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EXHIBIT 99.1
DUTCHFORK BANCSHARES, INC. ANNOUNCES THIRD QUARTER EARNINGS
NEWBERRY, S.C.-(BUSINESS WIRE)-Aug. 13, 2004 - DutchFork Bancshares, Inc.
(Nasdaq:DFBS-News) announced a loss of $(651,263) for the third quarter ending
June 30, 2004 compared to earnings of $1,058,722 for the third quarter of fiscal
2003. The loss resulted from $428,733 in expenses related to the proposed merger
with First Community Corporation and a loss of $307,000 on the sale of a $3.1
million loan that the Company determined to sell in order to conform its loan
portfolio more closely with the loan portfolio of First Community Corporation.
Basic earnings (loss) per share were $(0.65) for the third quarter ending June
30, 2004 compared to $1.07 for the comparable period in 2003.
Net interest income after provisions for loan losses for the third quarter of
fiscal 2004 was $1,049,134 compared to $1,822,599 for the same period of 2003.
Total interest income was $2,035,491 for the three months ended June 30, 2004, a
$950,613 decrease from the same period in 2003. Interest expense for the third
quarter of 2004 was $964,920, a decrease of $168,625 from the same period of
2003. These decreases were primarily due to a decrease in rates received and
rates paid.
Non-interest income for the third quarter of fiscal 2004 was $286,103
representing a decrease of $428,184 from the $714,967 posted in the same quarter
of 2003. The decrease in non-interest income is mainly due to a decrease of
$367,077 in gains on sales of securities.
Non-interest expense for the quarter ending June 30, 2004 was $2,070,518
compared to $1,192,780 for the same period of 2003. the increase of $877,738 was
largely due to $428,733 of expenses associated with the merger and a $307,000
loss on the sale of a $3.1 million loan.
Net income for the nine months ended June 30, 2004 decreased by $1,982,586 to
$528,156 when compared to the same period for the prior year. Net interest
income, after the provision for loan losses, increased by $258,015, and
non-interest income decreased by $1,801,251. The decrease in non-interest income
was primarily due to gains on the sales of securities during the nine-month
period ended June 30, 2004, declining to $668,552 from $2,312,374. Non-interest
expense increased by $907,439 for the nine months ended June 30, 2004 due to
$428,733 of expenses associated with the merger and a $307,000 loss on the sale
of a $3.1 million loan.
At June 30, 2004, total assets were $202,889,457 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 gain of $397,615 (after taxes) during the three months
ended June 30, 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 NINE MONTHS ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
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Interest income $ 2,035 $ 2,986 $ 7,542 $ 7,997
Interest expense 965 1,133 3,027 3,778
Net interest income 1,070 1,853 4,515 4,221
Provision for loan losses 21 30 206 170
Net interest income after provision
for loan losses 1,049 1,823 4,309 4,051
Non-interest income 286 715 1,253 3,055
Non-interest expense 2,070 1,193 4,959 4,052
Income (loss) before taxes (735) 1,345 603 3,054
Income tax expense (benefit) (84) 286 75 543
Net income (loss) (651) 1,059 528 2,511
INCOME PER SHARE (BASIC) $ (0.65) $ 1.07 $ 0.53 $ 2.43
INCOME PER SHARE (DILUTED) $ (0.61) $ 1.01 $ 0.50 $ 2.30
RETURN ON AVERAGE ASSETS (0.31)% 0.49% 0.24% 1.14%
RETURN ON AVERAGE EQUITY (2.14)% 4.09% 1.81% 8.60%
NET INTEREST MARGIN 2.22 % 3.71% 2.95% 2.79%
BALANCE SHEET DATA
(Dollars in thousands, except per share data)
JUNE 30, SEPTEMBER 30,
2004 2003
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Total assets $ 202,889 $ 235,053
Investment securities 138,352 162,165
Loans 51,272 58,371
Allowance for loan losses 478 401
Total deposits 135,242 143,429
Other borrowings 35,795 57,613
Shareholders' equity 30,940 32,558
Equity to assets 15.26% 13.85%
Loan to deposit ratio 37.91% 40.70%
NON-PERFORMING LOANS TO ASSETS 0.04% 0.42%
AVERAGE BALANCES
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
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Average total assets $ 205,545 $ 215,646 $ 218,790 $ 219,438
Average loans 53,257 59,266 55,742 59,805
Average earning assets 192,766 199,943 204,260 201,655
Average deposits 139,250 148,572 141,080 151,129
Average other short-term borrowings 35,802 35,000 43,366 35,000
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Contact:
DutchFork Bancshares, Inc.
J. Thomas Johnson or Steve P. Sligh, 803-321-3200