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SECURITY INVESTMENTS GROUP REPORTS SECOND QUARTER RESULTS

 SECURITY INVESTMENTS GROUP REPORTS SECOND QUARTER RESULTS
 VINELAND, N.J., Aug. 14 /PRNewswire/ -- Security Investments Group,


Inc. (NASDAQ: SSLN), the parent company of Security Savings Bank, SLA, ended the second quarter of 1992 with a consolidated net loss of $4,011,000, or $0.86 per share.
 This compares to a reported net income of $113,000, or $0.02 per share for the same period in 1991.
 For the six months ending June 30, 1992, the company reported a consolidated net loss of $6,651,000, or $1.42 per share compared to a net income of $76,000 or $0.02 per share for the six months ended June 30, 1991. According to Ronald A. Seagraves, president and chief executive officer, "While the results are very disappointing, they are consistent with the board of director policy of aggressively pursuing troubled assets in an effort to clean up the balance sheet."
 According to Seagraves, "While the corporation experienced an increase in net interest income for the second quarter as compared to the second quarter of 1991, such income was offset by the write-down of two assets. Subsequent to the end of the quarter, a non-performing loan that was to be restructured was instead re-classified from substandard to doubtful due to a material change in the value of lettered securities held as collateral. Additionally, a portion of the loan backed by real estate collateral was classified as insubstance foreclosure which required a valuation adjustment. Combined, these changes required a charge to earnings in the amount of $3.2 million. In addition, net income was reduced during the quarter by $1.5 million due to the revaluation of the excess service fee asset. This asset has had a dramatic change in value due to the record low level of interest rates in the marketplace which is causing high levels of home mortgage. refinancing." Continued downward movement of interest rates may cause increased levels of home mortgage refinances which could further impair the value of this asset, the company said.
 The write-down placed the company's tangible, core and risk-based capital ratios at 0.45 percent, 1.62 percent and 3.83 percent, respectively. The present federal requirements are 1.50 percent, 3.00 percent and 7.20 percent, respectively.
 At June 30, 1992, loans past due 90 days or more and non-performing assets declined to approximately $78.3 million or 6.34 percent of total assets, from $83.5 million or 6.60 percent at March 31, 1992. Non- performing assets at Dec. 31, 1991, were $91.2 million or 6.99 percent. At June 30, 1992, the bank's reserves for possible loan losses were $20.6 million. This compares to $21.4 million at Dec. 31, 1991.
 Seagraves stated that the institution has been pursuing external sources of capital and previously announced that a definitive agreement was signed with Meridian Bancorp, Inc. of Reading, Pa., to sell 22 Security locations in southern New Jersey to that holding company. The transaction will take place following required regulatory and stockholder approvals. This is expected to occur in late 1992.
 In another restructuring move, earlier in the year, Seagraves announced that the company had reached an agreement to sell its subsidiary, Greentree Mortgage Corporation. This transaction is now expected to be completed during the third quarter of 1992.
 These actions were taken as the result of the company's ongoing pursuit of external capital sources to meet capital compliance.
 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
 (Unaudited; in thousands, except share data)
 Periods ended Three months Six months
 June 30 1992 1991 1992 1991
 Operations:
 Total interest income $22,541 $28,187 $45,447 $57,092
 Total interest expense 15,270 21,833 31,942 44,684
 Net interest income 7,271 6,354 13,505 12,408
 Provision for loan losses 1,610 984 1,903 1,675
 Other income 13 1,591 (1,601) 3,750
 Total non-interest expense 9,963 7,537 17,558 15,222
 Loss before taxes (4,289) (576) (7,557) (739)
 Income taxes 309 --- 309 11
 Loss from continuing
 operations (4,598) (576) (7,866) (750)
 Income from discontinued
 operations 587 689 1,215 826
 Net (loss) earnings (4,011) 113 (6,651) 76
 (Loss) earnings per share:
 Before discontinued
 operations $(.98) $(.12) $(1.68) $(.16)
 Discontinued operations .12 .14 .26 .18
 Net (loss) earnings (.86) .02 (1.42) .02
 Average number of common
 shares outstanding 4,685,900 4,685,900 4,685,900 4,685,900
 Financial Condition June 30, 1992 Dec. 31, 1991
 (unaudited)
 Total assets $1,235,633 $1,304,311
 Loans receivable, net 726,862 783,327
 Mortgage-backed securities 228,440 185,883
 Investment securities 42,935 29,156
 Interest receivable 8,546 9,828
 Real estate for sale or under development 19,292 18,893
 Excess cost over value of net
 tangible assets acquired 52,233 54,129
 Deposits 864,576 918,500
 Advances and other borrowings 292,311 299,103
 Total shareholders' equity 58,956 65,607
 /delval/
 -0- 8/14/92
 /CONTACT: Ernest T. Szeker Jr., executive vp and chief financial officer, 609-691-2400 or Margarita Aponte, 609-691-3681, both of Security Investments Group/
 (SSLN) CO: Security Investments Group, Inc. ST: New Jersey IN: FIN SU: ERN


MJ-JS -- PH020 -- 0145 08/14/92 16:04 EDT
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Date:Aug 14, 1992
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