Success Bancshares, Inc.Announces 67% Increase in Net Income

Apr 27, 2001, 01:00 ET from Success Bancshares, Inc.

    LINCOLNSHIRE, Ill., April 27 /PRNewswire/ -- Success Bancshares,
 Inc.(Nasdaq:   SXNB), the holding company for Success National Bank, announced
 that net income for the quarter ended March 31, 2001 was $658 thousand, an
 increase of $263 thousand or 66.6% from the net income of $395 thousand
 reported for the comparable quarter in 2000.  On a per share basis, earnings
 increased to $0.27 per diluted share for the first quarter of 2001, or 80.0%,
 from $0.15 per diluted share for the 2000 quarter. Wilbur G. Meinen, Jr.,
 Chairman, President and CEO commented: "We are very pleased with the
 improvement in earnings experienced during the first quarter of this year.
 The numerous restructuring activities completed in 1999 and last year are
 beginning to reflect positively on the Company's financial results."
     Total assets of the Company were $592.1 million at March 31, 2001, down
 slightly from $601.3 million at December 31, 2000. Overnight investments
 decreased approximately $23.6 million or 57.9% to $17.2 million at March 31,
 2001, as compared to $40.8 million at year-end 2000. Total loans increased
 $15.2 million, or 3.1%, to $500.8 million from the $485.6 million reported at
 December 31, 2000. Real estate mortgage loans increased approximately $14.3
 million or 5.8% to $262.2 million at March 31, 2001 as compared to $247.8
 million at December 31, 2000.  Deposits were $485.1 million at March 31, 2001
 as compared to $490.7 million at the end of 2000, a decrease of $5.6 million
 or 1.1%. Total borrowings decreased $2.9 million or 3.8% to $71.8 million as
 compared to $74.7 million at December 31, 2000. The Company's shareholders'
 equity and book value per common share increased to $30.3 million and $12.44,
 respectively, at March 31, 2001 compared to $30.1 million and $11.48 at March
 31, 2000.
     At March 31, 2001, the Company's allowance for loan losses was $5.2
 million or approximately 1.03% of total loans. Management, through its
 analysis and assessment procedures, considers the allowance adequate for
 estimated loan losses in the portfolio at March 31, 2001. For the quarter, the
 Company recorded a provision for loan losses of $300 thousand and had no net
 loan charge-offs. For the quarter ended March 31, 2000, the Company recorded a
 provision for loan losses of $100 thousand and recognized $13 thousand in net
 loan charge-offs.
     Net interest income for the quarter ended March 31, 2001 was $4.6 million,
 an increase of $240 thousand, or 5.6%, over the $4.3 million recorded for the
 comparable period in 2000.  The Company's net interest margin for the current
 quarter was 3.35% as compared to 3.73% for the quarter ended March 31,
 2000 and 3.58% for the quarter ended December 31, 2000.  The Company's net
 interest margin for the year ended 2000 was 3.70%.  Kurt C. Felde, Executive
 Vice President and Chief Financial Officer noted:  "The deterioration in the
 Company's net interest margin during the past 12 to 18 months is largely due
 to the impact of increasing rates, as experienced in late 1999 and early 2000,
 on the Company's one-year negative gap.  Management has reduced interest rate
 sensitivity by improving the Company's one-year gap position from negative
 18.0% at December 31, 1999 to negative 5.7% at March 31, 2001.  This
 improvement was primarily accomplished through the use of indexed loan and
 deposit products.  Management anticipates that the rate decreases experienced
 during the quarter ended March 31, 2001 will have a positive impact on the
 Company's net interest margin."
     Total other operating income was $799 thousand for the quarter ended March
 31, 2001 as compared to $746 thousand for the comparable quarter in 2000.
 Service charges on deposit accounts were $641 thousand, an increase 7.7% from
 $595 thousand reported for the comparable quarter in 2000. For the quarter,
 other noninterest income was $120 thousand, compared to $88 thousand recorded
 during the comparable period in 2000.
     Total other operating expenses were $4.1 million for the three months
 ended March 31, 2001 compared to $4.4 million for the first quarter of 2000.
 Salaries and benefits expense decreased $38 thousand, or 1.7%, to $2.2 million
 for the current quarter as compared to the same period in 2000. Occupancy
 expenses decreased $196 thousand, or 19.6%, to $800 thousand for the quarter
 ended March 31, 2001 versus the comparable period in 2000. The decrease in
 occupancy expense is due primarily to the closures during 2000 of three branch
 offices and the disposition of one unopened branch site under lease in 2000.
 Other noninterest expense decreased $89 thousand, or 9.0%, to $902 thousand
 from the $991 thousand reported for the comparable period in 2000.
     Success Bancshares, Inc. provides community-banking services through seven
 branch locations and its corporate center to individuals and small-to-medium
 sized businesses primarily in the northern Chicagoland area. The Company's
 common stock is traded on the Nasdaq National Market system under the symbol
 "SXNB." The Company can be reached at its web page:
 http://www.successbank.com .
     Statements made about the Company's future financial performance,
 strategic plans or objectives, revenues or earnings projections, or other
 financial items and similar statements are not guarantees of future
 performance, but are forward looking statements. By their nature, these
 statements are subject to numerous uncertainties that could cause actual
 results or events to differ materially from those predicted in the statements.
 Important factors that might cause the Company's actual results to differ
 materially include, but are not limited to, the following:
 
     _ Federal and state legislative and regulatory developments;
     _ The impact of continued loan and deposit promotions on the Company's net
       interest margin;
     _ Changes in management's estimate of the adequacy of the allowance for
       loan losses;
     _ Increases in loan delinquencies or write-offs;
     _ Interest rate movements and their impact on customer behavior and the
       Company's net interest margin;
     _ The impact of interest rate sensitivity restructuring activities;
     _ The impact of repricing and competitors' pricing initiatives on loan and
       deposit products;
     _ The Company's ability to adapt successfully to technological changes to
       meet customers' needs and developments in the marketplace;
     _ Changes in levels and direction of problem loans and writeoffs;
     _ The Company's ability to access cost effective funding; and
     _ Changes in financial markets and general economic conditions.
 
 
                            Success Bancshares, Inc.
                      Summary Consolidated Financial Data
                                  (Unaudited)
                                                             Quarter Ended
                                                              March 31,
                                                         2001           2000
                                                           (In thousands)
     Statement of Income Data:
     Interest income                                  $11,217         $9,467
     Interest expense                                   6,657          5,147
     Net interest income                                4,560          4,320
     Provision for loan losses                            300            100
     Other income                                         799            746
     Other expenses                                     4,100          4,432
     Net income before taxes                              959            534
     Income tax expense                                   301            139
     Net income                                          $658           $395
     Common Share Data:
     Earnings per common share:
     Basic                                              $0.27          $0.15
     Diluted                                            $0.27          $0.15
     Weighted average shares outstanding
      (in thousands)
     Basic                                              2,439          2,686
     Diluted                                            2,465          2,686
 
 
                                                       31-Mar         31-Mar
                                                         2001           2000
     Balance Sheet Data:                                  (In thousands)
 
     Cash and cash equivalents                       $ 37,041       $ 12,432
     Securities                                        38,534         35,914
     Loans, net                                       495,635        447,491
     Total assets                                     592,123        515,434
     Deposits                                         485,129        419,478
     Borrowings, including repurchase agreements       56,807         47,690
     Trust preferred securities                        15,000         15,000
     Shareholders' equity                            $ 30,341       $ 30,078
     Loans to deposits                                102.17%        106.68%
 
                              Success Bancshares, Inc.
                        Summary Consolidated Financial Data
                                    (Unaudited)
                                                            Quarter Ended
                                                            March 31, (A)
                                                         2001           2000
     Performance Data:
     Return on average assets                           0.45%          0.31%
     Return on average equity                           8.87%          5.21%
     Net interest margin                                3.35%          3.73%
 
                                                       31-Mar         31-Mar
                                                         2001           2000
     Asset Quality Ratios:
     Nonperforming assets to total assets               1.29%          0.75%
     Nonperforming loans to total loans (B)             1.48%          0.84%
     Allowance for loan losses to total loans           1.03%          0.96%
     Nonperforming loans to allowance
      for loan losses                                 144.67%         87.17%
 
     Capital Ratios:
     Risk-based capital                                10.80%         12.49%
     Leverage capital (C)                               6.78%          7.95%
     Book value per common share                       $12.44         $11.48
     Other:
     Branch offices (including corporate)                   8             12
     Full-time equivalent employees                       160            198
 
     (A) All interim periods have been annualized.
     (B) Nonperforming loans consist of non-accrual loans and loans
         contractually past due 90 days or more.
     (B) The leverage ratio is defined as the ratio of Tier 1 risk-based
         capital to adjusted total average assets.
 
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SOURCE Success Bancshares, Inc.
    LINCOLNSHIRE, Ill., April 27 /PRNewswire/ -- Success Bancshares,
 Inc.(Nasdaq:   SXNB), the holding company for Success National Bank, announced
 that net income for the quarter ended March 31, 2001 was $658 thousand, an
 increase of $263 thousand or 66.6% from the net income of $395 thousand
 reported for the comparable quarter in 2000.  On a per share basis, earnings
 increased to $0.27 per diluted share for the first quarter of 2001, or 80.0%,
 from $0.15 per diluted share for the 2000 quarter. Wilbur G. Meinen, Jr.,
 Chairman, President and CEO commented: "We are very pleased with the
 improvement in earnings experienced during the first quarter of this year.
 The numerous restructuring activities completed in 1999 and last year are
 beginning to reflect positively on the Company's financial results."
     Total assets of the Company were $592.1 million at March 31, 2001, down
 slightly from $601.3 million at December 31, 2000. Overnight investments
 decreased approximately $23.6 million or 57.9% to $17.2 million at March 31,
 2001, as compared to $40.8 million at year-end 2000. Total loans increased
 $15.2 million, or 3.1%, to $500.8 million from the $485.6 million reported at
 December 31, 2000. Real estate mortgage loans increased approximately $14.3
 million or 5.8% to $262.2 million at March 31, 2001 as compared to $247.8
 million at December 31, 2000.  Deposits were $485.1 million at March 31, 2001
 as compared to $490.7 million at the end of 2000, a decrease of $5.6 million
 or 1.1%. Total borrowings decreased $2.9 million or 3.8% to $71.8 million as
 compared to $74.7 million at December 31, 2000. The Company's shareholders'
 equity and book value per common share increased to $30.3 million and $12.44,
 respectively, at March 31, 2001 compared to $30.1 million and $11.48 at March
 31, 2000.
     At March 31, 2001, the Company's allowance for loan losses was $5.2
 million or approximately 1.03% of total loans. Management, through its
 analysis and assessment procedures, considers the allowance adequate for
 estimated loan losses in the portfolio at March 31, 2001. For the quarter, the
 Company recorded a provision for loan losses of $300 thousand and had no net
 loan charge-offs. For the quarter ended March 31, 2000, the Company recorded a
 provision for loan losses of $100 thousand and recognized $13 thousand in net
 loan charge-offs.
     Net interest income for the quarter ended March 31, 2001 was $4.6 million,
 an increase of $240 thousand, or 5.6%, over the $4.3 million recorded for the
 comparable period in 2000.  The Company's net interest margin for the current
 quarter was 3.35% as compared to 3.73% for the quarter ended March 31,
 2000 and 3.58% for the quarter ended December 31, 2000.  The Company's net
 interest margin for the year ended 2000 was 3.70%.  Kurt C. Felde, Executive
 Vice President and Chief Financial Officer noted:  "The deterioration in the
 Company's net interest margin during the past 12 to 18 months is largely due
 to the impact of increasing rates, as experienced in late 1999 and early 2000,
 on the Company's one-year negative gap.  Management has reduced interest rate
 sensitivity by improving the Company's one-year gap position from negative
 18.0% at December 31, 1999 to negative 5.7% at March 31, 2001.  This
 improvement was primarily accomplished through the use of indexed loan and
 deposit products.  Management anticipates that the rate decreases experienced
 during the quarter ended March 31, 2001 will have a positive impact on the
 Company's net interest margin."
     Total other operating income was $799 thousand for the quarter ended March
 31, 2001 as compared to $746 thousand for the comparable quarter in 2000.
 Service charges on deposit accounts were $641 thousand, an increase 7.7% from
 $595 thousand reported for the comparable quarter in 2000. For the quarter,
 other noninterest income was $120 thousand, compared to $88 thousand recorded
 during the comparable period in 2000.
     Total other operating expenses were $4.1 million for the three months
 ended March 31, 2001 compared to $4.4 million for the first quarter of 2000.
 Salaries and benefits expense decreased $38 thousand, or 1.7%, to $2.2 million
 for the current quarter as compared to the same period in 2000. Occupancy
 expenses decreased $196 thousand, or 19.6%, to $800 thousand for the quarter
 ended March 31, 2001 versus the comparable period in 2000. The decrease in
 occupancy expense is due primarily to the closures during 2000 of three branch
 offices and the disposition of one unopened branch site under lease in 2000.
 Other noninterest expense decreased $89 thousand, or 9.0%, to $902 thousand
 from the $991 thousand reported for the comparable period in 2000.
     Success Bancshares, Inc. provides community-banking services through seven
 branch locations and its corporate center to individuals and small-to-medium
 sized businesses primarily in the northern Chicagoland area. The Company's
 common stock is traded on the Nasdaq National Market system under the symbol
 "SXNB." The Company can be reached at its web page:
 http://www.successbank.com .
     Statements made about the Company's future financial performance,
 strategic plans or objectives, revenues or earnings projections, or other
 financial items and similar statements are not guarantees of future
 performance, but are forward looking statements. By their nature, these
 statements are subject to numerous uncertainties that could cause actual
 results or events to differ materially from those predicted in the statements.
 Important factors that might cause the Company's actual results to differ
 materially include, but are not limited to, the following:
 
     _ Federal and state legislative and regulatory developments;
     _ The impact of continued loan and deposit promotions on the Company's net
       interest margin;
     _ Changes in management's estimate of the adequacy of the allowance for
       loan losses;
     _ Increases in loan delinquencies or write-offs;
     _ Interest rate movements and their impact on customer behavior and the
       Company's net interest margin;
     _ The impact of interest rate sensitivity restructuring activities;
     _ The impact of repricing and competitors' pricing initiatives on loan and
       deposit products;
     _ The Company's ability to adapt successfully to technological changes to
       meet customers' needs and developments in the marketplace;
     _ Changes in levels and direction of problem loans and writeoffs;
     _ The Company's ability to access cost effective funding; and
     _ Changes in financial markets and general economic conditions.
 
 
                            Success Bancshares, Inc.
                      Summary Consolidated Financial Data
                                  (Unaudited)
                                                             Quarter Ended
                                                              March 31,
                                                         2001           2000
                                                           (In thousands)
     Statement of Income Data:
     Interest income                                  $11,217         $9,467
     Interest expense                                   6,657          5,147
     Net interest income                                4,560          4,320
     Provision for loan losses                            300            100
     Other income                                         799            746
     Other expenses                                     4,100          4,432
     Net income before taxes                              959            534
     Income tax expense                                   301            139
     Net income                                          $658           $395
     Common Share Data:
     Earnings per common share:
     Basic                                              $0.27          $0.15
     Diluted                                            $0.27          $0.15
     Weighted average shares outstanding
      (in thousands)
     Basic                                              2,439          2,686
     Diluted                                            2,465          2,686
 
 
                                                       31-Mar         31-Mar
                                                         2001           2000
     Balance Sheet Data:                                  (In thousands)
 
     Cash and cash equivalents                       $ 37,041       $ 12,432
     Securities                                        38,534         35,914
     Loans, net                                       495,635        447,491
     Total assets                                     592,123        515,434
     Deposits                                         485,129        419,478
     Borrowings, including repurchase agreements       56,807         47,690
     Trust preferred securities                        15,000         15,000
     Shareholders' equity                            $ 30,341       $ 30,078
     Loans to deposits                                102.17%        106.68%
 
                              Success Bancshares, Inc.
                        Summary Consolidated Financial Data
                                    (Unaudited)
                                                            Quarter Ended
                                                            March 31, (A)
                                                         2001           2000
     Performance Data:
     Return on average assets                           0.45%          0.31%
     Return on average equity                           8.87%          5.21%
     Net interest margin                                3.35%          3.73%
 
                                                       31-Mar         31-Mar
                                                         2001           2000
     Asset Quality Ratios:
     Nonperforming assets to total assets               1.29%          0.75%
     Nonperforming loans to total loans (B)             1.48%          0.84%
     Allowance for loan losses to total loans           1.03%          0.96%
     Nonperforming loans to allowance
      for loan losses                                 144.67%         87.17%
 
     Capital Ratios:
     Risk-based capital                                10.80%         12.49%
     Leverage capital (C)                               6.78%          7.95%
     Book value per common share                       $12.44         $11.48
     Other:
     Branch offices (including corporate)                   8             12
     Full-time equivalent employees                       160            198
 
     (A) All interim periods have been annualized.
     (B) Nonperforming loans consist of non-accrual loans and loans
         contractually past due 90 days or more.
     (B) The leverage ratio is defined as the ratio of Tier 1 risk-based
         capital to adjusted total average assets.
 
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 SOURCE  Success Bancshares, Inc.