TNCC Tennessee Commerce Bancorp (TN) (MM)

FRANKLIN, Tenn., July 26 /PRNewswire-FirstCall/ -- Tennessee Commerce Bancorp, Inc. (NASDAQ:TNCC) today reported record net income, loans and deposits for the second quarter ended June 30, 2006. Net income rose 50% to $932,000, or $0.27 per diluted shares, for the second quarter ended June 30, 2006 compared with $621,000, or $0.18 per diluted share, for the same quarter in 2005. "Tennessee Commerce's loan growth accelerated in the second quarter as we continued to experience strong demand from our business customers," stated Art Helf, Chairman and CEO of Tennessee Commerce Bancorp. "Net loans grew 55% to a record $428.5 million in the second quarter of 2006 compared with the second quarter of last year. Total assets rose almost 61% and passed the $500 million milestone during the quarter." "We also successfully completed a stock offering to allow our continued growth," stated George Fort, Chief Financial Officer. "After the close of the second quarter, we completed the sale of one million shares of common stock for $18 per share. We also expect to complete the sale of an additional 150,000 shares as part of the underwriter's over allotment option on July 28th. We plan to use the $19.2 million in net proceeds to fund our future growth and for other corporate purposes," concluded Mr. Fort. Second Quarter Net interest income rose 33% to $4.4 million in the second quarter of 2006 compared with $3.3 million in the second quarter of 2005. The growth in net interest income was due primarily to an increase in loans offset somewhat by a decline in net interest margin. Net interest margin was 4.00% in the second quarter of 2006 compared with 4.63% in the second quarter of 2005. "We experienced growth in our loan portfolio from both regional and national customers," noted Mr. Helf. "Strong loan demand also allowed us to sell loans in the second quarter that generated $358,000 in gain on sale of loans, up from $295,000 in the second quarter of last year. "Our earnings continue to benefit from our efficient business banking model. At the end of the second quarter, we had $10.7 million in assets per employee compared with about $2.9 million for the industry average," concluded Mr. Helf. Provision for loan losses was $1.0 million in the second quarter of 2006, down from $1.15 million in the second quarter of last year. At the end of the second quarter, the allowance for loan losses was $5.5 million, or 1.29% of net loans, compared with $3.7 million, or 1.35%, in the year prior period. Annualized return on average assets was 0.82% and annualized return on average equity rose to 13.58% in the second quarter of 2006. Tennessee Commerce's efficiency ratio was 46.83% in the second quarter of 2006 compared with 39.43% in the second quarter of 2005. Six Months Net income rose 43% to $1.8 million for the first six months of 2006 compared with $1.3 million in the same period of 2005. Net income per diluted share increased 41% to $0.52 compared with $0.37 in the first six months of 2005. Net interest income rose 36% to $8.7 million, up from $6.4 million in the first six months of 2005 based on a 59% increase in earnings assets to $486 million. Net interest margin was 4.08% for the 2006 period compared with 4.75% for the same period in 2005. Provision for loan losses was $2.0 million for the first six months of 2006 compared with $1.8 million for the same period in 2005. The increase was primarily related to the overall growth in the loan portfolio. About Tennessee Commerce Bancorp, Inc. Tennessee Commerce Bancorp, Inc. is the parent company of Tennessee Commerce Bank. The Bank provides a wide range of banking services and is primarily focused on business accounts. Its corporate and banking offices are located in Franklin, Tennessee and it has a loan production office in Birmingham, Alabama. Tennessee Commerce Bancorp's stock is traded on the NASDAQ Global Market under the symbol TNCC. Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Tennessee Commerce Bancorp's operating results, performance or financial condition are competition, changes in interest rates, the demand for its products and services, the ability to expand, and numerous other factors as set forth in the Corporation's filings with the Securities and Exchange Commission. TENNESSEE COMMERCE BANCORP, INC. CONSOLIDATED BALANCE SHEETS JUNE 30, 2006 (UNAUDITED) AND DECEMBER 31, 2005 (dollars in thousands except share data) June 30, December 31, 2006 2005 ----------- ------------ ASSETS Cash and due from financial institutions $ 7,027 $ 6,877 Federal funds sold 16,004 12,535 ---------- ---------- Cash and cash equivalents 23,031 19,412 Securities available for sale 41,366 31,992 Loans 434,006 348,586 Allowance for loan losses (5,508) (4,399) ---------- ---------- Net loans 428,498 344,187 Premises and equipment, net 850 769 Accrued interest receivable 2,867 2,148 Restricted equity securities 606 383 Deferred tax assets 1,109 490 Other assets 5,941 4,659 ---------- ---------- Total assets $ 504,268 $ 404,040 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Deposits Noninterest-bearing $ 21,239 $ 33,372 Interest-bearing 440,470 334,333 ---------- ---------- Total deposits 461,709 367,705 Accrued interest payable 1,253 1,126 Accrued bonuses 250 430 Short-term debt 5,000 --- Long-term subordinated debt 8,248 8,248 Other liabilities (19) 101 ---------- ---------- Total liabilities 476,441 377,610 Shareholders' equity Preferred stock, no par value. Authorized 1,000,000 shares; none issued or outstanding at June 30, 2006 and December 31, 2005 --- --- Common stock, $0.50 par value. Authorized 10,000,000 shares at June 30, 2006 and 5,000,000 shares at December 31, 2005; Issued and outstanding 3,240,674 at June 30, 2006 and 3,238,674 at December 31, 2005 1,620 1,619 Additional paid-in capital 21,506 21,401 Retained earnings 5,622 3,781 Accumulated other comprehensive income (loss) (921) (371) ---------- ---------- Total shareholders' equity 27,827 26,430 ---------- ---------- Total liabilities and shareholders' equity $ 504,268 $ 404,040 ========== ========== Note : The balance sheet presented above at December 31, 2005 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. TENNESSEE COMMERCE BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2006 AND 2005 THREE MONTHS ENDED JUNE 30, 2006 AND 2005 (UNAUDITED) (dollars in thousands except share data) Six Months Ended Three Months Ended ---------------- ------------------ 2006 2005 2006 2005 ---- ---- ---- ---- Interest income Loans, including fees $ 16,659 $ 9,752 $ 8,812 $ 5,290 Securities 935 406 488 211 Federal funds sold 164 63 54 47 -------- ------- -------- -------- Total interest income 17,758 10,221 9,354 5,548 Interest Expense Deposits 8,723 3,681 4,721 2,064 Other 337 150 190 142 -------- ------- -------- -------- Total interest expense 9,060 3,831 4,911 2,206 -------- ------- -------- -------- Net interest income 8,698 6,390 4,443 3,342 Provision for loan losses 2,000 1,800 1,000 1,150 -------- ------- -------- -------- Net interest income after provision for loan losses 6,698 4,590 3,443 2,192 Net interest income Service charges on deposit accounts 80 54 31 28 Mortgage banking 36 39 14 20 Security gains --- 4 --- 7 Gain on sale of loans 612 440 358 295 Other (194) 38 (114) 16 -------- ------- --------- -------- Total non interest income 534 575 289 366 Non interest expense Salaries and employee benefits 2,505 1,788 1,305 885 Occupancy and equipment 390 288 190 162 Data processing fees 330 226 173 113 Professional fees 381 162 190 75 Other 628 524 358 227 -------- ------- -------- -------- Total non interest expense 4,234 2,988 2,216 1,462 -------- ------- -------- -------- Income before income taxes 2,998 2,177 1,516 1,096 Income tax expense 1,157 894 584 475 -------- ------- -------- -------- Net income 1,841 1,283 932 621 Unrealized gains (losses) on securities, net (550) 60 (128) 268 -------- ------- --------- -------- Comprehensive income (loss) 1,291 1,343 804 889 Earnings per share (EPS): Basic EPS $ 0.57 $ 0.40 $ 0.29 $ 0.19 Diluted EPS 0.52 0.37 0.27 0.18 Weighted average shares outstanding: Basic 3,240,619 3,238,674 3,240,674 3,238,674 Diluted 3,549,680 3,479,977 3,533,632 3,479,977 TENNESSEE COMMERCE BANCORP, INC FINANCIAL HIGHLIGHTS (Dollars in thousands except ratios and share data) 2006 2005 ---- ---- For the Quarter ending 06/30 Earnings: Net Interest Income $ 4,443 $ 3,342 Non-Interest Income 289 366 Provision for Loan Losses 1,000 1,150 Operating Expense 2,216 1,462 Operating Income 1,516 1,096 Applicable Tax 584 475 --------- --------- Net Income $ 932 $ 621 ========= ========= At June 30 Total Assets $ 504,253 $ 313,345 Net Loans 428,498 276,152 Earning Assets 485,868 305,196 Allowance for Loan Losses 5,508 3,727 Deposits 461,709 279,181 Shareholders' Equity $ 27,812 $ 24,943 Total Shares Outstanding 3,240,674 3,238,674 Significant Ratios - 2nd quarter Net Interest Margin 4.00% 4.63% Return on Average Assets 0.82% 0.83% Return on Average Equity 13.58% 10.16% Efficiency Ratio 46.83% 39.43% Loan Loss Reserve/Net Loans 1.29% 1.35% Total Risk based Capital Ratio 9.31% 12.70% Basic Earnings per Share $ 0.29 $ 0.19 Diluted Earnings per Share $ 0.27 $ 0.18 DATASOURCE: Tennessee Commerce Bancorp, Inc. CONTACT: George Fort, Chief Financial Officer of Tennessee Commerce Bancorp, Inc., +1-615-599-2274

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