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FIRST FEDERAL SAVINGS BANK OF PUERTO RICO REPORTS 164 PERCENT INCREASE IN EARNINGS FOR 4TH QUARTER

 SAN JUAN, Puerto Rico, Jan. 12 /PRNewswire/ -- First Federal Savings Bank of Puerto Rico (NYSE: FBP) today announced record net earnings for 1993 of $28,795,000 or $2.51 per common share, an earnings per share increase of 144 percent over net earnings of $14,480,000 or $1.03 per share for 1992. For the fourth quarter ended Dec. 31, 1993, the bank earned $6,765,000 or $.066 per share, as compared to $3,618,000 or $0.25 per share for the same period in 1992, a 164 percent earnings per share increase. All per share figures are adjusted for a 10 percent stock dividend in December of 1992, and two 3 for 2 stock splits in February of 1993 and November of 1993.
 Earnings for the year 1993 include a $6,840,000 or $0.51 per share non-recurring positive adjustment made in the first quarter of 1993, as a result of the implementation of FASB 109, "Accounting for income taxes." Excluding this adjustment, First Federal's core earnings for 1993 were $21,955,000 or $2.00 per share, a 94 percent increase over the prior year on a per share basis.
 According to Angel Alvarez Perez, president and chief executive officer of the bank, the significant improvement in operating profits is the result of a combination of actions taken in the past three years to make the bank more efficient and productive.
 These actions included reduction of operating expenses in non- productive areas, a restructuring of the liability base, and targeting more resources to serving the consumer market in Puerto Rico and the U.S. Virgin Islands. "Our results for 1993 continued the excellent earnings performance which started in 1992. We expect the favorable trends to continue as First Federal has positioned itself to meet the financing needs of the consumers in Puerto Rico," said Alvarez Perez.
 Net interest income, the bank's main source of revenues, increased by 19 percent to $87,020,000 in 1993, from $73,007,000 in 1992. Net interest margin reached an all time high of 5.09 percent during the last quarter of 1993.
 Return on average assets and return on average common equity were 1.53 percent and 39.68 percent respectively. Without the FASB 109 adjustment, core return on average assets and return on average common equity were 1.17 percent and 30.25 percent respectively. The bank's efficiency ratio (operating expenses to net interest income and other income) improved from 63.2 percent in 1992 to 54.7 percent in 1993.
 Total assets of the bank increased slightly to $1,913,902,000 as of Dec. 31, 1993, as compared to $1,888,754,000 as of Dec. 31, 1992. Total loans increased by $55.5 million from $1,182,409 in 1992 to $1,237,928 in 1993. Consumer loans, at $554.4 million surpassed for the first time the $500 million mark, increasing by 28.3 percent, while real estate loans and commercial loans decreased by $33.3 million and $33.8 million respectively. Non-performing assets decreased by 18 percent, from $87.7 million to $72.2 million, while the reserve to non-performing assets increased from 34.7 percent in 1992 to 42.2 percent in 1993, due to continued additions to the bank's unallocated general reserves.
 Total deposits increased from $1,336,969,000 as of Dec. 31, 1992 to $1,370,938,000 as of Dec. 31, 1993, while branch generated deposits increased by $54.5 million, from $1,029,302,000 in 1992 to $1,083,811,000 in 1993.
 First Federal Savings Bank of Puerto Rico, with total assets of $1,913,902,000, ranks first among Puerto Rico's savings institutions, and second among local banking institutions, including commercial banks. The bank, which exceeds all regulatory capital requirements, operates 30 branches in Puerto Rico and the U.S. Virgin Islands, and three branches in Miami, through its subsidiary, First Florida Savings Bank.
 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 CONDENSED FINANCIAL HIGHLIGHTS
 (000s OMITTED)
 AT AT
 12/31/93 12/31/92
 Total assets $ 1,913,902 $ 1,888,754
 Mortgage-backed securities 433,419 450,818
 Total loans:
 Real estate loans 556,064 589,331
 Consumer and other loans 554,370 431,820
 Commercial loans 127,494 161,258
 Total 1,237,928 1,182,409
 Reserve for possible
 loan losses 30,453 30,474
 Total deposits:
 Branch generated deposits 1,083,811 1,029,302
 Institutional deposits
 including 936 287,127 307,667
 Total 1,370,938 1,336,969
 Stockholders' equity:
 Common 92,785 54,328
 Preferred --- 34,294
 Total 92,785 88,622
 Average common stock and
 stock equivalents -- fully
 diluted (for the fourth
 quarter) 10,257 11,529
 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 CONDENSED STATEMENTS OF INCOME
 (000s OMITTED)
 Three Months Ended 12 Months Ended
 12/31/93 12/31/92 12/31/93 12/31/92
 Net interest income $23,552 $20,041 $87,020 $73,007
 Provision for possible
 loan losses 5,162 3,404 18,669 13,596
 Other operating income 4,153 3,267 16,674 13,026
 Gain on sale of
 investments 449 --- 449 537
 Operating expenses 14,580 14,179 56,994 54,745
 Income before income tax
 provision and
 extraordinary item 8,412 5,725 28,480 18,229
 Income tax
 expense (benefit):
 Current 1,647 1,237 6,525 2,879
 Deferred --- --- (6,840) ---
 Income before
 extraordinary item 6,765 4,488 28,795 15,350
 Extraordinary item:
 Loss on early
 extinguishment of debt --- (870) --- (870)
 Net income $ 6,765 $ 3,618 $28,795 $14,480
 Net income per
 common share: (A)
 Income before
 extraordinary item $.66 $ .33 $2.51 $1.11
 Extraordinary item --- (.08) --- (.08)
 Net income per
 common share $ .66 $ .25 $2.51 $1.03
 (A) -- Both primary and fully diluted.
 -0- 1/12/94
 /CONTACT: Annie Astor de Carbonell, executive vice president and chief financial officer of First Federal Savings Bank of Puerto Rico, 809-724-1715, or 809-729-8088/
 (FBP)


CO: First Federal Savings Bank of Puerto Rico ST: Puerto Rico IN: FIN SU: ERN

AW-RK -- FL005 -- 1016 01/12/94 13:48 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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