Gulf West Banks, Inc., Parent of Mercantile Bank, Reports Increase in First Quarter Earnings

Apr 18, 2001, 01:00 ET from Gulf West Banks, Inc.

    ST. PETERSBURG, Fla., April 18 /PRNewswire/ --
 Gulf West Banks, Inc., (Nasdaq:   GWBK), reported net earnings for the quarter
 ended March 31, 2001, of $859,000, or $.11 per diluted share, compared to
 $777,000, or $.10 per share the year before.  The 10.5% improvement year-to-
 year is due primarily to increases in earning assets and noninterest income.
 Noninterest expense as a percent of assets was up slightly in 2001, compared
 to 2000, as a result of three (3) new bank offices opened by Mercantile Bank
 in the latter part of 2000.  These offices are expected to be contributing to
 company profits by the end of 2001.
     Total assets of the company at March 31, 2001 were $466 million, up 9%
 over the year before.  Approximately $31 million of the $38 million in asset
 growth resulted from an increase in net loans.  Nonperforming assets as a
 percent of total assets declined from .11% in the first quarter of 2000 to
 .07% (7/100's of one percent) at quarter-end 2001.  Stockholder equity at
 March 31, 2001, was $37.1 million, an increase of nearly $6 million over the
 prior year.  The company's capital-to-asset ratio on March 31, 2001, was
 7.96%.
     Gulf West Banks, Inc. is a $466 million asset financial holding company
 based in St. Petersburg, Florida.  Gulf West owns 100 percent of Mercantile
 Bank, a state chartered, commercial bank founded in 1986.  Mercantile
 currently serves the Pinellas, Hillsborough and Pasco County communities of
 the Tampa Bay area with 15 banking offices. www.bankmercantile.com
 
     This press release contains certain forward-looking statements which
 represent Gulf West's expectations or beliefs, including, but not limited to,
 statements concerning the banking industry and Gulf West's operations,
 performance, financial condition, and growth.  For this purpose, any
 statements contained in this Report that are not statements of historical fact
 may be deemed to be forward-looking statements.  These statements by their
 nature involve substantial risks and uncertainties, certain of which are
 beyond Gulf West's control, and actual results may differ materially depending
 on a variety of important factors, including competition, general economic
 conditions, potential changes in interest rates, and changes in the value of
 real estate securing loans made by Mercantile, among other things.  Gulf West
 makes such forward-looking statements in good faith pursuant to the "safe
 harbor" provisions of the Private Securities Litigation Reform Act of 1995.
 
                             GULF WEST BANKS, INC.
                            St. Petersburg, Florida
                              FINANCIAL HIGHLIGHTS
                (Dollars in thousands, except per share figures)
                                  (Unaudited)
 
                                                               At
                                                  March 31,         March 31,
                                                      2001             2000
 
     Total assets                                    $466,177        428,319
     Loans receivable, net                           $322,056        290,733
     Deposits                                        $383,246        370,134
     Stockholders' equity                             $37,119         31,182
     Book value per share*                              $4.98           4.21
     Number of common shares outstanding*           7,451,353      7,403,016
 
 
                                                        For the Three Months
                                                          Ended March 31,
                                                         2001           2000
 
     Interest income                                   $8,218          7,478
 
     Interest expense                                   3,972          3,508
 
     Net interest income                                4,246          3,970
 
     Provision for loan losses                            157            223
 
     Net interest income after
      provision for loan losses                         4,089          3,747
 
     Noninterest income                                   949            872
     Noninterest expense                                3,771          3,459
 
     Earnings before income taxes                       1,267          1,160
 
     Income taxes                                         408            383
 
     Net earnings                                        $859            777
 
     Earnings per share:
      Basic *                                           $0.12          $0.11
      Diluted *                                         $0.11          $0.10
 
 
                                                   For the Quarter Ended or At
                                                     March 31,       March 31,
                                                        2001           2000
 
     Yield on the loan portfolio                        8.57%          8.38%
     Yield on securities                                6.57%          6.42%
     Yield on total interest-earning assets             8.12%          7.89%
     Cost of total interest-bearing liabilities         4.62%          4.24%
     Net interest margin                                4.19%          4.19%
     Return on average assets for the period            0.77%          0.74%
     Return on average equity for the period            9.46%         10.16%
     Equity to total assets at end of period            7.96%          7.28%
     Nonperforming loans and foreclosed real estate
      to total assets at end of period                  0.07%          0.11%
     Noninterest expense to average assets              3.37%          3.30%
 
     *All per share amounts reflect the 5% stock dividend declared on
 September 21, 2000.
 
 

SOURCE Gulf West Banks, Inc.
    ST. PETERSBURG, Fla., April 18 /PRNewswire/ --
 Gulf West Banks, Inc., (Nasdaq:   GWBK), reported net earnings for the quarter
 ended March 31, 2001, of $859,000, or $.11 per diluted share, compared to
 $777,000, or $.10 per share the year before.  The 10.5% improvement year-to-
 year is due primarily to increases in earning assets and noninterest income.
 Noninterest expense as a percent of assets was up slightly in 2001, compared
 to 2000, as a result of three (3) new bank offices opened by Mercantile Bank
 in the latter part of 2000.  These offices are expected to be contributing to
 company profits by the end of 2001.
     Total assets of the company at March 31, 2001 were $466 million, up 9%
 over the year before.  Approximately $31 million of the $38 million in asset
 growth resulted from an increase in net loans.  Nonperforming assets as a
 percent of total assets declined from .11% in the first quarter of 2000 to
 .07% (7/100's of one percent) at quarter-end 2001.  Stockholder equity at
 March 31, 2001, was $37.1 million, an increase of nearly $6 million over the
 prior year.  The company's capital-to-asset ratio on March 31, 2001, was
 7.96%.
     Gulf West Banks, Inc. is a $466 million asset financial holding company
 based in St. Petersburg, Florida.  Gulf West owns 100 percent of Mercantile
 Bank, a state chartered, commercial bank founded in 1986.  Mercantile
 currently serves the Pinellas, Hillsborough and Pasco County communities of
 the Tampa Bay area with 15 banking offices. www.bankmercantile.com
 
     This press release contains certain forward-looking statements which
 represent Gulf West's expectations or beliefs, including, but not limited to,
 statements concerning the banking industry and Gulf West's operations,
 performance, financial condition, and growth.  For this purpose, any
 statements contained in this Report that are not statements of historical fact
 may be deemed to be forward-looking statements.  These statements by their
 nature involve substantial risks and uncertainties, certain of which are
 beyond Gulf West's control, and actual results may differ materially depending
 on a variety of important factors, including competition, general economic
 conditions, potential changes in interest rates, and changes in the value of
 real estate securing loans made by Mercantile, among other things.  Gulf West
 makes such forward-looking statements in good faith pursuant to the "safe
 harbor" provisions of the Private Securities Litigation Reform Act of 1995.
 
                             GULF WEST BANKS, INC.
                            St. Petersburg, Florida
                              FINANCIAL HIGHLIGHTS
                (Dollars in thousands, except per share figures)
                                  (Unaudited)
 
                                                               At
                                                  March 31,         March 31,
                                                      2001             2000
 
     Total assets                                    $466,177        428,319
     Loans receivable, net                           $322,056        290,733
     Deposits                                        $383,246        370,134
     Stockholders' equity                             $37,119         31,182
     Book value per share*                              $4.98           4.21
     Number of common shares outstanding*           7,451,353      7,403,016
 
 
                                                        For the Three Months
                                                          Ended March 31,
                                                         2001           2000
 
     Interest income                                   $8,218          7,478
 
     Interest expense                                   3,972          3,508
 
     Net interest income                                4,246          3,970
 
     Provision for loan losses                            157            223
 
     Net interest income after
      provision for loan losses                         4,089          3,747
 
     Noninterest income                                   949            872
     Noninterest expense                                3,771          3,459
 
     Earnings before income taxes                       1,267          1,160
 
     Income taxes                                         408            383
 
     Net earnings                                        $859            777
 
     Earnings per share:
      Basic *                                           $0.12          $0.11
      Diluted *                                         $0.11          $0.10
 
 
                                                   For the Quarter Ended or At
                                                     March 31,       March 31,
                                                        2001           2000
 
     Yield on the loan portfolio                        8.57%          8.38%
     Yield on securities                                6.57%          6.42%
     Yield on total interest-earning assets             8.12%          7.89%
     Cost of total interest-bearing liabilities         4.62%          4.24%
     Net interest margin                                4.19%          4.19%
     Return on average assets for the period            0.77%          0.74%
     Return on average equity for the period            9.46%         10.16%
     Equity to total assets at end of period            7.96%          7.28%
     Nonperforming loans and foreclosed real estate
      to total assets at end of period                  0.07%          0.11%
     Noninterest expense to average assets              3.37%          3.30%
 
     *All per share amounts reflect the 5% stock dividend declared on
 September 21, 2000.
 
 SOURCE  Gulf West Banks, Inc.