ALAB Astera Labs Inc

BIRMINGHAM, Ala., Oct. 23 /PRNewswire-FirstCall/ -- Alabama National BanCorporation ("ANB") (NASDAQ:ALAB) today announced earnings for the quarter and nine-month period ended September 30, 2007. For the 2007 third quarter, ANB reported net income of $19.8 million, or $0.95 per diluted share. Nine months year-to-date net income was $61.8 million, or $2.96 per diluted share. As previously reported, ANB sold its ANB Insurance Services, Inc. subsidiary during the 2007 second quarter. Earnings from the operation of this subsidiary and the gain from its sale are carried as income from discontinued operations in the income statement. Excluding the discontinued insurance operations from all periods, ANB reported earnings from continuing operations of $19.8 million in the 2007 third quarter, down 6.1% from the $21.1 million earned in the 2007 second quarter and down 1.4% from the 2006 third quarter's $20.1 million in net income from continuing operations. Diluted earnings per share (continuing operations) of $0.95 in the 2007 third quarter were 5.6% below the $1.01 reported in the 2007 second quarter and 9.7% below the $1.06 reported in the year ago third quarter. Diluted cash earnings per share (continuing operations) were $0.99 in the 2007 third quarter, as compared with $1.05 and $1.10 in the 2007 second quarter and 2006 third quarter, respectively. Total revenue from continuing operations in the 2007 third quarter was $85.1 million. This revenue total was down 0.9% from the $85.9 million reported in the 2007 second quarter, and up 10.6% from the 2006 third quarter's $76.9 million. For the nine months ended September 30, 2007, ANB's $60.6 million in income from continuing operations equated to $2.91 in diluted earnings per share, down 5.8% from the $3.09 earned in the first nine months of 2006. Year-to-date revenue for the first nine months of 2007 was $253.7 million, up 13.1% from the 2006 nine months. ANB's third quarter 2007 taxable equivalent net interest margin declined to 3.63%, down from the 3.72% reported in the 2007 second quarter. On a year- to-date basis, the 2007 nine months net interest margin of 3.70% was 0.21% below levels for the same period in 2006. Ending loans (excluding loans held for sale) grew $56.5 million during the 2007 third quarter, representing a 4.0% annualized growth rate for the quarter. During the nine months ended September 30, 2007, ending loans grew $305.9 million, representing an annualized growth rate of 7.5%. Ending deposits of $5.68 billion at September 30, 2007 were down slightly from second quarter levels and grew at a 2.8% annualized rate for the first nine months of 2007. Ending total assets at September 30, 2007 were $7.97 billion. On the credit quality front, ANB recognized $2.7 million in net charge- offs for the 2007 third quarter, representing 0.19% of loans on an annualized basis, bringing the nine month year-to-date annualized net charge-off rate to 0.13%. The company recorded a provision for loan losses of $3.3 million in the 2007 third quarter, up from $1.1 million recorded in the 2006 third quarter. Nonaccrual loans were $20.2 million at quarter end, or 0.35% of total loans. Other real estate owned at September 30, 2007 was $8.0 million, bringing total nonperforming assets to $28.2 million. As a percentage of period-end loans and other real estate owned, nonperforming assets rose to 0.49% as compared with 0.18% in the year ago quarter and 0.32% in the quarter ended June 30, 2007. "We look forward to our forthcoming merger with RBC Centura Banks, Inc.," said John H. Holcomb III, Chairman and CEO. "Our planning efforts with our new partner are focused on ensuring a smooth transition for our customers as we prepare to introduce additional products and services as part of the RBC family." ANB's performance resulted in a return on average tangible assets of 1.04% and a return on average tangible equity of 14.25% for the 2007 third quarter, down from 1.22% and 17.00%, respectively, in the 2006 third quarter. On a 2007 year-to-date basis, these ratios were 1.10% and 15.04%, respectively. Tangible book value per share at September 30, 2007 was $27.29. ANB is a bank holding company operating 103 banking locations through ten bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; and Alabama Exchange Bank in Tuskegee. Florida subsidiaries are: Indian River National Bank in Vero Beach; First Gulf Bank, N.A. in Escambia County, Florida and Baldwin County, Alabama; Florida Choice Bank in metropolitan Orlando and central Florida; Community Bank of Naples, N.A.; CypressCoquina Bank in Ormond Beach; and Millennium Bank in Gainesville. ANB has two subsidiaries in Georgia: Georgia State Bank and The Peachtree Bank, both in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Commercial mortgage services, including the origination of permanent commercial real estate mortgage loans for various lenders, are provided by Byars and Company, a division of First American Bank. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Alabama National BanCorporation common stock is traded on the NASDAQ Global Select Market under the symbol "ALAB." Conference Call: Alabama National will not be holding a conference call this quarter to discuss these results. Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values. This press release, including the attached selected unaudited financial tables which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These "non-GAAP" financial measures are "cash earnings" (cash earnings per share), "tangible book value" (tangible book value per share), "return on average tangible equity" and "return on average tangible assets." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Cash earnings is defined as net income plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings per basic and diluted share is defined as cash earnings divided by basic and diluted common shares outstanding. ANB's management includes cash earnings measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value is defined as total equity reduced by recorded intangible assets. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace that are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as annualized earnings for the period divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as annualized earnings for the period divided by average assets reduced by average goodwill and other intangible assets. ANB's management includes these measures because it believes that they are important when measuring the company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation Table" in the attached unaudited financial tables for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures. This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Where You Can Find Additional Information About ANB's Proposed Merger with RBC Centura Banks, Inc. The proposed merger of ANB with RBC Centura Banks, Inc., a wholly-owned subsidiary of Royal Bank of Canada ("RBC"), will be submitted to ANB's stockholders for consideration. RBC will file with the SEC a Registration Statement on Form F-4 that includes a preliminary version of a proxy statement of ANB that also constitutes a preliminary prospectus of RBC. RBC intends to file the F-4 with the SEC on or about November 30, 2007. Following the F-4 being declared effective by the SEC, ANB intends to mail the final proxy statement/prospectus to its stockholders. ANB stockholders are urged to read the final proxy statement/prospectus regarding the proposed transaction when it becomes available because it will contain important information. You may obtain a free copy of the F-4 (when it becomes available) and the final proxy statement/prospectus (when it becomes available) and other documents related to the merger filed by ANB and RBC with the SEC at the SEC's website at http://www.sec.gov/. You may also obtain documents filed with the SEC by RBC free of charge from RBC's website (http://www.rbc.com/) under the heading "News and Information - Investor Relations" and then under the heading "Regulatory Filings" and then under the heading "Link to EDGAR Information and Filings" and then, once it is filed, to the F-4 (or the most recent amendment thereto). You may also obtain documents filed with the SEC by ANB free of charge from ANB's website (http://www.alabamanational.com/) under the heading "Financial Reports" and then under the item "SEC Filings." Participants in the Merger RBC, RBC Centura Banks, Inc., ANB and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ANB stockholders in favor of the merger. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of ANB stockholders in connection with the merger will be set forth in the final proxy statement/prospectus when it becomes available. You can find information about RBC's executive officers and directors in its management proxy circular filed with the SEC as an exhibit to its Form 6-K on February 9, 2007. You can find information about ANB's executive officers and directors in its definitive proxy statement filed with the SEC on April 12, 2007. You can obtain free copies of these documents from the websites of RBC, ANB or the SEC. ALABAMA NATIONAL BANCORPORATION (Unaudited Financial Highlights) (in thousands, except per share amounts and percentages) Three Months Ended September 30, Percentage 2007 2006 Change (b) Net interest income $63,731 $58,196 9.5% Noninterest income 21,354 18,736 14.0 Total revenue 85,085 76,932 10.6 Provision for loan and lease losses 3,267 1,130 189.1 Noninterest expense 52,182 45,288 15.2 Income from continuing operations before taxes 29,636 30,514 (2.9) Income taxes 9,852 10,446 (5.7) Net income from continuing operations 19,784 20,068 (1.4) Income from discontinued operations (net of tax) 2 45 (95.6) Net income $19,786 $20,113 (1.6)% Weighted average common and common equivalent shares outstanding Basic 20,604 18,834 9.4% Diluted 20,751 19,012 9.1 Net income per common share from continuing operations Basic $.96 $1.07 (9.9)% Diluted .95 1.06 (9.7) Net income per common share Basic $.96 $1.07 (10.1)% Diluted .95 1.06 (9.9) Cash earnings per share from continuing operations (a) Total $20,632 $20,943 (1.5)% Basic 1.00 1.11 (9.9) Diluted .99 1.10 (9.7) Cash dividends declared on common stock $.41 $.375 Return on average assets 1.00% 1.18% Return on average tangible assets 1.04 1.22 Return on average equity 8.96 11.41 Return on average tangible equity 14.25 17.00 Noninterest Income Service charge income $4,903 $4,042 21.3 % Investment services income 1,189 1,292 (8.0) Wealth management income 6,373 5,371 18.7 Gain on sale of mortgages 2,945 2,774 6.2 Commercial mortgage banking income 363 518 (29.9) Gain on disposal of assets 131 13 907.7 Bank owned life insurance 1,142 988 15.6 Other 4,308 3,738 15.2 Total noninterest income $21,354 $18,736 14.0 % (a) Cash earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. Nine Months Ended September 30, Percentage 2007 2006 Change (b) Net interest income $190,988 $169,714 12.5% Noninterest income 62,706 54,546 15.0 Total revenue 253,694 224,260 13.1 Provision for loan and lease losses 8,302 4,293 93.4 Noninterest expense 153,983 132,704 16.0 Income from continuing operations before taxes 91,409 87,263 4.8 Income taxes 30,791 30,110 2.3 Net income from continuing operations 60,618 57,153 6.1 Income from discontinued operations (net of tax) 1,151 150 667.3 Net income $61,769 $57,303 7.8% Weighted average common and common equivalent shares outstanding Basic 20,702 18,336 12.9% Diluted 20,861 18,521 12.6 Net income per common share from continuing operations Basic $2.93 $3.12 (6.1)% Diluted 2.91 3.09 (5.8) Net income per common share Basic $2.98 $3.13 (4.5)% Diluted 2.96 3.09 (4.3) Cash earnings per share from continuing operations (a) Total $63,275 $59,454 6.4% Basic 3.06 3.24 (5.7) Diluted 3.03 3.21 (5.5) Cash dividends declared on common stock $1.23 $1.125 Return on average assets 1.06% 1.18% Return on average tangible assets 1.10 1.22 Return on average equity 9.49 11.71 Return on average tangible equity 15.04 17.08 Noninterest Income Service charge income $13,015 $11,753 10.7 % Investment services income 3,914 3,122 25.4 Wealth management income 18,409 16,102 14.3 Gain on sale of mortgages 9,811 8,046 21.9 Commercial mortgage banking income 1,159 1,534 (24.4) Gain on disposal of assets 624 552 13.0 Securities (losses) gains - (1,250) NM Bank owned life insurance 3,367 2,528 33.2 Other 12,407 12,159 2.0 Total noninterest income $62,706 $54,546 15.0 % (a) Cash earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. NM - Not meaningful September 30, December 31, Percentage 2007 2006 Change Total assets $7,967,331 $7,671,274 3.9% Earning assets 7,152,863 6,856,309 4.3 Securities (a) 1,253,681 1,265,774 (1.0) Loans held for sale 22,018 27,652 (20.4) Loans and leases, net of unearned income 5,761,997 5,456,136 5.6 Allowance for loan and lease losses 71,026 68,246 4.1 Deposits 5,682,313 5,567,603 2.1 Short-term borrowings 149,300 161,830 (7.7) Long-term debt 460,339 402,399 14.4 Stockholders' equity 880,956 853,623 3.2 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended Sept 30, June 30, Sept 30, 2007 2007 2006 Nonaccrual loans $20,239 $10,686 $8,344 Restructured loans - - - Loans past due 90 days or more and still accruing - 0 - - 0 - - 0 - Total nonperforming loans 20,239 10,686 8,344 Other real estate owned 7,969 7,678 381 Total nonperforming assets 28,208 18,364 8,725 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.49% 0.32% 0.18% Allowance for loan and lease losses $71,026 $70,474 $61,354 Provision for loan and lease losses 3,267 3,273 1,130 Loans charged off 2,981 2,799 848 Loan recoveries 266 323 333 Net loan and lease losses 2,715 2,476 515 Allowance for loan and lease losses as a percentage of period-end loans and leases (a) 1.23% 1.24% 1.26% Allowance for loan and lease losses as a percentage of period-end nonperforming loans 350.94 659.50 735.31 Net losses to average loans and leases (annualized) 0.19 0.18 0.04 For the Nine Months Ended September 30, Percentage 2007 2006 Change Provision for loan and lease losses $8,302 $4,293 93.4 % Loans charged off 6,281 1,866 236.60 Loan recoveries 759 1,033 (26.5) Net loan and lease losses 5,522 833 562.9 Net losses to average loans and leases (annualized) 0.13% 0.02% (a) Excludes loans held for sale TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended Sept 30, June 30, Sept 30, 2007 2007 2006 Interest income: Interest and fees on loans 8.03% 8.09% 7.95% Interest on securities: Taxable 4.61 4.61 4.46 Non-taxable 6.30 6.08 6.38 Total interest earning assets 7.44 7.48 7.27 Interest expense: Interest on deposits 4.19% 4.17% 3.72% Interest on short-term borrowing 5.46 5.49 5.62 Interest on long-term debt 5.05 5.09 5.22 Total interest bearing liabilities 4.34 4.32 4.03 Net interest spread 3.10 3.16 3.24 Net interest margin 3.63 3.72 3.81 Nine Months Ended September 30, 2007 2006 Interest income: Interest and fees on loans 8.08% 7.72% Interest on securities: Taxable 4.61 4.43 Non-taxable 6.21 6.43 Total interest earning assets 7.46 7.06 Interest expense: Interest on deposits 4.15% 3.39% Interest on short-term borrowing 5.34 5.25 Interest on long-term debt 5.17 4.98 Total interest bearing liabilities 4.31 3.68 Net interest spread 3.15 3.38 Net interest margin 3.70 3.91 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS September 30, December 31, 2007 2006 Stockholders' Equity: Equity to assets 11.06% 11.13% Leverage ratio 8.04 7.99 Book value per common share (a) $43.19 $41.51 Tangible book value per common share (a)(b) 27.29 25.55 Ending shares outstanding 20,397 20,562 (a) Includes a cumulative mark to market adjustment to equity of $(0.25) and $(0.29) per share at September 30, 2007 and December 31, 2006, respectively. (b) Total equity reduced by intangible assets divided by common shares outstanding. RECONCILIATION TABLE (in thousands, except per share amounts and percentages) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Net income from continuing operations $19,784 $20,068 $60,618 $57,153 Amortization of intangibles, net of tax 848 875 2,657 2,301 Cash earnings from continuing operations $20,632 $20,943 $63,275 $59,454 Net income per common share from continuing operations - basic $0.96 $1.07 $2.93 $3.12 Effect of amortization of intangibles per share 0.04 0.04 0.13 0.12 Cash earnings per common share from continuing operations - basic $1.00 $1.11 $3.06 $3.24 Net income per common share from continuing operations - diluted $0.95 $1.06 $2.91 $3.09 Effect of amortization of intangibles per share 0.04 0.04 0.12 0.12 Cash earnings per common share from continuing operations - diluted $0.99 $1.10 $3.03 $3.21 Average assets $7,884,691 $6,752,745 $7,812,661 $6,470,383 Average intangible assets (324,921) (230,011) (321,419) (205,795) Average tangible assets $7,559,770 $6,522,734 $7,491,242 $6,264,588 Return on average assets 1.00% 1.18% 1.06% 1.18% Effect of average intangible assets 0.04 0.04 0.04 0.04 Return on average tangible assets 1.04% 1.22% 1.10% 1.22% Average equity $875,842 $699,333 $870,475 $654,280 Average intangible assets (324,921) (230,011) (321,419) (205,795) Average tangible equity $550,921 $469,322 $549,056 $448,485 Return on average equity 8.96% 11.41% 9.49% 11.71% Effect of average intangible assets 5.29 5.59 5.55 5.37 Return on average tangible equity 14.25% 17.00% 15.04% 17.08% As of September 30, December 31, 2007 2006 Book value $880,956 $853,623 Intangible assets (324,279) (328,166) Tangible book value $556,677 $525,457 Book value per common share $43.19 $41.51 Effect of intangible assets per share (15.90) (15.96) Tangible book value per common share $27.29 $25.55 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (In thousands, except share amounts) September 30, 2007 December 31, 2006 Assets Cash and due from banks $164,103 $200,153 Interest-bearing deposits in other banks 27,983 16,350 Federal funds sold and securities purchased under resell agreements 86,364 89,865 Trading securities, at fair value 820 532 Investment securities (fair values of $729,561 and $705,460) 737,780 716,406 Securities available for sale, at fair value 515,901 549,368 Loans held for sale 22,018 27,652 Loans and leases 5,766,151 5,461,400 Unearned income (4,154) (5,264) Loans and leases, net of unearned income 5,761,997 5,456,136 Allowance for loan and lease losses (71,026) (68,246) Net loans and leases 5,690,971 5,387,890 Property, equipment and leasehold improvements, net 173,666 155,001 Assets to be disposed of - 3,549 Goodwill 311,658 311,583 Other intangible assets, net 12,621 16,583 Cash surrender value of life insurance 108,384 104,992 Receivable from investment division customers 13,998 1,114 Other assets 101,064 90,236 Totals $7,967,331 $7,671,274 Liabilities and Stockholders' Equity Deposits: Noninterest bearing $755,248 $849,127 Interest bearing 4,927,065 4,718,476 Total deposits 5,682,313 5,567,603 Federal funds purchased and securities sold under repurchase agreements 719,823 627,297 Liabilities to be disposed of - 1,019 Accrued expenses and other liabilities 59,782 56,057 Payable for securities purchased for investment division customers 14,818 1,446 Short-term borrowings 149,300 161,830 Long-term debt 460,339 402,399 Total liabilities 7,086,375 6,817,651 Common stock, $1 par; 50,000,000 shares authorized; 20,626,500 and 20,562,467 shares issued at September 30, 2007 and December 31, 2006, respectively 20,627 20,562 Additional paid-in capital 577,064 573,756 Retained earnings 302,594 266,668 Treasury stock at cost, 230,000 shares at September 30, 2007 (14,221) - Accumulated other comprehensive loss, net of tax (5,108) (7,363) Total stockholders' equity 880,956 853,623 Totals $7,967,331 $7,671,274 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) (In thousands, except per share data) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2007 2006 2007 2006 Interest income: Interest and fees on loans and leases $116,151 $97,279 $342,816 $266,374 Interest on securities 14,436 13,275 42,402 38,329 Interest on deposits in other banks 265 225 819 450 Interest on trading securities 8 15 32 34 Interest on federal funds sold and securities purchased under resell agreements 888 806 2,682 2,531 Total interest income 131,748 111,600 388,751 307,718 Interest expense: Interest on deposits 52,806 38,019 153,347 99,059 Interest on federal funds purchased and securities sold under repurchase agreements 7,534 8,142 22,353 21,207 Interest on short-term borrowings 1,912 2,117 5,587 3,238 Interest on long-term debt 5,765 5,126 16,476 14,500 Total interest expense 68,017 53,404 197,763 138,004 Net interest income 63,731 58,196 190,988 169,714 Provision for loan and lease losses 3,267 1,130 8,302 4,293 Net interest income after provision for loan and lease losses 60,464 57,066 182,686 165,421 Noninterest income: Securities losses - - - (1,250) Gain on disposition of assets 131 13 624 552 Service charges on deposit accounts 4,903 4,042 13,015 11,753 Investment services income 1,189 1,292 3,914 3,122 Wealth management income 6,373 5,371 18,409 16,102 Gain on sale of mortgages 2,945 2,774 9,811 8,046 Commercial mortgage banking income 363 518 1,159 1,534 Bank owned life insurance 1,142 988 3,367 2,528 Other 4,308 3,738 12,407 12,159 Total noninterest income 21,354 18,736 62,706 54,546 Noninterest expense: Salaries and employee benefits 26,695 23,582 78,950 68,989 Commission based compensation 5,198 4,586 15,131 13,143 Occupancy and equipment expenses 5,845 5,160 17,364 14,843 Amortization of intangibles 1,262 1,262 3,961 3,290 Other 13,182 10,698 38,577 32,439 Total noninterest expense 52,182 45,288 153,983 132,704 Income before provision for income taxes from continuing operations 29,636 30,514 91,409 87,263 Provision for income taxes 9,852 10,446 30,791 30,110 Net income from continuing operations 19,784 20,068 60,618 57,153 Income from discontinued operations, including a gain on disposal of $1,462,000 for the nine months ended September 30, 2007 (net of tax) 2 45 1,151 150 Net income $19,786 $20,113 $61,769 $57,303 Weighted average common shares outstanding: Basic 20,604 18,834 20,702 18,336 Diluted 20,751 19,012 20,861 18,521 Earnings per common share from continuing operations: Basic $0.96 $1.07 $2.93 $3.12 Diluted $0.95 $1.06 $2.91 $3.09 Earnings per common share: Basic $0.96 $1.07 $2.98 $3.13 Diluted $0.95 $1.06 $2.96 $3.09 AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 09/30/07 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $5,747,873 $116,327 8.03% Securities: Taxable 1,087,449 12,624 4.61 Tax exempt 172,851 2,746 6.30 Cash balances in other banks 21,320 265 4.93 Funds sold 59,031 888 5.97 Trading account securities 587 8 5.41 Total earning assets (2) 7,089,111 132,858 7.44 Cash and due from banks 168,465 Premises and equipment 168,834 Other assets 529,332 Allowance for loan and lease losses (71,051) Total assets $7,884,691 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,169,311 $8,604 2.92% Savings deposits 1,058,083 9,138 3.43 Time deposits 2,771,279 35,064 5.02 Funds purchased 624,192 7,534 4.79 Other short-term borrowings 139,054 1,912 5.46 Long-term debt 453,231 5,765 5.05 Total interest-bearing liabilities 6,215,150 68,017 4.34 Demand deposits 729,799 Accrued interest and other liabilities 63,900 Stockholders' equity 875,842 Total liabilities and stockholders' equity $7,884,691 Net interest spread 3.10% Net interest income/margin on a taxable equivalent basis 64,841 3.63% Tax equivalent adjustment (2) 1,110 Net interest income/margin $63,731 3.57% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 09/30/06 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $4,861,167 $97,415 7.95% Securities: Taxable 1,095,864 12,312 4.46 Tax exempt 90,761 1,459 6.38 Cash balances in other banks 17,796 225 5.02 Funds sold 57,876 806 5.53 Trading account securities 1,245 15 4.78 Total earning assets (2) 6,124,709 112,232 7.27 Cash and due from banks 168,449 Premises and equipment 139,617 Other assets 381,126 Allowance for loan and lease losses (61,156) Total assets $6,752,745 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,114,186 $8,135 2.90% Savings deposits 955,355 7,217 3.00 Time deposits 1,987,488 22,667 4.52 Funds purchased 662,649 8,142 4.87 Other short-term borrowings 149,362 2,117 5.62 Long-term debt 389,516 5,126 5.22 Total interest-bearing liabilities 5,258,556 53,404 4.03 Demand deposits 748,486 Accrued interest and other liabilities 46,371 Stockholders' equity 699,333 Total liabilities and stockholders' equity $6,752,745 Net interest spread 3.24% Net interest income/margin on a taxable equivalent basis 58,828 3.81% Tax equivalent adjustment (2) 632 Net interest income/margin $58,196 3.77% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Nine Months 09/30/07 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $5,681,298 $343,406 8.08% Securities: Taxable 1,094,154 37,722 4.61 Tax exempt 152,762 7,091 6.21 Cash balances in other banks 22,128 819 4.95 Funds sold 65,444 2,682 5.48 Trading account securities 849 32 5.04 Total earning assets (2) 7,016,635 391,752 7.46 Cash and due from banks 179,679 Premises and equipment 164,062 Other assets 522,462 Allowance for loan and lease losses (70,177) Total assets $7,812,661 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,183,641 $25,709 2.90% Savings deposits 1,095,800 28,562 3.48 Time deposits 2,657,424 99,076 4.98 Funds purchased 626,632 22,353 4.77 Other short-term borrowings 139,975 5,587 5.34 Long-term debt 425,933 16,476 5.17 Total interest-bearing liabilities 6,129,405 197,763 4.31 Demand deposits 754,311 Accrued interest and other liabilities 58,470 Stockholders' equity 870,475 Total liabilities and stockholders' equity $7,812,661 Net interest spread 3.15% Net interest income/margin on a taxable equivalent basis 193,989 3.70% Tax equivalent adjustment (2) 3,001 Net interest income/margin $190,988 3.64% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Nine Months 09/30/06 Average Income/ Yield/ Balance Expense Cost Assets: Earning assets: Loans and leases (1) $4,617,531 $266,759 7.72% Securities: Taxable 1,084,872 35,939 4.43 Tax exempt 75,278 3,621 6.43 Cash balances in other banks 12,718 450 4.73 Funds sold 65,844 2,531 5.14 Trading account securities 1,019 34 4.46 Total earning assets (2) 5,857,262 309,334 7.06 Cash and due from banks 179,982 Premises and equipment 128,875 Other assets 362,587 Allowance for loan and lease losses (58,323) Total assets $6,470,383 Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $1,096,629 $21,580 2.63% Savings deposits 930,326 18,391 2.64 Time deposits 1,885,467 59,088 4.19 Funds purchased 626,496 21,207 4.53 Other short-term borrowings 82,390 3,238 5.25 Long-term debt 388,959 14,500 4.98 Total interest-bearing liabilities 5,010,267 138,004 3.68 Demand deposits 736,455 Accrued interest and other liabilities 69,381 Stockholders' equity 654,280 Total liabilities and stockholders' equity $6,470,383 Net interest spread 3.38% Net interest income/margin on a taxable equivalent basis 171,330 3.91% Tax equivalent adjustment (2) 1,616 Net interest income/margin $169,714 3.87% (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. DATASOURCE: Alabama National BanCorporation CONTACT: John H. Holcomb III, Chairman of the Board and Chief Executive Officer, +1-205-583-3648, or William E. Matthews, V, Executive Vice President and Chief Financial Officer, +1-205-583-3650, both of Alabama National BanCorporation Web site: http://www.alabamanational.com/

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