LEAWOOD, Kan., Jan. 21 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB) today
announced record net income for 1998 of $9.1 million, or $0.55 per diluted
share. Net income increased 144% and net income per diluted share increased
45%, respectively, over 1997 net income of $3.7 million, or $0.38 per diluted
share, as reported at this same time last year. Total assets at December 31,
1998 were $1.1 billion, a 116% increase over December 31, 1997.
Results for 1998 reflect the Company's internal growth and the effects of
the eight acquisitions completed during the year. Purchase acquisitions are
included in 1998 results as of the dates of acquisition. Pooling acquisitions
are included in 1998 results for the entire year, including a pro forma tax
adjustment relating to one acquisition, Citizens Bank of Tulsa, which was a
sub-chapter S corporation prior to acquisition. Unless otherwise noted, the
1997 results set forth in this release do not include information from the
pooling acquisitions completed in 1998. For example, net income for 1997, as
restated to include the results of the pooling acquisitions, was $8.3 million,
or $0.54 per diluted share. Compared to the restated 1997 results, 1998 net
income of $9.1 million and net income per diluted share of $0.55 represent
increases of 10% and 1.9%, respectively. The Company's prior period financial
statements to be filed on its Form 10-K will be restated to include
information from the pooling acquisitions completed in 1998.
Michael W. Gullion, President and Chief Executive Officer, commented: "We
are pleased to report record results for 1998. Our fourth quarter was
especially strong when one considers that results included, as anticipated,
one-time closing costs from three acquisitions and payment for the
comprehensive profit improvement study we commissioned earlier in the year.
The implementation of recommendations based on this study is starting to
produce results in conjunction with full integration of the entities we
acquired last year into the Gold Banc family."
"In 1999," continued Gullion, "we plan to focus even more intently on
leveraging further operating efficiencies across our expanded organization,
while using this larger platform to explore additional accretive acquisition
opportunities on a selective basis. In 1998, we made substantial progress
toward our ultimate goal of building a broad-based, high-performance financial
services organization. During the year, we split our stock two-for-one,
raised our dividend by one-third, and passed the $1 billion asset milestone.
We also closed eight accretive acquisitions, grew our number of banking
locations from 11 to 28 encompassing 18 communities in three states, and
extended our presence into the particularly attractive and fast growing Tulsa
marketplace. Further, we leveraged technology to enhance the
user-friendliness of both our in-person and automated banking systems, and we
upgraded and streamlined our customer service capabilities."
Gullion also observed that total assets, loans and deposits attained
record levels for 1998, driven by an ongoing strong regional economy and the
effect of completed acquisitions. "Our performance continues to be led by
strong loan activity at our flagship, Exchange National Bank, in Johnson
County, Kansas. We added six banks to our core community banking franchise in
1998, and complemented this with our acquisitions of Midwest Capital
Management, our broker/dealer business, and The Trust Company. We can now
offer our banking customers value-added services not found at many other
community banks while adding to our fee income. We accomplished all this in a
very competitive environment while maintaining Gold Banc's traditionally high
credit quality standards. Overall, Gold Banc arrives well-prepared to meet
the challenges of 1999."
As of December 31, 1998, total assets increased 116.0% to $1.1 billion,
net loans rose 111.8% to $723.4 million and deposits increased 121.1% to
$926.7 million, versus December 31, 1997. Net interest income for 1998
increased 133.4% to $35.6 million versus $15.3 million as reported for 1997 at
this time last year. After adjusting for provisions for loan losses, net
interest income for 1998 was $32.8 million compared with $14.4 million
reported in 1997 at this time last year, an increase of 128.1%.
Gold Banc's strong emphasis on credit quality continued, with $3.7 million
in total non-performing loans reported at the end of 1998, or .50% of total
loans, compared to .26% reported at this time last year. Gold Banc's
allowance for loan losses at December 31, 1998 was $10.8 million, or 1.46% of
loans and 290.6% of non-performing loans compared to 1.36% and 529.7%,
respectively, for the same period at this time last year. Net charge-offs
were .21% of average loans for 1998, versus a net recovery of .01% to average
loans reported at this time last year.
Non-interest income for 1998 was $8.8 million, an increase of 216.2%
compared to $2.8 million reported for 1997. The Company's ratio of
non-interest income to net interest income for 1998 was 24.7% compared to
18.2% as reported at this time last year for 1997, reflecting the increase in
fee-based income.
Non-interest expenses increased 143.2% to $28.1 million for 1998 compared
to $11.5 million for 1997 as reported at this time last year. The increase is
attributable to growth of the Company's employee base and operations as a
result of eight acquisitions closed during 1998.
Fourth Quarter 1998 Results
Net income for the fourth quarter ended December 31, 1998 includes
previously anticipated one-time costs associated with the closing of three
acquisitions during the quarter, as well as payment of planned one-time costs
associated with the comprehensive profitability improvement study commissioned
by the Company earlier in 1998. Excluding these one-time costs, which totaled
approximately $2.5 million, net income for the fourth quarter of 1998 would
have been $0.16 per diluted share, compared to $0.10 per diluted share as
reported at this time last year for the fourth quarter of 1997, a 60.0%
increase. Including these one-time costs, net income for the fourth quarter
of 1998 was $1.0 million, or $0.06 per diluted share, compared to
$1.1 million, or $0.10 per diluted share as reported at this time last year
for the fourth quarter of 1997.
Net interest income for the fourth quarter of 1998 increased 114.6% to
$9.6 million versus $4.5 million for the fourth quarter of 1997 as reported at
this time last year. After adjusting for provisions for loan losses, net
interest income for the fourth quarter of 1998 was $8.6 million compared with
$4.1 million as reported at this time last year for the fourth quarter of
1997, an increase of 108.0%.
Status of Progress on Year 2000 Compliance Initiatives
Gullion commented: "The Company has made good progress in actively
addressing potential Year 2000 transition issues as they relate to our
subsidiaries and corporate systems. As with other financial institutions,
Gold Banc engages in a significant amount of business and reporting activity
that depends on accurate date information, such as interest and other
calculations pertaining to loans, deposits, assets and investments. We have
taken steps to implement permanent solutions, rather than waiting until
potential problems develop. Our task force began work on identifying and
assessing potential issues in 1997, and we are currently implementing computer
hardware and software solutions, and appropriate resources have been allocated
for hardware systems and software, as needed, at each of our subsidiaries."
"Furthermore," Gullion added, "Year 2000 issues are also being addressed
as they relate to non-computer hardware, information processing systems,
environmental systems and the Company's vendors and customers in accordance
with the Company's timeline for Year 2000 compliance and within regulatory
guidelines. Present progress indicates that Gold Banc will comply with its
timeline and we expect to be fully Year 2000 compliant within the timeframes
specified under regulatory guidelines. We project that actual expenditures
will be approximately $1 million, including items such as computer hardware
and software that may carry three to five year depreciable lives. Additional
details on our progress will also be available in the Company's Form 10-K and
Form 10-Q filings with the SEC."
Acquisitions Completed During the Fourth Quarter 1998
First State Bank & Trust Company - Pittsburg, Kan.
On October 21, 1998 the Company acquired First State Bancorp, Inc. of
Pittsburg, Kan. in a tax-free exchange of stock valued at approximately
$25.0 million. First State Bank & Trust Company, a wholly owned subsidiary of
First State Bancorp, had total assets of $117.9 million, deposits of
$104.2 million and loans of $66.7 million at December 31, 1998. The
transaction was accounted for as a pooling of interest.
Citizens Bank of Tulsa - Tulsa, Okla.
On December 10, 1998, the Company acquired Citizens Bancorporation, Inc.
of Tulsa, Okla. in a tax-free stock swap valued at approximately $56 million.
Citizens Bank of Tulsa, a wholly owned subsidiary of Citizens Bancorporation,
had total assets of $253.6 million, core deposits of $231.3 million and net
loans of $179.9 million at December 31, 1998. The Citizens Bank of Tulsa
transaction was accounted for as a pooling of interest.
The Trust Company - St. Joseph, Mo.
On December 31, 1998, the Company acquired The Trust Company, a Midwest
trust services business headquartered in St. Joseph, Mo., in a tax-free
exchange of stock valued at approximately $4.3 million. The Trust Company
provides trust services and maintains personal employee benefit and charitable
trust accounts for over 1,300 customers throughout the Midwest. At December
31, 1998, The Trust Company had approximately $250 million in trust assets
under management. The transaction was accounted for as a pooling of interest.
About the Gold Banc Family
Gold Banc is a multi-bank holding company which owns and operates a
growing family of community banks which provide a full range of commercial and
consumer banking services in their respective markets, with each bank
retaining its board of directors, local identity and decision-making
authority. In addition, Gold Banc owns Midwest Capital Management, Inc., a
full service broker/dealer and investment firm based in Kansas City, Mo., and
The Trust Company, a Midwest trust company based in St. Joseph, Mo.
Safe Harbor Statement
This news release contains comments or information that constitute
forward-looking statements (within the meaning of the Private Securities
Litigation Reform Act of 1995), which involve significant risks and
uncertainties. Actual results may differ materially from the results
discussed in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) expected cost savings from a
merger cannot be fully realized or realized within the expected time frame;
(2) revenues following the merger are lower than expected; (3) competitive
pressures among depository institutions increase significantly; (4) costs or
difficulties related to the integration of the business of the organizations
are greater than expected; (5) changes in the interest rate environment reduce
interest margins; (6) general economic conditions, either nationally or in
states in which the combined company will be doing business, are less
favorable than expected; and (7) legislation or regulatory changes adversely
affect the businesses in which the combined company would be engaged.
Visit the Gold Banc web site at: http://www.goldbanc.com
Gold Banc Corporation, Inc.
Reported Selected Consolidated Operating Data
(Dollars in thousands except per-share amounts)
As previously (unaudited)
(unaudited) reported Restated
Year to date Year to date Year to date
earnings as of earnings as of earnings as of
Dec. 31, 1998 Dec. 31, 1997(A) Dec. 31, 1997
Selected Operating Data:
Interest income $75,196 $31,948 $55,531
Interest expense 39,588 16,692 27,975
Net interest income 35,608 15,256 27,556
Provision for loan losses 2,781 865 2,130
Net interest income after
provision for loan losses 32,827 14,391 25,426
Non-interest income:
Service charges 3,230 1,060 2,446
Gain (loss) on sale of assets (85) 198 203
Gain on sale of mortgage loans 1,106 679 679
Gain on sale of securities 94 104 116
Investment trading fees &
commissions 3,265 - -
Other 1,168 735 1,309
Total Non-interest income 8,778 2,776 4,753
Non-interest expenses:
Salaries and employee benefits 13,307 6,244 8,884
Occupancy expense 4,138 1,931 2,882
Federal deposit insurance premiums 103 96 95
Other 10,530 3,277 5,677
Total Non-interest expenses 28,078 11,548 17,478
Net Income before income taxes 13,527 5,619 12,701
Income tax expense (B) 4,404 1,888 4,406
Net Income $9,123 $3,731 $8,295
Per Share Data: (C)
Net Income per share $0.55 $0.38 $0.54
Book Value per share $4.88 $4.12 $4.19
Period end shares outstanding 17,182 10,133 15,890
Weighted Avg. Shares Outstanding 16,707 9,725 15,482
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa.
(C) Restated for the 2 for 1 stock split in May 1998.
Gold Banc Corporation, Inc.
Reported Selected Consolidated Operating Data
(Dollars in thousands except per-share amounts)
(unaudited)
As previously (unaudited)
(unaudited) reported reported
Quarter Quarter Quarter
earnings as of earnings as of earnings as of
Dec. 31, 1998 Dec. 31, 1997(A) Dec. 31, 1997
Selected Operating Data:
Interest income $20,624 $9,324 $15,749
Interest expense 11,028 4,853 7,925
Net interest income 9,596 4,471 7,824
Provision for loan losses 980 330 805
Net interest income after
provision for loan losses 8,616 4,141 7,019
Non-interest income: -
Service charges 1,897 323 1,442
Gain (loss) on sale of assets (75) 95 (7)
Gain on sale of mortgage loans 337 178 178
Gain (loss) on sale of
securities 2 (87) 15
Investment trading fees
& commissions 1,088 - -
Other (461) 193 (140)
Total Non-interest income 2,788 702 1,488
Non-interest expenses:
Salaries and employee benefits 4,035 1,669 2,631
Occupancy expense 1,393 495 736
Federal deposit insurance
premiums 30 20 19
Other 4,430 1,060 1,735
Total Non-interest
expenses 9,888 3,244 5,121
Net Income before income taxes 1,516 1,599 3,386
Income tax expense (B) 517 541 1,182
Net Income $999 $1,058 $2,204
Per Share Data: (C)
Net Income per share $0.06 $0.10 $0.14
Book Value per share $4.88 $4.12 $4.19
Period end shares
outstanding 17,182 10,133 15,890
Weighted Avg. Shares
Outstanding 16,707 10,133 15,890
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa.
(C) Restated for the 2 for 1 stock split in May 1998.
Gold Banc Corporation, Inc.
Consolidated Condensed Statements of Condition
(Dollars in thousands except per-share amounts)
December 31, 1998 and 1997
(unaudited) (unaudited)
As of Reported Restated
Dec. 31, 1998 Dec. 31, 1997(A) Dec. 31, 1997
Assets
Cash and due from banks $36,305 $16,673 $29,187
Interest-bearing deposits
& Fed funds $62,798 $24,438 $49,082
Loans (net of allowance
for loan losses of $10,752 as$723,364 $341,488 $545,530
of December 31, 1998 and
$4,677 and $7,736 as of
December 31, 1997)
Investment securities $229,520 $104,437 $164,535
Premises and equipment $26,183 $15,363 $20,227
Other assets $33,186 $12,198 $15,903
Total Assets $1,111,356 $514,597 $824,464
Liabilities
Deposits $926,687 $419,139 $697,163
Short-term borrowings 6,644 18,166 20,066
Other borrowings and
long-term debt 86,276 32,086 35,174
Other liabilities 7,938 3,473 5,495
Total liabilities 1,027,545 472,864 757,898
Stockholders' Equity
Common stock (B) $17,182 $10,133 $15,890
Additional paid-in capital 29,200 17,199 20,529
Retained earnings 37,235 14,605 30,028
Other comprehensive income 391 32 355
84,008 41,969 66,802
less: unearned compensation (197) (236) (236)
Total Stockhoders' Equity 83,811 41,733 66,566
Total Liabilities and
Stockholders' Equity $1,111,356 $514,597 $824,464
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) Restated for the 2 for 1 stock split in May 1998.
Gold Banc Corporation, Inc.
Key Ratios and Other Data
December 31, 1998 and 1997
(Dollars in thousands except per-share data)
As Previously Percent
reported Increase
Dec. 31,1998 Dec. 31, 1997(A) (Decrease)
Key Ratios and Other Data
Net interest margin 4.11% 3.78% 8.73
Net interest spread 3.67% 3.35% 9.55
Return on average assets 0.93% 0.84% 10.71
Return on average equity 11.59% 9.26% 25.16
Leverage ratio 8.80% 11.70% (24.79)
Non-performing loans to
total loans 0.50% 0.26% 92.31
Non-performing assets to
total assets 0.47% 0.31% 51.61
Allowance for loan losses
to total loans 1.46% 1.36% 7.35
Allowance for loan losses
to non-performing 290.59% 529.67% (45.14)
Net loan charge-offs
(recoveries) to avg. loans 0.21% (0.01%) (2,200.00)
Efficiency Ratio (core) 61.49% 67.89% 9.43
Income Statement Highlights (B) (C)
Net Income $9,123 $3,731 144.52
Net Interest Income 35,608 15,256 133.40
Loan Loss Provision 2,781 865 221.50
Noninterest Income 8,778 2,776 216.21
Noninterest Expense 28,078 11,548 143.14
Income Tax Expense 4,404 1,888 133.26
Earnings Per Share $0.55 0.38 44.74
At At
Balance Sheet Highlights (C) Dec. 31, 1998 Dec. 31, 1997
Total Assets $1,111,356 $514,597 115.97
Total Loans, net $723,364 $341,488 111.83
Nonperforming Loans $3,700 $1,149 222.02
Total Deposits $926,687 $419,139 121.09
Stockholders' Equity $83,811 $41,733 100.83
Book Value Per Share $4.88 $4.12 18.45
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa.
(C) Restated for the 2 for 1 stock split in May 1998.
Gold Banc Corporation, Inc.
Key Ratios and Other Data
December 31, 1998 and 1997
(Dollars in thousands except per-share data)
Percent
Restated Increase
Dec. 31, 1998 Dec. 31, 1997 (Decrease)
Key Ratios and Other Data 4.11% 4.14% (0.72)
Net interest margin 3.67% 3.58% 2.51
Net interest spread 0.93% 1.13% (17.70)
Return on average assets 11.59% 13.07% (11.32)
Return on average equity 8.80% 11.00% (20.00)
Leverage ratio 0.50% 0.21% 138.10
Non-performing loans to
total loans 0.47% 0.23% 104.35
Non-performing assets to
total assets 1.46% 1.40% 4.29
Allowance for loan losses
to total loans 290.59% 673.28% (56.84)
Allowance for loan losses
to non-performing 0.21% 0.10% 110.00
Net loan charge-offs
(recoveries) to avg. loans 61.49% 58.34% 5.40
Efficiency Ratio (core)
Income Statement Highlights (a)(b)
Net Income $9,123 $8,295 9.98
Net Interest Income 35,608 27,556 29.22
Loan Loss Provision 2,781 2,130 30.56
Noninterest Income 8,778 4,753 84.68
Noninterest Expense 28,078 17,478 60.65
Income Tax Expense 4,404 4,406 (0.05)
Earnings Per Share $0.55 $0.54 1.85
At At
Balance Sheet Highlights (b) Dec. 31, 1998 Dec. 31, 1997
Total Assets $1,111,356 $824,464 34.80
Total Loans, net $723,364 $545,530 32.60
Nonperforming Loans $3,700 $1,149 222.02
Total Deposits $926,687 $697,163 32.92
Stockholders' Equity $83,811 $66,566 25.91
Book Value Per Share $4.88 $4.19 16.47
(a) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(b) Restated for the 2 for 1 stock split in May 1998.
SOURCE Gold Banc Corporation, Inc.
 back to top
Related links:
http://www.goldbanc.com
CONTACT:
Keith E. Bouchey, Exec. V.P. & CFO, e-mail,
keithb@goldbanc.com, or Brian J. Ruisinger, Investor Relations,
e-mail, brianr@goldbanc.com, both of Gold Banc, 913-451-8050; or
General Information, Paul Scheeler, 312-640-6742, e-mail,
pas@chi.frbd.com, Analysts-Investors, Janine Warell,
312-640-6775, e-mail, jjw@chi.frbd.com, or Media Inquiries, Bess
Gallanis, 312-640-6737, e-mail, bag@chi.frbd.com, all of The
Financial Relations Board
NOTE TO EDITORS: For more information on Gold Banc toll-free via
fax, simply dial 1-800-PRO-INFO, follow the voice menu prompts
and enter the company code "GLDB" on any touch tone phone.
|
