Local Financial Corporation Announces Strong Earnings for 1998
OKLAHOMA CITY, Feb. 4 /PRNewswire/ -- Local Financial Corporation
(Amex: LO), holding company for Local Federal Bank, announced positive results
for the fourth quarter and full year of 1998. The company reported fourth
quarter net income of $4.9 million or $0.24 basic earnings per share (based on
20.5 million average shares). Earnings for the full year 1998 were
$18.4 million or $0.90 basic earnings per share. These compare to earnings
(loss) per share of $0.63 and ($6.52) for the same periods of 1997. Of the
$0.63 per share earnings in the fourth quarter of 1997, gains on securities
sales accounted for $0.42 per share leaving $0.21 per share from normal
operations.
Edward A. Townsend, Chairman and CEO, said, "We are extremely pleased with
the performance of the company this year and we are certain the acquisitions
and strategic realignments that occurred within the year will position us for
future earnings growth ".
During 1998, Local Financial and its wholly-owned subsidiary, Local
Federal Bank, completed the acquisitions of Green Country Bank, and BankSouth
Corporation, the Lawton, Oklahoma bank holding company for Citizens Bank. In
addition to growth through acquisitions, Local Federal Bank also formed a
corporate lending unit focused on commercial lending within Oklahoma. Local
has the fifth largest deposit franchise in Oklahoma and operates through
50 locations statewide.
For Three Months Ended
December 31 For Year Ended
1998 1997 1998 1997
(in 000's)
Net Interest Income $16,442 $13,109 $54,766 $51,746
Provision for Loan Losses (500) (225) (1,450) (44,272)
Gain/(Loss) on Asset Sales 397 12,816 932 (138,828)
Other Operating Income 4,226 2,632 13,850 12,370
Other Operating Expense 12,804 9,117 39,407 42,569
INCOME (LOSS) BEFORE TAXES $7,761 19,215 $28,691 (161,553)
Tax Provision (Benefit) 2,823 6,720 10,254 (52,362)
NET INCOME (LOSS) $4,938 $12,495 $18,437 $(109,191)
Basic Earnings (Loss) per Share $0.24 $0.63 $0.90 $(6.52)
Net interest income for the fourth quarter rose to $16.4 million, up
$2.4 million or 17% over the third quarter, largely as a result of the
acquisition of BankSouth. Loan balances (excluding any acquired loans) rose
from $1.3 billion at September 30 to $1.4 billion at year end. Loan growth
resulted primarily from the significant addition of seasoned loan officers
consistent with the Company's strategy of creating a major commercial bank in
Oklahoma. Fourth quarter noninterest income totaled $4.6 million,
representing an increase of more than $1 million over the third quarter,
primarily due to the BankSouth acquisition. Noninterest expense of
$12.8 million for the fourth quarter was $3 million over the $9.7 million
incurred during the third quarter. This increase was attributable to costs
associated with the BankSouth acquisition and costs related to the formation
of a corporate lending unit.
Local Federal Bank's core capital ratio remained well above regulatory
capital guidelines, moving from 6.98% at December 31, 1997 to 7.63% at
December 31, 1998.
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