Allegiant Bancorp, Inc. Net Income Increased 13% in Second Quarter 2003.Business Editors ST. LOUIS--(BUSINESS WIRE)--July 17, 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 for the second quarter of
2003 totaling $6.1 million, an increase of 13% from $5.4 million
reported for the second 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 second quarter of 2003 increased 3% to $0.35 from $0.34 in 2002. Diluted earnings per share reflected the impact of 2.1 million shares of common stock issued in our secondary public stock offering in April 2003, partially offset by 974,150 shares of treasury stock acquired in connection with the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of our former Ste. Genevieve Ste. Genevieve can refer to:
Net interest income increased 4% for the quarter ended June June: see month. 30, 2003 compared to the second quarter of 2002. This growth was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $183 million, or 9%, 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 $222 million, or 15%, increase in average loans, as loan growth in our market remained strong. Our net interest margin in the second quarter of 2003 was 3.12% compared to 3.00% during the first quarter of 2003, and decreased 16 basis points from the second quarter of 2002. For the first six months of 2003, the net interest margin was 3.07% compared to 3.21% for the corresponding period of 2002. Compared to the year-ago periods, the margin was negatively affected in the first quarter of 2003 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 be slightly lower in the next quarter given the recent Federal Reserve interest rate cut. We do expect a stable to improving margin toward the end of 2003, as the impact of our response to this rate cut begins to take effect and we continue to reposition our investment securities portfolio as a means to fund anticipated loan growth. Non-interest income for the three months ended June 30, 2003 totaled $6.7 million representing an increase of 12% from $6.0 million in the second quarter of 2002. The growth in non-interest income was attributable to a 58% increase in mortgage banking revenues as loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. were at record levels, coupled with an increase in fee income from our wealth management business of 113% reflecting the acquisition of Allegiant Investment Counselors in the fourth quarter of 2002, partially offset by a decrease in securities gains of 19%. For the first six months, non-interest income increased 36% to $13.7 million from the first six months of 2002, reflecting increases in mortgage banking revenues, wealth management fees and securities gains of 75%, 80% and 82%, respectively. Non-interest expense for the quarter ended June 30, 2003 totaled $13.0 million compared to $13.5 million in the first quarter of 2003 and $11.9 million in the second quarter of 2002. Salaries and benefits expense increased $254,000 or 4%, in the second quarter of 2003 compared to the second 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 $72,000, or 4%, 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 $783,000, or 20%. For the first six months of 2003, non-interest expense totaled $26.5 million compared to $22.6 million for the first six months of 2002. The increased expense primarily reflected the ongoing expenses related to Allegiant Investment Counselors acquired in the fourth quarter of 2002, 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, higher insurance expense and increased foreclosed property costs. In addition, non-interest expense reflected 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, higher commissions expense related to mortgage banking activities and a 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 of 2003. Our efficiency ratio for the second quarter of 2003 was 55.1% compared to 57.7% in the first quarter of 2003 and 53.4% for the second quarter of 2002. We anticipate continued improvement in our efficiency ratio over the balance of the year as benefits from our Project 2004 initiative are realized. At June 30, 2003, our assets totaled $2.4 billion, an 8% increase from June 30, 2002. Total loans and deposits both increased to $1.7 billion at June 30, 2003, reflecting a 14% and 9% increase from June 30, 2002, respectively. While total assets, loans and deposits reflected noteworthy increases from June 30, 2002, these growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. were constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by the March 31, 2003 divestiture of our former Ste. Genevieve bank, which at the time of disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of had assets, loans and deposits of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $114.6 million, $43.5 million and $93.9 million, respectively. On July July: see month. 11, 2003, we supplemented our deposit base as we completed the acquisition of a branch office of Heartland Bank, a federal savings association (Heartland), which had deposits approximating approximating, adj See approximal. $20 million. Under terms of the purchase and assumption agreement, we acquired the Heartland branch facility and assumed the deposit liabilities, net of a deposit premium of 5.05%. At June 30, 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 $194.0 million; an increase of 26% from June 30, 2002 reflecting the 2.1 million newly issued shares partially offset by 974,150 shares of treasury stock acquired in connection with the divestiture of our former Ste. Genevieve bank. 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. At June 30, 2003 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. totaled $351.4 million, an increase of 22% from June 30, 2002. As of June 30, 2003, our ratio of non-performing assets to total assets was 0.90% compared to 0.70% at June 30, 2002 and 0.68% at December December: see month. 31, 2002. At June 30, 2003, our non-performing assets totaled $21.7 million compared to $16.3 million at December 31, 2002 and $15.6 million at June 30, 2002. The increase from December 31, 2002 was primarily related to one loan totaling approximately $3.7 million and classified as past due 90 days pending resolution of bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . We believe this loan is well secured and we do not anticipate any loss. It is in the process of collection and the borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the continues to make interest payments on a timely basis. 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 0.25% in the first six months of 2003 compared to 0.55% for the first six months of 2002 and 0.51% for the year ended December 31, 2002. For the first six months of 2003, the provision for loan losses exceeded net charge-offs by approximately $1.2 million. The allowance for loan losses increased to $20.0 million at June 30, 2003 from $18.3 million at June 30, 2002. The percentage of the allowance for loan losses to total loans was 1.16% at June 30, 2003 compared to 1.15% at December 31, 2002 and 1.21% at June 30, 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
2Q-03 2Q-02 % change
----------- ----------- ----------
(Dollars in thousands except per share data)
Operating Results
Interest income $29,499 $30,875 -4.5%
Interest expense 12,575 14,571 -13.7%
----------- -----------
Net interest income 16,924 16,304 3.8%
Provision for loan losses 1,675 2,000 -16.3%
Service charges 1,728 1,769 -2.3%
Mortgage banking revenue 1,534 969 58.3%
Wealth management fees 1,039 487 113.3%
Bank-owned life insurance 446 416 7.2%
Net gain on sale of securities 1,359 1,683 -19.3%
Other non-interest income 550 639 -13.9%
Salaries and benefits 6,420 6,166 4.1%
Occupancy 1,047 967 8.3%
Equipment 821 829 -1.0%
Amortization 228 443 -48.5%
Foreclosed property costs 720 442 62.9%
Other non-interest expense 3,759 3,038 23.7%
----------- -----------
Income before income taxes 8,910 8,382 6.3%
Provision for income taxes 2,831 2,984 -5.1%
----------- -----------
Net income $6,079 $5,398 12.6%
=========== ===========
Profitability measures
Basic earnings per share $0.36 $0.34 5.9%
Diluted earnings per share $0.35 $0.34 2.9%
Return on average assets 1.02% 0.99%
Return on average equity 12.72% 14.50%
Net interest margin 3.12% 3.28%
Efficiency ratio 55.11% 53.37%
Balance Sheet Averages
Loans $1,734,676 $1,512,765 14.7%
Investment securities 407,702 473,042 -13.8%
Other earning assets 34,269 8,149 320.5%
Cash and due from banks 47,920 35,372 35.5%
Allowance for loan losses (19,484) (17,430) 11.8%
Intangible assets 54,015 55,873 -3.3%
Other assets 115,712 120,669 -4.1%
----------- -----------
Total assets $2,374,810 $2,188,440 8.5%
=========== ===========
Demand deposits $210,241 $168,914 24.5%
Interest bearing deposits 1,512,216 1,438,697 5.1%
Borrowings 389,364 360,553 8.0%
Other liabilities 14,538 14,136 2.8%
Subordinated debentures 57,250 57,250 0.0%
Shareholders' equity 191,201 148,890 28.4%
----------- -----------
Total liabilities and equity $2,374,810 $2,188,440 8.5%
=========== ===========
Diluted shares outstanding
(average) 17,378,810 16,088,947 8.0%
YTD 03 YTD 02 % change
----------- ----------- ---------
(Dollars in thousands except per share data)
Operating Results
Interest income $59,340 $61,108 -2.9%
Interest expense 26,076 29,702 -12.2%
----------- -----------
Net interest income 33,264 31,406 5.9%
Provision for loan losses 3,335 3,500 -4.7%
Service charges 3,433 3,396 1.1%
Mortgage banking revenue 3,149 1,798 75.1%
Wealth management fees 1,991 1,105 80.2%
Bank-owned life insurance 1,088 1,028 5.8%
Net gain on sale of securities 3,082 1,692 82.2%
Other non-interest income 933 1,005 -7.2%
Salaries and benefits 13,547 11,770 15.1%
Occupancy 2,182 1,838 18.7%
Equipment 1,608 1,586 1.4%
Amortization 507 541 -6.3%
Foreclosed property costs 1,021 766 33.3%
Other non-interest expense 7,614 6,076 25.3%
----------- -----------
Income before income taxes 17,126 15,353 11.5%
Provision for income taxes 5,494 5,007 9.7%
----------- -----------
Net income $11,632 $10,346 12.4%
=========== ===========
Profitability measures
Basic earnings per share $0.70 $0.67 4.5%
Diluted earnings per share $0.69 $0.65 6.2%
Return on average assets 0.98% 0.95%
Return on average equity 12.89% 14.23%
Net interest margin 3.07% 3.21%
Efficiency ratio 56.41% 54.49%
Balance Sheet Averages
Loans $1,717,876 $1,496,567 14.8%
Investment securities 444,926 468,118 -5.0%
Other earning assets 19,854 11,336 75.1%
Cash and due from banks 46,247 38,763 19.3%
Allowance for loan losses (19,196) (18,052) 6.3%
Intangible assets 56,004 56,364 -0.6%
Other assets 119,845 118,924 0.8%
----------- -----------
Total assets $2,385,556 $2,172,020 9.8%
=========== ===========
Demand deposits $191,877 $169,420 13.3%
Interest bearing deposits 1,551,398 1,462,770 6.1%
Borrowings 390,930 321,504 21.6%
Other liabilities 13,688 15,622 -12.4%
Subordinated debentures 57,250 57,250 0.0%
Shareholders' equity 180,413 145,454 24.0%
----------- -----------
Total liabilities and equity $2,385,556 $2,172,020 9.8%
=========== ===========
Diluted shares outstanding
(average) 16,944,132 15,882,188 6.7%
Allegiant Bancorp, Inc.
Unaudited Financial Highlights
6/30/2003 6/30/2002 % change 12/31/2002
----------- ----------- --------- -----------
(Dollars in thousands except per share data)
Changes in Allowance for Loan Losses
Allowance - Beginning of
period $19,567 $18,905 3.5% $18,905
Charge-offs (2,655) (5,106) -48.0% (9,109)
Recoveries 525 1,015 -48.3% 1,172
Divested subsidiary
balance (756) - -
Provision 3,335 3,500 -4.7% 8,599
----------- ----------- -----------
Allowance - End of
period $20,016 $18,314 9.3% $19,567
=========== =========== ===========
Allowance for loan
losses to total loans 1.16% 1.21% 1.15%
Net charge-offs to
average loans
(annualized) 0.25% 0.55% 0.51%
Nonperforming Assets
Past due 90 days or more $7,246 $1,797 303.2% $2,337
Non-accrual 12,439 13,504 -7.9% 12,938
Restructured - 52 0.0% 364
----------- ----------- -----------
Total nonperforming
loans 19,685 15,353 28.2% 15,639
Other real estate 1,985 224 786.2% 611
----------- ----------- -----------
Total nonperforming
assets $21,670 $15,577 39.1% $16,250
=========== =========== ===========
Nonperforming loans to
total loans 1.14% 1.02% 0.92%
Nonperforming assets to
total assets 0.90% 0.70% 0.68%
Period End Balances
Commercial loans $269,377 $272,486 -1.1% 314,703
Construction loans 269,075 192,277 39.9% 277,018
1 - 4 Family mortgage
loans 323,556 314,145 3.0% 352,136
Commercial real estate
loans 796,433 664,198 19.9% 695,821
Consumer loans 66,791 68,158 -2.0% 63,231
----------- ----------- -----------
Total loans $1,725,232 $1,511,264 14.2% $1,702,909
Investment securities 396,270 454,448 -12.8% 455,082
Other earning assets 70,296 55,513 26.6% 45,907
Cash and due from banks 56,158 41,963 33.8% 41,890
Allowance for loan losses (20,016) (18,314) 9.3% (19,567)
Intangible assets 53,940 56,182 -4.0% 58,016
Other assets 115,711 119,343 -3.0% 120,079
----------- ----------- -----------
Total assets $2,397,591 $2,220,399 8.0% $2,404,316
=========== =========== ===========
Demand deposits $222,114 $175,233 26.8% 215,529
NOW accounts 131,047 127,219 3.0% 132,883
Money market accounts 273,802 287,250 -4.7% 275,378
Savings deposits 206,379 208,070 -0.8% 228,397
Certificates of deposit 565,780 555,621 1.8% 570,915
Certificates of deposit
greater than $100K 210,278 164,976 27.5% 202,086
IRA certificates 76,123 84,501 -9.9% 82,600
Brokered deposits 60,346 - 60,244
----------- ----------- -----------
Total deposits $1,745,869 $1,602,870 8.9% $1,768,032
Borrowings 105,308 83,586 26.0% 94,882
Federal Home Loan
advances 282,531 305,784 -7.6% 304,853
Other liabilities 12,619 16,592 -23.9% 12,057
Subordinated debentures 57,250 57,250 0.0% 57,250
Shareholders' equity 194,014 154,317 25.7% 167,242
----------- ----------- -----------
Total liabilities
and equity $2,397,591 $2,220,399 8.0% $2,404,316
=========== =========== ===========
Shares outstanding 17,398,178 15,847,511 9.8% 16,146,804
Market capitalization $351,443 $287,949 22.1% $294,195
Tangible book value
per share $8.05 $6.19 30.0% $6.76
Book value per share $11.15 $9.74 14.5% $10.36
Closing market price
per share $20.20 $18.17 11.2% $18.22
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