Britton & Koontz Capital Reports Earnings For Second Quarter 2012

      Britton & Koontz Capital Reports Earnings For Second Quarter 2012

PR Newswire

NATCHEZ, Miss., July 31, 2012

NATCHEZ, Miss., July 31, 2012 /PRNewswire-FirstCall/ -- The Board of Directors
of Britton & Koontz Capital Corporation (OTC-QB or OTCBB: BKBK, "B&K Capital"
or "the Company") today reported net income and earnings per share for the
three and six month period ended June 30, 2012. Net income for the quarter
ended June 30, 2012, was $69 thousand, or $.03 per diluted share, compared to
$229 thousand, or $.11 per diluted share, for the quarter ended June 30,
2011. For the six month period ended June 30, 2012, net income and diluted
earnings per share was $312 thousand and $0.15, respectively, a decrease from
$805 thousand and $0.38, respectively, for the same period in 2011.

Net interest income for the three and six month periods ended June 30, 2012,
decreased $618 thousand and $1.3 million, respectively, over the same period
in 2011. Approximately 60% of the decrease over the comparative periods was a
result of the decreases in the volume of average earning assets of $41 million
and $34 million, respectively. Low loan demand and a poor investment
environment were the primary contributors to the decrease in volumes.
Although the decline in the volume of earnings assets represents the majority
of the decline in net interest income, lower interest rates were a major
contributor as well, accounting for approximately 40% of the decline in net
interest income. Cash flows from higher yielding assets into lower yielding
assets occurred as loans and investment securities were paid down and held as
cash due to weak loan demand and the poor investment environment. As a
result, interest rate spread declined 30 and 39 basis points to 2.55% and
2.58% for the three and six month period ended June 30, 2012, respectively.
Not only did the decline in interest rate have a significant negative effect
to net interest income, it also had a disproportionate effect on asset yields
as compared to funding cost. For both the three and six month comparative
periods, asset yields declined 67 and 76 basis points, respectively, while
funding costs declined only 37 and 36 basis points, respectively. Interest
rate margin declined 36 and 45 basis points, respectively, to 2.84% and 2.87%
for the same periods.

Non-interest income decreased $355 thousand for the 2nd quarter of 2012
compared to the 2nd quarter of 2011, while non-interest income decreased $1.2
million for the first six months of 2012 compared to the corresponding period
in 2011. Both period decreases were primarily due to gains of $656 thousand
and $1.3 million on the sale of investment securities and higher-mortgage
related income in 2011. Non-interest expense decreased $211 thousand for the
2^nd quarter of 2012 compared to the 2^nd quarter of 2011, while non-interest
expense decreased $461 thousand for the first six months of 2012 compared to
the corresponding period in 2011. Both period decreases were due primarily to
lower personnel costs.

Non-performing assets ("NPA"), which include non-accrual loans, troubled debt
restructurings, loans delinquent 90 days or more and other real estate, were
relatively unchanged at $12.7 million, or 3.75% of total assets, at June 30,
2012, from $12.7 million, or 3.47% of total assets, at December 31, 2011. The
decline in total assets contributed to the increase in the ratio of NPA to
total assets. Net charge-offs for the six months ended June 30, 2012, were
$348 thousand compared to $170 thousand for the six months ended June 30,
2011, and $2.8 million for the year ended December 31, 2011.

The Company did not provide any loan loss provision during the first six
months of 2012, as management determined that the existing balance of the
allowance for loan and lease loss account ("ALLL") was sufficient to cover
losses expected in the portfolio. The ALLL of $3.9 million, or 2.34% of total
loans, at June 30, 2012, compares to $3.6 million, or 1.77% of total loans, at
June 30, 2011 and $4.3 million, or 2.29% of total loans, at December 31,
2011. Even with the charge-offs during 2012, the Company believes the ALLL
remains adequate as of June 30, 2012. 

The Company's regulatory capital substantially exceeds the minimum regulatory
capital requirements.

Effective July 10, 2012, the Company voluntarily delisted its common stock
from NASDAQ. The stock has continued to trade under the symbol "BKBK" on the
OTC-QB or OTCBB marketplace. Investors can view the Company's stock quotes
for the Company at www.otcmarkets.com or www.otcbb.com/. The Company is in
the process of terminating the registration of its common stock and suspending
its public reporting obligations under Sections 12(g) and 15(d) of the
Securities Exchange Act of 1934, as amended.

The Company expects to discontinue issuing earnings releases effective in the
3^rd quarter of 2012 and instead begin posting its quarterly regulatory
reports along with its annual report on its website at www.bkbank.com.

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, three in Baton
Rouge, Louisiana and a loan production office in Central, Louisiana. As of
June 30, 2012, the Company reported assets of $340.7 million and equity of
$39.6 million. Total shares outstanding at June 30, 2012, were 2,138,466 and
the transfer agent is American Stock Transfer & Trust Company.

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 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.



Britton and Koontz Capital Corporation
Financial Highlights
(Unaudited)
                        For the three months ended    For the six months ended
                        June 30,                      June 30,
                        2012           2011           2012         2011
Income Statement Data
Interest income         $            $            $ 6,386,032  $ 8,407,398
                        3,108,409      4,103,901
Interest expense        830,663        1,208,616      1,712,004    2,436,583
Net interest income     2,277,746      2,895,285      4,674,028    5,970,815
Provision for loan      -              562,000        -            1,312,000
losses
Net interest
income/(loss) after
provision for loan     2,277,746      2,333,285      4,674,028    4,658,815
losses
Non-interest income     968,748        1,323,901      1,697,374    2,855,210
Non-interest expense    3,304,203      3,514,781      6,187,098    6,648,330
Income/(loss) before    (57,709)       142,405        184,304      865,695
income taxes
Income taxes            (127,093)      (86,706)       (127,610)    61,164
Net income/(loss)       $          $           $           $ 
                        69,384        229,111       311,914     804,531
Return on Average       0.08%          0.24%          0.18%        0.42%
Assets
Return on Average       0.71%          2.31%          1.59%        4.05%
Equity
Diluted:
Net income/(loss) per   $        $        $        $    
share                  0.03          0.11          0.15        0.38
Weighted average        2,138,466      2,143,497      2,138,466    2,140,714
shares outstanding
                        June 30,       December 31,
Balance Sheet Data      2012           2011
Total assets            $ 340,714,119  $ 366,091,232
Cash and due from       50,165,706     48,622,717
banks
Federal funds sold      -              -
Investment securities   105,973,864    118,994,337
Loans, net of UI &      164,761,099    184,142,032
loans held for sale
Loans held for sale     3,864,726      2,914,468
Allowance for loan      3,940,236      4,287,910
losses
Deposits-interest       187,385,014    209,960,303
bearing
Deposits-non interest   50,771,545     53,097,241
bearing
Total deposits          238,156,559    263,057,544
Short-term debt         34,370,251     35,639,635
Long-term debt          27,000,000     27,000,000
Stockholders' equity    39,567,468     38,835,739
Book value (per share)  $         $     
                        18.50         18.16
Total shares            2,138,466      2,138,466
outstanding
                        June 30,       December 31,
Asset Quality Data      2012           2011
Non-accrual loans       $            $  
                        5,211,677      8,177,672
Loans 90+ days past     54,738         198,902
due
Troubled debt
restructurings, still   -              615,392
accruing
Total non-performing    5,266,415      8,991,966
loans
Other real estate       7,489,002      3,701,392
owned
Total non-performing    $             $ 
assets                  12,755,417     12,693,358
Total non-performing
assets to average       3.67%          3.38%
assets
Net chargeoffs - ytd    $           $  
                        347,675       2,824,232
YTD net chargeoffs as
a percent of average    0.20%          1.41%
loans



SOURCE Britton & Koontz Capital Corporation

Website: http://www.bkbank.com
Contact: W. Page Ogden, President & CEO, or William M. Salters, Treasurer &
CFO, +1-601-445-5576, corporate@bkbank.com
 
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