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He singlehandedly took this rivalry to new heights and this season he is doing it again3 million according to Reuters Estimates What is really needed is funding for researchTherersquos no better time of year periodThis article is also featured on Yanks and MoreC to again extend the deadline for this processHaddadi to see who will log the least playing time5billion yen for the JulySeptember quarterFM Series keypads are available in both illuminated and nonilluminatedconfigurationsWith Tim Tebow out this game changes shapeTherecan be no assurance that these transactions will occur or that the expectedbenefits associated therewith will be achieved. A number of important factorscould cause actual results to differ materially from those contemplated by ourforward-looking statements in this press release. Many of these factors arebeyond our ability to control or predict. These factors include, but are notlimited to, those found in our filings with the Securities and ExchangeCommission, including our Annual Report on Form 10-K, Quarterly Reports on Form10-Q and Current Reports on Form 8-K. 
and SubsidiariesFourth Quarter Financial HighlightsDecember 31, 2008 and 2007($ in thousands, except per share data)(Unaudited) Balance Sheet Data at December 31 20082007 Change Total assets$1,007,377$932,459 8.0 Interest-earning assets931,448 878,992 6.0 Loans864,974 808,651 7.0 Allowance for loan losses 13,30012,864 3.4 Nonaccruing loans 26,27714,66379 Loans past due 90 days -accruing1,330 2,761(52) Net charge-offs5,564 765NM Deposits 832,123 764,218 8.9 Interest-bearing liabilities 837,558 759,59710 Shareholders' equity80,93276,272 6.1 Allowance for loan losses to total loans1.54 1.59 (3.1) Nonperforming assets to total loans and OREO4.09 2.41 70 Loan to deposit ratio 104106 (1.9) Equity to assets 8.03 8.18 (1.8) Tier 1 capital to risk-weighted assets 10.2810.49 (2.0) Total capital torisk-weighted assets 11.5411.74 (1.7) Outstanding shares (000s)5,934 5,924 0.2 Book value per share$13.64$12.88 5.9 Tangible book value per share $13.19$12.40 6.4 Market value per share$ 8.85$17.14(48) Performance Data for the Year Net income$6,006$7,636(21) Return on average assets 0.63 0.88(28) Return on average equity 7.6010.68(29) Net interest margin3.58 3.99(10) Efficiency ratio61.8556.0914 Per share data:Net income - basic$ 1.01$ 1.31(23) Net income - diluted$ 1.01$ 1.29(22) Dividends $.50$.48 4.2 Average shares (000s): Basic5,930 5,850 1.4 Diluted5,947 5,922 0.4 Performance Datafor the Fourth Quarter Net income$778$353 120 Return on average assets 0.31 0.15 107 Return on average equity 3.86 1.83 111 Net interest margin3.24 3.72(13) Efficiency ratio63.8960.48 2.3 Per share data:Net income - basic$ 0.13$ 0.06 117 Net income - diluted$ 0.13$ 0.06 117 Dividends $0.125$0.120 4.2 Average shares (000s): Basic5,933 5,923 0.2 Diluted5,942 5,968 (0.4)The Savannah Bancorp, Inc. and Subsidiaries Consolidated Statements of Incomefor the Two Years and Five Quarters Ending December 31, 2008($ in thousands, except per share data) For the Years EndedDecember 31,20082007 ChgInterest and dividend income Loans, including fees$53,259 $59,435 (10) Loans held for sale 6098 (39) Investment securities3,081 2,907 6.0 Deposits with banks149 346 (57) Federal funds sold 133 472 (72) Total interest and dividend income 56,68263,258 (10) Interest expense Deposits21,84226,415 (17) Short-term borrowings & sub debt 2,303 3,454 (33) FHLB advances294 413 (29) Total interest expense24,43930,282 (19) Net interest income 32,24332,976(2.2) Provision for loan losses6,000 4,67528 Net interest income after the provision for loan losses 26,24328,301(7.3) Noninterest income Trust and asset management fees2,832 1,51387 Service charges on deposits1,881 1,38336 Mortgage related income, net 295 615 (52) Other operating income 1,216 1,242(2.1) Gain on hedges 1,288Gain (loss) on sale of OREO (142)(44)223 Gain on sale of securities 163 Total noninterest income 7,533 4,70960 Noninterest expense Salaries and employee benefits13,53611,84614 Occupancy and equipment3,884 3,29418 Information technology 1,633 1,616 1.1 Other operating expense5,547 4,38327 Total noninterest expense 24,60021,13916 Income before income taxes 9,17611,871 (23) Income tax expense 3,170 4,235 (25) Net income $ 6,006 $ 7,636 (21) Net income per share: Basic$1.01 $1.31 (23) Diluted$1.01 $1.29 (22) Average basic shares (000s)5,930 5,850 1.4 Average diluted shares (000s)5,947 5,922 0.4 Performance Ratios Return on average equity7.6010.68(29) Return on average assets0.63 0.88(28) Net interest margin 3.58 3.99(10) Efficiency ratio61.8 56.1 10 Average equity78,99871,51610 Average assets 960,260 869,02610 Average interest-earning assets898,295 830,900 8.1 -(Unaudited) - 20082007Q4-08 / - -FourthThird Second FirstFourthQ4-07 QuarterQuarterQuarter Quarter Quarter Chg - Interest anddividend income Loans, includingfees$ 12,268 $ 13,333 $13,447 $14,211 $15,016 (18) Loans held forsale 8 20201214 (43) Investmentsecurities 817722 760 782 767 6.5 Deposits withbanks 18 303467 100 (82) Federal funds sold16 31335345 (64) -Total interest and dividend income 13,127 14,13614,29415,12515,942 (18) - Interest expense Deposits4,9695,391 5,358 6,124 6,881 (28) Short-termborrowings & sub debt 543412 467 881 935 (42) FHLB advances80 8283494674 -Total interest expense 5,5925,885 5,908 7,054 7,862 (29) - Net interestincome 7,5358,251 8,386 8,071 8,080(6.7) Provision for loan losses2,2701,505 1,155 1,070 3,145 (28) - Net interestincome after the provisionfor loan losses 5,2656,746 7,231 7,001 4,935 6.7 - Noninterest income Trust and assetmanagement fees 675713 720 724 769 (12) Service charges ondeposits 447513 534 387 34928 Mortgage related income, net 60 86866398 (39) Other operatingincome 314296 300 306 315(0.3) Gain on hedges574430 284 Gain (loss) onsale of OREO(141) (17) 17(1)(38)271 Gain on sale ofsecurities29 134 -Total noninterest income1,9582,021 1,791 1,763 1,49331 - Noninterest expense Salaries andemployee benefits 3,0953,479 3,489 3,473 3,125(1.0) Occupancy andequipment1,118967 910 889 95817 Informationtechnology 421424 395 393 422(0.2) Other operatingexpense1,4311,364 1,357 1,395 1,28511 -Totalnoninterest expense 6,0656,234 6,151 6,150 5,790 4.7 - Income beforeincome taxes 1,1582,533 2,871 2,614 63882 Income tax expense380895 985 910 28533 - Net income $778 $1,638 $ 1,886 $ 1,704 $ 353 120 Net income per share: Basic$.13 $ 0.28 $0.32 $ .29 $ .06 117 Diluted$.13 $ 0.28 $0.32 $ .29 $ .06 117 Average basicshares (000s)5,9335,930 5,931 5,927 5,923 0.2 Average dilutedshares (000s)5,9425,943 5,952 5,952 5,968(0.4) Performance Ratios Return on averageequity3.868.24 9.65 8.76 1.83110 Return on averageassets0.310.68 0.80 0.73 0.15107 Net interestmargin3.243.63 3.77 3.70 3.72(13) Efficiency ratio 63.960.7 60.4 62.5 60.55.6 Average equity 80,138 79,03578,59678,21074,447 7.6 Average assets991,368964,762 949,937 934,756 910,785 8.8 Average interest-earning assets 922,642901,992 892,397 876,022 865,430 6.6 The Savannah Bancorp, Inc. and Subsidiaries Selected Financial Condition Highlights - Five-Year Comparison ($ in thousands, except per share data) (Unaudited) - 20082007200620052004 - Selected Average Balances -Assets$960,260 $ 869,026 $ 769,917 $ 685,163 $ 557,474Loans held for sale765 1,299 7,84223,03327,209Loans, net of unearned income 821,673 754,490 658,750 565,131 441,421Securities62,01958,91050,60041,30040,703Other interest- earning assets 13,83816,20117,27826,16822,383Total interest- earning assets898,295 830,900 734,470 655,632 531,716Interest-bearing deposits701,045 628,310 542,375 487,493 371,877Borrowed funds88,55370,93962,25555,25567,353Total interest- bearing liabilities 789,598 699,249 604,630 542,748 439,230Noninterest- bearing deposits 83,67891,36796,11389,38676,593Total deposits 784,723 719,677 638,488 576,879 448,470Shareholders' equity 78,99871,51661,76647,42838,126Loan to deposit ratio - average105105103 98 98 Selected FinancialData at Year-End Assets$1,007,377 $ 932,459 $ 843,514 $ 717,901 $ 617,341Interest-earning assets931,448 878,992 803,927 685,531 593,035Loans held for sale291 180 91410,47326,471Loans, net of unearned income 864,974 808,651 720,918 613,667 499,868Deposits 832,123 764,218 706,824 600,510 506,120Loan to deposit ratio104106102102 99Interest-bearing liabilities 837,558 759,597 669,974 558,116 488,546Shareholders' equity 80,93276,27266,57458,54340,071Shareholders' equity to total assets 8.03 8.18 7.89 8.15 6.49Dividend payout ratio49.3836.7325.9225.5337.69Risk-based capital ratios:Tier 1 capital to risk- weighted assets10.2810.4911.0911.52 9.95Total capital to risk-weighted assets 11.5411.7412.3412.7711.20 Loan Quality Data -Nonperforming assets $ 35,707 $19,535 $ 2,776 $ 1,357 $ 998Nonperforming loans27,60717,424 2,231 1,357 538Net charge-offs5,564 765 44476 128Allowance for loan losses 13,30012,864 8,954 7,813 6,389Nonperforming loans to loans3.19 2.15 0.31 0.22 0.11Nonperforming assets to loans and other real estate owned4.09 2.41 0.39 0.22 0.20Net charge-offs to average loans 0.68 0.01 0.07 0.01 0.03Allowance for loan losses to total loans 1.54 1.59 1.24 1.27 1.28 Per Share Data atYear-End (a) -Book value$13.64 $ 12.88 $ 11.52 $ 10.20 $7.80Tangible book value 13.19 12.40 11.52 10.207.80Common stock closing price (Nasdaq) 8.85 17.14 27.25 28.38 21.64Common shares outstanding(000s) 5,934 5,924 5,781 5,739 5,140 (a) Share and per share amounts have been restated to reflect the effect of a 5-for-4 stock split in December 2006.The Savannah Bancorp, Inc. and SubsidiariesSelected Operating Highlights - Five-Year Comparison ($ in thousands, except per share data)(Unaudited)2008 2007 2006 2005 2004Summary of operationsInterest income - taxable equivalent$56,714$63,414$55,347$42,544$28,947Interest expense24,439 30,282 22,737 14,6798,427Net interest income - taxable equivalent 32,275 33,132 32,610 27,865 20,520Taxable equivalent adjustment(32)(156)(158)(186)(240)Net interest income 32,243 32,976 32,452 27,679 20,280Provision for loan losses6,0004,6751,5851,5001,450Net interest income after provision for loan losses26,243 28,301 30,867 26,179 18,830Noninterest income Trust and assetmanagement fees2,8321,513658501442 Service charges ondeposit accounts 1,8811,3831,5261,6221,598 Mortgage relatedincome, net2956158861,2921,079 Other operatingincome 1,2161,2421,233972981 Gain on hedges1,288 Loss on sale of OREO (142) (44) Gain on sale ofsecurities 163 Total noninterest income7,5334,7094,3034,3874,100Noninterest expense Salaries and employeebenefits13,536 11,846 10,8529,5308,362 Occupancy andequipment3,8843,2942,9202,1991,963 Informationtechnology 1,6331,6161,5251,2441,049 Other operatingexpense5,5474,3834,6563,6732,880Total noninterest expense24,600 21,139 19,953 16,646 14,254Income before income taxes 9,176 11,871 15,217 13,9208,676Income tax expense 3,1704,2355,2154,8802,940Net income $ 6,006$ 7,636$10,002$ 9,040$ 5,736Net income per share:(a) Basic $1.01$1.31$1.73$1.68$1.12 Diluted $1.01$1.29$1.70$1.63$1.09Cash dividends paid per share $0.50$0.48$0.45$0.43$0.42Average basic shares outstanding (000s)5,9305,8505,7655,3965,136Average diluted shares outstanding (000s)5,9475,9225,8765,5315,261Performance ratiosNet interest margin 3.583.994.444.253.86Return on average assets 0.630.881.301.321.03Return on average equity 7.60 10.68 16.19 19.06 15.04Efficiency ratio 61.85 56.09 54.29 51.91 58.47 (a) Share and per share amounts have been restated to reflect theeffect of a 5-for-4 stock split in December 2006 The Savannah Bancorp, Inc. and SubsidiariesSelected Quarterly Data - 2008 and 2007($ in thousands, except per share data)(Unaudited) Condensed Quarterly Income StatementsThe following is a summary of unaudited quarterly results for2008 and 2007:2008 FourthThird SecondFirst Net interest income $7,535$8,251$8,386$8,071 Provision for loan losses2,270 1,505 1,155 1,070 Net interest income afterprovision for loan losses 5,265 6,746 7,231 7,001 Noninterest income 1,958 2,021 1,791 1,763 Noninterest expense6,065 6,234 6,151 6,150 Income before income taxes 1,158 2,533 2,871 2,614 Income tax expense 380 895 985 910 Net income$778$1,638$1,886$1,704 Per share:(a) Net income - basic$ .131$ .276$ .318$ .287 Net income - diluted$ .131$ .276$ .317$ .286 Dividends $ .125$ .125$ .125$ .125 Average shares (000s) Basic5,933 5,930 5,931 5,928 Diluted5,942 5,943 5,952 5,9512007 FourthThird SecondFirst Net interest income $8,080$8,308$8,412$8,176 Provision for loan losses3,145 635 395 500 Net interest income afterprovision for loan losses 4,935 7,673 8,017 7,676 Noninterest income 1,493 1,164 1,000 1,052 Noninterest expense5,790 5,176 5,026 5,147 Income before income taxes 638 3,661 3,991 3,581 Income tax expense 285 1,280 1,400 1,270 Net income$353$2,381$2,591$2,311 Per share:(a) Net income - basic$ .060$ .406$ .445$ .400 Net income - diluted$ .059$ .402$ .439$ .392 Dividends $ .120$ .120$ .120$ .120 Average shares (000s) Basic5,923 5,862 5,824 5,782 Diluted5,968 5,928 5,899 5,890 Quarterly Market Values of Common Shares The Company's common stock was sold in an initial public offering on April 10, 1990. The quarterly high, low and closing stock trading prices for 2008 and 2007 are listed below.
There were approximately 650 holders of record of Company Common Stock and, according to information available to the Company, approximately 1,150 additional shareholders in street name through brokerage accounts at December 31, 2008. 2008 Closing Market Prices FourthThird SecondFirst High$13.35$15.00$18.73$18.49 Low 8.57 11.89 12.75 15.76 Close 8.85 13.25 13.00 17.50 2007 Closing Market Prices FourthThird SecondFirst High$24.69$25.97$27.20$28.07 Low17.10 23.00 24.71 27.00 Close17.14 24.69 25.10 27.00The Savannah Bancorp, Inc. and Subsidiaries Allowance for Loan Losses and Nonperforming Loans (Unaudited) 2008 2007 Fourth ThirdSecond FirstFourth ($ in thousands)Quarter Quarter Quarter Quarter Quarter Allowance for loan losses Balance at beginningof period$12,390 $12,445 $12,128 $12,864 $ 9,842 Provision for loanlosses 2,270 1,505 1,155 1,070 3,145 Net charge-offs(1,360) (1,560) (838) (1,806) (123) Balance at end ofperiod $13,300 $12,390 $12,445 $12,128 $12,864 As a of loans1.54 1.45 1.48 1.45 1.59 As a ofnonperforming loans48.1856.2566.6169.2673.83 As a ofnonperformingassets 37.2543.9459.1862.0865.85 Net charge-offs as a of average loans(a) 0.65 0.75 0.40 0.90 0.07 Risk element assets Nonaccruing loans $26,277 $17,753 $16,991 $16,915 $14,663 Loans past due 90days - accruing1,330 4,274 1,693 596 2,761 Total nonperformingloans 27,60722,02718,68417,51117,424 Other real estateowned8,100 6,168 2,346 2,025 2,112 Totalnonperforming assets$35,707 $28,195 $21,030 $19,536 $19,536 Loans past due 30-89 days $ 8,269 $ 8,841 $ 6,528 $11,014 $ 4,723 Nonperforming loansas a of loans 3.19 2.58 2.22 2.10 2.24 Nonperforming assets as a of loans and other real estate owned 4.09 3.28 2.50 2.33 2.51 (a) AnnualizedThe Savannah Bancorp, Inc. and Subsidiaries Average Balance Sheet and Rate/Volume Analysis - 2008 and 2007 Average BalanceAverage Rate2008 2007 2008 2007 - ($ in thousands) () Assets$ 7,033$ 6,958 2.11 4.97Interest-bearing deposits60,136 56,851 4.98 5.01Investments - taxable 1,8832,059 5.46 7.33Investments - non-taxable 6,8059,243 1.95 5.11Federal funds sold7651,299 7.82 7.54Loans held for sale821,673754,490 6.47 7.89Loans (c) -898,295830,900 6.30 7.63Total interest-earning assets 61,965 38,126Noninterest-earning assets - $960,260 $869,026Total assets Liabilities and equity Deposits $120,661 $114,053 1.15 2.00 NOW accounts15,488 17,831 0.88 0.99 Savings accounts 128,826120,898 2.38 4.43 Money market accounts 68,464 46,989 2.66 3.85 MMA - institutional147,576131,553 4.52 5.35 CDs, $100M or more 85,790 74,234 3.49 4.83 CDs, broker 134,240122,752 4.25 5.03 Other time deposits-701,045628,310 3.11 4.20Total interest-bearing deposits 10,2647,833 2.86 5.27FHLB advances - long term67,979 52,796 2.44 4.95Short-term borrowings 10,310 10,310 6.21 8.17Subordinated debtTotal interest-bearing789,598699,249 3.09 4.33 liabilities 83,678 91,367Noninterest-bearing deposits7,9866,894Other liabilities 78,998 71,516Shareholders' equity - $960,260 $869,026Liabilities and equity 3.21 3.30Interest rate spread 3.58 3.99Net interest marginNet interest income $108,697 $131,651Net earning assets $784,723 $719,677Average deposits 2.78 3.67Average cost of deposits105 105 Average loan to deposit ratio Taxable-Equivalent (a) VarianceInterest (b)Attributable to Vari2008 2007 ance Rate Volume -($ in thousands)($ in thousands) Assets Interest-bearingdeposits $ 149$ 346$(197)$ (200)$ 3 Investments - taxable 3,0022,848154(17)171 Investments - non-taxable103151(48) (39) (9) Federal funds sold133472 (339)(293)(46) Loans held for sale60 98(38) 4 (42) Loans (c)53,267 59,499 (6,232) (10,743)4,511 Total interest-earning assets56,714 63,414 (6,700) (11,081)4,381 - Noninterest-earningassets Total assets Liabilities and equity DepositsNOW accounts 1,3962,279 (883)(972) 89Savings accounts 137176(39) (20)(19)Money market accounts3,0795,355 (2,276)(2,485)209MMA - institutional1,8271,809 18 (561)579CDs, $100M or more 6,6857,020 (335)(1,082)747CDs, broker2,9983,605 (607)(1,020)413Other time deposits5,7206,171 (451)(960)509 Total interest-bearing deposits21,842 26,415 (4,573)(6,867)2,294 FHLB advances - longterm 294413 (119)(189) 70 Short-term borrowings 1,6612,612 (951)(1,329)378 Subordinated debt 642842 (200)(203)3 Total interest-bearingliabilities 24,439 30,282 (5,843)(8,694)2,851 - Noninterest-bearingdeposits Other liabilities Shareholders' equity Liabilities and equity Interest rate spread Net interest margin Net interest income $32,275$33,132$(857)$ (2,387)$ 1,530 Net earning assets Average deposits Average cost ofdeposits Average loan todeposit ratio (a) This table shows the changes in interest income and interestexpense for the comparative periods based on either changes inaverage volume or changes in average rates for interest-earningassets and interest-bearing liabilities. (b) The taxable equivalent adjustment results from tax exempt incomeless non-deductible TEFRA interest expense and was $32 and $156in 2008 and 2007.
and Subsidiaries Average Balance Sheet and Rate/Volume Analysis - Fourth Quarter, 2008 and 2007Average Balance Average Rate- QTDQTDQTD QTD 2008 2007 20082007($ in thousands) () Assets $ 9,998 $ 9,0670.714.38Interest-bearing deposits67,55758,9464.705.07Investments - taxable 1,792 1,9175.097.45Investments - non-taxable 7,366 5,3680.863.33Federal funds sold159 669 19.968.30Loans held for sale 835,770 789,4635.827.55Loans (c) 922,642 865,4305.657.33Total interest-earning assets-68,72645,355Noninterest-earning assets $991,368$910,785Total assets Liabilities and equityDeposits$127,757$112,7850.791.85 NOW accounts 14,63616,4370.890.94 Savings accounts106,073 136,1332.063.64 Money market accounts 81,77646,9892.264.99 MMA - institutional 143,900 148,2314.055.36 CDs, $100M or more107,63772,3603.114.82 CDs, broker 142,450 126,0183.775.02 Other time deposits 724,229 658,9532.724.14Total interest-bearing deposits11,609 3,0212.736.04FHLB advances - long term 73,95963,9522.004.48Other borrowings10,31010,3106.588.20Subordinated debt Total interest-bearing 810,107 736,2362.714.24 liabilities- 83,50690,895Noninterest-bearing deposits 7,617 7,207Other liabilities80,13876,447Shareholders' equity $991,368$910,785Liabilities and equity 2.943.09Interest rate spread3.243.72Net interest marginNet interest income$102,535$129,194Net earning assets $807,735$749,848Average deposits 2.443.64Average cost of deposits 103105 Average loan to deposit ratio TaxableEquivalent (a) VarianceInterest (b) Attributable to QTDQTDVari- 2008 2007anceRate Volume ($ in thousands) ($ in thousands) Assets Interest-bearingdeposits$18$ 100 ($82)$ (84)$ 2 Investments - taxable800754 46 (55)101 Investments - non-taxable23 36(13)(11) (2) Federal funds sold16 45(29)(33)4 Loans held for sale8 14 (6) 20 (26) Loans (c) 12,270 15,032 (2,762) (3,442)680- Total interest-earningassets 13,135 15,981 (2,846) (3,665)819- Noninterest-earningassets Total assets Liabilities and equity DepositsNOW accounts254527 (273) (301) 28Savings accounts 33 39 (6) (2) (4)Money market accounts 5501,250 (700) (542) (158)MMA - institutional 466591 (125) (323)198CDs, $100M or more1,4682,001 (533) (489)(44)CDs, broker 843880(37) (312)275Other time deposits 1,3551,593 (238) (397)159- Total interest-bearingdeposits4,9696,881 (1,912) (2,359)447 FHLB advances - longterm 80 46 34 (25) 59 Other borrowings 372722 (350) (400) 50 Subordinated debt171213(42)(42) - Total interest-bearing liabilities5,5927,862 (2,270) (2,839)569- Noninterest-bearingdeposits Other liabilities Shareholders' equity Liabilities and equity Interest rate spread Net interest margin Net interest income$ 7,543$ 8,119$(576)$(826)$ 250 Net earning assets Average deposits Average cost ofdeposits Average loan todeposit ratio (a) This table shows the changes in interest income and interestexpense for the comparative periods based on either changes inaverage volume or changes in average rates for interest-earningassets and interest-bearing liabilities. Changes which are notsolely due to rate changes or solely due to volume changes areattributed to volume. (b) The taxable equivalent adjustment results from tax exempt incomeless non-deductible TEFRA interest expense and was $8 and $39 inthe fourth quarter 2008 and 2007, respectively. (c) Average nonaccruing loans have been excluded from total averageloans and categorized in noninterest-earning assets The Savannah Bancorp, Inc.
