Printer Friendly

D&N FINANCIAL REPORTS PROFITABLE 4TH QUARTER AND YEAR

 D&N FINANCIAL REPORTS PROFITABLE 4TH QUARTER AND YEAR
 HANCOCK, Mich., Jan. 30 /PRNewswire/ -- D&N Financial Corporation


(NASDAQ-NMS: DNFC) today reported 1991 net income of $3.6 million, or $0.96 per share, compared to a loss of $15.8 million, or $4.24 per share, for 1990. For the fourth quarter of 1991, D&N recorded earnings of $0.8 million, or $0.22 per share, compared to a loss of $16.6 million, or $4.45 per share, for the fourth quarter of 1990.
 The capital ratios of D&N Bank, fsb, the company's sole subsidiary, continue to exceed the federal minimum regulatory requirements. At Dec. 31, 1991, the bank had ratios of tangible capital of 3.36 percent, core capital of 4.86 percent and risk-based capital of 9.66 percent, compared to federal minimum requirements at year-end of 1.50 percent, 3.00 percent and 7.20 percent, respectively.
 Stockholders' equity improved as a result of the 1991 net income to $93.0 million, up from $89.4 million at the end of 1990. Book value per share increased to $25.08. Tangible book value per share (book value calculated without goodwill) was $15.74 at year-end.
 Net interest income for the year, at $30.0 million, was down compared to $40.9 million in 1990. For the fourth quarter of 1991, net interest income was $5.9 million, compared to $8.8 million in the fourth quarter of 1990. According to Kenneth D. Seaton, chairman, the reduced net interest income is the result of shrinkage of the loan and mortgage derivative products portfolios as well as the repricing of interest rate swaps. "Although the current low interest rate environment is helping spreads on the retail side of the business, it is having a negative effect on certain interest rate swaps in our portfolio," said Seaton. "These swap agreements, which were executed in the 1980s to provide hedge protection against rising interest rates, will expire beginning in 1993."
 Core income (defined as net income, excluding net gains/losses on sales of assets other than mortgage banking inventory) for 1991 showed a loss of $4.3 million, or $1.16 per share, compared with a loss of $3.3 million, or $0.88 per share for 1990. For the fourth quarter, core income showed a loss of $0.6 million, compared to a loss of $4.0 million for the same period of 1990. The core losses for 1990 and 1991 are principally the result of increases in the bank's provision for general valuation allowances.
 General and administrative expenses declined to $29.7 million for the year, compared to $35.0 million in 1990. For the fourth quarter of 1991, general and administrative expenses totaled $7.1 million, down from $9.0 million in the year-ago quarter. Expenses for compensation and benefits declined 15 percent in 1991, to $17.2 million from $20.3 million in 1990. "Expense control continues to be a priority and an important part of our strategy moving forward," said Seaton.
 The bank's portfolio of mortgage derivative products stood at $70.0 million at Dec. 31, 1991, down 59 percent from the $170.9 million balance in the portfolio at Dec. 31, 1990.
 The bank recorded charges for possible credit losses in 1991 totaling $15.5 million, compared to $15.8 million in the prior year. At year-end 1991, general valuation allowances totaled $19.2 million, representing 29 percent of nonperforming assets. Nonperforming assets declined, totaling $67.2 million at Dec. 31, 1991, compared to $71.4 million at Dec. 31, 1990.
 D&N's loan portfolio is primarily residential, with 64 percent of total loans in one-to-four-family first mortgages. Consumer loans, including home equity credit represent 14 percent of the portfolio, and commercial real estate loans represent 22 percent.
 After year-end, D&N Bank sold certain assets and transferred the leases for six mortgage origination offices of its mortgage banking subsidiary, D&N Mortgage Corp., to Inland Mortgage Corp. of Indianapolis. According to D&N Bank President George Butvilas, the sale is "consistent with the bank's strategic goals to reduce operating expenses and sharpen D&N's focus on community banking in Michigan."
 The bank also announced that it will be opening a new full-service banking office in L'Anse, Mich. in the coming quarter. "As the county seat of Baraga County, L'Anse is an important component in our community banking strategy for the Upper Peninsula," said Butvilas. "This new office provides us with the opportunity to serve our existing Baraga County customers as well as to expand our business there."
 Mortgage Loan production was $67.9 million during the quarter, compared to $72.9 million for the similar period in 1990. Consumer loan volume was $15.2 million, compared to $14.2 million for the same period in 1990. At Dec. 31, 1991, D&N had total assets of $1.52 billion, net loans and mortgage-backed certificates of $1.11 billion and deposits of $980 million.
 D&N Financial Corp., through its subsidiary D&N Bank, fsb, has 39 financial services offices throughout Michigan's Upper Peninsula and mid-Michigan. Based on asset size, D&N is the fourth-largest savings institution in Michigan. D&N Financial Corp.'s stock is traded over the counter and is quoted on the NASDAQ National Market System under the symbol DNFC.
 D&N FINANCIAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 For the quarter ended: 12/31/91 9/30/91 12/31/90(2)
 Net interest income $5,949 $6,691 $8,822
 Net noninterest expense 3,350 5,759 33,404
 Net income (loss) 828 582 (16,570)
 Net income (loss) per share 0.22 0.16 (4.45)
 Operations:
 New loans originated 83,166 86,718 87,049
 Increase (decrease) in
 deposits (15,644) (19,203) (25,311)
 Increase (decrease) in
 borrowings (27,355) (92,112) (21,660)
 Earning assets yield (pct) 9.24 9.40 9.82
 Cost of funds (pct) 7.69 7.88 8.09
 Net interest margin(1) (pct) 1.75 1.83 2.04
 At quarter end:
 Total assets 1,518,930 1,556,592 1,868,295
 Cash, interest-bearing
 deposits and investment
 securities 213,229 168,620 102,330
 Net loans receivable 813,305 867,842 1,097,339
 Mortgage-backed
 certificates 295,246 310,366 356,663
 Mortgage derivative
 products 69,994 72,722 170,856
 Deposits 979,583 995,227 1,104,811
 Borrowings 373,851 401,206 598,162
 Stockholders' equity(3) 92,997 92,169 89,424
 Stockholders' equity as
 a percent of total
 assets (pct) 6.12 5.92 4.79
 Per share data:
 Closing price 5 1/8 2 3/4 2 3/4
 Price range 2 3/4-5 1/2 2 3/4-4 1/4 2 3/4-5 1/2
 Stockholders' equity -
 GAAP 25.08 24.85 24.11
 Stockholders' equity -
 tangible 15.74 15.48 14.61
 Loans serviced for others 696,522 1,258,317 1,342,025
 Nonperforming assets 67,156 67,064 71,404
 Loan loss reserves:
 Amount 19,193 20,340 18,315
 As a percent of
 nonperforming assets (pct) 28.58 30.33 25.65
 As a percent of total
 loans (pct) 2.30 2.29 1.64
 Regulatory capital ratios:
 Tangible capital (pct) 3.36 3.26 2.51
 Core capital (pct) 4.86 4.76 4.01
 Risk-based capital (pct) 9.66 9.22 7.41
 (1) Net interest income divided by average earning assets.
 (2) Certain amounts have been reclassified to conform with the current period presentation.
 (3) The number of common shares outstanding was 3,708,418 in all periods.
 -0- 1/30/92
 /CONTACT: Joann Cadwell of D&N Financial Corporation, 906-487-6225/
 (DNFC) CO: D&N Financial Corporation ST: Michigan IN: FIN SU: ERN


DH-ML -- DE003 -- 5127 01/30/92 09:54 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 30, 1992
Words:1312
Previous Article:U.K. FRANKLIN FIELD APPRAISAL WELL SUCCESSFULLY TESTED
Next Article:CHARTER ONE FINANCIAL, INC. REPORTS 129 PERCENT INCREASE IN NET INCOME FOR 1991 FOURTH QUARTER
Topics:


Related Articles
CENTRAL FIDELITY REPORTS RECORD FIRST QUARTER EARNINGS
AULT REPORTS SECOND QUARTER RESULTS
NORTHSTAR COMPUTER FORMS REPORTS RECORD FIRST QUARTER SALES AND PROFITS
NORFOLK SOUTHERN REPORTS RECORD FIRST-QUARTER EARNINGS
FIRST AND FINAL ADD -- MN027 -- CAPITOL TRANSAMERICA EARNINGS
Nastech Announces Fourth Quarter And Year End Financial Results
Norfolk Southern Posts Best Ever Quarterly Operating Revenues, Record Income From Operations For Nine Months
Norfolk Southern Posts Record Fourth-Quarter Financial Results for 1997
Norfolk Southern Sets Revenue Record, Reports Gain on North American Sale
Norfolk Southern Posts Record Income for First Nine Months.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters