ALBUQUERQUE, N.M., Jan. 24 /PRNewswire-FirstCall/ -- First State
Bancorporation ("First State") (Nasdaq: FSNM) today announced record annual
earnings for 2004 of $15.2 million compared to $14.9 million for 2003, an
increase of 3%. Earnings per diluted share for 2004 were $1.97 compared to
$1.95 per diluted share for 2003. For the quarter ended December 31, 2004 net
income was $4.2 million compared to $3.6 million for the quarter ended
December 31, 2003, an increase of 16%. Earnings per diluted share for the
quarter ended December 31, 2004 were $0.54 compared to $0.47 per diluted share
for the quarter ended December 31, 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990621/FSNMLOGO)
"Our strong earnings in the fourth quarter are the result of outstanding
loan and deposit growth, coupled with an improving net interest margin,"
stated Michael R. Stanford, President and Chief Executive Officer. "We have
also made additional progress in the Colorado market with both loan and
deposit generation," continued Stanford.
At December 31, 2004, total assets increased $169 million, loans increased
$145 million, investment securities increased $56 million, and deposits
increased $205 million over December 31, 2003. First State's total assets
increased 10% from $1.647 billion at December 31, 2003, to $1.816 billion at
December 31, 2004. Loans increased 12% from $1.217 billion at December 31,
2003, to $1.362 billion at December 31, 2004. Investment securities increased
24% from $235 million at December 31, 2003, to $291 million at December 31,
2004. Total deposits grew 17% from $1.196 billion at December 31, 2003, to
$1.401 billion at December 31, 2004. Non-interest bearing deposits grew to
$318 million at December 31, 2004, from $270 million at December 31, 2003,
while interest bearing deposits grew to $1.083 billion at December 31, 2004
from $926 million at December 31, 2003.
Net interest income was $18.9 million for the fourth quarter of 2004
compared to $16.3 million for the same quarter of 2003. For the years ended
December 31, 2004 and 2003, net interest income was $69.6 million and
$61.1 million, respectively. First State's net interest margin was 4.57% and
4.54% for the fourth quarters of 2004 and 2003, respectively. The net
interest margin was 4.47% and 4.59% for the years ended December 31, 2004 and
2003, respectively. The net interest margin increased in the fourth quarter
by 0.12% over the third quarter of 2004 due primarily to rate increases made
by the Federal Reserve Bank, which took effect in the fourth quarter, and
First State's asset sensitive position.
First State's provision for loan losses was $1.0 million for the fourth
quarter of 2004 compared to $1.6 million for the same quarter of 2003. First
State's allowance for loan losses was $15.3 million at December 31, 2004,
compared to $14.1 million at December 31, 2003. The provision for loan losses
for the year ended December 31, 2004 was $4.5 million compared to $5.5 million
for the year ended December 31, 2003. First State's allowance for loan losses
was 1.11% and 1.15% of total loans at December 31, 2004, and December 31,
2003, respectively. The ratio of allowance for loan losses to non-performing
loans was 192% at December 31, 2004 compared to 113% at December 31, 2003.
Non-performing assets equaled 0.51% of total assets at December 31, 2004 and
0.86% at December 31, 2003.
"Our asset quality was again slightly improved in the fourth quarter,"
remarked H. Patrick Dee, Executive Vice President and Chief Operating Officer.
"We are pleased with most of the trends in our loan portfolio, especially our
loan delinquency rates which remain at a very low level," continued Dee.
Non-interest income for the fourth quarter of 2004 was $3.4 million
compared to $3.2 million for the fourth quarter of 2003, an increase of
$171,000 or 5%. Credit and debit card transaction fees decreased $407,000,
the gain on sales of mortgage loans increased $390,000, and other non-interest
income increased $188,000 over the fourth quarter of 2003. Non-interest
income for the year ended December 31, 2004 was $14.2 million compared to
$14.5 million for the year ended December 31, 2003, a decrease of $330,000 or
2%. Other banking service fees decreased $360,000, the gain on sale of
mortgage loans decreased $775,000, the gain on sale or call of investment
securities increased $313,000, and other non-interest income increased
$492,000 over the twelve months of 2003.
Non-interest expenses were $14.6 million and $12.4 million for the
quarters ended December 31, 2004 and 2003, respectively and represent an
increase of $2.2 million or 18%. Salaries and employee benefits increased
$2.2 million, occupancy increased $197,000, credit and debit card interchange
decreased $328,000, legal, accounting, and consulting increased $161,000, and
other non-interest expenses increased $26,000 over the fourth quarter of 2003.
Non-interest expenses for the year ended December 31, 2004 were $55.5 million
compared to $47.2 million for the year ended December 31, 2003. Salaries and
employee benefits increased $4.3 million, occupancy increased $1.5 million,
data processing increased $522,000, equipment related expenses increased
$561,000, and other non-interest expenses increased $908,000 over the twelve
months of 2003. In addition, the year ended December 31, 2004 includes the
sale of 194 mortgage loans with a carrying value of approximately $38 million
obtained in the acquisition of First Community in 2002 to unrelated third
parties that resulted in a loss on sale of loans of $435,000 during the first
quarter of 2004.
In conjunction with its fourth quarter earnings release, First State will
host a conference call to discuss these results, which will be simulcast over
the Internet on Monday, January 24, 2005 at 5:00 p.m. Eastern Time. To listen
to the call and view the slide presentation, visit http://www.fsbnm.com, Investor
Relations. The conference call will be available for replay beginning January
24, 2005 through February 2, 2005 at http://www.fsbnm.com, Investor Relations.
On Friday, January 21, 2005, First State's Board of Directors approved a
two-for-one split of First State's common shares effective February 9, 2005,
and declared a quarterly dividend of $0.07 per share on the post-split shares.
The dividend will be paid to shareholders of record on February 9, 2005,
payable March 9, 2005. Per share and other data will not be presented on an
adjusted basis in financial reports until following the effective date of the
stock split.
First State Bancorporation is a New Mexico based commercial bank holding
company (Nasdaq: FSNM). First State provides services to customers from a
total of 30 branches located in New Mexico, Colorado, and Utah. On Friday,
January 21, 2005, First State's stock closed at $34.75 per share.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)
(unaudited)
Fourth Quarter Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
INCOME STATEMENT HIGHLIGHTS
Interest income $25,356 $21,848 $93,442 $83,713
Interest expense 6,482 5,573 23,875 22,629
Net interest income 18,874 16,275 69,567 61,084
Provision for loan losses (1,040) (1,580) (4,500) (5,543)
Net interest income after
provision for loan losses 17,834 14,695 65,067 55,541
Non-interest income 3,391 3,220 14,191 14,521
Non-interest expense 14,587 12,356 55,478 47,242
Income before income taxes 6,638 5,559 23,780 22,820
Income tax expense 2,427 1,938 8,555 7,969
Net income $4,211 $3,621 $15,225 $14,851
Basic earnings per share $0.55 $0.48 $1.99 $1.99
Diluted earnings per share $0.54 $0.47 $1.97 $1.95
Weighted average basic
shares outstanding 7,671,722 7,585,569 7,656,034 7,475,986
Weighted average diluted
shares outstanding 7,766,530 7,663,780 7,721,768 7,598,449
December 31, 2004 December 31, 2003
BALANCE SHEET HIGHLIGHTS
Total assets $1,815,510 $1,646,739
Loans receivable, net $1,362,464 $1,217,364
Investment securities $290,925 $235,120
Deposits $1,401,303 $1,195,875
Borrowings $192,513 $249,322
Shareholders' equity $144,309 $132,441
Book value per share $18.83 $17.42
Tangible book value per share $13.10 $11.63
Fourth Quarter Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
FINANCIAL RATIOS:
Return on average assets 0.93% 0.92% 0.89% 1.01%
Return on average equity 11.61% 10.89% 10.94% 11.76%
Efficiency ratio 65.52% 63.38% 66.24% 62.49%
Operating expenses to
average assets 3.23% 3.13% 3.25% 3.22%
Net interest margin 4.57% 4.54% 4.47% 4.59%
Average equity to
average assets 8.03% 8.44% 8.16% 8.61%
Leverage ratio 7.87% 7.53% 7.87% 7.53%
Total risk based capital ratio 10.62% 10.64% 10.62% 10.64%
Fourth Quarter Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
NON-INTEREST INCOME:
Service charges on
deposit accounts $1,107 $1,060 $4,410 $4,225
Other banking
service fees 174 220 756 1,116
Credit and debit
card transaction fees 555 962 3,991 3,938
Gain on sale or
call of investment securities 44 13 359 46
Gain on sale of
mortgage loans 889 499 2,718 3,493
Check imprint income 161 172 584 590
Other 461 294 1,373 1,113
$3,391 $3,220 $14,191 $14,521
Fourth Quarter Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
NON-INTEREST EXPENSE:
Salaries and employee
benefits $7,070 $4,895 $24,843 $20,570
Occupancy 2,069 1,872 7,804 6,267
Data processing 770 705 2,934 2,412
Credit and debit
card interchange 81 409 1,580 1,637
Equipment 1,064 1,059 4,258 3,697
Legal, accounting,
and consulting 417 256 1,372 1,128
Marketing 546 615 2,288 2,190
Telephone 318 464 1,219 1,534
Supplies 308 173 922 744
Delivery 212 247 901 1,007
Other real estate owned 67 117 366 354
FDIC insurance premiums 46 43 181 173
Check imprint expense 128 137 537 528
Amortization of intangibles 28 28 111 114
Loss on sale of loans -- -- 435 --
Other 1,463 1,336 5,727 4,887
$14,587 $12,356 $55,478 $47,242
Fourth Quarter Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
AVERAGE BALANCES:
Assets $1,798,111 $1,563,834 $1,705,356 $1,466,715
Earning assets 1,642,355 1,421,818 1,555,627 1,330,828
Loans 1,346,021 1,194,737 1,284,904 1,110,741
Investment securities 291,105 220,855 264,654 204,624
Deposits 1,410,688 1,187,242 1,305,770 1,137,698
Equity 144,349 131,976 139,122 126,328
December 31, 2004 December 31, 2003
LOANS:
Commercial $174,293 12.6% $160,261 13.0%
Real estate -- commercial 683,638 49.6% 577,835 46.9%
Real estate -- one- to
four-family 280,570 20.4% 338,272 27.5%
Real estate -- construction 191,728 13.9% 116,725 9.5%
Consumer and other 28,601 2.1% 30,736 2.5%
Mortgage loans available
for sale 18,965 1.4% 7,656 0.6%
Total $1,377,795 100.0% $1,231,485 100.0%
December 31, 2004 December 31, 2003
DEPOSITS:
Non-interest bearing $317,729 22.7% $269,569 22.5%
Interest bearing demand 254,140 18.0% 199,792 16.7%
Money market savings
accounts 216,769 15.5% 157,887 13.2%
Regular savings 68,671 4.9% 62,981 5.3%
Certificates of deposit
less than $100,000 223,893 16.0% 238,390 19.9%
Certificates of deposit
greater than $100,000 320,101 22.9% 267,256 22.4%
Total $1,401,303 100.0% $1,195,875 100.0%
December 31, 2004 December 31, 2003
ALLOWANCE FOR LOAN LOSSES:
Balance beginning of period $14,121 $11,838
Provision for loan losses 4,500 5,543
Net charge-offs (3,290) (3,260)
Balance end of period $15,331 $14,121
Allowance for loan losses
to total loans 1.11% 1.15%
Allowance for loan losses
to non-performing loans 192% 113%
December 31, 2004 December 31, 2003
NON-PERFORMING ASSETS:
Accruing loans -- 90 days past due $4 $13
Non-accrual loans 7,969 12,515
Total non-performing loans $7,973 $12,528
Other real estate owned 1,255 1,557
Total non-performing assets $9,228 $14,085
Total non-performing assets
to total assets 0.51% 0.86%
This news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements can be identified by the use
of forward-looking words such as "believe," "expect," "may," "will," "should,"
"seek," "approximately," "intend," "plan," "estimate," or "anticipate" or the
negative of those words or other comparable terminology. Forward-looking
statements involve inherent risks and uncertainties. A number of important
factors could cause actual results to differ materially from those in the
forward-looking statement. Some factors include fluctuations in interest
rates, inflation, government regulations, loss of key personnel or inability
to hire suitable personnel, faster or slower than anticipated growth, economic
conditions, competition's responses to the Company's marketing strategy, and
competition in the geographic and business areas in which we conduct our
operations. Other factors are described in First State's filings with the
Securities and Exchange Commission. First State is under no obligation to
update any forward-looking statements.
First State's news releases and filings with the Securities and Exchange
Commission are available through the Investor Relations section of First
State's website at http://www.fsbnm.com.
SOURCE First State Bancorporation
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CONTACT:
H. Patrick Dee, Chief Operating Officer,
+1-505-241-7102, or Christopher C. Spencer, Chief Financial
Officer, +1-505-241-7154, both of First State Bancorporation
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