NEWS RELEASE HCB Bancshares, Inc.
Contact: Charles T. Black
Telephone: 870.836.6841
Facsimile: 870.836.2122
FOR IMMEDIATE RELEASE
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HCB BANCSHARES, INC. RELEASES 09-30-03 EARNINGS
CAMDEN, ARKANSAS (November 3, 2003) HCB Bancshares, Inc. (the "Company")
reported net income of approximately $122,000, or 9 cents per basic share and 8
cents per diluted share, for the quarter ended September 30, 2003, according to
Charles T. Black, President and Chief Executive Officer. Net income for the same
quarter last year was $725,000, or 54 cents per basic share and 51 cents per
diluted share.
Black said that one primary reason for the decline from the previous year was a
one-time pretax gain of $743,000 on the sale of the Company's Monticello,
Arkansas branch in July 2002. In addition, net interest income decreased from
$1,711,000 for the quarter ended September 30, 2002 to $1,399,000 for the
quarter ended September 30, 2003, a reduction of $312,000. The general weakness
in the economy was a factor in HCBB's increasing its provision for loan losses
by $30,000 during that period. Non-interest expense for the quarter ended
September 30, 2003 decreased by $106,000 compared to the same quarter the prior
year. Salaries and employee benefits decreased $73,000, occupancy expense
decreased $21,000, advertising decreased $28,000, other expenses decreased
$57,000, data processing expense increased $9,000 and professional fees
increased $64,000.
The $64,000 increase in professional fees relates primarily to consulting and
legal fees associated with the Company's decision to retain a consulting firm to
review all available alternatives to maximize shareholder value. Excluding those
fees, total professional fees would have decreased $36,000 for the period.
In addition, Black stated that in its efforts to reduce overhead, the Company
has reduced its full time equivalent employees from 93 to 73 since September
2002.
HCB Bancshares, Inc. is the parent company of HEARTLAND Community Bank,
headquartered in Camden, with HEARTLAND community banking offices in Bryant,
Camden, Fordyce, and Sheridan, Arkansas.
When used in this News Release, the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project" or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.
HCB BANCSHARES, INC.
Summary of Financial Highlights
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands) September 30, June 30,
2003 2003
(Unaudited)
ASSETS
Cash and cash equivalents $ 8,980 $ 7,207
Investment securities 124,225 129,960
Loans 96,730 100,780
Other assets 12,163 13,078
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Total Assets $ 242,098 $ 251,025
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LIABILITIES
Deposits $ 145,878 $ 151,957
Borrowed money 67,264 69,069
Other liabilities 1,933 1,544
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Total Liabilities 215,075 222,570
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Total Stockholders' Equity 27,023 28,455
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Total Liabilities and
Stockholders' Equity $ 242,098 $ 251,025
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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
(Dollars in thousands except September 30,
per share data) 2003 2002
Interest income $ 3,185 $ 3,972
Interest expense 1,786 2,261
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Net interest income 1,399 1,711
Provision for loan losses 120 90
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Net interest income after provision
for loan losses 1,279 1,621
Total noninterest income 432 1,128
Total noninterest expense 1,647 1,753
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Income before federal income tax
provision 64 996
Income tax (benefit) provision (58) 271
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Net income $ 122 $ 725
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Basic earnings per share $ 0.09 $ 0.54
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Diluted earnings per share $ 0.08 $ 0.51
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