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INVESTORS REPORTS RECORD EARNINGS -- EARNINGS INCREASED 102 PERCENT FOR FOURTH QUARTER AND 55 PERCENT FOR YEAR ENDED

 WAYZATA, Minn., Feb. 2 /PRNewswire/ -- Investors Savings Corp. (NASDAQ: INVS) reported record earnings for the year ended Dec. 31, 1992 of $7.8 million or $2.65 per share, up 55 percent from $5.0 million or $2.01 per share the previous year. For the December quarter earnings increased 102 percent to $2.0 million or $.69 per share from $1.0 million or $.36 per share for the December quarter last year.
 James M. Burkholder, president and chief executive officer, indicated that the exceptional performance was attributable to the continued strength of its core operations of retail and mortgage banking. Record net interest income was supported by a favorable interest rate environment as well as an expanding interest-earning asset base which grew by 37 percent during the year. Noninterest income also grew significantly during the year which was attributable, for the most part, to mortgage production which exceeded one billion dollars. The company also successfully completed a debt offering during the fourth quarter, a portion of which was contributed as additional capital to the bank, increasing its core capital to 6.2 percent and its risk-based capital to 11.4 percent at Dec. 31, 1992. "This assures that the bank will be categorized as 'well capitalized' by bank regulators which is the highest level obtainable," said Burkholder.
 Net interest income before the provision for loan losses was a record for the year increasing 35 percent for the quarter and 22 percent for the year to $6.0 million and $22.2 million, respectively. These record performances resulted from a rapidly expanding interest-earning asset base which grew to $782 million at Dec. 31, 1992. This growth was all internally generated assets and, for the most part, consisted of adjustable rate mortgage, home equity and second mortgage loans. In addition, net interest income was positively affected by an expanding net interest margin which was 3.26 percent for the quarter and 3.39 percent for the year. The margin for both the quarter and the year was up slightly from the same periods the previous year when the margin was 3.24 percent and 3.23 percent for the quarter and year, respectively.
 Noninterest income also increased substantially for both periods, up 77 percent to $3.7 million for the quarter and 46 percent to $14.3 million for the year. Again, both were record performances for the company. Income from mortgage banking operations was up 163 percent to $3.5 million for the quarter and 75 percent to $11.2 million for the year compared to the same periods the previous year. A large portion of this increase resulted from a much greater gain on sale of mortgage loans as a result of a more favorable market for the pricing of mortgage loan products and heavy refinance activity. Loan servicing fees were negatively impacted during the quarter and year because of high prepayment experience which resulted in adjustments being made to capitalized servicing rights. The company adjusted its capitalized servicing rights during the fourth quarter by $1.2 million to reflect high prepayment activity and to conform with recent accounting and regulatory guidelines, which take a more conservative approach in accounting for capitalized servicing rights. Loans serviced for others grew a record $321 million or 49 percent during the year resulting in a portfolio at year end of $981 million. Servicing rights sold in the fourth quarter were $29 million compared to $45 million in the December quarter last year. For the year, servicing rights sold were $302 million compared to $299 million during 1991.
 During the quarter and year, residential loan production was up a record 79 percent and 81 percent to $301 million and $1.0 billion, respectively, compared to the same periods the previous year. This increase in volume was due to a lower interest rate environment, a larger volume of refinance activity, and an expanding mortgage operation.
 Nonperforming assets decreased for both the quarter and the year ending the year at $9.3 million. This was a 17 percent decrease from $11.2 million at Dec. 31, 1991. Even though nonperforming assets decreased during the year, the company continues to build its loan loss and real estate loss reserves which ended the year at $3.3 million, up 32 percent from the beginning of the year. Loan quality continues to be excellent with delinquencies and charge offs running below industry averages.
 At Dec. 31, 1992, Investors Savings Corp.'s stockholders' equity totalled $39.1 million, 20 percent above the year end 1991 level of $32.7 million. This is the second consecutive year that stockholders' equity has increased by more than 20 percent during the year. Book value per common share, which does nor include the value of the loan servicing rights portfolio at Dec. 31, 1992 was $12.80. The company reported that, for the entire year, return on average assets reached 1.14 percent and return on average common equity was 24.2 percent. Total assets of the company at Dec. 31, 1992, were $816 million, an increase of $210 million for the year. Deposits at year end were $512 million, while loans in portfolio totalled $710 million.
 Investors Savings Corp. recently announced an increase in its quarterly dividend to $.125 per share with the first quarterly payment being made on March 15, 1993 to shareholders of record on Feb. 15, 1993. This is a 56 percent increase from the quarterly dividend rate that had been paid in 1992 of $.08 per share.
 Investors Savings Corp. is a savings and loan holding company whose principal asset is Investors Saving 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. and two residential mortgage production offices in suburban Chicago. Investors Savings Corp. shares are traded on the NASDAQ stock market under the symbol INVS.
 INVESTORS SAVINGS CORP.
 FINANCIAL INFORMATION
 (In thousands, except EPS)
 Three Months Ended Year Ended
 12/31/92 12/31/91 12/31/92 12/31/91
 Net interest income(a) $6,023 $4,477 $22,162 $18,139
 Noninterest income(b) 3,670 2,077 14,255 9,756
 Total revenue(c) 17,541 14,997 66,771 64,549
 Earnings before income
 tax expense 3,409 1,683 13,039 8,433
 Income tax expense 1,367 673 5,227 3,397
 Net earnings 2,042 1,010 7,812 5,036
 Net earnings available for
 common stockholders $1,800 $905 $6,844 $4,931
 Earnings per common share $.69 $.36 $2.65 $2.01
 Net interest rate spread (pct.) 3.07 3.09 3.19 3.12
 Net interest margin (pct.) 3.26 3.24 3.39 3.23
 (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.
 -0- 2/2/93
 /CONTACT: James M. Burkholder of Investors Savings, 612-475-8500/
 (INVS)


CO: Investors Savings Corp. ST: Minnesota IN: FIN SU: ERN

KH -- MN008 -- 1873 02/02/93 12:14 EST
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