Community Banking Financial Services Franchise Continues Strong Midwest
Regional Expansion as Total Loans, Deposits and Assets All
Double From The Year Ago Quarter
LEAWOOD, Kan., July 21 /PRNewswire/ -- Gold Banc, (Nasdaq: GLDB), one of
the country's fastest growing community banking and financial services
organizations, announced today record results for the second quarter and six
month period ended June 30, 1999.
Net earnings increased 146.5% to a record $3.4 million for the second
quarter of 1999, compared to $1.4 million for the second quarter of 1998, as
reported at this same time last year. Net earnings per diluted share for the
second quarter of 1999 were $0.20, versus $0.13 per diluted share in the
previously reported prior year quarter, representing a 53.8% increase.
Results for the six month period ended June 30, 1999 included a 157.8%
increase in net earnings to $6.5 million, versus $2.5 million reported for the
same period in 1998. Net earnings per diluted share for the first six months
of 1999 rose 58.3% to $0.38, compared to $0.24 per diluted share reported for
the year ago period. After restating results to reflect the four acquisitions
completed in 1998 which were accounted for as poolings of interests, net
earnings for the second quarter of 1999 increased 22.4% and net earnings per
diluted share increased 17.6% over the second quarter of 1998. For the first
six months of 1999, net earnings increased 26.8% and net earnings per diluted
share increased 22.6% over the restated prior year period.
Summary of Second Quarter Financial Highlights
(unaudited, dollars in thousands except per share and share amounts)
At or for the At or for the
Three Months Ended June 30, Six Months Ended June 30,
1999 1998* Change 1999 1998* Change
Total Loans,
Net $773,210 $389,288 +98.6 % $773,210 $389,288 +98.6 %
Total
Deposits $963,454 $465,295 +107.1 % $963,454 $465,295 +107.1 %
Total
Assets $1,196,082 $585,681 +104.2 %$1,196,082 $585,681 +104.2 %
Net Earnings $3,401 $1,380 +146.5 % $6,483 $2,515 +157.8 %
Net Earnings
Per Diluted
Share $0.20 $0.13 +53.8 % $0.38 $0.24 +58.3 %
Wtd. Avg.
Common and
Common Share
Equivalents
Out-
standing 17,255,00010,862,000 +58.9 %17,257,00010,708,000 +61.2 %
* June 30, 1998 data shown as previously reported excluding the effects of
four pooling acquisitions completed in 1998.
Michael W. Gullion, Chairman and Chief Executive Officer, commented: "We
again posted strong growth during the second quarter in net interest income,
non-interest income and net earnings. Our return on equity was on target at
15.6% for the quarter. Our return on assets for the quarter was 1.16%, as we
continue to make strides toward attaining our ROA goal of 1.5%."
For the second quarter of 1999, non-interest income was $4.1 million, an
increase of 161.0% compared to $1.6 million reported for the second quarter of
1998. The Company's ratio of non-interest income to net interest income for
the second quarter of 1999 was 41.0% compared to 32.1% as reported for the
second quarter of 1998. Including the effects of the four pooling
acquisitions in 1998, non-interest income increased 93.2% from the prior year
second quarter, reflecting ongoing efforts to expand fee-based income.
As previously noted, results for the six month period ended June 30, 1999
included a 157.8% increase in net earnings to $6.5 million, versus
$2.5 million reported for the same period in 1998. Net earnings per diluted
share for the first six months of 1999 were $0.38, compared to $0.24 per
diluted share reported for the year ago period, representing a 58.3% increase.
After restating for the four acquisitions in 1998 accounted for as poolings of
interests, net earnings increased 26.8% and net earnings per diluted share
increased 22.6% for the first six months of 1999 compared to the prior year
period.
Gullion concluded: "These results reflect the success of our dual efforts
to grow our community banking financial services franchise both internally and
by acquisition. The recently announced signing of a definitive agreement to
acquire a full service mortgage banking company -- which will provide our
local banks with cross-selling opportunities and is a significant source of
fee-based income from the origination and servicing of mortgage loans --
should augment this strategy. We are pleased to welcome the Regional Mortgage
Group into the Gold Banc family."
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 web site
at http://www.frbinc.com .
Visit Gold Banc at http://www.goldbanc.com
Gold Banc Corporation, Inc.
Reported Selected Consolidated Operating Data
(Dollars in thousands except per-share and share amounts)
(unaudited)
As previously (unaudited)
(unaudited) reported Restated
Year to date Year to date Year to date
earnings as of earnings as of earnings as of
June 30, June 30, June 30,
1999 1998 (A) 1998 (B)
Selected Operating Data:
Interest income $42,185 $21,467 $34,631
Interest expense 22,418 11,887 18,154
Net interest income 19,767 9,580 16,477
Provision for loan losses 971 594 1,424
Net interest income after
Provision for loan losses 18,796 8,986 15,053
Non-interest income:
Service fees 1,957 664 1,421
Net gains on sale of
mortgage loans 339 519 519
Net securities gains 171 58 58
Investment trading fees
& commissions 1,844 1,409 1,409
Other 3,138 349 644
Total Non-interest income 7,449 2,999 4,051
Non-interest expenses:
Salaries and employee benefits 8,179 4,507 5,948
Net occupancy expense 1,851 680 896
Depreciation
and amortization expense 1,445 635 903
Other 4,975 2,414 3,644
Total Non-interest expenses 16,450 8,236 11,391
Net income before income taxes 9,795 3,749 7,713
Income tax expense (B) 3,312 1,234 2,602
Net earnings $6,483 $2,515 $5,111
Per Share Data: (C)
Net income per diluted share $0.38 $0.24 $0.31
Book value per share $5.09 $4.67 $4.52
Period end shares outstanding 17,182 10,704 16,461
Weighted avg. shares outstanding 17,257 10,708 16,465
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for income taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa
(C) Restated for the 2 for 1 stock split in May 1998
Gold Banc Corporation, Inc.
Reported Selected Consolidated Operating Data
(Dollars in thousands except per-share and share amounts)
(unaudited)
As previously (unaudited)
(unaudited) reported Restated
Quarter Quarter Quarter
earnings as of earnings as of earnings as of
June 30, June 30, June 30,
1999 1998(A) 1998(B)
Selected Operating Data:
Interest income $21,539 $11,053 $17,836
Interest expense 11,458 6,112 9,320
Net interest income 10,081 4,941 8,516
Provision for loan losses 475 234 614
Net interest income after
Provision for loan losses 9,606 4,707 7,902
Non-interest income:
Service fees 1,049 362 766
Net gains on sale of
mortgage loans 183 294 294
Net securities gains 4 57 57
Investment trading fees
& commissions 868 718 718
Other 2,034 154 306
Total Non-interest income 4,138 1,585 2,141
Non-interest expenses:
Salaries and employee benefits 4,314 2,249 2,973
Net occupancy expense 580 373 113
Depreciation
and amortization expense 733 322 458
Other 3,053 1,281 2,295
Total Non-interest expenses 8,680 4,225 5,839
Net earnings before income taxes 5,064 2,067 4,204
Income tax expense (B) 1,663 687 1,426
Net earnings $3,401 $1,380 $2,778
Per share data:(C)
Net earnings per diluted share $0.20 $0.13 $0.17
Book value per share $5.09 $4.67 $4.52
Period end shares outstanding 17,182 10,704 16,461
Weighted avg. shares outstanding 17,255 10,862 16,619
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for income taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa
(C) Restated for the 2 for 1 stock split in May 1998
Gold Banc Corporation, Inc.
Consolidated Condensed Statement of Condition
(Dollars in thousands except per-share amounts)
June 30, 1999 and 1998
(unaudited) (unaudited) (unaudited)
As of Reported Restated
June 30, June 30, June 30,
1999 1998 (A) 1998 (B)
Assets
Cash and due from banks $35,077 $18,407 $30,939
Federal funds sold
& interest-bearing deposits 44,951 9,649 38,111
Loans (net of allowance for loan
losses of $10,955 as of June 30,
1999 and $5,749 and $9,105
as of June 30, 1998) 773,210 389,288 614,195
Investment securities 267,065 127,869 192,734
Premises and equipment 30,139 17,873 23,459
Goodwill 16,848 6,562 8,048
Accrued interest & other assets 28,792 16,033 20,109
Total assets $1,196,082 $585,681 $927,595
Liabilities
Deposits $963,454 $465,295 $772,416
Federal funds purchased
& short-term borrowings 12,024 21,547 25,411
FHLB and other long-term
borrowings 59,408 16,319 20,727
Guaranteed preferred
beneficial interests in
Company's debentures 66,300 28,750 28,750
Accrued interest
& other liabilities 7,481 3,735 5,938
Total liabilities 1,108,667 535,646 853,242
Stockholders' Equity
Common stock (C) $17,182 $10,704 $16,461
Additional paid-in capital 29,200 22,610 25,955
Retained earnings 43,028 16,745 31,694
Accumulated comprehensive
income, net (1,798) 212 479
87,612 50,271 74,589
Unearned compensation (197) (236) (236)
Total stockholders' equity 87,415 50,035 74,353
Total liabilities
and stockholders' equity $1,196,082 $585,681 $927,595
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for income taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa
(C) Restated for the 2 for 1 stock split in May 1998.
Gold Banc Corporation
Key Ratios and Other Data
June 30, 1999 and 1998
(Dollars in thousands except per-share data)
As previously
reported Restated
June 30, June 30, June 30,
1999 1998 (A) 1998 (B)
Key Ratios and Other Data
Net interest margin 3.86% 3.75% 4.12%
Net interest spread 3.42% 3.34% 3.57%
Return on average assets 1.13% 0.89% 1.16%
Return on average equity 15.11% 10.38% 14.03%
Leverage ratio 8.33% 10.10% 9.72%
Tier one capital ratio 8.15% 9.93% 9.53%
Tier two capital ratio 12.96% 11.26% 11.60%
Non-performing loans
to total loans 0.45% 0.30% 0.35%
Non-performing assets
to total assets 0.51% 0.33% 0.41%
Allowance for loan losses
to total loans 1.40% 1.46% 1.46%
Allowance for loan losses
to non-performing 310.08% 491.79% 419.01%
Net loan charge-offs (recoveries)
to avg. loans 0.10% (0.03%) 0.07%
Efficiency ratio 62.57% 69.04% 59.81%
Income Statement Highlights (B) (C)
Net earnings $6,483 $2,515 $5,111
Net interest income 19,767 9,580 16,477
Loan loss provision 971 594 1,424
Noninterest income 7,449 2,999 4,051
Noninterest expense 16,450 8,236 11,391
Income tax expense 3,312 1,234 2,603
Earnings per share $0.38 $0.24 $0.31
At At At
June 30, June 30, June 30,
Balance Sheet Highlights (C) 1999 1998 1998
Total assets $1,196,082 $585,681 $927,595
Total loans, net $773,210 $389,288 $614,195
Nonperforming loans $3,533 $1,169 $2,173
Total deposits $963,454 $465,295 $772,416
Stockholders' equity $87,415 $50,035 $74,353
Book value per share $5.09 $4.67 $4.52
(A) As Previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for income taxes related
to subchapter S corporate earnings of Citizens Bank of Tulsa.
(C) Restated for the 2 for 1 stock split in May 1998.
SOURCE Gold Banc Corporation, Inc.
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Related links:
http://www.goldbanc.com
CONTACT:
J. Craig Peterson, Exec. V.P. & CFO, e-mail,
craigp@goldbanc.com, Investor Relations, Brian J. Ruisinger,
e-mail, brianr@goldbanc.com, both of Gold Banc, 913-451-8050; or
General Information, Mike Arneth, 312-640-6734, or e-mail,
marneth@frb.bsmg.com, Analysts- Investors, Paul Scheeler,
312-640-6742, or e-mail, pscheele@frb.bsmg.com, or Media
Inquiries, Joyce Hanson, 312-640-6756, or e-mail,
jhanson@frb.bsmg.com, all of the Financial Relations Board
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