INVESTORS SAVINGS REPORTS RECORD QUARTERLY EARNINGS
INVESTORS SAVINGS REPORTS RECORD QUARTERLY EARNINGS WAYZATA, Minn., April 22 /PRNewswire/ -- Investors Savings Corp.
(NASDAQ: INVS) reported record quarterly earnings of $1.9 million or $.62 per share for the quarter ended March 31, 1992, compared to $1.3 million or $.56 per share for the same quarter the previous year.
"The basic fundamentals of our business remain very strong with both net interest income and noninterest income improving from the March quarter of the previous year," said James M. Burkholder, president and chief executive officer. "In addition, the company set a quarterly record for total loans closings due in part to the high volume of mortgage lending activity in the current favorable interest rate environment. This volume is also providing a large flow of adjustable rate mortgages which will be held in the company's permanent loan portfolio and, when combined with the record quarter in the origination of home equity and other consumer loans, will result in an increase in the earning asset base of the company. We expect that the effects of these events will have a positive impact on operating results for the remainder of the year," said Burkholder. Net interest income, after the provisions for loan loss reserves, increased 12 percent to $4.7 million with noninterest income up 39 percent to $3.5 million from the same quarter the previous year. The company's net interest margin increased significantly to 3.49 percent from 3.06 percent in the March quarter last year while average interest- earning assets declined by 2 percent to $559 million compared to the same quarter last year, principally because of a high volume of mortgage payoffs and refinancings during 1991. Residential mortgage loan closings for the quarter were up 84 percent to $181 million while mortgage loans purchased through the Correspondent Department were up 79 percent to $23.6 million. The significant increase in mortgage production is due to a lower interest rate environment and a larger volume of refinance mortgage activity. The company's portfolio of loans serviced for others continued to increase and totaled $682 million at the end of the quarter, up 24 percent from $550 million at March 31, 1991. Nonperforming assets were $12.2 million at March 31, up from $11.2 million at Dec. 31, 1991. The increase in nonperforming assets from the December quarter is mainly concentrated in the residential real estate loan category. Although the company continues to resolve and dispose of nonperforming loans, a larger than normal number of residential mortgage loans moved into the nonperforming loan category during the March quarter. Looking ahead, the number of delinquencies on residential loans that have not reached the nonperforming status dropped significantly in the March quarter which should indicate little additional increase in residential nonperformers in the near term. In addition, the company had one commercial loan for approximately $300,000 move into the nonperforming category during the quarter. The company feels that it is well reserved for nonperforming assets and no significant losses are expected over and above the current reserves. Investors Savings Corp. is a savings and loan holding company whose principal asset is Investors Savings Bank, F.S.B., a federally chartered savings bank with eight retail banking offices and five residential mortgage production offices in the Twin Cities metropolitan area, one residential mortgage production office in Duluth, Minn. and one residential mortgage production office in suburban Chicago. INVESTORS SAVINGS CORP. FINANCIAL INFORMATION (In thousands, except per share amounts) Three Months Ended 3/31/92 3/31/91 Net interest income (a) $4,732 $4,211 Noninterest income (b) 3,464 2,490 Total revenue (c) 15,642 17,098 Earnings before income tax expense 3,094 2,202 Income tax expense 1,240 893 Net earnings 1,854 (d) 1,309 Earnings per share $.62 (d) $.56 Net interest rate spread (pct) 3.27 3.00 Net interest margin (pct) 3.49 3.06 (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 less the provision for loan losses. (b) Noninterest income includes gain on sales of loan servicing rights, gain on sales of mortgage loans, loan servicing fees, other lending fees, fees on annuity sales and net rental income from foreclosed real estate. (c) Total revenue is the total of all interest earned and all noninterest income. (d) Net income for the quarter reflects the dilutive effect of the exchange offering completed in the Dec. 31, 1991 quarter. -0- 4/22/92 /CONTACT: James M. Burkholder of Investors Savings, 612-475-8500/ (INVS) CO: Investors Savings Corp. ST: Minnesota IN: FIN SU: ERN
KH -- MN007 -- 1230 04/22/92 11:42 EDT
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|Date:||Apr 22, 1992|
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