First City Bancorp, Inc. reports second quarter results.MURFREESBORO Murfreesboro (mûr`frēzbûr'ə), city (1990 pop. 44,922), seat of Rutherford co., central Tenn., on Stones River; inc. 1817. It is the processing center of a dairy, livestock, and farm area. , Tenn.--(BUSINESS WIRE)--July 27, 1995--First City Bancorp, Inc. (AMEX AMEX See: American Stock Exchange :FCT FCT Faculdade de Ciências e Tecnologia (Portuguese University) FCT Fundamentals of Computation Theory FCT Fundação para a Ciência e a Tecnologia (Portuguese Science and Technology Foundation) ) today announced financial results for its second quarter ended June 30, 1995. Net income was down 41.4% to $588,221, or $0.29 per share, compared with net income of $1,004,258, or $0.60 per share, reported during the first six months of 1994. Net interest income decreased 0.5% to $5,727,038 compared with $5,755,427 reported during the same period last year. This decline in net income is primarily due to large increase in the interest expense related to deposits combined with the decision approved by the Board of Directors to repay a loan of the Employee Stock Ownership Plan secured by shares of common stock for which new accounting rules apply as explained more fully below. The early repayment of this loan reduced after-tax earnings by approximately $189,000, or $0.13 per share, for the six months ended June 30, 1995. Net income during the second quarter of 1995 was down 55.2% to $249,416, or $0.11 per share, compared with net income of $556,565, or $0.33 per share for the second quarter of 1994. In addition, net interest income decreased 6.3% to $2,839,255 during the second quarter of 1995 compared to $3,028,937 during the second quarter of 1994. The early repayment of the Employee Stock Ownership Plan's loan reduced after-tax earnings by approximately $97,000, or $0.07 per share, for the quarter ended June 30, 1995. At June 30, 1995, total assets were approximately $342.8 million, an increase of approximately $23.9 million from a year ago. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was approximately $19.8 million. Deposits at June 30, 1995, amounted to approximately $297.1 million, up from $278.0 million a year ago. Loans at June 30, 1995 totaled approximately $168.2 million as compared to approximately $156.2 million at June 30, 1994. First City Bancorp's continuing commitment to superior asset quality is shown by the fact that, at June 30, 1995, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. as a percent of total loans were only 0.19%, and non-performing assets as a percent of total assets were only 0.12%. The capital accounts, at June 30, 1995, reflect an after-tax unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. in the available for sale securities portfolio of $768,584 compared to a $2,148,344 after-tax unrealized loss in the account at December 31, 1994. At June 30, 1995, the available for sale securities portfolio has increased in market value as a result of a decline in market interest rates and the shortening of the average lives of the amortized securities as the payment speeds increase and as the final maturity date of the securities in the portfolio become closer. Management also took steps during the second quarter to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its holdings in some of the securities that were considered undesirable in the current investment market. This divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). resulted in net after-tax loss of approximately $12,000 during the second quarter. The proceeds from the sales of these securities were reinvested in higher yield securities with shorter lives. As referred to in the second paragraph above, new accounting requirements became effective during 1994 for leveraged Employee Stock Ownership Plans (ESOP's) which had acquired shares of the sponsor's common stock after December 31, 1992. First City Bancorp's ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). shares acquired in 1993 are subject to these new accounting provisions. These provisions require that, as First City makes contributions to the ESOP to repay the ESOP's debt, First City must recognize compensation expense based on the fair market value of the common shares that are committed to be released by the contribution, ratably over the period of time ESOP participants perform services. After reviewing the 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. potential impact of these new accounting requirements, the Board of Directors has determined to repay a $544,000 loan relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the shares acquired in 1993 during 1995. The additional compensation expense that will be recognized as a result of the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of this loan will be prorated over each quarter of 1995. The increase in net after-tax expense for the first six months of 1995, as a result of the acceleration of the ESOP debt payment, was approximately $189,000. There will be larger increases in compensation expense for each of the remaining quarters of 1995, the amount of which will be dictated dic·tate v. dic·tat·ed, dic·tat·ing, dic·tates v.tr. 1. To say or read aloud to be recorded or written by another: dictate a letter. 2. a. by the average market price of First City Bancorp's common stock during each respective quarter. First City Bancorp, Inc. is a bank holding company whose subsidiaries include First City Bank and Citizens Bank. First City Bank, a Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. state-chartered bank is headquartered in Murfreesboro and also has locations in Smyrna, Nashville and Columbia. Citizens Bank is also a Tennessee state-chartered bank headquartered in Smithville with additional locations in Ardmore and Elkton. In addition, Tennessee Credit Corporation, a wholly-owned subsidiary of First City Bank, is a consumer finance company with offices in Murfreesboro, Lebanon, Dickson, Cookeville, Nashville, Franklin, Lewisburg, Tullahoma and McMinnville. First City Bancorp, Inc. entered into a definitive agreement on July 5, 1995 to merge with First American Corporation
Officially referred to as The First American Corporation (FAC) , (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 :FATN) of Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. . The transaction is expected to be completed during the first quarter of 1996. The common stock of First City Bancorp, Inc. is traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol "FCT." -0-
FIRST CITY BANCORP, INC.
Unaudited Financial Highlights
Six Months Ended Quarter Ended
June 30, June 30,
1995 1994 1995 1994
Total interest
income $12,623,788 $10,519,591 $ 6,436,578 $ 5,539,722
Total interest
expense 6,896,750 4,764,164 3,597,323 2,510,785
Net interest
income 5,727,038 5,755,427 2,839,255 3,028,937
Provision for
possible loan
losses 147,342 296,824 88,272 123,411
Income after
provision for
possible loan
losses 5,579,696 5,458,603 2,750,983 2,905,526
Total non-interest
income 1,752,273 1,477,085 925,659 778,015
Total non-interest
expense 6,440,417 5,451,920 3,360,579 2,838,647
Income before
income taxes 891,552 1,483,768 316,063 844,894
Income tax
expenses 303,331 479,510 66,647 288,329
Net income $ 588,221 $ 1,004,258 $ 249,416 $ 556,565
Weighted-average
primary common
stock equivalents
outstanding 1,440,379 1,419,547 1,454,897 1,420,503
Primary earnings
per common share
equivalent $ 0.29 $ 0.60 $ 0.11 $ 0.33
Weighted-average
fully diluted
common stock
equivalents
outstanding 1,608,068 1,585,180 1,623,730 1,586,302
Fully diluted
earnings per
common share
equivalent $ 0.29 $ 0.56 $ 0.11 $ 0.31
June 30,
1995 1994
Total assets $342,821,152 $318,888,483
Loans, net $168,186,975 $156,232,342
Deposits $297,099,474 $277,556,994
Shareholders' equity $ 19,753,977 $ 17,120,622
CONTACT: First City Bancorp, Inc., Murfreesboro William E. Rowland, 615/898-1111 or First City Bank, Murfreesboro Robert B. Murfree, 615/898-1111 |
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