Local Financial Corporation Reports Second Quarter Results
OKLAHOMA CITY, July 25 /PRNewswire/ --
Local Financial Corporation's (Nasdaq: LFIN) earnings continued to strengthen
through the second quarter of 2000. Net income for the quarter ended June 30,
2000 was $.29 basic earnings per share versus $.27 for the same period last
year. Year-to-date, Local Financial earned $12 million before extraordinary
item, an increase of 12.3% over the first half of 1999 equaling $.58 basic
earnings per share. This represents a return on assets of 1.03% and a return
on equity of 18.4%.
Edward A. Townsend, Chairman of the Board and Chief Executive Officer,
stated that second quarter earnings reflect positive results on all fronts.
The net interest margin of 3.40% compares favorably with the first quarter of
this year and is only marginally below 1999 despite significant increases in
interest rates. Non-interest income was up during the second quarter at an
annualized rate of 9.8% above the first quarter of this year. Local
Financial's efficiency ratio of 56.9% continues to reflect an emphasis on
expense control.
Local Financial Corporation is the parent company of Local Oklahoma Bank,
N.A., the state's third largest commercial bank. The bank continues to gain
market share through its relationship-oriented bankers. Local's strategy of
hiring experienced bankers with the ability to move relationships continues to
pay significant dividends. Local Oklahoma Bank currently operates 51 branches
in 33 communities across the state.
"We take great pride in the disciplines incorporated into our lending
systems and the experience of our Credit Management Team," reiterated
Mr. Townsend. "Asset quality remains our primary objective. Local Oklahoma
Bank's non-performing assets as a percent of total assets were only 0.36% at
June 30, 2000," he said.
Local Oklahoma Bank successfully completed a conversion to a much needed
state-of-the-art data processing system. Previously the bank was unable to
fully capitalize on commercial banking relationships due to system
limitations, particularly in regard to providing corporate cash management
services. "I am optimistic that we will begin to see the value of our deposit
franchise increase as we generate transaction accounts," stated Mr. Townsend.
Oklahoma's robust economy continues to provide opportunities for strong future
growth. "We are driven by the objective of enhancing the value of our
franchise," concluded Mr. Townsend. |
