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CENTRAL HOLDING COMPANY REPORTS MANAGEMENT REORGANIZATION AND RESULTS OF SECOND QUARTER ENDED DEC. 31, 1991

 CENTRAL HOLDING COMPANY REPORTS MANAGEMENT REORGANIZATION
 AND RESULTS OF SECOND QUARTER ENDED DEC. 31, 1991
 MOUNT CLEMENS, Mich., Feb. 18 /PRNewswire/ -- Central Holding Company (the "Company" or "CHC") (NASDAQ: CHOL) announced that David A. Widlak has resigned as president and chief executive officer of CHC and as chief executive officer and chairman of the board of its savings institution subsidiary, Colonial Central Savings Bank, F.S.B. ("Colonial"), to take the position of president and chief executive officer of Red Carpet Real Estate Services, Inc. Widlak will now be able to focus his efforts entirely on real estate brokerage franchising operations and will continue to serve as chairman of the board of Red Carpet Real Estate Services, Inc. Widlak stated that he is "excited to be able to now devote his full energies to the Company's real estate brokerage franchising operations."
 Colonial announced that Robert N. Shuster has been appointed president and chief executive officer. Shuster was also appointed to Colonial's board of directors and will assume Widlak's former responsibilities at Colonial. Shuster, who has been with Colonial since August 1983, was executive vice president in charge of Colonial's mortga ?banking operations. Previously, Shuster was the chief financial officer of both Colonial and CHC. Prior to August 1983, Shuster was an audit manager at Arthur Andersen & Co. in Detroit.
 CHC reported a net loss of $3,805,000 and $3,780,000 for the three and six months ended Dec. 31, 1991, as compared to net income of $35,000 and $537,000 for the corresponding periods one year earlier.
 CHC reported a net loss from continuing operations and before extraordinary items of $1,277,000 and $854,000 for the three and six months ended Dec. 31, 1991, as compared to net income from continuing operations of $120,000 and $325,000 for the corresponding periods one year earlier.
 The net loss of $1,277,000 from continuing operations for the quarter ended Dec. 31, 1991, is primarily the result of recording additional charge offs and provisions of $1,587,000 on real estate owned and loans receivable as compared to the quarter ended Dec. 31, 1990. These increased charge offs and provisions reflect a continuing depressed commercial real estate market. The Company's non-performing loans and real estate owned has declined from $23.4 million at Dec. 31, 1990, to $19.5 million at Dec. 31, 1991.
 Additionally, during the quarter ended Dec. 31, 1991, CHC reported a loss from discontinued operations of $2,137,000 due to the partial write-down of the assets of the Company's real estate brokerage franchising operations to anticipated net sales value. As a result of regulatory capital considerations and recent discussions with the Office of Thrift Supervision ("OTS"), the Company is seeking to sell its real estate brokerage franchise operations. The Company's ability to include its investment in its real estate brokerage franchise operations as regulatory capital is currently limited under federal regulations and will be totally eliminated by July 1994.
 The quarter and six months ended Dec. 31, 1991, also included extraordinary charges of $391,000 and $680,000, respectively, due to the early payoff of higher costing borrowings from the Federal Home Loan Bank of Indianapolis. The early prepayment of borrowings is part of the Company's ongoing efforts to obtain regulatory capital compliance at Colonial.
 As a result of its losses during the quarter ended Dec. 31, 1991, Colonial is not in compliance with the Capital Plan Agreement (the "Agreement") previously entered into between Colonial and the OTS. The OTS has stated, however, that it is not currently invoking its rights under the Agreement to (1) impose restrictions on operations regarding, among other things, hedging activities, most types of non-one-to-four- family residential lending, real estate sales, securities investments, loan sales and certain service corporation investments and borrowings; and (2) negotiate for Colonial a plan of merger, consolidation, transfer of assets and liabilities, reorganization, acquisition or capital infusion or a Management Services Agreement. The OTS has the right at any time in the future to impose any or all of the foregoing operating restrictions or require Colonial to enter into one of the described transactions. Colonial and the OTS are discussing replacing the Agreement with a capital directive.
 At Dec. 31, 1991, Colonial had $11.1 million of tangible capital or 2.92 percent of adjusted total assets which is $5.4 million in excess of the current regulatory minimum of 1.5 percent of adjusted total assets. Colonial also met its minimum core capital requirement at Dec. 31, 1991, under the Agreement. Colonial failed, however, to meet its minimum risk-based capital requirement under the Agreement at Dec. 31, 1991.
 The OTS has also proposed that Colonial execute a Cease and Desist Order (the "Order"). The Order would require that Colonial cease and desist from violating (1) certain record-keeping requirements; (2) Section 23B of the Federal Reserve Act; (3) preparation and approval requirements with respect to expense reports; (4) asset classification requirements; and (5) loans to one borrower requirements. The Order further provides that Colonial amend or adopt certain policies and procedures regarding, among other things, (a) accounting, reporting and documentation matters; (b) transactions with affiliates; (c) tax allocation between CHC and Colonial; (d) expense reimbursement, payment and allocation among CHC, Colonial and their subsidiaries; (e) the classification of assets and employment of specialized personnel or outside firms to reduce classified assets; (f) the establishment of loan loss reserves; and (g) loans to one borrower compliance. Colonial would be required to report monthly to the OTS describing its compliance with the Order and provide a list of and certain information pertaining to its classified assets in excess of $400,000.
 CHC is a real estate and financial services organization headquartered in Mount Clemens. Its main operating subsidiaries include: Colonial Central Savings Bank, F.S.B., a federally chartered stock savings bank with branches in Michigan and Indiana; Red Carpet Real Estate Services, Inc., Red Carpet Keim and Gallery of Homes, which franchise real estate brokerage offices; and Central Mortgage Corporation, which originates residential mortgage loans.
 CENTRAL HOLDING COMPANY
 OPERATING HIGHLIGHTS
 (In thousands of dollars, except per-share data)
 Three Months Ended Six Months Ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Net interest income $2,407 $2,739 $5,007 $5,676
 Income (loss) from continuing
 operations before taxes (1,546) 247 (513) 621
 Net income (loss) from
 continuing operations (1,277) 120 (854) 325
 Net income (loss) after
 discontinued operations but
 before extraordinary items (3,414) 35 (3,100) 537
 Net income (loss) (3,805) 35 (3,780) 537
 Per share data:
 Net income (loss) per share
 from continuing operations (0.35) 0.03 (0.24) 0.09
 Net income (loss) per share
 after discontinued operations
 but before extraordinary items (0.94) 0.01 (0.86) 0.15
 Net income (loss) per share (1.05) 0.01 (1.04) 0.15
 Average shares outstanding 3,622 3,622 3,622 3,622
 Balance Sheet Highlights
 (In thousands of dollars, except per-share data)
 Dec. 31, 1991 June 30, 1991
 Total assets $389,117 $455,796
 Loans receivable, net 278,436 300,719
 Deposit accounts 327,039 341,974
 Stockholders' equity 14,372 18,081
 Book value per share 3.97 4.99
 -0- 2/18/92
 /CONTACT: Robert N. Shuster of Colonial Central Savings Bank, F.S.B., 313-790-5000/
 (CHOL) CO: Central Holding Company; Colonial Central Savings Bank;
 Red Carpet Real Estate Services, Inc. ST: Michigan IN: FIN SU: ERN PER


JG-SB -- DE020 -- 9996 02/18/92 13:55 EST
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Date:Feb 18, 1992
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