EXHIBIT 99
FOR IMMEDIATE RELEASE
For Additional Information Contact:
David B. Barbour, President and Chief Executive Officer
Lisah M. Frazier, Chief Financial Officer and Chief Operating Officer
(606) 326-2800
Fax (606) 326-2801
www.classicbank.com
CLASSIC BANCSHARES, INC. REPORTS EARNINGS FOR ITS THIRD QUARTER 2002 FISCAL YEAR
Ashland, Kentucky, -- January 30, 2002 -- Classic Bancshares, Inc.
(NASDAQ - CLAS) reported net income of $623,000, or $.57 per diluted share for
the third quarter ended December 31, 2001 compared to net income of $320,000, or
$.30 per diluted share for the same period in 2000. Net income for the nine
months ended December 31, 2001 was $1.6 million, or $1.45 per diluted share
compared to $898,000, or $.83 per diluted share for the same period in 2000.
Classic Bancshares experienced growth in assets of $26.5 million from
March 31, 2001 to September 30, 2001. The growth for the period was primarily in
the Company's loan portfolio, which grew approximately $16.9 million, fueled by
strong demand in the Company's market areas. The Company's loan growth was
principally in the commercial real estate, consumer and commercial business
portfolios. The remainder of the asset growth was attributed to an increase in
mortgage-backed and investment securities of approximately $7.0 million due to
and an increase in cash and other interest bearing deposits of $2.6 million.
Asset quality has remained strong as evidenced by total non-performing
assets representing .4% of total assets at December 31, 2001 compared to .5% at
March 31, 2001. The Company recorded a provision for loan losses of $268,000 for
the nine-month period and had net charge-offs of $127,000 for the nine-month
period resulting in an allowance for loan losses of $1.6 million at December 31,
2001. The allowance at December 31, 2001 was equal to 282% of total
non-performing loans, 189% of non-performing assets and 1.0% of total loans
receivable.
President and Chief Executive Officer, David B. Barbour stated that,
"Continued growth in our franchise, improvements in net interest margin,
increases in non interest income and a focus on cost control have resulted in
strong earnings increases. We remain focused on sustaining current earnings
levels while strategically directing franchise growth through additional branch
openings and/or acquisitions."
Net interest income increased for both the quarter and the nine-month
period. Net interest income increased $412,000 for the quarter compared to the
same quarter in 2000 and $691,00 for the nine-month period compared to the same
period in 2000. The increase in net interest income was primarily due to a
decline in the cost of funds combined with sustained interest income levels
created by significant loan growth.
The Company's non-interest income improved for both the three and
nine-month period. Non-interest income increased $120,00 for the quarter
compared to the same quarter in 2000 and $288,000 for the nine-month period
compared to the same period in 2000. Non-interest income increased primarily due
to an increase in fees and service charges on deposit accounts and an increase
in letter of credit fees for the period.
Non-interest expense increased approximately $70,000 for the quarter
ended December 31, 2001 as compared to the same quarter in 2000 and decreased
approximately $26,000 for the nine months ended December 31, 2001 compared to
the same period in 2000. According to Lisah M. Frazier, the Company's Chief
Operating Officer, "Through stringent cost control, we have been able to
translate our margin gains to the bottom line."
Classic Bancshares, Inc. also announced that the Company would pay a
quarterly cash dividend of $.08 per share. The dividend will be payable on
February 11, 2002 to shareholders of record on January 28, 2002.
Classic Bancshares, Inc. is headquartered in Ashland, Kentucky and has
one subsidiary, Classic Bank. Classic Bank operates at 344 Seventeenth Street,
Ashland, Kentucky with six branch offices located in Boyd, Carter, Greenup and
Johnson counties in Kentucky.
When used in this press release, the words or phrases "should result,"
"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 condition 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 such forward-looking statements, which speak only as of
the date made. The Company wishes to advise readers that the factors listed
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 declines 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.
SEE THE FOLLOWING PAGES FOR
SELECTED FINANCIAL DATA
INCLUDED AS PART OF THIS RELEASE
SELECTED FINANCIAL DATA
The following table sets forth selected financial data of Classic
Bancshares, Inc. as of December 31, 2001 and March 31, 2001 and for the three
and nine months ended December 31, 2001 and 2000.
December 31, March 31,
2001 2001
---- ----
SELECTED FINANCIAL CONDITION DATA:
Total Assets $214,329 $187,860
Cash and other interest bearing deposits with other financial
institutions 8,185 5,606
Loan receivable, net 155,766 138,862
Investment securities:
Available for sale 26,879 26,188
Mortgage-backed securities:
Available for sale 9,767 3,445
Goodwill 5,555 5,555
Deposits 164,928 145,430
Federal funds purchased and securities sold under Agreement
to repurchase 4,708 3,180
FHLB advances 21,670 16,636
Stockholders' Equity, subject to certain restrictions 21,377 20,460
Three Months Ended Nine Months Ended
December 31, December 31,
------------ ------------
2001 2000 2001 2000
---- ---- ---- ----
(In Thousands)
SELECTED OPERATIONS DATA:
Total interest income $ 3,423 $ 3,506 $10,310 $10,249
Total interest 1,421 1,916 4,837 5,467
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Net interest income 2,002 1,590 5,473 4,782
Provision for loan losses 127 80 268 203
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Net interest income after provision
for losses on loans 1,875 1,510 5,205 4,579
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Fees and service charges 312 523 900 690
Gain on sale of securities 6 -- 7 --
Other noninterest income 101 46 190 119
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Total noninterest income 419 299 1,097 809
Total noninterest expense 1,444 1,374 4,175 4,201
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Income before income taxes 850 435 2,127 1,187
Income tax expense (benefit) 227 115 547 289
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Net income $ 623 $ 320 $ 1,580 $ 898
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Basic earning per share $ 0.59 $ 0.30 $ 1.50 $ 0.83
Fully diluted earnings per share $ 0.57 $ 0.30 $ 1.45 $ 0.83
At or for the At or for the
Three Months Ended Nine Months Ended
December 31, December 31,
------------ ------------
2001 2000 2001 2000
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OTHER DATA:
Return on average assets (ratio of annualized
net income to total average assets) 1.2% .7% 1.1% .6%
Return on average equity (ration of annualized
net income to total average equity) 11.6 6.5 10.0 6.2
Net interest margin* (FTE) 4.5 4.0 4.3 4.1
Non-performing assets to total assets 0.4 0.7 0.4 0.7
Allowance for loan losses to non-performing loans 281.6 144.3 281.6 144.3
Allowance for loan losses to loans receivable, 1.0 1.0 1.0 1.0
net
Adjusted non-interest expenses/Total revenues** 57.4 66.3 61.0 69.5
Book value per share $19.08 $17.43 $19.08 $17.43
Tangible book value per share $14.12 $12.55 $14.12 $12.55
Total shares outstanding 1,120,336 1,151,956 1,120,336 1,151,956
Number of full service offices 7 6 7 6
Number of ATM locations 18 14 18 14
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* Net interest income (FTE) annualized divided by average earning assets.
* Total revenues = Net interest income (FTE) + non-interest income.