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NORTH SIDE SAVINGS BANK REPORTS NET INCOME FOR THE FOURTH QUARTER AND FISCAL YEAR END; BOARD DECLARES REGULAR QUARTERLY CASH DIVIDEND

 NORTH SIDE SAVINGS BANK REPORTS NET INCOME FOR THE FOURTH QUARTER
 AND FISCAL YEAR END; BOARD DECLARES REGULAR QUARTERLY CASH DIVIDEND
 FLORAL PARK, N.Y., Oct. 28 /PRNewswire/ -- North Side Savings Bank (NASDAQ: NSBK) today reported net income for the fourth quarter and fiscal year ended Sept. 30, 1992, of $1,449,000 or $.36 per share and $5,071,000 or $1.25 per share, an increase of 50 percent and 9 percent over the respective comparable periods ended Sept. 30, 1991, of $972,000 or $.24 per share and $4,667,000 or $1.15 per share.
 Net interest income, before the provision for loan losses, increased $4.0 million or 44 percent and $12.8 million or 36 percent for the three and 12 months ended Sept. 30, 1992, over the comparable periods of fiscal 1991 as the bank's interest rate spreads improved by approximately 97 basis points and 55 basis points to approximately 3.53 percent and 3.10 percent for the respective periods. The provision for loan losses was $3.6 million and $10.8 million for the quarter and fiscal year ended Sept. 30, 1992, an increase of $1.1 million and $4.7 million from the same respective periods last year. These provisions, net of charge-offs, resulted in an increase of $2.4 million in the allowance for loan losses from $12.6 million at Sept. 30, 1991, to $15.0 million at Sept. 30, 1992. Management believes such an increase is prudent, even though the bank's non-performing loans decreased from $59.8 million ($7.7 million of which were 1-4 family) at Sept. 30, 1991, to $52.8 million ($8.4 million of which are 1-4 family) at Sept. 30, 1992. The economy in general and the commercial real estate market in particular have shown few signs of improvement over the past fiscal year. Other real estate owned increased $5.7 million to $17.6 million during fiscal 1992, primarily due to the addition of one large land loan.
 Other expenses, including deposit insurance premiums, increased $1.1 million and $6.6 million for the three and 12 months ended Sept. 30, 1992, compared to 1991, primarily due to increased personnel, occupancy and other costs related to the acquisition of certain assets, liabilities and five branches of the former Yorkville Federal Savings Association and five branches of the former Beacon Federal Savings Association in September and October 1991, as previously reported. At Sept. 30, 1992, North Side continues to operate two of the ten acquired branches as North Side branches, the others having been either sold or consolidated. The final such sale took place on Sept. 25, 1992. These actions are consistent with North Side's intentions as announced at the time of such acquisitions. Other expenses have successively decreased $.5 million and $.1 million in the bank's third and fourth fiscal quarters ended Sept. 30, 1992, from each of the preceding quarters, generally reflecting savings achieved as a result of these sales and consolidations. The full impact of such expense reductions should be reflected in the coming fiscal year. F.D.I.C. deposit insurance premiums increased $.1 million and $.9 million for the same three- and 12-month periods.
 Total assets and liabilities decreased $20.9 million from Sept. 30, 1991, to Sept. 30, 1992. The significant variances in assets consisted of decreases in money market investments of $96.7 million, in investment securities of $47.6 million, in mortgage loans of $29.9 million, in commercial and other loans of $10.3 million, and in amounts due from the Resolution Trust Corporation of $47.0 million. Such decreases were substantially offset by an increase of $206.3 million in mortgage-backed securities. Total deposits decreased $23.8 million, while shareholders' equity increased $4.1 million. North Side has increasingly relied upon mortgage-backed securities as a source of steady interest income and high cash flow to maintain its net interest margins in this period of declining interest rates. This portfolio currently represents approximately 48 percent of the bank's total assets and had a market value at Sept. 30, 1992, that was $13.1 million in excess of book value with an estimated remaining average life of three years. Additionally, the bank has approximately $7.7 million of net unearned discounts recorded on its books at Sept. 30, 1992, from the assets acquired from the Resolution Trust Corporation in the Yorkville and Beacon transactions.
 Commenting on the quarterly and year end results, North Side Savings Bank's chief executive officer, Thomas M. O'Brien, stated, "I am pleased to report the continued improvement in fourth quarter and fiscal year results of operations for the bank. This occurred during a period of minimal economic recovery and sustained problems from oversupply and depressed commercial real estate values in the bank's service areas. The bank's core earnings improved significantly, primarily due to declining interest rates, and the fact that interest rates paid on deposits declined faster than interest rates earned on invested assets. The period of consolidation and sale of previously acquired branches should positively impact earnings in future periods as the full effect of these actions is realized. Consistent with its strategy, North Side has also significantly reduced its exposure to the higher credit risk inherent in commercial real estate lending over the last several years, reducing this portfolio from a high of approximately $367 million at Oct. 31, 1988, to approximately $230 million at Sept. 30, 1992, or approximately 15 percent of assets. I believe that the bank is positioned to benefit significantly in terms of both asset quality and earnings if the economic recovery begins to gather any momentum."
 At Sept. 30, 1992, the bank's book value per share was $24.61. The bank's ratio of Tier I or core capital to average assets was 5.87 percent compared to the minimum requirement of 3 percent. Total risk- based capital was 11.67 percent compared to the minimum regulatory requirement of 7.25 percent. The risk-based capital minimum regulatory requirement will be 8.0 percent beginning Dec. 31, 1992.
 At the regular board meeting held on Oct. 27, 1992, the board declared a $.10 per share quarterly cash dividend payable on Dec. 4, 1992, to shareholders of record on Nov. 20, 1992. This will be North Side's 13th consecutive quarterly cash dividend payment.
 NORTH SIDE SAVINGS BANK
 Consolidated Statements of Condition
 (Dollars in thousands)
 9/30/92 9/30/91
 ASSETS
 Cash and due from banks $ 9,302 $ 14,088
 Money market investments 5,449 102,101
 Investment securities, net 75,614 123,240
 Mortgage-backed securities, net 720,494 514,176
 Loans, net of premium and discount:
 Mortgage loans 594,786 624,660
 Commercial loans 7,454 10,755
 Other loans 9,748 16,729
 Total 611,988 652,144
 Less allowance for loan losses 15,012 12,600
 Loans, net 596,976 639,544
 Accrued interest receivable 13,534 13,451
 Premises and equipment, net 16,893 15,497
 Other real estate owned 17,641 11,920
 Excess of cost over fair value of
 net assets acquired 10,192 11,111
 Amounts due from Resolution Trust
 Corporation -- 47,032
 Other assets 21,123 15,912
 Total assets $1,487,218 $1,508,072
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
 Deposits $1,340,584 $1,364,404
 Mortgagors' escrow payments 8,102 6,454
 Borrowed funds 22,276 25,646
 Other liabilities 16,517 15,940
 Total liabilities 1,387,479 1,412,444
 Shareholders' Equity:
 Preferred stock, par value $1 per share,
 5 million shares authorized, none
 outstanding -- --
 Common stock, par value $1 per share,
 10 million shares authorized, 4,053,420
 shares and 4,050,869 shares issued and
 outstanding at Sept. 30, 1992 and
 Sept. 30, 1991 4,053 4,051
 Paid-in capital 49,409 49,404
 Surplus fund 24,101 24,101
 Undivided profits 24,156 20,705
 Unrealized depreciation on certain
 marketable equity securities (80) (558)
 Unallocated shares in management
 development and recognition plan (1,587) (1,532)
 Unearned portion of incentive compensation (313) (543)
 Total shareholders' equity 99,739 95,628
 Total liabilities and shareholders'
 equity $1,487,218 $1,508,072
 NORTH SIDE SAVINGS BANK
 Consolidated Condensed Statements of Income
 (Dollars in thousands, except per share amounts)
 Periods ended Three Months 12 Months
 Sept. 30 1992 1991 1992 1991
 Interest income $27,073 $28,224 $118,874 $112,200
 Interest expense 14,019 19,190 70,223 76,305
 Net interest income 13,054 9,034 48,651 35,895
 Provision for loan losses 3,587 2,450 10,837 6,162
 Net interest income after
 provision for loan losses 9,467 6,584 37,814 29,733
 Net (loss) gain on sales
 of investments (157) 465 (253) 824
 Net (loss) gain on sales
 of mortgage-backed securities (200) -- 564 --
 Net gain (loss) on sale
 of other real estate
 owned ("OREO") and write-
 down in value of OREO 4 (400) (950) (698)
 Other income 868 552 3,554 2,430
 Other expenses 7,192 6,105 29,889 23,334
 Income before taxes 2,790 1,096 10,840 8,955
 Provision for income taxes 1,341 124 5,769 4,288
 Net income $ 1,449 $ 972 $ 5,071 $ 4,667
 Net income per share (A) $.36 $.24 $1.25 $1.15
 (A) -- Based on the weighted average number of shares outstanding of 4,052,931 and 4,051,936 for the three and 12 month periods ended Sept. 30, 1992, and of 4,050,869 for each of the 1991 periods, respectively.
 -0- 10/28/92
 /CONTACT: John McDermott, senior vice president of North Side Savings Bank, 516-488-6900, ext. 221/
 (NSBK) CO: North Side Savings Bank ST: New York IN: FIN SU: ERN DIV


GK-OS -- NY015 -- 5876 10/28/92 10:19 EST
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