Cumberland Mountain Bancshares Reports Fourth Quarter and Fiscal 1999 Results.MIDDLESBORO Middlesboro may refer to:
Issues Earnings Expectations for Fiscal 2000 States Strategic Growth Milestones and Strategic Initiatives for 2000 Cumberland Cumberland, former county, England Cumberland, former county, N England. In 1974, Cumberland became part of the nonmetropolitan county of Cumbria. Cumberland, river, United States Cumberland, Mountain Bancshares, Inc. (OTC/BB: CMBN CMBN Center for Molecular and Behavioral Neuroscience ) today announced results for the fourth quarter and fiscal year ended June June: see month. 30, 1999, and its earnings expectations for fiscal 2000. The Company also outlined initiatives and performance targets designed to enhance profitability and return Cumberland Mountain Bancshares to its previous path of strong earnings growth. Financial Highlights The Company recorded a net loss for the fourth quarter of fiscal 1999 of $308,000, or $0.49 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 with net income of $202,000, or $0.36 per diluted share, in the fourth quarter of fiscal 1998. Net interest income for the fourth quarter was $1,095,000 compared with $1,182,000 in the prior-year period. The Company's provision for loan losses increased to $717,000 compared with $218,000 in the same quarter last year. Non-interest income was $231,000 in the fourth quarter compared with $330,000 a year ago. For fiscal 1999, the Company incurred a net loss of $355,000, or $0.57 per diluted share, compared with net income of $751,000, or $1.32 per diluted share, in fiscal 1998. Net interest income for fiscal 1999 was $4,248,000 compared with $4,461,000 in the prior year. The Company's provision for loan losses increased to $1,524,000 in fiscal 1999 from $1,108,000 in the prior year. Non-interest income for the year was $884,000 compared with $1,117,000 a year ago. Commenting on the Company's performance in fiscal 1999, James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. J. Shoffner, president and chief executive officer, stated, "Clearly, we did not deliver the results we were capable of producing this year. Given our record pace of asset and earnings growth over the two preceding years and the strong start in the first quarter, we had every reason to expect that fiscal 1999 would prove to be another record year. Although there were many positives during the year, such as a strong net interest margin, a higher yield on 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 fewer non-performing assets, we devoted far more resources and attention to solving problems and laying the groundwork for meeting our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. objectives than we did capitalizing on new business opportunities. "The actions we took during the year to significantly enhance our long-term growth included the successful opening of our new branch in Knoxville Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. (Fountain City Fountain City may be:
Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. and increasing our reserves due to the changing dynamics of our loan portfolio. The combined impact from these actions in fiscal 1999 was approximately $1.8 million before tax. We also faced increased competition for new loans from secondary market originators, but given our deliberate reduction in loan production it is difficult to quantify Quantify - A performance analysis tool from Pure Software. the effect of this competition." Mr. Shoffner continued, "Commencing with the second quarter, we encountered problems with asset quality in our Pineville There are several places named Pineville in the United States.
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. new loans until we had established new procedures, tighter credit standards Credit Standards The guidelines a company follows to determine whether a credit applicant is creditworthy. and collection efforts. During the third quarter, we hired Betty Bet´ty n. 1. A short bar used by thieves to wrench doors open. The powerful betty, or the artful picklock. - Arbuthnot. 2. Halsey Hal·sey , William Frederick Known as "Bull." 1882-1959. American naval officer who during World War II led American naval forces to several important victories, including the Battle of Leyte Gulf (1944). , formerly the market chief executive officer of Community Trust Bank and a 25-year banking veteran, as our senior vice president and chief lending officer. Betty heads up our loan committee, supervises our lending officers and with the rest of our senior management team is developing a common credit culture to improve our overall asset quality. "We believe we have addressed the isolated asset quality problems and established the standards for credit quality, firm repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan expectation and collection accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. that is essential to driving growth in our loan portfolio and ultimately our earnings. The increased provisions we took during the fourth quarter should be adequate to cover some additional charge-offs we expect in the first and second quarters as we fully implement these standards." Fiscal 2000 Earnings Expectations Assuming significant progress on the strategic initiatives and growth milestones outlined below and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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. and interest rate environment, the Company expects earnings per share for fiscal 2000 to be in the range of approximately $1.10 to $1.30 per diluted share. Strategic Initiatives Cumberland Mountain Bancshares' vision is to be the premier relationship-oriented community bank in southeastern Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. and northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. . In order to make this vision a reality and accelerate its asset and earnings growth, the Company is implementing several strategic initiatives. These initiatives include: 1. Developing a sales and service culture that is relationship driven, focused and targeted to increase retail deposits and consumer loans. 2. Targeting professionals and executives, commercial real estate owners and developers and small business customers through local market strategies. 3. Ensuring that the right products and services are marketed to the right customers through the right delivery channels at the right price. 4. Expanding our customer base and establishing a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. means to service it by developing additional delivery channels. Growth Milestones Specific milestones and performance measures to track Cumberland Mountain Bancshares' success in implementing these initiatives include the following: 1. Grow assets through a disciplined approach at a compound annual growth rate of 7-8% through fiscal 2001. 2. Grow deposits at a compound annual growth rate of 12-13% through fiscal 2001. 3. Decrease non-performing assets as percentage of total assets to less than 1.50% by fiscal 2001. 4. Realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. retail banking organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. with localized Translated into the spoken language of the country. See localization. decision making. 5. Establish third party alliances to offer non-bank services such as insurance, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services, mutual funds, etc. 6. Implement a commercial officer calling program. 7. Continue build up of marketing and sales support infrastructure. 8. Implement telephone 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. 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 banking. Mr. Shoffner concluded, "We encourage our investors to view these milestones and initiatives as a means to measure our progress. We are firmly committed to delivering on these goals and believe that the business strategy we are executing is the proper plan for returning our Company to the levels of profitability that we have previously enjoyed. We will consider all options and strategic alternatives to ensure that we maximize the returns to our shareholders." About Cumberland Mountain Bancshares Cumberland Mountain Bancshares is the holding company for Middlesboro Federal Bank, a relationship-oriented community bank which operates branches in Middlesboro, Cumberland and Pineville, Kentucky Pineville is a city in Bell County, Kentucky, United States. The population was 2,093 at the 2000 census. It is the county seat of Bell CountyGR6. It is located on a small strip of land between the Cumberland River and Pine Mountain. as well as Fountain City (Knoxville), Tennessee. The Company's primary market areas are Bell and Harlan counties Harlan County may refer to:
State Abbr. . Certain statements in this news release 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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but not limited to, general economic conditions, competition, interest rate sensitivity, exposure to regulatory and legislative changes and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. -0-
CUMBERLAND MOUNTAIN BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
June 30,
----------------------------
1999 1998
------------ ------------
INTEREST INCOME: (unaudited)
Investment securities $ 51,000 $ 53,000
Mortgage-backed securities 57,000 85,000
Loans 2,417,000 2,616,000
FHLB stock 31,000 31,000
------------ ------------
Total interest income 2,556,000 2,785,000
------------ ------------
INTEREST EXPENSE:
Deposits 1,280,000 1,153,000
FHLB advances 155,000 435,000
Other borrowed funds 26,000 15,000
------------ ------------
Total interest expense 1,461,000 1,603,000
------------ ------------
NET INTEREST INCOME 1,095,000 1,182,000
------------ ------------
PROVISION FOR LOAN LOSSES 717,000 218,000
------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 378,000 964,000
------------ ------------
NONINTEREST INCOME:
Loan fees and service charges 218,000 183,000
Gain (loss) on sale of investment
securities (6,000) 71,000
Gain on sale of real estate held
for investment 8,000 --
Other 11,000 76,000
------------ ------------
Total noninterest income 231,000 330,000
------------ ------------
NET INTEREST AND NONINTEREST
INCOME 609,000 1,294,000
------------ ------------
NONINTEREST EXPENSES:
Salaries and employee benefits 437,000 350,000
Data processing fees 55,000 85,000
SAIF deposit insurance premium 25,000 14,000
Occupancy and equipment 139,000 98,000
Franchise and other taxes 40,000 32,000
Marketing and other professional
services 86,000 64,000
ESOP 52,000 --
Other 262,000 458,000
------------ ------------
Total noninterest expense 1,096,000 1,101,000
------------ ------------
INCOME (LOSS) BEFORE PROVISION
(BENEFIT) FOR INCOME TAXES (487,000) 193,000
------------ ------------
PROVISION (BENEFIT) FOR INCOME
TAXES (179,000) (9,000)
------------ ------------
NET INCOME (LOSS) $ (308,000) $ 202,000
============ ============
BASIC:
Earnings (loss) per share $ (0.54) $ 0.36
============ ============
Weighted average shares
outstanding 570,713 559,113
============ ============
DILUTED:
Earnings (loss) per share (0.49) 0.36
============ ============
Weighted average shares
outstanding 623,751 559,113
============ ============
Twelve Months Ended
June 30,
----------------------------
1999 1998
------------- ------------
INTEREST INCOME: (Audited)
Investment securities $ 227,000 $ 215,000
Mortgage-backed securities 260,000 355,000
Loans 9,959,000 10,072,000
FHLB stock 122,000 107,000
------------ ------------
Total interest income 10,568,000 10,749,000
------------ ------------
INTEREST EXPENSE:
Deposits 5,155,000 4,596,000
FHLB advances 1,015,000 1,611,000
Other borrowed funds 150,000 81,000
------------ ------------
Total interest expense 6,320,000 6,288,000
------------ ------------
NET INTEREST INCOME 4,248,000 4,461,000
------------ ------------
PROVISION FOR LOAN LOSSES 1,524,000 1,108,000
------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,724,000 3,353,000
------------ ------------
NONINTEREST INCOME:
Loan fees and service charges 788,000 870,000
Gain (loss) on sale of investment
securities 18,000 112,000
Gain on sale of real estate held
for investment 35,000 --
Other 43,000 135,000
------------ ------------
Total noninterest income 884,000 1,117,000
------------ ------------
NET INTEREST AND NONINTEREST
INCOME 3,608,000 4,470,000
------------ ------------
NONINTEREST EXPENSES:
Salaries and employee benefits 1,551,000 1,356,000
Data processing fees 289,000 304,000
SAIF deposit insurance premium 90,000 68,000
Occupancy and equipment 562,000 390,000
Franchise and other taxes 169,000 120,000
Marketing and other professional
services 241,000 171,000
ESOP 208,000 --
Other 977,000 940,000
------------ ------------
Total noninterest expense 4,087,000 3,349,000
------------ ------------
INCOME (LOSS) BEFORE PROVISION
(BENEFIT) FOR INCOME TAXES (479,000) 1,121,000
------------ ------------
PROVISION (BENEFIT) FOR INCOME
TAXES (124,000) 370,000
------------ ------------
NET INCOME (LOSS) $ (355,000) $ 751,000
============ ===========
BASIC:
Earnings (loss) per share $ (0.62) $ 1.32
============ ============
Weighted average shares
outstanding 568,713 568,963
============ ============
DILUTED:
Earnings (loss) per share (0.57) $ 1.32
============ ============
Weighted average shares
outstanding 623,176 568,963
============ ============
CUMBERLAND MOUNTAIN BANCSHARES
CONSOLIDATED BALANCE SHEETS
(Audited)
June 30,
1999 1998
-------------- --------------
BALANCE SHEET SUMMARY:
Total assets $ 129,594,000 $ 135,906,079
Total earning assets 118,736,000 126,415,136
Loans 113,188,000 118,859,000
Allowances for loan losses 1,576,000 798,069
Total deposits 106,905,000 97,719,319
Stockholders' equity 8,708,000 8,760,835
Book value per share $ 12.93 $ 13.23
Average balance sheet data:
Total assets $ 136,500,000 $ 136,715,000
Total earning assets 120,461,000 129,913,000
Loans 110,943,000 119,169,000
Total deposits 104,480,000 97,870,000
Stockholders' equity 8,734,000 9,237,000
Non-performing assets:
Non-accrual loans $ 1,528,000 $ 1,729,000
Loans 90+ days past due and
still accruing - 71,000
Percentage of total loans 1.32% 1.50%
Net charge-offs as percentage to average
loans outstanding 0.67% 0.51%
Performance ratios:
Return on assets (0.26)% 0.60%
Return on average equity (4.06)% 8.70%
Equity to assets 6.40% 6.89%
Net yield on earning assets 3.53% 3.43%
Net interest margin 3.38% 3.53%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion