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PRIME BANCSHARES REPORTS YEAR END AND FOURTH QUARTER EARNINGS

 PRIME BANCSHARES REPORTS YEAR END AND FOURTH QUARTER EARNINGS
 DECATUR, Ga., Jan. 30 /PRNewswire/ -- Prime Bancshares, Inc. (NASDAQ: PMBS) today reported record net earnings for 1991 of $3.2 million, up 46 percent over 1990 net earnings of $2.2 million.
 On a per share basis, earnings increased to $1.96 a share for 1991 from $1.29 a share for 1990. Net earnings for the fourth quarter amounted to $1.4 million, or $.82 a share, compared with $576,000, or $.34 a share for the same period of 1990. The improvement in 1991 and fourth quarter earnings is a result of an increase in loan sale income from mortgage banking activities and a substantial reduction in the provision for possible loan losses.
 "Our 1991 results were a significant improvement from 1990, and are a result of strategies we put in place in 1988 to achieve long-term profitability," said Darrell D. Pittard, president and chief executive officer of Prime Bancshares. "In 1992, as the economy improves, we will continue with these strategies by focusing on increasing earnings, improving operating efficiency, generating high-quality assets, and sustaining a strong capital position."
 During 1991, Prime provided $1.8 million for possible loan losses, compared with $3.6 million for 1990. The loan loss provision for the fourth quarter of 1991 amounted to $176,000, compared with $2.8 million for the same period in 1990.
 At Dec. 31, non-performing loans totaled $2.7 million. Prime's loan loss reserve of $3.1 million at Dec. 31 was 118 percent of non-performing loans. At year-end 1991, real estate owned and real estate owned-in substance were carried at net realizable values of $4.2 million and $9.0 million, respectively. Non-performing assets to total assets was 2.38 percent at Dec. 31, compared with 2.04 percent at Dec. 31, 1990.
 During 1991 income from mortgage banking activities increased substantially as interest rates declined. Total residential mortgage loan originations for the year amounted to $243 million, compared with $160 million in 1990. The total amount of residential mortgage loans sold for 1991 was $224 million, resulting in gains and fees on sale of $3.0 million.
 Total loans originated for the year increased to $436 million, compared with $305 million in 1990. In addition to increased mortgage loan originations, this growth is a result of an increase in construction real estate loans, commercial business loans, consumer loans, and SBA loans. Total deposits increased by $112 million during 1991 to $513 million.
 Total assets increased to $665 million at Dec. 31, compared with $540 million at year-end 1990. Return on average assets for 1991 was .52 percent, compared with .39 percent a year ago. The return on average common stockholders' equity was 8.78 percent in 1991, compared with 6.50 percent in 1990. Total stockholders' equity of $38 million represented 5.7 percent of total assets at year-end 1991, exceeding minimum regulatory capital guidelines. Book value per share was $23.20 at Dec. 31, compared with $20.74 at Dec. 31, 1990.
 The corporation's subsidiary, Prime Bank, FSB, in its 50th year of operation, maintains 14 full-service offices and 11 loan origination offices in metropolitan Atlanta. The common stock of Prime Bancshares is traded over-the-counter and quoted on the National Association of Securities Dealers Automated Quotation (NASDAQ) System under the symbol "PMBS."
 PRIME BANCSHARES, INC.
 Consolidated Statements of Earnings
 ($ in thousands)
 Years ended Dec. 31 1991 1990 1989
 Interest income:
 Interest on loans $31,621 $34,607 $29,429
 Interest on mortgage-backed securities 19,123 15,487 13,111
 Interest and dividends on investments 3,373 3,555 2,804
 Total interest income 54,117 53,649 45,344
 Interest expense:
 Interest on deposits 33,294 33,010 27,341
 Interest on Federal Home Loan Bank
 advances 4,035 3,108 2,585
 Interest on bonds payable 2,377 2,695 3,070
 Interest on other borrowed money 2,451 3,359 4,484
 Total 42,157 42,172 37,480
 Less capitalized interest (324) --- ---
 Total interest expense 41,833 42,172 37,480
 Net interest income 12,284 11,477 7,864
 Provision for losses on loans 1,806 3,600 1,791
 Net interest income after provision
 for losses on loans 10,478 7,877 6,073
 Other income:
 Loan fees and service charges 1,165 681 547
 Loan servicing fees 1,214 850 728
 Gain on sales of loans and mortgage-
 backed securities 4,870 1,510 1,632
 Gain on sale of loan servicing rights 1,425 --- ---
 Gain on sale of investment securities 951 1 93
 Gain on sale of deposits --- 2,882 ---
 Gains on sales of office properties 19 810 2,284
 Dividends on FHLB stock 297 319 287
 Deposit service charges 788 679 647
 Other income 290 771 540
 Total other income 11,019 8,503 6,758
 Operating expense:
 Salaries and employee benefits 7,452 6,020 4,529
 Net occupancy expense of premises 2,805 2,103 1,323
 Federal insurance premium 964 762 625
 Data processing expense 491 444 332
 Advertising and promotion 826 750 691
 Other operating expense 4,171 2,845 1,939
 Total operating expense 16,709 12,924 9,439
 Earnings before income taxes 4,788 3,456 3,392
 Income tax expense 1,577 1,255 1,229
 Net earnings $ 3,211 $ 2,201 $ 2,163
 Earnings per share $ 1.96 $ 1.29 $ .74
 PRIME BANCSHARES, INC. AND SUBSIDIARY
 Financial Highlights
 ($ in thousands, except per share data)
 For the year: 1991 1990
 Net earnings $ 3,211 $ 2,201
 Per common share:
 Earnings 1.96 1.29
 Dividends paid .20 .10
 Net interest income 12,284 11,477
 Net interest yield 2.11 pct. 2.15 pct.
 Return on average assets .52 pct. .39 pct.
 At Dec. 31 1991 1990
 Total assets $665,295 $539,895
 Loans 314,403 284,124
 Mortgage-backed securities 200,718 180,718
 Non-performing assets 15,808 11,035
 Deposits 512,921 400,826
 Shareholders' equity 37,949 34,007
 Equity to total assets 5.70 pct. 6.30 pct.
 Book value per share $ 23.20 $ 20.74
 Common shares outstanding 1,635,433 1,639,858
 -0- 1/30/92
 /CONTACT: Lynne Van Brocklin of Prime Bancshares, 404-377-0211/
 (PMBS) CO: Prime Bancshares, Inc. ST: Georgia IN: FIN SU: ERN


BR-BN -- AT015 -- 5407 01/30/92 16:05 EST
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Date:Jan 30, 1992
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