NATCHEZ, Miss., April 24 /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, 2009, of
$600 thousand, and $.28 per diluted share, respectively, compared
to $846 thousand, and $.40 per diluted share for the quarter ended
March 31, 2008. Annualized returns on average assets and average
equity for the quarter ended March 31, 2009, were .59% and 6.02%,
respectively, compared to .93% and 9.31%, for the same period in
2008. The decrease in earnings in the first quarter of 2009 as
compared to the same period in 2008 arose primarily because the
Company increased the provision to the allowance for possible loan
losses by $580 thousand in the first quarter of 2009. Also costs
associated with the FDIC premium assessments in first quarter of
2009 increased $108 thousand over the same period in 2008. During
the first quarter of 2009, the Company experienced increases in its
nonperforming assets, primarily in its Mississippi markets, which
prompted the additional provision expense. While net income was
lower for the first quarter of 2009, net interest income increased
$383 thousand to $3.7 million at March 31, 2009, compared to the
same period in 2008. The increase is due to growth in net earning
assets which added approximately $480 thousand to net interest
income over the prior period offset by approximately $97 thousand
due to interest rates. The growth in net interest income is
evidenced mainly by the increase in average assets to $409 million
at March 31, 2009, primarily from additional investment security
purchases. Average investment securities increased $45 million
since year-end to $171 million as the Company took advantage of a
more desirable yield curve and the lower interest rate environment.
The Company's net interest margin remained relatively stable,
decreasing only 5 basis points to 3.77% at March 31, 2009, from
3.82% at March 31, 2008. Non-interest income ended March 31, 2009,
at $619 thousand compared to $783 thousand at March 31, 2008. The
difference was primarily due to a gain of $148 thousand from the
sale of the Company's trading investment security portfolio in the
first quarter of 2008. Non-interest expense increased $88 thousand
as compared to the first quarter of 2008 and ended the first
quarter of 2009 at $2.9 million. Increased FDIC premiums of $108
thousand and higher other real estate expenses of $47 thousand were
offset by lower personnel, occupancy and equipment costs. The
Bank's provision for loan losses for the three month period ending
March 31, 2009, was increased to $700 thousand, compared to $120
thousand during the same period in 2008. As stated earlier, the
increase in provision was added in response to increases in
non-performing assets after December 31, 2008. Total non-performing
assets, which include non-accrual loans of $5.4 million, loans past
due 90 days or more of $516 thousand and other real estate of $1.4
million, ended the first quarter of 2009 at $7.3 million compared
to $5.0 million at December 31, 2008. Approximately $4.0 million of
the nonaccrual loans are in two commercial real estate loans. Both
are subject to forbearance agreements but interest is being paid.
Non-performing assets as a percent of average assets increased to
1.78% at March 31, 2009, from 1.25% at December 31, 2008. The
allowance for loan losses ended the first quarter of 2009, at $3.0
million, or 1.34% of loans compared to 1.06% at December 31, 2008.
Other real estate at March 31, 2009 was $1.4 million compare to
$919 thousand at December 31, 2008. One property included in other
real estate in the amount of $534 thousand has been contracted for
sale in the second quarter of 2009. 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
one in Baton Rouge, Louisiana. As of March 31, 2009, the Company
reported assets of $407.9 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 March 31, 2009, were 2,126,466. 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. Britton and Koontz Capital Corporation
Financial Highlights (Unaudited) For the Three Months Ended March
31, 2009 2008 Interest income $5,465,502 $5,836,288 Interest
expense 1,751,006 2,505,755 Net interest income 3,714,496 3,330,533
Provision for loan losses 700,000 120,000 Net interest income after
provision for loan losses 3,014,496 3,210,533 Non-interest income
618,850 783,435 Non-interest expense 2,949,586 2,861,591 Income
before income taxes 683,760 1,132,377 Income taxes 83,745 286,270
Net income $600,015 $846,107 Return on Average Assets 0.59% 0.93%
Return on Average Equity 6.02% 9.31% Diluted: Net income per share
$0.28 $0.40 Weighted average shares outstanding 2,122,199 2,118,750
March 31, December 31, March 31, 2009 2008 2008 Total assets
$407,862,401 $413,076,826 $366,030,317 Cash and due from banks
5,466,733 6,951,543 6,753,519 Investment securities 170,855,878
170,720,427 118,621,061 Gross loans 221,652,629 225,511,297
230,680,704 Deposits-interest bearing 213,012,064 206,094,593
193,017,904 Deposits-non interest bearing 49,479,421 51,119,827
49,611,550 Total deposits 262,491,485 257,214,420 242,629,454
Short-term borrowed funds 62,092,658 71,717,942 41,058,417
Long-term borrowed funds 40,009,334 40,010,824 42,032,712
Stockholders' equity 40,436,549 39,541,069 36,677,801 Book value
(per share) 19.02 18.67 17.32 Total shares outstanding 2,126,466
2,117,966 2,117,966 http://www.bkbank.com/ DATASOURCE: Britton
& Koontz Capital Corporation CONTACT: W. Page Ogden, President
& CEO, or William M. Salters, Treasurer & CFO, both of
Britton & Koontz Capital Corporation, +1-601-445-5576, or Fax:
+1-601-445-2481, Web Site: http://www.bkbank.com/
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