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FIRST FEDERAL REPORTS $10 MILLION EARNINGS

 FIRST FEDERAL REPORTS $10 MILLION EARNINGS
 SAN JUAN, Puerto Rico, Jan. 14 /PRNewswire/ -- First Federal


Savings Bank of Puerto Rico (NASDAQ: FFPR) today announced net earnings of $10.1 million, or $1.77 per common share, for the year ended Dec. 31, 1991. The previous year the bank had incurred a net loss of $17.7 million, or $5.37 per common share, that included an extraordinary provision for loan losses of $23.7 million.
 Results for the fourth quarter ending Dec. 31, 1991 reflect a net income of $2.7 million, or $0.44 per common share, as compared to a net loss of $7.7 million, or $2.22 per common share, for the same period in 1990.
 Net interest income for 1991 increased to $61.8 million, from $59.5 million in 1990, an improvement of $2.3 million or 4 percent over the previous year. Other operating income for 1991 also increased from $12.2 million, to $13.2 million, or 8.3 percent over 1990, while operating expenses decreased by a significant $5.3 million, or 9.3 percent, during the same period.
 The net income level of $10.1 million for 1991 was achieved notwithstanding $16.4 million in provisions for possible loan losses assigned by the bank during the year ending Dec. 31. These provisions contribute to strengthen the reserves for possible losses by increasing the same to $29.0 million, from $26.5 million as of Dec. 31, 1990.
 According to Angel Alvarez Perez, president and CEO of the savings bank, the improvements in the levels of interest income and operating expenses, the main financial indicators of banking operations, account for First Federal's turnaround during 1991. "These results are more significant taking into consideration the recessionary economy that has been affecting earning levels in general," added Alvarez Perez.
 Net income for the year ended Dec. 31, 1991 also include $5.7 million in gains from the sale of investments resulting from restructuring the bank's investment portfolio. The strategy to sell securities held by the bank was followed in order to take advantage of favorable investment market conditions in 1991.
 Total assets remained stable at $1,898 million as of Dec. 31, 1991, as compared to $1,908 million as of Dec. 31, 1990. Total loans decreased by 4.5 percent to $1,264 million, from $1,324 million during the same period. The decrease in the total loans for 1991 is due to a lower level of commercial loans, partly offset by increases in residential mortgages and auto loans. An increasing trend in the personal loans portfolio experienced during the first semester of 1991 was sharply reversed during the second semester. "The resulting lower level of promoting and originating personal loans reflects the negative impact of lower interest rates which make personal loans unprofitable for the bank," said Alvarez Perez.
 Total deposits increased 5 percent to $1,374 million as of Dec. 31, 1991, from $1,309 million the previous year. Branch-based deposits contributed to this increase with an additional $35.9 million in passbook savings.
 As of Dec. 31, 1991 First Federal's capital increased to $74.1 million, an improvement of $9.6 million, or 15.1 percent over the capital level as of Dec. 31, 1990. "Strengthening the capital position of the bank, while improving its profit performance, constitutes the thrust of our institutional efforts. The financial results for 1991 are important milestones in our continued efforts toward achieving those objectives, to which our employees at all levels have contributed with enthusiasm and dedication," stated Alvarez.
 First Federal Savings Bank, with $1,898 million in total assets, ranks first among Puerto Rico's savings institutions and second among local banking institutions, including local commercial banks. It operates 30 branches in Puerto Rico and the U.S. Virgin Islands, and 3 branches in Miami, through its subsidiary, First Florida Savings Bank.
 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 CONDENSED FINANCIAL HIGHLIGHTS
 (000s OMITTED)
 AT AT
 12/31/91 12/31/90
 Total Assets $1,898,399 $1,908,240
 Mortgage-Backed Securities 349,331 269,180
 Total loan receivable 1,264,380 1,324,135
 Reserve for Possible Loan
 and REO Losses 29,001 26,484
 Total Deposits 1,373,822 1,308,925
 Retail deposits 972,393 948,788
 Institutional deposits
 including 936 401,429 360,137
 Total Stockholders' Equity 74,146 64,415
 CONDENSED STATEMENT OF INCOME
 (000s OMITTED)
 Three Months Ended
 12/31/91 12/31/90 Increase
 (Decrease)
 Net Interest Income $15,927 $13,157 $2,770
 Provision for possible loan
 and REO Losses:
 Regular 2,557 2,224 333
 Additional 1,222 6,942 (5,720)
 Other Operating Income 3,461 3,088 373
 Gain on Sale of Investments 312 67 245
 Operating Expenses 13,793 15,511 (1,718)
 Income (Loss) Before
 Income Tax Provision and
 Extraordinary Item 2,128 (8,365) 10,493
 Provision (reduction)
 in income tax (528) (637) 109
 Income (loss) Before
 Extraordinary Item 2,656 (7,728) 10,384
 Extraordinary item:
 Interest advanced on
 subordinated notes prepaid -- -- --
 Net Income (Loss) $2,656 $(7,728) $10,384
 Net Income (Loss) Per Common
 Share $0.44 $(2.22) $2.66
 Year Ended
 12/31/91 12/31/90 Increase
 (Decrease)
 Net Interest Income $61,846 $59,513 $2,333
 Provision for possible loan
 and REO Losses:
 Regular 10,218 9,446 772
 Additional 6,225 23,659 (17,434)
 Other Operating Income 13,230 12,212 1,018
 Gain on Sale of Investment 5,664 427 5,237
 Operating Expenses 51,423 56,678 (5,255)
 Income (Loss) Before
 Income Tax Provision and
 Extraordinary Item 12,874 (17,631) 30,505
 Provision (reduction )
 in income tax 1,420 82 1,338
 Income (loss) Before
 Extraordinary Item 11,454 (17,713) 29,167
 Extraordinary item:
 Interest advanced on
 subordinated notes prepaid (1,400) -- 1,400
 Net Income (Loss) $10,054 ($17,713) $27,767
 Net Income (Loss) Per Common
 Share $1.77 ($5.37) $7.14
 -0- 1/14/92
 /CONTACT: Annie Astor de Carbonell, executive vice president and chief financial officer of First Federal Savings Bank of Puerto Rico, 809-724-1715/
 (FFPR) CO: First Federal Savings Bank of Puerto Rico ST: IN: FIN SU: ERN


SS-AW -- FL012 -- 9673 01/14/92 15:47 EST
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Date:Jan 14, 1992
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