Community Financial Group, Inc. Reports Increases of 26 Percent in Net Income and 41 Percent in Total Assets and Declares Dividend
NASHVILLE, Tenn.–(BUSINESS WIRE)–Oct. 13, 1999–
Community Financial Group, Inc., (NASDAQ: CFGI) the parent company of The Bank of Nashville, today announced third quarter 1999 net income of $811,000. Net income for the quarter is up 26 percent from the $644,000 reported a year ago, and marks the fifth consecutive double-digit increase in quarterly net income when compared to the prior year. Net income for the nine months ended September 30, 1999, was $2,426,000, up 30 percent from the $1,873,000 reported for the comparable period a year ago. Diluted earnings per share were $.20 and $.23, respectively, for the third quarter of 1999 and 1998.
Today the Board of Directors declared a cash dividend of $.13 per share for shareholders of record on October 29, 1999, payable November 12, 1999. The Company’s annualized dividend yield is 3.5 percent based upon the September 30, 1999 closing price of $14 11/16 per share. Book value per share (excluding unrealized gains and losses on investment securities) was $12.17 at September 30, 1999, up $.66 from a year ago.
Assets topped $300 million for the first time in the Company’s history, ending the quarter at $303.1 million, an increase of 41 percent from the $214.3 million reported September 30, 1998. Loans were $190.8 million at September 30, 1999, an increase of 33 percent from a year ago and deposits were $238.6 million, an increase of 45 percent.
“Growth in all areas of The Bank has been particularly strong for the past year,” said Mack S. Linebaugh, Jr. President & CEO. “Strong loan demand has prompted a need for additional funding and resulted in a highly successful deposit campaign. As we have continued to add strategic branch locations and Internet banking, we have become even more convenient for our customers. With Internet banking and the interactive voice response system that we plan to introduce, it is possible for our customers to accomplish basic banking transactions whenever they wish, wherever they are,” concluded Linebaugh.
Annualized return on average assets for the nine months ended September 30 was 1.25 percent compared to 1.22 percent for the comparable period a year ago. Annualized return on average equity was 6.50 percent for the nine months ended September 30, 1999 compared to 9.58 percent for the same period a year ago, reflecting the increase in equity due to the exercise of warrants in late 1998. In March the Company’s Board of Directors authorized a Stock Repurchase Plan for the acquisition of up to 400,000 shares of CFGI stock as part of a plan to more effectively manage the Company’s capital and enhance future earnings per share. To date, 294,500 shares have been repurchased.
Community Financial Group, Inc., headquartered in Nashville, Tennessee, is the parent company of The Bank of Nashville, which provides banking services through its offices located in Davidson, Williamson and Sumner Counties. -0-
COMMUNITY FINANCIAL GROUP, INC.
Condensed Consolidated Statements of Income Quarter Ended
—————-
September 30 %
(in thousands except per share amounts) 1999 1998 Change
————————————————————–
Interest income $ 5,617 $ 4,162 34.96
Interest expense 2,503 1,973 26.86
————————————————————–
Net interest income $ 3,114 $ 2,189 42.26
————————————————————–
Provision for loan losses 6 25 (76.00)
————————————————————–
Non-interest income 693 578 19.90
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Non-interest expense 2,480 1,695 46.31
————————————————————–
Income before income tax expense $ 1,321 $ 1,047 26.17
————————————————————–
Income tax expense 510 403 26.55
————————————————————–
Net Income $ 811 $ 644 25.93
Per common share:
Net Income:
————————————————————–
Basic 0.20 0.26 (23.08)
————————————————————–
Diluted 0.20 0.23 (13.04)
————————————————————–
Cash Dividends 0.13 0.06 116.67
————————————————————–
Average common shares outstanding:
————————————————————–
Basic 3,996 2,547 56.89
————————————————————–
Diluted 4,097 2,754 48.77
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COMMUNITY FINANCIAL GROUP, INC.
Condensed Consolidated Statements of Income Nine Months Ended
——————
September 30 %
(in thousands except per share amounts) 1999 1998 Change
————————————————————–
Interest income $ 14,812 $ 12,340 20.03
Interest expense 6,272 6,054 3.60
————————————————————–
Net interest income $ 8,540 $ 6,286 35.86
————————————————————–
Provision for loan losses 54 103 (47.57)
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Non-interest income 1,923 1,233 55.96
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Non-interest expense 6,478 4,384 47.76
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Income before income tax expense $ 3,931 $ 3,032 29.65
————————————————————–
Income tax expense 1,505 1,159 29.85
————————————————————–
Net Income $ 2,426 $ 1,873 29.52
Per common share:
Net Income:
————————————————————–
Basic 0.59 0.80 (26.25)
————————————————————–
Diluted 0.58 0.62 (6.45)
————————————————————–
Cash Dividends 0.33 0.18 83.33
————————————————————–
Average common shares outstanding:
————————————————————–
Basic 4,113 2,345 75.39
————————————————————–
Diluted 4,206 3,012 39.64
————————————————————–
Condensed Consolidated Balance Sheets Quarter Ended
—————— %
(in thousands) September 30 Change
1999 1998
Assets
Cash and due from banks $ 15,120 7,816 93.45
————————————————————–
Federal funds sold 27,000 10,000 170.00
————————————————————–
Securities 68,312 53,176 28.46
————————————————————–
Loans 190,766 143,095 33.31
————————————————————–
Allowance for loan losses (3,973) (3,589) 10.70
————————————————————–
Net loans $ 186,793 $139,506 33.90
————————————————————–
Other assets 5,862 3,797 54.39
————————————————————–
Total assets $ 303,087 $214,295 41.43
————————————————————–
Liabilities and shareholders’ equity
Deposits $ 238,627 $164,091 45.42
Borrowed funds 14,500 19,500 (25.64)
Other liabilities 2,746 1,947 41.04
————————————————————–
Total liabilities $ 255,873 $185,538 37.91
————————————————————–
Total shareholders’ equity 47,214 28,757 64.18
————————————————————–
Total liabilities and
shareholders’ equity $ 303,087 $214,295 41.43
————————————————————–
COMMUNITY FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL
HIGHLIGHTS Quarter Ended Nine Months Ended
————– —————–
September 30 September 30
(in thousands except 1999 1998 1999 1998
per share data)
——————————————————————–
Per Common Share
Net income:
Basic $ 0.20 $ 0.26 $ 0.59 $ 0.80
Diluted 0.20 0.23 0.58 0.62
Cash dividends 0.13 0.06 0.33 0.18
Common book value
(excludes SFAS #115) 12.17 11.51 12.17 11.51
Average Balances
Loans, net of unearned discount
and net deferred loan fees $186,123 $ 135,340 $169,149 $ 130,060
Securities 63,211 56,439 66,364 60,560
Earning assets 272,191 196,907 246,953 197,202
Total assets 284,416 207,190 258,812 205,524
Demand deposits 20,748 12,113 18,805 10,665
Interest-bearing deposits 198,851 147,993 169,024 149,001
Total core deposits 181,655 138,606 155,873 135,636
Total deposits 219,599 166,929 187,829 164,702
Shareholders’ equity 48,022 28,281 49,905 26,442
Ratios:
Return on average assets
(annualized) 1.14% 1.23% 1.25% 1.22%
Return on average equity
(annualized) 6.72% 9.12% 6.50% 9.58%
Net interest margin 4.58% 4.46% 4.62% 4.26%
Average realized equity to
average assets 17.03% 13.52% 19.27% 12.72%
Realized equity to assets 15.79% 13.22% 15.79% 13.22%
Credit Quality Data:
Nonperforming loans $ 612 $ 709 $ 612 $ 709
Foreclosed properties 52 0 52 0
Total nonperforming assets $ 664 $ 709 $ 664 $ 709
Nonperforming assets as a
percent of loans and foreclosed
properties 0.35% 0.50% 0.35% 0.50%
Allowance for loan losses $ 3,973 $ 3,589 $ 3,973 $ 3,589
Percent of period-end loans 2.08% 2.51% 2.08% 2.51%
Net charge-offs (recoveries) $ (108) $ (246) $ (181) $ (358)
Percent of average loans -0.06% -0.18% -0.11% -0.28%
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COPYRIGHT 2000 Gale Group
