EXHIBIT 99.1
FOR IMMEDIATE RELEASE
[SUPERIOR FINANCIAL CORP LOGO]
April 23, 2002
Subject: Superior Financial Corp. - 1Q 2002 Earnings Release
Corporate Headquarters: 16101 LaGrande Drive, Suite 103, Little Rock, Arkansas
72223
Contacts: Rick D. Gardner, CFO, 501.324.7253
Websites: www.superiorfederal.com or www.superiorfinancialcorp.com
Superior Financial Corp. Announces Record
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First Quarter 2002 Earnings
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LITTLE ROCK, AR - Superior Financial Corp. (NASDAQ: SUFI), holding company of
Superior Bank, today announced earnings for the first quarter ending March 31,
2002, of $3.8 million or $.43 diluted earnings per share. This represents an
increase of 38.7% over the $.31 diluted earnings per share for the first quarter
ending March 31, 2001, as restated.
C. Stanley Bailey, Chairman and CEO of Superior remarked, "Despite a
soft and slowly recovering economy, Superior has continued to experience strong
financial performance. While the slowdown in the economy has certainly affected
loan growth and fee revenues, we are pleased with the interest margin expansion
and the 13.5% increase in our transaction account deposits. In the second
quarter, we will continue to manage credit quality aggressively and cultivate
new banking relationships.
-More-
Superior Financial Corp.
1Q2002 Earnings Release
April 23, 2002
Page 2 of 5
As of January 1, 2002, the Company adopted Statement of Financial
Accounting Standards No. 142 "Goodwill and Other Intangible Assets" ("SFAS
142"). If SFAS 142 had been effective for the three months ended March 31, 2001,
net income would have been $3.5 million and diluted earnings per share would
have been $.38, as restated.
As of March 31, 2002 total assets are $1.75 billion. Net interest
margin was 3.82%, an increase of 72 basis points from 3.10% in the first quarter
of 2001. Deposits increased $35.3 million or 2.9% since December 31, 2001.
Strong growth in interest-bearing transaction accounts offset a decrease in time
deposits. Total loans decreased $25.5 million or 2.4% since December 31, 2001,
primarily due to declines in the mortgage and indirect auto loan portfolio.
As previously announced, the Company will pay a dividend of $.10 per
share on April 24, 2002 to shareholders of record on March 28, 2002.
Superior Bank has 60 full service branch and loan production
offices in Arkansas and Oklahoma. The bank has three active subsidiaries -
Superior Financial Services, Inc., providing discount brokerage and full service
investment advisory services, Southwest Protective Life Insurance Company and
Superior Finance Company, a consumer finance operation. Superior Financial Corp.
stock is traded on the NASDAQ National Market under the symbol SUFI.
Pursuant to the Safe Harbor provisions of Private Securities
Litigation Reform Act of 1995, the reader is cautioned that this announcement
contains "forward looking statements" regarding Superior's future performance
which are subject to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such statements.
Superior Financial Corp.
1Q02 Earnings Release
April 23, 2002
Page 3 of 5
Superior Financial Corp.
Consolidated Balance Sheets
(Unaudited, dollars in thousands)
March 31, December 31, %
Assets 2002 2001 Change
------------- ------------- -----------
Cash and cash equivalents $ 147,556 $ 97,561 51.2%
Loans available for sale 33,138 27,573 20.2%
Loans 1,047,310 1,072,846 (2.4%)
Less: allowance for loan losses 12,175 12,109 0.5%
------------- ------------- ----------
Loans, net 1,035,135 1,060,737 (2.4%)
Investments available for sale, net 378,254 374,819 0.9%
Federal Home Loan Bank Stock 17,458 17,330 0.7%
Premises and equipment, net 46,925 45,263 3.7%
Goodwill 56,260 56,260 -
Other assets 37,619 41,075 (8.4%)
------------- ------------- ----------
Total assets $ 1,752,345 $1,720,618 1.8%
============= ============= ==========
Liabilities and shareholders' equity
Liabilities:
Demand & savings deposits $ 642,516 $ 566,341 13.5%
Time deposits 607,828 648,693 (6.3%)
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Total deposits 1,250,344 1,215,034 2.9%
------------- ------------- ----------
Federal Home Loan Bank borrowings 223,000 230,000 (3.0%)
Senior Notes 51,500 51,500 -
Guaranteed preferred beneficial interest in
the Company's subordinated debentures 25,000 25,000 -
Other borrowings 62,218 65,557 (5.1%)
Other liabilities 19,315 14,117 36.8%
------------- ------------- -----------
Total liabilities 1,631,377 1,601,208 1.9%
Shareholders' equity:
Common stock 101 101 -
Capital in excess of par value 94,764 94,764 -
Retained earnings 44,235 41,290 7.1%
Accumulated other comprehensive (loss) income (309) 1,577 (119.6%)
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138,791 137,732 0.8%
Treasury stock (at cost) (17,823) (18,322) (2.7%)
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Total shareholders' equity 120,968 119,410 1.3%
------------- ------------- -----------
Total liabilities and shareholders' equity $ 1,752,345 $1,720,618 1.8%
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Superior Financial Corp.
1Q02 Earnings Release
April 23, 2002
Page 4 of 5
Superior Financial Corp.
Consolidated Income Statements
(Unaudited, dollars in thousands, except per share amounts)
Quarter
Quarter Ended
Ended March 31,
March 31, 2001 %
2002 (as restated) Change
------------- ---------------- -----------
Interest income $ 26,919 $ 28,515 (5.6%)
Interest expense 12,956 17,420 (25.6%)
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Net interest income 13,963 11,095 25.8%
Provision for loan losses 1,250 750 66.7%
------------- ---------------- -----------
Net interest income after provision for loan losses 12,713 10,345 22.9%
Noninterest income:
Service charges on deposit accounts 6,576 6,868 (4.3%)
Mortgage operations 674 818 (17.6%)
Other 950 784 21.2%
------------- ---------------- -----------
Total noninterest income 8,200 8,470 (3.2%)
Noninterest expense:
Salaries and employee benefits 7,501 6,883 9.0%
Occupancy expense 1,174 1,037 13.2%
Data and item processing 1,909 1,841 3.7%
Amortization of goodwill - 867 (100%)
Other 4,723 3,942 19.8%
------------- ---------------- -----------
Total noninterest expense 15,307 14,570 5.1%
Income before income taxes 5,606 4,245 32.1%
Income taxes 1,816 1,357 33.8%
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Net income $ 3,790 $ 2,888 31.2%
============= ================ ===========
Weighted average number of common shares - basic 8,593 9,051
Dilutive potential common shares 228 145
Weighted average number of shares - assuming dilution 8,821 9,196
Basic earnings per common share $ 0.44 $ 0.32 37.5%
Diluted earnings per common share $ 0.43 $ 0.31 38.7%
Note: Certain amounts in the prior period financial statements have been reclassified to conform to
the current period presentation.
Superior Financial Corp.
1Q02 Earnings Release
April 23, 2002
Page 5 of 5
Superior Financial Corp.
Summary Financial Data
(Unaudited, dollars in thousands, except per share amounts)
Three Months Ended
March 31,
March 31, 2001
2002 (as restated)
------------------ ------------------
Selected Average Balances
Total assets $ 1,712,507 $ 1,640,074
Earning assets 1,545,722 1,478,459
Loans 1,058,746 1,072,216
Shareholders' equity 120,995 114,305
Performance Ratios (Company)
Return on average assets 0.90% 0.71%
Return on average common equity 12.71% 10.25%
Net interest margin (FTE) 3.82% 3.10%
Efficiency ratio (without goodwill amortization) 68.46% 69.37%
Performance Ratios (Bank)
Return on average assets 1.19% 0.98%
Return on average common equity 11.43% 9.29%
Net interest margin (FTE) 4.13% 3.51%
Efficiency ratio (without goodwill amortization) 62.29% 64.78%
Tax-equivalent interest income adjustment 412 313
Asset Quality
Nonaccrual loans $ 10,369 $ 4,139
ORE & repossessed assets 2,879 1,084
Net chargeoffs 1,182 710
Nonperforming assets to total loans and other real estate 1.26% 0.49%
Nonperforming assets to total assets 0.76% 0.31%
Net chargeoffs to average loans 0.45% 0.26%
Allowance for loan losses to total loans 1.16% 1.14%
Allowance for loan losses to nonperforming loans 117% 293%
Capital
End of period shares outstanding 8,600,626 9,051,900
Book value per share $ 14.06 $ 13.10
Average stockholders' equity to average total assets 7.07% 6.97%
Tangible capital ratio 5.27% 3.54%