Texas United Bancshares (NASDAQ:TXUI)
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Texas United Bancshares, Inc. Announces Second Quarter Earnings
LA GRANGE, Texas, July 19 /PRNewswire-FirstCall/ -- Texas United Bancshares,
Inc. (NASDAQ:TXUI) today reported second quarter 2004 net income of $1.5
million or $0.36 per diluted share, compared with net income of $1.4 million or
$0.34 per diluted share for the second quarter of 2003. For the three months
ended June 30, 2004, the annualized return on average assets was 0.83% and
annualized return on average equity was 15.75%. For the first six months of
2004, net income was $3.1 million or $0.73 per diluted share, up from $2.5
million or $0.61 per diluted share in the first six months of 2003. The
annualized return on average assets was 0.90% and annualized return on average
equity was 15.73% for the six months ended June 30, 2004.
Other financial results for the second quarter 2004 included net interest
income before the provision for loan losses of $7.1 million, up 8.9% compared
with the second quarter of 2003. For the first six months of 2004, net
interest income before the provision for loan losses was $13.8 million, up 7.6%
compared with the first six months of 2003. The net interest margin for the
second quarter of 2004 was 4.46% compared with 5.16% for the same period in
2003. Average total loans, including loans held for sale, for the second
quarter of 2004 were up $56.9 million, a 15.5% increase from the second quarter
last year. Average deposits for the second quarter of 2004 were up $85.3
million, a 17.9% increase from the same period of 2003.
Non-interest income was $4.7 million in the second quarter of 2004 compared
with $3.4 million for the same period in 2003. For the first six months of
2004, non-interest income was $8.6 million, compared with $7.0 million for the
same period in 2003. The increase for the three and six months ended June 30,
2004 is mainly attributed to gains on the sale of mortgage loans generated from
Community Home Loan, Inc.
Non-interest expense for the second quarter of 2004 was $9.2 million compared
with $7.4 million for the same period in 2003. For the first six months of
2004, non-interest expense was $17.3 million compared with $14.9 million for
the same period in 2003. The increase for the three and six months ended June
30, 2004 is mainly attributed to employee compensation and benefits and other
expenses related to Community Home Loan, Inc. The provision for loan losses
was $300,000 in the second quarter 2004 compared with $500,000 for the same
quarter in 2003.
Non-performing assets totaled $2.6 million or 0.61% of loans and other real
estate at June 30, 2004 compared with $2.3 million or 0.59% at December 31,
2003. For the first six months of 2004, net charge-offs were $221,000 or 0.05%
of average total loans compared with $2.3 million or 0.61% for the year ended
December 31, 2003. The allowance for loan losses totaled $4.1 million at June
30, 2004 compared with $3.9 million at December 31, 2003.
As of June 30, 2004, Texas United Bancshares, Inc. had total assets of $751.6
million and total deposits of $567.4 million. Shareholders' equity of $37.6
million represented 5.0% of total assets.
Texas United Bancshares, Inc. is a registered financial holding company listed
on the Nasdaq National Market under the symbol "TXUI". Its wholly owned
subsidiary, State Bank, offers a complete range of banking services through 18
full service banking centers and four loan production offices located in the
greater central and south central Texas area. In addition, State Bank has nine
mortgage loan production offices located in Houston, San Antonio and Kerrville
through its wholly owned subsidiary, Community Home Loan, Inc.
In connection with the proposed merger of GNB Bancshares, Inc. ("GNB") into
Texas United, Texas United will file with the Securities and Exchange
Commission a registration statement on Form S-4 to register the shares of Texas
United's common stock to be issued to the shareholders of GNB. The
registration statement will include a joint proxy statement/prospectus which
will be sent to the shareholders of GNB and the shareholders of Texas United
seeking their approval of the proposed transaction.
TEXAS UNITED URGES INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN
THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE
PROPOSED TRANSACTION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT TEXAS
UNITED, GNB AND THE PROPOSED TRANSACTION. Investors and security holders may
obtain free copies of these documents through the website maintained by the
Securities and Exchange Commission at http://www.sec.gov/ . Free copies of the
joint proxy statement/prospectus may also be obtained by directing a request by
telephone or mail to Texas United Bancshares, Inc., 202 West Colorado St., La
Grange, Texas 78945, Attn: Investor Relations. Texas United's telephone number
is (979) 968-8451.
The directors, executive officers, and certain other members of management of
Texas United and GNB may be soliciting proxies in favor of the merger from the
companies' respective shareholders. For information about Texas United's
directors, executive officers, and members of management, shareholders are
asked to refer to the most recent proxy statement issued by Texas United, which
is available on its web site and at the address provided in the preceding
paragraph.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
This release, other written materials, and statements management may make, may
contain certain forward-looking statements regarding Texas United's prospective
performance and strategies within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Texas United intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995, and is including this
statement for purposes of said safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies, and expectations of Texas United, are generally
identified by use of the words "plan," "believe," "expect," "intend,"
"anticipate," "estimate," "project," or other similar expressions. Texas
United's ability to predict results or the actual effects of its plans and
strategies is inherently uncertain. Accordingly, actual results may differ
materially from anticipated results.
The following factors, among others, could cause actual results to differ
materially from the expectations stated in any forward-looking statement: the
ability of Texas United and GNB to obtain the required shareholder or
regulatory approvals for the merger of GNB into Texas United or to consummate
the merger; the ability of Texas United to obtain the required regulatory
approvals for the purchase of the branches from Central Bank; the ability to
successfully integrate GNB and the Caldwell and Lexington branches with Texas
United following the merger and the branch purchase; a materially adverse
change in the financial condition of either Texas United or GNB; a change in
general business and economic conditions; changes in the interest rate
environment, deposit flows, loan demand, real estate values, and competition;
changes in accounting principles, policies or guidelines; changes in
legislation and regulation; and other economic, competitive, governmental,
regulatory, geopolitical, and technological factors affecting Texas United's
operations, pricing, products and services. The forward-looking statements are
made as of the date of this release and, except as may be required by
applicable law or regulation, Texas United undertakes no obligation to update
these forward-looking statements to reflect events or circumstances that occur
after the date on which such statements were made. All written or oral
forward-looking statements are expressly qualified in their entirety by these
cautionary statements. You should also read the additional risks and factors
described from time to time in Texas United's reports and registration
statements filed with the Securities and Exchange Commission.
Copies of our Texas United's filings are also available on our website
http://www.statebanktx.com/ under the caption of investor relations.
Texas United Bancshares, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
2004 2003
2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
CONDENSED INCOME
STATEMENTS
Net interest income $7,148 $6,664 $6,621 $6,770 $6,561
Provision for loan losses 300 150 800 800 500
Non-interest income
Service charges on deposits
accounts 2,228 1,597 1,737 1,718 1,689
Mortgage servicing revenue 290 208 76 400 132
Net gain on securities
transactions 71 77 3 376 684
Other 2,078 2,022 1,871 654 884
Total non-interest income $4,667 $3,904 $3,687 $3,148 $3,389
Non-interest expense
Employee compensation
and benefits 5,722 4,274 4,375 4,509 4,349
Occupancy 1,117 1,088 1,142 1,214 1,144
Other 2,357 2,788 2,636 1,199 1,934
Total non-interest expense $9,196 $8,150 $8,153 $6,922 $7,427
Income before provision
for taxes 2,319 2,268 1,355 2,196 2,023
Income taxes 824 703 166 667 631
Net income $1,495 $1,565 $1,189 $1,529 $1,392
PER SHARE DATA
Earnings per share - basic $0.37 $0.39 $0.30 $0.38 $0.35
Earnings per share - diluted 0.36 0.37 0.29 0.37 0.34
Cash dividends 0.07 0.07 0.07 0.07 0.07
Book value per share 9.34 10.17 9.49 9.11 9.68
Period-end common shares
outstanding 4,025 4,017 4,002 3,995 3,995
Weighted average shares
- basic 4,020 4,010 4,000 3,995 3,978
Weighted average shares
- diluted 4,200 4,193 4,154 4,163 4,139
SELECTED ANNUALIZED RATIOS
Return on average assets 0.83% 0.96% 0.75% 0.97% 0.93%
Return on average equity 15.75 15.33 12.86 16.70 14.38
Net interest margin 4.46 4.63 4.75 4.91 5.16
Texas United Bancshares, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(Dollars in thousands)
2004 2003
2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
BALANCE SHEET SUMMARY
Average Balance:
Loans (including
loans held for
sale) $424,805 $391,820 $376,623 $384,748 $367,909
Earning assets 645,214 578,730 568,074 568,068 527,609
Total assets 716,168 650,610 632,285 631,398 601,609
Total deposits 561,454 517,797 505,431 501,208 476,178
Shareholders' equity 37,960 40,845 36,970 36,621 38,728
Period-End Balance:
Loans (including
loans held for
sale) $435,128 $406,840 $384,331 $373,438 $369,514
Earning assets 676,414 589,071 568,878 560,158 543,863
Goodwill and
intangible assets 14,704 14,365 13,941 14,259 12,896
Total assets 751,631 658,720 637,684 630,142 614,374
Total deposits 567,440 536,749 501,136 503,706 495,614
Shareholders' equity 37,570 40,845 37,987 36,396 38,647
ASSET QUALITY
Allowance for loan
losses: $4,122 $4,093 $3,893 $3,896 $3,584
As a percentage of
period-end loans 0.95% 1.01% 1.01% 1.04% 0.97%
Net charge-offs
(recoveries): $271 $(50) $803 $488 $509
As a percentage
average loans
(annualized) 0.26% (0.01)% 0.85% 0.51% 0.55%
Non-performing assets:
Past due and
non-accrual $976 $2,073 $1,988 $1,373 $1,445
Other real estate 1,672 333 273 449 369
Total $2,648 $2,406 $2,261 $1,822 $1,814
As a percentage of:
Total assets 0.35% 0.37% 0.35% 0.29% 0.30%
Total loans plus
other real estate 0.61 0.59 0.59 0.49 0.49
CONSOLIDATED CAPITAL RATIOS
Tier 1 risk-based
capital ratio 8.88% 9.61% 9.54% 8.09% 8.35%
Total risk-based
capital ratio 9.74 10.56 10.47 9.01 9.26
Leverage ratio 6.04 6.46 6.46 5.47 5.56
Texas United Bancshares, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except per share amounts)
Six Months Ended
June 30
2004 2003
CONDENSED INCOME STATEMENTS
Net interest income $13,812 $12,832
Provision for loan losses 450 1,300
Non-interest income
Service charges on deposit accounts 3,825 3,298
Mortgage servicing revenue 498 1,151
Net gain on securities transactions 148 915
Other 4,100 1,605
Total non-interest income 8,571 6,969
Non-interest expense
Employee compensation and benefits 9,996 7,805
Occupancy 2,205 2,265
Other 5,145 4,847
Total non-interest expense 17,346 14,917
Income before provision for income taxes 4,587 3,584
Income taxes 1,527 1,061
Net income $3,060 $2,523
PER SHARE DATA
Earnings per share - basic $0.76 $0.64
Earnings per share - diluted 0.73 0.61
Cash dividends 0.14 0.14
Book value per share 9.34 9.68
OUTSTANDING SHARES (shares in thousands)
Period-end common shares outstanding 4,025 3,995
Weighted average shares outstanding - basic 4,015 3,971
Weighted average shares outstanding - diluted 4,197 4,130
SELECTED ANNUALIZED RATIOS
Return on average assets 0.90% 0.85%
Return on average equity 15.73 13.48
Net interest margin 4.57 5.17
Texas United Bancshares, Inc.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(Dollars in thousands)
Six Months Ended
June 30
2004 2003
BALANCE SHEET SUMMARY
Average Balance:
Total loans (including loans held for sale) $408,329 $373,139
Earning assets 607,582 518,290
Total assets 682,258 591,448
Total deposits 540,407 463,798
Shareholders' equity 38,897 37,428
Period-End Balance:
Total loans (including loans held for sale) $435,128 $369,514
Earning assets 676,414 543,863
Goodwill and intangible assets 14,704 12,896
Total assets 751,631 614,374
Total deposits 567,440 495,614
Shareholders' equity 37,570 38,647
ASSET QUALITY
Allowance for loan losses $4,122 $3,584
As a percentage of period-end loans 0.95% 0.97%
Net charge-offs: $221 $1,012
As a percentage of average loans 0.05% 0.27%
Non-performing assets:
Past due and non-accrual loans $976 $1,445
Other real estate 1,672 369
Total $2,648 $1,814
As a percentage of:
Total assets 0.35% 0.30%
Total loans plus other real estate 0.61 0.49
DATASOURCE: Texas United Bancshares, Inc.
CONTACT: Tom Adams of Texas United Bancshares, Inc., +1-979-968-7261
Web site: http://www.sec.gov/
Web site: http://www.statebanktx.com/