Printer Friendly

FINANCIAL SECURITY CORP. SECOND QUARTER EARNINGS: $486,000

 CHICAGO, July 20 /PRNewswire/ -- Financial Security Corp., (NASDAQ: FNSC), the holding company for Security Federal Savings and Loan Association, today announced earnings for the second quarter ending June 30, 1993. Net income was $486,000 for the three months ending June 30, 1993, as compared to $434,000 for the comparable period in 1992, an increase of $51,495 or 11.9 percent. For the six month period ending June 30, 1993 net income before cumulative effect of a change in accounting principle was $1.0 million as compared to $742,000, an increase of $275,000 or 37.1 percent. The cumulative effect of the change in accounting principle in 1993 increased net income by an additional $1,508,000.
 Earnings per share before cumulative effect of a change in accounting principle amounted to $0.29 for the second quarter of 1993 and $0.60 for the six months ended June 30, 1993. For the six months ended June 30, 1993 earnings per share were $1.49, after the cumulative effect of the change in accounting principle. Earnings per share have been determined by dividing net income for the periods by the weighted average number of shares outstanding. Earnings per share information for the prior year period is not meaningful as the company did not complete its conversion from mutual to stock form of ownership until Dec. 29, 1992.
 Comparison Of Operating Results:
 For The Quarter And Six Months Ended June 30, 1993 And 1992:
 For the quarter ended June 30, 1993, total interest income amounted to $4.7 million, a decrease of $522,000 or 10.0 percent as compared to $5.2 million for the same period in 1992. For the six months ended June 30, 1993 total interest income amounted to $9.4 million, a decrease of $898,000, or 8.8 percent as compared to $10.3 million for the same period in 1992. The decrease in interest income is the direct result of lower interest rates on originations and refinancing of existing loans.
 Total interest expense decreased $622,000 or 22.2 percent to $2.2 million for the quarter ended June 30, 1993 as compared to $2.8 million for the same period in 1992. For the six months ended June 30, 1993 interest expense decreased $1.2 million or 21.7 percent to $4.4 million as compared to $5.6 million for the comparable period in 1992.
 The company's loan loss provision for the quarter ended June 30, 1993 amounted to $300,000 as compared to $450,000 in 1992, a decrease of $150,000 or 33 percent. This reflects management's determination to continue to provide adequate provisions until a significant decrease in non-performing assets is effected. As of June 30, 1993, non-performing assets totaled $16.7 million as compared to $18.0 million at March 30, 1993 and $16.6 million at Dec. 31, 1992. As of June 30, 1993, the association's valuation allowances amounted to 42.5 percent of non- performing assets as compared to 39.2 percent as of Dec. 31, 1992 and 26.3 percent of non-performing assets as compared to 23.1 percent as of Dec. 31, 1992.
 Non-interest income for the second quarter of 1993 decreased $150,000 or 86.2 percent to $24,000 as compared to $174,000 in 1992. Gains on sale investments decreased $143,000 and a decrease in insurance commissions of $12,000 were partially offset by a decrease in losses on real estate sold of $48,000. For the six months ended June 30, 1993 non-interest income amounted to $200,000 as compared to $267,000 a decrease of $67,000 or 25.1 percent. The primary reasons for the decrease were the decrease in gains on sale of investments of $121,000, loss on sale of foreclosed real estate of $33,000 and a decrease in insurance commissions of $10,000 which were partially offset by a non- recurring settlement of litigation which amounted to $132,000.
 Non-interest expense for the quarter ended June 30, 1993 amounted to $1.5 million as compared to $1.2 million in the comparable quarter in 1992, an increase of $219,000 or 17.6 percent. This increase is due primarily to an increase in compensation and benefits of $220,000 reflecting the additional costs of the E.S.O.P and A.R.P. expense. Foreclosed real estate expenses increased $124,000 which was offset by a decrease in other non-interest expenses. For the six months ended June 30, 1993 non-interest expense amounted to $2.9 million as compared to $2.5 million for the comparable period in 1992, an increase of $444,000 or 17.9 percent.
 Income tax expenses for the quarter and six month periods ended June 30, 1993 amounted to $265,000 and $509,000 respectively, as compared to $436,000 and $829,000 in 1992, or decreases of $171,000 (39.2 percent) and $320,000 (38.6 percent). The decreases are primarily the result of a change in the method of calculating income tax expense due to the adoption of SFAS. No. 109 as of Jan. 1, 1993.
 Comments On Statement Of Condition:
 During the six month period ended June 30, 1993, total assets increased $4.7 million to $243.2 million from $238.5 or 2.0 percent. Loans receivable decreased $517,000 million to $162.1 million from $162.6 million while investments in mortgage backed securities increased $6.2 million to $23.4 million from $17.2 million or 35.9 percent. Investments in adjustable rate mortgage backed mutual funds increased $9.9 million or 330 percent to $12.9 million from $3.0 million. Investment securities decreased $10.1 million or 28.6 percent to $25.2 million from $35.3.
 Non-performing assets totaled $16.7 million at June 30, 1993 as compared to $18.0 million as of March 31, 1993 and $16.6 million as of Dec. 31, 1992. This represents a decrease of $1.3 million or 7.2 percent from March 31, 1993 and an increase of .6 percent from Dec. 31, 1992. At June 30, 1993, March 31, 1993 and Dec. 31, 1992, non performing assets as a percentage of total assets were 6.9 percent, 7.6 percent and 7.0 percent respectively and loan loss allowances as a percentage of non-performing loans were 42.5 percent, 35.7 percent and 39.2 percent respectively.
 Total deposits increased $3.5 million or 1.8 percent to $200.8 million as of June 30, 1993 as compared to $197.3 million as of Dec. 31, 1993.
 Stockholders equity totaled $36.3 million or 14.9 percent of assets as of June 30, 1993, an increase of $1.5 million or 4.3 percent from $34.8 at Dec. 31, 1992. The increase resulted from net income of $2.5 million plus payments of $.2 million from employee stock plans which are partially offset by Treasury Stock purchases. On May 25, 1993 the purchase of 85,962 shares of Financial Security Corp. common stock at an average price of $13.85 per share was completed, totaling $1.2 million.
 Security Federal Savings and Loan Association is a federally chartered stock association. The association is a community-oriented thrift offering traditional deposit and mortgage loan products. It operates from a single office located at 1209 N. Milwaukee Ave., Chicago.
 Financial Security Corp. is publicly traded on the NASDAQ under the symbol of FNSC.
 FINANCIAL SECURITY CORP.
 Selected Financial Information
 (Dollars In Thousands, Except Stockholders' Equity Per Share Data)
 (unaudited)
 Periods ending June 30, Dec. 31,
 1993 1992
 Financial Condition Highlights:
 Total assets $243,150 $238,458
 Loans receivable-net 162,111 162,627
 Mortgage backed securities 23,368 17,200
 Investment securities 38,062 38,327
 Deposits 200,819 197,323
 Borrowed funds 1,075 1,160
 Stockholders' equity 36,269 34,791
 Stockholders' equity per share $ 22.21 $ 20.24
 Selected Asset Quality Ratios
 (in percentages):
 Non-performing loans to
 total loans 6.1 5.7
 Non-performing assets to
 total assets 6.9 6.9
 Allowance for losses to
 non-performing loans 42.5 39.2
 Allowances for losses to
 non-performing assets 26.3 23.1
 FINANCIAL SECURITY CORP.
 Consolidated Statement Of Income
 (Dollars In Thousands, Except Earnings Per Share Data)
 Periods Ended Three Months Six Months
 June 30, 1993 1992 1993 1992
 Income:
 Interest income $4,675 $5,197 $9,370 $10,268
 Interest expense 2,183 2,805 4,373 5,587
 Net interest income before
 provision for loan losses 2,492 2,392 4,997 4,681
 Provision for loan losses 300 450 750 900
 Noninterest income 24 174 200 267
 Noninterest expense 1,465 1,246 2,921 2,477
 Income before income
 tax expense 751 870 1,526 1,571
 Income tax expense 265 436 509 829
 Net income before cumulative
 effect of a change in
 accounting principle 486 434 1,017 742
 Cumulative effect to Jan. 1,
 1993 of change in the method
 of calculating income tax
 expense --- --- 1,508 ---
 Net income $ 486 $ 434 $2,525 $ 742
 Net earnings per share before
 cumulative effect of a change
 in accounting principle $ 0.29 N/A 0.60 N/A
 Cumulative effect to Jan. 1,
 1993 of change in method of
 calculating income tax
 expense --- N/A 0.89 N/A
 Net earnings per share $ 0.29 $ N/A $ 1.49 $ N/A
 Avg. shares outstng. 1,680,058 N/A 1,699,546 N/A
 -0- 7/20/93
 /CONTACT: William C. Preissner of Financial Security Corp., 312-227-7020, or fax, 312-227-6689/
 (FNSC)


CO: Financial Security Corp. ST: Illinois IN: FIN SU: ERN

MP -- NY077 -- 6871 07/20/93 13:24 EDT
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:Jul 20, 1993
Words:1625
Previous Article:BANKRUPTCY COURT APPROVES HILLS DEPARTMENT STORES' DISCLOSURE STATEMENT
Next Article:TRANSCO DECLARES COMMON DIVIDEND
Topics:


Related Articles
VACU-DRY ANNOUNCES RESULTS
GREAT WESTERN REPORTS SECOND QUARTER EARNINGS
FIRST WESTERN FINANCIAL REPORTS SECOND QUARTER EARNINGS RESULTS
FLAGSHIP FINANCIAL REPORTS SECOND QUARTER RESULTS
FINANCIAL SECURITY CORPORATION REPORTS RESULTS
FIRSTFED REPORTS EARNINGS FOR THE SECOND QUARTER OF 1995
FIRSTFED REPORTS RESULTS FOR THE SECOND QUARTER OF 1996
GreenPoint Financial Reports Record Second Quarter Core Earnings
T R Financial Corp. Announces Core Earnings Increase of 28.6% in Second Quarter
LSB Financial Corp. Announces Second Quarter Results and Payment of Cash Dividend

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