Allegiant Bancorp, Inc. Reports Earnings Per Share Increase of 80% for First Quarter 2000.Business Editors ST. LOUIS--(BUSINESS WIRE)--April 13, 2000 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) ), the second largest publicly held bank holding company headquartered in St. Louis, today reported the highest quarterly earnings in the history of the Company. Net income for the three months ended March 31, 2000 increased by $633,000 or 63% to $1.64 million compared to $1.00 million for the first quarter of 1999. The record earnings for the first quarter of 2000 follow a 60% increase in net income for the three months ended March 31, 1999 compared to the same quarter in 1998. Basic earnings per share increased 80% to $0.27 for the first quarter of 2000 compared to $0.15 for the corresponding period in 1999. 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 increased 73% to $0.26 for the first quarter of 2000 compared to $0.15 for the comparable period in 1999. Net interest income increased $1.33 million or 23% for the first quarter of 2000 compared to the first quarter of 1999. The increase was the result of 24% growth 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 for the three months ended March 31, 2000 compared to the first quarter of 1999. The increase in net interest income was partially offset by a 9 basis-point decrease in net interest margin between the periods. Other income totaled $1.25 million for each of the three-month periods ended March 31, 2000 and 1999. Service charge and other fee income increased 62% for the first quarter of 2000 compared to the first quarter of 1999 as a result of the increased deposit base 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. Mortgage banking revenue decreased 85% as a result of a general slow-down in mortgage refinancings and the March 1999 sale of Edge Mortgage, a former subsidiary of the Company. Other expenses increased $73,000 or 1.5% in 2000 compared to 1999. The efficiency ratio for the three months ended March 31, 2000 was 59%, an improvement from the 69% reported for 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. into 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 $237,000 for the three months ended March 31, 2000 and $250,000 for the first quarter of 1999. Cash net income, which adjusts earnings to exclude goodwill amortization, was $1.87 million and $1.25 million for the quarters ended March 31, 2000 and 1999, respectively. Basic cash earnings per share increased 63% to $0.31 in the first quarter of 2000 compared to $0.19 in the first quarter of 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 58% to $0.30 in the recently completed quarter compared to $0.19 in the 1999 period. Total assets of $783.93 million at March 31, 2000 represented a 26% increase from March 31, 1999. Total loans increased $145.52 million or 28%, and total deposits increased $123.34 million or 26%. The St. Louis market has been overwhelmed o·ver·whelm tr.v. o·ver·whelmed, o·ver·whelm·ing, o·ver·whelms 1. To surge over and submerge; engulf: waves overwhelming the rocky shoreline. 2. a. by recent acquisitions and Allegiant has been successful 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. The average balances for assets, loans and deposits also grew at similar rates. 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. was $47.79 million at March 31, 2000 compared to $49.06 million at March 31, 1999. The $5.62 million cost of treasury stock purchased since July 1999 offset the increase in the other equity accounts. The Company also reported that as of March 31, 2000, the ratio of non-performing assets to total assets was 0.18% compared to 0.31% at March 31, 1999. Net charge-offs were less than 0.01% of average loans outstanding for the current quarter compared to 0.05% for the first quarter of 1999. The allowance for loan losses increased by $2.24 million or 33% to $9.01 million at March 31, 2000 compared to a year earlier. The percentage of the allowance for loan losses to total loans increased to 1.35% at March 31, 2000 compared to 1.30% at March 31, 1999. On September 15, 1999, the Company announced that its Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program of up to 5%, or approximately 319,000 shares, of the Company's outstanding common stock. The Company intends to utilize shares repurchased under the program to meet obligations under its stock option plans and other stock-based plans, while minimizing dilution Dilution A 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. of shareholders. By March 31, 2000, the Company had purchased all 319,000 shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. under the repurchase program. Allegiant Bancorp, Inc. is the parent company of Allegiant Bank, and is a prominent community banking institution in St. Louis, Missouri. Allegiant Bank will be opening its 16th location in May 2000 at Clarkson and Kehrs Mill in 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. . Allegiant Bank offers a full range of banking services, including mortgage banking, brokerage services, insurance products, trust services and cash management products in addition to traditional retail and commercial loan and deposit products. 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 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. Financial Highlights
Three Months
Ended March 31,
---------------
(In thousands, except share and
per share data and percentages)
---------------------------------
2000 1999 % Change
---------- ---------- --------
Operating Results
Net interest income $ 7,168 $ 5,837 22.8%
Provision for loan losses 715 562 27.2%
Other income 1,249 1,254 -0.4%
Other expenses 4,931 4,858 1.5%
---------- ---------
Income before income taxes 2,771 1,671 65.8%
Provision for income taxes 1,136 669 69.8%
---------- ---------
Net income $ 1,635 $ 1,002 63.2%
========== ==========
Cash net income (1) $ 1,873 $ 1,252 49.6%
========== ==========
Per Share Data
Net income
Basic earnings per share $0.27 $0.15 80.0%
Diluted earnings per share 0.26 0.15 73.3%
Cash net income (1)
Basic cash earnings per share 0.31 0.19 63.2%
Diluted cash earnings per share 0.30 0.19 57.9%
Credit Quality Ratios (at period-end)
Allowance for loan losses
to total loans 1.35 1.30 3.9%
Nonperforming assets to
total assets 0.18 0.31 -41.9%
Net charge-offs to average loans 0.01 0.05 -80.0%
Balance Sheet Data
(at period-end)
Total assets $ 783,933 $ 620,857 26.3%
Total loans 665,822 520,305 28.0%
Allowance for loan losses 9,007 6,767 33.1%
Total deposits 604,379 481,038 25.6%
Shareholders' equity 47,787 49,059 -2.6%
Average Balances
Total assets $ 749,051 $ 611,055 22.6%
Earning assets 705,832 567,270 24.4%
Loans 642,406 507,830 26.5%
Deposits 569,120 466,535 22.0%
Shareholders' equity 48,278 48,313 -0.1%
Average shares outstanding
Basic 6,139,750 6,551,835 -6.3%
Diluted 6,181,940 6,680,485 -7.5%
(1) Cash net income is net income adjusted to exclude goodwill
amortization.
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