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CHARTER ONE FINANCIAL, INC. REPORTS 37 PERCENT INCREASE IN NET INCOME FOR 1993 THIRD QUARTER

 CLEVELAND, Oct. 20 /PRNewswire/ -- Charter One Financial, Inc. (NASDAQ-NMS: COFI), holding company for Charter One Bank, F.S.B., today reported that third quarter 1993 net income increased 37 percent to $16.2 million or $1.04 per share from $11.8 million or $0.90 per share for the comparable 1992 quarter.
 Third quarter 1993 net income less net gains on sale of securities and adjusted for non-recurring expenses increased 61 percent to $15.8 million or $1.02 per share from $9.8 million or $0.75 per share for the third quarter of 1992.
 Charles John Koch, president and chief executive officer, said, "The increased year-to-year earnings were attributable to a 30 percent increase in net interest income and a 16 percent increase in recurring fee income."
 Koch added, "Compared to the second quarter of 1993, the third quarter's net yield on average interest earning assets decreased to 3.57 percent from 3.66 percent. However, net interest income was essentially unchanged due to an increase in average interest earning assets of $105 million during the quarter. Our third quarter annualized return on average assets was a strong 1.27 percent and return on average equity was 18.40 percent."
 For the nine months ended September 30, 1993, net income increased 68 percent to $52.1 million or $3.40 per share from $31.0 million or $2.38 per share last year. Net income for the 1993 period included a $7 million benefit resulting from the adoption of the Financial Accounting Standards (FAS) 109. Without the benefit of FAS 109, earnings per share increased 23.5 percent to $2.94 for the first nine months of 1993 from $2.38 for the same period in 1992.
 Koch further said, "Asset quality remains strong. Non-performing assets to total assets stood at 0.91 percent as of September 30, 1993. In addition, our exceptionally low net loan charge-off total for the third quarter was only $164,000 and $478,000 for the year to date, the latter equating to only 1.5 basis points on average loans outstanding. Allowances for loan losses to average loans and loan losses to non- performing loans stood at 1.10 percent and 110 percent respectively."
 As of September 30, 1993, tangible shareholders' equity to total assets increased to 6.87 percent from 5.67 percent as of September 30, 1992. Tangible shareholders' equity per share increased 23.1 percent to $23.64 from $19.20 and total assets increased 21.0 percent to $5.2 billion from $4.3 billion a year ago as a result of completing the merger with Women's Federal Savings Bank in the first quarter of 1993.
 As previously announced on Oct. 18, 1993, Charter One Financial, Inc., declared a 3 for 2 stock split and increased its regular quarterly dividend to $0.18 per common share on shares held prior to the stock split, which equates to $0.12 per share following the stock split. The new dividend represents a 12.5 percent increase over the previous dividend of $0.16 per share. The dividend will be payable on Nov. 19, 1993 to shareholders of record as of the close of business on Nov. 1, 1993. The stock split is also effective Nov. 19, 1993 to shareholders of record as of the close of business Nov. 1, 1993. The stock split was the second for Charter One Financial, Inc., since going public in 1988, the first having taken place in May, 1992.
 Charter One Financial, Inc.'s subsidiary, Charter One Bank, F.S.B., is Ohio's largest thrift institution, operating 96 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 Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 Interest Income:
 Loans $64,760 $58,224 $195,450 0?,712
 Mortgage-backed
 securities 21,210 21,586 62,273 68,427
 Investment securities 2,770 2,487 7,944 9,338
 Short-term investments
 and other 1,315 1,638 4,203 4,596
 Total Interest Income 90,055 83,935 269,870 263,073
 Interest Expense:
 Deposits 40,593 45,579 125,899 149,383
 Borrowings 5,802 4,747 15,181 14,163
 Total Interest Expense 46,395 50,326 141,080 163,546
 Net Interest Income 43,660 33,609 128,790 99,527
 Provision For Loan
 Losses 1,299 1,258 3,986 4,349
 Net Interest Income
 After Provision For
 Loan Losses 42,361 32,351 124,804 95,178
 Other Income:
 Loan servicing fees 1,509 1,523 4,351 4,907
 Service fees
 and other charges 3,708 2,949 10,469 8,699
 Net gain from sale of:
 Loans and mortgage-backed
 securities 1,014 4,586 3,216 5,397
 Real estate 157 42 254 127
 Other 111 27 442 307
 Total Other Income 6,449 9,127 18,732 19,437
 Other Expenses:
 Salaries and employee
 benefits 10,135 9,489 31,219 27,383
 Severance and
 termination costs 0 1,253 3,300 1,253
 Net occupancy and
 equipment 3,365 2,913 9,927 8,405
 Federal deposit insurance
 premiums 2,423 2,044 5,664 6,297
 Data processing 1,177 997 3,660 3,047
 Advertising 759 856 2,486 2,322
 State franchise tax 904 667 2,713 2,002
 Other administrative
 expenses 5,454 5,397 15,916 15,987
 Total Other Expenses 24,217 23,616 74,885 66,696
 Income Before Federal
 Income Taxes and
 Cumulative Effect of
 Change in Accounting
 Principle 24,643 17,862 68,651 47,919
 Federal Income Taxes 8,480 6,031 23,600 16,885
 Income Before Cumulative
 Effect of Change in
 Accounting Principle 16,163 11,831 45,051 31,034
 Cumulative Effect of
 Change in Accounting
 Principle for Income
 Taxes 0 0 7,020 0
 Net Income 16,163 11,831 52,071 31,034
 Earnings Per Common and
 Common Equivalent Share:
 Income before Cumulative Effect
 of Change in Accounting
 Principle $ 1.04 $ 0.90 $ 2.94 $ 2.38
 Net Income $ 1.04 $ 0.90 $ 3.40 $ 2.38
 Average Common and Common
 Equivalent Shares
 Outstanding 15,492,733 13,144,088 15,308,957 13,043,782
 Return on average
 assets before
 cumulative effect
 of change in accounting
 principle 1.27 pct. 1.11 pct. 1.21 pct. .97 pct.
 Return on average
 equity before
 cumulative effect
 of change in accounting
 principle 18.40 pct. 19.93 pct. 18.11 pct. 18.29 pct.
 Consolidated Statements of Financial Condition
 (In thousands)
 (unaudited)
 September 30, December 30,
 1993 1992
 Assets:
 Cash and cash equivalents $241,319 $219,600
 Other interest bearing
 deposits with banks and
 other institutions 200 200
 Investment securities 186,205 134,703
 Mortgage-backed securities 1,385,288 1,197,864
 Loans, net 3,187,343 2,573,721
 Accrued interest receivable 29,297 26,240
 Federal Home Loan Bank stock 36,855 29,930
 Premises and equipment - at
 cost less accumulated
 depreciation 54,259 48,477
 Real estate owned:
 Acquired in settlement of
 loans 15,974 16,941
 Other assets 27,545 14,174
 Total Assets 5,164,285 4,261,850
 Liabilities And
 Shareholders' Equity:
 Deposits:
 Checking and NOW accounts $365,059 $322,978
 Passbooks and money market
 accounts 1,275,759 1,066,714
 Certificates 2,508,900 2,253,735
 Total deposits 4,149,718 3,643,427
 Advance payments by
 borrowers for taxes and
 insurance 8,767 21,558
 Accrued interest payable 14,119 10,777
 Accrued expenses and
 other liabilities 30,659 28,563
 Long-term debt and other
 borrowings 605,280 304,915
 Commitments
 Total Liabilities 4,808,543 4,009,240
 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;
 90,000,000 shares authorized;
 14,997,335 and 12,609,564 issued
 and outstanding at September 30, 1993
 and December 31, 1992,
 respectively 150 126
 Additional paid-in capital 126,650 70,325
 Retained earnings -
 substantially restricted 229,059 183,561
 Borrowings of Employee
 Stock Ownership Plan (116) (1,402)
 Total Shareholders' Equity 355,742 252,610
 Total Liabilities And
 Shareholders' Equity 5,164,285 4,261,850
 Other Financial Data
 Comparison of non-performing assets
 (dollars in thousands)
 9/30/93 12/31/92 6/30/92
 Non-performing loans $ 31,170 $ 27,208 $ 36,542
 Repossessed assets 15,974 16,941 16,026
 Total non-performing assets $ 47,144 $ 44,149 $ 52,568
 Total non-performing loans
 to total loans .98 pct. 1.08 pct. 1.43 pct.
 Non-performing assets to
 total assets .91 pct. 1.04 pct. 1.24 pct.
 Allowance for loan losses to
 non-performing loans 110.09 pct. 105.80 pct. 76.58 pct.
 Allowance for loan losses to
 loans before allowance 1.07 pct. 1.13 pct. 1.07 pct.
 Movement of Allowance for Loan Losses
 (in thousands)
 Mortgage Consumer Business Total
 Balance at 6/30/93 $ 27,813 $ 1,284 $ 4,083 $ 33,180
 Provision 784 70 445 1,299
 Charge-off (142) (52) 0 (194)
 Recoveries 19 11 0 30
 Balance at 9/30/93 $ 28,474 $ 1,313 $ 4,528 $ 34,315
 Balance at 6/30/92 $ 22,704 $ 1,099 $ 3,036 $ 26,839
 Provision 480 73 705 1,258
 Charge-off (171) (52) (285) (508)
 Recoveries 25 2 1 28
 Balance at 9/30/92 $ 23,038 $ 1,122 $ 3,457 $ 27,617
 -0- 10/20/93
 /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 -- CL028 -- 4572 10/20/93 12:22 EDT
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Date:Oct 20, 1993
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