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SECURITY FINANCIAL GROUP REPORTS SECOND QUARTER RESULTS

 SECURITY FINANCIAL GROUP REPORTS SECOND QUARTER RESULTS
 ST. CLOUD, Minn., April 22 /PRNewswire/ -- Security Financial Group,


Inc. (NASDAQ: SFGI) today reported net income of $507,000 or $.70 per share, on a fully diluted basis, for its second quarter, which ended March 31, 1992, compared with a loss of $1,663,000 or $2.36 per share for the same period in 1991.
 Contributing significantly to the quarter's improvement was $486,000 in income related to a settlement reached with the Internal Revenue Service. As previously reported, the settlement was prompted by recent favorable thrift industry litigation involving tax bad debt losses not deducted in previous tax years. Other major factors in the quarter-to- quarter change were results of investment transactions and the impact of provisions for losses on loans and real estate. During the second quarter a year ago the Bank sold long-term mortgage-related securities which resulted in a $737,000 loss. There were no investment sales during the 1992 quarter. In the quarter ended March 31, 1992, the Bank provided $220,000 for losses; principally reflecting losses on foreclosed commercial real estate properties. A year ago, the Bank expensed $1.3 million for losses on loans and real estate in response to increased loan delinquencies and valuation concerns on owned commercial properties.
 Security's net interest income for the second quarter was $1,947,000, comparable to the prior year's second quarter amount. From a year ago, average assets and liabilities have decreased by more than $40 million. However, Security's spread between asset yields and rates on interest-bearing liabilities increased from 2.74 percent to 3.27 percent. Low short-term interest rates in recent months combined with reductions in certain interest-earning asset and interest-bearing liability categories have resulted in decreases of 24 percent and 33 percent in interest income and interest expense, respectively, when compared to amounts from the second quarter a year earlier. The reductions in assets and liabilities reflect sales and maturities of securities as well as loan payoffs, paydowns and chargeoffs since quarter end a year ago.
 Comparing favorably between Security's current quarter and the second quarter of 1991 was the Bank's lower level of noninterest expense, down approximately 15 percent. Lower personnel costs, due largely to a staff reduction late in the second quarter of 1991 and lower marketing expenses were significant change components. Additionally, severance and other non-recurring expenses in excess of $200,000 were reflected in the prior year quarterly amounts.
 Commenting on the quarterly results, Warren W. Teigen, Chairman and Chief Executive Officer of the Bank's holding company, said, "Through continued focus on controllable noninterest expenses, and net interest margin maintenance, the Bank has been able to steadily improve its regulatory capital ratios." Teigen added, "At March 31, 1992, the Bank's tangible and core capital were 6.2 percent, while risk-weighted capital was just under 9.8 percent."
 Security Financial reported net income of $677,000 for the six-month period ended March 31, 1992, compared with a net loss of $1,369,000 for the same period in 1991. The principal components of the improvement from 1991 to 1992 are the same as those noted above in comments addressing the quarter-to-quarter change.
 Security Financial Group, Inc. provides financial services to central Minnesota through its operating subsidiary Security Financial Banking and Savings, FSB, a $260 million savings Bank with headquarters in St. Cloud and offices in St. Cloud, Elk River, Monticello, Mora, Princeton, Sauk Rapids and Waite Park, Minn. Security Financial Group, Inc. is traded on the national over-the-counter market under the NASDAQ symbol SFGI.
 SECURITY FINANCIAL GROUP, INC. OPERATING HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Six Months Ended
 3/31/92 3/31/91 3/31/92 3/31/91
 Total revenues $6,146 $6,624 $12,030 $14,581
 Interest income 5,330 7,007 10,938 14,597
 Interest expense 3,383 5,086 7,298 10,604
 Net interest income 1,947 1,921 3,640 3,993
 Provision for losses 220 1,340 250 1,503
 Net interest income
 after provision for
 losses 1,727 581 3,390 2,490
 Noninterest income (loss) 816 (383) 1,092 (16)
 Noninterest expense 1,758 2,060 3,420 3,842
 Income (loss) before
 income taxes 785 (1,862) 1,062 (1,368)
 Income tax expense
 (benefit) 278 (199) 385 1
 Net income (loss) $507 $(1,663) $677 $(1,369)
 Earnings per share
 Primary $.70 $(2.36) $0.95 $(1.95)
 Fully-diluted $.70 $(2.36) $0.93 $(1.95)
 -0- 4/22/92
 /CONTACT: Warren W. Teigen or Charles K. Engebretson, both of Security Financial, 612-251-4500/
 (SFGI) CO: Security Financial Group, Inc. ST: Minnesota IN: FIN SU: ERN


KH -- MN013 -- 1418 04/22/92 15:52 EDT
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Date:Apr 22, 1992
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