EX-99 3 e99f8k11-1843.txt PRESS RELEASE NEWS RELEASE HCB Bancshares, Inc. Contact: Charles T. Black Telephone: 870.836.6841 Facsimile: 870.836.2122 FOR IMMEDIATE RELEASE --------------------- HCB BANCSHARES, INC. RELEASES 09-30-03 EARNINGS CAMDEN, ARKANSAS (November 3, 2003) HCB Bancshares, Inc. (the "Company") reported net income of approximately $122,000, or 9 cents per basic share and 8 cents per diluted share, for the quarter ended September 30, 2003, according to Charles T. Black, President and Chief Executive Officer. Net income for the same quarter last year was $725,000, or 54 cents per basic share and 51 cents per diluted share. Black said that one primary reason for the decline from the previous year was a one-time pretax gain of $743,000 on the sale of the Company's Monticello, Arkansas branch in July 2002. In addition, net interest income decreased from $1,711,000 for the quarter ended September 30, 2002 to $1,399,000 for the quarter ended September 30, 2003, a reduction of $312,000. The general weakness in the economy was a factor in HCBB's increasing its provision for loan losses by $30,000 during that period. Non-interest expense for the quarter ended September 30, 2003 decreased by $106,000 compared to the same quarter the prior year. Salaries and employee benefits decreased $73,000, occupancy expense decreased $21,000, advertising decreased $28,000, other expenses decreased $57,000, data processing expense increased $9,000 and professional fees increased $64,000. The $64,000 increase in professional fees relates primarily to consulting and legal fees associated with the Company's decision to retain a consulting firm to review all available alternatives to maximize shareholder value. Excluding those fees, total professional fees would have decreased $36,000 for the period. In addition, Black stated that in its efforts to reduce overhead, the Company has reduced its full time equivalent employees from 93 to 73 since September 2002. HCB Bancshares, Inc. is the parent company of HEARTLAND Community Bank, headquartered in Camden, with HEARTLAND community banking offices in Bryant, Camden, Fordyce, and Sheridan, Arkansas. When used in this News Release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. HCB BANCSHARES, INC. Summary of Financial Highlights CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands) September 30, June 30, 2003 2003 (Unaudited) ASSETS Cash and cash equivalents $ 8,980 $ 7,207 Investment securities 124,225 129,960 Loans 96,730 100,780 Other assets 12,163 13,078 ------------- ------------- Total Assets $ 242,098 $ 251,025 ------------- ------------- LIABILITIES Deposits $ 145,878 $ 151,957 Borrowed money 67,264 69,069 Other liabilities 1,933 1,544 ------------- ------------- Total Liabilities 215,075 222,570 ------------- ------------- Total Stockholders' Equity 27,023 28,455 ------------- ------------- Total Liabilities and Stockholders' Equity $ 242,098 $ 251,025 ------------- -------------
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended (Dollars in thousands except September 30, per share data) 2003 2002 Interest income $ 3,185 $ 3,972 Interest expense 1,786 2,261 ------ ------ Net interest income 1,399 1,711 Provision for loan losses 120 90 ------ ------ Net interest income after provision for loan losses 1,279 1,621 Total noninterest income 432 1,128 Total noninterest expense 1,647 1,753 ------ ------ Income before federal income tax provision 64 996 Income tax (benefit) provision (58) 271 ------ ------ Net income $ 122 $ 725 ------ ------ Basic earnings per share $ 0.09 $ 0.54 ------ ------ Diluted earnings per share $ 0.08 $ 0.51 ------ ------