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MARK TWAIN'S SECOND QUARTER INCOME INCREASES 24.0 PERCENT TO REACH RECORD HIGH; DIVIDEND RATE INCREASED SECOND TIME THIS YEAR

    ST. LOUIS, July 14 /PRNewswire/ -- Mark Twain Bancshares today announced a 24.0 percent increase in second quarter 1993 earnings from second quarter last year.  Income from the second quarter was $8.187 million and was a record quarterly total.  The quarter was the ninth consecutive quarter of record quarterly earnings.
    Primary earnings per share grew 18.8 percent to $.57 from $.48 in the second quarter of 1992.  Fully diluted earnings per share were up 17.0 percent to $.55 compared to $.47.
    In light of the current strong earnings and the anticipated favorable earnings trends, the board of directors declared the third quarter dividend at an increased rate of $.21 per share ($.84 annualized rate) compared to the prior rate of $.19 ($.76 annualized rate) per share.  This 10.5 percent increase is on top of an 11.5 percent increase announced earlier this year in the first quarter and is the 28th dividend increase since the company went public 24 years ago in 1969.
    Return on average assets was 1.44 percent in the second quarter, compared to 1.20 percent in the second quarter last year and 1.42 percent in the first quarter this year.  Return on common shareholders' equity was 18.23 percent for the quarter, compared to 18.25 percent in the first quarter this year and 17.19 percent in the second quarter last year.
    For the first six months of 1993, Mark Twain's earnings totaled $16.01 million, up 25.7 percent from $12.74 million earned year-to-date in 1992.  Primary earnings per share for the first six months were $1.12, up 19.1 percent compared to $.94 in 1992.  Fully-diluted earnings per share totaled $1.08, an increase of 20.0 percent over 1992 results of $.90.
    Return on average assets for the first six months was 1.43 percent, compared to 1.18 percent in 1992.  Return on common shareholders' equity was 18.24 percent compared to 16.85 percent last year.
    "We have had a very strong first half this year," said John P. Dubinsky, Mark Twain president and chief executive officer.  "Our results give us increasing optimism that 1993 will be yet another record year for us.  The dividend increase, the second this year, reflects our positive view of the future and still puts our dividend payout within our targeted range of 30-40 percent of net income.  "Our new quarterly dividend rate is 21.2 percent greater than our rate just one year ago."
    Dubinsky said that Mark Twain's results were achieved by following the same key principles it has focused on throughout the past five years:  maintain high quality assets, minimize increases in overhead expenses, maximize opportunities for growth of fee generating subsidiaries, and aggressively solicit new business.
    "The more success we have, the more we become committed to these strategies," he said.
    Mark Twain's assets grew 3.7 percent in the second quarter, compared to second quarter 1992, to total $2.311 billion.  Total loans were $1.518 billion and were 4.2 percent higher than a year ago.
    "Our loan outstandings have grown 5.3 percent since year-end 1992," Dubinsky indicated.  "We saw a noticeable increase in loan demand around the end of the first quarter.  While the overall economy has stalled somewhat, we are heartened by our quarter-end record level of average loan outstandings."
    Net interest income grew by 11.7 percent in the second quarter, compared to second quarter 1992.  The increase was attributable to a 33- basis-point increase in net interest margin to 4.99 percent in the second quarter 1993, compared to 4.66 percent for the second quarter of 1992, and 4.96 percent for the first quarter 1993 and 4.78 percent for the fourth quarter of 1992.
    Mark Twain's loan quality remained in strong condition in the second quarter.  Non-performing assets fell to 1.55 percent of total loans plus foreclosed real estate, compared to 1.92 percent in the first quarter 1993 and 1.75 percent at year-end 1992.
    Mark Twain's loan loss reserve remained at the same approximate level at quarter-end as it did at year-end 1992 and the first quarter of 1993.  This level now represents 1.60 percent of total loans, compared to 1.63 percent in the first quarter 1993 and 1.65 percent at December 1992.  It represents 232.29 percent of non-performing loans, compared to 168.64 percent in the first quarter 1993 and 155.71 percent at year-end 1992.
    Net charge-offs for the first six months were .26 percent of average total loans (annualized rate of .52 to experience loan loss levels substat?ially below its peer banks and consistent with 1992.
    Mark Twain Bancshares, Inc. is a 30-year-old bank holding company with 30 banking locations in three states:  18 throughout St. Louis, St. Louis County and St. Charles County; as well as five in Kansas City, Mo.; two in Shawnee, Kan.; and five in Belleville and Edwardsville, Ill. Mark Twain operates 43 brokerage locations in six states.  Related financial services include:  Mark Twain Capital Markets Group; Mark Twain Brokerage Services, Inc.; Mark Twain Public Financial Division; Mark Twain Commercial Finance Division; Mark Twain International Division; Mark Twain Leasing Division; Mark Twain Mortgage Division; and Mark Twain Trust Division.  Mark Twin stock is traded over-the-counter under the NASDAQ symbol MTWN.
              MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEET
             (Dollars in thousands, except per share data)
                                        June 30,  June 30,     Dec. 31
                                           1993      1992       1992
    Assets
     Cash and due from banks          $  101,052 $   99,238 $  105,464
     Interest bearing deposits
      with banks                            ---         588        598
    Federal funds sold and securities
     purchased under resale
     agreements                          25,600     39,600     29,400
    Trading account securities           48,880     13,467     23,014
    Debt securities held for sale        40,957      ---        ---
    Mortgage loans held for resale       90,557     76,796     72,030
    Investment securities               410,536    398,665    458,834
    Loans, net of allowance for loan
     losses of $24,300, $23,613 and
     $23,794, respectively            1,493,325  1,432,960  1,416,951
    Premises and equipment               26,971     27,071     27,180
    Accrued income receivable            13,863     16,797     13,400
    Other assets                         58,985    123,661     66,258
    Total Assets                     $2,310,726 $2,228,843 $2,213,129
    Liabilities
    Non-interest bearing deposits    $  364,721 $  292,183 $  345,507
    Interest bearing deposits         1,588,286  1,577,966  1,545,858
    Total Deposits                    1,953,007  1,870,149  1,891,365
    Short-term borrowings               125,949     90,550     94,408
    Other liabilities                    23,586     84,280     33,692
    Long-term debt                       23,892     26,379     26,272
    Total Liabilities                $2,126,434 $2,071,358 $2,045,737
    Shareholders' Equity
    Common stock, $1.25 par value,
     authorized 30,000,000 shares, issued
     14,642,936, 14,121,610 and 14,125,764
     shares, respectively                18,304     17,652     17,657
    Surplus                              46,372     43,547     43,706
    Undivided profits                   121,941     99,792    109,380
    Total                               186,617    160,991    170,743
    Less common treasury stock at cost,
     517,431, 645,000 and 629,803 shares
     respectively                         2,325      3,506      3,351
    Total Shareholders' Equity          184,292    157,485    167,392
    Total Liabilities and
     Shareholders' Equity            $2,310,726 $2,228,843 $2,213,129
                 CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                        Six Months        Three Months
                                       Ended June 30,    Ended June 30,
                                       1993     1992     1993     1992
    Interest From Earnings Assets
    Interest and fees on loans      $58,634  $63,455  $29,677  $31,664
    Interest on investment securities
    Taxable                          18,238   16,901    9,006    8,261
    Non-Taxable                         169      241       76      117
    Interest on trading
     account securities               1,302      776      346      657
    Interest on mortgage loans held
     for resale                       2,462    3,094    1,499    1,906
    Interest on deposits with banks       8       12        2        6
    Interest on federal funds sold and
     securities purchased under resale
     agreements                         193      152      134       71
    Total Interest Income            81,006   84,631   40,740   42,682
    Interest Expense
    Interest on deposits             26,698   36,147   13,157   17,360
    Interest on short-term borrowings 2,415    2,818    1,168    1,583
    Interest on long-term debt          969    1,031      473      513
    Total Interest Expense           30,082   39,996   14,798   19,456
    Net interest income              50,924   44,635   25,942   23,226
    Provision for loan losses         3,793    4,867    2,026    3,298
    Net Interest Income After Provision
    For Loan Losses                  47,131   39,768   23,916   19,928
    Other Income
    Service charges on
     deposit accounts                 4,154    3,725    2,133    1,835
    Securities gains                   ---     1,251     ---      ---
    Other                            16,564   12,953    9,554    6,595
    Total Other Income               20,718   17,929   11,687    8,430
    Other Expenses
    Salaries                         18,121   16,423    9,400    8,263
    Employee benefits                 3,237    3,015    1,577    1,364
    Net occupancy expense             4,342    3,645    2,114    1,815
    Furniture and equipment expense   1,927    1,723      987      864
    Other                            15,631   13,795    8,736    7,354
    Total Other Expenses             43,258   38,601   22,814   19,660
    Income Before Income Taxes       24,591   19,096   12,789    8,698
    Applicable income taxes           8,578    6,356    4,602    2,098
    Net Income                      $16,013  $12,740  $ 8,187  $ 6,600
    Net Income Per Share:
    Primary                         $  1.12  $   .94  $   .57  $   .48
    Fully Diluted                   $  1.08  $   .90  $   .55  $   .47
    Common Dividends Paid Per Share $   .38  $   .33  $   .19  $   .17
             CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
                                          Three Months Ended
                                             June 30, 1993
                                                              Avg.
                                    Avg.                      Yield/
                                   Volume       Interest      Rate
    Assets
    Interest earnings assets:
    Loans(A)                     $1,517,844   $   29,922      7.91
    percent
    Taxable investment securities   460,209        9,006      7.85
    Non-taxable investment
     securities(A)                    5,519          115      8.36
    Trading account securities       26,172          346      5.30
    Mortgage loans held for resale   82,085        1,499      7.32
    Interest bearing
     deposits with bank                 309            2      2.60
    Federal funds sold and securities
     purchased under resale
     agreements                      16,466          134      3.26
    Total interest earning assets 2,108,604       41,024      7.80
    Non-interest earning assets:
    Cash and due from banks         101,801
    Other assets                    100,801
    Allowance for loan losses       (24,312)
       Total                     $2,286,894
    Liabilities and Shareholders' Equity
    Interest bearing liabilities:
    Interest bearing demand
     deposits                    $  206,406        1,213      2.36
    Savings and money
     market deposits                658,655        4,777      2.91
    Time deposits                   695,101        7,167      4.14
    Short-term borrowings           154,998        1,168      3.02
    Long-term debt                   24,366          473      7.79
    Total interest bearing
     liabilities                 $1,739,526       14,798      3.41
    Non-interest bearing liabilities:
    Non-interest bearing deposits   342,582
    Other liabilities                24,674
    Shareholders' equity            180,112
    Total                        $2,286,894
    Net interest income                       $   26,226
    Net interest margin                                        4.99
             CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
                                       Three Months Ended
                                          June 30, 1992
                                                              Avg.
                                     Avg.                    Yield/
                                   Volume       Interest      Rate
    Assets
    Interest earnings assets:
    Loans(A)                     $1,487,749   $   31,973      8.64
    Taxable investment securities   396,666        8,261      3.38
    Non-taxable investment
     securities(A)                    8,235          176      8.60
    Trading account securities       37,305          657      7.08
    Mortgage loans held for resale   99,445        1,906      7.58
    Interest bearing
     deposits with bank                 581            6      4.15
    Federal funds sold and
     securities purchased under
     resale agreements                7,542           71      3.79
    Total interest earning assets 2,037,523       43,050      8.50
    Non-interest earning assets:
    Cash and due from banks          93,896
    Other assets                    104,138
    Allowance for loan losses       (23,921)
       Total                     $2,211,636
    Liabilities and Shareholders' Equity
    Interest bearing liabilities:
    Interest bearing
     demand deposits             $  176,443        1,569      3.58
    Savings and money
     market deposits                670,507        6,506      3.90
    Time deposits                   713,668        9,285      5.23
    Short-term borrowings           152,820        1,583      4.17
    Long-term debt                   26,581          513      7.76
    Total interest bearing
     liabilities                 $1,740,019       19,456      4.50
    Non-interest bearing liabilities:
    Non-interest bearing deposits   284,635
    Other liabilities                32,516
    Shareholders' equity            154,466
    Total                        $2,211,636
    Net interest income                        $   23,594
    Net interest margin                                        4.66
             CONSOLIDATED BALANCE SHEET AND NET INTEREST MARGIN
                                           Six Months Ended
                                             June 30, 1993
                                                              Avg.
                                     Avg.                    Yield/
                                   Volume       Interest      Rate
    Assets
    Interest earnings assets:
    Loans(A)                     $1,498,350   $   59,107      7.95
    Taxable investment
     securities                     466,084       18,238      7.89
    Non-taxable investment
     securities(A)                    6,056          255      8.49
    Trading account securities       39,065        1,302      6.72
    Mortgage loans held for resale   65,747        2,462      7.55
    Interest bearing
     deposits with bank                 485            8      3.33
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Jul 14, 1993
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