PRESS RELEASE FOR FURTHER DAVID M. GADDIS
IMMEDIATE RELEASE INFORMATION: PRESIDENT & CEO
OCTOBER 26, 2000 FVNB CORP.
361-572-6500
FVNB CORP. THIRD QUARTER DIVIDEND AND EARNINGS ANNOUNCEMENT
VICTORIA, TEXAS-FVNB Corp. (Nasdaq: FVNB) announced today that on October 25,
2000, the Board of Directors of FVNB Corp. declared a regular cash dividend of
$.35 per share payable on November 17, 2000 to shareholders of record as of
November 3, 2000.
FVNB Corp. also announced that consolidated net income of the Company for the
nine months ended September 30, 2000 was approximately $6.35 million, or $2.68
per share. This compares to consolidated net income of approximately $6.09
million, or $2.56 per share, for the same period in 1999. The growth in net
income of approximately $.26 million from 1999 to 2000 represents an increase of
approximately 4.35%. The Company's return on average assets of 1.27% and return
on average equity of 13.82% for the nine months ended September 30, 2000 compare
to 1.30% and 13.86%, respectively, for the same period in 1999.
As of September 30, 2000 and December 31, 1999, the Company reported total
consolidated assets of approximately $687 million and $655 million,
respectively. Consolidated deposits of the Company were approximately $571
million at September 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 at both of our
subsidiary banks. Net income is up 4.35% for the first nine months of 2000. Net
of non-recurring items totaling $1.17 million in 1999 and $.20 million in 2000,
our core earnings are up over 25%." commented David M. Gaddis, President & Chief
Executive Officer of FVNB Corp.
Noted Financial Data
o Net interest income of the Company was approximately $20,534,000 in the first
nine months of 2000 compared to $18,894,000 for the same period in 1999. This
increase of approximately $1,640,000, or 8.68%, is due primarily to an overall
increase in the volume and 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 nine 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 $7,579,000 in the first
nine months of 2000 compared to $6,124,000 for the same period in 1999. This
represents an increase of approximately $1,455,000, or 23.76%. 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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The Company reported non-interest expense of approximately $17,828,000 for the
first nine months of 2000 compared to $15,680,000 for the same period in 1999.
This represents an increase of approximately $2,148,000, or 13.70%. 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.
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 September 30, 2000, total
consolidated assets of the Company were approximately $687 million and
consolidated equity capital was approximately $64 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 and Exchange
Commission.]
Subsidiary Banks, Member FDIC
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FVNB CORP.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
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CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS (IN THOUSANDS)
Cash and due from banks ..................... $ 27,762 $ 26,993 $ 24,099
Federal funds sold .......................... 25,120 38,170 27,040
Investment securities ....................... 143,216 158,776 162,012
Loans and leases ............................ 440,905 387,407 368,448
Allowance for loan and lease losses ....... (4,810) (4,573) (4,317)
Premises and equipment ...................... 30,448 30,693 31,236
Goodwill .................................... 14,280 10,719 10,371
Other assets ................................ 9,721 6,999 9,999
--------- --------- ---------
TOTAL ASSETS ........................ $ 686,642 $ 655,184 $ 628,888
========= ========= =========
LIABILITIES
Deposits:
Non interest-bearing deposits ............. $ 108,409 $ 90,857 $ 92,306
Interest-bearing deposits ................. 462,481 463,963 437,881
--------- --------- ---------
Total deposits ......................... 570,890 554,820 530,187
Federal funds purchased and securities
sold under agreements to repurchase ....... 10,675 3,750 3,700
Other borrowed funds ........................ 31,055 27,827 28,275
Other liabilities ........................... 9,634 8,478 7,144
--------- --------- ---------
TOTAL LIABILITIES ................... 622,254 594,875 569,306
SHAREHOLDERS' EQUITY .......................... 64,388 60,309 59,582
--------- --------- ---------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 686,642 $ 655,184 $ 628,888
========= ========= =========
CAPITAL RATIOS
Leverage Ratio .............................. 8.04% 8.40% 8.51%
Risk Based Ratios -
Tier I Capital ............................ 11.44% 12.23% 12.62%
Total Regulatory Capital .................. 12.47% 13.28% 13.65%
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<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2000 1999 2000 1999
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income ............................ $ 13,073 $ 11,138 $ 37,535 $ 33,468
Interest expense ........................... 6,007 5,095 17,001 14,574
-------- -------- -------- --------
NET INTEREST INCOME ...................... 7,066 6,043 20,534 18,894
Provision (credit) for loan and lease losses 190 91 300 (54)
-------- -------- -------- --------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN AND LEASE LOSSES .............. 6,876 5,952 20,234 18,948
Non-interest income ........................ 2,497 2,630 7,579 6,124
Non-interest expense ....................... 5,950 5,198 17,828 15,680
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES ............... 3,423 3,384 9,985 9,392
Income tax expense ......................... 1,249 1,114 3,635 3,307
-------- -------- -------- --------
NET INCOME ............................... $ 2,174 $ 2,270 $ 6,350 $ 6,085
======== ======== ======== ========
Basic earnings per share ................... $ .92 $ .96 $ 2.68 $ 2.56
======== ======== ======== ========
Diluted earnings per share ................. $ .91 $ .96 $ 2.67 $ 2.56
======== ======== ======== ========
Return on average assets ................... 1.26% 1.42% 1.27% 1.30%
Return on average equity ................... 13.63% 14.87% 13.82% 13.86%
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