NATCHEZ, Miss., Jan. 25 /PRNewswire-FirstCall/ -- The Board of
Directors of Britton & Koontz Capital Corporation (Nasdaq:
BKBK, "the Company") today reported net income for the year ended
December 31, 2009, of $2.3 million, or $1.06 per basic and diluted
share, compared to $3.5 million, or $1.65 per basic and diluted
share, for 2008. Net income for the quarter ended December 31,
2009, was $569 thousand, or $.27 per basic and diluted share,
compared to $865 thousand, or $.41 per basic and diluted share, for
the fourth quarter of 2008. The returns on average assets and
equity for the year ended December 31, 2009, were .56% and 5.56%,
respectively, compared to .91% and 9.57% for same period in 2008.
Net interest income decreased 4% during the fourth quarter of 2009
to $3.6 million compared to $3.7 million in the fourth quarter of
2008. Net interest margin decreased to 3.78% from 3.86% during the
same period. The decrease in net interest income was primarily due
to a larger decline in the volume of earning assets during the
quarter as compared to the decline in the volume of interest
bearing liabilities over the same period; this accounted for $153
thousand of the quarterly decrease. The decrease in earning assets
is primarily attributable to investment security purchases in the
fourth quarter of 2008 that were subsequently paid down and not
reinvested. For the year ended December 31, 2009, net interest
income increased 5% to $14.5 million compared to the same period in
2008, while net interest margin increased slightly during this
period to 3.78%. The increase in net interest income for the year
ended December 31, 2009, compared to 2008, was due primarily to the
increase in the volume of earning assets exceeding the increase in
the volume of interest bearing liabilities; this accounted for $745
thousand of the year-over-year increase. The higher volume of
earning assets for 2009 is a result of the increase in purchases of
investment securities undertaken in 2008 to take advantage of
attractive yields on such assets; as investment securities paid
down throughout 2009, the market had reversed and the yields
prevailing in the market discouraged reinvestment of investment
securities proceeds, which instead were used to repay debt. The
positive effects of increased volume were offset by this lower
interest rate environment during 2009, which narrowed the interest
rate spread for earning assets by a greater degree than the
interest rate spread for interest bearing liabilities. Non-interest
income for the quarter and year ended December 31, 2009, was $745
thousand and $2.8 million, respectively, compared to $675 thousand
and $3.0 million, respectively, for the same periods in 2008. The
increase for the quarter ended December 31, 2008, was primarily due
to higher fee income generated from the sale of residential
mortgage loans into the secondary market and gains on investment
securities. The factors contributing to the decrease in
non-interest income for the year ended December 31, 2009, compared
to the same period in 2008 include lower revenue from networking
arrangements and reduced income from service charges on deposit
accounts. In the third quarter of 2009, the Company moved its
brokerage business and related networking arrangements from its
prior provider. In the new arrangement, rather than receiving
income from the sales of brokerage products, the Company only
leases space to its new provider and consequently generates lower
income associated with sales of brokerage products. However, the
new arrangement also is expected to result in considerably lower
operating expenses, as the Company will no longer bear the
compensation and other expenses previously incurred in connection
with sales of brokerage products. Additionally, gains on investment
securities decreased in 2009 compared to the previous year.
Non-interest expense for the quarter and year ended December 31,
2009, was $3.3 and $12.4 million, respectively, compared to $2.8
and $11.3 million for the comparable periods in 2008. The increased
expenses for both periods are primarily due to higher Federal
Deposit Insurance Corporation ("FDIC") assessments, higher employee
salaries and benefits and increased occupancy and equipment costs.
The increases in salary, occupancy and equipment costs are
primarily related to the opening of two new branches in Baton
Rouge, Louisiana, and the expansion of the Company's loan
origination staff in Baton Rouge, Louisiana, during the third and
fourth quarters of 2009. Since December 31, 2008, total assets
decreased $19.0 million to $394.1 million at December 31, 2009. The
change is due to decreases in investment securities from $170.7
million at December 31, 2008, to $146.6 million at December 31,
2009, offset by an increase in cash and due from banks. Loans
declined $1.4 million to $221.7 million at December 31, 2009, from
$223.1 million at December 31, 2008. Fixed assets increased $1.1
million to $8.0 million at December 31, 2009, partially reflecting
the expansion in the Baton Rouge, Louisiana market. Other assets
increased $2.3 million to $3.0 million due primarily to the $1.6
million three year prepaid FDIC assessment paid December 30, 2009.
Total deposits declined $6.3 million to $250.9 million at December
31, 2009, compared to $257.2 million as of December 31, 2008. The
decrease in deposits was primarily due to declines in public and
brokered deposits and other wholesale deposit sources. Throughout
2009, asset quality for the Company declined compared to December
31, 2008. Non-performing assets, including non-accrual loans, loans
past due 90 days or more and other real estate, increased to $10.5
million, or 2.67% of total assets, at December 31, 2009, from $8.3
million, or 2.11% of total assets, at September 30, 2009, and $5.0
million, or 1.21% of total assets, at December 31, 2008. The
increase in non-performing assets during the fourth quarter of 2009
is primarily related to three additional credits relating to one
customer relationship in the amount of $2.3 million. These loans
are secured by commercial real estate and the Bank is in the
process of foreclosing on the properties. However, the customer has
filed for Chapter 11 bankruptcy protection and it is expected the
foreclosure process will be delayed at least until the middle of
2010. Net charge-offs as a percentage of average loans was .87% at
December 31, 2009, compared to .82% at September 30, 2009 and .34%
at December 31, 2008. The Company added $2.4 million to its
allowance for probable loan losses in 2009, which offset net
charge-offs of $1.9 million during the year. The increase in net
charge-offs in 2009 represents an increase over 2008 of $1.2
million. The ratio of the allowance for probable loan losses to
total loans increased to 1.29% at December 31, 2009, compared to
1.06% at December 31, 2008. Tier 1 Capital for the Company and its
wholly-owned subsidiary, Britton & Koontz Bank, N.A., was $42.8
million and $39.5 million, respectively, at December 31, 2009.
These amounts substantially exceed the approximate $15 million, or
6% of risk-weighted assets, required to be considered
"Well-Capitalized." In the fourth quarter of 2009, the Company
opened a third full-service branch in Baton Rouge, Louisiana. In
connection with this new location, the number of employees in the
Baton Rouge area has increased to 21. Located in the Towne Center
area, this extremely visible addition is expected to enhance the
Company's current retail presence in the city. 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 December
31, 2009, the Company reported assets of $394.1 million and equity
of $40.5 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 December 31, 2009, were
2,126,466. Forward Looking Statements This news release contains
statements regarding the projected performance of Britton &
Koontz Capital and its subsidiaries that constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements. These statements often include the
words "may," "could," "would," "should," "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "projects" or
similar expressions. 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; significant fluctuations in interest
rates; inflation; significant underperformance in our portfolio of
outstanding loans; and legislation or regulatory changes which
adversely affect the ability of the Company to conduct business
combinations or new operations. Forward-looking statements speak
only as of the date they are made, and the Company undertakes no
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 For the Twelve Months December 31, ended
December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Income
Statement Data ---------- Interest income $5,079,559 $5,596,258
$20,979,459 $22,562,537 Interest expense 1,518,491 1,884,992
6,459,931 8,753,557 --------- --------- --------- --------- Net
interest income 3,561,068 3,711,266 14,519,528 13,808,980 Provision
for loan losses 550,000 370,000 2,420,000 730,000 ------- -------
--------- ------- Net interest income after provision for loan
losses 3,011,068 3,341,266 12,099,528 13,078,980 Non-interest
income 744,698 674,860 2,820,368 3,014,368 Non-interest expense
3,254,875 2,820,647 12,365,940 11,280,591 --------- ---------
---------- ---------- Income before income taxes 500,891 1,195,479
2,553,956 4,812,757 Income taxes (67,738) 330,126 303,327 1,309,994
------- ------- ------- --------- Net income $568,629 $865,353
$2,250,629 $3,502,763 ======== ======== ========== ==========
Return on Average Assets 0.58% 0.87% 0.56% 0.91% ==== ==== ====
==== Return on Average Equity 5.58% 9.23% 5.56% 9.57% ==== ====
==== ==== Diluted: Net income per share $0.27 $0.41 $1.06 $1.65
===== ===== ===== ===== Weighted average shares outstanding
2,127,081 2,117,966 2,125,864 2,117,966 ========= =========
========= ========= December 31, September 30, December 31, Balance
Sheet Data 2009 2009 2008 ------------------ -------------
-------------- ------------- Total assets $394,110,149 $395,830,265
$413,076,825 Cash and due from banks 10,303,641 7,552,892 6,951,543
Federal funds sold 58,799 314,942 - Investment securities
146,590,266 152,599,328 170,720,427 Loans, net of UI & loans
held for sale 223,817,377 223,510,893 225,511,297 Loans held for
sale 784,063 764,500 - Allowance for loan losses 2,878,738
2,444,714 2,397,802 Deposits-interest bearing 201,094,816
208,819,093 206,094,593 Deposits-non interest bearing 49,847,304
43,381,549 51,119,827 ---------- ---------- ---------- Total
deposits 250,942,120 252,200,642 257,214,420 Short-term debt
50,389,079 52,087,432 71,717,942 Long-term debt 49,000,000
47,000,000 40,010,824 Stockholders' equity 40,467,889 40,964,944
39,541,069 Book value (per share) $19.03 $19.26 $18.67 Total shares
outstanding 2,126,466 2,126,466 2,117,966 Asset Quality Data
------------------ Non-accrual loans $8,709,058 $6,148,680
$3,567,907 Loans 90+ days past due 1,003,944 1,009,513 517,779
--------- --------- ------- Total non-performing loans 9,713,002
7,158,193 4,085,686 Other real estate owned 815,207 1,177,100
919,204 ------- --------- ------- Total non-performing assets
$10,528,209 $8,335,293 $5,004,890 Total non-performing assets to
average assets 2.62% 2.07% 1.31% Net chargeoffs - ytd $1,939,064
$1,823,088 $763,135 YTD net chargeoffs as a percent of average net
loans 0.87% 0.82% 0.34% DATASOURCE: Britton Koontz Capital Corp.
CONTACT: W. Page Ogden, President & CEO, or William M. Salters,
Treasurer & CFO, +1-601-445-5576, Fax: +1-601-445-2481,
Copyright