First State's Core Earnings Per Share Increase 36%; Dividend Increased 29%

Apr 23, 2001, 01:00 ET from First State Bancorporation

    ALBUQUERQUE, N.M., April 23 /PRNewswire Interactive News Release/ -- First
 State Bancorporation (Nasdaq: FSNM) today announced first quarter 2001
 earnings of $1.9 million or $0.38 per diluted share.  Compared to $1.8 million
 or $0.35 per share for the first quarter 2000 earnings.  The first quarter
 2000 earnings included an $879,000 gain on the sale of First State's leasing
 division and a $333,000 loss on the sale of securities.  Excluding the tax
 effected impact of these items first quarter 2000 core earnings were
 $1.4 million or $0.28 per diluted share.  The core earnings increase for the
 first quarter of 2001, compared to the first quarter of 2000, was $0.10 per
 share or 36%.  At March 31, 2001, total assets increased $84.1 million, loans
 increased $73.0 million, investment securities increased $11.4 million, and
 deposits increased $78.9 million over the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990621/FSNMLOGO )
     "We have just completed our eleventh consecutive quarter of 20% plus
 quarter over quarter earnings," stated Michael R. Stanford, President and
 Chief Executive Officer.  "Our asset growth continues to result from customers
 who are looking for a level of personal service and sense of community that
 they simply don't get at the larger banks that have invaded our market place.
 Our advertising has helped draw attention to our bank and a lot of the mega
 bank customers are voting with their feet by moving to First State.
     "In the last five years, our total assets have increased by 152% or
 $400 million from $264 million at the end of the first quarter of 1996, to
 $664 million for this first quarter of 2001," continued Stanford.  "It is a
 tribute to the hard work of our employees that our earnings have grown 283% on
 the same quarter to quarter comparison, from $505,000 for the first quarter of
 1996 to $1,935,000 in the first quarter of this year.  Based on the steady
 migration of customers to First State from the Wells Fargo/First Security
 merger, and related sell-off of branches to Bank of the West, our prospects
 for the near future appear bright as well."
     First State's total assets increased 14% from $580 million at March 31,
 2000, to $664 million at March 31, 2001.  Total loans increased 19% from
 $388 million at March 31, 2000, to $462 million at March 31, 2001.  Investment
 securities increased 9% from $121 million at March 31, 2000, to $133 million
 at March 31, 2001.  Total deposits grew 17% from $471 million at March 31,
 2000, to $550 million at March 31, 2001.  Non-interest bearing deposits grew
 to $105 million at March 31, 2001, from $93 million at March 31, 2000, while
 interest bearing deposits grew to $445 million from $377 million for the same
 period.
     "During the first quarter our branches opened over 3,200 new checking,
 savings, and money market accounts combined, and CD's of less than $100,000
 grew by $8.2 million.  We expected the First Security break-up to be our
 biggest opportunity to date and this influx of core deposit accounts is
 proving us right," stated H. Patrick Dee, Executive Vice President and Chief
 Operating Officer.  "With the First Security name change just a few weeks
 past, and our opening two new branches strategically located to take advantage
 of the First Security scheduled in the second quarter, we believe we are
 perfectly positioned to attract the core customers we need to sustain our
 growth," continued Dee.
     Net interest income before provision for loan losses was $8.3 million for
 the first quarter of 2001 compared to $7.6 million for the same quarter of
 2000, an increase of 9%.  The increase was due to increased loans and
 investment securities.  The net interest margin was 5.58% and 5.79% for the
 first quarter of 2001 and 2000, respectively.  The decrease in margin is due
 to lower interest rates resulting from the Federal Reserve Bank's recent rate
 reductions.
     First State's provision for loan losses was $505,000 for the first quarter
 of 2001 compared to $625,000 for the same quarter of 2000.  First State's
 allowance for loan losses was 1.38% of total loans at March 31, 2001, and
 March 31, 2000, while the allowance for loan losses to non-performing loans
 was 659% at March 31, 2001 compared to 136% at March 31, 2000.  Non-performing
 assets equaled 0.44% of total assets at March 31, 2001 compared to 1.03% at
 March 31, 2000.
     Non-interest income was $2.0 million for the first quarter of 2001,
 compared to $2.1 million for the first quarter of 2000, which included the
 gain on the sale of the leasing division of $879,000 and loss on sale of
 securities of $333,000.
     Non-interest expense was $6.7 million for the first quarter of 2001,
 compared to $6.4 million for the first quarter of 2000, an increase of 5.1%.
 Compared to the first quarter of 2000, salaries and employee benefits
 increased $230,000.  First State Bank's efficiency ratio improved to 65.77%
 for the quarter ended March 31, 2001 compared to 66.06% for the quarter ended
 March 31, 2000.  "With net interest income increasing over 9% and non-interest
 expenses increasing only 5%, we have come to the point where we have grown
 into the infrastructure we built in the last half of the nineties.  Our size
 now allows us to add strategically important branches, like the two we are
 adding in the second quarter, while still seeing improvement in our earnings
 growth relative to expense growth," stated Dee.
     On Thursday, April 19, 2001, First State's Board of Directors increased
 the regular quarterly dividend to $0.09 per share, from $0.07.  The dividend
 will be to shareholders of record on May 16, 2001, payable June 13, 2001.
     First State Bancorporation is the only publicly traded New Mexico based
 commercial bank holding company (Nasdaq: FSNM).  First State provides services
 to customers from a total of 19 locations in Albuquerque, Taos, Rio Rancho,
 Santa Fe, Los Lunas, Bernalillo, Placitas, Questa, Belen, and Moriarty, New
 Mexico.  On Friday, April 20, 2001, First State's stock closed at $14.50 per
 share.
 
 
      FINANCIAL HIGHLIGHTS                            First Quarter Ended
                                                            March 31,
      (thousands except per share)                       2001           2000
 
      Interest income                                 $13,827        $11,911
      Interest expense                                  5,571          4,347
      Net interest income before provision
       for loan losses                                  8,256          7,564
      Provision for loan losses                           505            625
      Net interest income after provision
       for loan losses                                  7,751          6,939
      Non-interest income                               1,991          2,146
      Non-interest expense                              6,739          6,414
      Income tax expense                                1,068            914
      Net income                                       $1,935         $1,757
      Basic earnings per share                          $0.40          $0.36
      Diluted earnings per share                        $0.38          $0.35
      Basic average shares outstanding              4,896,528      4,923,928
      Diluted average shares outstanding            5,034,977      5,044,450
 
 
                              March 31,       December 31,       March 31,
                                 2001             2000              2000
      Total assets             $664,441         $652,729          $580,371
      Loans receivable, net    $461,734         $453,776          $388,718
      Investment securities    $132,905         $134,409          $121,481
      Deposits                 $549,609         $528,408          $470,728
      Long-term debt             $1,089           $1,102           $11,139
      Shareholders' equity      $53,502          $51,317           $45,254
      Book value per share       $10.94           $10.49             $9.31
      Tangible book value
       per share                 $10.85           $10.39             $9.46
 
 
      FINANCIAL RATIOS:                                First Quarter Ended
                                                            March 31,
                                                        2001           2000
      Return on average assets                          1.23%          1.24%
      Return on average equity                         14.91%         15.39%
      Efficiency ratio                                 65.77%         66.06%
      Operating expenses to average assets              4.27%          4.52%
      Net interest margin                               5.58%          5.79%
      Average equity to average assets                  8.22%          8.04%
      Leverage ratio (end of period)                    7.83%          7.85%
      Total risk based capital ratio (end of period)   11.51%         11.33%
 
 
      ALLOWANCE FOR LOAN LOSSES:     March 31,     December 31,     March 31,
                                       2001            2000           2000
      Balance beginning of period     $6,307          $5,387        $5,387
      Provision for loan losses         $505          $2,475          $625
      Net charge-offs                   $354          $1,555          $572
      Balance end of period           $6,458          $6,307        $5,440
 
      Allowance for loan losses
       to total loans                  1.38%           1.37%         1.38%
      Allowance for loan losses to
       non-performing loans             659%            325%          136%
 
 
      NON-PERFORMING ASSETS:         March 31,     December 31,    March 31,
                                       2001            2000          2000
      Accruing loans - 90 days
       past due                          $18              $6            $4
      Non-accrual loans                 $962          $1,937        $3,992
      Restructured loans                  --              --            --
      Total non-performing loans        $980          $1,943        $3,996
      Other real estate owned         $1,933          $2,016        $1,994
      Total non-performing assets     $2,913          $3,959        $5,990
      Total non-performing assets
       to total assets                 0.44%           0.61%         1.03%
 
     Statements which are forward-looking are not historical facts, and involve
 risks and uncertainties that could cause First State's results to differ
 materially from those in any forward-looking statements.  These risks include
 the effect changes in economic conditions may have on overall loan quality,
 changes in net interest margin due to changes in interest rates, possible loss
 of key personnel, need for additional capital should First State experience
 faster than anticipated growth, factors which could affect First State's
 ability to compete in its trade areas, changes in regulations and governmental
 policies, and the risks described in First State's Securities and Exchange
 Commission filings.
     First State's news releases are available at no charge through PR
 Newswire's Company News On-Call fax service.  For a menu call
 1-800-IR-NEWS-9 ext 108540 or (1-800-476-3979).  Internet access is
 at http://www.prnewswire.com/cnoc/exec/menu?108540.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87716809
 
 

SOURCE First State Bancorporation
    ALBUQUERQUE, N.M., April 23 /PRNewswire Interactive News Release/ -- First
 State Bancorporation (Nasdaq: FSNM) today announced first quarter 2001
 earnings of $1.9 million or $0.38 per diluted share.  Compared to $1.8 million
 or $0.35 per share for the first quarter 2000 earnings.  The first quarter
 2000 earnings included an $879,000 gain on the sale of First State's leasing
 division and a $333,000 loss on the sale of securities.  Excluding the tax
 effected impact of these items first quarter 2000 core earnings were
 $1.4 million or $0.28 per diluted share.  The core earnings increase for the
 first quarter of 2001, compared to the first quarter of 2000, was $0.10 per
 share or 36%.  At March 31, 2001, total assets increased $84.1 million, loans
 increased $73.0 million, investment securities increased $11.4 million, and
 deposits increased $78.9 million over the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990621/FSNMLOGO )
     "We have just completed our eleventh consecutive quarter of 20% plus
 quarter over quarter earnings," stated Michael R. Stanford, President and
 Chief Executive Officer.  "Our asset growth continues to result from customers
 who are looking for a level of personal service and sense of community that
 they simply don't get at the larger banks that have invaded our market place.
 Our advertising has helped draw attention to our bank and a lot of the mega
 bank customers are voting with their feet by moving to First State.
     "In the last five years, our total assets have increased by 152% or
 $400 million from $264 million at the end of the first quarter of 1996, to
 $664 million for this first quarter of 2001," continued Stanford.  "It is a
 tribute to the hard work of our employees that our earnings have grown 283% on
 the same quarter to quarter comparison, from $505,000 for the first quarter of
 1996 to $1,935,000 in the first quarter of this year.  Based on the steady
 migration of customers to First State from the Wells Fargo/First Security
 merger, and related sell-off of branches to Bank of the West, our prospects
 for the near future appear bright as well."
     First State's total assets increased 14% from $580 million at March 31,
 2000, to $664 million at March 31, 2001.  Total loans increased 19% from
 $388 million at March 31, 2000, to $462 million at March 31, 2001.  Investment
 securities increased 9% from $121 million at March 31, 2000, to $133 million
 at March 31, 2001.  Total deposits grew 17% from $471 million at March 31,
 2000, to $550 million at March 31, 2001.  Non-interest bearing deposits grew
 to $105 million at March 31, 2001, from $93 million at March 31, 2000, while
 interest bearing deposits grew to $445 million from $377 million for the same
 period.
     "During the first quarter our branches opened over 3,200 new checking,
 savings, and money market accounts combined, and CD's of less than $100,000
 grew by $8.2 million.  We expected the First Security break-up to be our
 biggest opportunity to date and this influx of core deposit accounts is
 proving us right," stated H. Patrick Dee, Executive Vice President and Chief
 Operating Officer.  "With the First Security name change just a few weeks
 past, and our opening two new branches strategically located to take advantage
 of the First Security scheduled in the second quarter, we believe we are
 perfectly positioned to attract the core customers we need to sustain our
 growth," continued Dee.
     Net interest income before provision for loan losses was $8.3 million for
 the first quarter of 2001 compared to $7.6 million for the same quarter of
 2000, an increase of 9%.  The increase was due to increased loans and
 investment securities.  The net interest margin was 5.58% and 5.79% for the
 first quarter of 2001 and 2000, respectively.  The decrease in margin is due
 to lower interest rates resulting from the Federal Reserve Bank's recent rate
 reductions.
     First State's provision for loan losses was $505,000 for the first quarter
 of 2001 compared to $625,000 for the same quarter of 2000.  First State's
 allowance for loan losses was 1.38% of total loans at March 31, 2001, and
 March 31, 2000, while the allowance for loan losses to non-performing loans
 was 659% at March 31, 2001 compared to 136% at March 31, 2000.  Non-performing
 assets equaled 0.44% of total assets at March 31, 2001 compared to 1.03% at
 March 31, 2000.
     Non-interest income was $2.0 million for the first quarter of 2001,
 compared to $2.1 million for the first quarter of 2000, which included the
 gain on the sale of the leasing division of $879,000 and loss on sale of
 securities of $333,000.
     Non-interest expense was $6.7 million for the first quarter of 2001,
 compared to $6.4 million for the first quarter of 2000, an increase of 5.1%.
 Compared to the first quarter of 2000, salaries and employee benefits
 increased $230,000.  First State Bank's efficiency ratio improved to 65.77%
 for the quarter ended March 31, 2001 compared to 66.06% for the quarter ended
 March 31, 2000.  "With net interest income increasing over 9% and non-interest
 expenses increasing only 5%, we have come to the point where we have grown
 into the infrastructure we built in the last half of the nineties.  Our size
 now allows us to add strategically important branches, like the two we are
 adding in the second quarter, while still seeing improvement in our earnings
 growth relative to expense growth," stated Dee.
     On Thursday, April 19, 2001, First State's Board of Directors increased
 the regular quarterly dividend to $0.09 per share, from $0.07.  The dividend
 will be to shareholders of record on May 16, 2001, payable June 13, 2001.
     First State Bancorporation is the only publicly traded New Mexico based
 commercial bank holding company (Nasdaq: FSNM).  First State provides services
 to customers from a total of 19 locations in Albuquerque, Taos, Rio Rancho,
 Santa Fe, Los Lunas, Bernalillo, Placitas, Questa, Belen, and Moriarty, New
 Mexico.  On Friday, April 20, 2001, First State's stock closed at $14.50 per
 share.
 
 
      FINANCIAL HIGHLIGHTS                            First Quarter Ended
                                                            March 31,
      (thousands except per share)                       2001           2000
 
      Interest income                                 $13,827        $11,911
      Interest expense                                  5,571          4,347
      Net interest income before provision
       for loan losses                                  8,256          7,564
      Provision for loan losses                           505            625
      Net interest income after provision
       for loan losses                                  7,751          6,939
      Non-interest income                               1,991          2,146
      Non-interest expense                              6,739          6,414
      Income tax expense                                1,068            914
      Net income                                       $1,935         $1,757
      Basic earnings per share                          $0.40          $0.36
      Diluted earnings per share                        $0.38          $0.35
      Basic average shares outstanding              4,896,528      4,923,928
      Diluted average shares outstanding            5,034,977      5,044,450
 
 
                              March 31,       December 31,       March 31,
                                 2001             2000              2000
      Total assets             $664,441         $652,729          $580,371
      Loans receivable, net    $461,734         $453,776          $388,718
      Investment securities    $132,905         $134,409          $121,481
      Deposits                 $549,609         $528,408          $470,728
      Long-term debt             $1,089           $1,102           $11,139
      Shareholders' equity      $53,502          $51,317           $45,254
      Book value per share       $10.94           $10.49             $9.31
      Tangible book value
       per share                 $10.85           $10.39             $9.46
 
 
      FINANCIAL RATIOS:                                First Quarter Ended
                                                            March 31,
                                                        2001           2000
      Return on average assets                          1.23%          1.24%
      Return on average equity                         14.91%         15.39%
      Efficiency ratio                                 65.77%         66.06%
      Operating expenses to average assets              4.27%          4.52%
      Net interest margin                               5.58%          5.79%
      Average equity to average assets                  8.22%          8.04%
      Leverage ratio (end of period)                    7.83%          7.85%
      Total risk based capital ratio (end of period)   11.51%         11.33%
 
 
      ALLOWANCE FOR LOAN LOSSES:     March 31,     December 31,     March 31,
                                       2001            2000           2000
      Balance beginning of period     $6,307          $5,387        $5,387
      Provision for loan losses         $505          $2,475          $625
      Net charge-offs                   $354          $1,555          $572
      Balance end of period           $6,458          $6,307        $5,440
 
      Allowance for loan losses
       to total loans                  1.38%           1.37%         1.38%
      Allowance for loan losses to
       non-performing loans             659%            325%          136%
 
 
      NON-PERFORMING ASSETS:         March 31,     December 31,    March 31,
                                       2001            2000          2000
      Accruing loans - 90 days
       past due                          $18              $6            $4
      Non-accrual loans                 $962          $1,937        $3,992
      Restructured loans                  --              --            --
      Total non-performing loans        $980          $1,943        $3,996
      Other real estate owned         $1,933          $2,016        $1,994
      Total non-performing assets     $2,913          $3,959        $5,990
      Total non-performing assets
       to total assets                 0.44%           0.61%         1.03%
 
     Statements which are forward-looking are not historical facts, and involve
 risks and uncertainties that could cause First State's results to differ
 materially from those in any forward-looking statements.  These risks include
 the effect changes in economic conditions may have on overall loan quality,
 changes in net interest margin due to changes in interest rates, possible loss
 of key personnel, need for additional capital should First State experience
 faster than anticipated growth, factors which could affect First State's
 ability to compete in its trade areas, changes in regulations and governmental
 policies, and the risks described in First State's Securities and Exchange
 Commission filings.
     First State's news releases are available at no charge through PR
 Newswire's Company News On-Call fax service.  For a menu call
 1-800-IR-NEWS-9 ext 108540 or (1-800-476-3979).  Internet access is
 at http://www.prnewswire.com/cnoc/exec/menu?108540.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87716809
 
 SOURCE  First State Bancorporation