Printer Friendly

CITADEL HOLDING CORPORATION REPORTS RESULTS

 GLENDALE, Calif., April 26 /PRNewswire/ -- Citadel Holding Corporation (AMEX: CDL) announced today net earnings of $135,000 for the first quarter of 1993 ($0.04 per share), compared to net earnings of $6,055,000 for the same period in 1992 ($1.84 per share).
 The decline in net earnings from the first quarter of 1992 to the first quarter of 1993 stems from a reduction in net interest income (from $35.2 million to $28.8 million), a rise in operating expenses (from $18.7 million to $21.5 million) and higher provisions for estimated loan losses (from $7.0 million to $7.5 million) over the same period. Per share earnings was also affected by the doubling in the number of shares of common stock outstanding between March 31, 1992 and March 31, 1993. The Company increased its number of outstanding shares from 3.3 million shares to 6.6 million shares following the successful completion of the Company's rights offering to stockholders last month.
 From March 31, 1992 to March 31, 1993, nonperforming assets (NPAs) increased from $177.6 million (3.5 percent of assets) to $271.1 million (5.7 percent of assets). Over the same period, the Company's general valuation allowances (GVAs) for estimated loan and real estate losses increased from $54.8 million (1.2 percent of total loans and REO) to $75.0 million (1.8 percent of total loans and REO). The ratio of GVAs to NPAs decreased to 26.6 percent at March 31, 1993 from 30.8 percent at March 31, 1992 as a result of the increase in NPAs.
 Loan modifications or restructurings associated with concessions made in response to borrower financial difficulties have caused the loans in question to be categorized as troubled debt restructurings (TDRs). TDRs increased from $15.0 million (0.3 percent of total assets) at March 31, 1992 to $51.1 million (1.1 percent of total assets) at March 31, 1993. Of the total TDRs at March 31, 1993, $12.6 million were not classified assets for regulatory purposes and were paying interest at market rates.
 Richard M. Greenwood, President and Chief Executive Officer, said: "The Company's earnings performance continues to reflect the Southern California recession and the declines in rents and real estate values. We do not anticipate any improvement in the near future."
 At March 31, 1993, approximately 91 percent of the Company's total loan portfolio was comprised of loans secured by residential California real estate, predominantly in Southern California. The Company has emphasized California apartment lending (2 units or more), and approximately 71 percent of the total loan portfolio was comprised of such loans at March 31, 1993.
 Net interest income for the first quarter of 1993 was $28.8 million, a $6.4 million decrease from the same period in 1992. The decline reflects primarily a narrowing of the net interest margin from 2.71 percent to 2.43 percent due to the effect of higher NPAs and a reduced balance sheet size. At March 31, 1993 total assets were $4.8 billion, a decrease from $5.0 billion of assets at March 31, 1992.
 Provisions for estimated loan and real estate losses remained high, reflecting the continuing poor real estate climate in Southern California. Operating expenses rose from $18.7 million to $21.5 million mainly due to higher staffing levels. The increase in personnel reflects the Company's strategy in managing proactively the troubled assets portfolio, as well as in meeting customers retail financial needs. Higher operating expenses and lower net interest income caused the Company's operating efficiency ratio to deteriorate from 49.1 percent for the first quarter of 1992 to 70.7 percent for the first quarter of 1993.
 Other income declined slightly from $1.0 million in 1992 to $.5 million in 1993, with the increase in losses from the Company's real estate owned (REO) portfolio more than offsetting the higher fees earned primarily on the sale of investment products.
 At March 31, 1993, Fidelity Federal Bank's tangible capital ratio was 4.63 percent, its core capital ratio was 4.70 percent and its risk- based capital ratio was 10.39 percent. These ratios are all higher than they were one year earlier and exceed regulatory minimums. Part of the increase is due to the contribution of $18 million to the capital of Fidelity Federal Bank out of the $31.5 million in net proceeds from the Company's rights offering. Although Fidelity Federal Bank exceeds all capital requirements currently in effect and is considered "adequately capitalized" under Office of Thrift Supervision regulations, no assurances can be made that regulatory agencies will not continue to pressure the industry to increase capital ratios in future periods.
 The stock of Citadel Holding Corporation is traded on the American Stock Exchange under the symbol CDL.
 CITADEL HOLDING CORPORATION AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Subject to year-end audit)
 (Dollars in thousands, except per share amounts)
 Quarter ended
 March 31
 1993 1992
 Interest income:
 Loans $ 73,338 $ 101,268
 Mortgage-backed securities 3,426 665
 Investment securities and other 1,423 2,985
 Total interest income 78,187 104,918
 Interest expense:
 Deposits 33,286 51,065
 FHLB Advances 5,144 6,219
 Other borrowings 9,124 10,630
 Subordinated notes 1,843 1,843
 Total interest expense 49,397 69,757
 Net interest income 28,790 35,161
 Provision for estimated loan losses 7,500 6,970
 Net interest Income after Provision
 for Estimated Loan Losses 21,290 28,191
 Other Income (Expense):
 Loan and other fees 2,018 1,694
 Gains on sales of loans, net 395 353
 Provision for estimated real
 estate losses (1,000) (2,030)
 Real estate operations, net (3,318) (581)
 Other income (expense) 2,441 1,536
 Total 536 972
 Operating Expense:
 Compensation and benefits 11,397 8,831
 Occupancy 3,025 2,965
 FDIC insurance 1,887 2,180
 Professional Services 1,655 1,455
 Office-related expenses 1,371 1,199
 Other general and administrative 2,115 2,106
 Total 21,450 18,736
 Earnings Before Income Taxes 376 10,427
 Income tax expense 241 4,372
 Net Earnings $ 135 $ 6,055
 Net Earnings Per Share $ .04 $ 1.84
 CITADEL HOLDING CORPORATION AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 At or for the quarter ended March 31 1993 1992
 Financial Data for the period:
 Real estate loans funded $ 79,294 $ 103,826
 (Decrease) increase in deposits $ (166,286) $ (192,774)
 Operating expenses to average assets 1.87 pct. 1.49 pct.
 Operating efficiency ratio(a) 70.73 pct. 49.09 pct.
 Average common and common
 equivalent shares outstanding(b) 3,407,739 3,297,812
 Financial Data at end of the period:
 Total assets $4,759,529 $5,028,710
 Total loans and mortgage-backed
 securities $4,164,934 $4,483,391
 General valuation allowance to loans
 and real estate owned 1.81 pct. 1.21 pct.
 Deposits $3,291,632 $3,691,933
 Borrowings $1,105,517 $ 967,030
 Subordinated notes $ 60,000 $ 60,000
 Stockholders' equity $ 254,699 $ 227,195
 Stockholders' equity per share $ 38.62 $ 68.89
 Common shares outstanding(b) 6,595,624 3,297,812
 Fidelity Federal Bank Regulatory Capital Ratios:
 Tangible capital 4.63 pct. 4.09 pct.
 Core Capital 4.70 pct. 4.24 pct.
 Risk-based capital 10.39 pct. 9.89 pct.
 Weighted Average Yield for the Period:
 Loans 7.17 pct. 8.86 pct.
 Investments 3.17 pct. 4.59 pct.
 Combined loans and investments 7.01 pct. 8.63 pct.
 Weighted Average Cost for the Period:
 Deposits 4.07 pct. 5.48 pct.
 Borrowings 6.21 pct. 7.62 pct.
 Combined deposits and borrowings 4.58 pct. 5.92 pct.
 Interest Rate Margin at end of the Period 2.43 pct. 2.71 pct.
 Effective Yield for the Period 2.54 pct. 2.88 pct.
 (a) The efficiency ratio is computed by dividing noninterest
 expense by net interest income and other income, excluding
 nonrecurring items and the provision for estimated real estate
 losses.
 (b) Average common and common equivalent shares oustanding at March
 31, 1992 are shown net of 179,700 shares of Treasury Stock.
 CITADEL HOLDING CORPORATION AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands)
 Mar. 31 Dec. 31 Mar. 31
 1993 1992 1992
 Nonperforming Assets (NPAs):
 Nonaccruing loans $ 126,349 $ 112,041 $ 116,774
 In-substance foreclosures 29,639 47,324 24,162
 Foreclosed real estate 126,353 88,659 36,652
 REO GVA (10,643) (13,619) ---
 Total NPAs $ 271,698 $ 234,405 $ 177,588
 NPAs to total assets 5.72 pct. 4.99 pct. 3.53 pct.
 NPAs and Troubled Debt Restructurings (TDRs):
 Total NPAs $ 271,698 234,405 $ 177,588
 Classified TDRs 38,528 44,308 913
 Nonclassified TDRs 12,557 42,996 14,121
 Total NPAs and TDRs $ 322,783 $ 321,709 $ 192,622
 NPAs and TDRs to total
 assets 6.80 pct. 6.85 pct. 3.83 pct.
 Classified Assets:
 Total NPAs $ 271,698 $ 234,405 $ 177,588
 Performing loans with
 increased risk 117,478 108,442 58,127
 Real Estate held for
 investment 10,803 10,891 12,428
 Total classified assets $ 399,979 $ 353,738 $ 248,143
 Classified assets to total
 assets 8.43 pct. 7.53 pct. 4.93 pct.
 Loan Delinquencies by Property Type:
 Single Family:
 30-59 days $ 1,880 $ 7,939 $ 4,045
 60-89 days 2,947 3,665 2,695
 90 days and over 15,997 14,064 12,245
 Total 20,824 25,668 18,985
 Multifamily (2-4 units):
 30-59 days 3,427 1,432 753
 60-89 days 3,719 1,180 1,310
 90 days and over 10,650 6,372 3,700
 Total 17,796 8,984 5,763
 Multifamily (5-36 units):
 30-59 days 14,170 15,927 4,969
 60-89 days 10,682 9,241 9,456
 90 days and over 53,228 33,627 24,515
 Total 78,080 58,795 38,940
 Multifamily (37 units and over):
 30-59 days 1,620 5,623 25,677
 60-89 days 9,807 1,223 13,101
 90 days and over 21,812 23,691 46,795
 Total 33,239 30,537 85,573
 Commercial & Industrial:
 30-59 days 1,248 1,807 527
 60-89 days 458 --- 4,331
 90 days and over 6,938 15,772 23,814
 Total 8,644 17,579 28,672
 Total Loan Delinquencies $ 158,583 $ 141,563 $ 177,933
 Total Loan Delinquencies to
 Total Loan Portfolio 3.98 pct. 3.51 pct. 4.0 pct.
 -0- 4/26/93
 /CONTACT: Albert J. Clemens of Citadel Holding Corporation, 818-956-7100/
 (CDL)


CO: Citadel Holding Corporation ST: California IN: SU: ERN

BR-RA -- NYON1 -- 0457 04/26/93 08:22 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 26, 1993
Words:1788
Previous Article:U.S. HEALTHCARE REPORTS RESULTS FOR THE FIRST QUARTER
Next Article:UNIVAR CORP. ANNOUNCES YEAR-END, FOURTH-QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND
Topics:


Related Articles
CITADEL HOLDING CORP. REPORTS EXTENSION OF LOAN MATURITY
CITADEL HOLDING CORPORATION ANNOUNCES BOARD APPOINTMENTS
CITADEL HOLDING CORPORATION ANNOUNCES THAT ITS BOARD OF DIRECTORS HAVE APPROVED A COMMON STOCK RIGHTS OFFERING
CITADEL HOLDING CORP. ANNOUNCES EXTENSION OF RIGHTS OFFERING
CITADEL HOLDING NAMES NEW INVESTMENT COMPANY HEAD
CITADEL HOLDING CORPORATION ANNOUNCES RESTRUCTURING AND RECAPITALIZATION
CITADEL HOLDING CORPORATION Second Quarter Results
CITADEL HOLDING CORPORATION; THIRD QUARTER RESULTS
CITADEL HOLDING CORPORATION ANNOUNCES YEAR-END RESULTS
CITADEL HOLDING CORPORATION ANNOUNCES THIRD QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters