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CHARTER ONE FINANCIAL, INC. REPORTS 74 PERCENT INCREASE IN NET INCOME FOR 1991 THIRD QUARTER

               CHARTER ONE FINANCIAL, INC. REPORTS
     74 PERCENT INCREASE IN NET INCOME FOR 1991 THIRD QUARTER
    CLEVELAND, Nov. 6 /PRNewswire/ -- Charter One Financial, Inc. (NASDAQ/NMS:COFI), holding company for The First Federal Savings Bank, today reported that net income for the third quarter of 1991 increased 74 percent to $9.5 million, resulting in record earnings of $1.31 per share compared to $5.4 million or 77 cents per share last year.
    Charles John Koch, President and Chief Executive Officer, said, "An important and accurate indication of COFI's earnings would be to view net income, after eliminating the provision for loan losses and the after-tax gains on sale of securities.  On that basis, earnings per share increased 15 percent to 91 cents per share from 79 cents per share last year.  The increase is attributable to an increase in net interest income, which resulted from an increase in net yield on interest-earning assets to 2.88 percent from 2.67 percent last year."
    For the nine months ended Sept. 30, 1991, net income increased 75 percent compared to the 1990 nine month period income, prior to a cumulative charge applied to last year's period.  On that basis, net income for the 1991 period was $24.4 million or $3.39 per share, compared with net income before the charge of $13.9 million or $1.96 per share for the comparable last year period.  In the 1990 nine month period, Charter One reported a net loss of $1.99 per share, which resulted from a change in accounting principle to an accelerated method of amortizing goodwill.
    As previously announced during the third quarter, Charter One, through a Purchase and Assumption Agreement with the Resolution Trust Corporation (RTC), acquired $38.7 million in savings deposits from Civic Federal Savings Bank of Portsmouth, Ohio and $762.5 million in deposits from First Federal Savings of Toledo.  In addition to the deposits assumed, Charter One acquired certain loan assets.  Koch said, "After performing a detailed analysis of the loans acquired in both transactions, we have determined that neither acquisition will result in goodwill."
    Koch added, "Although there had been a previous indication that, due to the recent acquisitions, Charter One was considering the issuance of additional stock, it has decided there is no longer need to do so based on current capital ratios."
    Koch said, "The quality of the Bank's loan portfolio remains very favorable, considering the state of the national economy.  Our nonperforming assets to total assets ratio of 1.17 percent net of the nonperforming loans acquired in the Toledo acquisition that we will return to the RTC, is particularly strong when compared with the national average of 4.12 percent for all publicly-traded thrifts as of June 30, 1991.  This ratio remains consistent with management's expectations relating to nonperforming assets."
    Koch added, "As a result of its normal quarterly loan loss provision, and a portion of the Toledo transaction purchase price allocated to loan losses, the Bank's total reserves now stand at $20.9 million, or approximately 1 percent of average loans."
    Koch concluded, "We are particularly pleased with our continued strong third quarter core earnings, which indicate an annualized return on average assets of .86 percent and an annualized return on average equity of 14.91 percent."
    Charter One Financial, Inc.'s subsidiary, The First Federal Savings Bank, operates 84 offices in an 11 county area in Ohio, serving the Greater Cleveland, Akron, Youngstown and Portsmouth markets and in Toledo, where the Bank operates under the name People's Savings.
                    CHARTER ONE FINANCIAL, INC.
                 (THE FIRST FEDERAL SAVINGS BANK)
                       Operating Highlights
              (In thousands except per share amounts)
                             Three Months Ended  Nine Months Ended
                              9/30/91   9/30/90  9/30/91    9/30/90
    Interest income           $70,384   $74,885 $214,058   $187,407
    Interest expense           49,125    54,976  151,880    137,925
    Net interest income        21,259    19,909   62,178     49,482
    Provision for
      loan losses               1,536       909    4,425      7,269
    Net interest income
      after provision for
      loan losses              19,723    19,000   57,753     42,213
    Gain from sale of
      investments, loans
      and mortgage-backed
      securities (A)            6,661     1,090   14,474     13,370
    Other income                3,445     3,257    9,212      7,970
    Other expenses             15,128    14,968   43,606     39,737
    Income before federal
      income taxes and
      cumulative effect of
      accounting change        14,701     8,379   37,833     23,816
    Federal income taxes        5,238     2,949   13,418      9,870
    Income before cumulative
      effect of accounting
      change                    9,463     5,430   24,415     13,946
    Cumulative effect of
      change in method of
      accounting for amortization
      of goodwill (B)               0         0        0    (28,089)
    Net income (loss)          $9,463    $5,430  $24,415   $(14,143)
   Earnings per common and
      common stock equivalent:
    Income before cumulative
      effect of accounting
      change                    $1.31     $0.77     $3.39     $1.96
    Cumulative effect of
      accounting change             0         0         0    $(3.95)
   Net income (loss)            $1.31     $0.77     $3.39    $(1.99)
   Weighted average number of
      common and common
      equivalent shares
      outstanding           7,249,849 7,086,573 7,199,205 7,119,821
                   Notes to Operating Highlights
    (A) Reflects a pre-tax gain of $5.9 million and $11.5 million on the sale of Federal Home Loan Mortgage Corporation ("FHLMC") common stock during the three months ended Sept. 30, 1991 and the nine months ended Sept. 30, 1991, respectively.  This compares to pre-tax gains on sale of FHLMC common stock for the three months ended Sept. 30, 1990 and the nine months ended Sept. 30, 1990 of $1.0 million and $13.3 million, respectively.
    (B) Charter One changed the method it used to amortize the goodwill generated by an acquisition the Bank made in 1982.  Based upon a consensus issued by the Financial Accounting Standards Board ("FASB") Emerging Issues Task Force (EITF 89-19), the Company concluded that the accelerated method prescribed in FASB #72 is a preferable method of accounting for this intangible.  The result of this change in method, recorded on a retroactive basis, was a $28.1 million charge to earnings in the first quarter of 1990.
                    CHARTER ONE FINANCIAL, INC.
                  (THE FIRST FEDERAL SAVINGS BANK)
                      Balance Sheet Highlights
                           (In thousands)
                                   9/30/91     9/30/90     12/31/90
    Total assets                $3,797,803  $3,071,834   $3,069,179
    Total loans and mortgage-
      backed securities          3,209,587   2,576,506    2,627,172
    Deposits                     3,292,252   2,492,188    2,505,386
    Shareholders' equity           179,036     153,863      157,044
    (A) On Sept. 27, 1991, First Federal acquired approximately $767.8 million of assets and assumed a like amount of liabilities of the former First Federal Savings and Loan Association of Toledo, Ohio from the Resolution Trust Corporation.
    -0-                 11/6/91
    /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 Inc. ST:  Ohio IN:  FIN SU:  ERN CG -- CL016 -- 1826 11/06/91 15:17 EST
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Date:Nov 6, 1991
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