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LIBERTY BANCORP, INC. FOURTH QUARTER EARNINGS $1.8 MILLION

 CHICAGO, Jan. 15 /PRNewswire/ -- Liberty Bancorp, Inc. (NASDAQ: LBCI), the holding company for Liberty Federal Savings Bank, today announced earnings for the fourth quarter ended Dec. 31, 1992. Net income, after cumulative effect of change in accounting principles, was $1.8 million as compared to $1.2 million for the comparable quarter in 1991, an increase of $581,000 or 46.65 percent. For the 12 months ended Dec. 31, 1992, net income, after the cumulative effect of change in accounting principles, was $6.8 million as compared to $3.5 million for the same period in 1991, an increase of $3.3 million, or 95.87 percent.
 Fully diluted earnings per share, after cumulative effect of change in accounting principles, equalled $.56 for the fourth quarter of 1992 and $2.04 for the 12 months ended Dec. 31, 1992. Fully diluted earnings per share, before the cumulative effect of changec?counting principles, was $.41 and $1.90 for the quarter and 12 months ending Dec. 31, 1992. Earnings per share is not applicable for 1991 since the stock conversion took place on Dec. 23, 1991.
 At Dec. 31, 1992, total assets amounted to $504.0 million, an increase of $10.1 million or 2.05 percent as compared to $493.9 million at Dec. 31, 1991.
 Edward J. Burns, chairman and chief executive officer, stated, "We have completed our first full year as a public company on a successful note and our strong equity position provides resources for branch expansion in 1993."
 On Dec. 23, 1991, Liberty Federal Savings Bank converted from mutual to stock form and became a wholly owned subsidiary of Liberty Bancorp, Inc. Concurrently, Liberty Bancorp, Inc. sold 3,306,250 shares of its common stock in the conversion realizing net proceeds of $31.2 million.
 Liberty Bancorp, Inc. announced on Nov. 13, 1992, it had received regulatory clearance for its second repurchase program of up to 5 percent or 157,047 shares of its outstanding common stock during the next six months. As of Dec. 31, 1992, the company has 3,017,148 shares outstanding.
 CHANGE IN ACCOUNTING PRINCIPLES
 During the fourth quarter changes in accounting principles for income taxes and post-retirement benefits were adopted. The cumulative effect at Jan. 1, 1992, was to reduce income tax expense by $936,000 and create an accrual for post-retirement benefits of $455,000. The amounts applicable to 1992 are incorporated in current year's operations. Restatement of earnings per share for the prior three quarters are listed below.
 FULLY DILUTED EARNINGS PER SHARE Sept. 30, June 30, March 31,
 1992 1992 1992
 Earnings per share
 previously stated $0.52 $0.45 $0.37
 Cumulative effect of change
 in accounting principles 0.05 0.06 0.05
 Earnings per share restated $0.57 $0.51 $0.42
 COMPARISON OF OPERATING RESULTS FOR THE QUARTER ENDED DEC. 31, 1992
 AND 1991
 For the quarter ended Dec. 31, 1992, total interest income amounted to $9.8 million, a decrease of $434,000 or 4.26 percent as compared to $10.2 million for the same period in 1991. The decrease in interest income is the direct result of refinancing of existing loans at lower rates. Total interest expense amounted to $4.9 million, a decrease of $1.9 million or 27.95 percent as compared to $6.8 million in 1991. Provision for Loan Losses amounted to $225,000 and $200,000 for the fourth quarter of 1992 and 1991 respectively. Net interest income after Provision for Loan Losses increased $1.4 million or 44.66 percent to $4.7 million from $3.2 million for the fourth quarter of 1992 and 1991 respectively. Net interest margin for the quarter ended Dec. 31, 1992, was 3.98 percent as compared to 2.99 percent at Dec. 31, 1991, an increase of 33.11 percent.
 Non-interest income for the fourth quarter decreased $59,000 or 37.99 percent to $96,000 as compared to $154,000 for the same period in 1991. The reduction in non-interest income is attributable to reduction in fees and service charges on mortgage loans of $25,000, insurance commission of $28,000 and other income of $6,000.
 Non-interest expenses for the quarter ended Dec. 31, 1992, increased $773,000 or 45.01 percent to $2.5 million from $1.7 million for the same period in 1991. The increase primarily related to the following:
 Expense attributable to the cost
 of new benefit plans for employees $368,000
 General payroll and employee benefits $329,000
 General recurring operating expenses $ 76,000
 Federal and state income taxes amounted to $911,000 for the fourth quarter as compared to $407,000 for the same period in 1991, an increase of $504,000 or 124.03 percent. The effective tax rates were 40.37 percent and 24.61 percent for the quarters ended 1992 and 1991 respectively. In 1991, a prepaid tax adjustment for all of 1991 of $370,000 was recorded in the fourth quarter since information was not available prior to the fourth quarter. During 1992, it is being recorded on a monthly basis.
 COMMENTS ON STATEMENT OF CONDITIONS
 During the year ended Dec. 31, 1992, interest earning deposits were restructured by investing $27.2 million along with approximately $5.0 million of positive cash flow into longer-term, higher yielding investments totalling $33.3 million. These investments consisted of commercial paper $1.3 million, mortgage-backed securities $16.3 million and loans receivable of $11.2 million. The mortgage-backed securities purchased have a five year balloon payment feature and approximately 50.0 percent of the loans receivable originated or purchased have an adjustable rate feature.
 As of Dec. 31, 1992, non-performing assets totalled $1.4 million as compared to $838,000 at Dec. 31, 1991, an increase of $533,000 or 63.61 percent. Non-performing assets at Dec. 31, 1992 and 1991 as a percentage of total assets were 0.27 percent and 0.17 percent and as a percentage of general loam loss reserves were 203.57 percent and 236.99 percent respectively. Non-performing assets are comprised of non-performing loans and real estate owned and in judgment. Non- performing assets at Dec. 31, 1992, amounted to nine mortgage loans totalling $987,000, ten auto loans totalling $21,000 and two pieces of real estate owned totalling $363,000.
 Savings deposits increased $6.0 million or 1.42 percent to $426.7 million at Dec. 31, 1992, from $420.7 million at Dec. 31, 1991. The increase is represented by interest credited of $21.6 million partially offset by net savings withdrawals of $15.6 million.
 Stockholders' equity totalled $67.4 million or 13.37 percent of assets at Dec. 31, 1992. Stockholders equity increased $2.9 million or 4.45 percent which resulted from net income of $6.8 million plus credits from employee stock plans of $802,000 offset by the repurchase of 289,102 shares of Treasury Stock at a cost of $4.8 million.
 Liberty Federal Savings Bank is a federally chartered stock savings bank. The bank is a community-oriented bank offering traditional deposit and mortgage loan products. It operates two offices, on in northwestern Chicago and the other in Glenview, Ill.
 LIBERTY BANCORP, INC.
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands)
 Dec. 31, Dec. 31,
 1992 1991
 ASSETS:
 Cash and due from banks $ 7,299 $ 6,229
 Interest-earning deposits 6,617 31,621
 Federal funds sold 300 3,000
 Commercial paper 4,800 3,500
 Investment securities 20,907 16,798
 Mortgage-backed securities 44,932 28,593
 Loans receivable, net 403,979 392,757
 Accrued interest receivable 2,571 2,910
 Real estate owned or in
 judgment 363 107
 Premises and equipment, net 2,939 2,864
 Prepaid expenses and other
 assets 6,197 4,659
 Deferred federal and
 state income taxes 3,187 886
 TOTAL ASSETS $ 504,037 $ 493,924
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits $ 426,701 $ 420,740
 Borrowed funds 2,267 2,645
 Advance payments by borrowers
 for taxes and insurance 3,656 3,486
 Accrued expenses and other
 liabilities 4,031 2,542
 TOTAL LIABILITIES $ 436,655 $ 429,413
 Preferred stock, $.01 par value.
 Authorized 1,000,000 shares;
 none outstanding $ 0 $ 0
 Common stock, $.01 par value.
 Authorized 5,000,000 shares;
 issued 3,306,250; outstanding
 3,017,148 shares 33 33
 Additional paid-in capital 31,222 31,187
 Treasury stock-289,102 shares
 acquired at cost (4,774) 0
 Retained earnings,
 substantially restricted 44,504 37,661
 Common stock purchased by:
 Employee stock ownership plan (2,267) (2,645)
 Management recognition
 & retention (1,336) (1,725)
 TOTAL STOCKHOLDERS' EQUITY $ 67,382 $ 64,511
 TOTAL LIABILITIES &
 STOCKHOLDERS' EQUITY $ 504,037 $ 493,924
 LIBERTY BANCORP, INC.
 CONSOLIDATED STATEMENT OF EARNINGS
 (000s omitted)
 For the three For the twelve
 months ended months ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (Unaudited) (Unaudited)
 Total interest income $ 9,762 $ 10,197 $ 40,941 40,645
 Total interest expense 4,886 6,781 21,681 27,479
 Net interest income $ 4,876 $ 3,416 $ 19,260 $ 13,166
 Provision for
 loan losses 225 200 874 865
 Net int. inc. after
 prov. for ln. loss $ 4,651 $ 3,216 $ 18,386 $ 12,301
 Total non-interest
 income 96 154 690 440
 Total general &
 administrative expenses 2,491 1,718 9,174 6,734
 Income before income tax taxes
 and cumulative effect of
 changes in accounting
 principles $ 2,256 $ 1,652 $ 9,902 $ 6,007
 Income taxes 911 407 3,540 2,513
 Income before cumulative
 effect of changes
 in accounting
 principles 1,345 1,245 6,362 3,494
 Cumulative effect at
 Jan. 1, 1992, of change
 in accounting for
 income taxes 936 0 936 0
 Cumulative effect at
 Jan. 1, 1992, of change
 in accounting for
 postretirement benefits
 other than pensions, net
 of income tax expense
 of $288,000 (455) 0 (455) 0
 Net income $ 1,826 $ 1,245 $ 6,843 $ 3,494
 Primary earnings per share:
 Income before cumulative
 effect of changes in
 accounting principles $ 0.41 N/A $ 1.92 N/A
 Cumulative effect of
 change in accounting
 for income taxes 0.29 N/A 0.28 N/A
 Cumulative effect of change
 in accounting for
 postretirement
 benefits (0.14) N/A (0.14) N/A
 NET INCOME $ 0.56 N/A $ 2.06 N/A
 Fully diluted
 earnings per share:
 Income before cumulative
 effect of changes
 in accounting
 principles $ 0.41 N/A $ 1.90 N/A
 Cumulative effect of
 change in accounting
 for income taxes $ 0.29 N/A $ 0.28 N/A
 Cumulative effect of
 change in accounting
 for postretirement
 benefits (0.14) N/A (0.14) N/A
 NET INCOME $ 0.56 N/A $ 2.04 N/A
 N/A -- The information is not meaningful as the stock conversion was completed Dec. 23, 1991.
 LIBERTY BANCORP, INC.
 FINANCIAL RATIOS AND DATA
 (000s omitted)
 For three months For twelve months
 ended Dec. 31, ended Dec. 31,
 1992 1991 1992 1991
 SELECTED FINANCIAL RATIOS:
 Average shares
 fully diluted 3,245,579 N/A 3,351,195 N/A
 Return on
 Average Assets (pct.) 1.46 1.07 1.37 0.78
 Interest Rate Spread (pct.) 3.40 2.44 3.30 2.46
 Net Interest Margin (pct.) 3.98 2.99 3.95 3.00
 Ratio of Interest-earning
 Assets to Interest-bearing
 Liabilities 1.15x 1.09x 1.15x 1.09x
 OTHER FINANCIAL DATA: Dec. 31, Sept.30, June 30, March 31,
 1992 1992 1992 1992
 Common Shares
 Outstanding 3,017,148 3,140,938 3,186,300 3,306,250
 Stockholders' Equity $ 67,383 $ 67,064 $ 65,878 $ 65,942
 Book Value Per Share $ 22.33 $ 21.35 $ 20.68 $ 19.94
 General Loan
 Loss Reserves $ 2,850 $ 2,626 $ 2,405 $ 2,192
 Non-performing loans $ 1,008 $ 1,154 $ 1,202 $ 1,144
 Net Loan Charge-offs
 During the Period $ 1 $ 4 $ 4 $ 1
 (1) -- Income and expense items have been annualized in calculating ratios for these periods.
 (2) -- N/A -- The information is not meaningful as the stock conversion was completed Dec. 23, 1991.
 NOTE: Dollars in thousands except earnings per share and book value.
 -0- 1/15/93
 /CONTACT: James K. Mair, manager-shareholder services for Liberty Bancorp, Inc., 312-334-1200/
 (LBCI)


CO: Liberty Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

JG -- DE016 -- 5472 01/15/93 15:45 EST
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Date:Jan 15, 1993
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