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STANDARD FEDERAL BANK REPORTS A 67-PERCENT INCREASE IN FIRST-QUARTER EARNINGS AS OPERATING EARNINGS REACH AN ALL-TIME HIGH

STANDARD FEDERAL BANK REPORTS A 67-PERCENT INCREASE IN FIRST-QUARTER
 EARNINGS AS OPERATING EARNINGS REACH AN ALL-TIME HIGH
 TROY, Mich., April 16 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) reported net income of $22.4 million, or $0.70 per share, for the three months ended March 31, 1992, compared to $13.4 million, or $0.43 per share, for the same period in 1991. This represents an increase in net income of approximately 67 percent.
 The significant increase in current quarter earnings, as compared to the first quarter of 1991, is primarily attributable to an increase in net interest income resulting from the relatively lower levels of market interest rates, combined with a comparatively higher level of gains from the sale of earning assets. The bank's net interest margin has increased to 2.60 percent of average earning assets during the current quarter, compared to the 2.22 percent recorded during the first quarter of 1991. Consequently, net interest income totaled a record $59.7 million for the first quarter of 1992, compared to $49.6 million for the comparable quarter last year.
 During the first quarter of 1992, the bank reorganized $6.9 million in gains from sales of recently originated fixed-rate single-family mortgage loans, compared to $1.9 million recorded during the same period in the prior year. The increased levels of gains during the current quarter is due, in large part, to an unprecedented demand for single- family mortgage loans. The level of future sales and, therefore, gains is dependent upon, among other things, the levels and composition of loan originations, changes in the bank's asset/liability management strategy, and the general levels of market interest rates. Due to these factors, gains recognized from the sales of earning assets are subject to significant fluctuations from period to period.
 The following chart presents an analysis of the results of operations for the three-month periods ended March 31, 1992 and 1991. The operating earnings recorded during the first quarter of 1992 represents an all-time record for Standard Federal. Pretax operating earnings of $27.6 million for the current quarter surpasses the previous record of $26.4 million earned during the fourth quarter of 1991 by $1.2 million, or nearly 5 percent.
 Three Months Ended
 March 31,
 1992 1991
 Condensed Statements of Operations Data (unaudited)
 (In Millions, Except Share Data)
 Pretax operating earnings $27.6 $20.5
 Gains from earning asset sales 6.9 1.9
 Pretax earnings 34.5 22.4
 Provision for federal income taxes (12.1) (9.0)
 Net income $22.4 $13.4
 Earnings per share $0.70 $0.43
 During the first quarter of 1992, Standard Federal also established a new bank record for quarterly mortgage loan closings with over $907.3 million of single-family home mortgage loans closed, compared to $319.2 million during the first quarter of 1991, an increase of 184 percent. Approximately $527.2 million, or 58 percent, of total loan closings for the first quarter of 1992 were refinances of existing Standard Federal mortgages. Mortgages to new borrowers totaled $380.1 million for the period, an increase of $141.7 million, or 59 percent, over the $238.4 million in mortgage loans to new borrowers during the first quarter 1991.
 The bank's level of nonperforming assets increased during the first quarter of 1992, but continues to remain well below industry averages. Nonperforming assets totaled approximately $83.5 million at March 31, 1992, and represented 0.87 percent of total assets at that date. At Dec. 31, 1991, nonperforming assets totaled approximately $69.0 million, or 0.73 percent of total assets. Net of the bank's reserves for losses, nonperforming assets totaled $58.4 million at March 31, 1992 (0.61 percent of total assets), compared to $45.4 million at Dec. 31, 1991 (0.48 percent of total assets).
 As previously reported, on Feb. 10, 1992, Standard Federal and First Federal Savings and Loan Association of Lenawee County executed a definitive merger agreement pursuant to which Standard Federal will acquire all of the 1.6 million outstanding shares of First Federal of Lenawee's common stock for $27.94 per share in cash. The entire transaction, including payments to be made with respect to outstanding stock options, is valued at approximately $46.2 million. First Federal of Lenawee, a profitable, retail-oriented thrift institution, operates seven branches in market areas contiguous to the bank's operating areas in southern Michigan, and had total assets of approximately $239.8 million at Dec. 31, 1991. The acquisition, which is subject to both regulatory and First Federal of Lenawee stockholder approval, is expected to be completed by mid-year 1992.
 Separately today, the bank's board of directors declared a regular $0.11-per-share quarterly dividend to stockholders of record on May 18, 1992, payable June 1, 1992.
 Standard Federal Bank, headquartered in Troy, is Michigan's leading home mortgage lender and the Midwest's largest thrift institution with assets totaling over $9.6 billion. The bank operates 120 branch offices in Michigan, Indiana and Ohio.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except share data)
 March 31, Dec. 31,
 1992 1991
 (unaudited)
 Total assets $9,623,428 $9,513,922
 Investments(1) 833,091 939,328
 Mortgage-backed securities 3,746,083 3,918,852
 Loans receivable 4,450,746 4,043,578
 Cost in excess of fair value of
 net assets acquired 126,465 128,960
 Deposits 6,215,436 6,188,550
 Advances and borrowings(2) 2,315,611 2,474,762
 Stockholders' equity 544,526 524,765
 Book value per share 17.58 16.98
 Tangible book value per share 13.39 12.67
 Shares outstanding 30,978,200 30,910,850
 Weighted average rate on deposit
 portfolio(3)(pct.) 4.99 5.55
 Equity-to-assets ratio(pct.) 5.66 5.52
 Core capital as a percentage of
 adjusted assets(4)(pct.) 5.41 5.25
 Tangible capital as a percentage of
 adjusted assets(4)(pct.) 4.37 4.18
 Risk-based capital as a percentage of
 risk-adjusted assets(4)(pct.) 12.06 11.81
 Ratio of net nonperforming assets to
 total assets(pct.) 0.61 0.48
 Ratio of gross nonperforming assets to
 total assets(pct.) 0.87 0.73
 One-year repricing gap as a percentage
 of total assets(5) -1.73 -1.97
 (1) -- Includes cash equivalents, term federal funds sold, securities purchased under resale agreements and investment securities.
 (2) -- Includes FHLB advances, other long-term borrowings and securities sold under agreements to repurchase.
 (3) -- These rates represent the actual weighted average contractual rates paid to the bank's deposit customers, and exclude the impact of purchase accounting adjustments and interest rate exchange agreements.
 (4) -- At both dates presented, Standard Federal was in full compliance with each of the three regulatory capital requirements.
 (5) -- The difference between the estimated amounts of earning assets and interest-bearing liabilities repricing within one year, divided by total assets.
 Three Months Ended
 March 31,
 1992 1991
 (unaudited)
 Total interest income $193,355 $211,099
 Net interest income 59,679 49,573
 Net income 22,372 13,383
 Earnings per share 0.70 0.43
 Annualized data:
 Yield on earnings assets(pct.) 8.71 9.60
 Cost of interest-bearing liabilities(pct.) 6.30 7.59
 Interest rate spread(pct.) 2.41 2.01
 Net interest margin on average earning
 assets(pct.) 2.60 2.22
 Ratio of operating and administrative
 expenses to average assets(pct.) 1.29 1.36
 Return on average assets(pct.) 0.94 0.57
 Return on average stockholders' equity(pct.) 16.76 11.32
 Deposit activity:
 Net increase (decrease) $26,886 ($88,269)
 Net increase (decrease) as a percentage
 of beginning deposits(pct.) 0.43 -1.50
 Interest credited, included above $69,024 $88,296
 Mortgage loan activity:
 Dollar volume of residential loan closings $907,260 $319,229
 Dollar volume of apartment loan closings 200 26
 Dollar volume of commercial loan closings --- 1,045
 Total loan closings $907,460 $320,300
 30-year fixed-rate loans closed as a
 percentage of total loans closed(pct.) 34.40 43.70
 15-year fixed-rate loans closed as a
 percentage of total loans closed(pct.) 47.50 41.50
 Balloon loans closed as a percentage of
 total loans closed(pct.) 7.80 2.90
 Adjustable-rate loans closed as a
 percentage of total loans closed(pct.) 10.30 11.90
 Average yield on 30-year fixed-rate loans
 closed(pct.) 8.89 9.76
 Average yield on 15-year fixed-rate loans
 closed(pct.) 8.60 9.60
 Average yield on balloon loans closed(pct.) 8.64 10.23
 Average yield on adjustable-rate loans
 closed(pct.) 7.33 9.04
 Repaid, net $293,500 $114,496
 Securitized and sold $177,753 $311,809
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (In thousands, except share data)
 March 31, Dec. 31,
 1992 1991
 (unaudited)
 Assets
 Cash $116,440 $129,309
 Cash equivalents 42,835 40,236
 Term federal funds sold and securities
 purchased under resale agreements 125,000 125,000
 Investment securities 665,256 774,092
 Mortgage-backed securities 3,746,083 3,918,852
 Loans receivable 4,450,746 4,043,578
 Total earning assets 9,029,920 8,901,758
 Accrued interest receivable 61,770 64,186
 Real estate and other repossessed assets 29,552 21,740
 Premises and equipment 174,958 175,646
 Cost in excess of fair value of net
 assets acquired 126,465 128,960
 Other assets 84,323 92,323
 Total assets $9,623,428 $9,513,922
 Liabilities and stockholders' equity
 Liabilities:
 Deposits $6,215,436 $6,188,550
 FHLB advances and other long-term
 borrowings 1,891,491 1,754,340
 Securities sold under agreements
 to repurchase 424,120 720,422
 Total interest-bearing liabilities 8,531,047 8,663,312
 Accrued interest payable 47,077 43,935
 Undisbursed payments on participations sold 240,351 114,052
 Advance payments by borrowers for taxes
 and insurance 83,994 25,650
 Federal income taxes payable 17,696 11,422
 Liability for checks and money orders issued 76,984 79,813
 Other liabilities 81,753 50,973
 Total liabilities 9,078,902 8,989,157
 Stockholders' equity:
 Serial preferred stock, $1 par value per
 share; 10 million shares authorized;
 none issued --- ---
 Common stock, $1 par value per share;
 50 million shares authorized; 30,978,200
 and 30,910,850 shares issued and
 outstanding in 1992 and 1991,
 respectively 30,978 30,911
 Additional paid-in capital 207,995 207,270
 Retained earnings, partially restricted 305,553 286,584
 Total stockholders' equity 544,526 524,765
 Total liabilities and stockholders'
 equity $9,623,428 $9,513,922
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except share data)
 Three Months Ended
 March 31
 1992 1991
 (unaudited)
 Interest income:
 Money market investments $2,004 $3,030
 Investment securities 10,652 21,426
 Mortgage-backed securities 83,042 94,981
 Loans receivable 97,657 91,662
 Total 193,355 211,099
 Interest expense:
 Deposits 85,938 100,888
 FHLB advances and other long-term
 borrowings 40,489 39,937
 Securities sold under agreements to repurchase 7,249 20,701
 Total 133,676 161,526
 Net interest income 59,679 49,573
 Provision for losses 2,733 3,335
 Net interest income after provision for
 losses 56,946 46,238
 Non-interest income:
 Loan fees and charges 1,341 1,409
 Other fees and charges 3,883 3,359
 Loan servicing fee income (1,191) 2,995
 Gain on the sale of earning assets 6,918 1,898
 Real estate operations, net (1,212) (368)
 Other 1,072 1,004
 Total 10,811 10,297
 Other expenses:
 Compensation and benefits 13,066 14,680
 Occupancy and equipment 8,399 8,356
 Federal insurance premium 3,535 3,356
 General and administrative 2,122 2,734
 Advertising 465 803
 Other taxes 1,563 1,425
 Other 1,640 596
 Total operating and administrative expenses 30,790 31,950
 Amortization of cost in excess of fair
 value of net assets acquired 2,495 2,152
 Total 33,285 34,102
 Income before provision for federal
 income taxes 34,472 22,433
 Provision for federal income taxes 12,100 9,050
 Net income $22,372 $13,383
 Earnings per share $0.70 $0.43
 Dividends per common share $0.11 $0.10
 -0- 4/16/92
 /CONTACT: Joseph Krul of Standard Federal Bank, 313-643-9600, or 800-482-3930 (in Michigan), or 800-874-3716 (in Indiana)/
 (SFB) CO: Standard Federal Bank ST: Michigan IN: FIN SU: ERN


KK-SB -- DE022 -- 9403 04/16/92 14:59 EDT
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