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INVESTORS BANK CORP. REPORTS RECORD SECOND QUARTER EARNINGS UP 27 PERCENT TO $.81 PER COMMON SHARE

 WAYZATA, Minn., July 22 /PRNewswire/ -- Investors Bank Corp. (NASDAQ: INVS), the parent company of Investors Savings Bank, F.S.B., has reported record second quarter earnings, up 27 percent from the previous year. Net income for the three months ended June 30 totaled $2.4 million or $.81 per share, compared to income of $1.9 million or $.65 per share for the June quarter last year. For the first six months of 1993, Investors reported record earnings of $5.0 million or $1.68 per share compared to $3.8 million or $1.27 per share for the same period the previous year.
 For the first six months of the year, the company achieved a return on average assets of 1.21 percent and a return on average common equity of 27.3 percent. Total assets of the company at June 30, 1993 were $906 million, an increase of $90 million from Dec. 31, 1992. Deposits at June 30 were up $35 million to $547 million.
 "The company has had another excellent earning quarter and, combined with the record earnings from the first quarter, has set the stage for another high performance year," said James M. Burkholder, presd?ent and CEO. This quarter's performance was supported by a 20 percent increase in net interest income resulting, for the most part, from an expanding interest-earning asset base and a 17 percent increase in noninterest income, the majority of which resulted from fee income from the mortgage banking operations. Fee income from mortgage operations was up 17 percent during the quarter even through no servicing rights were sold. This resulted in a significant increase in the portfolio of loans serviced for others during the quarter, which grew 23 percent to $1.2 billion at June 30, 1993. Burkholder also stated that the company had record residential production of $376 million for the quarter.
 Net interest income increased 20 percent to $6.5 million from the same quarter last year. The company's average interest-earning assets increased by 34 percent to $837 million for the quarter from the same period the previous year, while the net interest margin decreased from 3.48 percent to 3.12 percent. For the first half of 1993, net interest income and net interest margin were $12.4 million and 3.08 percent, respectively, compared with $10.4 million and 3.48 percent for the 1992 first half. The increases in net interest income for both the quarter and the first half of 1993 were due to the growth in interest- earning assets.
 Noninterest income totaled $4.2 million for the quarter, up 17 percent from $3.6 million for the 1992 second quarter. The increase was due entirely to the gain on sale of mortgage loans which was $2.8 million, up 191 percent from $1.0 million for the same period last year. As a result of this strong gain on the sale of mortgage loans, it was not necessary to sell any loan servicing rights during the second quarter. Consequently, no gain was recorded from the sale of servicing rights while $1.4 million was recognized in the June quarter of 1992. Year-to-date noninterest income totaled $8.5 million, up 21 percent from $7.0 million in the first half of 1992. This increase, for the most part, was due to the gains recognized from the sale of mortgage loans which were $3.9 million, up 117 percent from $1.8 million for the six month period ended June 30, 1992. In addition, since no servicing rights were sold in the June 1993 quarter, gains on sale of loan servicing rights were $1.8 million, down 39 percent from $2.9 million for the same periods last year. Loan servicing fees were up by 9 percent to $568 thousand for the June quarter and up 17 percent to $1.4 million for the six month period. The bank took charges against its loan servicing fees of $414 thousand in the June quarter and $617 thousand for the six months ended June 30, 1993 to reflect higher than expected prepayment experience during the periods. Noninterest income was positively impacted by fee income from the bank's title insurance agency, which started in mid 1992 and recorded fee income for the June quarter of $270 thousand and for the first six months of 1993 of $356 thousand.
 Noninterest expenses for the quarter were up by 16 percent from the same quarter the previous year, the majority of which were variable costs associated with the origination of residential mortgage loans. In spite of high mortgage volumes, the company has been able to avoid long term increases in operating costs by utilizing its existing support structure more efficiently.
 The company's mortgage lending activity continued to prosper as a result of the low and stable interest rate environment in which it is operating resulting in significant increase in mortgage loan originations for both the quarter and the first six months of the year. For the June quarter, loan closings were up 48 percent to $337 million and loan application volume was up 52 percent to $345 million compared to the previous year. For the first six months of the year, loan closings were up 23 percent to $503 million.
 Nonperforming assets were $9.1 million at June 30, similar to the March quarter, but down significantly by $1.8 million from June 30, 1992. The decrease in nonperforming assets from June 30, 1992 was primarily the result of a decrease in residential nonperforming loans.
 Investors Savings Bank, F.S.B., a subsidiary of the company, recently entered into a purchase agreement to open its eleventh retail bank, which will be located in St. Louis Park, Minn. The bank anticipates that this new office will open for business early in the fall of 1993. In addition, the bank has recently announced the opening of its first Wisconsin mortgage banking office in Waukesha, a suburb of Milwaukee.
 The board of directors declared the payment of its regular quarterly cash dividend on its common stock. Shareholders of record as of Aug. 16, 1993 will receive a cash dividend of $.125 per share to be paid Sept. 15, 1993.
 Investors Bank Corp. is a savings and loan holding company whose principal asset is Investors Savings Bank, F.S.B., a federally chartered savings bank with nine retail banking offices and six residential mortgage production offices in the Twin Cities metropolitan area, one residential mortgage production office in Duluth, Minn., three residential mortgage production offices in suburban Chicago, and one residential mortgage production office in suburban Milwaukee. Investors Bank Corp. shares are traded on the NASDAQ stock market under the symbol INVS.
 INVESTORS BANK CORP. (INVS)
 Financial Information (Dollars in 000's except EPS)
 For the periods ended June 30
 Three months Six months
 6/30/93 6/30/92 6/30/93 6/30/92
 Net interest income (a) $6,547 $5,461 $12,392 $10,381
 Noninterest income (b) 4,169 3,563 8,532 7,027
 Total revenue (c) 18,715 16,559 36,583 32,200
 Earnings before income
 Tax expense and cumulative
 effect of accounting change 4,074 3,200 8,213 6,294
 Income tax expense 1,634 1,283 3,292 2,523
 Cumulative effect of accounting
 change (d) -- -- 125 --
 Net earnings $2,440 $1,917 $5,046 $3,771
 Earnings per common share:
 Before cumulative effect of
 accounting change $.81 $.65 $1.63 $1.27
 Cumulative effect of
 accounting change -- -- .05 --
 Net $.81 $.65 $1.68 $1.27
 Net interest rate spread
 (percents) 2.88 3.27 2.86 3.27
 Net interest margin
 (percents) 3.12 3.48 3.08 3.48
 Notes:
 (a) Net interest income is the difference between interest earned on the bank's loan and investment portfolios and interest paid on its deposits and borrowings.
 (b) Noninterest income includes mortgage banking revenues, loan servicing fees, fees on annuity sales and other income.
 (c) Total revenue is the total of all interest earned and all noninterest income.
 (d) During 1993, the bank adopted the Statement of Financial Accounting Standards No. 109 which requires change in the method of accounting for income taxes.
 -0- 7/22/93
 /CONTACT: James M. Burkholder of Investors Bank Corp., 612-475-8500/
 (INVS)


CO: Investors Bank Corp., Investors Savings Bank, F.S.B. ST: Minnesota IN: FIN SU: ERN

DB -- MN011 -- 4505 07/22/93 11:50 EDT
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Date:Jul 22, 1993
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