EXHIBIT 99.(f)(4)
TC [LOGO]
Tri-County Bancorp, Inc.
PRESS RELEASE October 20, 1998
For more information, contact:
Robert L. Savage, President
Tri-County Bancorp, Inc.
2201 Main Street, P.O. Box 1057
Torrington, WY 82240
Third Quarter 1998 Earnings
Robert L. Savage, President of Tri-County Bancorp, Inc. Torrington, Wyoming,
parent company of Tri-County Federal Savings Bank, Torrington, Wyoming,
announced today earnings of $246,000 for the third quarter and earnings of
$705,000 for the nine-month period ending September 30, 1998. Year-to-date
earnings per share were $0.56 compared to $0.53 in 1997. Third quarter earnings
were 16.6% higher than for the same period last year. The increase was
attributed to an increase in non-interest income from higher loan fees and a net
gain on securities sold. Additionally, non-interest expense decreased slightly
and net interest income was affected negatively to a small extent by reduced
rates on earning assets. Earnings per share increased for the third quarter to
$0.20, an increase of 17.6% as compared to the same quarter last year.
Year-to-date earnings are ahead of 1997 by $22,000 or 3.2%. The increase is due
to a significant improvement in non-interest income partially offset by a small
decrease in net interest income and a small increase in non-interest expense.
Earnings per share year-to-date increased to $0.56, an increase of 5.7% as
compared to the same quarter last year.
We are continuing to increase our loan portfolio and reduce the amount of
securities in the investment portfolio. This tradeoff helps to improve earnings
especially on a long-term basis from the higher yields in the loan portfolio.
The Company has paid dividends of $0.33 per share so far this year, which on an
annualized basis is yielding 3.44% on a bid price for our stock of $12.50 per
share. The dividends paid represent a significant increase of 39.1% over those
paid in 1997.
On September 30, 1998, Tri-County Federal Savings Bank's Tier 1 capital ratio
was 14.70%, which surpassed the regulatory requirement of 4% for a
well-capitalized institution. The Tier 1 capital to risk weighted assets was
35.03%, which exceeded the regulatory requirement of 8% for a well-capitalized
institution.
Tri-County Bancorp, Inc. had assets of $86.7 million on September 30, 1998.
Tri-County Bancorp, Inc. is listed on the Nasdaq Small-Cap market and is traded
under the symbol "TRIC."
2201 Main Street - P.O. Box 1057 - Torrington, WV 82240 - Phone (301) 532-2111 - FAX (307) 532-7631
Financial Highlights
(unaudited)
Consolidated Statements of Financial Condition
(Dollars in Thousands) September 30, December 31, September 30,
1998 1997 1997
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Assets
Cash and Cash Equivalents $ 3,667 $ 2,639 $ 1,373
Investments 38,003 44,513 46,052
Loans 43,549 40,542 38,980
Other Assets 1,495 2,267 1,768
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Total Assets $86,714 $89,961 $88,173
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Liabilities
Deposits $44,753 $45,405 $47,316
Borrowed Money 26,311 29,697 26,358
Other Liabilities 1,137 1,032 996
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Total Liabilities $72,201 $76,134 $74,670
Stockholders' Equity $14,513 $13,827 $13,503
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Total Liabilities and Stockholders' Equity $86,714 $89,961 $88,173
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Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
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Interest Income $ 1,499 $ 1,629 $ 4,657 $ 4,753
Interest Expense 861 957 2,676 2,749
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Net Interest Income $ 638 $ 672 $ 1,981 $ 2,004
Provision for Loan Loss 0 0 0 0
Net Interest Income after Provision for Loan Loss $ 638 $ 672 $ 1,981 $ 2,004
Other Income 92 (13) 187 76
Other Expense 383 390 1,168 1,133
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Income Before Income Taxes $ 347 $ 269 $ 1,000 947
Income Taxes 101 58 295 264
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Net Income $ 246 $ 211 $ 705 $ 683
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Earnings Per Share - diluted (1) $ 0.20 $ 0.17 $ 0.56 $ 0.53
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Cash Dividends Per Share (1) $ 0.11 $ 0.08 $ 0.32 $ 0.23
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(1) Restated to reflect 100% stock split effected by a 100% stock dividend paid
December 8, 1997.
Financial Highlights (cont.)
Selected Financial Ratios
Nine Months Ended Nine Months Ended
September 30, 1998 September 30, 1997
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Return on Average Equity (1) 6.63% 6.83%
Return on Average Assets (1) 1.06% 1.05%
Net Yield on Interest-Earning Assets (1) 3.04% 3.15%
Non-Performing Assets to Total Assets 0.03% 0.00%
Stockholders' Equity per Share (2) $12.43 $11.57
(1) Annualized year-to-date
(2) Restated to reflect 100% stock split effected by a 100% stock dividend paid
December 8, 1997