ATLANTA, Jan. 25 /PRNewswire/ -- Premier Bancshares, Inc. (Amex: PMB)
announces their preliminary results for the fourth quarter 1998. The Company
reported net earnings of $3,834,000, or $.14 per share for the quarter. This
compares to net earnings of $4,589,000, or $.17 per share for the same period
in 1997. Excluding restructuring and merger expenses, the net earnings from
continuing operations were $5,341,000, or $.20 per share compared to
$5,020,000, or $.19 per share for the same period last year. The Company
incurred $2,010,000 of restructuring and merger related expenses during the
quarter vs. $575,000 for the fourth quarter of 1997. The majority of these
expenses resulted in severance and operating costs associated with the
consolidation of several bank branches and bank charters.
Year-to-date, the Company reported record net earnings of $20,913,000, or
$.79 per share, compared to $18,737,000, or $.72 per share for the twelve
months ended December 31, 1997, an increase of 11.6% over the comparable
period. Excluding restructuring and merger expenses, net earnings from
continuing operations were $24,449,000, or $.93 per share compared to
$19,660,000, or $.76 per share, an increase of 24.4% over the comparable
period. The Company incurred $4,715,000 of merger related expenses during
1998 vs. $1,264,000 during 1997.
All financial results have been restated for the five bank mergers closed
during 1998.
During the fourth quarter, the Company decided to consolidate all of its
banking units into one charter. The data processing conversions for The Bank
of Gwinnett and Central & Southern Bank were completed in December, and the
remaining operational conversions are scheduled to be completed by the end of
April 1999. Applications have been filed with the appropriate banking
regulators to merge all of the banking charters into Premier Bank by April 30.
The Company also has begun the process of consolidating overlapping
locations that resulted from recent acquisitions and looking for additional
growth opportunities. During the first and second quarter of 1999, two
locations in Lawrenceville, Georgia; two locations in Snellville, Georgia; and
two locations in Cumming, Georgia will be consolidated. Additionally, on
February 8, 1999, the Life College Office of Premier Bank will be sold to
Southern National Bank, a community bank headquartered in Cobb County,
Georgia. Under construction in Cobb County is Premier Bank's newest banking
facility, Marietta Square, which is set to open in the downtown Marietta area
in mid-May.
Robert C. Oliver, President and Chief Operating Officer, said, "The
consolidation of bank charters will enhance our operating efficiencies and
will provide our banking customers with a seamless operations network
throughout the state of Georgia. The consolidation of branches and charters
will generate a one-time charge of $1,500,000, but will result in annual cost
savings of $2,800,000."
In conjunction with the reorganization, there will be several management
changes. Glenn S. White, President of Premier Bank, has resigned from the
boards of Premier Bancshares and Premier Bank. He will continue to serve as a
Senior Vice President managing a loan portfolio of customers he has developed
during his banking career in Gwinnett County. This change of role will allow
him more flexibility with his time and his personal investments.
Winston Brown, Vice Chairman of Premier Lending Corporation; Charles M.
Wages, Lawrenceville City President; and Andy Pourchier, Executive Vice
President and Chief Financial Officer of Premier Bank, have decided to retire.
Brown and Wages will remain on the boards of directors of Premier Lending
Corporation and Premier Bank respectively.
Darrell D. Pittard, Chairman and Chief Executive Officer, said, "The three
Federal Reserve interest rate cuts totaling 75 basis points reduced the
Company's net interest margin by 55 basis points by the end of the fourth
quarter. Over the next several months, we will be aggressively managing our
assets and liabilities to reduce our deposit and funding costs and return our
net interest margin to our traditional levels. Additionally, early in the
fourth quarter, the financial market turmoil temporarily depressed premiums
paid on loans sold in the secondary market; generally these premiums have now
returned to expected levels."
Through internally generated growth and acquisitions the Company's assets
have increased from $794 million on December 31, 1997, to $1.5 billion on
December 31, 1998. Darrell D. Pittard, Chairman and Chief Executive Officer
of the Company, said "During 1998, we have doubled the size of the Company to
exceeding $1.5 billion in assets and doubled mortgage loan production reaching
the $1.1 billion level. This growth was achieved while operating profits were
increased 24.4% over 1997." He continued, "Often during periods following
completion of mergers a paralysis and loss of focus occurs at the acquired
company; we were fortunate to find ways to increase loan growth during 1998 by
21% on a pooled, restated basis. We achieved these things following the
completion and assimilation of 6 bank mergers over the past 13 months."
On October 2, 1998, the Company announced the opening of 5 new mortgage
and construction lending offices in the Southeast. Premier Lending
Corporation, the Company's mortgage lending subsidiary, has opened residential
mortgage lending offices in the following cities: Augusta, Georgia; Warner
Robins, Georgia; St. Simons Island, Georgia; Charlotte, North Carolina; and
Chattanooga, Tennessee; and established a Correspondent Lending Division in
Augusta, Georgia. Pittard said, "These new production facilities are
beginning to generate significant loan volumes."
On January 21, 1999, the Company declared a quarterly cash dividend of
$0.09 per share. The Company declared the dividend payable on
February 26, 1999, to shareholders of record as of February 12, 1999.
On December 17, 1998, the Company announced the completion of the merger
with Frederica Bank & Trust, operating in St. Simons Island, Georgia, and
provided the Company a Coastal Georgia presence.
Premier Bancshares, Inc. is the third largest bank holding company
headquartered in Georgia with subsidiaries operating over 40 offices in
Georgia and other metropolitan areas throughout the Southeast.
Both the common stock of Premier Bancshares, Inc. and the preferred
securities of Premier Capital Trust I are traded on the American Stock
Exchange under the symbols PMB and PMB.PR, respectively. Additional financial
information regarding Premier Bancshares, Inc. is available from Michael E.
Ricketson, Executive Vice President and Chief Financial Officer of Premier
Bancshares, Inc. at 404-814-3090.
With the exception of historical information, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties.
PREMIER BANCSHARES, INC
(preliminary results)
(dollars in thousands except per share data)
QUARTER ENDED DECEMBER 31 1998 1997 Change Percent
Net income $ 3,834 $4,589 (755) -16.45%
Net income (excluding merger/
restructuring charges) 5,341 5,020 321 6.39%
Net interest income(FTE) 15,216 14,755 461 3.12%
Net interest income 15,122 14,573 549 3.77%
Noninterest income 10,345 7,240 3,105 42.89%
Noninterest expense 18,588 13,703 4,885 35.65%
Reorganization & merger expenses 2,010 575 1,435 249.49%
Provision for income taxes 2,991 2,726 265 9.72%
Provision for loan losses 210 795 (585) -73.58%
PER SHARE DATA
Net income, diluted $ 0.14 $ 0.17 -0.03 -17.65%
Net income (excluding merger/
restructuring charges) $ 0.20 $ 0.19 0.01 5.26%
FINANCIAL RATIOS
Return on average assets 1.04% 1.45%
Return on average assets(excluding
merger/restructuring charges) 1.44% 1.59%
Return on average equity 11.22% 15.38%
Return on average equity(excluding
merger/restructuring charges) 15.64% 16.82%
Net interest margin (FTE) 4.44% 4.99%
Total shareholders equity to assets 8.89% 9.09%
Allowance for loan losses to loans,
net of unearned and loans held
for sale 1.36% 1.62%
Allowance for loan losses to loans,
net of unearned 1.21% 1.51%
ENDING BALANCES AS OF DECEMBER 31
Total assets $1,521,062 $1,280,499 240,563 18.79%
Earning assets 1,424,472 1,187,178 237,294 19.99%
Loans, net of unearned &
loans held for sale 1,034,338 850,556 183,782 21.61%
Loans held for sale 124,900 62,738 62,162 99.08%
Allowance for loan losses 14,080 13,782 298 2.16%
Investments and federal
funds sold 390,134 273,884 116,250 42.44%
Deposits 1,179,962 1,016,180 163,782 16.12%
Shareholders' equity 135,212 116,368 18,844 16.19%
Intangible Assets 4,500 5,001 (501) -10.02%
AVERAGE BALANCES FOR THE QUARTER
Total assets $1,468,471 $1,252,454 216,017 17.25%
Earning assets 1,358,310 1,173,889 184,421 15.71%
Loans, net of unearned 1,085,712 898,075 187,637 20.89%
Allowance for loan losses 14,120 13,640 480 3.52%
Investments and federal
funds sold 272,598 275,814 (3,216) -1.17%
Deposits 1,164,470 1,055,617 108,853 10.31%
Shareholders' equity 135,512 118,400 17,112 14.45%
TWELVE MONTHS ENDED DECEMBER 31
Net income $ 20,913 $ 18,737 2,176 11.61%
Net income (excluding merger/
restructuring charges) $ 24,449 $ 19,660 4,790 24.36%
Net income per share diluted $ 0.79 $ 0.72 0.07 9.72%
Net income per share (excluding
merger/restructuring charges) $ 0.93 $ 0.76 0.17 22.37%
Return on average assets 1.49% 1.58%
Return on average assets(excluding
merger/restructuring charges) 1.75% 1.66%
Return on average equity 16.05% 17.02%
Return on average equity(excluding
merger/restructuring charges) 18.76% 17.86%
Net interest margin (FTE) 4.65% 5.05%
SOURCE Premier Bancshares, Inc.
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Related links:
http://www.premierbancshares.com
Company News On-Call:
http://www.prnewswire.com/comp/283325.html or fax,
800-758-5804, ext. 283325
CONTACT:
Darrell D. Pittard, Chairman and Chief
Executive Officer, Premier Bancshares, Inc., 404-814-3090
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