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MARK TWAIN'S 21.6 PERCENT INCREASE PUSHES NET INCOME TO RECORD-HIGH $19.576 MILLION FOR 1991

 MARK TWAIN'S 21.6 PERCENT INCREASE PUSHES
 NET INCOME TO RECORD-HIGH $19.576 MILLION FOR 1991
 ST. LOUIS, Jan. 16 /PRNewswire/ -- Mark Twain Bancshares, Inc. (NASDAQ: MTWN) today reported a 21.6 percent increase in earnings for 1991 compared to 1990.
 For the year, net income of $19.576 million reached a record high for the 28-year-old company. In the last five years, Mark Twain has grown its earnings at an annual compounded rate of 19 percent.
 Primary earnings per share for the year were $2.33, up 15.3 percent from 1990. Fully diluted earnings per share were $2.25 for the year, an increase of 14.8 percent.
 Return on average assets was 0.92 percent in 1991, up from 0.81 percent in 1990. Return on common equity was 15.05 percent for the year, up from 14.37 percent in 1990.
 "We are pleased to report that our 1991 results met our goals for the year and continue the very favorable trends that we began 1987," said John Dubinsky, Mark Twain president and chief executive officer.
 Mark Twain reported that its fourth quarter results were also record-breakers. Net income grew 17.4 percent in the fourth quarter 1991, compared to the same period in 1990, to reach $5.958 million, the highest total of any quarter in Mark Twain history.
 Primary earnings per share in the fourth quarter grew 3.1 percent, compared to fourth quarter 1990, to total $0.66. Fully diluted earnings per share increased 3.2 percent to total $0.64. The 1991 per share numbers were affected by the sale of 1 million shares of additional stock in August 1991. Return on average assets was 1.10 percent for the quarter, compared to 0.98 percent in the fourth quarter of last year. Return on common equity was 16.16 percent, compared to 17.58 percent.
 Dubinsky indicated that Marks Twain's strong performance, in light of a difficult year economically, was achieved by diligently following a plan to counteract many economic influences.
 "The soft economy is a reality," Dubinsky said. "We were successful throughout the year in focusing on improving our net interest margin, keeping our fixed overhead cost increases to a minimum, maintaining our problem loans at a low, stable level, and continuing to materially expand revenues from our non-banking, fee-based businesses."
 Mark Twain's non-interest income, primarily generated from the company's bond, brokerage, mortgage and trust divisions, grew 32.8 percent for the year following a combined 21.4 percent increase in 1990. Revenue from the company's bond and brokerage units increased by 31.5 percent following a 36 percent increase in 1990. Revenue from Mark Twain's mortgage company increased by 80.1 percent following a 64.1 percent increase in 1990. Revenue from the company's trust division increased by 27.7 percent following a 13.2 percent increase in 1990.
 "Mark Twain continues to be enthusiastic about the increasing levels of net income that come from our non-banking businesses," Dubinsky said. "Our strong financial results in the banking areas continue to be supplemented by the outstanding performance of our non-banking businesses. And from a marketing perspective, these non-banking businesses provide an excellent complement to our traditional banking expertise."
 Mark Twain's net interest margin peaked for the year at the fourth quarter level of 4.42 percent. For the year, net interest margin was 4.34 percent, compared to 4.31 percent in 1990. This slightly higher year-end average contributed to a 1 percent increase in net interest income.
 Mark Twain reported that its loan quality remained historically solid. Non-performing assets were 2 percent of total loans plus foreclosed real estate at year-end, compared to 1.98 percent in 1990 and 2.19 percent in 1989. This level is substantially below industry averages, which are in the 4 percent range.
 The company's reserve for loan losses grew to a record $22.412 million at Dec. 31, 1991, a net increase of $3.383 million for the year. The current reserve level represents 1.52 percent of total loans, compared to 1.27 percent in 1990 and 146.42 percent of total non- performing loans compared to 107.24 percent in 1990.
 Net charge-offs for the year were 0.71 percent, up from 0.37 percent in 1990. The higher level, which is still lower than banking industry averages, reflects Mark Twain's program of dealing with loan problems as early as possible.
 "The quality of the loan portfolio appears to be in very sound condition at year-end," Dubinsky said. "Our level of non-performing loans is similar to the low levels at year-end 1990. Nevertheless, we chose to materially increase our reserve levels in light of the economic trends," he said.
 Mark Twain's overhead increases were minimal during the year. The company achieved record levels of efficiency during the year and in the fourth quarter, as measured by efficiency ratios of 64 percent and 62.4 percent for the respective periods.
 "We have concentrated for the last three years at bringing our costs down," Dubinsky indicated. "We believe cost control is a key to increasing profitability in the future."
 Assets increased 2 percent to total $2.170 billion. Loan growth, including mortgage loans held for resale, was 1.2 percent, bringing the total to $1.521 billion. Dubinsky said that slower asset and loan growth was a reflection of sluggish economic conditions.
 Total shareholder's equity increased a substantial 27.6 percent in 1991, which was due both to the record level of earnings and to the sale of 1 million shares of additional common stock in the third quarter.
 "Mark Twain continues its objective of growing internally and through non-dilutive acquisitions," Dubinsky said. "We are looking forward to another very strong year in 1992 and would expect to enhance our Kansas City banking operation by expanding into the state of Kansas during the year."
 Mark Twain Bancshares, Inc., a 28-year-old bank holding company, operates 28 locations: 18 throughout St. Louis, St. Louis County and St. Charles County; as well as five in Kansas City, Mo., and five in Belleville and Edwardsville, Ill. Mark Twain also operates 43 brokerage locations in six states, including a substantial office in Chicago. Related financial services include: Mark Twain Bond Department; Mark Twain Brokerage Services, Inc.; Mark Twain Commercial Finance Division; Mark Twain International; Mark Twain Leasing Company; Mark Twain Mortgage Company; and Mark Twain Trust Division.
 MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands of $, except for per-share data)
 Periods ended Year Three Months
 Dec. 31 1991 1990 1991 1990
 Interest from earnings assets
 Interest and fees on loans $149,561 $163,168 $35,339 $42,332
 Interest on mortgage loans held
 for resale 3,748 -- 906 --
 Interest on investment securities
 Taxable 33,814 26,187 8,459 7,253
 Non-Taxable 570 693 128 165
 Interest on deposits with banks 217 663 7 119
 Interest on federal funds sold and
 securities purchased under resale
 agreements 1,279 1,977 570 631
 Total interest income 189,189 192,688 45,409 50,500
 Interest expense
 Interest on deposits 97,284 107,922 22,245 27,518
 Interest on short-term
 borrowings 6,392 6,356 1,249 1,616
 Interest on long-term debt 2,285 2,664 527 666
 Total Interest Expense 105,961 116,942 24,021 29,800
 Net interest income 83,228 75,746 21,388 20,700
 Provision for loan losses 14,117 7,420 3,543 2,266
 Net interest income after
 provision for loan losses 69,111 68,326 17,845 18,434
 Other income
 Service charges on deposit
 accounts 5,488 4,546 1,489 1,288
 Securities gains 1,296 -- 125 --
 Other 25,385 19,674 7,949 5,269
 Total Other Income 32,169 24,220 9,563 6,557
 Other expenses
 Salaries 32,093 29,796 8,367 7,122
 Employee benefits 5,390 5,131 1,334 1,134
 Net occupancy expense 7,052 6,697 1,748 1,692
 Furniture and equipment
 expense 3,716 3,560 932 885
 Other 25,812 25,599 6,959 6,982
 Total other expenses 74,063 70,783 19,340 17,815
 Income Before Income Taxes 27,217 21,763 8,068 7,176
 Applicable income taxes 7,641 5,664 2,110 2,102
 Net income $19,576 $16,099 $ 5,958 $ 5,074
 Net income per share:
 Primary $2.33 $2.02 $.66 $.64
 Fully diluted 2.25 1.96 .64 .62
 Common dividends paid
 per share .92 .88 .24 .22
 Consolidated Statement of Condition
 (In thousands of $)
 Dec. 31 1991 1990
 Assets
 Cash and due from banks $102,361 $101,228
 Interest bearing deposits with
 banks 575 5,538
 Federal funds sold and securities
 purchased under resale
 agreements 7,900 42,450
 Investment securities 446,118 385,388
 Mortgage loans held for resale 47,475 --
 Loans, net of allowance for loan
 losses of $22,412 and $19,029,
 respectively 1,451,262 1,484,169
 Premises and equipment 26,773 16,384
 Accrued income receivable 16,946 21,713
 Other assets 70,999 70,823
 Total assets $2,170,409 $2,127,693
 Liabilities
 Non-interest bearing
 deposits 282,364 287,289
 Interest bearing deposits 1,561,990 1,570,014
 Total deposits 1,844,354 1,857,303
 Short-term borrowings 120,008 95,145
 Other liabilities 29,883 26,408
 Long-term debt 27,369 32,206
 Total liabilities 2,021,614 2,011,062
 Shareholders' equity
 Common stock, $1.25 par value,
 authorized 14 million shares,
 issued 9,405,265 and 8,225,730,
 shares, respectively 11,757 10,282
 Surplus 49,303 30,687
 Undivided profits 91,536 79,478
 Total 152,596 120,447
 Less common treasury stock at
 cost, 449,062 and 433,646
 shares, respectively 3,801 3,816
 Total shareholders' equity 148,795 116,631
 Total liabilities and
 shareholders' equity $2,170,409 $2,127,693
 -0- 1/16/92
 /CONTACT: Kris Bakken, 314-889-0781, or Keith Miller, 314-889-0799, both for Mark Twain Bancshares/
 (MTWN) CO: Mark Twain Bancshares, Inc. ST: Missouri IN: FIN SU: ERN


CK -- NY067 -- 0580 01/16/92 14:06 EST
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