NATCHEZ, Miss., Oct. 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 three and nine month period ended
September 30, 2009. Net income for the three months ended September
30, 2009, was $325 thousand, or $.15 per diluted share, compared to
$943 thousand, or $.45 per diluted share, for the quarter ended
September 30, 2008. For the nine month period ended September 30,
2009, net income and diluted earnings per share were $1.7 million
and $0.79, respectively, compared to $2.6 million and $1.25,
respectively, for the same period in 2008. Although net interest
income increased for both the three and nine month periods ended
September 30, 2009, compared to the corresponding periods in 2008,
as discussed below, these increases were offset by the Bank's
higher provision for loan losses in 2009 and increases in Federal
Deposit Insurance Corporation ("FDIC") assessments. The Bank
increased its provision by $800 thousand and $1.5 million for the
three and nine month periods ended September 30, 2009,
respectively. Also contributing to the lower earnings was higher
FDIC assessments and special assessments to all FDIC-insured banks
which are part of the FDIC's efforts to recapitalize the Deposit
Insurance Fund. Increased provision expenses negatively impacted
diluted earnings per share by approximately $0.24 and $0.45 for the
three and nine months ended September 30, 2009, respectively.
Increased FDIC assessments reduced diluted earnings per share by
approximately $0.03 and $0.14 for the three and nine months ended
September 30, 2009. Net interest income for the three and nine
month periods ended September 30, 2009, increased $176 thousand and
$866 thousand, respectively, over the same period in 2008. The
increase is due primarily to the growth in average volume of loans
and investment securities. The lower interest rate environment also
contributed to higher net interest income as the interest rate
spread increased 23 basis points and 27 basis points, respectively,
for the three and nine months ended September 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 increased to 3.93%
for three months ended September 30, 2009, compared to 3.86% for
the same period in 2008. Net interest margin increased to 3.84% for
the nine months ended September 30, 2009, from 3.79% for the same
period in 2008. Non-interest income decreased $87 thousand during
the third quarter of 2009 as compared to the same period in 2008.
Non-interest income decreased $269 thousand for the first nine
months of 2009 as compared to the corresponding period in 2008.
Both variances are due primarily to lower charges on overdraft
accounts, a decrease in revenue from the Bank's networking
arrangements and gains in 2008 from the sale on investment
securities. Non-interest expense increased $209 thousand for the
three months ended September 30, 2009, as compared to the
corresponding period in 2008. The increase is due primarily to
higher FDIC regular assessments of $85 thousand as well increased
other real estate costs of $80 thousand and equipment and software
costs of $46 thousand. Non-interest expense increased $651 thousand
for the nine months ended September 30, 2009, as compared to the
corresponding period in 2008 due primarily to higher FDIC regular
assessments of $284 thousand and $183 thousand for the special
assessment and other real estate costs of $219 thousand. The
Company has 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 $8.3 million, or 2.04% of total
assets at September 30, 2009, from $5.0 million, or 1.21% to total
assets at December 31, 2008. Approximately $2.9 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. In addition to these two commercial loans, in the third
quarter of 2009, four additional credits in the amount of $2.0
million relating to one customer relationship moved to
non-performing status. Although these credits are secured by real
estate mortgages, the Bank is currently unable to foreclose upon or
take other action in regards to such real estate because of
litigation in which the customer is involved. It is unclear at this
time the extent of the Bank's rights with respect to the real
estate that serves as collateral for these loans, although the Bank
has title insurance on each parcel. As this litigation progresses
and the Bank obtains more information regarding its rights with
respect to the real estate securing these four credits, the Bank
will take appropriate action to reserve against losses, if any,
that may result from these credits. Net charge-offs increased to
$1.3 million in the 3rd quarter of 2009 primarily due to a $1.2
million charge-off related to anticipated losses on one of the two
commercial real estate loans mentioned above that are subject to
forbearance agreements. Net charge-offs through September 30, 2009,
amount to $1.8 million compared to $499 thousand during 2008. The
Company's loan loss provision in the 3rd quarter of 2009 was $920
thousand, as compared to $120 thousand for the corresponding period
in 2008. For the nine months ended September 30, 2009, the
Company's loan loss provision was $1.9 million, as compared to $360
thousand during the same period in 2008. The additional provision
expense kept the allowance for loan losses at $2.4 million, or
1.09% of loans at September 30, 2009, as compared to $2.4 million,
or 1.06% of loans at December 31, 2008. The Company believes its
reserves with respect to the credits discussed above are adequate
as of September 30, 2009. The Company's Regulatory Tier 1 Capital
of $42.5 million at September 30, 2009, substantially exceeds the
approximate $16 million or 6% of risk-weighted assets that the
regulatory authorities consider "Well-Capitalized." In the third
quarter of 2009, the Company opened a second location in Baton
Rouge, Louisiana. In connection with this new location, the number
of employees in the Baton Rouge area has increased from 15 to 20.
Located in The Oaks at Bluebonnet Parc, the second office,
occupying approximately 4400 square feet, offers convenient
depository services and includes a conference layout to accommodate
select meetings of professional and commercial customers. The new
facility also houses the Company's mortgage center, a professional
client services department and key company-wide credit
administration personnel. The Company also has filed an application
with the Office of the Comptroller of the Currency to open a third
full-service branch in Baton Rouge. The Company expects this
location to open in mid-November, in the Towne Center area of Baton
Rouge. President and CEO W. Page Ogden noted, "Our Bluebonnet Parc
office, as well as our planned expansion into the new Towne Center
location, reflects our commitment to relationship banking. We are
presenting facilities designed and staffed to connect with our
customers in a very comfortable, private, and technologically
advanced setting. We continue to focus on the customer
relationship, not an impersonal transactional environment. At a
time when our industry is generally pulling back, I am pleased to
announce our continued expansion." 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
two in Baton Rouge, Louisiana. As of September 30, 2009, the
Company reported assets of $396 million and equity of $41 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 September 30, 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 For the Three Months ended
Nine Months ended September 30, September 30, ------------------
----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Interest
income $5,289,347 $5,657,737 $16,088,650 $17,149,687 Interest
expense 1,573,844 2,118,288 4,941,441 6,868,565 --------- ---------
--------- --------- Net interest income 3,715,503 3,539,449
11,147,209 10,281,122 Provision for loan losses 920,000 120,000
1,870,000 360,000 ------- ------- --------- ------- Net interest
income after provision for loan losses 2,795,503 3,419,449
9,277,209 9,921,122 Non-interest income 632,124 718,931 1,886,919
2,156,101 Non-interest expense 3,000,373 2,791,785 9,111,065
8,459,942 --------- --------- --------- --------- Income before
income taxes 427,254 1,346,595 2,053,063 3,617,281 Income taxes
103,059 403,515 371,065 979,869 ------- ------- ------- ------- Net
income $324,195 $943,080 $1,681,998 $2,637,412 ======== ========
========== ========== Return on Average Assets 0.33% 0.99% 0.56%
0.93% ==== ==== ==== ==== Return on Average Equity 3.18% 10.40%
5.56% 9.68% ==== ===== ==== ==== Diluted: Net income per share
$0.15 $0.45 $0.79 $1.25 ===== ===== ===== ===== Weighted average
shares outstanding 2,127,070 2,117,966 2,125,282 2,117,966
========= ========= ========= ========= Sept. 30, June 30, Dec. 31,
Sept. 30, Balance Sheet Data 2009 2009 2008 2008 ------------------
---- ---- ---- ---- Total assets $395,830,265 $401,252,952
$413,076,826 $387,515,577 Cash and due from banks 7,552,892
5,612,740 6,951,543 7,152,054 Federal funds sold 314,942 2,271 -
37,714 Investment securities 152,599,328 159,917,981 170,720,427
148,105,860 Loans, net of UI & loans held for sale 223,510,893
224,766,276 225,511,297 221,494,005 Loans held for sale 764,500 - -
- Allowance for loan losses 2,444,714 2,832,499 2,397,802 2,292,273
Deposits-interest bearing 208,819,093 207,579,014 206,094,593
188,335,968 Deposits-non interest bearing 43,381,549 44,759,527
51,119,827 48,712,324 ---------- ---------- ---------- ----------
Total deposits 252,200,642 252,338,541 257,214,420 237,048,292
Short-term debt 52,087,432 65,355,926 71,717,942 69,354,164
Long-term debt 47,000,000 40,007,826 40,010,824 41,222,573
Stockholders' equity 41,392,726 40,187,002 39,541,069 36,904,085
Book value (per share) $19.47 $18.90 $18.67 $17.42 Total shares
outstanding 2,126,466 2,126,466 2,117,966 2,117,966 Asset Quality
Data ------------------ Non-accrual loans $6,148,680 $5,605,536
$3,567,907 $1,571,395 Loans 90+ days past due 1,009,513 1,821,512
517,779 603,226 --------- --------- ------- ------- Total non-
performing loans 7,158,193 7,427,048 4,085,686 2,174,621 Other real
estate owned 1,177,100 1,397,180 919,204 1,389,812 ---------
--------- ------- --------- Total non- performing assets $8,335,293
$8,824,228 $5,004,890 $3,564,433 Total non- performing assets to
average assets 2.07% 2.17% 1.31% 0.94% Net chargeoffs $1,823,088
$515,303 $763,135 $498,664 YTD net chargeoffs as a percent average
net loans 0.82% 0.23% 0.34% 0.22% DATASOURCE: Britton Koontz
Capital Corp. 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/
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