage services. The Company is headquartered in
Darien, Georgia. More
information on the Company and its subsidiaries can be obtained
through SEB's website at www.southeasternbank.com or through
periodic filings with the Securities & Exchange Commission at
www.sec.gov.
SOURCE Southeastern Banking Corporation