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AMFED FINANCIAL FIRST-QUARTER NET INCOME INCREASES 88 PERCENT; EARNS $2.8 MILLION OR 67 CENTS PER SHARE

 RENO, Nevada, April 23 /PRNewswire/ -- AMFED Financial Inc. (NASDAQ: AMFF), the holding company for American Federal Savings Bank, today reported first-quarter net income increased 88 percent to $2.8 million, or 67 cents per share, compared to $1.5 million in the first quarter of 1992. Earnings in the first quarter this year were boosted $787,000, or 19 cents per share, by a one-time benefit from a change in accounting principle relating to income taxes in accordance with SFAS No. 109. Earnings per share are not relevant in the year ago period as American Federal was a mutual institution that converted to stock form and created a holding company on Nov. 20, 1992.
 "We had a highly successful first quarter as a publicly owned institution. Our annualized return on average assets, excluding the one-time tax benefit, was 1.14 percent compared to the 0.98 percent return for the first quarter of 1992," said E.R. Houston, chairman and chief executive officer. AMFED's annualized return on average shareholder equity before the change in accounting principle was 9.2 percent.
 "We moved a $5.0-million multi-family loan back into the non-accrual status when it became 29 days past due," Houston said. A $430,000 loan loss provision was taken in the first quarter of 1992 when this $5.0 million loan and a $3.6 million related loan were first classified. Non-accrual loans and loans more than 90 days past due totaled $8.9 million at the end of March compared to $4.0 million on Dec. 31, 1992. Total non-performing assets, including real estate owned through foreclosure, were $11.8 million, or 1.66 percent of assets, at March 31, 1993.
 Net interest income, before provision for loan losses, increased 10.4 percent to $7.0 million this quarter compared to $6.3 million in the first quarter a year ago. AMFED's net interest margin this quarter was 4.10 percent compared to 4.35 percent in the quarter ended March 31, 1992. In the year ago quarter American Federal's cost of funds was dropping at a much faster rate than in the first quarter of 1993.
 "Loan originations were above last year's first-quarter level but have slowed from the high level generated in the fourth quarter. Loan applications, however, have been picking up again, and second quarter loan volume should be ahead of the first-quarter total," Houston added. First-quarter loan originations increased 8.4 percent to $42.7 million compared to $39.4 million in the first quarter a year ago.
 Non-interest income totaled $1.1 million in the first quarter compared to $1.2 million in the first quarter a year ago. Gain on the sale of loans totaled $35,000 in the first quarter this year compared to $266,000 in the first quarter of 1992. Non-interest operating expenses totaled $4.9 million, which was comfortably exceeded by AMFED's net interest income, before loan loss provision, of $7.0 million. Non-interest operating expense in the first quarter a year ago was $4.3 million. The operating expense ratio (non-interest expense as a percentage of net interest income and non-interest income) was 60.6 percent for the first quarter of 1993.
 At March 31, 1993, AMFED's shareholders' equity was $89.3 million; book value was $21.40 per share and tangible book value was $21.27 per share. American Federal's tangible capital ratio is 9.74 percent and its risk-based capital ratio is 20.6 percent, which are substantially above regulatory minimums. At March 31, 1993, AMFED's assets totaled $709.4 million compared to $708.2 million at the end of 1992.
 AMFED Financial is the holding company for American Federal Savings Bank, which operates 26 full-service offices throughout Nevada. Twenty of the offices are in Northern Nevada, which includes the Reno/Sparks/Lake Tahoe region and six are in Southern Nevada (Las Vegas). AMFED closed its initial public offering of common stock on Nov. 20, 1992. Yesterday, the company's stock closed the trading day at $20.25 per share.
 AMFED FINANCIAL INC. (AMFF)
 FINANCIAL HIGHLIGHTS
 (Unaudited, dollars in thousands except per share)
 First Quarter Ended March 31: 1993 1992
 Interest income $12,875 $13,444
 Interest expenses $ 5,917 $ 7,143
 Provision for loan losses $ 150 $ 711
 Net interest income after
 provision for loan losses $ 6,808 $ 5,590
 Non-interest income $ 1,133 $ 1,214
 Non-interest expense $ 4,878 $ 4,312
 Income tax $ 1,040 $ 995
 Net operating income $ 2,023 $ 1,497
 Benefit from change in
 accounting principle $ 787 --
 Net income $ 2,810 $ 1,497
 Earnings per share before change
 in accounting principle $ 0.48 --
 Earnings per share from change
 in accounting principle $ 0.19 --
 Earnings per share $ 0.67 --
 Weighted average shares outstanding 4,173,913 --
 March 31, 1993 Dec. 31, 1992
 Total assets $709,426 $708,156
 Loans receivable, net $398,326 $402,798
 Mortgage-backed securities $186,678 $176,091
 Investment securities $ 54,245 $ 54,498
 Deposits $609,418 $612,282
 Borrowings -- --
 Shareholders' equity $ 89,302 $ 85,772
 Book value per share $ 21.40 $ 20.55
 Tangible book value per share $ 21.27 $ 20.41
 ADDITIONAL FINANCIAL HIGHLIGHTS (RATIOS ANNUALIZED)
 First Quarter Ended March 31: 1993 1992
 Return on average assets before change
 in accounting principle (pct) 1.14 0.98
 Return on average equity before change
 in accounting principle (pct) 9.2 15.3
 Efficiency ratio (operating expense/
 revenue) (pct) 60.55 59.48
 Operating expense/assets (pct) 2.75 2.79
 Net interest margin (pct) 4.10 4.35
 Interest earning assets (pct) 113.44 105.23
 Average equity/average assets (pct) 12.42 6.43
 Tangible capital ratio
 (Savings Bank only) (pct) 9.74 6.41
 Core capital ratio
 (Savings Bank only) (pct) 9.74 6.41
 Risk-based capital ratio
 (Savings Bank only) (pct) 20.65 12.04
 LOANS:
 Loan Originations:
 Originated $41,526 $39,417
 Purchased $ 1,188 --
 Total $42,714 $39,471
 ALLOWANCE FOR LOAN LOSSES: March 31, 1993 Dec. 31, 1992
 Balance at beginning of quarter $ 4,147 $ 3,157
 Provision for loan losses $ 150 $ 711
 Charge offs (net of recoveries) $ 70 $ 3
 Balance at end of quarter $ 4,227 $ 3,865
 Loan loss allowance/net loans (pct) 1.05 0.96
 Loan loss allowance/
 non-performing loans (pct) 47.31 96.00
 NON-PERFORMING ASSETS: March 31, 1993 Dec. 31, 1992
 Accruing loans - 90 days past due -- --
 Non-accrual loans $ 8,934 $ 4,026
 Restructured loans -- --
 Total non-performing loans $ 8,934 $ 4,026
 REO $ 2,866 $ 2,853
 Total non-performing assets $11,800 $ 6,879
 Total non-performing assets/
 total assets (pct) 1.66 0.97
 -0- 4/23/93
 /CONTACT: E.R. Houston, chairman and chief executive officer, of AMFED Financial, 702-785-8500/
 (AMFF)


CO: AMFED Financial Inc.; American Federal Savings Bank ST: Nevada IN: FIN SU: ERN

MM-LM -- SE002 -- 9872 04/23/93 07:49 EDT
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