CREDIT CARD BUSINESS HELPS BOOST CHARTER PACIFIC PROFITS.Byline: Deborah Deborah (dĕb`ōrə), in the Bible, prophetess and judge of Israel, the only woman to hold that office. Under her guidance Barak conquered Sisera and delivered Israel from the oppression of the Canaanite King Jabin. Adamson Daily News Staff Writer Charter Pacific Bank reported Tuesday sharply higher 1997 profits and revenues due to stronger credit card business and a restructured loan portfolio. The commercial bank, a real estate loan specialist, reported earnings of $904,000, or 19 cents a share, compared with $24,000, or a penny a share, in 1996. Revenues jumped 45 percent to $21.1 million from $14.6 million in 1996. Agoura Hills-based Charter cited improved results in credit card processing for higher revenues. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. rose due to increased costs of the credit card business but overhead costs overhead costs see fixed costs. declined. Assets rose 2.9 percent to $85 million in 1997 from $82.6 million in 1996. Michael Ward Michael Ward may refer to:
``We have been historically a real estate construction lender,'' Ward said. ``We did not recognize the (real estate) downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. that eventually did come. We ended up with a lot of problem loans.'' Real estate construction loans comprised 80 percent of Charter's portfolio at one point and one-third of the bank's loans were in the problem category. But the bank has been upgrading its balance sheet in recent years by selling bad loans, salvaging what it could from collateral seized seized (seised) n. 1) having ownership, commonly used in wills as "I give all the property of which I die seized as follows:...." 2) having taken possession of evidence for use in a criminal prosecution. 3) having taken property or a person by force. (See: seisin, seizure) from borrowers, taking on higher-quality loans, and diversifying the portfolio to decrease exposure to real estate. About 60 percent of the current portfolio is composed of construction loans while business and consumer loans account for the rest. The bank plans to maintain that ratio. Charter stock did not trade Tuesday. Its ask price was 2-5/8 while its bid price was 2 5/16. |
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