Local Financial Corporation Reports First Quarter Results

Apr 11, 2001, 01:00 ET from Local Financial Corporation

    OKLAHOMA CITY, April 11 /PRNewswire/ --
 Local Financial Corporation (Nasdaq:   LFIN) announced earnings for the first
 quarter ended on March 31, 2001, of $6.8 million, an increase of 13.3 percent
 over the same period in 2000.  Basic earnings per share increased to $0.33
 from $0.29 for the first quarter of last year.  The Company reported an
 annualized return on assets of 1.09 percent, and a return on equity of
 17.3 percent.  Local's net interest margin increased to 3.44 percent and the
 efficiency ratio was 56 percent.  Net income for the quarter increased by
 32.6 percent after accounting for the extraordinary item represented by the
 purchase and retirement of senior notes in March of last year.
 
                                           For the Three Months Ended March 31,
                                              2001           2000     % Change
 
      Interest Income                      $  48,891      $  45,800      6.7%
      Interest Expense                        28,246         26,762      5.5
 
          NET INTEREST INCOME                 20,645         19,038      8.4
 
      Provision for Loan Losses                  750            500     50.0
 
      Noninterest Income                       4,601          4,265      7.9
      Noninterest Expense                     14,450         13,442      7.5
 
          INCOME BEFORE TAXES AND
           EXTRAORDINARY ITEM                 10,046          9,361      7.3
 
      Tax Provision                            3,271          3,381     (3.3)
 
          INCOME BEFORE
           EXTRAORDINARY ITEM                  6,775          5,980     13.3
 
      Extraordinary Item - Purchase and
       Retirement of Senior Notes, net of tax     (3)          (871)     ---
 
          NET INCOME                       $   6,772      $   5,109     32.6%
 
      Earnings per Share Before
       Extraordinary Item:
          Basic                            $    0.33      $    0.29     13.8%
          Diluted                               0.32           0.29     10.3
 
      Earnings per Share - Net Income:
          Basic                            $    0.33      $    0.25     32.0%
          Diluted                               0.32           0.25     28.0
 
      Average Shares Outstanding:
          Basic                           20,538,853     20,537,209
          Diluted                         21,131,920     20,769,374
 
     The 8.4 percent increase in net interest income shown above results
 primarily from the Bank's successful commercial lending activities.  In
 addition, funding costs continue to benefit from increases in transaction
 accounts.  Edward A. Townsend, Chairman and CEO, said, "We are extremely
 pleased to announce strong first quarter earnings.  We expect 2001 to be a
 good year as we continue building a significant statewide banking franchise in
 Oklahoma."
     Loans totaled $1.9 billion, an increase of $150 million or 8.6 percent
 from the same period last year while Local's asset quality, our most important
 objective, remained high.  Nonperforming assets amounted to $9.3 million and
 represented 0.36 percent of total assets which compares favorably with peers.
 "We take great pride in the diligence incorporated into our lending processes
 and the experience of our credit management team," commented Mr. Townsend.
     Demand deposits totaled $608 million as of March 31, 2001, an increase of
 $124 million or 25.6 percent over the same period last year, as a result of
 new consumer and commercial transaction accounts.  The Bank's Operations
 Center, opened in 1999, continues to enhance system capabilities with state-
 of-the-art software and cash management product offerings.  These capabilities
 include a new branch retail platform system designed to facilitate more
 efficient services to our growing customer base.  Internet banking for
 commercial customers provided through LocaLink is fully operational and is
 being utilized by a significant number of companies.  The Bank is also testing
 a complete suite of Internet banking products for consumers which will become
 fully operational by July 1, 2001.  In addition to the increase in demand
 deposits, corporate sweep accounts carried as "Securities sold under
 agreements to repurchase," totaled $48 million, and represent core
 relationships.  "We continue to center growth strategies around the principle
 that Oklahoma banking customers want relationship-oriented bankers," restated
 Mr. Townsend.
     Local Financial is the parent company of Local Oklahoma Bank, N.A. which
 operates 51 branches across Oklahoma with particular emphasis on the state's
 three largest markets.  Total deposits at March 31, 2001, in these key markets
 were $729 million in Oklahoma City, $450 million in Tulsa, and $193 million in
 Lawton.
 
     To the extent that statements in this report relate to the plans,
 objectives or future performance of Local Financial Corporation, these
 statements are considered to be forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Such statements are
 based on management's current expectations and the current economic
 environment.  Actual events and results in future periods may differ
 materially from those currently expected due to various risks and
 uncertainties.  Additional discussion of factors affecting Local Financial's
 business and prospects is contained in its periodic filings with the
 Securities and Exchange Commission.
 
 

SOURCE Local Financial Corporation
    OKLAHOMA CITY, April 11 /PRNewswire/ --
 Local Financial Corporation (Nasdaq:   LFIN) announced earnings for the first
 quarter ended on March 31, 2001, of $6.8 million, an increase of 13.3 percent
 over the same period in 2000.  Basic earnings per share increased to $0.33
 from $0.29 for the first quarter of last year.  The Company reported an
 annualized return on assets of 1.09 percent, and a return on equity of
 17.3 percent.  Local's net interest margin increased to 3.44 percent and the
 efficiency ratio was 56 percent.  Net income for the quarter increased by
 32.6 percent after accounting for the extraordinary item represented by the
 purchase and retirement of senior notes in March of last year.
 
                                           For the Three Months Ended March 31,
                                              2001           2000     % Change
 
      Interest Income                      $  48,891      $  45,800      6.7%
      Interest Expense                        28,246         26,762      5.5
 
          NET INTEREST INCOME                 20,645         19,038      8.4
 
      Provision for Loan Losses                  750            500     50.0
 
      Noninterest Income                       4,601          4,265      7.9
      Noninterest Expense                     14,450         13,442      7.5
 
          INCOME BEFORE TAXES AND
           EXTRAORDINARY ITEM                 10,046          9,361      7.3
 
      Tax Provision                            3,271          3,381     (3.3)
 
          INCOME BEFORE
           EXTRAORDINARY ITEM                  6,775          5,980     13.3
 
      Extraordinary Item - Purchase and
       Retirement of Senior Notes, net of tax     (3)          (871)     ---
 
          NET INCOME                       $   6,772      $   5,109     32.6%
 
      Earnings per Share Before
       Extraordinary Item:
          Basic                            $    0.33      $    0.29     13.8%
          Diluted                               0.32           0.29     10.3
 
      Earnings per Share - Net Income:
          Basic                            $    0.33      $    0.25     32.0%
          Diluted                               0.32           0.25     28.0
 
      Average Shares Outstanding:
          Basic                           20,538,853     20,537,209
          Diluted                         21,131,920     20,769,374
 
     The 8.4 percent increase in net interest income shown above results
 primarily from the Bank's successful commercial lending activities.  In
 addition, funding costs continue to benefit from increases in transaction
 accounts.  Edward A. Townsend, Chairman and CEO, said, "We are extremely
 pleased to announce strong first quarter earnings.  We expect 2001 to be a
 good year as we continue building a significant statewide banking franchise in
 Oklahoma."
     Loans totaled $1.9 billion, an increase of $150 million or 8.6 percent
 from the same period last year while Local's asset quality, our most important
 objective, remained high.  Nonperforming assets amounted to $9.3 million and
 represented 0.36 percent of total assets which compares favorably with peers.
 "We take great pride in the diligence incorporated into our lending processes
 and the experience of our credit management team," commented Mr. Townsend.
     Demand deposits totaled $608 million as of March 31, 2001, an increase of
 $124 million or 25.6 percent over the same period last year, as a result of
 new consumer and commercial transaction accounts.  The Bank's Operations
 Center, opened in 1999, continues to enhance system capabilities with state-
 of-the-art software and cash management product offerings.  These capabilities
 include a new branch retail platform system designed to facilitate more
 efficient services to our growing customer base.  Internet banking for
 commercial customers provided through LocaLink is fully operational and is
 being utilized by a significant number of companies.  The Bank is also testing
 a complete suite of Internet banking products for consumers which will become
 fully operational by July 1, 2001.  In addition to the increase in demand
 deposits, corporate sweep accounts carried as "Securities sold under
 agreements to repurchase," totaled $48 million, and represent core
 relationships.  "We continue to center growth strategies around the principle
 that Oklahoma banking customers want relationship-oriented bankers," restated
 Mr. Townsend.
     Local Financial is the parent company of Local Oklahoma Bank, N.A. which
 operates 51 branches across Oklahoma with particular emphasis on the state's
 three largest markets.  Total deposits at March 31, 2001, in these key markets
 were $729 million in Oklahoma City, $450 million in Tulsa, and $193 million in
 Lawton.
 
     To the extent that statements in this report relate to the plans,
 objectives or future performance of Local Financial Corporation, these
 statements are considered to be forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Such statements are
 based on management's current expectations and the current economic
 environment.  Actual events and results in future periods may differ
 materially from those currently expected due to various risks and
 uncertainties.  Additional discussion of factors affecting Local Financial's
 business and prospects is contained in its periodic filings with the
 Securities and Exchange Commission.
 
 SOURCE  Local Financial Corporation