For the twelve month period ended December 31, 2006, net income available to common shareholders was $3.479 million, a 54% increase compared to net income available to common shareholders of $2.264 million reported for 2005. Diluted earnings per common share, adjusted for a 5-for-4 stock dividend effected as a 25% stock split issued January 19, 2007, increased to $0.73 for 2006, compared to $0.48 for the twelve months ended December 31, 2005.
MidCarolina reported total assets of $420.9 million at December 31, 2006, an increase of $50.4 million, or 14%, when compared to the $370.4 million reported at December 31, 2005. Total loans, net of mortgage loans held-for- sale, were $313.6 million at December 31, 2006, an increase of $33.6 million, or 12%, from levels a year ago. Deposit totals at the end of the year were $339.3 million, an increase of $39.0 million, or 13%, when compared to 2005 year-end balances.
Commenting on these results, Randolph J. Cary, Jr., President and CEO, said, "The Board of Directors and management are very pleased with our operating results for the 2006 year and fourth quarter. We are very proud of the growth MidCarolina achieved in our existing markets of Alamance and Guilford Counties. Our client base continues to expand as commercial and retail businesses choose MidCarolina as their financial partner."
MidCarolina Bank provides a complete line of banking services to individuals and businesses through its six full-service banking offices and two limited-service offices located in the cities of Burlington, Graham, Greensboro and Mebane, North Carolina. MidCarolina Bank, a wholly owned subsidiary of MidCarolina Financial Corporation, also provides the Bank's markets with personalized full brokerage services for stocks, bonds, mutual funds and an array of insurance products.
MidCarolina Bank is insured by the FDIC and is an equal housing lender.
This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. For further information and other factors which could affect the accuracy of forward-looking statements, please see MidCarolina's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (http://www.sec.gov) or MidCarolina's website (http://www.midcarolinabank.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgments only as of the date hereof. MidCarolina Financial Corporation undertakes no obligation to revise these statements following the date of this press release.
QUARTERLY PERFORMANCE SUMMARY
MIDCAROLINA FINANCIAL CORPORATION
(Dollars in thousands, except per share and share data)
For the
Three Months Ended
December 31, December 31, %
2006 2005 Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income $7,162 $5,732 24.9%
Interest expense 3,976 2,665 49.2%
Net interest income 3,186 3,067 3.9%
Provision for loan losses - 310 -100.0%
Net interest income after
provision for loan losses 3,186 2,757 15.6%
Noninterest income 613 2,757 -77.8%
Noninterest expense 2,337 2,163 8.0%
Income before income tax expense 1,462 1,121 30.4%
Provision for income taxes 417 416 0.2%
NET INCOME 1,045 705 48.2%
Less preferred Dividends (105) (104) -
NET INCOME AVAILABLE TO COMMON
SHARES $940 $601 56.4%
PER SHARE DATA
Earnings per share, basic $0.21 $0.15 40.0%
Earnings per share, diluted 0.19 0.14 35.7%
Weighted average number of common
shares outstanding, basic 4,430,243 4,302,772
PERFORMANCE RATIOS
Return on average assets 1.01% 0.77%
Return on average common equity 18.37% 12.28%
Efficiency ratio 61.52% 60.18%
Average total equity to average
total assets 6.71% 6.24%
ANNUAL PERFORMANCE SUMMARY
MIDCAROLINA FINANCIAL CORPORATION
(Dollars in thousands, except per
share and share data) As of / For the
Year Ended
December 31, December 31, %
2006 2005 Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income $27,061 $19,208 40.9%
Interest expense 14,241 8,327 71.0%
Net interest income 12,820 10,881 17.8%
Provision for loan losses 394 1,373 -71.3%
Net interest income after
provision for loan losses 12,426 9,508 30.7%
Noninterest income 2,304 2,683 -14.1%
Noninterest expense 9,077 8,546 6.2%
Income before income tax expense 5,653 3,645 55.1%
Provision for income taxes 1,757 1,277 37.6%
NET INCOME 3,896 2,368 64.5%
Less preferred Dividends (417) (104) -
NET INCOME AVAILABLE TO COMMON
SHARES $3,479 $2,264 53.7%
PER SHARE DATA
Earnings per share, basic $0.80 $0.53 50.9%
Earnings per share, diluted 0.73 0.48 52.1%
Weighted average number of common
shares outstanding, basic 4,348,128 4,299,521
PERFORMANCE AND ASSET QUALITY RATIOS
Return on average assets 0.98% 0.72%
Return on average common equity 15.87% 12.64%
Net yield on earning assets
(taxable equivalent) 3.38% 3.51%
Efficiency ratio 60.02% 63.01%
Average equity to average assets 6.18% 6.00%
Allowance for loan losses as a %
of total loans, end of year 1.35% 1.46%
Non-performing assets to total
assets, end of year 67.00% 83.00%
Ratio of net charge-offs to
average loans outstanding 0.09% 0.06%
ANNUAL PERFORMANCE SUMMARY
MIDCAROLINA FINANCIAL CORPORATION
(Dollars in thousands)
As of
December 31, December 31, %
2006 2005 Change
SELECTED BALANCE SHEET DATA
End of year balances
Total loans $313,572 $279,962 12.0%
Allowance for loan losses 4,222 4,090 3.2%
Loans, net of allowance for loan
losses 309,350 275,872 12.1%
Securities, available for sale 73,641 58,373 26.2%
Total Assets 420,851 370,440 13.6%
Deposits:
Noninterest-bearing
deposits 34,662 31,544 9.9%
Interest-bearing demand and
savings 77,339 70,586 9.6%
CD's and other time
deposits 227,274 198,132 14.7%
Total Deposits 339,275 300,262 13.0%
Short term debt 25,000 10,000 150.0%
Long term debt 26,764 34,764 -23.0%
Total interest-bearing liabilities 391,039 345,026 13.3%
Shareholders' Common Equity 23,440 18,274 28.3%
Shareholder Preferred Equity 4,819 4,819 -
Total Shareholders' Equity 28,259 23,093 22.4%
