Classic Bancshares (NASDAQ:CLAS)
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Classic Bancshares, Inc. Reports Fiscal 2005 Second Quarter
Earnings
ASHLAND, Ky., Nov. 1 /PRNewswire-FirstCall/ -- Classic Bancshares, Inc.
(NASDAQ:CLAS) reported net income of $2.1 million, or $1.34 per diluted share
for the six months ended September 30, 2004 compared to net income of $1.7
million, or $1.16 per diluted share for the six months ended September 30,
2003. Net income for the second quarter ended September 30, 2004 was $1.0
million or $.67 per diluted share compared to $905,000 or $.59 per diluted
share for the second quarter ended September 30, 2003.
The Company's assets decreased approximately $1.9 million from $341.8 million
at March 31, 2004 to $339.9 million at September 30, 2004 primarily due to a
decrease in investment securities of $3.0 million offset by a slight increase
in cash and loans. The decrease in investment securities was a result of
maturities, calls and principal repayments during the period. Deposits
decreased $18.0 million due primarily to the loss of one public fund account,
which amounted to $15.2 million at June 30, 2004. Retention of the deposit was
based upon pricing and management felt that the cost to retain the deposit was
too high. Management chose to replace the deposit with FHLB borrowings at a
lower cost. FHLB borrowings increased approximately $12.5 million since March
31, 2004.
Total non-performing assets represented .9% of total assets at September 30,
2004 compared to .7% at March 31, 2004. The Company recorded a provision for
loan losses of $261,000 for the six-month period and had net charge-offs of
$225,000 resulting in an allowance for loan losses of $2.2 million at September
30, 2004. The allowance at September 30, 2004 was equal to 91% of total
non-performing loans and .9% of total loans receivable.
Net interest income increased for both the six-month period and the second
quarter. Net interest income increased $1.0 million for the six months ended
September 30, 2004 compared to the same period in 2003 and $262,000 for the
second quarter ended September 30, 2004 compared to the same period in 2003.
The increases in net interest income for the three and six months was due to an
increase in average interest-earning assets and an increase in the Company's
interest rate spread.
The Company's non-interest income grew for both the six-month period and the
quarter. Non-interest income increased $140,000 for the six months ended
September 30, 2004 compared to the same period in 2003 and $31,000 for the
second quarter ended September 30, 2004 compared to the same period in 2003.
The increase in non-interest income was primarily due to an increase in fees
and service charges on deposit accounts as a result of a larger deposit base
offset by a decrease in commissions earned on the origination of secondary
market loans. The Company's secondary market activity consists only of
commissions earned from a third party originator and represents a small portion
of the Company's non-interest income.
Non-interest expense increased for the six-month period and remained flat for
the quarter ended September 30, 2004 when compared to the quarter ended
September 30, 2003. Non-interest expense increased approximately $302,000 for
the six months ended September 30, 2004 as compared to the six months ended
September 30, 2003. The increase in non-interest expense for the six months
was due to an increase in salaries and employee benefits and an increase in
occupancy and equipment expense primarily due to the increase in the number of
employees and banking offices as a result of the acquisition of First Federal
completed in June 2003. Non-interest expense also increased for the six-month
period due to an increase in professional fees resulting primarily from the
Company's efforts to upgrade its corporate governance policies and procedures
as well as compliance 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 condition 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, demand for loans in the Company's
market area and competition, 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 September 30, 2004 and March 31, 2004 and for the
three and six months ended September 30, 2004 and 2003.
September 30, March 31,
2004 2004
(In Thousands)
Selected Financial Condition Data:
Cash and other interest bearing
deposits $10,512 $9,213
Securities available for sale 47,604 50,916
Loans receivable, net 257,943 257,455
Goodwill and other intangible assets 8,438 8,798
Other assets 15,369 15,383
Total assets $339,866 $341,765
Deposits $242,270 $260,241
Securities sold under agreement to
repurchase 11,673 9,168
FHLB advances 46,727 34,218
Other liabilities 2,520 2,911
Total liabilities 303,190 306,538
Stockholders' Equity 36,676 35,227
Total liabilities and stockholders'
equity $339,866 $341,765
Three Months Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
(In Thousands)
Selected Operations Data:
Total interest income $4,551 $4,455 $9,078 $8,113
Total interest expense 1,288 1,454 2,585 2,660
Net interest income 3,263 3,001 6,493 5,453
Provision for loan losses 126 46 261 92
Net interest income after
provision for losses on loans 3,137 2,955 6,232 5,361
Fees and service charges 541 451 1,058 850
Gain on sale of securities - 1 17 1
Other noninterest income 69 127 140 224
Total noninterest income 610 579 1,215 1,075
Total noninterest expense 2,261 2,263 4,443 4,141
Income before income taxes 1,486 1,271 3,004 2,295
Income tax expense 449 366 915 645
Net income $1,037 $905 $2,089 $1,650
Basic earnings per share $0.74 $0.64 $1.48 $1.28
Fully diluted earnings per share $0.67 $0.59 $1.34 $1.16
At or for the At or for the
Three Months Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
Other Data:
Return on average assets
(ratio of annualized net
income to total average
assets) 1.2% 1.1% 1.2% 1.1%
Return on average equity
(ratio of annualized net
income to total average
equity) 11.5 11.2 11.8 11.2
Net interest margin(1)
(Federal Tax Equivalent) 4.4 4.1 4.4 4.3
Non-performing assets to total
assets 0.9 1.0 0.9 1.0
Allowance for loan losses to
non-performing loans 91.1 100.3 91.1 100.3
Allowance for loan losses to
loans receivable, net 0.9 1.0 0.9 1.0
Non-interest expenses/ Total
revenues(2) 56.8 61.4 56.3 61.2
Book value per share $26.08 $23.13 $26.08 $23.13
Tangible book value per share $20.08 $16.67 $20.08 $16.67
Total shares outstanding 1,408,478 1,409,891 1,408,478 1,409,891
Total weighted avg. shares
outstanding for diluted EPS 1,556,291 1,538,752 1,556,379 1,424,144
Number of full service offices 10 10 10 10
Number of ATM locations 23 23 23 23
(1) - Net interest income (Federal Tax Equivalent) annualized divided by
average earning assets.
(2) - 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, of
Classic Bancshares, Inc., +1-606-326-2800, or fax, +1-606-326-2801
Web site: http://www.classicbank.com/