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NEWS RELEASE
October 24, 2000
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KANKAKEE BANCORP, INC.
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310 South Schuyler Avenue
P.O. Box 3 (815) 937-4440
Kankakee, IL 60901-0003 Fax (815) 937-3674
For more information contact:
William Cheffer, Chairman, President and CEO
Michael A. Stanfa, Executive Vice President For Immediate Release
Ronald J. Walters, Vice President and Treasurer
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KANKAKEE BANCORP ANNOUNCES THIRD QUARTER EARNINGS AND
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PAYMENT OF QUARTERLY DIVIDEND
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Kankakee, Illinois.....(October 24, 2000) Kankakee Bancorp, Inc. (AMEX:KNK),
today released the financial results for the quarter ended September 30, 2000.
The Company reported net income of $608,000 for the quarter compared to $385,000
for the comparable 1999 quarter. Basic earnings per share were $.48 for the
quarter ended September 30, 2000 compared to $.29 for the 1999 period. Diluted
earnings per share were $.47 for the quarter ended September 30, 2000 compared
to $.28 for the comparable 1999 period. The increase in diluted earnings per
share was 67.9%.
According to William Cheffer, Chairman, President and CEO of Kankakee
Bancorp, Inc., "During 2000 the Company has worked hard to aggressively grow our
asset base and has successfully continued our shift of assets from cash and
securities into loans. The results include increases in net earning assets, net
interest margin, net income and the return on equity. We believe our activities
during the first nine months of 2000 will provide continued positive results for
the balance of 2000 and into 2001."
Quarterly Results
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During the third quarter of 2000, net interest income before provision for
losses on loans was $3.2 million, or $302,000 (10.3%) more than for the same
period in 1999. The annualized return on assets for the third quarter of 2000
was .55% compared to .38% for the third quarter of 1999.
During the third quarter of 2000, the provision for losses on loans was
$20,000. There was
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no provision for losses on loans during the third quarter of 1999. During the
second and third quarters of 2000, the Company has had substantial growth in net
loans, which, in conjunction with management's review of the portfolio,
indicated the need for a moderate amount of additional reserves.
Other income increased by $58,000, or 9.5%, from $605,000 for the third
quarter of 1999 to $663,000 for the third quarter of 2000. This was due to
increases of $63,000 in fee income, $12,000 in the gain on the sale of
securities available-for-sale and $22,000 in gain on sale of loans held for
sale. The $63,000 increase in fee income was due to growth in the number of
checking accounts resulting in additional fees related to such accounts. These
increases were partially offset by decreases of $10,000 in insurance commissions
and $29,000 in other income.
General and administrative expenses for the third quarter of 2000 were $3.0
million, or approximately the same as those for the third quarter of 1999.
There were increases of $66,000 (4.4%) in compensation and benefits, $85,000
(2,275.4%) in the provision for losses on foreclosed assets, and $1,000 (0.3%)
in furniture and equipment expenses. These increases were substantially offset
by decreases of $23,000 (56.4%) in federal insurance premiums, $22,000 (19.8%)
in advertising, $68,000 (12.7%) in other general and administrative expense,
$12,000 (4.1%) in occupancy expense, $16,000 (14.5%) in telephone and postage
and $7,000 (6.9%) in data processing expense.
Nine Month Results
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Net income for the nine months ended September 30, 2000 was $1.9 million, or
$611,000 (48.2%) more than net income for the same period in 1999. Basic
earnings per share were $1.49 and $.95 for the nine-month periods ended
September 30, 2000 and 1999, respectively. Diluted earnings per share were
$1.45 and $.90, respectively, for the same periods. The increase in diluted
earnings per share was 61.1%. Net interest income was $9.6 million for the nine
month period of 2000, compared to $8.6 million for the 1999 period, an increase
of $978,000 or 11.4%. The net
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interest margin for the nine months ended September 30, 2000 was 3.28% compared
to 3.05% for the same period in 1999. The annualized return on assets for the
first nine months of 2000 was .60%, compared to .41% for the first nine months
of 1999.
Other income decreased by $165,000, or 8.2%, from $2.0 million for the first
nine months of 1999, to $1.9 million for the first nine months of 2000.
Decreases of $192,000 in other income, $54,000 in fee income and $1,000 in gain
on sale of securities available-for-sale were partially offset by increases of
$67,000 in insurance commissions, $3,000 in gain on sale of real estate held for
sale, $1,000 in gain on sale of loans and $12,000 in gain on sale of office-
related property. The decrease in fee income was due to a positive adjustment
in the carrying value of originated loan servicing rights during the first nine
months of 1999 which did not recur in the first nine months of 2000. The
$192,000 decrease in other income resulted from the absence of rental income on
real estate owned during 2000, due to the disposal during the third quarter of
1999 of the property for which rents had been received.
General and administrative expenses for the first nine months of 2000
decreased by $145,000, or 1.7%, to $8.6 million from $8.7 million for the first
nine months of 1999. There were decreases of $142,000 (9.3%) in other general
and administrative expense, $72,000 (57.0%) in federal insurance premiums,
$41,000 (13.8%) in data processing services, $56,000 (19.2%) in advertising,
$12,000 (1.5%) in occupancy expense, and $13,000 (4.2%) in the amortization of
intangible assets. The decreases were partially offset by increases of $109,000
(2.4%) in compensation and benefits and $88,000 (266.1%) in provision for losses
on repossessed assets.
The Company's total assets were $446.5 million at September 30, 2000, an
increase of $41.8 million, or 10.3%, from total assets of $404.7 million at
December 31, 1999. An increase of $55.9 million in net loans was partially
offset by decreases of $8.5 million in cash and cash equivalents and $4.5
million in investment securities available-for-sale.
Stockholders' equity totaled $37.9 million at September 30, 2000, reflecting
an increase of $1.6
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million compared to December 31, 1999. The increase was the result of net
income, the exercise of stock options during the nine-month period and a
decrease in the unrealized losses on securities available-for-sale. These
increases were partially offset by common stock repurchases and dividend
payments. Equity per share of common stock increased by $.92, to $30.07 at
September 30, 2000 from $29.15 at December 31, 1999. At September 30, 2000, the
capital ratios of Kankakee Federal Savings Bank, the Company's wholly-owned
subsidiary, continued to be in excess of regulatory requirements.
The annualized return on stockholders' equity was 6.8% for the nine months
ended September 30, 2000 compared to 4.4% for the comparable 1999 period.
Stock Repurchase Programs and Stock Options
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On January 11, 2000, the Company's Board of Directors approved the repurchase
of up to 90,000 shares of the Company's common stock during the period from
January 11, 2000, through January 31, 2001. During the quarter ended September
30, 2000, the Company repurchased 18,300 shares of common stock at a total cost
of $402,000. During the first nine months of 2000, the Company repurchased
42,300 shares of common stock at a total cost of $938,000. Through September
30, 2000, a total of $12.7 million had been used to repurchase 601,307 shares of
common stock under repurchase programs. Subsequent to September 30, 2000 and
through October 24, 2000, no additional shares of common stock were repurchased.
Options on 1,400 shares of common stock were exercised during the third
quarter of 2000. As of September 30, 2000, a total of 491,442 shares of common
stock were held as treasury stock. Between October 1, 2000 and October 24, 2000,
options on 1,300 shares of common stock were exercised. Through October 24,
2000, the Company had received no additional notification of the intention of
option holders to exercise options.
Kankakee Bancorp, Inc. Announces a Fourth Quarter Dividend
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Kankakee Bancorp, Inc., also announced today that on October 10, 2000, the
Board of
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Directors declared a cash dividend of twelve cents a share for the fourth
quarter of 2000. The dividend will be paid on December 1, 2000 to stockholders
of record on November 15, 2000. It is the twenty-fourth consecutive quarterly
dividend paid by the Company since the dividend program was instituted on March
1, 1995.
Kankakee Bancorp, Inc., and Kankakee Federal Savings Bank, are headquartered
in Kankakee, Illinois, which is 60 miles directly south of downtown Chicago. In
addition to its main office, the Bank operates fourteen offices in the following
Illinois communities: Ashkum, Bourbonnais, Bradley, Braidwood, Champaign, Coal
City (2), Diamond, Dwight, Herscher, Hoopeston, Manteno, Momence and Urbana.
# # #
Financial Highlights
Condensed Consolidated Statements of Income
Attached
This release may contain forward looking statements. Forward looking statements
are identifiable by the inclusion of such qualifications as expects, intends,
believes, may, likely or other indications that the particular statements are
not based upon facts but are rather based upon the Company's beliefs as of the
date of this release. Actual events and results may differ significantly from
those described in such forward looking statements, due to changes in the
economy, interest rates or other factors. For additional information about
these factors, please review our filings with the Securities and Exchange
Commission.
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KANKAKEE BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
(Unaudited)
Three Months Ended September 30,
2000 1999
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<S> <C> <C>
Total interest income $7,894 $6,738
Total interest expense 4,660 3,805
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Net interest income 3,234 2,933
Provision for losses on loans 20 -
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Net interest income after
provision for losses on loans 3,214 2,933
Other income:
Net gain on sales of assets 17 (17)
Fee income 527 464
Other 120 158
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Total other income 664 605
Other expenses:
General and administrative 2,969 2,964
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Income before income taxes 909 574
Income tax expense 301 189
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Net income $ 608 $ 385
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Net income $ 608 $ 385
Other comprehensive income:
Unrealized gains (losses) on available-for-sale
securities, net of related income taxes 519 (218)
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Comprehensive income $1,127 167
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Basic earnings per share $ 0.48 $ 0.29
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Diluted earnings per share $ 0.47 $ 0.28
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Selected operating ratios (annualized):
Net interest margin (ratio of net interest
income to average interest-earning assets) 3.13% 3.13%
Return on assets (ratio of net income to
average total assets) 0.55% 0.38%
Return on equity (ratio of net income
to average equity) 6.42% 4.03%
</TABLE>
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KANKAKEE BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
(Unaudited)
Nine Months Ended September 30,
2000 1999
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<S> <C> <C>
Total interest income $22,092 $20,129
Total interest expense 12,513 11,527
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Net interest income 9,579 8,602
Provision for losses on loans 20 -
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Net interest income after
provision for losses on loans 9,559 8,602
Other income:
Net gain on sales of assets 44 29
Fee income 1,405 1,458
Other 408 534
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Total other income 1,857 2,021
Other expenses:
General and administrative 8,592 8,737
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Income before income taxes 2,824 1,886
Income tax expense 948 620
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Net income $ 1,876 $ 1,266
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Net income $ 1,876 $ 1,266
Other comprehensive income:
Unrealized gains (losses) on available-for-sale
securities, net of related income taxes 421 (967)
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Comprehensive income $ 2,297 $ 299
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Basic earnings per share $ 1.49 $ 0.95
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Diluted earnings per share $ 1.45 $ 0.90
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Selected operating ratios (annualized):
Net interest margin (ratio of net interest
income to average interest-earning assets) 3.28% 3.05%
Return on assets (ratio of net income to
average total assets) 0.60% 0.41%
Return on equity (ratio of net income
to average equity) 6.82% 4.38%
</TABLE>
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KANKAKEE BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
2000 1999
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<S> <C> <C>
Selected Financial Condition Data:
Total assets $ 446,479 $ 404,718
Net loans, including loans held for sale 326,271 270,360
Allowance for losses on loans 2,140 2,171
Mortgage-backed securities 84 109
Mortgage-backed securities - available-for-sale 17,022 17,491
Investment securities, including certificates of deposit 452 356
Investment securities-available-for-sale 60,653 65,132
Deposits 379,639 354,977
Total borrowings 27,000 11,200
Unrealized gains (losses) on securities available-
for-sale, net of related income taxes (675) (1,095)
Stockholders' equity 37,851 36,248
Shares outstanding 1,258,558 1,243,383
Stockholders' equity per share $ 30.07 $ 29.15
Selected asset quality ratios:
Non-performing assets to total assets 0.41% 0.69%
Allowance for losses on loans to non-performing loans 243.18% 124.20%
Classified assets to total assets 1.39% 1.20%
Allowance for losses on loans to classified assets 34.39% 44.84%
Non-performing asset analysis:
Non-accrual loans $ 587
Loans past due 90 days and accruing 293
Real estate owned and repossessed assets 519
Restructured Troubled Debt 445
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Total $ 1,844
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Net loan charge-offs for quarter $ 26
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Three Months
Ended
09/30/00
(Unaudited)
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Financial condition averages:
Total assets $ 439,764
Earning assets 409,848
Net loans, including loans held for sale 316,328
Stockholders' equity 37,569
Deposits 375,979
Borrowings 23,750
Average outstanding shares, including equivalents 1,302,037
</TABLE>
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