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JOHNSTOWN SAVINGS BANK ANNOUNCES THIRD QUARTER EARNINGS

 JOHNSTOWN, Pa., Oct. 20 /PRNewswire/ -- Johnstown Savings Bank (NASDAQ: JSBK) today announced that the bank's net earnings increased 28.7 percent in the third quarter of 1993 as compared to the same period in 1992. The bank reported consolidated earnings of $802,000 or $0.41 per share for the quarter ended Sept. 30, 1993, as compared to restated earnings of $623,000 or $0.32 per share for the same period in 1992. The bank also announced the declaration of a third quarter dividend in the amount of $0.05 per share. The dividend will be payable on Nov. 19, 1993, to stockholders of record on Nov. 1, 1993.
 The bank's earnings, before provision for income taxes and the cumulative effect arising from the adoption of Statement of Financial Accounting Standards No. 109 (SFAS-109), "Accounting for Income Taxes," increased $985,000 or 49.8 percent from $1,978,000 for the nine months ended Sept. 30, 1992, to $2,963,000 for the same nine-month period in 1993. For the nine months ended Sept. 30, 1993, the bank reported net earnings of $2,249,000 or $1.15 per share which represents a decrease of 40.7 percent in comparison to the reported net earnings of $3,795,000 or $1.96 per share for the corresponding nine-month period in 1992. Earnings for the nine months ended Sept. 30, 1992, were increased by $1,673,000 or $0.86 per share as a result of the cumulative effect of a change in accounting method for income taxes arising from the adoption of SFAS-109. Without this extraordinary income credit, the bank's after- tax earnings for the nine months ended Sept. 30, 1992, would have been $2,122,000 or $1.09 per share.
 The bank announced that total assets increased to $338.7 million at Sept. 30, 1993, as compared to $320.4 million at Dec. 31, 1992, and $314.7 at Sept. 30, 1992. As a result of the bank's profitability in the first nine months of the year, the bank's book value per share increased to $13.62 at Sept. 30, 1993.
 Patrick J. Coyne, president and chief executive officer, noted that earnings for the third quarter of 1993 in comparison to the same quarter of 1992 were enhanced by $548,000 in additional gains on the sale of investments and $387,000 in additional gains on the sale of loans, as compared with the previous year. Coyne explained that loan sale gains are becoming more a part of the bank's "core operations" as the bank's mortgage banking activities increase. He also noted that the bank has taken certain investment gains in order to take advantage of available tax loss carryforwards. Partially offsetting these additional earnings was a $434,000 decrease in mortgage servicing income (net of amortization expense for the cost of purchased mortgage servicing rights), a $236,000 increase in operating expenses, and a $73,000 increase in the provision for income taxes. Coyne noted that the decrease in net mortgage servicing revenues was due primarily to increased amortization expense relating to the cost of the bank's mortgage servicing
portfolio. Amortization expense was increased in order to recognize the effects of accelerated refinancings of serviced loans within the bank's residential mortgage loan servicing portfolio. The rate of mortgage refinancings has increased nationwide as a result of the fall in mortgage rates to historically low levels over the past year.
 Coyne noted that, during the third quarter of 1993, the bank continued to make progress in reducing its level of problem assets. The bank's total reserves as a percent of non-performing assets increased to 91.0 percent at Sept. 30, 1993. Coyne stated that the bank's level of non-accrual loans, restructured loans and real estate owned, net of applicable reserves, decreased from $10.7 million at Dec. 31, 1992, and $5.2 million at June 30, 1993, to $4.6 million at Sept. 30, 1993. The bank's allowance for loan losses at Sept. 30, 1993, and Dec. 31, 1992, stood at $4.1 million or 2.6 percent of the total loan portfolio. The bank also carried allowances for losses and other charges associated with real estate acquired by foreclosure of $1.4 million and $2.1 million at Sept. 30, 1993, and Dec. 31, 1992, respectively.
 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 Sept. 30 1993 1992
 Net income before taxes $1,004,000 $752,000
 Income tax expense 202,000 129,000
 Net income 802,000 623,000
 Provision for loan losses 72,000 280,000
 Net income per share $0.41 $0.32
 Average shares outstanding 1,966,150 1,940,150
 Total assets at Sept. 30 $338,719,000 $314,704,000
 Annualized return on average
 assets (ROA) (pct.) 0.93 0.83
 Annualized return on average
 equity (ROE) (pct.) 12.35 9.87
 Restated
 Nine Months Ended Sept. 30 1993 1992
 Net income before taxes (A) $2,963,000 $1,978,000
 Income tax expense (benefit) 714,000 (144,000)
 Income before cumulative benefit
 from change in method of accounting
 for income taxes 2,249,000 2,122,000
 Cumulative benefit from change in
 method of accounting for income taxes -- 1,673,000
 Net income 2,249,000 3,795,000
 Provision for loan losses 1,012,000 1,075,000
 Net income per share before cumulative
 benefit from change in method of
 accounting for income taxes $1.15 $1.09
 Per share cumulative benefit from change
 in method of accounting for income taxes -- $0.86
 Net income per share $1.15 $1.96
 Average shares outstanding 1,962,817 1,940,150
 Annualized return on average assets
 (ROA) (pct.) (A) 0.89 0.94
 Annualized return on average assets
 (ROA) (pct.) 0.89 1.68
 Annualized return on average equity
 (ROE) (pct.) (A) 11.82 11.76
 Annualized return on average equity
 (ROE) (pct.) 11.82 21.03
 (A) Before cumulative benefit of change in method of accounting for income taxes.
 /delval/
 -0- 10/20/93
 /CONTACT: Patrick J. Coyne, president & CEO, or Walter F. Rusnak, senior vice president & CFO, of Johnstown Savings Bank, 814-535-8900/
 (JSBK)


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

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Date:Oct 20, 1993
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