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EXHIBIT 99.1
PRESS RELEASE
DUTCHFORK BANCSHARES, INC.
SECOND QUARTER EARNINGS
NEWBERRY, S.C. - (BUSINESS WIRE) - May 7, 2004 - DutchFork Bancshares, Inc.
(NASDAQ: DFBS-News) announced earnings of $458,206 for the second quarter ending
March 31, 2004 compared to earnings of $885,581 for the second quarter of fiscal
2003.
Basic earnings per share were $.46 for the second quarter ending March 31, 2004
compared to $.85 for the comparable period in 2003.
Net interest income after provisions for loan losses for the second quarter of
fiscal 2004 was $1,306,676 compared to $884,768 for the same period of 2003.
Total interest income was $2,483,902 for the three months ended March 31, 2004,
a $192,543 increase from the same period in 2003. Interest expense for the
second quarter of 2004 was $992,226, a decrease of $274,365 from the same period
of 2003.
Non-interest income for the second quarter of fiscal 2004 was $700,473
representing a decrease of $991,091 from the $1,691,564 posted in the same
quarter of 2003. The decrease in non-interest income is mainly due to a decrease
of $941,143 in gains on sales of securities.
Non-interest expense for the quarter ending March 31, 2004 was $1,478,985
compared to $1,505,872 for the same period of 2003.
Net income for the six months ended March 31, 2004 decreased by $272,603 to
$1,179,419 when compared to the same period for the prior year. Net interest
income, after the provision for loan losses, increased by $1,031,440, and
non-interest income decreased by $1,372,387. The decrease in non-interest income
was primarily due to gains on the sales of securities during the six-month
period ended March 31, 2003, declining to $577,084 from $1,853,829.
At March 31, 2004, total assets were $207,049,385 compared to $235,053,359 at
September 30, 2003.
Other comprehensive income resulting from the mark-to-market of investments
available-for-sale was a loss of $1,879,081 (after taxes) during the three
months ended March 31, 2004, 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".
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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 works "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 SIX MONTHS ENDED
MARCH 31, MARCH 31,
2004 2003 2004 2003
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Interest income $ 2,484 $ 2,291 $ 5,507 $ 5,011
Interest expense 992 1,267 2,062 2,643
Net interest income 1,492 1,025 3,445 2,368
Provision for loan losses 185 140 185 140
Net interest income after provision
for loan losses 1,307 885 3,260 2,228
Non-interest income 700 1,692 967 2,340
Non-interest expense 1,479 1,506 2,888 2,859
Income before taxes 528 1,071 1,339 1,709
Income tax expense 70 185 159 257
Net income 458 886 1,180 1,452
INCOME PER SHARE (BASIC) $ .46 $ .85 $ 1.19 $ 1.38
INCOME PER SHARE (DILUTED) $ .43 $ .81 $ 1.11 $ 1.31
RETURN ON AVERAGE ASSETS 0.85% 1.61% 1.04% 1.31%
RETURN ON AVERAGE EQUITY 6.20% 12.03% 7.83% 9.41%
NET INTEREST MARGIN 2.99% 2.06% 3.28% 2.33%
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
MARCH 31, SEPTEMBER 30,
2004 2003
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Total assets $ 207,049 $ 235,053
Investment securities 133,542 162,165
Loans 55,136 58,371
Allowance for loan losses 395 401
Total deposits 139,984 143,429
Other borrowings 35,000 57,613
Shareholders' equity 30,102 32,558
Equity to assets 14.53% 13.85%
Loan to deposit ratio 39.39% 40.70%
NON-PERFORMING LOANS TO ASSETS 0.23% 0.42%
AVERAGE BALANCES
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
2004 2003 2004 2003
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Average total assets $ 214,534 $ 220,050 $ 225,413 $ 221,335
Average loans 56,525 58,915 56,984 60,074
Average earning assets 199,503 198,598 210,007 202,512
Average deposits 143,625 151,452 141,995 152,408
Average other short-term borrowings 40,322 35,000 50,148 35,000
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Contact:
Dutchfork Bancshares, Inc.
J. Thomas Johnson or Steve P. Sligh, 803-321-3200