Waccamaw Bankshares Inc (WBNK, Financial) filed Quarterly Report for the period ended 2009-06-30.
Waccamaw Banks offers investment services through its subsidiary Waccamaw Financial Services Inc. which offers a wide range of investment and insurance services. In addition the bank offers a complete range of banking services including online banking checking and savings accounts CDs money market accounts ATMs telebanking and loans for individuals and businesses. Waccamaw Bank is a subsidiary of Waccamaw Bankshares Inc. a financial holding company. Waccamaw Bankshares Inc has a market cap of $18.8 million; its shares were traded at around $3.4 with and P/S ratio of 0.6. Waccamaw Bankshares Inc had an annual average earning growth of 21.9% over the past 5 years.
The allowance for loan losses on June 30, 2009, was $10,484,950 or 2.76% of period end loans compared to $7,187,981 and 1.86% at December 31, 2008. At June 30, 2009 the Bank had loans totaling $26,010,130 in nonaccrual status as compared to $8,190,679 at June 30, 2008. The increase in non-accrual loans includes increases in seventeen non-performing commercial real estate loans totaling $18.2 million. The largest non-accrual loan relationship totaled $4.3 million with the average balance for the one hundred six non-accrual loans totaling $245,000. At June 30, 2009 there was $329,878 in net charge-offs compared to $245,342 at June 30, 2008. There was $8,281 in repossessed assets at June 30, 2009 compared to $6,681 at June 30, 2008. At June 30, 2009 there was $731,087 in other real estate owned compared to $318,235 at June 30, 2008.
Non-interest income totaled ($233,472) for the three months ended June 30, 2009 as compared with $1,023,729 for the three months ended June 30, 2008. The principal reason for the decrease of $1,257,201 in total non-interest income for the current quarter was that the Company had write-downs of $2,156,820 in two single issue trust preferred securities and $152,656 of stock in Silverton Bank. The Company had realized gains of $637,897, had increases in service charges in deposit accounts of $356,890, increases of $23,779 in earnings on bank owned life insurance and increases in other operating income of $54,425. Decreases of $36,409 in fees from mortgage origination income from the continued slowdown in the housing market and decreases of $57,125 in financial services income accounted for the additional difference in non-interest income for the three months ended June 30, 2009 compared to the three months ended June 30, 2008.
Non-interest expenses totaled $3,478,855 for the three months ended June 30, 2009, a decrease of approximately $292,000 or 7.7% over the $3,770,885 million reported for the three months ended June 30, 2008. For the three months ended June 30, 2009, personnel costs decreased by approximately $230,000, or 11.5% to $1,775,147 as compared to $2,005,588 for the three months ended June 30, 2008. Other expenses totaled approximately $831,763 for the three months ended June 30, 2009, a decrease of approximately $93,000 or 10.1% over the $925,084 reported for the three months ended June 30, 2008. The majority of the decreases resulted from the cost cutting initiatives in salaries and employee benefits. On May 22, 2009 the FDIC approved a final rule to impose a special assessment of 5 basis points (b.p.) on each bank s total assets minus Tier 1 capital in order to replenish the Deposit Insurance Fund. This represented $253,000 in other expenses for the three months ended June 30, 2009.
Non-interest income totaled $1,111,682 for the six months ended June 30, 2009 as compared with $2,106,516 for the six months ended June 30, 2008. The principal reason for the decrease of $994,834 in total non-interest income for the six months ended June 30, 2008 was that the Company had write-downs of $2,156,820 in two single issue trust preferred securities and $152,656 of stock in Silverton Bank. The Company had realized gains of $870,677, had increases in service charges in deposit accounts of $362,386, increases of $91,059 in earnings on bank owned life insurance and increases in other operating income of $96,481. Increases of $34,730 in fees from mortgage origination income and decreases of $100,245 in financial services income accounted for the additional difference in non-interest income for the six months ended June 30, 2009 compared to the six months ended June 30, 2008.
Non-interest expenses totaled $7,303,807 for the six months ended June 30, 2009, a decrease of $330,042 or 4.3% of the $7,633,849 reported for the six months ended June 30, 2008. Substantially all of this decrease resulted from the cost cutting initiatives in salaries and employee benefits. For the six months ended June 30, 2009, personnel costs decreased by $420,447, or 10.2% to $3,705,035 as compared to $4,125,482 for the six months ended June 30, 2008. Other expenses totaled $1,807,828 for the six months ended June 30, 2009, compared to $1,808,458 for the six months ended June 30, 2008. On May 22, 2009 the FDIC approved a final rule to impose a special assessment of 5 basis points (b.p.) on each bank s total assets minus Tier 1 capital in order to replenish the Deposit Insurance Fund. This represented $253,000 in other expenses for the six months ended June 30, 2009.
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Waccamaw Banks offers investment services through its subsidiary Waccamaw Financial Services Inc. which offers a wide range of investment and insurance services. In addition the bank offers a complete range of banking services including online banking checking and savings accounts CDs money market accounts ATMs telebanking and loans for individuals and businesses. Waccamaw Bank is a subsidiary of Waccamaw Bankshares Inc. a financial holding company. Waccamaw Bankshares Inc has a market cap of $18.8 million; its shares were traded at around $3.4 with and P/S ratio of 0.6. Waccamaw Bankshares Inc had an annual average earning growth of 21.9% over the past 5 years.
Highlight of Business Operations:
Securities sold under agreements to repurchase on June 30, 2009, were $22,989,000 compared to $23,830,000 on December 31, 2008. Long-term debt on June 30, 2009 was $40,000,000 compared to $42,500,000 on December 31, 2008. All long-term debt is funded by the Federal Home Loan Bank of Atlanta. Short-term borrowings at June 30, 2009 were $6,500,000 compared to $10,000,000 at December 31, 2008. Included in short-term borrowings at June 30, 2009 and December 31, 2008 were $2,500,000 and $6,000,000, respectively, funded by the Federal Home Loan Bank of Atlanta. Also included in other short-term borrowings at June 30, 2009 and December 31, 2008 were $1,000,000 which is funded by Nexity Bank that will mature on July 1, 2010 at the Prime lending rate. Also included in other short-term borrowings is $3,000,000 of subordinated notes funded by Nexity Bank that will mature on July 1, 2015 and that bear interest at 3-month LIBOR plus 350 basis points. Other liabilities at June 30, 2009 were $278,927 compared to $995,414 on December 31, 2008. This decrease was primarily due to a decrease in accrual for income taxes.The allowance for loan losses on June 30, 2009, was $10,484,950 or 2.76% of period end loans compared to $7,187,981 and 1.86% at December 31, 2008. At June 30, 2009 the Bank had loans totaling $26,010,130 in nonaccrual status as compared to $8,190,679 at June 30, 2008. The increase in non-accrual loans includes increases in seventeen non-performing commercial real estate loans totaling $18.2 million. The largest non-accrual loan relationship totaled $4.3 million with the average balance for the one hundred six non-accrual loans totaling $245,000. At June 30, 2009 there was $329,878 in net charge-offs compared to $245,342 at June 30, 2008. There was $8,281 in repossessed assets at June 30, 2009 compared to $6,681 at June 30, 2008. At June 30, 2009 there was $731,087 in other real estate owned compared to $318,235 at June 30, 2008.
Non-interest income totaled ($233,472) for the three months ended June 30, 2009 as compared with $1,023,729 for the three months ended June 30, 2008. The principal reason for the decrease of $1,257,201 in total non-interest income for the current quarter was that the Company had write-downs of $2,156,820 in two single issue trust preferred securities and $152,656 of stock in Silverton Bank. The Company had realized gains of $637,897, had increases in service charges in deposit accounts of $356,890, increases of $23,779 in earnings on bank owned life insurance and increases in other operating income of $54,425. Decreases of $36,409 in fees from mortgage origination income from the continued slowdown in the housing market and decreases of $57,125 in financial services income accounted for the additional difference in non-interest income for the three months ended June 30, 2009 compared to the three months ended June 30, 2008.
Non-interest expenses totaled $3,478,855 for the three months ended June 30, 2009, a decrease of approximately $292,000 or 7.7% over the $3,770,885 million reported for the three months ended June 30, 2008. For the three months ended June 30, 2009, personnel costs decreased by approximately $230,000, or 11.5% to $1,775,147 as compared to $2,005,588 for the three months ended June 30, 2008. Other expenses totaled approximately $831,763 for the three months ended June 30, 2009, a decrease of approximately $93,000 or 10.1% over the $925,084 reported for the three months ended June 30, 2008. The majority of the decreases resulted from the cost cutting initiatives in salaries and employee benefits. On May 22, 2009 the FDIC approved a final rule to impose a special assessment of 5 basis points (b.p.) on each bank s total assets minus Tier 1 capital in order to replenish the Deposit Insurance Fund. This represented $253,000 in other expenses for the three months ended June 30, 2009.
Non-interest income totaled $1,111,682 for the six months ended June 30, 2009 as compared with $2,106,516 for the six months ended June 30, 2008. The principal reason for the decrease of $994,834 in total non-interest income for the six months ended June 30, 2008 was that the Company had write-downs of $2,156,820 in two single issue trust preferred securities and $152,656 of stock in Silverton Bank. The Company had realized gains of $870,677, had increases in service charges in deposit accounts of $362,386, increases of $91,059 in earnings on bank owned life insurance and increases in other operating income of $96,481. Increases of $34,730 in fees from mortgage origination income and decreases of $100,245 in financial services income accounted for the additional difference in non-interest income for the six months ended June 30, 2009 compared to the six months ended June 30, 2008.
Non-interest expenses totaled $7,303,807 for the six months ended June 30, 2009, a decrease of $330,042 or 4.3% of the $7,633,849 reported for the six months ended June 30, 2008. Substantially all of this decrease resulted from the cost cutting initiatives in salaries and employee benefits. For the six months ended June 30, 2009, personnel costs decreased by $420,447, or 10.2% to $3,705,035 as compared to $4,125,482 for the six months ended June 30, 2008. Other expenses totaled $1,807,828 for the six months ended June 30, 2009, compared to $1,808,458 for the six months ended June 30, 2008. On May 22, 2009 the FDIC approved a final rule to impose a special assessment of 5 basis points (b.p.) on each bank s total assets minus Tier 1 capital in order to replenish the Deposit Insurance Fund. This represented $253,000 in other expenses for the six months ended June 30, 2009.
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