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SECURITY INVESTMENTS GROUP ISSUES RESULTS

 VINELAND, N.J., Nov. 23 ~PRNewswire~ -- Security Investments Group, Inc. (NASDAQ: SSLN), headquartered in Vineland, announced today that as previously reported, Security will take additional write-downs and establish additional reserves for losses on loans and real estate owned.
 Security reported a loss of $19,575,000 (or $4.18 per share) for the quarter and a loss of $26,226,000 (or $5.60 per share) for the year to date.
 The preliminary charges to earnings in the third quarter were a write-down of $4.1 million to reduce the value of the excess service fee assets, and additional charges to reserves for loan losses in the amount of $13 million. The majority of the increase in the provision for loan losses was attributable to changes in the status of certain commercial loans as a result of changes in the circumstances of the individual borrowers or loans. In addition, the provision was increased by the company as a result of asset reclassifications required by regulators in connection with the current examination (which reclassifications the bank did not agree with in certain cases). To a lesser extent, the increase reflects examiners' use of methodologies which required reserves to be calculated as a higher percentage of classified assets than previously required by examiners. The 20 year lows in mortgage rates that occurred during the third quarter increased the projections of prepayment speeds on outstanding mortgage loan portfolios and necessitated the additional write-down of the excess service fee asset.
 Net interest income declined by $.5 million for the third quarter as compared to the third quarter of 1991. This reduction was largely attributable to the decline in assets of $118 million since Dec. 31, 1991.
 For the nine months ended Sept. 30, 1992, net interest income was relatively flat to the same period last year.
 Operating expenses for the quarter increased by $.6 million over the same quarter last year, and for the nine months, operating expenses increased by $1.3 million compared to the same period in 1991. These increases were attributable to the increase in the carrying cost of real estate owned, which increased $.8 million and $1.9 million for each of the two periods, respectively.
 At Sept. 30, 1992, loans past due 90 days or more and non-performing assets were $70.2 million or 5.92 percent of total assets, approximately $13.8 million of which are 1-4 family residential mortgage loans, compared to non-performing assets at Dec. 31, 1991, of $91.2 million or 6.99 percent. During this quarter approximately $25 million of bank buildings were reclassified as real estate held for sale and included in the non-performing asset total. At Sept. 30, 1992, the bank's reserves for possible loan losses were $21.5 million. This compares to $21.4 million at Dec. 31, 1991. The effort to dispose of non-performing assets is continuous. The bank currently has approximately $4.2 million in executed agreements of sale awaiting settlement to dispose of additional non-performing assets.
 The company's tangible, core and risk-based capital ratios were (1.10 percent), (.10 percent) and (.15 percent), respectively, at Sept. 30, 1992. The present federal requirements are 1.50 percent, 3 percent and 7.20 percent, respectively.
 The depletion of Security's remaining capital could subject Security Savings Bank to seizure by the federal government through the establishment of a conservatorship or receivership. Accordingly, the ability of the corporation to continue as a going concern is dependent upon the willingness of regulatory authorities to forebear from taking such action and allowing the corporation additional time to work out its non-performing asset problems. As previously reported, a regulatory application is pending in connection with the proposed sale of 21 branches to Meridian Bancorp, Inc. (Meridian). The branch sale would result in higher capital ratios for Security Savings Bank.
 Under the agreement, Meridian will assume at book value all of the bank's deposit liabilities at these branches, and certain other deposits, which approximate $550 million, as well as approximately $271 million of the bank's FHLB advances. The deposit transfer will be funded by the bank primarily through a transfer at book value of certain of its performing loans, mortgage-backed securities and certain other assets. Meridian will pay the company a deposit premium of 2.70 percent of certain qualified deposits assumed or approximately $13.2 million.
 The branch sale transaction is subject to receipt by both the company and Meridian of all required regulatory approvals, including approval by the OTS and by the company's stockholders. While there can be no guarantee as to whether this transaction will be approved, it is expected the decision will be forthcoming in late 1992. This transaction would be the basis of a revised capital plan.
 In another restructuring move, the company completed the sale of its subsidiary, Greentree Mortgage Corporation, on Nov. 17, 1992.
 These actions were taken as the result of the company's ongoing pursuit of external capital sources to meet capital compliance.
 Following consummation of the transactions, Security would continue to operate as a New Jersey chartered financial institution headquartered in Vineland with eight offices in southern New Jersey. Based upon the sale to Meridian, the bank's assets would approximate $350 million, and the non-performing asset portfolio would be retained by the bank as well as all general and specific valuation allowances. Completion of the branch sale transaction, which will include the simultaneous write-off of existing goodwill of approximately $51.3 million associated with the branches to be sold, is intended to increase the bank's tangible capital.
 Security Savings Bank, SLA, a subsidiary of Security Investments Group, Inc., is a state-chartered financial institution headquartered in Vineland. The deposit accounts of Security are insured by the Federal Deposit Insurance Corporation (FDIC). Security operates 29 branches throughout southern New Jersey and provides businesses and consumers with a wide variety of financial products and services.
 SECURITY INVESTMENTS GROUP, INC. AND SUBSIDIARY
 Selected Financial Data
 (Unaudited; in thousands, except share data)
 Periods ended Three months Nine months
 Sept. 30 1992 1991 1992 1991
 Operations:
 Total interest income $20,202 $27,253 $65,297 $84,001
 Total interest expense 14,188 20,697 46,130 65,381
 Net interest income 6,014 6,556 19,167 18,620
 Provision for loan losses 12,964 508 16,495 2,183
 Other income (3,980) 1,254 (5,784) 4,856
 Total non-interest expense 8,498 7,911 24,428 23,133
 Loss before taxes (19,428) (609) (27,540) (1,840)
 Income taxes 6 8 315 19
 Loss from continuing
 operations (19,434) (617) (27,855) (1,859)
 Income from discontinued
 operations (141) 963 1,629 2,281
 Net (loss) earnings ($19,575) $346 ($26,226) $422
 (Loss) earnings per share:
 Before discontinued
 operations $(4.15) $(.13) $(5.95) $(.39)
 Discontinued operations (.03) .20 .35 .48
 Net (loss) earnings (4.18) .07 (5.60) .09
 Average number of common
 shares outstanding 4,685,900 4,685,900 4,685,900 4,685,900
 Financial Condition Sept. 30, 1992 Dec. 31, 1991
 (unaudited)
 Total assets $1,186,062 $1,304,311
 Loans receivable, net 705,693 783,327
 Mortgage-backed securities 222,662 185,883
 Investment securities 43,859 29,156
 Interest receivable 7,488 9,828
 Real estate for sale or under development 18,558 18,893
 Excess cost over value of net
 tangible assets acquired 51,285 54,129
 Deposits 835,094 918,500
 Advances and other borrowings 290,559 299,103
 Total shareholders' equity 39,381 65,607
 ~delval~
 -0- 11~23~92
 ~CONTACT: Ronald A. Seagraves, president and CEO, 609-691-2400, or Ernest T. Szeker Jr., executive vice president~CFO, 609-691-2400, both of Security~
 (SSLN)


CO: Security Investments Group, Inc. ST: New Jersey IN: FIN SU: ERN

JS-CC -- PH042 -- 0789 11~23~92 18:17 EST
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Date:Nov 23, 1992
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