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GREAT LAKES BANCORP NETS $3.6 MILLION IN THIRD QUARTER

 GREAT LAKES BANCORP NETS $3.6 MILLION IN THIRD QUARTER
 ANN ARBOR, Mich., Oct. 22 /PRNewswire/ -- Great Lakes Bancorp


(NASDAQ-NMS: GLBC) earned $3.6 million in the three-month period that ended Sept. 30, compared with earnings of $361,000 in the same quarter a year ago. Thus, in the first nine months of the year, Great Lakes has earned $7.5 million, compared with $2.6 million in the same period last year.
 "We promised our shareowners at this year's annual meeting that the bank's performance would improve," said Robert J. Delonis, Great Lakes Bancorp's president and chief executive officer. "The changes we have been making take time -- improving the productivity of our branch system, building higher capital levels, tackling problems in our commercial loan portfolios -- but they are beginning to yield results.
 "We are closing mortgages at a record pace, our net interest margin is at historically high levels, capital is increasing ahead of our goals, and nonperforming assets declined again this quarter. By all these measures, Great Lakes is following through on its commitment to our shareowners and customers."
 Through September, residential mortgage originations were up 40 percent, not including Great Lakes' heavy refinancing activity, to $296 million. "We expect our gross mortgage volume to approach half a billion dollars this year," Delonis said, "the highest in Great Lakes' history."
 Great Lakes' net interest margin increased to 3.07 percent and 3.09 percent for the quarter and the year to date, respectively, from 2.88 percent and 2.72 percent in the same periods last year. Net interest income declined only moderately in the comparable quarters, to $19.2 million from $21.7 million, despite an 11-percent decline in assets to $2.72 billion. Net interest income for the comparable nine- month periods was $59.9 million, compared with $64.7 million a year ago.
 Delonis noted that the bank passed another significant capital milestone during the third quarter, "the 4-percent tangible capital goal we had set for the end of the year. Great Lakes surpassed all three of the congressionally mandated capital standards -- two and a half years ahead of schedule. Now we are also ahead of our goal for even higher tangible levels." At Sept. 30, Great Lakes' tangible capital had increased to 4.15 percent of tangible assets compared with 3.30 percent a year ago.
 Great Lakes' risk-based capital increased to 10.52 percent at the end of the quarter, or 8.81 percent on a fully phased-in basis. "Risk- based capital is the most logical of the capital standards, the one the industry is moving to as a standard," Delonis said, "because it links the level of capital to the level of risk associated with an institution's assets."
 Nonperforming assets dropped $9 million during the third quarter, or $13 million from their peak at the end of the first quarter, to 2.85 percent of assets.
 Classified assets, which include both nonperforming assets as well as other loans with potential for increased risk, declined to less than 100 percent of the bank's tangible capital and reserves for credit losses, compared with 114 percent at year-end. "We still have a lot of work ahead of us to get credit quality to a level that's acceptable to Great Lakes," Delonis said, "but we're pleased with the progress being made."
 Additions to reserves for possible credit losses totaled $4.5 million, compared with $6.0 million in the quarter a year ago. Thus, together with the decline in nonperforming assets, Great Lakes' reserves for possible loan losses increased to 78 percent of nonperforming loans, or 1.2 percent of total loans.
 "In addition, we have completed the last of the branch sales we planned, paring down to a much more efficient branch system," Delonis said. "The savings in overhead will benefit Great Lakes in the coming quarters, and in the future we will be able to redeploy these resources in communities where we have a stronger market share and greater potential for growth."
 Great Lakes realized a gain of $4.5 million on the sale of branches during the third quarter, compared with branch-sales gains of $1.2 million in the period a year ago. Gains on the sale of mortgages and securities declined to $222,000 from $1.1 million a year ago.
 Despite the impact of a costly proxy contest earlier in the year, the bank's general and administrative expenses declined slightly for the three-month period and declined $1 million for the nine-month period. "We intend to run as lean an operation as possible, without sacrificing the kind of service we need to deliver as a community bank," Delonis said.
 After accounting for dividends paid to preferred shareowners, net income available to common shareowners was $2.9 million for the quarter, or 56 cents per share, compared with a loss of $407,000 in the year-ago quarter, or a negative 8 cents per share.
 With $2.7 billion in assets and $1.7 billion in deposits, Great Lakes Bancorp is Michigan's second-largest savings bank. Great Lakes has branches concentrated in three primary markets in Michigan's Lower Peninsula: the regions surrounding Ann Arbor, Battle Creek, and Saginaw. In addition, a division of Great Lakes, Dollar Federal Savings Bank, has a significant presence in Hamilton, Ohio. Great Lakes also operates Great Lakes Mortgage Co., a mortgage banking subsidiary.
 GREAT LAKES BANCORP,
 A Federal Savings Bank
 FINANCIAL HIGHLIGHTS
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 (Dollars in millions,
 EARNINGS DATA except per-share data)
 Net interest income $19.2 21.7 59.9 64.7
 Gain on sale of mortgages
 and securities, net 0.2 1.1 1.7 2.3
 Gain on sale of branches 4.5 1.2 4.5 1.2
 Provision for possible loan losses 4.0 6.0 15.6 15.5
 Provision for possible REO losses 0.5 --- 4.2 ---
 Amortization of intangibles 0.8 0.9 2.5 2.7
 Income before extraordinary item
 and change in accounting principle 3.3 0.4 2.2 1.9
 Gain on early extinguishment of debt 0.3 --- 0.3 0.7
 Change in accounting principle --- --- 5.0 ---
 Net income 3.6 0.4 7.5 2.6
 PER SHARE DATA
 Primary earnings (loss) per share 0.56 (0.09) 1.07 0.12
 Fully diluted earnings (loss)
 per share 0.55 (0.09) 1.05 0.12
 Tangible book value per common
 share at period end 16.91 15.74 16.91 15.74
 OTHER DATA
 Total assets 2,716 3,067 2,716 3,067
 Loans receivable, net 1,917 2,283 1,917 2,283
 Deposits 1,700 1,890 1,700 1,890
 Stockholders' equity 158 150 158 150
 Tangible capital 111 99 111 99
 The following information is presented in percentages:
 Tangible capital ratio 4.2 3.3 4.2 3.3
 Core capital ratio 5.2 4.8 5.2 4.8
 Risk-based capital ratio 10.5 9.4 10.5 9.4
 -0- 10/22/92
 /CONTACT: James S. Patterson, vice president, corporate communications, Great Lakes Bancorp, 313-769-8300, Ext. 4116/
 (GLBC) CO: Great Lakes Bancorp ST: Michigan IN: FIN SU: ERN


DH-KE -- DE011 -- 3509 10/22/92 11:23 EDT
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Date:Oct 22, 1992
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