Printer Friendly

MAF BANCORP REPORTS THIRD QUARTER EARNINGS OF $1.04 PER SHARE BEFORE EXTRAORDINARY DEBT PREPAYMENT CHARGE OF $.22 PER SHARE

 CLARENDON HILLS, Ill., April 15 /PRNewswire/ -- MAF Bancorp, Inc. (NASDAQ-NMS: MAFB), the holding company of Mid America Federal Savings Bank, reported today that operating earnings for the third quarter ended March 31, 1993, advanced 65 percent from a year ago, totalling $3.9 million, or $1.04 per fully-diluted share, compared to $2.2 million, or $.63 per share in last year's third quarter.
 The company also recorded an $815,000, or $.22 per share extraordinary charge in the current quarter relating to an early extinguishment of debt, reducing quarterly net income to $3.1 million, or $.82 per share. The excellent overall results reflected continued strong core banking operations, a lower loan loss provision resulting from improved asset quality, as well as a marked reduction in operating expenses. The operating earnings results for the current quarter combined with the strong results previously reported for the first two quarters of this fiscal year resulted in an annualized return on average equity ratio of 18.1 percent and return on average assets ratio of .91 percent. This is the fifth consecutive quarter in which the company has reported an increase in operating earnings.
 Net interest income remained steady with year earlier levels, totalling $9.6 million in the current quarter compared to $9.5 million one year ago. The net interest margin in the current quarter was 2.63 percent, consistent with the levels reported in the first two quarters of this fiscal year. The current quarter's net interest margin was reduced by approximately 10 basis points as a result of $375,000 in additional discount amortization on the bank's collateralized mortgage obligation bond payable, the result of higher than expected loan prepayments on the collateral securing these borrowings. The ratio of interest-earning assets to interest-bearing liabilities continued to expand, increasing to 105.5 percent, compared to 104.3 percent for the quarter ended March 31, 1992.
 The provision for loan losses and chargeoffs were $600,000 and $200,000, respectively, in the current quarter compared to $1.3 million and $262,000 in last year's third quarter. The bank's non-performing loans declined to $13.4 million, or 1.46 percent of total loans at March 31, 1993, compared to $16.4 million, or 1.80 percent of total loans at March 31, 1992, and $13.5 million, or 1.48 percent of total loans at Dec. 31, 1992. Approximately one-half, or $7.0 million of the bank's problem loans represent restructud? or renegotiated loans which carry a weighted average yield of 6.33 percent. The allowance for loan losses was $7.4 million at March 31, 1993, equal to .78 percent of total loans.
 Non-interest income totalled $4.6 million in this year's third quarter, up 14.9 percent from the $4.0 million reported in last year's comparable period. The improvement was driven by the company's strong mortgage banking business as gains from sales of loans and mortgage backed securities totalled $1.8 million in the current quarter compared to $1.1 million a year ago. Although mortgage loan volume declined during the quarter, loan sale spreads were excellent, in particular on loans sold which were in the bank's loans held for sale portfolio. In addition, included in the $1.8 million in loan sale profits is a gain of $255,000 from the sale of $4.3 million of mortgage-backed securities held for sale. Income from real estate operations was $743,000 in the current quarter compared to $664,000 one year ago, an increase of 11.9 percent. The bank's real estate development subsidiary closed 46 lot sales during the quarter at an average profit of $16,200 per lot. The company is now 54 percent sold out in its largest remaining development, the 1,115-lot Ashbury subdivision. Loan servicing fee income totalled $655,000 in the current three month period, down slightly from $682,000 reported in the year earlier period.
 Non-interest expense for the quarter declined by $571,000, or 7.3 percent, from the year earlier level largely the result of a decrease in compensation and benefits expense of 6.9 percent. Compensation expense in the prior year period was substantially higher due to heavier loan refinance activity during that period which resulted in increased loan origination commissions paid to the Bank's commissioned sales force. FDIC insurance premiums were down $158,000 or 23.5 percent in the current quarter, reflecting 50 percent of a $450,000 credit from the FDIC for the repayment of the remaining FSLIC secondary reserve balance charged off by all thrift institutions several years ago. The other 50 percent of this credit will be reflected in the fourth quarter. The Bank has remained successful in achieving high operating efficiency, reflected in its ratio of total non-interest expense to average assets of 1.85 percent. The company's net effective tax rate declined to 38.5 percent in the current quarter, compared to 49.2 percent in last year's third quarter, reflecting the adoption of a new income tax accounting pronouncement in this fiscal year.
 During March 1993, the bank prepaid a $10 million advance from the Federal Home Loan Bank of Chicago which carried an interest rate of 12.45 percent and was scheduled to mature in October 1994. The bank incurred an $815,000 after-tax prepayment charge, equal to $.22 per share, as a result of this debt payoff, which is shown as an extraordinary item in the company's consolidated statement of income. Management believes that interest expense savings resulting from this debt prepayment will exceed, on a present value basis, the current period's extraordinary charge.
 Operating earnings for the nine months ended March 31, 1993, totalled $10.1 million, or $2.71 per share, compared to $6.5 million, or $1.83 per share for the nine months ended March 31, 1992. Improvements in net interest income, mortgage banking profits and income from real estate operations as well as declines in the provisions for loan losses and overall operating expenses all contributed to the substantial increase in the nine-month earnings. The results for the current nine- month period also included a $.34 per share credit relating to the adoption of the Financial Accounting Standard Board's new income tax accounting policy. After consideration of this cumulative accounting adjustment and the $.22 per share extraordinary charge from the debt extinguishment, reported earnings for the nine months ended March 31, 1993 were $2.83 per share, compared to $2.06 per share for the nine months ended March 31, 1992, which also included a $.23 per share extraordinary tax credit.
 Total assets at March 31, 1993, were $1.55 billion, an increase of $36.4 million from June 30, 1992, the company's fiscal year end. Total deposits were $1.29 billion at March 31, 1993, up $23.3 million from the June 30, 1992 level. Total stockholders' equity, all of which is tangible, was $81.4 million at the end of the quarter, resulting in a tangible book value per share of $22.90.
 The company also announced today its plan to open its 14th branch office on July 1, 1993. The branch will be located in southern Naperville, Ill., in the northwest corner of the company's Ashbury subdivision. Management believes this is a natural extension of the bank's already strong presence in southern DuPage and northern Will counties.
 MAF Bancorp, Inc. is a federally chartered stock savings bank. The bank operates a network of 13 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.
 Results of Operations
 (Unaudited -- Dollars in thousands, except per share data)
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Interest income $ 27,739 $ 30,327 $ 85,509 $ 92,956
 Interest expense 18,166 20,831 56,956 67,093
 Net interest income 9,573 9,496 28,553 25,863
 Provision for loan losses 600 1,300 2,100 3,300
 Net interest income after
 provision for loan losses 8,973 8,196 26,453 22,563
 Non-interest income:
 Gain on sale of:
 Loans receivable 1,593 987 3,840 2,667
 Mortgage-backed securities 255 155 359 550
 Loan servicing rights -- 96 -- 1,296
 Gain (loss) on sale and
 writedown of investment
 securities -- -- (860) 68
 Income from real estate
 operations 743 664 3,053 1,832
 Gain (loss) on sale and
 writedown of foreclosed
 real estate (29) 1 (1,213) (421)
 Loan servicing fee income 655 682 1,938 2,054
 Deposit account service
 charges 477 515 1,581 1,625
 Brokerage commissions 414 466 1,341 1,231
 Other 448 400 1,158 1,485
 Total non-interest income 4,556 3,966 11,197 12,387
 Non-interest expense:
 Compensation and benefits 3,904 4,195 11,287 11,689
 Office occupancy and
 equipment 845 1,031 2,666 2,841
 Federal deposit insurance
 premiums 515 673 1,914 2,026
 Data processing 365 370 1,059 1,133
 Other 1,594 1,525 4,330 4,418
 Total non-interest expense 7,223 7,794 21,256 22,107
 Income before income taxes,
 extraordinary items and
 change in accounting
 principle 6,306 4,368 16,394 12,843
 Income taxes 2,427 2,151 6,296 6,391
 Income before extra-
 ordinary items and change
 in accounting principle 3,879 2,217 10,098 6,452
 Extraordinary items:
 Tax effect of utilization of
 loss carryforwards -- 296 -- 812
 Loss on early extinguishment
 of debt, less applicable
 income taxes of $516 (815) -- (815) --
 Cumulative effect of change
 in accounting for income
 taxes -- -- 1,250 --
 Net income $ 3,064 $ 2,513 $ 10,533 $ 7,264
 Primary earnings per share:
 Income before extraordinary
 items and change in
 accounting principle $ 1.04 .63 2.72 1.83
 Extraordinary items:
 Tax effect of utilization
 of loss carryforwards -- .08 -- .23
 Loss on early extinguishment
 of debt (.22) -- (.22) --
 Cumulative effect of change
 in accounting for income
 taxes -- -- .34 --
 Net Income $ .82 .71 2.84 2.06
 Fully diluted earnings
 per share:
 Income before extraordinary
 items and change
 in accounting principle $ 1.04 .63 2.71 1.83
 Extraordinary items:
 Tax effect of utilization
 of loss carryforwards -- .08 -- .23
 Loss on early extinguishment
 of debt (.22) -- (.22) --
 Cumulative effect of change
 in accounting for income
 taxes -- -- .34 --
 Net Income $ .82 .71 2.83 2.06
 MAF BANCORP, INC.
 Selected Financial Data
 (Dollars in thousands, except share data)
 March 31, June 30,
 1993 1992
 (Unaudited)
 Total assets $1,549,754 1,513,331
 Cash and investment
 securities 192,164 183,093
 Mortgage-backed securities 359,293 321,625
 Loans receivable, net 938,250 945,769
 Real estate held for
 development or sale 10,947 13,956
 Deposits 1,291,890 1,268,557
 Borrowed funds 121,744 130,905
 Subordinated capital notes 19,947 19,915
 Stockholders' equity 81,423 70,202
 Tangible book value per share 22.90 19.85
 Stockholders' equity to
 total assets (percent) 5.25 4.64
 Tangible capital ratio
 (Bank only) 5.53 5.28
 Core capital ratio
 (Bank only) 5.53 5.28
 Risk-based capital ratio
 (Bank only) 12.54 11.06
 Shares outstanding:
 Actual 3,554,920 3,536,907
 Primary (weighted
 average) 3,747,319 3,577,359
 Fully-diluted
 (weighted average) 3,756,243 3,645,450
 Non-performing loans $ 13,419 14,344
 Non-performing assets 21,060 24,176
 Allowance for loan losses 7,441 5,736
 Non-performing loans
 to total loans (percent) 1.46 1.58
 Non-performing assets to
 total assets (percent) 1.32 1.60
 Allowance for loan losses
 to total loans (percent) .78 .60
 Mortgage loans serviced
 for others $ 864,647 877,649
 Investment in real
 estate subsidiary 20,868 18,155
 Nine months Ended Year Ended
 March 31, June 30,
 1993 1992 1992
 Performance ratios
 (annualized)
 Return on average assets .91(A) .66 .67
 Return on average equity 18.11(A) 15.13 15.03
 Average yield on
 earning assets 7.84 9.00 8.85
 Average cost of interest-
 bearing liabilities 5.50 6.69 6.54
 Interest rate spread 2.34 2.31 2.31
 Net interest margin 2.62 2.51 2.55
 Average interest-earning
 assets to average interest-
 bearing liabilities 105.26 103.33 103.75
 Non-interest expense
 to average assets 1.85 2.01 2.02
 Non-interest expense to average
 assets and loans serviced
 for others 1.19 1.21 1.23
 Loan originations $ 546,368 512,951 650,793
 Loans and mortgage-backed
 securities sold 241,939 234,208 300,013
 (A) Income from cumulative effect of change in accounting for income taxes and the extraordinary loss on the early extinguishment of debt, net of tax has not been annualized.
 -0- 4/15/93
 /CONTACT: Allen H. Koranda, chairman, or Jerry A. Weberling, chief financial officer of MAF Bancorp, Inc., 708-325-7300/
 (MAFB)


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

PS -- NY030 -- 6125 04/15/93 10:32 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1993
Words:2169
Previous Article:LINCOLN FOODSERVICE PRODUCTS ANNOUNCES FIRST QUARTER RESULTS
Next Article:WESTERN WASTE INDUSTRIES ANNOUNCES THIRD QUARTER CHARGES
Topics:


Related Articles
PROVIDENT BANCORP ANNOUNCES 1991 EARNINGS
PROVIDENT BANCORP ANNOUNCES IMPROVED THIRD QUARTER RESULTS BEFORE NON-RECURRING MERGER CHARGES
MAF BANCORP REPORTS STRONG FIRST QUARTER EARNINGS, INCLUDING GAIN FROM ACCOUNTING METHOD CHANGE
MAF BANCORP REPORTS SHARP RISE IN SECOND QUARTER EARNINGS
CFSB BANCORP, INC. REPORTS EARNINGS INCREASE
MAF BANCORP ANNOUNCES THIRD QUARTER EARNINGS OF $.65 PER SHARE
MAF BANCORP REPORTS FISCAL 1994 EARNINGS OF $2.44 PER SHARE AND FOURTH QUARTER EARNINGS OF $.46 PER SHARE
FLORIDA FIRST BANCORP, INC. ANNOUNCES PROFIT FOR FISCAL 1995
MAF BANCORP ANNOUNCES FOURTH QUARTER EARNINGS OF $.69 PER SHARE
Triangle Bancorp Reports Record Earnings

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