Cenit Reports Record Net Income and Earnings Per Share Before Merger Expenses.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)--July 25, 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 that earnings for the second quarter of 2001, excluding merger expenses, were a record $1,825,000, or a record $.42 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 $1,543,000 or $.34 per diluted share in the second quarter of 2000, a 24% increase in 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 between the two quarters. On May 4, 2001, the Company announced it had signed a definitive agreement with SouthTrust SouthTrust Corporation was a banking company headquartered in Birmingham, Alabama. In 2004, SouthTrust reached an agreement to merge with Wachovia in a stock-for-stock deal. At the time of the merger with Wachovia was completed, SouthTrust had $53 Billion in assets. Corporation (SouthTrust) (NASDAQ: SOTR SOTR Southtrust Corporation (stock symbol) SOTR Somewhere Over the Rainbow (song) SOTR State of the Region SOTR Standard Oxygen Transfer Rate SOTR Secrets of the Third Reich ) calling for the acquisition of the Company by SouthTrust. The definitive agreement provides for the merger of CENIT Bank with SouthTrust Bank, a subsidiary of SouthTrust. The merger is planned to exchange 1.14 shares of SouthTrust stock for all outstanding certificates representing the Company's shares. The merger is expected to be completed in August 2001 subject to certain conditions, including shareholder and 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. approval. Including merger expenses, net income for the second quarter of 2001 totaled $1,677,000 or $.39 per diluted share. The Company continues to improve its mix of loans and deposits. The Company's "Core Banking Loans," which consist of the loan portfolio other than first mortgage single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. loans, increased by $18.9 million, or 7.3%, in the twelve months ended June June: see month. 30, 2001. The average balance of checking, savings and money market deposits (collectively, "Transaction Deposits") in the second quarter of 2001 was $253.7 million, an increase of $25.8 million, or 11.3%, compared to the second quarter of 2000. Average noninterest-bearing deposits grew to $84.6 million during the second quarter of 2001, an increase of $13.7 million or 19.3% compared to the June 30, 2000 quarter. Average Transaction Deposits were 52% of average total deposits in the second quarter of 2001 compared to 47% a year ago. 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, "Our bank continues to show strong growth in both Core Banking Loans and Transaction Deposits. We expect to continue this trend as part of SouthTrust Bank." 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 $3.4 million, or .52% of total assets at June 30, 2001, compared to $1.1 million and .17%, respectively, at June 30, 2000. Net loan recoveries during the second quarter of 2001 were $5,000, compared to $8,000 of net loan recoveries during the second quarter of 2000. No loan loss provision was recorded in the second quarter of either 2001 or 2000. For the six months ended June 30, 2001, the Company earned a record $3,431,000 or a record $.79 per diluted share, excluding merger expenses, compared to $2,932,000 or $.64 for the same period in 2000. Including merger expenses, the Company earned $3,294,000 or $.76 per diluted share during the first half of 2001. The Company will pay a quarterly cash dividend of 16 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 July July: see month. 27, 2001 to the holders of the Company's common stock as of the close of business on July 12, 2001. On or about July 3, 2001, the Company mailed a proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus to all Company stockholders of record as of June 26, 2001. The Company has scheduled a vote on the merger with SouthTrust at the Company's annual stockholders' meeting. The annual meeting will be held on August 2, 2001 at 5:00 p.m. at the Norfolk Waterside Marriott Marriott has several meanings:
About CENIT CENIT Bancorp, Inc. is the holding company for CENIT Bank. Through its nineteen 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-four 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 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: 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 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 At or for the
Six Months Three Months
Ended Ended
June 30, June 30,
2001 2000 2001 2000
----------------------------------------------------------------------
Income Data
Interest income $ 22,692 $ 23,249 $11,185 $11,651
Interest expense 11,413 12,472 5,442 6,268
------ ------ ------ ------
Net interest income 11,279 10,777 5,743 5,383
Provision for loan losses 12 29 - -
------ ------ ------ ------
Net interest income after
provision for loan losses 11,267 10,748 5,743 5,383
Other income 3,600 3,229 1,844 1,636
Other expenses 9,554 9,396 4,841 4,608
----- ----- ----- -----
Income before income taxes 5,313 4,581 2,746 2,411
Provision for income taxes 2,019 1,649 1,069 868
----- ----- ----- -----
Net income $ 3,294 $ 2,932 $ 1,677 $ 1,543
====== ====== ===== =====
Basic earnings per share (1) $ .78 $ .65 $ .40 $ .34
Diluted earnings per share (1) $ .76 $ .64 $ .39 $ .34
Basic earnings per share
excluding merger expenses (5) $ .81 $ .65 $ .43 $ .34
Diluted earnings per share
excluding merger expenses (5) $ .79 $ .64 $ .42 $ .34
Cash dividends per share $ .32 $ .30 $ .16 $ .15
Average Balance Sheet Data
Loans, net $464,831 $471,054 $461,602 $471,974
Investment securities 250 51,074 250 47,331
Mortgage-backed certificates 124,339 82,277 125,578 81,313
Interest-earning assets 606,796 620,087 608,160 615,573
Interest-bearing deposits 403,305 409,192 404,153 412,097
Borrowings 104,655 125,595 98,568 114,430
Interest-bearing liabilities 507,960 534,787 502,721 526,527
Assets 645,252 657,340 645,469 653,278
Liabilities 592,787 606,377 592,448 602,452
Noninterest-bearing deposits 79,532 66,435 84,630 70,907
Stockholders' equity 52,465 50,963 53,021 50,826
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
----------------------------------------------------------------------
At or for the At or for the
Six Months Three Months
Ended Ended
June 30, June 30,
2001 2000 2001 2000
----------------------------------------------------------------------
Spread and Margin Analysis
Yield on:
Loans, net 7.79% 7.84% 7.69% 7.90%
Investment securities 8.80% 5.64% 9.60% 5.62%
Mortgage-backed certificates 6.60% 6.89% 6.55% 6.92%
Interest-earning assets 7.48% 7.50% 7.36% 7.57%
Cost of:
Interest-bearing deposits 4.33% 4.28% 4.19% 4.37%
Borrowings 5.11% 5.91% 4.91% 6.19%
Interest-bearing liabilities 4.49% 4.66% 4.33% 4.76%
Interest rate spread 2.99% 2.84% 3.03% 2.81%
Net interest margin 3.72% 3.48% 3.78% 3.50%
Ratios
Return on average assets 1.02% .89% 1.04% .94%
Return on average stockholders'
equity 12.56% 11.51% 12.65% 12.14%
Return on average assets, excluding
merger expenses (5) 1.06% .89% 1.13% .94%
Return on average stockholders'
equity, excluding merger
expenses (5) 13.08% 11.51% 13.77% 12.14%
Cash Basis Operating Results and
Ratios (2)
Net income $3,427 $3,068 $1,744 $1,611
Basic earnings per share $ .81 $ .68 $ .41 $ .36
Diluted earnings per share $ .79 $ .67 $ .40 $ .36
Return on average tangible assets 1.07% .94% 1.09% .99%
Return on average tangible equity 13.82% 12.85% 13.90% 13.52%
Net income excluding merger
expenses (5) $3,564 $3,068 $1,891 $1,611
Diluted earnings per share
excluding merger expenses (5) $ .82 $ .67 $ .43 $ .36
Credit Data
Total nonperforming assets, net $3,363 $1,139 $3,363 $1,139
Total nonperforming assets, net,
to total assets .52% .17% .52% .17%
Allowance for loan losses to loans
held for investment, net .83% .81% .83% .81%
Ratio of net charge-offs to
average loans .02% .02% - -
Net charge-offs (recoveries) $ 49 $ 46 $ (5) $ (8)
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
----------------------------------------------------------------------
At or for the At or for the
Six Months Three Months
Ended Ended
June 30, June 30,
2001 2000 2001 2000
----------------------------------------------------------------------
Other Income and Other Expense
Data
Deposit fees $ 1,442 $ 1,374 $ 702 $ 666
Merchant processing fees 1,148 1,117 620 607
Gains on sales of loans 596 259 302 128
Commercial mortgage brokerage fees 17 2 11 2
Fees from accounts receivable
program 99 163 23 85
Loan servicing fees and late
charges 141 130 76 58
Gains on sales of securities
available for sale, net - 16 - 16
Other miscellaneous 157 168 110 74
--- --- --- --
Total other income $ 3,600 $ 3,229 $1,844 $1,636
======= ======= ====== ======
Salaries and employee benefits $ 4,126 $ 4,267 $1,971 $1,971
Equipment, data processing and
supplies 1,575 1,593 780 786
Net occupancy expense of premises 1,099 1,128 556 556
Merchant processing 896 854 486 464
Professional fees 388 345 202 188
Loan processing 252 234 132 124
Amortization of intangibles 170 174 85 87
Postage 127 123 62 59
Federal deposit insurance premiums 46 48 23 24
Advertising and promotion 214 239 137 126
Expense, gains/losses on sales and
provision for losses on real estate
owned, net (15) 39 (20) 33
Merger expenses (5) 168 - 168 -
Other miscellaneous 508 352 259 190
----- ----- ----- -----
Total other expenses $9,554 $ 9,396 $4,841 $4,608
===== ===== ===== =====
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
----------------------------------------------------------------------
June 30, Dec. 31, June 30,
2001 2000 2000
----------------------------------------------------------------------
Balance Sheet Data
Cash and federal funds sold $41,998 $29,550 $36,590
Securities available for sale
at fair value:
Investment securities (adjusted
cost of $250, $250, and $37,367,
respectively) 230 230 36,595
Mortgage-backed certificates
(adjusted costs of $121,799,
$98,361, and $73,823,
respectively) 123,653 99,032 73,019
Loans, net 459,526 475,052 479,535
Interest receivable 3,435 3,546 4,041
Real estate owned, net 697 - 69
Federal Home Loan Bank stock,
at cost 5,050 5,050 6,050
Property and equipment, net 12,003 13,087 13,375
Goodwill and other intangibles, net 2,776 2,946 3,118
Other assets 2,572 3,736 3,639
------- ------- -------
Total assets $651,940 $632,229 $656,031
======= ======= =======
Noninterest-bearing deposits $ 96,525 $ 88,748 $ 88,677
Interest-bearing deposits 413,328 405,736 412,098
------- ------- -------
Total deposits 509,853 494,484 500,775
Advances from the
Federal Home Loan Bank 70,000 70,000 86,000
Securities sold under agreements
to repurchase 14,748 13,369 15,006
Other liabilities 3,942 2,923 3,851
------- ------- -------
Total liabilities 598,543 580,776 605,632
------- ------- -------
Stockholders equity (3) 53,397 51,453 50,399
------- ------- -------
Total liabilities and
stockholders equity $651,940 $632,229 $656,031
======= ======= =======
Book value per share (4) $ 12.58 $ 12.11 $ 11.40
Tangible book value per share (4) $ 11.93 $ 11.42 $ 10.70
Common stock outstanding excluding
unallocated common stock held by
the Companys Employee Stock
Ownership Plan 4,243,858 4,248,315 4,420,420
Common stock outstanding including
unallocated common stock held by
the Companys Employee Stock
Ownership Plan 4,430,690 4,443,271 4,623,498
Closing stock price $ 29.50 $ 12.25 $ 11.88
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
CENIT BANCORP, INC
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
----------------------------------------------------------------------
June 30, Dec. 31, June 30,
2001 2000 2000
----------------------------------------------------------------------
Loan Data
Loans
First mortgage loans:
Single-family $177,781 $205,263 $218,289
Multi-family 7,996 7,620 8,423
Commercial real estate 94,607 84,896 80,266
Construction 76,965 78,762 73,064
Acquisition/development and
residential lots 22,707 22,829 24,289
Commercial business 44,558 46,780 39,628
Consumer:
Equity and second mortgage 64,262 60,343 59,721
Other consumer 12,965 14,604 15,483
Less: undisbursed portion of
construction and acquisition
and development loans (45,573) (46,241) (41,279)
------ ------ ------
Gross loans 456,268 474,856 477,884
Allowance for loan losses (3,767) (3,804) (3,842)
Unearned discounts, premiums, and
loan fees, net 1,452 1,464 1,503
------- ------- -------
Loans held for investment, net 453,953 472,516 475,545
Loans held for sale 5,573 2,536 3,990
------ ------ ------
Loans, net $459,526 $475,052 $479,535
======= ======= =======
Percentage of gross loans
First mortgage single-family 39% 43% 46%
All other (Core Banking Loans) 61% 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
--------------------- -----------
June 30, June 30, Dec. 31, June 30,
2001 2000 2001 2000 2000
----------------------------------------------------------------------
Deposit Data
Deposits
--------
Noninterest-bearing $84,630 $70,907 $96,525 $88,748 $88,677
Interest-bearing
savings, checking
and money market 169,056 156,980 178,755 162,662 159,335
------- ------- ------- ------- -------
Total transaction
deposits 253,686 227,887 275,280 251,410 248,012
Certificates of
deposit 235,097 255,117 234,573 243,074 252,763
------- ------- ------- ------- -------
Total deposits $488,783 $483,004 $509,853 $494,484 $500,775
======= ======= ======= ======= =======
Percentage of deposits
Noninterest-bearing 17% 15% 19% 18% 18%
Interest-bearing savings,
checking and money
market 35% 32% 35% 33% 32%
--- --- --- --- ---
Total transaction
deposits 52% 47% 54% 51% 50%
Certificates of deposit 48% 53% 46% 49% 50%
--- --- --- --- ---
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 six month period and three month period
ended June 30, 2001, weighted average shares used to compute basic
earnings per share were 4,242,513 and 4,240,938, respectively. For the
six months and three months ended June 30, 2000, weighted average
shares used to compute basic earnings per share were 4,516,812 and
4,490,362, respectively.
Diluted earnings per share is calculated by adding common stock
equivalents to the weighted average shares outstanding. For the six
month period and three month period ended June 30, 2001, weighted
average shares used to compute diluted earnings per share were
4,326,470 and 4,351,472, respectively. For the six months and three
months ended June 30, 2000, weighted average shares used to compute
diluted earnings per share were 4,567,611 and 4,535,545, respectively.
(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. Cash basis operating ratios
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
because 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
with generally accepted accounting principles.
(3) Includes accumulated other comprehensive income (loss), net of
income taxes, of $1,156,000, $403,000 and $(977,000) at June 30, 2001,
December 31, 2000 and June 30, 2000, 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 June 30, 2001 were $12.05 and $11.43,
respectively; at December 31, 2000 were $11.58 and $10.92,
respectively; and at June 30, 2000 were $10.90 and $10.23,
respectively.
(5) On May 4, 2001, the Company announced it had signed a
definitive agreement with SouthTrust Corporation calling for the
acquisition of the Company by SouthTrust. As of June 30, 2001, the
Company has incurred $168,000 of expenses, before taxes, related to
this proposed merger.
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