Printer Friendly

LIBERTY BANCORP, INC. FOURTH QUARTER EARNINGS $2.0 MILLION

 CHICAGO, Jan. 13 /PRNewswire/ -- Liberty Bancorp, Inc. (NASDAQ: LBCI), the holding company for Liberty Federal Savings Bank, today announced earnings for the fourth quarter ending Dec. 31, 1993. Net income was $2.0 million for the three months ending Dec. 31, 1993, an increase of $683,000 or 50.75 percent from the comparable quarter in 1992 of $1.3 million. For the 12 month period ending Dec. 31, 1993 and 1992 net income before cumulative effect of changes in accounting principles was $6.9 million and $6.4 million respectively, an increase of $535,000 or $8.41 percent. The cumulative effect of changes in accounting principles increased net income by $481,000 in 1992.
 Fully diluted earnings per share equaled $.64 for the fourth quarter of 1993, as compared to $.41 for the same period in 1992. For the 12 months ending Dec. 31, 1993 earnings per share were $2.16 as compared to $2.04 after cumulative effect of changes in accounting principles for the same period in 1992.
 During the fourth quarter of 1993 Liberty Federal Savings Bank sold its investment in Federal Home Loan Mortgage Corp. ("FHLMC") common stock at a net gain, after federal and state income taxes, of $1.0 million, which equates to earnings per share of $.31.
 At Dec. 31, 1993 total assets amounted to $524.8 million, an increase of $20.7 million or 4.11 percent as compared to $504.0 million at Dec. 31, 1992.
 CHANGES IN ACCOUNTING PRINCIPLES
 The holding company adopted changes in accounting principles for income taxes and post-retirement benefits in the fourth quarter of 1992 retroactive to Jan. 1, 1992. The cumulative effect for periods prior to Jan. 1, 1992, was to reduce income tax expense by $936,000 and establish an accrual for post-retirement benefits of $455,000. The amounts applicable to 1992 and 1993 are incorporated in operations. There were no comparable adjustments in 1993. Fully diluted earnings per share for the fourth quarter and 12 months ending Dec. 31, 1992, before the cumulative effect of changes in accounting principles, were $.41 and $1.90 respectively.
 COMPARISON OF OPERATING RESULTS
 FOR THE QUARTER ENDED DEC. 31, 1993 AND 1992
 For the quarter ended Dec. 31, 1993 total interest income amounted to $9.1 million, a decrease of $671,000 or 6.87 percent as compared to $9.8 million for the same period in 1992. The decrease in interest income is the direct result of the continuation of lower interest rates demanded by the mortgage market on refinances and originations. The average yield on earning assets for the quarter ending Dec. 31, 1993 dropped to 7.11 percent from 7.98 percent for the same period in 1992. Comparable figures for the 12 month period in 1993 and 1992 were 7.42 percent and 8.40 percent respectively. Total interest expense decreased $436,000 or 8.92 percent to $4.5 million for the quarter ending Dec. 31, 1993 as compared to $4.9 million for the same period in 1992. The average cost of funds for the fourth quarter of 1993 dropped to 3.99 percent from 4.58 percent in 1992. Comparable figures for the 12 months ending Dec. 31, 1993 and 1992 were 4.06 percent and 5.10 percent respectively.
 During the quarter $224,000 was provided for loan losses as compared to $225,000 in 1992.
 Non-interest income for fourth quarter of 1993 increased $1.6 million to $1.7 million as compared to $96,000 for the same period in 1992. Included in non-interest income is the gross gain on the sale of FHLMC common stock of $1.6 million. There were no comparable sales in 1992.
 Non-interest expense amounted to $2.8 million for the three months ending Dec. 31, 1993, an increase of $292,000 or 11.71 percent as compared to $2.5 million for the same period in 1992. Primary increases in non-interest expense are related to increases in salary and employee benefits of $103,000, advertising and promotion of $89,000 and office occupancy and equipment expense of $54,000. The majority of the above mentioned increases are the result of the Savings Bank opening its third office.
 Federal and state income taxes amounted to $1.3 million, an increase of $439,000 or 48.18 percent as compared to $911,000 for the same period in 1992. The increase in income tax expense for the quarter is the result of taxes on the sale of FHLMC common stock in the amount of $628,000, offset by $190,000 less tax resulting from a decrease in income of $507,000 before the gain on sale of FHLMC common stocks. The effective tax rates for the three month ending Dec. 31, 1993 and 1992 are 39.95 percent and 40.37 percent respectively. The normal combined effective federal and state income tax rate would approximate 38 percent.
 COMMENTS ON STATEMENT OF CONDITIONS
 During the 12 month period ending December 1993 interest earning deposits increased $19.1 million or 288.79 percent to $25.7 million at Dec. 31, 1993, from $6.6 million in 1992. Federal funds, commercial paper, and investment securities increased $3.8 million to $29.8 million from $26.0 million, an increase of 14.61 percent. Mortgage-backed securities decreased $10.2 million from normal repayments and prepayments to $34.7 million from $44.9 million at Dec. 31, 1993 and 1992 respectively, a decrease of 22.68 percent. Loans receivable net increased $7.1 million or 1.75 percent to $411.0 million from $404.0 million. Prepaid expenses and other assets increased $1.3 million or 20.79 percent to $7.5 million from $6.2 million at Dec. 31, 1993 and 1992 respectively. Included in prepaid expenses and other assets is cash investment in life insurance contracts which increased $1.2 million or 27.16 percent to $5.8 million from $4.6 million.
 During the year, the Savings Bank sold approximately $23.9 million of fixed rate mortgages and originated or purchased loans totaling $188.0 million. The increase in cash flow of approximately $22.9 million, primarily from the sale of mortgages in December, will be used for future expansion of the loan portfolio.
 Non-performing assets totaled $1.5 million at Dec. 31, 1993 as compared to $1.3 million at Dec. 31, 1992. No loss is expected in non- performing assets. At Dec. 31, 1993 and Dec. 31, 1992 non- performing assets as a percentage of total assets is .29 percent and .20 percent respectively. Allowance for loan losses as a percentage of non- performing assets is 228.55 percent and 207.82 percent at Dec. 31, 1993 and 1992 respectively.
 Savings deposits increased $14.2 million or 3.34 percent to $440.9 million at Dec. 31, 1993 from $426.7 million at Dec. 31, 1992. The savings deposit increase is the result of deposits acquired in a branch purchase amounting to $11.4 million plus dividends credited of $17.8 million offset by net savings withdrawals of $15.0 million. Borrowings amounted to $1.9 million and $2.3 million at Dec. 31, 1993 and 1992 respectively, a decrease of $378,000 or 16.67 percent. The outstanding borrowings at Dec. 31 of both years represent a loan to fund the Employee Stock Ownership Plan.
 Accrued expenses and other liabilities increased $1.1 million or 27.42 percent to $5.1 million from $4.0 million at Dec. 31, 1993 and 1992 respectively. The increase is primarily in the accruals for deferred compensation and post-retirement benefits of $1.0 million and increases in operating accruals of $352,000.
 Stockholders' equity totaled $73.4 million or 13.99 percent of assets as of Dec. 31, 1993, an increase of $6.0 million or 8.97 percent from $67.4 million at Dec. 31, 1992. The increase resulted from net income of $6.9 million plus credits from employee stock plans of $859,000 offset by dividends paid to stockholders of $1.4 million and a net change in Treasury Stock of $365,000.
 Liberty Federal Savings Bank is a federally chartered stock savings bank. The Savings Bank is a community-oriented bank offering traditional deposit and mortgage loan products. It operates three offices, one in northwestern Chicago and the others in Glenview and Morton Grove, Ill.
 LIBERTY BANCORP, INC.
 Consolidated Statements of Financial Condition
 (Dollars in thousands)
 Periods ended Dec. 31 1993 1992
 ASSETS: (Unaudited)
 Cash and due from banks $ 7,236 $ 7,299
 Interest-earning deposits 25,726 6,617
 Federal funds sold 2,000 300
 Commercial paper 5,200 4,800
 Investment securities 22,618 20,907
 Mortgage-backed securities 34,740 44,932
 Loans receivable, net 411,060 403,978
 Accrued interest receivable 2,379 2,517
 Real estate owned or in judgement 0 363
 Premises and equipment, net 3,084 2,939
 Deposit base intangibles 221 0
 Prepaid expenses and other assets 7,486 6,197
 Deferred federal and
 state income taxes 3,014 3,187
 TOTAL ASSETS $ 524,764 $ 504,036
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits $ 440,932 $ 426,701
 Borrowed funds 1,889 2,267
 Advance payments by borrowers
 for taxes and insurance 3,384 3,656
 Accrued expenses and other
 liabilities 5,134 4,030
 TOTAL LIABILITIES $451,339 $ 436,654
 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
 3,000,491 shares 33 33
 Additional paid-in capital 31,311 31,222
 Treasury stock-Shares acquired at cost:
 12/93 - 305,759; 12/92 - 289,102 (5,139) (4,774)
 Retained earnings,
 substantially restricted 50,052 44,504
 Common stock purchased by:
 Employee stock ownership plan (1,889) (2,267)
 Management recognition
 & retention (943) (1,336)
 TOTAL STOCKHOLDERS' EQUITY $ 73,425 $ 67,382
 TOTAL LIABILITIES &
 STOCKHOLDERS' EQUITY $ 524,764 $ 504,036
 LIBERTY BANCORP, INC.
 Consolidated Statement of Earnings (000s Omitted)
 Three months Twelve months
 Periods ended Dec. 31 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Total interest income $ 9,092 $ 9,762 $ 37,786 $ 40,941
 Total interest expense 4,451 4,886 18,109 21,681
 Net interest income $ 4,641 $ 4,876 $ 19,677 $ 19,260
 Provision for
 loan losses 224 225 883 874
 Net int. inc. after
 prov. for ln. loss $ 4,417 $ 4,651 $ 18,794 $ 18,386
 Total non-interest income 1,743 96 2,163 690
 Total general &
 administrative expenses 2,783 2,491 9,927 9,174
 Income before income taxes
 and cumulative effect of
 changes in accounting
 principles $ 3,377 $ 2,256 $ 11,030 $ 9,902
 Income taxes 1,349 911 4,133 3,540
 Income before cumulative
 effect of changes
 in accounting principles 2,028 1,345 6,897 6,362
 Cumulative effect at Jan.
 1, 1992, of change in
 accounting for income taxes 0 0 0 936
 Cumulative effect at Jan.
 1, 1992, of change in
 accounting for post-
 retirement benefits other
 than pensions, net of income
 tax expense of $288,000 0 0 0 (455)
 Net income $ 2,028 $ 1,345 $ 6,897 $ 6,843
 Primary earnings per share:
 Income before cumulative
 effect of changes in
 accounting principles $ 0.64 $ 0.42 $ 2.17 $ 1.92
 Cumulative effect of
 change in accounting
 for income taxes 0.00 0.00 0.00 0.28
 Cumulative effect of change
 in accounting for post-
 retirement benefits 0.00 0.00 0.00 (0.14)
 NET INCOME $ 0.64 $ 0.42 $ 2.17 $ 2.06
 Fully diluted earnings per share:
 Income before cumulative
 effect of changes
 in accounting principles 0.64 $ 0.41 $ 2.16 $ 1.90
 Cumulative effect of
 change in accounting
 for income taxes 0.00 0.00 0.00 0.28
 Cumulative effect of change
 in accounting for post-
 retirement benefits 0.00 0.00 0.00 (0.14)
 NET INCOME $ 0.64 $ 0.41 $ 2.16 $ 2.04
 LIBERTY BANCORP, INC.
 Financial Ratios And Data (000s omitted)
 Three months Twelve months
 Periods ended Dec. 31 1993 1992 1993 1992
 SELECTED FINANCIAL RATIOS:
 Average shares fully
 diluted 3,190,689 3,245,579 3,187,268 3,351,195
 Return on Average Assets 1.54% 1.07% 1.32% 1.37%
 Interest Rate Spread 3.12% 3.40% 3.36% 3.30%
 Net Interest Margin 3.63% 3.98% 3.86% 3.95%
 Ratio of Interest-earning
 Assets to Interest-bearing
 Liabilities 1.15x 1.15x 1.14x 1.15x
 OTHER FINANCIAL DATA: Dec. 31, Sept. 30, Jun. 30, Mar. 31,
 1993 1993 1993 1993
 Common Shares
 Outstanding 3,000,491 3,000,491 3,000,491 2,989,891
 Stockholders' Equity $ 73,425 $ 71,528 $ 70,099 $ 68,352
 Book Value Per Share $ 24.47 $ 23.84 $ 23.36 $ 22.86
 Allowance for Loan Losses $ 3,515 $ 3,291 $ 3,067 $ 3,006
 Non-performing loans $ 1,538 $ 1,948 $ 974 $ 1,427
 Net Charge-offs
 During the Period $ 0 $ 0 $ 160 $ 58
 (1) Income and expense items have been annualized in calculating ratios for these periods.
 NOTE: Dollars in thousands except earnings per share and book
 value.
 -0- 1/13/94
 /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

WB -- NY070 -- 1137 01/13/94 13:58 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 13, 1994
Words:2230
Previous Article:RICHARDSON ELECTRONICS, LTD. ANNOUNCES THIRD QUARTER DIVIDEND
Next Article:TURNER CONSTRUCTION COMPANY TO BUILD NEW HOME FOR THE ART INSTITUTE OF FORT LAUDERDALE
Topics:

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