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SOCIETY REPORTS INCREASE IN SECOND QUARTER EARNINGS

 SOCIETY REPORTS INCREASE IN SECOND QUARTER EARNINGS
 HARTFORD, Conn., July 23 /PRNewswire/ -- Society for Savings Bancorp, Inc. (NASDAQ: SOCS) ("Society" or "Bancorp") today reported a strong increase in earnings for the second quarter and first half ended June 30, a significant decline in non-performing assets, and a further strengthening in capital ratios. The bank's progress was led by continued improvement in its core business of residential lending, and a strong contribution in after-tax profits from Fidelity Acceptance Corporation, Society's consumer financing subsidiary.
 In the second quarter ended June 30, Society reported that net income, after extraordinary items, advanced to $2.2 million, or 18 cents per share, from $1.0 million, or 8 cents per share, in the comparable quarter a year ago. Income before extraordinary items (a result of the benefits associated with the carryforward of 1991 net operating losses) rose to $1.5 million in 1992 second quarter, from $1 million in the previous year. During the second quarter 1992, Society sold its 33 percent equity interest in Cadre for a gain of $536,000. Earnings per share before extraordinary items in the second three months were 13 cents, up 63 percent from 8 cents a year ago.
 For the six months ended June 30, 1992, Society earned $3.5 million after an extraordinary item while in the same period a year ago Society reported a net loss of $7 million. On a per share basis, Society earned 29 cents per share for six months ended 1992 vs. a 59 cents per share loss in 1991. Included in the 1992 second quarter and six-month ended earnings are $688,000 and $1.4 million in extraordinary items, respectively, a result of tax benefits associated with the carryforward of 1991 net operating losses.
 Society's net interest margin has been strengthened by falling deposit interest rates, while average interest rates on earning assets have declined slightly in the second quarter 1992 when compared to the second quarter 1991. Fidelity Acceptance Corporation (FAC), Society's consumer financing subsidiary, has had significant loan growth with a wider interest rate spread. In effect, these trends have widened Society's net margins to 4.06 percent for the second quarter 1992, which is up 82 basis points from 3.24 percent in the second quarter 1991. On a year-to-date basis, net interest margin is 3.78 percent for 1992 compared to 3.11 percent in 1991.
 The bank's leverage capital ratio improved 133 basis points from 4.21 percent at Dec. 31, 1991 to 5.54 percent at June 30, 1992. The holding company is 5.62 percent at June 30, 1992 vs. 4.65 percent at Dec. 31, 1991. Risk-based capital ratios for tier I and total capital at June 30, 1992 were 8.02 percent and 10.32 percent, respectively. All ratios were above regulatory minimums.
 Non-performing assets declined from the first quarter 1992 by $21.4 million (or 12.2 percent) to $153.7 million at June 30, 1992, and down $22.0 million from one year ago. This is the first real reduction net of charge-offs in the bank since the second quarter of 1989. Of the $21.4 million decline, $13.8 million was attributable to gross charge-offs and $7.6 million represented actual net reductions. Nonaccruing loans, inclusive of performing non-performing loans, declined $18.6 million in the second quarter 1992 to $60.3 million compared to the first quarter 1992 balance of $78.9 million, also down $33.9 million from a year-earlier balance of $94.2 million, mostly a result of charge-offs in 1991. Additionally accruing loans past due over 90 days have improved in the second quarter of 1992, down $2.2 million to $15.0 million from one year ago and also down $1.3 million from the first quarter 1992.
 The total provision for the loan losses in the second quarter was $8.6 million. This compares to the second quarter 1991 provision for loan losses of $19.4 million. On a year-to-date basis, Society has provided additional reserves for its loans of $19.5 million in 1992 compared to $44.5 million a year earlier. At June 30, 1992, the allowance for loan losses was $69.4 million which is up $24.0 million from the allowance for loan losses of $45.4 million at June 30, 1991. At June 30, 1992, Society's loan loss reserves equaled 92.2 percent of non-performing loans, exclusive of foreclosed and repossessed assets, a continued increase from 77.8 percent at the end of the first quarter 1992. Foreclosed real estate assets, which are valued at lower of cost or market basis, have an additional valuation allowance of $2.0 million at June 30, 1992.
 Total reserve coverage ratio of loan reserves to non-performing assets was 46.5 percent at June 30, 1992, unchanged from March 31, 1992.
 Society's main core business activity, residential lending in Connecticut, showed continued improvement in the second quarter of 1992 as the bank closed 482 mortgage loans for $65.2 million as compared to 308 closed loans in the second quarter 1991 for $39.2 million. Since January 1992 the bank has closed 1,043 mortgage loans in Connecticut for $143.0 million as of June 30, 1992, which is $77.8 million more in mortgage loans than for the same period last year. In fact, Society has originated more residential mortgages in the first six months of 1992 than it did in all of 1991. Although refinancing activities have helped improve these results, the overall residential lending activity is steadily increasing. Society is committed to continue its efforts to improve its market share of residential lending.
 FAC earned an after-tax profit of $6.3 million in the second quarter 1992 and $12.1 million for the six months ended June 30, 1992 on $511.9 million of assets. In 1991, it earned $4.6 million in the second quarter 1991 while its year-to-date net earnings were $9.2 million for 1991 on $440.8 million of assets.
 Society's quarter-end book value was $12.95 per share, up from the Dec. 31, 1991, $12.61 per share and the first quarter 1992, $12.75 per share value, however it was down from the June 30, 1991 book value of $17.38 per share. Society continued to shrink its total asset size from $3.4 billion at June 30, 1991 to $2.7 billion at June 30, 1992. Deposits have declined by $675.5 million to $1.8 billion since June 30, 1991, primarily form the closing of 14 branches outside of Hartford County.
 "The difficult strategic restructuring steps that began in late 1990 and redirected in late 1991 are beginning to produce results," said Lawrence Connell, Society president and chief executive officer. "With a second straight quarter of earnings, a net decline in non-performing assets, and a strengthened capital base, I am increasingly optimistic about Society's future earnings potential."
 Established in 1819, Society for Savings has 19 offices in the greater Hartford region. Fidelity Acceptance Corporation, a subsidiary of the bank operates out of 102 offices and is engaged in consumer lending in many parts of the United States.
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (In thousands)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 EARNINGS:
 Net income (loss) $2,180 $1,000 3,479 $(6,972)
 Tax-Equivalent interest
 fees and dividend income $67,270 $90,499 139,405 188,106
 Interest expense 40,824 63,027 88,052 132,905
 Tax-equivalent
 net interest income 26,446 27,472 51,353 55,201
 Tax equivalent adjustment 230 322 443 674
 Net interest income 26,216 27,150 50,910 54,527
 Provision for loan losses 8,591 19,363 19,507 44,531
 Net interest income after
 provision for loan losses 17,625 7,787 31,403 9,996
 NONINTEREST INCOME:
 Gains on securities 251 1,425 7,357 5,765
 Other 6,817 7,127 12,096 13,706
 Gain on sale of mortgage
 servicing rights --- 18,881 --- 18,881
 Totals 7,068 27,433 19,453 38,352
 NONINTEREST EXPENSE:
 Staff 9,148 9,685 18,440 20,878
 Occupancy 2,163 2,904 4,532 5,626
 Equipment 1,710 1,709 3,584 3,456
 Restructuring charge --- 7,000 --- 7,000
 Other 8,404 10,488 15,808 18,383
 Foreclosed real estate 573 948 3,718 1,769
 Totals 21,988 32,734 46,082 57,112
 Income (loss) before
 income taxes and
 extraordinary item 2,695 2,486 4,774 (8,764)
 Income taxes (benefit) 1,203 1,486 2,707 (1,792)
 Income (loss) before
 extraordinary item 1,492 1,000 2,067 (6,972)
 Extraordinary item 688 --- 1,412 ---
 Income (loss) after
 extraordinary item $2,180 $1,000 $3,479 $(6,972)
 PER COMMON SHARE DATA:
 Earnings (loss) before
 extraordinary item 13 cents 8 cents 17 cents (59 cents)
 Earnings (loss) after
 extraordinary item 18 cents 8 cents 29 cents (59 cents)
 Dividends declared --- --- --- 75 cents
 Book value 12.95 17.38 12.95 17.38
 Avg. shares
 outstanding 11,861,000 11,915,000 11,857,000 11,916,000
 End of period shares
 outstanding 11,865,000 11,913,000 11,865,000 11,913,000
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (In thousands)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 AVERAGE BALANCES-(a)
 Loans, net $1,648,858 $2,346,092 $1,658,399 $2,492,503
 Investments, net 878,933 991,235 983,428 998,130
 Earning assets, net 2,527,791 3,337,327 2,641,827 3,480,634
 Total assets, net 2,672,976 3,511,317 2,791,653 3,613,235
 Deposits 1,897,349 2,541,734 2,041,460 2,602,555
 Short-term debt 14,405 96,871 18,876 90,101
 Long-term debt and
 capital notes 557,998 605,313 523,379 662,447
 Interest-bearing
 liabilities 2,448,374 3,224,045 2,555,867 3,332,635
 Shareholders' equity 152,679 206,410 152,224 210,216
 --
 Note: (a)-Includes assets held for sale
 END OF PERIOD BALANCES
 Loans, gross:
 Accruing-(b) 1,645,700 1,595,236
 Nonaccruing and
 restructured-(b) 60,294 71,050
 Total loans 1,705,994 1,666,286
 Allowance for
 loan losses (69,366) (45,376)
 Foreclosed real estate 78,259 59,437
 Valuation allowance-FRE (2,022) ---
 Assets held for sale --- 586,453
 Valuation allowance-AHFS --- (12,984)
 Total assets 2,682,197 3,407,416
 Shareholders' equity 153,647 207,061
 Tier I capital 151,791 199,048
 Total risk-based capital 195,454 252,057
 --
 Note: (b)-Excludes assets held for sale
 RATIOS
 Leverage capital ratio-
 Bancorp 5.62 pct 5.78 pct N/A N/A
 Leverage capital ratio-
 Bank 5.54 pct 5.41 pct N/A N/A
 Risk-adjusted capital
 ratios (consolidated)
 (End of period)
 Tier I N/A N/A 8.02 pct 7.95 pct
 Total capital N/A N/A 10.32 pct 10.06 pct
 Net interest margin
 (tax equivalent
 basis) 4.06 pct 3.24 pct 3.78 pct 3.11 pct
 Net interest spread 3.68 pct 2.87 pct 3.37 pct 2.68 pct
 SOCIETY FOR SAVINGS BANCORP, INC.
 Financial Highlights
 (in Thousands)
 Three Months Ende Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 ASSET QUALITY
 Nonperforming assets:
 Nonaccrual loans $58,231 $88,097
 Restructured loans --- 4,363
 Foreclosed and
 repossessed assets 78,370 59,892
 Accruing loans past
 due 90 days or more 15,003 17,244
 Performing non-
 performing loans 2,063 6,096
 Total nonperforming
 assets 153,667 $175,692
 OTHER FINANCIAL INFORMATION:
 Net charge-off: loans
 held for investment 13,089 27,767 20,721 34,538
 Net-charge offs to
 average loans held
 for investment
 (annualized) 3.05 pct 6.34 pct 2.40 pct 3.89 pct
 Net charges to
 restructuring reserves
 -- assets held for sale N/A 34,388 N/A 57,591
 Nonperforming loans +
 repossessed assets to
 loans + repossessed assets 8.61 pct 7.61 pct
 Allowance for loan losses
 to loans outstanding-(c) 4.07 pct 2.72 pct
 Allowance for loan
 losses to annualized
 net charge-offs 62.45 pct 40.85 pct 100.42 pct 65.69 pct
 Allowance for
 loan losses to
 non-performing loans 92.12 pct 39.18 pct
 Allowance for loan losses and
 foreclosed real estate to
 nonperforming assets 46.46 pct 25.83 pct
 Note: (c)-Excludes assets held for sale during 1991 and their related valuation allowance.
 -0- 7/23/92
 /CONTACT: Albert E. Fiacre, Jr., executive vice president and CFO, 203-727-5420/
 (SOCS) CO: Society for Savings Bancorp, Inc. ST: Connecticut IN: FIN SU: ERN


CN-CH -- NE007 -- 2628 07/23/92 14:26 EDT
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