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MARK TWAIN BANCSHARES SECOND QUARTER EARNINGS UP 46 PERCENT; YEAR-TO-DATE UP 49 PERCENT

 MARK TWAIN BANCSHARES SECOND QUARTER EARNINGS
 UP 46 PERCENT; YEAR-TO-DATE UP 49 PERCENT
 ST. LOUIS, July 14 /PRNewswire/ -- Mark Twain Bancshares, Inc. (NASDAQ: MTWN) today reported second quarter 1992 earnings of $6.60 million, up 46.3 percent from $4.51 million earned in the second quarter 1991. The quarterly total was the fourth consecutive record-breaking earnings quarter for the 28-year-old company. The figure was 7.5 percent higher than the previous record set in the first quarter of 1992.
 Primary earnings per share in the second quarter grew 30.4 percent to $0.73, up from $0.56 in the second quarter 1991. Fully diluted earnings were up 27.3 percent, to total $0.70 compared to $0.55.
 Return on average assets for the second quarter of 1992 was 1.20 percent, up from 0.84 percent in the second quarter of 1991. Return on common shareholders' equity was 17.19 percent, up from 14.92 percent a year ago. Mark Twain's second quarter results have continued the company's four-quarter trend of improving every measure of profitability over those from the prior quarter.
 For the first six months of 1992, Mark Twain's earnings totaled $12.74 million, up 49.2 percent from $8.54 million earned year-to-date in 1991. Primary earnings per share for the first six months were $1.40, up 30.8 percent compared to $1.07 in 1991. Fully diluted earnings per share totaled $1.35, an increase of 29.8 percent over $1.04 in 1991.
 Return on average assets for the first six months was 1.18 percent, compared to 0.81 percent in 1991. Return on common shareholders' equity was 16.85 percent compared to 14.43 percent last year.
 "Mark Twain's financial results continue to gain momentum with all measures of profitability improving," said John P. Dubinsky, president and chief executive officer of Mark Twain Bancshares, Inc. "We feel confident about reaching our goals for the year and now are beginning specific financial plans for 1993."
 Dubinsky said that Mark Twain has maintained its strategies of growing its non-banking businesses while keeping control of the overhead expenses related to that growth, retaining high quality assets and low loan losses, and focusing on improving margins in its banking business.
 Mark Twain's other income, comprised primarily from fees earned by the company's bond, brokerage, mortgage and trust subsidiaries, increased by 40.2 percent for the quarter and is up 34.5 percent for the first six months of 1992, compared to 1991.
 "Each of these groups continues to become a more important component of Mark Twain's financial picture as well as being an essential part of the full-service financial framework upon which our customers rely," Dubinsky said.
 For the first six months, revenues in the bond division were up 33.4 percent from 1991. The brokerage revenues were up 22.8 percent over the same period last year. Mortgage revenues grew by 85.1 percent from 1991. Mark Twain's trust income was up 21.6 percent.
 Mark Twain's asset quality remained in strong condition at the end of the second quarter. Non-performing assets declined from 2.05 percent in the first quarter 1992 to 1.79 percent in the second quarter 1992, and were lower than the second quarter 1991 level of 2.14 percent. The company's net charge-offs were 0.21 percent for the quarter and 0.25 percent for the first six months, compared to 0.23 percent for the second quarter of 1991 and 0.34 percent for the first six months of last year. Mark Twain maintained a conservative position on its loan loss reserves. The allowance represented 1.62 percent of loans at the end of the period and 237.65 percent of non-performing loans. Both figures are at record high levels.
 "This conservative position was taken even though our charge-offs so far this year are at very low levels. We think a strong balance sheet is a real asset in weaker economic times," Dubinsky said.
 Mark Twain's second quarter results were also enhanced by an upward trending net interest margin. For the second quarter, net interest margin was 4.61 percent, compared to 4.36 percent during the second quarter 1991. For the year-to-date, net interest margin was 4.52 percent, compared to 4.29 percent last year.
 Dubinsky said that the boost in margin was an important contribution to the company's interest income because of a relatively flat level of outstanding loans, related to a soft economy. Mark Twain's loans outstanding at June 30, 1992 were $1.457 billion compared to $1.503 billion in 1991. Despite the actual level being about three percent lower, Dubinsky said that Mark Twain had been consistently building more commercial and industrial business as opposed to real estate loans. He also said that both the volume and quality of new loan requests were up considerably over the past 30 to 60 days.
 With the improvement of the economy, Mark Twain expects to focus again on the growth and expansion of its banking business in the months and years to come. On July 9, 1992, Mark Twain announced its proposed first banking acquisition in Kansas. The acquisition of First National Bank of Shawnee (a Kansas City suburb) demonstrates Mark Twain's continuing desire to acquire healthy institutions. The bank reported a return on average assets of 0.79 percent in 1991 and a return on common shareholders' equity of 10 percent in the same period. The Shawnee banking organization closely parallels the philosophy and lending style of Mark Twain and boasts historically low loan losses. The proposed acquisition is subject to approval by banking regulators.
 Mark Twain's assets at June 30, 1992 were $2.229 billion, up 3.2 percent from $2.159 billion last year. Deposits were slightly lower at $1.870 billion at June 30, 1992, compared to $1.877 billion last year. Total shareholders' equity reached $157.5 million and was up 27.4 percent due in part to the sale in August 1991 of 1 million shares of additional common stock.
 Mark Twain Bancshares, Inc. is a 28-year-old bank holding company with 28 banking 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. 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
 Condensed Consolidated Statement of Condition
 (in thousands of $)
 June 30, June 30, Dec. 31
 1992 1991 1991
 Assets
 Cash and due from banks $ 99,238 $ 99,490 $ 102,361
 Interest bearing deposits
 with banks 588 559 575
 Federal funds sold and securities
 purchased under resale agreement 39,600 9,325 7,900
 Investment securities 398,665 384,280 446,118
 Mortgage loans held for resale 76,796 68,693 47,475
 Loans, net of allowance for loan
 losses of $23,613, $19,860 and
 $22,412, respectively 1,432,960 1,483,115 1,451,262
 Premises and equipment 27,071 26,527 26,773
 Accrued income receivable 16,797 19,408 16,946
 Other assets 137,128 68,015 70,999
 Total assets $2,228,843 $2,159,412 $2,170,409
 Liabilities
 Non-interest bearing deposits $ 292,183 $ 268,561 $ 282,364
 Interest bearing deposits 1,577,966 1,608,017 1,561,990
 Total deposits 1,870,149 1,876,578 1,844,354
 Short-term borrowings 90,550 106,160 120,008
 Other liabilities 84,280 25,539 29,883
 Long-term debt 26,379 27,563 27,369
 Total liabilities 2,071,358 2,035,840 2,021,614
 Shareholders' Equity
 Common stock, $1.25 par value,
 authorized 14,000,000 shares,
 issued 9,414,407, 8,404,865
 and 9,405,265 shares,
 respectively 11,768 10,506 11,757
 Surplus 49,431 32,467 49,303
 Undivided profits 99,792 84,553 91,536
 Total 160,991 127,526 152,596
 Less common treasury stock at
 cost, 430,000, 458,813 and 449,062
 shares respectively 3,506 3,954 3,801
 Total shareholders' equity 157,485 123,572 148,795
 Total liabilities and
 shareholders' equity $2,228,843 $2,159,412 $2,170,409
 MARK TWAIN BANCSHARES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Income
 (in thousands of $ except for per share data)
 Six Months Three Months
 Ended June 30 Ended June 30,
 1992 1991 1992 1991
 Interest from Earnings Assets
 Interst and fees on loans 63,455 $76,753 31,664 $37,457
 Interest on mortgage loans
 held for resale 3,094 1,773 1,906 1,773
 Interest on investment securities
 Taxable 16,901 17,082 8,261 8,488
 Non-Taxable 241 310 117 147
 Interest on depost with banks 12 202 6 86
 Interest on federal funds sold
 and securities purchased under
 resale agreements 152 272 71 137
 Total Interest Income 83,855 96,392 42,025 48,088
 Interest Expense
 Interest on deposits 36,147 51,011 17,360 24,916
 Interest on short-term
 borrowings 2,818 3,600 1,583 1,686
 Interest on long-term debt 1,031 1,224 513 573
 Total Interest Expense 39,996 55,835 19,456 27,175
 Net interest income 43,859 40,557 22,569 20,913
 Provision for loan losses 4,867 5,974 3,298 3,381
 Net interest income after
 provision for loan losses38,992 34,583 19,271 17,532
 Other Income
 Service charges on deposit
 accounts 3,725 2,635 1,835 1,343
 Securities gains 1,251 14 0 14
 Other 13,729 10,204 7,252 5,174
 Total Other Income 18,705 12,853 9,087 6,531
 Other Expenses
 Salaries 16,423 15,706 8,263 7,575
 Employee benefits 3,015 2,800 1,364 1,327
 Net occupancy expense 3,645 3,546 1,815 1,756
 Furniture and equipment
 expense 1,723 1,906 864 993
 Other 13,722 11,837 6,974 6,202
 Total Other Expenses 38,528 35,795 19,280 17,853
 Income before income taxes19,169 11,641 9,078 6,210
 Applicable income taxes 6,429 3,103 2,478 1,700
 Net Income $12,740 $ 8,538 $ 6,600 $ 4,510
 Net Income Per Share:
 Primary $ 1.40 $ 1.07 $ .73 $ .56
 Fully diluted $ 1.35 $ 1.04 $ .70 $ .55
 Common dividends paid
 per share $ .50 $ .44 $ .26 $ .22
 -0- 7/14/92
 /CONTACT: Kris Bakken of Mark Twain Bancshares, 314-889-0781/
 (MTWN) CO: Mark Twain Bancshares, Inc. ST: Missouri IN: FIN SU: ERN


AH -- NY064 -- 9152 07/14/92 13:31 EDT
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