Printer Friendly


 CHICAGO, Oct. 18 /PRNewswire/ -- First Colonial Bankshares Corp. (NASDAQ: FCOLA) today reported net income of $2.28 million and earnings per share of $.18 for the third quarter, which ended Sept. 30. In the third quarter of 1992 net income was $4.71 million and earnings per share were $.42. For the first nine months of 1993, net income was $10.84 million, compared with $12.31 million in 1992; earnings per share was $.92 versus $1.14 last year. The issuance of $20.1 million of convertible preference stock in April of 1992 had the effect of diluting earnings per share. If the stock had not been issued, earnings per share would have been approximately $.05 and $.03 higher than reported in the first nine months of 1993 and 1992, respectively.
 C. Paul Johnson, chairman and chief executive officer, stated that the decline in quarterly earnings from the prior year resulted from weak performance in several areas of the company, some of which are nonrecurring.
 Net interest income (fully taxable equivalent basis) was down $660,000 to $16.66 million compared with $17.32 million in the third quarter of last year. In the current quarter charges were taken against net interest income to reflect increased amortization of premium resulting from the acceleration of prepayment in the mortgage-backed securities portfolio. These charges were also reflected in the quarterly net interest margin which decline to 4.68 percent, compared to 4.90 percent in the third quarter of 1992. Average earning assets in the quarter were $1.44 billion, compared to $1.41 billion a year ago. On a year-to-date basis, net interest income increased $1.91 million, or 3.82 percent, to $51.82 million from $49.91 million in 1992.
 The provision for loan losses increased $507,000 to $1.35 million, up from $845,000 in the third quarter of 1992. Johnson explained that the higher provision for loan losses was taken in the third quarter to maintain the allowance for loan losses at an appropriate level after charge-offs taken in the quarter. Net charge-offs were $1.79 million and $620,000 in the third quarter of 1993 and 1992, respectively. The significant increase in net charge-offs was attributable to two loans. Discussing the net charge-offs and loan loss provision, Johnson said, "Net charge-offs for this quarter are at a level higher than we anticipated and find acceptable. However, we acknowledge and deal with problems as they arise. The quality of our loan portfolio remains high, and our financial position is strong." He noted that net charge- offs as a percentage of average total loans for the year to date were .41 percent, compared with .29 percent for the first nine months of 1992 and .36 percent for the full year 1992.
 Noninterest income for the quarter was $5.40 million, a decrease of $540,000 compared with $5.94 million in the third quarter a year ago; the 1992 quarter included securities gains of $688,000 while there were no securities gains in 1993. Revenue from investment services was $602,000, a decrease of $228,000 from the third quarter of 1992. Income from service charges and mortgage banking during the quarter were each slightly higher than in the prior year. On a year to date basis, noninterest income was $17.08 million compared to $17.77 million in the prior year. The decline in securities gains of 1.33 million from 1992 to 1993 was offset by a gain of $1.30 million recognized on the termination of an interest rate swap in the second quarter of 1993.
 Noninterest expense for the quarter was $16.41 million, an increase of $1.9 million compared with $14.48 million in the prior year. Most of the increase in noninterest expense was attributed to salaries and employee benefits which were up $830,000, or 12.88 percent, from the third quarter of 1992. Contributing to the increase in noninterest expense is the opening of two new bank locations in Berwyn, Ill., and the Austin-Garfield neighborhood of Chicago. In addition, amortization of mortgage servicing rights increased $393,000 to $639,000 compared to $246,000 in the third quarter of 1992. This increase is a result of continued acceleration of mortgage loan prepayments resulting from the sustained trend in mortgage refinancings. On a year to date basis, noninterest expense increased $3.59 million to $47.25 million, compared to $43.66 million in 1992. The major component of the increase was $2.08 million of salaries and benefits expense.
 First Colonial Bankshares Corp. owns 16 banks with 25 locations throughout Chicago and surrounding suburbs. A pending acquisition of two additional banks with 5 locations in the northern suburbs of Chicago is expected to be consummated in late 1993 or early 1994. First Colonial is also the parent of First Colonial Trust Company, First Colonial Investment Services, Inc., First Colonial Mortgage Corp., and Mid-States Financial Corp., a commercial leasing firm.
 -0- 10/18/93
 /CONTACT: C. Paul Johnson or Barbara A. Kilian of First Colonial Bankshares Corp., 312-419-9891/

CO: First Colonial Bankshares Corp. ST: Illinois IN: FIN SU: ERN

TS -- NY082 -- 3538 10/18/93 16:04 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:Oct 18, 1993

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