CENIT Announces Earnings for First Quarter 2000 and Announces Quarterly Dividend.Business Editors NORFOLK Norfolk, cities, United States Norfolk (1, 2 nôr`fək; 2 nôr`fôk'). 1 City (1990 pop. 21,476), Madison co., NE Nebr., on the Elkhorn River; inc. 1881. , Va.--(BUSINESS WIRE)--April 19, 2000 CENIT Bancorp, Inc. (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 : CNIT CNIT Center of New Information Technologies ) today announced that net income for the first quarter of 2000 was $1,389,000 or $.30 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 compared to $1,465,000 or $.31 per diluted share in the first quarter of 1999. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. S. Ives Ives , Charles Edward 1874-1954. American composer whose works anticipated those of later 20th-century musicians in their abandonment of conventional tonality. His Third Symphony (1904-1911) won a Pulitzer Prize. Noun 1. , the Company's President and Chief Executive Officer, commented on the Company's earnings, "Our core banking programs continue to progress. However, the slight decline in our first quarter earnings stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. primarily from a substantial decrease in mortgage lending and related activities for us and those of our customers who are involved in the mortgage process. The rise in mortgage lending rates over the past year appeared to be the catalyst for this decrease in mortgage lending." "Comparing the first quarter of 2000 with the first quarter of 1999, our mortgage banking fees fell $108,000. In addition, the average balance for the first quarter of our customers' commercial escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. accounts that are used primarily to fund mortgage closings decreased by approximately $6,600,000 from the average balance of these accounts for the first quarter of last year. We had to fund this shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in our escrow account average balances with interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities." "Partially offsetting the declines in the portions of our business relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc mortgage lending were continuing improvements in our core banking programs. The average balance of our noninterest-bearing deposits, exclusive of escrow accounts, during the first quarter of 2000 increased by approximately $4,400,000, or 9.2%, over the first quarter of 1999. Similarly, our deposit fees grew by $49,000, or 7.4%, and our net merchant processing revenue increased by $35,000, or 41.2%." Ives commented further, "During the latter part of March, the balance of our Transaction Deposits, that is, checking, savings, and money market deposits, grew significantly. At March 31, 2000, total Transaction Deposits were $239.2 million, an increase of $22.3 million, or 10.3%, over the balance of these deposits at December December: see month. 31, 1999. Through April 16, 2000, the average balance of our Transaction Deposits for April was approximately $231,000,000 compared to an average balance of these deposits of approximately $215,000,000 for the first quarter, with $7,200,000 of this increase in average balances representing noninterest-bearing deposits. Sustaining this improvement in the average balances of our Transaction Deposits and especially our noninterest-bearing deposits throughout the second quarter would have positive implications for our net income." Net interest income during the first quarter of 2000 grew by $47,000 to $5,394,000 versus $5,347,000 in the prior year's first quarter. The Company's net interest margin decreased to 3.46% in the first quarter of 2000 compared to 1999's first quarter of 3.66%, primarily as the result of increases in borrowing costs. Other income in the first quarter of 2000 decreased by $238,000 or 13% compared to the first quarter of 1999. This was primarily due to quarter-to-quarter decreases of $108,000 in gains on the sale of loans, and $158,000 in commercial mortgage brokerage fees. Other expense decreased by $88,000 in the first quarter of 2000 compared to the prior year's first quarter, primarily due to a decrease in commission expense related to the lower volume of mortgage loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and brokered loans. Asset quality continues to be outstanding. 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 $1.2 million, or .19% of total assets at March 31, 2000. Net loan charge-offs during the first quarter of 2000 were a nominal $54,000 down from $94,000 of net charge-offs during the first quarter of 1999. The Company will pay a quarterly cash dividend of 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on or about May 18, 2000 to the holders of the Company's common stock as of the close of business on May 8, 2000. We invite you to visit the Company's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Web site at cenit.com and explore our online banking capabilities. CENIT Online Banking permits our customers to engage in a wide range of banking services through their personal computer, and provides current and detailed account information all day, every day. The Annual Meeting of Stockholders of CENIT Bancorp, Inc. will be held at 5:00 p.m. on Wednesday Wednesday: see week. , June June: see month. 14, 2000, in the theater of the Chrysler Museum of Art The Chrysler Museum of Art is an art museum in the Ghent district of Norfolk, Virginia. , 245 West Olney Olney is the name of a place in the United Kingdom:
CENIT Bancorp, Inc. is the holding company for CENIT Bank. Through its twenty banking offices, including three Super Kmart For the Australasian department store chain, see Kmart Australia. "K-Mart" is also a nickname for NBA player Kenyon Martin. Kmart is a chain of department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. banking centers and twenty-six automated teller machines automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. , the Company provides a wide range of banking and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in the Hampton Roads Hampton Roads, roadstead, 4 mi (6.4 km) long and 40 ft (12.2 m) deep, SE Va., through which the waters of the James, Nansemond, and Elizabeth rivers pass into Chesapeake Bay. , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). market, the fourth largest MSA (Metropolitan Service Area) An urban area with at least 50,000 people plus surrounding counties. There are 306 MSAs and 428 RSAs (rural service areas) in the U.S. MSAs and RSAs are used to allocate cellular licenses. in the Southeast. CENIT Bank is the largest community bank headquartered in this market and is the only community bank serving all six of the market's most populous pop·u·lous adj. Containing many people or inhabitants; having a large population. [Middle English, from Latin popul cities. CENIT Bank has banking offices in Virginia Beach Virginia Beach, resort city (1990 pop. 393,069), independent and in no county, SE Va., on the Atlantic coast; inc. 1906. In 1963, Princess Anne co. and the former small town of Virginia Beach were merged, giving the present city an area of 302 sq mi (782 sq km). , Norfolk, Portsmouth Portsmouth, city, England Portsmouth, city (1991 pop. 174,218) and district, Hampshire, S England, on Spithead Channel. The district includes Portsea (naval station), Southsea (residential district and resort), and the old town of Portsmouth proper. , Chesapeake Chesapeake, ship Chesapeake, U.S. frigate, famous for her role in the Chesapeake affair (June 22, 1807) and for her battle with the H.M.S. Shannon (June 1, 1813). The Chesapeake left Norfolk, Va. , Hampton Hampton, part of Greater London, England Hampton, since 1965 part of the Greater London outer borough of Richmond upon Thames, SE England, on the Thames River. It is the site of Hampton Court Palace, which occupies about eight acres (3. , Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. , and York County, Virginia York County is a county located on the Virginia Peninsula in the Hampton Roads region of the Commonwealth of Virginia, a state of the United States. Formed in 1634 as one of the eight original shires (counties) of the Virginia Colony, York County is one of the oldest . Information contained in this news release, other than historical information, may contain 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. that involve risks and uncertainties including, but not limited to management's expectations regarding performance during the second quarter of 2000. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, and are provided to assist the reader in understanding anticipated future financial results. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could ultimately prove to be inaccurate. The Company's actual results may differ materially from those projected in forward-looking statements, particularly if market conditions or other factors prevent the Company from sustaining the increases in average deposit balances. (Selected Consolidated Financial Data to follow)
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
At or for the
Three Months
Ended
March 31,
2000 1999
Income Data
Interest income $ 11,598 $ 10,727
Interest expense 6,204 5,380
Net interest income 5,394 5,347
Provision for loan losses 29 14
Net interest income after provision
for loan losses 5,365 5,333
Other income 1,593 1,831
Other expenses 4,787 4,875
Income before income taxes 2,171 2,289
Provision for income taxes 782 824
Net income $ 1,389 $ 1,465
Basic earnings per share (1) $ .31 $ .32
Diluted earnings per share (1) $ .30 $ .31
Cash dividends per share $ .15 $ .15
Average Balance Sheet Data
Loans, net $470,134 $500,197
Investment securities 54,816 52,883
Mortgage-backed certificates 83,241 14,572
Interest-earning assets 624,420 585,132
Interest-bearing deposits 406,287 407,038
Borrowings 136,760 96,708
Interest-bearing liabilities 543,047 503,746
Assets 661,403 623,295
Liabilities 610,279 573,543
Noninterest-bearing deposits 61,964 64,187
Stockholders' equity 51,124 49,752
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or for the
Three Months
Ended
March 31,
2000 1999
Spread and Margin Analysis
Yield on:
Loans, net. 7.77% 7.55%
Investment securities 5.66% 5.82%
Mortgage-backed certificates 6.87% 7.49%
Interest-earning assets 7.43% 7.33%
Cost of:
Interest-bearing deposits 4.19% 4.13%
Borrowings 5.69% 4.89%
Interest-bearing liabilities 4.57% 4.27%
Interest rate spread 2.86% 3.06%
Net interest margin 3.46% 3.66%
Ratios
Return on average assets .84% .94%
Return on average stockholders' equity 10.87% 11.78%
Cash Basis Operating Results and Ratios (2)
Net income $ 1,457 $ 1,535
Basic earnings per share $ .32 $ .34
Diluted earnings per share $ .32 $ .33
Return on average tangible assets .89% .99%
Return on average tangible equity 12.18% 13.31%
Credit Data
Total nonperforming assets, net $ 1,245 $ 1,629
Total nonperforming assets, net,
to total assets .19% .26%
Allowance for loan losses to loans held for
investment, net .83% .80%
Net charge-offs $ 54 $ 94
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or for the
Three Months
Ended
March 31,
2000 1999
Other Income and Other Expense Data
Deposit fees $ 708 $ 659
Merchant processing fees 511 514
Gains on sales of loans 132 240
Fees from accounts receivable program 78 101
Loan servicing fees and late charges 72 73
Commercial mortgage brokerage fees - 158
Other miscellaneous 92 86
Total other income $ 1,593 $ 1,831
Salaries and employee benefits $ 2,296 $ 2,436
Equipment, data processing and supplies 808 747
Net occupancy expense of premises 572 526
Merchant processing 391 429
Professional fees 157 174
Advertising and promotion 113 36
Loan processing 110 126
Amortization of intangibles 87 89
Postage 63 72
Federal deposit insurance premiums 25 62
Expense, gains/losses on sales and
provision for losses on real estate
owned, net 6 9
Other miscellaneous 159 169
Total other expenses $ 4,787 $ 4,875
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
March 31, December 31, March 31,
2000 1999 1999
Balance Sheet Data
Assets $664,129 $674,213 $635,697
Loans, net 465,942 473,074 494,980
Securities available for sale at
fair value: Investment securities
(adjusted cost of $51,363, $56,368
and $54,764, respectively) 50,401 55,535 54,920
Mortgage-backed certificates
(adjusted cost of $84,913, $83,018
and $14,408, respectively) 84,273 82,763 14,738
Cash and federal funds sold 32,221 30,462 42,204
Deposits 498,183 464,618 490,229
Noninterest-bearing deposits 71,304 64,491 73,597
Borrowings 110,073 155,233 91,187
Stockholders' equity(3) 51,056 51,265 49,699
Book value per share(4) $11.23 $11.29 $10.88
Tangible book value per share(4) $10.52 $10.57 $10.10
Common stock outstanding excluding
unallocated common stock held by
the Company's Employee Stock
Ownership Plan 4,546,523 4,540,442 4,568,554
Common stock outstanding including unallocated
common stock held by the Company's
Employee Stock Ownership Plan 4,753,663 4,751,644 4,791,940
Closing stock price $10.19 $17.31 $19.38
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
March 31, Dec. 31, March 31,
2000 1999 1999
Loan Data
Loans
First mortgage loans:
Single-family $217,205 $221,041 $ 253,865
Multi-family 8,529 8,082 7,597
Commercial real estate 82,269 81,724 78,651
Construction 65,089 66,213 67,532
Acquisition/development
and residential lots 22,241 21,631 16,959
Commercial business 37,760 36,739 38,314
Consumer:
Equity and second mortgage 57,778 56,469 52,229
Other consumer 14,416 14,823 14,449
Less: undisbursed portion
of construction and
acquisition and development loans (38,068) (34,714) (34,744)
Gross loans 467,219 472,008 494,852
Allowance for loan losses (3,835) (3,860) (3,944)
Unearned discounts, premiums, and
loan fees, net 1,442 1,470 1,355
Loans held for investment, net 464,826 469,618 492,263
Loans held for sale 1,116 3,456 2,717
Loans, net $465,942 $473,074 $494,980
Percentage of gross loans
First mortgage single-family 46% 47% 51%
All other (Core Banking Loans) 54% 53% 49%
100% 100% 100%
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Average Balances
For the Quarter Ended
March 31,
2000 1999
Deposit Data
Deposits
Noninterest-bearing $61,964 $ 64,187
Interest-bearing savings,
checking and money
market 153,151 148,624
Total transaction deposits 215,115 212,811
Certificates of deposit 253,136 258,414
Total deposits $468,251 $471,225
Percentage of deposits
Noninterest-bearing 13% 14%
Interest-bearing savings,
checking and money
market 33% 31%
Total transaction deposits 46% 45%
Certificates of deposit 54% 55%
Total deposits 100% 100%
Balances At
March 31, December 31, March 31,
2000 1999 1999
Deposit Data
Deposits
Noninterest-bearing $ 71,304 $ 64,491 $73,597
Interest-bearing savings,
checking and money
market 167,881 152,442 156,215
Total transaction deposits 239,185 216,933 229,812
Certificates of deposit 258,998 247,685 260,417
Total deposits $498,183 $464,618 $490,229
Percentage of deposits
Noninterest-bearing 14% 14% 15%
Interest-bearing savings,
checking and money
market 34% 33% 32%
Total transaction deposits 48% 47% 47%
Certificates of deposit 52% 53% 53%
Total deposits 100% 100% 100%
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC. NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited) (1) Basic earnings per share is calculated using weighted average shares outstanding. For the three month period ended March 31, 2000, weighted average shares used to compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. basic earnings per share were 4,543,261. For the three months ended March 31, 1999, weighted average shares used to compute basic earnings per share were 4,566,074. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is calculated by adding common stock equivalents to the weighted average shares outstanding. For the three month period ended March 31, 2000, weighted average shares used to compute diluted earnings per share were 4,599,677. For the three months ended March 31, 1999, weighted average shares used to compute diluted earnings per share were 4,654,449. (2) Cash basis operating results exclude the effect on net income of amortization expense applicable to intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. which include goodwill and core deposit intangibles. Cash basis operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: exclude the effect of amortization of intangible assets from net income and the unamortized balances of intangibles from assets and equity. The Company has presented cash basis operating results and ratios as management understands that such information is used by many investors and analysts. Cash basis operating data is not intended to represent and should not be considered more meaningful than, or as a substitute for, other measures of performance determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . (3) Includes accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. other comprehensive (loss) income, net of income taxes of $(993,000), $(674,000) and $301,000 at March 31, 2000, December 31, 1999 and March 31, 1999, respectively. (4) Book value per share and tangible book value per share, computed by including unallocated common stock held by the Company's Employee Stock Ownership Plan at March 31, 2000 were $10.74 and $10.07, respectively; at December 31, 1999 were $10.79 and $10.10, respectively; and at March 31, 1999 were $10.37 and $9.63, respectively. |
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