LEAWOOD, Kan., July 21 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB) today
announced net income increased 39.8% to a record $1.4 million for the quarter
ended June 30, 1998, compared to $1.0 million for the second quarter of 1997.
Net income per diluted share for the second quarter of 1998 was $0.13 on
10.9 million weighted average common shares and common share equivalents
outstanding, versus $0.10 per diluted share on 9.6 million weighted average
common shares outstanding for the second quarter of 1997, representing a 30.0%
increase in net income per diluted share.
Summary of Second Quarter 1998 Financial Highlights
(unaudited, dollars in thousands except per share and share amounts)
At or for the
Three Months Ended
June 30,
1998 1997 Change
Total Loans, Net $389,288 $264,713 +47.1%
Total Deposits $465,295 $320,787 +45.1%
Total Assets $585,681 $395,693 +48.0%
Net Income $1,380 $ 987 +39.8%
Net Income Per Diluted Share $0.13 $0.10 +30.0%
Weighted Avg. Common and Common
Share Equivalents
Outstanding 10,862,000 9,587,000 +13.3%
At or for the
Six Months Ended
June 30,
1998 1997 Change
Total Loans, Net $389,288 $264,713 +47.1%
Total Deposits $465,295 $320,787 +45.1%
Total Assets $585,681 $395,693 +48.0%
Net Income $2,515 $1,772 +41.9%
Net Income Per Diluted Share $0.24 $0.19 +27.8%
Weighted Avg. Common and Common
Share Equivalents
Outstanding 10,708,000 9,587,000 +11.7%
"Gold Banc's strong second quarter reflects continued robust levels of
loan activity generated at our flagship Johnson County and Kansas locations,
plus a number of accretive acquisitions closed in prior quarters. Gold's
strong performance is further validated by our banks' traditionally solid
credit quality standards, as well as progress demonstrated in our efforts to
leverage greater operating efficiency across an expanded organization.
Additionally, our Midwest Capital broker/dealer business is providing
considerable fee-based income. Combined with four announced acquisitions
during the quarter, these developments bode well for yet another record year
for Gold Banc." -- Michael W. Gullion, Chairman, President and Chief Executive
Officer
Results for the six month period ended June 30, 1998 included a 41.9%
increase in net income to $2.5 million, versus $1.8 million for the same
period in 1997. Net income per diluted share for the first six months of 1998
was $0.24 on 10.7 million weighted average common shares and common share
equivalents outstanding, compared to $0.19 per diluted share on 9.6 million
weighted average common shares outstanding for the year ago period, a 27.8%
increase in net income per diluted share for the comparable six month periods.
Total assets, loans and deposits attained further record levels for the
second quarter of 1998, driven by the region's continued strong economy. Gold
Banc's flagship institution, Exchange National Bank and its locations across
Johnson County, Kansas -- one of the country's fastest-growing counties --
were responsible for the majority of internal loan and deposit growth.
As of June 30, 1998, total assets increased 48.0% to $585.7 million, net
loans rose 47.1% to $389.3 million and deposits increased 45.1% to
$465.3 million, versus the same date last year.
Net interest income for the second quarter of 1998 increased 37.4% to
$4.9 million versus $3.6 million for the second quarter of 1997. After
adjusting for provisions for loan losses, net interest income for the second
quarter of 1998 was $4.7 million compared with $3.5 million in the second
quarter of 1997, an increase of 36.6%.
With a continued strong emphasis on credit quality, Gold Banc reported
$1.2 million in total nonperforming loans at the end of the second quarter of
1998, or 0.30% of total loans, compared to the second quarter 1997 ratio of
0.32%. Gold Banc's loan loss reserve at June 30, 1998 was $5.7 million, or
1.5% of loans and 491.8% of nonperforming loans. Net charge-offs reflected a
net recovery of 0.03% to average loans for the first six months of 1998,
versus a net recovery of 0.11% to average loans for the first six months of
1997.
Non-interest income for the second quarter of 1998 was $1.6 million, an
increase of 120.1% compared to the second quarter of 1997, primarily
reflecting investment management and broker/dealer fees generated by Midwest
Capital Management, Inc., a significant new component of non-interest income
for the Company since the closing of the acquisition of Midwest Capital in
January 1998. The balance of the increase in non-interest income primarily
resulted from gains on the sale of mortgage loans, service charges and gains
on the sale of investment securities.
Non-interest expenses increased 58.6% to $4.2 million for the second
quarter of 1998 compared to the year ago quarter. The balance of the increase
primarily reflects a 55.1% rise in salaries and benefits attributable to
growth of the Company's employee base as a result of the acquisitions closed
during the fourth quarter of 1997 and the first quarter of 1998, as well as a
79.8% increase in operating expenses directed mainly toward the newly acquired
locations and facilities.
CEO Michael W. Gullion Comments on Second Quarter Results
Michael W. Gullion, Gold Banc President and Chief Executive Officer,
commented: "Gold Banc's strong second quarter reflects continued robust
levels of loan activity generated at our flagship Johnson County and Kansas
locations, plus a number of accretive acquisitions closed in prior quarters.
Gold's strong performance is further validated by our banks' traditionally
solid credit quality standards, as well as progress demonstrated in our
efforts to leverage greater operating efficiency across an expanded
organization. Additionally, our Midwest Capital broker/dealer business is
providing considerable fee-based income. Combined with four announced
acquisitions during the quarter, these developments bode well for yet another
record year for Gold Banc."
Progress on Operating Efficiency Enhancement Initiatives
Gold Banc's efficiency ratio for the second quarter of 1998 was 67.7%,
compared to 67.4% for the second quarter of 1997. Management's goal is to
build a high-performance company for customers and shareholders with a level
of operating efficiency comparable to Gold Banc's industry peers. To further
this goal, Gold Banc engaged an independent consultant to thoroughly review
the Company's operations and formulate recommendations to further enhance Gold
Banc's efficiency ratio.
Gullion stated: "Based on this study, Gold Banc is implementing a formal,
comprehensive strategy to enhance its operating efficiency. A primary focus
of this strategy is maintaining strong deposit and loan growth within our
established customer base and current markets as new member banks are added,
spreading operating expenses across a broader asset base and reducing these
costs as a percent of revenue. This strategy also includes increasing the
delivery of products and services while streamlining and re-engineering back
office operations. We are also seeking other appropriate opportunities for
non-interest expense reduction as these areas are identified."
Acquisitions Closed During the Second Quarter
Farmers State Bank of Sabetha, Kansas
On July 9, 1998, Gold Banc completed the closing of its acquisition of
Farmers State Bancshares, Inc. of Sabetha, Kan., for $8.3 million in cash.
The Farmers State Bank acquisition was accounted for as a purchase transaction
and, therefore, the Company's financial results for prior periods have not
been restated to reflect the inclusion of this acquisition.
Farmers State Bank, a wholly owned subsidiary of Farmers State Bancshares,
had total assets of $48.7 million, deposits of $42.7 million and loans of
$22.1 million at March 31, 1998. According to FDIC data available as of June
30, 1997, Farmers State Bank held a number two market share of total deposits
in Nemaha County, its primary market. Founded in 1918, the bank's main office
is located in the town of Sabetha, Kan., near the county seat, and has a long-
standing commitment to the community's civic, social and economic well-being.
Commented Gullion: "Farmers State Bank is an important addition to our
expanding market presence in our flagship region of eastern Kansas and our
fourth community bank acquisition closed since Gold Banc became a public
company in November 1996. Combined with the number one deposit market share
of Citizens State Bank of Seneca, acquired in 1985 and also located in Nemaha
County, the addition of Farmers State Bank gives Gold Banc a strong 33% total
market share of deposits and a well-established presence in the county's two
most prominent communities. These banks' local customers can rest assured
that the flexible, personalized service they've come to expect from both these
institutions will continue uninterrupted as members of the Gold Banc family."
About the Gold Banc Family
Gold Banc, a multi-bank holding company, currently owns and operates the
following family of community banks: Exchange National Bank, with locations
in Leawood, Shawnee and Marysville, Kan.; Citizens State Bank and Trust
Company, located in Seneca, Kan.; Peoples National Bank, Clay Center, Kan.;
Farmers National Bank, Oberlin, Kan.; the First National Bank in Alma, located
in Alma, Kan.; Farmers State Bank of Sabetha, Kan.; and Provident Bank,
f.s.b., located in St. Joseph, Mo. Each of these community banks provides 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. Gold Banc also owns Midwest Capital Management,
Inc., a full service broker/dealer and investment management firm based in
Kansas City, Mo. In addition, pending but not yet closed are the acquisitions
of First State Bank & Trust Company of Pittsburg, Kan.; Tri-County National
Bank of Washington, Kan.; and People's State Bank of Colby, Kan.
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.
GOLD BANC CORPORATION, INC.
Selected Consolidated Operating Data
(Dollars in thousands except per-share and share amounts)
(unaudited) (unaudited) (unaudited) (unaudited)
Year to date Quarter Year to date Quarter
earnings earnings earnings earnings
as of as of as of as of
June 30, June 30, June 30, June 30,
1998 1998 1997 1997
Selected Operating Data:
Interest income $21,467 $11,053 $14,532 $7,411
Interest expense 11,887 6,112 7,537 3,815
Net interest
income 9,580 4,941 6,995 3,596
Provision for loan losses 594 234 255 150
Net interest income after
provision for loan
losses 8,986 4,707 6,740 3,446
Non-interest income:
Service charges 664 362 490 251
Gain on sale of
assets (3) (3) 200 201
Gain on sale of
mortgage loans 519 294 289 172
Gain on sale of
securities 58 57 1 13
Investment trading fees
& commissions 1,409 718 - -
Other 352 157 185 83
Total Non-interest
income 2,999 1,585 1,165 720
Non-interest expenses:
Salaries and employee
benefits 4,507 2,249 2,841 1,450
Occupancy expense 1,176 626 934 447
Federal deposit
insurance premiums 45 23 57 29
Other 2,508 1,327 1,405 738
Total Non-interest
expenses 8,236 4,225 5,237 2,664
Net Income before
income taxes 3,749 2,067 2,668 1,502
Income tax expense
(benefit) 1,234 687 896 515
Net income $2,515 1,380 1,772 987
Per Share Data:
Net Income per share $0.24 $0.13 $0.19 $0.10
Book Value per share $4.67 $4.67 $3.76 $3.76
Period end shares
outstanding 10,704 10,704 9,587 9,587
Weighted Avg. Shares
Outstanding 10,708 10,862 9,587 9,587
GOLD BANC CORPORATION, INC.
Consolidated Condensed Statement of Condition
(Dollars in thousands except per-share amounts)
June 30, 1998 and 1997
(unaudited) (unaudited)
June 30, 1998 June 30, 1997
Assets
Cash and due from banks $18,407 $13,495
Interest-bearing deposits &
Fed funds $9,649 $7,449
Loans (net of allowance
for loan losses of $5,749
as of June 30, 1998
and $3,509 as of June 30,
1997) $389,288 $264,713
Investment securities $127,869 $89,779
Premises and equipment $17,873 $12,862
Other assets $22,595 $7,395
Total assets $585,681 $395,693
Liabilities
Deposits $465,295 $320,787
Short-term borrowings 21,547 31,740
Other borrowings and long-term debt 45,069 4,541
Other liabilities 3,735 2,551
Total liabilities 535,646 359,619
Stockholders' Equity
Common stockholders' equity $10,704 $9,587
Additional paid-in capital 22,610 14,016
Retained earnings 16,745 12,942
Unrealized gain (loss) on
available-for-sale securities 212 (195)
50,271 36,350
less: ESOP note payable (236) (276)
Total Stockholders' Equity 50,035 36,074
Total Liabilities and
Stockholders' Equity $585,681 $395,693
Gold Banc Corporation, Inc.
Key Ratios and Other Data
June 30, 1998
(Dollars in thousands except per-share data)
Percent
June 30, June 30, Increase
1998 1997 (Decrease)
Key Ratios and Other Data
Net interest margin 3.75% 4.06% (7.64)
Net interest spread 3.34% 3.61% (7.48)
Return on average assets 0.89% 0.93% (4.30)
Return on average equity 10.38% 10.10% 2.77
Leverage ratio 10.10% 8.82% 14.51
Non-performing loans to
total loans 0.30% 0.32% (6.25)
Non-performing assets to
total assets 0.33% 0.22% 50.00
Allowance for loan losses
to total loans 1.46% 1.31% 11.45
Allowance for loan losses to
non-performing loans 491.79% 406.13% 21.09
Net loan charge-offs
(recoveries) to average loans -0.03% -0.11% (72.73)
Efficiency Ratio 69.04% 67.98% 1.56
Income Statement Highlights
Net Income $2,515 $1,772 41.93
Net Interest Income 9,580 6,995 36.95
Loan Loss Provision 594 255 132.94
Noninterest Income 2,999 1,165 157.42
Noninterest Expense 8,236 5,237 57.27
Income Tax Expense (Benefit) 1,234 896 37.72
Earnings Per Share $0.24 $0.19 27.78
At At
Balance Sheet Highlights June 30, June 30,
1998 1997
Total Assets $585,681 $395,693 48.01
Total Loans, net 389,288 264,713 47.06
Nonperforming Loans 1,169 864 35.30
Total Deposits 465,295 320,787 45.05
Stockholders' Equity $50,035 $36,074 38.70
Book Value Per Share $4.67 $3.76 24.20
SOURCE Gold Banc Corporation, Inc.
 back to top
Related links:
http://www.goldbanc.com
CONTACT:
Keith E. Bouchey, Exec. V.P. & CFO,
keithb@goldbanc.com, or Brian J. Ruisinger, Investor Relations,
brianr@goldbanc.com, 913-451-8050, both of Gold Banc; or Mike
Arneth, General Information, 312-640-6734, mga@chi.frbd.com, Paul
Scheeler, Analysts-Investors, 312-640-6742, pas@chi.frbd.com, or
Bess Gallanis, Media Inquiries, 312-640-6737, 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. Visit
the Gold Banc web site at: http://www.goldbanc.com
|
