Frontier Financial Corporation Announces Record Earnings for the Third Quarter of 2002.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)--Oct. 21, 2002 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 Corporation (Nasdaq:FTBK), headquartered in Everett, Washington  This page is currently protected from editing to deal with vandalism. Protection is not an endorsement of the current [ version] today announced record third quarter 2002 earnings
of $9.6 million, or $.50 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares to earnings of $8.8 million for the third quarter of 2001, or $.43 per diluted share, an increase of 8.7%. "The drivers of earnings growth in the third quarter were continued loan growth coupled with a reduction in the cost of funding and a nice increase in non-interest income," said 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 & 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. . The net interest margin increased to 5.38% from 4.94% in the third quarter of 2001. Net interest income of $23.8 million was up $2.4 million from $21.4 million in the third quarter of 2001, a gain of 11.2%. Frontier's efficiency ratio at third quarter end was 38%, down from 42% in the third quarter of 2001. This ratio reflects the cost of producing a dollar of revenue, and the lower the ratio reflects a more productive organization. Non-interest income increased to $2.3 million from $2.2 million in the third quarter of 2001, an increase of 6.5%. This increase was the result of increased income from service charges and bankowned life insurance. Mr. Dickson Dickson may refer to several placenames: Australia
The period beginning at the start of the calendar year up to the current date. 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 were $1.45 compared to $1.20 per share for 2001, an increase of 20.8%. The larger percentage increase in diluted earnings per share compared to the percentage increase in actual earnings occurred because the number of average diluted shares outstanding decreased from 20.5 million shares in 2001, to 19.3 million shares as of September September: see month. 30, 2002. This was a result of open market purchases of Frontier stock by the Corporation." 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 quarter was 2.03% compared to 1.92% in 2001. The annualized return on average shareowners' equity was 19.1% in 2002 and 16.1% in 2001. The capital of the Corporation at quarter end was $198.9 million, down from $211.8 million a year ago, or a decrease of 6.1%. "The decrease in shareowners' equity was caused by the payment of $11.3 million for cash dividends paid to shareowners and Frontier purchased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $31 million of stock in the open market," said Dickson. Total assets at the end of the third quarter of 2002 were $1.97 billion and deposits totaled $1.59 billion, an increase of 5.4% and 5.4% respectively, compared to the prior year. Net loans of $1.62 billion and investments of $139.7 million reflected an increase of 2.5% and 44.6% respectively. Good expense management was evident as non-interest expense increased from $29.9 million to $30.5 million, an increase of 2%. As a result, Frontier's efficiency ratio for the first nine months was 39% compared to 43% last year. Return on average assets was 2.04% and return on average equity was 19.05% compared to 1.81% and 15.28% respectively during the first nine months of 2001. Non-performing assets at the end of September 2002 were 1.08% of total assets compared to 1.11% at the end of the second quarter and .47% a year ago, reflecting the slowing economy. "We are pleased that we achieved a slight decrease in this critical ratio during the past quarter. The reserve for loan losses was increased by $4.8 million over the past year, bringing the total reserve to $27.5 million, or 1.7% of total loans. Net charge-offs for the first nine months was $1.9 million, or .12% of total loans," Dickson said. Mr. Dickson concluded by saying, "Our earnings target was achieved during the first nine months of 2002 and we are hopeful that the full year will be the best ever for Frontier." Frontier Financial Corporation, headquartered in Everett, Washington, is the parent company of Frontier Bank which operates thirty-nine banking offices in Clallam Clallam: see Klallam. , Jefferson Jefferson, uninc. city (1990 pop. 25,782), Fairfax co., N Va. It is a residential suburb of Washington, D.C. , King, Kitsap Kitsap may refer to:
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 other 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, 2001, for meaningful cautionary language discussing why actual results may vary materially from those anticipated by management.
FRONTIER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except for
number of shares and For Three Months Ended For Nine Months Ended
per share amounts) --------------------------------------------
September September September September
30, 30, 30, 30,
2002 2001 2002 2001
--------------------------------------------
Interest Income:
Interest & fees on
loans $33,377 $35,130 $97,455 $104,062
Interest & fees on
investments 1,998 2,394 5,426 9,490
--------------------------------------------
Total Interest Income 35,375 37,524 102,881 113,552
Interest Expense:
Interest on Deposits 9,671 14,525 29,455 46,911
Interest on borrowed
funds 1,924 1,621 5,113 4,801
--------------------------------------------
Total Interest
Expense 11,595 16,146 34,568 51,712
Net Interest Income 23,780 21,378 68,313 61,840
Provision for Loan Losses (1,500) (100) (3,100) (600)
Net Interest Income after
Provision 22,280 21,278 65,213 61,240
Noninterest Income:
Gain/(loss) on
securities sales (187) - (187) -
Service Charges 1,086 849 3,045 2,385
Other noninterest
income 1,444 1,351 4,756 3,749
--------------------------------------------
Total Noninterest
Income 2,343 2,200 7,614 6,134
Noninterest Expense:
Salaries & benefits 6,243 5,981 18,492 17,389
Occupancy expense 1,528 1,463 4,624 4,625
Other noninterest
expenses 2,537 2,587 7,387 7,925
--------------------------------------------
Total Noninterest
Expense 10,308 10,031 30,503 29,939
Income Before Taxes 14,315 13,447 42,324 37,435
Applicable Income Taxes (4,707) (4,607) (14,377) (12,843)
--------------------------------------------
NET INCOME/(Loss) $9,608 $8,840 $27,947 $24,592
============================================
Basic average shares
outstanding for the
quarter and
year-to-date 19,187,846 20,313,402 19,197,166 20,309,675
Basic earnings per share $0.50 $0.44 $1.46 $1.21
============================================
Diluted shares 19,294,901 20,503,327 19,307,608 20,467,610
Diluted earnings per share $0.50 $0.43 $1.45 $1.20
============================================
Efficiency ratio 38% 42% 39% 43%
Return on average assets 2.03% 1.92% 2.04% 1.81%
Return on average equity 19.14% 16.14% 19.05% 15.28%
TE Net interest margin 5.38% 4.94% 5.34% 4.85%
FRONTIER FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except for
number of shares) September December September
30, 2002 31, 2001 30, 2001
---------------------------------
ASSETS
Cash & due from banks $72,711 $64,062 $73,122
Securities:
Available for Sale-Fair value 107,428 48,845 69,888
Held to maturity-amortized
cost 32,319 32,925 26,743
---------------------------------
Total securities 139,747 81,770 96,631
Federal funds sold 69,395 44,800 69,780
Loans:
Loans, net of unearned income 1,642,817 1,575,031 1,598,851
Less: Allowance for losses (27,545) (26,358) (22,770)
---------------------------------
Net loans 1,615,272 1,548,673 1,576,081
Premises & equipment, net 26,829 27,695 27,820
Other real estate owned 7,307 769 572
Intangible assets 6,476 6,476 6,674
Other assets 31,597 32,495 17,548
---------------------------------
Total Assets $1,969,334 $1,806,740 $1,868,228
=================================
LIABILITIES
Deposits:
Noninterest bearing $252,184 $238,348 $219,369
Interest bearing 1,341,395 1,260,022 1,292,819
---------------------------------
Total deposits 1,593,579 1,498,370 1,512,188
Federal funds purchased and
securities sold under
repurchase agreements 10,336 7,696 19,727
Federal Home Loan Bank advances 155,125 105,137 105,143
Other liabilities 11,365 12,007 19,352
---------------------------------
Total Liabilities 1,770,405 1,623,210 1,656,410
SHAREOWNERS' EQUITY
Common stock 116,476 115,158 115,029
Unrealized gains/(losses) on AFS
securities, net of tax effect 1,246 634 787
Retained earnings 81,207 67,738 96,002
---------------------------------
Total Capital 198,929 183,530 211,818
---------------------------------
TOTAL LIABILITIES & EQUITY $1,969,334 $1,806,740 $1,868,228
=================================
Shares outstanding at end of period 19,035,253 19,184,879 20,092,884
Book Value $10.45 $9.57 $10.54
Tangible book value $10.11 $9.23 $10.21
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