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STANDARD FEDERAL BANK REPORTS 10-PERCENT INCREASE IN FIRST-QUARTER EARNINGS AS OPERATING EARNINGS REACH AN ALL-TIME HIGH

    -- New Record Established for Net Interest Income
    -- Mortgage Volume Approaching Record Levels Once Again
    -- Tangible Capital Increases to 5.25 Percent of Adjusted Assets
    TROY, Mich., April 15 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) reported a 10-percent increase in net income which totaled $24.6 million, or $0.77 per share, for the three months ended March 31, 1993, compared to $22.4 million, or $0.70 per share, for the same period in 1992.  For the first quarter of 1993, return on assets was 1.02 percent (0.94 percent for the first quarter of 1992), while return on stockholders' equity was 15.95 percent (16.76 percent for the first quarter of 1992).
    The significant increase in current-quarter earnings, as compared to the first quarter of 1992, is primarily attributable to an increase in net interest income resulting from the relatively lower levels of market interest rates.  The Bank's net interest margin totaled 3.01 percent of average earning assets during the current quarter, compared to 2.60 percent recorded during the first quarter of 1992.  Consequently, net interest income totaled a record $69.4 million for the first quarter of 1993, a 16-percent increase over the $59.7 million recorded during the comparable quarter last year.
    During the first quarter of 1993, the Bank recognized $4.4 million in gains from sales of recently closed fixed-rate single-family mortgage loans, compared to $6.9 million recorded during the same period in the prior year.  The gains recorded during both periods are due, in large part, to the continuous, strong demand for single-family mortgage loans. The level of future sales and, therefore, gains is dependent upon, among other things, the levels and composition of loan closings, changes in the Bank's asset/liability management strategy, and the general levels of market interest rates.  Due to these factors, gains recognized from the sales of earning assets are subject to significant fluctuations from period to period.
    The following chart presents an analysis of the results of operations for the three-month periods ended March 31, 1993, and 1992. The operating earnings recorded during the first quarter of 1993 represents an all-time record for Standard Federal.  Pretax operating earnings of $33.7 million for the current quarter surpasses, by 6 percent, the previous record of $31.8 million earned during the fourth quarter of 1992.
                                                   Three Months Ended
                                                        March 31,
    Condensed Statements of                          1993      1992
    Operations Data:                                   (unaudited)
                                                   (in millions except
                                                       share data)
    Pretax operating earnings                       $33.7     $27.6
    Gains from sales of earning assets                4.4       6.9
    Pretax earnings                                 38.1       34.5
    Provision for federal income taxes             (13.5)     (12.1)
    Net income                                     $24.6      $22.4
    Earnings per share                             $0.77      $0.70
    During the first quarter of 1993, Standard Federal closed $547.7 million of single-family home mortgage loans, compared to $907.3 million closed during the first quarter of 1992, a decrease of 40 percent.  Approximately $201.5 million, or 37 percent, of total loan closings for the first quarter of 1993 were refinances of existing Standard Federal mortgages.  Consumer demand for mortgage loans has once again begun to increase significantly, especially during the latter part of the first quarter of 1993.  By early April 1993, outstanding mortgage loan commitments totaled more than $550.0 million.  In addition to these commitments, Standard Federal was also in the process of underwriting over $375.0 million of additional single-family mortgage loan applications.  The vast majority of this record-high $925.0 million "pipeline" of loans is expected to close during the second quarter of 1993.
    The Bank's level of nonperforming assets remained relatively stable during the first quarter of 1993, and continues to remain well below industry averages.  Nonperforming assets totaled approximately $73.4 million at March 31, 1993, representing 0.75 percent of total assets at that date.  At Dec. 31, 1992, nonperforming assets totaled approximately $71.7 million, or 0.75 percent of total assets at that date.
    Separately today, the Bank's board of directors's declared a regular quarterly dividend of $0.13 per share to stockholders of record on May 18, 1993, payable June 1, 1993.
    Standard Federal Bank, headquartered in Troy, is Michigan's leading home mortgage lender and the Midwest's largest thrift institution with assets totaling $9.8 billion.  The Bank operates 123 Banking Centers, seven Home Lending Centers and 197 automated teller machines in Michigan, Indiana and Ohio.
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
                         FINANCIAL HIGHLIGHTS
               (Dollars in thousands, except share data)
                                            March 31,       Dec. 31,
                                              1993           1992
                                           (unaudited)
    Total assets                           $9,779,358     $9,544,731
    Investments                               632,632        543,149
    Mortgage-backed securities              3,212,944      3,175,781
    Loans receivable                        5,382,707      5,235,399
    Cost in excess of fair value of
     net assets acquired                      118,013        120,568
    Deposits                                6,596,536      6,527,603
    Borrowings                              2,222,136      2,081,312
    Stockholders' equity                      630,129        609,071
    Book value per share                        20.21          19.56
    Tangible book value per share               16.27          15.54
    Weighted average rate on deposit
     portfolio(1) (pct)                          4.03           4.11
    Equity-to-assets ratio (pct)                 6.44           6.38
    Core capital as a percentage of
     adjusted assets(2) (pct)                    6.10           6.14
    Tangible capital as a percentage
     of adjusted assets(2) (pct)                 5.25           5.14
    Risk-based capital as a percentage
     of risk-adjusted assets(2) (pct)           13.12          13.53
    Ratio of nonperforming assets
     to total assets (pct)                       0.75           0.75
    Ratio of nonperforming assets (net of
     reserves) to total assets (pct)             0.51           0.46
    One-year repricing gap as a percentage
     of total assets(3) (pct)                   -4.37          +5.58
    (1) These rates represent the actual weighted average contractual rates paid to the bank's deposit customers, and exclude the impact of purchase accounting adjustments and interest rate exchange agreements.
    (2) At both dates presented, Standard Federal was in full compliance with each of the three regulatory capital requirements.
    (3) The difference between the estimated amounts of earning assets and interest-bearing liabilities repricing within one year, divided by total assets, based on a current rate scenario.
                                               Three Months
                                                    March 31,
                                               1993           1992
                                                    (unaudited)
    Total interest income                    $179,628       $193,355
    Net interest income                        69,383         59,679
    Net income                                 24,640         22,372
    Earnings per share                           0.77           0.70
    Primary common shares outstanding(1)   32,065,000     31,775,000
    Annualized data (pct):
    Yield on earning assets                      7.88           8.71
    Cost of interest-bearing liabilities         5.08           6.30
    Interest rate spread                         2.80           2.41
    Net interest margin on average
     earning assets                              3.01           2.60
    Operating and administrative expenses
     as a percentage of average assets           1.45           1.29
    Return on average assets                     1.02           0.94
    Return on average stockholders' equity      15.95          16.76
    (1) Consists of the weighted average number of shares and common stock equivalents (i.e., the effect of stock options) outstanding during the period, used to calculate earnings per share.
                                                Three Months Ended
                                                    March 31,
                                               1993           1992
                                                    (unaudited)
    Deposit activity:
    Net increase (decrease)                   $68,933        $26,886
    Net increase (decrease) as a percentage
     of beginning deposits (pct)                  1.1            0.4
    Interest credited, included above         $64,411        $69,024
    Mortgage loan activity:
    Dollar volume of residential
     loan closings                          $547,676        $907,260
    Dollar volume of apartment
     loan closings                               200             200
    Dollar volume of commercial
     loan closings                               ---             ---
    Total loan closings                     $547,876        $907,460
    30-year fixed-rate loans closed as a
     percentage of total loans closed (pct)       32              34
    15-year fixed-rate loans closed as a
     percentage of total loans closed (pct)       39              48
    Balloon loans closed as a percentage of
     total loans closed (pct)                     13               8
    Adjustable-rate loans closed as a
     percentage of total loans closed (pct)       16              10
    Average yield on 30-year fixed-rate
     loans closed (pct)                         8.04            8.91
    Average yield on 15-year fixed-rate
     loans closed (pct)                         7.59            8.62
    Average yield on balloon loans
     closed (pct)                               7.36            8.65
    Average yield on adjustable-rate
     loans closed (pct)                         6.39            7.40
    Repaid, net                            ($271,000)      ($293,500)
    Securitized and sold                   ($121,528)      ($177,753)
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                   (In thousands, except share data)
                                            March 31,       Dec. 31,
                                              1993           1992
                                           (unaudited)
    Assets
    Cash                                     $104,041       $132,008
    Cash equivalents                           23,607        106,002
    Term federal funds sold and securities
     purchased under resale agreements         25,000         25,000
    Investment securities                     584,025        412,147
    Mortgage-backed securities              3,212,994      3,175,781
    Loans receivable available for sale       455,483        351,512
    Loans receivable                        4,927,224      4,883,887
    Total earnings assets                   9,228,333      8,954,329
    Accrued interest receivable                56,986         53,731
    Real estate and other repossessed assets   35,379         24,868
    Premises and equipment                    173,829        173,898
    Cost in excess of fair value of
     net assets acquired                      118,013        120,568
    Other assets                               62,777         85,329
    Total assets                            9,779,358      9,544,731
    Liabilities and Stockholders' Equity
    Liabilities:
    Deposits                                6,596,536      6,527,603
    FHLB advances and other long-term
     borrowings                             1,897,963      1,853,605
    Securities sold under agreements
     to repurchase                            324,173        227,707
    Total interest-bearing liabilities      8,818,672      8,608,915
    Accrued interest payable                   36,521         30,849
    Undisbursed payments on
     participation sold                        76,780        115,050
    Advance payments by borrowers
     for taxes and insurance                   88,906         28,146
    Federal income taxes payable               18,704         10,220
    Liability for checks and
     money orders issued                       68,013         78,045
    Other liabilities                          41,633         64,435
    Total liabilities                       9,149,229      8,935,660
    Stockholders' Equity:
    Serial preferred stock, $1 par value
     per share; 10 million shares
     authorized; none issued                      ---            ---
    Common stock, $1 par value per share;
     50 million shares authorized;
     31,178,920 and 31,146,200 shares
     issued and outstanding in 1993 and
     1992, respectively                        31,179         31,146
    Additional paid-in capital                210,435        209,997
    Retained earnings, partially restricted   388,515        367,928
    Total stockholders' equity                630,129        609,071
    Total liabilities and
     stockholders' equity                  $9,779,358     $9,544,731
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except share data)
                                              Three Months Ended
                                                    March 31,
                                              1993           1992
                                                   (unaudited)
    Interest Income:
    Money market investments                   $1,099         $2,004
    Investment securities                       5,861         10,652
    Mortgage-backed securities                 61,887         83,042
    Loans receivable                          110,781         97,657
    Total                                     179,628        193,355
    Interest Expense:
    Deposits                                   72,201         85,938
    FHLB advances and other long-term
     borrowings                                35,530         40,489
    Securities sold under agreements
     to repurchase                              2,514          7,249
    Total                                     110,245        133,676
    Net interest income                        69,383         59,679
    Provision for losses                        3,676          2,733
    Net interest income after provision
     for losses                                65,707         56,946
    Non-Interest Income:
    Loan fees and charges                       1,514          1,341
    Deposit-related fees and charges            4,496          3,883
    Loan servicing fee income (loss), net        (372)        (1,191)
    Gain on the sale of earning assets          4,435          6,918
    Real estate operations, net                (1,076)        (1,212)
    Other                                       1,026          1,072
    Total                                      10,023         10,811
    Other Expenses:
    Compensation and benefits                  14,501         13,066
    Occupancy and equipment                     8,735          8,399
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Date:Apr 15, 1993
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