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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date if earliest event reported):
January 24, 2000
Commission file number 0-18560
The Savannah Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
Georgia 58-1861820
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(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
25 Bull Street, Savannah, GA 31401
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(Address of principal executive offices) (Zip Code)
912-651-8200
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(Registrant's telephone number, including area code)
Not Applicable
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(Former Name or Former Address, If Changed Since Last Report)
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Item 5. Other Events.
On January 24, 2000, The Savannah Bancorp, Inc., a Georgia Corporation,
issued the following press release. The press release included the 1999
earnings announcement and five years of historical financial information.
THE SAVANNAH BANCORP
EARNINGS ANNOUNCEMENT
JANUARY 24, 2000
FOR RELEASE: IMMEDIATELY
THE SAVANNAH BANCORP REPORTS OPERATING NET INCOME INCREASE
OF 24% FOR FOURTH QUARTER AND 11% FOR 1999
The Savannah Bancorp (Nasdaq: SAVB, Savannah, Georgia), a bank holding
company for The Savannah Bank, N.A. and Bryan Bank & Trust (Richmond Hill,
Georgia), reported net income of $3,533,000, or $1.28 per diluted share for
1999. This represents returns of 14.17 percent on average equity and 1.29
percent return on average assets for 1999. This compares with net income of
$2,626,000 or 95 cents per share in 1998. Earnings in 1998 include $555,000 in
after-tax, nonrecurring charges related to the merger of Bryan Bancorp of
Georgia into The Savannah Bancorp on December 15, 1998.
Operating net income was $3,533,000 in 1999, up 11 percent from $3,181,000
in 1998. Operating earnings were $1.28 per diluted share in 1999 compared to
$1.15 in 1998, also an increase of 11 percent. For the fourth quarter 1999
operating earnings were 34 cents per diluted share compared to 27 cents per
share for the same period in 1998, an increase of 26 percent. Fourth quarter
operating net income for 1999 totaled $946,000, an increase of 24 percent from
$760,000 for the prior year.
In 1999, average loans totaled $187.0 million compared with $160.3 million
in 1998, an increase of 17 percent. Average deposits totaled $228.5 million in
1999 and $212.1 million in 1998, an increase of 8 percent. Average total assets
increased 12 percent to $273.9 million in 1999 from $245.0 million in 1998.
The improvement in fourth quarter earnings for 1999 when compared to 1998,
primarily was the result of net interest income growth of 17%, while other
expenses increased only 10%, excluding 1998 merger expenses. In addition to
higher levels of earnings assets, the prime rate increased 75 basis points
during the last half of 1999 compared to a decrease of 75 basis points in the
last four months of 1998.
Loan growth in 1999 contributed to an increase in net interest margin to
4.75 percent from 4.59 percent in 1998. The loan to deposit ratio increased to
88 percent at December 31, 1999 from 74 percent a year earlier. Deposit growth
slowed in 1999. Extensive management attention to core deposit growth is a
significant part of plans for the year 2000.
Credit quality remained strong during 1999 with net loan losses of $74,000,
or 0.04 percent of average loans. Nonperforming assets totaled $342,000 at
year-end compared to $233,000 a year earlier.
During the fourth quarter 1999, the Company announced intentions to buy up
to 50,000 shares of treasury stock. Approximately 20 percent of those shares
have been purchased.
The Board of Directors declared a regular quarterly dividend of 12 cents
per share to shareholders of record on January 28. The dividend is payable on
February 21.
Contacts: Archie H. Davis, President & CEO 912-651-8200
Robert B. Briscoe, Chief Financial Officer, 912-651-8225
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THE SAVANNAH BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
DECEMBER 31, 1999 AND 1998
Percent
BALANCE SHEET DATA Increase
AT DECEMBER 31 1999 1998 (Decrease)
- -------------------------------------------------------------------------------
(Amounts in thousands, except per share data)
Total assets $ 286,098 $ 266,380 7
Interest-earning assets 268,737 242,669 11
Loans 205,914 170,858 21
Allowance for loan losses 2,794 2,323 20
Nonperforming assets 342 233 47
Deposits 234,262 232,372 1
Interest-bearing liabilities 218,827 200,680 9
Shareholders' equity 25,231 24,475 3
Allowance for possible
loan losses to total loans 1.36% 1.36% 0
Equity to assets 8.82% 9.19% (4)
Tier 1 capital to risk-
weighted assets 12.15% 13.06% (7)
Book value per share $ 9.31 $ 9.12 2
Outstanding shares 2,709 2,683 1
FOR THE YEAR
NET INCOME $ 3,533 $ 2,626 35
Return on average assets 1.29% 1.07% 21
Return on average equity 14.17% 11.20% 27
NET INCOME PER SHARE:
Basic $ 1.31 $ 0.99 32
Diluted $ 1.28 0.95 35
DIVIDENDS PER SHARE $ 0.46 0.34 35
AVERAGE SHARES:
Basic 2,704 2,661 2
Diluted 2,770 2,760 0
FOR THE FOURTH QUARTER
NET INCOME $ 946 $ 170 456
Return on average assets 1.29% 0.27% 378
Return on average equity 14.89% 2.75% 441
NET INCOME PER SHARE:
Basic $ 0.35 $ 0.06 483
Diluted $ 0.34 $ 0.06 467
DIVIDENDS PER SHARE $ 0.12 $ 0.10 20
AVERAGE SHARES:
Basic 2,710 2,677 1
Diluted 2,766 2,764 0
OPERATING PERFORMANCE RATIOS
EXCLUDING NON-RECURRING ITEMS (c)
FOR THE YEAR
Net income $ 3,533 $ 3,181 11
Net income per share-diluted $ 1.28 $ 1.15 11
Return on average assets 1.29% 1.30% (1)
Return on average equity 14.17% 13.57% 4
FOR THE FOURTH QUARTER
Net income $ 946 $ 760 24
Net income per share-diluted $ 0.34 $ 0.27 26
Return on average assets 1.29% 1.20% 8
Return on average equity 14.89 12.23% 22
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THE SAVANNAH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
FOR THE YEARS 1994 - 1998
($ in thousands, except per share data)
1999 1998 1997 1996 1995
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SELECTED AVERAGE BALANCES
Total assets $273,935 $245,014 $205,032 $179,806 $151,577
Loans-net of unearned income 186,997 160,344 139,772 120,232 104,180
Securities 59,997 52,448 40,556 37,801 29,328
Other interest-earning assets 10,677 18,509 12,795 10,048 8,272
Total interest-earning assets 257,671 231,219 193,123 168,081 141,780
Interest-bearing deposits 191,818 181,976 151,478 132,870 111,547
Short-term borrowed funds 18,484 7,683 4,241 1,748 2,417
Total interest-bearing
liabilities 210,302 189,659 155,719 134,618 113,964
Noninterest-bearing deposits 36,724 30,137 26,550 24,416 19,761
Total deposits 228,542 212,113 178,028 157,286 131,308
Loan to deposit ratio-average 82% 76% 79% 76% 79%
Shareholders' equity 24,941 23,445 21,040 19,020 17,448
CREDIT QUALITY DATA
Nonperforming assets $ 342 233 $ 497 $ 82 $ 39
Nonperforming loans 297 233 497 82 39
Net loan losses (recoveries) 74 175 111 79 20
Allowance for loan losses 2,794 2,323 2,063 1,695 1,489
Nonperforming assets
to total loans 0.17% 0.14% 0.32% 0.06% 0.03%
Net loan losses to
average loans 0.04% 0.11% 0.08% 0.07% 0.02%
Allowance for loan losses
to total loans 1.36% 1.36% 1.34% 1.29% 1.32%
Allowance for loan losses / net
loan losses 38 13 19 21 74
SELECTED FINANCIAL DATA
AT PERIOD-END
Total assets $286,098 $266,380 $229,172 $197,665 $166,885
Interest-earning assets 268,737 242,669 209,920 177,618 156,089
Loans-net of unearned income 205,914 170,858 154,218 130,909 112,706
Deposits 234,262 232,372 200,444 174,005 143,044
Loan to deposit ratio 88% 74% 77% 75% 79%
Interest-bearing liabilities 218,827 200,680 171,833 144,851 123,149
Shareholders' equity 25,231 24,475 22,397 20,056 18,537
Shareholders' equity to
total assets 8.82% 9.19% 9.77% 10.15% 11.11%
Risk-based capital ratios:
Tier 1 capital 12.15% 13.12% 14.20% 15.72% 16.04%
Total capital 13.39% 14.36% 15.44% 16.90% 17.24%
Per share:
Book value $ 9.31 $ 9.12 $ 8.48 $ 7.61 $ 6.98
Common stock closing
price (Nasdaq) $19.70 $26.00 $23.38 $16.33 $13.33
Shares outstanding(000s) 2,709 2,683 2,641 2,635 2,657
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THE SAVANNAH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED OPERATING HIGHLIGHTS
FOR THE YEARS ENDED 1995 - 1999
(thousands, except per share data)
SUMMARY OF OPERATIONS 1999 1998 1997 1996 1995
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Interest income -
taxable equivalent $20,990 $19,342 $16,803 $14,559 $12,802
Interest expense 8,740 8,736 7,343 6,388 5,551
------- ------- ------- ------- -------
Net interest income -
taxable equivalent 12,250 10,606 9,460 8,171 7,251
Taxable equivalent adjustment (248) (147) (136) (115) (86)
------- ------- ------- ------- -------
Net interest income 12,002 10,459 9,324 8,056 7,165
Provision for loan losses 545 435 480 285 257
------- ------- ------- ------- -------
Net interest income after
provision for loan losses 11,457 10,024 8,844 7,771 6,908
------- ------- ------- ------- -------
Other operating revenue
Trust fee income 192 60 - - -
Service charges on
deposit accounts 1,032 774 749 741 615
Mortgage origination fees 601 933 479 211 176
Other income (a) 432 534 441 250 189
Gains (losses) on sale of
securities 13 3 4 - (90)
------- ------- ------- ------- -------
Total other income 2,270 2,304 1,673 1,202 890
------- ------- ------- ------- -------
Personnel expense 4,579 4,214 3,405 2,722 2,285
Occupancy and equipment expense 1,260 1,110 946 717 588
Nonrecurring merger expenses (b) - 619 - - -
Other expense 2,682 2,223 1,843 1,692 1,649
------- ------- ------- ------- -------
Total other expense 8,521 8,066 6,094 5,131 4,522
------- ------- ------- ------- -------
Income before income taxes 5,206 4,262 4,423 3,842 3,276
Applicable income taxes 1,673 1,636 1,512 1,314 1,155
------- ------- ------- ------- -------
Net income $ 3,533 $ 2,626 $ 2,911 $ 2,528 $ 2,121
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NET INCOME PER SHARE:
Basic $1.31 $0.99 $1.10 $0.96 $0.80
Diluted $1.28 $0.95 $1.06 $0.93 $0.78
Cash dividends paid
per share(d) $0.46 $0.34 $0.14 $0.08 $0.07
Average basic shares
outstanding 2,704 2,661 2,640 2,641 2,667
Average diluted shares
outstanding 2,770 2,760 2,757 2,716 2,718
PERFORMANCE RATIOS (AVERAGES)
Net yield on interest-
earning assets 4.75% 4.59% 4.90% 4.86% 5.11%
Return on assets 1.29% 1.07% 1.42% 1.41% 1.40%
Return on equity 14.17% 11.20% 13.84% 13.29% 12.16%
Overhead ratio 59.76% 63.21% 55.44% 55.42% 55.52%
OPERATING PERFORMANCE RATIOS
EXCLUDING NONRECURRING ITEMS (C)
Net income $ 3,533 $ 3,181 $ 2,911 $ 2,528 $ 2,121
Net income per diluted share $ 1.28 $ 1.15 $ 1.06 $ 0.93 $ 0.78
Return on average assets 1.29% 1.30% 1.42% 1.41% 1.40%
Return on average equity 14.17% 13.57 13.84% 13.29% 12.16%
Overhead ratio 59.76% 58.62% 55.44% 55.42% 55.52%
(a) 1998 includes $57M first quarter Bryan gain on the sale of land purchased
for a new Bryan office in Savannah.
(b) 1998 includes $75M non-recurring data processing buyout expense incurred
in the fourth quarter.
(c) 1998 excludes the effects of after-tax merger expenses of $544M and after
-tax non-recurring items described in (1)and (2) of $11M in net charges.
(d) Cash dividends per common share are those of The Savannah Bancorp, Inc.
(historical)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
The Savannah Bancorp, Inc. (Registrant)
By: /s/ Robert B. Briscoe Date: January 24, 2000
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Robert B. Briscoe
Chief Financial Officer
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