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<PAGE> 1
EXHIBIT 99
FOR IMMEDIATE RELEASE July 25, 2000
FOR FURTHER INFORMATION CONTACT
RICHARD L. PARK
LOCAL FINANCIAL CORPORATION
405-841-2298
LOCAL FINANCIAL CORPORATION
REPORTS SECOND QUARTER RESULTS
OKLAHOMA CITY -- Local Financial Corporation's 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
<PAGE> 2
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.
Local Financial Corporation and Subsidiary
Summary Statement of Operations
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
--------------------------------------- ---------------------------------------
2000 1999 % Change 2000 1999 % Change
-------- -------- -------- -------- -------- ---------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest Income $ 45,526 $ 40,467 12.5% $ 91,326 $ 79,667 14.6%
Interest Expense 26,514 22,318 18.8 53,276 44,489 19.8
-------- -------- -------- --------
NET INTEREST INCOME 19,012 18,149 4.8 38,050 35,178 8.2
Provision for Loan Losses (500) (500) -- (1,000) (1,000) --
Other Operating Income 4,682 4,681 -- 8,947 9,062 (1.3)
Other Operating Expense 13,769 13,636 1.0 27,211 26,477 2.8
-------- -------- -------- --------
INCOME BEFORE TAXES AND
EXTRAORDINARY ITEM 9,425 8,694 8.4 18,786 16,763 12.1
Tax Provision 3,405 3,147 8.2 6,786 6,077 11.7
-------- -------- -------- --------
INCOME BEFORE
EXTRAORDINARY ITEM 6,020 5,547 8.5 12,000 10,686 12.3
Extraordinary Item--Purchase and
Retirement of Senior Notes, net
of tax -- -- -- (871) -- --
-------- -------- -------- --------
NET INCOME $ 6,020 $ 5,547 8.5% $ 11,129 $ 10,686 4.1%
======== ======== ==== ======== ======== ========
Basic Earnings per Share Before
Extraordinary Item $ 0.29 $ 0.27 7.4% $ 0.58 $ 0.52 11.5%
Diluted Earnings per Share Before
Extraordinary Item $ 0.29 $ 0.27 7.4% $ 0.58 $ 0.52 11.5%
Net Income Basic Earnings per Share $ 0.29 $ 0.27 7.4% $ 0.54 $ 0.52 3.8%
Net Income Diluted Earnings per Share $ 0.29 $ 0.27 7.4% $ 0.54 $ 0.52 3.8%
</TABLE>
<PAGE> 3
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
------------------------- Percent ------------------------- Percent
2000 1999 Change 2000 1999 Change
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
SELECTED FINANCIAL RATIOS
Yield on earning assets 8.10% 7.83% 3.4% 8.15% 7.89% 3.3%
Cost of funds 5.21 4.87 7.0 5.25 4.83 8.7
Interest rate spread 2.89 2.96 (2.4) 2.90 3.06 (5.2)
Net interest margin 3.38 3.46 (2.3) 3.40 3.54 (4.0)
Return on average assets before
extraordinary item 1.03 1.01 2.0 1.04 1.04 --
Return on average equity before
extraordinary item 18.40 17.52 5.0 18.12 17.69 2.4
Stockholders' equity to total
assets at June 30 5.80 5.71 1.6 -- -- --
PER SHARE DATA
Basic earnings per share before
extraordinary item $ 0.58 $ 0.52 11.5 $ 0.29 $ 0.27 7.4
Diluted earnings per share before
extraordinary item $ 0.58 $ 0.52 11.5 $ 0.29 $ 0.27 7.4
Book value per share at June 30 $ 6.69 $ 6.13 9.1 -- -- --
Average shares outstanding
(in thousands) 20,537 20,537 -- 20,537 20,537 --
</TABLE>
<TABLE>
<CAPTION>
June 30, December 31, Percent
2000 1999 Change
---------- ----------- --------
<S> <C> <C> <C>
FINANCIAL CONDITION DATA
Total assets $2,367,661 $2,381,607 (0.6)%
Loans receivable, net 1,804,824 1,685,550 7.1
Securities available for sale 413,052 529,230 (22.0)
Deposits 1,865,606 1,848,340 0.9
Advances from the Federal Home Loan Bank of Topeka 276,156 302,035 (8.6)
Senior notes 43,160 75,250 (42.6)
Stockholders' equity 137,376 128,294 7.1
Allowance for loan losses 28,313 28,297 0.1
</TABLE>
<PAGE> 4
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
---------------------- ----------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME:
Loans $ 73,729 $ 61,420 $ 37,490 $ 31,672
Securities available for sale 16,047 16,458 7,199 7,966
Federal Home Loan Bank of Topeka stock 749 1,209 326 544
Other investments 801 580 511 285
-------- -------- -------- --------
Total interest and dividend income 91,326 79,667 45,526 40,467
-------- -------- -------- --------
INTEREST EXPENSE:
Deposit accounts 41,868 33,913 21,468 16,729
Advances from the Federal Home Loan Bank of Topeka 7,636 5,850 3,527 3,226
Securities sold under agreements to repurchase 244 -- 244 --
Notes payable 3,528 4,726 1,275 2,363
-------- -------- -------- --------
Total interest expense 53,276 44,489 26,514 22,318
-------- -------- -------- --------
Net interest and dividend income 38,050 35,178 19,012 18,149
Provision for loan losses (1,000) (1,000) (500) (500)
-------- -------- -------- --------
Net interest and dividend income after provision
for loan losses 37,050 34,178 18,512 17,649
-------- -------- -------- --------
NONINTEREST INCOME:
Deposit related income 6,819 6,572 3,610 3,448
Loan fees and loan service charges 888 1,360 430 687
Net gains on sale of assets 311 546 147 219
Other 929 584 495 327
-------- -------- -------- --------
Total noninterest income 8,947 9,062 4,682 4,681
-------- -------- -------- --------
NONINTEREST EXPENSE:
Compensation and employee benefits 15,627 13,922 7,869 7,075
Deposit insurance premiums 187 479 95 241
Equipment and data processing 3,359 2,697 1,881 1,454
Occupancy 1,768 1,931 884 1,105
Advertising 300 658 144 314
Professional fees 528 1,174 177 673
Other 5,442 5,616 2,719 2,774
-------- -------- -------- --------
Total noninterest expense 27,211 26,477 13,769 13,636
-------- -------- -------- --------
Income before provision for income taxes 18,786 16,763 9,425 8,694
Provision for income taxes 6,786 6,077 3,405 3,147
-------- -------- -------- --------
Income before extraordinary item $ 12,000 $ 10,686 $ 6,020 $ 5,547
-------- -------- -------- --------
Extraordinary item - purchase and retirement
of 11% Senior Notes, net of tax (871) -- -- --
-------- -------- -------- --------
Net Income $ 11,129 $ 10,686 $ 6,020 $ 5,547
======== ======== ======== ========
</TABLE>
<PAGE> 5
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
(unaudited)
June 30, December 31,
2000 1999
------------ -----------
<S> <C> <C>
ASSETS
Cash and due from banks $ 35,444 $ 48,122
Interest bearing deposits with other banks 6,000 7,700
Securities available for sale 413,052 529,230
Loans receivable, net of allowance for loan losses of $28,313
at June 30, 2000 and $28,297 at December 31, 1999 1,804,824 1,685,550
Federal Home Loan Bank of Topeka stock
and Federal Reserve Bank stock, at cost 17,591 24,820
Premises and equipment, net 37,442 31,805
Assets acquired through foreclosure and repossession, net 418 723
Intangible assets, net 17,557 18,227
Deferred tax asset, net 14,247 14,217
Other assets 21,086 21,213
----------- -----------
Total assets $ 2,367,661 $ 2,381,607
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 480,312 $ 458,824
Savings 70,566 73,546
Time 1,314,728 1,315,970
----------- -----------
Total deposits 1,865,606 1,848,340
Advances from the Federal Home Loan Bank of Topeka 276,156 302,035
Securities sold under agreements to repurchase 20,135 --
Senior notes 43,160 75,250
Other liabilities 25,228 27,688
----------- -----------
Total liabilities 2,230,285 2,253,313
----------- -----------
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value, 25,000,000 shares authorized;
20,537,269 shares issued and 20,537,209 shares outstanding at
June 30, 2000 and December 31, 1999 205 205
Preferred stock, $0.01 par value, 5,000,000 shares authorized;
none outstanding -- --
Additional paid-in capital 206,758 206,758
Retained earnings 83,318 72,189
Treasury stock, 60 shares, at cost (151,274) (151,274)
Accumulated other comprehensive income (loss) (1,631) 416
----------- -----------
Total stockholders' equity 137,376 128,294
----------- -----------
Total liabilities and stockholders' equity $ 2,367,661 $ 2,381,607
=========== ===========
</TABLE>
<PAGE> 6
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
NON-PERFORMING ASSETS
(Dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
June 30, March 31, June 30,
2000 2000 Net Change 1999 Net Change
-------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Non-accruing loans:
Single-family residential $ 3,653 $ 2,116 $ 1,537 $ 2,257 $ 1,396
Commercial 2,793 416 2,377 1,335 1,458
Construction -- 93 (93) -- --
Consumer 800 460 340 277 523
------- ------- ------- ------- -------
Total $ 7,246 $ 3,085 $ 4,161 $ 3,869 $ 3,377
Accruing loans 90 days or more delinquent:
Single-family residential $ 50 $ 40 $ 10 $ 2 $ 48
Commercial 860 1,064 (204) 2,965 (2,105)
Construction -- -- -- 5 (5)
Consumer 29 485 (456) 355 (326)
------- ------- ------- ------- -------
Total $ 939 $ 1,589 $ (650) $ 3,327 $(2,388)
Foreclosed Assets:
Single-family residential $ 67 $ 117 $ (50) $ 202 $ (135)
Commercial 243 246 (3) 522 (279)
Construction -- -- -- -- --
Consumer 108 201 (93) 153 (45)
------- ------- ------- ------- -------
Total foreclosures $ 418 $ 564 $ (146) $ 877 $ (459)
Total non-performing assets $ 8,603 $ 5,238 $ 3,365 $ 8,073 $ 530
======= ======= ======= ======= =======
Total non-performing assets as a percentage of total assets 0.36% 0.23% 0.37%
======= ======= =======
Total non-performing loans as a percentage of total allowance 28.91% 16.27% 25.42%
======= ======= =======
Total non-performing assets as a percentage of total loans 0.47% 0.30% 0.51%
======= ======= =======
Total non-performing loans as a percentage of total loans 0.45% 0.27% 0.45%
======= ======= =======
Total non-performing loans as a percentage of total capital 5.96% 3.56% 5.72%
======= ======= =======
</TABLE>
<PAGE> 7
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
---------------------
2000 1999
-------- --------
<S> <C> <C>
Beginning Balance $ 28,727 $ 28,310
Provision 500 500
Allowances Acquired -- --
Charge-Offs
Commercial (657) (451)
Consumer (499) (225)
Residential (21) (110)
-------- --------
Total Charge-Offs (1,177) (786)
-------- --------
Recoveries 263 280
-------- --------
Net Losses (914) (506)
-------- --------
-------- --------
Ending Balance $ 28,313 $ 28,304
======== ========
Net Losses To Average Loans 0.05% 0.03%
======== ========
</TABLE>
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, December 31,
--------------------- ------------
2000 1999 1999
--------------------- ------------
<S> <C> <C> <C>
Beginning Balance $ 28,297 $ 27,901 $ 27,901
Provision 1,000 1,000 2,000
Allowances Acquired -- -- 340
Charge-Offs
Commercial (922) (608) (2,397)
Consumer (754) (372) (1,142)
Residential (85) (110) (314)
-------- -------- --------
Total Charge-Offs (1,761) (1,090) (3,853)
-------- -------- --------
Recoveries 777 493 1,909
-------- -------- --------
Net Losses (984) (597) (1,944)
-------- -------- --------
-------- -------- --------
Ending Balance $ 28,313 $ 28,304 $ 28,297
======== ======== ========
Net Losses To Average Loans 0.06% 0.04% 0.12%
======== ======== ========
</TABLE>
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