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CRAGIN REPORTS $26.4 MILLION IN YEARLY EARNINGS

 CRAGIN REPORTS $26.4 MILLION IN YEARLY EARNINGS
 CHICAGO, Jan. 16 /PRNewswire/ -- Cragin Financial Corp.


(NASDAQ-NMS: CRGN), the parent holding company of Cragin Federal Bank for Savings, today announced earnings for the quarter and the year ended Dec. 31, 1991.
 For the 1991 fourth quarter, net income was $8.2 million, or $0.76 per primary share, compared to $4.7 million for the comparable 1990 quarter. Earnings for the year ended Dec. 31, 1991, were $26.4 million, or $2.43 per pro forma primary share, a substantial improvement from earnings of $8.9 million for 1990. Earnings per share information is not meaningful for the 1990 periods, as the company did not complete its conversion from a federally chartered mutual savings bank to a stock savings bank until June 6, 1991.
 The substantial improvement in comparable quarterly earnings resulted primarily from improved interest margins in 1991. Net interest income before provision for loan losses increased $9.1 million, or 52.6 percent to $26.4 million for the 1991 fourth quarter compared to $17.3 million for the 1990 fourth quarter. For the year, net interest income before provision for loan losses was $91.8 million, an increase of $24.5 million, or 36.4 percent, from 1990 net interest income of $67.3 million. The decrease in short-term rates experienced over the quarter have had a favorable effect on the bank's net interest margin.
 Provisions for loan losses of $2.2 million were recorded in the fourth quarter of 1991, compared to $509,000 booked in the fourth quarter of 1990. For the year provisions for loan losses were $7.2 million in 1991 compared to $9.5 million in 1990. In addition to the provision for loan losses, a provision for loss of $1.1 million was recorded on a specific investment security during the year ended Dec. 31, 1991, as well as a $250,000 provision for loss on a multi- family loan classified as foreclosed real estate. The 1991 provisions reflect the bank's policy of conservatively evaluating its loan and investment portfolios, levels of non-performing loans, and the general state of the economy.
 The provision recorded in the fourth quarter of 1991 brings the cumulative allowance for loan losses to $19.5 million, or 86.9 percent of non-performing loans at Dec. 31, 1991. The ratio of non-performing loans to total loans was 1.41 percent at Dec. 31, 1991, as compared to 1.15 percent at Sept. 30, 1991, and 0.95 percent at Dec. 31, 1990. Non- performing assets increased to $27.3 million, or 1.03 percent of total assets, at Dec. 31, 1991, from $22.5 million, or 0.85 percent of total assets, at Sept. 30, 1991. Non-performing assets were $16.3 million, or 0.67 percent of total assets, at Dec. 31, 1990.
 Non-interest income was $2.1 million in the current 1991 quarter, compared to $898,000 in the comparable 1990 quarter. This increase of $1.3 million is primarily due to an increase in gains on the sales of trading account securities of $609,000 due to a favorable interest rate environment and an increase in income from real estate operations of $609,000 due to increased sales in real estate projects which were in the start-up phase in 1990.
 Non-interest expense totaled $11.4 million in the current quarter compared to $10.2 million in the comparable 1990 quarter, primarily due to increases in compensation and benefits expense and other expense, offset by a decrease in advertising and promotion expense. Compensation and benefits increased $576,000 between comparable quarters, primarily due to the amortization of stock benefit plans to compensation expense totalling $394,000 during the 1991 quarter, an increase in insurance premiums related to executive compensation plans and a personnel increase related to a merger in December 1990 and an acquisition of a branch office in August 1991.
 Total assets increased $202.3 million, or 8.3 percent, to $2.65 billion at Dec. 31, 1991, from $2.45 billion at Dec. 31, 1990. A significant component of this increase was the addition of $98.1 million in net proceeds from the sale of common stock in the conversion, which was completed on June 6, 1991. Loans receivable increased $165.1 million to $1.59 billion at Dec. 31, 1991, from $1.43 billion at Dec. 31, 1990, as loans originated and purchased continue to exceed loan principal repayments and prepayments. Loans originated and purchased totalled $353.6 million and $129.1 million, respectively, for the year ended Dec. 31, 1991, while loan payments and prepayments totalled $259.2 million.
 Deposits increased $181.3 million, or 9.4 percent, to $2.11 billion at Dec. 31, 1991, from $1.93 billion at Dec. 31, 1990, primarily due to interest credited.
 Cragin Federal Bank for Savings is a federally chartered stock savings bank. The bank currently operates out of a network of 28 branch offices primarily located in Chicago and the western and northwestern suburbs of Chicago.
 CRAGIN FINANCIAL CORP.
 Results of Operations
 (Dollars in thousands)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Interest income $61,027 56,546 235,838 225,454
 Interest expense 34,613 39,227 144,048 158,174
 Net interest income
 before provision
 for loan losses 26,414 17,319 91,790 67,280
 Provision for loan
 losses 2,225 509 7,238 9,508
 Net interest income
 after provision for
 loan losses 24,189 16,810 84,552 57,772
 Non-interest income:
 Gain (loss) on
 sale of:
 Investment securities 202 164 573 (284)
 Mortgage-backed securities - (99) 81 (100)
 Loans receivable (60) -- 19 (2,880)
 Trading account
 securities 399 (207) 722 26
 Income from real estate
 operations 558 (51) 837 706
 Service fee income 662 544 2,483 1,956
 Other 360 547 2,730 3,207
 Total non-interest
 income 2,121 898 7,445 2,631
 Non-interest expense:
 Compensation and
 benefits 5,958 5,382 22,982 19,511
 Office occupancy and
 equipment 1,279 1,362 4,773 4,333
 Federal deposit insurance
 premiums 1,291 1,119 4,994 4,387
 Advertising and
 promotion 445 659 2,066 2,551
 Data processing 309 284 1,276 1,110
 Amortization of excess of
 cost over fair value of
 net assets acquired 361 232 1,060 931
 Provision for losses on
 investment securities --- --- 1,140 ---
 Provision for losses on
 mortgage-backed
 securities --- --- --- 765
 Provision for losses on
 foreclosed real
 estate --- --- 250 ---
 Other 1,714 1,176 6,750 6,383
 Total non-interest
 expense 11,357 10,214 45,291 39,971
 Income before
 income tax expense 14,953 7,494 46,706 20,432
 Income tax expense 6,792 2,781 20,261 11,553
 Net Income $ 8,161 4,713 26,445 8,879
 Pro forma earnings per share:
 Primary 0.76 N/A 2.43 N/A
 Fully diluted 0.75 N/A 2.42 N/A
 CRAGIN FINANCIAL CORP.
 Financial Highlights
 (Dollars in thousands)
 Dec. 31, Dec. 31,
 1991 1990
 (unaudited)
 Financial Condition Highlights:
 Total assets $ 2,650,110 $ 2,447,854
 Loans receivable, net 1,592,838 1,427,163
 Mortgage-backed securities 589,286 596,518
 Investment securities 253,664 232,710
 Investment securities held
 for sale 1,637 10,032
 Real estate held for
 development or sale 37,089 35,396
 Deposits 2,114,878 1,933,621
 Borrowed funds 165,601 250,768
 Stockholders' equity 302,420 195,525
 Selected Asset Quality Ratios:
 Non-performing loans to total loans
 1.41 0.95
 Non-performing assets to total assets
 1.03 0.67
 Allowance for loan losses to non-performing loans
 86.91 89.21
 Allowance for loan losses to non-performing assets
 71.28 73.94
 Year Ended Dec. 31,
 1991 1990
 (unaudited)
 Selected Investing Activities
 Loans originated and purchased $482,675 $348,663
 Information per Common Share:
 Pro forma primary earnings $ 2.43 N/A
 Pro forma fully diluted earnings 2.42 N/A
 Book Value (actual shares outstanding)
 29.75 N/A
 Book Value (fully diluted) 27.65 N/A
 Market price (closing) 21 N/A
 P/F ratio 8.64 N/A
 Number of shares issued and
 outstanding 10,164,850 N/A
 -0- 1/16/92
 /CONTACT: Adam A. Jahns, chairman and CEO, 312-804-4500, Fredric G. Novy, president and COO, 312-804-4501, or Stanley G. Magiera, VP, CFO, 708-773-0027, all of Cragin Financial; or Judi Silverman of Janet Diederichs & Associates, 312-346-7886, for Cragin Financial/
 (CRGN) CO: Cragin Financial Corp. ST: Illinois IN: FIN SU: ERN


PS -- NY104 -- 0805 01/16/92 20:52 EST
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