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SOCIETY FOR SAVINGS REPORTS FIRST QUARTER NET INCOME OF $6.1 MILLION; REGULATORY ORDER LIFTED

 HARTFORD, Conn., April 22 /PRNewswire/ -- Society For Savings Bancorp, Inc., (NASDAQ: SOCS) ("Society" or "Bancorp") today announced net earnings, after cumulative effects of accounting changes, of $6.1 million or 51 cents per share for the first quarter ended March 31, 1993 compared to a net earnings of $1.3 million or 11 cents per share one year ago after an extraordinary gain of $724,000. In the first quarter 1992, Society had an extraordinary item of $724,000 caused by the tax benefit resulting from a year-end 1991 net operating loss (NOL) carry- forward. During the first quarter of 1993, Bancorp implemented two changes in accounting principle which included: FAS 106 "Post- Retirement Benefits Other Than Pensions" and FAS 109 "Accounting For Income Taxes." The Bank recognized the entire expense of post- retirement health care benefits for its retirees as an immediate charge to earnings for the accumulated benefit obligation. The Bank's retirees are the only eligible participants offered post-retirement benefits. The cumulative effects of these changes in accounting principle consisted of an expense of $4.3 million, net of a related tax benefit of $2.2 million, for FAS 106, and a tax benefit of $4.9 million for FAS 109. Under FAS 109, Bancorp established a federal income tax valuation reserve of approximately $18.5 million and a state income tax valuation reserve of approximately $28.6 million. First quarter 1993 earnings before these cumulative effects were $5.5 million or 46 cents per share as compared to the first quarter of 1992 earnings of $574,000 or 5 cents per share before that quarter's extraordinary item.
 Society's consumer finance subsidiary, Fidelity Acceptance Corporation, earned $6.9 million, an increase of $1.1 million for the previous year's first quarter. Fidelity had total assets of $552 million at March 31, 1993.
 Bancorp's non-performing assets, including loans delinquent more than 90 days and still accruing, were $104 million at March 31, 1993, which is a reduction of $71.1 million from one year ago. The reduction of non-performing assets since Dec. 31, 1992 was $22.1 million. Most of this decrease is attributable to an auction-sale of $25.7 million in book value of non-accruing loans and in-substance foreclosures. Bancorp's non-accrual loans declined $48.7 million to $30.3 million at March 31, 1993 from one year ago and $15 million since Dec. 31, 1992. The total reserve coverage of non-performing assets was 60.3 percent at March 31, 1993; however, when foreclosed real estate is excluded from total non-performing assets, the coverage ratio is 111.7 percent compared to 77.8 percent at March 31, 1992. Bancorp charged earnings with a provision for loan losses of $8.0 million for the first quarter ended March 31, 1993 which is down $2.9 million from the first quarter 1992 provision for loan losses of $10.9 million.
 At March 31, 1993 non-performing assets included foreclosed real estate of $51.9 million, down $27.9 million compared to the prior year total of $79.8 million. In the first quarter 1993 Bancorp added $2.4 million to the valuation allowance for losses on foreclosed real estate assets, while $3.9 million of foreclosed real estate was charge against this reserve. The first quarter 1992 addition to this valuation allowance was $2.0 million. At March 31, 1993, Bancorp's valuation allowance for foreclosed real estate is $4.5 million, which represents the estimated loss on disposition of foreclosed properties.
 Bancorp's allowance for loan losses at March 31, 1993 was $58.1 million, which was $16.0 million less than the March 31, 1992 allowance for loan losses of $74.1 million. Since year-end, Bancorp's allowance for loan losses declined $3.6 million. Net charge-offs of $11.6 million primarily resulted from the auction-sale in the first quarter of 1993.
 Gains on the sale of securities decreased by $5.0 million in the first quarter of 1993 to $2.1 million from the first quarter of 1992.
 Bancorp's net interest rate spread rose to 4.74 percent for the first quarter, which is an improvement of 30 basis points since the fourth quarter of 1992 and 165 basis points from one year ago. Net interest income, accordingly, increased $5.3 million to $30.0 million (21.3 percent) as compared to the first quarter of 1992.
 Bancorp's leverage capital ratio of 6.77 percent at March 31, 1993 showed an improvement of 167 basis points over the March 31, 1992 ratio of 5.10 percent. This ratio's improvement was based on increased shareholders' equity and a reduction in total assets on a comparative basis. The total risk based capital ratio was 12.70 percent at March 31, 1993, up 276 basis points from the first quarter 1992 risk based capital ratio of 9.94 percent. Total Bancorp assets were $2.4 billion at March 31, 1993, a decline of $343.7 million since the first quarter 1992 total assets of $2.8 billion and relatively unchanged since year- end 1992. Total shareholders' equity was $168.2 million at March 31, 1993, an increase of $17.1 million in shareholders' equity was $151.2 million at March 31, 1992.
 On April 21, 1993, Bancorp was advised that the Jan. 27, 1992 Order to Cease and Desist ("Order") previously instituted by the FDIC against Society for Savings was terminated.
 Society shareholders approved a merger between Bank of Boston Corporation and Bancorp on March 4, 1993, at a special shareholders meeting. The acquisition agreement, which was approved by the boards of directors of both companies, is subject to approvals by the regulators and other conditions.
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (In thousands)
 Three Months Ended Year Ended
 March 31, Dec. 31,
 1993 1992 1992
 Earnings:
 Net income (loss) $6,059 $1,298 $9,711
 Tax-Equivalent interest
 fees and dividend income $60,732 $72,135 $267,672
 Interest expense 30,572 47,228 158,951
 Tax-equivalent
 net interest income 30,160 24,907 108,721
 Tax equivalent adjustment 204 213 974
 Net interest income 29,956 24,694 107,747
 Provision for loan losses 8,045 10,916 28,720
 Net interest income after
 provision for loan losses 21,911 13,778 79,027
 Non-interest Income:
 Gains on securities 2,079 7,106 8,836
 Other 5,003 5,279 24,416
 Gain on sale of mortgage
 servicing rights --- --- ---
 Totals 7,082 12,385 33,252
 Non-interest Expense:
 Staff 8,729 9,292 36,541
 Occupancy 2,047 2,369 8,197
 Equipment 1,715 1,874 6,996
 Other 7,997 7,405 33,424
 Foreclosed real estate 2,339 3,145 14,673
 Totals 22,827 24,085 99,831
 Income (loss) before
 income taxes,
 extraordinary items and
 changes in accounting
 principles 6,166 2,078 12,448
 Income taxes (benefit) 673 1,504 4,750
 Income (loss) before
 extraordinary item and
 changes in accounting
 principles 5,493 574 7,698
 Extraordinary item --- 724 2,013
 Changes in accounting
 principles 566 --- ---
 Net income (loss) $6,059 $1,298 $9,711
 Per Common Share Data:
 Earnings (loss) before
 extraordinary item and
 changes in accounting
 principles 46 cents 5 cents 65 cents
 Earnings (loss) after
 extraordinary item and
 changes in accounting
 principles 51 cents 11 cents 82 cents
 Dividends declared --- --- ---
 Book value 14.02 12.75 13.44
 Avg. shares
 outstanding 11,984,000 11,854,000 11,871,000
 End of period shares
 outstanding 12,002,000 11,856,000 11,976,000
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (In thousands)
 Three Months Ended Year Ended
 March 31, Dec. 31,
 1993 1992 1992
 Average Balances-(a):
 Loans, net $1,537,449 $1,668,046 $1,626,250
 Investments, net 759,767 1,089,085 894,503
 Earning assets, net 2,297,216 2,757,131 2,520,753
 Total assets, net 2,448,940 2,905,248 2,676,759
 Deposits 1,594,345 2,187,172 1,871,666
 Short-term debt 3,817 23,398 20,528
 Long-term debt and
 capital notes 630,039 488,375 574,772
 Interest-bearing
 liabilities 2,209,736 2,664,554 2,443,923
 Shareholders' equity 164,831 151,501 155,244
 /NOTE: (a)-Includes assets held for sale/
 End of Period Balances:
 Loans, gross
 Accruing-(b) 1,547,448 1,651,173 1,572,481
 Nonaccruing and
 restructured-(b) 30,281 78,941 45,321
 Total loans 1,577,729 1,730,114 1,617,802
 Allowance for
 loan losses (58,126) (74,107) (61,692)
 Foreclosed real estate,
 gross 51,901 79,737 68,554
 Valuation allowance-FRE (4,548) (6,560) (6,038)
 Total assets 2,442,513 2,786,191 2,483,952
 Shareholders' equity 168,209 151,151 160,968
 Tier I capital 166,500 149,247 159,210
 Total risk-based
 capital 202,138 194,918 195,478
 Ratios:
 Leverage capital ratio-
 Bancorp 6.77 pct 5.10 pct 6.30 pct
 Leverage capital ratio-
 bank 6.62 pct 5.03 pct 6.17 pct
 Risk-adjusted capital
 ratios (consolidated)
 (End of period):
 Tier I 10.46 pct 7.65 pct 9.71 pct
 Total capital 12.70 pct 9.94 pct 11.92 pct
 Net interest margin
 (tax equivalent
 basis) 5.10 pct 3.51 pct 4.20 pct
 Net interest spread 4.74 pct 3.09 pct 3.83 pct
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (in Thousands)
 Three Months Ended Year Ended
 March 31, Dec. 31,
 1993 1992 1992
 Asset Quality
 Nonperforming assets:
 Nonaccrual loans $28,902 $73,328 $37,961
 Restructured loans --- --- ---
 Foreclosed and
 repossessed assets 51,922 79,848 68,575
 Accruing loans past
 due 90 days or more 21,766 16,280 12,131
 Performing non-
 performing loans 1,379 5,613 7,360
 Total nonperforming
 assets $103,969 $175,069 $126,027
 Other Financial
 Information:
 Net charge-offs: 11,611 7,632 37,851
 Net charge-offs to
 average loans 2.90 pct. 1.75 pct. 2.23 pct
 Nonperforming loans +
 repossessed assets to
 loans + repossessed assets 6.38 pct. 9.67 pct. 7.47 pct
 Allowance for loan losses
 to loans outstanding 3.68 pct. 4.28 pct. 3.81 pct
 Allowance for loan
 losses to annualized
 net charge-offs 125.15 pct. 242.75 pct. 162.99 pct
 Allowance for
 loan losses to
 non-performing loans 111.68 pct. 77.83 pct. 107.38 pct
 Allowance for loan losses
 and foreclosed real estate
 to nonperforming assets 60.28 pct. 46.08 pct. 53.74 pct
 -0- 4/22/93
 /CONTACT: Albert E. Fiacre, Jr, executive vice president and chief financial officer of Society for Savings, 203-727-5420/
 (SOCS)


CO: Society for Savings ST: Connecticut IN: FIN SU: ERN

DH -- NE019 -- 9515 04/22/93 13:34 EDT
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