Cenit Bancorp Announces First Quarter Results.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 28, 1999-- 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 net income for the first quarter of 1999 of $1,465,000, or $.31 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 net income of $1,457,000, or $.30 per diluted share in the first quarter of 1998. During the last twelve months, the Company made fundamental changes to its mix of 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 and interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities in order to improve the future earning capacity of the Company. 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 (collectively, "Core Banking Loans") increased to 49% of the loan portfolio from 36% at March 31, 1998. Additionally, the Company increased the outstanding balances of its noninterest-bearing deposits from 12% of total deposits at March 31, 1998 to 15% at March 31, 1999. Overall, the percentage of checking, savings and money market deposits (collectively, "Transaction Deposits") as a percentage of total deposits increased from 40% to 47% during the last 12 months. The Company's banking initiatives resulted in a $26.6 million, or 13% increase in Transaction Deposits during the last twelve months, including an increase in noninterest-bearing deposits of $10.4 million, or 17%. Core Banking Loans increased by $51.7 million, or 27% during the last twelve months. As a result, the Company's net interest margin increased by 12% to 3.66% for the first quarter of 1999 compared to 3.26% for the first quarter of 1998. The net interest margin increased 3% compared to 1998's fourth quarter net interest margin of 3.57%. 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, "The outstanding growth in our core banking business is a result of a successful strategic initiative we undertook several years ago to focus on commercial and consumer banking opportunities in our local market. We have positioned ourselves as the leader among local community banks as measured by deposit market share and market coverage. We believe this successful strategy of growing transaction deposits and core banking loans is an important means of enhancing an increasingly valuable 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. franchise in the years ahead." 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. declined to .26% of total assets at March 31, 1999, down from .36% at March 31, 1998. Total nonperforming assets were $1.6 million at March 31, 1999 versus $2.6 million at March 31, 1998. Deposit fees increased $56,000, or 9% during the first quarter of 1999 compared to the same quarter in 1998 as a result of growth in the Company's core banking business. Gains on sales of loans increased by $96,000, or 67%, due to increased mortgage banking activity in the first quarter of 1999. The increase in other income during the first quarter of 1999 was more than offset by an increase in other expenses, primarily compensation. Compensation expense increased, in part, due to implementation of the Company's core banking growth initiatives which required additional lenders and retail bankers, as well as wage increases. 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 17, 1999 to the holders of the Company's common stock as of the close of business on May 7, 1999. 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-one twenty-one: see blackjack. 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 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 . -0-
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
At or for the
Three Months
Ended
March 31,
1999 1998
Income Data
Interest income $ 10,727 $ 12,564
Interest expense 5,380 7,177
Net interest income 5,347 5,387
Provision for loan losses 14 204
Net interest income after provision
for loan losses 5,333 5,183
Other income 1,831 1,565
Other expenses 4,875 4,498
Income before income taxes 2,289 2,250
Provision for income taxes 824 793
Net income $ 1,465 $ 1,457
Basic earnings per share (1) $ .32 $ .31
Diluted earnings per share (1) $ .31 $ .30
Cash dividends per share $ .15 $ .10
Average Balance Sheet Data
Loans, net $ 500,197 $ 504,791
Investment securities 52,883 45,001
Mortgage-backed certificates 14,572 87,980
Interest-earning assets 585,132 660,343
Interest-bearing deposits 407,038 445,864
Borrowings 96,708 153,352
Interest-bearing liabilities 503,746 599,216
Assets 623,295 703,629
Liabilities 573,543 653,361
Noninterest-bearing deposits 64,187 47,923
Stockholders' equity 49,752 50,268
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or for the
Three Months
Ended
March 31,
1999 1998
Spread and Margin Analysis
Yield on:
Loans, net 7.55% 7.96%
Investment securities 5.82% 6.08%
Mortgage-backed certificates 7.49% 6.74%
Interest-earning assets 7.33% 7.61%
Cost of:
Interest-bearing deposits 4.13% 4.58%
Borrowings 4.89% 5.41%
Interest-bearing liabilities 4.27% 4.79%
Interest rate spread 3.06% 2.82%
Net interest margin 3.66% 3.26%
Ratios
Return on average assets .94% .83%
Return on average stockholders' equity 11.78% 11.59%
Credit Data
Total nonperforming assets, net $ 1,629 $ 2,616
Total nonperforming assets, net,
to total assets .26% .36%
Allowance for loan losses to loans
held for investment, net .80% .73%
Net charge-offs $ 94 $ 189
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or for the
Three Months
Ended
March 31,
1999 1998
Other Income and Other Expense Data
Deposit fees $ 659 $ 603
Merchant processing fees 514 393
Gains on sales of loans 240 144
Commercial mortgage brokerage fees 158 181
Fees from accounts receivable program 101 105
Loan servicing fees and late charges 73 74
Gains on sales of securities
available for sale, net - 31
Other miscellaneous 86 34
Total other income $ 1,831 $ 1,565
Salaries and employee benefits $ 2,436 $ 2,088
Equipment, data processing and supplies 747 704
Net occupancy expense of premises 526 473
Merchant processing 429 361
Professional fees 174 194
Loan processing 126 107
Amortization of intangibles 89 91
Postage 72 67
Federal deposit insurance premiums 62 67
Marketing 30 36
Expense, gains/losses on sales and
provision for losses on real estate
owned, net 9 70
Other miscellaneous 175 240
Total other expenses $ 4,875 $ 4,498
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
March 31, December 31, March 31,
1999 1998 1998
Balance Sheet Data
Assets $ 635,697 $ 641,056 $ 734,427
Loans, net 494,980 488,661 523,728
Securities available for sale
at fair value:
Investment securities
(adjusted cost of
$54,764, $47,637 and
$46,361, respectively) 54,920 48,117 46,558
Mortgage-backed certificates
(adjusted cost of $14,408,
$16,690 and $90,525,
respectively) 14,738 17,019 91,434
Cash and federal funds sold 42,204 56,945 34,155
Deposits 490,229 496,772 509,445
Noninterest-bearing deposits 73,597 78,712 63,169
Borrowings 91,187 88,084 169,639
Stockholders' equity(2) 49,699 50,076 50,498
Book value per share (3) $10.88 $10.93 $10.67
Tangible book value per share (3) $10.10 $10.13 $9.84
Common stock outstanding
excluding unallocated
common stock held by the
Company's Employee Stock
Ownership Plan 4,568,554 4,581,358 4,734,339
Common stock outstanding including
unallocated common stock held
by the Company's Employee
Stock Ownership Plan 4,791,940 4,808,806 4,977,321
Closing stock price $19.38 $21.50 $26.33
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
March 31, December 31, March 31,
1999 1998 1998
Loan Data
Loans
First mortgage loans:
Single family $ 253,865 $ 251,117 $ 333,090
Multi-family 7,597 7,874 6,260
Commercial real estate 78,651 76,611 58,671
Construction 67,532 70,954 64,467
Acquisition and development 16,959 15,147 19,224
Commercial business 38,314 33,485 25,139
Consumer:
Equity and second
mortgage 52,229 52,845 46,288
Other consumer 14,449 14,864 13,034
Less - undisbursed portion
of construction
and acquisition and
development loans (34,744) (35,463) (43,831)
Gross loans 494,852 487,434 522,342
Less:
Allowance for loan losses (3,944) (4,024) (3,798)
Unearned discounts, premiums,
and loan fees, net 1,355 1,373 1,183
Loans held for
investment, net 492,263 484,783 519,727
Loans held for sale 2,717 3,878 4,001
Loans, net $ 494,980 $ 488,661 $ 523,728
Percentage of gross loans
First mortgage single family 51% 52% 64%
All other (Core Banking Loans) 49% 48% 36%
100% 100% 100%
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
March 31, December 31, March 31,
1999 1998 1998
Deposit Data
Deposits
Noninterest-bearing $ 73,597 $ 78,712 $ 63,169
Interest-bearing savings,
checking and money market 156,215 152,246 140,049
Total transaction deposits 229,812 230,958 203,218
Certificates of deposit 260,417 265,814 306,227
Total deposits $ 490,229 $ 496,772 $ 509,445
Percentage of deposits
Noninterest-bearing 15% 16% 12%
Interest-bearing savings, checking
and money market 32% 30% 28%
Total transaction deposits 47% 46% 40%
Certificates of deposit 53% 54% 60%
Total deposits 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 three month period ended March
31, 1999, weighted average shares used to compute basic
earnings per share were 4,566,074. For the three months
ended March 31, 1998, weighted average shares used to compute
basic earnings per share were 4,729,096.
Diluted earnings per share is calculated by adding common stock
equivalents to the weighted average shares outstanding. For the three
month period ended March 31, 1999, weighted average shares used to
compute diluted earnings per share were 4,654,449. For the three
months ended March 31, 1998, weighted average shares used to compute
diluted earnings per share were 4,868,040.
(2) Includes accumulated other comprehensive income, net of
income taxes of $301,000, $502,000 and $712,000 at March 31,
1999, December 31, 1998 and March 31, 1998, respectively.
(3) 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, 1999 were
$10.37 and $9.63, respectively; at December 31, 1998 were
$10.41 and $9.65, respectively; and at March 31, 1998 were
$10.15 and $9.36, respectively.
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