Atlantic Bank Announces Increased Quarterly and Annual Earnings.BOSTON--(BUSINESS WIRE)--Feb. 11, 1999--Atlantic Bank (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATLB)("Company" and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. "Atlantic") announced consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income available to common stockholders for the quarter ended December December: see month. 31, 1998 of $1,993,000, an 18.5% increase compared to $1,682,000 for the same quarter in 1997. Consolidated net income available to common stockholders for the year ended December 31, 1998 was $7,336,000, a 27.1% increase compared to $5,772,000 in 1997. On a 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. basis, earnings per share were $0.45 for the quarter ended December 31, 1998 compared to $0.39 for the quarter ended December 31, 1997, and were $1.65 for the year ended December 31, 1998 compared to $1.34 for the year ended December 31, 1997. Total assets at December 31, 1998 were $472.8 million, an increase of $151.0 million or 46.9% over total assets of $321.8 million at December 31, 1997. On a consolidated basis, Atlantic's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets for the quarter was 1.79% and its annualized return on average equity for the quarter was 19.72%. For the year, return on average assets was 1.84% and return on average equity was 19.93%. During the fourth quarter of 1998, Atlantic acquired loans with outstanding principal balances of $67.4 million at a price of $60.3 million. These acquisitions brought Atlantic's total outstanding principal balances of loans acquired in 1998 to $212.9 million and the total purchase price to $187.2 million compared to acquisitions of $165.9 million at a price of $129.2 million during 1997. Atlantic's total loans and leases, net, amounted to $365.4 million at December 31, 1998, a 43.4% increase over total loans, net, of $254.8 million at December 31, 1997. Interest income from banking operations increased by $10.7 million to $43.5 million during 1998, a 32.6% increase compared to 1997. "We are very pleased with both our quarterly and annual results," stated Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar W. Lazares, Chairman. "Atlantic has established itself as an industry leader in the purchased loan business. As a result of our wholesale banking strategy, we have experienced substantial asset and revenue growth in recent years." The Company's new leasing subsidiary, Dolphin dolphin, fish dolphin, large, swift game fish, Coryphaena hipparus, also called dorado. It is of nearly worldwide distribution in warm waters. Capital Corporation ("Dolphin"), provides lease financing to individuals and businesses for the acquisition of computers and business equipment. Dolphin originated or acquired $11.7 million of leases during the fourth quarter of 1998 and $30.2 million from its inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. date of May 1, 1998 through December 31, 1998. In order to allow for growth in lease volume, Dolphin has made significant investments in its personnel, technology and support systems. Primarily due to the resulting higher level of 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. relative to first year lease originations and other factors, Dolphin recorded a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $836,000 during the fourth quarter of 1998 and $2,725,000 for the eight month period ended December 31, 1998. Richard Wayne Dr. Richard Wayne (April 4, 1804 – June 27, 1858) served as mayor of Savannah, Georgia for four terms: 1844 - 1845, 1848 - 1851, 1852 - 1853 and 1857 - 1858. He died while in office.[1] Wayne was the first mayor of Savannah elected by its citizens. , President, commented that "We expect to explore additional leasing programs, sales initiatives and operational efficiencies that we expect will make Dolphin a contributor to our earnings and will complement our purchased loan program thereby providing balance sheet diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. . The average yield on leases originated by Dolphin during 1998 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12.85%." "During 1998, Atlantic established a subsidiary named Atlantic Preferred Capital Corporation ("ATLPP"). In 1999, ATLPP raised net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $12.8 million through the issuance of 1,416,130 shares of Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. with a dividend rate of 9.75%. ATLPP intends to operate as a real estate investment trust. The FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). has confirmed that a portion of the capital raised by ATLPP will constitute Tier 1 Capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. for Atlantic Bank. This transaction represents a cost effective method of providing additional capital that will enable us to continue to grow our purchased loan and leasing businesses." Mr. Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. concluded, "We are pleased with the Company's recent performance and look forward to the opportunities and challenges of the future." This news release contains 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. regarding future events or financial performance. These statements are only predictions and actual events or results may differ materially. Investors should refer to the documents that the Company files from time to time with the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. and the Securities and Exchange Commission, specifically the cautionary statement identifying certain factors that could effect future results included in the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial section of its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . An analysis of selected consolidated results for the three months and the year ended December 31, 1998 follows. Net interest income for the three months ended December 31, 1998 increased by $589,000 compared to the same period in 1997. Interest income increased to $11.9 million for the three months ended December 31, 1998, a $2.3 million or 23.7% increase over the same period in 1997, while interest expense increased to $5.6 million, an increase of $1.7 million or 43.8% compared to the same period in 1997. While the 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. declined during 1998, the Company's average deposit base increased in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of funding loan acquisitions and maintaining an adequate level of liquidity. Net interest income for the year ended December 31, 1998 increased by $3.8 million compared to 1997. Interest income increased to $43.8 million, an $11.0 million or 33.5 % increase over the same period in 1997, while interest expense increased to $20.5 million, an increase of $7.2 million or 54.2% compared to the same period in 1997. The provision for loan and lease losses amounted to $271,000 for the three months ended December 31, 1998 compared to $50,000 for the same period in 1997. The provision also increased to $1.1 million for the year ended December 31, 1998 compared to $325,000 for the same period in 1997. Both increases are largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a provision for losses established on newly originated leases during 1998. The allowance for originated loan and lease losses as a percentage of originated loans and leases was 3.95% at December 31, 1998 compared to 3.22 % at December 31, 1997. Gains on sales of loans and leases, net of estimated provision for recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. liabilities of $387,000, amounted to $340,000 for the three months ended December 31, 1998. There were no sales for the comparable period in 1997. Gains on sales of originated loans and leases for the year ended December 31, 1998 increased by $758,000. This increase is attributable to the sales of leases at gross gains of $1,564,000, offset by estimated provisions for recourse liabilities of $689,000 during 1998 compared to a gain of $117,000 on the sale of loans in 1997. Total operating expenses increased by $1.5 million for the three months ended December 31, 1998 or 54.5% and by $4.4 million or 45.2% for the year ended December 31, 1998 compared to the corresponding periods in 1997. Both increases were largely attributable to start-up Start-up The earliest stage of a new business venture. and operating expenses of the Company's newly formed leasing subsidiary and the overall growth of the Company's banking operations. The effective tax rate decreased from 41.7% to 21.1% for the three months ended December 31, 1998 compared to 1997. For the year ended December 31, 1998 the effective tax rate decreased from 41.7% to 25.0% compared to 1997. The decline in the effective tax rate for 1998 is a result of the establishment of a real estate investment trust and the recognition of a historic tax credit relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the renovation of the Company's new main office building. The historic tax credit was recognized ratably throughout 1998. The Company's total assets amounted to $472.8 million at December 31, 1998, a $151.0 million or 46.9% increase over total assets of $321.8 million at December 31, 1997. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at December 31, 1998 was $41.6 million, or 8.8% of total assets compared to $31.8 million, or 9.9% of total assets at December 31, 1997. Atlantic Bank is a Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. chartered, FDIC insured trust
company which conducts business from its executive and main offices in
downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. Boston Boston, town, EnglandBoston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , a branch in Chestnut Hill, Massachusetts Located six miles west of downtown Boston, Massachusetts, Chestnut Hill is a wealthy suburban village notable for its stately old houses, scenic landscape, and the historic campus of Boston College. and through its leasing subsidiary in Moberly, Missouri Moberly is a city in Randolph County, Missouri, United States. The population was 11,945 at the 2000 census. The city was incorporated 1868. The Moberly Micropolitan Statistical Area consists of Randolph County. . -0-
Atlantic Bank and Trust Company and Subsidiaries
Consolidated Financial Highlights
(Unaudited)
December 31, December 31,
1998 1997
----------- -----------
(dollars in thousands, except per share data)
Total assets $ 472,774 $ 321,776
Purchased loans: 357,082 227,147
Total discount (50,704) (40,184)
Allowance for loan losses (350) --
Originated loans and leases: 63,896 70,530
Allowance for loan and lease losses (2,525) (2,273)
Unearned lease income (2,191) --
Net deferred loan and lease costs (income) 200 (388)
--------- --------
Loans and leases, net 365,408 254,832
--------- --------
Investment securities 29,654 7,817
Deposits 423,519 285,522
Stockholders' equity 41,592 31,801
Non-performing assets:
Other real estate owned, net 4,875 3,591
Non-performing originated loans 1,197 450
Non-performing purchased loans 12,842 6,468
------ -------
Total non-performing assets 18,914 10,509
------ -------
Accruing loans and leases
past due ninety days or more 1,350 --
Total non-performing assets to total assets 4.00 % 3.27 %
Discount as a percentage of purchased loans 14.20 17.69
Non-amortizing discount and
allowance for purchased loan losses
as a percentage of purchased loans 10.03 9.74
Allowance for originated loan and
lease losses as a percentage of originated
loans and leases 3.95 3.22
Allowance for originated loan and
lease losses as a percentage of
non-performing originated loans and leases 210.94 505.11
Book value per share $ 9.95 $ 7.84
Tangible book value per share 8.69 7.82
Shares outstanding, net 4,133,859 4,055,526
Capital ratios:
Tier 1 leverage 8.11 % 10.55 %
Tier 1 risk-based 9.13 11.98
Total risk-based 10.00 12.84
Atlantic Bank and Trust Company and Subsidiaries
Consolidated Operating Results and Related Financial Data
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
------------------ ---------------
1998 1997 1998 1997
------------------ ---------------
(in thousands, except per share data)
Interest income $ 11,925 $ 9,639 $ 43,768 $ 32,777
Interest expense (5,571) (3,874) (20,458) (13,269)
--------- ------ ------- -------
Net interest income 6,354 5,765 23,310 19,508
Provision for loan
and lease losses (271) (50) (1,090) (325)
--------- ------- -------- -------
Net interest income, after
provision for loan and
lease losses 6,083 5,715 22,220 19,183
Gains on sales of loans and leases 340 -- 875 117
Gains on sales of securities 42 -- 162 41
Other income (expense) 463 (2) 864 370
Operating expenses:
Other real estate owned
income, net 360 240 1,373 512
Other operating expenses (4,728) (3,068) (15,618) (10,323)
---------- -------- -------- --------
Total operating expenses (4,368) (2,828) (14,245) (9,811)
---------- -------- -------- --------
Income before income taxes 2,560 2,885 9,876 9,900
Provision for income taxes (541) (1,203) (2,469) (4,128)
---------- -------- -------- --------
Net income 2,019 1,682 7,407 5,772
Preferred stock dividends (26) -- (71) --
---------- -------- -------- --------
Net income available to
common stockholders $ 1,993 $ 1,682 $ 7,336 $ 5,772
========== ======== ======== ========
Weighted average shares outstanding:
Basic 4,134 4,056 4,107 4,043
Diluted 4,433 4,359 4,447 4,316
Earnings per share:
Basic $ 0.48 $ 0.41 $ 1.79 $ 1.43
Diluted 0.45 0.39 1.65 1.34
Financial ratios (annualized):
Return on average assets 1.79% 2.22% 1.84% 2.18%
Return on average stockholders'
equity 19.72% 21.57% 19.93% 20.16%
Atlantic Bank and Trust Company and Subsidiaries
Interest Rate and Loan and Lease Volume Analysis
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
------------------ ----------------
1998 1997 1998 1997
------------------ ----------------
(dollars in thousands)
Weighted average yield/rate (annualized):
Short-term investments 4.92 % 5.52 % 5.30 % 5.38 %
Securities available for
sale 5.07 5.95 5.36 6.01
Purchased loan
portfolio, net 13.58 16.55 14.15 16.60
Originated loan and lease
portfolio, net 12.05 11.05 11.17 11.32
Total interest-earning
assets 11.66 % 13.74 % 11.83 % 13.58 %
Deposits 5.58 % 5.91 % 5.78 % 5.87 %
Interest rate spread 6.08 % 7.83 % 6.05 % 7.71 %
Net interest margin 6.21 % 8.22 % 6.30 % 8.08 %
Loan and lease volume:
Loan originations $ 177 $ 7,923 $ 6,598 $ 16,810
Loan acquisitions:
Loan balances 67,432 40,084 212,915 165,903
Discount (7,163) (9,294) (25,681) (36,712)
---------- ---------- ---------- ---------
Loan acquisitions, net 60,269 30,790 187,234 129,191
---------- ---------- ---------- ---------
Lease volume 11,679 -- 30,232 --
---------- ---------- ---------- ---------
Total loan and lease
volume, net $ 72,125 $ 38,713 $ 224,064 $ 146,001
========== ========== ========== ==========
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