Printer Friendly

HOWARD SAVINGS BANK REPORTS FOURTH QUARTER FINANCIAL RESULTS

 HOWARD SAVINGS BANK REPORTS FOURTH QUARTER FINANCIAL RESULTS
 LIVINGSTON, N.J., Jan. 27 /PRNewswire/ -- The Howard Savings Bank


(NASDAQ: HWRD) today reported a net loss of $6.3 million, or 44 cents per share, for the fourth quarter of 1991, compared to a 1990 fourth quarter net loss of $19.1 million, or $1.33 per share, according to William P. Tuggle III, chairman and chief executive officer.
 For the full year 1991, the bank had a net loss of $33.1 million, or $2.31 per share, compared to a 1990 net loss of $161.3 million, or $11.23 per share.
 Tuggle said that the Bank was adversely affected in 1991 by the continued deterioration in the real estate markets and the economy in general.
 The Howard's level of non-performing loans at Dec. 31 of 1991 was $601.1 million, compared to $546.9 million at the end of 1990. Non-performing assets were $724.3 million at year-end 1991 and $662.8 million at December 31 of the previous year.
 During the fourth quarter the Howard added $10.1 million to its allowance for loan and lease losses, compared to a $20.0 million addition in the fourth quarter of 1990. In the 1991 fourth quarter the Howard also established a $7 million reserve for other real estate owned and a $5 million reserve for a real estate investment in Washington.
 The bank's total allowance for loan losses was $156.0 million at Dec. 31, 1991, compared with $197.6 million at Dec. 31 of 1990.
 The fourth quarter net loss was reduced by a non-recurring $17.8 million tax benefit recovered through a 10-year carry-back against past taxable income, Tuggle said. Additional non-recurring gains in the fourth quarter totalled approximately $4.2 million, realized from the sales of three branches, in North Arlington, Tenafly and Haddonfield, and $70 million of residential mortgages.
 Other non-recurring gains realized during 1991 totalled $8.3 million, according to Tuggle, and resulted from sales of the bank's Park Ridge office, its C & C insurance subsidiary, $200 million of mortgage servicing and $155 million of residential mortgages.
 The sale of branches, subsidiaries, loans and mortgage servicing is consistent with the bank's ongoing program to generate capital.
 In its continuing program to control expenses, the Howard has reduced its staff by 31 percent, or 596 positions since Jan. 1, 1990, which was the major factor contributing to a $14.9 million reduction in salary and benefits expense realized in 1991. This, however, was offset by a $3.2 million increase in the cost of FDIC insurance for 1991 and $12.6 million more in 1991 expenditures to protect assets securing non-performing loans.
 The Howard's leverage capital ratio was 2.02 percent at Dec. 31, 1991. An agreement between the bank and its regulators, which was announced in October, requires the Howard to maintain a leverage capital ratio of not less than 2 percent and to have achieved a ratio of 3 percent by Dec. 31, 1991. At the time the agreement was announced, Tuggle said that the bank's ability to meet capital ratio targets on schedule would depend on the condition of the New Jersey real estate market and the Howard's ability to attract outside capital.
 As a consequence of the bank's leverage capital ratio, the FDIC and the New Jersey Banking Department may place additional requirements on the bank, including restrictions on operations and asset size. However, Tuggle said, the bank has not been advised of any such restrictions.
 Shareholders' equity at Dec. 31, 1991, was $91.8 million, or $6.39 per share. Consistent with the bank's plan to downsize, total assets were $4.1 billion at 1991 year-end, down 7.9 percent from a year ago, and deposits were $4.0 billion at the end of 1991, down 5.7 percent from the previous year-end.
 The Howard and its subsidiary, Howard Federal Savings, F.A., operate 70 full service branch offices in 11 New Jersey counties.
 THE HOWARD SAVINGS BANK AND SUBSIDIARIES
 Summary Financial Statistics
 (Dollars in thousands except per share data)
 Periods ended: Three months Twelve months
 Dec. 31: 1991 1990 1991 1990
 Earnings:
 Total interest income $71,137 $97,508 $303,302 $413,980
 Total interest expense 58,024 77,116 244,841 324,466
 Net interest income 13,113 20,392 58,461 89,514
 Provision for loan losses 10,057 20,036 24,134 174,592
 Non-interest income 7,093 8,483 40,435 25,362
 Non-interest expense 34,161 27,979 125,194 134,613
 Income (loss) bef inc taxes(24,012) (19,140) (50,432) (194,329)
 Income taxes (benefit) (17,696) -- (17,289) (33,000)
 Net income (loss) (6,316) (19,140) (33,143) (161,329)
 Net income (loss)/share ($0.44) ($1.33) ($2.31) ($11.23)
 Performance Ratios
 (as a percentage):
 For the period:
 Interest rate spread (FTE) 1.40 1.66 1.52 1.77
 Net interest margin (FTE) 1.41 1.88 1.56 2.01
 AT PERIOD END:
 Risk-based capital ratio 4.08 4.80 4.08 4.80
 Leverage ratio 2.02 2.48 2.02 2.48
 Book value per share $6.39 $8.70 $6.39 $8.70
 As of Dec. 31:
 Loans $3,238,751 $2,939,918 $3,238,751 $2,939,918
 Total assets 4,067,083 4,417,809 4,067,083 4,417,809
 Deposits 3,956,424 4,193,465 3,956,424 4,193,465
 Shareholders' equity 91,781 124,924 91,781 124,924
 Number of common shares 14,365,221 14,365,221 14,365,221 14,365,221
 Average Balances:
 Loans $3,208,798 $3,554,700 $3,085,577 $3,693,914
 Total assets 4,087,480 4,614,240 4,108,320 4,854,177
 Deposits 3,962,722 4,312,194 3,954,979 4,438,945
 Shareholders' equity 101,317 143,405 113,559 237,257
 -0- 1/27/92
 /CONTACT: Ilene Dorf Manahan of The Marcus Group, 201-902-9000; or Walt Hausman of Howard Savings Bank, 201-533-7514
 (HWRD) CO: Howard Savings Bank ST: New Jersey IN: FIN SU: ERN


TS -- NY051 -- 3690 01/27/92 11:27 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 27, 1992
Words:1036
Previous Article:GMAC MORTGAGE CORPORATION ISSUES ANNOUNCEMENT
Next Article:COMMUNITY LEADER FIELDING FORMWAY TO RETIRE FROM ARCO PRODUCTS COMPANY
Topics:


Related Articles
HOWARD SAVINGS BANK REPORTS FOURTH QUARTER FINANCIAL RESULTS
CHARTER ONE FINANCIAL, INC. REPORTS 129 PERCENT INCREASE IN NET INCOME FOR 1991 FOURTH QUARTER
OLYMPUS CAPITAL ANNOUNCES FOURTH QUARTER AND TWELVE MONTH FINANCIAL RESULTS
MNC FINANCIAL, INC. REPORTS DECLINE IN NONPERFORMING ASSETS AND CONTINUED PROFITABILITY
FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND ANNOUNCES END OF YEAR, FOURTH QUARTER RESULTS
FIRST BANCORPORATION OF OHIO REPORTSRECORD EARNINGS, UP 28 PERCENT
METROPOLITAN FINANCIAL REPORTS RECORD RESULTS FOR 1992
FIRST FIDELITY EARNS $89.6 MILLION FOR 4TH QUARTER VS. $57.8 MILLION; FULL YEAR EARNINGS ARE $313.7 MILLION VS. $221.2 MILLION FOR 1991
VIRGINIA BEACH FEDERAL ANNOUNCES CONSOLIDATED EARNINGS FOR 1992
Avondale Financial Corp. Expects to Report a Loss in the Third Quarter of 1997 After Recording Approximately $16.5 Million in Additional Loan Loss...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters