ABC Bancorp Announces First Quarter Results

Apr 12, 2001, 01:00 ET from ABC Bancorp

    MOULTRIE, Ga., April 12 /PRNewswire/ -- ABC Bancorp (Nasdaq:   ABCB),
 reported net income of $2.3 million or $.27 per share for the quarter ended
 March 31, 2001.  Net income for the same quarter a year ago was $2.4 million
 or $.28 per share.
     Non-performing assets were $6.6 million and $6.2 million as of March 31,
 2001 and 2000, respectively.  The ratio of non-performing assets as a
 percentage of the loan loss reserve was 64% and 60% as of March 31, 2001 and
 2000, respectively.  The ratio of non-performing loans to loans was .94% and
 1.05% as of March 31, 2001 and 2000, respectively.
     The Company recorded loan loss provisions of $493,000 and $378,000 during
 the quarters ended March 31, 2001 and 2000, respectively.  The allowance for
 loan losses totaled $10.3 million and $10.2 million as of March 31, 2001 and
 2000, respectively.  The reserve for loan losses as a percentage of total
 loans was 1.70% and 1.85% as of March 31, 2001 and 2000, respectively.
     Jack Hunnicutt, ABC Bancorp's President and CEO said, "Overall, we're
 pleased with the results of the first quarter.  Our asset quality remains
 strong and our reserve levels high.  Our net interest margins suffered from
 the Fed's recent key interest rate reductions, in spite of our efforts to
 reduce our cost of funds as the return on variable-rate assets decreased.  We
 anticipate some improvement in our margins as the Fed finalizes its cuts and
 rates stabilize, and an even greater improvement once the Fed starts raising
 rates again."
     Hunnicutt continued, "Also, during the first quarter, we recorded
 significant nonrecurring expenses associated with two pending acquisitions.
 We expect that stability in our margins and consummation of the two mergers
 will result in our earnings exceeding expectations during the remaining three
 quarters of 2001."
     The return on average assets for the quarters ended March 31, 2001 and
 2000 was 1.11% and 1.26%, respectively.  The return on average equity for the
 quarters ended March 31, 2001 and 2000 was 11.18% and 12.76%, respectively.
     Total assets as of March 31, 2001 were $829 million, an increase of 7%
 compared to total assets of $772 million as of March 31, 2000.  Net loans as
 of March 31, 2001 were $596 million, an increase of 10% compared to net loans
 of  $543 million as of March 31, 2000.  Total deposits as of March 31, 2001
 were $688 million, an increase of 5% compared to deposits of  $653 million as
 of March 31, 2000.
     At its March 2001 meeting, ABC Bancorp's Board of Directors declared
 first-quarter cash dividends of $.12 per share payable on April 10, 2001 to
 shareholders of record as of March 31, 2001.
     On December 4, 2000, ABC announced that it had entered into a definitive
 merger agreement whereby ABC will acquire 100% of the equity of Tri-County
 Bank, Trenton, Florida, for $7.2 million, which is approximately 1.6 times
 Tri-County's current total equity.  Tri-County currently has total assets of
 approximately $46 million and total equity of approximately $4.6 million.  The
 acquisition is expected to be finalized during April, 2001.
     On February 21, 2001, ABC announced that it had entered into a definitive
 merger agreement whereby ABC will acquire 100% of the equity of Golden Isles
 Financial Holdings, St. Simons Island, Georgia, for $20.1 million to
 $25.2 million, depending upon the average price of ABC's Common Stock during a
 defined period immediately preceding the merger.  Golden Isles currently has
 total assets of approximately $148 million and total equity of approximately
 $14.1 million.  The acquisition is expected to be finalized during the third
 quarter of 2001.
     ABC Bancorp is headquartered in Moultrie, Georgia and has nine banking
 subsidiaries with 28 locations in and around the southern Georgia cities of
 Albany, Cairo, Cordele, Donalsonville, Douglas, Moultrie, Ocilla, Quitman,
 Thomasville, Tifton and Valdosta, and the southern Alabama cities of
 Abbeville, Clayton, Dothan, Eufaula and Headland.
     ABC Bancorp Common Stock is quoted on the Nasdaq National Market under the
 symbol "ABCB."
     The preceding release contains statements that constitute "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  The words "believe," "estimate," "expect," "intend," "anticipate"
 and similar expressions and variations thereof identify certain of such
 forward-looking statements, which speak only as of the dates which they were
 made.  The Company undertakes no obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events, or otherwise.  Readers are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve risks and
 uncertainties, and that actual results may differ materially from those
 indicated in the forward-looking statements as a result of various factors.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements.
 
                                   ABC BANCORP
                               FINANCIAL HIGHLIGHTS
                                    (unaudited)
                   (dollars in thousands except per share data)
 
                                                         QUARTER ENDED
                                                   03/31/01          03/30/00
     EARNINGS SUMMARY
         Net interest income                         $9,551            $9,588
         Provision for loan losses                      493               378
         Non-interest income                          2,175             2,016
         Non-interest expense                         7,846             7,684
         Income taxes                                 1,091             1,137
         Net income                                  $2,298            $2,405
 
     PER SHARE SUMMARY
         Common shares outstanding                8,409,208         8,586,067
         Weighted average shares                  8,398,150         8,552,854
         Net income per weighted avg share
          - basic                                     $0.27             $0.28
         Dividends declared per share                 $0.12             $0.10
 
     OPERATING RATIOS (annualized)
         Net interest rate spread (a)                 4.22%             4.62%
         Net interest margin (a)                      5.10%             5.55%
         Return on average assets                     1.11%             1.26%
         Return on average equity                    11.18%            12.76%
         Efficiency (b)                              66.90%            66.22%
 
     ENDING BALANCES
         Total assets                              $828,570          $772,153
         Earning assets                             767,793           717,158
         Intangible assets                            6,631             7,435
         Loans, net of reserve                      595,998           543,021
         Allowance for loan losses                   10,288            10,214
         Deposits                                   688,482           652,878
         Stockholders' equity                        83,474            75,515
         Book value per share                         $9.93             $8.80
         Tangible book value per share                $9.14             $7.93
         Stockholders' equity to total
          assets                                     10.07%             9.78%
 
       (a)  Computed using fully taxable-equivalent net income.
       (b)  Computed by dividing non-interest expense by the sum of net
            interest income and non-interest income.
       (c)  Computed by adding nonperforming loans and foreclosed real estate.
 
 
 
                                    ABC BANCORP
                               FINANCIAL HIGHLIGHTS
                                    (unaudited)
                   (dollars in thousands except per share data)
 
                                                         QUARTER ENDED
                                                   03/31/01          03/30/00
     AVERAGE BALANCES
         Total assets                              $824,718          $763,932
         Earning assets                             765,404           705,415
         Loans, net of reserve                      587,429           532,971
         Deposits                                   674,909           636,115
         Equity                                      82,219            75,411
 
     ASSET QUALITY
         Nonperforming loans                         $5,606            $5,675
         Nonperforming assets (c)                     6,594             6,155
         Net loan chg-offs (recoveries)                  37                59
 
         Allowance for loan loss to loans             1.70%             1.85%
         Net loan chg-offs (recover) to
          avg loans                                   0.01%             0.01%
         Nonperform loans to loans                    0.94%             1.05%
         Nonperform assets to allow for
          loan loss                                  64.09%            60.26%
         Allowance for loan loss to
          nonperform assets                         156.02%           165.95%
         Nonperforming assets to total
          assets                                      0.80%             0.80%
 
 
 
        REGULATORY CAPITAL RATIOS              03/31/01     REQUIRED     EXCESS
          Leverage                               9.89%       4.00%       5.89%
 
        Risk-based
            Core Capital                        13.40%       4.00%       9.40%
            Total Capital                       14.65%       8.00%       6.65%
 
 

SOURCE ABC Bancorp
    MOULTRIE, Ga., April 12 /PRNewswire/ -- ABC Bancorp (Nasdaq:   ABCB),
 reported net income of $2.3 million or $.27 per share for the quarter ended
 March 31, 2001.  Net income for the same quarter a year ago was $2.4 million
 or $.28 per share.
     Non-performing assets were $6.6 million and $6.2 million as of March 31,
 2001 and 2000, respectively.  The ratio of non-performing assets as a
 percentage of the loan loss reserve was 64% and 60% as of March 31, 2001 and
 2000, respectively.  The ratio of non-performing loans to loans was .94% and
 1.05% as of March 31, 2001 and 2000, respectively.
     The Company recorded loan loss provisions of $493,000 and $378,000 during
 the quarters ended March 31, 2001 and 2000, respectively.  The allowance for
 loan losses totaled $10.3 million and $10.2 million as of March 31, 2001 and
 2000, respectively.  The reserve for loan losses as a percentage of total
 loans was 1.70% and 1.85% as of March 31, 2001 and 2000, respectively.
     Jack Hunnicutt, ABC Bancorp's President and CEO said, "Overall, we're
 pleased with the results of the first quarter.  Our asset quality remains
 strong and our reserve levels high.  Our net interest margins suffered from
 the Fed's recent key interest rate reductions, in spite of our efforts to
 reduce our cost of funds as the return on variable-rate assets decreased.  We
 anticipate some improvement in our margins as the Fed finalizes its cuts and
 rates stabilize, and an even greater improvement once the Fed starts raising
 rates again."
     Hunnicutt continued, "Also, during the first quarter, we recorded
 significant nonrecurring expenses associated with two pending acquisitions.
 We expect that stability in our margins and consummation of the two mergers
 will result in our earnings exceeding expectations during the remaining three
 quarters of 2001."
     The return on average assets for the quarters ended March 31, 2001 and
 2000 was 1.11% and 1.26%, respectively.  The return on average equity for the
 quarters ended March 31, 2001 and 2000 was 11.18% and 12.76%, respectively.
     Total assets as of March 31, 2001 were $829 million, an increase of 7%
 compared to total assets of $772 million as of March 31, 2000.  Net loans as
 of March 31, 2001 were $596 million, an increase of 10% compared to net loans
 of  $543 million as of March 31, 2000.  Total deposits as of March 31, 2001
 were $688 million, an increase of 5% compared to deposits of  $653 million as
 of March 31, 2000.
     At its March 2001 meeting, ABC Bancorp's Board of Directors declared
 first-quarter cash dividends of $.12 per share payable on April 10, 2001 to
 shareholders of record as of March 31, 2001.
     On December 4, 2000, ABC announced that it had entered into a definitive
 merger agreement whereby ABC will acquire 100% of the equity of Tri-County
 Bank, Trenton, Florida, for $7.2 million, which is approximately 1.6 times
 Tri-County's current total equity.  Tri-County currently has total assets of
 approximately $46 million and total equity of approximately $4.6 million.  The
 acquisition is expected to be finalized during April, 2001.
     On February 21, 2001, ABC announced that it had entered into a definitive
 merger agreement whereby ABC will acquire 100% of the equity of Golden Isles
 Financial Holdings, St. Simons Island, Georgia, for $20.1 million to
 $25.2 million, depending upon the average price of ABC's Common Stock during a
 defined period immediately preceding the merger.  Golden Isles currently has
 total assets of approximately $148 million and total equity of approximately
 $14.1 million.  The acquisition is expected to be finalized during the third
 quarter of 2001.
     ABC Bancorp is headquartered in Moultrie, Georgia and has nine banking
 subsidiaries with 28 locations in and around the southern Georgia cities of
 Albany, Cairo, Cordele, Donalsonville, Douglas, Moultrie, Ocilla, Quitman,
 Thomasville, Tifton and Valdosta, and the southern Alabama cities of
 Abbeville, Clayton, Dothan, Eufaula and Headland.
     ABC Bancorp Common Stock is quoted on the Nasdaq National Market under the
 symbol "ABCB."
     The preceding release contains statements that constitute "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  The words "believe," "estimate," "expect," "intend," "anticipate"
 and similar expressions and variations thereof identify certain of such
 forward-looking statements, which speak only as of the dates which they were
 made.  The Company undertakes no obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events, or otherwise.  Readers are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve risks and
 uncertainties, and that actual results may differ materially from those
 indicated in the forward-looking statements as a result of various factors.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements.
 
                                   ABC BANCORP
                               FINANCIAL HIGHLIGHTS
                                    (unaudited)
                   (dollars in thousands except per share data)
 
                                                         QUARTER ENDED
                                                   03/31/01          03/30/00
     EARNINGS SUMMARY
         Net interest income                         $9,551            $9,588
         Provision for loan losses                      493               378
         Non-interest income                          2,175             2,016
         Non-interest expense                         7,846             7,684
         Income taxes                                 1,091             1,137
         Net income                                  $2,298            $2,405
 
     PER SHARE SUMMARY
         Common shares outstanding                8,409,208         8,586,067
         Weighted average shares                  8,398,150         8,552,854
         Net income per weighted avg share
          - basic                                     $0.27             $0.28
         Dividends declared per share                 $0.12             $0.10
 
     OPERATING RATIOS (annualized)
         Net interest rate spread (a)                 4.22%             4.62%
         Net interest margin (a)                      5.10%             5.55%
         Return on average assets                     1.11%             1.26%
         Return on average equity                    11.18%            12.76%
         Efficiency (b)                              66.90%            66.22%
 
     ENDING BALANCES
         Total assets                              $828,570          $772,153
         Earning assets                             767,793           717,158
         Intangible assets                            6,631             7,435
         Loans, net of reserve                      595,998           543,021
         Allowance for loan losses                   10,288            10,214
         Deposits                                   688,482           652,878
         Stockholders' equity                        83,474            75,515
         Book value per share                         $9.93             $8.80
         Tangible book value per share                $9.14             $7.93
         Stockholders' equity to total
          assets                                     10.07%             9.78%
 
       (a)  Computed using fully taxable-equivalent net income.
       (b)  Computed by dividing non-interest expense by the sum of net
            interest income and non-interest income.
       (c)  Computed by adding nonperforming loans and foreclosed real estate.
 
 
 
                                    ABC BANCORP
                               FINANCIAL HIGHLIGHTS
                                    (unaudited)
                   (dollars in thousands except per share data)
 
                                                         QUARTER ENDED
                                                   03/31/01          03/30/00
     AVERAGE BALANCES
         Total assets                              $824,718          $763,932
         Earning assets                             765,404           705,415
         Loans, net of reserve                      587,429           532,971
         Deposits                                   674,909           636,115
         Equity                                      82,219            75,411
 
     ASSET QUALITY
         Nonperforming loans                         $5,606            $5,675
         Nonperforming assets (c)                     6,594             6,155
         Net loan chg-offs (recoveries)                  37                59
 
         Allowance for loan loss to loans             1.70%             1.85%
         Net loan chg-offs (recover) to
          avg loans                                   0.01%             0.01%
         Nonperform loans to loans                    0.94%             1.05%
         Nonperform assets to allow for
          loan loss                                  64.09%            60.26%
         Allowance for loan loss to
          nonperform assets                         156.02%           165.95%
         Nonperforming assets to total
          assets                                      0.80%             0.80%
 
 
 
        REGULATORY CAPITAL RATIOS              03/31/01     REQUIRED     EXCESS
          Leverage                               9.89%       4.00%       5.89%
 
        Risk-based
            Core Capital                        13.40%       4.00%       9.40%
            Total Capital                       14.65%       8.00%       6.65%
 
 SOURCE  ABC Bancorp