Allegiant Bancorp, Inc. 2000 Net Income Climbs 30%.Business Editors ST. LOUIS--(BUSINESS WIRE)--Jan. 17, 2001 Allegiant al·le·giance n. 1. Loyalty or the obligation of loyalty, as to a nation, sovereign, or cause. See Synonyms at fidelity. 2. The obligations of a vassal to a lord. Bancorp, Inc. (Nasdaq: ALLE ALLE Alberta Language Learning Environment (University of Calgary, Canada) ), a premier community bank headquartered in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , today reported that net income for the year ended December 31, 2000 increased by $1.6 million or 30% to $7.0 million compared to $5.4 million in 1999. The record earnings for 2000 marked the ninth consecutive year of net income growth. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of also increased 30% to $1.08 in 2000 compared to $0.83 in 1999. Return on average equity for 2000 improved to 13.2%. On November 15, 2000, Allegiant completed the acquisition of Equality Bancorp, Inc. Equality, was the parent of Equality Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. which was founded in 1884 and was the oldest thrift thrift: see leadwort. in the State of Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. . At the time of closing, Equality had consolidated assets of
approximately $300 million. In the acquisition of Equality, we issued
$23.6 million of Allegiant stock. Based upon the net book value of the
Equality assets at closing, we completed the acquisition without any
goodwill. The Equality acquisition helped to increase the number of
Allegiant's outstanding shares to 8,897,701 at December 31, 2000.
Also during November, Equality's systems were successfully
integrated into Allegiant's including the conversion of all
computer systems and records. Equality customers have had access to all
of Allegiant's products and services at any of our 23 branches
located in the St. Louis, Missouri metropolitan area. The integration of
Equality was completed without any dilution DilutionA reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. to Allegiant's 2000 earnings and we expect the acquisition to be accretive to 2001 earnings. Net interest income increased 23% for the twelve months ended December 31, 2000 compared to 1999. The net interest margin for 2000 decreased slightly to 3.99% compared to 4.17% in 1999. While the average yield on earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased 61 basis points during 2000, the cost of interest bearing liabilities increased 78 basis points as a result of stiff competition for deposits in the St. Louis market. While many banks are reporting little or no growth in deposits, Allegiant's deposits grew 22% in 2000 without the Equality acquisition, and 56% including Equality's deposits. Other income for the twelve months ended December 31, 2000 increased 33% to $6.5 million and was primarily related to increased service charge income. The increase in service charges was the result of strong core deposit growth and enhanced service Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; charge programs implemented in late 1999. Other expenses increased $3.8 million or 20% for 2000 compared to 1999 and included expenses related to the opening of our Ballwin branch in August 1999, our Chesterfield Chesterfield, city (1991 pop. 73,352) and district, Derbyshire, central England. An important industrial center, Chesterfield produces mining equipment, railroad cars, metal products, glass, and pottery. branch in May 2000, our Jefferson Arms branch in August 2000 and the acquisition of the Equality branches in November 2000. The efficiency ratio for 2000 was 59.6% and improved from the 61.8% reported for 1999. Net income was $2.1 million for the fourth quarter of 2000, an increase of 30% from the fourth quarter of 1999. representing a 30% improvement from the fourth quarter of 1999. Diluted earnings per share increased 8% to $0.28 in the fourth quarter of 2000 compared to $0.26 in the fourth quarter of 1999. The Company has utilized the purchase method of accounting to reflect its business combinations. The purchase method results in the recording of goodwill that is amortized as a noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. to increase operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Goodwill amortization included as an operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. totaled $949,000 for the twelve months ended December 31, 2000 and $980,000 in 1999. Cash net income, which adjusts earnings to exclude goodwill amortization, was $8.0 million for 2000 and $6.4 million for the year ended December 31, 1999. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. cash earnings per share increased 26% to $1.23 for the twelve months ended December 31, 2000 compared to $0.98 in the 1999 period. Tangible book value of Allegiant's common stock increased 39% to $7.53 at December 31, 2000 compared to $5.41 at December 31, 1999. Total assets of $1.1 billion at December 31, 2000 represented a $407 million or 56% increase from December 31, 1999. Total loans increased $199 million or 32%, and total deposits increased $310 million or 56%. The St. Louis market has been greatly affected by the recent consolidation among financial institutions. In addition to the acquisition of Equality, Allegiant succeeded in increasing its market share while maintaining a focus on personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. service. Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased 62% to $78 million at December 31, 2000 compared to $48 million at year-end 1999. The Company reported that as of December 31, 2000, the ratio of non-performing assets to total assets was 0.30% compared to 0.14% at December 31, 1999 and 0.30% at December 31, 1998. Net charge-offs were 0.19% of average loans outstanding for 2000 compared to 0.12% for 1999 and 0.25% in 1998. The allowance for loan losses increased by $3.1 million or 37.5% to $11.4 million at December 31, 2000 compared to a year earlier. The percentage of the allowance for loan losses to total loans increased to 1.40% at December 31, 2000 compared to 1.35% at year-end 1999 and 1.30% at year-end 1998. In January 2001, Allegiant announced the acquisition of Gold Tower Investment Advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , Inc. which has $20 million in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Gold Tower will increase Allegiant's private banking presence. Allegiant also recently announced a 9% increase in its dividend to 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. per quarter and that shares purchased through its DRIP plan will not incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. commissions or service fees. In August 2000, Allegiant Bank also became the official bank of the World Champion St. Louis Rams Allegiant Bancorp, Inc. is the parent company of Allegiant Bank, and is a prominent community banking institution in St. Louis, Missouri. Allegiant Bank offers a full range of banking services, including mortgage banking, private banking, brokerage services, insurance products, trust services and cash management products in addition to traditional retail and commercial loan and deposit products. In September 2000, Allegiant unveiled its new Internet See Web 2.0 and Internet2. banking product that has combined convenience and technology to better serve the needs of our customers. Certain statements in this report relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc present or future trends or factors affecting the banking industry, and specifically, the operations, markets and products of Allegiant Bancorp, Inc., may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Allegiant's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. Additional discussion of factors affecting Allegiant's business and prospects is contained in the Company's periodic filings with the Securities and Exchange Commission. Allegiant undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release.
Allegiant Bancorp, Inc. Consolidated Financial Highlights
Twelve Months
Ended December 31,
(In thousands, except share and per
share data and percentages)
-----------------------------------
2000 1999 % Change
------------- ------------- --------
Operating Results
Net interest income $ 31,452 $ 25,511 23.29%
Provision for loan losses 3,500 2,546 37.47%
Total other income 6,462 4,843 33.43%
Total other expenses 22,582 18,762 20.36%
------------- ------------
Income before income taxes 11,832 9,046 30.80%
Provision for income taxes 4,797 3,644 31.64%
------------- ------------
Net income $ 7,035 $ 5,402 30.23%
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Balance Sheet Data (at period-end)
Total assets $ 1,135,724 $ 728,492 55.90%
Total loans 813,971 615,191 32.31%
Allowance for loan losses 11,433 8,315 37.50%
Total deposits 858,084 548,466 56.45%
Shareholders' equity 77,806 47,991 62.13%
----------------------------------------------------------------------
Average Balances
Total assets $ 842,923 $ 650,551 29.57%
Earning assets 787,668 611,227 28.87%
Loans 712,884 551,189 29.34%
Deposits 644,727 494,455 30.39%
Shareholders' equity 53,238 49,099 8.43%
----------------------------------------------------------------------
Per Share Data
Basic earnings per share $1.09 $0.84 29.76%
Average shares 6,460,250 6,450,639 0.15%
Diluted earnings per share $1.08 $0.83 30.12%
Average shares 6,495,067 6,510,045 -0.23%
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Allegiant Bancorp, Inc. Consolidated Financial Highlights
Three Months
Ended December 31,
(In thousands, except share and per
share data and percentages)
-------------------------------------
2000 1999 % Change
------------- ------------- --------
Operating Results
Net interest income $ 8,978 $ 7,068 27.02%
Provision for loan losses 1,200 954 25.79%
Total other income 2,016 1,191 69.27%
Total other expenses 6,281 4,547 38.14%
------------- ------------
Income before income taxes 3,513 2,758 27.37%
Provision for income taxes 1,403 1,132 23.94%
------------- ------------
Net income $ 2,110 $ 1,626 29.77%
============= =============
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Balance Sheet Data (at period-end)
Total assets $ 1,135,724 $ 728,492 55.90%
Total loans 813,971 615,191 32.31%
Allowance for loan losses 11,433 8,315 37.50%
Total deposits 858,084 548,466 56.45%
Shareholders' equity 77,806 47,991 62.13%
----------------------------------------------------------------------
Average Balances
Total assets $ 968,418 $ 618,216 56.65%
Earning assets 899,039 575,259 56.28%
Loans 788,182 483,253 63.10%
Deposits 752,305 468,303 60.64%
Shareholders' equity 64,963 48,171 34.86%
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Per Share Data
Basic earnings per share $0.28 $0.26 7.69%
Average shares 7,523,539 6,272,808 19.94%
Diluted earnings per share $0.28 $0.26 7.69%
Average shares 7,579,304 6,300,455 20.30%
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