Printer Friendly

PROGRESS FINANCIAL CORPORATION REPORTS FIRST QUARTER RESULTS

 PROGRESS FINANCIAL CORPORATION REPORTS FIRST QUARTER RESULTS
 PLYMOUTH MEETING, Pa., April 20 /PRNewswire/ -- Progress Financial Corporation (NASDAQ-NMS: PFNC) (the company), whose primary subsidiary is Progress Federal Savings Bank (the bank), today announced a profit for the quarter ended March 31, 1992, of $197,000 or $.20 per share.
 This compares to a $43,000 loss or ($.04) per share for the first quarter of 1991.
 W. Kirk Wycoff, president and chief executive officer, stated, "The first quarter of 1992 was marked by the first profit in our tenure and by the approval of the bank's capital plan by the Office of Thrift Supervision. The positive results for the quarter were partially driven by the sale of loans originated by the bank. The origination and sale of residential loans is a new business for the bank, and future income from this activity is dependent on market conditions. We are encouraged by these events, but it is important that we intensify our efforts to reduce expenses and collect non-performing assets. Only through sustained operating profitability can we achieve our capital compliance goals."
 Total non-performing assets, which includes non-performing loans and real estate owned (REO), net, increased to $50.6 million at March 31, 1992, up $0.2 million from $50.4 million at Dec. 31, 1991, and $12.3 million higher than the $38.3 million reported at March 31, 1991. Non-performing assets at March 31, 1992, includes $37.1 million of REO. Wycoff commented, "Based on increased sales activity at the various residential construction developments which the bank and its subsidiaries are managing, we are cautiously optimistic that we can reduce our current level of real estate owned in 1992."
 Loan and REO charge-offs (net of recoveries) for the three months ended March 31, 1992, totalled $134,000 and $847,000, respectively, compared to $365,000 and zero, respectively for the same period of 1991. At March 31, 1992, the general allowance for possible loan losses and REO totaled $5.4 million and $612,000, respectively, compared to $5.5 million and $1.5 million, respectively, at Dec. 31, 1991, and $4.1 million and zero at March 31, 1991.
 Total loans, net decreased to $179.3 million at March 31, 1992, from $193.8 million at Dec. 31, 1991, and $270.6 million at March 31, 1991, while mortgage-backed securities increased from $311,000 and $47.9 million at March 31 and Dec. 31, 1991, respectively, to $68.9 million at March 31, 1992. Wycoff noted "The significant increase in mortgage-backed securities is consistent with our goal to diversify the interest-earning assets of the bank as well as improve asset quality, as these securities are guaranteed by federal agencies."
 Net interest income before provision for possible loan losses was $1.9 million for the three months ended March 31, 1992, compared to $2 million for the three months ended Dec. 31, 1991, and $2.6 million for the same period in 1991. The decrease in net interest income was primarily due to the decline in market interest rates which continue to compress the bank's interest margin.
 Total other income increased to $856,000 for the three months ended March 31, 1992, in comparison with $845,000 and $382,000 for the three months ended Dec. 31 and March 31, 1991, respectively. Total other income for the first quarter of 1992 included $248,000 in net gains on the sale of fixed rate residential mortgages and mortgage-backed securities, and $219,000 in net income on property sold.
 Total other expenses decreased to $2.5 million for the three months ended March 31, 1992, from $2.9 million for the three months ended Dec. 31, 1991, and $2.7 million for the three months ended March 31, 1991. Other expenses for the three months ended March 31, 1992, included $348,000 in professional services, of which $220,000 were legal fees related to ongoing collection efforts of non-performing assets.
 At March 31, 1992, the bank's tangible and core capital was 1.84 percent, which is in excess of the tangible capital requirement of 1.5 percent but below the core capital requirement of 3 percent. The bank's risk-based capital ratio was 3.75 percent, which is below the current 7.2 percent requirement.
 Progress Financial Corporation is a unitary thrift holding company headquartered in Plymouth Meeting. The business of the company consists primarily of the operation of Progress Federal Savings Bank, a federally chartered stock savings bank which conducts community banking business through eight full-service offices in Plymouth Meeting, Conshohocken, Sandy Hill, Jeffersonville, King of Prussia, Norristown and one in the Andorra section of Philadelphia. The company's stock is quoted on the NASDAQ National Market System under the symbol "PFNC."
 PROGRESS FINANCIAL CORPORATION
 Consolidated Financial Data
 (Dollars amounts in thousands, except per-share data)
 At or for the
 quarter ended March 31 1992 1991
 Financial Condition:
 Investment securities $8,076 $12,159
 Mortgage-backed securities 68,910 311
 Loans, net 179,262 270,571
 Real estate owned, net 37,084 18,633
 Total assets 309,481 320,761
 Deposits 262,141 288,124
 Borrowings 37,555 12,000
 Stockholders' equity 5,797 15,801
 Results of Operations:
 Interest income $5,823 $7,660
 Interest expense 3,892 5,029
 Net interest income 1,931 2,631
 Provision for possible loan losses 50 384
 Net interest income after provision
 for possible loan losses 1,881 2,247
 Other income:
 Mortgage origination and servicing 6 50
 Service charges on deposits 147 137
 Gain on sales of loans and securities 248 ---
 Income on property sold, net 219 13
 Income from affiliates
 and joint ventures 78 2
 Other 158 180
 Total other income 856 382
 Other expense:
 Salaries and employee benefits 1,005 1,301
 Occupancy 289 287
 Data processing 149 157
 Furniture, fixtures and equipment 117 160
 Insurance premiums 196 198
 Loan and real estate owned expenses 226 211
 Professional services 348 156
 Other 210 224
 Total other expense 2,540 2,694
 Income (loss) before income taxes 197 (65)
 Income tax expense (benefit) --- (22)
 Net income (loss) 197 (43)
 Per-share data:
 Net income (loss) $.20 ($.04)
 Book value $5.74 $15.64
 Operating Data:
 Return on average assets (percent) .06 (.01)
 Return on average
 stockholders' equity (percent) 3.51 (.27)
 Average stockholders' equity
 to average assets (percent) 1.79 4.94
 Non-performing assets as a
 percentage of total assets 16.16 11.94
 Interest rate spread (percent) 3.60 3.69
 /delval/
 -0- 4/20/92
 /CONTACT: Gerald P. Plush, senior vice president and chief financial officer, 215-825-8800, ext. 203, or Renne M. Ebersole, director, investor relations, 215-825-8800, ext. 312, both of Progress Financial/
 (PFNC) CO: Progress Financial Corporation ST: Pennsylvania IN: FIN SU: ERN


MP-KA -- PH020 -- 0052 04/20/92 12:20 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:1128
Previous Article:DYERSBURG ANNOUNCES PRELIMINARY RESULTS FOR SECOND QUARTER
Next Article:GPU ANNOUNCES FIRST QUARTER EARNINGS


Related Articles
FLORIDA PROGRESS CORPORATION RELEASES FIRST QUARTER EARNINGS
BIRD CORPORATION REPORTS IMPROVED FIRST QUARTER
CHEMDESIGN REPORTS FIRST QUARTER OPERATING RESULTS AND RETURNS TO PROFITABILITY
FIRST QUARTER MARKS CONTINUED PROFIT IMPROVEMENT FOR MULTI-COLOR
INTERMET REPORTS IMPROVED PROFITS
PDS FINANCIAL CORPORATION ANNOUNCES FIRST-QUARTER RESULTS
Yellow Chairman Speaks At Merrill Lynch Conference; Forecasts Improved Second Quarter
Progress Financial Corporation Announces First Quarter Earnings Of $1.5 Million, a 16% Increase Over First Quarter 1999.
Progress Financial Corporation Announces the Disposition Of its Investment in Assisted Living Communities.
Genitope Corporation Announces Financial Results for First Quarter Ended March 31, 2004.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters