In the news release, "St. Joseph Capital Corporation Announces Third Quarter Results and Merger With Old National Bancorp," issued earlier today by St. Joseph Capital Corporation (NASDAQ: SJOE), we are advised by the company that the years for the first financial table, "Consolidated Statements of Operations (Unaudited)," should read:
Three Months Ended Nine Months Ended ------------------ ------------------ Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2006 2005 2006 2005
rather than:
Three Months Ended Nine Months Ended ------------------ ------------------ Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2005 2006 2005 2006
as originally issued. Complete corrected text and tables follow:
St. Joseph Capital Corporation Announces Third Quarter Results and Merger With Old National Bancorp
MISHAWAKA, IN -- October 27, 2006 -- The chairman, president and chief executive officer of St. Joseph Capital Corporation (NASDAQ: SJOE), John W. Rosenthal, Sr., today announced that the Company's consolidated net income for the three month period ended September 30, 2006, was $707,000, a decrease of 12% compared to the same quarter a year ago. While third quarter earnings decreased from the same quarter a year ago, they increased by $125,000 or 17.7% compared to the second quarter of 2006. Earnings per common share (EPS) for the three months ended September 30, 2006 decreased to $0.40 basic and $0.38 fully-diluted, compared to $0.46 basic and $0.43 fully-diluted EPS for the three months ended September 30, 2005.
Total assets as of September 30, 2006 reached $477.3 million, an increase of $26.6 million or 5.6% compared to September 30, 2005. Loan growth during the third quarter remained strong, increasing by $8.7 million or 2.4% over last quarter and $27.1 million, or 7.6% from a year ago. The attached financial statements provide additional information and performance measurements.
In addition to disclosing third quarter results, Chairman Rosenthal announced that a quarterly dividend of $0.06 per common share would be paid on December 15, 2006 to shareholders of record on December 1, 2006.
Earlier this week, St. Joseph Capital Corporation announced its intention to merge with Old National Bancorp (NYSE: ONB). Old National has signed a definitive agreement to acquire all of the common stock of SJOE for $40.00 per share in an all cash transaction. The transaction is scheduled to close in the first quarter of 2007 pending regulatory and shareholder approval. A special meeting of shareholders to approve the agreement will be held in the first quarter of 2007.
St. Joseph Capital Corporation is a bank holding company whose headquarters are located in Mishawaka, Indiana. Its primary operating subsidiary, St. Joseph Capital Bank, provides a broad array of banking services to businesses and individuals in the Michiana area. St. Joseph Capital Bank employs numerous delivery channels for their financial services including a unique courier service and electronic banking accessed via their website, www.sjcb.com. St. Joseph Capital Bank is a member of the Federal Deposit Insurance Corporation.
This news release is believed accurate as of the date it was issued. However, it may become outdated over time, and should not be relied on as factually correct after its issue date.
SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; unexpected events involving the proposed merger with Old National Bancorp; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by St. Joseph Capital Corporation with the Securities and Exchange Commission. St. Joseph Capital Corporation undertakes no obligation to update or clarify forward- looking statements, whether as a result of new information, future events or otherwise.
ST. JOSEPH CAPITAL CORPORATION
------------------------------
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
------------------ ------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Interest income
Loans, including fees $ 5,974 $ 4,775 $ 17,034 $ 12,885
Securities and other
interest income 907 916 2,645 2,789
-------- -------- -------- --------
6,881 5,691 19,679 15,674
Interest expense
Deposits 3,822 2,341 10,175 5,997
Securities sold under
agreements to repurchase
and other borrowings 873 766 2,741 2,023
-------- -------- -------- --------
4,695 3,107 12,916 8,020
-------- -------- -------- --------
Net interest income 2,186 2,584 6,763 7,654
Provision for loan losses (317) - (317) -
-------- -------- -------- --------
Net interest income after provision
for loan losses 2,503 2,584 7,080 7,654
Noninterest income
Service charges on deposit
accounts 118 97 310 320
Other noninterest income 136 135 472 407
-------- -------- -------- --------
254 232 782 727
Noninterest expense
Employee compensation and
benefits 1,255 1,204 3,789 3,478
Stock option expense 59 35 169 105
Occupancy and equipment
expense 134 135 409 381
Fraud Loss - - 52 -
Other expense 366 371 1,114 1,211
-------- -------- -------- --------
1,814 1,745 5,533 5,175
-------- -------- -------- --------
Income before income taxes 943 1,071 2,329 3,206
Income tax expense 236 268 529 792
-------- -------- -------- --------
Net income $ 707 $ 803 $ 1,800 $ 2,414
======== ======== ======== ========
Basic income per common share $ .40 $ .46 $ 1.02 $ 1.39
======== ======== ======== ========
Diluted income per common share $ .38 $ .43 $ .97 $ 1.29
======== ======== ======== ========
ST. JOSEPH CAPITAL CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
September 30, September 30,
2006 2005
ASSETS
Total cash and cash equivalents $ 22,274 $ 18,936
Securities available for sale 79,363 84,718
Federal Home Loan Bank (FHLB) stock 3,227 3,152
Loans receivable 358,103 330,972
Less: Allowance for loan losses 3,178 3,578
--------- ---------
Loans receivable, net 354,925 327,394
Premises and equipment, net 3,168 3,294
Interest receivable and other assets 14,366 13,273
--------- ---------
Total assets $ 477,323 $ 450,767
========= =========
LIABILITIES AND SHAREHOLDERS EQUITY
Liabilities
Total deposits $ 379,706 $ 332,876
Federal fund purchased - 15,400
Securities sold under agreements to
repurchase 12,240 6,120
FHLB advances 43,000 57,000
Subordinated debentures 8,000 8,000
Interest payable and other liabilities 3,083 2,834
--------- ---------
Total liabilities 446,029 422,230
Total shareholders equity 31,294 28,537
--------- ---------
Total liabilities and shareholders equity $ 477,323 $ 450,767
========= =========
St. Joseph Capital Corporation
Selected Quarterly Consolidated Financial Data (Unaudited)
(Dollars in thousands, except per share data)
Three Three Three Three Three
Months Months Months Months Months
September June March December September
30, 30, 31, 31, 30,
2006 2006 2006 2005 2005
--------- --------- --------- --------- ---------
EARNINGS
Net interest
income $ 2,186 $ 2,206 $ 2,371 $ 2,556 $ 2,584
Provision for loan
loss (317) - - - -
Noninterest income 254 282 246 229 232
Noninterest
expense 1,814 1,752 1,967 1,672 1,745
Net income $ 707 $ 582 $ 511 $ 806 $ 803
Basic earnings per
share $ 0.40 $ 0.33 $ 0.29 $ 0.46 $ 0.46
Diluted earnings
per share $ 0.38 $ 0.31 $ 0.28 $ 0.43 $ 0.43
Average shares
outstanding 1,784,304 1,768,726 1,758,269 1,749,120 1,746,401
Average diluted
shares outstanding 1,860,425 1,856,690 1,854,894 1,855,800 1,875,652
PERFORMANCE RATIOS
Return on average
assets* 0.60% 0.50% 0.46% 0.71% 0.72%
Return on average
common equity * 9.44% 7.92% 7.24% 11.49% 11.58%
Net interest
margin (fully-tax
equivalent)* 2.07% 2.14% 2.37% 2.53% 2.60%
Efficiency ratio 74.34% 70.42% 75.16% 60.04% 61.97%
CAPITAL
Average equity to
average assets 6.3% 6.4% 6.3% 6.2% 6.2%
Tier 1 leverage
capital ratio 8.7% 8.5% 8.6% 8.5% 8.4%
Tier 1 risk-based
capital ratio 11.1% 10.8% 10.9% 10.7% 10.8%
Total risk-based
capital ratio 12.0% 11.8% 11.9% 11.7% 11.8%
Book value per share 17.46 16.54 16.63 16.53 16.32
ASSET QUALITY
Net charge-offs $ 83 $ - $ - $ - $ -
Net charge-offs to
average loans * 0.02% 0.00% 0.00% 0.00% 0.00%
Allowance for loan
losses $ 3,178 $ 3,578 $ 3,578 $ 3,578 $ 3,578
Allowance for loan
losses to total
loans 0.89% 1.02% 1.03% 1.06% 1.08%
Nonperforming
loans $ 12 $ 83 $ - $ - $ -
Other real estate
owned $ - $ - $ - $ - $ -
Nonperforming
loans to total
loans 0.00% 0.02% 0.00% 0.00% 0.00%
Nonperforming assets
to total assets 0.00% 0.02% 0.00% 0.00% 0.00%
END OF PERIOD BALANCES
Total assets $ 477,323 $ 490,906 $ 460,780 $ 481,128 $ 450,767
Total earning
assets 441,696 454,296 431,952 425,934 415,748
Total loans 358,103 349,400 345,953 338,705 330,972
Total deposits 379,706 376,251 330,081 343,398 332,876
Stockholders' equity 31,294 29,440 29,596 28,941 28,537
AVERAGE BALANCES
Total assets $ 468,809 $ 463,556 $ 451,645 $ 447,615 $ 440,751
Total earning
assets 440,563 436,081 425,312 419,884 413,442
Total loans 351,609 347,900 338,723 331,579 317,514
Total deposits 364,357 348,202 343,345 346,684 337,573
Stockholders
equity 29,727 29,483 28,608 27,819 27,519
* annualized for quarterly data
Contacts:
John Rosenthal
574-273-9700
Email Contact
Mark Secor
800-890-2798
Email Contact
Fax: 574-243-9670