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LGF BANCORP REPORTS RESULTS

 LGF BANCORP REPORTS RESULTS
 LAGRANGE, Ill., Aug. 11 /PRNewswire/ -- LGF Bancorp, Inc.


(NASDAQ-NMS: LGFB), the holding company of LaGrange Federal Savings and Loan Association, today announced consolidated net income of $777,000, or $0.42 per share, for the second quarter ended June 30, 1992.
 This compared to consolidated net income of $939,000 for the second quarter ended June 30, 1991. The decrease in net income for the second quarter was due to an increase in other expenses, primarily from the stock conversion which was partially offset by the improved net interest income and the increase in total other income as compared to the 1991 quarter.
 Late in the quarter, on June 18, 1992, the company completed its initial public offering. At the same time, the association converted from a mutual to stock form of organization and issued 100 percent of its stock to the company. J. Edward Weishel, president and chief executive officer, commented on the results, saying: "With the successful completion of our public offering and the continued improvement in our net interest income, the association stands ready to continue to offer a variety of financial services to meet the needs of the communities it serves."
 Net interest income for the second quarter ended June 30, 1992, was $2.3 million compared to $2 million for the quarter ended June 30, 1991. The higher net interest income resulted from a decrease in interest income to $7.5 million from $8.4 million for the quarters ended June 30, 1992 and 1991, respectively. Such decrease was more than offset by a decrease in interest expense to $5.2 million from $6.4 million for the same period, 1992 and 1991, respectively. The decrease in both interest income and expense was the result of declining market interest rates. The average yield on interest bearing assets for the comparable quarters declined to 7.66 percent in 1992 from 9.13 percent in 1991, and the cost of funds for the quarter ended June 30, 1992, was 5.66 percent compared to 7.06 percent for the June 1991 quarter. Assets grew in the second quarter to $413 million as a result of the stock offering and moderate savings deposit growth. Securities held for sale were reduced to $61.8 million at June 30, 1992, from $81.5 at March 31, 1992. Proceeds from this reduction and the stock offering were invested primarily in adjustable rate mortgage-backed securities and short-term investment securities. Loans receivable decreased in the quarter to $217.5 million from $221 million as a heavy volume of refinancing offset loan production of $15 million for the quarter.
 The association's ratio of non-performing loans and real estate owned to total assets at June 30, 1992, was 1.04 percent. The allowance for loan losses was $.62 million, or 61.44 percent of non-performing loans at that date.
 As a result of the stock offering and current quarter earnings, the company's consolidated capital at June 30, 1992, is $38.7 million (9.36 percent of total assets) or $20.88 per share.
 For the six months ended June 30, 1992, net income was $983,000 or $.53 per share compared to net income of $2.1 million for the same period in the prior year. The decrease was primarily due to a decrease in the lower of cost or market adjustment on securities held for sale. Such income totaled $1.5 million for the six months ended June 30, 1991, compared to $408,000 for the six months ended June 30, 1992.
 Financial information for 1991 is for the association only since the company had no operations prior to June 18, 1992. Accordingly, earnings per share information for 1991 is not applicable.
 LaGrange Federal Savings and Loan Association operates three branch offices, located in Countryside, LaGrange Park and Naperville, Ill., and is headquartered at its main office and drive-through facility in downtown LaGrange.
 LGF BANCORP, INC.
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (In thousands)
 At 6/30/92 12/31/91
 Assets
 Cash and due from
 depository institutions $6,408 $6,392
 Interest bearing deposits 14,087 4,364
 Federal funds sold 11,500 4,100
 Total cash and cash equivalents 31,995 14,856
 Securities held for sale 61,845 99,852
 Investment securities
 (market value 1992-$41,247,
 1991-$16,605) 40,901 16,252
 Mortgage-backed securities
 (market value 1992-$46,052,
 1991-$14,653) 45,324 14,402
 Loans receivable (net of allowance
 for possible loan losses
 1992-$623, 1991-$450) 217,494 226,669
 Federal Home Loan Bank stock-at
 cost 2,669 2,598
 Real estate held for sale 4,176 4,187
 Other properties and
 equipment, net 3,622 3,617
 Accrued interest receivable 2,312 2,513
 Other assets 2,617 8,338
 Total $412,955 $393,284
 Liabilities and
 stockholders' equity
 Deposits $369,615 $367,460
 Advance payments by borrowers
 for taxes and insurance 1,329 1,714
 Accrued interest payable 225 284
 ESOP loan obligation 1,071 --
 Other liabilities 2,062 1,371
 Total liabilities 374,302 370,829
 Commitments and contingencies
 Stockholders' equity:
 Preferred stock, $.01 par value,
 1 million shares authorized...
 common stock, $.01 par value,
 5 million shares authorized,
 1,851,500 shares issued and
 outstanding 19 --
 Additional paid-in capital 16,981 --
 Retained earnings, substantially
 restricted 23,438 22,455
 Stock held for recognition and
 retention plans (714) --
 Guaranteed employee stock owner-
 ship plan loan obligation (1,071) --
 Total stockholders' equity 38,653 22,455
 Total $412,955 $393,284
 Consolidated Statements of Operations
 (In thousands, except per-share data)
 Periods ended June 30 Three Months Six Months
 1992 1991 1992 1991
 Interest income $7,470 $8,400 $15,190 $16,681
 Interest expense 5,217 6,354 10,635 12,733
 Net interest income 2,253 2,046 4,555 3,948
 Provision for possible
 loan losses 75 37 185 83
 Net interest income after
 provision for possible
 loan losses 2,178 2,009 4,370 3,865
 Other income:
 Lower of cost or market
 adjustment on securities
 held for sale 806 628 408 1,496
 Other (84) (106) 282 33
 Total other income 722 522 690 1,529
 Other expenses 1,863 1,476 3,573 2,964
 Income before income
 taxes 1,037 1,055 1,487 2,430
 Provision for income
 taxes 260 116 504 305
 Net income 777 939 983 2,125
 Pro forma earnings per
 share, determined as if
 initial public offering
 occurred on
 Jan. 1, 1992 $0.42 -- $0.53 --
 -0- 8/11/92
 /CONTACT: Kathie Gleason of LGF Bancorp, 708-352-3671/
 (LGFB) CO: LGF Bancorp, Inc. ST: Illinois IN: FIN SU: ERN


CK -- NY051 -- 8958 08/11/92 12:14 EDT
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