SNBT Snb Bancshares (Texas) (MM)

SNB Bancshares, Inc. Announces Strong Third Quarter Results * Net Earnings for the Third Quarter up 111.1% to $1.8 million * Year-to-date Earnings Per Share up 54.1% to $0.57 (Diluted) * Third Quarter Loan Growth of 35.2% * Initial Public Offering completed, infusing $52.2 million in capital * Expansion into Katy, Texas SUGAR LAND, Texas, Oct. 25 /PRNewswire-FirstCall/ -- SNB Bancshares, Inc. (NASDAQ:SNBT), a Sugar Land bank holding company with assets of $1.1 billion, and the parent company of Southern National Bank of Texas, a community- oriented, independent bank with offices in both Harris and Fort Bend Counties, today reported strong growth both in net earnings and in assets for the third quarter and the nine months ended September 30, 2004. Net earnings for the quarter were $1.8 million or $0.19 per diluted share, an increase of $957 thousand or 111.1%, compared with $861 thousand or $0.12 per diluted share for the same period in 2003. Net earnings for the nine months ended September 30, 2004 were $4.5 million or $0.57 per diluted share, an increase of $1.9 million or 71.7%, compared with $2.6 million or $0.37 per diluted share for the same period in 2003. "The third quarter of 2004 marked the beginning of a new chapter in the history of our company," said Harvey E. Zinn, President and Chief Executive Officer. "We completed our successful Initial Public Offering, adding $52.2 million to our capital, and we are excited about our future as a publicly-traded company. Our shareholders' equity at September 30, 2004 was $86.1 million compared to $30.7 million at September 30, 2003, an increase of 180.6%." Lisa Simon, Chairman of the Board, added, "Our strong equity position will allow us to expand our market area, and we have already taken a first step in that direction by opening a de novo branch in Katy, Texas on October 12, 2004." Continued Mr. Zinn, "We are pleased with our earnings growth, both for the quarter and for the year-to-date, as compared with the same periods a year ago. We continue to seek quality loan growth which has resulted in a 35.2% increase in average loans for the quarter, as compared with the third quarter of 2003." THIRD QUARTER RESULTS Net earnings for the third quarter of 2004 were $1.8 million compared with $861 thousand for the same quarter in 2003, an increase of $957 thousand or 111.1%. The $957 thousand increase in net earnings was primarily due to a $2.1 million increase in net interest income and an $198 thousand increase in net gains on sales of securities, offset by a $886 thousand increase in non- interest expense. Diluted net earnings were $0.19 per share compared with $0.12 per share for the third quarter in 2003. Returns on average assets, average equity and average tangible equity for the three months ended September 30, 2004 were 0.66%, 14.20% and 14.20%, respectively. Net Interest Income Net interest income for the third quarter of 2004 increased $2.1 million or 38.7% to $7.6 million, compared with $5.5 million for the same period in 2003. The increase was primarily due to a 41.1% increase in average earning assets, partially offset by a 39.4% increase in interest-bearing liabilities and an increase of 0.15% in weighted average rates on interest-bearing liabilities from 1.88% for the three months ended September 30, 2003 to 2.03% for the three months ended September 30, 2004. The average balance of interest-earning assets increased $307.3 million from the quarter ended September 30, 2003 to the same period in 2004, while the average yield increased 0.05% to 4.55% from 4.50%. The average balance of interest-bearing liabilities increased $261.0 million for the three months ended September 30, 2004, compared with the same period in 2003. Our net interest margin on a tax equivalent basis decreased 0.05% to 2.85% for the quarter ended September 30, 2004, from 2.90% for the same period in 2003. Non-interest Income Non-interest income for the third quarter of 2004 was $543 thousand, an increase of $187 thousand compared with the same period in 2003, primarily as a result of a $198 thousand increase in net gains on sale of securities. Non-interest Expense Non-interest expense for the third quarter of 2004 was $4.7 million compared with $3.8 million for the third quarter of 2003, an increase of $886 thousand, or 23.0%, primarily due to an increase in compensation, payroll taxes and benefits. RESULTS FOR NINE MONTHS ENDED SEPTEMBER 30, 2004 Net earnings for the nine months ended September 30, 2004 were $4.5 million, an increase of $1.9 million or 71.7%, compared with $2.6 million for the same period in 2003, primarily due to a $5.2 million increase in net interest income, partially offset by a $2.0 million increase in non-interest expense, a $964 thousand increase in the provision for Federal income taxes, a $180 thousand decrease in net gains on sales of securities and a $174 thousand increase in the provision for loan losses. Diluted earnings per share for the nine months ended September 30, 2004 were $0.57, compared with $0.37 per share for the same period in 2003. Returns on average assets, average equity and average tangible equity for the nine months ended September 30, 2004 were 0.59%, 15.84% and 15.84%, respectively. Net Interest Income For the nine months ended September 30, 2004, net interest income increased $5.2 million to $20.7 million compared with $15.5 million for the same period in 2003. This increase is primarily due to a 51.2% increase in average earning assets, partially offset by a 55.3% increase in interest- bearing liabilities. The average balance of interest-earning assets increased $332.5 million, for the nine months ended September 30, 2004, compared with the same period in 2003, while the average yield decreased 0.38% to 4.46% from 4.84%. The average balance of interest-bearing liabilities increased $309.8 million for the nine months ended September 30, 2004, compared with the same period in 2003, while the average rate decreased 0.06% to 1.95% from 2.01%. Our net interest margin on a tax equivalent basis decreased 0.37% to 2.81% for the nine months ended September 30, 2004 from 3.18% for the same period in 2003. Non-interest Income For the nine months ended September 30, 2004, non-interest income decreased to $1.8 million compared with $2.0 million for the same period in 2003, primarily due to a $180 thousand decrease in the gain on sale of securities. Non-interest Expense Non-interest expense for the nine months ended September 30, 2004 was $13.4 million compared with $11.4 million for the same period in 2003, an increase of $2.0 million or 17.6%, primarily due to an increase in compensation, payroll taxes and benefits. ASSET QUALITY Nonperforming assets for the third quarter of 2004 were $6.4 million, down from $7.4 million for the second quarter of 2004. As a percentage of total loans and other real estate owned, nonperforming assets were 1.15% at September 30, 2004, compared with 1.44% at June 30, 2004. At September 30, 2003, nonperforming assets were $5.1 million, or 1.24% of total loans and other real estate owned. During the nine months ended September 30, 2004, we recorded a provision for loan losses of $2.3 million compared with $2.1 million for the same period in 2003. The provision recorded in 2004 is greater than the prior period due primarily to the increase in the size of the loan portfolio. At September 30, 2004, the allowance for loan losses as a percentage of total loans was 1.35% compared with 1.31% at September 30, 2003. Net charge-offs for the nine months ended September 30, 2004 totaled $452 thousand, compared with $778 thousand for the same period in 2003. THE COMPANY SNB Bancshares, Inc. (the "Company") is a bank holding company headquartered approximately 15 miles southwest of downtown Houston in Sugar Land, Texas, the largest city in fast growing Fort Bend County. The Company, with total assets of $1.1 billion, total loans of $553.2 million, total deposits of $815.2 million and total shareholders' equity of $86.1 million, as of September 30, 2004, has four full-service branches in Harris and Fort Bend Counties. CONFERENCE CALL In conjunction with SNB Bancshares, Inc.'s (SNBT) Third Quarter Earnings Release, scheduled after the market closes on Monday, October 25, 2004, management will host a conference call for analysts and investors at 10:30 a.m., Eastern Time (9:30 a.m., Central Time) on Tuesday, October 26, 2004. Interested parties may participate by calling (800) 299-0148 and entering the access code 73618456. The conference call will also be available via the Internet by accessing the Investor Relations section of the Company's website http://www.snbtx.com/ . An audio archive of the call will be available at the same website address beginning at 1:30 p.m., Eastern Time, on October 26, 2004. Notice under the Private Securities Litigation Reform Act of 1995 Except for historical information contained herein, this press release may constitute forward-looking statements for the purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such, may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Act of 1995, and is including this statement for purposes of said safe harbor provisions. The Company's actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation, the following: (a) the effects of future economic and business conditions on the Company and our customers; (b) changes in governmental legislation and regulations; (c) the risks of changes in interest rates; (d) competition from other banks and financial institutions for customer deposits and loans; (e) the failure of assumptions underlying the establishment of reserves for loan losses; (f) changes in the levels of loan prepayments and the resulting effects on the value of the Company's loan portfolio; (g) the failure of assumptions underlying the establishment of and provisions made to the allowance for loan losses; (h) the effect of changes in accounting policies and practices which may be adopted by regulatory agencies and/or the Financial Accounting Standards Board; (i) technological changes; (j) acquisition and integration of acquired businesses; (k) the loss of senior management or operating personnel and the potential inability to hire qualified personnel at reasonable compensation levels; (l) acts of terrorism; and (m) other risks and uncertainties listed from time to time in the Company's reports filed with the Securities and Exchange Commission. Contacts: R. Darrell Brewer, CFO (281) 269-7271 Whitney Rowe, Investor Relations & Corp. Secretary (281) 269-7220 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2004 2003 % chg 2004 2003 % chg EARNINGS SUMMARY: (Dollars in thousands) Net earnings $1,818 $861 111.1% $4,494 $2,618 71.7% Basic earnings per share 0.20 0.12 66.7% 0.58 0.37 56.8% Diluted earnings per share 0.19 0.12 58.3% 0.57 0.37 54.1% Weighted average shares outstanding: Common stock 6,456,156 3,709,527 74.0% 4,738,974 3,707,199 27.8% Class B stock 2,680,521 3,284,462 (18.4%) 2,974,458 3,286,790 (9.5%) Total 9,136,677 6,993,989 30.6% 7,713,432 6,993,989 10.3% Shares outstanding at end of period: Common stock 9,750,312 3,710,023 162.8% 9,750,312 3,710,023 162.8% Class B stock 2,680,041 3,283,966 (18.4%) 2,680,041 3,283,966 (18.4%) Total 12,430,353 6,993,989 77.7% 12,430,353 6,993,989 77.7% EARNINGS STATEMENT DATA: Interest income: Loans $8,031 $6,224 29.0% $21,617 $17,829 21.2% Securities: Taxable 4,184 2,338 79.0% 11,535 5,927 94.6% Nontaxable 50 24 108.4% 91 74 24.0% Federal funds sold and earning deposits 14 3 376.0% 135 31 327.4% Total interest income 12,279 8,589 43.0% 33,378 23,861 39.9% Interest expense: Demand deposits 1,215 606 100.4% 3,190 2,038 56.5% Certificates and other time deposits 2,179 1,788 21.8% 6,708 4,594 46.0% Other borrowings 1,319 742 77.8% 2,812 1,779 58.0% Total interest expense 4,713 3,136 50.3% 12,710 8,411 51.1% Net interest income 7,566 5,453 38.7% 20,668 15,450 33.8% Provision for loan losses 625 660 (5.3%) 2,275 2,101 8.3% Net interest income after provision 6,941 4,793 44.8% 18,393 13,349 37.8% Noninterest income: Service charges on deposit accounts 193 210 (7.9%) 623 674 (7.6%) Gain (loss) on sale of securities-net 197 (1) NM 700 880 (20.4%) Other 153 147 3.9% 453 423 7.0% Total noninterest income 543 356 52.5% 1,776 1,977 (10.2%) Noninterest Expense: Salaries and employee benefits 2,944 2,347 25.5% 8,386 6,839 22.6% Net occupancy expense 483 407 18.7% 1,350 1,215 11.1% Data processing 284 284 0.0% 841 871 (3.4%) Legal and professional fees 158 139 14.0% 448 419 6.9% FDIC deposit insurance premium 31 20 53.1% 84 61 36.6% Other 831 648 28.3% 2,253 1,954 15.3% Total noninterest expense 4,731 3,845 23.0% 13,362 11,359 17.6% Earnings before income taxes 2,753 1,304 111.1% 6,807 3,967 71.6% Provision for income taxes 935 443 111.1% 2,313 1,349 71.5% Net earnings $1,818 $861 111.1% $4,494 $2,618 71.7% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) 3Q 2Q 1Q 4Q 3Q 2004 2004 2004 2003 2003 QUARTERLY EARNINGS STATEMENT HISTORY: Interest income: Loans $8,031 $7,085 $6,501 $6,371 $6,224 Securities: Taxable 4,184 4,030 3,321 2,977 2,338 Nontaxable 50 19 22 22 24 Federal funds sold and earning deposits 14 22 99 7 3 Total interest income 12,279 11,156 9,943 9,377 8,589 Interest expense: Demand deposits 1,215 1,025 951 720 606 Certificates and other time deposits 2,179 2,336 2,193 2,159 1,788 Other borrowings 1,319 827 666 769 742 Total interest expense 4,713 4,188 3,810 3,648 3,136 Net interest income 7,566 6,968 6,133 5,729 5,453 Provision for loan losses 625 900 750 720 660 Net interest income after provision 6,941 6,068 5,383 5,009 4,793 Noninterest income: Service charges on deposit accounts 193 193 237 199 210 Gain (loss) on sale of securities-net 197 144 359 0 (1) Other 153 151 148 133 147 Total noninterest income 543 488 744 332 356 Noninterest Expense: Salaries and employee benefits 2,944 2,757 2,684 2,489 2,347 Net occupancy expense 483 428 439 464 407 Data processing 284 271 286 292 284 Legal and professional fees 158 153 137 151 139 FDIC deposit insurance premium 31 28 25 22 20 Other 831 773 648 712 648 Total noninterest expense 4,731 4,410 4,219 4,130 3,845 Earnings before income taxes 2,753 2,146 1,908 1,211 1,304 Provision for income taxes 935 729 649 412 443 Net earnings $1,818 $1,417 $1,259 $799 $861 Basic EPS $0.20 0.20 0.18 0.11 0.12 Diluted EPS $0.19 0.20 0.17 0.11 0.12 Weighted average shares outstanding: Common stock 6,456,156 3,974,575 3,767,320 3,710,023 3,709,527 Class B stock 2,680,521 3,019,414 3,226,669 3,283,966 3,284,462 Total 9,136,677 6,993,989 6,993,989 6,993,989 6,993,989 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) 3Q 3Q YTD YTD YTD 2004 2003 % chg 2004 2003 % chg BALANCE SHEET AVERAGES: Loans $533,607 $394,725 35.2% $485,532 $372,656 30.3% Allowance for loan losses (7,258) (4,962) 46.3% (6,572) (4,511) 45.7% Loans, net 526,349 389,763 35.0% 478,960 368,145 30.1% Investment securities 517,041 351,008 47.3% 478,067 273,425 74.8% Federal funds sold 816 727 12.1% 11,446 903 1167.3% Interest-earning deposits in other financial institutions 2,985 739 303.7% 7,168 2,757 160.0% Cash and due from banks 13,116 26,928 (51.3%) 15,269 27,958 (45.4%) Premises and equipment 13,061 12,537 4.2% 12,799 11,449 11.8% Accrued interest receivable and other assets 15,542 8,324 86.7% 12,921 6,079 112.5% Total assets $1,088,910 $790,026 37.8% $1,016,630 $690,716 47.2% Demand deposits $111,968 $94,880 18.0% $105,136 $96,484 9.0% NOW, savings, and money market accounts 334,347 231,421 44.5% 337,891 229,782 47.0% Time deposits 351,116 289,938 21.1% 373,668 231,430 61.5% Total deposits 797,431 616,239 29.4% 816,695 557,696 46.4% Other borrowed funds 199,093 111,806 78.1% 120,642 75,398 60.0% Notes payable to bank --- --- 0.0% --- 2,208 (100.0%) Junior subordinated debentures 38,250 28,612 33.7% 38,250 21,784 75.6% Accrued interest payable and other liabilities 3,536 3,552 (0.4%) 3,258 2,673 21.9% Total liabilities 1,038,310 760,209 36.6% 978,845 659,759 48.4% Shareholders' equity 50,600 29,817 69.7% 37,785 30,957 22.1% Total liabilities and shareholders' equity $1,088,910 $790,026 37.8% $1,016,630 $690,716 47.2% PERIOD END September 30, BALANCES: 2004 2003 Loans $553,185 $406,726 36.0% Allowance for loan losses (7,473) (5,329) 40.2% Loans, net 545,712 401,397 36.0% Investment securities 503,584 370,715 35.8% Federal funds sold 1,735 110 1477.3% Interest-earning deposits in other financial institutions 2,179 366 495.7% Cash and due from banks 13,692 28,271 (51.6%) Premises and equipment 13,837 12,679 9.1% Accrued interest receivable and other assets 13,797 8,293 66.4% Total assets $1,094,536 $821,831 33.2% Demand deposits 103,007 96,009 7.3% NOW, savings, and money market accounts $356,036 $227,179 56.7% Time deposits 356,154 351,032 1.5% Total deposits 815,197 674,220 20.9% Other borrowed funds 151,500 75,982 99.4% Junior subordinated debentures 38,250 38,250 0.0% Accrued interest payable and other liabilities 3,536 2,710 30.5% Total liabilities 1,008,483 791,162 27.5% Shareholders' equity 86,053 30,669 180.6% Total liabilities and shareholders' equity $1,094,536 $821,831 33.2% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) 3Q 2Q 1Q 4Q 3Q 2004 2004 2004 2003 2003 QUARTERLY AVERAGE BALANCE SHEET HISTORY: Loans $533,607 $486,394 $436,066 $417,004 $394,725 Allowance for loan losses (7,258) (6,501) (5,949) (5,611) (4,962) Loans, net 526,349 479,893 430,117 411,393 389,763 Investment securities 517,041 504,454 412,277 389,132 351,008 Federal funds sold 816 8,371 25,269 1,518 727 Interest-earning deposits in other financial institutions 2,985 956 17,607 1,325 739 Cash and due from banks 13,116 14,348 18,366 22,405 26,928 Premises and equipment 13,061 12,661 12,672 12,776 12,537 Accrued interest receivable and other assets 15,542 13,479 9,713 9,020 8,324 Total assets $1,088,910 $1,034,162 $926,021 $847,569 $790,026 Demand deposits $111,968 $104,646 $98,717 $90,916 $94,880 NOW, savings, and money market accounts 334,347 342,693 336,670 254,539 231,421 Time deposits 351,116 404,545 365,592 344,652 289,938 Total deposits 797,431 851,884 800,979 690,107 616,239 Other borrowed funds 199,093 110,287 51,683 85,970 111,806 Junior subordinated debentures 38,250 38,250 38,250 38,250 28,612 Accrued interest payable and other liabilities 3,536 3,423 2,816 2,997 3,552 Total liabilities 1,038,310 1,003,844 893,728 817,324 760,209 Shareholders' equity 50,600 30,318 32,293 30,245 29,817 Total liabilities and shareholders' equity $1,088,910 $1,034,162 $926,021 $847,569 $790,026 Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2004 2004 2004 2003 2003 PERIOD END BALANCES HISTORY: Loans $553,185 $512,416 $460,872 $424,479 $406,726 Allowance for loan losses (7,473) (6,929) (6,181) (5,650) (5,329) Loans, net 545,712 505,487 454,691 418,829 401,397 Investment securities 503,584 533,477 448,373 412,620 370,715 Federal funds sold 1,735 6,100 28,200 3,195 110 Interest-earning deposits in other financial institutions 2,179 91 339 501 366 Cash and due from banks 13,692 17,292 21,151 27,427 28,271 Premises and equipment 13,837 12,825 12,628 12,691 12,679 Accrued interest receivable and other assets 13,797 16,624 9,765 8,578 8,293 Total assets $1,094,536 $1,091,896 $975,147 $883,841 $821,831 Demand deposits 103,007 114,401 112,404 101,749 96,009 NOW, savings, and money market accounts $356,036 $362,283 $328,232 295,389 $227,179 Time deposits 356,154 379,572 403,267 336,833 351,032 Total deposits 815,197 856,256 843,903 733,971 674,220 Other borrowed funds 151,500 168,500 55,500 77,800 75,982 Junior subordinated debentures 38,250 38,250 38,250 38,250 38,250 Accrued interest payable and other liabilities 3,536 3,101 3,118 3,053 2,710 Total liabilities 1,008,483 1,066,107 940,771 853,074 791,162 Shareholders' equity 86,053 25,789 34,376 30,767 30,669 Total liabilities and shareholders' equity $1,094,536 $1,091,896 $975,147 $883,841 $821,831 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) CONSOLIDATED YIELD ANALYSIS: For the Three Months Ended September 30, 2004 2003 Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Assets: Interest-earning assets: Loans $533,607 $8,031 5.89% $394,725 $6,224 6.17% Investment securities 517,041 4,234 3.20 351,008 2,362 2.63 Federal funds sold 816 3 1.33 727 1 0.40 Interest- earning deposits in other financial institutions 2,985 11 1.45 739 2 1.14 Total interest- earning assets 1,054,449 12,279 4.55% 747,199 8,589 4.50% Less allowance for loan losses (7,258) (4,962) Total interest- earning assets, net of allowance 1,047,191 742,237 Non-earning assets: Cash and due from banks 13,116 26,928 Premises and equipment 13,061 12,537 Accrued interest receivable and other assets 15,542 8,324 Total noninterest- earning assets 41,719 47,789 Total assets $1,088,910 $790,026 Liabilities and Shareholders' Equity: Interest-bearing liabilities: NOW, savings, and money market accounts $334,347 $1,215 1.45% $231,421 $606 1.04% Time deposits 351,116 2,179 2.47 289,938 1,788 2.45 Other borrowed funds 199,093 753 1.51 111,806 327 1.16 Junior subordinated debentures 38,250 566 5.79 28,612 415 5.67 Total interest- bearing liabilities 922,806 4,713 2.03% 661,777 3,136 1.88% Noninterest- bearing liabilities: Demand deposits 111,968 94,880 Accrued interest payable and other liabilities 3,536 3,552 Total noninterest- bearing liabilities 115,504 98,432 Total liabilities 1,038,310 760,209 Shareholders' equity 50,600 29,817 Total liabilities and shareholders' equity $1,088,910 $790,026 Net interest income $7,566 $5,453 Net interest spread 2.52% 2.62% Net interest margin 2.85% 2.90% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) RATE VOLUME ANALYSIS: For the Three Months Ended September 30, 2004 Compared with the Same Period in 2003 Increase (Decrease) Q3 Q3 Increase Due to Change in 2004 2003 (Decrease) Volume Rate Total Interest-earning assets: Loans $8,031 $6,224 $1,807 $2,154 $(347) $1,807 Investment securities 4,234 2,362 1,872 781 1,091 1,872 Federal funds sold 3 1 2 0 2 2 Interest-bearing deposits in other financial institutions 11 2 9 6 3 9 Total interest income 12,279 8,589 3,690 2,941 749 3,690 Interest-bearing liabilities: NOW, savings and money market accounts 1,215 606 609 3 606 609 Time deposits 2,179 1,788 391 376 15 391 Other borrowed funds 753 327 426 254 172 426 Junior subordinated debentures 566 415 151 137 14 151 Total interest expense 4,713 3,136 1,577 770 807 1,577 Net interest income $7,566 $5,453 $2,113 $2,171 ($58) $2,113 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) CONSOLIDATED YIELD ANALYSIS: For the Nine Months Ended September 30, 2004 2003 Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Assets: Interest-earning assets: Loans $485,532 $21,617 5.85% $372,656 $17,829 6.31% Investment securities 478,067 11,626 3.19 273,425 6,001 2.89 Federal funds sold 11,446 80 0.92 903 7 1.08 Interest- earning deposits in other financial institutions 7,168 55 1.00 2,757 24 1.15 Total interest- earning assets 982,213 33,378 4.46% 649,741 23,861 4.84% Less allowance for loan losses (6,572) (4,511) Total interest- earning assets, net of allowance 975,641 645,230 Non-earning assets: Cash and due from banks 15,269 27,958 Premises and equipment 12,799 11,449 Accrued interest receivable and other assets 12,921 6,079 Total noninterest- earning assets 40,989 45,486 Total assets $1,016,630 $690,716 Liabilities and Shareholders' Equity: Interest-bearing liabilities: NOW, savings, and money market accounts $337,891 $3,190 1.26% $229,782 $2,037 1.19% Time deposits 373,668 6,708 2.40 231,430 4,594 2.65 Other borrowed funds 120,642 1,209 1.34 75,398 699 1.24 Notes payable to bank --- --- --- 2,208 53 3.23 Junior subordinated debentures 38,250 1,603 5.51 21,784 1,028 6.22 Total interest- bearing liabilities 870,451 12,710 1.95% 560,602 8,411 2.01% Noninterest-bearing liabilities: Demand deposits 105,136 96,484 Accrued interest payable and other liabilities 3,258 2,673 Total noninterest- bearing liabilities 108,394 99,157 Total liabilities 978,845 659,759 Shareholders' equity 37,785 30,957 Total liabilities and shareholders' equity $1,016,630 $690,716 Net interest income $20,668 $15,450 Net interest spread 2.51% 2.83% Net interest margin 2.81% 3.18% SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands) (Unaudited) RATE VOLUME ANALYSIS: For the Nine Months Ended September 30, 2004 Compared with the Same Period in 2003 Increase (Decrease) Due to YTD 9/30 YTD 9/30 Increase Change in 2004 2003 (Decrease) Volume Rate Total Interest-earning assets: Loans $21,617 $17,829 $3,788 $5,331 $(1,543) $3,788 Investment securities 11,626 6,001 5,625 4,465 1,160 5,625 Federal funds sold 80 7 73 85 (12) 73 Interest-bearing deposits in other financial institutions 55 24 31 38 (7) 31 Total interest income 33,378 23,861 9,517 9,919 (402) 9,517 Interest-bearing liabilities: NOW, savings and money market accounts 3,190 2,037 1,153 10 1,143 1,153 Time deposits 6,708 4,594 2,114 2,826 (712) 2,114 Other borrowed funds 1,209 699 510 420 90 510 Notes payable to bank 0 53 (53) (53) 0 (53) Junior subordinated debentures 1,603 1,028 575 767 (192) 575 Total interest expense 12,710 8,411 4,299 3,970 329 4,299 Net interest income $20,668 $15,450 $5,218 $5,949 ($731) $5,218 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) LOAN PORTFOLIO: As of September 30, As of September 30, 2004 2003 Amount Percent Amount Percent Business and industrial $64,152 11.6% $55,988 13.8% Real estate: Construction and land development 106,536 19.3 66,332 16.3 1-4 family residential 110,828 20.0 109,196 26.8 Commercial mortgages 260,359 47.1 163,779 40.3 Consumer 12,715 2.3 12,038 3.0 Other 154 0.0 250 0.0 Gross loans 554,744 100.3 407,583 100.2 Less unearned discounts and fees (1,559) (0.3) (857) (0.2) Total loans $553,185 100.0% $406,726 100.0% NONPERFORMING ASSETS: As of September 30, As of September 30, 2004 2003 Nonaccrual loans $2,237 $2,292 Accruing loans past due 90 days or more --- --- Restructured loans 1,942 2,039 Other real estate 2,183 736 Total nonperforming assets $6,362 $5,067 Nonperforming assets to total loans and other real estate 1.15% 1.24% ALLOWANCE FOR LOAN LOSSES: As of and for the As of and for the Three Months Ended Nine Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2004 2003 2004 2003 Allowance for loan losses at beginning of period $6,929 $4,650 $5,650 $4,006 Provision for loan losses 625 660 2,275 2,101 Charge-Offs: Business and industrial (82) (50) (242) (421) Real estate (14) (5) (235) (311) Consumer (30) (106) (84) (324) Total charge-offs (126) (161) (561) (1,056) Recoveries: Business and industrial 3 117 33 183 Real estate 38 0 60 0 Consumer 4 63 16 95 Total recoveries 45 180 109 278 Net charge-offs (81) 19 (452) (778) Allowance for loan losses at end of period $7,473 $5,329 $7,473 $5,329 Allowance for loan losses to end of period loans 1.35% 1.31% 1.35% 1.31% Net charge-offs to average loans 0.02 (0.00) 0.09 0.21 Allowance for loans losses to end of period nonperforming loans 178.82 123.03 178.82 123.03 SNB BANCSHARES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED FINANCIAL DATA (Dollars in thousands, except outstanding shares and per share data) (Unaudited) 3Q 3Q YTD YTD 2004 2003 2004 2003 SELECTED RATIOS AND OTHER DATA: Return on average assets 0.66% 0.43% 0.59% 0.51% Return on average equity 14.20 11.46 15.84 11.31 Leverage ratio 10.83 5.33 --- --- Tier 1 Capital to RWA ratio 18.28 9.16 --- --- Total Capital (Tier 1 + Tier 2) to RWA ratio 20.56 16.06 --- --- Average equity to average total assets 4.65 3.77 3.72 4.48 Yield on earning assets 4.55 4.50 4.46 4.84 Cost of funds with demand accounts 1.81 1.64 1.74 1.71 Net interest margin 2.85 2.90 2.81 3.18 Non-interest expense to average total assets 1.72 1.57 1.67 1.63 Efficiency ratio 59.56 62.88 60.31 68.13 End of period book value per share $6.92 $4.38 Full time equivalent employees 156 143 End of period Class B shares outstanding 2,680,041 3,283,966 End of period Common shares outstanding 9,750,312 3,710,023 End of period total shares outstanding 12,430,353 6,993,989 For the period of 08/18/04 - 09/30/04 COMMON STOCK PERFORMANCE (A): Market value of common stock - Close $ 11.98 Market value of common stock - High 12.00 Market value of common stock - Low 10.00 As of September 30, 2004 Book value of common stock $6.92 Market/book value of common stock 173.08% Price/12 month trailing earnings ratio 17.36 X (A) The common stock began trading on the Nasdaq Stock Market National Market System on August 18, 2004 DATASOURCE: SNB Bancshares, Inc. CONTACT: R. Darrell Brewer, CFO, +1-281-269-7271, or , or Whitney Rowe, Investor Relations & Corp. Secretary, +1-281-269-7220, or , both of SNB Bancshares, Inc. Web site: http://www.snbtx.com/

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