Vail Banks Announces Second Quarter Results AVON, Colo., July 19
/PRNewswire-FirstCall/ -- Vail Banks, Inc. (NASDAQ:VAIL) today
reported diluted net income per share of $0.18 for the second
quarter 2005 compared to $0.11 for the second quarter of 2004 and
$0.16 for the first quarter 2005. Net income for the quarter was
$971,000 versus $574,000 in the second quarter of 2004 and $885,000
in the first quarter 2005. "Highlights of the quarter were
continued high credit quality and new loan originations," commented
Gary Judd, CEO of Vail Banks, Inc. "Our ability to improve credit
quality, while increasing loan outstandings by $82 million compared
to the second quarter of 2004, is a very positive trend for the
Company. Asset quality continues to be strong with $50,000 in net
recoveries for the quarter compared to net charge-offs of $35,000
for the same period last year. Now, three of the past four quarters
have shown a net recovery. Additionally, we ended the quarter with
no non-accrual loans and only $8,000 in loans Past Due Ninety Days
and Accruing. This represents unprecedented strong credit quality
for the Company. No loan loss provision was justified this quarter
as the Company's loan loss reserve model for estimated reserves
resulted in a reversal of $36,000 from the Company's allowance for
loan losses." "The average growth in loans of $82.0 million since
the second quarter of last year is a 25 percent increase. Average
earning assets are up 12 percent since the second quarter 2004, or
$60.0 million, while total average assets have increased 10 percent
or $62.1 million over the same period. We have also improved our
earning asset mix in this period as well," indicated Mr. Judd.
"Interest and fee income on loans is up 34 percent or $2.1 million
from the second quarter of 2004. This increase, coupled with the
improved margin resulting from strong core deposit growth and
increases in short-term rates, increased net interest income 30
percent or $1.6 million for the second quarter 2005 compared to the
second quarter of 2004. Over this same period, net interest margin
has increased from 4.38 percent to 5.00 percent on a fully tax
equivalent basis. Return on tangible equity has increased from
10.32 percent at June 2004 to 15.69 percent. The Company's balance
sheet remains asset sensitive and, therefore, benefits from the
actions of the Federal Reserve Bank to increase short-term interest
rates," commented Mr. Judd. Deposit growth during the quarter
contributed to maintaining a strong liquidity position at June 30,
2005. Year-to-date, average deposits increased by $25.2 million.
Average core deposits increased $35.3 million or 9.5 percent
year-to-date. Federal funds sold increased $21.6 million
year-to-date, or 125 percent, while investment securities decreased
7.5 percent or $7.8 million year-to-date. Total non-interest income
increased $106,000 or 7 percent from the previous quarter. $65,000
of this increase represents higher mortgage fees from improved
origination volumes. Other components of non-interest income remain
quite stable. Non-interest expenses increased $109,000 during the
second quarter over the previous quarter. $43,000 of this increase
resulted from increased maintenance costs on Company-owned and
occupied real estate. Mortgage incentive compensation also
increased as a result of increased origination volume and was
offset with savings in salaries and employee benefits due to
decreased health insurance costs. "We also invested considerable
time and resources to support the April 5, 2005 launch of WestStar
Bank's new brand platform -- WestStar Bank. Expect Action," stated
Mr. Judd. On July 8, 2005, the Company commenced operations in a
new branch in Fruita, just to the west of Grand Junction. "We are
very excited to expand our presence in one of Colorado's fastest
growing markets. Rick Brown, Regional President of our Northwest
Region, will lead our growth initiative in the Fruita market,"
commented Mr. Judd. At its meeting on July 18, 2005 the Board of
Directors of Vail Banks declared a regular quarterly dividend of
$0.07 per share payable August 12, 2005 to shareholders of record
on July 29, 2005. Vail Banks, Inc., through its subsidiary WestStar
Bank, has 24 banking offices in 19 communities in Colorado,
including Aspen, Avon, Breckenridge, Cedaredge, Delta, Denver,
Dillon, Edwards, Estes Park, Frisco, Fruita, Glenwood Springs,
Granby, Grand Junction, Gypsum, Montrose, Norwood, Telluride and
Vail. This news release contains forward-looking statements, as
defined by federal securities laws, including statements about
financial outlook and business environment. These statements are
provided to assist in the understanding of future financial
performances and such performance involves risks and uncertainties
that may cause actual results to differ materially from those in
such statements. Any such statements are based on current
expectations and involve a number of risks and uncertainties. For a
discussion of factors that may cause such forward-looking
statements to differ materially from actual results, please refer
to the section entitled "Certain Factors Affecting Forward-Looking
Statements" in Vail Banks, Inc.'s annual report filed on Form 10-K
with the Securities and Exchange Commission. Vail Banks, Inc.
Financial Highlights (in thousands, except share data) (unaudited)
Three Months Ended June 30, Mar. 31, Dec 31, Sept. 30, June 30,
2005 2005 2004 2004 2004 Earnings and Performance Net income $971
$885 $643 $559 $574 Diluted net income per share 0.18 0.16 0.12
0.10 0.11 Return on assets 0.60% 0.55% 0.41% 0.37% 0.39% Return on
equity 6.41 5.95 4.30 3.79 3.95 Net interest margin (FTE) 5.00 5.11
4.95 4.68 4.38 Efficiency ratio 84 84 89 87 89 Return on tangible
equity 15.69 14.86 10.93 9.87 10.32 Asset Quality Ratios Net
charge-offs (recoveries) to average loans (0.05)% (0.03)% 0.03%
(0.05)% 0.04% Allowance for loan losses to loans 0.95 0.99 0.96
0.97 0.97 Allowance for loan losses to non-performing loans (1) NA
287 1,657 460 217 Non-performing assets to loan-related assets 0.14
0.54 0.25 0.37 0.67 Risk assets to loan-related assets (2) 0.14
0.80 0.25 0.37 0.67 Capital Ratios Equity to assets at period end
9.44% 8.81% 9.44% 9.50% 9.82% Tangible equity to assets at period
end 3.93 3.55 3.75 3.72 3.70 Leverage ratio 8.12 8.01 8.06 8.28
7.93 Tier 1 capital ratio 10.70 10.14 10.52 10.88 11.35 Total
capital ratio 12.05 11.62 12.02 12.47 13.22 Other Information at
Period End Book value per share $11.05 $10.84 $11.25 $11.19 $10.89
Tangible book value per share 4.61 4.37 4.46 4.38 4.10 Closing
market price 14.64 13.13 13.18 13.08 12.44 Shares outstanding
5,604,235 5,578,824 5,326,504 5,310,754 5,326,330 Full time
equivalent associates 254 243 249 252 238 Banking offices 23 23 23
23 22 (1) Calculation is not applicable (NA) when non-performing
loans equal zero. (2) Risk assets are non-performing assets plus
loans 90 days or more past due and accruing. Vail Banks, Inc.
Balance Sheet (in thousands, except share data) June 30, December
31, Percent Assets 2005 2004 Change (unaudited) Cash and due from
banks $17,887 18,360 (3)% Federal funds sold 38,865 17,295 125
Investment securities Available for sale 96,046 103,779 (7) Held to
maturity 186 246 (24) Investments in Trust I and Trust II 743 743 0
Loans held for sale 1,200 7,110 (83) Gross loans 421,813 407,629 3
Allowance for loan losses (4,003) (3,895) 3 Net deferred loan fee
income (1,098) (1,276) (14) Investment in bank stocks 4,508 4,457 1
Premises and equipment, net 38,751 38,721 0 Goodwill, net 35,970
35,970 0 Other intangible assets, net 139 159 (13) Other assets
5,193 5,297 (2) $656,200 634,595 3% Liabilities and Shareholders'
Equity Liabilities Deposits $519,908 500,444 4% Securities sold
under agreements to repurchase 17,134 894 1,817 Federal Home Loan
Bank advances 27,132 42,444 (36) Subordinated notes to Trust I and
Trust II 24,743 24,743 0 Other liabilities 2,922 3,605 (19) Total
liabilities 591,839 572,130 3 Minority interest 2,444 2,563 (5)
Shareholders' equity Common equity 62,582 60,520 3 Accumulated
other comprehensive loss (665) (618) 8 Total shareholders' equity
61,917 59,902 3 $656,200 634,595 3% Loan Mix at Period End
Commercial, industrial, and land $224,899 239,946 (6)% Real estate
-- construction 120,942 92,705 30 Real estate -- mortgage 69,470
69,164 0 Consumer 6,502 5,814 12 Total gross loans $421,813 407,629
3% Deposit Mix at Period End Interest bearing checking $89,035
92,279 (4)% Savings 31,845 31,261 2 Money market 169,420 132,388 28
CDs under $100,000 47,600 51,541 (8) CDs $100,000 and over 66,807
72,848 (8) Interest bearing deposits 404,707 380,317 6 Non-interest
bearing checking 115,201 120,127 (4) Total deposits $519,908
500,444 4% Shares Outstanding at Period End 5,604,235 5,326,504 5%
Vail Banks, Inc. Statement of Income by Quarter (in thousands,
except share data) (unaudited) Three Months Ended June 30, Mar. 31,
Dec. 31, Sept. 30, June 30, 2005 2005 2004 2004 2004 Interest
income Interest on loans $7,410 $6,705 $6,623 $5,829 $5,223 Fees on
loans 833 909 1,028 875 943 Interest on investment securities 1,028
1,371 1,056 1,134 1,045 Interest on federal funds sold and
short-term investments 219 192 21 25 85 Investments in Trust I and
Trust II 19 19 19 19 19 Total interest income 9,509 9,196 8,747
7,882 7,315 Interest expense Deposits 1,623 1,329 1,200 1,028 1,005
Borrowings 241 364 379 340 345 Federal funds purchased and
securities sold under agreements to repurchase 98 25 19 3 1
Subordinated notes to Trust I and Trust II 630 631 631 631 630
Total interest expense 2,592 2,349 2,229 2,002 1,981 Net interest
income 6,917 6,847 6,518 5,880 5,334 Provision for loan losses (36)
65 180 323 43 Net interest income after provision 6,953 6,782 6,338
5,557 5,291 Non-interest income Deposit related 645 620 689 717 692
Mortgage broker fees 459 394 812 756 775 Gain (loss) on sale of
fixed assets 12 (8) (1) (11) 103 Other 560 564 524 781 522 Total
non- interest income 1,676 1,570 2,024 2,243 2,092 Non-interest
expense Salaries and employee benefits 4,109 4,195 4,375 4,096
3,994 Occupancy 1,044 999 1,050 1,000 846 Furniture and equipment
650 683 658 608 611 Amortization of intangible assets 10 10 10 10
10 Other 1,397 1,214 1,521 1,338 1,158 Total non- interest expense
7,210 7,101 7,614 7,052 6,619 Income before taxes 1,419 1,251 748
748 764 Income tax expense 448 366 105 189 190 Net Income $971 $885
$643 $559 $574 Diluted net income per share $0.18 $0.16 $0.12 $0.10
$0.11 Vail Banks, Inc. Statement of Income (in thousands, except
share data) Three months ended Percent Six Months ended Percent
June 30, Change June 30, Change 2005 2004 2005 2004 Interest income
Interest on loans $7,410 5,223 42% 14,115 10,513 34% Fees on loans
833 943 (12) 1,742 1,717 1 Interest on investment securities 1,028
1,045 (2) 2,399 1,818 32 Interest on federal funds sold and
short-term investments 219 85 158 411 289 42 Investments in Trust I
and Trust II 19 19 0 38 38 0 Total interest income 9,509 7,315 30
18,705 14,375 30 Interest expense Deposits 1,623 1,005 61 2,952
2,024 46 Borrowings 241 345 (30) 605 717 (16) Federal funds
purchased and securities sold under agreements to repurchase 98 1 0
123 2 6,050 Subordinated notes to Trust I and Trust II 630 630 0
1,261 1,261 0 Total interest expense 2,592 1,981 31 4,941 4,004 23
Net interest income 6,917 5,334 30 13,764 10,371 33 Provision for
loan losses (36) 43 (184) 29 201 (86) Net interest income after
provision 6,953 5,291 31 13,735 10,170 35 Non-interest income 1,676
2,092 (20) 3,246 5,936 (45) Non-interest expense 7,210 6,619 9
14,311 13,135 9 Income before taxes 1,419 764 86 2,670 2,971 (10)
Income taxes 448 190 136 814 1,217 (33) Net Income $971 574 69%
1,856 1,754 6% Diluted net income per share $0.18 0.11 64% 0.34
0.32 6 Weighted average shares outstanding - diluted 5,335,764
5,417,827 (2) 5,403,438 5,409,908 0 Profitability Ratios Return on
assets 0.58% 0.39% 0.57% 0.60% Return on equity 6.41 3.95 6.12 6.04
Net interest margin (FTE) 5.00 4.38 5.07 4.28 Net chargeoffs /
(recoveries) (0.05) 0.04 (0.04) 0.21 Efficiency ratio 84 89 84 81
Average Balances Assets $654,444 592,343 10% 652,797 592,254 10%
Earning assets 561,978 501,982 12 558,089 500,313 12 Loans 411,495
329,508 25 406,943 322,088 26 Deposits 523,298 468,618 12 520,309
467,368 11 Shareholders' equity 60,937 58,453 4 60,611 58,487 4
Vail Banks, Inc. Supplemental Information (in thousands)
(unaudited) Three Months Ended June 30, Mar. 31, Dec. 31, Sept. 30,
June 30, 2005 2005 2004 2004 2004 Average Balances Assets $654,444
$651,133 $630,212 $604,689 $592,343 Earning assets 561,978 554,155
534,933 511,363 501,982 Loans 411,495 402,340 394,763 362,585
329,508 Deposits 523,298 517,286 498,080 480,902 468,618 Interest
bearing liabilities 468,261 465,834 455,340 436,601 430,525
Shareholders' equity 60,937 60,282 59,477 58,621 58,453 Average
Deposit Mix Interest bearing checking 93,380 93,637 97,081 99,279
95,259 Savings 31,787 31,560 33,013 31,893 30,300 Money market
162,355 147,308 133,006 124,130 126,845 CDs under $100,000 48,993
50,663 52,144 51,943 53,141 CDs $100,000 and over 67,114 74,850
74,070 69,965 64,829 Interest bearing deposits 403,629 398,018
389,314 377,210 370,374 Non-interest bearing checking 119,669
119,268 108,766 103,692 98,244 Total deposits $523,298 $517,286
$498,080 $480,902 $468,618 Net Interest Margin Analysis Net
interest income $6,917 $6,847 $6,518 $5,880 $5,334 Fully taxable
equivalent adjustment 76 140 133 132 134 Net interest income (FTE)
6,993 6,987 6,651 6,012 5,468 Yields (FTE) Loans 8.06% 7.67% 7.71%
7.36% 7.53% Investment securities 3.76 5.15 3.63 3.59 3.53 Other
earning assets 3.09 2.77 3.26 2.39 1.16 Total earning assets 6.86
6.83 6.60 6.23 5.97 Cost of funds Interest bearing deposits 1.62
1.35 1.23 1.08 1.09 Other interest bearing liabilities 6.03 6.10
6.20 6.52 6.53 Total interest bearing liabilities 2.23 2.05 1.95
1.82 1.85 Total interest expense to earning assets 1.85 1.71 1.65
1.55 1.59 Net interest margin (FTE) 5.00% 5.11% 4.95% 4.68% 4.38%
Vail Banks, Inc. Asset Quality (in thousands) (unaudited) Three
Months Ended June 30, Mar. 31, Dec. 31, Sept. 30, June 30, 2005
2005 2004 2004 2004 Asset Quality Nonaccrual loans $0 $1,391 $235
$814 $1,555 Restructured loans 0 0 0 0 0 Total non- performing
loans 0 1,391 235 814 1,555 Foreclosed properties 589 802 785 606
788 Total non- performing assets 589 2,193 1,020 1,420 2,343 90+
days past due and accruing 8 1,053 17 3 8 Total risk assets $597
$3,246 $1,037 $1,423 $2,351 Allowance for Loan Losses Beginning
Balance $3,989 $3,895 $3,742 $3,369 $3,361 Provision for loan
losses (36) 65 180 323 43 Loan charge-offs 1 24 63 149 120 Loan
recoveries 51 53 36 199 85 Net charge-offs (recoveries) (50) (29)
27 (50) 35 Ending Balance $4,003 $3,989 $3,895 $3,742 $3,369 Net
Charge-Offs (Recoveries) to Average Loans (0.05)% (0.03)% 0.03%
(0.05)% 0.04% Loans Past Due 30 Days or More and Accruing 0.20 0.31
0.32 0.15 0.24 DATASOURCE: Vail Banks, Inc. CONTACT: Raymond E.
Verlinde, Sr. EVP/Chief Administrative Officer, +1-970-328-9710, ,
or Brady T. Burt, EVP/Chief Financial Officer, +1-970-328-9711, ,
both of Vail Banks, Inc. Web site: http://www.weststarbank.com/
Copyright
Vail Banks (NASDAQ:VAIL)
Historical Stock Chart
From Oct 2024 to Nov 2024
Vail Banks (NASDAQ:VAIL)
Historical Stock Chart
From Nov 2023 to Nov 2024