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CHARTER ONE FINANCIAL, INC. REPORTS REPORTS IMPROVED 1992 THIRD QUARTER RESULTS

 CHARTER ONE FINANCIAL, INC. REPORTS
 REPORTS IMPROVED 1992 THIRD QUARTER RESULTS
 CLEVELAND, Oct. 29 /PRNewswire/ -- Charter One Financial, Inc. (NASDAQ/NMS: COFI), holding company for Charter One Bank, F.S.B., today reported that net income for the third quarter of 1992 was $11.8 million, or 90 cents per share, compared to $10.8 million, or 84 cents per share for the 1991 comparable period, adjusted for a 3 for 2 stock split and the First American Savings Bank merger. Core earnings, defined as net income after eliminating gains on sale of securities - net of tax, equal to 23 cents per share, and after merger related expenses and writeoffs of real estate assets, net of tax, of 14 cents per share, increased 56 percent to 81 cents per share compared to 52 cents per share a year ago.
 Charles John Koch, president and chief executive officer, said, "Our solid third quarter results were primarily driven by a 30 percent increase in net interest income. Net yield on average interest earning assets increased significantly to 3.29 percent from 2.87 percent for the third quarter of 1991 and 3.28 percent for the second quarter of 1992. Our annualized 1.11 percent return on average assets and 19.93 percent return on average equity further emphasizes our third quarter achievements."
 For the nine months ended Sept. 30, 1992, net income increased 3.7 percent to $31.0 million compared to $29.9 million in last year's period. Core earnings per share, defined as net income after elimination of gains on sale - net of tax and merger related expenses and writeoffs of real estate assets, net of tax, increased 54 percent to $2.33 from $1.51 for the first 9 months of 1991. Annualized return on average assets was 0.97 percent and return on average equity 18.19 percent.
 Koch said, "With the high volume of refinances and increased adjustable rate mortgage originations, the Bank's loan production remains strong. Our total lending volume for the third quarter was $229.3 million compared to $173.7 million for the third quarter of 1991, an increase of 32 percent. Of the total, residential permanent loan originations rose 98 percent to $151.6 million from $76.5 million a year ago."
 Koch stated, "The quality of the Bank's loan portfolio is excellent. The ratio of nonperforming assets to total assets was 1.24 percent, up slightly from 1.22 percent for the prior quarter. This compares very favorably to the 4.22 percent national average as of June 30, 1992 for all publicly-traded thrifts. Additionally, subsequent to the end of the quarter, we resolved a major nonperforming loan included in the Bank's ratio. If this resolution had occurred prior to the end of the quarter, the Bank's ratio of nonperforming assets would have been reduced to 1.03 percent."
 Koch added, "The Bank's operating expenses were negatively affected during the quarter by $1.6 million associated with one-time First American merger expenses and $848,000 in writeoffs of real estate assets, attributable primarily to the acquisition."
 Koch concluded, "As of Sept. 30, 1992, tangible shareholders' equity to total assets increased to 5.67 percent and tangible book value was $19.20 per share."
 Charter One Financial, Inc.'s subsidiary, Charter One Bank, F.S.B. has total assets of $4.3 billion and operates 92 offices in a 14 county area in Ohio, serving the Greater Cleveland, Akron, Canton, Toledo, Youngstown and Portsmouth markets.
 On Oct. 26, 1992, Charter One announced the execution of a definitive agreement providing for the acquisition of Women's Federal Savings Bank of Cleveland, Ohio. Under the terms of the Agreement, Women's Federal will be merged into Charter One Bank. The acquisition is Charter One's fourth in the past 18 months and the 14th since 1980. With assets of $800 million, Women's operates 11 offices in the Greater Cleveland area. Regulatory applications will be filed within the next two weeks and, subject to regulatory approvals, fairness opinions, satisfaction of a number of conditions and Women's Federal's shareholder approval, completion of the transaction is expected to occur in the first quarter of 1993.
 Operating Highlights
 (In thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Interest income $83,935 $85,819 $263,073 $261,213
 Interest expense 50,326 59,917 163,546 184,999
 Net interest income 33,609 25,902 99,527 76,214
 Provision for
 loan losses 1,258 1,650 4,349 4,889
 Net interest income
 after provision for
 loan losses 32,351 24,252 95,178 71,325
 Gain from sale of
 investments, loans
 and mortgage-backed
 securities 4,586 6,598 5,397 16,823
 Other income 4,541 4,201 14,040 11,019
 Other expenses 23,616 18,470 66,696 53,076
 Income before federal
 income taxes 17,862 16,581 47,919 46,091
 Federal income taxes 6,031 5,777 16,885 16,150
 Net income $11,831 $10,804 $ 31,034 $ 29,941
 Net income per common
 and common stock
 equivalent share: $ 0.90 $ 0.84 $ 2.37 $ 2.35
 Weighted average number
 of common and common
 equivalent shares
 outstanding 13,144,088 12,831,997 13,072,087 12,750,930
 Balance Sheet Highlights
 (In thousands)
 9/30/92 9/30/91 12/31/91
 Total assets $4,250,921 $4,495,732 $4,359,083
 Total loans and mortgage-
 backed securities 3,725,675 3,760,675 3,777,670
 Deposits 3,682,532 3,925,599 3,832,259
 Shareholders' equity 241,040 201,902 212,005
 -0- 10/29/92
 /CONTACT: Charles John Koch, Leonard A. Krysinski or James E. Pietrangelo, both 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


KK -- CL013 -- 6490 10/29/92 10:34 EST
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Date:Oct 29, 1992
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