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PROVIDENT BANCORP REPORTS RECORD 1993 EARNINGS OF $51.3 MILLION AND FOURTH QUARTER EARNINGS OF $13.3 MILLION

 CINCINNATI, Jan. 13 /PRNewswire/ -- Provident Bancorp, Inc. (NASDAQ-NMS: PRBK) today reported record net earnings for the year ended Dec. 31, 1993, of $51.3 million, or $2.85 per fully diluted share, as compared to $43.6 million, or $2.61 per share on a pro forma basis for the comparable period of 1992. The results for the 1992 twelve month period included a net after tax amount of approximately $2.9 million, or $.17 per share, in non-recurring net income.
 For the three months ended Dec. 31, 1993, net earnings were $13.3 million, or $.74 per fully diluted share, as compared to $13.6 million, or $.76 per share for the comparable period of 1992. Fourth quarter 1992 net earnings included approximately $1.7 million, or $.09 per share, in net after tax non-recurring income related to securities gains and mergers.
 Allen L. Davis, president, stated, "We are very pleased with our strong performance for the fourth quarter and all of 1993. Core earnings for the year increased 26 percent to $51.4 million, up from $40.7 million last year. For the quarter, core earnings grew to $13.3 million from $11.9 million last year, an increase of 12 percent. Returns on equity and assets were exceptional at 16 percent and 1.3 percent respectively, for the quarter and full year.
 "Loan growth remained robust as our loans increased 6 percent since last quarter and 17 percent over year-end 1992, to $3.4 billion," continued Davis. "Our strategic focus on strengthening our market position in both commercial lending and consumer installment loans was successful in 1993.
 "Our balance sheet remains strong. Loan quality is excellent, net charge offs for 1993 were a very low .24 percent of average net loans and non performing assets declined 34 percent to $27 million at year end. Book value per share stood at $18.54 at year-end 1993, representing a 12 percent increase from Dec. 31, 1992," concluded Davis.
 Core earnings exclude non-recurring gains and charges related to accounting changes, acquisitions, securities sales, sales of mortgage instruments acquired in Provident's December 1991 acquisition of Hunter Savings Association and taxes for prior periods attributable to the Aug. 9, 1993, increase in the federal income tax rates.
 Net interest income on a tax equivalent basis increased 10 percent to $43.3 million for the fourth quarter of 1993, as compared to $39.5 million for the fourth quarter 1992. For the year 1993, net interest income increased 12 percent over 1992, to $163.3 million. The net interest margin declined to 4.39 percent for the fourth quarter 1993, from 4.63 percent for the fourth quarter 1992, which decline was more than offset by an increase in interest earning assets. The net interest margin for the year ended Dec. 31, 1993, increased to 4.41 percent, as compared to 4.33 percent for the year ended Dec. 31, 1992.
 Fee income totaled $6.2 million for the fourth quarter of 1993 and $24 million for the year 1993, reflecting increases of 7 percent and 14 percent over the comparable periods of 1992. Non-deposit fee revenue grew 20 percent to $10 million for the year ended Dec. 31, 1993, primarily from contributions by securities brokerage, credit card operations, mutual fund operations and loan servicing.
 Asset quality and loan loss reserves continue to improve. At Dec. 31, 1993, nonperforming loans represented only .54 percent of total loans, and nonperforming assets were only .80 percent of total loans and other real estate owned. The reserve for possible loan losses equaled 223 percent of nonperforming loans.
 Provident Bancorp's operating efficiency remains strong. The efficiency ratio for the fourth quarter 1993 and all of 1993 was 55 percent, as compared to 58 percent in 1992.
 Provident Bancorp, Inc., is a $4.7 billion bank holding company headquartered in Cincinnati. Its banking subsidiaries are The Provident Bank, which has 56 offices, including 41 in the greater Cincinnati area, 12 in the greater Dayton region, two in Cleveland and one in Columbus, Heritage Savings Bank, which has three offices in the Greater Cincinnati area, and The Provident Bank of Kentucky, which has seven offices in Northern Kentucky.
 Provident Bancorp, Inc. and Subsidiaries
 Financial Highlights
 (unaudited)
 For the Period Ended Dec. 31 Three Months Twelve Months
 (Dollars in Millions Except Pct Pct
 Per Share Data) 1993 1992 Chg 1993 1992 Chg
 RESULTS OF OPERATIONS:
 Net Interest Income (Tax Eqv) $43.3 $39.5 10 $163.3 $146.0 12
 Provision for Pos. Loan Losse 3.0 3.5 (14) 12.0 14.7 (18)
 Earnings Bef. Cumulative Eff.
 of Chgs. in Acct. Prin. 13.3 13.6 (2) 51.3 45.7 12
 Cumulative Eff. of Chgs. in
 Accounting Principles (A) - - - - (2.1) NM
 Net Earnings 13.3 13.6 (2) 51.3 43.6 18
 FINANCIAL CONDITION AT PERIOD END:
 Assets $4,698 $3,980 18
 Deposits 3,232 3,130 3
 Shareholders' Equity 336 296 14
 ASSET QUALITY RATIOS AT PERIOD END:
 Res. Pos. Loan Losses / Tot Lns 1.20% 1.21% (1)
 Res. for Ln Loss to Nonperf. Ln 222.97 138.44 61
 Nonperf. Lns to Total Lns 0.54 0.88 (39)
 Nonper. Assets to Tot Lns & ORE 0.80 1.40 (43)
 SELECTED RATIOS:
 Performance Ratios:
 Return on Average Assets
 Bef Chgs. in Acct. Prin. 1.28% 1.48% (14) 1.30% 1.26% 3
 Return on Avg. Assets 1.28 1.48 (14) 1.30 1.20 8
 Return on Avg. Shareholders' Equity
 Bef Chgs. in Acct. Prin. 16.22 18.49 (12) 16.33 17.89 (9)
 Return on Avg. Shareholders'
 Equity 16.22 18.49 (12) 16.33 17.05 (4)
 Avg. Shareholders' Equity to
 Average Assets 7.89 8.02 (2) 7.94 7.02 13
 Capital Adequacy Ratios (Period End):
 Common Equity to Assets 6.36 6.41 (1)
 Shareholders' Equity to Total
 Assets 7.15 7.45 (4)
 Tier I Leverage Ratio 7.90 7.87 0
 Risk-Based Capital Ratios (B):
 Tier I Capital 8.89 9.20 (3)
 Total Capital 12.24 10.71 14
 PER COMMON SHARE (C):
 Earnings Bef. Cumulative Eff.
 of Chgs. In Acct. Principles
 Primary $0.80 $0.83 (4) $3.09 $3.00 3
 Fully Diluted 0.74 0.76 (3) 2.85 2.74 4
 Cumulative Eff. of Chgs. In
 Accounting Principles
 Primary - - - - (0.15) NM
 Fully Diluted - - - - (0.13) NM
 Net Earnings
 Primary 0.80 0.83 (4) 3.09 2.85 8
 Fully Diluted 0.74 0.76 (3) 2.85 2.61 9
 Dividends 0.22 0.18 22 0.82 0.68 21
 Book Value (Period End):
 Primary 18.95 16.66 14
 Fully Diluted 18.54 16.59 12
 (A) -- In 1992 Bancorp adopted Financial Accounting Standards
 Board (FASB) Statement No. 106 "Employers' Accounting for
 Postretirement Benefits Other Than Pensions" and Statement
 No. 109 "Accounting for Income Taxes." The effect of adopting
 FASB statement 106 in 1992 was to decrease net earnings
 $2.3 million, of which $2.1 million is the cumulative effect
 on prior years. The adoption of FASB 109 did not require
 an adjustment to net earnings.
 (B) -- Estimated.
 (C) -- Per common share calculations for the 12 months ended
 Dec. 31, 1992, are based upon pooled results of operations which
 include the entities acquired in July, 1992 and include adjustments
 to earnings associated with the receipt of proceeds from the sale of
 common stock in the mutuals conversion merger transactions. Common
 shares given in the transactions are assumed to have been issued on
 Jan. 1, 1992. The 1992 per common share data presented above has
 been adjusted to reflect the 3-for-2 common stock split effective
 Jan. 20, 1993.
 Provident Bancorp, Inc. and Subsidiaries
 Consolidated Statements Of Earnings
 (unaudited) Three Months Ended Twelve Months Ended
 (In Thousands) December 31, December 31,
 1993 1992 1993 1992
 Int. Income:
 Int. and Fees on Loans:
 Taxable $65,453 $62,290 $250,733 $250,212
 Exempt From Fed Inc Taxes 161 323 770 1,305
 65,614 62,613 251,503 251,517
 Int. on Investment Securities:
 Taxable 8,551 7,840 33,272 33,075
 Exempt From Fed Inc Taxes 2 9 9 196
 8,553 7,849 33,281 33,271
 Int. on Federal Funds Sold and
 Reverse Repurchase Agreements 321 638 2,055 2,834
 Total Int. Income 74,488 71,100 286,839 287,622
 Int. Expense:
 Int. on Deposits:
 Savings Deposits 6,257 7,984 28,255 37,175
 Time Deposits 18,263 20,469 73,579 89,846
 Total Int. on Deposits 24,520 28,453 101,834 127,021
 Int. on Short-Term Debt 4,400 2,467 15,281 11,115
 Int. on Long-Term Debt 2,329 811 6,888 4,226
 Total Int. Expense 31,249 31,731 124,003 142,362
 Net Int. Income 43,239 39,369 162,836 145,260
 Provision for Pos. Loan Losses 3,000 3,500 12,000 14,663
 Net Int. Income After Provision
 for Pos. Loan Losses 40,239 35,869 150,836 130,597
 Other Income:
 Service Charges on Dep. Acct. 3,810 3,429 14,076 12,715
 Other Service Charges and Fees 2,377 2,344 9,950 8,317
 Gain on Sale of Loans 854 979 6,224 8,166
 Security Gains 4 1,128 934 9,772
 Other 1,708 1,678 7,436 7,866
 Total Other Income 8,753 9,558 38,620 46,836
 Other Expense:
 Compensation:
 Salaries 11,786 11,278 46,176 42,006
 Benefits 1,816 1,624 7,970 6,735
 Profit Sharing 909 995 3,523 3,329
 Charges and Fees 1,708 1,434 4,943 6,841
 Occupancy 1,684 1,709 6,818 6,964
 Equipment Expense 2,174 1,688 7,793 6,507
 Deposit Insurance 1,706 1,734 6,890 6,633
 Professional Services 1,341 1,377 5,117 4,995
 Merger Related - 406 - 1,460
 Other 5,374 5,312 20,909 19,664
 Total Other Expense 28,498 27,557 110,139 105,134
 Earnings Before Income Taxes and Cumulative
 Effect of Chgs in Acct. Prin. 20,494 17,870 79,317 72,299
 Appl. Income Taxes 7,187 4,299 28,045 26,535
 Earnings Before Cumulative Effect of
 Changes in Acct. Principles 13,307 13,571 51,272 45,764
 Cumulative Effect of Changes in
 Accounting Principles - - - (2,146)
 Net Earnings $13,307 $13,571 $51,272 $43,618
 Provident Bancorp, Inc. and Subsidiaries
 Condensed Consolidated Statements Of Earnings
 (unaudited)
 (In Thousands)
 Quarter Ended
 Dec. Sept. June Mar. Dec.
 1993 1993 1993 1993 1992
 Total Interest Income $74,488 $72,896 $70,426 $69,029 $71,100
 Taxable Equiv. Adjustment 88 91 109 132 171
 Taxable Equiv. Int. Income 74,576 72,987 70,535 69,161 71,271
 Total Interest Expense 31,249 31,172 30,781 30,801 31,731
 Net Interest Income 43,327 41,815 39,754 38,360 39,540
 Provision for Loan Losses 3,000 3,000 3,000 3,000 3,500
 Net Interest Income After Prov.
 for Loan Losses 40,327 38,815 36,754 35,360 36,040
 Other Income 8,753 10,841 9,669 9,357 9,558
 Other Expense 28,498 28,670 26,902 26,069 27,557
 Earnings Before Income Taxes and Cumulative
 Eff of Chgs. in Acct Prin 20,582 20,986 19,521 18,648 18,041
 Applicable Income Taxes(Credit):
 Attributable to Merger Tra - - - - (947)
 Other 7,187 7,803 6,804 6,251 5,246
 Total Applicable Inc. Ta 7,187 7,803 6,804 6,251 4,299
 Taxable Equiv. Adjustment 88 91 109 132 171
 Earnings Bef. Cumulative Effect of Chgs.
 in Accounting Principle 13,307 13,092 12,608 12,265 13,571
 Cumulative Effect of Chgs. in
 Accounting Principle - - - - -
 Net Earnings $13,307 $13,092 $12,608 $12,265 $13,571
 Net Earn. Appl. to Comm. St.$12,565 $12,349 $11,865 $11,464 $12,655
 Per Common Share (A):
 Earnings Bef. Cum. Eff. of Accounting Chgs.
 Primary $0.80 $0.79 $0.76 $0.74 $0.83
 Fully Diluted $0.74 $0.73 $0.70 $0.68 $0.76
 Cumulative Eff. of Accounting Chgs.
 Primary - - - - -
 Fully Diluted - - - - -
 Net Earnings
 Primary $0.80 $0.79 $0.76 $0.74 $0.83
 Fully Diluted $0.74 $0.73 $0.70 $0.68 $0.76
 Dividends $0.22 $0.20 $0.20 $0.20 $0.18
 Net Interest Margin 4.39% 4.39% 4.43% 4.42% 4.63%
 Avg Common and Common Equiv. Shares (A):
 Primary 15,705 15,661 15,636 15,493 15,327
 Fully Diluted 18,074 17,989 17,965 17,976 17,907
 (A) -- The per common share calculations for the 12 months ended
 Dec. 31, 1992, are based on pro forma net earnings and pro forma
 common shares, which assume that the mutual acquisitions had been
 consummated at the beginning of the year. The quarter and 12 months
 ended December, 1992 presented above have been adjusted to reflect
 the 3-for-2 common stock split effective Jan. 20, 1993.
 Provident Bancorp, Inc. and Subsidiaries
 Condensed Consolidated Statements Of Earnings
 (unaudited)
 (In Thousands)
 Twelve Months End Dec. 31
 1993 1992
 Total Interest Income $286,839 $287,622
 Taxable Equiv. Adjustment 420 773
 Taxable Equiv. Interest Income 287,259 288,395
 Total Interest Expense 124,003 142,362
 Net Interest Income 163,256 146,033
 Provision for Loan Losses 12,000 14,663
 Net Interest Income After Prov.
 for Loan Losses 151,256 131,370
 Other Income 38,620 46,836
 Other Expense 110,139 105,134
 Earnings Before Income Taxes and Cumulative
 Effect of Chgs. in Accounting Princi 79,737 73,072
 Applicable Income Taxes(Credit):
 Attributable to Merger Trans - 3,353
 Other 28,045 23,182
 Total Applicable Inc. Tax 28,045 26,535
 Taxable Equiv. Adjustment 420 773
 Net Earnings Bef. Cumulative Effect of
 Chgs. in Accounting Principle 51,272 45,764
 Cumulative Effect of Chgs. in
 Accounting Principle - (2,146)
 Net Earnings $51,272 $43,618
 Net Earn. Appl. to Common Stock $48,243 $40,295
 Per Common Share (A):
 Earnings Bef. Cum. Eff. of Accounting Chgs.
 Primary $3.09 $3.00
 Fully Diluted $2.85 $2.74
 Cumulative Eff. of Accounting Chgs.
 Primary - ($0.15)
 Fully Diluted - ($0.13)
 Net Earnings
 Primary $3.09 $2.85
 Fully Diluted $2.85 $2.61
 Dividends $0.82 $0.68
 Net Interest Margin 4.41% 4.33%
 Average Common and Common Equivalent Shares (A):
 Primary 15,624 14,286
 Fully Diluted 18,001 16,844
 (A) -- The per common share calculations for the 12 months ended
 Dec. 31, 1992, are based on pro forma net earnings and pro forma
 common shares, which assume that the mutual acquisitions had been
 consummated at the beginning of the year. The quarter and 12 months
 ended December, 1992 presented above have been adjusted to reflect
 the 3-for-2 common stock split effective Jan. 20, 1993.
 -0- 1/13/94
 /CONTACT: Marcia A. Gammeter, vice president, corporate communications, of Provident Bancorp, Inc., 513-579-2741/
 /FIRST ADD -- CONTINUATION OF TABULAR MATERIAL -- TO FOLLOW/
 (PRBK)


CO: Provident Bancorp, Inc. ST: Ohio IN: FIN SU: ERN

KL -- CL003 -- 1638 01/13/94 07:32 EST
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