LEAWOOD, Kan., Oct. 20 /PRNewswire/ -- Gold Banc, (Nasdaq: GLDB), one of
the country's fastest growing financial services providers utilizing a network
of community banks, announced today results for the third quarter and nine
months ended September 30, 1999.
Net earnings increased 157% to a record $3.7 million for the third quarter
of 1999, compared to $1.4 million reported for the third quarter of 1998. Net
earnings per diluted share for the third quarter of 1999 were $0.22, versus
$0.13 per diluted share in the previously reported prior year quarter,
representing a 69% increase. Results for the nine month period ended
September 30, 1999 included a 158% increase in net earnings to $10.2 million,
versus $4.0 million reported for the same period in 1998. Net earnings per
diluted share for the first nine months of 1999 rose 60% to $0.59, compared to
$0.37 per diluted share reported for the year ago period.
After restating results to reflect the acquisitions completed in 1998,
which were accounted for as poolings of interests, net earnings for the third
quarter of 1999 increased 23% and net earnings per diluted share increased 22%
over the third quarter of 1998. For the year-to-date, net earnings increased
26% and net earnings per diluted share increased 20% over the restated prior
year period.
Summary of Third Quarter Financial Highlights
(unaudited, dollars in thousands except per share and share amounts)
At or for the Three Months At or for the Nine Months
Ended September 30, Ended September 30,
1999 1998* Change 1999 1998* Change
Total Loans,
Net $857,436 $463,192 +85.1% $857,436 $463,192 +85.1%
Total
Deposits $967,295 $567,782 +70.4% $967,295 $567,782 +70.4%
Total Assets $1,278,662 $690,822 +85.1% $1,278,662 $690,822 +85.1%
Net Earnings $3,709 $1,443 +157.0% $10,192 $3,958 +157.5%
Net Earnings
Per Diluted
Share $0.22 $0.13 +69.2% $0.59 $0.37 +59.5%
Wtd. Avg.
Common and
Common Share
Equivalents
Outstanding 17,229,000 11,104,000 +55.2% 17,244,000 10,843,000 +59.0%
*September 30, 1998 data shown as previously reported excluding the
effects of pooling acquisitions completed in 1998.
Michael W. Gullion, Chairman and Chief Executive Officer, commented: "We
are again pleased to report solid growth in net interest income, non-interest
income and net earnings during the third quarter. Return on equity was on
target at 17% for the quarter-slightly ahead of our 15% ROE benchmark, while
return on assets improved to 1.2%. Our goal continues to be an ROA of 1.5%."
For the third quarter of 1999, non-interest income was $5.0 million, an
increase of 267% compared to $1.4 million reported for the third quarter of
1998. The Company's ratio of non-interest income to net interest income for
the third quarter of 1999 was 48% compared to 24% as reported for the third
quarter of 1998. Including the effects of the pooling acquisitions in 1998,
non-interest income increased 160% from the prior year third quarter. "These
results reflect the success of our ongoing efforts to expand our fee-based
income. CompuNet, acquired in the first quarter of this year, continues to
provide significant new non-interest income and was responsible for the
largest portion of growth in this category for the quarter," said Gullion.
Total assets on September 30, 1999 were $1.3 billion, an increase of 85%
over the previously reported number and up 23% from the restated figure for
the same period last year. Gullion noted: "Commercial loans to small
businesses, primarily in the metropolitan markets, drove loan growth of 85%
from reported numbers and 24% from restated figures for September 30, 1998.
Net loans totaled $857 million on September 30, 1999, representing 67% of
total assets and 89% of total deposits of $967 million."
Gullion went on to say: "These results including strong loan growth have
been attained while maintaining the high quality of our loan portfolio.
Non-performing assets to total assets improved to .47% from the previously
reported .59% and the restated .58% figures. The allowance for loan losses
continues to be 285% of non-performing loans."
The recently acquired mortgage company, Regional Investment, added
$66 million in assets and $46 million in loans to the balance sheet as of
September 30, 1999. Regional also produced fee income and gains from the sale
of loans creating additional non-interest income although the overall mortgage
company's results were negatively influenced by higher interest rates during
the quarter.
During the third quarter the eighth and final conversion of banks to the
new operating system utilizing a consolidated back office was completed on
schedule. This conversion process negatively impacted the efficiency ratio
for the period as it increased to 64%, while dual staffing was maintained to
insure a high level of customer service. Staffing levels will be reduced in
the fourth quarter. The efficiencies of the consolidation should be realized
in the fourth quarter and future periods.
"We are pleased with our dual efforts to grow our community banking and
financial service franchises both internally and by acquisitions," added
Gullion.
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 amounts)
(unaudited)
As previously (unaudited)
(unaudited) Reported Restated
Year to date Year to date Year to date
earnings earnings earnings
as of as of as of
Sept. 30, Sept. 30, Sept. 30,
1999 1998(A) 1998(B)
Selected Operating Data:
Interest income $65,215 $34,324 $54,573
Interest expense 35,019 18,951 28,560
Net interest income 30,196 15,373 26,013
Provision for loan losses 1,301 746 1,801
Net interest income after provision
for loan losses 28,895 14,627 24,212
Non-interest income:
Service fees 3,031 1,060 2,275
Net gains on sale of mortgage
loans 1,559 769 769
Net securities gains 170 92 92
Investment trading fees &
commissions 2,556 2,177 2,177
Other 5,172 274 677
Total Non-interest income 12,488 4,372 5,990
Non-interest expenses:
Salaries and employee benefits 13,783 7,122 9,272
Net occupancy expense 2,784 1,733 1,578
Depreciation expense 1,539 308 1,165
Goodwill amortization expense 721 254 300
Other 7,419 3,935 5,876
Total Non-interest expenses 26,246 13,352 18,191
Earnings before income taxes 15,137 5,647 12,011
Income tax expense (B) 4,945 1,689 3,887
Net earnings $10,192 $3,958 $8,124
Per Share Data:
Pro forma diluted earnings per
share (B) $0.59 $0.37 $0.49
Book value per share (B) $5.25 $4.97 $4.76
Period end shares outstanding 17,182 11,125 16,882
Weighted avg. shares outstanding 17,244 10,843 16,600
(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.
Gold Banc Corporation, Inc.
Reported Selected Consolidated Operating Data
(Dollars in thousands except per-share amounts)
(unaudited)
As previously (unaudited)
(unaudited) Reported restated
Quarter Quarter Quarter
earnings earnings earnings
as of as of as of
Sept. 30, Sept. 30, Sept. 30,
1999 1998(A) 1998(B)
Selected Operating Data:
Interest income $23,030 $12,857 $19,942
Interest expense 12,601 7,064 $10,406
Net interest income 10,429 5,793 9,536
Provision for loan losses 330 152 377
Net interest income after
provision for loan losses 10,099 5,641 9,159
Non-interest income:
Service fees 1,074 396 854
Net gains on sale of mortgage
loans 1,220 250 250
Net securities gains 9 34 (10)
Investment trading fees &
commissions 712 768 768
Other 2,024 (75) 77
Total Non-interest income 5,039 1,373 1,939
Non-interest expenses:
Salaries and employee benefits 5,604 2,615 3,324
Depreciation expense 933 432 682
Net occupancy expense 503 433 432
Goodwill amortization expense 312 115 130
Other 2,444 1,521 2,232
Total Non-interest expense 9,796 5,116 6,800
Net Income before income taxes 5,342 1,898 4,298
Income tax expense (B) 1,633 455 1,285
Net earnings $3,709 $1,443 $3,013
Per Share Data:
Pro forma diluted earnings
per share (B) $0.22 $0.13 $0.18
Book value per share (B) $5.25 $4.97 $4.76
Period end shares outstanding 17,182 11,125 16,882
Weighted avg. shares outstanding 17,229 11,104 16,861
(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.
Gold Banc Corporation, Inc.
Consolidated Condensed Statement of Condition
(Dollars in thousands except per-share amounts)
September 30, 1999 and 1998
(unaudited) (unaudited) (unaudited)
As of Reported Restated
Sept. 30, Sept. 30, Sept. 30,
1999 1998(A) 1998(B)
Assets
Cash and due from banks $39,935 $15,984 $28,862
Federal funds sold &
interest-bearing deposits 21,255 18,701 55,967
Loans (net of allowance
for loan losses 857,436 463,192 693,663
of $11,530 as of
September 30,1999 and
$6,982 and $10,498 as
of September 30,1998)
Investment securities 262,491 145,707 203,262
Premises and equipment 31,415 20,344 25,872
Goodwill 29,383 13,452 13,452
Accrued interest & other assets 36,747 13,442 18,796
Total Assets $1,278,662 $690,822 $1,039,874
Liabilities
Deposits $967,295 $567,782 $882,568
Federal funds purchased &
short-term borrowings 81,801 23,036 15,508
FHLB and other
long-term borrowings 62,640 11,206 23,884
Guaranteed preferred
beneficial interests in
Company's debentures 66,300 28,750 28,750
Accrued interest &
other liabilities 10,336 4,756 8,817
Total Liabilities 1,188,372 635,530 959,527
Stockholders' Equity
Common stock $17,182 $11,125 $16,882
Additional paid-in capital 29,200 25,288 28,633
Retained earnings 46,386 18,445 33,790
Accumulated comprehensive
income, net (2,281) 670 1,278
90,487 55,528 80,583
Unearned compensation (197) (236) (236)
Total Stockholders' Equity 90,290 55,292 80,347
Total Liabilities and
Stockholders' Equity $1,278,662 $690,822 $1,039,874
(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.
Gold Banc Corporation, Inc.
Key Ratios and Other Data
September 30, 1999 and 1998
(Dollars in thousands except per-share data)
Restated Restated
Sept. 30, Sept. 30, Sept. 30,
1999 1998(A) 1998(B)
Key Ratios and Other Data
Net interest margin 3.84% 3.81% 4.13%
Net interest spread 3.44% 3.38% 3.57%
Return on average assets 1.15% 0.88% 1.16%
Return on average equity 15.56% 10.49% 14.47%
Leverage ratio 7.40% 9.08% 9.46%
Tier one capital ratio 6.80% 8.94% 8.94%
Tier two capital ratio 10.59% 11.52% 10.20%
Non-performing
loans to total loans 0.47% 0.58% 0.53%
Non-performing assets
to total assets 0.47% 0.59% 0.58%
Allowance for loan
losses to total loans 1.33% 1.48% 1.49%
Allowance for loan losses
to non-performing loans 285.04% 254.35% 281.07%
Net loan charge-offs
(recoveries) to avg. loans 0.10% 0.01% 0.10%
Efficiency Ratio (core) 63.72% 69.23% 60.40%
Income Statement Highlights
Net Income $10,192 $3,958 $8,124
Net Interest Income 30,196 15,373 $26,013
Loan Loss Provision 1,301 746 $1,801
Noninterest Income 12,488 4,372 $5,990
Noninterest Expense 26,246 13,352 $18,191
Income Tax Expense(Benefit) 4,945 1,689 $3,887
Earnings Per Share $0.59 $0.37 $0.49
Balance Sheet
Highlights(A)(B) At At At
Sept. 30, Sept. 30, Sept. 30,
1999 1998 1998
Total Assets $1,278,662 $690,822 $1,039,874
Total Loans, net $857,436 $463,192 $693,663
Nonperforming Loans $4,045 $2,745 $3,735
Total Deposits $967,295 $567,782 $882,568
Stockholders' Equity $90,290 $55,292 $80,347
Book Value Per Share $5.25 $4.97 $4.76
(A) As previously reported; excluding the effects of pooling acquisitions
completed during 1998.
(B) 1998 amounts include pro forma adjustments for taxes related to
subchapter S corporate earnings of Citizens Bank of Tulsa.
SOURCE Gold Banc
 back to top
Related links:
http://www.goldbanc.com
CONTACT:
J. Craig Peterson, Exec. V.P. & CFO,
craigp@goldbanc.com, or Brian J. Ruisinger, Investor Relations,
brianr@goldbanc.com, both of Gold Banc, 913-451-8050; General,
Mike Arneth, 312-640-6734, marneth@frb.bsmg.com,
Analysts-Investors, Paul Scheeler, 312-640-6742,
pscheele@frb.bsmg.com, or Media, Joyce Hanson, 312-640-6756,
jhanson@frb.bsmg.com, all of The Financial Relations Board
|
