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THE STUDENT LOAN CORPORATION ANNOUNCES FIRST QUARTER EARNINGS

 PITTSFORD, N.Y., April 23 /PRNewswire/ -- The Student Loan Corporation (NYSE: STU) today reported net income of $17.1 million ($0.86 per share) for the quarter ended March 31, 1993, an increase of 71 percent over net income of $10.0 million ($0.50 per share) in the first quarter of 1992.
 The significant gain in net income was the result of an increase in the company's student loan portfolio, and continued low funding costs due to low interest rates during the quarter. Core earnings, which exclude the benefit of floor interest rates on loans in the company's portfolio, were $10.6 million for the quarter, up 26 percent from the first quarter 1992 core earnings of $8.4 million.
 Floor income, attributable to the fixed minimum rates on certain loans in the company's student loan portfolio, accounted for $6.5 million ($0.33 per share) of net income compared with $1.6 million ($0.08 per share) for the first quarter in 1992. The impact of this fixed minimum rate on the company's interest earnings will decrease in the future due to the changes in the Higher Education Act that occurred in 1992. Most student loans disbursed after Oct. 1, 1992 will not earn floor income.
 In addition, the company recognized a $34.2 million increase in stockholder's equity. This increase is the result of a change in tax accounting (SFAS 109) related to the initial transfer of the student loan portfolio from Citibank (New York State) to the company in December 1992.
 The company's board of directors declared a quarterly cash dividend on the company's common stock of $0.06 per share. The dividend will be paid on June 1, 1993 to shareholders of record on May 14, 1993.
 At March 31, 1993, the company's insured student loan assets were $3.6 billion, up 4.3 percent over 1992 year-end balances of $3.4 billion. The company originated $267.6 of loans in the first quarter, up 17.9 percent over the first quarter 1992 originations of $226.9 million. Expenses during the quarter were up only 2.1 over the same period in 1992, reflecting the company's continued focus on expense management.
 Since his election, President Clinton and certain members of his administration have indicated support for a more quickly and thoroughly implemented direct lending program than the pilot program enacted by the 1992 Amendments to the Higher Education Act, which governs the federal student loan program. Although full details of the President's proposal have not been released to the public, members of his administration have indicated that the proposal would provide for a phase-in of direct lending over a three year period, so that all guaranteed student loans would be made directly by the federal government, and not by lenders such as the company.
 "The Clinton proposal is without question well-intentioned," said Mr. Bikien, "reflecting the commitment the new President expressed toward higher education in his fall campaign. However, the current program for funding and administering student loans, now over 25 years old, has proven itself over time and steadily evolved in its responsiveness to student financial needs. Moreover, the 1992 amendments addressed many of the same concerns President Clinton raised during his campaign, significantly increasing money available to students, and greatly expanding eligibility."
 "The Clinton proposal must now be considered by Congress," continued Mr. Bikien. "Its merits and ultimate implementation will no doubt be debated extensively, particularly in the context of the President's other spending and deficit reduction proposals. The proper role of the private sector in funding and servicing student loans should receive very careful consideration in this debate, and any final revisions must take into account the needs and concerns of students, parents and schools."
 "We have confidence that The Student Loan Corporation's financial stability, commitment to customers and products, and demonstrated emphasis on delivering quality service will serve us well in the face of this political uncertainty, as it has when we faced other demands in the highly competitive business environment in which we operate," concluded Mr. Bikien.
 The Student Loan Corporation is the nation's largest originator and second largest holder of insured student loans. Citibank (New York State), a subsidiary of Citicorp, remains the largest shareholder in the company, with a 80 percent interest.
 THE STUDENT LOAN ASSOCIATION
 Statement of Income
 (Dollars in thousands, except per share amounts)
 Periods ended March 31 Three months
 1993 1992 Change
 Interest income $69,197 $63,869 5,328
 Interest expense 31,722 39,091 (7,369)
 Net interest income 37,475 24,778 12,697
 Fee income 22 35 (13)
 Total income 37,497 24,813 12,684
 Salaries and employee
 benefits 4,785 4,567 218
 Other expenses 4,121 4,155 (34)
 Total operating expenses 8,906 8,722 184
 Income before income
 taxes 28,591 16,091 12,500
 Income taxes 11,488 6,100 5,388
 Net income 17,103 9,991 7,112
 Earnings per common share $0.86 $0.50 $0.36
 Net income (excluding
 floors) 10,586 8,429 2,157
 Earnings per common
 share (excluding floors) $0.53 $0.42 $0.11
 Return on average
 total assets (pct.) 1.89 1.33 0.56
 Net interest margin (pct.) 4.18 3.28 0.90
 Net interest margin
 excluding floor (pct.) 2.92 2.96 -0.04
 Operating expense as a
 percent of avg. loan
 assets (pct.) 1.03 1.18 -0.15
 THE STUDENT LOAN CORPORATION
 Balance Sheet
 (Dollars in thousands)
 March 31 December 31 Change
 1993 1992
 Assets:
 Insured student loans $3,573,070 $3,426,314 $146,756
 Cash 446 282 164
 Other assets 154,763 64,351 90,412
 Total assets 3,728,278 3,490,947 237,331
 Liabilities:
 Short-term borrowings 2,881,686 2,759,641 122,045
 Long-term notes 600,000 600,000 0
 Amounts due parent 0 0 0
 Other liabilities 93,543 29,560 63,983
 Total liabilities 3,575,229 3,389,201 186,028
 Stockholder's equity:
 Common stock 200 200 0
 Additional paid-in
 capital 134,000 99,800 34,200
 Retained earnings 18,849 1,746 17,103
 Total stockholders'
 equity 153,049 101,746 51,303
 Total liabilities and
 stockholders' equity 3,728,278 3,490,947 237,331
 Average insured
 student loans 3,521,100 3,094,360 426,740
 -0- 4/23/93 R
 /CONTACT: Maria Rullo, media, 212-559-0409, or Deborah Russell, investors, 212-559-4658, or John Eley, investors, 212-559-2479, all of The Student Loan Corporation/
 (STU)


CO: Student Loan Corporation ST: New York IN: FIN SU: ERN

WB -- NY001R -- 9986 04/23/93 11:11 EDT
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Date:Apr 23, 1993
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