Allegiant Bancorp, Inc. Reports Record Earnings for 1999.Business Editors ST. LOUIS--(BUSINESS WIRE)--Jan. 20, 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 traded bank holding company 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 record earnings of $5.4 million for the year ended December December: see month. 31, 1999. The results for 1999 marked the eighth 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 increased 22.1% to $0.83 in 1999 compared to $0.68 in 1998. Return on average equity for 1999 of 11.0% represented an 8.9% increase from the return on average equity of 10.1% in 1998. Net interest income increased $3.6 million or 16.2% for the twelve months ended December 31, 1999 compared to the prior year. The net interest margin improved 37 basis points to 4.19% in 1999 from 3.82% in 1998. The increase in net interest income and margin was the result of lower cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. and efforts to maintain the 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 , along with continued growth in these assets. Other income in 1999 decreased $4.5 million or 48.1% compared to $9.3 million in 1998. Other income in 1998 included gains on the sale of mortgage loans totaling $1.5 million and a gain on the sale of three branches in Northeast Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. of $2.4 million. Other expenses declined $2.5 million or 11.9%
in 1999 compared to 1998. The efficiency ratio for 1999 was 61.8% which
improved from 68.1% reported for 1998.
Net income was $1.6 million for the fourth quarter of 1999 consistent with the fourth quarter of 1998, which included the gain on the sale of branches. Diluted earnings per share increased by 4.0% to $0.26 in the fourth quarter of 1999 compared to $0.24 in the fourth quarter of 1998. 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 $0.98 million in 1999 and $0.91 million in 1998. Cash net income, as adjusted to exclude the goodwill amortization, was $6.4 million and $5.4 million for the years ended December 31, 1999 and 1998 respectively. 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 was $0.98 in 1999 compared to $0.81 in 1998. Total assets of $728.5 million at December 31, 1999 represented a 22.2% increase from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998. Total loans increased $119.5 million, or 24.1% and total deposits increased $97.7 million, or 21.7%. The average balances for assets, loans and deposits also increased in 1999, but at a lesser rate than the year-end comparisons due to the December 1998 sale of branches. 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. decreased from $48.1 million at December 31, 1998 to $48.0 million at December 31, 1999 as the $4.2 million cost of treasury stock purchased in 1999 offset the net increase in the other equity accounts. The Company also reported that as of December 31, 1999, the ratio of non-performing assets to total assets was 0.14% compared to 0.30% at December 31, 1998. The allowance for loan losses increased by $1.9 million or 29.1% to $8.3 million at December 31, 1999 compared to a year earlier. The percentage of the allowance for loan losses to total loans was 1.35% at December 31, 1999, and compared to 1.30% at December 31, 1998. On September September: see month. 15, 1999, the Company announced that its Board of Directors has 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 plan 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. To date, the Company has purchased approximately 212,945 shares or 3.4% of its common stock under this repurchase program. Allegiant Bancorp, Inc. is the parent company of Allegiant Bank, which operates 15 locations in the St. Louis area. Allegiant Bank offers a full range of banking services, including mortgage banking, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. 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 that relate to the plans, objectives or future performance 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. These forward looking statements involve certain risks and uncertainties including unanticipated changes in interest rates, credit risk, business and economic conditions and unanticipated events associated with the Year 2000, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc work on computer systems and software, including work performed by suppliers and vendors, which risks and uncertainties could affect the Company's future financial condition and results of operations. The statements contained in this report reflect management's current expectations and the current economic environment. 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 Bancorp, Inc. Financial Highlights
Twelve Months
Ended December 31,
(In thousands, except share and per share data and percentages)
1999 1998 % Change
---- ---- --------
Operating Results
Net interest income $ 25,511 $ 21,951 16.22%
Provision for loan losses 2,546 2,420 5.21%
Total other income 4,843 9,324 -48.06%
Total other expenses 18,763 21,295 -11.89%
-------- --------
Income before income taxes 9,045 7,560 19.64%
Provision for income taxes 3,644 3,026 20.42%
-------- --------
Net income $ 5,401 $ 4,534 19.12%
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Balance Sheet Data (at period-end)
Total assets $ 728,481 $ 596,274 22.17%
Total loans 615,191 495,669 24.11%
Allowance for loan losses 8,315 6,442 29.07%
Total deposits 548,466 450,766 21.67%
Shareholders' equity 47,990 48,104 -0.24%
Average Balances
Total assets $ 648,279 $ 619,016 4.73%
Earning assets 608,203 574,228 5.92%
Loans 548,165 493,619 11.05%
Deposits 494,456 475,739 3.93%
Shareholders' equity 49,099 44,721 9.79%
Per Share Data
Basic earnings per share $0.84 $0.72 16.67%
Average shares 6,450,639 6,256,715 3.10%
Diluted earnings per share $0.83 $0.68 22.06%
Average shares 6,510,045 6,647,165 -2.06%
Allegiant Bancorp, Inc. Financial Highlights
Three Months
Ended December 31,
(In thousands, except share and per share data and percentages)
1999 1998 % Change
---- ---- --------
Operating Results
Net interest income $ 7,067 $ 5,669 24.66%
Provision for loan losses 954 1,240 -23.06%
Total other income 1,192 4,089 -70.85%
Total other expenses 4,548 5,770 -21.18%
------- -------
Income before income taxes 2,757 2,748 0.33%
Provision for income taxes 1,132 1,125 0.62%
------- -------
Net income $ 1,625 $ 1,623 0.12%
======= =======
Balance Sheet Data (at period-end)
Total assets $ 728,481 $ 596,274 22.17%
Total loans 615,191 495,669 24.11%
Allowance for loan losses 8,315 6,442 29.07%
Total deposits 548,466 450,766 21.67%
Shareholders' equity 47,990 48,104 -0.24%
Average Balances
Total assets $ 721,741 $ 618,216 16.75%
Earning assets 663,798 575,259 15.39%
Loans 600,946 483,253 24.35%
Deposits 534,408 468,303 14.12%
Shareholders' equity 49,401 48,171 2.55%
Per Share Data
Basic earnings per share $0.26 $0.25 4.00%
Average shares 6,272,808 6,420,890 -2.31%
Diluted earnings per share $0.26 $0.24 8.33%
Average shares 6,300,455 6,644,682 -5.18%
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