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FIRST LIBERTY REPORTS CONTINUED INCREASE IN CORE INCOME FOR FISCAL 1992

FIRST LIBERTY REPORTS CONTINUED INCREASE IN CORE INCOME FOR FISCAL 1992
 ATLANTA, Nov. 13 /PRNewswire/ -- First Liberty Financial Corp. (NASDAQ: FLFC) reported net income of $2.8 million or $.94 per fully diluted share for the year ended Sept. 30, compared to $5.4 million or $1.96 per fully diluted share a year earlier.
 Core income, which excludes the effect of the extraordinary item and changes in accounting principles, increased during fiscal 1992. Core income was $1.6 million or $.54 per fully diluted share during fiscal 1992 compared to $1.1 million or $.69 per fully diluted share a year earlier.
 Robert F. Hatcher, First Liberty's president and chief executive officer, said: "During 1992, the continued reduction in non-performing assets and a favorable interest rate environment contributed to a 52 percent increase in core income while we increased the level of loan and real estate reserves. We're proud of these results and the management team that achieved them."
 During fiscal 1992, net income included a tax benefit of $1.2 million or $.40 per fully diluted share reflecting a change in accounting principle for the adoption of Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes."
 Fiscal 1991 results include an extraordinary item of $3.5 million or $1.03 per fully diluted share from the gain on early extinguishment of debt. Also, the fiscal 1991 results reflect the retroactive application of Staff Accounting Bulletin No. 91 ("SAB No. 91") regarding the accounting for income tax benefits of thrift bad debt losses which increased net income by $810,000 or $.24 per fully diluted share.
 Net interest income increased by 8 percent from last year reflecting an increase in the interest rate spread and the favorable impact of reduced non-performing assets. The interest rate spread increased to 3.21 percent during fiscal 1992 from 3.13 percent in 1991.
 Non-performing assets (which include non-performing loans and repossessed assets) were $22.6 million or 3.3 percent of total assets at Sept. 30, compared to $39.4 million or 5.5 percent of total assets a year ago. Non-performing loans were $3.6 million or .7 percent of total loans at Sept. 30, compared to $6.4 million or 1.2 percent of total loans at Sept. 30, 1991.
 General loan loss reserves were $5.6 million at Sept. 30, compared to $4.9 million in 1991. General loan loss reserves were 1.0 percent of total loans at Sept. 30, compared to .9 percent in 1991 and represented 158 percent of non-performing loans in 1992 compared to 76 percent a year ago.
 Real estate owned and other repossessed assets declined to $19.1 million at Sept. 30 from $33.0 million a year earlier. Sales of real estate owned during fiscal 1992 were $20.4 million compared to $12.0 million a year earlier.
 During the fourth quarter of fiscal 1992, Liberty recorded a provision of $1.6 million for possible losses on sales of foreclosed real estate which increased the allowance for real estate losses to $2.4 million. The increase in the allowance reflects management's estimate of the realizable values.
 Commenting on the real estate provision, Hatcher said: "We have been in a soft real estate market for at least 30 months and conditions, while stabilizing, have not improved. We believe conditions will continue to be soft in the near term. Accordingly, we have re-assessed all properties and provided additional reserves to accelerate the liquidation of a substantial part of our real estate portfolio. We believe the strength of reserves for loans and real estate will provide a basis for continued reduction of First Liberty's non-performing assets during fiscal 1993."
 Liberty Mortgage Corporation (First Liberty's mortgage banking subsidiary) originated $630 million of loans during fiscal 1992 compared to $220 million during fiscal 1991. During the fourth quarter, Liberty Mortgage sold loan servicing rights principally relating to current loans originated which resulted in a gain on sale of $1.9 million, after taxes.
 Hatcher said: "Liberty Mortgage sells loan servicing rights relating to current loans originated to recover marketing concessions to our customers. We realized a net profit from the sale of loans and servicing rights of $3.7 million during the year." However, Liberty Mortgage retained servicing rights of $104 million on loans originated during fiscal 1992.
 The following table summarizes Liberty Savings Bank's regulatory capital ratios and its requirements at Sept. 30:
 Current Level Regulatory Requirement
 Tangible 5.1 pct. 1.5 pct.
 Core 5.4 pct. 3.0 pct.
 Risk-based 10.3 pct. 7.2 pct.
 Total stockholders' equity was $38.5 million or $12.91 per share at Sept. 30, compared to $35.6 million or $11.94 per share in 1991. Tangible book value per share was $11.84 at Sept. 30, compared to $10.77 a year earlier.
 At Sept. 30, First Liberty reported total assets of $679 million compared to $713 million a year earlier. Total deposits were $495 million in 1992 compared to $528 million in 1991. Total loans declined to $538 million at Sept. 30, compared to $541 million last year.
 Summarizing fiscal year 1992, Hatcher said: "During 1992, we continued to focus on reducing non-performing assets and strengthening reserves, increasing capital, controlling expense levels and improving Liberty's operating environment. All these initiatives have contributed to the 1992 operating results and provide a basis for continued substantial improvement in fiscal 1993. The company's board of directors recently adopted a strategic plan which is expected to enhance stockholders' value over a three-year period. The plan calls for a continued reduction in non-performing assets, increased core earnings, and additional acquisitions. The plan is subject to annual review."
 First Liberty Financial Corp. is the holding company for Liberty Savings Bank, F.S.B., operating 18 banking offices in middle, coastal and south Georgia, a loan production office in Atlanta, and owns a mortgage banking company, Liberty Mortgage Corporation, which operates throughout Georgia and through correspondent relationships in several other southeastern states. First Liberty common stock is quoted through the National Market System of the National Association of Securities Dealers (NASDAQ) under the symbol FLFC. First Liberty's 11 percent Subordinated Debentures, 8-1/4 percent Subordinated Debentures and 8-1/4 percent Convertible Subordinated Debentures are traded through the inter-dealer quotation system commonly referred to as the "yellow sheets."
 FIRST LIBERTY FINANCIAL CORP.
 Financial Highlights (unaudited)
 Dollars in thousands, except per share data
 Operating ratios are annualized
 3 mos. ended 12 mos. ended
 9/30/92 9/30/91 9/30/92 9/30/91
 EARNINGS SUMMARY
 Net interest income $ 5,312 $ 4,942 $20,014 $18,487
 Prov. for loan losses 1,150 1,640 3,950 3,358
 Non interest income 1,848 1,347 5,758 5,891
 Non interest expense 4,960 4,896 19,489 19,315
 Income taxes 381 (405) 719 (165)
 Income before change in
 accounting principle &
 extraordinary item 669 158 1,614 1,870
 Chg. in acctg. principle --- --- 1,217 ---
 Extraordinary item --- 3,211 --- 3,483
 Net income $ 669 $ 3,369 $ 2,831 $ 5,353
 Earnings per share:
 Before change in accounting
 principle and extraordinary
 item
 Primary $ 0.22 $ 0.08 $ 0.53 $ 0.95
 Fully diluted $ 0.22 $ 0.14 $ 0.54 $ 0.93
 Net income
 Primary $ 0.22 $ 1.69 $ 0.94 $ 2.70
 Fully diluted $ 0.22 $ 1.09 $ 0.94 $ 1.96
 Wtd. avg. shares outstanding
 Primary 3,020,953 1,992,147 2,997,874 1,984,042
 Fully diluted 3,061,615 3,368,043 3,038,536 3,375,930
 OPERATING RATIOS
 Net interest margin 3.38 pct. 3.29 pct. 3.21 pct. 3.13 pct.
 Return on avg. assets 0.39 pct. 1.85 pct. 0.40 pct. 0.73 pct.
 Return on avg. equity 7.05 pct.43.62 pct. 7.60 pct.18.50 pct.
 Return on avg. assets before
 change in acctg. principle
 and extraord. item 0.39 pct. 0.09 pct. 0.23 pct. 0.26 pct.
 Return on avg. equity before
 change in acctg. principle
 and extraord. item 7.05 pct. 2.05 pct. 4.33 pct. 6.46 pct.
 BALANCE SHEET SUMMARY AT 9/30/92 9/30/91
 Total assets $679,376 $713,209
 Earning assets 604,516 632,741
 Loans, net 537,937 540,962
 Allowance for loan losses 5,641 4,864
 Deposits 495,229 527,835
 Stockholders equity 38,453 35,550
 Book value per share 12.91 11.94
 Tangible book value per share 11.84 10.77
 Shares outstanding 2,978,350 2,978,350
 AVERAGE BALANCES AT 9/30/92 9/30/91
 Total assets $708,843 $729,476
 Earning assets 634,736 654,120
 Total loans, net 556,646 554,159
 Deposits 510,296 524,862
 Stockholders equity 37,262 28,930
 ASSET QUALITY
 Nonperforming loans $ 3,569 $ 6,398
 Repossessed assets 19,078 33,029
 Nonperforming assets 22,647 39,427
 Net loan charge-offs 3,173 5,868
 FINANCIAL RATIOS
 General allowance for loan
 losses to total loans 1.0 pct. 0.9 pct.
 General allowance for loan
 losses to nonperf. loans 158.1 pct. 76.0 pct.
 Net loan charge-offs to
 average total loans
 annualized 0.6 pct. 1.1 pct.
 Nonperforming loans to
 total loans 0.7 pct. 1.2 pct.
 Nonperforming assets to
 total assets 3.3 pct. 5.5 pct.
 Equity to assets 5.7 pct. 5.0 pct.
 REGULATORY CAPITAL RATIOS 9/30/92 Required Excess
 Tangible 5.1 pct. 1.5 pct. 3.6 pct.
 Core 5.4 pct. 3.0 pct. 2.4 pct.
 Risk-based 10.3 pct. 7.2 pct. 3.1 pct.
 -0- 11/13/92
 /CONTACT: David L. Hall of First Liberty Financial Corp., 404-936-3350/
 (FLFC) CO: First Liberty Financial Corp. ST: Georgia IN: FIN SU: ERN


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