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NEW HORIZONS THIRD QUARTER EARNINGS TRIPLE TO $812,000 OR 37 CENTS PER SHARE

 SAN RAFAEL, Calif., Oct. 26 /PRNewswire/ -- New Horizons Savings and Loan Association (NASDAQ: NHSL) today reported third quarter net income more than tripled as interest earning assets increased, low-cost core deposits grew and its loan portfolio improved. For the third quarter ended Sept. 30, 1993, New Horizons earned $812,000 or 37 cents per share compared to $261,000 or 12 cents per share for the like quarter a year ago. Compared to the year earlier, the association's interest earning assets at Sept. 30, 1993, increased $12 million, deposits increased $28 million and non-performing assets were 2.11 percent of total assets compared to 3.22 percent a year ago.
 "We have made great strides over the past two years in improving the quality of our loan portfolio. We instituted a loan quality control program and aggressively disposed of real estate acquired through foreclosure," said James Barnett, chairman and chief executive officer. "Following a thorough review of our portfolio we decided not to set aside any additional reserves for possible loan losses this quarter."
 New Horizons' net interest income after provision for loan losses, which is a basic measure of bank profitability, increased 28 percent to $2.7 million for the third quarter ended Sept. 30, 1993, from $2.1 million in the third quarter of 1992. Interest earning assets grew $12 million to $271.7 million at the end of September from $259.7 million a year ago. "The bigger asset base offsets the effects of the decline in our interest rate spread from 3.95 percent for the third quarter of 1992 to 3.63 percent this quarter," he continued.
 For the first nine months of 1993, New Horizon's net income totaled $2.4 million or $1.11 per share. In the like period a year ago, when a change in an accounting principle increased net income by $375,000 or 17 cents per share, New Horizons' net income was $2.2 million or $1.01 per share.
 "We intend to capitalize on the strong reputation we have developed within the custom construction market in our area. By maintaining high levels of service for this specialized customer base, we are building market share. We believe that pursuing good quality, highly profitable loans will enable New Horizons to optimize its profit opportunities," Barnett added.
 "Loan originations were scaled back to $17.4 million this quarter compared to $44.3 million in the third quarter of 1992, primarily because we are not pursuing loans outside our market and because our refinancing activity has diminished from last year's feverish pace," Barnett added.
 Total non-performing assets, including real estate owned through foreclosure, were $5.9 million, or 2.11 percent of assets at Sept. 30, 1993, compared to $8.6 million, or 3.22 percent of assets a year ago. New Horizon's non-performing assets to total assets is considerably better than the average of 3.72 percent for all publicly traded California thrifts as of June 30, 1993. Non-accrual loans and loans more than 90 days past due declined to $5.5 million at Sept. 30, 1993, from $7.0 million one year earlier. New Horizons' provision for potential loan and real estate losses now totals $4.4 million, which equals 1.58 percent of total assets, or 74.9 percent of non-performing assets. The ratios measuring loss allowance to both total assets and non-performing assets are now better than the industry's national averages.
 General and administrative expense totaled $1.3 million, which is substantially below New Horizons' $2.6 million net interest income, before provision for loan loss. New Horizons' ratio of operating expense to average assets was 2.02 percent, which is in line with the ratios achieved by other well-managed institutions.
 New Horizons' assets totaled $280.5 million at Sept. 30, 1993, compared to $268.0 million a year ago. Shareholders' equity stood at $21.4 million and tangible book value was $9.77 per share at Sept. 30, 1993. New Horizons' tangible capital ratio is 7.64 percent and its risk-based capital ratio is 13.47 percent, both well above regulatory minimums.
 New Horizons Savings is a two-branch institution headquartered in Marin County, Calif. New Horizons operates in San Francisco and the counties north of the Golden Gate Bridge. The core of New Horizon's business, providing customized loans for homes and for home construction, is a market niche that most of the major banks in Northern California have abandoned.
 NEW HORIZONS SAVINGS AND LOAN ASSOCIATION
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 Third Quarter Ended Nine Months Ended
 Sept. 30, 1993 1992 1993 1992
 Interest income $5,415,433 $5,267,916 $16,936,909 $15,910,399
 Interest expense $2,771,652 $2,752,677 $ 8,415,533 $ 8,309,953
 Net interest income
 after provision for
 losses on loans $2,674,031 $2,095,739 $ 8,416,626 $ 6,860,661
 Other operating
 (expense) income $ 32,327($ 278,540)($ 218,917)($ 45,953)
 General and
 administrative
 expense $1,323,432 $1,130,926 $ 4,036,349 $ 3,355,512
 Income tax $ 570,677 $ 424,859 $ 1,714,754 $ 1,598,979
 Cumulative effect of
 change in accounting
 principle -- -- -- $ 375,206
 Net income $ 812,249 $ 261,414 $ 2,446,606 $ 2,235,423
 Earnings per share $ 0.37 $ 0.12 $ 1.11 $ 1.01
 Weighted average
 shares outstanding 2,210,944 2,210,944 2,210,944 2,210,944
 Sept. 30, 1993 Dec. 31, 1992 Sept. 30, 1992
 Total assets $280,465,863 $274,441,831 $267,955,854
 Loans $243,741,912 $234,747,941 $225,865,066
 Deposits $235,376,521 $207,476,817 $206,933,800
 Shareholders'
 equity $ 21,418,493 $ 19,059,059 $ 20,043,653
 Tangible book value
 per share $ 9.77 $ 8.69 $ 9.14
 NEW HORIZONS SAVINGS AND LOAN ASSOCIATION
 FINANCIAL STATISTICS
 (Ratios annualized)
 Third quarter 1993 1992
 Return on average assets 1.15 pct. 0.43 pct.
 Return on average equity 15.41 pct. 5.21 pct.
 Efficiency ratio (operating expense/revenue) 54.04 pct. 48.14 pct.
 Operating expense/assets 2.02 pct. 1.98 pct.
 Net interest margin 3.86 pct. 4.25 pct.
 Average financial assets/average
 financial liabilities 108.06 pct. 108.94 pct.
 Average equity/average loans and
 mortgage-backed securities 7.80 pct. 8.67 pct.
 Number of full-time equivalent employees 40 39
 Earnings per employee $ 20,306 $ 6,703
 Average assets per employee $7,068,637 $6,273,914
 Average stockholders' equity to average
 assets 7.46 pct. 8.21 pct.
 Tangible capital ratio 7.64 pct. 7.48 pct.
 Core capital ratio (subject to final
 adjustment) 7.64 pct. 7.48 pct.
 Risk-based capital ratio (subject to
 final adjustment) 13.47 pct. 12.56 pct.
 LOANS:
 LOAN ORIGINATIONS: (IN 000'S) $ 17,394 $ 44,294
 LOANS BY COLLATERAL TYPE: (IN 000'S)
 Land $ 7,844 $ 6,377
 Residential real estate $ 143,180 $ 132,206
 Multifamily real estate $ 35,232 $ 31,500
 Commercial real estate $ 40,894 $ 38,967
 Construction $ 35,308 $ 40,762
 Consumer $ 345 $ 439
 Total loan gross receivables $ 262,803 $ 250,251
 Third Quarter 1993 1992
 ALLOWANCE FOR LOAN LOSSES: (IN 000'S)
 Balance at beginning of quarter $ 4,017 $ 1,941
 Provision for loan losses ($ 30) $ 419
 Charge offs (net of recoveries) ($ 26) $ -0-
 Balance at end of quarter $ 3,961 $ 2,360
 Loan loss allowance/total net loans
 (excluding loans held for sales) 1.62 pct. 1.04 pct.
 Loan loss allowance/non-performing loans 88.69 pct. 37.10 pct.
 ALLOWANCE FOR REO LOSS: (IN 000'S)
 Balance at beginning of quarter $ 334 $ -0-
 Provision for REO loss $ 143 $ 277
 Charge offs (net of recoveries) -- ($ 277)
 Balance at end of quarter $ 477 $ -0-
 REO loss allowance to total REO 32.7 pct. -0- pct.
 NON-PERFORMING ASSETS: (IN 000'S)
 Accruing loans - 90 days past due $ -0- $ -0-
 Non-accrual loans $ 5,516 $ 6,995
 Restructured loans $ -0- $ -0-
 Total non-performing loans $ 4,466 $ 6,361
 REO $ 1,458 $ 2,280
 Total non-performing assets $ 5,924 $ 8,641
 Total non-performing assets/total assets 2.11 pct. 3.22 pct.
 Loan and REO loss allowance as a percent
 of non-performing assets 74.91 pct. 27.32 pct.
 -0- 10/26/93
 /CONTACT: Jim Barnett, chairman and chief executive officer, of New Horizons, 415-457-6990/
 (NHSL)


CO: New Horizons Savings and Loan Association ST: California IN: FIN SU: ERN

JH -- SE003 -- 6689 10/26/93 07:53 EDT
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Date:Oct 26, 1993
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