First United Bancshares, Inc. Announces 1998 Results.EL DORADO El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. , Ark.--(BUSINESS WIRE)--Jan. 19, 1999--James V. Kelley Kelley may refer to any of the following: People
Net income before merger-related costs was $30.8 million or $1.22 per share for 1998 as compared to $26.2 million or $1.03 per share for 1997. Including merger-related costs, net income for 1998 was $30.3 million or $1.20 per share in comparison to $25.8 million or $1.02 per share for 1997. During 1998, First United acquired Citizens National Bancshares, Inc. in Hope, Arkansas Hope is a small city in Hempstead County, Arkansas, United States. According to 2006 Census Bureau estimates, the population of the city is 10,467.[1] The city is the county seat of Hempstead CountyGR6. ("Citizens") and First Republic Bancshares, Inc. in Monroe, Louisiana The city of Monroe is the parish seat of Ouachita Parish, in the US state of Louisiana. [1] [2] It is the principal city of the Monroe, Louisiana Metropolitan Statistical Area (pop. ("First Republic") in transactions accounted for as poolings of interests. Costs associated with these transactions totaled $0.6 million in 1998 and $0.4 million in 1997. All periods prior to these mergers have been restated to include the results of Citizens and First Republic. Net income was $7.5 million or $0.30 per share for the three months ended December 31, 1998. Net income for the same period in 1997 was $2.8 million or $0.11 per share. Results for 1997 included increased provisions to the allowance for loan losses at Citizens and First Republic totaling $1.7 million. Additionally, the fourth quarter of 1997 included charges for certain one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. employee benefits totaling $2.2 million. "Although the Company did not meet its earnings goals for 1998, we are pleased with the accomplishments of the year considering the completion of two mergers, the conversion of four banks to the First United data center, internal asset growth of 7% and internal loan growth of 11.5%", stated Kelley. "The actions taken in 1998 should prepare us for an improved 1999." Total assets at the end of the period were $2.52 billion, an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 7% when compared with $2.36 billion at December 31, 1997. Total deposits rose approximately 7% to $2.13 billion from $1.99 billion at the end of 1997. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets for 1998 was 1.26% and return on average equity was 12.64%. Net interest margin was 4.40% for 1998 compared to 4.43% in 1997. Total loans increased 11.5% to $1.36 billion compared to $1.22 billion, a $140 million increase. Classified loans as a percentage of equity capital and as a percentage of total loans were 13.64% and 2.53%, respectively. The reserve for loan losses as a percentage of total loans was 1.27%, while past due loans 30 days or more were 2.36%. 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. totaled .79% of total loans and reserve coverage of non-performing loans was 1.62 times. 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. rose approximately 9.0% to $255.6 million at December 31, 1998 compared with $234.5 million at December 31, 1997. Book value per share at December 31, 1998 was $10.11 compared with $9.27 at December 31st of last year. Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share was $9.57 compared to $8.71, a 10% increase over the previous year. First United and its affiliates have 1,000 full-time equivalent Full-time equivalent (FTE) is a way to measure a worker's involvement in a project, or a student's enrollment at an educational institution. An FTE of 1.0 means that the person is equivalent to a full-time worker, while an FTE of 0.5 signals that the worker is only half-time. employees. First United is a multi-bank holding company with thirteen affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. banks and a non-bank subsidiary Non-bank subsidiaries, are firms owned by bank holding companies which offer non-bank products and services, such as insurance and investment advice, and do not offer FDIC insured banking products, such as checking and savings accounts. , First United Trust Company, N.A., serving 38 communities in Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , Texas and Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. .
First United's stock is listed on the 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 National Market System under the symbol "UNTD." -0-
FIRST UNITED BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
December 31,
1998 1997
ASSETS
Cash and Due from Banks $ 91,207 $ 83,291
Short-term Investments 87,624 82,718
Securities Available-for-Sale 684,662 664,482
Investment Securities 226,083 237,424
Total Loans 1,359,485 1,219,600
Unearned Discount (6,324) (6,262)
Allowance for Loan Losses (17,302) (17,694)
Net Loans 1,335,859 1,195,644
Premises and Equipment 42,739 41,441
Goodwill 10,674 11,636
Other Real Estate 1,399 983
Other Assets 36,210 37,636
----------- -----------
TOTAL ASSETS $2,516,457 $2,355,255
LIABILITIES
Deposits:
Demand $ 338,414 $ 309,699
Savings and
Interest-bearing Demand 588,311 536,338
Time 1,207,226 1,144,122
Total Deposits 2,133,951 1,990,159
Short-term Borrowings 82,470 75,017
Other Liabilities 20,892 20,844
Notes Payable 23,511 34,686
----------- -----------
TOTAL LIABILITIES 2,260,824 2,120,706
CAPITAL ACCOUNTS
Preferred Stock (Par Value of $1.00;
500 shares authorized in 1998 and
1997, none outstanding) 0 0
Common Stock (Par value of $1.00;
50,000 shares authorized; 25,294
shares issued and outstanding in
1998 and 1997) 25,294 25,294
Surplus 26,610 25,758
Undivided Profits 200,769 181,083
Treasury Stock 0 (110)
Net Unrealized Gains (Losses) on
Securities Available-for-Sale,
Net of Tax 2,960 2,524
----------- -----------
TOTAL CAPITAL ACCOUNTS 255,633 234,549
TOTAL LIABILITIES AND CAPITAL ACCOUNTS $2,516,457 $2,355,255
FIRST UNITED BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data) Three Months Ended
December 31,
1998 1997
INTEREST INCOME
Interest and Fees on Loans $ 30,648 $ 27,893
Interest on Securities - Taxable 10,923 12,317
- Non-Taxable 1,659 1,591
Interest on Federal Funds Sold and
Securities Purchased Under Agreements
to Resell 1,093 801
Interest on Deposits in Banks 364 525
----------- -----------
TOTAL INTEREST INCOME 44,687 43,127
INTEREST EXPENSE
Interest on Deposits 19,833 18,998
Interest on Federal Funds Purchased
and Securities Sold Under Agreements
to Repurchase 930 231
Interest on Notes Payable 352 1,351
----------- -----------
TOTAL INTEREST EXPENSE 21,115 20,580
NET INTEREST INCOME 23,572 22,547
Provision for Loan Losses 1,050 3,012
----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 22,522 19,535
OTHER INCOME
Service Charges on Deposit Accounts 2,461 2,799
Trust Income 553 479
Security Gains (Losses) 152 51
Other Operating Income 1,507 2,055
----------- -----------
TOTAL OTHER INCOME 4,673 5,384
OTHER EXPENSE
Salaries 7,052 7,377
Pension and Other Employee Benefits 1,429 3,473
Net Occupancy Expense 1,346 1,957
Equipment Expense 1,147 1,926
Data Processing Expense 831 708
Other Operating Expenses 4,653 6,912
----------- -----------
TOTAL OTHER EXPENSE 16,458 22,353
INCOME BEFORE INCOME TAX EXPENSE 10,737 2,566
INCOME TAX EXPENSE 3,193 (200)
----------- -----------
NET INCOME $ 7,544 $ 2,766
----------- -----------
BASIC EARNINGS PER SHARE $ 0.30 $ 0.11
----------- -----------
FULLY DILUTED EARNINGS PER SHARE $ 0.30 $ 0.11
----------- -----------
CASH DIVIDENDS PER SHARE $ 0.115 $ 0.10
----------- -----------
AVERAGE SHARES ISSUED AND OUTSTANDING 25,294 25,294
FIRST UNITED BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data) Year Ended
December 31,
1998 1997
INTEREST INCOME
Interest and Fees on Loans $ 120,035 $ 108,790
Interest on Securities - Taxable 44,934 50,739
- Non-Taxable 6,912 6,362
Interest on Federal Funds Sold and
Securities Purchased Under Agreements
to Resell 4,179 2,856
Interest on Deposits in Banks 1,156 1,249
----------- -----------
TOTAL INTEREST INCOME 177,216 169,996
INTEREST EXPENSE
Interest on Deposits 77,639 73,655
Interest on Federal Funds Purchased
and Securities Sold Under Agreements
to Repurchase 3,809 3,229
Interest on Notes Payable 1,358 2,455
----------- -----------
TOTAL INTEREST EXPENSE 82,806 79,339
NET INTEREST INCOME 94,410 90,657
Provision for Loan Losses 3,230 5,166
----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 91,180 85,491
OTHER INCOME
Service Charges on Deposit Accounts 9,358 9,787
Trust Income 2,201 2,287
Security Gains (Losses) 444 99
Other Operating Income 6,255 5,983
----------- -----------
TOTAL OTHER INCOME 18,258 18,156
OTHER EXPENSE
Salaries 26,966 26,255
Pension and Other Employee Benefits 8,078 9,562
Net Occupancy Expense 5,218 5,831
Equipment Expense 4,063 5,007
Data Processing Expense 4,497 3,127
Merger-related Costs 567 385
Other Operating Expense 16,829 18,458
----------- -----------
TOTAL OTHER EXPENSE 66,218 68,625
INCOME BEFORE INCOME TAX EXPENSE 43,220 35,022
INCOME TAX EXPENSE 12,952 9,250
----------- -----------
NET INCOME $ 30,268 $ 25,772
----------- -----------
BASIC EARNINGS PER SHARE $ 1.20 $ 1.02
----------- -----------
FULLY DILUTED EARNINGS PER SHARE $ 1.20 $ 1.02
----------- -----------
CASH DIVIDENDS PER SHARE $ 0.445 $ 0.385
----------- -----------
AVERAGE SHARES ISSUED AND OUTSTANDING 25,294 25,294
FIRST UNITED BANCSHARES, INC.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands) Year Ended
December 31,
1998 1997
SELECTED AVERAGE BALANCES
Total Assets $2,399,605 $2,344,852
Earning Assets 2,254,746 2,127,887
Loans, Net of Unearned Income 1,313,359 1,186,135
Total Securities 875,404 902,394
Total Deposits 2,111,081 1,994,200
NIB Demand Deposits 323,082 322,648
Large Time Deposits 354,457 330,904
Interest Bearing Liabilities 72,774 77,098
Shareholders' Equity 239,453 217,467
SELECTED PERIOD END DATA
Total Assets $2,516,457 $2,355,255
Securities Available-for-Sale 684,662 664,482
Investment Securities 226,083 237,424
Loan, Net 1,335,859 1,195,644
Large Time Deposits 400,031 372,242
Total Deposits 2,133,951 1,990,159
Long-term Debt - Parent Only 10,557 11,657
Shareholders' Equity 255,633 234,549
Book Value per Share 10.11 9.27
Tangible Book Value per Share 9.57 8.71
Non-accrual Loans 6,777 4,557
Loans Past Due 90 Days+ 2,812 2,116
Restructured Loans 1,068 878
Gross Charge-offs 5,670 4,699
Recoveries 2,048 1,849
PERFORMANCE RATIOS
Return on Average Assets 1.26% 1.10%
Return on Average Equity 12.64% 11.85%
Net Interest Margin (FTE) 4.40% 4.43%
Allowance for Loan Losses to Loans 1.27% 1.45%
Equity to Assets 10.05% 9.86%
Leverage Ratio 9.67% 9.40%
Total Risk-based Capital 17.65% 17.51%
Tier I Risk-based Capital Ratio 16.40% 16.26%
Nonperforming Loans to Total Loans .79% .62%
Net Charge-offs (Recoveries) to
Average Loans, Net of Unearned Income .28% .24%
Efficiency Ratio 56.41% 61.06%
MISCELLANEOUS
Net Interest Income (TE) $ 99,098 $ 94,226
Intangible Assets - Goodwill 10,674 11,636
Purchased Mortgage Servicing Rights 224 341
Mortgage Loan Servicing Portfolio 133,999 125,180
Total Trust Assets (in millions)
-Discretionary 492,037 460,722
-Non-discretionary 130,524 132,522
-Bond Issues 57,965 31,628
Tier I Capital 241,999 220,389
Tier II Capital 18,443 16,944
Risk Weighted Assets 1,475,473 1,355,534
Common Stock Closing Price (NASDAQ) 17.75 21.00
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