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CHARTER ONE FINANCIAL, INC. REPORTS 32 PERCENT INCREASE IN SECOND QUARTER EARNINGS PER SHARE

 CLEVELAND, July 21 /PRNewswire/ -- Charter One Financial, Inc. (NASDAQ-NMS: COFI), holding company for Charter One Bank, F.S.B., today reported that second quarter 1993 net income per share increased 32 percent to $1.04 from 79 cents per share in the comparable 1992 period, adjusted for the merger of First American Savings Bank. For the same period, net income increased 58 percent to $16.1 million from $10.2 million.
 Charles John Koch, president and chief executive officer, said, "Our exceptional second quarter's earnings were particularly gratifying in that essentially all earnings were core in nature, primarily attributable to a 30 percent increase in net interest income prior to loan loss reserves and a 19 percent increase in recurring fee income. For the three months ended June 30, 1993, net yield on average interest earning assets rose to 3.66 percent from 3.58 percent as of March 31, 1993."
 Koch added, "Our second quarter annualized return on average assets rose to 1.30 percent and the return on average equity was 19.10 percent. By comparison, our 1992 second quarter's ROAA was .95 percent and the ROE was 18.21 percent. The quality of our loan portfolio remains very strong. During the second quarter the Bank's ratio of non-performing assets to total assets decreased to .82 percent from 1.04 percent as of December 31, 1992, and 1.22 percent as of June 30, 1992. As of June 30, 1993, the allowance for loan losses to nonperforming loans was 135 percent and the allowance for loan losses to average loans stood at 1.08 percent. Net loan chargeoffs amounted to only $175,000 in the 1993 second quarter and a low total of $314,000 for the year to date."
 For the six months ended June 30, 1993, net income increased 87 percent to $35.9 million or $2.36 per share from $19.2 million or $1.48 per share last year. Net income for 1993 included a $7 million benefit resulting from the adoption of Financial Accounting Standards (FAS) 109. Without the benefit of FAS 109, earnings per share increased 28.4 percent to $1.90 for the first six months of 1993 from $1.48 for the same period in 1992.
 As of June 30, 1993, tangible shareholders' equity to total assets increased to 6.79 percent from 5.38 percent as of June 30, 1992, while total assets increased 17.4 percent to $5 billion from $4.3 billion for the comparable period.
 Charter One Financial, Inc.'s subsidiary, Charter One Bank, F.S.B., is Ohio's largest thrift institution, operating 102 offices in a 14 county area in Ohio, serving the Greater Cleveland, Akron, Canton, Toledo, Youngstown and Portsmouth markets.
 Charter One Financial, Inc. and Subsidiaries
 Consolidated Statements of Income
 (dollars in thousands, except per share data)
 (unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992(A) 1993 1992(A)
 Interest Income:
 Loans $65,747 $60,092 $130,690 $122,488
 Mortgage-backed
 securities 20,565 23,192 41,063 46,841
 Investment securities 2,618 3,260 5,174 6,851
 Short-term investments
 and other 1,537 1,301 2,888 2,958
 Total Interest Income 90,467 87,845 179,815 179,138
 Interest Expense:
 Deposits 42,068 49,482 85,306 103,804
 Borrowings 4,684 4,652 9,379 9,416
 Total Interest Expense 46,752 54,134 94,685 113,220
 Net Interest Income 43,715 33,711 85,130 65,918
 Provision For Loan
 Losses 1,500 1,375 2,687 3,091
 Net Interest Income
 After Provision For
 Loan Losses 42,215 32,336 82,443 62,827
 Other Income:
 Loan servicing fees 1,617 1,510 2,842 3,384
 Other service fees
 and charges 3,799 3,036 6,761 5,750
 Gain (loss) from sale of:
 Loans and mortgage-backed
 securities 603 335 2,202 811
 Real estate 42 4 97 85
 Other 244 77 331 280
 Total Other Income 6,305 4,962 12,233 10,310
 Other Expenses:
 Salaries and employee
 benefits 10,327 8,394 21,084 17,894
 Severance and
 termination costs 0 0 3,300 0
 Net occupancy and
 equipment 3,372 2,712 6,562 5,492
 Federal deposit insurance
 premiums 1,653 2,127 3,241 4,253
 Data processing 1,232 992 2,483 2,050
 Advertising 955 789 1,727 1,466
 State franchise tax 904 697 1,809 1,442
 Other administrative
 expenses 5,729 5,579 10,462 10,483
 Total Other Expenses 24,172 21,290 50,668 43,080
 Income Before Federal
 Income Taxes and
 Cumulative Effect of
 Change in Accounting
 Principle 24,348 16,008 44,008 30,057
 Federal Income Taxes 8,248 5,813 15,120 10,854
 Income Before Cumulative
 Effect of Change in
 Accounting Principle 16,100 10,195 28,888 19,203
 Cumulative Effect of
 Change in Accounting
 Principle for Income
 Taxes 0 0 7,020 0
 Net Income 16,100 10,195 35,908 19,203
 Earnings Per Common and
 Common Equivalent Share:
 Before Cumulative Effect
 of Change in Accounting
 Principle $ 1.04 $ 0.79 $ 1.90 $ 1.48
 Net Income $ 1.04 $ 0.79 $ 2.36 $ 1.48
 Average Common and Common
 Equivalent Shares
 Outstanding 15,453,472 12,986,227 15,217,070 13,018,983
 Return on average
 assets before
 cumulative effect
 of change in accounting
 principle 1.30 pct. .95 pct. 1.18 pct. .90 pct.
 Return on average
 equity before
 cumulative effect
 of change in accounting
 principle 19.10 pct. 18.21 pct. 17.95 pct. 17.41 pct.
 (A) Restated for the pooling of interest merger with First American Bancorp.
 Consolidated Statements of Financial Condition
 (In thousands)
 (unaudited)
 June 30, December 31,
 1993 1992
 Assets:
 Cash and cash equivalents $213,280 $219,600
 Other interest bearing
 deposits with banks and
 other institutions 200 200
 Investment securities 179,864 134,703
 Mortgage-backed securities 1,295,185 1,197,864
 Loans, net 3,166,309 2,573,721
 Accrued interest receivable 30,101 26,240
 Federal Home Loan Bank stock 36,442 29,930
 Premises and equipment - at
 cost less accumulated
 depreciation 52,901 48,477
 Real estate owned:
 Acquired in settlement of
 loans 16,530 16,941
 Other assets 25,098 14,174
 Total Assets 5,015,910 4,261,850
 Liabilities And
 Shareholders' Equity:
 Deposits:
 Checking and NOW accounts $375,218 $322,978
 Passbooks and money market
 accounts 1,302,413 1,066,714
 Certificates 2,523,027 2,253,735
 Total deposits 4,200,658 3,643,427
 Advance payments by
 borrowers for taxes and
 insurance 28,947 21,558
 Accrued interest payable 6,879 10,777
 Accrued expenses and
 other liabilities 31,836 28,563
 Long-term debt and other
 borrowings 405,943 304,915
 Commitments --- ---
 Total Liabilities 4,674,263 4,009,240
 Shareholders' Equity:
 Preferred stock, $0.01 par
 value per share;
 10,000,000 shares authorized;
 none issued
 Common stock, $0.01 par
 value per share;
 30,000,000 shares authorized;
 14,983,734a?nd 12,609,564 issued
 and outstanding at June 30, 1993
 and December 31, 1992,
 respectively 150 126
 Additional paid-in capital 126,533 70,325
 Retained earnings -
 substantially restricted 215,293 183,561
 Borrowings of Employee
 Stock Ownership Plan (329) (1,402)
 Total Shareholders' Equity 341,647 252,610
 Total Liabilities And
 Shareholders' Equity 5,015,910 4,261,850
 Other Financial Data
 Comparison of non-performing assets
 (dollars in thousands)
 6/30/93 12/31/92 6/30/92(A)
 Non-performing loans $ 24,600 $ 27,208 $ 35,094
 Repossessed assets 16,530 16,941 17,102
 Total non-performing assets $ 41,130 $ 44,149 $ 52,196
 Total non-performing loans
 to total loans .78 pct. 1.08 pct. 1.36 pct.
 Non-performing assets to
 total assets .82 pct. 1.04 pct. 1.22 pct.
 Allowance for loan losses to
 non-performing loans 134.88 pct. 105.80 pct. 76.48 pct.
 Allowance for loan losses to
 loans before allowance 1.04 pct. 1.13 pct. 1.03 pct.
 Movement of Allowance for Loan Losses (A)
 (in thousands)
 Mortgage Consumer Business Total
 Balance at 3/31/93 $ 26,889 $ 1,278 $ 3,688 $ 31,855
 Provision 1,063 42 395 1,500
 Charge-off (149) (41) 0 (190)
 Recoveries 10 5 0 15
 Balance at 6/30/93 $ 27,813 $ 1,284 $ 4,083 $ 33,180
 Balance at 3/31/92 $ 21,247 $ 1,091 $ 3,026 $ 25,364
 Provision 1,035 95 245 1,375
 Charge-off (86) (209) (235) (530)
 Recoveries 508 122 0 630
 Balance at 6/30/92 $ 22,704 $ 1,099 $ 3,036 $ 26,839
 (A) The 1992 amounts are restated for the First American Bancorp pooling of interest merger.
 -0- 7/21/93
 /CONTACT: Charles John Koch, Leonard A. Krysinski or James E. Pietrangelo of Charter One Financial, Inc., 216-566-5300; or William L. Dupuy of Edward Howard & Co., 216-781-2400, for Charter One Financial, Inc./
 (COFI)


CO: Charter One Financial ST: Ohio IN: FIN SU: ERN

KL -- CL023 -- 4035 07/21/93 14:13 EDT
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