PFI Invesco ETF Trust Invesco Dorsey Wright Financial Momentum ETF

Pelican Financial, Inc. Reports Record Q3, 9-month Results ANN ARBOR, Mich., Oct. 29 /PRNewswire-FirstCall/ -- Pelican Financial, Inc. , the holding company for Washtenaw Mortgage Company and Pelican National Bank, posted record results for the third quarter and nine months ended September 30, 2003, Charles C. Huffman, President and CEO, announced today. Third-quarter results The Corporation recorded net income of $3,374,096, or $0.75 per share, a sharp turn-around from the year-earlier net loss of $504,017, or $0.11 per share. Washtenaw Mortgage Company recorded its best quarter, with net income rising to $3,834,346, from a year-earlier net loss of $948,123. The results for Q3 2003 include an accounting credit of $2,416,090, equivalent to $0.54 per share, and the Q3-2002 results include an accounting charge of $5,009,077, equivalent to $1.12 per share, for mortgage-servicing-rights adjustments and a credit of $413,449 for the cumulative effect of a change in accounting principle. Mortgage volume for Q3-2003 was $1.0 billion, compared with mortgage volume of $598.0 million for Q3 2002. Pelican National Bank posted noticeably lower results from margin compression, higher operating expenses, and a rise in the quarter's loan-loss provision. The net loss for the quarter was $246,376, compared with net income of $513,935 for the third quarter of 2002. The loan-loss provision, which was increased due to deterioration in collateral value of nonperforming loans, now stands at 1.11%. Nine-month results PFI, Inc.'s results for the nine months ended September 30, 2003 were positive, as well, with exceptionally strong performance at the mortgage company offsetting lower results of the Bank. Net income jumped 460% to $9,562,245, or $2.13 per share, from $1,706,955, or $0.38 per share a year ago. The improvement came from a 22% increase in net interest income and a 96% jump in noninterest income. The results include loan-servicing-rights- impairment charges of $2,219,089, equal to $0.50 per share, for the current year, and $7,890,600, or $1.77 share, for the first nine months of 2002. Washtenaw Mortgage ended the nine months on very positive footing. Net income rose to $9,898,960 from $583,636 for the first three quarters of 2002. Mortgage volume totaled $3.2 billion, compared with $1.8 billion a year ago. Pelican National Bank posted net income of $311,061, off from year-earlier net income of $1,411,317. As noted, the decline reflects margin compression, higher operating expenses from staff additions in connection with the opening of two new branches, and a higher loan-loss provision. Pelican National Bank closed the quarter with a larger balance sheet. Assets stood at $205,257,162, up from $186,687,958 at the start of the year and $183,778,595 a year ago. Loans outstanding totaled $109,234,775, compared with $105,144,284 at December 31, 2002, and $104,697,009 the year before. Deposits, likewise, increased to $172,762,694, from $153,851,714 at yearend- 2002, and $150,747,752 at September 30, 2002. Charles C. Huffman, President and CEO said, "Overall, our results were outstanding, especially given the soft loan demand and margin pressure at Pelican National Bank and weakening of mortgage-refinancing demand at Washtenaw Mortgage Company. "We saw healthy growth in both loans and core deposits at our Bank subsidiary. The Bank launched a very successful money-market promotion to build core deposits. The bank has acquired two new branch sites that will open in the first half of 2004. "At the mortgage subsidiary, the servicing portfolio has shown strong growth to $2.7 billion. The mortgage company carries the related mortgage- servicing-rights asset at a value of 89 basis points or a multiple of 2.97 of the weighted-average service fee. "Mortgage production surpassed $1 billion for the second consecutive quarter. Loan production peaked in July at over $500 million, as the mortgage subsidiary reaped rewards from having leveraged its technology and strengthened its infrastructure. Additionally, retail loan production has reached $100 million year to date, including $28 million for the quarter. "In anticipation of the rise in interest rates, we have developed new loan products, including interest only loans and second mortgage loan products. We are hopeful that we will receive final regulatory approval to separate the mortgage subsidiary from the bank holding company and establish two new publicly traded companies." In July 2003, Pelican Financial, Inc. announced that it was seeking regulatory approval to spin-off Washtenaw Mortgage Company from Pelican Financial, Inc. and establish two separate publicly traded entities with shareholders receiving identical holdings in each corporation. Pelican Financial, Inc. is the holding company for Washtenaw Mortgage Company, headquartered in Ann Arbor, Michigan, and Pelican National Bank of Naples, Florida. Founded in 1981, Washtenaw Mortgage Company is a leading wholesale mortgage banker operating in more than 40 states. Pelican National Bank, founded in 1997, is a full service community bank with branches in Naples, Fort Myers, Bonita Springs, and San Carlos, Florida. This news release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. Among these risks are regional and national economic conditions, competitive and regulatory factors, legislative changes, mortgage-interest rates, cost and availability of borrowed funds, our ability to sell mortgages in the secondary market, and housing sales and values. These risks and uncertainties are included in the Corporation's filings with the Securities and Exchange Commission, available free via EDGAR. The Company assumes no responsibility to update or clarify forward-looking statements. PELICAN FINANCIAL, INC. Consolidated Balance Sheets September 30, December 31, 2003 2002 (Unaudited) ASSETS Cash and cash equivalents Cash and demand deposits due from banks $3,460,900 $10,410,554 Interest-bearing deposits 81,875,401 33,005,000 Federal funds sold 2,356,162 13,946,381 Total cash and cash equivalents 87,692,463 57,361,935 Accounts receivable, net 5,720,588 7,962,115 Securities available for sale 4,704,661 2,560,305 Federal Reserve & Federal Home Loan Bank Stock 1,230,000 1,330,000 Loans held for sale 144,575,261 192,488,348 Loans receivable, net 109,868,942 104,533,053 Mortgage servicing rights, net 22,720,128 13,799,691 Other real estate owned 1,575,367 1,293,148 Premises and equipment, net 2,802,242 2,410,902 Other assets 2,043,346 1,958,466 $382,932,998 $385,697,963 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Deposits Noninterest-bearing $78,618,523 $87,304,821 Interest-bearing 91,129,097 66,428,958 Total deposits 169,747,620 153,733,779 Due to bank 21,412,516 34,849,016 Notes payable 52,124,144 43,866,403 Repurchase agreements 56,734,911 82,987,994 Federal Home Loan Bank borrowings 18,000,000 18,000,000 Other liabilities 24,936,882 20,430,113 Total liabilities 342,956,073 353,867,305 Shareholders' equity Preferred stock, 200,000 shares authorized; none outstanding Common stock, $.01 par value 10,000,000 shares authorized; 4,470,241 and 4,440,241 outstanding at September 30, 2003 and December 31, 2002, respectively 44,702 44,402 Additional paid in capital 15,453,939 15,345,573 Retained earnings 24,654,633 16,426,842 Accumulated other comprehensive income net of tax (176,349) 13,841 Total shareholders' equity 39,976,925 31,830,658 $382,932,998 $385,697,963 PELICAN FINANCIAL, INC. Consolidated Statements of Income and Comprehensive Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Interest income Loans, including fees $5,917,794 $4,872,986 $17,498,023 $15,249,280 Investment securities 80,333 85,206 284,594 377,446 Federal funds sold and overnight accounts 152,285 112,174 397,302 231,677 Total interest income 6,150,412 5,070,366 18,179,919 15,858,403 Interest expense Deposits 574,782 845,392 1,707,516 2,587,961 Other borrowings 1,999,287 1,485,750 5,652,430 4,421,523 Total interest expense 2,574,069 2,331,142 7,359,946 7,009,484 Net interest income 3,576,343 2,739,224 10,819,973 8,848,919 Provision for loan losses 518,000 40,000 888,000 270,000 Net interest income after provision for loan losses 3,058,343 2,699,224 9,931,973 8,578,919 Noninterest income Gain on sales of securities - 22,698 129,360 72,768 Service charges on deposit accounts 40,950 38,602 141,159 110,724 Servicing income 1,861,858 1,621,425 5,305,973 4,541,042 Gain on sales of mortgage servicing rights and loans, net 11,702,010 5,680,457 38,252,995 17,473,914 Other income 196,952 310,470 711,057 530,092 Total noninterest income 13,801,770 7,673,652 44,540,544 22,728,540 Noninterest expense Compensation and employee benefits 7,653,937 3,236,691 21,329,877 11,249,231 Occupancy and equipment 673,633 550,028 1,989,264 1,375,014 Telephone 185,030 138,210 518,898 427,390 Postage 188,470 155,159 593,337 434,920 Amortization of mortgage servicing rights 1,705,940 1,137,893 4,355,425 3,264,755 Mortgage servicing rights valuation adjustment (2,416,090) 5,009,077 2,219,089 7,890,600 Other noninterest expense 3,768,860 1,494,938 8,950,858 4,652,073 Total noninterest expense 11,759,780 11,721,996 39,956,748 29,293,983 Income (loss) before income taxes and cumulative effect of change in accounting principle 5,100,333 (1,349,120) 14,515,769 2,013,476 Provision for income taxes 1,726,237 (431,654) 4,953,524 719,970 Income (loss) before cumulative effect of change in accounting principle 3,374,096 (917,466) 9,562,245 1,293,506 Cumulative effect of change in accounting principle, net of tax - 413,449 - 413,449 Net income (loss) $3,374,096 $(504,017) $9,562,245 $1,706,955 Basic earnings (loss) per share before cumulative effect of change in accounting principle $0.76 $(0.20) $2.15 $0.29 Per share cumulative effect of change in accounting principle - 0.09 - 0.09 Basic earnings (loss) per share $0.76 $(0.11) $2.15 $0.38 Diluted earnings (loss) per share before cumulative effect of change in accounting principle $0.75 $(0.20) $2.13 $0.29 Per share cumulative effect of change in accounting principle - 0.09 - 0.09 Diluted earnings (loss) per share $0.75 $(0.11) $2.13 $0.38 Comprehensive income (loss) $3,175,389 $(510,974) $9,372,055 $1,721,865 DATASOURCE: Pelican Financial, Inc. CONTACT: Howard Nathan, CFO of Pelican Financial, Inc., +1-734-662-9733; or Mike Marcotte of Marcotte Financial Relations, +1-248-656-3873, for Pelican Financial, Inc.

Copyright