Cenit Reports Record Earnings Per Share for First Quarter of 2001.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, 2001 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 first quarter 2001 net income of $1,617,000, or record earnings 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 of $.38, representing an increase of 27% in per share earnings compared to earnings of $1,389,000, or $.30 per diluted share, in the first quarter of 2000. Cash basis operating results, which exclude the amortization of 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. , reflected earnings of $1,684,000, or $.39 per diluted share, for the first quarter of 2001 compared to $1,457,000 or $.32 for the first quarter of 2000. President and Chief Executive Officer 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. commented, "We are very pleased with the Company's performance in the first quarter. The reductions in mortgage lending rates that occurred at the end of 2000 and continued in the first quarter of 2001 have fueled our mortgage banking income. This has also resulted in increases in the average balances of our noninterest bearing 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 for those of our customers engaged in closing residential mortgage loans." During the first quarter of 2001, CENIT continued to successfully execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its business strategy focused on growth in its checking, savings, and money market deposits (collectively, "Transaction Deposits") and the portion of its loan portfolio excluding residential mortgage loans (collectively, "Core Banking Loans"). CENIT increased the balance of its Transaction Deposits by $26.2 million, or 11%, to a record $265.4 million at March 31, 2001, compared to $239.2 million at March 31, 2000. Average Transaction Deposits for the quarter ended March 31, 2001, were a record $237.1 million, an increase of 10% compared to $215.1 million for the quarter ended March 31, 2000. Core Banking Loans increased by $21.0 million, or 8%, at March 31, 2001 to a record $271.0 million compared to the balance of Core Banking Loans of $250.0 million at March 31, 2000. Ives commented, "The sustained growth of our Transaction Deposits and Core Banking Loans is a driving force of our profitability. The 20% increase in our average noninterest-bearing deposits compared to the first quarter last year, which amounted to a $12.4 million increase to $74.4 million, is a significant achievement." Ives further stated, "Our net interest margin was 3.66% in the first quarter of 2001 compared to 3.46% in the first quarter of 2000 and 3.59% in the fourth quarter of 2000. We are seeking to improve our net interest margin through increases in our Transaction Deposits and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). our operations. During the first quarter of 2001, the Company implemented a program to reduce nonearning cash balances. Cash balance reductions realized from this program will not substantially begin until the second quarter of 2001. When fully implemented, the Company expects to reduce average nonearning cash by as much as $4 to $5 million, which should enhance our net interest margin in the second quarter." In January January: see month. , 2001, the Company announced approval of additional share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. of up to 200,000 shares, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4.5% of the outstanding shares at the beginning of 2001. During the first quarter of 2001, the Company repurchased 15,100 shares at an average price of $15.58 per share. 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 $2,442,000, or .37% of total assets at March 31, 2001, compared to $1,680,000 and .27%, respectively, at December December: see month. 31, 2000 and $1,245,000 and .19%, respectively, at March 31, 2000. The Company's provision for loan losses for the first quarter of 2001 was $12,000 and net loans charged-off for the first quarter of 2001 were $54,000. The difference between the provision for loan losses and net loans charged-off relates primarily to loan types in which the Company is no longer active and for which provisions for loan losses have previously been made. Ives also commented on the Company's prospects for 2001: "As we look ahead to the remainder of 2001, we expect to continue our successful efforts to grow our Transaction Deposits, particularly our noninterest-bearing deposits, and our Core Banking Loans in 2001. Our mortgage banking operations should continue to improve substantially over 2000 as a result of the downward trend in mortgage lending rates." About CENIT CENIT Bancorp, Inc. is the holding company for CENIT Bank. At March 31, 2001, the Bank has 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. . During the second quarter of 2001, the Company plans to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. its two retail branches located in Hampton, Virginia Hampton is an independent city in Virginia, and therefore not part of any Virginia county. One of the Seven Cities of Hampton Roads, it is on the southeast end of the Virginia Peninsula, bordering on Hampton Roads and Chesapeake Bay. As of the 2000 U.S. . The Bank'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, cenit.com, permits customers to engage in banking services through their personal computer, and provides current and detailed account information all day, every day. The Bank provides a wide range of 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 sixth 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 Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: 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 . 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. Statement 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. with respect to the goals, plans, objectives, intentions, expectations, financial condition, results of operations, future performance and business of CENIT, including, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the earnings outlook of CENIT. These forward-looking statements may be preceded by, followed by or include the words "may", "could", "would", "should", "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. These forward-looking statements involve risks and uncertainties that are subject to change based on various factors, many of which are beyond CENIT's control. Some of these factors include (1) the strength of the U. S. economy in general and the strength of the local economy in which CENIT conducts its operations, which may be different than expected and which may result in, among other things, deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in credit quality or reduced demand for credit; (2) the effects of, and changes in, the interest rate policies of the board of governors of the Federal Reserve system Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , which may be different from those anticipated by CENIT in this News Release; (3) legislation or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes that adversely affect the businesses in which CENIT is engaged; (4) changes in accounting principles, practices, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; and (5) changes in the real estate market generally and in the markets in which CENIT conducts its operations, which may affect the demand for mortgages and other real estate-based loans. This News Release, including the forward-looking statements contained herein, speaks only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and CENIT disclaims any obligation to update or revise the statements contained in this News Release following the date hereof. (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
Three Months
Ended
March 31,
2001 2000
Income Data
Interest income $ 11,507 $ 11,598
Interest expense 5,971 6,204
----------- -----------
Net interest income 5,536 5,394
Provision for loan losses 12 29
----------- -----------
Net interest income after
provision for loan losses 5,524 5,365
Other income 1,756 1,593
Other expenses 4,714 4,787
----------- -----------
Income before income taxes 2,566 2,171
Provision for income taxes 949 782
----------- -----------
Net income $ 1,617 $ 1,389
=========== ===========
Basic earnings per share (1) $ .38 $ .31
Diluted earnings per share (1) $ .38 $ .30
Cash dividends per share $ .16 $ .15
Average Balance Sheet Data
Loans, net $ 468,095 $ 470,134
Investment securities 250 54,816
Mortgage-backed certificates 123,062 83,241
Interest-earning assets 605,393 624,420
Interest-bearing deposits 402,451 406,287
Borrowings 110,811 136,760
Interest-bearing liabilities 513,262 543,047
Assets 645,033 661,403
Liabilities 593,037 610,279
Noninterest-bearing deposits 74,376 61,964
Stockholders' equity 51,996 51,124
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,
2001 2000
Spread and Margin Analysis
Yield on:
Loans, net 7.90% 7.77%
Investment securities 9.60% 5.66%
Mortgage-backed certificates 6.65% 6.87%
Interest-earning assets 7.60% 7.43%
Cost of:
Interest-bearing deposits 4.48% 4.19%
Borrowings 5.28% 5.69%
Interest-bearing liabilities 4.65% 4.57%
Interest rate spread 2.95% 2.86%
Net interest margin 3.66% 3.46%
Ratios
Return on average assets 1.00% .84%
Return on average stockholders' equity 12.44% 10.87%
Cash Basis Operating Results and Ratios (2)
Net income $ 1,684 $ 1,457
Basic earnings per share $ .40 $ .32
Diluted earnings per share $ .39 $ .32
Return on average tangible assets 1.05% .89%
Return on average tangible equity 13.72% 12.18%
Credit Data
Total nonperforming assets, net $ 2,442 $ 1,245
Total nonperforming assets, net,
to total assets .37% .19%
Allowance for loan losses to loans held for
investment, net .81% .83%
Ratio of net charge-offs to average loans .05% .05%
Net charge-offs $ 54 $ 54
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,
2001 2000
Other Income and Other Expense Data
Deposit fees $ 740 $ 708
Merchant processing fees 528 511
Gains on sales of loans 294 132
Fees from accounts receivable program 76 78
Loan servicing fees and late charges 65 72
Commercial mortgage brokerage fees 6 -
Other miscellaneous 47 92
-------- ---------
Total other income $ 1,756 $ 1,593
======== =========
Salaries and employee benefits $ 2,154 $ 2,296
Equipment, data processing and supplies 795 808
Net occupancy expense of premises 543 572
Merchant processing 410 391
Professional fees 185 157
Marketing 77 113
Loan processing 120 110
Amortization of intangibles 85 87
Postage 65 63
Federal deposit insurance premiums 23 25
Expense, gains/losses on sales and
provision for losses on real estate
owned, net 5 6
Other miscellaneous 252 159
-------- ---------
Total other expenses $ 4,714 $ 4,787
======== =========
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,
2001 2000 2000
Balance Sheet Data
Cash and federal funds sold $ 32,284 $ 29,550 $ 32,221
Securities available for
sale at fair value:
Investment securities
(adjusted cost of
$250, $250, and $51,363
respectively) 230 230 50,401
Mortgage-backed certificates
(adjusted cost of $135,137,
$98,361, and $84,913
respectively) 136,729 99,032 84,273
Loans, net 466,784 475,052 465,942
Interest receivable 3,709 3,546 4,178
Real estate owned, net 363 - 217
Federal Home Loan Bank stock,
at cost 5,700 5,050 6,050
Property and equipment, net 12,837 13,087 13,519
Goodwill and other intangibles,
net 2,861 2,946 3,205
Other assets 3,318 3,736 4,123
---------- ---------- ----------
Total assets $ 664,815 $ 632,229 $ 664,129
========== ========== ==========
Noninterest-bearing deposits $ 96,535 $ 88,748 $ 71,304
Interest-bearing deposits 408,029 405,736 426,879
---------- ---------- ----------
Total deposits 504,564 494,484 498,183
Advances from the Federal
Home Loan Bank 88,000 70,000 95,000
Securities sold under
agreements to repurchase 15,098 13,369 15,073
Other liabilities 4,341 2,923 4,817
---------- ---------- ----------
Total liabilities 612,003 580,776 613,073
---------- ---------- ----------
Stockholders' equity(3) 52,812 51,453 51,056
----------- ---------- ----------
Total liabilities and
stockholders' equity $ 664,815 $ 632,229 $ 664,129
=========== ========== ==========
Book value per share (4) $ 12.46 $ 12.11 $ 11.23
Tangible book value
per share (4) $ 11.78 $ 11.42 $ 10.52
Common stock outstanding
excluding unallocated
common stock held by
the Company's Employee
Stock Ownership Plan 4,239,277 4,248,315 4,546,523
Common stock outstanding
including unallocated
common stock held by the
Company's Employee Stock
Ownership Plan 4,430,171 4,443,271 4,753,663
Closing stock price $ 16.75 $ 12.25 $ 10.19
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
March 31, December 31, March 31,
2001 2000 2000
Loan Data
Loans
First mortgage loans:
Single-family $ 193,206 $ 205,263 $ 217,205
Multi-family 7,694 7,620 8,529
Commercial real estate 84,626 84,896 82,269
Construction 82,657 78,762 65,089
Acquisition/development
and residential lots 21,144 22,829 22,241
Commercial business 44,430 46,780 37,760
Consumer:
Equity and second
mortgage 62,112 60,343 57,778
Other consumer 13,064 14,604 14,416
Less: undisbursed portion
of construction and
acquisition and
development loans (44,725) (46,241) (38,068)
---------- ---------- ----------
Gross loans 464,208 474,856 467,219
Allowance for loan losses (3,762) (3,804) (3,835)
Unearned discounts, premiums,
and loan fees, net 1,377 1,464 1,442
---------- ---------- ----------
Loans held for
investment, net 461,823 472,516 464,826
Loans held for sale 4,961 2,536 1,116
---------- ---------- ----------
Loans, net $ 466,784 $ 475,052 $ 465,942
========== ========== ==========
Percentage of gross loans
First mortgage single-family 42% 43% 46%
All other (Core Banking Loans) 58% 57% 54%
---------- ---------- ----------
100% 100% 100%
========== ========== ==========
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Average
Balances
For the
Quarter Ended Balances At
--------------- ------------------------------
March 31, March 31, Dec. 31, March 31,
2001 2000 2001 2000 2000
Deposit Data
Deposits
Noninterest-bearing $74,376 $ 61,964 $ 96,535 $88,748 $ 71,304
Interest-bearing
savings, checking
and money market 162,726 153,151 168,899 162,662 167,881
------- ------- ------- ------- -------
Total transaction
deposits 237,102 215,115 265,434 251,410 239,185
Certificates of
deposit 239,725 253,136 239,130 243,074 258,998
------- ------- ------- ------- -------
Total deposits $476,827 $468,251 $504,564 $494,484 $498,183
======== ======== ======== ======== ========
Percentage of deposits
Noninterest-bearing 16% 13% 19% 18% 14%
Interest-bearing savings,
checking and money
market 34% 33% 34% 33% 34%
------- --------- -------- -------- --------
Total transaction
deposits 50% 46% 53% 51% 48%
Certificates of
deposit 50% 54% 47% 49% 52%
------- --------- -------- ------- --------
Total deposits 100% 100% 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, 2001, 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 4,244,087. For the three months ended March 31, 2000, weighted average shares used to compute basic earnings per share were 4,543,261. 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, 2001, weighted average shares used to compute diluted earnings per share were 4,301,469. For the three months ended March 31, 2000, weighted average shares used to compute diluted earnings per share were 4,599,677. (2) Cash basis operating results exclude the effect on net income of amortization expense applicable to intangible 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 other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as (loss), net of income taxes of $990,000, $403,000 and $(993,000) at March 31, 2001, December 31, 2000 and March 31, 2000, 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 March 31, 2001 were $11.92 and $11.28, respectively; at December 31, 2000 were $11.58 and $10.92, respectively; and at March 31, 2000 were $10.74 and $10.07, respectively. |
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