PRESS RELEASE - APRIL 25, 2003 FOR IMMEDIATE RELEASE
1ST STATE BANCORP, INC. FOR MORE INFORMATION CONTACT:
JAMES C. McGILL
(336) 227 - 8861
1ST STATE BANCORP, INC. ANNOUNCES INCREASED EARNINGS
BURLINGTON, NORTH CAROLINA 1ST STATE BANCORP, INC. (NASDAQ: FSBC)
1st State Bancorp, Inc. (Nasdaq: FSBC), the holding company for 1st State Bank,
has reported increased earnings for the quarter ended March 31, 2003. Net income
for the quarter ended March 31, 2003 increased 7.8% to $997,000, from net income
of $925,000 earned in the quarter ended March 31, 2002. Basic earnings per share
increased $0.04 per share or 12.9% to $0.35 per share for the quarter ended
March 31, 2003, from $0.31 per share for the quarter ended March 31, 2002.
Diluted earnings per share increased $0.05 per share or 17.2% to $0.34 per share
for the quarter ended March 31, 2003 from $0.29 per share for the quarter ended
March 31, 2002.
Net income for the six months ended March 31, 2003 increased 11.9% to
$1,980,000, from net income of $1,770,000 earned in the six months ended March
31, 2002. Basic earnings per share increased $0.11 per share or 18.6% to $0.70
per share for the six months ended March 31, 2003, from $0.59 per share for the
quarter ended March 31, 2002. Diluted earnings per share increased $0.11 per
share or 19.6% to $0.67 per share for the six months ended March 31, 2003 from
$0.56 per share for the same period in the prior year.
The Company's net interest spread increased 8 basis points to 3.21% for the
quarter ended March 31, 2003 from the 3.13% for the quarter ended March 31,
2002, reflecting the effect of a decrease in the cost of funds that more than
offset the decrease in the average yield on earning assets. The average prime
rate for the quarter ended March 31, 2003 was 4.25% compared with an average
prime rate of 4.75% for the quarter ended March 31, 2002 .
At March 31, 2003, 1st State Bancorp, Inc. had total assets of $347 million,
deposits of $259 million and stockholders' equity of $62.4 million. The book
value per share of common stock was $20.96 per share at March 31, 2003.
1st State Bancorp, Inc., through its subsidiary 1st State Bank, currently
services its customers from seven full service banking offices in Alamance
County.
This press release contains statements that are forward-looking, as that term is
defined by the Private Securities Litigation Act of 1995 or the Securities and
Exchange Commission in its rules, regulations, and releases. The Company intends
that such forward-looking statements are based on current expectations regarding
important risk factors including, but not limited to, the impact of interest
rates on financing issues. Accordingly, actual results may differ from those
expressed in the forward-looking statements, and the making of such statements
should not be regarded as a representation by the Company or any other person
that results expressed therein will be achieved.
1ST STATE BANCORP, INC. (NASDAQ: FSBC)
SUMMARY OF FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL DATA: MARCH 31, SEPTEMBER 30,
(IN THOUSANDS - UNAUDITED) 2003 2002
---- ----
Total assets $347,007 $350,469
Loans receivable, net 223,903 220,047
Loans held for sale 4,151 6,798
Investment securities 73,029 89,686
Cash and cash equivalents 31,425 18,865
Deposit accounts 258,806 260,667
Advances from Federal Home Loan Bank 20,000 20,000
Dividend payable 298 241
Total stockholders' equity 62,411 61,569
SELECTED OPERATING DATA: THREE MONTHS ENDED SIX MONTHS ENDED
(IN THOUSANDS - UNAUDITED) 3/31/2003 3/31/2002 3/31/2003 3/31/2002
--------- --------- --------- ---------
Interest income $ 4,397 4,936 8,964 10,153
Interest expense 1,445 1,964 3,012 4,335
------- ------- ------- -------
Net interest income 2,952 2,972 5,952 5,818
Provision for loan losses 60 60 120 120
------- ------- ------- -------
Net interest income after
provision for loan losses 2,892 2,912 5,832 5,698
Non-interest income 894 775 1,688 1,618
Non-interest expense 2,204 2,249 4,384 4,506
------- ------- ------- -------
Income before taxes 1,582 1,438 3,136 2,810
Income tax expense 585 513 1,156 1,040
------- ------- ------- -------
Net income 997 925 1,980 1,770
======= ======= ======= =======
PER SHARE DATA: THREE MONTHS ENDED SIX MONTHS ENDED
(UNAUDITED) 3/31/2003 3/31/2002 3/31/2003 3/31/2002
--------- --------- --------- ---------
Basic earnings per share $ 0.35 $ 0.31 $ 0.70 $ 0.59
Diluted earnings per share 0.34 0.29 0.67 0.56
Average shares outstanding - basic 2,816,021 3,023,929 2,815,831 3,019,581
Average shares outstanding - diluted 2,938,298 3,152,848 2,940,269 3,149,403
Cash dividends per share $ 0.10 $ 0.08 $ 0.18 $ 0.16
Book value at March 31 $ 20.96 $ 19.59
Shares outstanding at March 31 2,977,789 3,289,607
INTEREST MARGIN THREE MONTHS ENDED SIX MONTHS ENDED
(% OF AVERAGE ASSETS - UNAUDITED) 3/31/2003 3/31/2002 3/31/2003 3/31/2002
--------- --------- --------- ---------
Yield on interest earning assets 5.39% 6.10% 5.51% 6.24%
Cost of interest bearing liabilities 2.18% 2.97% 2.29% 3.28%
Interest rate spread 3.21% 3.13% 3.22% 2.96%
Net interest income as a percentage of average
interest earning assets 3.62% 3.67% 3.66% 3.58%
ASSET QUALITY MARCH 31, MARCH 31,
(UNAUDITED) 2003 2002
--------- ---------
Allowance for loan losses to gross loans -
(excluding loans held for sale) 1.69% 1.70%
Nonperforming assets to total assets 1.32% 1.16%