SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): February 5, 2003
SUPERIOR FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware 0-25239 51-0379417
(State of Incorporation) (Commission File No.) (IRS Employer I.D. No.)
16101 LaGrande Drive, Suite 103
Little Rock, Arkansas 72223
(Address of Principal Executive Office) (Zip code)
Registrant's telephone number, including area code: 501-324-7282
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Item 9. Regulation FD Disclosure
The Registrant hereby furnishes as Regulation F-D Disclosure its press release
regarding 4Q 2002 Earnings Release attached hereto as Exhibit 99.1 .
Exhibit No. Document Description
99.1 Press Release Announcing 4Q 2002 Earnings
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SUPERIOR FINANCIAL CORP.
-----------------------------------
(Registrant)
Date: February 5, 2003 /s/ Rick D. Gardner
-----------------------------------
Rick D. Gardner
Chief Financial Officer
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Exhibit 99.1
Superior Financial Corp. Announces Record 2002 Earnings
LITTLE ROCK, Ark.--(BUSINESS WIRE)--Feb. 5, 2003--Superior Financial Corp.
(NASDAQ:SUFI), holding company for Superior Bank, today announced record
earnings for both the quarter and the year ended December 31, 2002. The Company
reported record net income for the year ended December 31, 2002 of $16.0 million
or $1.80 diluted earnings per share, a 34.3% increase compared to 2001 results
of $12.3 million or $1.34 diluted earnings per share.
For the three months ended December 31, 2002, the Company reported earnings
of $4.2 million or $0.48 diluted earnings per share which amounted to a 20%
increase over the $.40 diluted earnings per share reported for the three months
ended December 31, 2001.
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 year ended December 31, 2001, net
income would have been $14.7 million and diluted earnings per share would have
been $1.60. If SFAS 142 had been effective for the three months ended December
31, 2001, net income would have been $4.2 million and diluted earnings per share
would have been $0.47.
As previously announced, the Company paid a dividend of $0.125 per share on
January 22, 2003 to shareholders of record on December 31, 2002.
Superior Financial Corp. is the holding company for Superior Bank. Superior
Bank is a $1.7 billion federal savings bank operating 58 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.
Pursuant to the Safe Harbor provisions of the 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.
Consolidated Balance Sheets
(Unaudited, dollars in thousands)
Dec. 31, Dec. 31, %
Assets 2002 2001 Change
----------- ----------- -------
Cash and cash equivalents $84,426 $97,561 (13.5%)
Loans available for sale, net 12,970 27,573 (53.0%)
Loans receivable 1,086,310 1,072,846 1.3%
Less: allowance for loan losses 13,861 12,109 14.5%
----------- ----------- -------
Loans receivable, net 1,072,449 1,060,737 1.1%
Investments available for sale, net 413,857 374,819 10.4%
Federal Home Loan Bank stock 17,844 17,330 3.0%
Premises and equipment, net 45,806 45,263 1.2%
Goodwill 56,260 56,260 -
Other assets 29,779 41,075 (27.5%)
----------- ----------- -------
Total assets $1,733,391 $1,720,618 0.7%
=========== =========== =======
Liabilities and Stockholders' equity
Liabilities:
Demand & savings deposits $601,550 $566,341 6.2%
Time deposits 609,670 648,693 (6.0%)
----------- ----------- -------
Total deposits 1,211,220 1,215,034 (0.3%)
----------- ----------- -------
Federal Home Loan Bank borrowings 235,000 230,000 2.2%
Senior notes 50,951 51,500 (1.1%)
Guaranteed preferred beneficial
interest in the Company's subordinated
debentures 25,000 25,000 -
Other borrowed funds 54,461 65,557 (16.9%)
Other liabilities 23,857 14,117 69.0%
----------- ----------- -------
Total liabilities 1,600,489 1,601,208 (0.0%)
Stockholders' equity:
Common stock 101 101 -
Capital in excess of par value 94,764 94,764 -
Retained earnings 53,636 41,290 29.9%
Accumulated other comprehensive income 5,498 1,577 248.6%
----------- ----------- -------
153,999 137,732 11.8%
Treasury stock (at cost) (21,097) (18,322) 15.1%
----------- ----------- -------
Total stockholders' equity 132,902 119,410 11.3%
----------- ----------- -------
Total liabilities and
stockholders' equity $1,733,391 $1,720,618 0.7%
=========== =========== =======
Superior Financial Corp.
Consolidated Income Statements
(Unaudited, dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
--------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
---------- --------- --------- ---------
Interest income $25,318 $27,258 $104,059 $112,384
Interest expense 11,799 14,174 48,749 63,937
---------- --------- --------- ---------
Net interest income 13,519 13,084 55,310 48,447
Provision for loan losses 3,596 1,550 7,396 4,500
---------- --------- --------- ---------
Net interest income
after provision for
loan losses 9,923 11,534 47,914 43,947
Noninterest income:
Service charges on
deposit accounts 7,290 7,672 28,312 28,396
Mortgage operations 501 1,217 2,966 3,670
Other 4,735 1,905 9,923 4,569
---------- --------- --------- ---------
Total noninterest
income 12,526 10,794 41,201 36,635
Noninterest expense:
Salaries and employee
benefits 7,813 7,454 30,592 28,504
Occupancy expense 1,203 1,178 4,754 4,475
Data and item processing 2,030 2,387 8,037 8,726
Amortization of goodwill - 870 - 3,476
Other 5,339 5,597 22,509 17,660
---------- --------- --------- ---------
Total noninterest
expense 16,385 17,486 65,892 62,841
Income before income taxes 6,064 4,842 23,223 17,741
Income taxes 1,818 1,290 7,247 5,450
---------- --------- --------- ---------
Net income $4,246 $3,552 $15,976 $12,291
========== ========= ========= =========
Weighted average number of
common shares - basic 8,570 8,718 8,588 8,963
Dilutive potential common
shares 289 214 282 194
Weighted average number of
shares - assuming dilution 8,859 8,932 8,870 9,157
Basic earnings per common
share $0.50 $0.41 $1.86 $1.37
Diluted earnings per common
share $0.48 $0.40 $1.80 $1.34
Superior Financial Corp.
Summary Financial Data
(Unaudited, dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
----------------------- -----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
----------- ----------- ----------- -----------
Selected Average
Balances
Total assets $1,734,889 $1,687,488 $1,718,987 $1,663,769
Earning assets 1,554,231 1,494,658 1,535,751 1,487,630
Loans 1,072,711 1,084,802 1,068,819 1,076,376
Interest bearing
liabilities 1,472,949 1,436,378 1,459,962 1,422,356
Shareholders'
equity 127,981 118,405 123,760 117,607
Performance Ratios (Company)
Return on average
assets 0.97% 0.84% 0.93% 0.74%
Return on average
common equity 13.16% 11.90% 12.91% 10.45%
Net interest
margin (FTE) 3.57% 3.67% 3.70% 3.35%
Efficiency ratio
(without goodwill
amortization) (1) 71.57% 72.35% 71.82% 70.20%
Performance Ratios (Bank)
Return on average
assets 1.22% 1.06% 1.21% 1.00%
Return on average
common equity 11.39% 9.92% 11.39% 9.41%
Net interest
margin (FTE) 3.98% 4.06% 4.12% 3.74%
Efficiency ratio
(without goodwill
amortization) (1) 65.12% 67.90% 65.40% 64.49%
Tax-equivalent
interest income
adjustment $338 $398 $1,517 $1,387
Asset Quality
Nonaccrual loans - - $6,453 $8,022
ORE & repossessed
assets - - 1,424 2,646
Net chargeoffs 1,894 1,477 5,642 4,477
Nonperforming
assets to total
loans and other
real estate - - 0.72% 0.99%
Nonperforming
assets to total
assets - - 0.46% 0.61%
Net chargeoffs to
average loans 0.71% 0.55% 0.53% 0.42%
Allowance for loan
losses to total
loans - - 1.28% 1.13%
Allowance for loan
losses to
nonperforming
loans - - 215% 151%
Capital
End of period
shares
outstanding 8,420,444 8,565,722
Book value per
share $15.78 $13.94
Average
stockholders'
equity to average
total assets 7.38% 7.02% 7.20% 7.08%
(1) Excludes $3.1 million gain on sale of branches in the 4th quarter
of 2002.
CONTACT: Superior Financial Corp., Little Rock
Rick D. Gardner, 501/324-7253
Website: www.superiorfinancialcorp.com