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HOWARD SAVINGS BANK REPORTS FIRST QUARTER FINANCIAL RESULTS

 HOWARD SAVINGS BANK REPORTS FIRST QUARTER FINANCIAL RESULTS
 LIVINGSTON, N.J., April 20 /PRNewswire/ -- The Howard Savings Bank today reported a net loss of $15.8 million, or $1.10 per share, for the first quarter of 1992, compared to a 1991 first quarter net loss of $8.0 million, or 56 cents per share, according to William P. Tuggle III, chairman and chief executive officer.
 Tuggle said that two items largely accounted for the difference between the two quarters. The 1991 first quarter operating results included a non-recurring gain of $3.2 million from the sale of $155 million of securitized residential mortgage loans, and the 1992 first quarter results reflect an addition of $4 million to the bank's reserve for real estate losses.
 "The bank continues to be adversely affected by a high level of non-performing assets," Tuggle said, "which is the result of deteriorated real estate markets in New Jersey and the Northeast, together with a recessionary economy."
 The Howard's level of non-performing assets was $708.7 million at March 31, 1992, compared to $724.3 million at year-end 1991 and $651.9 million at March 31 a year ago. The bank's allowance for loan and lease losses was $137.8 million at March 31, 1992, compared to $156.0 million at the end of 1991 and $180.5 million at March 31 a year ago.
 The reserve for real estate losses, which is in addition to the allowance for loan and lease losses, was $7.3 million at March 31, 1992, compared to $7.1 million at the end of 1991, and zero at March 31 a year ago. The bank reported $23 million in charge-offs against the allowance and $3.8 million against the reserve for real estate during the first quarter of this year.
 "Our continuing program to control expenses has stabilized non- interest expenses which were $33 million in the first quarter of 1992 compared to $32.9 million in the same quarter of 1991," Tuggle said. "This was accomplished in spite of increased costs for FDIC insurance and expenses necessary to protect assets securing non-performing loans."
 The Howard's leverage capital ratio was 1.67 percent at March 31, 1992, less than the 2 percent minimum ratio required by the bank's regulators and a 4 percent level targeted for June 30, 1992, in a written agreement with the regulators signed last year. As previously reported by the bank, its ability to meet capital ratio targets on schedule continues to be tied to the recovery of the New Jersey real estate market and the bank's ability to attract outside capital.
 Shareholders' equity at March 31, 1992, was $75.9 million, or $5.29 per share. Consistent with the bank's plan to downsize, total assets were $4.0 billion at the end of the 1992 first quarter, down 4.2 percent from a year ago, and deposits were $3.9 billion at March 31 of this year, down 2.8 percent from the previous year.
 THE HOWARD SAVINGS BANK AND SUBSIDIARIES
 Summary Financial Statistics
 (Dollars in thousands except per share data)
 Three months ended March 31 1992 1991
 EARNINGS:
 Total interest income $62,508 $83,053
 Total interest expense 51,093 66,519
 Net interest income 11,415 16,534
 Provision for loan losses 3,231 3,031
 Non-interest income 9,196 11,555
 Non-interest expense 32,971 32,892
 Income (loss) before income taxes (15,591) (7,834)
 Income taxes (benefit) 248 191
 Net income (loss) (15,839) (8,025)
 Net income (loss)/share ($1.10) ($0.56)
 PERFORMANCE RATIOS (in percent):
 FOR THE PERIOD:
 Interest rate spread 1.21 1.55
 Net interest margin 1.21 1.65
 AT PERIOD END:
 Risk-based capital ratio 3.94 4.66
 Leverage ratio 1.67 2.52
 Book value per share $5.29 $8.14
 AS OF MARCH 31:
 Total loans $2,395,898 $2,932,921
 Total assets 3,959,099 4,133,023
 Deposits 3,863,413 3,976,573
 Shareholders' equity 75,942 116,899
 Number of common shares 14,365,221 14,365,221
 AVERAGE BALANCES (quarterly):
 Total loans $2,700,612 $3,081,842
 Total assets 4,008,030 4,253,487
 Deposits 3,897,361 4,048,281
 Shareholders' equity 88,848 126,207
 -0- 4/20/92
 /CONTACT: Alan C. Marcus or Ilene D. Manahan of the Marcus Group, 201-902-9000, for Howard Savings Bank; or Walter Hausman of Howard Savings Bank, 201-533-7514, or home, 201-381-8709/
 (HWRD) CO: Howard Savings Bank ST: New Jersey IN: FIN SU: ERN


GK -- NY070 -- 0155 04/20/92 14:43 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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