Aspen Bancshares' record first quarter earnings up 9%.ASPEN, Colo.--(BUSINESS WIRE)--April 16, 1997--Aspen Bancshares, Inc. (Nasdaq: ASBK) today reported record net income for the first quarter of 1997 of $1.387 million, a 9.2% increase over the $1.270 million earned a year earlier. Net income per share for the period rose 5.9% to $0.36 versus $0.34, fully 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. , earned in the first quarter of 1996. The Company's 7% cumulative convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". issue was converted into common shares effective April 15, 1996. The record earnings were the result, in part, from a positive contribution from Val Cor Bancorporation, which was acquired in June June: see month. , 1996. An improvement in overhead expense control in the quarter, as well as a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the net interest margin over the preceding quarter also factored importantly into the results. Net interest income for the quarter ended March 31, 1997, was $4.865 million, up 23.5% from the year-earlier figure of $3.939 million. Net interest margin narrowed slightly to 4.63% in the 1997 quarter from 4.69% recorded in the first quarter of 1996. Net interest margin for the fourth quarter of 1996 was 3.91%. 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 increased by 25.1%, more than offsetting the 1.3% decline in the year-over-year margin. This slight margin narrowing was a result in part of a higher proportion of government securities in earning assets in the first quarter versus a year ago. Non-interest income rose marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. , by 1.7%, in the first quarter of 1997 over the first quarter of 1996, to $737,000 from $725,000. Non-interest expenses in the first quarter of 1997 rose by 29.0% over the first quarter of 1996, to $3.457 million from $2.680 million. Non-interest expenses totaled $3.927 million in the fourth quarter of 1996. The efficiency ratio, which is non-interest expense as a percentage of taxable equivalent net interest income and non-interest income, edged up to 61.7% in the first quarter compared to the year-earlier ratio of 57.5%, but improved considerably over the 77.2% recorded in the preceding quarter ended December December: see month. 31, 1996. The Company has been experiencing a higher level of professional fees incurred in connection with the proposed merger with Zions Bancorporation Zions Bancorporation (NASDAQ: ZION) is a member of the S&P 500, a bank holding company headquartered Salt Lake City, Utah. Its star subsidiary is NSB Public Finance. . Credit quality remains excellent. During the first quarter of 1997, there were net recoveries of loans previously charged off totaling $15,000. Non-performing assets totaled $1.843 million at March 31, 1997, or 0.55% of period-end loans. The allowance for loan losses totaled $3.251 million, or 1.03% of period end loans and 176% of non-performing assets at March 31, 1997. Commenting on the quarter, Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by B. Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. , President and Chief Executive, said, "We were pleased with these results. In light of the pending acquisition by Zions, it was very gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to see that we were not distracted dis·tract·ed adj. 1. Having the attention diverted. 2. Suffering conflicting emotions; distraught. dis·tract and that we recorded another quarter of improved earnings and respectable profit returns." Aspen Bancshares is the parent company for the Pitkin County Bank and Trust, the largest bank headquartered in Aspen, Centennial Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , the largest thrift thrift: see leadwort. headquartered in western Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , and Val Cor Bancorporation, the parent company for Valley National Bank. Equity to period-end assets equaled 7.20%. Total assets at March 31, 1997, were $446.5 million. 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 $32.1 million at March 31, 1997, equivalent to $8.49 per share. -0-
Selected Financial Ratios
(unaudited)
Three Months Ended
March 31,
1997 1996
Return on average assets 1.24% 1.42%
Return on average equity 17.56 18.05
Net interest spread 4.04 4.07
Net interest margin 4.63 4.69
Efficiency ratio 61.71 57.46
Mar. 31, Mar. 31,
1997 1996
Common shareholders' equity to assets 7.19% 6.01%
Common shareholders' equity per share $8.49 $7.11
Non-performing assets to total loans 0.55% 0.13%
Allowance for loan losses to
non-performing assets 176.40 631.41
Allowance for loan losses to total loans 1.03 0.82
ASPEN BANCSHARES, INC.
Consolidated Income Statement (Unaudited)
(in thousands)
Three Months Ended
March 31,
1997 1996
INTEREST INCOME
Interest and fees on loans $ 7,500 $ 6,421
Investment securities 1,245 579
Other 278 321
Total Interest Income 9,023 7,321
INTEREST EXPENSE
Deposits 3,907 3,135
Other 251 247
Total Interest Expense 4,158 3,382
Net interest income 4,865 3,939
Provision for loan losses 19 9
Net interest income after provision 4,846 3,930
NON-INTEREST INCOME
Service charges on deposit accounts 289 188
Other fees and charges 308 217
Net gains on sales of assets 140 320
Total Non-Interest Income 737 725
NON-INTEREST EXPENSE
Personnel 1,754 1,326
Occupancy 416 397
Other expenses 1,287 957
Total Non-Interest Expense 3,457 2,680
Income from operations 2,126 1,975
Provision for income taxes 739 705
Net income $ 1,387 $ 1,270
Net income available to common
stock $ 1,387 $ 1,162
Net income per share $ 0.36 $ 0.37
Net income per share, fully
diluted $ 0.36 $ 0.34
Book value per share (fully
diluted) $ 8.49 $ 7.11
Average shares outstanding 3,862 3,134
Fully diluted average shares 3,862 3,780
ASPEN BANCSHARES, INC.
Consolidated Statement of Financial Condition (Unaudited)
(in thousands)
March 31, December 31,
1997 1996 1996
ASSETS:
Cash and due from banks $ 10,240 $ 9,088 $ 15,114
Interest-bearing deposits in banks 667 1,177 400
Investment securities held for sale 81,742 43,182 78,170
Investment securities held to maturity - - -
Federal funds sold and resale
agreements 22,760 27,225 17,540
Loans held for resale 513 4,561 684
Loans 313,646 269,149 321,934
Less: Allowance for loan losses (3,251) (2,204) (3,217)
Loans, net 310,395 266,945 318,717
Premises and equipment 9,330 7,678 9,477
Accrued interest receivable 3,390 2,155 3,052
Other assets 7,430 3,652 7,452
Total Assets $ 446,467 $365,663 $450,606
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand--non-interest bearing $ 48,094 $ 33,601 $47,061
Demand--interest bearing 157,190 113,065 150,269
Savings and time deposits < $100,000 141,518 111,966 141,141
Time deposits > $100,000 54,484 54,991 60,403
Total Deposits 401,286 313,623 398,874
FHLB borrowings 5,000 17,235 10,100
Repurchase agreements - 145 -
Fed funds purchased - 2,270 -
Accrued interest payable 1,359 1,261 776
Dividends payable 186 257 185
Long term debt 4,875 - 5,875
Other liabilities 1,676 2,751 3,695
Total Liabilities 414,382 337,542 419,505
SHAREHOLDERS' EQUITY
Preferred stock - 6,150 -
Common stock 38 30 37
Additional paid-in capital 11,656 4,883 11,632
Retained earnings 21,464 18,008 20,260
Unrealized (net loss) on investment
securities held for sale (1,073) (950) (828)
Total Shareholders Equity 32,085 28,121 31,101
Total Liabilities and
Shareholders Equity $446,467 $365,663 $450,606
CONTACT: Aspen Bancshares, Aspen Charles B. Israel, 970/925-6700 The Levin lev·in n. Archaic Lightning. [Middle English levene, levin; see leuk- in Indo-European roots.] Group, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Hal Levine Le·vine , James Lawrence Born 1943. American pianist and conductor. He began his career with the Metropolitan Opera as principal conductor in 1973 and has since served as both music and artistic director. , Marty Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , 212/682-8875 |
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