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MAF BANCORP REPORTS STRONG FIRST QUARTER EARNINGS, INCLUDING GAIN FROM ACCOUNTING METHOD CHANGE

 MAF BANCORP REPORTS STRONG FIRST QUARTER EARNINGS,
 INCLUDING GAIN FROM ACCOUNTING METHOD CHANGE
 CLARENDON HILLS, Ill., Oct. 19 /PRNewswire/ -- MAF Bancorp, Inc. (NASDAQ-NMS: MAFB), the holding company of Mid America Federal Savings Bank, announced today that earnings for the first quarter ended Sept. 30, 1992, totaled $4.3 million, or $1.16 per share, which included a $1.25 million gain, equal to $.34 per share, resulting from the adoption of a new accounting method for income taxes. Earnings for the prior year period totaled $2.4 million, or $.69 per share, which included a $.05 per share extraordinary gain. Excluding the cumulative accounting adjustment and the extraordinary gain in both the current and prior periods, the company's operating earnings of $3.0 million, or $.82 per share, represented a 32.9 percent increase over last year's first quarter operating earnings of $2.3 million, or $.64 per share.
 The primary reason for the strong improvement in operating earnings was an increase of 13.5 percent in net interest income, which totaled $9.4 million in the current year period compared to $8.3 million in last year's first quarter. The bank's net interest margin increased to 2.60 percent for the current period, compared to 2.44 percent for the quarter ended Sept. 30, 1991. Net interest earning assets also increased over the year earlier level. A provision for loan losses of $900,000 was recorded in the current period, compared to $500,000 in last year's first quarter. The allowance for loan losses stood at $6.4 million at Sept. 30, 1992, equal to .64 percent of total loans. Non-performing assets remained stable at $24.5 million, or 1.61 percent of total assets at Sept. 30, 1992, compared to $24.2 million, or 1.60 percent of total assets at June 30, 1992.
 Non-interest income totaled $3.5 million in the current quarter, compared to $3.3 million in last year's comparable period, an increase of 5.4 percent. Gains on sale of loans and mortgage-backed securities improved to $1.2 million compared to $550,000 in last year's first quarter as loan sale volume was up $7.9 million, or 14.5 percent, and loan sale margins increased substantially. These healthy loan sale profits continue to reflect the success of the bank's mortgage banking strategy of being a high volume loan originator, selling current fixed rate loan production and maintaining adjustable rate and short term loans in its portfolio. Mortgage loan volume totaled $200.5 million in the first quarter compared to $134.2 million in the comparable period last year, as heavy refinance activity continued due to the low interest rate environment.
 Loan servicing fee income totaled $661,000 in the current period compared to $866,000 for the first quarter of last year, as servicing spreads tightened from last year and the balance of loans serviced for others declined to $848.7 million from its year earlier level of $1.0 billion, primarily due to the sale of 12 percent of this off-balance sheet portfolio in December 1991. Other sources of fee income continued to enhance earnings as deposit account service charges and brokerage commissions totaled $574,000 and $495,000, respectively, for the current quarter. Income from real estate operations was $287,000 compared to $349,000 last year as the company continued to show positive results in its two subdivisions under development. A total of 12 lot sales in the Ashbury subdivision were closed during the quarter while two lot sales were closed in the Scotts Crossing subdivision. A total of approximately 100 lots in the Ashbury subdivision, which were contracted for sale to builders on a pre-development basis, are expected to be delivered and closed in the second quarter of this fiscal year.
 Non-interest expense of $7.0 million remained virtually the same as last year's total of $7.1 million. Increases in compensation and benefits expense were due to higher loan officer commissions and costs related to the increased loan volume, higher medical expenses and normal salary increases. These increases were offset by a 39.6 percent decrease in other non-interest expense primarily due to the higher loan volume and origination costs which resulted in a larger offset of non- interest expense for the cost of origination in accordance with FASB 91.
 Effective July 1, 1992, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." Statement 109 provides new guidelines for determining the provision for income taxes to be recorded in financial statements. Among the new provisions which favorably impacted the bank in recording the cumulative accounting adjustment of $1.25 million was a change which now allows thrifts, subject to certain conditions, to record tax benefits on their general loan loss reserves, which previously was not permitted. Primarily as a result of the provisions of the new accounting pronouncement, the company's effective tax rate decreased to 38.3 percent in the current period from 42.5 percent in last year's first quarter.
 Total assets at Sept. 30, 1992, were $1.52 billion, an increase of $11.6 million from $1.51 billion at June 30, 1992. Foreclosed real estate increased to $10.3 million at the end of the first quarter from $9.3 million three months ago, although the company has conditional contracts for the sale of $2.4 million of this property. Total deposits at Sept. 30, 1992, were $1.27 billion, the same level as shown at June 30, 1992. The bank's tangible, core and risk-based capital ratios were 5.42 percent, 5.42 percent and 11.25 percent at Sept. 30, 1992, respectively, exceeding all current and fully phased in capital requirements. Total stockholders' equity, all of which is tangible, was $74.8 million at Sept. 30, 1992, resulting in a tangible book value per share of $21.08.
 Mid America Federal Savings Bank is a federally chartered stock savings bank. The bank operates a network of 13 retail banking 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.
 Selected Financial Data
 (Dollars in thousands, except share data)
 9/30/92 6/30/92
 (Unaudited)
 Total assets $1,524,917 $1,513,331
 Cash and investment securities 158,403 183,093
 Mortgage-backed securities 318,380 321,625
 Loans receivable, net 980,618 945,769
 Real estate held for development or sale 15,210 12,599
 Deposits 1,272,488 1,268,557
 Borrowed funds 130,065 130,905
 Stockholders' equity 74,836 70,202
 Tangible book value per share 21.08 19.85
 Stockholders' equty to total assets (pct) 4.91 4.64
 Tangible capital ratio (Bank only) (pct) 5.42 5.28
 Core capital ratio (Bank only) (pct) 5.42 5.28
 Risk-based capital ratio (Bank only) (pct) 11.25 11.06
 Shares outstanding:
 Actual 3,549,870 3,536,907
 Primary (weighted average) 3,669,524 3,577,359
 Fully diluted (weighted average) 3,686,398 3,645,450
 Non-performing loans $ 13,682 $ 14,344
 Non-performing assets 24,498 24,176
 Allowance for loan losses 6,442 5,736
 Non-performing loans to total loans (pct) 1.50 1.58
 Non-performing assets to total assets (pct) 1.61 1.60
 Allowance for loan losses to total loans (pct) .64 .60
 Mortgage loans serviced for others $ 848,661 $ 877,649
 Investment in real estate subsidiary 18,083 18,155
 Three Months Ended Year
 Sept. 30, ended
 1992 1991 6/30/92
 Performance ratios (annualized)
 (pct):
 Return on average assets .87(A) .68 .67
 Return on average equity 18.27(A) 15.73 15.03
 Average yield on earning assets 8.11 9.29 8.85
 Average cost of interest-bearing
 liabilities 5.76 7.02 6.54
 Interest rate spread 2.35 2.27 2.31
 Net interest margin 2.60 2.44 2.55
 Average interest-earnings assets
 to average interest-bearing
 liabilities 104.69 102.56 103.75
 Non-interest expense to average
 assets 1.84 1.95 2.02
 Non-interest expense to average
 assets and loans serviced for
 others 1.18 1.19 1.23
 Loans originations $200,534 $134,179 $650,793
 Loans and mortgage-backed
 securities sold 62,447 54,527 299,763
 (A) -- Income from cumulative effect of change in accounting for income taxes has not been annualized.
 MAF BANCORP, INC.
 Results of Operations
 (Dollars in thousands, except per share data)
 Three months ended Sept. 30 1992 1991
 (Unaudited)
 Interest income $29,362 $31,873
 Interest expense 19,974 23,600
 Net interest income 9,388 8,273
 Provision for loan losses 900 500
 Net interest inc. after prov. for loan losses 8,488 7,773
 Non-interest income:
 Gain (loss) on sale of:
 Loans receivable 1,119 553
 Mortgage-backed securities 115 (3)
 Income from real estate operations 287 349
 Gain (loss) on sale of and writedown
 of foreclosed real estate (144) 17
 Loan servicing fee income 661 866
 Deposit account service charges 574 563
 Brokerage commissions 495 356
 Other 349 578
 Total non-interest income 3,456 3,279
 Non-interest expense:
 Compensation and benefits 4,504 4,018
 Office occupancy and equipment 954 905
 Federal deposit insurance premiums 699 677
 Data processing 343 408
 Other 548 1,089
 Total non-interest expense 7,048 7,097
 Income before income taxes, extraordinary
 item and change in accounting principle 4,896 3,955
 Income taxes 1,873 1,681
 Income before extraordinary item
 and change in accounting principle 3,023 2,274
 Extraordinary item - tax benefit arising from
 utilization of loss carryforwards -- 173
 Cumulative effect of change in
 accounting for income taxes 1,250 --
 Net income $ 4,273 $ 2,447
 Primary earnings per share:
 Income before extraordinary item
 and change in accounting principle $.82 $.64
 Extraordinary item -- .05
 Cumulative effect of change
 in accounting for income taxes .34 --
 Net income 1.16 .69
 Fully diluted earnings per share:
 Income before extraordinary item
 and change in accounting principle $.82 $.64
 Extraordinary item -- .05
 Cumulative effect of change
 in accounting for income taxes .34 --
 Net income 1.16 .69
 -0- 10/19/92
 /CONTACT: Allen H. Koranda, chairman, or Jerry A. Weberling, CFO of MAF Bancorp, 708-325-7300/
 (MAFB) CO: MAF Bancorp, Inc. ST: Illinois IN: FIN SU: ERN


GK -- NY071 -- 1651 10/19/92 13:31 EDT
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Date:Oct 19, 1992
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