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MAGNA SECOND QUARTER EARNINGS AT $7.1 MILLION OR 35 CENTS PER SHARE; NON-PERFORMING ASSETS REDUCED 39 PERCENT YEAR TO DATE

MAGNA SECOND QUARTER EARNINGS AT $7.1 MILLION OR 35 CENTS PER SHARE;
 NON-PERFORMING ASSETS REDUCED 39 PERCENT YEAR TO DATE
 ST. LOUIS, July 14 /PRNewswire/ -- Magna Group, Inc. (NASDAQ: MAGI), a St. Louis-based multibank holding company, today reported net income of $7.1 million, or 35 cents per common share (fully diluted), for the three months ended June 30, 1992.
 For the first six months of the year, net income was $12.6 million, or 63 cents per share. Magna has reduced non-performing loans to $63.2 million at June 30, 1992, a decrease of $7.2 million, or 10 percent, since March 31, 1992, and $32.1 million, or 34 percent, since year-end 1991. The non-performing loan ratio was 2.67 percent at June 30 compared with 2.92 percent and 3.86 percent at March 31, 1992 and December 31, 1991, respectively. The reduction in non-performing loans and a $4.1 million reduction in foreclosed property during the second quarter lowered non-performing assets to $76.9 million, an $11.3 million, or 13 percent decrease compared with March 31, 1992. Since year-end 1991, non-performing assets have been reduced $48.8 million, or 39 percent. Magna's non-performing asset ratio decreased to 3.23 percent at June 30, 1992 from 3.64 percent at March 31, 1992 and 5.03 percent at year-end 1991. The reserve for loan losses at June 30, 1992 was $43.8 million, or 69 percent of non- performing loans, compared with $47.6 million, or 68 percent at March 31, 1992, and $56.0 million, or 59 percent at year-end 1991.
 Review of Operating Results
 Second quarter net income was $7.1 million, or 35 cents per common share compared with $4.6 million, or 33 cents per share, in the second quarter of 1991. Net interest income was $36.4 million compared with $22.6 million; the provision for loan losses was $4.5 million compared with $3.1 million; total non-interest income was $9.4 million compared with $5.5 million; and total non-interest expense was $32.3 million compared with $19.4 million.
 For the six months ended June 30, 1992, net income was $12.6 million, or 63 cents per share, which includes $1.9 million or 10 cents per share related to an accounting change adopted in the first quarter of 1992, compared with $6.9 million, or 50 cents per share for the same period of 1991. Net interest income was $72.1 million compared with $45.1 million; the provision for loan losses was $11.3 million compared with $9.6 million; total non-interest income was $18.5 million compared with $10.9 million; and total non-interest expense was $66.5 million compared with $38.6 million.
 Increases in operating results over the same periods last year were due primarily to the acquisition of Landmark Bancshares Corporation in December 1991.
 The net interest margin increased to 4.43 percent for the second quarter of 1992 compared with 4.33 for the first quarter 1992, and was 4.66 percent for the second quarter last year. The annualized return on assets was .76 percent versus .82 percent in last year's second quarter. For the first six months of 1992, the net interest margin was 4.39 percent compared with 4.60 percent for the same period last year, and the annualized return on assets rose to .68 percent from .60 percent.
 Balance Sheet Totals
 At June 30, 1992, total assets were $3.72 billion compared with $3.74 billion at March 31, 1992; net loans were $2.37 billion, compared with $2.41 billion, and deposits were $3.27 billion, compared with $3.28 billion. Stockholders' equity increased to $256 million from $252 million at March 31, 1992, and book value was $13.02 per common share compared with $12.83.
 Magna Group, Inc. operates 87 community banking locations in Illinois and Missouri and is the third-largest bank holding company based in St. Louis. Within the St. Louis metropolitan area, Magna has 62 offices with approximately $2.8 billion in assets. Magna also operates 11 banking locations in Southern Missouri and Kansas City, Missouri which are reported as net assets held for sale.
 MAGNA GROUP, INC.
 Comparative Selected Financial Data
 ($'s in thousands, except per share data)
 Three months ended June 30
 INCOME STATEMENT DATA 1992 1991 Pct. Change
 Net Interest Income $ 36,398 $ 22,623 60.9
 Provision for Loan Losses 4,459 3,118 43.0
 Securities Transactions 235 131 79.4
 Non-interest Income 9,145 5,418 68.8
 Non-interest Expense 32,272 19,356 66.7
 Income Tax Expense 1,993 1,074 85.6
 Net Income Before Change in Acct
 Principle 7,054 4,624 52.6
 Effect of Change in Acct
 Principle -- -- --
 Net Income $ 7,054 $ 4,624 52.6
 COMMON SHARES
 Period End Primary 19,471 13,479 44.5
 Average Fully Diluted 20,541 14,576 40.9
 PER COMMON SHARE
 Fully Diluted Net Income $ .35 $ .33 6.1
 Book Value 13.02 14.00 (7.0)
 Tangible Book Value 12.45 13.25 (6.0)
 Dividends .17 .17 --
 BALANCE SHEET DATA -- END OF PERIOD
 Total Assets $3,716,936 $2,281,992 62.9
 Loans, Net of Unearned Income 2,366,169 1,429,574 65.5
 Total Earning Assets 3,411,549 2,074,568 64.4
 Reserve for Loan Losses 43,795 17,278 153.5
 Total Deposits 3,271,195 1,979,437 65.3
 Total Debt 76,577 24,700 210.0
 Stockholders' Equity 255,578 188,757 35.4
 Total Non-performing Loans 63,155 36,860 71.3
 Foreclosed Property 13,793 6,120 125.4
 Total Non-performing Assets 76,948 42,980 79.0
 RATIO ANALYSIS
 Net Interest Margin 4.43 pct. 4.66 pct. --
 Non-interest Expense as percent
 of Average Assets (A) 3.42 3.37 --
 Net Non-interest Expense as percent
 of Average Assets (B) 2.43 2.42 --
 Return on Average Assets .76 .82 --
 Return on Average Total
 Stockholders' Equity 11.24 9.89 --
 Non-performing Loan Ratio (C) 2.67 2.58 --
 Non-performing Asset Ratio (D) 3.23 2.99 --
 Loan Reserve as percent of
 Non-performing Loans 69.35 46.87 --
 Net Loan Charge-offs as percent of
 Average Loans (E) 1.40 1.66 --
 Reserve for Loan Losses as percent
 of Loans 1.85 1.21 --
 Leverage Ratio 6.17 7.86 --
 Six Months Ended June 30
 INCOME STATEMENT DATA 1992 1991 Pct. Change
 Net Interest Income $ 72,119 $ 45,058 60.1
 Provision for Loan Losses 11,340 9,567 18.5
 Securities Transactions 235 154 52.6
 Non-interest Income 18,312 10,698 71.2
 Non-interest Expense 66,454 38,607 72.1
 Income Tax Expense 2,159 874 147.0
 Net Income Before Change in Acct
 Principle 10,713 6,862 56.1
 Effect of Change in Acct
 Principle 1,915 -- NM
 Net Income $ 12,628 6,862 84.0
 COMMON SHARES
 Period End Primary 19,471 13,479 44.5
 Average Fully Diluted 20,537 14,577 40.9
 PER COMMON SHARE
 Fully Diluted Net Income $ .63 $ .50 26.0
 Book Value 13.02 14.00 (7.0)
 Tangible Book Value 12.45 13.25 (6.0)
 Dividends .34 .34 --
 RATIO ANALYSIS
 Net Interest Margin 4.39 pct. 4.60 pct. --
 Non-interest Expense as percent
 of Average Assets (A) 3.48 3.35 --
 Net Non-interest Expense as percent
 of Average Assets (B) 2.49 2.41 --
 Return on Average Assets .68 .60 --
 Return on Average Total
 Stockholders' Equity 10.07 7.35 --
 Non-performing Loan Ratio (C) 2.67 2.58 --
 Non-performing Asset Ratio (D) 3.23 2.99 --
 Loan Reserve as percent of
 Non-performing Loans 69.35 46.87 --
 Net Loan Charge-offs as percent of
 Average Loans (E) 1.96 1.24 --
 Reserve for Loan Losses as percent
 of Loans 1.85 1.21 --
 Leverage Ratio 6.17 7.86 --
 (A) Excludes foreclosed property expense.
 (B) Excludes securities transactions and foreclosed property expense.
 (C) Non-accrual loans, 90+ days past due loans and restructured loans to total loans.
 (D) Non-performing loans plus foreclosed property to total loans plus foreclosed property.
 (E) Net loan charge-offs annualized.
 NM - Not meaningful.
 Certain amounts in the above financial data have been reclassified to conform with the June 30, 1992 presentation. Such reclassifications had no effect on net income.
 -0- 7/14/92
 /CONTACT: George Klann, 314-963-2569, or Mary E. Scholz, 314-963-2545, both of Magna Group/
 (MAGI) CO: Magna Group Inc. ST: Missouri IN: FIN SU: ERN


SM -- NY029 -- 9023 07/14/92 10:34 EDT
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