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T R FINANCIAL CORP. ANNOUNCES SECOND QUARTER EARNINGS

 GARDEN CITY, N.Y., July 22 /PRNewswire/ -- T R Financial Corp. (NASDAQ: ROSE), the newly formed holding company for Roosevelt Savings Bank, reported net income of $1.4 million and $4.5 million for the second quarter and six months ended June 30, 1993, respectively. This compares with $2.0 million and $3.6 million for the comparable periods in 1992. The results for the quarter and six months ended June 30, 1993 include an extraordinary charge of $1.2 million and $2.3 million, respectively, representing penalties incurred as a result of the prepayment of FHLB borrowings. Per share figures are not included due to the fact that T R Financial Corp. was a public corporation for only two days during the second quarter.
 T R Financial Corp. became a publicly held bank holding company on June 29, 1993 when it issued 11,362,000 shares of common stock at a price of $9 per share, raising approximately $84 million (net of expenses) in new capital. As a result of the conversion, stockholders' equity amounted to $183.3 million representing 9.87 percent of total as sets and a book value of $16.13 per share at June 30, 1993. T R Financial Corp. invested 50 percent of the total net proceeds in Roosevelt Savings Bank, which increased the bank's leverage and total risk-based capital ratios from 6 percent and 12.14 percent at Dec. 31, 1992, respectively, to 8.50 percent and 16.62 percent at June 30, 1993, which are in excess of all FDIC capital requirements.
 Total assets increased $251.8 million from Dec. 31, 1992 to $1.86 billion at June 30, 1993. Investment securities increased $85.6 million, from Dec. 31, 1992 to $315.2 million at June 30, 1993. Securities available for sale increased $42.7 million from Dec. 31, 1992 to $240.1 million at June 30, 1993. These increases in the securities portfolios reflect the investment of excess liquidity into short-term and intermediate-term securities. Mortgage-backed securities increased $32.7 million from Dec. 31, 1992 to $115.9 million at June 30, 1993. Total loans, net of the allowance for possible loan losses increased $45.5 million from Dec. 31, 1992 to $977.6 million at June 30, 1993. Total mortgage loan originations for the quarter ended June 30, 1993 were $66.7 million.
 Total deposits decreased $18.9 million, from Dec. 31, 1992 to $1.26 billion at June 30, 1993. Borrowed funds increased $120.5 million from Dec. 31, 1992 to $314.7 million at June 30, 1993. This increase was from FHLB borrowings and is net of $29.0 million of prepayments, $16.0 million of which occurred during the second quarter.
 Non-performing assets decreased to $61.6 million, or 3.32 percent of total assets at June 30, 1993, a decrease of $6.0 million or 89 basis points from Dec. 31, 1992, due to sales of other real estate owned. Non-performing loans decreased to $46.1 million, or 4.66 percent of total loans at June 30, 1993, a decrease of $1.1 million, or 34 basis points from Dec. 31, 1992.
 T R Financial Corp.'s $12.3 million of net interest income before provision for possible loan losses for the second quarter of 1993, exceeded the June 30, 1992 amount by $332 thousand, or 2.8 percent. This increase is the result of an increase in net interest-earning assets, which is offset by a reduction in the average interest rate spread of 17 basis points to 2.70 percent for the three months ended June 30, 1993 from the June 30, 1992 amount.
 The provision for possible loan losses for the quarter ended June 30, 1993 was $1.5 million, a decrease of $750 thousand from the comparable quarter last year. As of June 30, 1993, the bank's allowance for possible loan losses to non-performing loans and non-performing assets was 28.0 percent and 21.0 percent, respectively.
 Non-interest income for the three months ended June 30, 1993 totaled $2.5 million, a decrease of $94 thousand from the 1992 second quarter. This reduction was primarily attributable to a decrease in gains on sales of securities, partially offset by an increase in loan fees and other charges.
 Non-interest expense for the quarter ended June 30, 1993 was $8.8 million, an increase of $1.2 million from the level recorded for the same quarter one year ago. Salary and employee benefits expense increased $645 thousand over the comparable quarter last year. This increase was due primarily to normal salary increases, additions to staff, and expenses incurred for post-retirement benefits being accrued as a result of the adoption of SFAS 106 in the first quarter of 1993.
 Provision for income taxes for the second quarter was $1.9 million, a decrease of $812 thousand from the comparable quarter last year. This decrease is largely the result of a lower estimated effective tax rate under SFAS 109, which was adopted in the first quarter of 1993.
 T R Financial Corp. and Roosevelt Savings Bank are headquartered in Garden City, N.Y. Roosevelt Savings Bank services its customers from 12 full-service banking facilities located in the New York City boroughs of Brooklyn and Queens and in Nassau and Suffolk counties.
 T R FINANCIAL CORP. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Unaudited, in thousands, except share amounts)
 June 30 Dec. 31,
 1993 1992
 Assets:
 Cash and cash equivalents $ 121,812 $ 64,508
 Money market investments 20,998 43,984
 Securities available for sale
 (estimated market values of $240,219
 and $198,351 at 6/30/93 and
 12/31/92, respectively) 240,138 197,448
 Investment securities (estimated market
 values of $318,504 and $231,542
 at 6/30/93 and 12/31/92, (respectively):
 Bonds:
 United States Government and agencies 199,882 114,800
 State, municipal and other 112,402 111,885
 Total: 312,284 226,685
 Stocks 2,965 2,965
 Total investment securities 315,249 229,650
 Mortgage-backed securities (estimated
 market values of $121,809 and $87,953
 at 6/30/93 and 12/31/92, respectively) 115,887 83,186
 Mortgage loans on real estate, net 942,080 887,941
 Other loans, net 35,563 44,248
 Other real estate owned 14,929 19,846
 Banking house and equipment, net 9,105 9,212
 Accrued interest receivable 14,128 13,351
 Federal Home Loan Bank stock, at cost 16,385 9,900
 Other assets 11,029 2,219
 Total assets $1,857,303 $1,605,493
 Liabilities And Stockholders' Equity
 Due to depositors $1,258,184 $1,277,092
 Borrowed funds 314,700 194,250
 Mortgagors' escrow deposits 10,680 7,915
 Accounts payable and accrued expenses 12,303 9,882
 Official checks outstanding 68,316 19,588
 Accrued taxes payable 1,122 1,272
 Other liabilities 8,728 1,170
 Total liabilities 1,674,033 1,511,169
 Commitments and contingencies:
 Stockholders' equity:
 Preferred stock, $.01 par value, 5,000,000
 shares authorized; none issued --- ---
 Common stock, $.01 par value, 30,000,000
 authorized, 11,362,000 issued 114 ---
 Additional paid-in capital 98,044 ---
 Retained earnings,
 substantially restricted 98,779 94,324
 Less:
 Unallocated common stock held by ESOP
 (1,081,575 shares) (9,734) ---
 Unearned common stock held by Bank's
 Recognition and Retention Plans and
 Trusts (RRP's) (437,000 shares) (3,933) ---
 Total stockholders' equity 183,270 94,324
 Total liabilities and
 stockholders' equity $1,857,303 $1,605,493
 T R FINANCIAL CORP. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited, in thousands)
 Three Months Six Months
 Periods ending June 30, 1993 1992 1993 1992
 Interest income:
 Mortgage loans $19,530 $19,641 $39,150 $39,714
 Mortgage-backed securities 1,987 2,117 3,895 4,329
 Securities and other
 investments 6,176 6,485 12,293 12,992
 Other loans 921 1,478 1,935 3,237
 Total interest income 28,614 29,721 57,273 60,272
 Interest expense:
 Deposits 11,805 15,191 24,182 31,759
 Borrowed funds 4,513 2,566 8,323 5,197
 Total interest expense 16,318 17,757 32,505 36,956
 Net interest income before provision
 for possible loan losses 12,296 11,964 24,768 23,316
 Provision for possible
 loan losses 1,500 2,250 3,400 4,400
 Net interest income after provision
 for possible loan losses 10,796 9,714 21,368 18,916
 Non-interest income:
 Loan fees and other
 charges, net 1,937 1,435 3,866 3,176
 Net gain on sales
 of securities 243 906 3,248 1,052
 Gain on sales of mortgage-backed
 securities --- --- --- 144
 Gain on sales of whole loans 166 61 337 531
 Other income 126 164 254 275
 Total non-interest income: 2,472 2,566 7,705 5,178
 Non-interest expense:
 Salaries and employee
 benefits 4,313 3,668 8,604 7,322
 Occupancy and equipment
 expense 892 829 1,774 1,656
 Marketing expense 590 468 965 787
 Other real estate
 owned expense 463 370 2,073 973
 FDIC assessment 738 725 1,476 1,450
 Other operating expense 1,775 1,549 3,472 3,273
 Total non-interest expense 8,771 7,609 18,364 15,461
 Income before provision for income
 taxes, extraordinary items and
 net cumulative effect of changes
 in accounting principles 4,497 4,671 10,709 8,633
 Provision for income taxes 1,883 2,695 4,486 5,004
 Income before extraordinary
 items and net cumulative
 effect of changes in
 accounting principles 2,614 1,976 6,223 3,629
 Extraordinary charges from prepayment
 of FHLB advances, net (1,185) --- (2,268) ---
 Net cumulative effect of changes in
 accounting principles --- --- 500 ---
 Net income(A) $ 1,429 $1,976 $4,455 $3,629
 (A)Net income for the post conversion period of June 29, 1993 to June 30, 1993 was not material and accordingly earnings per share data for this period have not been presented.
 T R FINANCIAL CORP. AND SUBSIDIARIES
 Selected Financial Ratios And Other Data
 (Dollars in thousands)
 At or for the three months
 ended June 30, 1993 1992
 Performance Ratios (in percents):
 Return on average assets 0.34 0.52
 Return on average stockholders' equity 5.83 9.19
 Average stockholders' equity
 to average assets 5.77 5.62
 Stockholders' equity to total assets 9.87 5.74
 Interest rate spread during period 2.70 2.87
 Net interest margin 3.01 3.24
 Non-interest expense to average assets 2.06 1.99
 Ratio of net interest income to
 non-interest expense 1.40x 1.57x
 Average interest-earning assets to average
 interest-bearing liabilities 1.08x 1.08x
 Other Data:
 Allowance for possible loan losses $ 12,902 $10,707
 Mortgage loan originations
 (Year to date) $124,904 $91,583
 Full-service customer facilities 12 12
 At: June 30, Dec. 31,
 1993 1992
 Regulatory Capital Ratios (Bank only):
 (in percents)
 Leverage capital ratio 8.50 6.00
 Total risk-based capital ratio 16.62 12.14
 Assets Quality Ratios:
 Non-performing loans to total loans 4.66 5.00
 Non-performing assets to total assets 3.32 4.21
 Net charge-offs to average loans
 (Year to date) 0.34 0.41
 Allowance for possible loan losses to
 total loans 1.30 1.18
 Allowance for possible loans losses to
 non-performing assets 20.95 16.49
 Allowance for possible loan losses to
 non-performing loans 27.96 23.57
 -0- 7/22/93
 /CONTACT: Theodore S. Ayvas, assistant vice president - investor relations of T R Financial Corp., 516-742-9300/
 (ROSE)


CO: T R Financial Corp. ST: New York IN: FIN SU: ERN

MP -- NY054 -- 4592 07/22/93 13:24 EDT
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Date:Jul 22, 1993
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