Gold Banc (NASDAQ:GLDB)
Historical Stock Chart
From Jun 2019 to Jun 2024
Gold Banc Corporation, Inc. (Nasdaq: GLDB), a $4.1
billion financial services company offering banking and asset
management services, today announced earnings for the quarter ended
June 30, 2005, of $25.3 million or $0.66 per share. This is an
increase of $25.0 million over the second quarter 2004 earnings of
$0.3 million or $0.01 per share. Year-to-date earnings were $33.4
million or $0.86 per share compared to $13.6 million or $0.35 per
share in the prior year. This is an increase in earnings of 145.2%
over the prior year that included a $20.6 million gain on branch sales
as well as qui tam litigation settlement expenses of $14.0 million.
Positively impacting net earnings for the quarter was a $34.4
million gain ($22.1 net of tax) on the sale of five Oklahoma branches
located in Oklahoma City, El Reno, Kingfisher, Hennessey, and Enid.
This previously announced sale was completed June 17, 2005, pursuant
to an agreement reached in January with Olney Bancshares of Texas,
Inc. The combined loans and deposits of the five branches sold totaled
approximately $347.9 million and $332.6 million, respectively.
Additionally, the net value of premises and equipment sold was
approximately $4.3 million. Gold Bank will continue to operate its
three banking locations in Tulsa. As a result of the sale, Gold Banc
adds significant new equity and positions its franchise with nearly
75% of deposits in counties with superior demographics to the United
States as a whole. Also in conjunction with the branch sale, an
allocation was made of a portion of the Company's goodwill and
allowance for loan losses associated with the Oklahoma branches.
"We are pleased with the continued robust loan growth for the
quarter as well as our continued reduction in wholesale funding while
increasing core deposits. We remain asset sensitive and improved our
net interest margin for the quarter to 3.18% compared to 2.80% for the
same quarter last year and 2.99% for the prior quarter. As planned, we
increased our allowance for loan losses to 1.14% of loans compared to
1.03% at year-end and 1.01% last quarter end," said Mick Aslin, Chief
Executive Officer. "Non-performing loans have increased during the
past two quarters as a result of three loans, in which we feel well
secured and are optimistic will be paid off or returned to a
performing status. Net charge-offs are down compared to the comparable
quarter and six-month period last year. Economic growth continues to
look good in our markets and we expect continued loan growth, although
at a slightly slower pace than the first half of this year. We are
disappointed in the continued high level of accounting and legal
expenses and will be renewing our focus on reducing these areas of
expense. We are also disappointed in our service charge income and
will continue our focus on improving this area," Aslin continued.
In conjunction with the sale, Gold Bank announced the formation of
the Gold Bank Foundation Fund with the Greater Kansas City Community
Foundation funded with a donation of $1.5 million during the quarter.
This fund will provide a vehicle for future charitable contributions
and contribute to tax savings as an alternative to charges to
earnings.
Gold Banc also completed the sale of $101.3 million of investment
securities during the second quarter with a net loss of $2.0 million.
With the average costs of short-term borrowing approaching the yield
on these bonds this strategy serves to de-leverage the balance sheet,
reduce the Company's reliance on Federal Home Loan Bank ("FHLB")
borrowings and improve margin. These available-for-sale securities
were not required for pledging or other operating needs, and were sold
in June at recent market highs.
Net Interest Income
For second quarter 2005, net interest income after provision for
loan loss was $27.2 million, compared to $26.0 million for second
quarter 2004 and $29.0 million for first quarter 2005. The increase
over the prior year is attributed to a significant increase in
interest earned on loans due to principal growth and increased rates
offset by a decline on investment earnings due to declines in the
principal balances from pay-downs, sales and maturities of securities.
Borrowing costs also rose over last year due to rising interest rates.
In addition, there was an increased provision for loan losses due to
significant loan growth as well as changes in classifications of
loans. Changes in net interest income from the first quarter of 2005
are primarily due to increased provision expense. The tax equivalent
net interest margin for second quarter 2005 increased to 3.18% from
2.80% for second quarter 2004. Higher loan rates have continued to
outpace deposit rate growth since the first quarter.
Non-Interest Income
Non-interest income totaled $38.7 million in second quarter 2005
compared to $13.4 million for second quarter 2004. The largest drivers
of the change are gains on branch sales in 2005 and 2004 of $34.4
million and $3.6 million, respectively. As previously mentioned, a
$1.9 million loss was realized on the sale of securities net of gains
in the current quarter. Additionally, Gold Banc recognized a gain on
the sale of its credit card portfolio of $1.2 million in second
quarter 2004. Service fees are also down from a year ago due to
restructuring of NSF and account analysis charges. This restructuring
increased fees for analysis but negatively impacted fees overall.
Non-interest income is down slightly from first quarter 2005 due to
the items mentioned above as well as a decline in investment trading
fees and commissions.
Non-Interest Expense
Non-interest expense for the quarter ended June 30, 2005, was
$25.5 million, compared to $37.9 million for second quarter 2004,
which contained $14.0 million of expenses associated with the
settlement of qui tam litigation. Salaries and employee benefits were
up slightly due to increases in health insurance costs offset by
reductions in wages due to branch sales and reduced commissions from
diminished trading activity. The current quarter showed an increase
over the prior quarter ended March 31, 2005, with non-interest expense
of $24.3 million due to increases in professional services costs
including accounting and legal fees as well as the $1.5 million
contribution to the Gold Bank Foundation Fund.
Balance Sheet
As of June 30, 2005, Gold Banc total assets were $4.095 billion
including $2.908 billion total loans net of allowance, $781.1 million
investment securities, and $2.913 billion total deposits. As of
December 31, 2004, Gold Banc's total assets were $4.330 billion, total
investment securities were $916.0 million, total loans net of
allowance (including loans held for sale) were $3.067 billion, and
total deposits (including deposits held for sale) were $3.137 billion.
Loans and deposits held for sale at December 31, 2004, were identified
for the then-pending transaction to sell five Oklahoma branches.
Net loan growth continued with $122.8 million or 4.4% added in
second quarter 2005, excluding the branch sales. Along with the $101.9
million added in first quarter 2005, net loans have grown 8.3% from
$2.717 billion at December 31, 2004. Excluding branch sales, deposits
grew $45.4 million or 1.6% during second quarter 2005 in addition to
the growth of $81.3 million or 2.9% in the first quarter, despite a
reduction in brokered certificates of deposit. Brokered certificates
of deposit totaled $406.8 million as of June 30, 2005, a $129.8
million reduction from $536.6 million at the end of 2004. FHLB
advances were $486.8 million at June 30, 2005, compared to $571.9
million at December 31, 2004, an $85.1 million reduction. This
combined reduction of $214.9 million in brokered deposits and FHLB
borrowings reflects Gold Banc's commitment to move away from wholesale
funding and to build core deposits.
The $381.8 million available-for-sale securities portfolio is
comprised of $219.8 million in obligations of U.S.
government-sponsored entities, $112.1 million of mortgage-backed
securities, $39.7 million of stock and other investments, $9.5 million
in municipal securities, and $0.7 million in U.S. Treasury securities.
The average maturity is approximately 4.1 years, or 3.0 years
excluding trust preferred securities. Held-to-maturity securities
total $396.5, and are comprised of $252.1 million in obligations of
U.S. government-sponsored entities, $83.2 million of mortgage-backed
securities, $44.5 million of trust-preferred securities, and $16.7
million of municipal securities. Held-to-maturity securities provide a
degree of desirable insulation to our tangible equity level in a
rising-interest-rate environment.
Credit Quality
Non-performing loans totaled $25.8 million or 0.88% of total loans
at June 30, 2005, compared to $15.7 million or 0.51% of total loans on
December 31, 2004. Other real estate owned remained steady, increasing
$0.1 million from December 31, 2004, to $3.8 million as of June 30,
2005. Non-performing assets as a percentage of total assets increased
to 0.72% on June 30, 2005, compared to 0.45% on December 31, 2004, due
to an increase in non-accrual loans. The provision for loan losses for
the quarter was $4.0 million compared to $1.4 million in second
quarter 2004. On a year-to-date basis, the provision for the loan
losses in 2005 was $5.3 million compared to $4.3 million in 2004. The
2005 increase of $1.0 million is due primarily to specific reserves
for individual credits as well as changes in classifications of loans
to categories that merit greater allowances, reflecting our view of
current economic trends and risk. The allowance for loan losses was
$33.6 million on June 30, 2005, compared to $32.1 million on December
31, 2004.
Capital
The capital levels of Gold Banc continue to be well in excess of
the well-capitalized levels established by regulatory agencies. At
June 30, 2005, the company's total capital ratio was 11.97%, its
tier-one ratio was 10.28%, and its leverage ratio was 8.16%. Capital
ratios have grown from the previous year and the previous quarter due
to the Oklahoma branch sale, offset somewhat by stock repurchases as
discussed below. Book value per share was $7.20 and tangible book
value was $6.31 on June 30, 2005, compared to $6.73 and $5.84
respectively on December 31, 2004. Gold's tangible equity to asset
ratio at the end of second quarter 2005 was 6.80%, increased from
6.24% at December 31, 2004. This ratio has improved since first
quarter due to the completion of Gold's sale of five Oklahoma
branches.
Share Repurchase
On April 18, 2005, the board of directors authorized an additional
expenditure of up to $20.0 million for the repurchase of its
outstanding common stock from time to time during the next twelve
months in open market purchases and private transactions subject to
market conditions, and as permitted by securities laws and other legal
requirements. This authorization is in addition to the expenditure of
up to $12.0 million authorized on October 21, 2004. During the
quarter, 960,225 shares of stock were repurchased at a total cost of
$13.3 million (average cost per share of $13.87). This is in addition
to the 766,114 shares of stock repurchased in first quarter 2005. On a
year-to-date basis, 1,726,339 shares have been repurchased at a total
cost of $24.3 million (average cost per share of $14.08).
Dividend
The Gold Banc board of directors also declared a cash dividend of
$0.05 per common share on July 13, 2005. The dividend will be payable
August 16, 2005, to shareholders of record as of August 9, 2005. Gold
Banc has 38,682,766 shares outstanding as of June 30, 2005. This marks
the second quarter of increased dividends paid, which have been $0.03
per common share since first quarter 2003 until the dividend declared
on April 18, 2005.
Conference Call
A conference call has been scheduled for July 14, 2005, at 7:30
a.m. (CDT) to discuss earnings and results of operations for the
second quarter, and strategic direction and goals. A transcript of the
call will be available on www.goldbanc.com on July 15, 2005.
To call in, please call:
303-262-2052
Toll-Free: 800-240-2430
The operator will ask which category each participant belongs in
as follows:
1) Gold Banc Shareholders
2) Financial Analyst/Investment Managers
3) Associates
4) Media
About Gold Banc
Gold Banc is a $4.1 billion financial holding company
headquartered in Leawood, Kansas, a part of the Kansas City
metropolitan area. Gold Banc provides banking, and asset management
services in Florida, Kansas, Missouri and Oklahoma through 33 banking
locations. Gold Banc is traded on the NASDAQ under the symbol GLDB.
Cautionary Statements Regarding Forward-Looking Information
The Company does not intend to update the above information. The
above information included herein contains certain "forward-looking
statements" with respect to the financial condition, results of
operations, plans objectives, future financial performance and
business of our company and its subsidiaries, including, without
limitation:
-- statements that are not historical in nature;
-- statements preceded by, followed by or that include the words
"believes," "expects," "may," "will," "should," "could,"
"anticipates," "estimates," "intends" or similar expressions;
and
-- statements regarding the timing of the closing of the branch
sales.
Forward-looking statements are not guarantees of future
performance or results. They involve risks, uncertainties and
assumptions. Actual results may differ materially from those
contemplated by the forward-looking statements due to, among others,
the following factors:
-- inability to obtain waivers of defaults under our credit
facilities or find alternative financing;
-- transition and strategies of new management;
-- changes in interest margins on loans;
-- changes in allowance for loan losses;
-- changes in the interest rate environment;
-- competitive pressures among financial services companies may
increase significantly;
-- general economic conditions, either nationally or in our
markets, may be less favorable than expected;
-- legislative or regulatory changes may adversely affect the
business in which our Company and its subsidiaries are
engaged;
-- technological changes may be more difficult or expensive than
anticipated;
-- hedging activities may be less effective than anticipated; and
-- changes may occur in the securities markets.
We have described under the caption "Factors That May Affect
Future Results of Operation, Financial Condition or Business" in
Exhibit 99.1 to the Company's Annual Report on Form 10-K/A for 2004
additional factors that could cause actual results to be materially
different from those described in the forward-looking statements.
Other factors that we have not identified under that caption could
also have this effect. You are cautioned not to put undue reliance on
any forward-looking statement which speaks only as of the date it was
made.
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(unaudited)
June 30, Dec. 31,
2005 2004
----------- -----------
Assets
Cash and due from banks $68,503 $65,011
Federal funds sold and interest-bearing
deposits 99,446 43,286
----------- -----------
Total cash and cash
equivalents 167,949 108,297
----------- -----------
Investment securities:
Available-for-sale, at fair value 381,757 498,763
Held-to-maturity (fair value of $391,191
and $411,232 as of June 30, 2005, and
December 31, 2004, respectively) 396,541 411,802
Trading, at fair value 2,845 5,456
----------- -----------
Total investment securities 781,143 916,021
----------- -----------
Loans 2,941,417 2,716,700
Allowance for loan losses (33,552) (32,108)
-----------------------
2,907,865 2,684,592
-----------------------
Mortgage loans held-for-sale, net 8,068 5,724
Premises and equipment, net 53,462 51,613
Goodwill 29,252 30,484
Other intangible assets, net 4,960 5,336
Accrued interest and other assets 57,036 57,807
Cash surrender value of bank-owned life
insurance, net of surrender charges 84,857 82,992
Assets held for sale - 387,510
----------- -----------
Total assets $4,094,592 $4,330,376
=========== ===========
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(unaudited)
June 30, Dec. 31,
2005 2004
----------- -----------
Liabilities and Stockholders' Equity
Liabilities:
Deposits $2,913,417 $2,786,774
Securities sold under agreements to
repurchase 131,450 112,205
Federal funds purchased and other
short-term borrowings 15,960 2,463
Subordinated debt 116,599 116,599
Long-term borrowings 593,667 661,534
Accrued interest and other liabilities 45,171 30,231
Liabilities held for sale - 350,186
----------- -----------
Total liabilities 3,816,264 4,059,992
----------- -----------
Stockholders' equity:
Preferred stock, no par value;
50,000,000 shares authorized,
no shares issued - -
Common stock, $1.00 par value;
50,000,000 shares authorized
45,233,680 and 45,011,227 shares issued
at June 30, 2005, and December 31, 2004 45,234 45,011
Additional paid-in capital 132,935 129,381
Retained earnings 176,557 146,360
Accumulated other comprehensive
loss, net (5,910) (6,007)
Unearned compensation (11,888) (10,072)
----------- -----------
336,928 304,673
Less treasury stock, 6,550,914 shares
and 4,824,575 shares at June 30, 2005,
and December 31, 2004 (58,600) (34,289)
----------- -----------
Total stockholders' equity 278,328 270,384
----------- -----------
Total liabilities and stockholders' equity $4,094,592 $4,330,376
=========== ===========
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
For the Three Months ended
(In thousands, except per share data)
(unaudited)
June 30, June 30,
2005 2004
--------- ---------
Interest Income:
Loans, including fees $51,406 $38,631
Investment securities 7,478 9,758
Other 746 463
--------- ---------
Total interest income 59,630 48,852
--------- ---------
Interest Expense:
Deposits 19,206 14,208
Borrowings and other 9,151 7,166
--------- ---------
Total interest expense 28,357 21,374
--------- ---------
Net interest income 31,273 27,478
Provision for loan losses 4,033 1,447
--------- ---------
Net interest income after provision
for loan losses 27,240 26,031
--------- ---------
Other income:
Service fees 3,205 4,543
Investment trading fees and commissions 251 726
Net gains on sale of mortgage loans 379 419
Net gains (losses) on sale of securites (1,883) 36
Gain on sale of branch facilities 34,420 3,621
Bank-owned life insurance 943 928
Trust fees 1,224 1,103
Gain on sale of credit card portfolio - 1,156
Other 162 846
--------- ---------
Total other income 38,701 13,378
--------- ---------
Other expense:
Salaries and employee benefits 12,968 12,640
Data processing 1,676 1,916
Net occupancy expense 1,774 1,733
Depreciation expense 1,861 1,610
Professional services 1,683 1,833
Expense for the settlement
of qui tam litigation, net - 14,000
Other 5,575 4,151
--------- ---------
Total other expense 25,537 37,883
--------- ---------
Earnings from continuing
operations before income taxes 40,404 1,526
Income tax expense 15,139 1,217
--------- ---------
Net earnings $25,265 $309
========= =========
Net earnings per share - basic $0.67 $0.01
--------- ---------
Net earnings per share - diluted $0.66 $0.01
========= =========
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
For the Six Months ended
(In thousands, except per share data)
(unaudited)
June 30, June 30,
2005 2004
--------- --------
Interest Income:
Loans, including fees $99,725 $79,226
Investment securities 15,384 19,090
Other 1,532 1,052
--------- --------
Total interest income 116,641 99,368
--------- --------
Interest Expense:
Deposits 36,938 28,731
Borrowings and other 18,130 14,619
--------- --------
Total interest expense 55,068 43,350
--------- --------
Net interest income 61,573 56,018
Provision for loan losses 5,285 4,311
--------- --------
Net interest income after
provision for loan losses 56,288 51,707
--------- --------
Other income:
Service fees 6,417 8,448
Investment trading fees and commissions 1,045 1,636
Net gains on sale of mortgage loans 587 806
Net gains (losses) on sale of securites (2,064) 137
Gain on sale of branch facilities 34,420 20,574
Gain on credit card portfolio - 1,156
Bank-owned life insurance 1,877 1,958
Trust fees 2,506 2,242
Other 351 1,168
--------- --------
Total other income 45,139 38,125
--------- --------
Other expense:
Salaries and employee benefits 25,876 26,592
Data processing 3,564 4,015
Net occupancy expense 3,503 3,495
Depreciation expense 3,632 3,177
Professional services 2,889 3,811
Expense for the settlement of qui tam
litigation, net - 14,000
Other 10,397 11,621
--------- --------
Total other expense 49,861 66,711
--------- --------
Earnings from continuing operations
before income taxes 51,566 23,121
Income tax expense 18,178 8,955
--------- --------
Net earnings from continuing operations 33,388 14,166
Net loss from discontinued operations,
net of tax - (551)
--------- --------
Net earnings $33,388 $13,615
========= ========
Net earnings from continuing operations
per share - basic $0.87 $0.36
Net loss from discontinued operations
per share - basic $ - $(0.01)
--------- --------
Net earnings per share - basic $0.87 $0.35
========= ========
Net earnings from continuing
operations per share - diluted $0.86 $0.36
Net loss from discontinued operations
per share - diluted $ - $(0.01)
--------- --------
Net earnings per share - diluted $0.86 $0.35
========= ========
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Key Ratios
June 30, 2005 and Dec. 31, 2004
(In thousands, except per share data and percentages)
June 30, Dec. 31,
2005 2004
------------ ------------
Balance Sheet Ratios:
Total shares outstanding 38,683 40,187
Book value per share $ 7.20 $ 6.73
Tangible book value per share $ 6.31 $ 5.84
Leverage ratio 8.16% 7.75%
Tier 1 risk-based capital ratio 10.28% 9.32%
Total risk-based capital ratio 11.97% 11.08%
Non-performing loans (NPL) $ 25,846 $ 15,693
NPL / Loans 0.88% 0.51%
Allowance / NPL 129.81% 204.60%
Allowance / Loans 1.14% 1.03%
Non-performing assets (NPA) $ 29,648 $ 19,567
NPA / Assets 0.72% 0.45%
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Key Ratios - Three Months ended
(In thousands, except per share data and percentages)
June 30, June 30,
2005 2004
---------- ----------
Income Statement Ratios:
Weighted Average shares outstanding 38,434 39,190
Net income per share - basic $ 0.67 $ 0.01
Net income per share - diluted $ 0.66 $ 0.01
Net income per share - continuing
operations - basic $ 0.67 $ 0.01
Net income per share - continuing
operations - diluted $ 0.66 $ 0.01
Return on average assets (annualized) 2.33% 0.03%
Return on average equity (annualized) 38.55% 0.46%
Net interest margin (tax equivalent) 3.18% 2.80%
Net interest margin 3.18% 2.76%
Non-interest income / Net interest income 123.75% 45.24%
Efficiency ratio 71.95% 71.31%
Net loans charged off $ 468 $ 1,580
Net charge offs to loans (annualized) 0.06% 0.22%
Average loans (in thousands,
including loans held for sale) $3,177,972 $2,873,009
Average assets (in thousands) $4,346,981 $4,284,790
*T
-0-
*T
GOLD BANC CORPORATION, INC. AND SUBSIDIARIES
Key Ratios - Six Months ended
(In thousands, except per share data and percentages)
June 30, June 30,
2005 2004
----------- -----------
Income Statement Ratios:
Weighted Average shares outstanding 38,814 39,022
Net income per share - basic $ 0.87 $ 0.35
Net income per share - diluted $ 0.86 $ 0.35
Net income per share - continuing
operations - basic $ 0.87 $ 0.36
Net income per share - continuing
operations - diluted $ 0.86 $ 0.36
Net loss per share - discontinued
operations - basic $ - $ (0.01)
Net loss per share - discontinued
operations - diluted $ - $ (0.01)
Return on average assets (annualized) 1.54% 0.64%
Return on average equity (annualized) 25.32% 10.28%
Net interest margin (tax equivalent) 3.08% 2.87%
Net interest margin 3.08% 2.82%
Non-interest income / Net interest income 73.31% 63.90%
Efficiency ratio 68.92% 76.88%
Net loans charged off $ 1,555 $ 2,336
Net charge offs to loans (annualized) 0.11% 0.16%
Average loans (in thousands, including
loans held for sale) $3,164,340 $2,903,238
Average assets (in thousands) $4,370,881 $4,271,415
*T