Pelican Financial Q1 Operating Income Up, Net Income Off From Accounting Principle Change

Apr 25, 2001, 01:00 ET from Pelican Financial, Inc.

    ANN ARBOR, Mich., April 25 /PRNewswire/ -- Pelican Financial, Inc.
 (Amex:   PFI) posted higher net operating income for the first quarter ended
 March 31, 2001, compared to the previous year, Charles C. Huffman, President
 and CEO, announced today.  The favorable operating results reflect solid
 growth at its bank subsidiary and strong mortgage volume and substantially
 improved profitability at its mortgage subsidiary.
     For the three months ended March 31, 2001, net operating income was
 $225,893, equivalent to $0.06 per share, up 30% over net operating income of
 $174,211, or $0.04 per share, for the first quarter of 2000.  Inclusive of a
 charge of $635,495, $0.16 per share, for the cumulative effect of a change in
 accounting principle, the net loss for the first quarter was $409,602, or
 $0.10 per share.  This compares with net income of $174,211, or $0.04 per
 share, for the comparable earlier quarter.
     Net operating income at Washtenaw Mortgage Company rose 109% to $100,224,
 from a loss of $110,546 for the year-earlier quarter.  After the accounting
 charge, the mortgage subsidiary recorded a net loss of $535,271, compared with
 a net loss of $110,546 for the first quarter of 2000.  Mortgage volume jumped
 123% to $585,998,000, from $262,634,000 the year before.  The volume rise
 boosted net interest income 44% to $736,088, from $509,649 in 2000's first
 quarter.  Noninterest income rose 48% to $3,987,044, from $2,697,646, chiefly
 from higher gain on sales of loans and mortgage-servicing rights.
     Pelican National Bank continued its pattern of strong growth, but posted
 lower net income.  Net income was $217,946, compared to $370,830, for 2000's
 first quarter.  Increases in net interest income and noninterest income were
 offset by a substantial rise in noninterest expenses from higher personnel
 costs and office overhead.
     Assets, deposits and loans experienced double-digit growth.
     At the close of this year's first quarter, assets at the Bank stood at
 $116,956,000, up 42% over assets of $82,490,500, at the close of the year-
 earlier quarter.  Deposits jumped 48% to $92,266,800, from $62,157,700 at the
 close of 2000's first quarter.  Net loans outstanding totaled $92,746,700, up
 41% over net loans outstanding of $65,769,310 the year before.
     Since December 31, 2000, assets increased 10%, deposits rose 12% and loans
 outstanding climbed 6%.
     Mr. Huffman said, "It was a positive quarter, despite the sizeable onetime
 charge for the cumulative effect of the change in accounting principle.  At
 Washtenaw Mortgage, new- and refinance-mortgage activity is at a very brisk
 pace.  Washtenaw's new California office is gaining marketshare and performing
 exceptionally well.  Our investments over the past two years in technology and
 online servicing are proving their worth.  At Pelican National Bank, we
 continue to be the pacesetter among peer banks.  We have opened a loan-
 production office in Sarasota and added staff at the Naples and Fort Myers
 branch offices to handle strong growth."
     Pelican Financial, Inc. (PFI) is the holding company for Washtenaw
 Mortgage Company, Ann Arbor, Michigan, and Pelican National Bank, Naples,
 Florida.  Founded in 1981, Washtenaw Mortgage Company is a leading wholesale
 mortgage banker.  Pelican National Bank, founded in 1997, is a full service
 community bank with branches in Naples and Fort Myers, Florida.
     This news release contains forward-looking statements made pursuant to the
 safe harbor provisions of Section 27A of the Securities Act of 1933, Section
 21E of the Securities Act of 1934 and Private Securities Litigation Reform Act
 of 1995.  Such statements are based on management's current expectations and
 are subject to a number of risk factors and uncertainties, which could cause
 actual results to differ materially from those described in the forward-
 looking statements.  These factors and uncertainties are contained in the
 Corporation's filings with the Securities and Exchange Commission, available
 via EDGAR.
 
 
                            PELICAN FINANCIAL, INC.
                          Consolidated Balance Sheets
                      March 31, 2001 and December 31, 2000
 
 
                                              2001          2000
     ASSETS
        Cash and cash equivalents        $16,729,549   $10,174,294
        Accounts receivable, net           7,165,205     5,510,387
        Securities available for sale      3,824,567     5,863,928
        Federal Reserve Bank Stock           970,000       970,000
        Loans held for sale              140,698,797    80,062,256
        Loans receivable, net             94,315,070    88,933,374
        Mortgage servicing rights, net     9,614,302     6,796,597
        Other real estate owned              162,588       117,489
        Premises and equipment, net          986,324       878,913
        Other assets                       2,165,910     1,929,105
 
                                        $276,632,312  $201,236,343
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Liabilities
        Deposits
             Noninterest-bearing         $13,649,821   $12,512,146
             Interest-bearing             78,497,910    69,496,306
                 Total deposits           92,147,731    82,008,452
        Due to bank                       35,069,248    12,507,351
        Notes payable                     44,902,552    27,815,712
        Repurchase agreements             64,066,095    38,981,233
        Federal Home Loan
         Bank borrowings                  14,000,000    14,000,000
        Other liabilities                  5,476,843     4,559,518
              Total liabilities          255,662,469   179,872,266
 
 
     Shareholders' equity
        Preferred stock, 200,000 shares
         authorized; none outstanding
        Common stock, 10,000,000 shares
         authorized; 3,992,836
         outstanding at March 31, 2001
            and December 31, 2000             39,928        39,928
        Additional paid in capital        13,631,156    13,631,156
        Retained earnings                  7,315,324     7,724,926
        Accumulated other comprehensive
         income, net of tax                  (16,565)      (31,933)
            Total shareholders' equity    20,969,843    21,364,077
 
                                        $276,632,312  $201,236,343
 
 
                             PELICAN FINANCIAL, INC
                 Consolidated Statements of Income (Unaudited)
              Three Months Ended March 31, 2001 and March 31, 2000
 
 
                                              2001          2000
     Interest income
        Loans, including fees             $5,074,011    $3,631,337
        Investment securities, taxable        99,815       110,749
        Federal funds sold
         and overnight accounts               98,252        26,030
              Total interest income        5,272,078     3,768,116
 
     Interest expense
        Deposits                           1,071,685       747,188
        Other borrowings                   2,168,043     1,255,531
            Total interest expense         3,239,728     2,002,719
 
     Net interest income                   2,032,350     1,765,397
 
     Provision for loan losses               120,000        90,000
 
     Net interest income after provision
      for loan losses                      1,912,350     1,675,397
 
     Noninterest income
        Securities gains                           -             -
        Service charges on
         deposit accounts                     23,980        10,463
        Servicing income                     351,766       202,633
        Gain on sales of mortgage
         servicing rights and loans, net   3,030,070       775,829
        Other income                         572,642     1,725,627
            Total noninterest income       3,978,458     2,714,552
 
     Noninterest expense
        Compensation and
         employee benefits                 3,153,842     2,250,826
        Occupancy and equipment              388,020       377,636
        Telephone                            144,205        95,361
        Postage                              150,567        90,982
        Amortization of mortgage
         servicing rights                    360,214       548,439
        Mortgage servicing rights
         valuation adjustment                597,095       (56,653)
        Other noninterest expense            747,579       814,528
            Total noninterest expense      5,541,522     4,121,119
 
     Income (loss) before income taxes and
      cumulative effect of change in
      accounting principle                   349,286       268,830
 
     Provision for income taxes              123,393        94,619
 
     Income (loss) before cumulative effect
      of change in accounting principle      225,893       174,211
 
     Cumulative effect of change in
      accounting principle                   635,495             -
 
     Net income (loss)                     $(409,602)     $174,211
 
     Comprehensive income (loss)           $(394,234)     $177,203
 
     Basic and diluted earnings per share
      before cumulative effect of change in
        accounting principle                   $0.06         $0.04
 
     Per share cumulative effect of change
      in accounting principle                  (0.16)            -
 
     Basic and diluted earnings
      (loss) per share                        $(0.10)        $0.04
 
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SOURCE Pelican Financial, Inc.
    ANN ARBOR, Mich., April 25 /PRNewswire/ -- Pelican Financial, Inc.
 (Amex:   PFI) posted higher net operating income for the first quarter ended
 March 31, 2001, compared to the previous year, Charles C. Huffman, President
 and CEO, announced today.  The favorable operating results reflect solid
 growth at its bank subsidiary and strong mortgage volume and substantially
 improved profitability at its mortgage subsidiary.
     For the three months ended March 31, 2001, net operating income was
 $225,893, equivalent to $0.06 per share, up 30% over net operating income of
 $174,211, or $0.04 per share, for the first quarter of 2000.  Inclusive of a
 charge of $635,495, $0.16 per share, for the cumulative effect of a change in
 accounting principle, the net loss for the first quarter was $409,602, or
 $0.10 per share.  This compares with net income of $174,211, or $0.04 per
 share, for the comparable earlier quarter.
     Net operating income at Washtenaw Mortgage Company rose 109% to $100,224,
 from a loss of $110,546 for the year-earlier quarter.  After the accounting
 charge, the mortgage subsidiary recorded a net loss of $535,271, compared with
 a net loss of $110,546 for the first quarter of 2000.  Mortgage volume jumped
 123% to $585,998,000, from $262,634,000 the year before.  The volume rise
 boosted net interest income 44% to $736,088, from $509,649 in 2000's first
 quarter.  Noninterest income rose 48% to $3,987,044, from $2,697,646, chiefly
 from higher gain on sales of loans and mortgage-servicing rights.
     Pelican National Bank continued its pattern of strong growth, but posted
 lower net income.  Net income was $217,946, compared to $370,830, for 2000's
 first quarter.  Increases in net interest income and noninterest income were
 offset by a substantial rise in noninterest expenses from higher personnel
 costs and office overhead.
     Assets, deposits and loans experienced double-digit growth.
     At the close of this year's first quarter, assets at the Bank stood at
 $116,956,000, up 42% over assets of $82,490,500, at the close of the year-
 earlier quarter.  Deposits jumped 48% to $92,266,800, from $62,157,700 at the
 close of 2000's first quarter.  Net loans outstanding totaled $92,746,700, up
 41% over net loans outstanding of $65,769,310 the year before.
     Since December 31, 2000, assets increased 10%, deposits rose 12% and loans
 outstanding climbed 6%.
     Mr. Huffman said, "It was a positive quarter, despite the sizeable onetime
 charge for the cumulative effect of the change in accounting principle.  At
 Washtenaw Mortgage, new- and refinance-mortgage activity is at a very brisk
 pace.  Washtenaw's new California office is gaining marketshare and performing
 exceptionally well.  Our investments over the past two years in technology and
 online servicing are proving their worth.  At Pelican National Bank, we
 continue to be the pacesetter among peer banks.  We have opened a loan-
 production office in Sarasota and added staff at the Naples and Fort Myers
 branch offices to handle strong growth."
     Pelican Financial, Inc. (PFI) is the holding company for Washtenaw
 Mortgage Company, Ann Arbor, Michigan, and Pelican National Bank, Naples,
 Florida.  Founded in 1981, Washtenaw Mortgage Company is a leading wholesale
 mortgage banker.  Pelican National Bank, founded in 1997, is a full service
 community bank with branches in Naples and Fort Myers, Florida.
     This news release contains forward-looking statements made pursuant to the
 safe harbor provisions of Section 27A of the Securities Act of 1933, Section
 21E of the Securities Act of 1934 and Private Securities Litigation Reform Act
 of 1995.  Such statements are based on management's current expectations and
 are subject to a number of risk factors and uncertainties, which could cause
 actual results to differ materially from those described in the forward-
 looking statements.  These factors and uncertainties are contained in the
 Corporation's filings with the Securities and Exchange Commission, available
 via EDGAR.
 
 
                            PELICAN FINANCIAL, INC.
                          Consolidated Balance Sheets
                      March 31, 2001 and December 31, 2000
 
 
                                              2001          2000
     ASSETS
        Cash and cash equivalents        $16,729,549   $10,174,294
        Accounts receivable, net           7,165,205     5,510,387
        Securities available for sale      3,824,567     5,863,928
        Federal Reserve Bank Stock           970,000       970,000
        Loans held for sale              140,698,797    80,062,256
        Loans receivable, net             94,315,070    88,933,374
        Mortgage servicing rights, net     9,614,302     6,796,597
        Other real estate owned              162,588       117,489
        Premises and equipment, net          986,324       878,913
        Other assets                       2,165,910     1,929,105
 
                                        $276,632,312  $201,236,343
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Liabilities
        Deposits
             Noninterest-bearing         $13,649,821   $12,512,146
             Interest-bearing             78,497,910    69,496,306
                 Total deposits           92,147,731    82,008,452
        Due to bank                       35,069,248    12,507,351
        Notes payable                     44,902,552    27,815,712
        Repurchase agreements             64,066,095    38,981,233
        Federal Home Loan
         Bank borrowings                  14,000,000    14,000,000
        Other liabilities                  5,476,843     4,559,518
              Total liabilities          255,662,469   179,872,266
 
 
     Shareholders' equity
        Preferred stock, 200,000 shares
         authorized; none outstanding
        Common stock, 10,000,000 shares
         authorized; 3,992,836
         outstanding at March 31, 2001
            and December 31, 2000             39,928        39,928
        Additional paid in capital        13,631,156    13,631,156
        Retained earnings                  7,315,324     7,724,926
        Accumulated other comprehensive
         income, net of tax                  (16,565)      (31,933)
            Total shareholders' equity    20,969,843    21,364,077
 
                                        $276,632,312  $201,236,343
 
 
                             PELICAN FINANCIAL, INC
                 Consolidated Statements of Income (Unaudited)
              Three Months Ended March 31, 2001 and March 31, 2000
 
 
                                              2001          2000
     Interest income
        Loans, including fees             $5,074,011    $3,631,337
        Investment securities, taxable        99,815       110,749
        Federal funds sold
         and overnight accounts               98,252        26,030
              Total interest income        5,272,078     3,768,116
 
     Interest expense
        Deposits                           1,071,685       747,188
        Other borrowings                   2,168,043     1,255,531
            Total interest expense         3,239,728     2,002,719
 
     Net interest income                   2,032,350     1,765,397
 
     Provision for loan losses               120,000        90,000
 
     Net interest income after provision
      for loan losses                      1,912,350     1,675,397
 
     Noninterest income
        Securities gains                           -             -
        Service charges on
         deposit accounts                     23,980        10,463
        Servicing income                     351,766       202,633
        Gain on sales of mortgage
         servicing rights and loans, net   3,030,070       775,829
        Other income                         572,642     1,725,627
            Total noninterest income       3,978,458     2,714,552
 
     Noninterest expense
        Compensation and
         employee benefits                 3,153,842     2,250,826
        Occupancy and equipment              388,020       377,636
        Telephone                            144,205        95,361
        Postage                              150,567        90,982
        Amortization of mortgage
         servicing rights                    360,214       548,439
        Mortgage servicing rights
         valuation adjustment                597,095       (56,653)
        Other noninterest expense            747,579       814,528
            Total noninterest expense      5,541,522     4,121,119
 
     Income (loss) before income taxes and
      cumulative effect of change in
      accounting principle                   349,286       268,830
 
     Provision for income taxes              123,393        94,619
 
     Income (loss) before cumulative effect
      of change in accounting principle      225,893       174,211
 
     Cumulative effect of change in
      accounting principle                   635,495             -
 
     Net income (loss)                     $(409,602)     $174,211
 
     Comprehensive income (loss)           $(394,234)     $177,203
 
     Basic and diluted earnings per share
      before cumulative effect of change in
        accounting principle                   $0.06         $0.04
 
     Per share cumulative effect of change
      in accounting principle                  (0.16)            -
 
     Basic and diluted earnings
      (loss) per share                        $(0.10)        $0.04
 
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 SOURCE  Pelican Financial, Inc.