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, 2009. Net income for the three months ended June 30, 2009,
was $758 thousand, or $.36 per diluted share, compared to $848
thousand, or $.40 per diluted share, for the quarter ended June 30,
2008. For the six month period ended June 30, 2009, net income and
diluted earnings per share were $1.4 million and $0.64,
respectively, compared to $1.7 million and $0.80, respectively, for
the same period in 2008. Both the three and six month period
comparisons reflect the effects of additional Federal Deposit
Insurance Corporation ("FDIC") special assessments and a higher
provision for loan losses in 2009. These additional expenses were
partially offset by increases in net interest income. The FDIC
announced a special premium assessment on all FDIC-insured banks as
part of its efforts to recapitalize the Deposit Insurance Fund.
Increased FDIC assessments reduced diluted earnings per share by
$0.08 and $0.11, respectively, for the three and six month periods
ended June 30, 2009. The higher provision expense in the 2nd
quarter of 2009 negatively impacted diluted earnings per share by
$0.04 and $0.21, respectively, for the three and six month periods
ended June 30, 2009. Non-interest income was relatively stable for
the 2nd quarter of 2009 as compared to the 2nd quarter of 2008,
decreasing only $18 thousand, while non-interest income decreased
$182 thousand for the first six months of 2009 as compared to the
corresponding period in 2008, due primarily to gains on securities
sales in 2008. Non-interest expense increased $354 thousand for the
three months ended June 30, 2009 as compared to the corresponding
period in 2008. The increase is due primarily to higher FDIC
regular assessments of $91 thousand as well as the aforementioned
special assessment in the amount of $183 thousand. Non-interest
expense increased $443 thousand for the six months ended June 30,
2009 as compared to the corresponding period in 2008, also due
primarily to higher FDIC regular assessments of $199 thousand and
$183 thousand for the special assessment. Net interest income for
the three and six month periods ended June 30, 2009, increased $306
thousand and $690 thousand, respectively, over the same period in
2008. The increase is due primarily to the growth in volume and
changes in the mix of interest earning assets and interest bearing
liabilities. The lower interest rate environment also contributed
to higher net interest income as the interest rate spread increased
32 basis points and 30 basis points, respectively, for the three
and six months ended June 30, 2009, as compared to the
corresponding periods in 2008. The increase in interest rate spread
in 2009 was a result of funding costs declining to a greater degree
than asset yields. Net interest margin was 3.85% for three months
ended June 30, 2009, compared to 3.74% for the same period in 2008.
Net interest margin increased to 3.81% at June 30, 2009 from 3.76%
at June 30, 2008. The Company experienced some declines in certain
asset quality measures since December 31, 2008. Non-performing
assets, which includes non-accrual loans, loans delinquent 90 days
or more and other real estate, increased to $8.8 million, or 2.16%
of total assets at June 30, 2009, from $5.0 million, or 1.21% to
total assets at December 31, 2008. Approximately $4.0 million of
the nonperforming assets are two non-accrual commercial real estate
loans, both of which have been under formal forbearance agreements.
The Company continues to closely monitor these loans and intends to
take such actions as are necessary to limit any losses to the
Company. Two additional commercial real estate relationships
totaling $1.6 million were included in 90 day past due at the end
of the 2nd quarter. One of the relationships has subsequently been
renewed with a payment of all past due interest. The second
relationship is expected to be renewed before the end of July with
interest being paid current along with some reduction of principal.
Net charge-offs of $383 thousand in the 2nd quarter of 2009
resulted in net charge-offs of $515 thousand at June 30, 2009
compared to $202 thousand at June 30, 2008. The Company's loan loss
provision in the 2nd quarter of 2009 was $250 thousand, as compared
to $120 thousand for the corresponding period in 2008. For the six
months ended June 30, 2009, the Company's loan loss provision was
$950 thousand, as compared to $240 thousand during the same period
in 2008. The additional provision expense increased the allowance
for loan losses to $2.8 million, or 1.26% of loans at June 30,
2009, from $2.4 million, or 1.06% at December 31, 2008. The Company
believes its reserves with respect to the four relationships
discussed above to be adequate as of June 30, 2009. The Company's
Regulatory Tier 1 Capital to risk weighted assets of 16.6% or $42.5
million substantially exceeds the $15.4 million or 6% that the
regulatory authorities consider "Well-Capitalized." 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 June 30,
2009, the Company reported assets of $401.3 million and equity of
$40.2 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, 2009, were
2,124,466. 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 For the Six Months ended ended June 30, June 30,
-------------------- ------------------------ 2009 2008 2009 2008
---- ---- ---- ---- Interest income $5,333,801 $5,655,661
$10,799,304 $11,491,950 Interest expense 1,616,591 2,244,522
3,367,597 4,750,276 --------- --------- --------- --------- Net
interest income 3,717,210 3,411,139 7,431,707 6,741,674 Provision
for loan losses 250,000 120,000 950,000 240,000 ------- -------
------- ------- Net interest income after provision for loan losses
3,467,210 3,291,139 6,481,707 6,501,674 Non-interest income 635,945
653,735 1,254,796 1,437,170 Non-interest expense 3,161,106
2,806,567 6,110,693 5,668,159 --------- --------- ---------
--------- Income before income taxes 942,049 1,138,307 1,625,810
2,270,685 Income taxes 184,261 290,084 268,006 576,354 -------
------- ------- ------- Net income $757,788 $848,223 $1,357,804
$1,694,331 ======== ======== ========== ========== Return on
Average Assets 0.75% 0.89% 0.67% 0.90% ==== ==== ==== ==== Return
on Average Equity 7.52% 9.31% 6.77% 9.31% ==== ==== ==== ====
Diluted: Net income per share $0.36 $0.40 $0.64 $0.80 ===== =====
===== ===== Weighted average shares outstanding 2,127,144 2,117,966
2,124,761 2,118,247 ========= ========= ========= ========= June
30, December 31, June 30, Balance Sheet Data 2009 2008 2008 ----
---- ---- Total assets $401,252,952 $413,076,826 $391,784,458 Cash
and due from banks 5,612,740 6,951,543 7,513,141 Federal funds sold
2,271 - - Investment securities 159,917,981 170,720,427 144,453,646
Loans, net of unearned interest 221,933,777 225,511,297 230,229,709
Deposits-interest bearing 207,579,014 206,094,593 193,116,816
Deposits-non interest bearing 44,759,527 51,119,827 48,580,909
---------- ---------- ---------- Total Deposits 252,338,541
257,214,420 257,214,420 Short Term debt 65,355,926 71,717,942
70,081,085 Long Term debt 40,007,826 40,010,824 41,635,801
Stockholders' equity 40,187,002 39,541,069 35,921,374 Book value
(per share) $18.90 $18.67 $16.96 Total shares outstanding 2,126,466
2,117,966 2,117,966 Asset Quality Data Non-accrual loans $5,605,536
$3,567,907 $3,615,839 Loans 90+ days past due 1,821,512 517,779
254,350 --------- ------- ------- Total non-performing loans
7,427,048 4,085,686 3,870,189 Other real estate owned 1,397,180
919,204 409,662 --------- ------- ------- Total non-performing
assets $8,824,228 $5,004,890 $4,279,851 Total non-performing assets
to average assets 2.17% 1.31% 1.14% Net chargeoffs $515,303
$763,135 $201,898 Net chargeoffs as a percent average net loans
(annualized) 0.69% 0.48% 0.05% DATASOURCE: Britton & Koontz
Capital Corporation CONTACT: W. Page Ogden, President & CEO, or
William M. Salters, Treasurer & CFO, +1-601-445-5576,
+1-601-445-2481 Fax, Web Site: http://www.bkbank.com/
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