First City Bancorp, Inc. reports year-end 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)--Feb. 7, 1996--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 year ended Dec. 31, 1995. Net income decreased 47.2% to $1,128,502, or $0.52 per share, compared with net income of $2,138,927, or $1.28 per share, reported during 1994. Net interest income increased 2.9% to $11,820,902 compared with $11,485,019 reported during the same period last year. Net income during the fourth quarter of 1995 decreased 65.7% to $216,605, or $0.08 per share, compared with net income of $631,885 or $0.39 per share for the fourth quarter of 1994. Net interest income increased 7.7% to $3,028,203 during the fourth quarter of 1995 compared to $2,811,492 during the fourth quarter of 1994. Exclusive of certain non-recurring costs, which are discussed below, net income would have been $2,270,707, or $1,142,205 higher than the reported 1995 net income, an increase of approximately $0.76 per share to $1.28 per share for 1995. Net income for the fourth quarter of 1995 would have been approximately $632,000 higher, or a increase of approximately $0.40 per share to $0.48 per share had these non-recurring costs not been recognized. The non-recurring costs were: 1. Merger related costs - The costs related to the merger reduced after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. earnings by approximately $182,000, or $0.12 per share for the year ended Dec. 31, 1995 and approximately $7,000 for the fourth quarter of 1995. 2. ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). Debt Reduction - The costs related to a decision by the Board of Directors for early repayment of the loan to the Employee Stock Ownership Plan (the "ESOP") reduced after-tax earnings by approximately $830,000, or $0.55 per share, for the year ended Dec. 31, 1995 and approximately $471,000, or $0.30 per share for the fourth quarter of 1995. 3. 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). of Security Portfolio - Management also took steps 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 holding in some of the investment 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 a net after-tax loss of approximately $130,000, or $0.09 per share, during 1995 and approximately $154,000, or $0.10 per share during the fourth quarter of 1995. The proceeds from the sales of these securities were reinvested in higher yielding securities with shorter lives. At Dec. 31, 1995, total assets were approximately $360.05 million, an increase of approximately $24.5 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 $21.5 million. Deposits at Dec. 31, 1995, amounted to approximately $317.9 million, up from $295.3 million a year ago. Loans at Dec. 31, 1995, totaled approximately $171.3 million as compared to approximately $152.8 million at Dec. 31, 1994. At Dec. 31, 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 percentage of total loans were only 0.22%, and non-performing assets as a percentage of total assets were only 0.12%. The capital accounts at Dec. 31, 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 $647,208 compared to $2,148,344 after-tax unrealized loss in the account at Dec. 31, 1994. Since Dec. 31, 1994, 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. 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 Dec. 31, 1992. First City Bancorp's ESOP shares that were 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, the Company 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 potential impact of these new accounting requirements on 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. earnings prospects, the Board of Directors determined to repay a $544,000 loan during 1995 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the shares acquired in 1993. This loan was paid off during the third quarter of 1995. As a result of this action, fourth quarter earnings were reduced by approximately $471,000, or $0.30 per share. First City Bancorp, Inc. is a bank holding company whose subsidiaries include First City Bank and Citizens Bank. First City Bank is a Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. state-chartered bank headquartered in Murfreesboro and also has locations in Smyrna Smyrna, city, United States Smyrna, city (1990 pop. 30,981), Cobb co., NW Ga., a residential suburb of Atlanta; inc. 1872. Manufactures include computer equipment, building materials, plastics, ordnance, and chemicals. , 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, Tenn. A shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. to approve the merger is scheduled for March 7, 1996, for shareholders of record as of Dec. 31, 1995. The transaction is expected to be completed in March 1996. -0-
First City Bancorp, Inc.
Unaudited Financial Highlights
Year Ended Quarter Ended
December 31, December 31,
1995 1994 1995 1994
Total interest
income $25,871,709 $22,059,550 $ 6,641,767 $ 5,901,566
Total interest
expense 14,050,807 10,574,531 3,613,564 3,090,074
Net interest
income 11,820,902 11,485,019 3,028,203 2,811,492
Provision for
possible loan
losses 319,179 561,899 77,705 137,424
Income after
provision for
possible loan
losses 11,501,723 10,923,120 2,950,498 2,674,068
Total non-interest
income 3,301,631 3,096,180 926,544 939,441
Total non-interest
expense 12,786,441 10,729,742 3,430,942 2,573,114
Income before
income taxes 2,016,913 3,289,558 446,100 1,040,395
Income tax
expenses 888,411 1,150,631 229,495 408,510
Net income $ 1,128,502 $ 2,138,927 $ 216,605 $ 631,885
Weighted average
primary common
stock equivalents
outstanding 1,510,101 1,418,090 1,588,347 1,419,462
Primary earnings
per common share
equivalent $ 0.52 $ 1.28 $ 0.08 $ 0.39
Weighted average
fully diluted
common stock
equivalents
outstanding 1,675,246 1,583,821 1,753,734 1,585,104
Fully diluted
earnings per
common share
equivalent $ 0.52 $ 1.20 $ 0.08 $ 0.36
December 31,
1995 1994
Total assets $360,493,457 $336,047,469
Loans, net $171,294,283 $152,824,172
Deposits $317,932,510 $295,278,977
Shareholders' equity $ 21,535,621 $ 16,726,991
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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