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CHARTER ONE FINANCIAL, INC. REPORTS 18 PERCENT INCREASE IN NET INCOME FOR 1992 FOURTH QUARTER

 CLEVELAND, Jan. 28 /PRNewswire/ -- Charter One Financial, Inc. (NASDAQ/NMS: COFI), holding company for Charter One Bank, F.S.B., today reported that net income for the fourth quarter of 1992 was up 18 percent to $12.3 million, or 93 cents per share, compared to $10.4 million, or 80 cents per share, for the 1991 comparable period, adjusted for the 3 for 2 stock split and the First American Savings Bank merger. Net income after eliminating gains on sale of securities, net of taxes, increased 41.7 percent to $11.2 million, or 85 cents per share, from $7.8 million, or 60 cents per share, in the 1991 fourth quarter.
 Charles John Koch, president and chief executive officer said, "Our fourth quarter earnings increase was attributable to a 19 percent increase in net interest income. Our annualized 1.15 percent return on average assets was a new record high, and the high 19.83 percent return on average equity further emphasized a very strong fourth quarter performance."
 For the year ended December 31, 1992, net income increased to $43.3 million, or $3.31 per share, from $40.3 million, or $3.15 per share, for 1991. More importantly, net income, after elimination of gains on sale, net of taxes, increased 41.8 percent to $2.95 per share from $2.08 per share for 1991. Return on average assets was 1.01 percent and return on average equity was 18.70 percent.
 Koch said, "Our lending performance was exceptionally strong. In addition to a large number of refinances, we also recorded a substantial increase in the number of adjustable-rate mortgage originations. In the fourth quarter, we originated $281 million in loans, an increase of 56 percent over the fourth quarter of 1991. For the year, we established a new high in lending with total volume of $1.1 billion, a 55 percent increase over 1991."
 Koch stated, "Although the Bank's ratio of nonperforming assets to total assets was already a low 1.24 percent as of the end of the third quarter of 1992, we further decreased the ratio 16 percent during the fourth quarter to 1.04 percent. Allowances for loan losses to nonperforming loans now stands at 106 percent, and allowances for loan losses to total loans is 1.1 percent. Net chargeoffs of loans and assets for calendar year 1992 was a low 0.09 percent of assets."
 Koch added, "We continued our acquisition strategy by completing the merger of First American Savings Bank of Canton, Ohio on September 17, 1992. The assimilation of First American into Charter One Bank is nearly concluded, and we anticipate the transaction will be accretive to earnings in 1993. On September 14, 1992, we announced the acquisition of Women's Federal Savings Bank of Cleveland and on January 21, 1993, the transaction was completed. Women's Federal earned $13.9 million in 1992. Even after purchase accounting adjustments and absorbing nonrecurring merger related expenses in the first quarter, we believe this transaction will add to Charter One Financial's earnings during the remainder of 1993. Under terms of the agreement, Charter One paid $23.2 million in cash and issued 2.2 million shares of common stock."
 As of December 31, 1992, Charter One Financial's assets stood at $4.3 billion and in January 1993, with the addition of Women's Federal, assets grew to approximately $5.1 billion.
 Koch concluded, "As of December 31, 1992, tangible shareholders' equity to total assets was 5.93 percent, and tangible book value was $20.03 per share."
 Charter One Financial, Inc.'s subsidiary, Charter One Bank, F.S.B., is Ohio's largest thrift institution, operating 103 offices in a 14 county area in Ohio, serving the Greater Cleveland, Akron, Canton, Toledo, Youngstown and Portsmouth markets.
 Charter One Financial, Inc. and Subsidiaries
 Consolidated Statements of Income
 (dollars in thousands, except per share data)
 (unaudited)
 Three Months Ended Twelve Months Ended
 December 31, December 31,
 1992 1991(1) 1992 1991(1)
 Interest Income:
 Loans $58,595 $67,671 $239,307 $256,024
 Mortgage-backed
 securities 21,268 21,248 89,695 73,043
 Investment securities 2,046 4,548 11,384 20,561
 Short-term investments
 and other 1,714 3,301 6,310 8,353
 Total Interest Income 83,623 96,768 346,696 357,981
 Interest Expense:
 Deposits 42,205 60,569 191,588 223,065
 Long-term borrowings 4,920 5,479 19,083 27,563
 Short-term borrowings 0 69 0 488
 Total Interest Expense 47,125 66,117 210,671 251,116
 Net Interest Income 36,498 30,651 136,025 106,865
 Provision For Loan
 Losses 2,195 2,146 6,544 7,035
 Net Interest Income
 After Provision For
 Loan Losses 34,303 28,505 129,481 99,830
 Other Income:
 Loan servicing fees 1,343 1,883 6,250 7,029
 Other service fees
 and charges 3,154 2,607 11,853 8,256
 Gain (loss) from sale of:
 Loans and mortgage-backed
 securities 1,616 195 7,013 3,248
 Investment securities (7) 3,718 (7) 17,488
 Real estate 28 15 155 121
 Other 147 607 454 725
 Total Other Income 6,281 9,025 25,718 36,867
 Other Expenses:
 Salaries and employee
 benefits 8,523 9,874 37,159 33,237
 Net occupancy and
 equipment 2,708 2,753 11,113 9,388
 Federal deposit insurance
 premiums 1,963 1,603 8,260 6,705
 Data processing 995 973 4,042 3,753
 Advertising 1,075 563 3,397 2,209
 Other administrative
 expenses 6,766 5,225 24,755 18,775
 Total Other Expenses 22,030 20,991 88,726 74,067
 Income Before Federal
 Income Taxes 18,554 16,539 66,473 62,630
 Federal Income Taxes 6,280 6,167 23,165 22,317
 Net Income 12,274 10,372 43,308 40,313
 Earnings Per Common and Common
 Equivalent Share
 Net Income 0.93 0.80 3.31 3.15
 Average Common and Common
 Equivalent Shares
 Outstanding 13,189,119 12,895,094 13,101,345 12,786,973
 Return on average
 assets 1.15 0.94 1.01 1.03
 Return on average
 equity 19.83 19.84 18.70 20.78
 (1) Restated for the pooling of interest merger with First American Bancorp.
 Consolidated Statements of Financial Condition
 (In thousands)
 (unaudited)
 December 31, December 31,
 1992 1991(1)
 Assets:
 Cash and cash
 equivalents $219,600 $149,813
 Other interest bearing
 deposits with banks and
 other institutions 200 102,855
 Investment securities 134,703 171,987
 Mortgage-backed securities 1,197,864 1,164,673
 Loans, net 2,573,721 2,612,997
 Accrued interest
 receivable 26,240 34,931
 Federal Home Loan
 Bank stock 29,930 27,442
 Premises and equipment - at
 cost less accumulated
 depreciation 48,477 50,680
 Real estate owned:
 Acquired in settlement of
 loans 16,941 19,910
 Other assets 14,174 23,795
 Total Assets 4,261,850 4,359,083
 Liabilities And
 Shareholders' Equity:
 Deposits:
 Checking and NOW accounts 322,978 238,768
 Passbooks and money market
 accounts 1,066,714 865,815
 Certificates 2,253,735 2,727,676
 Total deposits 3,643,427 3,832,259
 Advance payments by
 borrowers for taxes and
 insurance 21,558 22,869
 Accrued interest payable 10,777 15,661
 Accrued expenses and
 other liabilities 28,563 45,491
 Long-term debt and other
 borrowings 304,915 230,798
 Commitments
 Total Liabilities 4,009,240 4,147,078
 Shareholders' Equity:
 Preferred stock, $0.01 par
 value per share;
 10,000,000 shares authorized;
 none issued
 Common stock, $0.01 par
 value per share;
 30,000,000 shares authorized;
 12,609,564 and 12,451,218 issued
 and outstanding at
 December 31, 1992 and
 December 31, 1991,
 respectively 126 125
 Additional paid-in
 capital 70,325 69,436
 Retained earnings -
 substantially restricted 183,561 145,414
 Borrowings of Employee
 Stock Ownership Plan (1,402) (2,970)
 Total Shareholders' Equity 252,610 212,005
 Total Liabilities And
 Shareholders' Equity 4,261,850 4,359,083
 (1) Restated for the pooling of interest merger with First American Bancorp.
 Other Financial Data
 Comparison of non-performing assets
 (dollars in thousands)
 12/31/92 12/31/91(1)
 Non-performing loans 27,208 34,401
 Repossessed assets 16,941 19,910
 Total non-performing assets 44,149 54,311
 Total non-performing loans
 to total loans 1.06 1.36
 Non-performing assets to
 total assets 1.04 1.25
 Allowance for loan losses to
 non-performing loans 105.80 69.33
 Allowance for loan losses to
 loans before allowance 1.11 0.94
 Movement of Allowance for Loan Losses (1)
 (in thousands)
 Mortgage Consumer Business Total
 Balance at 9/30/92 23,038 1,122 3,457 27,617
 Provision 1,119 81 995 2,195
 Charge-off (198) (38) (960) (1,196)
 Recoveries 166 3 0 169
 Balance at 12/31/92 24,125 1,168 3,492 28,785
 Balance at 9/30/91 18,917 861 2,256 22,034
 Provision 1,237 283 626 2,146
 Charge-off (229) (101) (62) (392)
 Recoveries 44 6 11 61
 Balance at 12/31/91 19,969 1,049 2,831 23,849
 Loan Originations
 (in thousands)
 Three Months Ended Twelve Months Ended
 December 31, December 31,
 1992 1991(1) 1992 1991(1)
 Loan originations:
 Permanent:
 One-to four-family 213,040 100,998 757,307 362,322
 Multi-family 1,548 4,675 21,560 12,875
 Commercial 6,832 3,250 14,460 16,472
 Land 880 4,616 2,865 6,835
 Consumer Line of
 credit draws 18,096 21,217 91,078 89,183
 Consumer 9,302 6,019 43,498 31,051
 Business Line of
 credit draws 8,968 13,910 47,605 53,743
 Business 1,468 6,027 10,377 14,226
 Total permanent Loans 260,134 160,712 988,750 586,707
 Construction:
 One-to four-family 19,021 18,709 87,635 95,936
 Multi-family 1,153 375 1,757 1,486
 Commercial 320 0 3,255 14,181
 Total construction
 Loans 20,494 19,084 92,647 111,603
 Total permanent and
 construction loans
 originated 280,628 179,796 1,081,397 698,310
 (1) All 1991 amounts restated for the First American Bancorp pooling of interest merger.
 -0- 1/28/93
 /CONTACT: Charles John Koch, Leonard A. Krysinski or James E. Pietrangelo of Charter One Financial, Inc., 216-566-5300; or William L. Dupuy of Edward Howard & Co., 216-781-2400, for Charter One Financial, Inc./
 (COFI)


CO: Charter One Financial, Inc. ST: Ohio IN: FIN SU: ERN

BM -- CL022 -- 0446 01/28/93 16:27 EST
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