ATLANTA, July 9 /PRNewswire/ -- Premier Bancshares, Inc. (NYSE: PMB)
announces earnings of $3,891,000 or $.15 per share for the quarter ended
June 30, 1999. This compares to $6,443,000 or $.25 for the same quarter in
1998. The decline in earnings, which was previously forecasted with a
June 21, 1999 press release, is due to a shortfall in its mortgage banking
subsidiary, lower than expected earnings in commercial banking, as well as
non-recurring expenses.
Premier Bancshares Chairman and Chief Executive Officer, Darrell Pittard,
said, "During the second quarter we completed the consolidation of all our
banks into one charter and the conversion to a single operating system. The
Federal Reserve's action increasing short-term interest rates on June 30, 1999
will have an immediate positive corresponding impact on over $600 million of
our interest sensitive earning assets. Likewise, we anticipate mortgage
volume to continue to grow since the Fed's action and current neutral posture
has lowered long term interest rate inflationary fears."
During the second quarter, Premier Bancshares implemented several
enhancements to operating efficiencies and revenue growth. The quarter ended
with strong asset quality, reflected by non-performing loans to total loans of
0.30%.
Premier Bancshares is a Georgia-based bank holding company with assets of
approximately $1.5 billion. After pending acquisitions, Premier Bancshares
and subsidiaries will have assets of approximately $1.9 billion and will be
operating in 40 offices. Today, Premier is the third largest Georgia-based,
independent banking franchise in the Atlanta and North Georgia markets, with
significant presence in such attractive markets as Cobb, Fulton, Gwinnett,
DeKalb, Forsyth, Henry, and Spalding counties. During the second quarter, the
company continued its aggressive acquisition strategy, announcing the
acquisition of three community banks with offices located in Atlanta, Roswell,
Decatur, and Summerville, Georgia.
Both the common stock of Premier Bancshares, Inc. and the preferred
securities of Premier Capital Trust I are traded on the New York 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.
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 JUNE 30 1999 1998 Change Percent
Net income $3,891 $6,443 (2,552) -39.6%
Net interest income (FTE) 16,008 15,370 638 4.2%
Net interest income 15,940 15,210 730 4.8%
Noninterest income 8,732 9,996 (1,264) -12.6%
Noninterest expense 17,198 15,712 1,486 9.5%
Provision for income taxes 3,064 2,886 178 6.2%
Provision for loan losses 520 165 355 215.2%
PER SHARE DATA
Net income, diluted $0.15 $0.25 (0.10) -40.0%
Book Value $5.27 $5.04 0.23 4.6%
FINANCIAL RATIOS
Return on average assets 1.03% 1.89%
Return on average equity 11.46% 20.39%
Net interest margin (FTE) 4.49% 4.83%
Total shareholders' equity
to assets 9.23% 9.47%
Allowance for loan losses to
loans, net of unearned and
loans held for sale 1.36% 1.49%
Allowance for loan losses to
loans, net of unearned 1.28% 1.43%
ENDING BALANCES AS OF JUNE 30
Total assets $1,493,166 $1,371,968 121,198 8.8%
Earning assets 1,347,560 1,271,526 76,034 6.0%
Loans, net of unearned &
loans held for sale 1,092,705 939,389 153,316 16.3%
Loans held for sale 67,908 42,640 25,268 59.3%
Allowance for loan losses 14,845 14,016 829 5.9%
Investments and federal
funds sold 240,010 289,497 (49,487) -17.1%
Deposits 1,161,651 1,126,970 34,681 3.1%
Shareholders' equity 137,869 129,963 7,906 6.1%
Intangible assets 4,287 4,725 (438) -9.3%
AVERAGE BALANCES FOR THE QUARTER
Total assets $1,521,128 $1,366,834 154,294 11.3%
Earnings assets 1,430,992 1,277,462 153,530 12.0%
Loans, net of unearned 1,094,783 990,006 104,777 10.6%
Allowance for loan losses 14,589 13,997 592 4.2%
Investments and federal
funds sold 241,456 287,456 (46,000) -16.0%
Deposits 1,168,285 1,119,639 48,646 4.3%
Shareholders' equity 136,214 126,734 9,480 7.5%
SIX MONTHS ENDED JUNE 30
Net income $9,667 $12,132 (2,465) -20.3%
Net income per share diluted $0.37 $0.47 (0.10) -21.3%
Return on average assets 1.31% 1.83%
Return on average equity 14.28% 19.61%
Net interest margin (FTE) 4.55% 4.80%
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, or Michael E. Ricketson, Executive Vice
President and Chief Financial Officer, 404-814-3090, both of
Premier Bancshares, Inc.
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