Florida Banks, Inc. Reports Fourth Quarter Earnings.JACKSONVILLE Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. , Fla.--(BUSINESS WIRE)--Jan. 11, 1999--Florida Banks, Inc. (Nasdaq/NM:FLBK) today reported a loss of $(.07) per share for the fourth quarter and a loss of $(1.42) per share for the year ended December December: see month. 31, 1998. As previously reported, the loss for the year consisted primarily of non-cash, non-recurring expenses associated with the merger transaction in which Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and Banks, Inc. acquired First National Bank of Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. on August 4, 1998. Charles E. Hughes Charles E. Hughes may refer to:
A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. were recorded with a corresponding increase in additional paid in capital and therefore had no effect on the Company's total 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. or book value. Florida Banks, Inc. completed its initial public offering of 4.1 million common shares in August 1998. "Our operating performance for the fourth quarter and year reflected deposit and asset growth ahead of our business plan and loan growth in line with our expectations for 1998," Hughes said. "Community response to our banks and our concept of the highest level of personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. service has been excellent. In the past five months we have completed the acquisition of the bank in Tampa, opened a Jacksonville banking office and, this month, will open an office in Gainesville Gainesville. 1 City (1990 pop. 84,770), seat of Alachua co., N central Fla.; inc. 1869. The Univ. of Florida is a major source of employment in the city. Agriculture and the manufacture of electronic equipment add to the economy. . Our statewide expansion plans are ahead of schedule and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about for the growth prospects of Florida Banks in 1999." Total outstanding loans increased 99% from $33.8 million at December 31, 1997, to $67.3 million at December 31, 1998. Total deposits increased 42% from $45.5 million to $64.6 million for the same time period. "This growth reflects the demand for banking services within the small- and medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized business sector on which our banking model is based," Hughes said. Net interest income increased 120% from $507,000 for the fourth quarter of 1997 to $1.1 million for the fourth quarter of 1998. Net interest income increased 49% from $2.0 million for the year ended December 31, 1997, to $3.0 million for the year ended December 31, 1998. This increase is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the growth in the Company's investment and loan portfolios as a result of the infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. of capital from the initial public offering. Non-interest income increased 5% from $134,000 for the quarter ended December 31, 1997, to $141,000 for the quarter ended December 31, 1998. Non-interest income increased 18% from $504,000 for the year ended December 3, 1997 to $594,000 for the year ended December 31, 1998. The increase in non-interest income is primarily attributable to increases in service fees associated with the growth in deposit accounts, and an increase in the gain on sale of loans. Non-interest expense increased 186% from $484,000 for the fourth quarter of 1997 to $1.4 million for the fourth quarter of 1998. Non-interest expense, net of non-recurring, non-cash charges of $3.9 million increased 99% from $1.8 million for the year ended December 31, 1997 to $3.7 million for 1998. The increase in non-interest expense is primarily attributable to non-recurring expenses related to the acquisition of First National Bank of Tampa and the opening of the Jacksonville banking office. The provision for loan losses increased from $15,000 at December 31, 1997, to $522,000 at December 31, 1998. For the year, the provision for loan losses increased from $60,000 at December 31, 1997, to $629,000 at December 31, 1998. In the fourth quarter of 1998, management determined that a specific reserve in the amount of $529,000 should be established for an impaired See assistive technology. loan made to a professional organization in the Tampa market. "We believe there is potential for partial or full collection of the impaired loan and the borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the has indicated the intent to repay the debt," Hughes said. "However, due to the unknown future cash flows from the borrower, a specific reserve equal to 100% of the non-collateralized portion of the credit has been established." "We have also reviewed all outstanding credits of a similar nature and determined that none of these other credits possess the weakness identified with the impaired loan. The provision (benefit) for income taxes decreased from a provision of $54,000 for the three months ended December 31, 1997 to a benefit of $(227,000) for the three months ended December 31, 1998, and decreased from a provision of $232,000 for the year ended December 31, 1997 to a benefit of $(198,000) for the year ended December 31, 1998. The provision for income tax represents the estimated income tax due for the indicated period and the benefit represents an estimate of the future tax benefit or reduction in income taxes from losses for the indicated period. Florida Banks, Inc. is a Jacksonville-based holding company for a statewide community banking system in Florida's largest and fastest-growing markets. The Company's banking subsidiary, Florida Bank, N.A., currently operates offices in Tampa, Jacksonville and Alachua County. Florida Bank of Tampa (formerly First National Bank of Tampa) opened in July July: see month. 1988, Florida Bank of Jacksonville opened in August 1998 and Florida Bank of Alachua County (Gainesville) will commence full service operations in January January: see month. 1999. The Company's community banking approach emphasizes responsive and personalized service to its customers at a level normally reserved for only the very best customers of large banks. Local banking affiliates of Florida Banks, Inc. offer a range of traditional banking products and services to small and medium-sized businesses and professionals. Florida Banks, Inc. also provides personal banking services for the owners and executives of those businesses. Certain statements in this news release contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, general economic conditions, competition, interest rate sensitivity, exposure to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and legislative changes and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. Tables follow -0-
FLORIDA BANKS, INC.
CONDENSED BALANCE SHEETS (Unaudited)
---------------------------------------------------------------------
December 31,
------------------------------
1998 1997
ASSETS
CASH AND DUE FROM BANKS $ 4,295,139 $ 2,788,211
FEDERAL FUNDS SOLD 6,950,000 10,245,000
REPURCHASE AGREEMENTS PURCHASED 9,700,000 -
------------ -----------
Total cash and cash
equivalents 20,945,139 13,033,211
INVESTMENT SECURITIES:
Available for sale, at fair value
(cost $21,949,929 and $10,445,885
at December 31, 1998 and 1997,
respectively) 21,949,929 10,452,185
Other investments 291,850 313,050
LOANS:
Commercial real estate 25,325,557 15,281,442
Commercial 33,103,488 13,157,905
Residential mortgage 6,046,666 3,268,704
Consumer 2,020,954 1,222,045
Credit card and other loans 796,120 869,031
------------ -----------
Total loans 67,292,785 33,799,127
Allowance for loan losses (1,073,346) (481,462)
Net deferred loan fees (162,334) (78,765)
------------ -----------
Net loans 66,057,105 33,238,900
PREMISES AND EQUIPMENT, NET 822,283 511,503
ACCRUED INTEREST RECEIVABLE 478,700 332,031
DEFERRED INCOME TAXES, NET 2,746,670 2,420,271
OTHER ASSETS 424,854 94,628
------------ -----------
TOTAL ASSETS $113,716,530 $60,395,779
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS:
Noninterest-bearing demand $ 11,840,430 $ 6,441,785
Interest-bearing demand 3,913,509 3,073,535
Regular savings 17,910,355 5,874,911
Money market accounts 1,340,779 1,348,431
Time $100,000 and over 9,549,263 10,214,403
Other time 20,066,271 18,507,107
------------ -----------
Total deposits 64,620,607 45,460,172
REPURCHASE AGREEMENTS SOLD 5,668,664 5,911,513
TREASURY TAX AND LOANS 49,813 2,405,604
ACCRUED INTEREST PAYABLE 218,897 198,817
ACCOUNTS PAYABLE AND ACCRUED EXPENSES 432,608 106,038
------------ -----------
Total liabilities 70,990,589 54,082,144
------------ -----------
SHAREHOLDERS' EQUITY:
Common stock 58,527 12,152
Additional paid-in capital 47,020,428 5,537,996
Preferred stock
Warrants 164,832
Retained earnings (accumulated
deficit) (deficit of $8,434,037
eliminated upon
quasi-reorganization on
December 31, 1995) (4,506,130) 759,707
Unrealized gain on available for
sale investment securities,
net of tax (11,716) 3,780
------------ -----------
Total shareholders' equity 42,725,941 6,313,635
------------ -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 113,716,530 $60,395,779
============= ===========
FLORIDA BANKS, INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
-------------------------------------------------------------------------------------------------------------------------------------------------------
Three Month Period Ended Twelve Month Period Ended
December 31, December 31,
------------------------ -------------------------
1998 1997 1998 1997
---------- ---------- ----------- -----------
INTEREST INCOME:
Loans, including
fees $1,189,487 $ 844,780 $ 3,826,324 $ 3,352,741
Investment
securities 225,672 159,197 874,374 583,590
Federal funds sold 68,369 81,914 454,257 365,658
Repurchase
agreements
purchased 277,165 277,165
---------- ---------- ----------- -----------
Total interest
income 1,760,693 1,085,891 5,432,120 4,301,989
---------- ---------- ----------- -----------
INTEREST EXPENSE:
Deposits 558,385 517,454 2,107,343 2,075,429
Repurchase
agreements 63,466 44,599 230,840 178,200
Borrowed funds 24,670 16,941 98,272 42,099
---------- ---------- ----------- -----------
Total interest
expense 646,521 578,994 2,436,455 2,295,728
---------- ---------- ----------- -----------
NET INTEREST INCOME 1,114,172 506,897 2,995,665 2,006,261
PROVISION FOR LOAN
LOSSES 522,000 15,000 629,000 60,000
---------- ---------- ----------- -----------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 592,172 491,897 2,366,665 1,946,261
---------- ---------- ----------- -----------
NONINTEREST INCOME:
Service fees 93,837 89,557 382,359 324,693
Gain on sale of
loans 24,578 105,635 94,805
Gain on sale of
securities 8,197 7,635
Other noninterest
income 22,179 44,350 97,315 76,596
---------- ---------- ----------- -----------
140,594 133,907 593,506 503,729
---------- ---------- ----------- -----------
NONINTEREST EXPENSES:
Salaries and
benefits 760,576 232,724 5,089,989 999,382
Occupancy and
equipment 183,051 73,210 486,148 256,160
Data processing 62,493 23,621 142,315 92,633
Other 369,825 154,172 1,894,342 493,848
---------- ---------- ----------- -----------
1,375,945 483,727 7,612,794 1,842,023
---------- ---------- ----------- -----------
INCOME (LOSS) BEFORE
PROVISION (BENEFIT)
FOR INCOME TAXES (643,179) 142,077 (4,652,623) 607,967
PROVISION (BENEFIT)
FOR INCOME TAX
EXPENSES (226,649) 54,216 (198,099) 231,998
---------- ---------- ----------- -----------
NET INCOME (LOSS) $ (416,530) $ 87,861 $(4,454,524) $ 375,969
========== ========== =========== ===========
EARNINGS (LOSS)
PER SHARE:
Basic $ (0.07) $ 0.07 $ (1.42) $ 0.31
========== ========== =========== ===========
Diluted $ (0.07) $ 0.07 $ (1.42) $ 0.29
========== ========== =========== ===========
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