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STANDARD FEDERAL BANK REPORTS A NEW ALL-TIME RECORD FOR EARNINGS DURING THE SECOND QUARTER OF 1993

    TROY, Mich., July 15 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) released the following statistics:
    -- Net income up 26 percent over the second quarter of 1992
    -- New records also established for net interest income, net interest margin and operating earnings
    -- Mortgage volume at record levels
    -- Tangible capital increases to 5.49 percent of adjusted assets
    -- Dividend on common stock increased by 8 percent -- the second increase in 1993.
    Standard Federal Bank reported a 26-percent increase in net income which totaled $29.7 million, or $0.92 per share, for the three months ended June 30, 1993, compared to $23.6 million, or $0.75 per share, for the same period in 1992.  Earnings for the first six months of 1993 also increased by 18 percent over the same period a year ago.  For the six months ended June 30, 1993, net income totaled $54.3 million, or $1.69 per share, compared to $46.0 million, or $1.45 per share, for the same year-ago period.
    For the second quarter of 1993, return on assets was 1.21 percent (1.00 percent for the second quarter of 1992), while return on stockholders' equity was 18.50 percent (17.08 percent for the second quarter of 1992).  For the six months ended June 30, 1993, return on assets was 1.12 percent (0.97 percent for the six months ended June 30, 1992), while return on stockholders' equity was 17.25 percent (16.92 percent for the six months ended June 30, 1992).
    The significant increases in both the second-quarter and year-to- date earnings, as compared to the same periods in the prior year, are primarily attributable to increases in net interest income resulting from the relatively lower levels of market interest rates.  Net interest income also benefited from the accelerated recognition of deferred net loan fees, as customers refinanced record amounts of relatively newly closed mortgages.  The bank's net interest margin totaled 3.10 percent of average earning assets during the first six months of 1993, compared to 2.78 percent recorded during the first six months of 1992. Consequently, net interest income totaled a record $73.1 million and $142.4 million for the three and six months ended June 30, 1993, respectively, increases of 14 percent and 15 percent over the $64.0 million and $123.7 million recorded during the respective year-ago periods.
    The bank recognized $5.1 million and $9.5 million in gains from sales of recently closed fixed-rate single-family mortgage loans for the three and six months ended June 30, 1993, respectively, compared to $5.0 million and $11.9 million recorded for the respective year-ago periods.  The gains recorded during these periods are due, in large part, to the continuous, strong demand for single-family mortgage loans.
    The following chart presents an analysis of the results of operations for the three- and six-month periods ended June 30, 1993, and 1992.  The operating earnings recorded during both the second quarter and the first six months of 1993 represent all-time records for Standard Federal.  Pretax operating earnings of $40.0 million for the current quarter surpasses, by 19 percent, the previous record of $33.7 million earned during the first quarter of 1993.
                               Three Months Ended      Six Months Ended
                                     June 30,              June 30,
                                1993         1992      1993        1992
    Condensed Statements of                   (Unaudited)
    Operations Data:              (In millions, except share data)
    Pretax operating earnings  $40.0        $31.5     $73.7       $59.1
    Gains from sales of
     earning assets              5.1          5.0       9.5        11.9
    Pretax earnings             45.1         36.5      83.2        71.0
    Provision for federal
     income taxes              (15.4)       (12.9)    (28.9)      (25.0)
    Net income                 $29.7        $23.6     $54.3       $46.0
    Earnings per share         $0.92        $0.75     $1.69       $1.45
    During the first half of 1993, Standard Federal also established a new bank record for mortgage loan closings with over $1.87 billion of single-family home mortgage loans closed, compared to $1.67 billion closed during the first half of 1992, an increase of 12 percent. Approximately $742.9 million, or 40 percent, of total loan closings for the first half of 1993 were refinances of existing Standard Federal mortgages.
    The bank's level of nonperforming assets declined during the second quarter of 1993 and remains well below industry averages.  Nonperforming assets totaled approximately $65.8 million at June 30,1993 (0.67 percent of total assets.  At Dec. 31, 1992, nonperforming assets totaled approximately $71.7 million (0.75 percent of total assets).
    Separately today, the bank's board of directors declared an 8-percent increase in its regular quarterly dividend from $0.13 per share to $0.14 per share to stockholders of record on Aug. 18, 1993, payable Sept. 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 118 Banking Centers, seven Home Lending Centers and 200 automated teller machines in Michigan, Indiana and Ohio.
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
                          FINANCIAL HIGHLIGHTS
               (Dollars in thousands, except share data)
                                                    June 30,   Dec. 31,
                                                     1993        1992
                                                  (unaudited)
    Total assets                                 $9,825,754  $9,544,731
    Investments                                     419,267     543,149
    Mortgage-backed securities                    2,917,905   3,175,781
    Loans receivable                              5,915,318   5,235,399
    Cost in excess of fair value of net
     assets acquired                                115,457     120,568
    Deposits                                      6,635,761   6,527,603
    Borrowings                                    2,113,439   2,081,312
    Stockholders' equity                            656,068     609,071
    Book value per share                              21.03       19.56
    Tangible book value per share                     17.06       15.54
    Weighted average rate on deposit
     portfolio(1) (pct)                                3.93        4.11
    Equity-to-assets ratio (pct)                       6.68        6.38
    Core capital as a percentage of adjusted
     assets(2)                                         6.33        6.14
    Tangible capital as a percentage of adjusted
     assets(2) (pct)                                   5.49        5.14
    Risk-based capital as a percentage of risk-
     adjusted assets(2)                               13.66       13.53
    Ratio of nonperforming assets to total
     assets (pct)                                      0.67        0.75
    Ratio of nonperforming assets (net of reserves)
     to total assets (pct)                             0.40        0.46
    One-year repricing gap as a percentage of
     total assets(3)                                  -1.44       +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 Ended       Six Months Ended
                                   June 30,               June 30,
                              1993        1992        1993        1992
                                            (unaudited)
    Total interest income  $180,064    $191,792    $359,692    $385,147
    Net interest income      73,059      63,982     142,442     123,661
    Net income               29,702      23,634      54,342      46,006
    Earnings per share         0.92        0.75        1.69        1.45
    Primary common shares
     outstanding(1)      32,054,000  31,894,000  32,057,000  31,832,000
    Annualized data:
    Yield on earning
     assets (pct)              7.78        8.55        7.83        8.62
    Cost of interest-bearing
     liabilities (pct)         4.88        6.05        4.98        6.17
    Interest rate spread (pct) 2.90        2.50        2.85        2.45
    Net interest margin on
     average earning
     assets (pct)              3.16        2.87        3.10        2.78
    Operating and administrative
     expenses as a percent of
     average assets            1.39        1.40        1.42        1.35
    Return on average
     assets (pct)              1.21        1.00        1.12        0.97
    Return on average
     stockholders' equity
     (pct)                    18.50       17.08       17.25       16.92
    Deposit Activity:
    Net increase (decrease)  $39,225   ($90,437)   $108,158    ($63,551)
    Net increase (decrease)
     as a percentage of
     beginning deposits          0.6       -1.5         1.7        -1.0
    Interest credited,
     included above          $65,728    $65,874    $130,139    $134,898
    Mortgage Loan Activity:
    Dollar volume of residential
     loan closings        $1,325,842   $761,450  $1,873,518  $1,668,710
    Dollar volume of
     apartment loan
     closings                    124        ---         324         200
    Dollar volume of
     commercial loan closings  5,650      1,105       5,650       1,105
    Total loan closings   $1,331,616   $762,555  $1,879,492  $1,670,015
    30-year fixed-rate
     loans closed as a
     percentage of total
     loans closed                 25         32          27          34
    15-year fixed-rate loans
     closed as a percentage
     of total loans closed        37         36          37          42
    10-year fixed-rate loans
     closed as a percentage of
      total loans closed          15        N/A          11         N/A
    Balloon loans closed as a
     percentage of total loans
     closed                       15          9          15           8
    Adjustable-rate loans
     closed as a percentage
     of total loans closed         8         23          10          16
    Average yield on 30-year
     fixed-rate loans
     closed (pct)               7.89       9.02        7.94        8.96
    Average yield on 15-year
     fixed-rate loans
     closed (pct)               7.39       8.72        7.45        8.66
    Average yield on 10-year
     fixed-rate loans
     closed (pct)               7.10        N/A        7.10         N/A
    Average yield on balloon
     loans closed (pct)         7.02       8.71        7.11        8.68
    Average yield on adjustable-
     rate loans closed (pct)    6.26       7.36        6.32        7.37
    Repaid, net            ($560,431) ($255,889)  ($831,431)  ($549,389)
    Securitized and sold   ($230,993) ($383,510)  ($352,521)  ($561,263)
    (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.
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                   (In thousands, except share data)
                                            June 30,     Dec. 31,
                                              1993         1992
                                          (unaudited)
    Assets
    Cash                                    $128,453     $132,008
    Cash equivalents                          35,001      106,002
    Term federal funds sold and securities
     purchased under resale agreements        25,000       25,000
    Investment securities                    359,266      412,147
    Mortgage-backed securities             2,917,905    3,175,781
    Loans receivable available for sale      484,115      351,512
    Loans receivable                       5,431,203    4,883,887
    Total earning assets                   9,252,490    8,954,329
    Accrued interest receivable               53,695       53,731
    Real estate and other repossessed
     assets                                   32,230       24,868
    Premises and equipment                   175,354      173,898
    Cost in excess of fair value of
     net assets acquired                     115,457      120,568
    Other assets                              68,075       85,329
    Total assets                          $9,825,754   $9,544,731
    Liabilities and Stockholders' Equity
    Liabilities:
    Deposits                              $6,635,761   $6,527,603
    FHLB advances and other long-term
     borrowings                            1,763,757    1,853,605
    Securities sold under agreements to
     repurchase                              349,682      227,707
    Total interest-bearing liabilities     8,749,200    8,608,915
    Accrued interest payable                  44,865       30,849
    Undisbursed payments on participations
     sold                                     99,410      115,050
    Advance payments by borrowers for
     taxes and insurance                     147,196       28,146
    Federal income taxes payable               5,139       10,220
    Liability for checks and money orders
     issued                                   75,362       78,045
    Other liabilities                         48,514       64,435
    Total liabilities                      9,169,686    8,935,660
    Stockholders' Equity:
    Serial preferred stock, $1.00 par value
     per share; 10,000,000 shares
     authorized; none issued                     ---          ---
    Common stock, $1.00 par value per share;
     50,000,000 shares authorized; 31,200,500
     and 31,146,200 shares issued and
     outstanding in 1993 and 1992,
     respectively                              31,201       31,146
    Additional paid-in capital                210,704      209,997
    Retained earnings, partially restricted   414,163      367,928
    Total stockholders' equity                656,068      609,071
    Total liabilities and stockholders'
     equity                                $9,825,754   $9,544,731
                 STANDARD FEDERAL BANK AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (Dollars in thousands, except share data)
                            Three Months Ended       Six Months Ended
                                  June 30,                June 30,
                              1993        1992        1993        1992
                                            (unaudited)
    Interest Income:
    Money market
     investments               $928      $1,706      $2,027      $3,710
    Investment securities     5,536       8,998      11,397      19,650
    Mortgage-backed
     securities              57,282      77,399     119,169     160,441
    Loans receivable        116,318     103,689     227,099     201,346
    Total                   180,064     191,792     359,692     385,147
    Interest Expense:
    Deposits                 71,411      83,812     143,612     169,750
    FHLB advances and other
     long-term borrowing     32,999      41,789      68,529      82,278
    Securities sold under
     agreements to repurchase 2,595       2,209       5,109       9,458
    Total                   107,005     127,810     217,250     261,486
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Date:Jul 15, 1993
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