First Southern Bancshares, Inc. and subsidiary report consolidated second quarter 1996 operating results.FLORENCE Florence, city, Italy Florence (flôr`əns, flŏr`–), Ital. Firenze, city (1991 pop. 403,294), capital of Tuscany and of Firenze prov., central Italy, on the Arno River, at the foot of the Apennines. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--July 17, 1996--First Southern Bancshares, Inc. (NASDAQ/NMS:FSTH), the holding company for First Southern Bank announced today its 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: results of operations for the second quarter of 1996. The Company's comparative consolidated operating results include those of First Southern Bank for the full quarter and six-month periods and those of the Company for the period since April 13, 1995, the date of completion of the Company's Initial Public Offering. Mr. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by L. Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, , Jr., President and Chief Executive Officer, noted that both the Company's financial position and results of operations were significantly affected by the special dividend of $3.40 per share declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. and paid during the second quarter of 1996. The Company incurred a consolidated net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $9,000 for quarter ended June June: see month. 30, 1996 as compared to net income of $564,000 reported for the comparable quarter in 1995. The second quarter operating results decreased aggregate 1996 consolidated net income for the six months ended June 30, 1996 to $421,000, or $486,000 less than the $907,000 reported by the Company for the six months ended June 30, 1995. The decreases in 1996 consolidated net income from that reported by the Company for comparable periods in 1995 were primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's second quarter 1996 recognition of $897,000 in compensation and employee benefit charges related to its Employee Stock Ownership and Management Retention and Development Plans coupled with the Company's recognition of a $201,000 reduction in the fair value of certain foreclosed real estate. These decreases were partially offset by increases in net interest income after provision for loan losses of $222,000 and $507,000 for the quarter and six-month periods ended June 30, 1996, respectively, as compared with same periods in 1995. Earnings per share for the second quarter and first six months of 1996 were $0.00 (less than one-half of one cent per share loss) and $0.22, respectively. Earnings per share data is not relevant for comparable 1995 quarterly or year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. periods since the Company had no stockholders prior to completion of its Initial Public Offering on April 13, 1995. Net interest income after provision for loan losses for the three and six-month periods ended June 30, 1996 was $1,935,000 and $3,555,000, respectively, or 13.0% and 16.6%, respectively, greater than the $1,713,000 and $3,048,000 reported by the Company for the comparable periods of 1995. The increases were primarily attributable to higher levels of average excess interest-earning assets over interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities in 1996, which higher levels were primarily resulted from the Company's receipt and investment of the net cash proceeds of its initial public stock offering in April 1995. A decrease in non performing assets Non Performing Asset Any asset that is not effectively producing income. Notes: For example, an overdue loan would be considered non-performing. See also: Asset, Charge Off, Non-Performing Loan at June 30, 1996 to $2,024,000 compared to $2,584,000 at Dec. 31, 1995 was primarily attributable to a decrease in 90-day and over past due loans. At June 30, 1996, the Company provided a $201,000 specific allowance for decline in fair value of certain foreclosed real estate included in non performing assets. Non performing assets to total assets were 1.10% and 1.43% at June 30, 1996 and Dec. 31, 1995, respectively. The total of the allowance for loan losses and specific allowance for decline in fair value of foreclosed real estate to non performing assets at June 30, 1996 was 86.4% as compared to the allowance for loan losses to non performing assets at Dec. 31, 1995 of 58.4%. An increase in total assets of $3,621,000 at June 30, 1996 to $184,476,000 over Dec. 31, 1995 total assets of $180,855,000, or 2.0%, was primarily reflected in an increase of $10,540,000 in net loans and was offset by decreases in other asset accounts, primarily decreases in cash and investments aggregating $6,320,000. The increase in total assets was funded primarily by increases in June 30, 1996 non deposit borrowings of $9,675,000 (from $16,770,000 at Dec. 31, 1995 to $26,445,000 at June 30, 1996) and by an increase of $878,000 in aggregate deposit balances, all of which was offset by the Company's payment of regular and special dividends aggregating $7,013,000. Total equity at June 30, 1996 decreased $6,750,000 to $24,745,000 or 13.4% of total assets from the Dec. 31, 1995 total of $31,495,000 or 17.4% of total assets. The decrease was primarily attributable to the payment of regular and special dividends ($7,013,000) and the acquisition of additional treasury stock 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 the Company's previously announced Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Programs ($1,046,000) and was offset by changes in other equity accounts, primarily the increase in total equity resulting from the recording of the fair value of ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). shares committed for release ($894,000) and net income for the six months ended June 30, 1996 ($421,000). -0-
First Southern Bancshares, Inc. and Subsidiary
Consolidated Financial Highlights - Unaudited
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
Key Operating Data 1995 1996 1995 1996
Total interest income $3,419 $3,751 $6,507 $7,397
Total interest expense 1,597 1,855 3,200 3,692
Net interest income 1,822 1,896 3,307 3,705
Provision for loan losses 109 (39) 259 150
Net interest income after
provision for loan losses 1,713 1,935 3,048 3,555
Non interest income 108 (56) 195 79
Non interest expense 943 2,066 1,825 3,132
Income before income taxes 878 (187) 1,418 502
Income tax expense 314 (178) 511 81
Net income (loss) $ 564 $ (9) $ 907 $ 421
Earnings per share N/A $ - N/A $0.224 Dividends per share - Regular $0.125 $0.125 $0.125 $0.250 Special $ - $3.400 $ - $3.400
At
Key Financial Condition Data Dec. 31, June 30,
1995 1996
Total assets $180,855 $184,476
Loans receivable, net 152,105 162,645
Cash and equivalents 8,971 4,525
Investment and mortgage-backed
securities 11,927 9,351
Deposits 131,867 132,745
Borrowings 16,770 26,445
Total net equity 31,495 24,745
Non performing assets 2,584 2,024
Allowance for loan losses 1,509 1,548
Allowance for loss on real estate
owned - 201
CONTACT: First Southern Bancshares, Inc., Florence Charles L. Frederick, Jr., 205/764-7131 |
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