EXHIBIT 99
INDEX TO EXHIBIT
EXHIBIT NO. DESCRIPTION PAGE
99 News release of FVNB Corp. 5-7
dated July 27, 2000
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EXHIBIT 99
PRESS RELEASE FOR FURTHER DAVID M. GADDIS
IMMEDIATE RELEASE INFORMATION: PRESIDENT & CEO
JULY 27, 2000 FVNB CORP.
361-572-6500
FVNB CORP. SECOND QUARTER DIVIDEND ANNOUNCEMENT
VICTORIA, TEXAS-FVNB Corp. (Nasdaq:FVNB) announced today that on July 26, 2000,
the Board of Directors of FVNB Corp. declared a regular cash dividend of $.35
per share payable on August 18, 2000 to shareholders of record as of August 4,
2000.
FVNB Corp. also announced that consolidated net income of the Company for the
six months ended June 30, 2000 was approximately $4.18 million, or $1.76 per
share. This compares to consolidated net income of approximately $3.82 million,
or $1.61 per share, for the same period in 1999. The growth in net income of
approximately $.36 million from 1999 to 2000 represents an increase of
approximately 9.42%. The Company's return on average assets of 1.28% and return
on average equity of 13.95% for the six months ended June 30, 2000 compare to
1.22% and 13.22%, respectively, for the same period in 1999.
As of June 30, 2000 and December 31, 1999, the Company reported total
consolidated assets of approximately $673 million and $655 million,
respectively. Consolidated deposits of the Company were approximately $563
million at June 30, 2000 compared to $555 million as of December 31, 1999.
"We are continuing to experience excellent growth in earnings as a result of
increased non-interest income and steady quality loan growth. Net income is up
over 9% for the first six months of 2000. Net of non- recurring items, such as
interest recoveries on restructured loans and a negative provision for loan
losses, totaling $.963 million in 1999, and interest recoveries of $.201 million
in 2000, our core earnings are up over 39%. That indicates that our strategy of
independent, responsive banking is paying off," commented David M. Gaddis,
President & Chief Executive Officer of FVNB Corp.
Noted Financial Data
o Net interest income of the Company was approximately $13,468,000 in the first
six months of 2000 compared to $12,851,000 for the same period in 1999. This
increase of approximately $617,000, or 4.80%, is due primarily to an overall
increase in the yields on earning assets as well as a shift in the mix of
earning assets from investment securities into higher yielding loans. In
addition, the Company experienced rising rates on interest-bearing liabilities
during the first six months of 2000 resulting in higher interest costs. These
increased interest costs were more than offset by the favorable impact of
increased yields on earning assets.
o Non-interest income of the Company was approximately $5,082,000 in the first
six months of 2000 compared to $3,494,000 for the same period in 1999. This
represents an increase of approximately $1,588,000, or 45.45%. Significant
components of the Company's non-interest income include trust service fees,
services charges and fees on deposit accounts, and income from leasing
activities. Non-interest income increased in 2000 due primarily to the impact of
rental income recognized as the result of the operating lease of an aircraft
entered into by a wholly owned operating subsidiary of First Victoria National
Bank in June 1999. First Victoria National Bank is a wholly owned subsidiary
bank of the Company.
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o The Company reported non-interest expense of approximately $11,878,000 for the
first six months of 2000 compared to $10,482,000 for the same period in 1999.
This represents an increase of approximately $1,396,000, or 13.32%. Significant
components of non-interest expense include salaries and employee benefits, net
occupancy and furniture and equipment expense, professional fees, data
processing expense and amortization of goodwill and intangibles. The Company
experienced increases in this area during 2000 due primarily to expenses
associated with leasing activities entered into by First Victoria National Bank
in June 1999.
o On April 14, 2000, First Victoria National Bank completed the acquisition of
Mid-Coast Savings Bank. Upon completion of the transaction, the two banks merged
with the existing branches of Mid-Coast becoming branches of First Victoria
National Bank. Total intangible assets associated with the acquisition were
approximately $4,257,000.
FVNB Corp. is a financial holding company whose principal operating subsidiaries
are First Victoria National Bank with locations in Victoria, Port Lavaca, Taft,
Edna, and Ganado, Texas, and Citizens Bank of Texas N.A., with locations in New
Waverly, The Woodlands, and Huntsville, Texas. As of June 30, 2000, total
consolidated assets of the company were approximately $673 million and
consolidated equity capital was approximately $62 million.
["Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
contain forward looking information with respect to plans, projections or future
performance of the Company, the occurrence of which involve certain risks and
uncertainties detailed in the Company's filings with the Securities Exchange
Commission.] Subsidiary Banks, Member FDIC
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FVNB CORP.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, DECEMBER 31, JUNE 30,
2000 1999 1999
---------------------------------------------------------------------------------
ASSETS (IN THOUSANDS)
<S> <C> <C> <C>
Cash and due from banks .................... $ 25,732 $ 26,993 $ 23,327
Federal funds sold ......................... 2,610 38,170 3,570
Investment securities ...................... 153,665 158,776 171,403
Loans and leases ........................... 441,846 387,407 366,442
Premises and equipment ..................... 30,729 30,693 31,790
Goodwill ................................... 14,543 10,719 10,721
Other assets ............................... 8,514 6,999 8,189
-------- -------- --------
TOTAL ASSETS ....................... $673,035 $655,184 $611,229
======== ======== ========
LIABILITIES
Deposits:
Non interest-bearing deposits ............ $ 98,494 $ 90,857 $ 86,798
Interest-bearing deposits ................ 464,103 463,963 412,791
-------- -------- --------
Total deposits ........................ 562,597 554,820 499,589
Federal funds purchased and securities
sold under agreements to repurchase ...... 11,900 3,750 16,750
Other borrowed funds ....................... 28,040 27,827 29,014
Other liabilities .......................... 8,393 8,478 6,873
-------- -------- --------
TOTAL LIABILITIES .................. 610,930 594,875 552,226
SHAREHOLDERS' EQUITY ......................... 62,105 60,309 59,003
-------- -------- --------
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY ........................ $673,035 $655,184 $611,229
======== ======== ========
CAPITAL RATIOS
Leverage Ratio ............................. 7.88% 8.40% 8.17%
Risk Based Ratios -
Tier I Capital ........................... 10.96% 12.23% 12.54%
Total Regulatory Capital ................. 11.94% 13.28% 13.58%
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS THREE MONTHS ENDED SIX MONTHS ENDED
OF INCOME JUNE 30, JUNE 30,
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2000 1999 2000 1999
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income ..................... $ 12,791 $ 11,968 $ 24,462 $ 22,330
Interest expense .................... 5,713 4,780 10,994 9,479
-------- -------- -------- --------
NET INTEREST INCOME ............... 7,078 7,188 13,468 12,851
Provision for loan and lease losses . 60 (150) 110 (145)
-------- -------- -------- --------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN AND LEASE LOSSES ....... 7,018 7,338 13,358 12,996
Non-interest income ................. 2,649 1,712 5,082 3,494
Non-interest expense ................ 6,324 5,394 11,878 10,482
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES ........ 3,343 3,656 6,562 6,008
Income tax expense .................. 1,228 1,351 2,386 2,193
-------- -------- -------- --------
NET INCOME ........................ $ 2,115 $ 2,305 $ 4,176 $ 3,815
======== ======== ======== ========
Basic earnings per share ............ $ .90 $ .97 $ 1.76 $ 1.61
======== ======== ======== ========
Diluted earnings per share .......... $ .84 $ .93 $ 1.68 $ 1.56
======== ======== ======== ========
Return on average assets ............ 1.27% 1.47% 1.28% 1.22%
Return on average equity ............ 13.92% 15.50% 13.95% 13.22%
</TABLE>
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