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RAILROADMEN'S POSTS RECORD QUARTERLY EARNINGS 85 PERCENT INCREASE OVER FIRST QUARTER OF 1991

 RAILROADMEN'S POSTS RECORD QUARTERLY EARNINGS
 85 PERCENT INCREASE OVER FIRST QUARTER OF 1991
 INDIANAPOLIS, April 16 /PRNewswire/ -- Railroadmen's Federal Savings and Loan Association (NASDAQ: RRMN) of Indianapolis today announced earnings of $1,668,863 or $.92 per share for the quarter ended March 31, 1992. This compares to $901,194 or $.59 per share for the same period last year.
 This was a record quarter for the 104-year old thrift and it represents the third consecutive quarter of earnings over $1 million.
 "Our strong core earnings are the primary reason for these outstanding results," said J.R. Kocher, chairman of the board and chief executive officer. "The recent economic environment has clearly benefitted the association. Deposit and borrowing costs are down and our mortgage loan originations are strong. Refinances still make up about a third of our loan production and we're pleased to have about half of our refinance customers come to us from other financial institutions." At the end of the quarter Railroadmen's had committed to $66,810,128 in mortgage loans compared to $21,104,255 at the end of the first quarter of 1991.
 Despite the decline in interest rates, Railroadmen's deposits have decreased slightly - 1.6 percent since the end of 1991. "Our goal in this type of environment is to retain as many customers as possible," said Kocher, "and I believe we have been successful. Our mix of traditional savings products and the variety of annuity and security products available through Twenty-One Service Corporation, address the basic financial goals of our customers. We believe this diverse product menu is the key to customer retention and satisfaction."
 During the first quarter of 1992, the association sold $7.2 million in securities and recognized a gain of $158,922. These investments were selected for sale because they no longer meet the association's investment policy objectives. Additionally, the association sold the former site of its data processing center, and recorded a loss of approximately $101,000. Since converting to in- house processing in 1991, the association no longer had use for this idle facility. Both transactions can strengthen Railroadmen's financial position and can have a positive impact on net earnings in future quarters.
 In addition to its earnings performance, Railroadmen's had a strong quarterly showing in other key areas. Total assets grew to $607 million; shareholders' equity improved from $31.94 million at Dec. 31, 1991 to $33.62 million at March 31, 1992. Book value increased $.93 since year end to $19 per share.
 Railroadmen's earnings include the association's use of net operating loss carryforwards (NOLs). Since 1985, Railroadmen's has utilized NOLs generated in the early 1980s to reduce its federal income taxes.
 The utilization of the association's NOLs resulted in tax savings of $475,410 or $.26 per share for the first quarter of 1992 compared to $254,907 or $.19 per share for the same quarter in 1991. Fully taxed earnings for the association were $1,193,543 or $.66 per share compared to $646,287 or $.40 per share for the same quarter in 1991.
 Over the last five years, Railroadmen's has consistently posted strong earnings and these NOLs are now nearly exhausted. At March 31, 1992, the association had approximately $32,000 remaining in NOLs which will be utilized in the second quarter of 1992. At that time, Railroadmen's will begin recording federal income taxes at an effective annual rate of approximately 29 percent.
 "No matter how you look at it, Railroadmen's has turned in an excellent performance," said Kocher. "Income before recognizing the benefit of the NOLs was $1,193,453 which is 85 percent over the comparable period in 1991 and a 32 percent increase over last year's net income for the first quarter of $901,194."
 Railroadmen's operates 15 full-service branch offices in the greater Indianapolis and Chicago areas.
 RAILROADMEN'S FEDERAL SAVINGS AND LOAN ASSOCIATION
 (Dollars in Thousands Except Per Share Data)
 Operating Highlights(A)
 Three Months Ended
 3/31/92 3/31/91
 Net income before
 benefit of NOLs $ 1,193 $ 646
 Net income after
 benefit of NOLs 1,669 901
 Net income per
 common and common
 equivalent share
 before benefit of NOLs .66 .40
 Net income per
 common and common
 equivalent share(A)
 after benefit of NOLs .92 .59
 Average outstanding
 shares (common and
 common equivalent) 1,817,501 1,321,695
 Return on assets 1.11 .70
 Return on equity 20.45 14.14
 Balance Sheet Highlights
 As of 3/31/92 As of 3/31/91
 Total assets $ 607,089 $ 593,716
 Loans and mortgage-backed
 securities 555,335 542,832
 Deposits 402,876 409,437
 Shareholders' equity 33,624 31,940
 Book value per share 19.00 18.07
 Other Information
 Market closing price 16.75 14.75
 Number of offices 15 15
 Dividends per share (annualized) .30 .30
 (A) Earnings per share information includes net income of the association for all periods presented and of Archer Federal subsequent to their conversion from a mutual association to stock form on April 2, 1991. First quarter 1991 earnings per share do not include the earnings of the acquired thrift which converted on April 2, 1991.
 The acquisition of Archer Federal was accounted for as a pooling- of interests, therefore, 1991 operating and balance sheet information assumes the merger conversion with Archer Federal was effective at the beginning of the periods.
 -0- 4/16/92
 /CONTACT: Kay Neidlinger of Railroadmen's, 317-630-0599, or 800-822-8280, toll free in Indiana only/
 (RRMN) CO: Railroadmen' Savings and Loan Association ST: Indiana IN: FIN SU: ERN


LC -- CL010 -- 9304 04/16/92 12:29 EDT
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