Summit Bancshares (NASDAQ:SBIT)
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Summit Bancshares Reports First Quarter 2005 Earnings
FORT WORTH, Texas, April 13 /PRNewswire-FirstCall/ -- Summit Bancshares, Inc.
(NASDAQ:SBIT), the bank holding company for Summit Bank, N.A., today reported
net income for the first quarter of 2005 of $3,013,000, or $0.24 per diluted
common share, compared to $2,451,000, or $.19 per diluted common share, for the
comparable 2004 period, a 26.3% increase in per share earnings. Return on
average assets and return on average shareholders' equity were 1.23% and
16.16%, respectively, for the quarter ended March 31, 2005 compared to 1.22%
and 14.06%, respectively, for the same quarter in 2004. The per share earnings
and all historical per share data have been restated to reflect a two-for-one
stock split that was effective December 31, 2004. Also Summit completed its
acquisition of ANB Financial Corporation and its subsidiary, Arlington National
Bank ("ANB"), effective May 1, 2004. The results of operations for ANB have
been included in Summit's consolidated financial statements since the purchase
date.
Philip E. Norwood, Chairman, President and Chief Executive Officer stated, "We
are pleased to report positive financial performance of the Company for the
first quarter of 2005. Compared to the first quarter of the prior year average
loans and average deposits increased 23.2% and 23.9% respectively. Net interest
income increased 23.5% reflecting an increase of eleven basis points in net
interest margin and a 21.5% increase in average earning assets compared to the
first quarter of 2004. The increase in net interest margin reflects the
increase in market interest rates."
He further stated, "As recently announced we are excited to have Kim Dignum and
her staff of Dignum Financial Services join the Company as a department of the
Bank. Kim brings many years of providing personal financial planning and other
investment services to her customers. Currently DFS has $85 million of assets
under management. Her talents will add an important service to the Bank's
customers."
Mr. Norwood also noted, "The Company celebrated its 30 year anniversary in
January of 2005. In that 30 year period the Company has grown to approximately
one billion dollars in assets with shareholders' equity of $74.4 million and a
market capitalization of approximately $210 million. These are significant
milestones for the Company."
Net interest income of $10.2 million for the first quarter of 2005 improved
$2.0 million, or 23.5% over the first quarter of 2004. Since the Company is
somewhat more sensitive to market interest rate changes than other community
banks due to its heavier commercial lending focus, the net interest margin
increased to 4.47% for the first quarter of 2005 compared to 4.36% for the
first quarter of the prior year partially reflecting the recent increases to
the market interest rate environment.
A provision for loan losses was $225,000 for the first quarter of 2005 while
the provision for loan losses was $605,000 for the same quarter of 2004. For
the first quarter of 2005 the Company experienced net loan loss recoveries of
previously charged off loans of $107,000, which represented net recoveries to
average loans for the quarter of 0.02%. As of March 31, 2005, the allowance
for loan losses as a percentage of total loans was 1.47% and also represented
over three times the balance of nonperforming loans as of the end of the first
quarter of 2005. As of March 31, 2005, nonperforming loans were $3.3 million,
or 0.46% of total outstanding loans.
Non interest income for the first quarter of 2005 was $1,880,000, a $313,000
increase over the first quarter of 2004. The increase reflected improvements
in service charges on deposit accounts of $76,000, an increase in other fees of
$271,000 and a decrease in extraordinary income related to the sale of assets
with the first quarter of last year having a $168,000 gain while the first
quarter of this year had a gain of $134,000. These increases in non interest
income also reflect the impact of the ANB acquisition.
Non interest expenses of $7,252,000 for the first quarter of 2005 increased
$1,722,000 compared to the first quarter of last year. Primarily the increase
is due to the inclusion of ANB in the 2005 first quarter results as well as
expenses in 2005 related to compliance with the Sarbanes Oxley Act's Section
404 which required additional expenditures for auditing and consulting fees in
the amount of approximately $125,000.
Summit files annual, quarterly and special reports, proxy statements and other
information with the SEC. Investors may read and copy any of these reports,
statements and other information at the SEC's public reference room located at
450 Fifth Street, N.W., Washington, D.C. 20549. Investors should call the SEC
at 1-800-SEC-0330 for further information on the public reference room. The
reports, statements, and other information filed by Summit with the SEC are
also available free at the SEC's web site at http://www.sec.gov/ . You can
also obtain a free copy of these reports, statements and other information from
Summit's web site at http://www.summitbank.net/ .
The Company will host a conference call Thursday, April 14, 2005 at 10:00 a.m.
(CT) to discuss the Company's performance for the quarter ended March 31, 2005.
To participate, please call (800)406-5345 and enter confirmation code 4367304.
If you are unable to participate, an audio playback of the call will be
available starting Thursday, April 14, 2005 at 2:30 p.m. (CT) through midnight
April 28, 2005 (CT) by calling (888)203-1112 and entering 4367304.
The 2005 Annual Meeting of Shareholders will be held on April 19, 2005 at 3:30
p.m. (CT) at Summit Bancshares, Inc. Corporate Headquarters, 3880 Hulen Street,
Suite 300, Fort Worth, Texas.
Certain statements contained in this press release that are not historical in
nature, including statements regarding the Company's and/or management's
intentions, strategies, beliefs, expectations, representations, plans,
projections, or predictions of the future, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995 and
are intended to be covered by the safe harbor provisions for forward-looking
statements contain in such Act. We are including this statement for purposes
of invoking these safe harbor provisions. Forward-looking statements are based
on assumptions involving certain known and unknown risks and uncertainties,
many of which are beyond the Company's control, and the other important factors
that could cause actual results, performance or achievements to differ
materially from the expectations expressed or implied by such forward-looking
statements. These risks and uncertainties are listed from time to time in the
Company's filings with the Securities and Exchange Commission, including but
not limited to, those set forth under the heading "Factors That May Affect
Future Results" in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004.
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
March 31, %
EARNINGS SUMMARY 2005 2004 Change
Interest income $13,373 $10,198 31.1%
Interest expense 3,140 1,915 64.0%
Net interest income 10,233 8,283 23.5%
Provision for loan losses 225 605 -62.8%
Service charges on deposits 982 906 8.4%
Gain on sale of investment securities --- --- 0.0%
Other income 898 661 35.9%
Salaries and benefits expense 4,269 3,368 26.8%
Occupancy and equipment expense 1,202 933 28.8%
Other expense 1,781 1,229 44.9%
Earnings before income taxes 4,636 3,715 24.8%
Provision for income taxes 1,623 1,264 28.4%
Net earnings $3,013 $2,451 22.9%
Basic earnings per share $0.24 $0.20 20.0%
Basic weighted average shares
outstanding 12,377 12,304
Diluted earnings per share $0.24 $0.19 26.3%
Diluted weighted average shares
outstanding 12,718 12,692
Average for Quarter Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
BALANCE SHEET SUMMARY 2005 2004 2004 2004 2004
Total loans $706,902 $694,177 $678,915 $642,935 $573,862
Total investment
securities 220,161 226,530 218,831 196,972 187,988
Earning assets 932,258 924,557 914,595 871,084 767,274
Total assets 993,154 984,814 976,911 925,830 808,009
Noninterest bearing
deposits 225,519 235,846 226,462 207,815 179,396
Interest bearing
deposits 559,853 560,341 557,329 521,812 454,352
Total deposits 785,372 796,187 783,791 729,628 633,748
Other borrowings 128,174 109,713 118,083 121,193 101,349
Shareholders' equity 75,602 74,543 71,038 70,583 70,116
Average for Three Months
Ended March 31, %
BALANCE SHEET SUMMARY 2005 2004 Change
Total loans $706,902 $573,862 23.2%
Total investment securities 220,161 187,988 17.1%
Earning assets 932,258 767,274 21.5%
Total assets 993,154 808,009 22.9%
Noninterest bearing deposits 225,519 179,396 25.7%
Interest bearing deposits 559,853 454,352 23.2%
Total deposits 785,372 633,748 23.9%
Other borrowings 128,174 101,349 26.5%
Shareholders' equity 75,602 70,116 7.8%
Ending Balance
March 31, Dec. 31, Sept. 30, June 30, March 31,
BALANCE SHEET SUMMARY 2005 2004 2004 2004 2004
Total loans $716,714 $702,619 $689,906 $672,686 $593,271
Total investment
securities 214,222 223,351 219,264 214,991 181,879
Total earning assets 939,934 930,990 928,638 905,228 818,393
Allowance for loan
losses (10,519) (10,187) (10,079) (9,844) (8,320)
Premises and equipment 15,462 15,749 15,643 15,145 12,755
Total assets 999,914 989,117 990,406 969,708 860,361
Noninterest bearing
deposits 232,556 235,399 232,586 218,343 186,198
Interest bearing
deposits 565,002 556,865 558,938 557,347 470,186
Total deposits 797,558 792,264 791,524 775,690 656,384
Other borrowings 124,007 118,094 121,355 121,785 129,691
Total liabilities 925,477 914,627 916,858 901,009 788,786
Shareholders' equity 74,437 74,490 73,548 68,699 71,575
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
March 31, Dec. 31, Sept. 30, June 30, March 31,
NONPERFORMING ASSETS 2005 2004 2004 2004 2004
Nonaccrual loans $3,294 $2,587 $2,545 $2,832 $2,405
Restructured loans --- --- --- --- ---
Other real estate &
foreclosed assets --- --- 4 369 7
Accruing loans past due
90 days or more --- 18 2,300 111 ---
Total nonperforming
assets $3,294 $2,605 $4,849 $3,312 $2,412
Total nonperforming assets
as a percentage of loans
and foreclosed assets 0.46% 0.37% 0.70% 0.49% 0.41%
Quarter Ended
ALLOWANCE FOR March 31, Dec. 31, Sept. 30, June 30, March 31,
LOAN LOSSES 2005 2004 2004 2004 2004
Balance at beginning
of period $10,187 $10,079 $9,844 $8,320 $7,784
Balance acquired in
Arlington National
Bank Acquisition $--- --- --- 1,254 ---
Loans charged off (84) (293) (415) (196) (137)
Loan recoveries 191 111 155 66 68
Net (charge-offs)
recoveries 107 (182) (260) (130) (69)
Provision for loan losses 225 290 495 400 605
Balance at end of period $10,519 $10,187 $10,079 $9,844 $8,320
Allowance for loan losses
as a percentage of total
loans 1.47% 1.45% 1.46% 1.46% 1.40%
Allowance for loan losses
as a percentage of
nonperforming loans 319.34% 393.82% 396.03% 347.60% 345.95%
Net charge-offs
(recoveries) as a
percentage of average
loans -0.02% 0.03% 0.04% 0.02% 0.01%
Provision for loan losses
as a percentage of
average loans 0.03% 0.04% 0.07% 0.06% 0.11%
Quarter Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
SELECTED RATIOS 2005 2004 2004 2004 2004
Return on average
assets (annualized) 1.23% 1.18% 1.14% 1.13% 1.22%
Return on average equity
(annualized) 16.16% 15.58% 15.66% 14.79% 14.06%
Average shareholders'
equity to average assets 7.63% 7.57% 7.27% 7.62% 8.68%
Yield on earning assets 5.83% 5.61% 5.39% 5.23% 5.36%
Cost of interest
bearing funds 1.85% 1.65% 1.49% 1.42% 1.39%
Net interest margin
(tax equivalent) 4.47% 4.41% 4.29% 4.18% 4.36%
Efficiency ratio 59.69% 59.71% 59.23% 58.90% 55.94%
End of period book
value per common share $6.01 $6.03 $5.96 $5.57 $5.82
End of period common
shares outstanding 12,390 12,359 12,334 12,372 12,308
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
Three Months Ended
March 31, 2005 March 31, 2004
Average Average
YIELD ANALYSIS Balance Interest Yield Balance Interest Yield
Interest Earning Assets:
Federal funds sold,
Repurchases, & Due
from time $5,195 $31 2.40% $5,424 $13 0.96%
Investment securities
(taxable) 212,152 1,926 3.63% 181,189 1,718 3.79%
Investment securities
(tax-exempt) 8,009 106 5.30% 6,799 89 5.24%
Loans 706,902 11,346 6.51% 573,862 8,414 5.90%
Total Interest
Earning Assets 932,258 13,409 5.83% 767,274 10,234 5.36%
Noninterest Earning Assets:
Cash and due from banks 30,059 25,136
Other assets 41,164 23,579
Allowance for loan
losses (10,327) (7,980)
Total Noninterest
Earning Assets 60,896 40,735
Total Assets $993,154 $808,009
Interest Bearing
Liabilities:
Transaction and money
market accounts $235,691 717 1.23% $196,922 518 1.06%
Savings deposits 168,346 636 1.53% 131,280 385 1.18%
Certificates and other
time deposits 155,816 979 2.55% 126,150 738 2.35%
Other borrowings 128,174 808 2.56% 101,349 274 1.09%
Total Interest
Bearing Liabilities 688,027 3,140 1.85% 555,701 1,915 1.39%
Noninterest Bearing
Liabilities:
Demand deposits 225,519 179,396
Other liabilities 4,006 2,796
Shareholders' Equity 75,602 70,116
Total Liabilities
and Shareholders'
Equity $993,154 $808,009
Net Interest Income
and Margin
(tax equivalent) $10,269 4.47% $8,319 4.36%
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
March 31, March 31,
2005 % 2004 %
LOAN PORTFOLIO
Commercial and industrial $266,782 37.3% $232,015 39.1%
Real estate:
Commercial 228,701 31.9% 169,376 28.5%
Residential 85,293 11.9% 73,481 12.4%
Construction and development 94,940 13.2% 86,315 14.6%
Consumer 40,998 5.7% 32,084 5.4%
Total loans (gross) 716,714 100.0% 593,271 100.0%
Unearned discounts --- 0.0% --- 0.0%
Total loans (net) 716,714 100.0% 593,271 100.0%
March 31, March 31,
REGULATORY CAPITAL DATA 2005 2004
Tier 1 Capital $77,496 $69,626
Tier 1 Ratio 10.25% 11.01%
Total Capital (Tier 1 + Tier 2) $86,946 $77,539
Total Capital Ratio 11.50% 12.26%
Total Risk-Adjusted Assets $755,992 632,617
Tier 1 Leverage Ratio 7.83% 8.62%
March 31, March 31,
OTHER DATA 2005 2004
Full Time Equivalent
Employees (FTE's) 261 219
Stock Price Range
(For the Quarter Ended):
High $20.50 $16.07
Low $16.40 $13.83
Close $17.05 $15.05
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DATASOURCE: Summit Bancshares, Inc.
CONTACT: Bob G. Scott, COO of Summit Bancshares, Inc., +1-817-877-2660
Web site: http://www.summitbank.net/