Anchor Financial Corporation Reports Fourth Quarter Earnings.MYRTLE BEACH, SC--(BUSINESS WIRE)--Jan. 19, 1999--Anchor Financial Corporation (Nasdaq: 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 ) today announced earnings for the fourth quarter of 1998 increased 31.2% from the same period in 1997 to $2,917,207, 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 $161,812 during the quarter associated with completing the acquisitions of ComSouth Bankshares, Inc. and M&M Financial Corporation and a pending merger with Bailey Bailey may refer to:
In the United Kingdom:
Excluding these 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". , earnings 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 for the quarter ended December December: see month. 31, 1998 were $0.43, an increase of 31.3% from the fourth quarter of 1997. For the twelve months ended December 31, 1998, 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 earned $11,424,848 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 compared with $9,236,950 in 1997, an increase of 23.7%. Recurring earnings per diluted share for the twelve months ended December 31, 1998 were $1.70 compared to $1.38 in 1997, an increase of 23.1%. For the twelve months ended December 31, 1998, return on average assets and return on average equity, excluding nonrecurring charges, were 1.14% and 16.19%, respectively. Including the effect of the nonrecurring charges, Anchor recorded net income totaling $2,794,006, or $0.41 per diluted share, for the quarter ended December 31, 1998, compared to $2,224,078, or $0.33 per diluted share earned in the same period of 1997. For the twelve months ended December 31, 1998, net income totaled $8,122,006, or $1.21 per diluted share compared to $9,236,950, or $1.38 per diluted share earned in the same period of 1997. One-time costs associated with the mergers were $4.34 million, pretax, and were in line with preliminary expectations. Total assets at December 31, 1998 were $1.0 billion, an increase of 7.3% compared to $945.6 million reported on the same date a year ago. Total deposits at December 31, 1998 were $832.0 million, up 4.4% from $796.7 million reported at December 31, 1997. Total loans increased 5.3% from $665.6 million reported at December 31, 1997 to $701.2 million reported at December 31, 1998. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. were 0.26% of total loans and foreclosed property at December 31, 1998. For the twelve months ended December 31, 1998, net loan charge-offs represented 0.22% of average loans outstanding. 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, president and chief executive officer, said, "The ability of our company to work through the process of these mergers and produce the earnings recorded in the fourth quarter is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of our operational strength and the tremendous ability of our people. We are pleased with the results of the recent months and we are excited about the possibilities for the Corporation in the new year." Anchor Financial Corporation, with assets of $1.0 billion, is the parent company of The Anchor Bank, which operates 28 banking offices in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and offers a full line of banking products and services. Anchor Financial Corporation has a pending merger with Bailey Financial Corporation which is expected to be completed during the first quarter of 1999 subject to shareholder and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals. The acquisition will increase the total assets of Anchor to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.2 billion. 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. under the symbol AFSC. -0-
Anchor Financial Corporation
Financial Summary - net of nonrecurring charges (1,2)
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Three Months Ended
December 31, Percent
Income Statement Data 1998 1997 Change
Interest income $19,500,413 $19,568,024 (0.3)%
Interest expense 8,545,614 8,715,976 (2.0)
Net interest income 10,954,799 10,852,048 0.9
Provision for loan losses 100,000 852,000 (88.3)
Net interest income after
provision for loan losses 10,854,799 10,000,048 8.5
Net gains (losses) on sales
of securities 86,850 (21,433) NM
Noninterest income 2,227,802 1,221,804 82.3
Noninterest expense 8,667,269 7,531,527 15.1
Income before income taxes 4,502,182 3,668,892 22.7
Applicable income tax expense 1,584,975 1,444,814 9.7
Net income $ 2,917,207 $ 2,224,078 31.2%
Net income per share - basic $ 0.45 $ 0.35 29.2
Net income per share -
diluted $ 0.43 $ 0.33 31.3
Cash dividends paid per share $ 0.12 $ 0.095 26.3
Weighted average shares
outstanding - basic 6,429,874 6,335,997 1.5
Weighted average shares
outstanding - diluted 6,760,730 6,769,416 (0.1)
----------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 1.15 % 0.95 % 20.7 %
Return on average
stockholders' equity 16.24 13.70 18.6
Net yield on average interest-earning
assets (tax equivalent) 4.63 4.78 (3.1)
---------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $1,009,592 $927,909 8.8 %
Interest-earning assets 941,316 865,842 8.7
Loans-net of unearned income 701,789 655,155 7.1
Investment securities 221,183 192,750 14.8
Deposits 849,417 792,082 7.2
Noninterest-bearing deposits 155,682 137,914 12.9
Interest-bearing deposits 693,735 654,167 6.0
Interest-bearing liabilities 772,668 717,654 7.7
Stockholders' equity 73,112 64,765 12.9
Year Ended
December 31, Percent
Income Statement Data 1998 1997 Change
Interest income $79,191,561 $70,452,083 12.4 %
Interest expense 36,099,141 31,731,627 13.8
Net interest income 43,092,420 38,720,456 11.3
Provision for loan losses 1,672,000 2,044,000 (18.2)
Net interest income after
provision for loan losses 41,420,420 36,676,456 12.9
Net gains (losses) on sales
of securities 106,702 (17,420) NM
Noninterest income 8,567,088 7,081,537 21.0
Noninterest expense 32,383,999 29,198,339 10.9
Income before income taxes 17,710,211 14,542,234 21.8
Applicable income tax expense 6,285,363 5,305,284 18.5
Net income $11,424,848 $9,236,950 23.7 %
Net income per share - basic $ 1.78 $ 1.46 21.9
Net income per share - diluted $ 1.70 $ 1.38 23.1
Cash dividends paid per share $ 0.48 $ 0.375 28.0
Weighted average shares
outstanding - basic 6,407,096 6,317,141 1.4
Weighted average shares
outstanding - diluted 6,732,590 6,703,191 0.4
----------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 1.14 % 1.07 % 7.4 %
Return on average
stockholders' equity 16.19 15.15 6.9
Net yield on average interest-earning
assets (tax equivalent) 4.64 4.84 (4.1)
----------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $999,982 $867,300 15.3 %
Interest-earning assets 933,535 805,201 15.9
Loans-net of unearned income 694,390 607,381 14.3
Investment securities 212,185 187,243 13.3
Deposits 838,202 737,401 13.7
Noninterest-bearing deposits 152,258 132,071 15.3
Interest-bearing deposits 685,944 605,330 13.3
Interest-bearing liabilities 768,419 668,327 15.0
Stockholders' equity 71,704 61,313 16.9
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NM - Not meaningful
(1) Amounts for all periods presented have been restated to
reflect the acquisitions of ComSouth Bankshares, Inc. and M&M
Financial Corporation under the pooling-of-interests method of
accounting.
(2) Nonrecurring charges are related to the costs associated with
completing the acquistions of ComSouth Bankshares, Inc. and M&M
Financial Corporation.
----------------------------------------------------------------------
Anchor Financial Corporation
Financial Summary (1)
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Three Months Ended
December 31, Percent
Income Statement Data 1998 1997 Change
----------------------------------------------------------------------
Interest income $19,500,413 $19,057,925 2.3 %
Interest expense 8,545,614 8,715,976 (2.0)
Net interest income 10,954,799 10,341,949 5.9
Provision for loan losses 100,000 852,000 (88.3)
Net interest income after
provision for loan losses 10,854,799 9,489,949 14.4
Net gains (losses) on sales
of securities 86,850 (21,433) NM
Noninterest income 2,227,802 1,731,903 28.6
Noninterest expense 8,829,081 7,531,527 17.2
Income before income taxes 4,340,370 3,668,892 18.3
Applicable income tax expense 1,546,364 1,444,814 7.0
Net income $2,794,006 $2,224,078 25.6 %
Net income per share - basic $0.43 $0.35 23.8
Net income per share - diluted $0.41 $0.33 25.8
Cash dividends paid per share $0.12 $0.095 26.3
Weighted average shares
outstanding - basic 6,429,874 6,335,997 1.5
Weighted average shares
outstanding - diluted 6,760,730 6,769,416 (0.1)
---------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 1.10 % 0.95 % 15.6 %
Return on average
stockholders' equity 15.56 13.70 13.6
Net yield on average interest-earning
assets (tax equivalent) 4.63 4.78 (3.1)
---------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $1,009,592 $927,909 8.8 %
Interest-earning assets 941,316 865,842 8.7
Loans-net of unearned income 701,789 655,155 7.1
Investment securities 221,183 192,750 14.8
Deposits 849,417 792,082 7.2
Noninterest-bearing deposits 155,682 137,914 12.9
Interest-bearing deposits 693,735 654,167 6.0
Interest-bearing liabilities 772,668 717,654 7.7
Stockholders' equity 73,112 64,765 12.9
---------------------------------------------------------------------
Year Ended
December 31, Percent
Income Statement Data 1998 1997 Change
---------------------------------------------------------------------
Interest income $79,191,561 $70,452,083 12.4 %
Interest expense 36,099,141 31,731,627 13.8
Net interest income 43,092,420 38,720,456 11.3
Provision for loan losses 2,472,000 2,044,000 20.9
Net interest income after
provision for loan losses 40,620,420 36,676,456 10.8
Net gains (losses) on sales of
securities 106,702 (17,420) NM
Noninterest income 8,567,088 7,081,537 21.0
Noninterest expense 35,920,775 29,198,339 23.0
Income before income taxes 13,373,435 14,542,234 (8.0)
Applicable income tax expense 5,251,429 5,305,284 (1.0)
Net income $8,122,006 $9,236,950 (12.1)%
Net income per share - basic $1.27 $1.46 (13.3)
Net income per share - diluted $1.21 $1.38 (12.5)
Cash dividends paid per share $0.48 $0.375 28.0
Weighted average shares
outstanding - basic 6,407,096 6,317,141 1.4
Weighted average shares
outstanding - diluted 6,732,590 6,703,191 0.4
---------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 0.81 % 1.07 % (23.7)%
Return on average
stockholders' equity 11.51 15.15 (24.0)
Net yield on average interest-earning
assets (tax equivalent) 4.64 4.84 (4.1)
---------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $999,982 $867,300 15.3 %
Interest-earning assets 933,535 805,201 15.9
Loans-net of unearned income 694,390 607,381 14.3
Investment securities 212,185 187,243 13.3
Deposits 838,202 737,401 13.7
Noninterest-bearing deposits 152,258 132,071 15.3
Interest-bearing deposits 685,944 605,330 13.3
Interest-bearing liabilities 768,419 668,327 15.0
Stockholders' equity 71,704 61,313 16.9
---------------------------------------------------------------------
NM -- Not meaningful
----------------------------------------------------------------------
Selected Financial Data
at Period-End (1)
(In thousands) December 31, Percent
1998 1997 Change
------------ -------------- ----------
Total assets $1,014,822 $945,554 7.3 %
Interest-earning assets 940,540 872,300 7.8
Loans-net of unearned income 701,158 665,589 5.3
Allowance for loan losses 8,297 7,321 13.3
Investment securities 231,591 197,325 17.4
Deposits 832,018 796,682 4.4
Stockholders' equity 72,909 66,200 10.1
Average stockholders' equity to
average assets 7.07 % 7.03 % 0.5 %
Tier 1 capital to average assets
(Leverage ratio) 7.07 6.88 2.8
Risk-based capital ratios:
Tier 1 capital 9.56 9.27 3.1
Total capital 12.15 11.93 1.8
Book value per common share $11.09 $10.24 8.3
Tangible book value per
common share $10.98 $10.09 8.8
Total common shares
outstanding 6,533,108 6,430,694 1.6
Credit Quality Data
Nonperforming assets $1,840,665 $1,054,439 74.6 %
Nonperforming loans 1,627,753 867,439 87.7
Net loan losses 1,496,856 1,353,467 10.6
Nonperforming assets to total
loans and foreclosed property 0.26 % 0.16 % 65.7
Annualized net loan losses
(recoveries) to average total
loans (YTD) 0.22 0.22 (3.3)
Allowance for loan losses to
total loans 1.18 1.10 7.6
Allowance for loan losses to:
Nonperforming assets 450.76 694.30 (35.1)
Nonperforming loans 509.72 843.98 (39.6)
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