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STANDARD FEDERAL BANK REPORTS A NEW ALL-TIME RECORD FOR EARNINGS DURING THE THIRD QUARTER OF 1993

 TROY, Mich., Oct. 14 /PRNewswire/ -- Today Standard Federal Bank (NYSE: SFB) released the following statistics:
 -- Net Income Up 25 percent Over the Third Quarter of 1992
 -- Mortgage Volume At Record Levels
 -- Tangible Capital Increases to 5.80 percent of Adjusted Assets
 Standard Federal Bank reported a 25 percent increase in net income which totaled a record $30.4 million, or $0.95 per share, for the three months ended September 30, 1993, compared to $24.3 million, or $0.76 per share, for the same period in 1992. The Bank established this new record for quarterly net income (surpassing by over 2 percent the previous record of $29.7 million established during the second quarter of 1993) despite the retroactive federal income tax increase recently passed by Congress and signed into law by the President which reduced the Bank's earnings by approximately $0.03 per share during the current quarter.
 Earnings for the first nine months of 1993 increased by 20 percent over the same period a year ago. For the nine months ended September 30, 1993, net income totaled a record $84.7 million, or $2.64 per share, compared to $70.3 million, or $2.21 per share, for the same year-ago period.
 Both the third quarter and year-to-date earnings records are primarily attributable to increases in net interest income resulting from the relatively lower levels of market interest rates and the continued steep yield curve. Net interest income has also continued to benefit from the accelerated recognition of deferred net loan fees, as refinances of relatively newly closed mortgage loans continue at record- setting levels. The Bank's net interest margin totaled 3.11 percent of average earning assets during the first nine months of 1993, compared to 2.84 percent recorded during the first nine months of 1992. Consequently, net interest income totaled $73.0 million and a record $215.5 million for the three and nine months ended September 30, 1993, respectively, increases of 9 percent and 13 percent over the $66.8 million and $190.4 million recorded during the respective year-ago periods.
 The Bank recognized $6.6 million and $16.1 million in gains from sales of recently closed, fixed-rate, single-family mortgage loans for the three and nine months ended September 30, 1993, respectively, compared to $8.5 million and $20.4 million recorded for the respective year-ago periods. The gains recorded during these periods are due, in large part, to the continued, strong demand for single-family mortgage loans.
 The following chart presents an analysis of the results of operations for the three- and nine-month periods ended September 30, 1993 and 1992. The operating earnings recorded during both the third quarter and the first nine months of 1993 represent all-time records for Standard Federal.
 STANDARD FEDERAL BANK
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 Condensed Statements of (unaudited)
 Operations Data: (In millions, except share data)
 Pretax operating earnings $41.8 $29.8 $115.5 $88.9
 Gains from sales of
 earning assets 6.6 8.5 16.1 20.4
 Pretax earnings 48.4 38.3 131.6 109.3
 Provision for federal
 income taxes (18.0) (14.0) (46.9) (39.0)
 Net income $30.4 $24.3 $84.7 $70.3
 Earnings per share $0.95 $0.76 $2.64 $2.21
 During the first nine months of 1993, Standard Federal also established a new Bank record for mortgage loan closings with over $2.93 billion of single-family home mortgage loans closed, compared to $2.58 billion closed during the first nine months of 1992, an increase of 14 percent.
 Asset quality continues to be very strong as the Bank's level of nonperforming assets remained stable during the third quarter of 1993, and remains well below industry averages. Nonperforming assets totaled approximately $70.8 million at September 30, 1993 (0.72 percent of total assets). At December 31, 1992, nonperforming assets totaled approximately $71.7 million (0.75 percent of total assets).
 Separately today, the Bank's Board of Directors declared a regular quarterly dividend of $0.14 per share to stockholders of record on November 17, 1993, payable December 1, 1993.
 Standard Federal Bank, headquartered in Troy, is Michigan's leading home mortgage lender and the Midwest's largest thrift institution with assets totaling $9.8 billion. The Bank operates 118 Banking Centers, 7 Home Lending Centers and 202 automated teller machines in Michigan, Indiana and Ohio.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except share data)
 September 30 December 31,
 1993 1992
 SELECTED FINANCIAL DATA: (unaudited)
 Total assets $9,782,805 $9,544,731
 Investments 438,171 543,149
 Mortgage-backed securities 2,604,655 3,175,781
 Loans receivable 6,217,126 5,235,399
 Cost in excess of fair value of net
 assets acquired 111,769 120,568
 Deposits 6,743,472 6,527,603
 Borrowings 1,999,036 2,081,312
 Stockholders' equity 683,142 609,071
 Loan servicing portfolio 3,021,886 3,615,238
 Number of employees (FTEs) 2,236 2,221
 Book value per share 21.85 19.56
 Tangible book value per share 17.90 15.54
 Weighted average rate on deposit
 portfolio (1) (pct) 3.88 4.11
 Equity-to-assets ratio (pct) 6.98 6.38
 Core capital as a percentage of adjusted
 assets (2) (pct) 6.63 6.14
 Tangible capital as a percentage of
 adjusted assets (2) (pct) 5.80 5.14
 Risk-based capital as a percentage of
 risk-adjusted assets (2) (pct) 13.90 13.53
 Ratio of nonperforming assets to total
 assets (pct) 0.72 0.75
 Ratio of nonperforming assets (net of
 reserves) to total assets (pct) 0.43 0.46
 One-year repricing gap as a percentage of
 total assets (3) (pct) -2.87 +5.58
 (1) 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.
 (2) At both dates presented, Standard Federal was in full
 compliance with each of the three regulatory capital
 requirements.
 (3) The difference between the estimated amounts of earning assets
 and interest-bearing liabilities repricing within one year,
 divided by total assets, based on a current rate scenario.
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 (unaudited)
 Total int. income $177,854 $189,692 $537,546 $574,839
 Net interest inc. 73,041 66,753 215,483 190,414
 Net income 30,358 24,300 84,700 70,306
 Earnings per share 0.95 0.76 2.64 2.21
 Primary common shares
 outstanding (1) 32,143,000 31,924,000 32,094,000 31,859,000
 Annualized data:
 Yield on earning
 assets (pct) 7.65 8.46 7.77 8.58
 Cost of interest-
 bearing
 liabilities (pct) 4.71 5.64 4.89 6.00
 Int. rate spread(pct) 2.94 2.82 2.88 2.58
 Net interest margin
 on average earning
 assets (pct) 3.14 3.02 3.11 2.84
 Operating and
 administrative
 expenses as a
 percent of average
 assets (pct) 1.43 1.46 1.42 1.38
 Return on average
 assets (pct) 1.23 1.01 1.15 0.98
 Return on average
 stockholders'
 equity (pct) 18.15 16.91 17.56 16.92
 (1) Consists of the weighted average number of shares and common
 stock equivalents (i.e., the effect of stock options)
 outstanding during the period, used to calculate earnings
 per share.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS (CONTINUED)
 (Dollars in thousands, except share data)
 (unaudited)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 DEPOSIT PORTFOLIO
 ACTIVITY:
 Net customer
 deposits
 (withdrawals) $94,027 ($46,891) $72,046 ($245,340)
 Deposits acquired
 from mergers /
 branch purchases 4,546 170,549 4,546 170,549
 Interest credited to
 deposits 65,625 71,298 195,764 206,196
 Sales of deposits (56,487) - (56,487) -
 Net increase in
 deposit portfolio $107,711 $194,956 $215,869 $131,405
 Total increase as a
 percentage of
 beginning deposits (pct) 1.6 6.0 3.3 4.9
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 MORTGAGE LOAN
 ACTIVITY:
 Total volume of loan
 closings
 Residential $1,059,960 $911,179 $2,933,478 $2,579,889
 Apartment 2,000 105 2,324 305
 Commercial - - 5,650 1,105
 Total loan closings 1,061,960 911,284 2,941,452 2,581,299
 Loans acquired from
 mergers - 149,940 - 149,940
 Loans securitized
 and sold (280,678) (233,715) (633,199) (794,978)
 Loans repaid, net (486,247) (324,000)(1,317,678) (873,389)
 Net increase in
 mortgage loan
 portfolio $295,035 $503,509 $990,575 $1,062,872
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 MORTGAGE LOAN CLOSINGS
 DATA:
 Loan type closed as
 a percentage of
 total loans
 closed:
 30-year
 fixed-rate (pct) 31 35 29 34
 15-year
 fixed-rate (pct) 33 45 36 43
 10-year
 fixed-rate (pct) 13 N/A 11 N/A
 Balloons (pct) 15 8 15 8
 Adjustable-rate (pct) 8 12 9 15
 Total (pct) 100 100 100 100
 Average yield on
 loans closed:
 30-year
 fixed-rate (pct) 7.47 8.39 7.76 8.75
 15-year
 fixed-rate (pct) 7.09 8.00 7.33 8.42
 10-year
 fixed-rate (pct) 6.92 N/A 7.02 N/A
 Balloons (pct) 6.80 7.98 6.99 8.44
 Adjustable-rate (pct) 5.92 6.92 6.20 7.24
 Total (pct) 7.05 7.99 7.27 8.36
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (In thousands, except share data)
 September 30 December 31
 1993 1992
 (unaudited)
 Assets
 Cash $85,115 $132,008
 Cash equivalents 65,004 106,002
 Term federal funds sold and securities
 purchased under resale agreements 50,000 25,000
 Investment securities 323,167 412,147
 Mortgage-backed securities 2,604,655 3,175,781
 Loans receivable available for sale 505,709 351,512
 Loans receivable 5,711,417 4,883,887
 Total earning assets 9,259,952 8,954,329
 Accrued interest receivable 54,128 53,731
 Real estate and other repossessed assets 32,056 24,868
 Premises and equipment 173,724 173,898
 Cost in excess of fair value of net
 assets acquired 111,769 120,568
 Other assets 66,061 85,329
 Total assets $9,782,805 $9,544,731
 Liabilities and Stockholders' Equity
 Liabilities:
 Deposits $6,743,472 $6,527,603
 FHLB advances and other long-term
 borrowings 1,707,628 1,853,605
 Securities sold under agreements to
 repurchase 291,408 227,707
 Total interest-bearing liabilities 8,742,508 8,608,915
 Accrued interest payable 33,936 30,849
 Undisbursed payments on participations
 sold 105,209 115,050
 Advance payments by borrowers for taxes
 and insurance 84,366 28,146
 Federal income taxes payable 5,687 10,220
 Liability for checks and money orders
 issued 65,333 78,045
 Other liabilities 62,624 64,435
 Total liabilities 9,099,663 8,935,660
 Stockholders' Equity:
 Serial preferred stock, $1.00 par value per
 share; 10,000,000 shares authorized; none
 issued - -
 Common stock, $1.00 par value per share;
 50,000,000 shares authorized; 31,270,593
 and 31,146,200 shares issued and out-
 standing in 1993 and 1992, respectively 31,271 31,146
 Additional paid-in capital 211,726 209,997
 Retained earnings, partially restricted 440,145 367,928
 Total stockholders' equity 683,142 609,071
 Total liabilities and
 stockholders' equity $9,782,805 $9,544,731
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except share data)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 (unaudited)
 Interest Income:
 Money market investments $1,301 $1,616 $3,328 $5,326
 Investment securities 5,700 8,152 17,097 27,802
 Mortgage-backed securities 49,941 71,378 169,110 231,819
 Loans receivable 120,912 108,546 348,011 309,892
 Total 177,854 189,692 537,546 574,839
 Interest Expense:
 Deposits 72,413 80,374 216,025 250,124
 FHLB advances and other
 long-term borrowing 29,742 41,045 98,271 123,323
 Securities sold under
 agreements to repurchase 2,658 1,520 7,767 10,978
 Total 104,813 122,939 322,063 384,425
 Net interest income 73,041 66,753 215,483 190,414
 Provision for losses 2,603 2,697 9,305 8,461
 Net interest income after
 provision for losses 70,438 64,056 206,178 181,953
 Non-Interest Income:
 Loan fees and charges 1,403 1,256 4,131 3,708
 Deposit-related fees and
 charges 4,815 4,269 14,117 12,753
 Loan servicing fee income
 (loss), net (979) (883) (3,152) (2,314)
 Gain on the sale of earning
 assets 6,559 8,521 16,092 20,462
 Real estate operations, net (12) (1,972) (809) (3,716)
 Other 3,885 756 7,137 3,075
 Total 15,671 11,947 37,516 33,968
 Other Expenses:
 Compensation and benefits 14,239 14,264 42,405 41,324
 Occupancy and equipment 9,096 8,846 26,699 25,398
 Federal insurance premium 3,875 3,638 9,942 10,708
 General and administrative 3,234 3,010 9,940 9,277
 Advertising 1,742 2,560 6,506 4,722
 Other taxes 1,963 1,892 5,786 5,087
 Other 1,070 917 3,173 2,533
 Total operating and
 administrative expenses 35,219 35,127 104,451 99,049
 Amortization of cost in excess
 of fair value of net assets
 acquired 2,532 2,526 7,643 7,516
 Total 37,751 37,653 112,094 106,565
 Income before provision for
 federal income taxes 48,358 38,350 131,600 109,356
 Provision for federal income
 taxes 18,000 14,050 46,900 39,050
 Net Income $30,358 $24,300 $84,700 $70,306
 Earnings Per Share $0.95 $0.76 $2.64 $2.21
 Dividends Per Common Share $0.14 $0.12 $0.40 $0.34
 -0- 10/14/93
 /CONTACT: Joseph Krul, Senior Vice President and Chief Financial Officer, Stockholder Relations, Standard Federal Bank, 313-637-2530 or 800-643-9600.
 (SFB)


CO: Standard Federal Bank ST: Michigan IN: FIN SU: ERN

SM -- DE036 -- 2336 10/14/93 14:33 EDT
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Date:Oct 14, 1993
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