Operating Earnings 36% Above First Quarter 1999;
Assets Up 82% from Year-End, ROE of 16.2% Record High
LEAWOOD, Kan., April 25 /PRNewswire/ -- Gold Banc, (Nasdaq: GLDB), one of
the country's fastest growing community banking and financial services
companies, today announced record first quarter 2000 operating earnings of
$7.1 million, or $0.19 per share, an increase of 36% over first quarter 1999
earnings of $0.14 per share. Making the announcement was Michael W. Gullion,
Chairman and Chief Executive Officer of Gold Banc.
During the first quarter of 2000, Gold completed three acquisitions that
added $1.15 billion in assets to the company in Missouri, Oklahoma and
Florida, bringing Gold's total assets to $2.6 billion. These acquisitions
included First Business Bancshares, Kansas City, Missouri, CountyBanc Holding
Company, Edmond, Oklahoma and American Bancshares, Bradenton, Florida. As a
result of these transactions, Gold recorded one time repositioning and pooling
costs in the first quarter of 2000 of $7.9 million after-tax, which resulted
in a net loss for the quarter after one-time merger-related charges of
$785 thousand, or $0.02 per share.
"The first quarter of the new millennium was a significant milestone for
Gold Banc," said Gullion. "At March 31, 2000, our total assets were
82% greater than the level we reported at year-end 1999, total loans have
increased by 96% and total deposits are 87% greater than just three months
ago. The three acquisitions that we closed during the quarter represent the
addition of strong community banks in high growth markets to the Gold Banc
family, and we are pleased to report that our internal growth remains as
robust as ever, with a double-digit annualized increase in loans over this
period."
Double-Digit Internal Earnings Growth. Without the non-recurring charges,
Gold Banc recorded earnings per share of $0.19 for the first quarter versus
$0.14 for first quarter 1999, strong results considering the expected
temporary earnings dilution of the three acquisitions and the impact of the
rising interest rate environment on Gold's mortgage banking operation.
Gullion commented, "We are extremely proud to have achieved such strong
earnings during a period when we are assimilating three significant
acquisitions into our company and while mortgage banking activity has slowed.
On a core basis, without the impact of the acquisitions, we would have earned
$0.22 per share for the quarter, which is a 22% increase over comparable
reported earnings per share of $0.18 for first quarter 1999. We fully
anticipated the acquisitions to have a temporary dilutive impact while we are
affecting the synergies we expect. We remain confident that these deals will
be accretive to our earnings per share within the first year, as has been the
case with all previously completed acquisitions."
Earnings Summary
For the three months
ended March 31, 2000
Earnings Avg Shrs EPS
Actual net income (loss),
restated for poolings $(785) 37,880 ($0.02)
One-time pooling costs,
after tax 7,853
Net income, restated,
before pooling costs $7,068 37,880 $0.19
Impact of first quarter 2000
acquisitions, as restated on
Gold's financial statements(A) 3,223 20,287
Performance of existing
franchise, reported $3,845 17,593 $0.22
Impact of purchase accounting
acquisitions in the last
twelve months (B) 156 517
Performance of internal
franchise, reported $3,689 17,076 $0.22
For the three months
ended March 31, 1999 % chg
Earnings Avg Shrs EPS EPS
Actual net income (loss),
restated for poolings $5,347 37,637 $0.14
One-time pooling costs,
after tax
Net income, restated,
before pooling costs $5,347 37,637 $0.14 35.7%
Impact of first quarter
2000 acquisitions,
as restated on Gold's
financial
statements (A) 2,265 20,174
Performance of existing
franchise, reported $3,082 17,463 $0.18 22.2%
Impact of purchase
accounting acquisitions
in the last twelve
months (B)
Performance of internal
franchise, reported $3,082 17,463 $0.18 22.2%
(A) Acquisitions are First Business Bancshares, CountryBanc Holding
Company and American Bancshares
(B) Acquisitions are Linn County Bank and Regional Investment Co.
Solid Returns to Our Shareholders. On an operating basis, Gold earned a
return on assets and return on equity of 1.10% and 16.20%, respectively, for
first quarter 2000, versus returns of 0.94% and 12.83% for first quarter 1999,
as restated, and 1.09% and 14.48% as reported for first quarter 1999. Gold's
return on equity is at its highest point since the company's IPO in 1996, and
is in line with Gold's objective of a return on equity between 15% and 18%,
while the company continues to move toward its goal of an ROA of 1.5%. Gold's
returns are in line with its peers although Gullion estimates that Gold's
growth rate is nearly double that of comparable commercial banks.
Strong Core Growth. At March 31, 2000, Gold Banc had total assets of
$2.6 billion, an increase of 82% from its assets as reported of $1.4 billion
at December 31, 1999, with the majority of this increase due to the
acquisitions closed in the first quarter. Total loans were $1.9 billion at
March 31, 2000, an increase of $909 million (96%) compared to loans reported
on December 31, 1999. Gold's existing franchise generated $21 million in new
loans during the first quarter (approximately 10% annualized growth), with the
remainder of the increase due to the acquisitions. Internally generated loan
growth for the years ended December 31, 1999, 1998, and 1997 was 34%, 20%, and
20% respectively.
Total deposits were $2.0 billion at March 31, 2000, an increase of
$942 million (87%) from reported year-end 1999, primarily due to the three
acquisitions. Internally generated deposit growth for the years ended
December 31, 1999, 1998 and 1997 was 23%, 20% and 13%, respectively.
Without Gold's recent acquisitions, net interest income, non-interest
income and net income have increased 13%, 11%, and 20%, respectively, in first
quarter 2000 versus first quarter 1999. Gold has a record of acquiring
community banks, successfully integrating them into its system and generating
consistent core internal growth. Gold expects that will be the case with its
newly acquired banks.
Gold creates consistently strong growth through a steadfast focus on its
community banking strategy, empowering its bankers to be responsive to small
business customers in Gold's market area, providing a broad array of products
and services, such as investment advisory, retail brokerage, trust, insurance
and electronic commerce, and effectively using technology for operations and
product delivery. With the banking industry consolidating rapidly, business
customers want the flexibility, local decision-making efficiency and
responsiveness that Gold's strategy provides. By combining the products,
services and technology of larger regional, national or multi-national banks
with the customer service of a local bank, Gold is gaining market share while
the industry is losing market share.
Gold Banc Corporation, Inc.
Internal Growth vs. Growth through Acquisitions
(in thousands, except per share data)
Restated
March 31, December 31,
2000 1999 Change %
(unaudited)
Assets (B) $2,559,163 $2,550,741 8,422 0.3%
Loans 1,855,263 1,819,848 35,414 1.9%
Deposits 2,028,994 2,006,154 22,840 1.1%
Equity (B) 165,750 167,048 (1,298) -0.8%
Three Months Ended
March 31,
2000 1999 Change %
(unaudited)
Net interest income $24,217 $21,075 $3,142 14.9%
Non-interest income 8,304 5,918 2,386 40.3%
Non-interest expense 21,674 17,443 4,231 24.3%
Net income before
one-time merger
charges $7,068 $5,347 $1,721 32.2%
Internal (Without Acquisitions) (A)
March 31, December 31,
2000 1999 Change % Annual%
Assets
(B) $1,412,214 $1,407,379 4,835 0.3% 1.4%
Loans 967,438 946,250 21,188 2.2% 9.0%
Deposits 1,088,483 1,086,537 1,946 0.2% 0.7%
Equity (B) 93,646 87,014 6,632 7.6% 30.5%
Three Months Ended
March 31,
2000 1999 Change %
(unaudited)
Net interest income $10,962 $9,686 $1,276 13.2%
Non-interest income 3,665 3,311 354 10.7%
Non-interest expense 9,844 7,770 2,074 26.7%
Net income before
one-time merger
charges $3,689 $3,082 $607 19.7%
(A) Acquisitions include First Business Bancshares, CountryBanc Holding
Company, and American Bancshares for balance sheet comparisons, and
also include Linn County Bank and Regional Investment Co. for income
statement purposes.
(B) Assets and equity without acquisitions also takes out the impact of
one-time merger related charges.
Year Ended December 31,
Internal Loan
Generation 1996 1997 1998 1999
Beginning total loans $202,630 $346,165 $734,116
New loans generated
internally 68,229 69,518 146,551
- Growth rate 34% 20% 20%
New loans through
acquisitions 75,306 318,433 65,583
Total loans,
as reported $202,630 $346,165 $734,116 $946,251
Year Ended December 31,
Internal Deposit
Generation 1996 1997 1998 1999
Beginning total
deposits $255,656 $419,139 $926,687
New deposits generated
internally 57,712 85,483 119,694
- Growth rate 23% 20% 13%
New deposits through
acquisitions 105,771 422,065 40,156
Total deposits,
as reported $255,656 $419,139 $926,687 $1,086,537
Breakouts of internal growth are estimated using totals from the relevant
subsidiaries.
Solid Capital Levels. As a result of the pooling-of-interests
acquisitions completed in the first quarter of 2000, Gold Banc's total
shareholders' equity increased to $166 million and total capital (including
trust preferred securities) increased to $248 million. In conjunction with
its acquisition of American Bancshares, Inc., Gold Banc assumed American's
$16.25 million outstanding issue of trust preferred securities
(Nasdaq: ABANP). The company's leverage ratio, Tier 1 risk based ratio and
total risk based ratio were 7.38%, 9.32% and 11.77%, respectively, at
March 31, 2000, versus reported ratios of 6.62%, 8.54% and 13.28% at
December 31, 1999.
During the first quarter of 2000, Gold Banc repurchased 478,000 shares of
its common stock in the open market, pursuant to two separate repurchase plans
that authorize the company to purchase a total of 909,000 shares, subject to
applicable regulatory restrictions. Gold intends to repurchase additional
shares under these plans as market conditions and regulatory restrictions
permit.
Gold Community Banking
With the addition of the three acquisitions mentioned earlier, Gold Banc
now serves customers through 70 locations in 45 communities and 4 states, in
addition to 24-hour a day access through the company's Internet site,
http://www.goldbankonline.com, telephone access and ATMs.
Gold's total deposits were $2.0 billion at March 31, 2000, up 87% from the
reported figures at year-end 1999. The company has a strong core deposit
base, with $540 million (27%) of its deposits in transaction accounts, and
only $280 million (14%) in large CDs.
In addition to the acquisitions completed during the quarter, Gold's loan
portfolio grew internally by $21 million (approximately 10% annualized) during
the first quarter. Gold's asset quality continues to be pristine,
notwithstanding the increase in loans due to acquisitions. At March 31, 2000,
non-performing assets were $8.4 million, or 0.33% of total assets, down
23% from $10.9 million or 0.43% of assets, at year-end 1999, on a restated
basis. The allowance for loan losses was $26.7 million at March 31, 2000,
which was 470% of non-performing loans and 1.44% of total loans. Loans
charged off, net of recoveries, were only $87 thousand for the first quarter
of 2000.
Gold's net interest margin increased dramatically for the quarter, at
4.21%, versus 4.07% for first quarter 1999, as restated, and 3.83% as reported
for first quarter 1999. Gold has $82.5 million of trust preferred securities
outstanding, which reduce the net interest margin but increase Gold's return
on equity as a low-cost capital alternative. Without the trust preferred
securities, Gold's net interest margin is approximately 4.45% for the three
months ended March 31, 2000.
An essential component to Gold's community banking strategy is its
Internet banking initiative. During the first quarter, Gold premiered a new
version of its website and now has on-line small business applications
available to customers throughout Kansas in addition to its retail banking
options. The company will continue to develop banking and finance options on
the Internet for its customers, and anticipates rolling out Internet banking
applications to its new banks in 2000.
Gold recently consolidated the charters of its Kansas commercial banking
subsidiaries into a single entity, Gold Bank. This effort will allow Gold
employees to focus even more on sales and customer service, while creating
efficiencies by combining the backroom operations of the banks. Gold Banc's
efficiency ratio was 64.82% for the first quarter of 2000, versus 69.12% as
reported for the year ended December 31, 1999. Gold anticipates that as it
affects the synergies in its new acquisitions and fully leverages its
centralized data processing platform that its efficiency ratio will continue
to improve toward management's targeted goal of 50%.
Acquisitions. During the first quarter of 2000, Gold closed three
pooling-of-interests acquisitions, adding approximately $1.15 billion in
assets, each falling within Gold's strategic rationale for growth through
acquisition: (i) an in-market acquisition in the Kansas City market (First
Business Bank), (ii) a market extension opportunity into a neighboring region
in Oklahoma (Country Bank), and (iii) a move into a new high-growth community
banking market in Florida (American Bank). Each deal adds to Gold's business
in a high growth market.
Gold Financial Services
Gold continued to build its financial service businesses in the first
quarter. Gold's ratio of non interest income to net interest income of
34.3% is significantly higher than that of its peers, and the company expects
this ratio to increase even further as it makes its financial services
products available to the customers of its newly acquired community banks.
Gold's financial service products are available to its customers through its
branch locations and on its Web site.
Gold recorded trust revenue of $590 thousand for the first quarter of 2000
versus $303 thousand for first quarter 1999, an increase of 95%. Gold's total
assets under management at March 31, 2000 were $320 million. The company's
insurance premiums written were $1.2 million for the first quarter of 2000, a
16% increase over the $1.1 million recorded for first quarter 1999. Total
investment trading fees and commissions were $615 thousand for the first
quarter of 2000 versus $976 thousand for the first quarter of 1999. In the
institutional business, the commercial banks that are the main clients of
Gold's brokerage subsidiary saw a larger increase in lending activities this
quarter, thus reducing their bond investments.
Gold Technologies
CompuNet Engineering, Gold's technology service provider, has created
multiple partnerships and is facilitating additional relationships with major
service providers to bring a wide variety of leading edge business services to
Gold's subsidiary banks and their business customers. These services
currently include local and wide area network design and integration, a
platform for electronic procurement and fulfillment, as well as on-line
banking, including bill paying, and access to other financial services.
Development is ongoing for additional electronic services. For the quarter
ended March 31, 2000, CompuNet's total revenue was $923 thousand, an increase
of 195% over the $312 thousand recorded for first quarter 1999.
Gold has recently completed the consolidation of the back office
operations of its Kansas and Missouri banking subsidiaries and the creation of
a central service center, which management estimates will create approximately
$1.5 million per year in cost savings and efficiencies, in addition to
allowing for added flexibility in product development and support. Gold
estimates that it will phase in the consolidation of the operations of its new
acquisitions over the next twelve months.
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
acquisitions 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.
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, or visit the Gold Banc page on FRB's website
at http://www.frbinc.com
Visit Gold Banc at http://www.goldbanc.com
Gold Banc Corporation, Inc.
Income Statement Summary
(Dollars in thousands)
Restated for Pooling Transactions
March 31,
2000 1999 Change %
(unaudited)
Interest income $ 50,306 $ 42,153 $8,154 19.3%
Interest expense 26,089 21,078 5,011 23.8%
Net interest income 24,217 21,075 3,142 14.9%
Provision for loan losses 661 1,145 (484) -42.3%
Net int inc after
prov for ln losses 23,556 19,930 3,626 18.2%
Non-interest income
Trust fees 590 303 287 94.6%
Service charges 2,929 2,418 510 21.1%
Investment trading
fees/commissions 615 976 (361) -37.0%
Insurance premiums 82 94 (12) -12.8%
Technology service fees 923 312 611 195.5%
Net loan transactions 1,777 299 1,479 495.3%
Net securities transactions (30) 237 (267) -112.6%
Gain (loss) on sale of assets (62) (12) (51) 438.2%
Other income 1,479 1,290 190 14.7%
Total non-interest income 8,304 5,918 2,386 40.3%
Non-interest expense
Salaries and benefits 10,967 8,769 2,198 25.1%
Occupancy 2,170 1,513 657 43.5%
Goodwill amortization 534 398 136 34.3%
Other expense 8,003 6,763 1,240 18.3%
Total non-interest expense 21,674 17,443 4,232 24.3%
Income before taxes and
one-time charges 10,186 8,406 1,780 21.2%
Income tax expense 3,118 3,058 59 1.9%
Net income before
one-time charges $ 7,068 $ 5,347 $ 1,721 32.2%
One-time charges, after-tax 7,853
Net income (loss)
after one-time chgs $(785) $ 5,347
Averages shares outstanding 37,880 37,637 243
Net income (loss) per share:
- Before pooling charges $0.19 $0.14 $0.05 35.7%
- After pooling charges ($0.02) $0.14 ($0.16)
Ratios before one-time charges:
Return on average assets 1.10% 0.94% 0.16
Return on average equity 16.20% 12.83% 3.37
Return on average
assets, cash 1.19% 1.01% 0.18
Return on average
equity, cash 17.43% 13.78% 3.65
Net interest margin 4.21% 4.07% 0.14
Non-interest income/
net interest income 34.29% 28.08% 6.21
Efficiency ratio 64.82% 63.68% 1.14
Net loans charged off 87 805 (718) -89.2%
- Net c/o's to loans 0.00% 0.04% (0.04)
Gold Banc Corporation, Inc.
Income Statement Summary
(Dollars in thousands)
As Reported
March 31,
1999 Change %
(unaudited)
Interest income $ 20,646 29,660 143.7%
Interest expense 10,960 15,129 138.0%
Net interest income 9,686 14,531 150.0%
Provision for loan losses 496 165 33.3%
Net int inc after prov for ln losses 9,190 14,366 156.3%
Non-interest income
Trust fees 294 296 100.5%
Service charges 908 2,021 222.6%
Investment trading fees/commissions 976 (361) -37.0%
Insurance premiums 79 3 3.8%
Technology service fees 312 611 195.5%
Net loan transactions 156 1,621 1039.4%
Net securities transactions 167 (197) -117.9%
Gain (loss) on sale of assets 5 (67) nm
Other income 413 1,066 257.8%
Total non-interest income 3,311 4,993 150.8%
Non-interest expense
Salaries and benefits 3,865 7,102 183.7%
Occupancy 1,287 883 68.6%
Goodwill amortization 186 349 188.0%
Other expense 2,432 5,571 229.0%
Total non-interest expense 7,770 13,905 179.0%
Income before taxes and
one-time charges 4,731 5,455 115.3%
Income tax expense 1,649 1,469 89.1%
Net income before one-time charges $ 3,082 $ 3,986 129.3%
One-time charges, after-tax
Net income (loss)
after one-time chgs $ 3,082
Averages shares outstanding 17,311 20,569
Net income (loss) per share:
- Before pooling charges $0.18 $0.01 5.6%
- After pooling charges $0.18
Ratios before one-time charges:
Return on average assets 1.09% 0.01
Return on average equity 14.48% 1.72
Return on average assets, cash 1.16% 0.03
Return on average equity, cash 15.35% 2.08
Net interest margin 3.83% 0.38
Non-interest income/
net interest income 34.18% 0.11
Efficiency ratio 63.02% 1.80
Net loans charged off 94 (7) -7.4%
- Net c/o's to loans 0.01% (0.01)
Gold Banc Corporation, Inc.
Balance Sheet Summary
(in thousands, except per share data)
Restated for Pooling Transactions
March 31, December 31,
2000 1999 Change %
(unaudited)
Loans $1,703,806 $1,779,205 $(75,399) -4.2%
Investment securities 460,385 445,917 14,469 3.2%
Loans held for sale 151,456 40,643 110,814 272.7%
Trading securities 6,146 9,245 (3,099) -33.5%
Money market investments 12,749 29,457 (16,708) -56.7%
Total earning assets 2,334,543 2,304,467 30,077 1.3%
Cash and due from banks 83,347 99,159 (15,811) -15.9%
Allowance for loan losses (26,731) (26,038) (693) 2.7%
Goodwill 49,051 47,577 1,474 3.1%
Premises and equipment 60,591 62,960 (2,369) -3.8%
Other assets 58,361 62,617 (4,255) -6.8%
Total assets $2,559,163 $2,550,741 $ 8,422 0.3%
Deposits $2,028,994 $2,006,154 $ 22,840 1.1%
Short-term borrowings 124,761 178,618 (53,856) -30.2%
Long-term debt 130,446 90,523 39,923 44.1%
Trust preferred securities 82,549 82,549 0 0.0%
Other liabilities 26,662 25,849 813 3.1%
Shareholders' equity 165,750 167,048 (1,298) -0.8%
Total liabilities and
shareholders' equity $2,559,163 $2,550,741 $ 8,422 0.3%
Total shares outstanding 37,793 37,873 (80)
Book value per share $4.39 $4.41 ($0.03) -0.6%
Tangible book
value per share $3.09 $3.15 ($0.07) -2.1%
Leverage ratio 7.38% 7.55% (0.17)
Tier 1 capital ratio 9.32% 9.76% (0.44)
Total capital ratio 11.77% 12.20% (0.43)
Non-performing loans (NPL) $5,691 $7,769 $ (2,078) -26.7%
- NPL / Loans 0.31% 0.43% (0.12)
- Allowance / NPL 469.70% 335.15% 134.56
- Allowance / Loans 1.44% 1.43% 0.01
Non-performing assets (NPA) $8,416 $ 10,901 $ (2,485) -22.8%
- NPA / Assets 0.33% 0.43% (0.10)
Gold Banc Corporation, Inc.
Balance Sheet Summary
(in thousands, except per share data)
As Reported
December 31,
1999 Change %
Loans $905,607 $798,199 88.1%
Investment securities 267,335 193,050 72.2%
Loans held for sale 40,643 110,813 272.7%
Trading securities 9,245 (3,099) -33.5%
Money market investments 27,597 (14,848) -53.8%
Total earning assets 1,250,427 1,084,116 86.7%
Cash and due from banks 59,602 23,745 39.8%
Allowance for loan losses (12,233) (14,498) 118.5%
Goodwill 36,890 12,161 33.0%
Premises and equipment 34,268 26,323 76.8%
Other assets 38,425 19,936 51.9%
Total assets $1,407,379 $1,151,784 81.8%
Deposits $1,086,537 $942,457 86.7%
Short-term borrowings 79,364 45,397 57.2%
Long-term debt 72,235 58,211 80.6%
Trust preferred securities 66,300 16,249 24.5%
Other liabilities 15,929 10,733 67.4%
Shareholders' equity 87,014 78,736 90.5%
Total liabilities and
shareholders' equity $1,407,379 $1,151,784 81.8%
Total shares outstanding 17,698 20,095
Book value per share $4.92 ($0.53) -10.8%
Tangible book value per share $2.83 $0.26 9.0%
Leverage ratio 6.62% 0.76
Tier 1 capital ratio 8.54% 0.78
Total capital ratio 13.28% (1.51)
Non-performing loans (NPL) $3,489 $2,202 63.1%
- NPL / Loans 0.37% (0.06)
- Allowance / NPL 350.62% 119.09
- Allowance / Loans 1.29% 0.15
Non-performing assets (NPA) $5,497 $2,919 53.1%
- NPA / Assets 0.39% (0.06)
SOURCE Gold Banc
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Related links:
http://www.goldbanc.com
CONTACT:
Michael W. Gullion, Chairman and CEO,
mgullion@goldbanc.com, or Malcolm M. Aslin, President,
micka@goldbanc.com, or Keith E. Bouchey, Executive Vice
President, keithb@goldbanc.com, all of Gold Banc, 913-451-8050;
or General Information, Todd Tarbox, 312-640-6742 or
ttarbox@frb.bsmg.com, or Media Inquiries, Joyce Hanson,
606-272-7322 or hanson2000@aol.com, both of The Financial
Relations Board
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