Southern Community (SCMF) Suspends Dividend; Loan Losses Expected to Increase Significantly in Q1
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Price: $3.33 --0%
Financial Fact:
Income from mortgage banking activities: 343K
Today's EPS Names:
TARO, SENEA, UQM, More
Financial Fact:
Income from mortgage banking activities: 343K
Today's EPS Names:
TARO, SENEA, UQM, More
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Southern Community Financial Corporation (NASDAQ: SCMF) (NASDAQ: SCMFO) voted to suspend payment of the Company's quarterly cash dividend. The Board will continue to evaluate the payment of a quarterly cash dividend on a quarterly basis.
Southern Community also announced that it anticipates nonperforming loans to increase to a range of approximately $21.0 million to $25.3 million, or 1.60% to 1.93% of total loans in Q1 of 2009, up from $14.4 million or 1.10% of total loans in Q4 of 2008. The Company also anticipates net charge-offs of approximately $3.1 million to $3.3 million or approximately 0.95% to 1.01% of average loans on an annualized basis, up from $1.4 million or 0.44% of average loans (annualized) in Q4 of 2008. As a result of the increased level of nonperforming loans and net charge-offs, Southern Community expects to record a provision for loan losses of approximately $4.0 million. The allowance for loan losses is expected to be in the range of $19.6 million to $19.8 million or 1.50% to 1.51% of total loans, up from $18.9 million or 1.43% of total loans in Q4 of 2008.
"While the provision for loan losses is expected to increase significantly in the first quarter of 2009 compared to the fourth quarter of 2008, we expect to remain modestly profitable in the first quarter of 2009. Our capital remains strong exceeding the regulatory standards for well capitalized institutions. As a result of the increased loan loss provision and strong capital position, I believe we will be better positioned to weather the uncertain economic climate that is expected to unfold throughout 2009."[SM]
Southern Community also announced that it anticipates nonperforming loans to increase to a range of approximately $21.0 million to $25.3 million, or 1.60% to 1.93% of total loans in Q1 of 2009, up from $14.4 million or 1.10% of total loans in Q4 of 2008. The Company also anticipates net charge-offs of approximately $3.1 million to $3.3 million or approximately 0.95% to 1.01% of average loans on an annualized basis, up from $1.4 million or 0.44% of average loans (annualized) in Q4 of 2008. As a result of the increased level of nonperforming loans and net charge-offs, Southern Community expects to record a provision for loan losses of approximately $4.0 million. The allowance for loan losses is expected to be in the range of $19.6 million to $19.8 million or 1.50% to 1.51% of total loans, up from $18.9 million or 1.43% of total loans in Q4 of 2008.
"While the provision for loan losses is expected to increase significantly in the first quarter of 2009 compared to the fourth quarter of 2008, we expect to remain modestly profitable in the first quarter of 2009. Our capital remains strong exceeding the regulatory standards for well capitalized institutions. As a result of the increased loan loss provision and strong capital position, I believe we will be better positioned to weather the uncertain economic climate that is expected to unfold throughout 2009."[SM]
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