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POUGHKEEPSIE SAVINGS BANK ANNOUNCES THIRD QUARTER EARNINGS

 POUGHKEEPSIE, N.Y., Oct. 25 /PRNewswire/ -- Poughkeepsie Savings Bank, FSB (NASDAQ: PKPS) today reported net income of $476,000, or $0.04 per share, for the quarter ended Sept. 30, 1993, compared with a net loss of $2.6 million, or $0.71 per share, for the third quarter of 1992. For the nine months ended Sept. 30, 1993, net income of $5.1 million, or $0.75 per share, is reported compared with a net loss of $8.5 million, or $2.33 per share, for the first nine months of 1992.
 Total assets at Sept. 30, 1993, were $714.5 million and book value per share was $3.92. Shares outstanding at Sept. 30, 1993, were 12,334,469 which includes the issuance in June 1993 of approximately 8.5 million shares in a rights offering. The Bank's core, tangible and risk-based capital ratios at Sept. 30, 1993, were 6.77 percent, 6.77 percent and 11.76 percent, respectively, all of which substantially exceed regulatory and statutory requirements. The Bank has been designated as "well capitalized" by its regulators.
 Commenting on the results for the third quarter, Joseph B. Tockarshewsky, chairman, president and chief executive officer, said, "The Bank generated earnings from core operations in two consecutive quarters so far. These results are gratifying and are building on the Bank's already strong capital position. We also continued to resolve non-performing assets during the quarter, and we have a good level of resolution activity which should allow us to report lower non-performers by year end."
 Non-performing assets, which include loans delinquent 90 days or more as to interest, non-accrual loans, loans in foreclosure, other real estate owned and investments in joint ventures, were $22.5 million (net of $20.2 million of reserves) at Sept. 30, 1993, or 3.2 percent of total assets (5.98 percent of total assets before reserves). The Sept. 30, 1993, levels indicate improvements from the levels of non-performing assets at June 30, 1993, which were $28.5 million (net of $20.1 million of reserves), or 4.0 percent of total assets (6.85 percent of total assets before reserves). The reduction of non-performers in the third quarter resulted from reduced levels of commercial ORE of $2.1 million, the return to performing status of a $3.0 million multifamily commercial real estate loan and reduced levels of delinquent one- to four-family residential loans. The allowance for loan losses has remained at approximately the same level since Dec. 31, 1992, even though total non-performing assets have declined in the same period by $33.5 million.
 Net interest income was $4.5 million for the quarter ended Sept. 30, 1993, compared with $2.7 million for the same quarter of 1992. For the year-to-date periods of 1993 and 1992, net interest income was $13.0 million and $9.2 million, respectively. Net interest margins for the third quarter of 1993 were 2.62 percent compared with 1.32 percent in the third quarter of last year. The improvement was due to the resolution of a significant amount of non-performing assets, to substantial reductions in the cost of deposits and the cost of and amount of borrowings. Average interest earning assets exceeded average interest bearing liabilities for the quarter ended Sept. 30, 1993, by $33.0 million.
 Net interest margins were slightly lower than the second quarter of 1993 due to lower yields on earning assets which resulted from generally lower levels of interest rates and high levels of prepayments of residential mortgages and mortgage-backed securities. The borrowings outstanding at Sept. 30, 1993, still include $90 million of term advances borrowed in prior years with interest rates substantially above current market levels. These borrowings mature in the first half of 1994.
 Total operating expenses were $4.7 million for the third quarter of 1993 compared with $9.1 million in the same quarter of 1992. On a year-to-date basis, for 1993 and 1992, total operating expenses were $13.8 million and $29.2 million, respectively. These reduced levels of operating expenses in the 1993 periods reflect not only the December 1992 sale of the Bank's mortgage banking subsidiary, but also lower operating expenses at the Bank of approximately $0.3 million and $1.7 million for the third quarter and year-to-date periods of 1993 as compared with 1992. Substantially lower levels of net cost of operation of other real estate for the three- and nine-month periods also contributed to these improvements.
 Poughkeepsie Savings Bank is a community banking institution whose principal market is the Mid-Hudson Valley region of New York, where it operates seven branches. The Bank's deposits are insured by the Federal Deposit Insurance Corporation.
 -0- 10/25/93
 /CONTACT: Joseph B. Tockarshewsky, chairman, president and CEO, 914-431-6211, or Robert J. Hughes, executive vice president and CFO, 914-431-6386, both of Poughkeepsie Savings Bank/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (PKPS)


CO: Poughkeepsie Savings Bank, FSB ST: New York IN: FIN SU: ERN

GK -- NY096 -- 6523 10/25/93 16:40 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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