NATCHEZ, Miss., April 26 /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 quarter ended March 31, 2010, of $63
thousand and $.03 per diluted
share, respectively, compared to $600
thousand and $.28 per diluted
share, respectively, for the quarter ended March 31, 2009. Annualized returns on
average assets and average equity for the quarter ended
March 31, 2010, were .07% and .63%,
respectively, compared to .59% and 6.02%, respectively, for the
same period in 2009.
Several factors contributed to the decrease in earnings in the
1st quarter of 2010 as compared to the same period in 2009.
As discussed below, the Company increased the provision to
the allowance for possible loan losses by $400 thousand. Also, we charged down the
value of other real estate by $335
thousand after the Bank discovered structural deficiencies
in a certain foreclosed property that had already been transferred
to other real estate. The Company also incurred a
$306 thousand charge after management
concluded that loan and related late fees previously believed to be
recoverable were ultimately uncollectible. Finally, net
interest income during the 1st quarter of 2010 decreased
$272 thousand compared to the same
period in 2009. Offsetting these factors were recoveries of
$433 thousand from the Small Business
Administration on other real estate and gains of $446 thousand on the sale of mortgage backed
securities.
Net interest income ended March 31,
2010, at $3.4 million compared
to $3.7 million at March 31, 2009. This decline was due
primarily to the charge-off of interest on loans transferred to
non-accrual and lower than expected average earning assets, offset
by lower funding costs of interest bearing liabilities during the
1st quarter of 2010 compared to the same period in 2009.
Contributing to the lower average earning assets was a
$34 million decrease in average
investment securities. The Federal Reserve's purchase of
securities resulted in lower medium and longer term interest rates
and did not provide profitable opportunities for reinvestment.
Therefore, cash flows from the investment securities
portfolio were used to pay down debt. Even with the decline
in net interest income, net interest margin increased from 3.71% at
March 31, 2009, to 3.74% at
March 31, 2010, due to the lower
volume of earning assets.
Non-interest income ended March 31,
2010, at $1.1 million compared
to $677 thousand at March 31, 2009. The difference was
primarily due to a gain of $446
thousand on the sale of approximately $11 million of mortgage-backed securities.
Non-interest expense increased $577
thousand as compared to the 1st quarter of 2009 and ended
the 1st quarter of 2010 at $3.5
million. The increase is primarily due to the
$306 thousand charge to expense
related to the charge-off of loan and late fees receivable and
higher occupancy, equipment and salary and benefits costs.
Total non-performing assets, which include non-accrual loans,
loans past due 90 days or more and other real estate, ended the 1st
quarter of 2010 at $11.1 million
compared to $10.5 million at
December 31, 2009, due to increases
in other real estate. Non-performing assets as a percent of
average assets increased to 2.92% at March
31, 2010, from 2.62% at December 31,
2009. The allowance for loan losses ended the 1st
quarter of 2010, at $3.1 million, or
1.42% of loans, compared to $3.9
million, or 1.73% of loans, at December 31, 2009. Non-accrual loans were
$9.3 million at March 31, 2010, as compared to $8.7 million at December
31, 2009, while loans past due 90 days or more were
$50 thousand at March 31, 2010 as compared to $1 million at December 31,
2009. Other real estate at March 31, 2010 was $1.8
million compared to $815
thousand at December 31, 2009.
The Bank's provision for loan losses for the three month period
ending March 31, 2010, was increased
to $1.1 million, compared to
$700 thousand during the same period
in 2009. The extra provision was added primarily in response
to the transfer of one commercial credit to non-accrual during the
1st quarter of 2010. Net charge-offs were $1.8 million during the 1st quarter of 2010.
In the fourth quarter of 2009, management had anticipated the
charge-offs and in response took an additional provision expense as
of December 31, 2009.
Subsequent to March 31, 2010, a
total of approximately $1.7 million
of non-accrual loans have been repaid. While resolutions of
problem loans after quarter-end have been positive, management
still believes that the local markets in which the Company operates
have not yet completely stabilized from the recent recession.
Therefore, unexpected asset quality issues may still arise.
Management continues its efforts to identify and resolve
problem credits as quickly as possible.
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, and three in
Baton Rouge, Louisiana. As
of March 31, 2010, the Company
reported assets of $369.5 million and
equity of $39.4 million. The
Company's stock is traded on NASDAQ under the symbol BKBK and the
transfer agent is American Stock Transfer & Trust Company.
Total shares outstanding at March 31,
2010, were 2,135,466.
Forward Looking Statements
This news release contains statements regarding the projected
performance of Britton & Koontz Capital Corporation and its
subsidiaries. These statements constitute forward-looking
information within the meaning of the Private Securities Litigation
Reform Act. Actual results may differ materially from the
projections provided in this release since such projections involve
significant known and unknown risks and uncertainties.
Factors that might cause such differences include, but are
not limited to: competitive pressures among financial institutions
increasing significantly; economic conditions, either nationally or
locally, in areas in which the Company conducts operations being
less favorable than expected; and legislation or regulatory changes
which adversely affect the ability of the combined Company to
conduct business combinations or new operations. The Company
disclaims any obligation to update such factors or to publicly
announce the results of any revisions to any of the forward-looking
statements included herein to reflect future events or
developments.
http://www.bkbank.com
Britton and Koontz
Capital Corporation
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Financial
Highlights
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(Unaudited)
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For the Three
Months
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Ended March
31,
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2010
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2009
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Interest income
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$
4,874,190
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$
5,407,058
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Interest expense
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1,490,557
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1,751,005
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Net interest income
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3,383,633
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3,656,053
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Provision for loan losses
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1,099,996
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700,000
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Net interest income
after
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provision for loan
losses
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2,283,637
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2,956,053
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Non-interest income
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1,122,842
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677,293
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Non-interest expense
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3,526,876
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2,949,586
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Income before income
taxes
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(120,397)
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683,760
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Income taxes
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(183,690)
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83,745
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Net income
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$
63,293
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$
600,015
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Return on Average
Assets
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0.07%
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0.59%
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Return on Average
Equity
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0.63%
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6.02%
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Diluted:
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Net income per share
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$
0.03
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$
0.28
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Weighted average shares
outstanding
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2,131,706
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2,122,199
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March
31,
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December
31,
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March
31,
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Balance Sheet Data
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2010
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2009
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2009
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Total assets
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$
369,463,512
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$
393,110,149
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$
407,862,401
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Cash and due from banks
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6,117,260
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10,303,641
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5,466,733
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Investment securities
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127,284,279
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146,590,266
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170,855,878
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Gross loans. net of loans held for
sale
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221,211,246
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223,817,377
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221,652,629
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Deposits-interest bearing
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206,048,791
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201,094,816
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213,012,064
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Deposits-non interest
bearing
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45,683,381
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49,847,304
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48,479,421
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Total deposits
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251,732,172
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250,942,120
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261,491,485
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Short-term borrowed funds
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27,039,455
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50,389,079
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62,092,658
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Long-term borrowed funds
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49,000,000
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49,000,000
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40,009,334
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Stockholders' equity
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39,425,757
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39,840,889
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40,436,549
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Book value (per share)
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18.46
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18.74
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19.02
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Total shares outstanding
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2,135,466
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2,126,466
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2,126,466
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Asset Quality Data
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Non-accrual loans
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$
9,335,222
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$
8,709,058
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$
5,370,703
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Loans 90+ days past due
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50,518
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1,003,944
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515,605
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Total non-performing loans
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9,385,740
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9,713,002
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5,886,308
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Other real estate owned
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1,763,965
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815,207
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1,419,409
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Total non-performing assets
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$
11,149,705
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$
10,528,209
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$
7,305,717
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Total non-performing assets to average
assets
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2.92%
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2.62%
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1.78%
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Net chargeoffs - ytd
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$
1,833,337
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$
1,939,064
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$
131,967
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YTD net chargeoffs as a percent
of average net loans
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0.82%
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0.87%
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0.06%
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SOURCE Britton & Koontz Capital Corporation