CALUMET BANCORP ANNOUNCES FIRST QUARTER EARNINGS.DOLTON Dolton, village (1990 pop. 23,930), Cook co., NE Ill., on the Little Calumet River, S of Chicago; settled 1832, inc. 1892. Steel, aluminum products, glass, and chemicals are manufactured there. , Ill.--(BUSINESS WIRE)-- April 25, 1995-- Calumet Calumet, region, United States Calumet (kăl`y  mĕt'), industrialized region of NW Ind. and NE Ill., along the south shore of Lake Michigan. Bancorp,
Inc. (NASDAQ/NMS:CBCI), today reported net income of $1.5 million for
the first quarter of 1995, compared to $1.7 million net income for the
first quarter of 1994. Earnings per share of common stock for the first
quarter of 1995 were $0.51, compared to $0.56 for the first quarter of
1994.During the three months ended March 31, 1995, losses from the sale of securities available for sale amounted to $112,000, compared to gains of $617,000 for the three months ended March 31, 1994, a decrease of $729,000. Losses from the sale of securities cost $0.02 per share during the first quarter of 1995, whereas gains contributed $0.13 per share during the first quarter of 1994. Exclusive of securities losses and gains, 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 were $0.53 for the first quarter of 1995, compared to $0.43 in 1994. Income from operations improved primarily as a result of an increasing net interest margin, which for the first quarter of 1995 was 4.30 percent of average interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , compared to 3.85 percent for the first quarter of 1994. The average yield on interest earning assets increased to 8.09 percent during the first quarter of 1995, from 7.15 percent in 1994, while the average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased to 4.53 percent, from 3.84 percent for these same periods, resulting in an increase in the rate spread to 3.56 percent in 1995, from 3.31 percent in 1994. However, during the first quarter of 1995 the Company collected $330,000 of nonaccrued interest on two seriously delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. loans. This had the effect of increasing both the average yield on interest earning assets and the rate spread by 0.27 percent, and the net interest margin by 0.28 percent, during the first quarter of 1995. The $330,000 interest collected, net of an income tax provision of $124,000, increase d earnings per share by $0.07 for the first quarter of 1995. Management expects the interest rate spread to continue to decrease in 1995 as the cost of funds rises more rapidly than the yield on interest earning assets. Beginning in 1995, the Company adopted Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No. 114 "Accounting by Creditors for Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of a Loan," as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by Statement No. 118 "Accounting by Creditors For Impairment of a Loan - Income Recognition and Disclosure." Under the new standard, the 1995 allowance for loan losses that are related to loans that are identified for evaluation in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement 114 is based on discounted cash flows using the loan's initial effective interest rate or the fair value of the collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although for certain collateral dependent loans. Prior to 1995, the allowance for loan losses that are related to these loans was based on undiscounted cash flows or the fair value of the collateral for collateral dependent loans. The adoption of this statement did not result in any material effect on operating results or financial position during the first quarter of 1995. The Company's quarterly provision for losses on loans remained at $200,000 for the first quarter of 1995, the same as 1994. The allowance for loan losses increased to 1.29 percent of total loans at March 31, 1995, from 1.23 percent of total loans at Dec. 31, 1994. 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. to total loans decreased to 1.02 percent at March 31, 1995, from 1.33 percent at Dec. 31, 1994, while non- non- word element [L.]not . non- pref. Not: noninvasive. performing assets to total assets decreased to 1.14 percent at March 31, 1995, from 1.36 percent at Dec. 31, 1994. The allowance for loan losses amounted to 126.74 percent of non-performing loans at March 31, 1995, increased from 92.52 percent at Dec. 31, 1994. Net recoveries credited to the allowance for loan losses amounted to $30,000 during the first quarter of 1995, compared to net recoveries of $7,000 during the first quarter of 1994. Losses on the sale of real estate held, acquired through foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , of $130,000 during the first quarter of 1995, compares to gains of $16,000 during the first quarter of 1994. Return on average assets for the first quarter of 1995 was 1.19 percent, compared to 1.33 percent for the same quarter last year. Return on average 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. for the first quarter of 1995 was 7.41 percent, compared to 8.97 percent for the same quarter last year. If net gains and losses on sales of securities in both years were excluded from income, as well as the $330,000 nonaccrued interest collected in the first quarter of 1995, return on average assets would be 1.08 percent for the first quarter of 1995, compared to 1.02 percent for the first quarter of 1994. Return on equity would be 6.73 percent and 6.92 percent, respectively, for these same two periods. Other income decreased to $203,000 during the first quarter of 1995, from $1.0 million in the first quarter of 1994, primarily due to the $729,000 decrease in gains on sales of securities. Fees on loans sold increased to $158,000 in 1995, from $97,000 in 1994, primarily due to an increase in volume of loans sold in 1995. During the first quarter of 1995 the Company sold its loan origination 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. office in Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. , N.M., in order to concentrate its loan origination efforts in other areas. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased during the first quarter of 1995 to $2.8 million, from $2.9 million during the first quarter of 1994. Operating expenses as a percent of average assets increased to 2.26 percent in 1995, from 2.23 percent in 1994, primarily as the result of $451,000 in bonuses paid in the first quarter of 1995, compared to $134,000 in bonuses paid in the first quarter of 1994. Increased occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal attributed to loan origination offices was also a factor. During the first quarter of 1995 the Company announced its intention to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. 140,000 shares of its common stock under an ongoing share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The Company did not repurchase any shares during the first quarter of 1995. The Company has 2,792,692 shares (including 194,494 unearned ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). shares) of common stock outstanding on March 31, 1995, with a book value of $29 per share. Calumet Bancorp, Inc. is the holding company of Calumet Federal Savings and Loan Association Federal Savings and Loan Association An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. 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. , which operates five 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. offices -- in Dolton, Lansing Lansing. 1 Village (1990 pop. 28,086), Cook co., NE Ill., a suburb of Chicago, near the Ind. line; inc. 1893. Among the city's industries are meatpacking, food processing, and the manufacture of metal products. 2 City (1990 pop. , Sauk Sauk: see Sac and Fox. Sauk or Sac Algonquian-speaking North American Indian people closely related to the Fox and Kickapoo who traditionally inhabited the region of what is now Green Bay, Wis., U.S. Village, and two in southeastern south·east n. 1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north. 2. An area or region lying in the southeast. 3. Chicago. -0-
CALUMET BANCORP, INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
March 31, December 31
1995 1994
(Unaudited)
--------------------------------
Financial Condition Highlights:
Total assets $ 495,285 $ 504,026
Investment securities available-
for-sale 67,743 73,491
Investment securities held-to-
maturity 30,262 31,058
Loans receivable, net 361,314 360,578
Real Estate held for sale acquired
through foreclosure 1,987 2,081
Investment in limited partnerships 16,066 16,911
Deposits 349,518 346,668
Federal Home Loan Bank advances 56,335 70,335
Stockholders' equity 80,990 78,286
Common shares outstanding 2,792,692 2,791,632
Stockholders' equity per share $ 29.00 $ 28.04
Selected Asset Quality Ratios:
Non-performing loans $ 3,676 $ 4,787
Allowance for loan losses 4,659 4,429
Non-performing loans to total loans 1.02% 1.33%
Non-performing assets to total assets 1.14% 1.36%
Allowance for loan losses to non-
performing loans 126.74% 92.52%
Allowance for loan losses to non-
performing assets 82.27% 64.49%
Three Months Ended March 31,
1995 1994
-----------------------------
(Unaudited)
Operating Highlights:
Net interest income $ 5,178 $ 4,754
Provision for losses on loans 200 200
Non-interest income 203 1,012
Non-interest expense 2,814 2,874
Income tax expense 889 976
Net Income $ 1,478 $ 1,716
Operating Ratios (Annualized)
Interest rate spread 3.56% 3.31%
Net interest margin 4.30% 3.85%
Return on average assets 1.19% 1.33%
Return on average equity 7.41% 8.97%
Non-Interest expense to average
assets 2.26% 2.23%
Stock Price this period:
High $ 26.75 $ 22.67
Low $ 21.00 $ 20.17
Close $ 26.50 $ 20.17
Earnings per share $ 0.51 $ 0.56 Weighted average shares of common stock and common stock equivalents 2,920,443 3,070,508 Average unearned ESOP shares included above 194,494 222,785 Average assets $ 497,191 $ 514,394 Average interest earning assets 482,114 494,326 Average stockholders' equity 79,761 76,530
CALUMET BANCORP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in thousands)
March 31, December 31,
1995 1994
(unaudited)
------------------------------
Assets:
Cash $ 2,711 $ 2,278
Interest bearing deposits 7,812 7,072
------------------------------
CASH AND CASH EQUIVALENTS 10,523 9,350
Investment securities available-
for-sale 67,743 73,491
Investment securities held-to-
maturity 30,262 31,058
Loans receivable, net 361,314 360,578
Real estate held for sale acquired
through foreclosure 1,987 2,081
Office properties and equipment,
net 4,434 4,516
Investment in limited partnerships 16,066 16,911
Other assets 2,956 6,041
-------------------------------
TOTAL ASSETS $ 495,285 $ 504,026
===============================
Liabilities:
Deposits $ 349,518 $ 346,668
Federal Home Loan Bank
advances 56,335 70,335
Advance payments by borrowers
for taxes and insurance 2,356 3,266
Income taxes 1,506 1,070
Miscellaneous liabilities 4,580 4,401
-------------------------------
TOTAL LIABILITIES 414,295 425,740
Stockholders' Equity:
Preferred stock, $.01 par value,
2,000,000 shares authorized 0 0
Common stock, $.01 par value,
4,200,000 shares authorized,
3,594,886 and 3,593,826 shares
issued and outstanding 36 36
Additional paid-in-capital 34,505 34,494
Net unrealized losses on
securities available-for-sale,
net income tax benefit of $562
and $1,269 (843) (1,953)
Retained earnings -- substantially
restricted 63,931 62,453
Less: Unearned ESOP shares (1,909) (1,980)
Stock held for management
recognition plan (376) (410)
Treasury stock (802,194 and
and 802,194 shares) (14,354) (14,354)
------------------------------
TOTAL STOCKHOLDERS' EQUITY 80,990 78,286
-----------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 495,285 $ 504,026
=============================
CALUMET BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands, (Unaudited) Three Months ended March 31,
except per share data) 1995 1994
--------------------------
Interest Income:
Loans $ 8,036 $ 6,908
Investment securities 1,718 1,933
--------------------------
Total Interest Income 9,754 8,841
Interest Expense:
Deposits 3,670 3,742
Federal Home Loan Bank advances
and other borrowings 906 345
-------------------------
Total interest expense 4,576 4,087
-------------------------
Net Interest income 5,178 4,754
Provision for losses on loans 200 200
-------------------------
Net interest income after provision
for losses on loans 4,978 4,554
Other Income:
Fees on loans sold 158 97
(Loss) gain on sale of real estate (130) 16
Net (loss) gain on sale of
securities (112) 617
Income from limited partnerships 68 39
Insurance commissions 37 32
Other 182 211
-------------------------
Total other income 203 1,012
Other Expenses:
Compensation 1,616 1,673
Occupancy 352 326
Federal insurance premiums 203 220
Other general and administrative 643 655
--------------------------
Total other expenses 2,814 2,874
--------------------------
Income before income taxes 2,367 2,692
Income taxes 889 976
---------------------------
Net income $ 1,478 $ 1,716
===========================
Earnings per share $ 0.51 $ 0.56
===========================
CONTACT: Calumet Bancorp Inc. John Garlanger, 708/841-9010 |
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