LEAWOOD, Kan., Dec. 30 /PRNewswire/ -- Gold Banc, (Nasdaq: GLDB),
announced today that the Company expects to report nonrecurring after-tax
costs totaling approximately $3.0 million to $3.5 million in the fourth
quarter of 1999, reducing net income by $0.18 to $0.20 per share for the
quarter. These one-time expenses are in conjunction with the previously
announced consolidation of its Kansas banks into a single statewide
organization. The consolidation will enhance operational and administrative
efficiencies and is expected to result in future cost savings of $1.3 million
to $2.0 million when fully implemented over the next 18 months.
Michael W. Gullion, Gold Banc Chairman and CEO, stated, "The consolidation
positions Gold Banc for improved efficiency and profitability. Gold's core
community banking business continues to thrive as evidenced by solid internal
growth rates and by our very favorable loan-to-deposit ratio consistently
within the 80-85 percent range. Gold's hallmark credit quality and
outstanding liquidity are also fully intact. Throughout this transition, we
have sought to preserve Gold's sterling customer service levels. The only
externally visible change will be that, to comply with regulatory
requirements, all our Kansas-chartered banks will operate under the well-known
Gold Bank name. We emerge better positioned to pass on the savings of a
reduced cost structure, and our local bank presidents can devote maximum
attention to serving the needs of their communities and ensuring that
customers continue to receive the personalized attention they expect from Gold
Banc."
Gullion went on to say, "Our fourth quarter results are also being
impacted by redundant costs as we consolidated our local bank backroom
functions into our Kansas City technology center which recently came
fully on-line. We maintained duplicative staffing at our local banks to
assure that no mistakes occurred in our customer service efforts, especially
during the Y2K anxiety period. Additionally, our mortgage banking operation
under-performed to our expectations during the quarter. The combined effect
of these two matters will reduce our core fourth quarter earnings by $900,000
to $1.4 million, or $0.05 to $0.08 per share."
Under Gold Banc's policy of taking prompt, aggressive measures, it has
implemented changes in its mortgage banking operations. Specific actions
taken to address the Company's mortgage banking business include:
-- A one-third reduction of personnel, banking operations.
-- Consolidation of the freestanding mortgage corporation into a
subsidiary of the Company's banking operation, to improve its
efficiency and funding base.
-- Sale of the mortgage loan servicing business.
"The redundant bank staffing situation and problems with the mortgage
banking operation have been addressed," said Gullion.
One of the country's fastest growing financial services organizations,
Gold Banc uses a network of community banks and electronic banking
capabilities to deliver a full range of financial products and services to
customers. Including all acquisitions announced to date, Gold Banc's assets
will increase from $1.28 billion to approximately $2.75 billion and core
deposits will increase from $967 million to more than $2.4 billion.
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 website
at http://www.frbinc.com .
Visit Gold Banc at http://www.goldbanc.com
SOURCE Gold Banc
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Related links:
http://www.goldbanc.com
CONTACT:
Michael W. Gullion, Chief Executive Officer,
Chairman of the Board, mgullion@goldbanc.com, Malcolm A. Aslin,
President, micka@goldbanc.com, J. Craig Peterson, Exec. V.P. &
CFO, craigp@goldbanc.com, all of Gold Banc, 913-451-8050;
Analysts-Investors, Paul Scheeler, 312-640-6742, or e-mail,
pscheele@frb.bsmg.com, or Media, Joyce Hanson, 312-640-6756, or
e-mail, jhanson@frb.bsmg.com, of The Financial Relations Board
for Gold Banc
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