Classic Bancshares (NASDAQ:CLAS)
Historical Stock Chart
From Jul 2019 to Jul 2024
Classic Bancshares, Inc. Reports Fiscal 2005 First Quarter
Earnings and Announces an Increase in the Cash Dividend
ASHLAND, Ky., Aug. 3 /PRNewswire-FirstCall/ -- Classic Bancshares, Inc.
(NASDAQ:CLAS) reported net income of $1.1 million, or $.68 per diluted share
for the three months ended June 30, 2004 compared to net income of $745,000, or
$.57 per diluted share for the three months ended June 30, 2003.
The Company's assets decreased approximately $5.8 million from $341.8 million
at March 31, 2004 to $336.0 million at June 30, 2004. Assets decreased
primarily due to a decrease in investment securities of $4.8 million and a
decrease in loans of $1.5 million. Securities decreased as a result of
maturities, calls and principal repayments during the period and a decline in
the market value of these available for sale securities. Management was
reluctant to replace these securities based on its expectation of an increase
in interest rates. Loans decreased due to the payout of some large commercial
credits and also a slowing of loan demand within the Company's market area.
Deposits decreased approximately $2.1 million due to outflow of deposits in the
normal course of business and FHLB borrowings also decreased approximately $4.6
million.
Total non-performing assets represented .8% of total assets at June 30, 2004
compared to .7% at March 31, 2004. The Company recorded a provision for loan
losses of $135,000 for the three-month period and had net charge-offs of
$132,000 for the three-month period resulting in an allowance for loan losses
of $2.2 million at June 30, 2004. The allowance at June 30, 2004 was equal to
112% of total non-performing loans and .9% of total loans receivable.
"We are pleased to continue to report double digit growth in earnings per share
despite uncertain economic conditions both regionally and nationally,"
commented President and Chief Executive Officer David B. Barbour. "Our
earnings per share growth of 17% is reflective of our effort to maintain net
interest margins while keeping non-interest expenses at levels below our
peers."
Lisah M. Frazier, Chief Operating and Chief Financial Officer added, "In view
of our continued earnings growth, the Board of Directors has elected to
increase the dividend from the current rate of $.08 per quarter to $.10 per
quarter payable to shareholders of record on August 10, 2004, representing a
25% increase." The dividend is payable on August 24, 2004.
Net interest income increased for the first quarter of the fiscal year. Net
interest income increased $778,000 for the three months ended June 30, 2004
compared to the same period in 2003. The increase in net interest income was
due to an increase in average interest-earning assets. This increase was due
primarily to the acquisition of First Federal completed in June 2003.
Non-interest income increased $109,000 for the three months ended June 30, 2004
compared to the same period in 2003. Non-interest income increased primarily
due to an increase in fees and service charges on deposit accounts as a result
of a larger deposit base.
Non-interest expense increased approximately $303,000 for the three months
ended June 30, 2004 as compared to the three months ended June 30, 2003. The
increase in non-interest expenses was due primarily to an increase in salaries
and employee benefits and an increase in occupancy and equipment expense. These
expenses increased primarily due to the acquisition of First Federal completed
in June 2003. Non-interest expenses also increased due to an increase in
professional fees resulting primarily from the Company's efforts to upgrade its
corporate governance and comply with new regulatory requirements.
Classic Bancshares, Inc. is headquartered in Ashland, Kentucky and has one
subsidiary, Classic Bank. Classic Bank operates at 344 Seventeenth Street,
Ashland, Kentucky with nine branch offices located in Boyd, Carter, Greenup and
Johnson counties in Kentucky and Lawrence County, Ohio.
When used in this press release, the words or phrases "should result," "will
likely result", "are expected to", "will continue", "is anticipated",
"estimate", "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including changes in economic conditions in the Company's
market area including unemployment levels and plant closings, real estate
values in the Company's market area, changes in policies by regulatory
agencies, fluctuations in interest rates and demand for loans in the Company's
market area and competition, and the Company's ability to recruit additional
managers to sustain its growth and difficulties in integrating the operations
of merged companies into Classic's that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance
on such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed could affect the
Company's financial performance and could cause the Company's actual results
for future periods to differ materially from any opinions or statements
expressed with respect to future periods in any current statements.
The Company does not undertake-and specifically declines any obligation-to
publicly release the result of any revisions which may be made to any forward-
looking statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or unanticipated events.
SELECTED FINANCIAL DATA
The following table sets forth selected financial data of Classic
Bancshares, Inc. as of June 30, 2004 and March 31, 2004 and for the
three months ended June 30, 2004 and 2003.
June 30, March 31,
2004 2004
(In thousands)
Cash and other interest bearing
deposits with other financial
institutions $10,098 $9,213
Securities available for sale 46,122 50,916
Loans receivable, net 255,961 257,455
Goodwill & other intangibles 8,465 8,798
Other assets 15,329 15,383
Total assets $335,975 $341,765
Deposits $258,183 $260,241
Securities sold under agreement
to repurchase 11,541 9,168
FHLB advances 29,580 34,218
Other liabilities 1,757 2,911
Total liabilities 301,061 306,538
Stockholders' equity 34,914 35,227
Total liabilities and
stockholders' equity $335,975 $341,765
Three Months Ended
June 30,
(In thousands, except
per share amounts)
2004 2003
Total interest income $4,528 $3,658
Total interest expense 1,298 1,206
Net interest income 3,230 2,452
Provision for loan losses 135 46
Net interest income after
provision for loan losses 3,095 2,406
Fees and service charges 517 399
Gain on sale of securities 17 -
Other noninterest income 71 97
Total noninterest income 605 496
Total noninterest expense 2,181 1,878
Income before income taxes 1,519 1,024
Income tax expense 467 279
Net income $1,052 $745
Basic earnings per share(1) $0.75 $0.63
Fully diluted earnings per share(1) $0.68 $0.57
At or for the
Three Months Ended
June 30,
2004 2003
Return on average assets (ratio of
annualized net income to total
average assets) 1.3% 1.2%
Return on average equity (ratio of
annualized net income to total
average equity) 12.1 11.1
Net interest margin(2) (Federal Tax
Equivalent) 4.3 4.5
Non-performing assets to total assets 0.8 0.8
Allowance for loan losses to
non-performing loans 112.2 119.1
Allowance for loan losses to loans
receivable, net 0.9 1.2
Non-interest expenses/Total revenues(3) 55.5 61.4
Book value per share(1) $24.81 $22.11
Tangible book value per share(1) $18.80 $15.94
Total shares outstanding(1) 1,407,183 1,467,566
Total weighted avg. shares
outstanding for diluted EPS(1) 1,556,468 1,297,383
Number of full service offices 10 10
Number of ATM locations 21 23
(1) Amounts were adjusted for all periods presented to reflect the 10%
stock dividend paid on November 17, 2003.
(2) Net interest income (Federal Tax Equivalent) annualized divided by
average earning assets.
(3) Total revenues=Net interest income (Federal Tax Equivalent)
+ non-interest income.
DATASOURCE: Classic Bancshares, Inc.
CONTACT: David B. Barbour, President and Chief Executive Officer, or
Lisah M. Frazier, Chief Operating Officer and Chief Financial Officer,
+1-606-326-2800, or fax, +1-606-326-2801, both of Classic Bancshares, Inc.
Web site: http://www.classicbank.com/