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BT FINANCIAL CORPORATION REPORTS EARNINGS

 JOHNSTOWN, Pa., Oct. 28 /PRNewswire/ -- BT Financial Corporation (NASDAQ: BTFC) said today it remains an innovative leader in an industry buffeted by change. Confronted with the lowest interest rates in recent history, and a lackluster economic recovery, BT Financial Corporation said it has aggressively moved to combat deposit flight to non-bank investment alternatives and to stimulate loan demand.
 The corporation said that to accomplish this objective, a dual strategy was implemented by introducing a deposit-gathering program and a loan sale at all of the company's banking affiliates. BT Financial said that these successful programs are continually monitored to insure a proper net interest margin through careful asset and liability management.
 BT Financial Corporation's "Premium Investment Certificate of Deposit" is a rising rate certificate of deposit re-priced annually for a three-year total maturity. This instrument provides a defined cost structure while offering a greater return to depositors over other short-term investments. The corporation said the product has been very well received.
 The loan sale offers a 6-1/2 percent annual interest rate to borrowers electing to have payments charged against a BT Financial Corporation affiliate checking or statement savings account. Like the corporation's first loan sale last fall, the response has been very enthusiastic, the company said. In addition, many of these customers are taking advantage of the automatic payment feature resulting in a significant increase in deposit accounts.
 To meet the demands of other investors, BT Management Trust Company provides complete investment management services in addition to its trust products for those clients seeking a more diverse investment program. BT Financial Corporation's trust company continues to increase total assets and provide improved fee income.
 The company said that all of this, together with aggressive cost-containment efforts, has resulted in continually improving financial results. Consolidated net income for the nine months ended Sept. 30, 1993, was $7,041,000, or $2.14 per share, a 9.1 percent increase over the $6,452,000, or $1.96 per share earned the previous year. Net income for the third quarter was $2,390,000, or $.73 per share, an 8 percent increase compared to the corresponding period last year of $2,212,000, or $.67 per share. Compared to the same period last year, total assets increased $23,270,000, or 2.6 percent to $912,814,000; deposits were up $2,754,000, or .3 percent to $789,709,000; net loans increased $64,694,000, or 12.2 percent to $596,334,000; and shareholder equity increased $5,845,000, or 8.4 percent to $75,140,000.
 During the third quarter, BT Financial Corporation continued its aggressive business development efforts with a strong focus on quality customer service, the company said. Within this framework, the replacement and installation of new drive-up ATM units, at the banking affiliates, is designed to provide better 24-hour banking convenience throughout the company's market region.
 On Sept. 30, 1993, Gerald W. Swatsworth, chairman and chief executive officer, and Ethel J. Otrosina, executive vice president and secretary, retired after 31 and 32 years of service, respectively. BT Financial Corporation said it positively reflects Swatsworth's strong and caring leadership. The company said it is indebted to both for their tireless efforts in the growth of the corporation. Swatsworth and Otrosina will continue to serve as directors of Johnstown Bank and Trust Company and BT Financial Corporation. Swatsworth will additionally serve as chairman of the Executive Committee of BT Financial Corporation board of directors. John H. Anderson was named to succeed Swatsworth and George J. Kondor Jr. will assume the additional duties of corporate secretary.
 BT Financial Corporation's pending merger of FirstSouth Savings Association, a subsidiary of FirstSouth Bancorp, Inc., into Fayette Bank and Trust Company, is proceeding through the regulatory approval process. The company expects this acquisition to be completed during the fourth quarter of 1993.
 On Oct. 27, 1993, BT Financial Corporation's Board of Directors declared a cash dividend of $.27 per share to shareholders of record Nov. 12, 1993, payable Dec. 1, 1993.
 BT Financial Corporation is a bank holding company, with assets of $900 million, headquartered in Johnstown. Banking affiliates include Johnstown Bank and Trust Company, Johnstown; Laurel Bank, Ebensburg, Pa.; and Fayette Bank and Trust Company, Uniontown, Pa. Together, they comprise a total of 56 offices serving Cambria, Somerset, Bedford, Blair, Indiana, Westmoreland, Fayette, Butler and Allegheny counties. BT Financial Corporation's other affiliates are BT Management Trust Company, a Pennsylvania state-chartered trust company, and Bedford Associates, Inc., a real estate company.
 BT FINANCIAL CORPORATION AND AFFILIATES
 Consolidated Balance Sheet
 Sept. 30, 1993
 (In thousands, except shares and per share data)
 9/30/93 12/31/92 9/30/92
 Assets:
 Cash and due from banks $33,218 $48,060 $33,701
 Investment securities 213,685 219,800 241,709
 Int. bearing deposits
 with banks 17,385 24,407 24,465
 Federal funds sold 16,700 19,150 21,000
 Net loans 596,334 561,112 531,640
 Premises and equipment 20,378 19,726 19,082
 Other assets 15,114 14,693 17,947
 Total assets 912,814 906,948 889,544
 Liabilities:
 Deposits 789,709 809,023 786,955
 Fed funds purchased and
 securities sold under
 agreement to repurchase 31,622 8,912 13,188
 Other liabilities 10,783 10,363 12,106
 Capital notes 5,560 8,000 8,000
 Total liabilities 837,674 836,298 820,249
 Shareholders' equity:
 Common stock 16,469 15,684 15,684
 Capital surplus 20,362 16,440 16,440
 Retained earnings 38,309 38,526 37,171
 Total shareholders' equity 75,140 70,650 69,295
 Total liabilities and
 shareholders' equity 912,814 906,948 889,544
 Book value per share $22.81 $21.45 $21.04
 No. of shares outstanding 3,293,705 3,136,862 3,136,862
 Consolidated Statement of Income
 Sept. 30, 1993
 (In thousands, except shares and per share data)
 Periods Ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Interest income $16,466 $17,466 $49,718 $53,018
 Interest expense 5,569 7,056 17,495 22,534
 Net interest income 10,897 10,410 32,223 30,484
 Provision for loan losses 261 687 1,160 2,010
 Net interest income after
 provision for loan losses 10,636 9,723 31,063 28,474
 Other income 1,466 1,313 4,329 4,186
 Other expenses 8,531 7,891 25,005 23,627
 Income before taxes 3,571 3,145 10,387 9,033
 Provision for income tax 1,181 933 3,459 2,581
 Income before cumulative
 effect of accounting
 principle change 2,390 2,212 6,928 6,452
 Cumulative effect of change in
 accounting for income taxes 0 0 113 0
 Net income 2,390 2,212 7,041 6,452
 Net income per share $0.73 $0.67 $2.14 $1.96
 Dividends paid per share $0.27 $0.23 $0.77 $0.66
 Weighted average number of
 shares outstanding 3,293,705 3,293,705 3,293,705 3,293,705
 Note: Per share data and weighted average number of shares outstanding have been restated to reflect the 5 percent stock dividends distributed on Sept. 11, 1992, and July 26, 1993.
 -0- 10/28/93
 /CONTACT: John H. Anderson, chairman, president and chief executive officer, of BT Financial, 814-532-3801/
 (BTFC)


CO: BT Financial Corporation; FirstSouth Bancorp, Inc. ST: Pennsylvania IN: FIN SU: ERN

DM-LJ -- PG004 -- 7812 10/28/93 10:53 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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