Printer Friendly

FOURTH FINANCIAL CORP. REPORTS SUBSTANTIAL IMPROVEMENT IN FIRST QUARTER EARNINGS

 FOURTH FINANCIAL CORP. REPORTS SUBSTANTIAL IMPROVEMENT
 IN FIRST QUARTER EARNINGS
 WICHITA, Kan., April 16 -- Fourth Financial Corp. (NASDAQ: FRTH) today reported first quarter 1992 net income of $8,715,000, an increase of 58.0 percent over net income of $5,515,000 a year ago. On a fully diluted share basis, earnings increased 43.0 percent to $0.43 for the quarter ended March 31, 1992, compared to $0.30 for the same period one year ago.
 Net interest income in the first quarter increased by $1,805,000 to $38,182,000 compared to $36,377,000 in the same period last year. Noninterest income increased by $1,747,000 to $14,261,000 as a result of an increase in the volume of trust business and other fee income.
 "We are very encouraged by our performance in the first quarter and believe the improvement validates our strategies to improve credit quality and profitability while better serving the financial services needs of our customers," said Darrell G. Knudson, Fourth Financial chairman and chief executive officer. In discussing the improvement, Knudson said, "We benefited substantially during the quarter from a lower cost of funds which allowed our net yield on earning assets to improve by 27 basis points over the first quarter of last year."
 The company's risk profile has improved substantially from one year ago with nonperforming assets at March 31, 1992, amounting to $38,710,000 versus $47,632,000, an 18.7 percent decrease. Nonperforming assets remain almost level from the prior quarter. In the first quarter of 1992, the allowance for credit losses amounted to $39,598,000, or 148 percent of nonperforming loans, compared to $38,460,000 for the fourth quarter of 1991 when coverage amounted to 162 percent of nonperforming loans, and the first-quarter 1991 allowance which was $33,154,000, or 135 percent of nonperforming loans.
 The provision for credit losses for the current quarter was $5,000,000 while net charge-offs were $3,862,000, resulting in the current quarter increase in the allowance for credit losses.
 Return on average assets for the first quarter was 0.86 percent compared to 0.53 percent in the year ago period. Return on common equity improved to 10.91 percent from 7.79 percent in the first quarter last year. Stockholders' equity at March 31, 1992, rose to $397,848,000 from $289,860,000 at the same time a year ago, an increase of 37.3 percent. Book value at quarter end was $15.84 compared to $15.57 last year.
 During the first quarter, Fourth Financial successfully completed a public offering of $100 million of cumulative convertible preferred stock in the form of depositary shares with the proceeds to be used primarily for acquisitions. The additional capital provided by the offering brought the company's risk-based capital ratio to 16.23 percent and its leverage ratio to 8.79 percent, well above the regulatory minimums of 8 percent and 3 percent for those ratios, respectively.
 "We are making excellent progress toward completion of the profit improvement initiative announced last year," Knudson noted. "Operational consolidations resulting from the merger of our 13 banks into a single organization late in 1991 will be completed by mid year."
 The company continued to pursue its strategy of growth through selective acquisitions during the first part of 1992. In the first quarter, Fourth Financial announced an agreement to acquire the $76 million Farmers & Merchants Bank in Colby, Kan., and completed a $46 million S&L deposit assumption in Hays, Kan. In April, the company announced it had reached agreements for two additional Kansas acquisitions: the $100 million Kansas National Bank & Trust Company and the $80 million Southgate Bank, both in the Kansas City metropolitan area. The three bank acquisitions are awaiting regulatory approval and, when completed, are expected to be anti-dilutive to earnings.
 "We announced last year that we were taking steps necessary to better our performance from the perspectives of our customers and shareholders," said Knudson. "We've lowered our risk profile, improved our earnings, strengthened our capital base and enhanced our delivery system. But we have just begun to realize the benefits of these strategies. We are continuing to implement them and we are confident they will result in financial performance and growth that will provide value for our shareholders."
 Fourth Financial Corp. is a Wichita-based financial services company with consolidated assets of $4.2 billion. The company operates 67 offices in 28 communities through its subsidiary, Bank IV Kansas, N.A., which provides a full line of banking services to consumer and business customers in the markets it serves. Fourth Financial Corp.'s common stock and depositary shares are traded on the NASDAQ National Market System under the symbols "FRTH" and "FRTHZ," respectively.
 -0- 4/16/92
 /CONTACT: Michael J. Shonka, senior vice president, chief financial officer of Fourth Financial Corp., 316-261-4510; or Jack Queeney or Michael Arneth , 312-266-7800 (Chicago), or Regina Ryan, 212-661-8030, all of Financial Relations Board (FRB), for Fourth Financial Corp./
 (FRTH) CO: Fourth Financial Corp. ST: Kansas IN: FIN SU: ERN


AH -- NY102 -- 9480 04/16/92 16:23 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 16, 1992
Words:860
Previous Article:SEAFARERS UNION CALLS FOR FAIR TUNA TARIFF
Next Article:CRAWFORD ANNOUNCES FIRST QUARTER EARNINGS IMPROVEMENT


Related Articles
KAUFMAN AND BROAD FOURTH QUARTER EARNINGS RISE FOURFOLD ON IMPROVING CALIFORNIA RESULTS
FIRST FEDERAL REPORTS STRONG FOURTH QUARTER EARNINGS
T/SF COMMUNICATIONS CORP. ANNOUNCES FOURTH QUARTER PROFIT AND YEAR END RESULTS
FOURTH FINANCIAL REPORTS SECOND QUARTER EPS UP 59.4 PERCENT TO $.51, CITED INCREASED REVENUES AND IMPROVED ASSET QUALITY
GENERAL COMPUTER CORPORATION REPORTS SUBSTANTIAL IMPROVEMENT IN SALES AND EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR
GENERAL COMPUTER CORPORATION REPORTS SUBSTANTIAL IMPROVEMENT IN SALES AND EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR
FEDERAL SIGNAL CORP. ANNOUNCES 12 PERCENT INCREASE IN 1992 THIRD QUARTER NET INCOME
FIRST COLONIAL ANNOUNCES 1992 EARNINGS OF $12.2 MILLION
FIRST NATIONWIDE REPORTS THIRD-QUARTER RESULTS
FEDERAL SIGNAL CORP. ANNOUNCES A 15% INCREASE IN NET INCOME FOR 1993 WITH FOURTH QUARTER NET INCOME UP 18%

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters