From the Vault: Area banks report 4Q, year-end results

While bank profits continue to slide, Kansas City-based UMB Financial Corp. posted 32 percent growth in both the fourth quarter and the full year.

The bank had $20.2 million in fourth-quarter net income, or 50 cents per share - up 32 percent from $15.3 million, or 37 cents per share, in fourth-quarter 2007.

Net income also was up 32 percent for the year at $98.1 million, or $2.41 per share, compared to $74.2 million, or $1.78 per share, in 2007.

The bank's profit was boosted largely by the sale of its security transfer product and transactions related to Visa's litigation and initial public offering. The two items together added $2.5 million during the quarter and $7.3 million for the year.

"While this economic environment has been challenging for the industry, we've continued to grow our loan portfolio by sticking to our core lending principles - lend to customers we know, lend in our territory and originate our own loans," Chairman and CEO Mariner Kemper said in a news release. "Our record loan balances of $4.4 billion as of Dec. 31, 2008, are proof that this strategy is paying off, while our nonperforming loans are only 0.2 percent of total loans."

Shares (Nasdaq: UMBF) closed Jan. 28 at $42.18, compared to a 52-week range of $35.75 to $69.60.

Great Southern posts $4.7 million loss

Springfield-based Great Southern Bancorp Inc. recorded a $4.7 million loss in 2008, compared to a $29.3 million profit in 2007. The bank's losses per share were 35 cents, down from $2.15 per share a year ago.

The fourth quarter remained profitable for the company, however. Net income was $3.5 million, down 85 percent from $6.4 million in fourth-quarter 2007.

Earnings per share were 26 cents, compared to 48 cents per share in the same period a year earlier.

Net loans were down $96.4 million for the year, with declines primarily in the construction and land development sectors. Allowance for loan losses was up $3.7 million to $29.2 million.

Net charge-offs for the year were $48.5 million, compared to $6.3 million in 2007. The increase was largely due to $35 million in loans made to ANB Financial that had to be written off when the Arkansas bank failed in May.

"2008 was one of the most challenging years in our company's 86-year history," Great Southern President and CEO Joe Turner said in a news release.

Shares (Nasdaq: GSBC) closed Jan. 28 at $10.40, compared to a 52-week range of $7.03 to $21.

BancorpSouth's 2008 profit falls

BancorpSouth Inc. reported a 13 percent decline in 2008 profit after its fourth-quarter income dropped by half.

The Tupelo, Miss.-based bank had net income of $16.8 million, or 20 cents per share, for the fourth quarter. That's down 48 percent from $32.2 million, or 39 cents per share, in the same quarter in 2007.

For the year, the bank had $120.4 million in net income, or $1.45 per share, down 13 percent from $137.9 million, or $1.69 per share, the year before.

Provision for credit losses in the quarter was $17.8 million, compared to $7.8 million a year earlier.

Annualized net charge-offs were 0.57 percent of average loans and leases for the quarter, compared to 0.21 percent a year before.

The quarter's results were hurt partly by a decline in the fair value of the bank's mortgage servicing assets, according to a news release. The decline resulted in an after-tax charge of $10 million, or 12 cents per share.

Shares (NYSE: BXS) closed Jan. 28 at $20.90, compared to a 52-week range of $15.15 to $31.90.

Bank of America reports first quarterly loss in 17 years

Charlotte, N.C.-based Bank of America posted a net loss of $1.79 billion in the fourth quarter, compared to a $268 million profit in fourth-quarter 2007. The net loss applicable to shareholders was $2.39 billion, or 48 cents per share, according to a news release.

The quarter's results were driven by climbing credit costs, including additions to reserves, and large write-downs and trading losses in the capital markets businesses, the release said.

For the year, the company made a $4.01 billion profit, compared to a $14.98 billion profit in 2007. Earnings available to shareholders for the year were $2.56 billion, or 55 cents per share, down from $14.8 billion, or $3.30 per share last year.

Bank of America shares (NYSE: BAC) closed Jan. 28 at $7.39, compared to a 52-week range of $5.05 to $45.08.

Commerce quarterly earnings steady

Kansas City-based Commerce Bancshares Inc. reported fourth-quarter profit relatively unchanged from a year earlier.

Net income for the quarter was $43.8 million, nearly equal to $43.7 million a year before. Earnings were 58 cents per share, also unchanged from fourth-quarter 2007.

For the year, net income was $188.7 million, down 9 percent from $206.7 million a year earlier. Earnings were $2.48 per share, down 8 percent from $2.69 in 2007.

During the quarter, Commerce increased its loan-loss allowances by $16.6 million to $172.6 million. Net loan charge-offs for the quarter were $24.7 million, up from $18.7 million in the third quarter; about 63 percent of those losses were related to nonresidential consumer loans.

Shares (Nasdaq: CBSH) closed Jan. 28 at $37.37, compared to a 52-week range of $33.19 to $52.86.

Guaranty Bank posts $3.5M loss

Increased provision for loan losses, asset write-downs and higher Federal Deposit Insurance Corp. insurance premiums are to blame for Guaranty Federal Bancshares Inc.'s fourth-quarter and year-end losses, bank officials said. The Springfield-based bank reported a $1.89 million loss for the fourth quarter and a $3.47 million loss for 2008, compared to a $6.1 million profit in 2007. The bank posted losses per share of 72 cents for the quarter and $1.33 for the year.

During the quarter, Guaranty Bank increased its provision for loan losses by $3.4 million and saw noninterest income fall by $1.3 million, primarily due to write-downs on foreclosed assets and impairment losses in the bank's investment portfolio. Several new hires and a $166,145 increase in FDIC insurance premiums pushed noninterest expense up 10 percent.

Bank shares (Nasdaq: GFED) closed Jan. 28 at $5.25, compared to a 52-week range of $3.29 to $27.49.

Regions Bank loses $5.6B for the year

Birmingham, Ala.-based Regions Financial Corp. reported a $5.6 billion loss in 2008. The bank had a per-share loss of $8.09.

For the fourth quarter, Regions reported a net loss of $6.2 billion, or a loss of $9.01 per share. That's down from a $70.6 million profit in fourth-quarter 2007.

Earnings were largely impacted by a $6 billion noncash charge that was required after testing at the end of the quarter indicated that the fair value of Regions' banking reporting unit was less than its book value, according to a news release.

Regions participated in the U.S. Treasury's Capital Purchase Program and received $3.5 billion in exchange for preferred stock. The bank also sold or held for sale $1 billion in nonperforming assets, resulting in $479 million of losses, and increased its loan-loss provision to $1.2 billion, $354 million above net charge-offs.

Shares (NYSE: RF) closed Jan. 28 at $4.56, compared to a 52-week range of $4 to $25.84.

U.S. Bancorp reports 32% profit decline

U.S. Bancorp closed 2008 with a 32 percent decline in profit due mostly to increased credit losses, the bank reported. The Minneapolis-based bank had $2.95 billion in net income for the year, compared to $4.32 billion in 2007. Earnings per share were $1.61, down from $2.43. For the fourth quarter, net income fell 65 percent to $330 million, compared to $942 million. Earnings per share were 15 cents, down from 53 cents a year earlier.

The bank had $253 million in securities losses in the quarter. It also increased allowance for credit losses by recording $635 million of provision for credit losses in excess of net charge-offs.

Shares (NYSE: USB) closed Jan. 28 at $15.29, compared to a 52-week range of $11.80 to $42.23.[[In-content Ad]]