Printer Friendly

LANDMARK SAVINGS REPORTS EARNINGS OF $5.1 MILLION FOR 1991, INCLUDING FOURTH QUARTER NET INCOME OF $829,000

 LANDMARK SAVINGS REPORTS EARNINGS OF $5.1 MILLION FOR 1991,
 INCLUDING FOURTH QUARTER NET INCOME OF $829,000
 PITTSBURGH, Jan. 29 /PRNewswire/ -- Landmark Savings Association (AMEX: LSA) today reported 1991 net income of $5.1 million or $2.15 per common share compared to net income of $1.0 million or $.44 per common share for 1990.
 Net income for the fourth quarter of 1991 was $829,000 or $.35 per common share compared to a 1990 fourth quarter loss of $4.1 million or $1.71 loss per common share.
 J. Richard Eshleman, president and chief executive officer, said, "I am very pleased with the 1991 operating results, particularly in light of the operating restrictions that were imposed on Landmark by the capital directive from the Office of Thrift Supervision ("OTS")." In June 1991, Landmark announced that it had been ordered by the OTS to sign a capital directive due to the failure to meet all of the then existing regulatory capital requirements. The capital directive contains provisions which restrict certain activities and prohibit others. Eshleman continued, "Our core earnings were very good as the interest rate margin remained strong all year long. I expect the margin to narrow in 1992 as variable rate loans continue to reprice downward and fixed rate loans are refinanced to lower rates. I also anticipate continued improvement in the quality of assets."
 Improved net income for 1991 was the combined result of lower provisions for credit losses, higher net interest income and improved mortgage banking results, somewhat offset by lower gains on sales of loans, securities and branches, higher non-interest expenses and a write-off of a portion of purchased mortgage servicing rights. Also contributing to higher net income in 1991 was lower income tax expense as a result of recognition of deferred tax assets that offset the current year's provision for taxes.
 Nonperforming assets, including real estate owned and in-substance foreclosures, were $29.3 million at Dec. 31, 1991, compared to $31.4 million at Sept. 30, 1991, and $36.4 million at Dec. 31, 1990. This reflects decreases of $2.1 million during the fourth quarter of 1991 and $7.1 million, or approximately 20 percent for the year. "This was the third consecutive quarter that nonperforming assets declined and we are quite pleased with the trend. Due to ongoing uncertainty about the general economic outlook, however, we maintained the level of general loan loss reserves," noted Eshleman. Total general loan loss reserves were $13.0 million or 44.3 percent of nonperforming assets at Dec. 31, 1991, compared to $13.0 million or 41.4 percent at Sept. 30, 1991, and $11.0 million or 30.2 percent at Dec. 31, 1990.
 Provisions for credit losses were $7.6 million in 1991, compared to $13.0 million in 1990. Fourth quarter provisions were $1.5 million in 1991 compared to $9.0 million in 1990, reflecting the improvement in asset quality. Net charge-offs in 1991 were $5.7 million and $1.5 million for the year and fourth quarter, respectively, compared to $6.2 million and $3.6 million for the same periods in 1990. Nonperforming loans totalled $18.9 million at year end 1991 compared to $22.7 million at Sept. 30, 1991, and $32.2 million at year end 1990. Provisions for investment securities losses were $59,000 in 1991 compared to $1.4 million in 1990. Net charge-offs for investment securities were $569,000 in 1991. There were no investment security charge-offs in 1990.
 Net interest income was $32.9 million and $7.9 million for the year and fourth quarter of 1991 compared to $31.4 million and $8.1 million for the same periods in 1990. Net interest income reflected an improved interest rate margin which averaged 2.54 percent for the year and 2.53 percent during the fourth quarter of 1991 compared to 2.39 percent and 2.46 percent for the same periods in 1990. Partially offsetting the improvement in the margin was the impact of Landmark's smaller asset size. Average interest-earning assets declined by $66.2 million during 1991.
 Non-interest income was $7.5 milion and $1.6 million for the 12 and three months ended Dec. 31, 1991, respectively, compared to $7.8 million and $1.8 million for the same periods in 1990. The decreases were primarily due to lower net servicing fees on real estate loans serviced for others and lower deposit account fees.
 Gains on sales of loans, securities and loan servicing were $3.7 million $1.1 million for the 12 and three months ended Dec. 31, 1991, respectively, compared to $5.6 million and $2.3 million for the same periods in 1990. The annual results for 1990 included gains of $909,000 on the sales of branch ov$tQ6 Y. than 1990 due to a more favorable interest rate environment.
 Non-interest expenses were $29.5 million and $7.6 million for the 12 and three months ended Dec. 31, 1991, respectively, compared to $29.2 million and $7.0 million for the same periods in 1990. The increase in 1991 was primarily the result of higher expenses for real estate owned and data processing. The balance of real estate owned and in-substance foreclosures increased to $10.2 million at Dec. 31, 1991, from $3.8 million at Dec. 31, 1990, reflecting the recessionary conditions in the economy and a higher level of foreclosures.
 Results for 1991 included a $1.65 million charge to reduce the balance of purchased mortgage servicing rights ("PMSRs"). The OTS directed that PMSRs related to loans obtained from certain independent correspondent originators be expensed. These PMSRs were previously capitalized and amortized as an adjustment of loan servicing revenues.
 The provision for income taxes was $40,000 in 1991 vs. $1.2 million in 1990. The effective tax rate for 1991 was less than 1 percent because Landmark's tax liability was offset by the recognition of deferred tax benefits resulting from timing differences. The timing differences resulted primarily from items Landmark has already recognized for income tax purposes during the current year but will recognize such items for financial reporting purposes in future periods.
 As previously announced, the boards of directors of Landmark and Integra Financial Corporation (NASDAQ: ITGR) have approved a definitive merger agreement. The merger, which is subject to the approval of Landmark's stockholders, and various regulatory agencies, is expected to be completed in the second quarter of 1992.
 The merger of the two companies is expected to resolve Landmark's capital shortage in accordance with the order to raise capital contained in the OTS directive under which Landmark has been operating since June 1991. Although profitable and solvent, Landmark had been unable to obtain OTS approval of an amended capital plan that showed Landmark would meet the capital requirements by the deadline established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989. As of Dec. 31, 1991, Landmark was in compliance with two of the three regulatory capital requirements then in effect. Landmark fell short of the risk-based requirement by $1.5 million on Dec. 31, 1991.
 Landmark Savings Association is a Pennsylvania state-chartered, publicly owned savings association with assets of $1.4 billion. It is the second largest independent stock thrift institution in Pennsylvania. Landmark common stock is listed on the American Stock Exchange (AMEX), trades under the symbol "LSA," and is reported in the financial press as "LdmkSv."
 LANDMARK SAVINGS ASSOCIATION
 Summary of Condensed Consolidated Financial Information
 (Dollars in thousands except per share amounts)
 For the period Year Quarter
 ended Dec. 31, 1991 1990 1991 1990
 Net interest income $32,871 $31,439 $7,877 $8,118
 Provision for
 loan losses (7,646) (13,023) (1,455) (8,962)
 Provision for investment
 securities losses (59) (1,351) -- (1,351)
 Non-interest income 7,491 7,809 1,645 1,806
 Gain on sales of loans
 securities and loan
 servicing:
 Portfolio and other 2,793 4,905 1,054 1,962
 Mortgage banking, net 898 698 85 372
 Gain on sales of branches -- 909 -- --
 Non-interest expenses (29,533) (29,167) (7,618) (6,976)
 Write-off of purchased
 mortgage servicing
 rights (1,650) -- (1,650) --
 Income (loss) before
 income taxes 5,165 2,219 (62) (5,031)
 Income tax (expense)
 benefit (40) (1,185) 891 980
 Net income (loss) 5,125 1,034 829 (4,051)
 Financial ratios:
 Return on average
 assets (pct.) 0.35 0.07 0.23 (A)
 Return on average
 equity (pct.) 11.03 2.28 6.84 (A)
 Per common share
 Income (loss) before
 income taxes $2.17 $0.94 $(0.02) $(2.12)
 Income tax (expense)
 benefit $(0.02) $(0.50) $0.37 $0.41
 Net income (loss) $2.15 $0.44 $0.35 $(1.71)
 Weighted average common
 shares outstanding 2,379,150 2,372,257 2,381,790 2,374,571
 At period end Dec. 31, 1991 1990
 Total assets $1,412,233 $1,463,307
 Cash and investment
 securities 207,519 153,623
 Mortgage-backed securities 246,730 213,151
 Loans receivable 879,325 1,014,940
 Excess of cost over net
 assets acquired 23,989 25,678
 Deposits 1,085,955 1,114,364
 Borrowings 242,697 268,653
 Stockholders' equity 48,808 43,395
 Loans serviced for others 972,823 888,201
 (A) Not meaningful - loss.
 -0- 1/29/92
 /CONTACT: Valerie A. Hagedorn, 412-553-7744, or Betsy Fitzpatrick, 412-553-7709, both of Landmark Savings/
 (LSA ITGR) CO: Landmark Savings Association ST: Pennsylvania IN: FIN SU: ERN


CD -- PG001 -- 4607 01/29/92 09:39 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1992
Words:1594
Previous Article:STATEMENT BY LEE IACOCCA, CHAIRMAN OF THE BOARD OF CHRYSLER CORPORATION, IN RESPONSE TO PRESIDENT BUSH'S STATE OF THE UNION ADDRESS
Next Article:NEW CONTRACT BRINGS THERMO INSTRUMENT'S BOSTON HARBOR WORK TO MORE THAN $1 MILLION
Topics:


Related Articles
CRAGIN REPORTS $26.4 MILLION IN YEARLY EARNINGS
WASHINGTON MUTUAL ANNOUNCES HIGHER EARNINGS, 50-PERCENT STOCK DIVIDEND, INCREASED CASH DIVIDEND
VALLEY NATIONAL BANCORP REPORTS STRONG 1991 FOURTH QUARTER AND YEAR END RESULTS
AMERICAN SAVINGS OF FLORIDA ANNOUNCES EARNINGS FOR THE YEAR ENDED DEC. 31, 1991
LIFE TECHNOLOGIES ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 1991
CYBEROPTICS REPORTS 1991 RESULTS; COMPANY SHOWS 69 PERCENT GROWTH IN REVENUES
SECURITY REPORTS FOURTH QUARTER AND YEAR-END RESULTS
MAYFLOWER CO-OPERATIVE ANNOUNCES FIRST QUARTER EARNINGS
SEABOARD BANCORP, INC. ANNOUNCES RESULTS OF OPERATIONS FOR FIRST QUARTER
Iroquois Bancorp Reports 1998 Earnings.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters