Alliance Bancorp Reports Second Quarter Earnings.HINSDALE Hinsdale, village (1990 pop. 16,029), Cook and Du Page counties, NE Ill., part of the greater Chicago metropolitan area; inc. 1873. Computer systems software is produced. , Ill.--(BUSINESS WIRE)--July 22, 1999-- Alliance Bancorp (Nasdaq: ABCL ABCL American Birth Control League ABCL As Built Configuration List ABCL Amitabh Bachhan Corporation Limited ), the holding company for Liberty Federal Bank, today reported earnings results for the second quarter ended June June: see month. 30, 1999 of $4,507,000, or $0.39 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Net income for the second quarter of 1998 was $1,741,000, or $0.14 per diluted share, however, without the merger costs related to the acquisition of Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income for the six months ended June 30, 1999 was $9,108,000, or $0.78 per diluted share. Comparable net income for the six months ended June 30, 1998 was $6,578,000, or $0.55 per diluted share, however, without the merger related costs in 1998, year-to-date net income would have been $9,257,000 or $0.77 per diluted share. The difference in net income between the two years is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to the after tax effect of additional merger costs expensed in the first quarter of 1999. Net interest income was $13,241,000 for the second quarter of 1999, a $201,000, or 1.5 percent increase over the prior year's second quarter. The current quarter's interest rate spread was 2.38 percent and the interest rate margin was 2.83 percent, compared to 2.27 percent and 2.75 percent, respectfully re·spect·ful adj. Showing or marked by proper respect. re·spect  ful·ly adv. , in the prior year's second
quarter. The yield on average assets for the current quarter was 7.03
percent, compared to 7.24 percent for last year's second quarter.
Costs of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities decreased to 4.65 percent from
4.97 percent, comparing the current quarter to the prior year's
second quarter.Net interest income was $25,984,000 for the six months ended June 30, 1999, an increase over the prior year period of $25,000. The current year-to-date interest rate spread was 2.28 percent and the interest rate margin was 2.78 percent, compared to 2.30 percent and 2.83 percent, respectfully, in the prior year's six month period. The yield on average assets for the first six months of 1999 was 6.99 percent, compared to 7.30 percent for the prior year period. Costs of interest-bearing liabilities decreased to 4.71 percent from 5.00 percent, comparing the first six months of 1999 to 1998. Net interest income improved over the preceding quarter. Increased yields on both the loan and investment portfolios and decreases in the cost of deposits and borrowed money improved the interest rate spread to 2.38 percent from 2.19 percent, resulting in an additional $498,000 in net interest income over the previous quarter. Average balances on loans were unchanged at $1.26 billion for the current quarter compared to the prior year's second quarter. Interest income on loans for the current quarter decreased $339,000 compared to the second quarter of 1998. The overall yield on loans decreased to 7.44 percent for the current quarter from 7.54 percent a year ago. This reduction reflects the overall decline in mortgage yields as prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. loans are replaced with new loans at lower market yields, and
the decrease in the prime rate since last year affecting the yield on
equity lines of credit.Interest income on loans for the first six months of 1999 increased $19,000 compared to the first six months of 1998. The overall yield on loans decreased to 7.41 percent for the first six months of 1999 from 7.61 percent a year ago. Average balances on loans increased to $1.28 billion for the current period compared to 1.24 billion for the first six months of the prior year. Combined income from mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , interest-bearing deposits and investment securities decreased $1,113,000 in the current quarter from the prior year's second quarter. The average balances of these investments decreased by $24.5 million to $613.1 million from $637.6 million for the prior year's second quarter. The overall yield on these investments decreased to 6.17 percent in the current quarter from 6.63 percent in the prior year's second quarter - again, reflecting the overall year-to-year decline in yields. For the first six months of the current year, combined investment income decreased $1,646,000 from the prior year's first six months. The average balances of these investments increased by $2.3 million to $596.1 million from $593.8 million for the prior year's first six months. The overall yield on these investments decreased to 6.07 percent in the current period from 6.65 percent in the prior year. Until recently, market interest rates had been declining for several months, leading to rapid prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of loans and mortgage-backed securities. The cash received by the Bank from prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , which is reinvested into similar instruments at market rates, resulted in the decreased yields mentioned above. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the same lower rate environment has allowed the Bank to reduce its costs on deposits and borrowings. Interest expense on deposit accounts decreased $2.1 million to $13.0 million for the current quarter. The average interest cost of deposits decreased to 4.40 percent for the current quarter from 4.80 percent in the prior year's second quarter. Average deposit balances decreased to $1.19 billion from $1.27 billion a year ago. In addition to deposits, the Bank uses borrowed money, consisting primarily of advances from the Federal Home Loan Bank of Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. to fund a portion of its investment activity and its loan demand. Interest expense on borrowed money increased $472,000, to $6.6 million in the current quarter as average balances increased to $499 million from $446 million a year ago. The average interest cost of advances decreased to 5.25 percent for the current quarter from 5.46 percent in the prior year's second quarter. For the first six months of the current year, interest expense on deposit accounts decreased $3.6 million to $26.7 million, compared to $30.3 million for the prior year's period. The average interest cost of deposits decreased to 4.49 percent for the current year's first six months from 4.81 percent in the prior year's first six months. Average deposit balances decreased to $1.20 billion from $1.27 billion a year ago. Interest expense on borrowed money increased $2.0 million, to $12.7 million in the current year's first six months as average balances increased to $480.5 million from $380.8 million a year ago. The average interest cost of borrowed money decreased to 5.27 percent for the current period from 5.60 percent in the prior year. Noninterest income of $6.7 million for the quarter exceeds the prior year's second quarter by $1.8 million. The current year period included $1.2 million in income from real estate operations compared to $206,000 in prior year's second quarter. Kenne P. Bristol Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "our modest real estate development has been an area in which the Company has benefited from the expertise and contacts acquired through the mergers over the last three years." Other fees and commissions, increased by $917,000 in the current quarter compared to the prior year's second quarter primarily from loan commissions paid to Preferred Mortgage Associates, Ltd. ("Preferred"), the mortgage brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. subsidiary of the Bank. Noninterest income also includes brokerage commissions on security transactions for customers of Liberty Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. the Bank's investment and insurance subsidiary; transaction fees from the Bank's shared ATM network; fees for loans serviced; and fees from deposit accounts. Noninterest income for the first six months of 1999 was $13.4 million, an increase of $2.4 million over the prior year's first six months. Real estate operation income increased by $827,000 to $1.7 million in 1999, and fees and commissions paid to Preferred also increased by $980,000 in the first six months of the current year over the prior year's first six months. The current quarter's noninterest expense was $12.8 million. In the second quarter of 1998, noninterest expenses of $14.7 included $3.6 million in merger costs related to the acquisition of Southwest Bancshares, Inc. Noninterest expense for the first six months of 1999 was $25.7 million. The prior year's first six month's noninterest expenses of $25.8 included $3.8 million in merger costs. Included in the increased noninterest expenses for the current quarter, and the first six months of 1999 are costs related to additional loan volume, and consulting fees related to operational efficiency studies at the Bank and Preferred. The increases in occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expense of $286,000 and $554,000 for the current quarter and six month period, respectively, relate primarily to additional depreciation expense on equipment enhancements related to improved technology needed to implement these efficiency studies in order to obtain long term operational benefits. At June 30, 1999, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were $3.8 million, or 0.30 percent of total loans, compared to $2.3 million, or 0.18 percent of loans at June 30, 1998. A $50,000 provision for loan losses was recorded in the current quarter, compared to $56,000, for the prior year's second quarter. The allowance for loan losses at June 30, 1999 is $6.3 million. Non-performing assets were $4.0 million at June 30, 1999, or 0.21 percent of total assets, compared to $2.6 million, or 0.13 percent of assets at June 30, 1998. Alliance Bancorp's total assets were $2.0 billion at June 30, 1999, and total deposits were $1.2 billion. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $173.5 million, resulting in a book value of $15.75 per share for the 11,020,628 shares outstanding. Stockholders' equity decreased $7.5 million this quarter primarily as a result of changes in the market values of investment securities and mortgage-backed securities available for sale, net of tax. The required disclosure of market value changes only addresses assets held as available for sale and does not take into consideration any offsetting change in the value of the funding source of these assets which may have considerably offset the decrease to equity if the funding sources were accounted for at fair value. For the quarter ended June 30, 1999, the annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets was 0.92 percent, and the annualized return on average equity was 10.03 percent, compared to 0.85 percent and 9.42 percent, respectively for the prior year's second quarter, exclusive of the 1998 merger expenses, net of tax. For the six month period ended June 30, 1999, the annualized return on average assets was 0.93 percent, and the annualized return on average equity was 9.96 percent, compared to 0.96 percent and 10.40 percent, respectively for the prior year's first six months, exclusive of the 1998 merger expenses, net of tax. On February February: see month. 2, 1999, the Company announced a stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. , whereby up to 10 percent of the outstanding common stock would be purchased by the Company. As of June 30, 1999, 484,561 shares, approximately 4.2% of the outstanding stock, had been purchased for a total of $9,690,764, at an average price of $20.00 per share. Liberty Federal Bank is a community-oriented financial services company operating twenty retail banking offices in Chicago; north, west and southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. Cook County; and DuPage County. The Bank's Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. and Leverage capital ratios were 7.70 percent, and the Risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 14.02 percent at June 30, 1999. These ratios substantially exceed all current regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Preferred Mortgage Associates, Ltd., a subsidiary of Liberty Federal Bank, is one of the largest mortgage brokers in the Chicago metropolitan area “Chicagoland” redirects here. For for the racing venue, see Chicagoland Speedway. The Chicago metropolitan area is the metropolitan area associated with the city of Chicago in the United States. . Preferred has three mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real offices including its headquarters in Downers Grove, Illinois Downers Grove is an affluent suburb located 19 miles (31 km) west of Chicago in DuPage County, Illinois. The population was 48,724 at the 2000 census. . Liberty Financial Services, Inc., a subsidiary of Liberty Federal Bank, provides investment services for customers through INVEST Financial Corporation with thirteen licensed brokers and five licensed sales assistants sales assistant n (BRIT) → dependiente/a m/f sales assistant (US), sales clerk sale n → vendeur/euse operating through all offices of the Bank. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide J. Munin Munin one of Odin’s ravens; regarded as embodying memory. [Norse Myth.: Leach, 761] See : Memory , President and CEO of Liberty Financial Services Inc. states "Liberty Financial Services is currently developing a modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. platform program. As of June 30, 1999, six employees have been licensed and trained for annuity sales. Fixed annuities Fixed annuities Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period. are popular products with bank customers as they offer tax deferral tax deferral The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. in addition to attractive current yields." Statements contained in this news release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as the term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company's common stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: ABCL. -Financial Statements Attached-
ALLIANCE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
(In thousands, except share data) 1999 1998
----------------------------------------------------------------------
(unaudited)
ASSETS
Cash and due from banks $ 9,273 17,195
Interest-bearing deposits 1,262 63,802
Investment securities available
for sale, at fair value 84,579 61,516
Mortgage-backed securities
available for sale, at fair value 468,869 332,347
Loans, net of allowance for losses
of $6,307 at June 30,1999 and
$6,350 at December 31, 1998 1,275,550 1,333,401
Accrued interest receivable 11,026 10,759
Real estate 21,618 20,185
Premises and equipment, net 12,684 12,590
Stock in Federal Home Loan Bank
of Chicago, at cost 25,572 24,523
Due from broker - 71,336
Other assets 42,160 34,842
----------------------------------------------------------------------
$ 1,952,593 1,982,496
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 1,231,273 1,298,044
Borrowed funds 516,977 464,450
Advances by borrowers for
taxes and insurance 12,418 12,935
Accrued expenses and other
liabilities 18,404 21,130
----------------------------------------------------------------------
Total liabilities 1,779,072 1,796,559
----------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, $.01 par
value;
authorized 1,500,000 shares;
none outstanding - -
Common stock, $.01 par value;
authorized 21,000,000 shares:
11,659,211 shares issued and
11,020,628 outstanding at
June 30, 1999
11,617,903 shares issued and
11,463,881 outstanding at
December 31, 1998 117 116
Additional paid-in capital 107,602 107,130
Retained earnings, substantially
restricted 86,227 80,219
Treasury stock, at cost; 638,583
shares at June 30, 1999 and
154,022 at December 31, 1998 (11,202) (1,511)
Accumulated other comprehensive
loss (9,223) (17)
----------------------------------------------------------------------
Total stockholders' equity 173,521 185,937
----------------------------------------------------------------------
Commitments and contingencies
----------------------------------------------------------------------
$ 1,952,593 1,982,496
----------------------------------------------------------------------
ALLIANCE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months
Ended Ended
(In thousands, except June 30, June 30,
per share amounts) 1999 1998 1999 1998
----------------------------------------------------------------------
(unaudited)
INTEREST INCOME:
Loans $ 23,437 23,776 $ 47,312 47,293
Mortgage-backed securities 7,182 7,391 12,584 12,568
Interest-bearing deposits 441 566 2,172 2,011
Investment securities 1,842 2,621 3,331 5,154
----------------------------------------------------------------------
Total interest income 32,902 34,354 65,399 67,026
----------------------------------------------------------------------
INTEREST EXPENSE:
Deposits 13,043 15,168 26,682 30,339
Borrowed funds 6,618 6,131 12,733 10,690
Collateralized mortgage
obligations - 15 - 38
----------------------------------------------------------------------
Total interest expense 19,661 21,314 39,415 41,067
----------------------------------------------------------------------
Net interest income 13,241 13,040 25,984 25,959
Provision for loan losses 50 56 100 162
----------------------------------------------------------------------
Net interest income
after provision
for loan losses 13,191 12,984 25,884 25,797
----------------------------------------------------------------------
NONINTEREST INCOME:
Gain on sales of loans
held for sale 87 113 469 152
Gain (loss) on sales of
mortgage-backed securities
available for sale (17) - (22) 326
Gain on sale of investment
securities available for sale - - - 178
Income from real
estate operations 1,217 206 1,728 901
Servicing fee income 83 78 231 152
ATM fee income 547 507 1,027 968
Other fees and commissions 4,710 3,793 9,514 8,060
Other 56 153 436 289
----------------------------------------------------------------------
Total noninterest income 6,683 4,850 13,383 11,026
----------------------------------------------------------------------
NONINTEREST EXPENSE:
Compensation and benefits 6,962 8,420 14,369 14,647
Occupancy expense 1,842 1,556 3,616 3,062
Federal deposit insurance
premiums 192 203 393 404
Advertising expense 332 299 542 479
ATM expense 340 443 680 836
Computer services 327 594 664 1,005
Other 2,780 3,196 5,387 5,373
----------------------------------------------------------------------
Total noninterest expense 12,775 14,711 25,651 25,806
----------------------------------------------------------------------
Income before income taxes 7,099 3,123 13,616 11,017
Income tax expense 2,592 1,382 4,508 4,439
----------------------------------------------------------------------
Net income $ 4,507 1,741 $ 9,108 6,578
----------------------------------------------------------------------
Basic earnings per share $ 0.41 0.15 $ 0.81 0.58
Diluted earnings per
share $ 0.39 0.14 $ 0.78 0.55
----------------------------------------------------------------------
ALLIANCE BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At Or For The Three Months
Ended June 30,
(Dollars in thousands,
except per share data) 1999 1998
----------------------------------------------------------------------
(unaudited)
Average assets $ 1,969,869 $ 1,988,375
Return on average assets 0.92 % 0.35 %
Return on average equity 10.03 3.88
Average stockholders' equity to
average assets 9.12 9.03
Stockholders' equity to total assets 8.89 8.73
Tangible capital to total assets
(Bank only) 7.70 7.21
Leverage capital to total assets
(Bank only) 7.70 7.21
Risk-based capital ratio (Bank only) 14.02 14.49
Interest rate spread during the period 2.38 2.27
Net yield on average interest-earning
assets 2.83 2.75
General and administrative expenses
to average assets 2.59 2.96
Non-performing loans to total loans 0.30 0.18
Non-performing assets to total assets 0.21 0.13
Average interest-earning assets to
average interest-bearing liabilities 1.11 x 1.11 x
Book value per share $ 15.75 $ 15.80
Weighted average shares outstanding
Basic 11,042,591 11,364,946
Diluted 11,593,547 12,009,855
Earnings per share
Basic $ 0.41 $ 0.15
Diluted $ 0.39 $ 0.14
----------------------------------------------------------------------
Ratios were calculated on an annualized basis, as applicable.
ALLIANCE BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At Or For The Six Months
Ended June 30,
(Dollars in thousands,
except per share data) 1999 1998
----------------------------------------------------------------------
(unaudited)
Average assets $ 1,966,085 $ 1,921,810
Return on average assets 0.93 % 0.69 %
Return on average equity 9.96 7.39
Average stockholders' equity to
average assets 9.30 9.26
Stockholders' equity to total assets 8.89 8.73
Tangible capital to total assets
(Bank only) 7.70 7.21
Leverage capital to total assets
(Bank only) 7.70 7.21
Risk-based capital ratio (Bank only) 14.02 14.49
Interest rate spread during the period 2.28 2.30
Net yield on average interest-earning
assets 2.78 2.83
General and administrative expenses
to average assets 2.61 2.69
Non-performing loans to total loans 0.30 0.18
Non-performing assets to total assets 0.21 0.13
Average interest-earning assets to
average interest-bearing liabilities 1.11 x 1.11 x
Book value per share $ 15.75 $ 15.80
Weighted average shares outstanding
Basic 11,217,619 11,327,323
Diluted 11,738,811 11,969,135
Earnings per share
Basic $ 0.81 $ 0.58
Diluted $ 0.78 $ 0.55
----------------------------------------------------------------------
Ratios were calculated on an annualized basis, as applicable.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion