NATCHEZ, Miss., Jan. 23 /PRNewswire-FirstCall/ -- The Board of
Directors of Britton & Koontz Capital Corporation (Nasdaq:
BKBK, "the Company") today reported net income for the year ended
December 31, 2008, of $3.5 million, or $1.65 per basic and diluted
share, compared to $3.0 million, or $1.42 per basic and diluted
share, for 2007. Net income for the quarter ended December 31,
2008, was $865 thousand, or $.41 per basic and diluted share,
compared to $964 thousand, or $.46 per basic and diluted share, for
the fourth quarter of 2007. The returns on average assets and
equity at December 31, 2008, were .91% and 9.57%, respectively,
compared to .82% and 8.80% for 2007. Net interest income increased
18% during the fourth quarter of 2008 to $3.8 million compared to
$3.2 million in the fourth quarter of 2007. Net interest margin
increased to 3.92% from 3.68% during the same period. The quarterly
increase in net interest income was primarily due to increased
volume in earning assets, which accounted for $316 thousand of the
increase. Also, lower interest rates throughout 2008 decreased
funding costs over yields on earning assets by approximately $263
thousand. Net interest income increased 5% for the year ended
December 31, 2008, to $14.0 million compared to the same period in
2007, while net interest margin remained the same during this
period at 3.82%. The increase in net interest income for the year
ended December 31, 2008, compared to 2007, was due to higher
volumes of earning assets, primarily attributable to a $32 million
increase in the average investment securities portfolio. Average
loan volumes decreased $12 million due primarily to pay downs in
the Company's residential mortgage portfolio. Non-interest income
for the quarter and year ended December 31, 2008, was $622 thousand
and $2.8 million, respectively, compared to $964 thousand and $2.2
million, respectively, for the same periods in 2007. The decrease
for the quarter ended December 31, 2008, was primarily due to
market changes, as the fair value of the Company's investment
trading portfolio increased during the fourth quarter of 2007
contributing to gains posted during that quarter. The factors
contributing to the increase in non-interest income in 2008
compared to 2007 include higher service charges on deposit accounts
and a gain of $148 thousand on the sale of the trading portfolio
during the first quarter of 2008. Non-interest expense for the
quarter and year ended December 31, 2008, was $2.8 and $11.3
million, respectively, compared to $2.7 and $11.3 million for the
comparable periods in 2007. Increases in employee salaries and
benefits were offset by lower other real estate expense in 2008.
Since December 31, 2007, total assets increased $44.7 million to
$413 million at December 31, 2008. The change is due almost
entirely to increases in investment securities from $126 million at
December 31, 2007, to $171 million at December 31, 2008. Loans
remained relatively stable, increasing $2.2 million from December
31, 2007 to December 31, 2008. Total deposits increased $10.8
million to $257 million at December 31, 2008, compared to $246
million as of December 31, 2007. The increase in deposits was
primarily due to public funds. Deposits that the Company considers
core increased over $2 million in 2008, including an increase of
almost $4 million in non-interest bearing deposits. Throughout
2008, asset quality for the Company deteriorated slightly compared
to December 31, 2007. Non-performing assets, including non-accrual
loans, loans past due 90 days or more and other real estate,
increased from $2.1 million, or .56% of total assets, at December
31, 2007, to $5.0 million, or 1.21% of total assets, at December
31, 2008. Net charge-offs as a percentage of average loans was .34%
at December 31, 2008, compared to .15% at December 31, 2007. The
Company added $730 thousand to its allowance for probable loan
losses in 2008, which partially offset net charge-offs of $763
thousand for 2008. The $730 thousand in net charge-offs in 2008
represents an increase over 2007 of $409 thousand. The ratio of the
allowance for probable loan losses to total loans decreased
slightly to 1.06% at December 31, 2008, compared to 1.09% at
December 31, 2007. The current $2.4 million in reserve for loan
losses and the projected monthly provision of $60 thousand is
considered by management to be adequate to protect from possible
loan losses. Britton & Koontz Capital Corporation,
headquartered in Natchez, Mississippi, is the parent company of
Britton & Koontz Bank, N.A. which operates three full service
offices in Natchez, two in Vicksburg, Mississippi, and one in Baton
Rouge, Louisiana. As of December 31, 2008, the Company reported
assets of $413.1 million and equity of $39.5 million. The Company's
stock is traded on NASDAQ under the symbol BKBK and the transfer
agent is American Stock Transfer & Trust Company. Total shares
outstanding at December 31, 2008, were 2,117,966. Forward Looking
Statements This news release contains statements regarding the
projected performance of Britton & Koontz Capital and its
subsidiaries that constitute forward- looking statements within the
meaning of the Private Securities Litigation Reform Act. Statements
that are not historical or current facts, including statements
about beliefs and expectations, are forward-looking statements.
These statements often include the words "may," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates,"
"intends," "plans," "projects" or similar expressions. Actual
results may differ materially from the projections provided in this
release since such projections involve significant known and
unknown risks and uncertainties. Factors that might cause such
differences include, but are not limited to: competitive pressures
among financial institutions increasing significantly; economic
conditions, either nationally or locally, in areas in which the
Company conducts operations being less favorable than expected;
significant fluctuations in interest rates; inflation; significant
underperformance in our portfolio of outstanding loans; and
legislation or regulatory changes which adversely affect the
ability of the Company to conduct business combinations or new
operations. Forward-looking statements speak only as of the date
they are made, and the Company undertakes no obligation to update
such factors or to publicly announce the results of any revisions
to any of the forward-looking statements included herein to reflect
future events or developments. Britton & Koontz Capital
Corporation Financial Highlights (Unaudited) For the Three Months
For the Twelve Months Ended December 31, Ended December 31, 2008
2007 2008 2007 Interest income $5,648,868 $5,988,284 $22,798,555
$24,604,502 Interest expense 1,884,992 2,802,391 8,753,557
11,264,692 Net interest income 3,763,876 3,185,893 14,044,998
13,339,810 Provision for loan losses 370,000 120,000 730,000
440,000 Net interest income after provision for loan losses
3,393,876 3,065,893 13,314,998 12,899,810 Non-interest income
622,249 964,060 2,778,350 2,228,292 Non-interest expense 2,820,647
2,737,357 11,280,591 11,266,073 Income before income taxes
1,195,478 1,292,596 4,812,757 3,862,029 Income taxes 330,126
328,316 1,309,994 856,248 Net income $865,352 $964,280 $3,502,763
$3,005,781 Return on Average Assets 0.87% 1.06% 0.91% 0.82% Return
on Average Equity 9.23% 10.99% 9.57% 8.80% Diluted: Net income per
share $0.41 $0.46 $1.65 $1.42 Weighted average shares outstanding
2,117,966 2,118,872 2,117,966 2,119,566 December 31, December 31,
2008 2007 Total assets $413,076,826 $368,345,272 Cash and due from
banks 6,951,543 8,732,307 Federal funds sold - 245,192 Investment
securities 170,720,427 125,691,658 Loans, net of unearned interest
225,511,297 223,352,663 Deposits- interest bearing 206,094,593
199,088,223 Deposits-non interest bearing 51,119,827 47,305,927
Total Deposits 257,214,420 246,394,150 Short Term debt 71,717,942
40,119,330 Long Term debt 40,010,824 42,425,699 Stockholders'
equity 39,541,069 35,800,865 Book value (per share) 18.67 16.90
Total shares outstanding 2,117,966 2,117,966 DATASOURCE: Britton
& Koontz Capital Corporation CONTACT: W. Page Ogden, President
& CEO, or William M. Salters, Treasurer & CFO, of Britton
& Koontz Capital Corporation, +1-601-445-5576, fax:
+1-601-445-2481, Web site: http://www.bkbank.com/
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