AMERICAN FEDERAL ANNOUNCES CONTINUED RECORD PERFORMANCE.GREENVILLE, S.C.--(BUSINESS WIRE)--Oct. 15, 1996--American Federal Bank, FSB (FrontSide Bus) See system bus. FSB - front side bus , (Nasdaq: AMFB AMFB Acquisition Management Functional Board (DoD DAU) AMFB Alfred Murrah Federal Building ) today announced record income from operations of $4.6 million for the third quarter, compared with $4.1 million in the third quarter of 1995. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share for the quarter were $.41, a 14% increased from $.36 in 1995. Net income, however, was reduced to $989,000 or $.09 per share for the quarter due to a one-time FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). assessment of $5.6 million (pre-tax). On September 30, President Clinton signed the Omnibus omnibus: see bus. Appropriations Bill which calls for all thrift institutions Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. to share in recapitalizing the FDIC fund that insures thrift thrift: see leadwort. deposits. Roy Abercrombie, Chairman and Chief Executive Officer, said, "Even though the special assessment has a heavy impact on earnings this quarter, we consider it an important investment in the future of American Federal Bank. Recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of the FDIC substantially reduces future deposit insurance expense and is a major step toward eliminating the differences between banks and thrifts." The special assessment will have no impact on dividends, and the Bank remains well-capitalized. Net income for the nine months was $9.8 million or $.87 per share. "American Federal turned in another strong performance in the third quarter, led by 12% loan growth," Abercrombie said. "We are fortunate to be located in a market area that continues to expand." Net interest income increased $1.9 million or 16% from the prior year quarter, and the net interest margin grew to 4.21% from 3.86% at September 30, 1995. The provision for possible loan losses increased to $1.6 million to cover loan growth and higher chargeoffs in the credit card portfolio. Net chargeoffs for the quarter were $1.4 million, with $938,000 or 65% representing credit cards. At September 30, nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. were $7.1 million or .51% of total assets. The allowance for possible loan losses was $10.7 million or 1.25% of total loans. Fees and commission income continued to be strong with a 24% increase for the quarter and a 22% increase for the nine months. Before the effect of the special assessment, the Bank's efficiency ratio was 53.42%. In the fourth quarter, American Federal sold its $33 million credit card portfolio. Over 90% of the credit card receivables had been originated in a Southeastern Region solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual in early 1995. The gain on this sale permitted the Bank to restructure its mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. portfolio by eliminating low yielding investments. Abercrombie said, "We were pleased to have the opportunity to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose several underperforming assets underperforming asset An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset. at no expense to the Bank." The sale of the credit card portfolio will not impact the way the Bank offers or services credit cards for its customers. American Federal has $1.4 billion in assets and 40 branch offices covering twelve counties in northwestern South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . The Bank also owns 16 branch offices of a consumer finance company, Finance South. -0-
At or for the three months ended
September 30,
1996 1995
KEY PERFORMANCE MEASURES:
Return on average assets 1.32%(a) 1.25%
Return on average equity 16.98%(a) 15.88%
Efficiency ratio 53.42%(a) 58.62%
PER SHARE DATA:
Book value $9.90 $9.44
Annual dividend .40 .28
(a) Excluding special FDIC assessment
CONSOLIDATED FINANCIAL DATA
(Unaudited)
OPERATIONS DATA:
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
(In thousands, except per share data)
Net interest income $13,905 $11,999 $40,305 $36,001
Provision for loan losses 1,596 277 3,442 1,497
Noninterest income 4,322 3,063 11,485 9,383
Noninterest expense 15,107 8,921 33,221 25,772
Net income before income taxes 1,524 5,864 15,127 18,115
Income taxes 535 80 5,296 4,247
Net income before extraordinary
item 989 5,784 9,831 13,868
Extraordinary item - (1,653) - (1,653)
Net income $ 989 $ 4,131 $ 9,831 $12,215
Net earnings per share: $ .09 $ .36 $ .87 $ 1.07
Weighted average shares:
Primary 11,133 11,481 11,325 11,425
Fully Diluted 11,151 11,481 11,353 11,425
SUMMARY OF FINANCIAL CONDITION:
September 30, December 31,
1996 1995
(In thousands)
Total assets $1,394,874 $1,345,884
Loans $ 846,428 $ 805,365
Securities $ 465,283 $ 437,561
Deposits $ 981,838 $ 977,957
Stockholders' equity $ 108,255 $ 109,792
CONTACT: American Federal Bank, Greenville Mary Margaret Dragoun, 864/255-7253 |
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