AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $2,315,000 FOR SECOND QUARTER OF 1993
ANNANDALE, Va., July 20 /PRNewswire/ -- Ameribanc Investors Group (NASDAQ-NMS: AINVS) reported net income for the second quarter ended June 30, 1993, of $2,315,000 (7 cents per share) compared to $5,012,000 (79 cents per share) for last year's second quarter. The second quarter 1993 net income included additional provisions for losses and writedowns of nonearning assets totaling $0.6 million. The results of the second quarter of the prior year reflected provisions for losses and writedowns for nonearning assets totaling $1.5 million which were more than offset by pretax gains on sales of loan servicing rights of $3.2 million and real estate of $1.6 million. There were no such gains recorded in the second quarter of 1993. The second quarter income for both 1993 and 1992 was substantially sheltered from income taxes resulting from the operating loss realized in the first quarter of each year. Management estimates that a tax provision will likewise not be required in the third quarter of 1993 as the remaining loss from the first quarter of 1993 will continue to shelter expected earnings. The 1993 second quarter net income decreased the year-to-date net loss to $6,171,000 (17 cents per share) compared to a net loss of $968,000 (15 cents per share) for the six months ended June 30, 1992. Per share amounts have been substantially affected by the issuance of 29,169,667 new shares of common stock on Dec. 30, 1992, which increased the number of shares outstanding to 35,510,899 at Dec. 31, 1992. Operating Earnings Ameribanc has continued to strengthen its ability to produce recurring income from its core businesses. The focus on maintaining the net interest margin and producing improved fee income through profit enhancement programs resulted in core earnings (pretax income adjusted for certain items that do not regularly occur) of $2.4 million and $4.4 million for the second quarter of 1993 and year-to-date 1993, respectively; compared to $1.9 million and $4.0 million for the second quarter of 1992 and year-to-date 1992, respectively.
Management expects continued improvements in core operations as a result of increased deposit-based and mortgage servicing fee income combined with stabilized r?ating expenses.
Capital Ameribanc's capital position was further strengthened by the profitable second quarter. Ameribanc's principal subsidiary, Ameribanc Savings Bank, F.S.B. (the Bank) had tangible, core, and risked-based capital ratios of 4.40 percent, 5.53 percent and 9.36 percent, respectively. The Bank continued to comfortably exceed all regulatory capital requirements as of June 30, 1993, as summarized in the following table. Mortgage Banking Originations of residential mortgage loans totaled $160 million in the second quarter of 1993 compared to $122 million in the same quarter of 1992 and $90 million in the first quarter of 1993. Year-to-date originations totaled $250 million compared to $278 million for the first six months of 1992. Homeowners continue to take advantage of the low interest rates by refinancing their existing mortgages as refinances accounted for 67 percent of second quarter originations and 64 percent of year-to-date originations. Second quarter sales of mortgage loans totaled $84 million compared to $133 million for the second quarter of 1992. The portfolio of loans serviced for others amounted to $937 million as of June 30, 1993, as compared to $798 million at June 30, 1992, and $864 million at Dec. 31, 1992. Retail Banking The new initiative to acquire transaction accounts, introduced by the Bank in March 1993, has yielded over 6,000 new accounts, 48 percent of which are noninterest bearing. As these accounts mature, the Bank should achieve increased levels of interest-free funding sources. Deposit-related fee income amounted to $1.2 million in the second quarter of 1993 and $2.2 million for the first half of 1993, as compared to $1.0 million and $1.9 million for the second quarter of 1992 and the first half of 1992, respectively. Much of this increase is attributable to the new program. Total deposits as of June 30, 1993, were $796.6 million, compared to $800.5 million as of March 31, 1993, and $827.8 million as of Dec. 31, 1992. Total deposits in transaction and savings account balances have increased by $5.5 million during the first half of 1993, while certificate balances have declined by a total of $48.6 million, which included a decline of $28.3 million in jumbo deposits. The decline in certificate balances is consistent with current trends in the financial industry because of the lower interest rate environment. The Bank has determined it prudent to allow the higher cost jumbo deposits to decline. The Bank anticipates offering an expanded array of investment alternatives in the form of mutual fund and annuity products later in 1993. This program will allow Ameribanc customers to look beyond deposit accounts and certificates of deposit for their investment funds while providing the Bank with a valuable new source of fee income. Asset Quality Ameribanc disposed of $5 million of foreclosed and other nonearning assets during the second quarter of 1993, bringing total nonearning assets to $109.9 million as of quarter end. This compares to $114.6 million as of March 31, 1993, $131.7 million as of Dec. 31, 1992, and $152.8 million as of June 30, 1992. The board is encouraged with the continued slow, but sustained, progress in the efforts to reduce nonperforming assets. Management believes the commercial real estate market has experienced some limited improvements in specific types of assets, although the overall market remains soft. Organizational Matters The board of trustees is pleased to announce the appointment of Lucas Johnannes van Gastel as a trustee. Van Gastel is president of Stork Pension Plan, Amersfoort, The Netherlands. The board of directors of the Bank is also pleased to announce the appointment of Frank J. Quirk as a director. Quirk is president and CEO of MACRO International, Inc., a $40 million (sales) government consulting company. The addition of these very qualified individuals to the respective boards will provide enhanced leadership to the company. Ameribanc Investors Group is the holding company for Ameribanc Savings Bank, FSB, a $1.1 billion bank headquartered in Annandale, operating 29 retail branch offices in Northern Virginia, Hampton Roads and Charlottesville. AMERIBANC INVESTORS GROUP Selected Financial Data ($ in thousands, except per share data) Financial Condition June 30, 1993 Dec. 31, 1992 Loans receivable and MBS, Net $816,001 $821,530 Total Assets 1,101,931 1,162,814 Deposits 796,561 827,814 Shareholders' investment 68,871 75,054 Book value per share 1.94 2.11 Shares Outstanding 35,510,938 35,510,899 Results of Operations Quarter Ended June 30, 1993 1992 Interest revenue $17,801 $20,610 Interest expense 9,914 14,081 Net interest revenue 7,887 6,529 Provision for losses on loans 300 387 Net interest revenue after provision for losses 7,587 6,142 Other revenue 2,841 7,349 Other expense 8,113 8,156 Income before taxes 2,315 5,335 Provision for taxes 0 323 Net Income $2,315 $5,012 Earnings per share $0.07 $0.79 Avg. Shares Outstanding 35,510,938 6,341,232 Regulatory Capital Position Requirement Actual Tangible 1.50 pct. 4.40 pct. $16,154 $47,403 Core 4.00 pct. 5.53 pct. $43,248 $59,753 Risk-based 8.00 pct. 9.36 pct. $57,177 $66,882 -0- 7/20/93 /CONTACT: John J. Houseman, president, Ameribanc Investors Group, 703-658-2721, or David W. Campbell, president, Ameribanc Savings Bank, 703-658-1002/ (AINVS)
CO: Ameribanc Investors Group ST: Virginia IN: FIN SU: ERN
TW -- DC023 -- 3433 07/20/93 13:59 EDT
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|Date:||Jul 20, 1993|
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