Exhibit 99
[Logo of MountainBank Financial Corporation]
News Release
Date: | Friday July 11, 2003 | |
Contact: | J. W. Davis, President and Chief Executive Officer | |
| MountainBank Financial Corporation | ||
| (828) 693-7376 | ||
Release Date: | For Immediate Release | |
MOUNTAINBANK FINANCIAL CORPORATION REPORTS RECORD EARNINGS
HENDERSONVILLE N.C., July 11 / PR Newswire / – MountainBank Financial Corporation(Nasdaq SmallCap Market: MBFC) today announced record earnings during the second quarter of 2003. During the period, the Company’s net income rose 1.5% to $1.69 million as compared with $1.67 million during the second quarter of 2002. Earnings per diluted share amounted to $0.42 during the quarter, a decline of $0.02 as compared with the second quarter of 2002 resulting from the issuance of additional shares relating to the acquisition of TrustCo Holding, Inc. in December of 2002 and CNB Holdings, Inc. during May 2003. Earnings for the six months ended June 30, 2003 increased $138 thousand or 4.3% to $3.34 million as compared with $3.21 million during the same period in 2002. Diluted earnings per share amounted to $0.83 for the first half of 2003, equaling the $0.83 per share earned during the first half of 2002. Additionally, the Company reported total assets, loans and deposits at June 30, 2003 of $959.6 million, $749.4 million and $789.0 million, respectively.
In announcing these results, J.W. Davis, president and chief executive officer said, “I am quite pleased to report record earnings during the second quarter of 2003, but what is more gratifying is the quality of our earnings. In the current uncertain economic times, the Company’s asset quality showed improving trends as we experienced net loan recoveries during the period. We believe this to be a very positive indicator of the sound, high quality asset base we have created.”
Additional summary financial information follows on the accompanying pages:
201 Wren Drive – Hendersonville – North Carolina – 28792
828-693-7376 Fax: 828-693-6649
MountainBank Financial Corporation
Summary of Financial Highlights
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
Summary of Operations | ||||||||||||||||
Net income | 1,692 | 1,667 | 3,344 | 3,206 | ||||||||||||
Preferred stock dividends declared | 148 | 151 | 299 | 151 | ||||||||||||
Net income available to common shareholders | 1,544 | 1,516 | 3,045 | 3,055 | ||||||||||||
Interest income | 12,712 | 10,924 | 25,305 | 21,402 | ||||||||||||
Interest expense | 4,851 | 4,439 | 9,789 | 8,732 | ||||||||||||
Net interest income | 7,861 | 6,485 | 15,516 | 12,670 | ||||||||||||
Provision for loan losses | 1,062 | 950 | 2,437 | 2,250 | ||||||||||||
Non-interest income | 2,394 | 1,479 | 4,734 | 2,922 | ||||||||||||
Non-interest expense | 6,458 | 4,299 | 12,413 | 7,963 | ||||||||||||
Income tax expense | 1,043 | 1,048 | 2,056 | 2,173 | ||||||||||||
Earnings Information and Per Share Data | ||||||||||||||||
Basic earnings per share | $ | 0.46 | $ | 0.49 | $ | 0.93 | $ | 0.98 | ||||||||
Diluted earnings per share | $ | 0.41 | $ | 0.43 | $ | 0.83 | $ | 0.83 | ||||||||
Book value per common share | $ | 15.85 | $ | 12.13 | $ | 15.85 | $ | 12.13 | ||||||||
Tangible book value per common share | $ | 11.96 | $ | 11.28 | $ | 11.96 | $ | 11.28 | ||||||||
Closing market price | $ | 31.57 | $ | 24.00 | $ | 31.57 | $ | 24.00 | ||||||||
Other Share Information | ||||||||||||||||
Weighted average shares outstanding – basic | 3,354,550 | 3,125,237 | 3,283,286 | 3,118,652 | ||||||||||||
Weighted average shares outstanding – diluted | 4,119,861 | 3,891,905 | 4,050,847 | 3,885,320 | ||||||||||||
End of period shares outstanding | 3,532,680 | 3,132,586 | 3,532,680 | 3,132,586 | ||||||||||||
Selected Key Data | ||||||||||||||||
Efficiency ratio | 62.97 | % | 53.98 | % | 61.30 | % | 51.07 | % | ||||||||
Return on average assets | 0.76 | % | 1.05 | % | 0.78 | % | 1.07 | % | ||||||||
Return on average equity | 11.47 | % | 14.14 | % | 11.94 | % | 14.64 | % | ||||||||
| June 30, 2003 | December 31, 2002 | |||
Balance Sheet Information | ||||
Total assets | 959,116 | 841,140 | ||
Cash and due from banks | 20,982 | 10,229 | ||
Investment securities | 86,623 | 77,477 | ||
Loans, gross | 749,357 | 677,624 | ||
Loans held for sale | 23,155 | 32,857 | ||
Allowance for loan losses | 12,163 | 11,192 | ||
Intangible assets | 13,726 | 4,244 | ||
Non-interest bearing deposits | 76,292 | 64,607 |
201 Wren Drive – Hendersonville – North Carolina – 28792
828-693-7376 Fax: 828-693-6649
Interest bearing deposits | 712,735 | 612,662 | ||||
Other interest-bearing liabilities | 99,026 | 106,132 | ||||
Shareholders equity | 65,521 | 52,468 | ||||
Asset Quality Information | ||||||
Non-accrual loans, OREO and repossessed property | 6,334 | 3,739 | ||||
Accruing loans 90 days or more past due | 22 | 18 | ||||
Total nonperforming assets | 6,356 | 3,757 | ||||
Nonperforming assets to total assets | 0.66 | % | 0.45 | % | ||
Allowance for loan losses to nonperforming assets | 191.36 | % | 297.90 | % | ||
Allowance for loan losses to total loans | 1.57 | % | 1.58 | % | ||
Allowance to loans excluding loans held for sale | 1.62 | % | 1.65 | % | ||
Accruing loans 30 to 89 days past due | 7,228 | 9,999 | ||||
Loans charged off YTD | 2,205 | 1,449 | ||||
Recoveries YTD | 242 | 227 | ||||
Net charge-offs YTD to total loans | 0.25 | % | 0.17 | % | ||
Allowance for loan losses to net charge-offs YTD | 619.61 | % | 915.88 | % | ||
SOURCE: MountainBank Financial Corporation
MountainBank Financial Corporation’s stock currently trades on the NASDAQ SmallCap market under the symbol MBFC. MountainBank, one of the fastest growing community banks in the Carolinas, currently operates nineteen full service offices in eleven western North Carolina counties. The company also offers trust, wealth management and mortgage services through subsidiaries in Greenville and Greenwood, South Carolina.
Forward-Looking Statements
This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the company’s results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute our business plan, items already mentioned in this press release, and other factors described in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s judgment only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date hereof.
+++End of Release+++
201 Wren Drive – Hendersonville – North Carolina – 28792
828-693-7376 Fax: 828-693-6649
