ATLANTA, Oct. 19 /PRNewswire/ -- Premier Bancshares, Inc. (Amex: PMB)
announced preliminary third quarter earnings of $4,709,000 or $0.19 per share
for the quarter ended September 30, 1998. This compares to third quarter
earnings of $5,031,000 or $0.20 per share for the comparable period in 1997.
Included in the net earnings were non-recurring merger related expenses of
$2.3 million associated with recent acquisitions which were partially offset
by a pre-tax gain of $1.1 million on the sale of securities. Net income,
excluding after-tax merger expenses, for the third quarter was $6,244,000 or
$0.25 per share versus $0.21 per share excluding merger expenses for the same
quarter in 1997. All financial results have been restated for the
acquisitions of Button Gwinnett Financial Corporation and The Bank Holding
Company which closed during the third quarter.
For the nine months ended September 30, 1998, the Company reported net
income of $16,405,000 or $0.65 per share. This represents a 19.9% increase in
per share income over the nine month period ended September 30, 1997, of
$13,686,000 or $0.55 per share.
The Company's assets have grown from $1.1 billion on September 30, 1997,
to $1.3 billion on September 30, 1998. Net loans at the end of the third
quarter of 1998 were $903,765,000 as compared to $764,283,000 for the same
period in 1997.
Darrell Pittard, Chairman and Chief Executive Officer said, "During the
past twelve months, Premier Bancshares has completed five mergers and sold one
bank branch. We have experienced internally generated net growth in assets of
$197,235,000 or 17.2%. Excluding merger expenses, year-to-date return on
average assets is 1.90% and return on average equity is 20.10%. We are taking
measures in our planning process for 1999 to ensure continued improvement.
Once we incorporate The Bank of Gwinnett, First Community Bank of Henry
County, and The Bank of Spalding into Premier Bank, we expect to realize
significant efficiencies in the coming year."
During the third quarter, Premier completed several strategic actions that
will better position the company for future growth and profitability. These
events include the completion of two acquisitions in July, The Bank Holding
Company, and Button Gwinnett Financial Corporation; the move to a common
banking platform and common products at all Premier Bank locations; and the
opening of 3 construction loan production offices of Premier Bank and 4
residential mortgage loan origination offices of Premier Lending in other
Southeastern metro markets. Plans are to continue combining the subsidiary
banks' charters into Premier Bank during the coming year to achieve additional
cost savings. Premier Bank is currently undergoing a project to identify
operational inefficiencies. The results of this project will be used in
planning for measures to control expenses, improve customer service, and
increase net income during 1999.
On October 2, 1998, the Company announced the opening of 5 new mortgage
and construction lending offices in the Southeast and the ground breaking of
an additional banking office in the metro Atlanta area. 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; and Charlotte, North Carolina.
Premier Bank, the Company's banking subsidiary, has opened construction
lending offices in Augusta, Georgia; Chattanooga, Tennessee; and Charlotte,
North Carolina to complement the mortgage lending business. Pittard said,
"These offices are managed and staffed with lenders who have proven track
records in each of these high growth markets. The recent decrease in the
interest rate environment combined with Premier Lending's market expansion,
our monthly mortgage loan closings should exceed the $100 million level."
Premier Bank has also broken ground for a full-service branch bank to be
constructed by late spring of 1999 in Marietta, Georgia, the county seat of
Cobb County in Metro Atlanta.
On July 9, 1998, the Company announced the pending merger of Frederica
Bank & Trust (Frederica), operating in St. Simons Island, Georgia. The
acquisition, which is subject to regulatory approval and the approval of
Frederica's shareholders, is expected to close in the fourth quarter of this
year. Following this transaction, Premier will have assets of approximately
$1.4 billion.
Pittard continued, "Following the completion of this merger, Premier will
have a banking presence in the growing Glynn County and Coastal Georgia
marketplace. This will complement our recently opened Premier Lending
residential mortgage office inside Frederica Bank & Trust."
Premier Bancshares, Inc. is the third largest bank holding company
headquartered in Georgia; and, after pending consolidations, will have
subsidiaries operating 45 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 an 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.
PREMIER BANCSHARES, INC.
(preliminary results)
(dollars in thousands except per share data)
QUARTER ENDED SEPTEMBER 30
1998 1997 Change Percent
Net income $4,709 $5,031 (322) (6.4%)
Net income (excluding after
tax merger expenses) $6,244 $5,203 1,040 20.0%
Net interest income (FTE) 15,230 13,759 1,471 10.7%
Net interest income 17,029 13,664 3,365 24.6%
Noninterest income 10,271 6,509 3,762 57.8%
Noninterest expense 19,529 11,794 7,735 65.6%
Merger expense 2,325 261 2,064 790.8%
Provision for income taxes 3,142 2,769 373 13.5%
Provision for loan losses 170 580 (410) (70.7%)
PER SHARE DATA
Net income, diluted $ 0.19 $ 0.20 (0.01) (5.0%)
Net income (excluding after
tax merger expenses) $ 0.25 $ 0.21 0.04 19.0%
FINANCIAL RATIOS
Return on average assets 1.41% 1.75%
Return on average assets
(excluding after tax
merger expenses) 1.87% 1.81%
Return on average equity 14.89% 19.50%
Return on average equity
(excluding after tax
merger expenses) 19.74% 20.17%
Net interest margin (FTE) 4.99% 5.16%
Total shareholders equity
to assets 9.35% 9.33%
Allowance for loan losses
to loans, net of unearned
and loans held for sale 1.52% 1.69%
Allowance for loan losses to
loans, net of unearned 1.43% 1.58%
ENDING BALANCES AS OF SEPTEMBER 30
Total assets $1,343,920 $1,146,685 197,235 17.2%
Earning assets 1,222,403 1,062,237 160,166 15.1%
Loans, net of unearned
& loans held for sale 903,765 764,283 139,482 18.2%
Loans held for sale 58,277 53,320 4,957 9.3%
Allowance for loan losses 13,710 12,901 809 6.3%
Investments and federal funds
sold 260,361 297,954 (37,593) (12.6%)
Deposits 1,086,390 978,137 108,253 11.1%
Shareholders' equity 125,661 107,025 18,636 17.4%
Intangible Assets 4,624 4,738 (114) (2.4%)
AVERAGE BALANCES FOR THE QUARTER
Total assets $1,321,885 $1,139,746 182,139 16.0%
Earnings assets 1,211,540 1,058,087 153,453 14.5%
Loans, net of unearned 948,747 800,308 148,439 18.5%
Allowance for loan losses 13,646 12,552 1,094 8.7%
Investments and federal funds
sold 262,793 257,779 5,014 1.9%
Deposits 1,074,983 1,021,713 53,270 5.2%
Shareholders' equity 125,496 102,341 23,155 22.6%
NINE MONTHS ENDED SEPTEMBER 30
Net income $ 16,405 $ 13,686 2,719 19.9%
Net income (excluding after
tax merger expenses) $ 18,190 $ 14,118 4,072 28.8%
Net income per share diluted $ 0.65 $ 0.55 0.10 18.2%
Net income per share
(excluding after tax
merger expenses) $ 0.73 $ 0.57 0.16 28.1%
Return on average assets 1.71% 1.67%
Return on average assets
(excluding after tax
merger expense) 1.90% 1.72%
Return on average equity 18.12% 18.06%
Return on average equity
(excluding after tax
merger expense) 20.10% 18.63%
Net interest margin (FTE) 4.98% 5.20%
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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