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ST. PAUL BANCORP REPORTS THIRD QUARTER AND NINE-MONTH EARNINGS; BOARD DECLARES REGULAR QUARTERLY CASH DIVIDEND

 CHICAGO, Oct. 12 /PRNewswire/ -- St. Paul Bancorp, Inc. (NASDAQ: SPBC), the holding company for Chicago-based St. Paul Federal Bank For Savings, today reported net income of $11.1 million, or $0.81 per share, for the three months ended Sept. 30, 1993. These results represent a 23 percent increase over the $9.0 million, or $0.72 per share, earned in the third quarter of 1992.
 Net income for the first nine months of 1993 was a record $31.9 million, or $2.36 per share, an increase of 14 percent over 1992 nine- month earnings of $28.0 million, or $2.24 per share.
 Joseph C. Scully, chairman and chief executive officer, attributed the company's strong performance to higher net interest income, lower income taxes, and significant increases in other income derived from diverse sources.
 In conjunction with these results, the board of directors of St. Paul Bancorp today declared the company's 26th consecutive regular quarterly cash dividend. The $0.10 per share dividend will be paid Nov. 16, 1993, to shareholders of record as of Oct. 29, 1993.
 On an annualized basis, St. Paul Bancorp's returns on average assets and average equity for the three months ended Sept. 30, 1993, were 1.18 percent and 13.43 percent, respectively. At Sept. 30, 1993, St. Paul Federal Bank's capital continued to exceed all regulatory requirements by wide margins.
 Net interest income before the provision for loan losses was $30.9 million for the 1993 quarter, an increase of 12 percent over the $27.7 million recorded in the comparable 1992 period. For the first nine months of 1993, net interest income before the provision for loan losses was up 14 percent to $94.5 million. The improvement in net interest income resulted from an increase in the bank's net interest margin to 3.44 percent for the third quarter of 1993, from 3.24 percent in the year-ago period. The bank's net interest margin for the second quarter of 1993 was 3.58 percent. The bank's weighted average interest spread stood at 3.47 percent at Sept. 30, 1993.
 Other operating income increased 21 percent to $8.7 million for the third quarter of 1993, from $7.2 million for the comparable 1992 quarter. For the first nine months of 1993, other operating income rose 12 percent to $23.3 million, from $20.7 million in the year-ago nine months. The major components of growth in other operating income for both the third quarter and first nine months of 1993 were income from transaction fees, ATM operations, and discount brokerage commissions.
 The bank's combined loan and real estate (REO) loss provision was $2.9 million for the 1993 third quarter, vs. $4.0 million for the three months ended Sept. 30, 1992, and $3.2 million for the quarter ended June 30, 1993. During the first nine months of 1993, the combined loan and REO loss provision totaled $10.1 million, as compared to $9.5 million for the first nine months of 1992.
 Non-performing assets, comprised of real estate owned (REO) and delinquent loans, were $52.2 million or 1.40 percent of total assets at Sept. 30, 1993, as compared with $48.4 million or 1.38 percent of total assets at Dec. 31, 1992, and $49.3 million or 1.30 percent of total assets at June 30, 1993.
 At the end of the recent quarter, the bank's general valuation allowance for losses on loans and REO stood at $45.9 million, or 1.87 percent of total loans and REO and 87.9 percent of non-performing assets. This compares with $46.8 million, or 1.88 percent of total loans and REO and 95.0 percent of non-performing assets at June 30, 1993.
 Non-interest expense was $20.9 million for the three months ended Sept. 30, 1993, an increase of 18 percent from the $17.7 million for the comparable 1992 period. The company's annualized ratio of general and administrative expense to average assets increased to 2.21 percent for the three months ended Sept. 30, 1993, from 1.99 percent for the comparable 1992 period. The increase in this ratio relates primarily to the addition of 11 branch offices in the first nine months of 1993, as well as to higher FDIC insurance premiums and occupancy expenses. Additionally, in the lower interest rate environment, the company has experienced a decline in average assets due to prepayments on loans. The bank's net burden ratio (expenses less other income, compared to average assets), however, declined modestly to 1.29 percent for the 1993 third quarter, from 1.33 percent for the second quarter of 1993. The net burden ratio for the third quarter of 1992 was 1.18 percent.
 Despite higher earnings, the company's provision for income taxes for the third quarter of 1993 was $4.8 million, or 2.3 percent lower than the $4.9 million provision in the year-ago quarter. The company attributed the lower effective income tax rate to the settlement of certain federal income tax issues relating to prior years.
 At Sept. 30, 1993, St. Paul Bancorp's total assets were $3.7 billion and loans, including mortgage-backed securities, totaled $3.1 billion. Deposits totaled $3.3 billion, while stockholders' equity grew to $334.5 million, equivalent to 8.98 percent of total assets or $25.51 per share.
 St. Paul Bancorp is the holding company for St. Paul Federal Bank For Savings, Chicago's largest independent thrift institution. The company has $3.7 billion in assets and operates 50 retail banking offices throughout metropolitan Chicago. The company provides discount brokerage, insurance and annuity, and real estate development services through other subsidiaries.
 ST. PAUL BANCORP, INC.
 Dollars in Thousands Except Per Share Amounts
 Periods Ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Interest income $ 63,985 $ 67,228 $ 196,349 $ 212,979
 Interest expense 33,067 39,538 101,873 129,838
 Net interest income 30,918 27,690 94,476 83,135
 Provision for loan losses 2,500 3,750 9,250 7,625
 Net interest after
 provision for loan losses 28,418 23,940 85,226 75,510
 Other operating income:
 Income from real estate
 operations 907 569 2,113 1,630
 Net gain on assets sold 464 546 1,374 2,183
 Net trading account gain
 (loss) 13 46 58 17
 Other income 7,315 6,032 19,716 16,906
 Total other operating
 income 8,699 7,193 23,261 20,736
 Other operating expenses 20,913 17,711 60,783 52,136
 (Income) Loss from foreclosed
 real estate operations 318 (508) 989 1,033
 Income before taxes 15,886 13,930 46,715 43,077
 Provision for taxes 4,781 4,894 14,845 15,047
 Net income $ 11,105 $ 9,036 $ 31,870 $ 28,030
 Shares outstanding 13,112,275 12,118,980 13,112,275 12,118,980
 Earnings per share:
 Primary $ 0.81 $ 0.72 $ 2.36 $ 2.24
 Fully diluted 0.80 0.72 2.34 2.23
 Balance Sheet Highlights Sept. 30, 1993 Dec. 31, 1992
 Total assets $ 3,724,571 $ 3,500,260
 Loans receivable (A) 2,445,697 2,318,879
 Mortgage-backed securities (A) 655,421 643,941
 Investment securities
 (including FHLB stock) (A) 434,710 377,079
 Goodwill 1,847 2,377
 Deposits 3,252,019 2,985,124
 Borrowings 109,015 186,408
 Stockholders' equity 334,472 287,341
 Accumulated provision for loan
 and REO losses 50,465 51,085
 Nonperforming assets 52,201 48,408
 Book value per share $ 25.51 $ 23.61
 NOTE: (A) Excludes assets held for sale.
 -0- 10/12/93
 /CONTACT: Susan H. Fisher, 312-804-2284, or Robert N. Parke, 312-804-2360, both of St. Paul Bancorp, Inc./
 (SPBC)


CO: St. Paul Bancorp, Inc. ST: Illinois IN: FIN SU: ERN DIV

TM-CK -- NY010 -- 0949 10/12/93 09:06 EDT
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Date:Oct 12, 1993
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