Anchor Financial Corporation Reports 24% Increase in First Quarter Earnings.MYRTLE BEACH, S.C.--(BUSINESS WIRE)--April 14, 1999-- Anchor anchor, device cast overboard to secure a ship, boat, or other floating object by means of weight, friction, or hooks called flukes. In ancient times an anchor was often merely a large stone, a bag or basket of stones, a bag of sand, or, as with the Egyptians, a Financial Corporation today announced first quarter 1999 earnings totaled $3,248,062, or $0.48 per 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. share, before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $75,189 associated with the acquisition of Bailey Bailey may refer to:
In the United Kingdom:
1 Town (1990 pop. 12,767), Middlesex co., S Conn., on Long Island Sound; settled 1663, set off from Killingworth and inc. 1838. The school that later became Yale opened here in 1702. , SC. Excluding merger-related expenses, net income increased 24% compared to net income earned on a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. basis at March 31, 1998. Earnings per diluted share for the first quarter of 1999 grew 23% from the $0.39 per share earned on a recurring basis for the same period in 1998. Including the effect of the nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". , Anchor recorded net income totaling $3,174,190, or $0.47 per diluted share, for the quarter ended March 31, 1999, compared to $2,612,312, or $0.39 per diluted share earned in the same period of 1998. The increase in net income was primarily attributed to a 9.2% increase in net interest income, a 14.2% increase in noninterest income, and control of noninterest expense growth. One-time costs associated with the merger were $75,189 pretax, and were in line with preliminary expectations. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). for the first quarter was 1.32% and return on equity for the period was 17.99%, excluding nonrecurring charges. Total assets at March 31, 1999 were $1.019 billion, an increase of 1.1% from $1.008 billion reported at March 31, 1998. Total deposits decreased 3.5%, from $858.9 million reported at March 31, 1998 to $828.9 million reported at March 31, 1999. Core demand and savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. increased 13.4% and 14.5% respectively. Total loans increased 2.4%, from the $700.0 million reported at March 31, 1998, to $717.0 million reported at March 31, 1999. The ratio of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. to total loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most was 0.30% at March 31, 1999. The Corporation's loan loss reserve equaled 1.22% of total loans compared to 1.09% one year ago. Net recoveries of loans previously charged-off were also realized during the first quarter of 1999. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and L. Chryst, chairman, president and chief executive officer, said, "Our first quarter performance was excellent. Our strong performance allowed us to reengineer the balance sheet and find cost savings at a steady pace, resulting in a significant improvement of net income." Anchor Financial Corporation's merger with Bailey Financial Corporation was completed April 9, 1999, and is not included in the financial information presented on March 31, 1999. The remaining and significant portion of the merger-related expenses will be incurred during the second quarter of 1999. Anchor Financial Corporation, with assets of $1.2 billion, is the parent of The Anchor Bank, M.S. Bailey & Son, Bankers, and the Saluda Saluda, river, c.200 mi (320 km) long, rising in the Blue Ridge, W S.C., and flowing southeast across the Piedmont to the Broad River (with which it forms the Congaree) near Columbia. County Bank. The Corporation's web site address is http://www.anchorfinancialcorp.com. Anchor Financial Corporation's common stock trades on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (R) under the symbol AFSC AFSC American Friends Service Committee AFSC Alaska Fisheries Science Center AFSC Air Force Systems Command AFSC Air Force Specialty Code AFSC Air Force Space Command AFSC Armed Forces Services Corporation AFSC Army Field Support Command . -0-
Anchor Financial Corporation
Financial Summary - net of nonrecurring charges (1)
Three Months Ended
March 31, Percent
Income Statement Data 1999 1998 Change
Interest income $19,100,821 $19,249,181 (0.8)
Interest expense 7,890,686 8,985,187 (12.2)
Net interest income 11,210,135 10,263,994 9.2
Provision for loan losses 350,000 534,000 (34.5)
Net interest income after
provision for loan losses 10,860,135 9,729,994 11.6
Net gains (losses) on sales
of securities 56,300 0 100.0
Noninterest income 2,168,195 1,947,488 11.3
Noninterest expense 8,033,474 7,688,782 4.5
Income before income taxes 5,051,156 3,988,700 26.6
Applicable income tax expense 1,803,094 1,376,388 31.0
Net income $3,248,062 $2,612,312 24.3
Net income per share - basic $0.50 $0.41 22.4
Net income per share - diluted $0.48 $0.39 22.9
Cash dividends paid per share $0.14 $0.12 16.7
Weighted average shares
outstanding - basic 6,486,624 6,385,742 1.6
Weighted average shares
outstanding - diluted 6,766,446 6,687,611 1.2
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Performance Ratios
(Annualized)
Return on average assets 1.32 % 1.09 % 21.7
Return on average stockholders'
equity 17.99 16.14 11.5
Net yield on average
interest-earning
assets (tax equivalent) 4.89 4.64 5.4
----------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $997,144 $974,880 2.3
Interest-earning assets 932,059 900,278 3.5
Loans-net of unearned income 709,472 682,749 3.9
Investment securities 222,364 193,442 15.0
Deposits 818,773 799,852 2.4
Noninterest-bearing deposits 153,577 135,460 13.4
Interest-bearing deposits 665,196 664,392 0.1
Interest-bearing liabilities 761,154 749,658 1.5
Stockholders' equity 74,744 66,340 12.7
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(1) Nonrecurring charges are related to the costs associated with
the acquistion of Bailey Financial Corporation.
Anchor Financial Corporation
Financial Summary
Three Months Ended
March 31, Percent
Income Statement Data 1999 1998 Change
Interest income $19,100,821 $19,249,181 (0.8)
Interest expense 7,890,686 8,985,187 (12.2)
Net interest income 11,210,135 10,263,994 9.2
Provision for loan
losses 350,000 534,000 (34.5)
Net interest income after
provision for loan
losses 10,860,135 9,729,994 11.6
Net gains (losses) on
sales of securities 56,300 0 100.0
Noninterest income 2,168,195 1,947,488 11.3
Noninterest expense 8,108,663 7,688,782 5.5
Income before income
taxes 4,975,967 3,988,700 24.8
Applicable income
tax expense 1,801,777 1,376,388 30.9
Net income $3,174,190 $2,612,312 21.5
Net income per share
- basic $0.49 $0.41 19.6
Net income per share
- diluted $0.47 $0.39 20.1
Cash dividends paid
per share $0.14 $0.12 16.7
Weighted average shares
outstanding - basic 6,486,624 6,385,742 1.6
Weighted average shares
outstanding - diluted 6,766,446 6,687,611 1.2
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Performance Ratios
(Annualized)
Return on average assets 1.29 % 1.09 % 18.9
Return on average
stockholders' equity 17.58 16.14 8.9
Net yield on average
interest-earning
assets (tax equivalent) 4.89 4.64 5.4
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Selected Average Balances
(In thousands)
Total assets $997,144 $974,880 2.3
Interest-earning assets 932,059 900,278 3.5
Loans-net of unearned
income 709,472 682,749 3.9
Investment securities 222,364 193,442 15.0
Deposits 818,773 799,852 2.4
Noninterest-bearing
deposits 153,577 135,460 13.4
Interest-bearing deposits 665,196 664,392 0.1
Interest-bearing
liabilities 761,154 749,658 1.5
Stockholders' equity 74,744 66,340 12.7
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Selected Financial Data
at Period-End
(In thousands) March 31, Percent
1999 1998 Change
Total assets $1,019,002 $1,007,711 1.1 %
Interest-earning assets 953,770 934,658 2.0
Loans-net of unearned income 717,030 699,982 2.4
Allowance for loan losses 8,732 7,658 14.0
Investment securities 218,826 188,937 15.8
Deposits 828,861 858,949 (3.5)
Stockholders' equity 72,590 68,745 5.6
Average stockholders' equity to
average assets 7.36 % 6.74 % 9.2 %
Tier 1 capital to average assets
(Leverage ratio) 7.29 7.06 3.3
Risk-based capital ratios:
Tier 1 capital 9.49 9.31 1.9
Total capital 11.94 11.87 0.6
Book value per common share $11.26 $10.58 6.4
Tangible book value per
common share $11.15 $10.44 6.8
Total common shares
outstanding 6,553,561 6,462,760 1.4
Credit Quality Data
Nonperforming assets $2,144,716 $1,186,519 80.8 %
Nonperforming loans 1,986,180 999,419 98.7
Net loan (recoveries) losses (85,697) 197,152 (143.5)
Nonperforming assets to total
loans and foreclosed property 0.30 % 0.17 % 76.5
Annualized net loan (recoveries) losses
to average total loans (YTD) (0.05) 0.12 (141.8)
Allowance for loan losses to
total loans 1.22 1.09 11.3
Allowance for loan losses to:
Nonperforming assets 407.14 645.42 (36.9)
Nonperforming loans 439.64 766.25 (42.6)
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