Frontier Financial Corp. Continues Momentum -- Announces Record Earnings for the First Quarter of 2000.Business Editors EVERETT Everett. 1 City (1990 pop. 35,701), Middlesex co., E Mass., an industrial suburb of Boston, on the Mystic River; settled c.1643, set off from Malden 1870, inc. as a city 1892. , Wash.--(BUSINESS WIRE)--April 17, 2000 Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. Financial Corp. (Nasdaq:FTBK) announced today record earnings of $7.3 million for the first quarter of 2000, up from $6.0 million in 1999, an increase of 22.4 percent. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the first quarter were 42 cents compared to 34 cents for the first quarter of 1999. Assets increased $202.6 million over year-ago levels, or 17.2 percent, reaching $1.38 billion. Total loans increased $200 million, or 21.2 percent over the last year to $1.12 billion; investments decreased $16.6 million, to $132.1 million or 11.1 percent, and deposits increased $118 million to $1.1 billion, or 12.5 percent. Bob Dickson Robert B. "Bob" Dickson (born January 25, 1944) is an American professional golfer who played on the PGA Tour and the Champions Tour. Dickson was born in McAlester, Oklahoma. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said: "We are indeed pleased with our first quarter performance. It is the best quarter in the 21 year history of Frontier and is the first time that earnings have exceeded $7 million in a quarter. It also is the 65th consecutive quarter in which Frontier earnings exceeded the earnings of the same quarter of the prior year. We are not aware of any commercial bank in the nation that can match this record." "During the first quarter, Frontier signed a merger agreement with Liberty Bay Financial Corp., the parent company of North Sound Bank, which is headquartered in Poulsbo, Wash. We expect to complete the merger during the third quarter of this year. The merger will increase Frontier's assets by $180 million and add eight offices on the Olympic peninsula The Olympic Peninsula is the large arm of land in western Washington state that lies across Puget Sound from Seattle. It is bounded on the west by the Pacific Ocean, the north by the Strait of Juan de Fuca, and the east by Puget Sound and the Hood Canal. to our servicing area." The capital of the corporation increased $20.4 million, or 15.6 percent during the period. Capital growth would have been greater, however, in the first quarter of this year the corporation paid its first quarterly cash dividend of nine cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , which, when 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. , is a 44 percent increase over the annual cash dividend paid in 1999. The corporation was also involved in a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. Frontier purchased more than 94,000 shares in the open market, worth more than $1.8 million. The stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program was rescinded when the Liberty Bay Corp. merger was announced to comply with "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. " accounting regulations. The corporation continues to have excellent loan quality, with non-performing assets dropping to .23 percent of assets at the end of the first quarter of 2000, as compared to .43 percent last year. The corporation's efficiency ratio improved in the first quarter of 2000 to 36 percent from 38 percent a year ago. Annualized return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) for the first quarter was 2.21 percent as compared to 2.07 percent in 1999. Return on average shareowners equity was 19.01 percent for the 2000 period, and 18.29 percent for 1999. All of the above ratios place Frontier among the performance leaders in the industry. Frontier Bank, the subsidiary of the corporation, will open its 26th branch office in Kent, Wash., on May 1, 2000. Frontier Financial Corp., headquartered in Everett, Wash., is the parent of Frontier Bank which operates 25 banking offices in King, Pierce Pierce may refer to: Places
 ),n. for recognition is well balanced banks with strong asset quality, ample capital, strong earnings and a low overhead ratio Information herein contains 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, which can be identified by words such as "may," "expected," "anticipate," "estimate," "continue" or comparable words. In addition, all statements other than statements of historical facts that address activities that Frontier expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Frontier particularly its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 31, 1999, for meaningful cautionary language discussing why actual results may vary materially from those anticipated by management.
FRONTIER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands except for share, and per share amounts)
March 31, Dec 31, March 31,
ASSETS 2000 1999 1999
---------- -------- ---------
Cash & due from banks $49,455 $44,858 $43,621
Securities:
Available for sale-market value 104,146 103,467 115,854
Held to maturity-amortized cost 27,951 28,047 32,796
---------- -------- ---------
Total securities 132,097 131,514 148,650
Federal funds sold 42,280 0 31,710
Loans:
Loans, net of unearned income 1,141,121 1,053,214 941,167
Less: Allowance for losses (19,892) (19,651) (18,402)
---------- -------- ---------
Net loans 1,121,229 1,033,563 922,765
Premises & equipment, net 18,331 18,290 15,318
Other real estate owned 519 736 1,597
Intangible assets 1,232 1,264 1,365
Other assets 17,802 15,391 15,322
---------- -------- ---------
Total assets $1,382,945 $1,245,616 $1,180,348
========== ======== =========
LIABILITIES
Deposits:
Noninterest bearing $154,008 $145,565 $146,831
Interest bearing 906,267 821,215 795,460
---------- -------- ---------
Total deposits 1,060,275 966,780 942,291
Federal funds purchased 4,265 6,660 6,778
Securities sold under repurchase
agreements 29,542 21,892 29,137
Federal Home Loan Bank advances 125,182 95,189 60,208
Other liabilities 12,663 7,726 11,305
---------- -------- ---------
Total liabilities 1,231,927 1,098,247 1,049,719
EQUITY CAPITAL
Common stock 91,320 91,302 91,141
Unrealized gains/(losses) on AFS
securities, net of tax effect (3,598) (3,293) (206)
Retained earnings 63,296 59,360 39,694
---------- -------- ---------
Total capital 151,018 147,369 130,629
---------- -------- ---------
Total Liabilities and Equity
Capital $1,382,945 $1,245,616 $1,180,348
========== ======== =========
Shares outstanding at end of period 17,458,225 17,545,587 17,518,719
Book Value $8.65 $8.40 $7.46
Tangible book value $8.58 $8.33 $7.38
FRONTIER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the
(Dollars in thousands, For the Three Months ended Year Ended
except per share amounts) March 31, Dec. 31, March 31, Dec. 31,
2000 1999 1999 1999
--------- -------- --------- ---------
Interest Income:
Interest & fees on loans $26,383 $25,254 $21,599 $93,825
Interest on investments 2,540 2,378 2,708 9,864
--------- -------- --------- ---------
Total Interest Income 28,923 27,632 24,307 103,689
Interest Expense:
Interest on deposits 10,543 9,330 8,561 35,379
Interest on borrowed funds 1,914 1,616 1,112 5,358
--------- -------- --------- ---------
Total Interest Expense 12,457 10,946 9,673 40,737
Net Interest Income 16,466 16,686 14,634 62,952
Provision for loan losses (200) (450) (300) (2,050)
Net Interest Income after
provision 16,266 16,236 14,334 60,902
Noninterest Income:
Securities gains/(losses) 0 0 0 0
Service charges 573 573 533 2,289
Other noninterest income 660 694 711 3,595
--------- -------- --------- ---------
Total Noninterest Income 1,233 1,267 1,244 5,884
Noninterest Expense:
Salaries & employee
benefits 4,326 5,099 3,878 17,189
Occupancy expenses 847 1,059 885 3,657
Other noninterest expenses 1,192 1,970 1,539 7,475
--------- -------- --------- ---------
Total Noninterest Expense 6,365 8,128 6,302 28,321
Income Before Taxes 11,134 9,375 9,276 38,465
Applicable Income Taxes (3,796) (2,860) (3,282) (12,805)
--------- -------- --------- ---------
Net Income $7,338 $6,515 $5,994 $25,660
Basic average shares
outstanding for the
period 17,520,243 17,527,991 17,512,183 17,527,991
Basic earnings per share $0.42 $0.37 $0.34 $1.46
Diluted shares 17,588,560 17,605,516 17,622,076 17,605,516
Diluted earnings per share $0.42 $0.37 $0.34 $1.46
======== ========= ========= =========
Efficiency ratio 36% 44% 38% 41%
Return on average assets 2.21% 2.07% 2.07% 2.15%
Return on average equity 19.01% 17.50% 18.29% 18.43%
======== ========= ========= =========
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