Printer Friendly

TRANS FINANCIAL EXPANDS FURTHER IN KENTUCKY

 TRANS FINANCIAL EXPANDS FURTHER IN KENTUCKY
 BOWLING GREEN and MAYSVILLE, Ky., Sept. 14 /PRNewswire/ -- Trans


Financial Bancorp, Inc. (NASDAQ-NMS: TRFI), and Dawson Springs Bancorp, Inc. ("DSB"), announced today that they entered into a definitive agreement providing for the acquisition of DSB in an all-stock transaction.
 DSB, headquartered in Maysville, is the $73 million two-bank holding company for Kentucky State Bank in Scottsville (Allen County) and Commercial Bank of Dawson Springs (Hopkins County).
 Under the terms of the agreement, DSB shareholders will receive approximately 560,000 shares of Trans Financial common stock in exchange for all of the shares of outstanding DSB common stock. It is anticipated that the transaction will qualify for the pooling of interests method of accounting. At Friday's closing price, the transaction would be valued at $9.7 million.
 Douglas M. Lester, chairman and chief executive officer of Trans Financial, stated, "These commercial banks are widely recognized for their high profitability and leading market share in the communities they serve. This transaction only adds to Trans Financial's dominant presence in south central Kentucky."
 DSB Chairman Robert D. Vance said, "The benefits of affiliation with Trans Financial are many and varied. Their commitment to economic development in their communities is well known. The full range of Trans Financial products and services will contribute significantly to our product lines and enable us to participate more fully in the economic development of Allen and Hopkins Counties and surrounding areas."
 Trans Financial will merge the two banks into its commercial bank subsidiary, Trans Financial Bank, N.A., upon the closing of the transaction.
 The acquisition is subject to the approval of the shareholders of DSB and the appropriate regulatory authorities. It is anticipated that the transaction will be concluded by year end.
 Trans Financial serves Kentucky and Tennessee through 27 offices. Its stock is traded in the NASDAQ National Market System under the symbol TRFI.
 TRANS FINANCIAL BANCORP, INC.
 DAWSON SPRINGS BANCORP, INC.
 Financial Information
 For the Six Months Ended June 30, 1992
 Trans Financial Dawson Springs Pro
 Bancorp Bancorp Forma
 Average:
 Loans, net $409,656 $49,959 $459,615
 Earning assets 596,633 68,446 665,079
 Assets 650,079 73,684 723,763
 Deposits 566,459 64,071 630,530
 Common equity 51,987 5,087 57,074
 Total equity 52,366 6,373 57,074
 Net interest income (fte) 12,486 1,598 14,084
 Loan loss provision 700 0 700
 Non-interest income 4,683 281 4,964
 Non-interest expense 10,689 1,037 11,726
 Income taxes 1,945 271 2,216
 Net income $ 3,638 $ 529 $ 4,167
 Primary EPS $0.85 $10.04 $0.86
 Fully diluted EPS $0.85 $10.04 $0.86
 Net charge-offs
 (recoveries) $ 726 $ (18) $ 708
 Net charge-offs/average loans
 (as a percent) 0.35 -0.07 0.31
 Return on average assets
 (as a percent) 1.12 1.44 1.15
 Return on average common
 equity (as a percent) 13.94 20.80 14.60
 Tax-equivalent adjustment $ 196 $ 42 $ 238
 Net interest margin (fte)
 (as a percent) 4.21 4.67 4.24
 Efficiency ratio
 (as a percent) 62.26 55.19 61.56
 Average outstanding shares 4,274 51 4,834
 Transaction Terms:
 11.04 shares of Trans Financial common stock for
 each share of DSB common stock.
 DSB outstanding shares and share equivalents 50,733
 Exchange rate x 11.04
 Approximate number of shares TRFI to be issued 560,000
 Closing price 9/11/92 $17.25
 Approximate transaction value $9.66 million
 Transaction pricing:
 Multiple of June 30, 1992 DSB book value
 (using 9/11/92 closing price of $17.25) 1.94x
 Multiple of trailing twelve months earnings 9.8x
 TRANS FINANCIAL BANCORP, INC.
 DAWSON SPRINGS BANCORP, INC.
 Financial Information -- (continued)
 June 30, 1992
 Trans Financial Dawson Springs Pro
 Bancorp(A) Bancorp Forma
 Loans, net $489,601 $50,741 $540,342
 Loan loss reserve 4,344 855 5,199
 Earning assets 784,464 68,615 853,079
 Assets 855,903 73,023 928,926
 Deposits 749,277 63,364 812,641
 Common equity 62,842 5,264 68,106
 Total equity $ 62,842 $ 6,550 $ 68,106
 Book value per share $12.69 $104.11 $12.35
 Goodwill $ 2,489 $ 1,900 $ 4,389
 Outstanding shares 4,953 51 5,513
 Number of full-service offices 27 4 31
 Nonaccrual loans $ 3,473 $ 716 $ 4,189
 Restructured loans 743 768 1,511
 Loans 90+ days past due 1,159 490 1,649
 Total nonperforming loans 5,375 1,974 7,349
 Other real estate owned 5,617 0 5,617
 Total nonperforming assets $ 10,992 $ 1,974 $ 12,966
 Nonperforming loans/loans
 (as a percent) 1.10 3.89 1.36
 Nonperforming assets/assets
 (as a percent) 1.28 2.70 1.40
 (A) -- As adjusted for the acquisition of five Central Tennessee Heritage Federal branches on Aug. 7, 1992.
 Note: Assumes transaction accounted for under pooling of interests method which would effectively restate Trans Financial's historical financial information to include that of DSB's.
 TRANS FINANCIAL BANCORP, INC.
 DAWSON SPRINGS BANCORP, INC.
 Financial Information -- (continued)
 Subsidiary Bank Performance
 Kentucky State Bank Commercial Bank
 of Dawson Springs
 Five Year Average
 (as a percent):
 Return on average assets 1.85 2.09
 Return on average equity 22.52 21.46
 Net interest spread 5.17 5.29
 Net overhead expense/average assets 1.90 1.57
 Net charge-offs/average loans 0.05 0.04
 Capital assets 8.28 9.93
 Six months ended 6/30/92 (as a pct):
 Return on average assets 1.95 2.07
 Return on average equity 22.42 22.55
 Net interest spread 5.08 4.45
 Net overhead expense/average assets 1.93 1.42
 NOTE: "Five year average" is for the period 1987-1991.
 "Subsidiary Bank" Source: FFIEC Call Reports.
 -0- 9/14/92
 /CONTACT: David A. Blackburn, 502-745-7504, or Barry D. Bray, 502-745-7530, both of Trans Financial in Bowling Green; or Robert D. Vance, chairman of DSB in Maysville, 606-564-4450/
 (TRFI) CO: Trans Financial Bancorp, Inc.; Dawson Springs Bancorp, Inc. ST: Kentucky IN: FIN SU: TNM


GK-TS -- NY020 -- 9055 09/14/92 10:46 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 14, 1992
Words:1023
Previous Article:WEIGHT WATCHERS ADOPTS RASPBERRY
Next Article:CAL-VET ON DUTY HELPING VETERANS WITH HOMES DAMAGED BY FOUNTAIN FIRE
Topics:


Related Articles
TRANS FINANCIAL DECLARES DIVIDEND
TRANS FINANCIAL'S MARKET CAP REACHES ALL-TIME HIGH
TRANS FINANCIAL ANNOUNCES REGULAR QUARTERLY DIVIDEND INCREASE
TRANS FINANCIAL BANCORP EXPANDS FURTHER IN KENTUCKY
TRANS FINANCIAL BANCORP DECLARES REGULAR QUARTERLY DIVIDEND
TRANS FINANCIAL BANCORP COMPLETES MERGER WITH TRANS KENTUCKY BANCORP
TRANS FINANCIAL BANCORP, INC. EXPANDS KENTUCKY FRANCHISE
TRANS FINANCIAL BANCORP COMPLETED MERGER WITH KENTUCKY COMMUNITY BANCORP
TRANS FINANCIAL BANCORP MERGER WITH PEOPLES FINANCIAL SERVICES APPROVED BY SHAREHOLDERS
TRANS FINANCIAL BANCORP CONTRIBUTES $25,000 TO FHLB AFFORDABLE HOUSING FOUNDATION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters