NATCHEZ, Miss., July 21 /PRNewswire-FirstCall/ -- The Board of Directors of Britton & Koontz Capital Corporation today reported net income for the three months ended June 30, 2006, of $875 thousand, or $0.44 per diluted share, a 3.2% increase from the $848 thousand or $0.39 per diluted share reported for the same period in 2005. Returns on average assets and average equity for this period were 0.93% and 11.08%, compared to 0.86% and 10.74% for the same period in 2005. For the six months ended June 30, 2006, net income and diluted earnings per share were $1.8 million or $0.85 per share, a 3.5% increase over the $1.7 million or $0.82 per share for the same period in 2005. Returns on average assets and average equity calculated for this period were 0.95% and 11.42%, for 2006, compared to 0.90% and 11.08% in 2005.
Net interest income for the quarter ended June 30, 2006, was $3.4 million, a $10 thousand decrease compared to the second quarter in 2005. The continued rise in short-term interest rates during the second quarter of 2006 contributed to the lower net interest income. After reviewing the Bank's loan loss reserve, considering changes in the loan portfolio along with continued low net charge-offs, management lowered the provision for loan losses for the second quarter of 2006 to $60 thousand from $90 thousand in the second quarter in 2005. Net interest margin increased to 3.83% for the three months ended June 30, 2006, from 3.66% for the same period in 2005. Non-interest income remained stable ending the second quarter of 2006 at $593 thousand while non- interest expense decreased $11 thousand to $2.8 million.
Net interest income for the six months ended June 30, 2006, increased $51 thousand over the same period in 2005 as the bank used cash flows from the investment portfolio to fund new loans and pay down borrowings. Federal Home Loan Bank advances declined from $106 million at June 30, 2005, to $66 million at June 30, 2006, while bank deposits increased $36 million to $264 million during this same period. Net interest income was positively affected by the reduced funding base and offset negatively by the higher interest rate environment. Net interest margin increased to 3.78% for the six months ended June 30, 2006, from 3.64% in the comparable period in 2005. Other factors contributing to the improved earnings for the six months ended June 30, 2006, were lower salaries and benefits of approximately $209 thousand and a $125 thousand tax adjustment during 2005.
The Bank's provision for loan losses for the six month period ended June 30, 2006, was $120 thousand, compared to $180 thousand during the same period in 2005. The decrease is primarily the result of lower than expected loan originations during the first half of 2006 and continued low net charge-offs. Net charge-offs for the six months ended June 30, 2006, were $13 thousand compared to $14 thousand for the six month period ended June 30, 2005.
About Britton & Koontz
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 one in Baton Rouge, Louisiana. The Company also owns Britton & Koontz Title Insurance Agency, Inc. which was established to issue title insurance on properties in the State of Mississippi. As of June 30, 2006, the Company reported assets of $377.1 million and equity of $31.6 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 June 30, 2006, were 2,117,966.
Forward Looking Statements
This news release contains statements regarding the projected performance of Britton & Koontz Capital 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.
Britton and Koontz Capital Corporation
Financial Highlights
(Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
Interest income $5,844,353 $5,413,477 $11,561,024 $10,567,097
Interest expense (2,443,881) (2,002,959) (4,780,620) (3,838,018)
Net interest income 3,400,472 3,410,518 6,780,404 6,729,079
Provision for loan
losses (60,000) (90,000) (120,000) (180,000)
Net interest income
after provision for
loan losses 3,340,472 3,320,518 6,660,404 6,549,079
Non-interest income 593,051 593,325 1,204,434 1,197,091
Non-interest expense (2,776,007) (2,786,761) (5,465,305) (5,627,197)
Income before income
taxes 1,157,516 1,127,082 2,399,533 2,118,973
Income taxes (282,060) (279,117) (598,685) (379,595)
Net income $875,456 $847,965 $1,800,848 $1,739,378
Return on Average Assets 0.93% 0.86% 0.95% 0.90%
Return on Average Equity 11.08% 10.74% 11.42% 11.08%
Diluted:
Net income per share $0.44 $0.39 $0.85 $0.82
Weighted average shares
outstanding 2,124,283 2,120,426 2,122,033 2,120,841
June 30, December 31, June 30,
2006 2005 2005
Total assets $377,103,703 $389,260,029 $398,427,575
Cash and due from banks 9,306,109 9,825,459 10,101,265
Federal funds sold 2,450 401,138 8,209
Investment securities 112,115,148 121,782,755 137,952,039
Loans, net of unearned interest 243,175,745 245,083,051 237,784,427
Deposits-interest bearing 205,700,037 205,910,680 188,776,049
Deposits-non interest bearing 58,371,039 51,466,230 39,557,088
Total Deposits 264,071,076 257,376,910 228,333,137
Short Term debt 34,170,410 44,456,731 59,464,877
L/T debt, inc junior
subordinated debentures 44,158,632 52,927,057 76,579,103
Stockholders' equity 31,627,011 31,260,159 31,590,133
Book value (per share) $14.93 $14.77 $14.93
Total shares outstanding 2,117,966 2,116,316 2,116,316
