Britton & Koontz Capital Corporation

500 Main Street
P O Box 1407
601-445-2481  Fax
Natchez, MS  39121
July 31,  2012
W. Page Ogden, President & CEO
William M. Salters, Treasurer & CFO


Natchez, Mississippi – The Board of Directors of Britton & Koontz Capital Corporation (OTC-QB or OTCBB: BKBK, "B&K Capital" or "the Company") today reported net income and earnings per share for the three and six month period ended June 30, 2012.  Net income for the quarter ended June 30, 2012, was $69 thousand, or $.03 per diluted share, compared to $229 thousand, or $.11 per diluted share, for the quarter ended June 30, 2011.  For the six month period ended June 30, 2012, net income and diluted earnings per share was $312 thousand and $0.15, respectively, a decrease from $805 thousand and $0.38, respectively, for the same period in 2011.

Net interest income for the three and six month periods ended June 30, 2012, decreased $618 thousand and $1.3 million, respectively, over the same period in 2011.  Approximately 60% of the decrease over the comparative periods was a result of the decreases in the volume of average earning assets of $41 million and $34 million, respectively.  Low loan demand and a poor investment environment were the primary contributors to the decrease in volumes.  Although the decline in the volume of earnings assets represents the majority of the decline in net interest income, lower interest rates were a major contributor as well, accounting for approximately 40% of the decline in net interest income.  Cash flows from higher yielding assets into lower yielding assets occurred as loans and investment securities were paid down and held as cash due to weak loan demand and the poor investment environment.  As a result, interest rate spread declined 30 and 39 basis points to 2.55% and 2.58% for the three and six month period ended June 30, 2012, respectively.  Not only did the decline in interest rate have a significant negative effect to net interest income, it also had a disproportionate effect on asset yields as compared to funding cost.  For both the three and six month comparative periods, asset yields declined 67 and 76 basis points, respectively, while funding costs declined only 37 and 36 basis points, respectively.  Interest rate margin declined 36 and 45 basis points, respectively, to 2.84% and 2.87% for the same periods.

Non-interest income decreased $355 thousand for the 2nd quarter of 2012 compared to the 2nd quarter of 2011, while non-interest income decreased $1.2 million for the first six months of 2012 compared to the corresponding period in 2011.  Both period decreases were primarily due to gains of $656 thousand and $1.3 million on the sale of investment securities and higher-mortgage related income in 2011.  Non-interest expense decreased $211 thousand for the 2nd quarter of 2012 compared to the 2nd quarter of 2011, while non-interest expense decreased $461 thousand for the first six months of 2012 compared to the corresponding period in 2011.  Both period decreases were due primarily to lower personnel costs.

Non-performing assets (“NPA”), which include non-accrual loans, troubled debt restructurings, loans delinquent 90 days or more and other real estate, were relatively unchanged at $12.7 million, or 3.75% of total assets, at June 30, 2012, from $12.7 million, or 3.47% of total assets, at December 31, 2011.  The decline in total assets contributed to the increase in the ratio of NPA to total assets.  Net charge-offs for the six months ended June 30, 2012, were $348 thousand compared to $170 thousand for the six months ended June 30, 2011, and $2.8 million for the year ended December 31, 2011.

The Company did not provide any loan loss provision during the first six months of 2012, as management determined that the existing balance of the allowance for loan and lease loss account (“ALLL”) was sufficient to cover losses expected in the portfolio.  The ALLL of $3.9 million, or 2.34% of total loans, at June 30, 2012, compares to $3.6 million, or 1.77% of total loans, at June 30, 2011 and $4.3 million, or 2.29% of total loans, at December 31, 2011.  Even with the charge-offs during 2012, the Company believes the ALLL remains adequate as of June 30, 2012.

The Company’s regulatory capital substantially exceeds the minimum regulatory capital requirements.

Effective July 10, 2012, the Company voluntarily delisted its common stock from NASDAQ.  The stock has continued to trade under the symbol “BKBK” on the OTC-QB or OTCBB marketplace.  Investors can view the Company’s stock quotes for the Company at www.otcmarkets.com or www.otcbb.com.  The Company is in the process of terminating the registration of its common stock and suspending its public reporting obligations under Sections 12(g) and 15(d) of the Securities Exchange Act of 1934, as amended.

The Company expects to discontinue issuing earnings releases effective in the 3rd quarter of 2012 and instead begin posting its quarterly regulatory reports along with its annual report on its website at www.bkbank.com.

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, three in Baton Rouge, Louisiana and a loan production office in Central, Louisiana.  As of June 30, 2012, the Company reported assets of $340.7 million and equity of $39.6 million.  Total shares outstanding at June 30, 2012, were 2,138,466 and the transfer agent is American Stock Transfer & Trust Company.

Forward Looking Statements

This news release contains statements regarding the projected performance of Britton & Koontz Capital Corporation and its subsidiaries.  These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act.  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; and legislation or regulatory changes which adversely affect the ability of the Company to conduct business combinations or new operations. The Company disclaims any 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 and Koontz Capital Corporation
Financial Highlights

For the three months ended
For the six months ended
June 30,
June 30,
Income Statement Data
Interest income
  $ 3,108,409     $ 4,103,901     $ 6,386,032     $ 8,407,398  
Interest expense
    830,663       1,208,616       1,712,004       2,436,583  
Net interest income
    2,277,746       2,895,285       4,674,028       5,970,815  
Provision for loan losses
    -       562,000       -       1,312,000  
Net interest income/(loss) after provision for loan losses
    2,277,746       2,333,285       4,674,028       4,658,815  
Non-interest income
    968,748       1,323,901       1,697,374       2,855,210  
Non-interest expense
    3,304,203       3,514,781       6,187,098       6,648,330  
Income/(loss) before income taxes
    (57,709 )     142,405       184,304       865,695  
Income taxes
    (127,093 )     (86,706 )     (127,610 )     61,164  
Net income/(loss)
  $ 69,384     $ 229,111     $ 311,914     $ 804,531  
Return on Average Assets
    0.08 %     0.24 %     0.18 %     0.42 %
Return on Average Equity
    0.71 %     2.31 %     1.59 %     4.05 %
Net income/(loss) per share
  $ 0.03     $ 0.11     $ 0.15     $ 0.38  
Weighted average shares outstanding
    2,138,466       2,143,497       2,138,466       2,140,714  
June 30,
December 31,
Balance Sheet Data
Total assets
  $ 340,714,119     $ 366,091,232  
Cash and due from banks
    50,165,706       48,622,717  
Federal funds sold
    -       -  
Investment securities
    105,973,864       118,994,337  
Loans, net of UI & loans held for sale
    164,761,099       184,142,032  
Loans held for sale
    3,864,726       2,914,468  
Allowance for loan losses
    3,940,236       4,287,910  
Deposits-interest bearing
    187,385,014       209,960,303  
Deposits-non interest bearing
    50,771,545       53,097,241  
Total deposits
    238,156,559       263,057,544  
Short-term debt
    34,370,251       35,639,635  
Long-term debt
    27,000,000       27,000,000  
Stockholders' equity
    39,567,468       38,835,739  
Book value (per share)
  $ 18.50     $ 18.16  
Total shares outstanding
    2,138,466       2,138,466  
June 30,
December 31,
Asset Quality Data
Non-accrual loans
  $ 5,211,677     $ 8,177,672  
Loans 90+ days past due
    54,738       198,902  
Troubled debt restructurings, still accruing
    -       615,392  
Total non-performing loans
    5,266,415       8,991,966  
Other real estate owned
    7,489,002       3,701,392  
Total non-performing assets
  $ 12,755,417     $ 12,693,358  
Total non-performing assets to average assets
    3.67 %     3.38 %
Net chargeoffs - ytd
  $ 347,675     $ 2,824,232  
YTD net chargeoffs as a percent of average loans
    0.20 %     1.41 %

The following information was filed by Britton Koontz Capital Corp (BKBK) on Tuesday, July 31, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Britton Koontz Capital Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Britton Koontz Capital Corp.


Never Miss A New SEC Filing Again

Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.


We Highlighted This SEC Filing For You

SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.


Widen Your SEC Filing Reading Experience

Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view


Uncover Actionable Information Inside SEC Filings

SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q


Adobe PDF, Microsoft Word and Excel Downloads

Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis


FREE Financial Statements

Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator

Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not


Financial Stability Report

Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity


Get a Better Picture of a Company's Performance

Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years


Log in with your credentials


Forgot your details?

Create Account