-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vw8sInWoDF38ODeSaR7cFOx87H4T8raTI2d6rrprG5x+P/KxugujRbwknUZEM2U/ NMecK7+Ow6BFGUrMaM9s7w== 0000930661-02-002466.txt : 20020722 0000930661-02-002466.hdr.sgml : 20020722 20020722124052 ACCESSION NUMBER: 0000930661-02-002466 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20020722 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON MUTUAL INC CENTRAL INDEX KEY: 0000933136 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 911653725 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: 1934 Act SEC FILE NUMBER: 001-14667 FILM NUMBER: 02707573 BUSINESS ADDRESS: STREET 1: 1201 THIRD AVE STREET 2: STE 1500 CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2064612000 MAIL ADDRESS: STREET 1: 1201 THIRD AVE STREET 2: SUITE 1500 CITY: SEATTLE STATE: WA ZIP: 98101 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: FIRST STATE BANCORPORATION CENTRAL INDEX KEY: 0000897861 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 850366665 STATE OF INCORPORATION: NM FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 7900 JEFFERSON NE CITY: ALBUQUERQUE STATE: NM ZIP: 87109 BUSINESS PHONE: 5052417500 MAIL ADDRESS: STREET 1: 7900 JEFFERSON NE CITY: ALBUQUERQUE STATE: NM ZIP: 87190 425 1 d425.txt 425 FILING PURSUANT TO RULE 425 OF THE SECURITIES ACT OF 1933, AS AMENDED FILER: FIRST STATE BANCORPORATION SUBJECT COMPANY: FIRST COMMUNITY INDUSTRIAL BANK, A SUBSIDIARY OF WASHINGTON MUTUAL, INC. REGISTRATION STATEMENT NO. 333-91896 [LOGO] [LETTERHEAD] NEWS RELEASE H. Patrick Dee Brian C. Reinhardt Chief Operating Officer Chief Financial Officer (505) 241-7102 (505) 241-7598 FIRST STATE REPORTS RECORD EARNINGS; ------------------------------------ LOANS INCREASE TO $605 MILLION ------------------------------ AND DEPOSITS TOP $731 MILLION ----------------------------- Albuquerque NM--July 19, 2002--First State Bancorporation (NASDAQ:FSNM) today announced second quarter 2002 earnings of $2.22 million or $0.44 per diluted share, compared to $1.96 million or $0.39 per diluted share for the second quarter of 2001, an increase of 13%. For the six months ended June 30, 2002, net income was $4.33 million or $0.85 per diluted share, compared to $3.9 million or $0.77 per diluted share for the six months ended June 30, 2001, an increase of 11%. At June 30, 2002, total assets were $883 million, loans were $605 million, and deposits were $731 million. "The first half of 2002 has been excellent for building our balance sheet in the areas that are fundamental for our continued growth. Loans are up $56 million and deposits are up $46 million since December 31, 2001. Our model of attracting core customers and providing them with the complete array of banking services continues to have momentum in our New Mexico markets," stated Michael R. Stanford, President and Chief Executive Officer. "Our pending acquisition of First Community Industrial Bank should provide us with expanded opportunities to use this model into the future in the target rich environments of Colorado and Utah," continued Stanford. First State's total assets increased 23% from $717 million at June 30, 2001, to $883 million at June 30, 2002. Included in this increase were the proceeds of $25 million of trust preferred securities issued in connection with First State's pending acquisition of First Community Industrial Bank. Total loans increased 23% from $493 million at June 30, 2001, to $605 million at June 30, 2002. Investment securities increased 8% from $157 million at June 30, 2001, to $169 million at June 30, 2002. Total deposits grew 25% from $586 million at June 30, 2001, to $731 million at June 30, 2002. Non-interest bearing deposits grew to $164 million at June 30, 2002, from $117 million at June 30, 2001, while interest bearing deposits grew to $567 million from $468 million for the same period. "We are seeing outstanding loan demand in our core areas of real estate loans to business customers and single family residential construction, which are the core balance sheet assets that spur our earnings growth," stated H. Patrick Dee, Executive Vice President and Chief Operating Officer. "Not only has the growth been excellent so far, but we believe the pipeline for continued growth the rest of the year looks very promising." Net interest income before provision for loan losses was $9.9 million for the second quarter of 2002 compared to $8.7 million for the second quarter of 2001. For the six months ended June 30, 2002 and 2001, net interest income before provision for loan losses was $19.3 million and $17.0 million, respectively. First State's net interest margin was 5.03% and 5.38% for the second quarter of 2002 and 2001, respectively. The net interest margin was 5.01% and 5.48% for the six months ended June 30, 2002 and 2001, respectively. The decrease in margin is largely due to lower interest rates resulting from the Federal Reserve Bank's rate reductions during 2001. First State's provision for loan losses was $519,000 for the second quarter of 2002, compared to $627,000 for the same quarter of 2001. First State's allowance for loan losses was 1.28% and 1.37% of total loans at June 30, 2002 and 2001, respectively. The allowance for loan losses to non-performing loans was 277% at June 30, 2002, compared to 266% at June 30, 2001. Non-performing assets equaled 0.41% of total assets at June 30, 2002, compared to 0.58% at June 30, 2001. Non-interest income for the second quarter of 2002 was $3.0 million, compared to $2.2 million for the second quarter of 2001, an increase of 35%. Non-interest income for the six months ended June 30, 2002 was $5.9 million, compared to $4.2 million for the six months ended June 30, 2001. The gains on sales of mortgage loans increased $150,000 over the second quarter of 2001, and $550,000 over the first six months of 2001. Credit card transaction fees increased $302,000 over the second quarter of 2001, and $557,000 over the first six months of 2001. Non-interest expenses were $8.7 million and $7.2 million for the quarters ended June 30, 2002 and 2001, respectively and representing an increase of $1.5 million or 21%. Included in that increase were increased salary expense from mortgage operations of $110,000 and increased credit card interchange expense of $159,000. Each of these items had corresponding increases in non-interest income. Non-interest expenses for the six months ended June 30, 2002 were $17.0 million, compared to $14.0 million for the six months ended June 30, 2001. Included in that increase were increased salary expense from mortgage operations of $325,000, increased credit card interchange expense of $270,000, and $211,000 in non-interest expenses related to the new branches opened in 2001. On Thursday, July 18, 2002, First State's Board of Directors declared a quarterly dividend of $0.10 per share. The dividend will be payable to shareholders of record on July 31, 2002, and will be paid September 4, 2002. First State Bancorporation is the only publicly traded New Mexico based commercial bank holding company (NASDAQ:FSNM). First State provides services to customers from a total of 21 locations in Albuquerque, Taos, Rio Rancho, Santa Fe, Los Lunas, Bernalillo, Placitas, Questa, Belen, Moriarty, and Pojoaque, New Mexico. On Friday, July 19, 2002, First State's stock closed at $21.99 per share.
FINANCIAL HIGHLIGHTS Second Quarter Ended Six Months Ended - -------------------- June 30, June 30, (Dollars in thousands, except per share data) 2002 2001 2002 2001 ---------------------------------------------------- Interest income $13,657 $13,967 $27,011 $27,794 Interest expense 3,787 5,267 7,704 10,838 ---------------------------------------------------- Net interest income before provision for loan losses 9,870 8,700 19,307 16,956 Provision for loan losses 519 627 1,188 1,131 ---------------------------------------------------- Net interest income after provision for loan losses 9,351 8,073 18,119 15,825 ---------------------------------------------------- Non-interest income 2,991 2,223 5,869 4,214 Non-interest expenses 8,731 7,239 16,990 13,979 Income tax expense 1,388 1,097 2,667 2,164 ---------------------------------------------------- Net income $2,223 $1,960 $4,331 $3,896 ==================================================== Basic earnings per share $ 0.45 $ 0.40 $ 0.89 $ 0.80 Diluted earnings per share $ 0.44 $ 0.39 $ 0.85 $ 0.77 Average basic shares outstanding 4,887,784 4,890,777 4,886,230 4,893,637 Average diluted shares outstanding 5,092,180 5,035,064 5,083,786 5,034,325 BALANCE SHEET HIGHLIGHTS: June 30, 2002 December 31, 2001 June 30, 2001 ------------- ----------------- ------------- Total assets $882,890 $827,921 $716,572 Loans receivable, net $597,370 $541,515 $486,354 Investment securities $168,508 $187,422 $157,462 Deposits $730,820 $685,022 $585,692 Long-term debt $33,524 $8,781 $1,076 Stockholders' equity $61,890 $58,345 $55,147 Book value per share $12.66 $11.94 $11.28 Tangible book value per share $12.58 $11.87 $11.19
FINANCIAL RATIOS: Second Quarter Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 --------------------------------------------------- ----------------- Return on average assets 1.05% 1.14% 1.04% 1.18% Return on average equity 14.61% 14.38% 14.46% 14.64% Efficiency ratio 67.89% 66.27% 67.48% 66.03% Operating expenses to average assets 4.13% 4.20% 4.10% 4.23% Net interest margin 5.03% 5.38% 5.01% 5.48% Average equity to average assets 7.20% 7.90% 7.22% 8.05% Leverage ratio (end of period) 8.56% 7.48% 8.56% 7.48% Total risk based capital ratio (end of period) 15.17% 11.14% 15.17% 11.14% NON-INTEREST INCOME: Second Quarter Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 --------------------------------------------------------------------- Service charges on deposit accounts $836,799 $719,077 $1,653,108 $1,434,883 Other banking service fees 271,901 120,788 523,385 241,958 Credit and debit card transaction fees 1,060,386 758,341 1,974,975 1,417,943 Gain on sale of mortgage loans 526,300 376,141 1,123,940 674,043 Other 296,241 248,722 594,068 445,050 --------------------------------------------------------------------- $2,991,627 $2,223,069 $5,869,476 $4,213,877 ===================================================================== NON-INTEREST EXPENSE: Second Quarter Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 --------------------------------------------------------------------- Salaries and employee benefits $3,829,520 $3,304,262 $7,710,050 $6,445,662 Occupancy 1,019,713 859,275 2,016,889 1,660,881 Data processing 501,937 328,947 890,551 654,918 Credit and debit card interchange 546,272 387,554 998,119 728,612 Equipment 665,357 492,948 1,299,037 972,074 Professional fees 157,092 135,010 357,937 258,629 Other real estate owned 26,743 56,382 83,557 182,611 Marketing 554,464 375,152 929,146 728,710 Other 1,430,151 1,299,623 2,704,574 2,346,452 --------------------------------------------------------------------- $8,731,249 $7,239,153 $16,989,860 $13,978,549 ===================================================================== AVERAGE BALANCES: Second Quarter Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 --------------------------------------------------------------------- Assets $848,283 $691,713 $836,554 $666,181 Earning assets 786,432 648,165 776,918 624,301 Loans 587,948 480,650 570,166 470,780 Investment securities 182,692 162,767 183,702 149,780 Deposits 712,350 567,867 699,837 544,521 Equity 61,045 54,662 60,414 53,655 LOANS: June 30, 2002 December 31, 2001 June 30, 2001 ----------------------- ---------------------- ---------------------- Commercial $92,999 15.4% $90,187 16.4% $84,884 17.2% Real estate - mortgage 383,410 63.3% 321,912 58.7% 306,343 62.1% Real estate - construction 98,465 16.3% 98,086 17.9% 71,018 14.4% Consumer and other 25,862 4.3% 25,557 4.6% 25,073 5.1% Mortgage loans available for sale 4,384 0.7% 12,980 2.4% 5,776 1.2% ----------------------- ---------------------- ---------------------- Total $605,120 100.0% $548,722 100.0% $493,094 100.0% ======================= ====================== ======================
DEPOSITS: June 30, 2002 December 31, 2001 June 30, 2001 ----------------------- ---------------------- ------------------------ Non-interest bearing 163,506 22.4% $135,798 19.8% $117,350 20.0% Interest bearing demand 162,801 22.3% 144,728 21.1% 115,549 19.7% Money market savings accounts 36,908 5.1% 69,452 10.1% 51,008 8.7% Regular savings 48,248 6.6% 46,219 6.8% 40,233 6.9% Certificates of deposit less than $100,000 119,737 16.4% 112,720 16.5% 119,146 20.4% Certificates of deposit greater than $100,000 199,620 27.3% 176,105 25.7% 142,406 24.3% ----------------------- ---------------------- ------------------------ Total $730,820 100.0% $685,022 100.0% $585,692 100.0% ======================= ====================== ======================== ALLOWANCE FOR LOAN LOSSES: June 30, 2002 December 31,2001 June 30, 2001 ------------- ---------------- ------------- Balance beginning of period $7,207 $6,308 $6,308 Provision for loan losses $1,188 $2,386 $1,131 Net charge-offs ($645) ($1,487) ($700) ------------------------------------------------------------- Balance end of period $7,750 $7,207 $6,739 ============================================================= Allowance for loan losses to total loans 1.28% 1.31% 1.37% Allowance for loan losses to non-performing loans 277% 290% 266% NON-PERFORMING ASSETS: June 30, 2002 December 31, 2001 June 30, 2001 ------------- ----------------- ------------- Accruing loans - 90 days past due $297 $3 $14 Non-accrual loans 2,503 $2,480 $2,518 ------------------------------------------------------------- Total non-performing loans 2,800 $2,483 $2,532 Other real estate owned 815 $272 $1,604 ------------------------------------------------------------- Total non-performing assets 3,615 $2,755 $4,136 ============================================================= Total non-performing assets to total assets 0.41% 0.33% 0.58%
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, the discussions regarding prospects of the pending acquisition of First Community Industrial Bank and loan growth include forward-looking statements. Other forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or the negative of those words or other comparable terminology. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statement. Some factors include fluctuations in interest rates, inflation, government regulations, loss of key personnel, faster or slower than anticipated growth, economic conditions, competition's responses to First State's marketing strategy, and competition in the geographic and business areas in which we conduct our operations. Other factors are described in First State's filings with the Securities and Exchange Commission. First State is under no obligation to update any forward-looking statements. First State's news releases are available through the Investor Relations section of First State's website at www.fsbnm.com. -----END PRIVACY-ENHANCED MESSAGE-----