PIONEER BANCORP ANNOUNCES EARNINGS
PIONEER BANCORP ANNOUNCES EARNINGS ROCKY MOUNT, N.C., April 23 /PRNewswire/ -- Pioneer Bancorp, Inc.
(NASDAQ: PSBN), headquartered in Rocky Mount, N.C., reports net income for the quarter ended March 31, 1992, the second quarter of fiscal 1992, of $1,393,528, or $.80 per share, compared to a net loss of $4,927,208, or $2.83 per share, in the second quarter of fiscal 1991, based on weighted average shares outstanding of 1,743,850 and 1,741,421 during the 1992 and 1991 quarters, respectively. For the six months ended March 31, 1992 the Corporation recorded net income of $3,715,775, or $2.13 per share, compared to a $5,813,164 net loss, or $3.34 per share, for the comparable prior year period. Total assets of the Corporation were $421.3 million at March 31, 1992 compared to $508.2 million at March 31, 1991.
Pioneer President Ed Roughton stated, "We are pleased with the results of our continued efforts to successfully restructure troubled debt and reduce nonearning assets in the Company's primary subsidiary, Pioneer Savings Bank, Inc." The Bank's net classified assets declined from $110 million at March 31, 1991 to $63 million at March 31, 1992. During the quarter the Bank completed the sale of a portion of its loan servicing rights, recording a net gain of $837,000. Additionally, the Bank recorded recoveries of amounts previously charged-off of approximately $422,000 and recorded a provision for possible future losses on loans of $235,000 during the quarter. However, the Bank decreased its net income by $470,000 during the quarter with mark-to-market adjustments on a portion of its investment and mortgage loan portfolios. After giving consideration to each of these nonrecurring items, the Company recorded core earnings from operations of approximately $800,000. "The Bank's capital position continues to improve each quarter," noted Roughton. The Bank's net worth at March 31, 1992 was $11.5 million and has a regulatory tangible capital ratio of 2.7 percent, which exceeds the current requirement of 1.5 percent. Regulatory core capital was also 2.7 percent, which falls short of the current regulatory core requirement of 3 percent. As previously announced, the Bank filed an updated and amended capital plan with the Office of Thrift Supervision in November 1991 and this plan has not yet been approved or rejected by the OTS. The plan sets forth detailed projections and assumptions of the Bank's plans to regain full capital compliance not later than Dec. 31, 1994 as provided by 1989 federal legislation. Because Pioneer does not currently meet all regulatory 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. "In view of our current capital of $11.5 million and our improved operating trends, we are hopeful that the OTS will soon find our capital plan acceptable and allow us to operate within the parameters we have proposed," Roughton stated. Separately, the Company and the Bank announce that their shareholders have reappointed Harry Kittner and Ed Roughton to their board of directors for three-year terms. Michael C. Weisman was appointed to a three-year directorate of the Company and William L. Wall was appointed a director of the Bank for a three-year term. Both are currently senior vice presidents of the Company and the Bank. Pioneer Savings Bank currently serves its customers through 19 retail banking offices throughout eastern North Carolina. Customer0 deposits in the Bank are insured by the Federal Deposit Insurance Corporation up to the applicable $100,000 limit. -0- 4/23/92 /CONTACT: Ed Roughton or Bill Wall, Pioneer Bancorp, Inc., 919-446-0611/ (PSBN) CO: Pioneer Bancorp, Inc.; Pioneer Savings Bank ST: North Carolina IN: FIN SU: ERN
CM-DF -- CH019 -- 2040 04/23/92 15:28 EDT
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|Date:||Apr 23, 1992|
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