Center Financial CEO and CFO address Boston Investment audience.Financial Corp.'s (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CFCX) President and Chief Executive Officer, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Narkis, and Vice President and Chief Financial, Officer Joseph Carlson Carl·son , Chester Floyd 1906-1968. American inventor of the xerographic process for copying documents (first patented in 1940). II, today presented a comprehensive look at the organizational, business, and cultural changes taking place at Center Financial's Corp. under the banner of "High Performance '97", the company's profitability initiative. Center Financial's commitment to HP'97 was originally announced to shareholders in March of 1995. The presentation to a group of over 130 investors and analysts took place at a meeting hosted by banking industry specialists Keefe, Bruyette & Woods in Boston. In his remarks, Narkis reviewed Center Financial's 1995 results and made public the company's performance expectations for 1996 and 1997. Return on Assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). is expected to improve from 65 to 85 basis points in 1996, with an objective of 1.0 percent by the end of 1997. Return on Equity is expected to rise to 14 percent in 1996 from its current 11.0 percent, with an objective of 15.0 percent by the fourth quarter of 1997. Narkis also reviewed a number of other measures, all of which suggest continued improvement in the immediate future. CFO See Chief Financial Officer. Joseph Carlson II commented further on the company's performance measures and trends, introducing for the first time the concept of Center Financial's reinvention budget - the costs incurred during the initial implementation of strategic programs, such as High Performance '97, that do not yield immediate returns but which should result in long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability for the company. Carlson also told the audience that the company expects to earn between $28.5 and $32.5 million during 1996, or $1.90 to $2.16 per share. Center Financial Corp. is the holding company for Centerbank, Centerbank Mortgage Company, Center Capital Corp., and Affiliated Business Credit Corp. Upon the acquisition of Watertown-based Heritage Bank expected to be completed in the first quarter, Center Financial Corp. will have assets of approximately $3.6 billion. Established in 1850, Centerbank delivers banking services throughout central Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and is insured by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). . Centerbank Mortgage Company is a full-service mortgage banking company with a residential servicing portfolio of over $7.0 billion, operating through a nationwide network of thirty loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. offices, including partnerships with affinity groups A special interest group. This is a marketing term for a group of people with similar interests. and real estate brokerage companies under its subsidiary, The Mortgage Corner, Inc., eight wholesale/correspondent offices, and Center Credit Corp., a newly-formed national consumer finance company. Center Capital Corp. is an equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
Center Financial Corp.
Performance Goals
1995 1996 1997
Actual (a) Budget Goal
Net interest margin 3.51% 3.45% 3.51% Noninterest income/Oper. Income 97.62 83.26 75.75 Efficiency ratio 74.41 65.45 61.52 Loss Prov./Oper. Income 15.75 14.80 12.45 Pretax Oper. Prof. Margin 22.10 30.09 34.22 ROA .65 .85 .95 ROE 10.94 14.05 14.71 Compensation/Oper. Income 130.0 78.8 65.9 "Reinvention" Budget/Oper. Expense 7.5 6.3 7.2 Oper. Income/FTE $23,227 $37,152 $45,416 Compensation/FTE $30,385 $29,285 $29,955 (a) Operating ratios adjusted to exclude non-recurring items CONTACT: Centerbank, Waterbury Patricia B. Sweet, 203/578-6296 |
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