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COMMUNITY FIRST BANKSHARES REPORTS 1991 RESULTS

 COMMUNITY FIRST BANKSHARES REPORTS 1991 RESULTS
 FARGO, N.D., Feb. 5 /PRNewswire/ -- Community First Bankshares,


Inc., (NASDAQ:CFBX) today reported income before extraordinary item of $6,794,000 for the year ended Dec. 31, 1991, compared with 1990 earnings of $6,602,000. Earnings for 1990 have been restated to reflect the merger of Community First North Dakota Bankshares, Inc., into the company on Nov. 29, 1991. After an extraordinary charge of $653,000, net of taxes, related to early retirement of $16 million in capital notes, the company had 1991 net income of $6,141,000, equal to $1.07 per share. In 1990, the company earned $1.36 per share on a smaller number of shares outstanding.
 In the fourth quarter, income before extraordinary item was $1,587,000, compared with $1,717,000 in the final quarter of 1990. After the extraordinary item, fourth quarter net income for 1991 was $934,000, equal to 12 cents per share. In the fourth quarter of the previous year, the company earned 35 cents on a smaller number of shares outstanding.
 "Results for the quarter and the year were in line with our expectations," said Donald R. Mengedoth, president and chief executive officer. "Although the economy remains slow, we increased both deposit and loan volumes while continuing to improve credit quality.
 "The early redemption of $16 million in 12.5 percent capital notes had a negative impact on fourth quarter earnings due to prepayment penalties and related charges, but will result in substantial savings in interest costs between now and the originally scheduled 1994 maturity.
 "Also, our strong capital position enabled us to redeem $6.2 million in relatively high rate preferred stock, which will have a positive impact on our 1992 earnings available to common shareholders. The preferred stock was retired on Dec. 24, 1991, with dividends paid through that date.
 "We continue to look for opportunities to enhance our return on assets, including the $68 million received from the Aug. 31 repurchase of our participation in the credit card portfolio of First Bank System, Inc. The interest rate environment prevailing throughout the fourth quarter was a challenging one, and we continued our focus on improving credit quality. In addition, our cost of funds continues to improve while the net interest margin remains at a strong level," Mengedoth said.
 Assets increased to $826 million at Dec. 31, 1991, compared with $731 million at the end of 1990. Total loans were $383 million, compared with $359 million a year earlier. Deposits increased to $728 million at year end, up from $642 million at the end of 1990. Mengedoth noted that non-performing assets declined to 1.05 percent of total loans and other real estate at year end, down from 1.38 percent at the end of 1990. "Our continuing focus on credit quality and the prompt resolution of identified problem loans have contributed to asset quality improvement," Mengedoth said. "We expect to see further improvement in asset quality indicators in 1992." The company's year-end allowance for loan losses was 1.52 percent of total loans, down from 1.57 percent a year earlier.
 "We continued to actively seek the acquisition of additional community banks during the quarter," Mengedoth said. "Three bank acquisitions were pending at year end, as was the acquisition of Community Insurance, Inc. We are continuing to review other candidates, and expect that 1992 will be another active year on the acquisition front."
 Headquartered in Fargo, N.D., Community First Bankshares has 23 banking offices in Minnesota, North Dakota and South Dakota.
 COMMUNITY FIRST BANKSHARES, INC.
 SELECTED FINANCIAL DATA
 (In thousands except per share data)
 Twelve Months Ended Three Months Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Income before
 extraordinary item $ 6,794 $ 6,602 $ 1,587 $ 1,717
 Extraordinary item - early
 extinguishment of debt 653 n/a 653 n/a
 Income before dividends
 on preferred stock 6,141 6,602 934 1,717
 Dividends on preferred
 stock 655 746 152 178
 Net income applicable to
 common equity 5,486 5,856 782 1,539
 Average Balance Sheet Data:
 Assets 765,867 669,151 810,449 714,980
 Loans 379,307 332,245 370,300 344,823
 Investment securities 276,248 187,107 341,746 212,120
 Deposits 672,804 589,635 719,279 634,631
 Common shareholders'
 equity 40,220 26,691 51,638 29,980
 Per Common and Common Equivalent Share Data:
 Income before
 extraordinary item $ 1.33 $ 1.53 $ 0.25 $ 0.39
 Extraordinary item 0.13 0.00 0.10 0.00
 Net income (after
 preferred dividends) 1.07 1.36 0.12 0.35
 Period end book value 8.22 6.88 8.22 6.88
 Average common and common
 equivalent shares
 outstanding 5,126,675 4,319,270 6,383,266 4,364,397
 Financial Ratios: (In percents)
 Return on average assets 0.80 0.99 0.46 0.95
 Return on average common
 shareholders' equity 13.64 21.94 6.01 20.37
 Average common shareholders'
 equity to average assets 5.25 3.99 6.37 4.19
 Net interest margin 4.59 4.75 4.01 4.62
 Net charge-offs to average
 loans 0.71 0.70 0.20 0.16
 Non-performing assets to
 period end loans and OREO 1.05 1.38 --- ---
 Allowance for loan losses
 to period end loans 1.52 1.57 --- ---
 (a) As restated for the effect of the combination of Community
 First Bankshares, Inc., and Community First North Dakota Bankshares,
 Inc.
 -0- 02/05/92
 /CONTACT: Curt Swenson of Swenson Falker Eilertsen, Minneapolis, 612-371-0000 or Don Mengedoth of Community First Bankshares 701-235-1600/
 (CFBX) CO: Community First Bankshares, Inc. ST: Minnesota IN: FIN SU: ERN


KH -- MN008 -- 7212 02/05/92 13:01 EST
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