NATCHEZ, Miss., July 23 /PRNewswire-FirstCall/ -- The Board of
Directors of Britton & Koontz Capital Corporation
(Nasdaq: BKBK, "B&K Capital" or "the Company") today
reported net income and earnings per share for the three and six
month period ended June 30, 2010.
Net income for the three months ended June 30, 2010, was $504
thousand, or $.24 per diluted
share, compared to $758 thousand, or
$.36 per diluted share, for the
quarter ended June 30, 2009.
The decrease is primarily related to lower earnings from the
reduction in size of the Bank's investment portfolio in the first
half of 2010. For the six month period ended June 30, 2010, net income and diluted earnings
per share was $567 thousand and
$0.27, respectively, compared to
$1.4 million and $0.64, respectively, for the same period in 2009.
The decrease for the six month period is due primarily to
lower net interest income for the same reason as described above
along with additional loan loss provision expense in the first
quarter of 2010 of $800 thousand.
Partially offsetting the decrease in earnings over the first
six months of 2010 were gains on sale of other real estate and
securities in the first quarter of 2010.
Net interest income for the three and six month periods ended
June 30, 2010, decreased $371 thousand and $644
thousand, respectively, over the same period in 2009.
Average earning assets during the quarterly and year to date
periods fell primarily due to a decrease in average investment
securities while average loan balances remained relatively stable.
The interest rate environment over the first six months of
2010 made profitable reinvestment of cash flows back into the
market difficult, contributing to the decrease in net interest
income during both comparative periods. Lower interest rates
also contributed to the decline of interest rate spread and margin
during both periods. Interest rate spread declined 15 and 5
basis points to 3.24% and 3.29% for the three and six month period
ended June 30, 2010, respectively.
Interest rate margin declined 15 and 6 basis points to 3.63%
and 3.68% for the three and six months ended June 30, 2010, respectively.
Non-interest income was relatively stable for the 2nd quarter of
2010 compared to the 2nd quarter of 2009, increasing $11 thousand, while non-interest income increased
$450 thousand for the first six
months of 2010 compared to the corresponding period in 2009.
The six month increase is due primarily to gains from sales
of investment securities in the first quarter of 2010 and increases
in mortgage related income, offset by lower service charges on
deposit accounts. Non-interest expense remained relatively
stable for the 2nd quarter of 2010 compared to the 2nd quarter of
2009, increasing only $55 thousand.
Non-interest expense increased $625
thousand for the six months ended June 30, 2010 as compared to the corresponding
period in 2009, primarily due to a $368
thousand charge to expense related to the provision of loan
and late fees receivable and higher occupancy, equipment and salary
and benefits costs. These additional costs were offset by
lower FDIC assessment charges due to a special assessment of
$183 thousand made in the 1st half of
2009 and lower other real estate and collection costs.
Non-performing assets, which includes non-accrual loans, loans
delinquent 90 days or more and other real estate, decreased to
$9.7 million, or 2.53% of total
assets, at June 30, 2010, from
$10.5 million, or 2.68% of total
assets at December 31, 2009.
Net charge-offs for the 2nd quarter of 2010 were $807 thousand compared to $383 thousand during the same period in 2009.
Net charge-offs increased to $2.6
million for the six month period ended June 30, 2010, compared to $515 thousand for the six month period in 2009.
The Company's loan loss provision in the 2nd quarter of 2010
was $200 thousand, compared to
$250 thousand for the corresponding
period in 2009. For the six months ended June 30, 2010, the Company's loan loss provision
was $1.3 million compared to
$950 thousand during the same period
in 2009. The allowance for loan losses of $2.5 million, or 1.17% of loans, at June 30, 2010, compares to $3.9 million, or 1.73% of loans, at December 31, 2009. The Company believes the
allowance for loan loss account is adequate as of June 30, 2010.
W. Page Ogden, President
& CEO, commented, "The bank is positioned favorably to
benefit from stabilization and improvement in the economies of its
local markets. Moreover, we believe that our proactive
response to credit issues in recent quarters is being reflected in
improved credit quality throughout the loan portfolio and a
moderation of non-performing assets." The Company's
Regulatory Tier 1 Capital of $42
million, or approximately 16.2% of risk weighted assets,
substantially exceeds the approximate $10.3
million, or 4%, minimum regulatory capital requirements.
Britton & Koontz Capital Corporation, headquartered in
Natchez, Mississippi, is the
parent company of Britton & Koontz
Bank, N.A. which operates three full service offices in
Natchez, two in Vicksburg, Mississippi, three in Baton Rouge, Louisiana and a loan production
office in Central, Louisiana.
As of June 30, 2010, the
Company reported assets of $380.8
million and equity of $40.4
million. The Company's stock is traded on NASDAQ under
the symbol BKBK and the transfer agent is American Stock Transfer
& Trust Company. Total shares outstanding at June 30, 2010, were 2,135,466.
Forward Looking Statements
This news release contains statements regarding the projected
performance of Britton & Koontz Capital Corporation and its
subsidiaries. These statements constitute forward-looking
information within the meaning of the Private Securities Litigation
Reform Act. Actual results may differ materially from the
projections provided in this release since such projections involve
significant known and unknown risks and uncertainties.
Factors that might cause such differences include, but are
not limited to: competitive pressures among financial institutions
increasing significantly; economic conditions, either nationally or
locally, in areas in which the Company conducts operations being
less favorable than expected; and legislation or regulatory changes
which adversely affect the ability of the combined Company to
conduct business combinations or new operations. The Company
disclaims any obligation to update such factors or to publicly
announce the results of any revisions to any of the forward-looking
statements included herein to reflect future events or
developments.
http://www.bkbank.com
Britton and Koontz Capital
Corporation
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
|
|
|
For the Three Months ended June
30,
|
|
For the Six Months ended June
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
4,747,555
|
|
$
5,269,609
|
|
$
9,621,745
|
|
$ 10,676,669
|
|
Interest expense
|
|
1,465,964
|
|
1,616,591
|
|
2,956,522
|
|
3,367,597
|
|
Net interest income
|
|
3,281,591
|
|
3,653,018
|
|
6,665,223
|
|
7,309,072
|
|
Provision for loan
losses
|
|
200,000
|
|
250,000
|
|
1,299,996
|
|
950,000
|
|
Net interest income after
provision for
loan losses
|
|
3,081,591
|
|
3,403,018
|
|
5,365,227
|
|
6,359,072
|
|
Non-interest income
|
|
711,496
|
|
700,137
|
|
1,827,302
|
|
1,377,431
|
|
Non-interest expense
|
|
3,215,778
|
|
3,161,106
|
|
6,735,618
|
|
6,110,693
|
|
Income before income
taxes
|
|
577,309
|
|
942,049
|
|
456,911
|
|
1,625,810
|
|
Income taxes
|
|
73,458
|
|
184,261
|
|
(110,232)
|
|
268,006
|
|
Net income
|
|
$
503,851
|
|
$
757,788
|
|
$
567,143
|
|
$
1,357,804
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Assets
|
|
0.53%
|
|
0.75%
|
|
0.30%
|
|
0.67%
|
|
Return on Average
Equity
|
|
5.08%
|
|
7.52%
|
|
2.83%
|
|
6.77%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
$
0.24
|
|
$
0.36
|
|
$
0.27
|
|
$
0.64
|
|
Weighted average shares
outstanding
|
|
2,136,450
|
|
2,127,144
|
|
2,134,092
|
|
2,124,761
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
Balance Sheet
Data
|
|
2010
|
|
2009
|
|
2009
|
|
Total assets
|
|
$
380,791,933
|
|
$ 393,110,149
|
|
$ 401,252,952
|
|
Cash and due from
banks
|
|
6,921,880
|
|
10,303,641
|
|
5,612,740
|
|
Federal funds sold
|
|
25,496
|
|
58,799
|
|
2,271
|
|
Investment securities
|
|
138,203,875
|
|
146,590,266
|
|
159,917,981
|
|
Loans, net of UI & loans
held for sale
|
|
216,403,258
|
|
223,817,377
|
|
224,766,276
|
|
Loans held for sale
|
|
5,949,000
|
|
784,063
|
|
-
|
|
Allowance for loan
losses
|
|
2,538,737
|
|
3,878,738
|
|
2,832,499
|
|
Deposits-interest
bearing
|
|
213,252,751
|
|
201,094,816
|
|
207,579,014
|
|
Deposits-non interest
bearing
|
|
45,664,635
|
|
49,847,304
|
|
44,759,527
|
|
Total deposits
|
|
258,917,386
|
|
250,942,120
|
|
252,338,541
|
|
Short-term debt
|
|
29,123,336
|
|
50,389,079
|
|
65,355,926
|
|
Long-term debt
|
|
49,000,000
|
|
49,000,000
|
|
40,007,826
|
|
Stockholders' equity
|
|
40,352,813
|
|
39,840,889
|
|
40,187,002
|
|
Book value (per
share)
|
|
$
18.90
|
|
$
18.74
|
|
$
18.90
|
|
Total shares
outstanding
|
|
2,135,466
|
|
2,126,466
|
|
2,126,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data
|
|
|
|
|
|
|
|
Non-accrual loans
|
|
$
7,695,388
|
|
$
9,335,222
|
|
$
5,605,536
|
|
Loans 90+ days past
due
|
|
1,949
|
|
50,518
|
|
1,821,512
|
|
Total non-performing
loans
|
|
7,697,337
|
|
9,385,740
|
|
7,427,048
|
|
Other real estate
owned
|
|
1,953,871
|
|
1,763,965
|
|
1,397,180
|
|
Total non-performing
assets
|
|
$
9,651,208
|
|
$
11,149,705
|
|
$
8,824,228
|
|
Total non-performing assets to
average assets
|
|
2.54%
|
|
2.92%
|
|
2.17%
|
|
Net chargeoffs - ytd
|
|
$
2,640,000
|
|
$
1,833,337
|
|
$
515,303
|
|
YTD net chargeoffs as a percent
of average loans
|
|
1.18%
|
|
0.82%
|
|
0.23%
|
|
|
|
|
|
|
|
|
SOURCE Britton Koontz Capital Corp.