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BANKERS FIRST ANNOUNCES RECORD SECOND QUARTER EARNINGS

    AUGUSTA, Ga., July 20 /PRNewswire/ -- Bankers First Corporation (NASDAQ: BNKF) today announced 1993 second quarter net income before extraordinary item of $2.279 million, or $0.48 per share, compared to $0.818 million, or $.19 per share, in 1992, representing an increase of 178.6 percent in earnings per share.
    Net income for the 1993 second quarter was $0.30 per share vs. $0.19 in 1992, an increase of 57.9 percent.
    The increase in core earnings was principally attributable to a 22.7 percent increase in net interest income and a 3.1 percent reduction in general and administrative expenses.  The net interest margin in the 1993 second quarter was 3.46 percent vs. 2.86 percent in the second quarter of 1992.  General and administrative expenses were 2.50 percent of average assets in the second quarter compared to 2.58 percent a year earlier.  Other income in the 1993 second quarter included a $2.233 million gain on sale of investment securities held for sale.
    H.M. Osteen Jr., chairman and chief executive officer, commented, "Continued improvement in the net interest margin combined with significantly lower levels of non-performing assets and reductions of overhead expenses related to the sale of our Savannah branches resulted in improved earnings performance."
    Net income in the second quarter of 1993 contained an extraordinary charge of $876,000 or $0.18 per share resulting from the prepayment of $8.0 million of subordinated debt and mortgage notes scheduled to mature in 1998 and the prepayment of $10.0 million of other borrowings.
    Non-performing assets, restructured loans and performing loans 90 days past due stood at $27.9 million or 3.17 percent of assets at June 30, compared to $42.5 million or 4.69 percent of assets a year earlier. "The improved asset quality of the bank is reflected by six consecutive quarters of reductions in problem assets.  The $14.6 million reduction in problem assets during the past year represents a 34.4 percent decline," explained Osteen.
    The provision for loan and real estate losses for the 1993 first quarter was $1.701 million vs. $.357 million in the same period a year earlier.  At June 30, the allowance for loan losses stood at $9.4 million or 1.50 percent of net loans, 52.8 percent of non-performing assets, and 131.8 percent of non-performing loans.
    Bankers First Corporation is a financial services company principally serving the Augusta and northwest Georgia (Rossville/Chattanooga, Tenn.), markets with 18 banking offices and 19 automated teller machines.  The company's common stock is traded on the NASDAQ National Market System using the symbol BNKF.  The abbreviation found in most newspaper listings is "Bankers First."
                BANKERS FIRST CORP. AND SUBSIDIARIES
       Consolidated Statements of Financial Condition (Unaudited)
                         ($ in thousands)
        At June 30                             1993         1992
        ASSETS
    Cash and amounts due from depository
     institutions                         $   21,225   $   18,239
    Interest bearing deposits                  3,885       22,235
    Federal funds sold                            75           75
    Investment securities held for sale,
     at amortized cost                         4,224          ---
    Investment securities, at amortized cost  22,310       34,797
    Federal Home Loan Bank stock               9,247        8,714
    Mortgage-backed securities, at amortized
     cost                                    136,449      182,279
    Loans receivable, net                    626,946      567,468
    Premises and equipment, net               15,231       15,783
    Investment properties                     18,079       18,707
    Repossessed assets, net (allowance for real
     estate losses $1,650 in 1993)            10,697       19,493
    Accrued interest receivable                5,951        7,036
    Cost in excess of net assets acquired      2,321        3,260
    Other assets                               3,414        8,132
    Total assets                          $  880,054   $  906,218
        LIABILITIES AND STOCKHOLDERS' EQUITY
    Deposits                              $  625,191   $  708,999
    Retail repurchase agreements              14,077       18,803
    Advance payments by borrowers for taxes
     and insurance                             3,203        2,709
    Other borrowings                         155,418       99,080
    Deferred income taxes                        937        2,110
    Other liabilities                          9,540        7,243
    Total liabilities                        808,366      838,944
       Stockholders' equity:
    Common stock, $.01 par value; authorized
     12,500,000 shares; issued and outstanding
     4,411,441 shares in 1993 and 4,382,728
     shares in 1992                               45           44
    Serial preferred stock, $.01 par value;
     authorized 7,500,000 shares; none
     outstanding                                 ---          ---
    Additional paid-in capital                54,943       54,384
    Retained earnings (substantially
     restricted)                              19,168       15,489
    Loans to and guarantees of indebtedness
     of Employee Stock Ownership Plan
     and others                               (2,468)      (2,643)
    Total stockholders' equity                71,688       67,274
    Total liabilities and stockholders'
     equity                               $  880,054   $  906,218
    TANGIBLE BOOK VALUE PER SHARE             $15.56       $14.61
            Consolidated Statements of Operations (Unaudited)
                        ($ in thousands)
       3 mos. ended                               6/30/93    6/30/92
       Interest income:
    Interest on loans and mortgage-backed
     securities                                  $ 15,799   $ 16,410
    Dividends on Federal Home Loan Bank stock         139        141
    Other interest income                             565        974
    Total interest income                          16,503     17,525
       Interest expense:
    Interest on deposits                            6,694      9,724
    Interest on retail repurchase agreements           79        135
    Interest on other borrowings                    2,623      1,875
    Total interest expense                          9,396     11,734
    Net interest income                             7,107      5,791
    Provision for loan losses                       1,600        357
    Net interest income after provision
     for loan losses                                5,507      5,434
    Provision for real estate losses                  101        ---
       Other income:
    Loan servicing fees                                56         76
    Loan fees & service charges                       191        229
    Service charges on deposit accounts             1,070      1,129
    Gain on sale of loans                              50        230
    Gain on sale of investments                     2,233          2
    Real estate operations                             86       (154)
    Other                                              33        200
    Total other income                              3,719      1,712
       Operating expense:
    Salaries and employee benefits                  2,298      2,579
    Net occupancy expense                             953      1,373
    Advertising and promotion                         195        187
    FDIC insurance expense                            446        420
    Other                                           1,703      1,217
    Total general & administrative expense          5,595      5,776
    Amortization of costs in excess of net assets
     acquired                                         148        167
    Total non-interest expense                      5,743      5,943
    Net non-interest expense                        2,024      4,231
    Income before income tax, extraordinary item
     and cumulative effect of change in
     accounting principle                           3,382      1,203
    Income tax expense                              1,103        385
    Net income before extraordinary item and
     cumulative effect of change in
     accounting principle                           2,279        818
    Extraordinary expense - debt prepayment, net     (876)       ---
    Cumulative effect of change in accounting
     principle                                        ---        ---
    Net income                                   $  1,403   $    818
       Net income per common and common equivalent share:
    Income before extraordinary item and
     cumulative effect of change in
     accounting principle                        $   0.48   $   0.19
    Extraordinary item - debt prepayment, net       (0.18)       ---
    Cumulative effect of change in accounting
     principle                                        ---        ---
    Net income                                   $   0.30   $   0.19
    Wtd. avg. common and common equivalent
     shares outstanding (in 000s)                   4,737      4,383
       6 mos. ended                               6/30/93    6/30/92
       Interest income:
    Interest on loans and mortgage-backed
     securities                                  $ 31,491   $ 33,127
    Dividends on Federal Home Loan Bank stock         279        290
    Other interest income                           1,281      2,030
    Total interest income                          33,051     35,447
       Interest expense:
    Interest on deposits                           13,898     20,459
    Interest on retail repurchase agreements          162        260
    Interest on other borrowings                    5,040      3,603
    Total interest expense                         19,100     24,322
    Net interest income                            13,951     11,125
    Provision for loan losses                       2,088      1,061
    Net interest income after provision
     for loan losses                               11,863     10,064
    Provision for real estate losses                  976        ---
       Other income:
    Loan servicing fees                               122        190
    Loan fees & service charges                       352        473
    Service charges on deposit accounts             2,193      2,266
    Gain on sale of loans                              91        481
    Gain on sale of investments                     2,233        274
    Real estate operations                            (61)      (295)
    Other                                             774        367
    Total other income                              5,704      3,756
       Operating expense:
    Salaries and employee benefits                  4,679      5,095
    Net occupancy expense                           2,033      2,792
    Advertising and promotion                         350        303
    FDIC insurance expense                            920        840
    Other                                           2,924      2,473
    Total general & administrative expense         10,906     11,503
    Amortization of costs in excess of net assets
     acquired                                         296        334
    Total non-interest expense                     11,202     11,837
    Net non-interest expense                        5,498      8,081
    Income before income tax, extraordinary item
     and cumulative effect of change in
     accounting principle                           5,389      1,983
    Income tax expense                              1,804        683
    Net income before extraordinary item and
     cumulative effect of change in
     accounting principle                           3,585      1,300
    Extraordinary expense - debt prepayment, net   (1,049)       ---
    Cumulative effect of change in accounting
     principle                                        ---      2,294
    Net income                                   $  2,536   $  3,594
       Net income per common and common equivalent share:
    Income before extraordinary item and
     cumulative effect of change in
     accounting principle                        $   0.76   $   0.30
    Extraordinary item - debt prepayment, net       (0.22)       ---
    Cumulative effect of change in accounting
     principle                                        ---       0.52
    Net income                                   $   0.54   $   0.82
    Wtd. avg. common and common equivalent
     shares outstanding (in 000s)                   4,700      4,383
                    Bankers First Corporation
                Financial Highlights (Unaudited)
           (Dollars in thousands, except per share amounts)
       3 mos. ended June 30          1993           1992    Pct. chg.
        FOR THE PERIOD
    Net interest income             $ 7,107        $ 5,791    22.7
    Provision for loan and real
     estate losses                    1,701            357   376.5
    Non-interest income               3,719          1,712   117.2
    Non-interest expense              5,743          5,943    (3.4)
    Net income before extraordinary
     item and cumulative effect of
     change in accounting principle   2,279            818   178.6
    Net income                        1,403            818    71.5
        PER SHARE
    Net income before extraordinary
     item and cumulative effect of
     change in accounting
     principles                     $  0.48        $  0.19  152.63
    Extraordinary item -- debt
     extinguishment, net            $ (0.18)       $   ---      NA
    Cumulative effect of change
     in accounting principle            ---            ---     ---
    Net income                         0.30           0.19    57.9
    Dividends paid                      ---            ---     ---
    Tangible book value               15.56          14.61     6.5
        ASSET YIELDS/FUNDS COST
    Yield on earning assets           8.06 pct.      8.73 pct.(7.7)
    Cost of funds                     4.65           5.77    (19.4)
    Interest spread                   3.41           2.96     15.2
        PERFORMANCE MEASURES
    Return on average assets         0.63 pct.       0.37 pct.70.3
    Return on average equity         7.92            4.91     61.3
    Net yield on average earning
     assets                          3.46            2.86     21.0
    G & A expenses/average assets    2.50            2.58     (3.1)
    Non-performing assets/
     total assets                    2.03            3.81    (46.7)
        AT PERIOD END
    Assets                     $  880,054      $  906,218     (2.9)
    Deposits                      625,191         708,999    (11.8)
    Loans receivable and MBS's    763,395         749,747      1.8
    Earning assets                803,136         815,568     (1.5)
    Non-performing assets          17,854          34,565    (48.3)
    Tangible shareholder's equity  69,367          64,014      8.4
    Tangible equity/assets           7.88 pct.       7.06 pct.11.6
    Shares outstanding (in 000s)    4,458           4,383      1.7
        AVERAGE BALANCES
    Assets                     $  893,784      $  894,613     (0.1)
    Deposits and repurchase
     agreements                   648,456         734,807    (11.8)
    Loans receivable and MBS's    769,556         718,454      7.1
    Earning assets                818,752         803,394      1.9
    Shares and common equiv.
     shares outstanding (in 000s)   4,737           4,383      8.1
       BANKERS FIRST SAVINGS BANK, FSB
       AT PERIOD END
    Tangible capital ratio           5.02 pct.       4.39 pct. 14.4 pct.
    Core capital ratio               5.29 pct.       4.76 pct. 11.1 pct.
    Risk-based capital ratio        10.22 pct.       9.34 pct.  9.4 pct.
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Date:Jul 20, 1993
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