Allegiant Bancorp, Inc. Net Income Increased 12% in First Quarter 2003.Business Editors ST. LOUIS--(BUSINESS WIRE)--April 16, 2003 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) ) (www.allegiantbank.com), the largest bank holding company exclusively serving the 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. , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. metropolitan area, today reported net income of $5.6 million for the
first quarter of 2003, an increase of 12% from the $4.9 million reported
for the first quarter of 2002. Diluted earnings per share diluted earnings per shareAn 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 for the first quarter of 2003 increased 6.3% to $0.34 from $0.32 in 2002. Net interest income increased 8% for the quarter ended March 31, 2003 compared to the first quarter of 2002. This growth was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $247 million, or 13% increase in average 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 , which primarily resulted from a $229 million, or 15% increase in average loans, as loan growth in our market remained strong. Our net interest margin in the first quarter of 2003 was 3.00% compared to 3.13% and 3.05% during the first and fourth quarters of 2002, respectively. The margin was negatively impacted as we reinvested the proceeds of certain securities transactions into temporary short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. We expect our net interest margin to improve over the balance of the year, in view of our expectation that we should be able to re-invest these short-term investments into higher yielding loans and securities and that a portion of our deposits and borrowings will reprice at lower market rates. Non-interest income for the three months ended March 31, 2003 totaled $7.0 million representing an increase of 73%, or $3.0 million from the first three months of 2002. The growth in non-interest income was attributable to significant increases in mortgage banking revenues and fees from our wealth management division. Excluding securities gains of $1.7 million in the first quarter of 2003, non-interest income increased 31% compared to the first quarter of 2002. Non-interest expense for the quarter ended March 31, 2003 totaled $13.5 million compared to $13.1 million in the fourth quarter of 2002 and $10.7 million in the first quarter of 2002. Salaries and benefits expense increased $1.5 million in the first quarter of 2003 compared to the first quarter of 2002, while occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment expense increased $294,000 and other 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. increased $976,000. The increased expense reflected primarily the ongoing expenses related to Allegiant Investment Counselors acquired in the fourth quarter of 2002, a nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charge recognized in the first quarter, increased professional fees associated with the roll-out of our Project 2004 profit improvement and cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. initiative and higher insurance costs, coupled with increased expense associated with the Company's investment in a community reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. fund. Our efficiency ratio for the first quarter of 2003 was 57.7% compared to 55.8% for the first quarter of 2002. We anticipate improvement in our efficiency ratio over the balance of the year as benefits from our Project 2004 initiative are realized. At March 31, 2003, assets totaled $2.3 billion, an 8% increase from March 31, 2002. Total loans increased to $1.7 billion and total deposits increased to $1.7 billion at March 31, 2003, reflecting a 15% and 5% increase from March 31, 2002, respectively. Consistent with our focus on establishing and maintaining a strong presence in the most attractive areas in the St. Louis market, in March 2003, we sold Bank of Ste. Genevieve Ste. Genevieve can refer to:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. $114.6 million at the time of the sale. First Banks acquired Bank of Ste. Genevieve in exchange for approximately 974,150 shares of our common stock held by First Banks. The net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of Bank of Ste. Genevieve as of the closing were approximately $17.9 million which approximated the value of consideration we received. As a result, we did not recognize any gain or loss as a result of the transaction. First Banks held approximately 7.4% of our outstanding common stock prior to the sale and held approximately 1.5% of our common stock upon completion of the sale. At March 31, 2003, 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. totaled $154.1 million, an increase of 7% from March 31, 2002. On April 14, 2003 we completed a secondary public offering and issued 2.1 million shares of common stock at a public offering price of $16.50 per share. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering totaled $31.9 million. Our market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. subsequent to the common stock offering totaled approximately $292.6 million. Allegiant will contribute substantially all of the net proceeds to its wholly-owned subsidiary bank, Allegiant Bank, to strengthen the bank's capital position, to support the bank's anticipated loan growth and for other general corporate purposes. The bank will use a portion of the capital contributed to temporarily reduce short-term indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , which may be reborrowed, if necessary, to fund loan growth. We will use the remaining proceeds that are not contributed to the bank for general corporate and working capital purposes. As of March 31, 2003, our ratio of non-performing assets to total assets decreased to 0.58% compared to 0.68% at December December: see month. 31, 2002 and 0.80% at March 31, 2002. At March 31, 2003, our non-performing assets totaled $13.5 million compared to $16.3 million at December 31, 2002 and $17.3 million at March 31, 2002. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net charge-offs as a percentage of average loans were 0.41% compared to 0.78% for the quarter ended March 31, 2002 and 0.51% for the year ended December 31, 2002. The allowance for loan losses totaled $18.7 million at March 31, 2003 from $17.5 million at March 31, 2002. The percentage of the allowance for loan losses to total loans was 1.13% at March 31, 2003 compared to 1.15% at December 31, 2002 and 1.21% at March 31, 2002. Allegiant Bancorp, Inc. is the largest publicly-held bank holding company headquartered in the St. Louis, Missouri metropolitan area and the parent company of Allegiant Bank. Allegiant has 37 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking locations, with at least one branch located within a 20 minute drive from all principal sectors of the St. Louis, Missouri metropolitan area. Allegiant focuses on providing banking services to small and mid-sized businesses and individuals by offering a full range of banking services, including mortgage banking, private banking, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services, insurance products and wealth management and other fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. services in addition to traditional retail and commercial loan and
deposit products.
Certain statements in this release 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 Allegiant's periodic and other filings with the Securities and Exchange Commission. Allegiant undertakes no obligation to report revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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.
Unaudited Financial Highlights
1Q-03 1Q-02 % change
----------- ----------- ---------
($ in 000's except per share data)
Operating Results
Interest income $29,841 $30,234 -1.3%
Interest expense 13,500 15,132 -10.8%
----------- -----------
Net interest income 16,341 15,102 8.2%
Provision for loan losses 1,660 1,500 10.7%
Service charges 1,685 1,627 3.6%
Mortgage banking revenue 1,615 829 94.8%
Wealth management fees 952 615 54.8%
Bank-owned life insurance 642 612 4.9%
Net gain on sale of securities 1,723 10 NM
Other income 404 369 9.5%
Salaries and benefits 7,127 5,604 27.2%
Occupancy 1,135 871 30.3%
Equipment 787 757 4.0%
Amortization of intangibles 279 271 3.0%
Other expenses 4,158 3,190 30.3%
----------- -----------
Income before income taxes 8,216 6,971 17.9%
Provision for income taxes 2,663 2,023 31.6%
----------- -----------
Net income $5,553 $4,948 12.2%
=========== ===========
Basic earnings per share $0.34 $0.32 6.3%
Diluted earnings per share $0.34 $0.32 6.3%
Average diluted shares outstanding 16,509,453 15,675,429 5.3%
Profitability measures
Return on average assets(a) 0.92% 0.92%
Return on average equity(a) 13.10% 13.95%
Net interest margin(a) 3.00% 3.13%
Efficiency ratio 57.73% 55.80%
(a) Annualized
Balance Sheet Averages
Loans $1,709,113 $1,480,520 15.4%
Investment securities 478,664 463,076 3.4%
Other earning assets 17,757 14,528 22.2%
Cash and due from banks 45,892 41,763 9.9%
Allowance for loan losses (19,360) (18,709) 3.5%
Intangible assets 57,947 56,346 2.8%
Other assets 118,896 117,775 1.0%
----------- -----------
Total assets $2,408,909 $2,155,299 11.8%
=========== ===========
Demand deposits $190,771 $171,624 11.2%
Interest bearing deposits 1,587,282 1,485,081 6.9%
Borrowings 391,117 282,015 38.7%
Other liabilities 12,955 17,479 -25.9%
Subordinated debentures 57,250 57,250 0.0%
Shareholders' equity 169,534 141,850 19.5%
----------- -----------
Total liabilities and equity $2,408,909 $2,155,299 11.8%
=========== ===========
Allegiant Bancorp, Inc.
Unaudited Financial Highlights
March 31,
-----------------------
2003 2002 % change
----------- ----------- ---------
($ in 000's except per share data)
Changes in Allowance for Loan Losses
Allowance - Beginning of period $19,567 $18,905 3.5%
Charge-offs (2,033) (2,992) -32.1%
Recoveries 292 117 149.6%
Divested subsidiary balance (756) - NM
Provision 1,660 1,500 10.7%
----------- -----------
Allowance - End of period $18,730 $17,530 6.8%
=========== ===========
Nonperforming Assets
Past due 90 days or more $1,994 $1,726 15.5%
Non-accrual 11,453 15,275 -25.0%
Restructured - - -
Total nonperforming loans 13,447 17,001 -20.9%
Other real estate - 280 -100.0%
----------- -----------
Total nonperforming assets $13,447 $17,281 -22.2%
=========== ===========
March 31,
-----------------------
2003 2002 % change
----------- ----------- ---------
($ in 000's except per share data)
Period End Balances
Commercial loans $267,910 $257,312 4.1%
Construction loans 272,715 168,974 61.4%
1 - 4 family mortgage loans 320,741 309,083 3.8%
Commercial real estate loans 739,525 649,241 13.9%
Consumer loans 64,282 66,377 -3.2%
Less unearned income (1,000) (1,666) -40.0%
----------- -----------
Total loans $1,664,173 $1,449,321 14.8%
Investment securities 401,702 451,988 -11.1%
Other earning assets 64,144 59,453 7.9%
Cash and due from banks 48,016 38,174 25.8%
Allowance for loan losses (18,730) (17,530) 6.8%
Intangible assets 54,168 56,452 -4.0%
Other assets 114,005 119,845 -4.9%
----------- -----------
Total assets $2,327,478 $2,157,703 7.9%
=========== ===========
Demand deposits $197,306 $176,935 11.5%
Money market and NOW accounts 410,505 420,006 -2.3%
Savings deposits 218,059 220,424 -1.1%
Certificates of deposit 551,398 566,421 -2.7%
Certificates of deposit greater
than $100K 208,797 165,511 26.2%
IRA certificates 74,738 86,015 -13.1%
Brokered deposits 60,960 - NM
----------- -----------
Total deposits $1,721,763 $1,635,312 5.3%
Federal Home Loan advances 302,895 235,850 28.4%
Notes payable to banks 34,250 37,250 -8.1%
Other short-term borrowings 44,308 34,930 26.8%
Other liabilities 12,904 12,975 -0.5%
Subordinated debentures 57,250 57,250 0.0%
Shareholders' equity 154,108 144,136 6.9%
----------- -----------
Total liabilities and equity $2,327,478 $2,157,703 7.9%
=========== ===========
Shares outstanding 15,246,392 15,209,566 0.2%
Market capitalization $257,664 $261,605 -1.5%
Book value per share $10.11 $9.48 6.7%
Closing market price per share $16.90 $17.20 -1.7%
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