EXHIBIT 99.1
NEWS from Summit Bancshares, Inc.
For Immediate Release For Information Contact:
April 10, 2003 Bob G. Scott, COO
(817) 877-2660
SUMMIT BANCSHARES REPORTS
FIRST QUARTER 2003 EARNINGS
Fort Worth, Texas - Summit Bancshares, Inc. (NASDAQ: SBIT), a community-oriented
bank holding company in Fort Worth, with assets of $698 million, reported first
quarter earnings today. Philip E. Norwood, Chairman, President and Chief
Executive Officer stated, "We are pleased to report positive earnings and growth
for the quarter. An almost eight percent growth in both loans and deposits for
the quarter compared to the same date the previous year, especially in an
economy that is somewhat weakened by national and international events, is
rewarding. Also, an increase in earnings per share of over eight percent at a
time when market interest rates are at historic lows reflects the Company's
positive growth in earning assets and the staff's efforts to improve fee income
and control expenses."
He further stated, "We opened our new Davis branch facility in January in the
dynamic northeast Tarrant County market. We anticipate our new Hulen branch in
southwest Fort Worth opening sometime in May. The Hulen branch will be our
seventh branch site in Tarrant County giving Summit the resources necessary to
continue growing our share of the Tarrant County market."
Results of Operations
For the quarter ended March 31, 2003, net income was $2,433,000 compared to
$2,286,000 for the same period in 2002. Net income per diluted share was $0.39
for the three months ended March 31, 2003, compared to $0.36 for the three
months ended March 31, 2002.
Return on average assets and return on average stockholders' equity for the
first quarter of 2003 annualized were 1.43% and 14.89%, respectively; ratios
that continue to be very good returns when compared to our peers. The Company's
average stockholders' equity-to-assets ratio of 9.6% for the quarter ended March
31, 2003, continues to reflect a very strong capital position for the Company.
Financial Results
Net interest income for the first quarter of 2003 was $7,435,000 compared to
$7,417,000 in the first quarter of last year. Since the Company is somewhat more
sensitive to market interest rate changes than other community banks due to its
heavier commercial lending focus, the net interest margin declined to 4.67% for
the quarter compared to 5.01% for the first quarter of the prior year reflecting
the very low market interest rate environment experienced in the first quarter.
In addition, the Company's net interest margin was the same in the first quarter
compared to the previous quarter although the average prime rate declined from
4.46% for the previous quarter to 4.25% for the first quarter. It is positive
that the margin was steady between the two quarters considering the decline in
market interest rates.
The Company's loans were $489 million at March 31, 2003, an increase of $36
million, or 7.8% from a year ago. The March 31, 2003 deposits were $587 million,
an increase of $41 million, or 7.5% at the same date of the prior year.
Stockholders' equity at March 31, 2003, was $66.6 million compared to $61.5
million at March 31, 2002.
Non interest income of $1,348,000 reflected a $98,000, or 7.8%, increase for the
first quarter compared to the same quarter in the prior year with positive
increases in service charges on deposit accounts and increases in several other
fee based services.
Non interest expenses of $4,797,000 for the first quarter of 2003 increased
$154,000 compared to the first quarter of last year. The increase in expense for
the first quarter reflected costs associated with the Company's growth and
included expenses related to the opening of the Davis Branch plus the expenses
related to the installation of a new data processing system in the fourth
quarter of 2002.
Non performing assets totaled $2.4 million or 0.50% of loans and foreclosed
assets at March 31, 2003, compared to $3.8 million or .83% at March 31, 2002.
The allowance for loan losses was 1.50% of total loans and 319% of
non-performing loans at March 31, 2003. This level of allowance for loan losses
is projected to provide for any anticipated loan losses in this weaker economy.
The Company will host a conference call Friday, April 11th at 10:30 a.m. CT. To
access the live call, please call (800) 474-8920 and enter code 424435. A toll
free replay of the call will be available starting Friday, April 11, 2003 at
1:00 p.m. CT through midnight, April 28, 2003 by calling (888)203-1112 and
entering code 424435.
Certain statements contained in this press release, which are not historical in
nature, including statements regarding the company's and/or management's
intentions, strategies, beliefs, expectations, representations, plans,
projections, or predictions of the future, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and are
intended to be covered by the safe harbor provisions for forward-looking
statements contained in such Act. We are including this statement for purposes
of invoking these safe harbor provisions. Forward-looking statements are made
based on assumptions involving certain known and unknown risks and
uncertainties, many of which are beyond the company's control, and other
important factors that could cause actual results, performance or achievements
to differ materially from the expectations expressed or implied by such
forward-looking statements. These risk factors and uncertainties are listed from
time to time in the company's filings with the Securities and Exchange
Commission, including but not limited to the annual report on Form 10-K for the
year ended December 31, 2001.
Summit Bancshares, Inc. o 1300 Summit Ave., Ste. 604 o Fort Worth, Texas 76102
Telephone (817) 336-6817 o FAX (817) 877-2672 o Web Site: www.summitbank.net
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
------------------------ %
EARNINGS SUMMARY 2003 2002 Change
-------- ------- ------
Interest income $9,251 $9,549 -3.1%
Interest expense 1,816 2,132 -14.8%
Net interest income 7,435 7,417 0.2%
Provision for loan losses 300 545 -45.0%
Service charges on deposits 758 645 17.5%
Other income 590 605 -2.5%
Salaries and benefits expense 2,905 2,867 1.3%
Occupancy and equipment expense 722 656 10.1%
Other expense 1,170 1,120 4.5%
------ ------ ------
Earnings before income taxes 3,686 3,479 5.9%
Provision for income taxes 1,253 1,193 5.0%
------ ------ ------
Net earnings $2,433 $2,286 6.4%
====== ====== ======
Basic earnings per share $ 0.39 $ 0.37 5.4%
====== ====== ======
Basic weighted average shares
outstanding 6,166 6,263
Diluted earnings per share $ 0.39 $ 0.36 8.3%
====== ====== ======
Diluted weighted average shares
outstanding 6,276 6,418
Average for Quarter Ended
-----------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
BALANCE SHEET SUMMARY 2003 2002 2002 2002 2002
--------- --------- --------- --------- ---------
Total loans $ 476,298 $ 471,260 $ 471,888 $ 462,467 $ 446,440
Total investment securities 170,609 166,980 155,499 140,232 152,163
Earning assets 648,193 650,995 646,378 619,187 602,157
Total assets 688,522 693,064 685,389 657,529 638,875
Noninterest bearing deposits 160,011 165,756 156,742 157,983 146,785
Interest bearing deposits 411,313 413,657 420,000 397,789 390,964
Total deposits 571,324 579,413 576,742 555,772 537,749
Other borrowings 48,012 44,487 41,035 36,145 36,033
Shareholders' equity 66,253 64,369 64,273 62,245 61,830
Average for Three Months
Ended March 31,
-------------------------- %
BALANCE SHEET SUMMARY 2003 2002 Change
--------- --------- ------
Total loans $ 476,298 $ 446,440 6.7%
Total investment securities 170,609 152,163 12.1%
Earning assets 648,193 602,157 7.6%
Total assets 688,522 638,875 7.8%
Noninterest bearing deposits 160,011 146,785 9.0%
Interest bearing deposits 411,313 390,964 5.2%
Total deposits 571,324 537,749 6.2%
Other borrowings 48,012 36,033 33.2%
Shareholders' equity 66,253 61,830 7.2%
Ending Balance
-----------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
BALANCE SHEET SUMMARY 2003 2002 2002 2002 2002
--------- --------- --------- --------- ---------
Total loans $ 489,352 $ 469,145 $ 474,401 $ 466,974 $ 453,818
Total investment securities 163,639 173,512 168,250 144,314 141,479
Total earning assets 653,066 642,919 642,765 633,371 599,543
Allowance for loan losses (7,365) (6,706) (6,334) (6,394) (6,534)
Premises and equipment 11,652 11,486 10,011 9,112 8,659
Total assets 697,893 687,733 682,605 674,028 634,906
Noninterest bearing deposits 165,220 167,745 157,519 163,440 151,236
Interest bearing deposits 421,699 414,204 413,391 398,374 394,685
Total deposits 586,919 581,949 570,910 561,814 545,921
Other borrowings 41,317 37,255 43,871 45,629 24,492
Total liabilities 631,313 622,795 617,832 610,542 573,402
Shareholders' equity 66,580 64,938 64,773 63,486 61,504
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
March 31, December 31, September 30, June 30, March 31,
NONPERFORMING ASSETS 2003 2002 2002 2002 2002
------- ------- ------- ------- -------
Nonaccrual loans $ 2,226 $ 2,135 $ 4,635 $ 3,870 $ 3,458
Restructured loans - - - - -
Other real estate & foreclosed assets 125 1,268 288 56 97
Accruing loans past due 90 days or more 80 16 37 13 228
------- ------- ------- ------- -------
Total nonperforming assets $ 2,431 $ 3,419 $ 4,960 $ 3,939 $ 3,783
======= ======= ======= ======= =======
Total nonperforming assets as a
percentage of loans and foreclosed assets 0.50% 0.73% 1.04% 0.84% 0.83%
======= ======= ======= ======= =======
Quarter Ended
--------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
ALLOWANCE FOR LOAN LOSSES 2003 2002 2002 2002 2002
------- ------- ------- ------- -------
Balance at beginning of period $ 6,706 $ 6,334 $ 6,394 $ 6,534 $ 6,015
Loans charged off (80) (637) (1,492) (650) (42)
Loan recoveries 439 234 82 40 16
------- ------- ------- ------- -------
Net (charge-offs) recoveries 359 (403) (1,410) (610) (26)
Provision for loan losses 300 775 1,350 470 545
------- ------- ------- ------- -------
Balance at end of period $ 7,365 $ 6,706 $ 6,334 $ 6,394 $ 6,534
======= ======= ======= ======= =======
Allowance for loan losses as a
percentage of total loans 1.50% 1.43% 1.34% 1.37% 1.44%
======= ======= ======= ======= =======
Allowance for loan losses as a
percentage of nonperforming loans 319.38% 311.76% 135.57% 164.67% 177.27%
======= ======= ======= ======= =======
Net charge-offs (recoveries) as a percentage
of average loans -0.07% 0.09% 0.30% 0.13% 0.01%
======= ======= ======= ======= =======
Provision for loan losses as a percentage
of average loans 0.06% 0.16% 0.29% 0.10% 0.12%
======= ======= ======= ======= =======
Quarter Ended
--------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
SELECTED RATIOS 2003 2002 2002 2002 2002
------- ------- ------- ------- -------
Return on average assets (annualized) 1.43% 1.30% 1.37% 1.46% 1.45%
======= ======= ======= ======= =======
Return on average equity (annualized) 14.89% 13.96% 14.64% 15.43% 15.00%
======= ======= ======= ======= =======
Average shareholders' equity to average assets 9.62% 9.29% 9.38% 9.47% 9.66%
======= ======= ======= ======= =======
Yield on earning assets 5.81% 5.87% 6.06% 6.28% 6.44%
======= ======= ======= ======= =======
Cost of interest bearing funds 1.60% 1.71% 1.89% 2.03% 2.02%
======= ======= ======= ======= =======
Net interest margin (tax equivalent) 4.67% 4.67% 4.71% 4.85% 5.01%
======= ======= ======= ======= =======
Efficiency ratio 54.41% 52.95% 45.82% 53.07% 53.47%
======= ======= ======= ======= =======
End of period book value per common share $ 10.81 $ 10.58 $ 10.42 $ 10.13 $ 9.82
======= ======= ======= ======= =======
End of period common shares outstanding 6,179 6,159 6,275 6,268 6,270
======= ======= ======= ======= =======
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
Three Months Ended
----------------------------------------------------------------------------
March 31, 2003 March 31, 2002
---------------------------------- -----------------------------------
Average Average
YIELD ANALYSIS Balance Interest Yield Balance Interest Yield
--------- -------- ----- --------- -------- -----
Interest Earning Assets:
Federal funds sold, Repurchases, & Due from time $ 1,286 $ 4 1.18% $ 3,554 $ 19 2.18%
Investment securities (taxable) 165,615 1,711 4.19% 150,269 1,848 4.99%
Investment securities (tax-exempt) 4,994 71 5.77% 1,894 28 5.98%
Loans 476,298 7,499 6.39% 446,440 7,671 6.97%
--------- -------- --------- --------
Total Interest Earning Assets 648,193 9,285 5.81% 602,157 9,566 6.44%
--------
Noninterest Earning Assets:
Cash and due from banks 25,639 24,102
Other assets 21,686 18,823
Allowance for loan losses (6,996) (6,207)
--------- ---------
Total Noninterest Earning Assets 40,329 36,718
--------- ---------
Total Assets $ 688,522 $ 638,875
========= =========
Interest Bearing Liabilities:
Transaction and money market accounts $ 177,053 462 1.06% $ 173,484 565 1.32%
Savings deposits 116,568 397 1.38% 108,793 475 1.77%
Certificates and other time deposits 117,692 801 2.76% 108,687 957 3.57%
Other borrowings 48,012 156 1.32% 36,033 135 1.52%
--------- -------- --------- --------
Total Interest Bearing Liabilities 459,325 1,816 1.60% 426,997 2,132 2.02%
Noninterest Bearing Liabilities:
Demand deposits 160,011 146,785
Other liabilities 2,933 3,263
Shareholders' Equity 66,253 61,830
--------- ---------
Total Noninterest Bearing Liabilities 229,197 211,878
--------- ---------
Total Liabilities and Shareholders' Equity $ 688,522 $ 638,875
========= =========
-------- --------
Net Interest Income and Margin (tax equivalent) $ 7,469 4.67% $ 7,434 5.01%
======== ===== ======== =====
SUMMIT BANCSHARES, INC.
(Unaudited)
(Dollars in thousands, except per share data)
March 31, March 31,
LOAN PORTFOLIO 2003 % 2002 %
--------- ----- --------- -----
Commercial and industrial $ 202,448 41.4% $ 189,511 41.8%
Real estate:
Commercial 135,353 27.7% 119,875 26.4%
One-to-four family residential 47,663 9.7% 47,913 10.6%
Multi-family residential 5,725 1.2% 477 0.1%
Construction and development 64,679 13.2% 61,812 13.6%
Consumer 33,484 6.8% 34,235 7.5%
--------- ----- --------- -----
Total loans (gross) 489,352 100.0% 453,823 100.0%
Unearned discounts - 0.0% (5) 0.0%
--------- ----- --------- -----
Total loans (net) 489,352 100.0% 453,818 100.0%
========= ===== ========= =====
March 31, March 31,
REGULATORY CAPITAL DATA 2003 2002
-------- --------
Tier 1 Capital $ 63,671 $ 60,333
Tier 1 Ratio 12.09% 12.48%
Total Capital (Tier 1 + Tier 2) $ 70,264 $ 66,382
Total Capital Ratio 13.34% 13.73%
Total Risk-Adjusted Assets $526,659 $483,464
Tier 1 Leverage Ratio 9.04% 9.44%
March 31, March 31,
OTHER DATA 2003 2002
--------- ---------
Full Time Equivalent Employees (FTE's) 207 200
Stock Price Range (For the Quarter Ended):
High $ 20.00 $ 21.15
Low $ 18.86 $ 18.00
Close $ 19.12 $ 20.80