First United Bancshares Inc. Announces Third Quarter Earnings.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)--Oct. 20, 1997--James V. Kelley, Chairman, President and Chief Executive Officer of First United Bancshares, Inc. (NASDAQ/NMS:UNTD) has reported financial results for the quarter ended Sept. 30, 1997. Net income for the nine months ended Sept. 30, 1997 was $17.56 million, an increase of approximately 3% over the same period in 1996 when net income was $17.08 million. Net income for the three months ended Sept. 30, 1997 increased approximately 8% to $6.04 million compared with $5.59 million for the same period in 1996. Earnings per share for the first nine months of 1997 were $1.78 compared with $1.73 during the same period in 1996, an increase of approximately 3%. Earnings per share for the third quarter of 1997 increased 7% to $.61 per share compared with $.57 during the same period in 1996. Prior period earnings have been restated to reflect the acquisition of Fredonia State Bank which was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . Originally reported earnings per share for the nine months ended Sept. 30, 1996 were $1.69 compared with $1.78 for the same period this year. Earnings per share through September 30 represent a 5% increase over the same period last year on an originally reported basis. Total assets at the end of the period were $1.84 billion, an increase of approximately 5% when compared with $1.76 billion at Sept. 30, 1996. Total deposits at Sept. 30, 1997 were $1.57 billion, while total loans for the same period were $934.99 million. 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 the nine month period was 1.30% and return on average equity was 13.29% on an annualized basis. "Our recent acquisition announcements give First United momentum for a strong fourth quarter and 1998," stated Kelley. "We continue to see growth in our loan volume which improves our earnings performance." Kelley continued, "We are cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. of the fact that earnings per share growth and return on equity for our shareholders are the two primary performance indicators by which we are measured. Therefore, our acquisition plan and internal operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. are designed to reflect those two key factors." 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 11.42% to $184.95 million at Sept. 30, 1997 compared with $165.99 million at Sept. 30, 1996. Book value per share at Sept. 30, 1997 was $18.68 compared with $17.07 at September 30 of last year, an increase of 9.43%. Tangible book value per share was $17.57 as of Sept. 30, 1997, compared with $15.83 at the same time last year. These numbers do not reflect the effect of unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. or losses on securities available-for-sale. First United is a $1.84 billion bank holding company with 9 affiliate 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 30 communities in Arkansas and Texas. In addition, First United has signed a definitive agreement to obtain City Bank & Trust, a $64 million bank in Shreveport, La. Also, First United has signed a definitive agreement to purchase Citizens National Bancshares, Inc., a $263 million bank holding company headquartered in Hope, Ark. Citizens National Bancshares owns Citizens National Bank of Hope, Ark. and Texarkana, Ark. as well as Peoples Bank and Loan Company in Lewisville, Ark. Additionally, First United announced today that a letter of intent has been signed to purchase First Republic Bancshares, Inc. First Republic, with $149 million in total assets, is the parent company of First Republic Bank which operates six locations in Monroe, West Monroe West Monroe, city (1990 pop. 14,096), Ouachita parish, N La., on the Ouachita River, opposite Monroe, in a forest and lake area; inc. 1851. Its chief industries are lumber and paper milling. , Ruston and Rayville, La. Once these mergers are finalized See finalization. , First United will have approximately $2.4 billion in assets and will serve 38 communities in Arkansas, Texas and Louisiana. 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." CONTACT: First United Bancshares, Inc., El Dorado John E. Burns, 870/863-3181 |
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