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SECURITY REPORTS FOURTH QUARTER AND YEAR-END RESULTS

 SECURITY REPORTS FOURTH QUARTER AND YEAR-END RESULTS
 VINELAND, N.J., Feb. 11 /PRNewswire/ -- Security Investments Group,


Inc. (NASDAQ: SSLN), the parent company of Security Savings Bank, SLA, today reported consolidated net income of $499,000 or $.11 per share for the fourth quarter ended Dec. 31, 1991.
 This compares to a net loss of $13.6 million or $2.90 per share reported for the comparable period last year.
 For the 12 months ended Dec. 31, 1991, the company reported a net profit of $921,000 or $.20 per share, as compared to a net loss of $19.6 million or $4.17 per share for the same period last year.
 At year-end 1991, the company's total assets were $1.304 billion, a decline of approximately $98 million, or 6.96 percent from total assets at Dec. 31, 1990.
 As a result of the company's earnings and other factors, the institution met its approved capital plan targets at Dec. 31, 1991. The capital plan requires Security to be in full compliance with regulatory capital requirements in 1994.
 Net interest income decreased by $590,000 for the quarter as compared to the same period last year. For the year, net interest income declined by $2.9 million as compared to the same period last year. This reduction resulted from the planned shrinkage in interest earning assets between the comparable periods and the increase in non- performing assets which was somewhat offset by an increase in the net interest margin from reduced market rates of interest.
 Contributing significantly to the results were a reduction in the provision for loan losses as compared to the same period last year, and profits resulting from the sale of mortgage-backed securities.
 For the quarter ended Dec. 31, 1991, the provision for loan losses was $1.9 million compared to $11.3 million for the same period last year. A $9.4 million gain was realized from the sale of mortgage-backed securities during the quarter ending Dec. 31, 1991. The proceeds from the sale were reinvested in lower coupon mortgage-backed securities to decrease the risk of prepayment. For the year, the provision for loan losses was $4.1 million as compared to $20.3 million for 1990. For 1991, a gain of $11 million resulted from the sale of the mortgage- backed securities.
 Partially mitigating these positive factors was a reduction in income relating to mortgage loan servicing activities. Gains on the sale of mortgage loan servicing were unchanged for the quarter, but declined $1.7 million for the 12-month period as compared to the prior year. Income from loan servicing fees was impacted by a $4 million write-down of capitalized excess servicing on loans sold. This write- down contributed to a net reduction in loan servicing fees of $3.8 million for the quarter as compared to 1990, and was the major cause of the $5.1 million decrease in net servicing revenues for the 12- month period as compared to 1990. The primary reason for the write-down was the precipitous drop in interest rates in the fourth quarter of 1991 which created the probability of accelerated prepayment of the underlying loans.
 Operating expenses for the quarter were $12.8 million as compared to $11.7 million for the same period last year. The change in expenses was the result of a $2.2 million increase during the quarter as compared to the prior year in the carrying costs of real estate owned, primarily resulting from valuation adjustments on foreclosed real estate. For the 12 months ended Dec. 31, 1991, operating expenses decreased by $4.2 million, a reduction of approximately 9 percent over the comparable period last year.
 At Dec. 31, 1991, loans 90 days or more past due and non-performing assets were $91.2 million as compared to $79 million at Sept. 30, 1991. At Dec. 31, 1991, the bank's reserves for possible loan losses were $21.6 million. This compares to $21 million at Sept. 30, 1991.
 A comprehensive examination of Security was concluded in January 1992 by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation and New Jersey Department of Banking. The financial effects of the examination are included in the results of operation for the fourth quarter of 1991.
 Security Savings Bank, SLA, a subsidiary of Security Investments Group, Inc., is a state-chartered financial institution headquartered in Vineland. Security operates 30 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
 (In thousands except share data)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Operations:
 Total interest income $24,910 $30,826 $110,679 $133,016
 Total interest expense 19,434 24,760 85,866 105,259
 Net interest income 5,476 6,066 24,813 27,757
 Provision for loan losses 1,901 11,270 4,084 20,342
 Other income 9,701 3,394 23,161 19,242
 Total non-interest expense 12,765 11,716 42,727 46,964
 Earnings (loss) before taxes 511 (13,526) 1,163 (20,307)
 Income taxes 12 54 242 (751)
 Net earnings (loss) 499 (13,580) 921 (19,556)
 Earnings (loss) per share:
 Net earnings (loss) $.11 $(2.90) $.20 $(4.17)
 Average number of common
 shares outstanding 4,685,900 4,685,900 4,685,900 4,685,900
 Financial Condition Dec. 31, 1991 Dec. 31, 1990
 Total assets $1,304,311 $1,401,854
 Loans receivable, net 783,327 945,860
 Mortgage-backed securities 185,883 208,240
 Investment securities 29,156 1,219
 Interest receivable 9,828 10,127
 Real estate for sale or under development 18,893 14,970
 Excess cost over value of net
 tangible assets acquired 54,129 57,919
 Deposits 918,500 990,179
 Advances and other borrowings 299,103 318,802
 Total shareholders' equity 65,607 64,686
 /delval/
 -0- 2/11/92
 /CONTACT: Margarita Aponte of Security Investments Group, 609-691-3681/
 (SSLN) CO: Security Investments Group, Inc. ST: New Jersey IN: FIN SU: ERN


MK-KA -- PH025 -- 8922 02/11/92 15:43 EST
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