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CSF HOLDINGS 2ND QUARTER NET EARNINGS REACH RECORD HIGH $11.4 MILLION

 MIAMI, Aug. 3 /PRNewswire/ -- CSF Holdings, Inc. (NASDAQ-NMS: CSFC), parent company of Citizens Federal Bank, achieved the best second quarter net earnings in its history.
 CSF Holdings reported net earnings, after preferred stock dividends, of $11,406,000, or $1.12 per share, on total income of $86,094,000 for the three months ended June 30, 1993, compared to net earnings, after preferred stock dividends, of $11,268,000, or $1.16 per share, on total income of $95,576,000 for the same quarter of 1992. During the first quarter of 1993, CSF Holdings earned $10,374,000 after preferred stock dividends.
 For the six months ended June 31?993, CSF Holdings reported net earnings, after preferred stock dividends, of $21,780,000, or $2.13 per share, on total income of $170,601,000, compared to net earnings, after preferred stock dividends, of $29,134,000, or $3.07 per share, on total income of $194,579,000 for the first half of 1992.
 A comparison of 1993 and 1992 six-month earnings is distorted by an accounting change for income taxes emanating from the company's adoption of Financial Accounting Standards Board Statement No. 109 which increased the company's 1992 first quarter net earnings by $7.5 million.
 All per share earnings have been adjusted for the 50 percent common stock dividend paid on Oct. 26, 1992, and the 50 percent common stock dividend paid on Feb. 22, 1993.
 In announcing the earnings, Charles B. Stuzin, chairman and president of CSF Holdings, stated, "We had the best second quarter in our history. Two important reasons were a 12 percent decline in operating expenses and a 9 percent decline in our provision for loan losses. These gains more than offset the decline of 38 basis points in our interest rate spread.
 "The results were just about in line with our expectations as we came in slightly better than last year's comparable period and 10 percent above the first quarter of this year.
 "The high quality of our residential mortgage loan portfolio continues to be one of the company's strongest assets. Non-performing assets were only $85.7 million (1.83 percent of total assets) on June 30, 1993, compared to $88.7 million (1.95 percent) on March 31, 1993, and $89.8 million (2.02 percent) on June 30, 1992.
 "Our gain on sale of securities and other assets was $4.6 million after taxes, which represented 32 percent of our net income before preferred stock dividends. Last year, a similar gain of $4.8 million after taxes represented 35 percent of our net income before preferred stock dividends.
 "During the second quarter we sold $25 million of Citizens Federal Bank's preferred stock, and then in July we redeemed $38.7 million of previously issued higher cost preferred stock. These two transactions will reduce the company's dividend expense by more than $2 million each year from here on out.
 "Then last week we sold an additional $34.5 million of Citizens Federal Bank preferred stock. The proceeds from this issue will be utilized to redeem additional higher cost preferred during the third quarter."
 For the quarter ended June 30, 1993, CSF Holdings had a 0.99 percent return on average assets and a 20.8 percent return on stockholders' equity.
 As of June 30, 1993, CSF Holdings had a stockholders' equity (book value) of $21.40 per common share and a tangible book value of $19.47 per common share.
 The capital position of Citizens Federal Bank continues to exceed all regulatory requirements, and currently meets the regulatory definition of "well capitalized." As of June 30, 1993, tangible capital of $268 million equaled 5.8 percent vs. 1.5 percent required, core capital of $314 million equaled 6.8 percent vs. 3 percent required, and risk-based capital of $352 million equaled 15 percent vs. 8 percent required.
 Citizens Federal Bank is an interstate federal savings bank with operations currently in Florida, Illinois, Ohio, California and Virginia. As was previously announced, the sale of the Illinois division is pending regulatory approval and is expected to close during the third quarter.
 CSF Holdings is a publicly owned financial institution with its common stock (CSFC) traded on the NASDAQ National Market System.
 CSF HOLDINGS, INC. AND SUBSIDIARIES
 SECOND QUARTER 1993 EARNINGS
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 (unaudited; dollars in thousands, except per share amounts)
 Total income $ 77,330 $ 86,103 $ 154,572 $ 175,968
 Total expense 45,004 52,422 89,154 109,486
 Net Interest Income 32,326 33,681 65,418 66,482
 Provision for
 loan losses 2,000 2,200 4,000 4,900
 Net interest income
 after provision for
 loan losses 30,326 31,481 61,418 61,582
 Net gain on sales
 of assets 7,242 7,686 12,770 15,555
 Total other income 1,522 1,787 3,259 3,056
 Total other expenses 16,123 18,361 33,444 36,036
 Income before
 income taxes,
 extraordinary items
 and cumulative effect
 of change in
 accounting principle 22,967 22,593 44,003 44,157
 Provision for
 income taxes 8,413 8,145 16,150 16,119
 Income before
 extraordinary items
 and cumulative effect
 of change in
 accounting principle 14,554 14,448 27,853 28,038
 Extraordinary items,
 net of taxes (A) (223) (255) (223) (528)
 Cumulative effect of
 change in accounting
 principle (B) --- --- --- 7,474
 Net income before
 preferred
 stock dividends 14,331 14,193 27,630 34,984
 Preferred stock
 dividends of
 Citizens Federal Bank 2,925 2,925 5,850 5,850
 Net income after
 preferred
 stock dividends $ 11,406 $ 11,268 $ 21,780 $ 29,134
 Earnings per common share (C):
 Income before
 extraordinary
 items and
 cumulative effect
 of change in
 accounting
 principle $ 1.14 $ 1.19 $ 2.15 $ 2.34
 Extraordinary items,
 net of taxes (A) (0.02) (0.03) (0.02) (0.06)
 Cumulative effect of
 change in accounting
 principle (B) --- --- --- 0.79
 Net income after
 preferred
 stock dividends $ 1.12 $ 1.16 $ 2.13 $ 3.07
 Weighted average
 common shares (C) 10,215,330 9,719,550 10,234,151 9,501,167
 At June 30,
 1993 1992
 Total assets $4,660,739 $4,433,850
 Cash and investments $ 307,498 $ 341,479
 Loans receivable, net $2,679,743 $2,872,622
 Mortgage-backed securities $1,537,916 $1,071,342
 Deposits $3,711,667 $3,522,823
 Borrowings $ 544,591 $ 607,686
 Minority interest in Citizens
 Federal's Non-Cumulative
 Preferred Stock (D) $ 77,151 $ 83,421
 Stockholders' equity $ 218,196 $ 180,917
 Book value per
 common share (C) $ 21.40 $ 18.24
 Tangible book value per
 common share (C) $ 19.47 $ 15.61
 Return on average equity
 (quarterly annualized) 20.76 pct. 25.75 pct.
 Return on average assets 3.62 pct. 5.19 pct.
 (quarterly annualized) 0.99 pct. 1.01 pct.
 Yield on loans and
 mortgage-backed
 securities 7.40 pct. 8.62 pct.
 Yield on investments 3.76 pct. 4.47 pct.
 Total yield on
 interest-earning assets 7.20 pct. 8.36 pct.
 Cost of deposits 3.74 pct. 4.51 pct.
 Cost of borrowings 7.34 pct. 7.65 pct.
 Total cost of
 interest-bearing liabilities 4.20 pct. 4.98 pct.
 Total yield on loans and
 mortgage-backed securities
 less cost of deposits 3.66 pct. 4.11 pct.
 Total yield on interest-earning
 assets less total cost of
 interest-bearing liabilities
 (interest rate spread) 3.00 pct. 3.38 pct.
 Total non-performing loans $ 72,243 $ 76,018
 Real estate owned, net 13,431 13,776
 Total non-performing assets $ 85,674 $ 89,794
 Ratio of non-performing loans
 to total assets 1.55 pct. 1.71 pct.
 Ratio of non-performing assets
 to total assets 1.83 pct. 2.02 pct.
 CITIZENS FEDERAL'S CAPITAL RATIOS:
 Tangible Capital:
 Actual regulatory capital $268,137 $239,492
 Regulatory capital
 requirement 69,465 65,605
 Surplus $198,672 $173,887
 Tangible capital as a
 percentage of tangible
 assets 5.79 pct. 5.48 pct.
 Percentage required 1.50 pct. 1.50 pct.
 Core Capital:
 Actual regulatory capital $314,297 $299,472
 Regulatory capital
 requirement 139,273 131,696
 Surplus $175,024 $167,776
 Core capital as a percentage
 of adjusted tangible assets 6.77 pct. 6.82 pct.
 Percentage required 3.00 pct. 3.00 pct.
 Risk-Based Capital:
 Actual regulatory capital $351,797 $337,225
 Regulatory capital
 requirement 188,107 161,671
 Surplus $163,690 $175,554
 Risk-based capital
 as a percentage of risk-
 weighted assets 14.96 pct. 15.02 pct.
 Percentage required 8.00 pct. 7.20 pct.
 (A) -- The extraordinary losses of CSF Holdings, Inc. (the "company") of $0.2 million for the three months and six months ended June 30, 1993 (net of tax benefit) resulted from the redemption of the company's Series 1, Series 2, Series 3 and Series 12 subordinated notes totaling $6.4 million. The extraordinary losses during 1992 (net of tax benefit) resulted from the prepayment of Federal Home Loan Bank advances.
 (B) -- The company adopted Statement of Financial Accounting Standard No. 109 ("SFAS No. 109"), Accounting for Income Taxes, during the second quarter of 1992 and restated its earnings for the three months ended March 31, 1992 to reflect the effects of the adoption as of Jan. 1, 1992 in accordance with the provisions of the statement. The cumulative effect of this change through Jan. 1, 1992 increased net earnings and stockholders' equity by $7.5 million.
 (C) -- On Oct. 26, 1992 and Feb. 22, 1993 the company effected a 3-for-2 stock split in the form of a 50 percent stock dividend, to the holders of its Common Stock. All per-share data is adjusted for these stock splits.
 (D) -- On June 7, 1993 Citizens Federal issued 1.0 million shares of its Series 1993A Noncumulative Preferred Stock at a price of $25.00 per share. In addition, on June 30, 1993, the company made a $13.7 million capital contribution to Citizens Federal. The proceeds from the issuance, the capital contribution and cash on hand were used to redeem $38.7 million of Citizens Federal's Series A-E Preferred Stock on July 10, 1993. The redemption of the Series A-E Preferred Stock resulted in 1) a reduction in the minority interest in Citizens Federal's Noncumulative Preferred Stock of $31.3 million, 2) a reduction in paid-in capital of $7.4 million representing the reversal of fair value discounts recorded with the issuance of the Series A-D Preferred Stock, and 3) a reduction of paid-in capital of $0.3 million representing the call premium on the Series A-C Preferred Stock redeemed. Paid-in capital was further reduced by the issuance costs of $1.3 million on the Series 1993A preferred stock. The effect of these transactions will be to reduce Preferred Stock dividends from $11.7 million per annum to $9.5 million per annum. The financial statements have been adjusted at June 30, 1993 to reflect the effect of the redemption.
 -0- 8/3/93
 /CONTACT: Morton Trilling, executive vice president of CSF Holdings, Inc. 305-978-5454; or John K. Schulte of Schulte Ross & Aguilar, 305-856-1442, for CSF Holdings, Inc./
 (CSFCB)


CO: CSF Holdings, Inc. ST: Florida IN: FIN SU: ERN

JB-AW -- FL005 -- 8840 08/03/93 11:06 EDT
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