Exhibit 99.1
News Release
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CENIT Bancorp, Inc.
Suite 1350, Main Street Tower
300 East Main Street
Norfolk, Virginia 23510-1753
Internet: www.cenit.com
[757] 446-6600
[GRAPHIC_OMITTED]
DATE: April 20, 2001
CONTACT: Michael S. Ives
President and CEO
(757) 446-6600
CENIT REPORTS RECORD EARNINGS PER SHARE
FOR FIRST QUARTER OF 2001
(Norfolk, Virginia) - CENIT Bancorp, Inc. (NASDAQ: CNIT) today
announced first quarter 2001 net income of $1,617,000, or record earnings per
diluted share of $.38, representing an increase of 27% in per share earnings
compared to earnings of $1,389,000, or $.30 per diluted share, in the first
quarter of 2000.
Cash basis operating results, which exclude the amortization of
intangible assets, reflected earnings of $1,684,000, or $.39 per diluted share,
for the first quarter of 2001 compared to $1,457,000 or $.32 for the first
quarter of 2000.
President and Chief Executive Officer Michael S. Ives commented, "We
are very pleased with the Company's performance in the first quarter. The
reductions in mortgage lending rates that occurred at the end of 2000 and
continued in the first quarter of 2001 have fueled our mortgage banking income.
This has also resulted in increases in the average balances of our noninterest
bearing escrow accounts for those of our customers engaged in closing
residential mortgage loans."
During the first quarter of 2001, CENIT continued to successfully
execute its business strategy focused on growth in its checking, savings, and
money market deposits (collectively, "Transaction Deposits") and the portion of
its loan portfolio
(more)
excluding residential mortgage loans (collectively, "Core Banking Loans"). CENIT
increased the balance of its Transaction Deposits by $26.2 million, or 11%, to a
record $265.4 million at March 31, 2001, compared to $239.2 million at March 31,
2000. Average Transaction Deposits for the quarter ended March 31, 2001, were a
record $237.1 million, an increase of 10% compared to $215.1 million for the
quarter ended March 31, 2000. Core Banking Loans increased by $21.0 million, or
8%, at March 31, 2001 to a record $271.0 million compared to the balance of Core
Banking Loans of $250.0 million at March 31, 2000.
Ives commented, "The sustained growth of our Transaction Deposits and
Core Banking Loans is a driving force of our profitability. The 20% increase in
our average noninterest-bearing deposits compared to the first quarter last
year, which amounted to a $12.4 million increase to $74.4 million, is a
significant achievement."
Ives further stated, "Our net interest margin was 3.66% in the first
quarter of 2001 compared to 3.46% in the first quarter of 2000 and 3.59% in the
fourth quarter of 2000. We are seeking to improve our net interest margin
through increases in our Transaction Deposits and restructuring our operations.
During the first quarter of 2001, the Company implemented a program to reduce
nonearning cash balances. Cash balance reductions realized from this program
will not substantially begin until the second quarter of 2001. When fully
implemented, the Company expects to reduce average nonearning cash by as much as
$4 to $5 million, which should enhance our net interest margin in the second
quarter."
In January, 2001, the Company announced approval of additional share
repurchases of up to 200,000 shares, or approximately 4.5% of the outstanding
shares at the beginning of 2001. During the first quarter of 2001, the Company
repurchased 15,100 shares at an average price of $15.58 per share.
Nonperforming assets were $2,442,000, or .37% of total assets at March
31, 2001, compared to $1,680,000 and .27%, respectively, at December 31, 2000
and $1,245,000 and .19%, respectively, at March 31, 2000. The Company's
provision for loan losses for the first quarter of 2001 was $12,000 and net
loans charged-off for
(more)
the first quarter of 2001 were $54,000. The difference between the provision for
loan losses and net loans charged-off relates primarily to loan types in which
the Company is no longer active and for which provisions for loan losses have
previously been made.
Ives also commented on the Company's prospects for 2001: "As we look
ahead to the remainder of 2001, we expect to continue our successful efforts to
grow our Transaction Deposits, particularly our noninterest-bearing deposits,
and our Core Banking Loans in 2001. Our mortgage banking operations should
continue to improve substantially over 2000 as a result of the downward trend in
mortgage lending rates."
About CENIT
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CENIT Bancorp, Inc. is the holding company for CENIT Bank. At March 31,
2001, the Bank has twenty banking offices, including three Super Kmart banking
centers and twenty-six automated teller machines. During the second quarter of
2001, the Company plans to consolidate its two retail branches located in
Hampton, Virginia.
The Bank's Internet Web site, cenit.com, permits customers to engage in
banking services through their personal computer, and provides current and
detailed account information all day, every day. The Bank provides a wide range
of financial services in the Hampton Roads, Virginia market, the sixth largest
MSA in the Southeast. CENIT Bank is the largest community bank headquartered in
this market and is the only community bank serving all six of the market's most
populous cities. CENIT Bank has banking offices in Virginia Beach, Norfolk,
Portsmouth, Chesapeake, Hampton, Newport News, and York County, Virginia.
Safe Harbor Statement
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This News Release contains forward-looking statements with respect to
the goals, plans, objectives, intentions, expectations, financial condition,
results of operations, future performance and business of CENIT, including,
without limitation, statements relating to the earnings outlook of CENIT. These
forward-looking
(more)
statements may be preceded by, followed by or include the words "may", "could",
"would", "should", "believes", "expects", "anticipates", "estimates", "intends",
"plans" or similar expressions. These forward-looking statements involve risks
and uncertainties that are subject to change based on various factors, many of
which are beyond CENIT's control. Some of these factors include (1) the strength
of the U. S. economy in general and the strength of the local economy in which
CENIT conducts its operations, which may be different than expected and which
may result in, among other things, deterioration in credit quality or reduced
demand for credit; (2) the effects of, and changes in, the interest rate
policies of the board of governors of the Federal Reserve system, which may be
different from those anticipated by CENIT in this News Release; (3) legislation
or regulatory changes that adversely affect the businesses in which CENIT is
engaged; (4) changes in accounting principles, practices, policies or
guidelines; and (5) changes in the real estate market generally and in the
markets in which CENIT conducts its operations, which may affect the demand for
mortgages and other real estate-based loans. This News Release, including the
forward-looking statements contained herein, speaks only as of the date hereof,
and CENIT disclaims any obligation to update or revise the statements contained
in this News Release following the date hereof.
##
(Selected Consolidated Financial Data to follow)
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
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At or for the
Three Months
Ended
March 31,
2001 2000
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Income Data
Interest income $ 11,507 $ 11,598
Interest expense 5,971 6,204
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Net interest income 5,536 5,394
Provision for loan losses 12 29
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Net interest income after provision
for loan losses 5,524 5,365
Other income 1,756 1,593
Other expenses 4,714 4,787
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Income before income taxes 2,566 2,171
Provision for income taxes 949 782
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Net income $ 1,617 $ 1,389
=========== ===========
Basic earnings per share (1) $ .38 $ .31
Diluted earnings per share (1) $ .38 $ .30
Cash dividends per share $ .16 $ .15
Average Balance Sheet Data
Loans, net $ 468,095 $ 470,134
Investment securities 250 54,816
Mortgage-backed certificates 123,062 83,241
Interest-earning assets 605,393 624,420
Interest-bearing deposits 402,451 406,287
Borrowings 110,811 136,760
Interest-bearing liabilities 513,262 543,047
Assets 645,033 661,403
Liabilities 593,037 610,279
Noninterest-bearing deposits 74,376 61,964
Stockholders' equity 51,996 51,124
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
1
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
- --------------------------------------------------------------------------------
At or for the
Three Months
Ended
March 31,
2001 2000
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Spread and Margin Analysis
Yield on:
Loans, net 7.90% 7.77%
Investment securities 9.60% 5.66%
Mortgage-backed certificates 6.65% 6.87%
Interest-earning assets 7.60% 7.43%
Cost of:
Interest-bearing deposits 4.48% 4.19%
Borrowings 5.28% 5.69%
Interest-bearing liabilities 4.65% 4.57%
Interest rate spread 2.95% 2.86%
Net interest margin 3.66% 3.46%
Ratios
Return on average assets 1.00% .84%
Return on average stockholders' equity 12.44% 10.87%
Cash Basis Operating Results and Ratios (2)
Net income $ 1,684 $ 1,457
Basic earnings per share $ .40 $ .32
Diluted earnings per share $ .39 $ .32
Return on average tangible assets 1.05% .89%
Return on average tangible equity 13.72% 12.18%
Credit Data
Total nonperforming assets, net $ 2,442 $ 1,245
Total nonperforming assets, net,
to total assets .37% .19%
Allowance for loan losses to loans held for
investment, net .81% .83%
Ratio of net charge-offs to average loans .05% .05%
Net charge-offs $ 54 $ 54
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA
2
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
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At or for the
Three Months
Ended
March 31,
2001 2000
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Other Income and Other Expense Data
Deposit fees $ 740 $ 708
Merchant processing fees 528 511
Gains on sales of loans 294 132
Fees from accounts receivable program 76 78
Loan servicing fees and late charges 65 72
Commercial mortgage brokerage fees 6 -
Other miscellaneous 47 92
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Total other income $ 1,756 $ 1,593
======== =========
Salaries and employee benefits $ 2,154 $ 2,296
Equipment, data processing and supplies 795 808
Net occupancy expense of premises 543 572
Merchant processing 410 391
Professional fees 185 157
Marketing 77 113
Loan processing 120 110
Amortization of intangibles 85 87
Postage 65 63
Federal deposit insurance premiums 23 25
Expense, gains/losses on sales and
provision for losses on real estate
owned, net 5 6
Other miscellaneous 252 159
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Total other expenses $ 4,714 $ 4,787
======== =========
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
3
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
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March 31, December 31, March 31,
2001 2000 2000
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Balance Sheet Data
Cash and federal funds sold $ 32,284 $ 29,550 $ 32,221
Securities available for sale at fair value:
Investment securities (adjusted cost of
$250, $250, and $51,363 respectively) 230 230 50,401
Mortgage-backed certificates (adjusted cost of
$135,137, $98,361, and $84,913 respectively) 136,729 99,032 84,273
Loans, net 466,784 475,052 465,942
Interest receivable 3,709 3,546 4,178
Real estate owned, net 363 - 217
Federal Home Loan Bank stock, at cost 5,700 5,050 6,050
Property and equipment, net 12,837 13,087 13,519
Goodwill and other intangibles, net 2,861 2,946 3,205
Other assets 3,318 3,736 4,123
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Total assets $ 664,815 $ 632,229 $ 664,129
========== ========== ==========
Noninterest-bearing deposits $ 96,535 $ 88,748 $ 71,304
Interest-bearing deposits 408,029 405,736 426,879
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Total deposits 504,564 494,484 498,183
Advances from the Federal Home Loan Bank 88,000 70,000 95,000
Securities sold under agreements to repurchase 15,098 13,369 15,073
Other liabilities 4,341 2,923 4,817
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Total liabilities 612,003 580,776 613,073
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Stockholders' equity(3) 52,812 51,453 51,056
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Total liabilities and stockholders' equity $ 664,815 $ 632,229 $ 664,129
========== ========== ==========
Book value per share (4) $ 12.46 $ 12.11 $ 11.23
Tangible book value per share (4) $ 11.78 $ 11.42 $ 10.52
Common stock outstanding excluding unallocated
common stock held by the Company's
Employee Stock Ownership Plan 4,239,277 4,248,315 4,546,523
Common stock outstanding including unallocated
common stock held by the Company's
Employee Stock Ownership Plan 4,430,171 4,443,271 4,753,663
Closing stock price $ 16.75 $ 12.25 $ 10.19
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
4
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
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March 31, December 31, March 31,
2001 2000 2000
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Loan Data
Loans
First mortgage loans:
Single-family $ 193,206 $ 205,263 $217,205
Multi-family 7,694 7,620 8,529
Commercial real estate 84,626 84,896 82,269
Construction 82,657 78,762 65,089
Acquisition/development and residential lots 21,144 22,829 22,241
Commercial business 44,430 46,780 37,760
Consumer:
Equity and second mortgage 62,112 60,343 57,778
Other consumer 13,064 14,604 14,416
Less: undisbursed portion of construction and
acquisition and development loans (44,725) (46,241) (38,068)
-------------- ------------- --------------
Gross loans 464,208 474,856 467,219
Allowance for loan losses (3,762) (3,804) (3,835)
Unearned discounts, premiums, and
loan fees, net 1,377 1,464 1,442
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Loans held for investment, net 461,823 472,516 464,826
Loans held for sale 4,961 2,536 1,116
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Loans, net $ 466,784 $ 475,052 $ 465,942
============= ============= =============
Percentage of gross loans
First mortgage single-family 42% 43% 46%
All other (Core Banking Loans) 58% 57% 54%
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100% 100% 100%
============= ============= ==============
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
5
CENIT BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
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Average Balances
For the Quarter Ended Balances At
--------------------------------------------------------------------------------
March 31, March 31, December 31, March 31,
2001 2000 2001 2000 2000
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Deposit Data
Deposits
Noninterest-bearing $ 74,376 $ 61,964 $ 96,535 $ 88,748 $ 71,304
Interest-bearing savings,
checking and money
market 162,726 153,151 168,899 162,662 167,881
----------- ----------- ----------- ----------- -----------
Total transaction deposits 237,102 215,115 265,434 251,410 239,185
Certificates of deposit 239,725 253,136 239,130 243,074 258,998
----------- ----------- ----------- ----------- -----------
Total deposits $ 476,827 $ 468,251 $ 504,564 $ 494,484 $ 498,183
=========== =========== =========== =========== ===========
Percentage of deposits
Noninterest-bearing 16% 13% 19% 18% 14%
Interest-bearing savings,
checking and money
market 34% 33% 34% 33% 34%
------ ------ ----- ------ -----
Total transaction deposits 50% 46% 53% 51% 48%
Certificates of deposit 50% 54% 47% 49% 52%
------- ------ ----- ------ -----
Total deposits 100% 100% 100% 100% 100%
====== ====== ===== ====== =====
See NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA.
6
CENIT BANCORP, INC.
NOTES TO SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(1) Basic earnings per share is calculated using weighted average shares
outstanding. For the three month period ended March 31, 2001, weighted
average shares used to compute basic earnings per share were 4,244,087.
For the three months ended March 31, 2000, weighted average shares used
to compute basic earnings per share were 4,543,261.
Diluted earnings per share is calculated by adding common stock
equivalents to the weighted average shares outstanding. For the three
month period ended March 31, 2001, weighted average shares used to
compute diluted earnings per share were 4,301,469. For the three months
ended March 31, 2000, weighted average shares used to compute diluted
earnings per share were 4,599,677.
(2) Cash basis operating results exclude the effect on net income of
amortization expense applicable to intangible assets which include
goodwill and core deposit intangibles. Cash basis operating ratios
exclude the effect of amortization of intangible assets from net income
and the unamortized balances of intangibles from assets and equity.
The Company has presented cash basis operating results and ratios as
management understands that such information is used by many investors
and analysts. Cash basis operating data is not intended to represent
and should not be considered more meaningful than, or as a substitute
for, other measures of performance determined in accordance with
generally accepted accounting principles.
(3) Includes accumulated other comprehensive income (loss), net of income
taxes of $990,000, $403,000 and $(993,000) at March 31, 2001, December
31, 2000 and March 31, 2000, respectively.
(4) Book value per share and tangible book value per share, computed by
including unallocated common stock held by the Company's Employee Stock
Ownership Plan at March 31, 2001 were $11.92 and $11.28, respectively;
at December 31, 2000 were $11.58 and $10.92, respectively; and at March
31, 2000 were $10.74 and $10.07, respectively.
7