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<PAGE> 1
EXHIBIT 99
FOR IMMEDIATE RELEASE OCTOBER 24, 2000
FOR FURTHER INFORMATION CONTACT
RICHARD L. PARK
LOCAL FINANCIAL CORPORATION
405-841-2298
LOCAL FINANCIAL CORPORATION
REPORTS THIRD QUARTER RESULTS
OKLAHOMA CITY -- Local Financial Corporation announced earnings of $6.2
million before extraordinary item for its third quarter which ended September
30, 2000, up $424,000 or 7.4 percent over the same period in 1999. Year-to-date
earnings before extraordinary item were $18.2 million or 10.6 percent over the
same period in the prior year. Basic earnings per share before extraordinary
item for the quarter ended September 2000 were 30 cents compared to 28 cents one
year ago. For the year to date basic earnings per share before extraordinary
item were reported at 88 cents compared to 80 cents for the same period in 1999.
For the nine months ended September 2000 Local Financial Corporation reported a
return on assets before extraordinary item of 1.03 percent and a return on
equity before extraordinary item of 18.03 percent.
Loans have increased 10.6 percent or $181.3 million since December 31,
1999 with total loan balances at $1.9 billion as of September 30, 2000. Chairman
and CEO Edward A. Townsend stated, "Our loan growth has remained robust without
compromising asset quality. Our experienced lenders ensure high quality
underwriting standards, while our credit management team provides the support
required to manage the loan portfolio safely and profitably. As a result of this
attention to credit quality, our non-performing assets to total assets ratio was
only .36 percent at September 30, 2000."
Demand deposits totaled $505 million at September 30, 2000, an
annualized rate of growth of 13.6 percent for the first nine months of this
year. Furthermore, Local Oklahoma Bank now provides corporate sweep accounts
reflected on our balance sheet as "securities sold under agreements to
repurchase." "As part of our initiative to provide competitive commercial cash
management services, the Company offers its customers the opportunity to have
their funds swept into securities sold under repurchase agreements which
essentially are interest earning transaction accounts collateralized by
marketable securities," stated Mr. Townsend.
Net interest income for the nine months ended September 2000 rose 6.0
percent to $57.5 million compared to the same period in 1999, and our net
interest margin held relatively steady given
<PAGE> 2
the interest rate environment, primarily due to the growth in the Company's loan
portfolio and more attractive funding options (i.e. demand deposits and sweep
accounts.) The Company held operating expenses to only marginal increases in the
nine-month period and reported a decline in the three-month comparative period.
As a result of continued emphasis on expense control the efficiency ratio for
the nine months ended September 2000 was 56.8 percent compared to 58.7 percent
for the same period last year.
Local Oklahoma is the third largest commercial bank headquartered in
the state with assets of $2.4 billion and deposits in excess of $1.88 billion.
Local Oklahoma operates 51 branches across the state with significant presence
in Oklahoma City, Tulsa and Lawton. Its parent company, Local Financial
Corporation, trades on the NASDAQ national market under the symbol "LFIN."
Local Financial Corporation and Subsidiary
Summary Statement of Operations
<TABLE>
<CAPTION>
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
--------------------------------------- ---------------------------------------
2000 1999 % Change 2000 1999 % Change
--------- --------- --------- --------- --------- ---------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest Income $ 47,887 $ 43,608 9.8% $ 139,213 $ 123,275 12.9%
Interest Expense 28,415 24,526 15.9 81,691 69,015 18.4
--------- --------- --------- ---------
NET INTEREST INCOME 19,472 19,082 2.0 57,522 54,260 6.0
Provision for Loan Losses (500) (500) -- (1,500) (1,500) --
Other Operating Income 4,436 4,721 (6.0) 13,383 13,783 (2.9)
Other Operating Expense 13,751 14,315 (3.9) 40,962 40,792 0.4
--------- --------- --------- ---------
INCOME BEFORE TAXES AND
EXTRAORDINARY ITEM 9,657 8,988 7.4 28,443 25,751 10.5
Tax Provision 3,496 3,251 7.5 10,282 9,328 10.2
--------- --------- --------- ---------
INCOME BEFORE
EXTRAORDINARY ITEM 6,161 5,737 7.4 18,161 16,423 10.6
Extraordinary Item--Purchase and
Retirement of Senior Notes, net
of tax -- (182) -- (871) (182) --
--------- --------- --------- ---------
NET INCOME $ 6,161 $ 5,555 10.9% $ 17,290 $ 16,241 6.5%
========= ========= ========= ========= ========= =========
Basic Earnings per Share Before
Extraordinary Item $ 0.30 $ 0.28 7.1% $ 0.88 $ 0.80 10.0%
Diluted Earnings per Share Before
Extraordinary Item $ 0.30 $ 0.28 7.1% $ 0.88 $ 0.80 10.0%
Net Income Basic Earnings per Share $ 0.30 $ 0.27 11.1% $ 0.84 $ 0.79 6.3%
Net Income Diluted Earnings per Share $ 0.30 $ 0.27 11.1% $ 0.84 $ 0.79 6.3%
</TABLE>
<PAGE> 3
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------
09/30/00 06/30/00 03/31/00 12/31/99 9/30/99
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME:
Loans $ 40,712 37,490 36,239 35,581 33,868
Securities available for sale 6,642 7,199 8,848 8,583 9,100
Federal Home Loan Bank of Topeka and Federal
Reserve Bank stock 373 326 423 514 492
Other investments 160 511 290 345 148
------------ ----------- ----------- ----------- -----------
Total interest and dividend income 47,887 45,526 45,800 45,023 43,608
INTEREST EXPENSE:
Deposit accounts 22,394 21,468 20,400 19,727 16,936
Advances from the Federal Home Loan Bank of Topeka 4,382 3,581 4,109 3,794 5,257
Securities sold under agreements to repurchase 365 190 -- -- --
Notes payable 1,274 1,275 2,253 2,251 2,333
------------ ----------- ----------- ----------- -----------
Total interest expense 28,415 26,514 26,762 25,772 24,526
Net interest and dividend income 19,472 19,012 19,038 19,251 19,082
Provision for loan losses (500) (500) (500) (500) (500)
------------ ----------- ----------- ----------- -----------
Net interest and dividend income after
provision for loan losses 18,972 18,512 18,538 18,751 18,582
NONINTEREST INCOME:
Deposit related income 3,275 3,610 3,209 3,619 3,415
Loan fees and loan service charges 434 430 458 600 719
Net gains on sale of assets 223 147 164 299 356
Other 504 495 434 241 231
------------ ----------- ----------- ----------- -----------
Total noninterest income 4,436 4,682 4,265 4,759 4,721
NONINTEREST EXPENSE:
Compensation and employee benefits 7,871 7,869 7,758 7,116 7,155
Deposit insurance premiums 94 95 92 219 200
Equipment and data processing 1,628 1,881 1,478 1,570 1,675
Occupancy 1,039 884 884 1,026 1,076
Advertising 153 144 156 435 405
Professional fees 217 177 351 716 697
Other 2,749 2,719 2,723 3,303 3,107
------------ ----------- ----------- ----------- -----------
Total noninterest expense 13,751 13,769 13,442 14,385 14,315
------------ ----------- ----------- ----------- -----------
Income before income taxes and extraordinary item 9,657 9,425 9,361 9,125 8,988
Provision for income taxes 3,496 3,405 3,381 3,299 3,251
------------ ----------- ----------- ----------- -----------
Income before extraordinary item $ 6,161 6,020 5,980 5,826 5,737
------------ ----------- ----------- ----------- -----------
Extraordinary item - purchase and retirement of
11% Senior Notes, net of tax -- -- (871) (75) (182)
------------ ----------- ----------- ----------- -----------
Net income $ 6,161 6,020 5,109 5,751 5,555
============ =========== =========== =========== ===========
Earnings per share:
Income before extraordinary item
Basic $ 0.30 0.29 0.29 0.28 0.28
============ =========== =========== =========== ===========
Diluted $ 0.30 0.29 0.29 0.28 0.28
============ =========== =========== =========== ===========
Net income $ 0.30 0.29 0.25 0.28 0.27
============ =========== =========== =========== ===========
Basic $ 0.30 0.29 0.25 0.28 0.27
============ =========== =========== =========== ===========
Diluted
Average shares outstanding
Basic 20,537,209 20,537,209 20,537,209 20,537,209 20,537,209
============ =========== =========== =========== ===========
Diluted 20,537,209 20,537,209 20,537,209 20,537,209 20,537,209
============ =========== =========== =========== ===========
</TABLE>
<PAGE> 4
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands)
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
09/30/00 12/31/99 % CHANGE 09/30/99 % CHANGE
----------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 34,091 48,122 (29.2) 48,616 (29.9)
Interest bearing deposits with other banks 16,500 7,700 114.3 3,100 432.3
Securities available for sale 404,078 529,230 (23.6) 449,858 (10.2)
Loans receivable, net of allowance for loan losses
of $28,455 at September 30, 2000; $28,297 at
December 31, 1999; and
$28,530 at September 30, 1999 1,866,674 1,685,550 10.7 1,642,058 13.7
Federal Home Loan Bank of Topeka stock
and Federal Reserve Bank stock, at cost 19,417 24,820 (21.8) 29,216 (33.5)
Premises and equipment, net 37,863 31,805 19.0 30,571 23.9
Assets acquired through foreclosure and
repossession, net 458 723 (36.7) 705 (35.0)
Intangible assets, net 17,223 18,227 (5.5) 16,513 4.3
Deferred tax asset 10,690 14,217 (24.8) 12,364 (13.5)
Other assets 22,735 21,213 7.2 28,842 (21.2)
----------- ----------- ---------
Total assets $ 2,429,729 2,381,607 2.0 2,261,843 7.4
=========== =========== ==== ========= ====
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 505,385 458,824 10.1 435,288 16.1
Savings 65,657 73,546 (10.7) 73,689 (10.9)
Time 1,313,592 1,315,970 (0.2) 1,215,714 8.1
----------- ----------- ---------
Total deposits 1,884,634 1,848,340 2.0 1,724,691 9.3
Advances from the Federal Home Loan Bank of Topeka 305,563 302,035 1.2 302,894 0.9
Securities sold under agreements to repurchase 32,084 -- -- -- --
Senior notes 43,160 75,250 (42.6) 76,750 (43.8)
Other liabilities 18,336 27,688 (33.8) 32,739 (44.0)
----------- ----------- ---------
Total liabilities 2,283,777 2,253,313 1.4 2,137,074 6.9
----------- ----------- ---------
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 September 30, 2000; December 31, 1999;
and September 30, 1999 205 205 -- 205 --
Preferred Stock, $0.01 par value, 5,000,000 shares
authorized; none outstanding -- -- -- --
Additional paid-in capital 206,758 206,758 -- 206,758 --
Retained earnings 89,479 72,189 24.0 66,438 34.7
Treasury stock, 60 shares, at cost (151,274) (151,274) -- (151,274) --
Accumulated other comprehensive income 784 416 88.5 2,642 (70.3)
----------- ----------- ---------
Total stockholders' equity 145,952 128,294 13.8 124,769 17.0
----------- ----------- ---------
Total liabilities and stockholders' equity $ 2,429,729 2,381,607 2.0 2,261,843 7.4
=========== =========== ==== ========= ====
</TABLE>
<PAGE> 5
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------- PERCENT ------------------
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
SELECTED FINANCIAL RATIOS:
Yield on earning assets 8.21% 7.86% 4.5 8.42% 7.93% 6.2
Cost of funds 5.30 4.87 8.8 5.49 4.86 13.0
Interest rate spread 2.91 2.99 (2.7) 2.93 3.07 (4.6)
Net interest margin 3.39 3.46 (2.0) 3.42 3.47 (1.4)
Return on average assets before extraordinary item 1.03 1.01 2.0 1.03 0.99 4.0
Return on average equity before extraordinary item 18.03 17.76 1.5 17.36 18.16 (4.4)
Stockholders' equity to total assets at September 30 6.01 5.52 8.9
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- PERCENT ---------------------- PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
-------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
INCOME STATEMENT DATA:
Net interest income $ 57,522 54,260 6.0 $ 19,472 19,082 2.0
Provision for loan losses (1,500) (1,500) -- (500) (500) --
Noninterest income 13,383 13,783 (2.9) 4,436 4,721 (6.0)
Noninterest expense 40,962 40,792 0.4 13,751 14,315 (3.9)
Net income 17,290 16,241 6.5 6,161 5,555 10.9
</TABLE>
<TABLE>
<CAPTION>
PERCENT
09/30/00 12/31/99 CHANGE
------------ ----------- --------
<S> <C> <C> <C>
FINANCIAL CONDITION DATA:
Total assets $ 2,429,729 2,381,607 2.0
Loans receivable, net 1,866,674 1,685,550 10.7
Securities available for sale 404,078 529,230 (23.6)
Deposits 1,884,634 1,848,340 2.0
Advances from the Federal Home Loan Bank of Topeka 305,563 302,035 1.2
Senior notes 43,160 75,250 (42.6)
Stockholders' equity 145,952 128,294 13.8
Allowance for loan losses 28,455 28,297 0.6
</TABLE>
<PAGE> 6
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
NON-PERFORMING ASSETS
(Dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
09/30/00 06/30/00 NET CHANGE 09/30/99 NET CHANGE
-------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
Non-accruing loans:
Single-family residential $3,763 3,653 110 $2,245 1,518
Commercial 3,117 2,793 324 678 2,439
Construction 16 -- 16 -- 16
Consumer 1,339 800 539 749 590
------ ----- ---- ------ ------
Total $8,235 7,246 989 $3,672 4,563
Accruing loans 90 days or more delinquent:
Single-family residential $ -- 50 (50) $ 8 (8)
Commercial 8 860 (852) 158 (150)
Construction -- -- -- -- --
Consumer 42 29 13 173 (131)
------ ----- ---- ------ ------
Total $ 50 939 (889) $ 339 (289)
Foreclosed Assets:
Single-family residential $ 205 67 138 $ 189 16
Commercial 166 243 (77) 375 (209)
Construction -- -- -- -- --
Consumer 87 108 (21) 141 (54)
------ ----- ---- ------ ------
Total foreclosures $ 458 418 40 $ 705 (247)
------ ----- ---- ------ ------
Total non-performing assets $8,743 8,603 140 $4,716 4,027
====== ===== ==== ====== ======
Total non-performing assets as a percentage of total assets 0.36% 0.36% 0.21%
====== ===== ======
Total non-performing loans as a percentage of total allowance 29.12% 28.91% 14.06%
====== ===== ======
Total non-performing assets as a percentage of total loans 0.46% 0.47% 0.28%
====== ===== ======
Total non-performing loans as a percentage of total loans 0.44% 0.45% 0.24%
====== ===== ======
Total non-performing loans as a percentage of total capital 5.68% 5.96% 3.21%
====== ===== ======
</TABLE>
<PAGE> 7
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
-----------------------
2000 1999
-------- -------
<S> <C> <C>
Beginning Balance $ 28,313 28,304
Provision 500 500
Allowances Acquired -- --
Charge-Offs
Commercial (273) (890)
Consumer (260) (160)
Residential (26) (84)
-------- -------
Total Charge-Offs (559) (1,134)
-------- -------
Recoveries 201 860
-------- -------
Net Losses (358) (274)
-------- -------
-------- -------
Ending Balance $ 28,455 28,530
======== =======
Net Losses To Average Loans 0.02% 0.02%
======== =======
</TABLE>
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, DECEMBER 31,
----------------------- ------------
2000 1999 1999
-------- ------- -------
<S> <C> <C> <C>
Beginning Balance $ 28,297 27,901 27,901
Provision 1,500 1,500 2,000
Allowances Acquired -- -- 340
Charge-Offs
Commercial (1,195) (1,497) (2,397)
Consumer (1,014) (531) (1,142)
Residential (111) (195) (314)
-------- ------- -------
Total Charge-Offs (2,320) (2,223) (3,853)
-------- ------- -------
Recoveries 978 1,352 1,909
-------- ------- -------
Net Losses (1,342) (871) (1,944)
-------- ------- -------
Ending Balance $ 28,455 28,530 28,297
======== ======= =======
Net Losses To Average Loans 0.08% 0.06% 0.12%
======== ======= =======
</TABLE>
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