Cenit Announces Increase in 1999 Earnings Per Share.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)--Jan. 25, 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 1999 increased to $1.30 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 or $6,059,000 compared to $1.27 per diluted share or $6,115,000 in 1998. Return on average assets was .96% for 1999 compared to .92% in 1998, and the net interest margin was 3.60% for 1999 compared to 3.43% for 1998. For the fourth quarters of both 1999 and 1998, the Company's net income was $.33 per diluted share. Net income in the fourth quarter of 1999 was $1,554,000 compared to $1,529,000 in the fourth quarter of 1998. During the fourth quarter of 1999, net interest income grew to $5.5 million, an increase of 6%, compared to $5.2 million during the fourth quarter of 1998, due primarily to the growth in interest 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 . Net income in the fourth quarter of 1999 was impacted by both a $180,000 decrease in income from the sale of mortgage loans, which reflects a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. activity due to higher interest rates, and by an increase in professional fees of $61,000, which includes $22,000 of century date change expenses and other miscellaneous nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. expenses. The percentage of the loan portfolio consisting of commercial business and real estate, multi-family residential Multi-family residential is a classification of housing where multiple separate housing units are contained within one building. The most common form is an apartment building. Many intentional communities incorporate multi-family residences, such as in cohousing projects. , consumer and acquisition, development 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. construction loans and residential lots (collectively, &uot;Core Banking Loans&uot;) increased to 53% of the loan portfolio from 48% at December December: see month. 31, 1998. Core Banking Loans increased by $14.7 million, or 6.2%, in the twelve months ending December 31, 1999. Additionally, the Company increased the percentage of average checking, savings and money market deposits (collectively, &uot;Transaction Deposits&uot;) as a percentage of average total deposits from 40% in 1998 to 46% in 1999. The Company's banking initiatives resulted in a $21.2 million, or 10.9%, increase in average Transaction Deposits in 1999 compared to 1998. 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, &uot;Growth in both our Core Banking Loans and Transaction Deposits is the quintessence quin·tes·sence n. 1. The pure, highly concentrated essence of a thing. 2. The purest or most typical instance: the quintessence of evil. 3. of our business strategy. We are particularly pleased that the average balance of our noninterest-bearing deposits grew to $65.7 million in 1999, representing an increase of 16.5% over the average balance of these deposits in 1998. The increases in our core banking business have provided both an improved net interest margin and increased net interest income to the Company in the fourth quarter of 1999 compared to the fourth quarter of 1998.&uot; The Company's asset quality remains excellent. 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 $603,000, or .09% of total assets at December 31, 1999. This represents a decrease of 59% compared to the $1.5 million of nonperforming assets at December 31, 1998, which was .23% of total assets on that date. Other income during 1999 increased by $119,000 or 2% compared to 1998, while other expenses increased by $702,000 or 4% during this period. Fees, net of related expenses, from merchant card processing increased 73% in 1999 to $511,000 from $296,000 in 1998. 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 February February: see month. 19, 2000 to the holders of the Company's common stock as of the close of business on February 7, 2000. The Board of Directors of the Company previously gave the Company's management the discretion to initiate INITIATE. A right which is incomplete. By the birth of a child, the husband becomes tenant by the curtesy initiate, but his estate is not consummate until the death of the wife. 2 Bouv. Inst. n. 1725. a repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 150,000 shares of the Company. Through the fourth quarter of 1999, the Company had repurchased 62,000 of its outstanding shares under this initiative. We invite you to visit the Company's internet website at http://www.cenit.com , where we have launched an online banking service. The service, CENIT Online Banking, permits customers to perform a wide range of banking services through their personal computer, and provides current and detailed account information twenty-four hours a day. 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-three 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. 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 . (Selected 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: Financial Data to follow)
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
At or for the At or for the
Year Three Months
Ended Ended
December 31, December 31,
1999 1998 1999 1998
Income Data
Interest income $ 43,312 $47,031 $ 11,327 $10,783
Interest expense 21,980 25,805 5,829 5,608
-------- ------- ------- -------
Net interest income 21,332 21,226 5,498 5,175
Provision for loan losses 98 510 23 70
-------- ------- ------- -------
Net interest income after provision
for loan losses 21,234 20,716 5,475 5,105
Other income 7,132 7,013 1,587 1,776
Other expenses 18,899 18,197 4,634 4,492
-------- ------- -------- -------
Income before income taxes 9,467 9,532 2,428 2,389
Provision for income taxes 3,408 3,417 874 860
-------- ------- -------- -------
Net income $ 6,059 $ 6,115 $ 1,554 $ 1,529
======== ======= ======== =======
Basic earnings per share (1) $ 1.32 $ 1.30 $ .34 $ .33
Diluted earnings per share (1) $ 1.30 $ 1.27 $ .33 $ .33
Cash dividends paid per share $ .60 $ .41 $ .15 $ .11
Average Balance Sheet Data
Loans, net $480,627 $507,694 $467,239 $496,382
Investment securities 56,556 44,542 57,167 43,854
Mortgage-backed certificates 36,300 46,967 74,023 16,766
Interest-earning assets 592,043 619,573 613,810 580,044
Interest-bearing deposits 405,717 431,126 404,529 418,288
Borrowings 103,632 116,626 125,427 80,974
Interest-bearing liabilities 509,349 547,752 529,956 499,262
Assets 630,589 661,378 652,330 619,993
Liabilities 579,988 610,572 600,805 569,957
Noninterest-bearing deposits 65,730 56,407 66,324 64,186
Stockholders' equity 50,601 50,806 51,525 50,036
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or for the At or for the
Year Three Months
Ended Ended
December 31, December 31,
1999 1998 1999 1998
Spread and Margin Analysis
Yield on:
Loans, net 7.60% 7.87% 7.71% 7.65%
Investment securities 5.72% 5.98% 5.68% 5.96%
Mortgage-backed certificates 6.98% 6.83% 6.86% 7.73%
Interest-earning assets 7.32% 7.59% 7.38% 7.44%
Cost of:
Interest-bearing deposits 4.13% 4.54% 4.13% 4.38%
Borrowings 5.06% 5.35% 5.27% 5.06%
Interest-bearing liabilities 4.32% 4.71% 4.40% 4.49%
Interest rate spread 3.00% 2.88% 2.98% 2.95%
Net interest margin 3.60% 3.43% 3.58% 3.57%
Ratios
Return on average assets .96% .92% .95% .99%
Return on average equity 11.97% 12.04% 12.06% 12.22%
Cash Basis Operating Results and Ratios (2)
Net income $ 6,334 $ 6,396 $ 1,622 $ 1,599
Basic earnings per share $ 1.38 $ 1.36 $ .35 $ .35
Diluted earnings per share $ 1.36 $ 1.32 $ .35 $ .34
Return on average tangible
assets 1.01% .97% 1.00% 1.04%
Return on average tangible
equity 13.44% 13.62% 13.47% 13.80%
Credit Data
Total nonperforming assets,
net $ 603 $ 1,474 $ 603 $ 1,474
Total nonperforming assets,
net, to total assets .09% .23% .09% .23%
Allowance for loan losses to
loans held for investment, net .82% .83% .82% .83%
Net charge-offs $ 262 $ 269 $ 45 $ 22
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
For the For the
Year Three Months
Ended Ended
December 31, December 31,
1999 1998 1999 1998
Other Income and Other Expense Data
Deposit fees $ 2,511 $ 2,454 $ 625 $ 632
Merchant processing fees 2,464 2,062 556 514
Gains on sales of loans 748 1,030 142 322
Fees from accounts receivable
program 356 439 78 114
Loan servicing fees and late charges 277 318 65 83
Commercial mortgage brokerage fees 168 468 - 75
Gains on sales of securities
available for sale, net - 72 - -
Other miscellaneous 608 170 121 36
------- ------ ----- -----
Total other income $7,132 $7,013 $1,587 $1,776
======== ======= ====== ======
Salaries and employee benefits $ 8,524 $8,301 $2,003 $2,055
Equipment, data processing and
supplies 2,992 2,861 771 693
Net occupancy expense of premises 2,154 1,901 578 496
Merchant processing 1,953 1,766 421 419
Professional fees 678 611 199 138
Loan processing 503 455 119 110
Amortization of intangibles 355 363 87 89
Postage 246 240 57 57
Federal deposit insurance premiums 241 260 59 61
Advertising and promotion 416 449 169 207
Expense, gains/losses on sales and
provision for losses on real estate
owned, net 44 89 (2) (2)
Other miscellaneous 793 901 173 169
------ ------ ------ ------
Total other expenses $18,899 $18,197 $4,634 $4,492
======= ======= ====== ======
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
December 31, December 31,
1999 1998
Balance Sheet Data
Assets $ 674,213 $ 641,056
Loans, net 473,074 488,661
Securities available
for sale at fair value:
Investment securities
(adjusted cost of $56,368
and $47,637, respectively) 55,535 48,117
Mortgage-backed certificates
(adjusted cost of $83,018
and $16,690, respectively) 82,763 17,019
Cash and federal funds sold 30,462 56,945
Deposits 464,618 496,772
Noninterest-bearing deposits 64,491 78,712
Borrowings 155,233 88,084
Stockholders' equity (3) 51,265 50,076
Book value per share (4) $11.29 $10.93
Tangible book value per share (4) $10.57 $10.13
Common stock outstanding
excluding unallocated
common stock held by the
Company's Employee Stock
Ownership Plan 4,540,442 4,581,358
Common stock outstanding
including unallocated
common stock held by the
Company's Employee Stock
Ownership Plan 4,751,644 4,808,806
Closing stock price $17.31 $21.50
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
December 31, December 31,
1999 1998
Loan Data
Loans
First mortgage loans:
Single family $ 221,041 $ 251,117
Multi-family 8,082 7,874
Commercial real estate 81,724 76,611
Construction 66,213 70,954
Acquisition/development and
residential lots 21,631 15,147
Commercial business 36,739 33,485
Consumer:
Equity and second mortgage 56,469 52,845
Other consumer 14,823 14,864
Less - undisbursed portion of
construction and acquisition
and development loans (34,714) (35,463)
Gross loans 472,008 487,434
Allowance for loan losses (3,860) (4,024)
Unearned discounts, premiums, and
loan fees, net 1,470 1,373
Loans held for investment, net 469,618 484,783
Loans held for sale 3,456 3,878
Loans, net $ 473,074 $ 488,661
Percentage of gross loans
First mortgage single family 47% 52%
All other (Core Banking Loans) 53% 48%
100% 100%
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Average Balances Balances
For the Year Ended At Year End
December 31, December 31,
1999 1998 1999 1998
Deposit Data
Deposits
Noninterest-bearing $ 65,730 $ 56,407 $ 64,491 $ 78,712
Interest-bearing
savings, checking
and money market 150,575 138,670 152,442 152,246
Total transaction
deposits 216,305 195,077 216,933 230,958
Certificates of deposit 255,142 292,456 247,685 265,814
Total deposits $ 471,447 $ 487,533 $ 464,618 $ 496,772
Percentage of deposits
Noninterest-bearing 14% 12% 14% 16%
Interest-bearing savings,
checking and money market 32% 28% 33% 30%
Total transaction deposits 46% 40% 47% 46%
Certificates of deposit 54% 60% 53% 54%
Total deposits 100% 100% 100% 100%
CENIT BANCORP, INC. NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited) (1) Basic earnings per share is calculated using weighted average shares outstanding. For the twelve month period and three month period ended December 31, 1999, 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 4,581,574 and 4,592,193, respectively. For the twelve months and three months ended December 31, 1998, weighted average shares used to compute basic earnings per share were 4,715,697 and 4,614,416, respectively. 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 twelve month period and three month period ended December 31, 1999, weighted average shares used to compute diluted earnings per share were 4,659,103 and 4,661,986, respectively. For the twelve months and three months ended December 31, 1998, weighted average shares used to compute diluted earnings per share were 4,829,641 and 4,698,567, respectively. (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 Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . 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 $(674,000) and $502,000 at December 31, 1999 and December 31, 1998, respectively. (4) Book value per share and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share, computed by including unallocated common stock held by the Company's Employee Stock Ownership Plan at December 31, 1999 were $10.79 and $10.10, respectively; and at December 31, 1998 were $10.41 and $9.65, respectively. |
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