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 FLORAL PARK, N.Y., Oct. 21 /PRNewswire/ -- North Side Savings Bank (NASDAQ: NSBK) reported net income of $3.1 million, or $0.73 per share, for the fourth quarter ended Sept. 30, 1993, compared to $1.4 million, or $0.34 per share, for the same period in fiscal 1992. In addition, the bank completed the bulk sale of loans previously classified as held for sale in connection with the balance sheet restructuring and the accelerated asset disposition program previously reported in the bank's quarter ended March 31, 1993. Primarily as a result of this sale, non-performing loans decreased from $52.8 million at Sept. 30, 1992, to $17.3 million at Sept. 30, 1993, with a corresponding increase in the ratio of the bank's allowance for loan losses to non-performing loans from 28 percent to 64 percent. Total non-performing assets decreased from $70.4 million, or 4.73 percent of assets, at Sept. 30, 1992, to $26.1 million, or 1.89 percent of assets, at Sept. 30, 1993.
 Net interest income decreased $1.2 million from the comparable quarter of a year ago. A significant factor contributing to this decrease was the temporary increase in money market investments in connection with the aforementioned loan sale which, subsequent to the quarter end, was decreased through investments in a combination of residential loans and mortgage-backed securities. The provision for loan losses decreased $2.4 million between the comparable three month periods primarily because of the decrease in non-performing loans. There were no sales of securities in the fourth quarter of fiscal 1993 compared to $.4 million in losses on sales for the similar quarter of 1992. Other expenses decreased $.4 million, or approximately 5 percent, during the quarter to $6.5 million compared to $6.9 million for the same quarter of fiscal 1992. The provision for taxes increased $.3 million between the comparable quarters primarily due to the increase in income before the provision for taxes.
 For the year ended Sept. 20, 1993, North Side is reporting a loss of $12.8 million, or $2.99 per share, compared to net income of $5.1 million, or $1.19 per share, for the prior fiscal year. The fiscal 1993 results of operations were negatively impacted by the balance sheet restructuring and accelerated asset disposition program previously reported. These actions resulted primarily in increases in the current fiscal year compared to the prior fiscal year of the provision for loan losses of $5.5 million, the provision for the disposition of assets of $11.1 million, the increase in the amortization of goodwill of $9.3 million, and the increase in Other Real Estate Owned (OREO) expense of $10.6 million. The bank's core earnings have remained strong as evidenced by the increase in net interest income of $4.8 million over the comparable year to $53.4 million and the decrease of $1.5 million, or 5.08 percent, to $27.1 million in other expenses over this same time frame. The bank's interest rate margin for fiscal 1993 was 3.84 percent compared to 3.25 percent for fiscal 1992. The decrease in other expenses was due to the continued benefits of previous branch consolidations and sales resulting in lower compensation, occupancy and computer costs. The benefit for income taxes in fiscal 1993 of $4.0 million is due to the loss before the provision for income taxes in fiscal 1993 compared to a provision for taxes of $5.8 million due to income of $10.8 million before such provision in fiscal 1992. The net benefit of the cumulative effect of accounting changes of $3.0 million in the fiscal year 1993 was also reported previously.
 For the full year, assets and liabilities plus shareholders' equity each decreased $103.6 million from Sept. 30, 1992, to Sept. 30, 1993. On the asset side, the $220.1 million decrease in loans, net, to $376.9 million was partially offset by an increase of $108.0 million in money market investments, as a result of the temporary increase previously discussed. Again approximately half of the decrease in loans was due to the bulk loan sale, with the balance of such decrease being due to normal amortization and satisfactions. Deposits decreased $60.3 million, borrowed funds decreased $22.3 million, and total shareholders' equity decreased $11.8 million, mainly due to the $12.8 million loss for the year.
 Commenting on the fourth quarter and year end results, Thomas M. O'Brien, North Side's chief executive officer, stated: "I am pleased to see the continued strong improvement in earnings during the fourth quarter. I believe that these solid quarterly earnings are largely the result of the special restructuring and accelerated asset disposition charges which caused the bank to report a loss for the full fiscal year. While these charges were painful in the short-term, they have provided the foundation for improved earnings. Although I believe the bank's real estate-related asset quality problems are generally behind us, bank management must now focus on improving earnings in a period of low investment yields. We must also operate the bank as efficiently as possible, with a branch network that not only serves the needs of our customers and communities, but which also contributes to the bank's overall efficiency. I believe North Side is now well positioned to meet these new challenges."
 North Side's capital ratios exceed current regulatory requirements, meeting the highest "well capitalized" regulatory definition. The bank's book value per share was $20.54 and the ratio of shareholders' equity to total assets was 6.36 percent at Sept. 30, 1993.
 Consolidated Statements of Condition
 (dollars in thousands)
 Periods ended Sept. 30, 1993 1992
 Cash and due from banks $ 9,694 $ 9,302
 Money market investments 113,400 5,449
 Loans held for sale 4,419 --
 Investment securities, net 60,342 75,614
 Mortgage-backed securities, net 750,062 720,494
 Loans, net of premium & discount:
 Mortgage loans 376,236 594,786
 Commercial loans 5,762 7,454
 Other loans 6,032 9,748
 Total 388,030 611,988
 Less allowance for loan losses 11,114 15,012
 Loans, net 376,916 596,976
 Accrued interest receivable 10,012 13,534
 Premises and equip., net 16,111 16,893
 Other real estate owned (net of
 allowance of $9.0 million and $0
 at 9/30/93 and 9/30/92,
 respectively) 8,789 17,641
 Excess of cost over fair value of
 net assets acquired -- 10,192
 Other assets 33,914 21,123
 Total assets $ 1,383,659 $ 1,487,218
 Liabilities and shareholders' equity:
 Deposits $ 1,280,295 $ 1,340,584
 Mortgagors' escrow payments 4,779 8,102
 Borrowed funds -- 22,276
 Other liabilities 10,632 16,517
 Total liabilities 1,295,706 1,387,479
 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,
 4,281,888 and 4,053,420 shares
 issued and outstanding at 9/30/93
 and 9/30/92, respectively
 (See Note A) 4,282 4,053
 Paid-in capital 52,908 49,409
 Surplus fund 24,101 24,101
 Undivided profits 7,238 24,156
 Unrealized depreciation on certain
 marketable equity securities (11) (80)
 Unallocated shares in Management
 Development and Recognition Plan (413) (1,587)
 Unearned portion of incentive
 compensation (152) (313)
 Total shareholders' equity 87,953 99,739
 Total liabilities &
 shareholders' equity $ 1,383,659 $ 1,487,218
 Consolidated Condensed Statements of Operations
 (Dollars in thousands, except per share amounts)
 Periods ended Three months 12 months
 Sept. 30, 1993 1992 1993 1992
 Interest inc. $21,679 $27,073 $97,415 $118,874
 Interest exp. 9,781 14,018 43,984 70,223
 Net interest inc. 11,898 13,055 53,431 48,651
 Provision for
 loan losses 1,200 3,587 16,308 10,837
 Net interest inc.
 after provision for
 loan losses 10,698 9,468 37,123 37,814
 Losses on sales of
 investment securities,
 mortgage-backed securities
 and other real estate
 owned 1 354 476 639
 Provision for disposition
 of assets -- -- 11,063 --
 Other inc. 762 868 3,030 3,554
 Amort. of excess cost
 over fair value of
 net assets acq. -- 230 10,192 920
 OREO expense 196 95 11,035 389
 Other expenses 6,518 6,867 27,128 28,580
 Inc. (loss) bef.
 provision (bene.)
 for inc. taxes &
 cumulative effect of
 changes 4,745 2,790 (19,741) 10,840
 Provision (bene.)
 for inc. taxes 1,619 1,341 (3,961) 5,769
 Inc. (loss) bef.
 cumulative effect
 of accounting
 changes 3,126 1,449 (15,780) 5,071
 Cumulative effect of
 accounting changes:
 Post retirement
 benefits cost -- -- (2,300) --
 Income taxes -- -- 5,329 --
 Net inc. (loss) $ 3,126 $ 1,449 $(12,751) $ 5,071
 Inc. (loss) per
 share bef. accounting
 changes (A) $.73 $.34 $(3.70) $1.19
 Net inc. (loss)
 per share (A) $.73 $.34 $(2.99) $1.19
 (A) -- Based on the weighted average number of share outstanding of 4,276,337 and 4,266,615 for the three and 12 month period ended Sept. 30, 1993, and 4,256,274 and 4,255,279 for the three and 12 month periods ended Sept. 30, 1992, respectively. Prior period income per share was restated to reflect the 5 percent stock dividend.
 -0- 10/21/93
 /CONTACT: John McDermott, senior vice president of North Side Savings Bank, 516-488-6900, ext. 221/

CO: North Side Savings Bank ST: New York IN: FIN SU: ERN

TW-SH -- NY018 -- 5108 10/21/93 11:05 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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