Printer Friendly

GREAT LAKES BANCORP NETS $8.8 MILLION IN 1992, $1.3 MILLION IN THE FOURTH QUARTER

 ANN ARBOR, MICH., Jan. 21 /PRNewswire/ -- Great Lakes Bancorp (NASDAQ-NMS: GLBC) earned $8.8 million in 1992 following fourth-quarter earnings of $1.3 million. For 1991, Great Lakes reported full-year earnings of $2.2 million, following a loss of $484,000 in the fourth quarter.
 "A number of positive factors underlie higher earnings for the year," said Robert J. Delonis, Great Lakes Bancorp's president and chief executive officer. "The continuing strength of core earnings, further increases in our net interest margin, record residential lending volume, and reduced expenses all contributed to the level of earnings.
 "Nevertheless, we are not satisfied with Great Lakes' performance. The level of provisions that needed to be made for possible losses, as the bank works through the remainder of its problem loans, is still unacceptable," Delonis said. Provisions for possible credit losses totaled $27.3 million, compared with $31.5 million in 1991.
 "The unusually high cost of these credit provisions was only partially offset by unusual revenue during the year, including gains from branch sales amounting to $5.2 million and a $5.0 million benefit from a change in accounting principles, which generally allowed banks to recognize the tax savings resulting from provisions for possible credit losses."
 Nonperforming assets totaled $77.5 million, or 2.77 percent of assets, unchanged from Sept. 30 and down from a peak in March of $90.2 million. Classified assets, which include both nonperforming assets as well as other loans with higher potential risk, increased to 105 percent of the bank's tangible capital plus its reserves for credit losses, from 100 percent at Sept. 30, but are down from 114 percent a year ago. "Our goal was to be below 100 percent at the end of the year," Delonis said, "and we're very disappointed; but it takes time to resolve problem loans in a weak economy."
 Great Lakes' reserve for possible loan losses totals $24.6 million, or 98 percent of nonperforming loans.
 Great Lakes' net interest margin increased to 3.20 percent in the fourth quarter and 3.12 percent for the year, from 2.82 percent in 1991. Net interest income totaled $80.1 million in 1992 compared with $87.1 million a year ago, a period in which average assets declined 13 percent. Great Lakes shrank its asset base in the process of building a more retail-oriented bank with lower credit risk.
 Great Lakes closed a record number of residential loans in 1992, with total originations increasing 50 percent to $527 million, from $351 million a year ago.
 Great Lakes' general and administrative expenses fell, Delonis noted, "but we recognize the need to further reduce expenses as the industry continues to consolidate and become more efficient." Fourth- quarter expenses declined $681,000 from the same period a year ago, and full-year expenses declined $1.9 million.
 Great Lakes' tangible capital increased 13 percent during the year to $112.9 million, or 4.10 percent of tangible assets. Risk-based capital, a measure of capital that reflects the overall risk of a bank's assets, increased to 11.19 percent.
 After accounting for dividends paid to preferred shareowners, net income available to common shareowners was $523,000 for the quarter, or 10 cents per share, and $5.9 million for the year, or $1.14 per share.
 With $2.8 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
 --------- ---------
 12/31/92 12/31/91
 --------- ---------
 (Dollars in Millions,
 Except Per-Share Data)
 EARNINGS DATA
 Net Interest Income $20.2 22.4
 Gain on Sale of Mortgages
 and Securities, Net 2.3 5.0
 Gain on Sale of Branches 0.7 0.8
 Provision for Possible Loan Losses 6.0 14.8
 Provision for Possible REO Losses 1.5 1.2
 Amortization of Intangibles 0.8 0.8
 Income (Loss) Before Extraordinary Item
 and Change in Accounting Principle 1.2 (0.5)
 Gain on Early Extinguishment of Debt 0.1 --
 Change in Accounting Principle -- --
 Net Income (Loss) 1.3 (0.5)
 PER-SHARE DATA
 Primary Earnings (Loss) Per Share 0.10 (0.23)
 Fully Diluted Earnings (Loss) Per Share 0.10 (0.23)
 Tangible Book Value per Common
 Share at Period End 16.80 15.15
 OTHER DATA
 Total Assets 2,798 2,887
 Mortgage-backed Certificates 673 371
 Loans Receivable, Net 1,820 2,203
 Deposits 1,684 1,856
 Stockholders' Equity 159 149
 Tangible Capital 113 100
 The following information is presented in
 percentages:
 Tangible Capital Ratio 4.1 3.5
 Core Capital Ratio 5.1 5.0
 Risk-based Capital Ratio 11.2 9.8
 TWELVE MONTHS ENDED
 --------- ---------
 12/31/92 12/31/91
 --------- ---------
 (Dollars in Millions,
 Except Per-Share Data)
 EARNINGS DATA
 Net Interest Income $80.1 87.1
 Gain on Sale of Mortgages
 and Securities, Net 4.0 7.3
 Gain on Sale of Branches 5.2 2.0
 Provision for Possible Loan Losses 21.6 30.3
 Provision for Possible REO Losses 5.7 1.2
 Amortization of Intangibles 3.3 3.5
 Income (Loss) Before Extraordinary Item
 and Change in Accounting Principle 3.5 1.5
 Gain on Early Extinguishment of Debt 0.3 0.7
 Change in Accounting Principle 5.0 ---
 Net Income (Loss) 8.8 2.2
 PER-SHARE DATA
 Primary Earnings (Loss) Per Share 1.14 (0.12)
 Fully Diluted Earnings (Loss) Per Share 1.13 (0.12)
 Tangible Book Value per Common
 Share at Period End 16.80 15.15
 OTHER DATA
 Total Assets 2,798 2,887
 Mortgage-backed Certificates 673 371
 Loans Receivable, Net 1,820 2,203
 Deposits 1,684 1,856
 Stockholders' Equity 159 149
 Tangible Capital 113 100
 The following information is presented in
 percentages:
 Tangible Capital Ratio 4.1 3.5
 Core Capital Ratio 5.1 5.0
 Risk-based Capital Ratio 11.2 9.8
 -0- 1/21/93
 /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

JG-ML -- DE012 -- 7382 01/21/93 11:52 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 21, 1993
Words:1067
Previous Article:AT&T-SPONSORED PROGRAM NOW OFFERS DISCOUNTS ON INTERNATIONAL SERVICES FROM SIX COMPANIES
Next Article:FOREST PRODUCTS COMPANY EXECUTIVE WARNS PRESIDENT CLINTON OF IMPENDING RECESSION
Topics:


Related Articles
MONTCLAIR BANCORP REPORTS SECOND QUARTER EARNINGS
CITFED BANCORP, INC. RELEASES PRELIMINARY EARNINGS
GREAT LAKES BANCORP REPORTS $1.8 MILLION 2ND-QUARTER PROFIT
SUBURBAN BANCORP ANNOUNCES RECORD 1992
TRANS FINANCIAL REPORTS SIXTH STRAIGHT YEAR OF RECORD EARNINGS
CITFED BANCORP THIRD QUARTER AND YEAR-TO-DATE EARNINGS UP 45 PERCENT
BALTIMORE BANCORP REPORTS FOURTH QUARTER PROFIT; EXCEEDS REQUIRED CAPITAL RATIOS; REDUCES NONPERFORMING ASSETS
ANDOVER BANCORP, INC. REPORTS 1993 FIRST QUARTER NET INCOME OF $1.9 MILLION
FORTUNE BANCORP REPORTS SECOND QUARTER RESULTS
LAKE SHORE BANCORP, INC. REPORTS EARNINGS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters