Printer Friendly

AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $5.0 MILLION FOR SECOND QUARTER OF 1992

 AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $5.0 MILLION
 FOR SECOND QUARTER OF 1992
 ANNANDALE, Va., July 20 /PRNewswire/ -- Ameribanc reported net income of $5.0 million for the quarter ended June 30, 1992, as compared to a loss of $8.4 million for the year earlier quarter. In addition to pretax core earnings of $1.7 million, second quarter earnings included the effect of increases in general reserves and writedowns of assets of $1.5 million, and gains on the sale of: loan servicing rights of $3.2 million, real estate of $1.6 million and residential mortgage loans of $0.5 million. The second quarter profit offset a substantial portion of the first quarter loss, lowering the year-to-date loss to $1.0 million compared to a loss of $10.3 million for the first six months of 1991. The 1992 year-to- date loss was primarily the result of writedowns of foreclosed property and general reserve provisions totaling $9.5 million, most of which occurred in the first quarter. Similar items for the first two quarters of 1991 totaled $17.6 million.
 Nonearning assets decreased during the quarter to $152.7 million from the $164.6 million reported as of March 31, 1992. This decrease reflects the sale of several parcels of residential real estate and signals continued improvement in this section of Ameribanc's portfolio. The commercial real estate market, as expected, has shown only moderate improvement. Efforts continue to produce continued reductions in the level of nonearning assets in the near term.
 The volume of mortgage loan originations resulting from home sales stayed relatively constant between the first and second quarters of 1992. The level of homeowner refinancings, however, slowed considerably in the spring reflecting the higher interest rates during April and May. During the second quarter of 1992, Ameribanc originated $133 million of mortgage loans as compared to $154 million for the year earlier quarter. Loan sales totaled $134 million in the second quarter of 1992 as compared to $141 million in the same quarter of 1991. Management expects the residential market to continue to improve in the third quarter as a result of recent significant declines in mortgage interest rates.
 David W. Campbell, president of Ameribanc Savings Bank, FSB, commented, "I am pleased at the strength of our core earnings and expect further improvement as the level of nonearning assets continues to decline." Earnings from operations (excluding certain noncontrollable or nonrecurring items) totaled $1.7 million for the second quarter of 1992. These results continue to be sustained by a favorable interest spread, control of operating expenses and the program to increase fee income.
 The effective tax rate of 6.1 percent in the second quarter of 1992 results primarily from the utilization of net operating loss carryforwards from the first quarter.
 On July 20, 1992, Ameribanc filed a registration statement with the Securities and Exchange Commission for the issuance of transferable subscription rights to existing shareholders for the purchase of up to 25,364,928 additional shares. Any unused rights are to be made available to the public. The offering will be contingent upon receiving subscriptions for a minimum of 75 percent of the shares offered. The net proceeds to Ameribanc would be substantially downstreamed to Ameribanc Savings Bank, FSB (the "Bank"), in conformance with the Bank's capital plan for achieving compliance with regulatory capital requirements.
 Ameribanc Investors Group (NASDAQ-NMS: AINVS) is the holding company for Ameribanc Savings Bank, FSB, a $1.2 billion bank headquartered in Annandale operating 29 branch offices in Northern Virginia, Hampton Roads and Charlottesville, Va.
 AMERIBANC INVESTORS GROUP
 Selected Financial Data
 ($ In thousands, except per share data)
 Financial Condition June 30, 1992 Dec. 31, 1991
 Loans receivable and MBS, net $ 876,273 $ 931,910
 Total assets 1,172,588 1,187,104
 Deposits 866,099 905,402
 Shareholders' investment 39,706 40,686
 Book value per share 6.20 6.35
 Quarter Ended Six Months Ended
 June 30, June 30,
 Results of Operations 1992 1991 1992 1991
 Total interest revenue $20,610 $ 25,153 $42,897 $ 50,754
 Total interest expense 14,080 20,463 29,675 41,663
 Net interest revenue 6,530 4,690 13,222 9,091
 Provision for losses
 on loans 388 12,193 8,388 13,759
 Net interest revenue
 after provision
 for losses 6,142 (7,503) 4,834 (4,668)
 Other revenue 7,349 6,156 9,539 8,817
 Other expenses 8,156 11,517 15,656 19,684
 Income (loss) before
 income taxes 5,335 (12,864) (1,283) (15,535)
 Provision (benefit)
 for taxes 323 (4,445) (315) (5,202)
 Net income (loss) $ 5,012 $ (8,419) $ (968) $(10,333)
 Earnings (loss)
 per share $0.79 $(1.33) $(0.15) $(1.63)
 Regulatory Capital Position Requirement Actual
 Tangible 1.50 pct. 1.23
 Core 4.00 2.55
 Risk-based 7.20 4.48
 -0- 7/20/92
 /CONTACT: John J. Houseman, president, Ameribanc Investors Group, 703-658-2721, or David W. Campbell, president, Ameribanc Savings Bank, 703-658-1002/
 (AINVS) CO: American Investors Group ST: Virginia IN: FIN SU: ERN


TW -- DC022 -- 0889 07/20/92 16:06 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 20, 1992
Words:856
Previous Article:U.S. SOFTWARE UNVEILS VIEWTASK! NEW SOFTWARE TOOL LETS DESIGNERS EXPERIMENT WITH TASK SET DESIGN STRATEGIES
Next Article:MESABI TRUST TO OMIT QUARTERLY DISTRIBUTION
Topics:


Related Articles
AMERIBANC INVESTORS GROUP REPORTS EARNINGS OF $207,000 FOR FOURTH QUARTER OF 1991
AMERIBANC INVESTORS GROUP REPORTS LOSS OF $5.98 MILLION FOR FIRST QUARTER OF 1992
AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $895,000 FOR THIRD QUARTER OF 1992
AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $484,000 FOR FOURTH QUARTER 1992
AMERIBANC INVESTORS GROUP REPORTS LOSS FOR FIRST QUARTER OF 1993
AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $2,315,000 FOR SECOND QUARTER OF 1993
AMERIBANC INVESTORS GROUP REPORTS INCOME OF $2.0 MILLION FOR THIRD QUARTER OF 1993
AMERIBANC INVESTORS GROUP REPORTS INCOME OF $1.2 MILLION FOR FOURTH QUARTER OF 1993
AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $1,969,000 AND REDUCTION OF $17 MILLION OF NONEARNING ASSETS FOR THE SECOND QUARTER OF 1994
AMERIBANC INVESTORS GROUP REPORTS INCOME OF $546,000 FOR FOURTH QUARTER OF 1994

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters