Fulton Bancorp Inc. Announces Year End Results.FULTON, Mo.--(BUSINESS WIRE)--Aug. 20, 1998--Fulton Bancorp Inc. (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: FTNB FTNB First Texoma National Bank (Texas/Oklahoma) ), the holding company for Fulton Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , FSB (FrontSide Bus) See system bus. FSB - front side bus , Thursday reported net income of $1,139,000 or $0.70 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 for the year ended June 30, 1998, compared to net income of $822,000, or $0.52 per diluted share, for the year ended June 30, 1997. Net income for the year ended June 30, 1998 rose $317,000 on the strength of higher net interest income, gains on the origination of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights, and the absence of a one-time, $427,000 charge recorded in September of 1996. The 1996 charge was the Bank's share of an industry-wide special assessment to recapitalize re·cap·i·tal·ize tr.v. re·cap·i·tal·ized, re·cap·i·tal·iz·ing, re·cap·i·tal·iz·es To change the capital structure of (a corporation). re·cap the Savings Association Insurance Fund Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. (SAIF). Net interest income for the year ended June 30, 1998 rose to $3,894,000, $613,000 over the level reported at June 30, 1997. The increase was due to an $807,000 rise in interest income, the result of a higher volume of loans and interest bearing deposits in other banks. A higher volume of FHLB FHLB Federal Home Loan Bank advances caused interest expense to rise to $4,183,000 from $3,939,000 at June 30, 1997. Interest expense on FHLB advances rose $276,000, while interest paid on deposits fell $32,000. The decline in interest paid on deposits was due primarily to lower rates. Gains from the origination of servicing rights and higher loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. income caused a 24.1 percent increase in non interest income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. to $792,000. A $183,000 increase in gains on originations of mortgage servicing rights is due largely to a full year of gains recognition under Financial Accounting Standard No. 125 which was implemented in the last half of fiscal year ended June 30, 1997. Non interest expense rose 38.9 percent to $1,796,000 for the fiscal year ended June 30, 1998. The increase reflects $524,000 in compensation expense related to the Management Recognition and Development Plan (MRDP) implemented during the current year. Sixty-five percent of total expense of the five year plan will be recognized in the first two years. Total assets rose to $110.1 million at June 30, 1998, from $100.6 million at June 30, 1997. Net loans receivable rose $3.5 million to $91.8 million, and deposits rose $1.9 million to $69.1 million at June 30, 1998. Non performing assets Non Performing Asset Any asset that is not effectively producing income. Notes: For example, an overdue loan would be considered non-performing. See also: Asset, Charge Off, Non-Performing Loan totaled $513,000 or 0.47 percent of total assets at June 30, 1998 compared to $563,000 or 0.51 percent of total assets at June 30, 1997. Established in 1912, Fulton Savings Bank operates from offices in Fulton and Holts Summit, Mo. At June 30, 1998, Fulton Bancorp had total assets of $110.1 million and 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. of $25.5 million. On Aug. 19, 1998, the company's stock closed at $18 5/8 per share. -0-
Fulton Bancorp Inc.
Consolidated Financial Highlights
(Unaudited)
(Dollars in thousands)
Three Months Ended Year Ended
June 30, June 30,
1998 1997 1998 1997
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Operating Data:
Total interest income $ 2,086 $ 1,857 $ 8,147 $ 7,340
Total interest expense 1,078 913 4,183 3,939
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Net interest income 1,008 944 3,964 3,401
Provision for loan losses 10 60 70 120
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Net interest income after
provision for loan losses 998 884 3,894 3,281
Non-interest income 176 261 792 637
Non-interest expense 781 521 2,890 2,625
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Income before income taxes 393 624 1,796 1,293
Income tax expense 139 226 657 471
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Net income $ 254 $ 398 $ 1,139 $ 822
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Basic earnings per share $ 0.16 $ 0.25 $ 0.72 $ 0.52
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Diluted earnings per share $ 0.14 $ 0.25 $ 0.70 $ 0.52
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June 30, June 30,
1998 1997
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Financial Condition Data:
Total assets $110,110 $100,569
Cash and cash equivalents,
including interest-bearing
accounts 13,778 7,108
Loans receivable, net 91,754 88,223
Investment securities 950 1,899
Deposits 69,164 67,197
Federal Home Loan Bank
advances 12,810 6,500
Stockholders' equity 25,495 25,257
CONTACT: Fulton Bancorp Inc.
Kermit Gohring, president and CEO, 573/642-6617
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