USABanc.com Announces Record Quarterly Earnings as Asset Growth Continues
PHILADELPHIA--(BUSINESS WIRE)--July 20, 1999--USABanc.com, Inc.
(NASDAQ:USAB), parent company of FDIC insured vBank and the USACapital
stock brokerage, announced earnings for the second quarter ended June
30, 1999 of $510,000 or $0.12 diluted earnings per share compared to
$495,000 or $0.11 diluted earnings per share for the quarter ended
June 30, 1998.
Total assets of the Company increased to $230.0 million or 23.5%
from $186.2 million at March 31, 1999. Earnings included a $150,000
loan loss provision.
"This is an exciting time for us, marking the final departure
from traditional banking as our core business. While we're pleased
with asset growth and operating results to date, we're totally focused
on rollout of www.USABanc.com and on continued implementation of our
business plan. EDS has provided us with final certification for our
Internet operations and we're on target and on schedule for launch,"
stated Ken Tepper, President & CEO of USABanc.com.
"I'm committed to doing whatever it takes to establish
USABanc.com as a national brand, and as a result of investment in
related alliances, advertising and marketing programs, we are prepared
to forego ongoing profitability until we've done so," Tepper added.
Financial Results: For the second quarter ended June 30, 1999,
the Company's return on average equity and return on average assets
were 14.85% and 1.01%, respectively. The Company's quarterly net
interest income has increased $362,000 to $2.1 million during the
second quarter of 1999 from $1.7 million for the second quarter in
1998.
The improvement is attributable to increased average earning
assets of $26.8 million or 15.49%. The increase in average earning
assets was partially offset by a decrease in the net interest margin
of 70 basis points, compared to the period ended June 30, 1998.
Non-interest income has more than quadrupled to $249,000 vs. $62,000,
respectively.
The increase is attributable to an increase in miscellaneous
retail and loan fees of $39,000, a net gain on sale of investments and
other real estate owned of $26,000, brokerage operations of $56,000,
and other income of $66,000. Non-interest expenses increased $774,000
or 88.6% to $1.7 million vs. $873,000 for the quarter ended June 30,
1999.
The increase in expense levels reflects an increase in
compensation of $542,000, occupancy and data processing increased
$48,000, advertising expenses increased $37,000 and other
miscellaneous expenses increased $147,000. The increase in total
expenses is a reflection of the Company establishing and growing its
Internet infrastructure.
For the six months ended June 30, 1999 the Company recorded net
income of $924,000 or $0.21 diluted earnings per share versus $907,000
or $0.23 diluted earning per share. For the six months ended June 30,
1999, the Company's return on average equity and return on average
assets were 14.57% and 0.99%, respectively.
These ratio's compare to 19.64% and 1.62%, respectively for the
six months ended June 30, 1998. USABanc.com did not provide a
provision for taxes in the second quarter of 1999 because the Company
will not have taxable income for fiscal 1999. The Company's quarterly
net interest income has increased $1.0 million to $3.8 million for the
six months ended June 30, 1999 from $2.8 million for the same period
in 1998.
The improvement is attributable to increased average earning
assets of $56.4 million or 46.54%. The increase in average earning
assets was partially offset by a decrease in the net interest margin
of 12 basis points, compared to the period ended June 30, 1998.
Non-interest income has more than doubled to $569,000 vs. $200,000,
respectively.
The increase is attributable to an increase in miscellaneous
retail and loan fees of $50,000, a net gain on sale of investments and
other real estate owned of $84,000, brokerage operations of $102,000,
and other income of $133,000. Non-interest expenses approximately
doubled to $2.9 million from $1.4 million for the comparative
six-month period ended June 30, 1999 and 1998.
The increase in expense levels reflects an increase in
compensation of $805,000, occupancy and data processing increased
$136,000, professional fees $129,000, advertising expenses increased
$74,000 and other miscellaneous expenses increased $356,000. The
increase in total expenses is a reflection of the Company establishing
and growing its Internet infrastructure.
Allowance for loan losses to total loans was 1.14% with a total
allowance for loan losses of $1.3 million at June 30, 1999 compared to
1.02% or $1.0 million, respectively at December 31, 1998.
Non-performing assets were $2.5 million or 1.08% to total assets at
June 30, 1999 compared to $2.0 million or 1.22% of total assets at
December 31, 1998.
Forward Looking Statements: Some of the statements contained in
this press release discuss future expectations, contain preliminary
unaudited results of operations and financial condition and state
other "forward looking" information.
Those statements are subject to known and unknown risks;
uncertainties and other factors that could cause the actual results to
differ materially from those contemplated by the statements. The
forward-looking information is based on various factors and was
derived using numerous assumptions.
Important factors that may cause actual results to differ from
projections include, for example; general economic conditions in the
financial services industry; the regulatory environment; rapidly
changing technology and evolving banking industry standards;
competitive factors, including increased competition with community,
regional and national financial institutions; new services and
products offered by competitors; and pricing pressures.
Three Months Ended Year Ended Average Balances
6/30/99 3/31/99 12/31/98 6/30/99 3/31/99
------- ------- -------- ------- -------
SELECTED FINANCIAL
CONDITION DATA:
Total assets $230,000 $186,230 $165,106 $202,237 $172,994
Loans receivable,
net 114,710 110,013 102,138 112,560 103,418
Securities 82,344 64,928 44,144 72,453 49,187
Deposits 169,955 125,765 114,387 140,473 121,364
Borrowings 33,399 34,163 35,305 35,486 34,993
Guaranteed
preferred
beneficial
interests in
subordinated
debt 10,000 10,000 - 10,000 2,527
Stockholders'
equity 14,032 13,696 13,597 13,737 11,800
Non-performing
assets, net
of discount 2,483 2,000 2,022 2,242 2,011
Book value per
share $ 3.32 $ 3.24 $ 3.22 $ 3.32 $ 3.24
Three Months Ended Six Months Ended
6/30/99 6/30/98 6/30/99 6/30/98
------- ------- ------- -------
SELECTED OPERATIONS DATA:
Total interest income $ 4,668 $ 3,245 $ 8,549 $ 5,532
Total interest expense 2,591 1,530 4,746 2,705
------- ------- ------- -------
Net interest income 2,077 1,715 3,803 2,827
Provision for loan losses 150 125 250 160
------- ------- ------- -------
Net interest income after
provision for loan losses 1,927 1,590 3,553 2,667
Total non-interest income 249 62 569 200
Total non-interest expense 1,647 873 2,903 1,408
------- ------- ------- -------
Income before income taxes 529 779 1,219 1,459
Income tax provision 19 284 295 552
------- ------- ------- -------
Net income (loss) $ 510 $ 495 $ 924 $ 907
======= ======= ======= =======
Net income (loss) per share
(fully-diluted) $0.12 $0.11 $0.21 $0.23
======= ======= ======= =======
Three Months Ended Six Months Ended
6/30/99 6/30/98 6/30/99 6/30/98
------- ------- ------- -------
PERFORMANCE RATIOS:
Return (loss) on average
assets 1.01% 1.67% 0.99% 1.62%
Return (loss) on average
stockholders' equity 14.85 15.27 14.57 19.64
Net interest margin 4.94 5.64 4.75 5.30
Interest rate spread 4.55 5.07 4.36 4.66
Efficiency Ratio 71.88 53.27 68.46 51.05
Non-interest expense to
average total assets 3.26 3.44 3.11 2.93
Average interest-earning
assets to average
interest-bearing
liabilities 103.07 110.58 103.56 112.68
ASSET QUALITY RATIOS: For the period ended
6/30/99 3/31/99 12/31/98
------- ------- --------
Non-performing loans,
net of discount, to
total loans, net
of discount 2.16% 1.87% 1.89%
Non-performing assets,
net of discount, to
total assets 1.08 1.10 1.22
Allowance for loan losses
to total loans, net
of discount 1.14 1.07 1.02
Allowance for loan losses
and purchase discount as
a percentage of total
loans 5.63 5.20 5.85
Allowance for loan losses
to total non-performing
loans, net of discount 53.35 58.75 53.72
CONTACT:
USABanc.com
Ken Tepper/Brian M. Hartline, 215/569-4200
KEYWORD: PENNSYLVANIA
BW2151 JUL 20,1999
12:14 PACIFIC
15:14 EASTERN |
