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FLORIDA FIRST FEDERAL ANNOUNCES PROFIT FOR SECOND QUARTER 1992

 FLORIDA FIRST FEDERAL ANNOUNCES PROFIT FOR SECOND QUARTER 1992
 PANAMA CITY, Fla., July 23 /PRNewswire/ -- Florida First Federal Savings Bank (NASDAQ-NMS: FFPC) ("the savings bank") announced that for the quarter ended June 30, 1992, a profit of $221,000 or $.12 per share was recorded compared to a loss of $231,000 or $.12 per share for the same quarter in 1991. For the six-month periods ended June 30, 1992 and 1991, the savings bank recorded profits of $423,000 or $.23 per share compared to a loss of $626,000 or $.33 per share, respectively. The primary reason for the improvement, when comparing the three and six- month periods ended June 30, 1992 and 1991, is the significant increase in the net interest margin resulting from declining interest costs and the reduction in the amount of non-performing assets.
 "We are excited by the obvious progress being made at the savings bank. The second consecutive quarterly profit has met our expectations," said Andrew W. Stein, president and CEO. "The savings bank still has more risk inherent in its balance sheet than we would like, but we believe that the apparent improvement in the savings bank's problems are reflected in its improved earnings."
 Net non-performing assets, including non-accrual loans, real estate owned ("REO") and troubled debt restructurings ("TDRs"), totaled $21.3 million at June 30, 1992, a substantial decrease of $4.8 million when compared to the total at Dec. 31, 1991 of $26.1 million. At June 30, 1992, net non-earning assets (excluding TDRs which are performing loans) totaled $16.2 million compared to $21.3 million at Dec. 31, 1991. For the quarter ended June 30, 1992, $666,000 was provided for possible losses on interest-earning assets compared to $125,000 for the quarter ended June 30, 1991. For the six months ended June 30, 1992, $1.1 million was provided for possible losses on interest-earning assets compared to $368,000 for the six months ended June 30, 1991. Additionally, writedowns on REO amounted to $96,000 and $206,000 for the three and six months ended June 30, 1992, respectively, while there were no such writedowns during the same periods in 1991. The savings bank provided $525,000 in the second quarter of 1992 for possible loss on a specific $3.0 million asset included in the non-earning total above. The asset is being resolved in accordance with a marketing program agreed to by the developers and savings bank that, if accomplished, would liquidate the majority of the asset by Sept. 30, 1992. These additional reserves and writedowns were necessary to maintain total general reserves and REO carrying values at a level deemed appropriate by management.
 The savings bank's net interest income during the first six months of 1992 showed significant improvement due to both the reduced level of non-performing assets as well as decreases in the average cost of deposits due to the general decline in market rates of interest. For the three and six months ended June 30, 1992, net interest income before provision for losses amounted to $1.6 million and $3.1 million, respectively, compared to $1.1 million and $1.9 million for the same periods in 1991. The savings bank's results were also favorably affected by an increase of $677,000 in other operating income when comparing the first six months of 1992 to the same period in 1991. The increase in other income primarily resulted from increased gains on sales of loans and investments, as well as increased loan correspondent fees.
 The recent drop in general market interest rates has caused the savings bank to focus on interest rate risk and prepayment risks. The decision was made to sell certain investments held by the savings bank totaling $14.2 million when the Federal Reserve reduced the discount rate in July 1992 since management believes this reduction will cause an increase in prepayment risk. The sales resulted in an aggregate loss of $36,000 which is not expected to have a material effect on the third quarter results.
 Total assets at June 30, 1992 totaled $266.4 million compared to $265.7 million at Dec. 31, 1991, while total deposits at June 30, 1992 were $204.8 million compared to $203.0 million at Dec. 31, 1991. Stockholders' equity at June 30, 1992 was $8.6 million or $4.59 per share compared to $8.2 million at Dec. 31, 1991, or $4.36 per share, reflecting the net profit recorded for the first half of 1992.
 The savings bank conducts business through nine full-service offices. Florida First Federal's common shares trade under the symbol "FFPC" on the NASDAQ National Market.
 FLORIDA FIRST FEDERAL SAVINGS BANK
 FINANCIAL HIGHLIGHTS
 (Dollars in Thousands - Except Per Share Amounts)
 June 30, 1992 Dec. 31, 1991
 (Unaudited)
 Total assets $266,362 $265,705
 Loans receivable -- net 173,225 177,551
 Investments -- net 44,186 41,643
 Real estate owned -- net 14,010 17,822
 Loans held for sale 2,454 2,914
 Deposits 204,783 203,022
 FHLB advances and other
 borrowings 50,100 52,600
 Stockholders' equity 8,576 8,154
 Stockholders' equity
 per share 4.59 4.36
 Three Months Ended
 June 30, 1992 June 30, 1991
 (unaudited)
 Interest income $ 5,058 $ 5,630
 Interest expense 3,440 4,570
 Net interest income 1,618 1,060
 Provision for losses on
 interest-earning assets 666 125
 Net interest income after
 provision for losses 952 935
 Other income 799 278
 Operating expenses 1,448 1,444
 Real estate owned
 expenses -- net 63 --
 Income (loss) before income
 taxes and
 extraordinary item 239 (231)
 Provision for income taxes 129 --
 Net income (loss) before
 extraordinary item 110 (231)
 Extraordinary income -- net
 operating loss carryforward 111 --
 Net income (loss) $ 221 $ (231)
 Income (loss) per share $ .12 $ (.12)
 Six Months Ended
 June 30, 1992 June 30, 1991
 (unaudited)
 Interest income $ 10,215 $ 11,171
 Interest expense 7,097 9,282
 Net interest income 3,118 1,889
 Provision for losses on
 interest-earning assets 1,063 368
 Net interest income after
 provision for losses 2,055 1,521
 Other income 1,428 751
 Operating expenses 2,831 2,847
 Real Estate owned
 expenses -- net 211 51
 Income (loss) before income
 taxes and
 extraordinary item 411 (626)
 Provision for income taxes 206 --
 Net income (loss) before
 extraordinary item 235 (626)
 Extraordinary income -- net
 operating loss carryforward 188 --
 Net income (loss) $ 423 $ (626)
 Income (loss) per share $ .23 $ .33
 For the Six For the For the Six
 Months Ended Year Ended Months Ended
 June 30, Dec. 31, June 30,
 1992 1991 1991
 (Unaudited) (Unaudited)
 Return on average assets .33 pct. (.82) pct. (.48) pct.
 Return on average equity 9.91 pct. (21.72) pct. (12.41) pct.
 Equity as percentage of
 total assets at end of
 period 3.22 pct. 3.07 pct. 3.68 pct.
 Interest rate spread 2.98 pct. 2.34 pct. 2.18 pct.
 Net interest margin 2.66 pct. 1.89 pct 1.62 pct.
 Yields and Rates At
 June 30, Dec. 31, June 30,
 1992 1991 1991
 (Unaudited) (Unaudited)
 Yield on loans 9.18 pct. 9.73 pct. 10.14 pct.
 Yield on investments 7.25 8.42 8.41
 Yield on other earnings
 assets 4.18 4.82 6.53
 Yield on total earning
 assets 8.40 9.20 9.74
 Cost of deposits 4.92 5.83 6.85
 Cost of FHLB advances
 and other borrowings 7.39 7.65 8.65
 Cost of deposits
 and borrowings 5.40 6.20 7.21
 Interest rate spread 3.00 3.00 2.53
 -0- 7/23/92
 /CONTACT: Barbara Larrabee Haag, senior vice president of Florida First Federal Savings Bank, 904-872-7047/
 (FFPC) CO: Florida First Federal Savings Bank ST: Florida IN: FIN SU: ERN


AW-JB -- FL012 -- 2498 07/23/92 12:03 EDT
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