PIONEER BANCORP, INC. REPORTS RESULTS
PIONEER BANCORP, INC. REPORTS RESULTS ROCKY MOUNT, N.C., Nov. 26 /PRNewswire/ -- Pioneer Bancorp, Inc.
(NASDAQ: PSBN), headquartered in Rocky Mount, N.C., reports net income for the quarter ended Sept. 30, 1991 of $1,391,275, or $.80 per share, compared to a net loss of $12,156,711, or $6.98 per share, in the comparable quarter of fiscal 1990, based on weighted average shares outstanding of 1,741,421 during both periods. For the year, ended Sept. 30, 1991, the Corporation recorded a net loss of $3,923,105 or $2.25 per share, compared to a $18,948,049 net loss, or $10.88 per share, for the fiscal year ended Sept. 30, 1990. Total assets of the Corporation were $459 million at Sept. 30, 1991 compared to $540 million at Sept. 30, 1990.
Net interest income for the fourth quarter increased to $2.8 million compared to $2.2 million for the previous quarter ending June 30, 1991. "This positive indicator reflects the results of our continued efforts to successfully restructure troubled debt in the Corporation's primary subsidiary, Pioneer Savings Bank, Inc.," noted Pioneer President Ed Roughton. "Declining interest rates throughout the period have also decreased the Bank's cost of money, improving net interest income," added Roughton. During the quarter the Bank completed the sale of its Wilmington office having approximately $9 million in deposits and recorded a gain on sale of approximately $100,000. The Bank also sold certain investment securities during the quarter and recorded net gains on sale of approximately $300,000. Additionally, the restructuring of certain troubled debt provided for payments by borrowers of accrued but uncollected interest. Such payments amounted to over $600,000 during the September 1991 quarter. The Bank continues to consolidate operations where possible to reduce general and administrative expenses. In September 1991 the Bank consolidated its two retail banking offices in Louisburg, N.C. into one location. "This consolidation went extremely smoothly and has been very will received by our Louisburg customers," stated Roughton. He added, "During the year ended September 30, 1991, Pioneer sold or closed 7 retail banking offices and sold or liquidated 6 subsidiaries or divisions as well as merging two additional subsidiary operations into the Bank. This was all accomplished in accordance with our strategic plan calling for the elimination of unprofitable business segments and a renewed focus on our core banking business," added Roughton. The Company's independent certified public accountants, Coopers & Lybrand, are currently completing their audit for the year ended Sept. 30, 1991. Management is unaware of any financial statement adjustments that are likely to result during the completion of the audit. Nor is management currently aware of any proposed financial statement adjustments arising from the recent completion of an examination of the Bank by federal and state regulators. The Bank also announced that it filed an updated and amended capital plan with the Office of Thrift Supervision on Nov. 25, 1991. The Bank previously filed a capital plan with OTS on Jan. 31, 1991, which has not been approved or rejected by the OTS. "Although we have not been asked to do so, we felt it imperative that we file this updated plan to more accurately reflect our recent accomplishments and improved financial projections for future periods," stated Roughton. He added that the Bank's net worth at Sept. 30, 1991 was $7.8 million and that its tangible capital ratio was 1.6 percent, which exceeds the current regulatory capital standard of 1.5 percent. Recent federal legislation ("FIRREA") requires that thrift institutions meet all fully phased-in capital requirements no later than Dec. 31, 1994. Since Pioneer does not currently meet its core and risk-based capital requirements, its ability to continue as a going concern is dependent upon the willingness of federal and state regulators to allow the Bank additional time to regain full regulatory capital compliance. Pioneer Savings Bank currently serves its customers through 19 retail banking offices throughout eastern North Carolina. Customer deposits in the Bank are insured by the Federal Deposit Insurance Corporation up to the applicable $100,000. -0- 11/26/91 /CONTACT: Ed Roughton or Bill Wall, Pioneer Bancorp, Inc., 919-446-0611/ (PSBN) CO: Pioneer Bancorp, Inc. ST: North Carolina IN: FIN SU: ERN
DF -- CH003 -- 7199 11/26/91 10:08 EST
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|Date:||Nov 26, 1991|
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