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LIBERTY BANCORP, INC. ANNOUNCES THIRD QUARTER EARNINGS OF $1.5 MILLION

 CHICAGO, Oct. 12 /PRNewswire/ -- Liberty Bancorp, Inc. (NASDAQ: LBCI), the holding company for Liberty Federal Savings Bank, today announced earnings for the third quarter ending Sept. 30, 1993. Net income was $1.5 million for the three months ending Sept. 30, 1993, a decrease of $341,000 or 18.16 percent from the comparable quarter in 1992 of $1.9 million. For the nine month periods ending Sept. 30, 1993 and 1992 net income before cumulative effect of changes in accounting principles was $4.9 million and $5.0 million respectively, a decrease of $148,000 or 2.95 percent. The cumulative effect of changes in accounting principles in 1992 increased net income by $481,000.
 Fully diluted earnings per share equaled $.48 for the third quarter of 1993 as compared to $.57 for the same period in 1992. For the nine months ending Sept. 30, 1993 earnings per share were $1.52 as compared to $1.64 after cumulative effect of changes in accounting principles for the same period in 1992.
 At Sept. 30, 1993, total assets amounted to $532.2 million, an increase of $28.2 million or 5.59 percent as compared to $504.0 million at Dec. 31, 1992.
 Changes In Accounting Principles
 The Holding Company adopted changes in accounting principles for income taxes and post-retirement benefits in the fourth quarter in 1992 retroactive to Jan. 1, 1992. The cumulative effect for periods prior to Jan. 1, 1992, was to reduce income tax expense by $936,000 and create an accrual for post-retirement benefits of $455,000. The amounts applicable to 1992 and 1993 are incorporated in operations. The quarterly and nine month Consolidated Statements of Earnings for 1992 were restated to account for the opening and current year's adjustments. There were no comparable adjustments in 1993. Fully diluted earnings per share for the third quarter and the nine months ending Sept. 30, 1992, before the cumulative effect in changes in accounting principles, were $.57 and $1.49 respectively.
 Comparison Of Operating Results
 For The Quarter Ended Sept. 30, 1993 And 1992
 For the quarter ended Sept. 30, 1993, total interest income amounted to $9.5 million, a decrease of $948,000 or 9.07 percent as compared to $10.4 million for the same period in 1992. The decrease in interest income is the direct result of the continuation of lower interest rates demanded by the mortgage market on refinances and originations. The average yield on earning assets for the quarter ending Sept. 30, 1993, dropped to 7.31 percent from 8.55 percent for the same period in 1992. Comparable figures for the nine month period in 1993 and 1992 were 7.51 percent and 8.54 percent respectively. Total interest expense decreased $675,000 or 12.93 percent to $4.5 million for the quarter ending Sept. 30, 1993, as compared to $5.2 million for the same period in 1992. The average cost of funds for the third quarter of 1993 dropped to 4.00 percent from 4.91 percent in 1992. Comparable figures for the nine months ending Sept. 30, 1993 and 1992 were 4.09 percent and 5.28 percent respectively.
 During the quarter ending Sept. 30, 1993, $223,000 was provided for loan losses as compared to $225,000 in 1992.
 Non-interest income for the third quarter of 1993 increased $13,000 or 11.25 percent to $129,000 as compared to $116,000 for the same period in 1992. Included in non-interest income is the loss on a limited real estate partnership of $17,000 for the quarter as compared to $36,000 for the same quarter in 1992, a reduction of the loss of $19,000 or 52.22 percent.
 Non-interest expense amounted to $2.5 million for the three months ending Sept. 30, 1993, an increase of $188,000 or 7.95 percent as compared to $2.4 million for the same period in 1992. Primary increases in non-interest expense are related to increases in advertising and promotion of $30,000, office occupancy and equipment expense of $24,000 and Federal Deposit Insurance Premiums of $16,000. Included in other non-interest expense are increases in legal and audit of $71,000 and general operating expenses of $80,000. The increases are partially offset by decreases in salaries and employee benefits of $24,000 and data processing costs of $9,000.
 Federal and state income taxes amounted to $774,000, a decrease of $105,000 or 11.92 percent as compared to $879,000 for the same period in 1992. The reduction in income tax expense is the result of the decrease in income which correlates to $149,000 in tax partially offset by an increase in effective tax rate of 1.6 percent or $44,000 in tax. The effective tax rates for the three months ending Sept. 30, 1993 and 1992, are 33.5 percent and 31.9 percent respectively. The normal combined effective federal and state income tax rate would approximate 38 percent.
 Comments On Statement Of Condition
 During the nine month period ending Sept. 30, 1993, loans receivable net increased $35.8 million or 8.87 percent to $439.8 million from $404.0 million at Dec. 31, 1992. Prepaid expenses and other assets amounted to $7.6 million at Sept. 30, 1993, an increase of $1.4 million or 22.35 percent as compared to $6.2 million at Dec. 31, 1992. The increases in prepaid expenses and other assets were a combination of an increase in cash investment in life insurance contracts of $1.2 million or 27.16 percent to $5.8 million at Sept. 30, 1993, from $4.6 million at Dec. 31, 1992, and an increase in prepaid FDIC insurance of $248,000, partially offset by a decrease in accounts receivable of $189,000. Other major changes were a decrease in mortgage-backed securities through repayments of $6.9 million or 15.31 percent and a net reduction in liquidity items of $2.0 million.
 Non-performing assets totaled $1.9 million at Sept. 30, 1993, as compared to $1.0 million at Dec. 31, 1992. No loss is expected in the temporary increase in non-performing assets which primarily consists of 1-4 family first mortgage loans. At Sept. 30, 1993, and Dec. 31, 1992, non-performing assets as a percentage of total assets in .36 percent and .20 percent respectively and as a percentage of allowance for loan losses was 59.19 percent and 35.37 percent respectively.
 Savings deposits increased $10.5 million or 2.46 percent to $437.2 million at Sept. 30, 1993, from $426.7 million at Dec. 31, 1992. The savings deposit increase is the result of deposits acquired in a branch purchase amounting offset by net savings withdrawals of $14.4 million. At Sept. 30, 1993, borrowings amounted to $17.0 million, an increase of $14.7 million from $2.3 million at Dec. 31, 1992. The additional borrowings were from an open line of credit at the Federal Home Loan Bank of Chicago and were used to fund loan originations and purchases. Advance payments by borrowers for real estate tax and insurance decreased $1.8 million with the payment of second installment of real estate taxes due Sept. 1, 1993.
 Stockholders' equity totaled $71.5 million or 13.44 percent of assets as of Sept. 30, 1993, an increase of $4.1 million or 6.15 percent from $67.4 million at Dec. 31, 1992. The increase resulted from net income of $4.9 million plus credits from employee stock plans of $540,000 offset by dividends paid to stockholders of $900,000 and net change in Treasury Stock of $365,000.
 Liberty Federal Savings Bank is a federally chartered stock savings bank. The Savings Bank is a community-oriented bank offering traditional deposit and mortgage loan products. It operates three offices, one in northwestern Chicago and the others in Glenview and Morton Grove, Ill.
 LIBERTY BANCORP, INC.
 Consolidated Statements Of Financial Condition
 (Dollars In Thousands)
 Periods ended Sept. 30, Dec. 31,
 1993 1992
 (Unaudited)
 Assets
 Cash and due from banks $ 7,355 $ 7,299
 Interest-earning deposits 4,195 6,617
 Federal funds sold 0 300
 Commercial paper 5,050 4,800
 Investment securities 21,291 20,907
 Mortgage-backed securities 38,055 44,932
 Loans receivable, net 439,792 403,978
 Accrued interest receivable 2,590 2,517
 Real estate owned or in judgement 0 363
 Premises and equipment, net 2,965 2,939
 Deposit base intangibles 227 0
 Prepaid expenses and other assets 7,579 6,197
 Deferred federal and state
 income taxes 3,089 3,187
 Total assets $532,188 $504,036
 Liabilities and Stockholders' Equity
 Deposits $437,191 $426,701
 Borrowed funds 16,984 2,267
 Advance payments by borrowers for taxes
 and insurance 1,837 3,656
 Accrued expenses and other liabilities 4,648 4,030
 Total liabilities $460,660 $436,654
 Preferred Stock, $.01 par value.
 Authorized 1,000,000 shares; none
 outstanding $ 0 $ 0
 Common stock, $.01 par value.
 Authorized 5,000,000 shares; issued
 3,306,250; outstanding 3,000,491
 shares 33 33
 Additional paid-in capital 31,185 31,222
 Treasury stock - 305,759 shares acquired
 at cost (5,139) (4,774)
 Retained earnings, substantially
 restricted 48,475 44,504
 Common stock purchased by:
 Employee stock ownership plan (1,984) (2,267)
 Management recognition & retention (1,042) (1,336)
 Total stockholders' equity $ 71,528 $ 67,382
 Total liabilities & stockholders'
 equity $532,188 $504,036
 LIBERTY BANCORP, INC.
 Consolidated Statements Of Earnings
 (000s Omitted, Unaudited)
 Periods Ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Total interest income $9,498 $10,446 $28,695 $31,179
 Total interest expense 4,545 5,220 13,659 16,796
 Net interest income $4,953 $ 5,226 $15,036 $14,384
 Provision for loan losses 223 225 659 649
 Net int. inc. after prov.
 for ln. loss $4,730 $ 5,001 $14,377 $13,735
 Total non-interest income 129 116 420 594
 Total general &
 administrative expenses 2,548 2,361 7,144 6,683
 Income before income
 taxes and cumulative
 effect of changes in
 accounting principles $2,311 $2,756 $ 7,653 $ 7,646
 Income taxes 774 879 2,784 2,629
 Income before cumulative
 effect of changes in
 accounting principles $1,537 $1,877 $ 4,869 $ 5,017
 Cumulative effect at
 Jan. 1, 1992, of
 change in accounting
 for income taxes 0 0 0 936
 Cumulative effect at
 Jan. 1, 1992, of
 change in accounting for
 postretirement benefits
 other than pensions, net
 of income tax expense of
 $288,000 0 0 0 (455)
 Net income $1,537 $1,877 $4,869 $5,498
 Primary earnings per share:
 Income before cumulative
 effect of changes in
 accounting principles $ 0.48 $ 0.57 $ 1.54 $ 1.50
 Cumulative effect of
 change in accounting
 for income taxes 0.00 0.00 0.00 0.28
 Cumulative effect of
 change in accounting
 for postretirement
 benefits 0.00 0.00 0.00 (0.14)
 Net income $ 0.48 $ 0.57 $ 1.54 $ 1.64
 Fully diluted earnings per
 share:
 Income before cumulative
 effect of changes in
 accounting principles $ 0.48 $ 0.57 $ 1.52 $ 1.49
 Cumulative effect of
 change in accounting
 for income taxes 0.00 0.00 0.00 0.28
 Cumulative effect of
 change in accounting
 for postretirement
 benefits 0.00 0.00 0.00 (0.13)
 Net income $ 0.48 $ 0.57 $ 1.52 $ 1.64
 LIBERTY BANCORP, INC.
 Financial Ratios and Data
 (000's Omitted)
 Periods Ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Selected Financial Ratios:
 Average shares fully
 diluted 3,194,887 3,268,778 3,194,394 3,360,613
 Return on average
 assets (pct.) 1.15 1.50 1.24 1.47
 Interest rate
 spread (Pct.) 3.31 3.64 3.42 3.26
 Net interest
 margin (Pct.) 3.81 4.28 3.94 3.94
 Ratio of interest-earning
 assets to interest-
 bearing liabilities 1.14x 1.15x 1.14x 1.15x
 Sept. 30, June 30, March 31, Dec. 31,
 1993 1993 1993 1992
 Other Financial Data:
 Common shares
 outstanding 3,000,491 3,000,491 2,989,891 3,017,148
 Stockholders'
 equity $ 71,528 $ 70,099 $ 68,352 $ 67,383
 Book value per
 share $ 23.84 $ 23.36 $ 22.86 $ 22.33
 Allowance for
 loan losses $ 3,291 $ 3,067 $ 3,006 $ 2,850
 Non-performing
 loans $ 1,948 $ 974 $ 1,427 $ 1,008
 Net charge-offs
 during the
 period $ 0 $ 160 $ 58 $ 1
 NOTES: (A) Income and expense items have been annualized in calculating ratios for these periods.
 (B) Dollars in thousands except earnings per share and book value.
 -0- 10/12/93
 /CONTACT: James K. Mair, manager-shareholder services of Liberty Bancorp, Inc., 312-334-1200/
 (LBCI)


CO: Liberty Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

TM -- NY090 -- 1300 10/12/93 16:51 EDT
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Date:Oct 12, 1993
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