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JEFFERSON SAVINGS BANCORP, INC. REPORTS RESULTS

 BALLWIN, Mo., July 27 /PRNewswire/ -- Jefferson Savings Bancorp, Inc. (the company) (NASDAQ-NMS: JSBA), the holding company for Jefferson Savings and Loan Association (the Association), today reported net income for the second quarter of 1993 of $1,085,000 or 24 cents per share. This compares with net income of $1,069,000 for the second quarter of 1992. The company reported net income of $2,335,000 for the six months ended June 30, 1993, compared to $2,297,000 for the corresponding period a year ago.
 Return on average assets and return on average equity were .95 percent and 6.95 percent, respectively, for the second quarter of 1993 compared to .97 percent and 14.19 percent for the second quarter of 1992. For the six-month period, return on average assets and return on average equity were 1.06 percent and 9.37 percent, respectively, in 1993 compared to 1.03 percent and 15.55 percent in 1992. The decline in return on average equity during 1993 was due to the significant infusion of capital from the recent stock conversion discussed below. The company's book value per share at June 30, 1993, was $15.75.
 Jefferson Savings and Loan Association converted from a state chartered mutual savings and loan association to a state chartered stock association and became a wholly owned subsidiary of Jefferson Savings Bancorp, Inc., on April 8, 1993. At the date of conversion, the company completed the sale of 4,298,125 shares of common stock to its Employee Stock Ownership Plan (ESOP) and to the Association's depositors for $10.00 per share. In addition, the company sold 171,924 shares of common stock to its management recognition plans (MRPs) for $10.00 per share. Net proceeds for the above transactions, after deducting offering expenses, underwriting fees and amounts retained to fund the ESOP and the MRPs, were $37.3 million.
 The company's total assets grew 11.6 percent, from $418.2 million at Dec. 31, 1992, to $466.8 million at June 30, 1993. The increase was primarily the result of the successful completion of the stock conversion and the purchase of mortgage-backed securities using $28.7 million of borrowed money. These increases were slightly offset by a decline in the size of the company's loan portfolio.
 Net interest income for the second quarter of 1993 increased 2.7 percent in comparison to the second quarter of 1992. The increase was attributable to an increase in the ratio of average interest-earning assets to average interest-bearing liabilities due to the investment of the net proceeds from the stock conversion. This was partially offset by a decrease in the company's interest rate spread as rates paid on savings deposits remained relatively flat during the second quarter of 1993, while mortgage loan rates on existing loans adjusted downward due to the periodic interest rate adjustment feature of the loans.
 The provision for losses on loans for the second quarter of 1993 was $60,000 compared to $200,000 for the like period in 1992. The reduced level of provision during 1993 is consistent with the decline in the size of the loan portfolio. The higher provision for losses during 1992 was determined to be necessary to maintain a prudent level of general loan loss reserves.
 At June 30, 1993, the allowance for losses on loans was $3,070,000, which represented 1.10 percent of total loans, compared to $2,974,000 or 1.04 percent of total loans at Dec. 31, 1992. The interest in the ratio of allowance for losses to total loans during 1993 is due primarily to the decline in the size of the loan portfolio. The ratio of nonaccruing loans to total loans was .20 percent at June 30, 1993, compared to .21 percent at Dec. 31, 1992.
 Noninterest income for the second quarter of 1993 increased 21.3 percent in comparison to the second quarter of 1992. The increase was attributable to an increase in fee income from sales of financial services to the company's customers and an increase in the gain on sale of loans. The gain on sale of loans represents origination and other fees retained by the company in connection with the origination of fixed-rate loans for sale to institutional investors.
 Non-interest expense for the second quarter of 1993 increased 22.6 percent compared to the second quarter of 1992. The increase was the result of an increase in compensation and employee benefits expense resulting from the new employee benefit plans adopted in connection with the conversion and an aggressive advertising campaign during 1993 to generate loan volume. This increase was somewhat offset by a decrease in federal deposit insurance premiums.
 Jefferson Savings Bancorp, Inc., has nine offices located in the St. Louis area. The stock of Jefferson Savings Bancorp, Inc., is listed on the NASDAQ National Market System under the symbol JSBA.
 JEFFERSON SAVINGS BANCORP, INC. AND SUBSIDIARY
 Condensed Consolidated Balance Sheets
 (Dollars in thousands)
 6/30/93 12/31/92
 (Unaudited)
 ASSETS
 Cash, interest-bearing deposits
 and federal funds sold $ 24,614 $ 17,151
 Investment securities (A) 50,370 63,574
 Mortgage-backed securities, net 96,643 36,748
 Loans receivable, net (B) 279,941 285,104
 Investment in real estate, net 8,387 8,673
 Office properties and equipment, net 3,828 3,941
 Accrued income and other assets $ 3,057 $ 3,026
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities:
 Savings deposits $359,166 $379,190
 Borrowed money 28,683 --
 Accrued expenses and other liabilities 6,585 6,379
 Total liabilities 394,434 385,569
 Stockholders' equity:
 Preferred stock ($.01 par value):
 authorized 20 million shares; none issued -- --
 Common stock ($.01 par value):
 authorized 20 million shares; issued
 and outstanding 4,470,049 shares
 at June 30, 1993, and none at
 Dec. 31, 1992 45 --
 Paid-in capital 42,436 --
 Retained earnings 34,983 32,648
 Total 77,464 32,648
 Unamortized restricted stock awards (1,619) --
 Guarantee of ESOP indebtedness (3,439) --
 Total stockholders' equity 72,406 32,648
 Total $466,840 $418,217
 (A) -- Includes stock in Federal Home Loan Bank.
 (B) -- Includes loans held for sale.
 JEFFERSON SAVINGS BANCORP, INC. AND SUBSIDIARY
 Condensed Consolidated Statements of Income (Unaudited)
 (In thousands, except per share data)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Interest and dividend income $7,061 $8,509 $14,124 $17,529
 Interest expense 3,497 5,040 7,308 10,465
 Net interest income 3,564 3,469 6,816 7,064
 Provision for losses on loans 60 200 120 451
 Net interest income after
 provision for losses on
 loans 3,504 3,269 6,696 6,613
 Non-interest income:
 Gain on sale of loans, net 53 22 63 88
 Gain on real estate operations 194 180 412 402
 Other 157 131 290 293
 Total non-interest income 404 333 765 783
 Non-interest expense - general
 and administrative:
 Compensation and
 employee benefits 1,329 938 2,197 1,787
 Occupancy 307 294 615 593
 Federal insurance premiums 169 233 339 465
 Other 426 355 803 691
 Total non-interest expense 2,231 1,820 3,954 3,536
 Income before income taxes 1,677 1,782 3,507 3,860
 Income tax expense 592 713 1,172 1,563
 Net income $1,085 $1,069 $ 2,335 $ 2,297
 Earnings per share (A) $0.24 NA NA NA
 (A) -- Earnings per share information for periods prior to the quarter ended June 30, 1993, is not applicable. The company completed its initial public stock offering on April 8, 1993.
 JEFFERSON SAVINGS BANCORP, INC. AND SUBSIDIARY
 Key Operating Ratios
 (In percent, except per share figures)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Earnings per share (A) $0.24 NA NA NA
 Return on average equity (B) 6.95 14.19 9.37 15.55
 Return on average assets (B) 0.95 0.97 1.06 1.03
 Net yield on average
 interest-earning assets (B) 3.23 3.26 3.23 3.29
 Interest rate spread (B) 2.81 3.00 2.88 3.05
 Average interest-earning
 assets to average interest-
 bearing liabilities 113.31 105.38 110.00 105.01
 Non-interest expense to
 average assets (B) 1.95 1.65 1.80 1.59
 At 6/30/93 At 12/31/92
 Book value per share (A) $ 15.75 NA
 Equity to total assets 15.51 7.81
 Allowance for loan losses
 to non-accruing loans 561.23 502.38
 Allowance for loan losses
 to total loans 1.10 1.04
 Non-accruing loans to total loans 0.20 0.21
 Restructured and non-accruing
 loans and foreclosed assets,
 net to total assets 2.40 2.77
 (A) -- Per share information for periods prior to the quarter ended June 30, 1993, is not applicable. The company completed its initial public stock offering on April 8, 1993.
 (B) -- Ratios for interim periods have been annualized.
 -0- 7/27/93
 /CONTACT: Paul J. Milano, chief financial officer of Jefferson Savings Bancorp, 314-227-3000/
 (JSBA)


CO: Jefferson Savings Bancorp, Inc. ST: Missouri IN: FIN SU: ERN

GK-TS -- NY057 -- 6321 07/27/93 14:32 EDT
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