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CSF HOLDINGS THIRD QUARTER NET EARNINGS RISE TO $17.5 MILLION

 MIAMI, Oct. 25 /PRNewswire/ -- CSF Holdings, Inc. (NASDAQ-NMS: CSFC), parent company of Citizens Federal Bank, reported net earnings, after preferred stock dividends, of $17,520,000, or $1.71 per share, on total income of $93,023,000 for the three months ended Sept. 30, 1993, compared to net earnings, after preferred stock dividends, of $11,184,000, or $1.12 per share, on total income of $95,209,000 for the same quarter of 1992.
 For the nine months ended Sept. 30, 1993, CSF Holdings reported net earnings, after preferred stock dividends, of $39,300,000, or $3.84 per share, on total income of $263,624,000, compared to net earnings, after preferred stock dividends, of $40,318,000, or $4.18 per share, on total income of $289,788,000 for the same period of 1992.
 All per share earnings have been adjusted for the 50 percent common stock dividend paid on Oct. 26, 1992, and the 50 percent common stock dividend paid on Feb. 22, 1993.
 In announcing the earnings, Charles B. Stuzin, chairman and president of CSF Holdings, stated: "During the third quarter, we completed the sale of our entire Illinois division at an after-tax profit of approximately $12 million. We accomplished several objectives with this sale. In addition to the third quarter gain, there are substantial expense reductions which will enhance our bottom line in future periods.
 "Our Florida expansion is right on schedule. We opened two excellent branches in July and are in the planning stage for another two locations. The bank's Florida deposits are up $161 million since the first of this year and we expect this trend to continue.
 "During the second and third quarters, we sold $59.5 million of Citizens Federal Bank preferred stock and redeemed $83.1 million of previously issued higher cost preferred stock. The end result of these capital replacements is (1) our fourth quarter preferred stock dividends will be $643,000 less than the third quarter, and (2) our annual preferred stock dividend reduction will be $4.2 million.
 "The high quality of our residential mortgage portfolio continues to be one of the company's strongest assets. Non-performing assets were only $82.5 million (1.82 percent of total assets) on September 30, 1993, compared to $85.7 million (1.83 percent) on June 30, 1993, and $93.9 million (2.09 percent) on September 30, 1992."
 For the nine months ended Sept. 30, 1993, CSF Holdings had a 1.15 percent return on average assets and a 23.72 percent return on average stockholders' equity.
 As of Sept. 30, 1993, CSF Holdings had a stockholders' equity (book value) of $24.88 per common share and a tangible book value of $23.55 per common share.
 The capital position of Citizens Federal Bank currently meets the
regulatory definition of "well capitalized." As of Sept. 30, 1993, tangible capital of $283 million equaled 6.3 percent versus 1.5 percent required, core capital of $321 million equaled 7.1 percent versus 3 percent required, and risk-based capital of $357 million equaled 16.3 percent versus 8 percent required.
 CSF HOLDINGS, INC. AND SUBSIDIARIES
 THIRD QUARTER 1993 EARNINGS
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (unaudited; dollars in thousands, except per share amounts)
 Total interest
 income $ 73,209 $ 84,654 $ 227,781 $ 260,622
 Total interest expense 44,824 50,776 133,978 160,262
 Net interest income 28,385 33,878 93,803 100,360
 Provision for
 loan losses 2,250 1,850 6,250 6,750
 Net interest income
 after provision
 for loan losses 26,135 32,028 87,553 93,610
 Net gain on sales
 of assets (A) 18,813 8,430 31,582 23,985
 Total other income 1,001 2,125 4,261 5,181
 Total other expenses 16,131 17,468 49,575 53,504
 Income before income
 taxes, extraordinary
 items and cumulative
 effect of change
 in accounting
 principle 29,818 25,115 73,821 69,272
 Provision for
 income taxes 9,785 9,366 25,935 25,485
 Income before
 extraordinary items
 and cumulative effect
 of change in
 accounting principle 20,033 15,749 47,886 43,787
 Extraordinary items,
 net of taxes (B) --- (1,639) (223) (2,167)
 Cumulative effect of
 change in accounting
 principle (C) --- --- --- 7,474
 Net income before
 preferred
 stock dividends 20,033 14,110 47,663 49,094
 Preferred stock
 dividends of
 Citizens Federal (D) 2,513 2,926 8,363 8,776
 Net income after
 preferred
 stock dividends $ 17,520 $ 11,184 $ 39,300 $ 40,318
 Earnings per common share (E):
 Income before
 extraordinary
 items and
 cumulative effect
 of change in
 accounting
 principle $ 1.71 $ 1.28 $ 3.86 $ 3.63
 Extraordinary items,
 net of taxes (B) --- (0.16) (0.02) (0.22)
 Cumulative effect of
 change in accounting
 principle (C) --- --- --- 0.77
 Net income after
 preferred
 stock dividends $ 1.71 $ 1.12 $ 3.84 $ 4.18
 Weighted average
 common shares (E) 10,237,025 9,954,234 10,235,120 9,653,295
 At Sept. 30,
 1993 1992
 Total assets $4,522,868 $4,472,360
 Cash and investments $ 247,228 $ 421,037
 Loans receivable, net $2,574,726 $2,743,123
 Mortgage-backed securities $1,573,098 $1,163,574
 Deposits $3,051,835 $3,539,106
 Borrowings $1,112,694 $ 611,264
 Minority interest in Citizens
 Federal's Non-Cumulative
 Preferred Stock (D) $ 75,716 $ 83,421
 Stockholders' equity $ 225,921 $ 193,005
 Book value per
 common share (E) $ 24.88 $ 22.19
 Tangible book value per
 common share (E) $ 23.55 $ 19.68
 Return on average equity 23.72 pct. 31.11 pct.
 Return on average assets 1.15 pct. 1.21 pct.
 Yield on loans and
 mortgage-backed securities 6.97 pct. 8.32 pct.
 Yield on investments 4.07 pct. 4.13 pct.
 Total yield on
 interest-earning assets 6.86 pct. 7.98 pct.
 Cost of deposits 3.64 pct. 4.15 pct.
 Cost of borrowings 5.56 pct. 7.29 pct.
 Total cost of
 interest-bearing liabilities 4.15 pct. 4.61 pct.
 Net interest margin (reflects
 excess of interest-earning assets
 over interest-bearing liabilities 2.85 pct. 3.48 pct.
 Total non-performing loans $ 66,436 $ 78,402
 Other real estate owned, net 16,083 15,549
 Total non-performing assets $ 82,519 $ 93,951
 Ratio of non-performing
 loans to total assets 1.47 pct. 1.75 pct.
 Ratio of non-performing
 assets to total assets 1.82 pct. 2.09 pct.
 Citizens Federal's Capital Ratios:
 Tangible Capital:
 Actual regulatory capital $282,981 $248,432
 Regulatory capital
 requirement 67,535 66,344
 Capital in excess of
 requirement $215,446 $182,088
 Tangible capital as a
 percentage of tangible assets 6.29 pct. 5.62 pct.
 Percentage required 1.50 pct. 1.50 pct.
 Core Capital:
 Actual regulatory capital $320,708 $305,738
 Regulatory capital
 requirement 135,188 133,080
 Capital in excess of
 requirement $185,520 $172,658
 Core capital as a percentage
 of adjusted tangible assets 7.12 pct. 6.89 pct.
 Percentage required 3.00 pct. 3.00 pct.
 Risk-Based Capital:
 Actual regulatory capital $357,134 $344,218
 Regulatory capital
 requirement 175,380 166,686
 Capital in exccess of
 requirement $181,754 $177,532
 Risk-based capital
 as a percentage of risk-
 weighted assets 16.29 pct. 14.87 pct.
 Percentage required 8.00 pct 7.20 pct.
 (A) -- During August 1993, Citizens Federal Bank ("Citizens Federal") sold all 18 of its Illinois branches with deposits totaling $763.3 million.
 (B) -- The extraordinary losses of CSF Holdings, Inc. (the "company") of $0.2 million for the nine months ended Sept. 30, 1993 represents the write-off of capitalized expenses (net of tax benefit) relating to the early extinguishment of the company's subordinated debt. The extraordinary losses (net of tax benefit) during 1992 resulted from (i) $1.4 million in losses from the prepayment of Federal Home Loan Bank advances and (ii) $0.8 million (net of tax benefit) from the write-off of capitalized expenses related to the early extinguishment of the ocmpany's suboridnated debt.
 (C) -- The company adopted Statement of Financial Accounting Standard No. 109 ("SFAS No. 109"), Accounting for Income Taxes, during the second quarter of 1992 and restated its earnings for the three months ended March 31, 1992 to reflect the effects of the adoption as of Jan. 1, 1992 in accordance with the provisions of the statement. The cumulative effect of this change through Jan. 1, 1992 increased net earnings and stockholders' equity by $7.5 million.
 (D) -- During the second and third quarter of 1993, Citizens Federal sold 2,380,000 shares of its 8.75 percent Series 1993A Noncumulative Preferred Stock (the "Series 1993A Preferred Stock") at $25.00 per share. The net proceeds of the offering, together with cash on hand and an additional $23.7 million capital contribution from the company, were used by Citizens Federal to redeem 3,324,269 shares of its outstanding Series A-E Noncumulative Preferred Stock (the "Series A-E Preferred Stock"). Paid-in capital decreased $19.2 million, reflecting (i) the reversal of $15.9 million in discounts originally recorded on the Series A-E Preferred Stock redeemed (ii) an aggregate $0.6 million in redemption premiums paid under the terms of three of the series redeemed, and (iii) $2.7 million in issuance costs for the Series 1993A Preferred Stock. The annualized effect of these transactions will be a reduction of $4.2 million in Preferred Stock dividends. For the quarter ended Sept. 30, 1993, the effect was a reduction of $0.4 million.
 (E) -- On Feb. 22, 1993 and Oct. 26, 1992 the company effected 3-for-2 stock splits in the form of a 50 percent stock dividend, to the holders of its Common Stock. All per-share data is adjusted for these stock splits.
 -0- 10/25/93
 /CONTACT: Morton Trilling, executive vice president of CSF Holdings, 305-978-5454; or John K. Schulte of Schulte Ross & Aguilar, 305-856-1442, for CSF Holdings/
 (CSFC)


CO: CSF Holdings, Inc. ST: Florida IN: FIN SU: ERN

AW-JV -- FL012 -- 6467 10/25/93 15:47 EDT
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Date:Oct 25, 1993
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