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PROGRESS FINANCIAL CORPORATION REPORTS PROFITABLE FOURTH QUARTER AND CONTINUED DECREASE IN NON-PERFORMING ASSETS

 PLYMOUTH MEETING, Pa., Jan. 25 /PRNewswire/ -- Progress Financial Corporation (NASDAQ-NMS: PFNC), whose primary subsidiary is Progress Federal Savings Bank, announced net income for the quarter ended Dec. 31, 1992, of $445,000 or $.44 per share.
 This compares to a $88,000 loss or $.09 per share for the fourth quarter of 1991. For the 12 months ended Dec. 31, 1992, the company recorded net income of $1.3 million in comparison with a net loss of $10.2 million for the comparable 1991 period.
 W. Kirk Wycoff, president and chief executive officer, stated, "We are pleased to report our fourth consecutive quarter of positive results. We were able to accomplish this even though it was necessary to continue to provide for losses on loans and real estate owned during the fourth quarter. However, further reductions in our level of non-performing assets are necessary to achieve positive operating results in the future."
 Total non-performing assets continued to decline to their lowest level in 24 months. Non-performing loans and real estate owned ("REO"), net, declined to $34.8 million at Dec. 31, 1992, down $3.6 million from $38.4 million at Sept. 30, 1992, and $15.6 million lower than the $50.4 million reported at Dec. 31, 1991.
 Loan and REO charge-offs (net of recoveries) for the three months ended Dec. 31, 1992, totalled $175,000 and $683,000, respectively, compared to $189,000 and $388,000, respectively, for the same period of 1991. At Dec. 31, 1992, the allowance for possible loan losses and REO totalled $2.7 million and $35,000, respectively, compared to $2.8 million and $274,000, respectively, at Sept. 30, 1992, and $5.5 million and $1.5 million, respectively, at Dec. 31, 1991.
 Total loans, net, were $153.7 million at Dec. 31, 1992, compared to $169.6 million at Sept. 30, 1992, and $193.8 million at Dec. 31, 1991, while mortgage-backed securities were $86.0 million at Dec. 31, 1992, compared to $64.7 million at Sept. 30, 1992, and $47.9 million at Dec. 31, 1991.
 Net interest income before provision for possible loan losses was $2.2 million for the three months ended Dec. 31, 1992, compared to $2.0 million for the three months ended Sept. 30, 1992, and $2.0 million for the three months ended Dec. 31, 1991.
 Total other income decreased to $1.2 million for the three months ended Dec. 31, 1992, in comparison with $2.5 million for the three months ended Sept. 30, 1992, but increased in comparison with the $939,000 recorded for the three months ended Dec. 31, 1991, respectively. Total other income for the fourth quarter of 1992 included $534,000 in net gains on the sale of fixed rate residential mortgages that were originated and securitized by the bank, $140,000 in net losses on sales of mortgage-backed securities and $529,000 in net income on property sold. Total other income for the three months ended Sept. 30, 1992, included $1.3 million in gains on sales of mortgage- backed securities.
 Total other expenses decreased to $2.9 million for the three months ended Dec. 31, 1992, from $4.1 million for the three months ended Sept. 30, 1992, and $3.0 million for the three months ended Dec. 31, 1991. The decrease in other expenses for the three months ended Dec. 31, 1992, over the three months ended Sept. 30, 1992, is due to a $1.5 million decrease in provision for REO. Other expenses for the three months ended Dec. 31, 1992, included $267,000 for professional services, which was $137,000 less than the $404,000 expensed in the three months ended Dec. 31, 1991.
 At Dec. 31, 1992, the bank's tangible and core capital was 2.36 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 5.60 percent, which is below the current 8.0 percent requirement. The bank is currently in compliance with the quarter end capital targets in its Capital Plan as approved by the OTS in April 1992.
 If the bank does not comply with the terms and conditions of its Capital Plan and the Capital Directive, the bank is subject to the possibility of various actions by the OTS or the FDIC, including enforcement actions and an increased individual minimum capital requirement. Additionally, effective Dec. 19, 1992, the FDIC Improvement Act of 1991 requires the OTS to take certain supervisory actions when insured institutions fall within one of five enumerated capital categories. Under the act, the bank is classified as a "significantly undercapitalized" institution and, as such, is subject to potential significant operating restrictions as well as increased capital requirements. Were the bank's capital to fall below 2 percent, it would be classified as a "critically undercapitalized" institution and become subject to possible further regulatory action. As indicated above, at Dec. 31, 1992, the bank's tangible and core capital ratios were 2.36 percent.
 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 full-service offices in Bridgeport, Plymouth Meeting, Conshohocken, Jeffersonville, King of Prussia, Norristown, and one in the Andorra section of Philadelphia. The company's stock is traded over the counter on the NASDAQ National Market System under the symbol "PFNC."
 PROGRESS FINANCIAL CORPORATION
 Selected Consolidated Financial Data
 (Dollar amounts in thousands, except per-share data)
 Financial Condition:
 Dec. 31 1992 1991
 Investment securities $5,260 $2,212
 Mortgage-backed securities:
 Held for sale(A) 25,073 ---
 Held for investment 60,938 48,875
 Loans, net 153,733 193,789
 Loans held for sale(A) 2,761 ---
 Real estate owned, net 27,867 36,418
 Total assets 291,542 312,622
 Deposits 245,015 265,197
 Borrowings 36,071 38,585
 Stockholders' equity 6,877 5,599
 (A) At lower of aggregate cost or market at Dec. 31, 1992.
 At or for periods ended Three months 12 months
 Dec. 31 1992 1991 1992 1991
 Results of Operations:
 Interest income $5,319 $6,286 $21,979 $27,122
 Interest expense 3,099 4,290 13,738 18,010
 Net interest income 2,220 1,996 8,241 9,112
 Provision for possible loan losses 86 --- 275 (10,144)
 Net interest income (expense) after
 provision for possible loan losses 2,134 1,996 7,966 (1,032)
 Other income:
 Mortgage origination and servicing 75 19 265 288
 Service charges on deposits 142 134 592 550
 Gains (losses) from sales of
 mortgage-backed securities (140) 341 1,197 341
 Gains from mortgage banking
 activities 534 71 1,428 319
 Income on property sold, net 529 71 1,321 153
 Income (loss) from affiliates
 and joint ventures 13 108 472 (138)
 Other 84 195 342 476
 Total other income 1,237 939 5,617 1,990
 Other expense:
 Salaries and employee benefits 943 1,041 3,832 4,598
 Occupancy 283 287 1,134 1,166
 Data processing 320 145 769 564
 Furniture, fixtures and equipment 131 118 479 555
 Insurance premiums 195 222 784 865
 Provision for real estate owned 444 313 2,835 2,607
 Loan and real estate owned
 expenses, net 235 245 380 621
 Professional services 267 404 1,223 1,170
 Marketing 36 26 217 129
 Other 44 222 579 751
 Total other expense 2,898 3,023 12,232 13,025
 Income (loss) before income taxes 473 (88) 1,351 (12,068)
 Income tax expense (benefit) 28 --- 74 (1,823)
 Net income (loss) 445 (88) 1,278 (10,245)
 Per-share Data:
 Net income (loss) $.44 $(.09) $1.27 $(10.14)
 Book value 6.81 5.54 6.81 5.54
 Operating Data:
 Return on average assets (pct.) .14 (.02) .42 (3.31)
 Return on average
 stockholders' equity (pct.) 6.78 (1.69) 20.91 (104.29)
 Average stockholders' equity
 to average assets (pct.) 2.13 1.65 1.99 3.81
 Non-performing assets as a
 percentage of total assets 11.95 16.31 11.95 16.31
 Interest rate spread (pct.) 3.72 3.59 3.68 3.71
 /delval/
 -0- 1/25/93
 /CONTACT: W. Kirk Wycoff, president and CEO (ext. 200), Gerald P. Plush, senior vp and CFO (ext. 203), or Renee M. Ebersole, director of Investor Relations (ext. 312), 215-825-8800, all of Progress Financial/
 (PFNC)


CO: Progress Financial Corporation ST: Pennsylvania IN: FIN SU: ERN

JS-CC -- PH028 -- 8575 01/25/93 14:11 EST
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Date:Jan 25, 1993
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