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CENTRAL HOLDING COMPANY REPORTS RESULTS OF QUARTER ENDED SEPT. 30, 1992

CENTRAL HOLDING COMPANY REPORTS RESULTS OF QUARTER ENDED SEPT. 30, 1992
 CLINTON TOWNSHIP, Mich., Oct. 26 /PRNewswire/ -- Central Holding Company (the "Company" or "CHC") (NASDAQ: CHOL) reported net income of $217,000 or $0.06 per share for the three months ended Sept. 30, 1992, as compared to net income of $26,000 or $0.01 per share for the corresponding period one year earlier.
 CHC reported net income from continuing operations of $115,000 for the three months ended Sept. 30, 1992, as compared to $423,000 for the corresponding period one year earlier.
 CHC also reported that its wholly owned subsidiary, Colonial Central Savings Bank, F.S.B. ("Colonial") has executed a Capital Directive with the Office of Thrift Supervision ("OTS"). The Capital Directive replaces a Capital Plan Agreement which Colonial had executed with the OTS in January 1991. The Capital Plan Agreement between Colonial and the OTS has been terminated. The Capital Directive has five requirements which Colonial must meet. These requirements are:
 1. By June 30, 1993, Colonial must achieve compliance with all regulatory capital requirements.
 2. By June 30, 1993, Colonial must reduce and maintain its level of assets classified substandard and doubtful pursuant to applicable regulations to less than 75 percent of the sum of tangible capital, plus general valuation allowances. If, however, Colonial achieves positive operating income for the quarter ending June 30, 1993, and any subsequent quarter thereafter, then Colonial needs only to reduce and maintain the level of assets classified substandard and doubtful at less than 100 percent of the sum of tangible capital, plus general valuation allowances for each quarter in which positive operating income is achieved.
 3. At all times, Colonial must maintain a level of tangible capital of not less than 2 percent of tangible assets.
 4. Colonial's sale of loans serviced for others cannot cause the total of loans serviced for others to fall below a level of $1 billion. (At Sept. 30, 1992, Colonial had $1.06 billion of loans serviced for others.)
 5. Colonial must submit a narrative description, for written approval by the OTS, of the strategies to be implemented to comply with the requirements enumerated above. Colonial has already submitted such written strategies to the OTS and has obtained their approval.
 At Sept. 30, 1992, Colonial met its tangible and core capital requirements but did not meet its risk based capital requirement. Colonial had a tangible capital ratio of 2.66 percent and a core capital ratio of 3.31 percent at Sept. 30, 1992, as compared to current minimum tangible and core regulatory capital ratio requirements of 1.50 percent and 3.00 percent respectively. Colonial had a risk based capital ratio of 6.35 percent at Sept. 30, 1992, as compared to a minimum required risk based capital ratio of 7.2 percent (to be increased to 8.0 percent on Dec. 31, 1992). Colonial is $3.4 million below the 8-percent fully phased-in risk based capital requirement.
 Colonial had previously announced the execution on July 16, 1992, of an agreement to sell its Indiana deposits and bank branch facilities. This transaction is subject to regulatory approval and is anticipated to be completed by January 31, 1993. On a pro forma basis, as of Sept. 30, 1992, this transaction would have allowed Colonial to meet all of its regulatory capital requirements.
 At Sept. 30, 1992, Colonial had assets classified substandard or doubtful of $15.1 million or 141 percent of tangible capital and general valuation allowances. This compares to assets classified substandard or doubtful of $16.4 million or 164 percent of tangible capital and general valuation allowances at June 30, 1992.
 CHC is a financial services organization headquartered in Clinton Township. Its main operating subsidiaries include: Colonial Central Savings Bank, F.S.B., a federally chartered stock savings bank with branches in Michigan and Indiana, 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
 Sept. 30,
 1992 1991
 (Unaudited)
 Net interest income $2,260 $2,600
 Net income from continuing operations $115 $423
 Net income (loss) from discontinued operations 102 (109)
 Net income after discontinued operations but
 before extraordinary items 217 314
 Net loss from extraordinary items --- (288)
 Net income $217 $26
 Per-share data:
 Net income per share from continuing
 operations $0.03 $0.12
 Net income (loss) per share from discontinued
 operations $0.03 (0.03)
 Net income per share after discontinued
 operations but before extraordinary items 0.06 0.09
 Net loss per share from extraordinary items --- (0.08)
 Net income per share $0.06 $0.01
 Average shares outstanding 3,622 3,622
 BALANCE SHEET HIGHLIGHTS
 (In thousands of dollars, except per-share data)
 Sept. 30, June 30, Sept. 30,
 1992 1992 1991
 (Unaudited) (Unaudited)
 Total assets $344,576 $357,859 $424,301
 Loans receivable, net 236,041 240,565 293,830
 Deposit accounts 291,764 303,067 334,947
 Stockholders' equity 10,635 10,418 18,107
 Book value per share 2.94 2.88 5.00
 -0- 10/26/92
 /CONTACT: Margaret S. Makela or Robert N. Shuster of Central Holding Company, 313-792-7000/
 (CHOL) CO: Central Holding Company ST: Michigan IN: FIN SU: ERN


JG-SK -- DE036 -- 5091 10/26/92 18:06 EST
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