<PAGE>
EXHIBIT 99.1
(BW)(TEXARKANA FIRST FINANCIAL)(FTF) Texarkana First Financial Corporation
Announces Results for the Third Quarter of Fiscal 2000.
PRESS RELEASE FOR IMMEDIATE RELEASE
Texarkana First Financial Corporation For Further information, contact:
P.O. Box 2950 James W. McKinney, Chairman
Texarkana, Arkansas 75504-2950 (870) 773-1103
TEXARKANA, ARKANSAS - JULY 20, 2000
STOCK LISTING: AMEX - TEXARKANA "FTF"
TEXARKANA FIRST FINANCIAL CORPORATION ANNOUNCES
RESULTS FOR THE THIRD QUARTER OF FISCAL 2000
For the quarter ended June 30, 2000, net income was $766,000, a decrease of
$38,000 or 4.7% over the same period ended June 30, 1999. For the quarters
ended June 30, 2000 and June 30, 1999, basic earnings per share was $.53 and
$.55, respectively (diluted EPS of $.51 and $.52, respectively). Return on
average assets was 1.46% and 1.64%, respectively, and return on average equity
was 11.08% and 12.11%, respectively. The efficiency ratio was 42.1% and 36.7%,
respectively. The $38,000 decrease in net income was primarily the result of
an increase of $168,000 in noninterest expense (including $144,000 in merger
related legal and professional fees), partially offset by an increase of
$108,000 in net interest income and an increase of $32,000 in noninterest
income.
For the nine months ended June 30, 2000, net income was $2,359,000, a decrease
of $58,000 or 2.4% over the same period ended June 30, 1999. For the nine
months ended June 30, 2000 and June 30, 1999, basic earnings per share was
$1.63 and $1.61, respectively (diluted EPS of $1.58 and $1.54, respectively).
Return on average assets was 1.53% and 1.66%, respectively, and return on
average equity was 11.57% and 11.97%, respectively. The efficiency ratio was
40.3% and 37.7%, respectively. The $58,000 decrease in net income was
primarily the result of an increase of $217,000 in noninterest expense
(including $144,000 in merger related legal and professional fees) and a
decrease of $144,000 in noninterest income (including a decrease of $113,000
in gain on sale of loans), partially offset by an increase of $305,000 in net
interest income.
At June 30, 2000 and September 30, 1999, total assets were $216.1 million and
$201.1 million, respectively, an increase of $14.9 million or 7.4%. Loans, net
of unearned income increased $15.3 million or 9.5% and investments (including
federal funds sold and interest bearing deposits) decreased $2.1 million or
6.3%. Deposits increased $3.6 million or 2.3% and borrowed funds increased
$10.2 million or 58.6%. Stockholders' equity was $28.1 million and $26.4
million, respectively, an increase of $1.7 million or 6.5%, primarily the
result of retained earnings. The equity to asset ratios were 13.0% and 13.1%,
respectively.
On June 26, 2000, the Corporation declared a quarterly dividend in the amount
of $.17 per share, payable July 26, 2000 to stockholders of record on July 12,
2000. On May 15, 2000, the Corporation entered into a merger agreement and
plan of reorganization with First United Bancshares, Inc., El Dorado, Arkansas
("First United").
<PAGE>
The Corporation is a unitary savings and loan holding company for First
Federal Savings and Loan Association of Texarkana, which conducts business
through its main office and five full-service branch offices in Southwest
Arkansas and Texarkana, Texas.
<PAGE>
TEXARKANA FIRST FINANCIAL CORPORATION
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS)
<TABLE>
<CAPTION>
Unaudited September 30,
June 30, 2000 1999
------------- --------------
<S> <C> <C>
ASSETS
Cash and cash equivalents
Cash & due from banks $ 2,966 $ 2,370
Interest bearing deposits in other banks 2,155 638
Federal funds sold 575 150
-------- --------
Total cash and cash equivalents 5,696 3,158
Investment securities available-for-sale 27,243 31,457
Mortgage-backed securities held-to-maturity 267 386
Federal Home Loan Bank stock 1,459 1,252
Loans receivable, net of unearned income 176,550 161,208
Allowance for loan losses (982) (995)
Accrued interest receivable 1,627 1,311
Foreclosed real estate, net 171 -
Premises and equipment, net 3,355 2,691
Other assets 648 679
-------- --------
Total assets $216,034 $201,147
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $157,609 $153,992
Advances from borrowers for taxes & insurance 1,748 2,151
Borrowed funds 27,750 17,500
Accrued income tax 110 310
Accrued expenses and other liabilities 764 816
-------- --------
Total liabilities 187,981 174,769
-------- --------
Commitments and contingencies - -
-------- --------
Common stock, $0.01 par value;
15,000,000 shares authorized;
1,983,750 shares issued 20 20
Additional paid-in capital 13,800 13,742
Common stock acquired by stock benefit plans (1,123) (1,448)
Treasury stock, at cost, 444,408 shares and
444,408 shares September 30, 1999 (9,210) (9,210)
Retained earnings-substantially restricted 25,320 23,713
Accumulated other comprehensive income (754) (439)
-------- --------
Total stockholders' equity 28,053 26,378
-------- --------
Total liabilities and stockholders' equity $216,034 $201,147
======== ========
</TABLE>
<PAGE>
TEXARKANA FIRST FINANCIAL CORPORATION
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------- -------------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
Loans
First mortgage loans $ 3,181 $ 2,820 $ 9,102 $ 8,576
Consumer and other loans 471 364 1,337 1,085
Investment securities 439 423 1,246 1,123
Mortgage-backed and related securities 86 101 258 325
-------- -------- -------- --------
Total Interest Income 4,177 3,708 11,943 11,109
-------- -------- -------- --------
Interest Expense
Deposits 1,917 1,818 5,536 5,601
Borrowed funds 406 144 961 367
-------- -------- -------- --------
Total Interest Expense 2,323 1,962 6,497 5,988
-------- -------- -------- --------
Net Interest Income 1,854 1,746 5,446 5,141
Provision for loan losses - - - -
-------- -------- -------- --------
Net Interest Income After Provision 1,854 1,746 5,446 5,141
-------- -------- -------- --------
Noninterest Income
Gain on sale of investments, net - - - 11
Gain on sale of loans, net 17 20 18 131
Loan origination and commitment fees 124 96 264 311
Other 160 153 459 432
-------- -------- -------- --------
Total Noninterest Income 301 269 741 885
-------- -------- -------- --------
Noninterest Expense
Compensation and benefits 524 523 1,620 1,615
Occupancy and equipment 63 55 179 169
SAIF deposit insurance premium 8 22 39 67
Other 313 140 653 423
-------- -------- -------- --------
Total Noninterest Expense 908 740 2,491 2,274
-------- -------- -------- --------
Income Before Income Taxes 1,247 1,275 3,696 3,752
Income tax expense 481 471 1,337 1,335
-------- -------- -------- --------
Net income $ 766 $ 804 $ 2,359 $ 2,417
======== ======== ======== ========
Other comprehensive income, net of tax:
Unrealized gain (loss) on securities 55 (276) (315) (450)
Reclassification of gain included in net
income - - - (6)
-------- -------- -------- --------
Comprehensive income $ 821 $ 528 $ 2,044 $ 1,961
-------- -------- -------- --------
Earnings per common share - basic $ 0.528 $ 0.548 $ 1.629 $ 1.608
Earnings per common share - diluted $ 0.511 $ 0.524 $ 1.583 $ 1.539
Weighted average shares - basic 1,452 1,467 1,447 1,504
Weighted average shares - diluted 1,498 1,536 1,490 1,571
</TABLE>
<PAGE>
FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS CONTAINED IN THIS NEWS RELEASE MAY NOT BE BASED ON
HISTORICAL FACTS AND ARE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF
SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS
MAY BE IDENTIFIED BY THEIR REFERENCE TO A FUTURE PERIOD OR PERIODS OR BY THE
USE OF FORWARD-LOOKING TERMINOLOGY, SUCH AS "ANTICIPATE," "BELIEVE,"
"ESTIMATE," "EXPECT," "MAY," "MIGHT," "WILL," "WOULD," OR "INTEND." THESE
FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, THOSE RELATING TO THE
BENEFITS, PROSPECTS AND COMPLETION OF THE MERGER. WE CAUTION YOU NOT TO PLACE
UNDUE RELIANCE ON THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS
RELEASE IN THAT ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE INDICATED IN
SUCH FORWARD-LOOKING STATEMENTS, DUE TO A VARIETY OF FACTORS. THOSE FACTORS
INCLUDE, BUT ARE NOT LIMITED TO, FAILURE OR DELAY IN OBTAINING REQUIRED
SHAREHOLDER OR REGULATORY APPROVALS, THE COMPANIES' FAILURE TO CONSUMMATE THE
MERGER, INABILITY TO SUCCESSFULLY INTEGRATE THE COMPANIES AFTER THE MERGER,
MATERIALLY ADVERSE CHANGES IN THE COMPANIES' FINANCIAL CONDITIONS, CHANGES IN
ECONOMIC CONDITIONS AND GOVERNMENT FISCAL AND MONETARY POLICIES, FLUCTUATIONS
IN PREVAILING INTEREST RATES, THE ABILITY OF TEXARKANA FIRST FINANCIAL TO
COMPETE WITH OTHER FINANCIAL SERVICES COMPANIES, CHANGES IN TEXARKANA FIRST
FINANCIAL'S OPERATING OR EXPANSION STRATEGY, GEOGRAPHIC CONCENTRATION OF
TEXARKANA FIRST FINANCIAL'S ASSETS, THE ABILITY OF TEXARKANA FIRST FINANCIAL
TO ATTRACT, TRAIN, AND RETAIN QUALIFIED PERSONNEL, THE ABILITY OF TEXARKANA
FIRST FINANCIAL TO EFFECTIVELY MARKET ITS SERVICES AND PRODUCTS, TEXARKANA
FIRST FINANCIAL'S DEPENDENCE ON EXISTING SOURCES OF FUNDING, AND OTHER FACTORS
GENERALLY UNDERSTOOD TO AFFECT THE FINANCIAL RESULTS OF FINANCIAL SERVICE
COMPANIES, AND OTHER RISKS DETAILED FROM TIME TO TIME IN TEXARKANA FIRST
FINANCIAL'S NEWS RELEASES AND FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION. WE UNDERTAKE NO OBLIGATION TO UPDATE THESE FORWARD-LOOKING
STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES THAT OCCUR AFTER THE DATE ON
WHICH SUCH STATEMENTS WERE MADE.
This news release may be deemed to be solicitation material with respect to
the proposed merger of Texarkana First Financial and First United. Texarkana
First Financial and its directors may be deemed to be participants in the
solicitation of proxies with respect to a shareholders' meeting to be held in
connection with such merger. Information concerning the participants in the
solicitation is set forth in the definitive proxy statement filed by Texarkana
First Financial with the Securities and Exchange Commission on December 27,
1999 for its 2000 annual meeting of shareholders. In connection with the
proposed merger, Texarkana First Financial will file a proxy statement with
the Securities and Exchange Commission. Shareholders of Texarkana First
Financial are encouraged to read the proxy statement, because it will contain
important information about the merger, Texarkana First Financial and First
United. After the proxy statement is filed with the SEC, it will be provided
to the Texarkana First Financial shareholders in connection with their
shareholders' meeting and will be available free of charge, both on the SEC's
web site (www.sec.gov) and from Texarkana First Financial's corporate
secretary.
CONTACT: Texarkana First Financial Corporation, Texarkana
James McKinney, 870/773-1103
[email protected]
INDUSTRY KEYWORD: BANKING
