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AMERIFED REPORTS THIRD QUARTER EARNINGS OF $2.4 MILLION

 AMERIFED REPORTS THIRD QUARTER EARNINGS OF $2.4 MILLION
 JOLIET, Ill., July 21 /PRNewswire/ -- AmeriFed Financial Corp. (NASDAQ-NMS: AFFC), the holding company of AmeriFed Federal Savings Bank, today announced net income of $2.4 million, or $0.74 per share, for the third quarter ended June 30, 1992 (the company's fiscal year ends Sept. 30). Net income for the 9 months of the fiscal year was $5.8 million or $1.81 per share compared to $2.8 million for the 9 months ended June 30, 1991.
 Robert B. Breidert, president and chief executive officer, commented on the results, saying, "The strength of our local franchise continues to grow. Contrary to the national trend of shrinking deposits, our deposit base has remained stable and shown some growth. Deposits grew 1 percent in the last quarter and 4 percent over the last 9 months. Loan originations including mortgage refinancings were $62.2 million for the quarter and $133.5 million fiscal year to date. Our net interest spread of 3.13 percent for the quarter continues to reflect the large difference between short-term rates and long-term rates. If this difference in market rates narrows, our spread will likely also narrow."
 For the quarter ended June 30, 1992, net interest income was $7.9 million compared to $5.6 million for the quarter ended June 30, 1991.
 Interest income decreased to $17.9 million for the quarter just ended compared to $18.6 in the year ago quarter. Even though average interest earning assets were $53.2 million larger compared to the year ago quarter, interest income decreased as the average yield on interest bearing assets declined to 8.32 percent for the 1992 quarter from 9.19 percent in 1991, again reflecting lower market interest rates.
 Offsetting the decrease in interest income, was a larger decrease in interest expenses to $10.1 million from $13.0 million for the quarter ended June 30, 1991. The decrease in interest expense was the result of declining market interest rates. The cost of funds for the quarter just ended was 5.19 percent compared to 6.85 percent for the June 1991 quarter.
 Partially offsetting the $2.2 million increase in net interest income was an increase in non-interest expense to $4.5 million for the June 1992 quarter compared to $4.1 million for the June 1991 quarter. The increase was primarily due to higher costs for employee salaries and benefits, data processing expense, and deposit insurance premiums.
 Interest earning assets were $870.0 million at June 30, 1992 compared to $843.7 million at June 30, 1991. The increase primarily occurred in mortgage-backed securities which was partially offset by a decrease in loans receivable and investment securities.
 Low market interest rates have caused many fixed rate mortgages to refinance to lower rates and adjustable rate loans to convert to fixed rates. Many of these loans, which were 30 year loans with 20-30 years until maturity, have now refinanced to 15 year terms. Also, the refinancing of adjustable rate mortgages to fixed rate has caused the composition of the bank's loan portfolio to shift slightly. Adjustable rate mortgages and other short-term loans comprise 50 percent of total loans at June 30, 1992 compared to 56 percent at the beginning of the fiscal year.
 Asset quality continued to be better than the national averages as reflected by a 0.34 percent ratio of non-performing loans and real estate owned to total assets as well as less than .09 percent in net charge-offs fiscal year to date. The allowance for possible loan losses at June 30, 1992 is $3.3 million or 123 percent of non-performing loans.
 Early in the first quarter, on Oct. 10, 1991, the bank completed its initial public offering. At the same time, the bank converted from a mutual to stock charter and issued 100 percent of its stock to the company. Because the conversion and stock offering did not occur until fiscal 1992, financial information for fiscal 1991 is for the bank only since the company had no operations prior to Oct. 10, 1991. Accordingly, fiscal 1991 income does not reflect earnings on investment of the stock offering proceeds nor are earnings per share data during fiscal 1991 presented.
 The consolidated capital of the company at June 30, 1992 stands at $83.5 million (9.24 percent of total assets) or $25.92 per share. Consolidated tangible capital represents 8.57 percent of total assets or $24.04 per share.
 AmeriFed Federal Savings Bank has ten branches in and around Will County, one of the suburban collar counties adjacent to Chicago.
 -0- 7/21/92
 /CONTACT: Joan Shain-investor relations of Amerifed, 815-727-0370; or Gary Strong or Nick Farina of the Financial Relations Board, 312-266-7800/
 (AFFC) CO: AmeriFed Financial Corp. ST: Illinois IN: FIN SU: ERN


TQ -- NY050 -- 1252 07/21/92 11:01 EDT
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Publication:PR Newswire
Date:Jul 21, 1992
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