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Britton & Koontz Capital Reports 1st Quarter 2012 Earnings

          Britton & Koontz Capital Reports 1st Quarter 2012 Earnings

PR Newswire

NATCHEZ, Miss., April 23, 2012

NATCHEZ, Miss., April 23, 2012 /PRNewswire/ --The Board of Directors of
Britton & Koontz Capital Corporation (Nasdaq: BKBK, "B&K Capital" or "the
Company") today reported net income and earnings per share for the quarter
ended March 31, 2012, of $243 thousand and $.11 per diluted share,
respectively, compared to $575 thousand and $.27 per diluted share,
respectively, for the quarter ended March 31, 2011. Annualized returns on
average assets and average equity for the quarter ended March 31, 2012, were
.28% and 2.48%, respectively, compared to .61% and 5.80%, respectively, for
the same period in 2011.

The decrease in earnings in the 1st quarter of 2012 as compared to the same
period in 2011 is due to the following three major factors. Net interest
income declined from $3.1 million to $2.4 million. Provision for loan losses
in the 1st quarter of 2011 was $750 thousand compared to $0 during the 1st
quarter of 2012. Additionally, the Company sold investment securities in 2011
for a gain of $667 thousand compared to $0 in 2012. 

The decline in net interest income described above was due primarily to lower
average earning assets, offset by lower funding costs of interest bearing
liabilities. Contributing to the lower average earning assets was a $28
million decrease in average loans coupled with a $21 million decline in
average investment securities offset by increases in average interest bearing
cash balances of $33 million. Net interest margin declined from 3.44% at
March 31, 2011, to 2.90% at March 31, 2012.

Non-interest income ended March 31, 2012, at $729 thousand compared to $1.5
million at March 31, 2011. Approximately $11 million of mortgage-backed
securities were sold in the 1st quarter of 2011 and gains on those sales were
$667 thousand, while there were no such sales in the 1st quarter of 2012.
Mortgage revenue also declined $126 thousand due to lower mortgage residential
originations and sales during the 1st quarter of 2012 compared to the same
period in 2011.

Non-interest expense decreased $251 thousand to $2.9 million at March 31,
2012, compared to $3.1 million at March 31, 2011. The decrease is primarily
due to lower personnel costs associated with the decrease in full time
equivalents from 109 to 102, offset by an increase in other real estate
expense of $14 thousand.

Total non-performing assets, which include non-accrual loans, loans past due
90 days or more and other real estate, ended the 1st quarter of 2012 at $12.9
million compared to $12.7 million at December 31, 2011. Non-performing assets
as a percentage of assets increased to 3.62% at March 31, 2012, from 3.47% at
December 31, 2011. The allowance for loan losses ended the 1st quarter of
2012 at $4.2 million, or 2.36% of loans, compared to $4.3 million, or 2.29% of
loans, at December 31, 2011. Non-accrual loans decreased from $8.8 million at
December 31, 2011, to $5.7 million at March 31, 2012, primarily due to the
transfer of a $3.5 million credit to other real estate. This transfer is the
primary reason for the increase in other real estate to $7.2 million at March
31, 2012, from $3.7 million at December 31, 2011. Loans past due 90 days or
more declined to $0 at March 31, 2012, from $199 thousand at December 31,
2011.

The Bank's provision for loan losses for the three month period ending March
31, 2012, was decreased to $0, compared to $750 thousand for the same period
in 2011. Management determined that no provision expense was warranted during
the 1st quarter of 2012 primarily because of the diminishing level of net
charge-offs and the current level of allowance for loan losses. The Bank's
allowance for loan losses to loans was 2.29% at December 31, 2011 compared to
2.36% at March 31, 2012. Management believes the Bank's allowance for loan
losses is sufficient to cover probable losses in the loan portfolio based on
information currently available to management. Net charge-offs in the 1st
quarter of 2012 were $78 thousand compared to $1.8 million in the 4th quarter
of 2011.

Britton & Koontz Capital Corporation, headquartered in Natchez, Mississippi,
is the parent company of Britton & Koontz Bank, N.A. which operates three full
service offices in Natchez, two in Vicksburg, Mississippi, and three in Baton
Rouge, Louisiana, and a loan production office in Central, Louisiana. As of
March 31, 2012, the Company reported assets of $356.5 million and equity of
$39.3 million. The Company's stock is traded on NASDAQ under the symbol BKBK
and the transfer agent is American Stock Transfer & Trust Company. Total
shares outstanding at March 31, 2012, were 2,138,466.

Forward Looking Statements

This news release contains statements regarding the projected performance of
Britton & Koontz Capital Corporation and its subsidiaries. These statements
constitute forward-looking information within the meaning of the Private
Securities Litigation Reform Act. Actual results may differ materially from
the projections provided in this release since such projections involve
significant known and unknown risks and uncertainties. Factors that might
cause such differences include, but are not limited to: competitive pressures
among financial institutions increasing significantly; economic conditions,
either nationally or locally, in areas in which the Company conducts
operations being less favorable than expected; and legislation or regulatory
changes which adversely affect the ability of the combined Company to conduct
business combinations or new operations. The Company disclaims any obligation
to update such factors or to publicly announce the results of any revisions to
any of the forward-looking statements included herein to reflect future events
or developments.

http://www.bkbank.com

Britton and Koontz Capital Corporation
Financial Highlights
(Unaudited)
                           For the Three Months
                           Ended March 31,
                           2012              2011
Interest income            $   3,277,624   $   4,303,497
Interest expense           881,341           1,227,967
Net interest income        2,396,283         3,075,530
Provision for loan losses  -                 750,000
Net interest income after
provision for loan losses 2,396,283         2,325,530
Non-interest income        728,626           1,531,309
Non-interest expense       2,882,896         3,133,548
Income before income taxes 242,013           723,291
Income taxes               (517)             147,871
Net income                 $    242,530  $    575,420
Return on Average Assets   0.28%             0.61%
Return on Average Equity   2.48%             5.80%
Diluted:
Net income per share      $           $      
                           0.11             0.27
Weighted average shares    2,138,466         2,137,907
outstanding
                           March 31,         December 31,      March 31,
Balance Sheet Data         2012              2011              2011
Total assets               $ 356,492,944     $ 366,091,232     $ 381,994,668
Cash and due from banks    51,803,408        48,622,717        30,961,369
Investment securities      111,839,268       118,994,337       128,803,724
Gross loans. net of loans  173,625,127       184,142,032       206,835,643
held for sale
Loans held for sale        4,984,282         2,914,468         2,714,204
Deposits-interest bearing  196,975,105       209,960,303       224,846,810
Deposits-non interest      56,061,465        53,097,241        49,320,424
bearing
Total deposits             253,036,570       263,057,544       274,167,234
Short-term borrowed funds  35,785,237        35,639,635        17,076,548
Long-term borrowed funds   27,000,000        27,000,000        49,000,000
Stockholders' equity       39,278,222        38,835,739        39,664,425
Book value (per share)     18.37             18.16             18.51
Total shares outstanding   2,138,466         2,138,466         2,142,466
Asset Quality Data
Non-accrual loans          $   5,747,101   $   8,177,672   $   9,240,708
Loans 90+ days past due    -                 198,902           81,559
Troubled debt              -                 615,392           -
restructurings, performing
Total non-performing loans 5,747,101         8,991,966         9,322,267
Other real estate owned    7,163,006         3,701,392         3,303,189
Total non-performing       $  12,910,107    $  12,693,358    $  12,625,456
assets
Total non-performing       3.68%             3.38%             3.34%
assets to average assets
Net chargeoffs - ytd       $             $   2,824,232   $    
                           78,377                             98,242
YTD net chargeoffs as a
percent of average net     0.04%             1.41%             0.05%
loans



SOURCE Britton & Koontz Capital Corporation
 
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