IE 11 is not supported. For an optimal experience visit our site on another browser.

OmniAmerican Bancorp, Inc. Announces Fourth Quarter and Annual 2010 Results

FORT WORTH, Texas, Feb. 14, 2011 (GLOBE NEWSWIRE) -- OmniAmerican Bancorp, Inc. (Nasdaq:OABC) (the "Company"), the holding company for OmniAmerican Bank, today reported earnings for the quarter and year ended December 31, 2010. Information at and for the three months and year ended December 31, 2010 is unaudited.
/ Source: GlobeNewswire

FORT WORTH, Texas, Feb. 14, 2011 (GLOBE NEWSWIRE) -- OmniAmerican Bancorp, Inc. (Nasdaq:OABC) (the "Company"), the holding company for OmniAmerican Bank, today reported earnings for the quarter and year ended December 31, 2010. Information at and for the three months and year ended December 31, 2010 is unaudited.

Fourth quarter results include net income of $316,000, and basic and diluted earnings per share of $0.03 per share, for the quarter ended December 31, 2010. This compares to net income of $98,000 for the same period in 2009, and represents an increase of 222.4%. Annualized returns on average stockholders' equity and average assets for the current quarter were 0.63% and 0.11%, respectively, compared to 0.42% and 0.04% for the fourth quarter of 2009.

The Company also reported annual earnings of $1.7 million, an increase of 153.0% over 2009 earnings of $655,000. Basic and fully diluted earnings per share were $0.14 for the year ended December 31, 2010. Returns on average stockholders' equity and average assets were 0.86% and 0.15%, respectively, for 2010 compared to 0.72% and 0.06% for 2009.

OmniAmerican Bank completed its mutual to stock conversion on January 20, 2010. Therefore, no per share comparison information has been provided for the quarter or year ended December 31, 2009. 

Financial Condition as of December 31, 2010 Compared with December 31, 2009

Total assets decreased $25.5 million, or 2.2%, to $1.11 billion at December 31, 2010 from $1.13 billion at December 31, 2009. The decrease reflects decreases in cash and cash equivalents of $115.5 million and loans, net of the allowance for loan losses and deferred fees and discounts, of $37.7 million, partially offset by increases in securities classified as available for sale of $107.4 million and bank-owned life insurance of $20.1 million.

Cash and cash equivalents decreased $115.5 million, or 82.4%, to $24.6 million at December 31, 2010 from $140.1 million at December 31, 2009. The decrease is due primarily to $243.5 million in cash used to purchase securities available for sale, $240.3 million used to originate and purchase loans, $25.4 million used to repay Federal Home Loan Bank advances, and $20.0 million in cash used to purchase bank-owned life insurance, partially offset by increases due to $210.6 million in cash received from loan principal repayments, $130.3 million received from proceeds from sales, principal repayments and maturities of securities, and $58.2 million of proceeds from the sales of loans during the year ended December 31, 2010.

Securities available for sale increased $107.4 million, or 51.0%, to $317.8 million at December 31, 2010 from $210.4 million at December 31, 2009, as the Company invested proceeds from the initial public stock offering and cash generated through operations in securities available for sale. The increase in securities available for sale includes purchases of $243.5 million, partially offset by principal repayments, maturities and calls of $110.2 million and sales of $20.1 million. 

Loans, net of the allowance for loan losses and deferred fees and discounts, decreased $37.7 million, or 5.4%, to $660.4 million at December 31, 2010 from $698.1 million at December 31, 2009. The decline in loans includes a $24.3 million decrease in automobile loans, a $13.1 million decrease in commercial real estate loans, a $10.6 million decrease in commercial business loans and a $2.3 million decrease in real estate construction loans, partially offset by a $14.5 million increase in one- to four-family residential mortgage loans. During 2010, $11.1 million in loans were reclassified to other real estate owned, and $53.7 million in one- to four-family residential mortgage loans were sold.

Deposits decreased $108.8 million, or 12.0%, to $801.2 million at December 31, 2010 from $910.0 million at December 31, 2009.  At December 31, 2009, deposits included $159.5 million in subscriptions received for the purchase of shares of common stock in the Company's initial public stock offering. Upon the completion of the stock offering on January 20, 2010, $106.0 million of the net proceeds became capital of the Company.  Certificates of deposit increased $9.2 million, or 2.8%, to $343.0 million at December 31, 2010 from $333.8 million at December 31, 2009, as customers sought the safety of insured deposit products as an alternative to other types of investments.

Non-performing assets increased $9.0 million, or 58.8%, to $24.3 million, or 2.19% of total assets, as of December 31, 2010, from $15.3 million, or 1.35% of total assets, as of December 31, 2009. The increase in non-performing assets reflects a net increase of $8.0 million in other real estate owned primarily due to $11.1 million in loans reclassified to other real estate owned, partially offset by sales of properties totaling $2.9 million, and an increase of $1.0 million in loans on nonaccrual status. 

Stockholders' equity increased $107.4 million, or 117.8%, to $198.6 million at December 31, 2010 from $91.2 million at December 31, 2009, due primarily to $106.0 million in net proceeds from our initial public offering, and net income of $1.7 million for the year ended December 31, 2010.

Operating Results for the Three Months Ended December 31, 2010 Compared with the Three Months Ended December 31, 2009

Net income increased to $316,000, or $0.03 per share, for the quarter ended December 31, 2010, compared to $98,000 for the quarter ended December 31, 2009. OmniAmerican Bank completed its mutual to stock conversion on January 20, 2010. Therefore, no per share comparison information has been provided for the quarter ended December 31, 2009. 

Net interest income increased by $534,000, or 6.1%, to $9.3 million for the quarter ended December 31, 2010 from $8.8 million for the quarter ended December 31, 2009, primarily due to a decrease in total interest expense, which exceeded the decrease in total interest income. Total interest expense decreased by $587,000, or 15.1%, to $3.4 million for the quarter ended December 31, 2010 from $3.9 million for the quarter ended December 31, 2009, primarily due to a 26 basis point decrease in the average rate paid on interest-bearing liabilities and a 1.0% decrease in the average balance of interest-bearing liabilities.  Total interest income decreased by $53,000, or 0.4%, and was $12.7 million for the quarters ended December 31, 2010 and 2009. The decrease in total interest income is attributable to a 39 basis point decrease in the average yield on interest-earning assets, partially offset by a 7.4% increase in the average balance of interest-earning assets. 

The provision for loan losses increased by $825,000, or 94.3%, to $1.7 million for the quarter ended December 31, 2010 from $875,000 for the quarter ended December 31, 2009, primarily due to an increase in the specific allowances for loan losses on impaired loans. The increase in the specific allowances for loan losses on impaired loans reflects management's response to an increase in the balance of impaired loans and reductions in the appraised values of the collateral underlying the loans.  Net charge-offs increased $1.1 million, to $2.1 million for the quarter ended December 31, 2010 from $1.0 million for the quarter ended December 31, 2009. 

Noninterest income decreased by $45,000, or 1.3%, and was $3.6 million for the quarters ended December 31, 2010 and 2009. Service charges and fees decreased by $210,000, while gains on sales of securities increased by $107,000, and income from bank-owned life insurance increased by $78,000.

Noninterest expense decreased by $207,000, or 1.8%, to $11.0 million for the quarter ended December 31, 2010 from $11.2 million for the quarter ended December 31, 2009, primarily due to a $264,000 decrease in salaries and benefits expense, a $262,000 decrease in occupancy expense, a $252,000 decrease in software and equipment maintenance, a $152,000 decrease in FDIC insurance expense, and a $127,000 decrease in service fees, partially offset by a $491,000 increase in the cost of professional and outside services, a $241,000 increase in other operations expense, and a $193,000 increase in real estate owned expense. The decrease in salaries and benefits expense is due primarily to a reduction in pension expense. The decrease in occupancy expense is due primarily to a decrease in property taxes. The decrease in software and equipment maintenance expense resulted from a reduction in maintenance expenses related to ATMs following a contract renegotiation. The increase in professional and outside services reflects costs associated with the Company's public reporting obligations and legal fees. The increase in other operations expense is due primarily to increases in insurance costs, contract labor and recruiting expenses, and business development costs. 

Operating Results for the Year Ended December 31, 2010 Compared with the Year Ended December 31, 2009

Net income increased to $1.7 million, or $0.14 per share, for the year ended December 31, 2010, compared to $655,000 for the year ended December 31, 2009. OmniAmerican Bank completed its mutual to stock conversion on January 20, 2010. Therefore, no per share comparison information has been provided for the year ended December 31, 2009. 

Net interest income increased by $4.9 million, or 14.4%, to $38.9 million for the year ended December 31, 2010 from $34.0 million for the year ended December 31, 2009, primarily due to a decrease in total interest expense, which exceeded the decrease in total interest income. Total interest expense decreased by $5.8 million, or 29.4%, to $13.9 million for the year ended December 31, 2010 from $19.7 million for the year ended December 31, 2009, primarily due to a 59 basis point decrease in the average rate paid on interest-bearing liabilities and a 4.3% decrease in the average balance of interest-bearing liabilities. Total interest income decreased $868,000, or 1.6%, to $52.8 million for the year ended December 31, 2010 from $53.7 million for the year ended December 31, 2009, primarily due to a 43 basis point decrease in the average yield on interest-earning assets, partially offset by a 6.5% increase in the average balance of interest-earning assets. 

The provision for loan losses increased by $1.5 million, or 28.8%, to $6.7 million for the year ended December 31, 2010 from $5.2 million for the year ended December 31, 2009 primarily due to an increase in the specific allowances for loan losses on impaired loans. The increase in the specific allowances for loan losses on impaired loans reflects management's response to an increase in the balance of impaired loans and reductions in the appraised values of the collateral underlying the loans.  Included in the allowance for loan losses at December 31, 2010 are specific allowances for loan losses of $2.3 million related to impaired loans with balances totaling $15.6 million, while $687,000 of specific allowances for loan losses related to impaired loans with balances totaling $6.6 million at December 31, 2009.  In addition, $17.9 million and $11.9 million of impaired loans did not require specific allowances for loan losses at December 31, 2010 and December 31, 2009, respectively. Net charge-offs increased $1.0 million, to $6.1 million for the year ended December 31, 2010 from $5.1 million for the year ended December 31, 2009. The allowance for loan losses was $8.9 million, or 1.33% of total loans receivable, at December 31, 2010, compared to $8.3 million, or 1.18% of total loans receivable, at December 31, 2009. 

Noninterest income decreased by $2.8 million, or 17.0%, to $13.7 million for the year ended December 31, 2010 from $16.5 million for the year ended December 31, 2009, primarily due to a $2.1 million decrease in net gains on sales and calls of securities available for sale, a $426,000 decrease in service charges and other fees, primarily related to a decline in non-sufficient funds fee income, and a $218,000 decline in net gains on sales of loans.

Noninterest expense increased by $244,000, or 0.6%, to $44.0 million for the year ended December 31, 2010 from $43.8 million for the year ended December 31, 2009, primarily due to increases in real estate owned expense of $827,000, professional and outside services of $811,000, and marketing expense of $319,000, partially offset by decreases in FDIC insurance expense of $553,000, depreciation expense on furniture, software and equipment of $525,000, occupancy expense of $261,000, and service fees expense of $237,000. The increase in real estate owned expense is due primarily to increases in property tax, repairs and maintenance, and other expenses related to increased investment in real estate owned. The increase in professional and outside services expense can be primarily attributed to higher accounting, legal and consulting expenses to meet the reporting and compliance requirements of being a publicly-traded company. The increase in marketing expense is due primarily to a debit card rewards program offered to customers. The decrease in the FDIC insurance assessment is primarily attributable to a $478,000 special assessment incurred in 2009 and a decrease in the general assessment rate for the year ended December 31, 2010. The decrease in depreciation expense on furniture, software and equipment is primarily attributable to assets fully depreciated at December 31, 2009. 

About OmniAmerican Bancorp, Inc.

OmniAmerican Bancorp, Inc. is traded on the NASDAQ Global Market under the symbol "OABC" and is the holding company for OmniAmerican Bank, a full-service financial institution headquartered in Fort Worth, Texas. OmniAmerican Bank operates 15 full-service branches in the Dallas/Fort Worth Metroplex and offers a full array of consumer products and services plus business/commercial services, mortgages and retirement planning. Founded over 50 years ago, OmniAmerican Bank had $1.11 billion in assets at December 31, 2010 and is proud to provide the highest level of personal service. Electronic banking and additional information are available at .

The OmniAmerican Bancorp, Inc. logo is available at

Cautionary Statement About Forward-Looking Information

This news release contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect," "will," "may" and words of similar meaning. These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this earnings release.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities, if any; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; changes in the financial condition or future prospects of issuers of securities that we own; and changes resulting from intense compliance and regulatory costs associated with the Dodd-Frank Act and the pending elimination of the Office of Thrift Supervision as our primary regulator.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.


CONTACT: Keishi High, Investor Relations Officer 817-367-4640 Keishi.High@OmniAmerican.com