Printer Friendly

CHARTER FEDERAL ANNOUNCES FINANCIAL RESULTS FOR FISCAL 1993 TO DATE

 BRISTOL, Va., Jan. 29 /PRNewswire/ -- Charter Federal (NASDAQ: CHFD) announced today that the Savings Bank had produced a net profit of $1.029 million or $0.28 per share on 3,656,297 average shares outstanding for the first two quarters of fiscal 1993 ended Dec. 31, 1992. Stockholders' equity rose to $27 million at Dec. 31, 1992 from $23.5 million at Dec. 31, 1991, with the ratio of stockholders' equity to assets increasing to 3.62 percent at Dec. 31, 1992 from 2.88 percent at Dec. 31, 1991. Assets at Dec. 31, 1992 totaled approximately $745 million, which represented a $73.1 million decline from total assets of $818.2 million at Dec. 31, 1991, a deliberate reduction pursuant to the Savings Bank's Business Plan.
 The net profit for the fiscal year to date was comprised of a net profit of $2.9 million or $0.78 per share on 3,656,297 average shares outstanding, generated during the first quarter and a net loss of $1.8 million or $(0.50) per share on 3,656,297 average shares outstanding incurred during the second quarter.
 The $3 million net profit produced from operations during the second quarter was reduced by the addition of $4.8 million to the allowance for losses on loans and other assets, which action was taken by the Board of Directors at the request of the Office of Thrift Supervision ("OTS") in its recent regular examination of the Savings Bank, the final report on which was received by the Savings Bank this week. The bulk of the amount added to allowance for losses was earmarked for possible loss on standby letters of credit issued by the Savings Bank in earlier years in participation with another savings institution to guarantee the payment of certain revenue bond transactions. Subsequent to the issuance of the letters of credit, the Resolution Trust Corporation ("RTC"), as receiver for the other participant, became the co-participant with Charter Federal in the credit enhancements. Earlier this week, a transaction was consummated between Charter Federal and the RTC to separate ownership of the enhancements, which was expected to facilitate the efforts of both parties to conclude their obligations in these matters more quickly and with a smaller loss realized than was previously deemed possible. The Board of Directors of Charter Federal believes that the total allowance for losses on loans and other assets is more than adequate to cover any losses that may be incurred on the letters of credit or other assets.
 "Charter Federal continues to make sound progress in its quest for greater financial strength," said E.L. Byington, Jr., President and CEO. "Although we are reporting a net loss for the quarter ended Dec. 31, 1992, our core earnings (total net income adjusted by the amount of non-recurring, non-operating income and expense items) rose from $2.8 million for the quarter ended Sept. 30, 1992 to $3.1 million for the quarter ended Dec. 31, 1992. Barring some unexpected, substantial change in general economic conditions, we expect continued increases in core earnings as we follow our Business Plan," he continued.
 Pursuant to provisions contained in the Federal Deposit Insurance Act ("FDI Act"), which took effect December 19, 1992 requiring the OTS to designate capital deficient institutions as either "undercapitalized," "significantly undercapitalized," or "critically undercapitalized," and to call for prescribed corrective actions, Charter Federal was notified by the OTS that it had been designated as "undercapitalized" and that until further notice, for purposes of calculating capital, it may include supervisory goodwill in regulatory capital. Earlier this month, the Savings Bank filed with the OTS its capital restoration plan, as required by the FDI Act. The Plan provides for full compliance, with the inclusion of supervisory goodwill, with all existing capital requirements by June 30, 1994.
 Charter Federal, which began operation in 1920, is a federally- chartered stock Savings Bank headquartered in Bristol, Virginia with 26 offices throughout Southwest and Southside Virginia and the Knoxville, Tennessee area.
 CHARTER FEDERAL SAVINGS BANK AND SUBSIDIARIES
 SELECTED QUARTERLY DATA (UNAUDITED)
 Dollars in Thousands, Except Per Share Amounts
 Three Months Ended Six Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Net Interest Income $6,187 $4,420 $12,471 $8,027
 Net Gain on sale of
 GNMA, FHLMC, other
 loans and investments 6 109 531 169
 Other income 890 2,511 1,714 3,151
 Other Expense 3,834 4,376 7,834 8,360
 Net Income (Loss)
 Before Provision
 for Losses $3,249 $2,664 $6,882 $2,987
 Provision for Losses
 on Loans and Other
 Assets 5,078 363 5,853 480
 Net Income (Loss) $(1,829) $2,301 $1,029 $2,507
 Per Share
 Net Income before
 Provision for
 Losses $.89 $.73 $1.88 $.82
 Provision for
 Losses and Other
 Assets 1.39 .10 1.60 .13
 Net Income (Loss) $(.50) $.63 $.28 $.69
 Average Number of
 Common Shares
 Outstanding 3,656,297 3,656,297 3,656,297 3,656,297
 CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in Thousands)
 (UNAUDITED)
 Dec. 31 Dec. 31
 1992 1991
 ASSETS
 Cash:
 Interest bearing $ 13,852 $ 20,557
 Noninterest bearing 6,446 7,597
 Restricted cash 1,167 1,057
 Federal funds sold 3,175 7,600
 Investment securities 44,256 72,044
 Investment in joint venture 2,980 2,980
 Loans receivable, net and
 mortgage-backed certificates 612,353 638,863
 Direct finance leases, net 399 1,327
 Office properties and equipment, net 5,067 5,766
 Real estate owned, net 7,258 5,189
 Cost in excess of fair value of
 net assets acquired 41,757 44,352
 Prepaid and other assets 6,402 10,884
 Total Assets $745,112 $818,216
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities:
 Savings deposits $591,001 $605,121
 Short-term borrowings 15,827 75,911
 Advance payments by borrowers
 for taxes and insurance 1,224 811
 Accounts payable and accrued
 liabilities 4,191 4,963
 Checks outstanding on disbursement
 account 1,368 3,366
 Advances from Federal Home Loan Bank
 and other borrowings 104,500 104,500
 Total liabilities $718,111 $794,672
 Stockholders' Equity:
 Preferred stock $ -- $ --
 Common stock 37 37
 Additional paid-in capital 9,475 9,475
 Retained earnings 17,539 14,616
 Net unrealized loss on marketable
 equity securities -- (534)
 $ 27,051 $ 23,594
 Less cost of treasury stock 50 50
 Total Stockholders' Equity $ 27,001 $ 23,544
 Total Liabilities and
 Stockholders' Equity $745,112 $818,216
 -0- 1/29/93
 /CONTACT: Douglas D. Deppen, Senior Vice President and Chief Financial Officer, Charter Federal Savings Bank, 703-669-5101/
 (CHFD)


CO: Charter Federal Savings Bank ST: Virginia IN: FIN SU: ERN

SB-CM -- CH016 -- 0866 01/29/93 15:31 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1993
Words:1114
Previous Article:EPA SETTLES WITH MEADOW GOLD DAIRIES, INC., LEXINGTON, KY. FOR VIOLATIONS OF THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY...
Next Article:STATEMENT BY THOMAS E. WHEELER, PRESIDENT, CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION
Topics:


Related Articles
CHARTER FEDERAL ANNOUNCES PROFIT FOR FIRST QUARTER OF FISCAL 1992
CHARTER FEDERAL ANNOUNCES SECOND QUARTER FISCAL 1992 PROFIT
CHARTER FEDERAL ANNOUNCES RESULTS OF FISCAL YEAR ENDED JUNE 30, 1992
CHARTER FEDERAL ANNOUNCES FIRST QUARTER FISCAL 1993 PROFIT
/C O R R E C T I O N -- WOMEN'S FEDERAL SAVINGS/
CHARTER FEDERAL ANNOUNCES INCREASE IN THIRD QUARTER NET OPERATING EARNINGS OF 43 PERCENT AND GOODWILL WRITE-OFF OF $41.1 MILLION
CHARTER FEDERAL ANNOUNCES EARNINGS OF $2.2 MILLION FOR THE FOURTH QUARTER OF FISCAL 1993
CHARTER FEDERAL ANNOUNCES EARNINGS OF $2.3 MILLION FOR FIRST QUARTER OF FISCAL 1994
CHARTER FEDERAL ANNOUNCES SECOND QUARTER FISCAL 1994 PROFIT
CHARTER FEDERAL ANNOUNCES THIRD QUARTER FISCAL 1994 PROFIT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters