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DUTCHFORK BANCSHARES, INC. THIRD QUARTER EARNINGS
Friday August 1, 11:32 am ET
NEWBERRY, S.C.--(BUSINESS WIRE)--Aug. 1, 2003--DutchFork Bancshares, Inc.
(Nasdaq SmallCap: DFBS - News) announced earnings of $1,058,722 for the third
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quarter ending June 30, 2003 compared to earnings of $618,251 for the third
quarter of fiscal 2002.
Basic earnings per share were $1.07 for the third quarter ending June 30, 2003
compared to $.54 for the comparable period in 2002.
Net interest income after provisions for loan losses for the third quarter of
fiscal 2003 was $1,822,559 compared to $1,561,317 for the same period of 2002.
The increase in net interest income after provisions for loan losses is
primarily due to lower funding costs. Total interest income was $2,986,104 for
the three months ended June 30, 2003, a $155,567 decrease from the same period
in 2002 primarily due to decreased assets and the lower interest rate
environment. Interest expense for the third quarter of 2003 was $1,133,545, a
decrease of $446,809 from the same period of 2002. The decrease in interest
expense is primarily due to reduced funding costs.
Non-interest income for the third quarter of fiscal 2003 was $714,967
representing an increase of $110,799 from the $604,168 posted in the same
quarter of 2002. The increase in non-interest income is largely due to an
increase of $67,581 in gains on sales of securities.
Non-interest expense for the quarter ending June 30, 2003 was $1,192,780
compared to $1,198,295 for the same period of 2002.
Net income for the nine months ended June 30, 2003 increased by $762,862 to
$2,510,744 when compared to the same period for the prior year. Net interest
income, after the provision for loan losses, decreased by $689,859, and
non-interest income increased by $1,312,952. The increase in non-interest income
was primarily due to gains on the sales of securities during the nine-month
period ended June 30, 2003.
At June 30, 2003, total assets were $213,122,363 compared to $219,092,089 at
September 30, 2002.
Other comprehensive income resulting from the mark-to-market of investments
available-for-sale was a loss of $1,236,148 (after taxes) during the three
months ended June 30, 2003, due to declining interest rates and the decrease in
the market value of these investments.
DutchFork Bancshares, Inc. is the holding company for Newberry Federal Savings
Bank, which operates three banking locations in Newberry County, South Carolina.
The company is listed on the Nasdaq SmallCap exchange under the symbol "DFBS".
This release may contain forward-looking statements that are based on
assumptions and describe future plans, strategies and expectations of DutchFork
Bancshares and its wholly owned subsidiary, Newberry Federal. These forward
looking statements are generally identified by use of the words "believe",
"expect", "intend", "anticipate", "estimate", "project", or similar expressions.
DutchFork Bancshares and Newberry Federal's ability to predict results or the
actual effect of future plans or strategies is inherently uncertain. Factors
which could have a material adverse effect on the operations of DutchFork
Bancshares and Newberry Federal include, but are not limited to, changes in
interest rates, general economic conditions, legislative/regulatory changes,
monetary and fiscal policies of the U.S. Reserve Board, the quality and
composition of the loan or investment portfolios, demand for loan products,
deposits flow, competition, demand for financial services in DutchFork
Bancshares' and Newberry Federal's market area and accounting principles. These
risks and uncertainties should be considered in evaluating forward looking
statements and undue reliance should not be placed on such statements. Except as
required by law or regulation, the Company disclaims any obligation to update
such forward-looking financial statements.
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INCOME STATEMENT DATA
(UNAUDITED) (Dollars in thousands)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
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Interest income $2,986 $3,142 $7,997 $9,972
Interest expense 1,133 1,581 3,776 5,231
Net interest income 1,853 1,561 4,221 4,741
Provision for loan losses 30 170
Net interest income after provision
for loan losses 1,823 1,561 4,051 4,741
Non-interest income 715 604 3,055 1,741
Non-interest expense 1,193 1,198 4,052 3,793
Income before taxes 1,345 967 3,054 2,689
Income tax expense 286 349 543 941
Net income 1,059 618 2,511 1,748
Income Per Share (Basic) $ 1.07 $ .54 $ 2.43 $ 1.53
Income Per Share (Diluted) $ 1.01 $ .52 $ 2.30 $ 1.48
Return On Average Assets 1.96% 1.03% 1.53% 0.94%
Return On Average Equity 16.38% 7.38% 11.47% 7.09%
Net Interest Margin 3.71% 2.73% 2.79% 2.69%
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
JUNE 30, SEPTEMBER 30,
2003 2002
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Total assets $ 213,122 $ 219,092
Investment securities 124,127 129,723
Loans 59,014 61,706
Allowance for loan losses 569 424
Total deposits 145,835 149,290
Other borrowings 35,000 35,000
Shareholders' equity 31,304 33,477
Equity to assets 14.69% 15.28%
Loan to deposit ratio 40.47% 41.33%
Non-performing loans to assets 0.55% 0.35%
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AVERAGE BALANCES
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
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Average total assets $ 215,646 $ 245,429 $ 219,438 $ 248,581
Average loans 59,266 64,579 59,805 68,576
Average earning assets 199,943 228,734 201,655 234,563
Average deposits 148,572 147,394 151,129 147,812
Average other short-term borrowings 35,000 60,000 35,000 62,932
CONTACT:
DutchFork Bancshares, Inc.
J. Thomas Johnson or Steve P. Sligh, 803-321-3200