Gold Banc (NASDAQ:GLDB)
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Gold Banc Corporation, Inc. (Nasdaq:GLDB), today
announced earnings for the quarter ended September 30, 2005 of $5.0
million or $0.13 per share. This is an increase of $6.8 million over
the third quarter 2004 net loss of $1.8 million or $0.05 per share.
Year to date earnings were $38.4 million or $1.00 per share compared
to $11.8 million or $0.29 per share in the prior year. Additionally,
the board of directors authorized an expenditure of up to $20.0
million for the repurchase of common stock, which is supplemental to
the $32.0 million of stock previously repurchased this year.
"The third-quarter's underlying performance was achieved despite
the recently announced settlement with the IRS which was mitigated by
associated recoveries from other parties," explained Chief Executive
Officer Mick Aslin. "For instance, net loans and deposits, excluding
branch sales, were up 2.8% and 3.7%, respectively, for the quarter,
and were up 11.4% and 8.4% year to date, respectively. The net
interest margin improved slightly, and our efficiency ratio has
improved dramatically. Even so, our core earnings per share fell $0.03
short of our target, primarily because of higher provision for loan
losses, lower-than-expected contribution from Gold Capital Management
and lower-than-projected net interest income due to nearly half of the
new loan volume coming the last ten days of the quarter."
Turning to the fourth-quarter outlook, Aslin anticipated core
earnings per share should approximate $0.24 - $0.25 ($0.27 - $0.28
GAAP earnings including the settlement payment received in fourth
quarter discussed below), with continued loan and deposit growth
anticipated, as well as slight margin expansion if the Federal Reserve
increases rates on November 1.
"Most important," Aslin emphasized, "we remain confident about the
validity of our strategy of focusing on our large metro markets, which
rank among the highest-growth Metropolitan Statistical Areas in the
country. To capitalize on this enviable market positioning, over the
next three years we anticipate opening up to 12 new offices in our
Florida and Midwest markets."
Aslin also reported that Gold Banc is implementing several
initiatives aimed at contributing to consistent earnings growth. "The
steps we are taking include a personal banking emphasis on new
checking accounts and attractive CD rates with other features that are
being well-received by customers; new leadership in Business Banking
and Residential Real Estate Lending, which is focused on more targeted
marketing campaigns, and a renewed emphasis on Asset Management, Trust
Services and Private Banking, all areas with significant growth
potential."
Although significantly improved over last year's third quarter,
the results for this year's third quarter include a $3.5 million
settlement agreement with the IRS, announced earlier this week. The
Gold Bank Kansas (the "Bank") subsidiary entered into three settlement
agreements with the IRS arising from the Bank's purchase of $14.2
million in multifamily housing revenue bonds (the "Series C Bonds") in
2001 and 2002. The Bank made a one-time $3.5 million cash payment in
full settlement of all claims made by the IRS. The payment is
reflected as income tax expense in the quarterly financial statements.
The Bank didn't admit any liability or wrongdoing in connection with
the settlement. Further detail on the settlement can be obtained in
the related news release and Form 8-K, both dated October 17, 2005.
The Bank made a claim against the trustee of the Oklahoma Series C
Bonds. The trustee denied any wrongdoing in connection with the
Oklahoma Series C bonds. On September 29, 2005, the Bank entered into
a Settlement Agreement and Release with the trustee, pursuant to which
the trustee made a cash payment of $1.4 million to the Bank and the
Bank released the trustee from liability in connection with the claims
described above. This payment was received prior to the close of the
quarter ended September 30, 2005 and was recorded as a reduction of
the remaining principal of the Series C Bonds in the amount of $0.8
million and a settlement gain in the amount of $0.6 million.
"The resulting net impact of these settlements per outstanding
share totaled approximately $0.08 in third quarter 2005. As indicated
in the October 17, 2005 press release, a $1.75 million additional
recovery has been received and will be recorded as income in fourth
quarter 2005 in the amount of approximately $0.03 per share net of
tax. When all was said and done, these investments generated a net
positive return of approximately 5% based on currently known facts,"
commented Aslin.
The following chart provides a reconciliation of GAAP net earnings
to core earnings excluding unusual, non-recurring items in the results
for the three months ended September 30, 2005 and 2004:
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*T
3 Months 3 Months 3 Months 3 Months
Ended Ended Ended Ended
9/30/05 9/30/05 9/30/04 9/30/04
(amounts in (earnings (amounts in (earnings
millions) per share) millions) per share)
----------- ----------- ----------- -----------
GAAP net earnings: $ 5.0 $ 0.13 $ (1.8) $ (0.05)
Gain on branch sales: - - - -
Bond impairment: - - 10.8 0.28
Qui tam settlement: - - 2.5 0.06
Bond trustee
settlement: (0.6) (0.02)
IRS settlement: 3.5 0.09 - -
Tax impact of
adjustments: 0.2 0.01 (3.8) (0.09)
---------- ---------- ---------- ----------
Core earnings: $ 8.1 $ 0.21 $ 7.7 $ 0.20
========== ========== ========== ==========
GAAP earnings ratios
Return on average
assets (annualized): 0.49% -0.17%
Return on average
equity (annualized): 7.10% -2.70%
Core earnings ratios
Return on average
assets (annualized): 0.79% 0.73%
Return on average
equity (annualized): 11.46% 11.28%
*T
GAAP net earnings for the three months ended September 30, 2005
were $5.0 million compared to a loss of $1.8 million for the prior
year. After adjusting for unusual, non-recurring items, core earnings
for the three months ended September 30, 2005 were $8.1 million
compared to $7.7 million for the prior year. As with the nine-month
period, the provision for loan losses was higher in 2005 than in 2004
due to loan growth as well as reclassification of credits as a result
of the ongoing internal loan review process. Net interest income
improved slightly due to growth in the spread between interest income
on loans and investments and interest expense on deposits and
borrowings over the same period last year. GAAP net earnings for the
nine months ended September 30, 2005 were $38.4 million compared to
$11.8 million for the prior year. After adjusting for unusual,
non-recurring items, core earnings for the nine months ended September
30, 2005 were $24.2 million compared to $21.9 million for the prior
year. The improvement was driven primarily by stronger net interest
income offset partially by the provision for loan losses, which was
$2.6 million higher in 2005 than in 2004.
Net Interest Income
For third quarter 2005, net interest income after provision for
loan loss was $27.5 million, compared to $28.5 million for third
quarter 2004 and $27.2 million for second quarter 2005. The decrease
over the prior year is attributed to branch sales as well as the
following other factors. Interest income on loans increased $9.9
million due primarily to rate increases with a lesser portion of the
increase attributable to loan growth. Interest income on investments
decreased $2.1 million due to declining principal balances from sales
and maturities. Interest expense on deposits increased $5.3 million
almost exclusively due to rate increases from recent market conditions
as well as a concerted effort to grow core deposits and position
ourselves competitively. Interest expense on borrowings grew $2.0
million due again to rate increases with some volume improvement as we
have shifted away from borrowings in favor of deposits. The provision
for loan losses was up $1.6 million this quarter over the same quarter
last year due to significant loan growth as well as changes in
classifications of loans as we continue to review our portfolio.
Changes in net interest income after provision for loan loss from the
second quarter of 2005 are primarily due to a lower provision for loan
losses, offset by decreased earning assets resulting from branch
sales, reduced interest income on investments as the portfolio has
diminished, and increased rates on deposits and borrowings. The tax
equivalent net interest margin for third quarter 2005 increased to
3.10% from 2.99% for third quarter 2004 and from 3.07% for second
quarter 2005.
Non-Interest Income
Non-interest income totaled $6.8 million in third quarter 2005
compared to a net expense of $4.5 million for third quarter 2004. The
expense in 2004 was caused by an impairment charge taken on the Series
C bonds of $10.8 million. Service fees are also down from a year ago
due to branch sales as well as restructuring of insufficient funds and
account analysis charges. This restructuring has negatively impacted
fees for the year. The fee policy was adjusted during the third
quarter, which resulted in higher service fees late in the quarter,
but there was still a decline for the quarter. Investment trading fees
and commissions are down from a year ago due to lower volume in our
institutional fixed income brokerage business. Non-interest income is
nearly flat from second quarter 2005 after adjusting for the gain on
branch sales and loss on investment sales during second quarter.
Non-Interest Expense
Non-interest expense for third quarter 2005 was $21.3 million,
compared to $26.9 million for third quarter 2004, which contained $2.5
million of expenses associated with the settlement of qui tam
litigation. Salaries and employee benefits were down due to reductions
in wages due to branch sales, declines in ESOP expense due to lower
plan costs, and declines in stock compensation expense due to fewer
restricted stock grants than in the prior year. The current quarter
non-interest expense was decreased from the prior quarter due again to
reduced wages from branch sales as well as the donation of $1.5
million made in the second quarter to the Gold Bank Foundation Fund.
Balance Sheet
As of September 30, 2005, Gold Banc total assets were $4.077
billion including $2.991 billion total loans net of allowance and
$769.4 million investment securities, and total deposits were $3.022
billion. As of December 31, 2004, Gold Banc's total assets were $4.330
billion, total loans net of allowance were $3.067 billion (including
loans held for sale), total investment securities were $916.0 million,
and total deposits were $3.137 billion (including deposits held for
sale). Loans and deposits held for sale at December 31, 2004 were
identified for the then-pending transaction to sell five Oklahoma
branches, which closed on June 17, 2005.
Excluding branch sale activity, net loan growth continued with
$83.7 million or 2.8% added in third quarter 2005. Along with the
$224.7 million added in first and second quarters of 2005, net loans
after branch sales have grown $308.4 million or 11.4% from $2.717
billion at December 31, 2004. Excluding branch sales, deposits grew
$108.6 million or 3.7% during third quarter 2005 in addition to the
aggregate growth of $126.6 million in the first and second quarters of
2005. For the year, deposits after branch sales have grown $235.2
million or 8.4%, despite a reduction in brokered certificates of
deposit. Brokered certificates of deposit totaled $377.1 million as of
September 30, 2005, a $159.5 million reduction from $536.6 million at
the end of 2004 and a reduction of $29.7 million for the quarter. FHLB
advances were $411.8 million at September 30, 2005, a $160.1 million
reduction from $571.9 million at December 31, 2004, and a reduction of
$75.1 million for the quarter. This combined reduction of $319.6
million in brokered deposits and FHLB borrowings reflects Gold Banc's
commitment to move away from wholesale funding and to build core
deposits.
The $373.9 million available-for-sale securities portfolio is
comprised of $218.5 million in obligations of US government-sponsored
entities, $104.1 million of mortgage-backed securities, $41.4 million
of stock and other investments, $9.2 million in municipal securities,
and $0.7 million in US Treasury securities. The average maturity of
non-equity securities is approximately 4.2 years, or 2.8 years
excluding trust preferred securities. Held-to-maturity securities
total $391.1 million, and are comprised of $252.3 million in
obligations of US government-sponsored entities, $76.6 million of
mortgage-backed securities, $44.5 million of trust-preferred
securities, and $17.7 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 $21.7 million or 0.72% of total loans
at September 30, 2005, compared to $25.8 million or 0.88% of total
loans at June 30, 2005 and compared to $15.7 million or 0.51% of total
loans on December 31, 2004. Other real estate owned increased slightly
by $0.3 million from December 31, 2004 to $4.0 million as of September
30, 2005. This is up from $3.8 million at June 30, 2005.
Non-performing assets as a percentage of total assets decreased to
0.63% on September 30, 2005, from 0.72% on June 30, 2005, but were up
from 0.45% on December 31, 2004. These changes are primarily due to
changes in non-accrual loans. The provision for loan losses for the
quarter was $2.1 million compared to $0.5 million in third quarter
2004. On a year to date basis, the provision for loan losses in 2005
was $7.4 million compared to $4.8 million in 2004. The 2005 increase
is due primarily to $308.4 million in net loan growth this year,
specific reserves for individual credits, and 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 $34.2 million on September 30, 2005 compared to
$33.6 million on June 30, 2005, and is 1.13% of loans currently
compared to 1.14% of loans at June 30, 2005. The allowance was $32.1
million or 1.03% of loans on December 31, 2004.
Capital
The capital levels of Gold Banc continue to be in excess of the
well-capitalized levels established by regulatory agencies. At
September 30, 2005, the company's total capital ratio was 11.82%, its
tier one ratio was 10.04% and, its leverage ratio was 8.43%. 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 $7.11 and tangible book
value was $6.22 on September 30, 2005, compared to $6.73 and $5.84,
respectively, on December 31, 2004. Gold's equity to asset ratio at
the end of third quarter 2005 was 6.66%, increased from 6.24% at
December 31, 2004. This ratio has improved since last year due to the
completion of Gold's sale of five Oklahoma branches.
Share Repurchase
On October 19, 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. On August 24, 2005, we completed the authorized
repurchase of $32.0 million of outstanding common stock. The board of
directors authorized an initial repurchase in the amount of $12.0
million on October 21, 2004 and an additional amount of $20.0 million
on April 18, 2005. A total of 2,234,339 shares were repurchased
between January 27, 2005 and August 24, 2005 at a total cost of $32.0
million. The average price paid per share was $14.32. During the
quarter, 508,000 shares of stock were repurchased at a total cost of
$7.7 million (average cost per share of $15.14).
Dividend
The Gold Banc board of directors declared a regular quarterly
dividend of $0.05 per common share on October 19, 2005. The dividend
will be payable November 09, 2005 to shareholders of record as of
November 02, 2005. On April 18, 2005, the board increased the dividend
from $0.03 per common share. Gold Banc has 38,205,194 shares
outstanding as of September 30, 2005.
Organizational Improvement
In September, Gold Banc announced the consolidation of its
operation departments into one Services Center in the Overland Park
International Trade Center. This move increases efficiency by bringing
together over 200 associates who have been located in four different
facilities. Aslin commented, "This consolidation allows our support
services to work together more efficiently as we strive to achieve
maximum operating leverage and customer service. It also allows space
for more customer contact personnel in many of our banking locations."
Conference Call
A conference call has been scheduled for October 21, 2005 at 8:00
a.m. (CDT) to discuss earnings and results of operations for the third
quarter and strategic direction and goals. A transcript of the call
will be available at www.goldbanc.com on October 28, 2005.
To call in, please call:
303-262-2211
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 32 banking
locations. Gold Banc is traded on the NASDAQ under the symbol GLDB.
Cautionary Statements Regarding Forward-Looking Information
The 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; and
-- statements preceded by, followed by or that include the words
"believes," "expects," "may," "will," "should," "could,"
"anticipates," "estimates," "intends" or similar expressions.
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:
-- We may experience potential reductions in deposits or loan
demand;
-- Changes in interest margins on loans or deposits could
adversely affect our profitability;
-- Changes in allowance for loan losses or increased loan
defaults could adversely affect our earnings;
-- Changes in the interest rate environment could adversely
affect loan demand, the cost of deposits, or the default rate
on loans;
-- Competitive pressures from other financial services companies
could adversely affect our business;
-- General economic conditions or conditions in real estate
markets, either nationally or locally, could increase our
exposure to loan losses;
-- Legislative or regulatory changes may adversely affect the
business in which our company and its subsidiaries are
engaged;
-- Adapting to technological changes may be more difficult or
expensive than we anticipate;
-- Hedging activities may cause losses or be less effective than
anticipated; and
-- Changes in securities markets may impact the value of our
investments.
We have described under the caption "Factors That May Affect
Future Results of Operations, 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. We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. You are cautioned not to put
undue reliance on any forward-looking statement, which speaks only as
of the date it was made. We will not confirm earnings guidance, update
prior guidance or provide further guidance privately, but only via
press release, in accordance with Regulation FD, or in a report filed
under the Exchange Act.
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*T
GOLD BANC CORPORATION, INC.
Financial Results Summary as of September 30, 2005
(unaudited)
Three months ended Nine months ended
------------------- ---------------------
September September September September
30, 30, Percent 30, 30, Percent
2005 2004 change 2005 2004 change
---------------------------- ----------------------------
Per share
data
Diluted net
income per
share $ 0.13 -0.05 -364.8% $ 1.00 0.29 243.8%
Basic net
income per
share 0.13 -0.05 -368.4% 1.01 0.30 236.8%
Dividend
declared
per share 0.05 0.03 66.7% 0.15 0.09 66.7%
Book value
per share 7.11 6.59 7.9% 7.11 6.59 7.9%
Tangible
equity per
share 6.22 5.67 9.6% 6.22 5.67 9.6%
Shares
outstanding
(in
thousands):
Weighted
average
diluted(1) 37,737 39,318 -4.0% 38,503 39,111 -1.6%
End of
period 38,205 40,184 -4.9% 38,205 40,184 -4.9%
(1) Dilution
due to
restricted
stock and
stock options.
Income
statement
(in
thousands)
Net interest
income $ 29,538 $ 28,930 2.1% $ 91,112 $ 84,949 7.3%
Provision
for loan
losses 2,087 459 354.6% 7,373 4,770 54.6%
Service fees 3,057 3,582 -14.7% 9,473 12,031 -21.3%
Investment
trading
fees and
commissions 288 691 -58.4% 1,332 2,326 -42.7%
Net gains on
sale of
mortgage
loans 383 307 24.8% 970 1,113 -12.9%
Realized
gains
(losses) on
sale of
securities (6) (11,031) 99.9% (2,070) (10,894) 81.0%
Gain on sale
of branch
facilities - - 0.0% 34,420 20,574 67.3%
Gain on sale
of credit
card
portfolio - - 0.0% - 1,156 100.0%
Bank-owned
life
insurance 957 949 0.9% 2,834 2,907 -2.5%
Trust fees 1,199 1,125 6.5% 3,705 3,345 10.8%
Other 913 (86) 1162.0% 1,272 1,104 15.2%
--------- ----------------- ---------- ---------------
Total other
income 6,791 (4,463) 252.2% 51,936 33,662 54.3%
Salaries and
employee
benefits 10,752 12,427 -13.5% 36,627 39,019 -6.1%
Data
Processing 1,518 1,943 -21.9% 5,082 5,958 -14.7%
Net
Occupancy
expense 2,368 1,842 28.5% 5,870 5,337 10.0%
Depreciation
expense 1,958 1,759 11.3% 5,966 5,311 12.3%
Professional
Services 1,308 1,291 1.3% 4,189 5,081 -17.5%
Expenses for
the
settlement
of Qui Tam
litigation,
net - 2,500 -100.0% - 16,500 100.0%
Other 3,374 5,093 -33.7% 13,410 16,360 -18.0%
--------- ----------------- ---------- ---------------
Total other
expense 21,278 26,855 -20.8% 71,144 93,566 -24.0%
Pre-tax
earnings 12,964 (2,847) 555.4% 64,531 20,275 218.3%
Income taxes 7,968 (1,001) 896.0% 26,146 7,955 228.7%
Discontinued
operations - - 0.0% - (551) 100.0%
--------- ----------------- ---------- ---------------
Net earnings
(loss) $ 4,996 $ (1,846) 370.6% $ 38,385 $ 11,769 226.2%
========= ================= ========== ===============
Key ratios
Net interest
margin
(FTE) 3.10% 2.99% 3.8% 3.05% 3.11% -1.7%
Net interest
spread
(FTE) 2.65% 2.75% -3.7% 2.76% 2.89% -4.5%
Efficiency
ratio 58.57% 74.58% -21.5% 65.39% 64.94% 0.7%
Return on
average
assets
(annualized
for quarter) 0.49% -0.17% 380.4% 1.20% 0.37% 225.2%
Return on
average
equity
(annualized
for quarter) 7.10% -2.70% 362.7% 18.99% 5.88% 223.0%
Ratio of
equity to
assets 6.66% 6.19% 7.6% 6.66% 6.19% 7.6%
GOLD BANC CORPORATION, INC.
Financial Results Summary as of September 30, 2005
(unaudited)
As of As of
--------------------- ---------
September September December
30, 30, Percent 31, Percent
2005 2004 change 2004 change
----------------------------- ------------------
Assets (in thousands)
Cash and due from
banks $ 66,609 $ 75,837 -12.2% $ 65,011 2.5%
Federal funds sold and
interest-bearing
deposits 12,069 $ 90,893 -86.7% 43,286 -72.1%
Investment
securities:
Available-for-sale 373,976 $ 539,261 -30.7% 498,763 -25.0%
Held-to-maturity 391,116 $ 424,599 -7.9% 411,802 -5.0%
Trading 4,352 $ 2,329 86.9% 5,456 -20.2%
---------- ---------------- -----------------
Total investment
securities 769,444 $ 966,189 -20.4% 916,021 -16.0%
Loans 3,025,122 2,914,808 3.8% 2,716,700 11.4%
Allowance for loan
losses (34,222)$ (33,751) 1.4% (32,108) 6.6%
---------- ---------------- -----------------
Net loans 2,990,900 $2,881,057 3.8% 2,684,592 11.4%
Mortgage loans held-
for-sale, net 16,049 $ 6,045 165.5% 5,724 180.4%
Premises and
equipment, net 52,974 $ 58,640 -9.7% 51,613 2.6%
Goodwill 29,252 $ 30,484 -4.0% 30,484 -4.0%
Other intangible
assets, net 4,773 $ 5,524 -13.6% 5,336 -10.6%
Accrued interest and
other assets 48,956 $ 66,160 -26.0% 57,807 -15.3%
Cash surrender value
of bank-owned life
insurance 85,744 $ 82,139 4.4% 82,992 3.3%
Assets held for sale - $ - 0.0% 387,510 -100.0%
---------- ---------------- -----------------
Total assets $4,076,770 $4,262,968 -4.4% $4,330,376 -5.9%
========== ================ =================
Liabilities
(in thousands)
Liabilities:
Deposits $3,021,981 $3,073,433 -1.7% $2,786,774 8.4%
Securities sold
under agreements
to repurchase 128,359 154,348 -16.8% 112,205 14.4%
Federal funds
purchased and other
short-term borrowings 1,896 1,055 79.8% 2,463 -23.0%
Subordinated debt 116,599 116,134 0.4% 116,599 0.0%
Long-term borrowings 495,985 601,796 -17.6% 661,534 -25.0%
Accrued interest and
other liabilities 40,321 52,258 -22.8% 30,231 33.4%
Liabilities held for
sale - - 0.0% 350,186 -100.0%
---------- ---------------- -----------------
Total liabilities 3,805,141 3,999,024 -4.8% 4,059,992 -6.3%
Stockholders' equity:
Preferred stock - - 0.0% - 0.0%
Common stock 45,264 44,874 0.9% 45,011 0.6%
Additional paid-in
capital 133,470 129,567 3.0% 129,381 3.2%
Retained earnings 179,629 140,247 28.1% 146,360 22.7%
Accumulated other
comprehensive income
(loss), net (9,834) (5,917) 66.2% (6,007) 63.7%
Unearned compensation (10,611) (10,538) 0.7% (10,072) 5.4%
---------- ---------------- -----------------
337,918 298,233 13.3% 304,673 10.9%
Less treasury stock (66,289) (34,289) 93.3% (34,289) 93.3%
---------- ---------------- -----------------
Total equity 271,629 263,944 2.9% 270,384 0.5%
Total liabilities and
stockholders'
equity $4,076,770 $4,262,968 -4.4% $4,330,376 -5.9%
========== ================ =================
Capital Ratios
Leverage ratio 8.43% 7.70% 9.5% 7.75% 8.8%
Tier 1 risk-based
capital ratio 10.04% 9.62% 4.4% 9.32% 7.7%
Total risk-based
capital ratio 11.82% 11.54% 2.4% 11.08% 6.7%
GOLD BANC CORPORATION, INC.
Financial Results Summary as of September 30, 2005
(unaudited)
Three months ended
----------------------------
September 30, September 30, Percent
2005 2004 change
-------------- --------------------
Average Assets (in thousands)
Cash and due from banks $ 61,683 $ 65,301 -5.5%
Federal funds sold and interest-
bearing deposits 16,988 33,367 -49.1%
Investment securities:
Available-for-sale 378,594 607,583 -37.7%
Held-to-maturity 394,149 404,329 -2.5%
Trading 3,016 2,251 34.0%
------------ -------------------
Total investment securities 775,759 1,014,163 -23.5%
Loans 2,984,575 2,877,703 3.7%
Allowance for loan losses (34,075) (34,497) -1.2%
------------ -------------------
Net loans 2,950,500 2,843,206 3.8%
Mortgage loans held-for-sale, net 7,667 4,134 85.4%
Premises and equipment, net 53,581 56,143 -4.6%
Goodwill 29,252 30,484 -4.0%
Other intangible assets, net 4,897 5,647 -13.3%
Accrued interest and other assets 54,999 53,376 3.0%
Cash surrender value of bank-owned
life insurance 85,209 81,565 4.5%
------------ -------------------
Total assets $ 4,040,535 $ 4,187,387 -3.5%
============ ===================
Average Liabilities and
Shareholders' Equity (in
thousands)
Liabilities:
Deposits $ 2,893,557 $ 2,998,407 -3.5%
Securities sold under agreements
to repurchase 109,238 146,124 -25.2%
Federal funds purchased and other
short-term borrowings 4,927 (1,612) 405.7%
Subordinated debt 116,599 115,751 0.7%
Long-term borrowings 592,051 617,248 -4.1%
Accrued interest and other
liabilities 44,963 40,392 11.3%
------------ -------------------
Total liabilities 3,761,335 3,916,310 -4.0%
Stockholders' equity:
Preferred stock - - 0.0%
Common stock 45,258 44,868 0.9%
Additional paid-in capital 133,368 132,384 0.7%
Retained earnings 182,139 147,531 23.5%
Accumulated other comprehensive
income (loss), net (7,423) (8,490) -12.6%
Unearned compensation (11,639) (10,927) 6.5%
------------ -------------------
341,703 305,367 11.9%
Less treasury stock (62,503) (34,289) 82.3%
------------ -------------------
Total equity 279,200 271,078 3.0%
Total liabilities and stockholders'
equity $ 4,040,535 $ 4,187,387 -3.5%
============ ===================
Nine months ended
---------------------------
September 30, September 30, Percent
2005 2004 change
-----------------------------------
Average Assets (in thousands)
Cash and due from banks $ 66,467 $ 65,236 1.9%
Federal funds sold and interest-
bearing deposits 41,194 63,896 -35.5%
Investment securities:
Available-for-sale 444,889 757,791 -41.3%
Held-to-maturity 400,256 263,321 52.0%
Trading 3,623 3,519 3.0%
------------- -------------------
Total investment securities 848,769 1,024,631 -17.2%
Loans 3,099,762 2,891,631 7.2%
Allowance for loan losses (32,973) (34,461) -4.3%
------------- -------------------
Net loans 3,066,789 2,857,170 7.3%
Mortgage loans held-for-sale, net 6,582 4,422 48.8%
Premises and equipment, net 55,568 58,336 -4.7%
Goodwill 30,006 30,812 -2.6%
Other intangible assets, net 5,110 5,864 -12.9%
Accrued interest and other assets 55,061 51,939 6.0%
Cash surrender value of bank-owned
life insurance 84,281 80,896 4.2%
------------- -------------------
Total assets $ 4,259,826 $ 4,243,201 0.4%
============= ===================
Average Liabilities and
Shareholders' Equity (in
thousands)
Liabilities:
Deposits $ 3,091,499 $ 3,052,450 1.3%
Securities sold under agreements
to repurchase 120,376 134,230 -10.3%
Federal funds purchased and other
short-term borrowings 7,114 (427)1767.5%
Subordinated debt 116,599 122,106 -4.5%
Long-term borrowings 614,295 634,152 -3.1%
Accrued interest and other
liabilities 39,645 33,240 19.3%
------------- -------------------
Total liabilities 3,989,527 3,975,752 0.3%
Stockholders' equity:
Preferred stock - - 0.0%
Common stock 45,166 44,765 0.9%
Additional paid-in capital 131,629 127,126 3.5%
Retained earnings 163,556 146,720 11.5%
Accumulated other comprehensive
income (loss), net (8,209) (5,399) 52.0%
Unearned compensation (11,113) (11,472) -3.1%
------------- -------------------
321,029 301,738 6.4%
Less treasury stock (50,730) (34,289) 47.9%
------------- -------------------
Total equity 270,299 267,449 1.1%
Total liabilities and stockholders'
equity $ 4,259,826 $ 4,243,201 0.4%
============= ===================
GOLD BANC CORPORATION, INC.
Financial Results Summary as of September 30, 2005
(unaudited)
Three months ended Nine months ended
------------------- -------------------
September September September September
30, 30, Percent 30, 30, Percent
2005 2004 change 2005 2004 change
--------- --------- ------- --------- --------- -------
Credit Quality
Net charge-
offs (in
thousands) $ 1,402 $ 781 79.5% $ 2,957 $ 3,117 -5.1%
Net charge-
offs/Average
loans
(annualized
for quarter) 0.19% 0.11% 72.9% 0.13% 0.14% -8.6%
Allowance for
loan losses
(in
thousands) $(34,222) $(33,751) 1.4% $(34,222) $(33,751) 1.4%
Allowance for
loan
losses/Total
loans 1.13% 1.16% -2.5% 1.13% 1.16% -2.5%
Non-performing
loans (in
thousands) $ 21,696 $ 21,957 -1.2% $ 21,696 $ 21,957 -1.2%
Non-performing
loans/Total
loans 0.72% 0.75% -3.9% 0.72% 0.75% -3.9%
Allowance for
loan
losses/Non-
performing
loans 157.74% 153.71% 2.6% 157.74% 153.71% 2.6%
Other real
estate owned 4,015 11,448 -64.9% 4,015 11,448 -64.9%
Margin
Analysis
(fully tax
equivalent)
Assets
Loans, gross 6.79% 5.68% 19.5% 6.49% 5.56% 16.8%
Investment
securities-
taxable 3.48% 3.89% -10.8% 3.70% 3.67% 0.6%
Investment
securities-
nontaxable 3.72% 3.44% 7.9% 3.58% 9.84% -63.6%
Other earning
assets 9.33% 2.73% 242.3% 3.47% 10.16% -65.8%
-------- -------- ------ -------- -------- -------
Total earnings
assets 6.13% 5.17% 18.6% 5.86% 5.28% 11.0%
Liabilities
and
Stockholders'
Equity
Savings
deposits and
interest-
bearing
checking 2.33% 1.06% 120.1% 2.02% 0.98% 106.0%
Time deposits 3.39% 2.64% 28.7% 3.13% 2.62% 19.8%
Short-term
borrowings 1.78% 1.10% 61.9% 1.51% 1.10% 37.9%
Long-term
borrowings 5.84% 3.68% 58.5% 4.74% 3.66% 29.6%
-------- -------- ------ -------- -------- -------
Total
interest-
bearing
liabilities 3.48% 2.42% 43.9% 3.10% 2.39% 29.6%
Net interest
spread 2.65% 2.75% -3.7% 2.76% 2.89% -4.5%
======== ======== ====== ======== ======== =======
Net interest
margin 3.10% 2.99% 3.8% 3.05% 3.11% -1.7%
======== ======== ====== ======== ======== =======
*T