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JOHNSTOWN SAVINGS BANK ANNOUNCES SECOND QUARTER 1993 NET INCOME AND THE DECLARATION OF A $0.05 PER SHARE CASH DIVIDEND

 JOHNSTOWN, Pa., July 21 /PRNewswire/ -- Johnstown Savings Bank (NASDAQ: JSBK) today announced that the bank's net income for the quarter ended June 30, 1993, was $727,000 or $0.37 per share.
 Net income, before provision for income taxes, increased $312,000 or 47.6 percent from $656,000 or $0.34 per share for the three months ended June 30, 1992, to $968,000 or $0.49 per share for the same three-month period in 1993. Net income for the same period in 1992, as restated, was $1.0 million or $0.52 per share. The reported earnings in the second quarter of 1992 included the recognition of an income tax benefit of $350,000 or $0.18 per share. This benefit was related to a change in the method of accounting for income taxes resulting from the bank's adoption of Statement of Financial Accounting Standards No. 109 (SFAS-109), "Accounting for Income Taxes," in 1992.
 For the six months ended June 30, 1993, the bank earned $1.45 million or $0.74 per share. Net income for the first six months of 1993, before provision for income taxes and the cumulative effect of the adoption of SFAS-109, increased $733,000 or 59.8 percent to $1.96 million or $1.00 per share from $1.23 million or $0.63 per share for the six months ended June 30, 1992. For the six months ended June 30, 1992, restated net income was $3.17 million or $1.64 per share. Net income for the period ended June 30, 1992, included a $1.67 million cumulative benefit resulting from the adoption of SFAS-109 and the $350,000 second quarter income tax benefit, noted above.
 The bank also announced that its board of directors declared a second quarter cash dividend of $0.05 per share, payable on Aug. 20, 1993, to stockholders of record as of Aug. 2, 1993.
 Patrick J. Coyne, president and chief executive officer, stated that the bank increased its total assets to $340.7 million at June 30, 1993, as compared to $320.4 million at Dec. 31, 1992, and $296.7 million at June 30, 1992. At June 30, 1993, stockholders' equity was $25.7 million or $13.08 per share. The bank's capital-to-assets ratio was 7.5 percent at June 30, 1993.
 Coyne also noted that the bank's net interest margin, before provisions for loan losses, increased 2.2 percent to $5.3 million for the six months ended June 30, 1993, from $5.2 million for the same period in 1992. Offsetting this increase in net interest income was an increase in the bank's loan loss provision to $940,000 in the first six months of 1993 as compared with $795,000 during the same period of 1992. Coyne stated that the bank's provision for loan losses was reduced in the second quarter of 1993 to $180,000 from $760,000 in the first quarter of the year. The $180,000 provision in the second quarter of 1993 represents a decline of $250,000 or 58.1 percent from the $430,000 provision taken in the same period of 1992.
 Total reserves as a percentage of non-accrual loans, restructured loans and real estate owned increased to 81.8 percent at June 30, 1993, from 47.8 percent at Dec. 31, 1992, and 29.9 percent at June 30, 1992. Non-accrual loans, restructured loans and real estate owned, net of applicable reserves, decreased from $10.7 million at Dec. 31, 1992, and $8.8 million at March 31, 1993, to $5.2 million at June 30, 1993. The bank's allowance for loan losses at June 30, 1993, and Dec. 31, 1992, stood at $4.0 million or 2.5 percent and $4.1 million or 2.6 percent, respectively, of the total loan portfolio. The bank also carried allowances of $1.4 million at June 30, 1993, for additional losses related to real estate acquired through foreclosure as compared with allowances of $2.1 million at Dec. 31, 1992. The bank did not charge to operations any provisions for losses associated with real estate acquired by foreclosure during the first six months of 1993. During the same period in 1992, the bank added $1.0 million in provisions for such losses. Total real estate acquired via foreclosure, net of applicable reserves, was reduced to $1.5 million at June 30, 1993, as compared to $4.6 million at Dec. 31, 1992, and $6.2 million at June 30, 1992.
 Coyne noted that the most significant accomplishment for the bank in the first six months of 1993 was the large decrease in overall non-performing assets and, in particular, real estate acquired by foreclosure. He stated that he expects this trend to continue throughout the remainder of 1993 but cautioned that there remains considerable weakness in national real estate markets.
 Johnstown Savings Bank is a Pennsylvania-chartered, FDIC-insured savings bank which conducts its business through six offices in the Greater Johnstown area and through its wholly-owned subsidiary, Standard Mortgage Corporation of Georgia, located in Atlanta.
 JOHNSTOWN SAVINGS BANK
 Summary of Operating Results
 Quarter Ended June 30 1993 1992
 Net income before taxes $968,000 $656,000
 Income tax expense (benefit) 240,000 (350,000)
 Net income 727,000 1,006,000
 Provision for loan losses 180,000 430,000
 Net income per share $0.37 $0.52
 Average shares outstanding 1,962,150 1,940,150
 Total assets at June 30 $340,708,000 $296,720,000
 Annualized return on
 average assets (ROA)(pct.) 0.86 1.36
 Annualized return on
 average equity (ROE)(pct.) 11.45 17.76
 Six Months Ended June 30 1993 1992
 (restated)
 Net income before taxes (A) $1,959,000 $1,226,000
 Income tax expense (benefit) 512,000 (273,000)
 Income before cumulative benefit from
 change in method of accounting for
 income taxes 1,447,000 1,499,000
 Cumulative benefit from change in
 method of accounting for
 income taxes -- 1,673,000
 Net income 1,447,000 3,172,000
 Provision for loan losses 940,000 795,000
 Net income per share before cumulative
 benefit from change in method of
 accounting for income taxes $0.74 $0.77
 Per share cumulative benefit from change in
 method of accounting for income taxes -- $0.86
 Net income per share $0.74 $1.64
 Average shares outstanding 1,961,122 1,940,150
 Annualized return on average assets
 (ROA)(A)(pct.) 0.87 1.01
 Annualized return on average assets
 (ROA)(pct.) 0.87 2.13
 Annualized return on average equity
 (ROE)(A)(pct.) 11.54 13.41
 Annualized return on average equity
 (ROE)(pct.) 11.54 28.38
 (A) Before cumulative benefit of change in method of accounting for income taxes.
 /delval/
 -0- 7/21/93
 /CONTACT: Patrick J. Coyne, president and CEO, or Walter F. Rusnak, senior vice president and CFO, both of Johnstown Savings Bank, 814-535-8900/
 (JSBK)


CO: Johnstown Savings Bank ST: Pennsylvania IN: FIN SU: ERN

DM-CD -- PG002 -- 3727 07/21/93 07:59 EDT
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Date:Jul 21, 1993
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