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FORTUNE BANCORP REPORTS SECOND QUARTER RESULTS

 FORTUNE BANCORP REPORTS SECOND QUARTER RESULTS
 CLEARWATER, Fla., April 16 /PRNewswire/ -- Fortune Bancorp, Inc.


(NASDAQ: FORB) today reported net income of $1.7 million, or $.31 per share, for the second quarter ended March 31, 1992, compared with net income of $590,000, or $.13 per share, for the same period a year earlier.
 For the first half of fiscal 1992, Fortune Bancorp recorded net income of $3.0 million, or $.55 per share, compared with net income of $2.2 million, or $.51 per share for the same six months of the previous fiscal year.
 "We continue to be pleased with the progress we are making. Successful mortgage banking operations, wider net interest margins, gains from the restructuring of our investment portfolio and improvements in working out loan difficulties have all contributed to these results," said Chairman and Chief Executive Officer John R. Torell III. "We are showing demonstrable progress in virtually all areas."
 Favorable interest rates fueled record residential mortgage loan production volume for the quarter ended March 31, 1992. Production totaled $310 million, which included both variable and fixed rate loans with the majority of the fixed rate originations being sold in the secondary market. The bank generally continues to service the mortgages it sells.
 Net interest income improved for the three months ended March 31, 1992, increasing to $16.4 million compared with $14.5 million for the comparable quarter of fiscal 1991. For the six months ended March 31, 1992, net interest income was $31.8 million, compared with $28.7 million for the same period in fiscal 1991.
 Fortune's net interest margin for the second quarter of fiscal 1992 improved to 2.58 percent, compared with 2.11 percent for the same period in fiscal 1991.
 Nonperforming assets at March 31, 1992 decreased to $121.2 million from $122.7 million at Dec. 31, 1991 due to the successful resolution of certain problem assets. Nonperforming assets totaled $99.9 million at March 31, 1991. Resolution of other loan situations which are current in interest payments, and the sale of previously foreclosed real property are proceeding.
 Provision for loan losses for the quarter ended March 31, 1992 totaled $6.3 million compared with $2.6 million for the quarter ended March 31, 1991. Fortune's allowance for loan losses totaled $25.2 million at March 31, 1992, up from $10.0 million at March 31, 1991 and $21.7 million last quarter. This increases the allowance to 24.8 percent of nonperforming loans, up from 21.1 percent at Dec. 31, 1991.
 Noninterest income increased to $8.8 million for the quarter ended March 31, 1992, from $1.2 million for the same period the previous year. The second quarter of fiscal 1992 included a $5.9 million gain on the sale of governmental agency securities and a $374,000 loss on the sale of investments. The sales of these securities and investments are part of a plan for restructuring the company's assets and liabilities. Additionally, as part of Fortune's mortgage banking operations, the bank sold mortgage servicing rights for loans approximating $217 million, resulting in a gain of $1.5 million.
 Noninterest expense amounted to $13.2 million for the quarter ended March 31, 1992, compared with $12.4 million for the same quarter the previous year. The year-to-year increase of 6.2 percent resulted primarily from expenses associated with record levels of mortgage production and the workout of problem loans.
 Fortune Bank exceeds all capital requirements under federal regulations:
 Fortune Current Fully Phased-In
 Bank Requirement Requirement
 Core Capital 4.75 pct. 3.00 pct. 3.00 pct.
 Tangible Capital 4.35 pct. 1.50 pct. 1.50 pct.
 Risk-based Capital 9.66 pct. 7.20 pct. 8.00 pct. (A)
 (A) -- The fully phased-in requirement is effective Dec. 31, 1992.
 Fortune Bancorp is the holding company for Clearwater-based Fortune Bank, a $2.6 billion institution operating 46 full-service banking offices in eight counties along Florida's west coast.
 FORTUNE BANCORP, INC.
 March 31, Dec. 31, March 31,
 1992 1991 1991
 (Dollars in thousands)
 FINANCIAL HIGHLIGHTS
 Total Assets $ 2,620,977 $ 2,724,456 $3,031,747
 Total loans and
 governmental agency
 certificates 2,309,949 2,409,478 2,657,579
 Investments 133,761 129,861 181,738
 Deposit Accounts 2,216,560 2,295,325 2,443,500
 Borrowed money 207,732 234,902 386,858
 Stockholders' Equity 124,002 122,584 126,566
 Number of common shares
 outstanding 5,530,221 5,449,965 4,351,128
 Nonperforming assets
 and restructured
 loans 121,169 122,655 99,852
 SIGNIFICANT RATIOS
 Net interest margin 2.58 pct. 2.40 pct. 2.11 pct.
 Regulatory capital
 Core 4.75 4.48 3.95
 Tangible 4.35 4.08 3.53
 Risk based 9.66 9.03 7.76
 Allowance as percent of
 nonperforming and
 restructured loans 24.79 21.11 12.27
 QUARTER ENDING SIX-MONTHS ENDED
 March 31, March 31, March 31, March 31
 1992 1991 1992 1991
 EARNINGS SUMMARY
 Net Interest Income $ 16,386 $ 14,482 $ 31,842 $ 28,713
 Provision for Loan Losses 6,349 2,613 10,205 5,365
 Net interest income after
 provision for loan losses 10,037 11,869 21,637 23,348
 Non interest income 8,847 1,214 12,532 3,435
 Noninterest expense 13,182 12,416 25,704 23,769
 Income before income taxes
 and extraordinary items 5,702 667 8,465 3,014
 Income Tax Expense
 (Benefit) 3,916 (110) 5,953 1,582
 Net Income before
 extraordinary items 1,786 777 2,512 1,432
 Extraordinary items (57) (187) 519 806
 Net income $ 1,729 $ 590 $ 3,031 $ 2,238
 Earnings per share $ 0.31 $ 0.13 $ 0.55 $ 0.51
 Average Shares
 Outstanding 5,512,156 4,351,194 5,474,330 4,351,583
 -0- 4/16/92
 /CONTACT: Nancy Kaylor of Fortune Bancorp, 813-538-1114/
 (FORF) CO: Fortune Bancorp, Inc. ST: Florida IN: FIN SU: ERN


JB-SS -- FL013 -- 9453 04/16/92 15:56 EDT
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