Printer Friendly

MAF BANCORP REPORTS SECOND QUARTER EARNINGS OF $.66 PER SHARE

 CLARENDON HILLS, Ill., Jan. 18 /PRNewswire/ -- MAF Bancorp, Inc., (NASDAQ:NMS: MAFB) the parent holding company of Mid America Federal Savings Bank announced today that earnings for the second quarter ended Dec. 31, 1993 totalled $3.7 million, or $.66 per fully-diluted share, up 16.1 percent from the $3.2 million, or $.57 per fully-diluted share reported in last year's second quarter. Strong real estate development profits and mortgage banking results, along with a lower income tax rate, led to the strong earnings performance in the current quarter. The prior year period results included writedowns on securities and foreclosed real estate totalling $1.9 million, or $.21 per share on an after-tax basis. The earnings results for the current quarter combined with the first quarter earnings previously reported, resulted in an annualized return on average equity ratio of 16.5 percent and return on average assets ratio of .93 percent for the six months ended Dec. 31, 1993.
 Net interest income, after provision for loan losses, totalled $7.8 million, a decrease of 12.7 percent from the $9.0 million reported last year. With the decline in long term interest rates experienced over the past few quarters, the Bank's net interest margin has continued to contract, although at a slower rate, resulting in the decrease in net interest income. The net interest margin for the current quarter narrowed to 2.20 percent compared to 2.28 percent reported for the first quarter ended Sept. 30, 1993. In addition to the flattening yield curve, the Bank's net interest margin continued to be affected by high prepayments of mortgage-backed securities collateralizing the Bank's collateralized mortgage obligation ("CMO") borrowing, which resulted in higher amortization of the related bond discount. The net negative impact on net interest income from this collateralized borrowing was $1.2 million, compared to $341,000 in the year earlier period. Although the substantial negative impact of the CMO borrowing on the Bank's net interest margin is expected to continue for the remainder of the current fiscal year, its negative impact on future years will decrease as the bonds are repaid and the discount is fully amortized.
 The provision for loan losses totalled $300,000 in the current quarter, compared to $600,000 in the December 1992 quarter, as asset quality continued to be excellent. Net charge-offs (recoveries) were $136,000 during the current quarter compared to ($2,000) in the prior year quarter. Non-performing assets at Dec. 31, 1993 totalled $15.7 million, or .98 percent of total assets, compared to $20.9 million, or 1.36 percent of total assets a year ago. Foreclosed real estate declined by 20 percent during the quarter, to $4.0 million, compared to $5.0 million three months ago. The allowance for loan losses was $8.5 million at Dec. 31, 1993, equal to .85 percent of total loans and 73 percent of non-performing loans.
 The Company's strong earnings performance was primarily due to higher non-interest income which totalled $5.4 million in the current quarter, up $2.2 million, or 68.8 percent from the $3.2 million reported in last year's second quarter. With lower long-term interest rates continuing to generate significant lending activity, mortgage banking profits totalled $1.2 million, up slightly from the $1.1 million reported in the last year's second quarter. Loan sales totalled $111.0 million in the current three month period compared to $98.2 million in last year's comparable period. Loan origination volume expanded to $282 million in the quarter, compared to $224 million in last year's comparable period and $251 million in the first quarter of this fiscal year. While renewed housing activity has resulted in an increased percentage of loan originations being from home purchases, the Bank's lending activity, and associated mortgage banking profits, continue to be largely driven by loan refinancing activity which could slow in the coming quarters.
 Income from real estate operations continued to be excellent, totalling $2.1 million in the current quarter, up slightly from the $2.0 million reported in last year's second quarter. A total of 99 lots were closed in the second quarter, 92 of which were in the Company's Ashbury subdivision. The average profit on Ashbury lot sales was $19,000 for the quarter. At Dec. 31, 1993, a total of 107 Ashbury lots were under contract, most of which are expected to close in the next quarter, and an additional 214 lots remain to be sold in the Ashbury development. The Ashbury sales pace has remained stronger than expected and the Company may experience inventory shortages of saleable lots at the end of the fiscal year and early next year. As the Company begins to near the end of this project, it expects to begin development of the nearby 260-lot Clow Creek development later this year.
 Non-interest expense increased to $7.6 million in the quarter ended Dec. 31, 1993, up from $7.0 million in the second quarter of last year. Compensation and benefits increased $418,000, or 11.5 percent, attributable to higher loan department costs due to the record loan volume acitvity and expansion into wholesale lending. Other categories of non-interest expense remained substantially stable except for other non-interest expense which increased $202,000 as a result of increases in advertising and other loan-related expenses. Despite the increase in operating expenses, the ratio of non-interest expense to average assets stood at 1.91 percent for the current quarter, below peer group averages. Income tax expense totalled $1.9 million for the quarter, equal to an effective income tax rate of 34.4 percent, compared to $2.0 million, or an effective income tax rate of 38.4 percent in the second quarter of last year. The current period's income tax provision was reduced by $310,000 as a result of a reversal of a deferred tax valuation reserve no longer considered necessary.
 Operating earnings for the six months ended Dec. 31, 1993 totalled $7.3 million, or $1.29 per fully-diluted share compared to $6.2 million, or $1.11 per fully-diluted share for the six months ended Dec. 31, 1992. Increases in non-interest income, resulting from higher mortgage banking and real estate development profits and a lack of writedowns on securities and foreclosed real estate, led to the higher reported results for the six month period. These improvements were partially offset by declines in net interest income after provision for loan losses, which totalled $15.8 million compared to $17.5 in the year earlier period. Operating expenses totalled $15.2 million in the current six month period, compared to $14.0 million in the comparable period last year. During last year's first quarter, the Company also adopted the Financial Accounting Standard Board's new income tax accounting policy, which added $1.25 million, or $.23 per share to the Company's earnings for the six months ended Dec. 31, 1992, resulting in reported earnings of $1.34 per share for that period.
 Total assets at Dec. 31, 1993 were $1.61 billion, an increase of $63.1 million from total assets at June 30, 1993, the Company's fiscal year end. Total deposits at Dec. 31, 1993 were $1.30 billion, up $13.1 million from the June 30, 1993 level. The Bank's tangible, core and risk-based capital percentages were 5.71 percent, 5.71 percent and 12.74 percent at Dec. 31, 1993, respectively, exceeding all regulatory requirements. Total stockholders' equity, all of which is tangible, was $90.9 million at Dec. 31, 1993, resulting in a tangible book value per share of $17.28. During the quarter ended Dec. 31, 1993, the Company repurchased 79,650 shares of its common stock at an average price of $21.37 per share.
 Mid America Federal Savings Bank is a federally chartered stock savings bank. The Bank operates a network of 13 retail offices primarily in the western suburbs of Chicago. The stock of MAF Bancorp, Inc. is quoted on the NASDAQ National Market System under the symbol MAFB.
 MAF BANCORP, INC
 RESULTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Three Months Ended Six Months Ended
 Dec. 31, Dec. 31,
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Interest income $26,123 28,408 52,170 57,770
 Interest expense 17,976 18,816 35,777 38,790
 Net interest income 8,147 9,592 16,393 18,980
 Provision for loan losses 300 600 600 1,500
 Net interest income after
 provision for loan losses 7,847 8,992 15,793 17,480
 Non-interest income:
 Gain on sale of:
 Loans receivable 1,112 1,128 2,515 2,247
 Mortgage-backed securities 38 (11) 479 104
 Income from real estate
 operations 2,071 2,023 3,594 2,310
 Gain (loss) on sale and writedown of:
 Foreclosed real estate 8 (1,040) 70 (1,184)
 Investment securities 54 (860) 133 (860)
 Loan servicing fee income 622 622 1,276 1,283
 Deposit account service charges 613 530 1,164 1,104
 Brokerage commissions 407 432 767 927
 Other 451 361 869 710
 Total non-interest income 5,376 3,185 10,867 6,641
 Non-interest expense:
 Compensation and benefits 4,050 3,632 8,190 7,383
 Office occupancy and equipment 861 867 1,782 1,821
 Federal deposit insurance prem. 752 700 1,503 1,399
 Data processing 298 382 619 694
 Other 1,606 1,404 3,110 2,736
 Total non-interest expense 7,567 6,985 15,204 14,033
 Income before income taxes and
 change in accounting principle 5,656 5,192 11,456 10,088
 Income taxes 1,946 1,996 4,166 3,869
 Income before change in
 accounting principle 3,710 3,196 7,290 6,219
 Cumulative effect of change in
 accounting for income taxes -- -- -- 1,250
 Net income $ 3,710 $ 3,196 $ 7,290 $ 7,469
 Primary earnings per share:
 Income before change in
 accounting principle $ .66 .57 1.29 1.12
 Cumulative effect of change in
 accounting for income taxes -- -- -- .23
 Net income $ .66 .57 1.29 1.35
 Fully diluted earnings per share:
 Income before change in
 accounting principle $ .66 .57 1.29 1.11
 Cumulative effect of change in
 accounting for income taxes -- -- -- .23
 Net income $ .66 .57 1.29 1.34
 MAF BANCORP, INC. SELECTED FINANCIAL DATA
 (Dollars in thousands, except share data)
 Dec. 31, June 30,
 1993 1993
 (unaudited)
 Total assets $1,607,536 $1,544,439
 Cash and investment securities 191,434 156,680
 Mortgage-backed securities 350,077 362,172
 Loans receivable, net 1,010,961 963,680
 Real estate held for development or sale 9,132 14,174
 Deposits 1,303,189 1,290,072
 Borrowed funds 164,135 117,581
 Subordinated capital notes 19,994 19,962
 Stockholders' equity 90,924 85,002
 Tangible book value per share 17.28 15.94
 Stockholders' equity to total assets 5.66 5.50%
 Tangible capital ratio (Bank only) 5.71 5.71
 Core capital ratio (Bank only) 5.71 5.71
 Risk-based capital ratio (Bank only) 12.74 12.77
 Shares outstanding:
 Actual 5,261,964 5,332,014
 Primary (weighted average) 5,642,707 5,583,215
 Fully diluted (weighted average) 5,650,714 5,600,140
 Non-performing loans $ 11,639 $ 12,524
 Non-performing assets 15,684 19,454
 Allowance for loan losses 8,450 7,993
 Non-performing loans to total loans 1.17% 1.37%
 Non-performing assets to total assets .98% 1.26%
 Allowance for loan losses to total loans .85% .87%
 Mortgage loans serviced for others $ 797,354 $ 828,776
 Investment in real estate subsidiary 19,198 21,484
 SIX MONTHS ENDED YEAR ENDED
 DEC. 31, JUNE 30,
 1993 1992 1993
 Performance ratios:
 Return on average assets .93% .89% (a) .91%
 Return on average equity 16.50 18.23 (a) 17.80
 Average yield on earning assets 7.06 7.97 7.73
 Average cost of interest-bearing
 liabilities . 5.10 5.60 5.39
 Interest rate spread 1.96 2.37 2.36
 Net interest margin 2.24 2.63 2.65
 Average interest-earnings assets to
 average interest-bearing liab. 105.92 105.22 105.55
 Non-interest expense to average
 assets 1.95 1.83 1.83
 Non-interest expense to average
 assets and loans serviced for
 others 1.28 1.18 1.18
 Loans originations $533,253 $424,321 $808,597
 Loans and mortgage-backed
 securities sold 230,583 160,661 343,247
 (a) Income from cumulative effect of change in accounting
 for income taxes have not been annualized.
 -0- 1/18/94
 /CONTACT: Allen H. Koranda, Chairman or Jerry A. Weberling, Chief Financial Officer, 708-325-7300, both of MAF Bancorp/
 (MAFB)


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

SP -- NY034 -- 2633 01/18/94 10:07 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 18, 1994
Words:2127
Previous Article:JOHN E. GAIT, M.D., JOINS ICN PHARMACEUTICALS' VIRATEK SUBSIDIARY AS INTERNATIONAL MEDICAL DIRECTOR TO DIRECT VIRAZOLE CLINICAL DEVELOPMENT
Next Article:SNO COUNTRY REPORTS LATEST SKIING CONDITIONS INFORMATION
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters