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STANDARD FEDERAL BANK REPORTS INCREASED SECOND-QUARTER EARNINGS; NET INCOME UP 53 PERCENT FROM SECOND QUARTER OF 1991

 STANDARD FEDERAL BANK REPORTS INCREASED SECOND-QUARTER EARNINGS;
 NET INCOME UP 53 PERCENT FROM SECOND QUARTER OF 1991
 Operating Earnings Reach an All-Time High;


Dividend on Common Stock Increased by 9 Percent - 2nd Increase in 1992
 TROY, Mich., July 16 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) reported net income of $23.6 million, or $0.75 per share, for the three months ended June 30, 1992, compared to $15.4 million, or $0.50 per share, for the same period in 1991; an increase of over 53 percent. The second-quarter results brought earnings for the six months ended June 30, 1992, to $46.0 million, or $1.45 per share, compared to $28.8 million, or $0.93 per share, for the same year-ago period; an increase of 60 percent.
 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, combined with a comparatively higher level of gains from the sale of earning assets. The bank's net interest margin has increased to 2.78 percent of average earning assets during the six months ended June 30, 1992, compared to the 2.30 percent recorded during the first half of 1991. Consequently, net interest income totaled a record $64.0 million and $123.7 million for the three and six months ended June 30, 1992, respectively, compared to $52.7 million and $102.3 million for the respective year-ago periods.
 In response to the continually declining levels of market interest rates combined with other asset/liability management considerations, including record-setting levels of single-family loan closings, during the three- and six-month periods ended June 30, 1992, the bank recognized $5.0 million and $11.9 million in gains from sales of recently closed fixed-rate single-family mortgage loans, compared to $1.0 million and $2.9 million recorded during the comparable year-ago periods. 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 months and six months ended June 30, 1992, and 1991. The operating earnings recorded during the second quarter and the first half of 1992 represent all-time records for Standard Federal. Pretax operating earnings of $31.5 million for the current quarter surpasses the previous record of $27.6 million earned during the first quarter of 1992 by $3.9 million, or 14 percent.
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Condensed Statements (Unaudited)
 of Operations Data: (In millions, except share data)
 Pretax operating earnings $31.5 $24.3 $59.1 $44.8
 Gains from earnings asset
 sales 5.0 1.0 11.9 2.9
 Pretax earnings 36.5 25.3 71.0 47.7
 Provision for federal
 income taxes (12.9) (9.9) (25.0) (18.9)
 Net income $23.6 $15.4 $46.0 $28.8
 Earnings per share $0.75 $0.50 $1.45 $0.93
 During the first half of 1992, Standard Federal also established a new bank record for mortgage loan closings with over $1.67 billion of single-family home mortgage loans closed, compared to $805.7 million closed during the first half of 1991, an increase of 107 percent. In fact, the volume of loans closed during the first half of 1992 surpasses the bank's previous record for an entire year set in 1991. Approximately $775.7 million, or 46 percent, of total loan closings for the first half of 1992 were refinances of existing Standard Federal mortgages. Mortgages to new borrowers totaled $893.0 million for the period, an increase of $277.7 million, or 45 percent, over the $615.3 million in mortgage loans to new borrowers during the first half of 1991.
 The bank's level of nonperforming assets remained stable during the second quarter of 1992, and continues to remain well below industry averages. Nonperforming assets totaled approximately $80.0 million at June 30, 1992, and represented 0.85 percent of total assets at that date. At March 31, 1992, nonperforming assets totaled approximately $83.5 million, or 0.87 percent of total assets, while at Dec. 31, 1991, nonperforming assets totaled approximately $69.0 million, or 0.73 percent of total assets. Net of the bank's reserves for losses, nonperforming assets totaled $58.1 million at June 30, 1992, (0.62 percent of total assets), compared to $58.4 million at March 31, 1992 (0.61 percent of total assets), and $45.4 million at Dec. 31, 1991 (0.48 percent of total assets).
 Separately today, the bank's board of directors declared an increase in its regular quarterly dividend from $0.11 per share to $0.12 per share to stockholders of record on Aug. 18, 1992, payable Sept. 1, 1992.
 Standard Federal Bank, headquartered in Troy, is Michigan's leading home mortgage lender and the Midwest's largest thrift institution with assets totaling $9.4 billion. The bank operates 119 branch offices in Michigan, Indiana and Ohio.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except share data)
 June 30, Dec. 31,
 1992 1991
 (unaudited)
 Total assets $9,383,376 $9,513,922
 Investments(1) 636,579 939,328
 Mortgage-backed securities 3,585,244 3,918,852
 Loans receivable 4,575,179 4,043,578
 Cost in excess of fair value of
 net assets acquired 123,970 128,960
 Deposits 6,124,999 6,188,550
 Advances and borrowings(2) 2,272,068 2,474,762
 Stockholders' equity 565,246 524,765
 Book value per share 18.22 16.98
 Tangible book value per share 14.14 12.67
 Shares outstanding 31,015,800 30,910,850
 Weighted average rate on
 deposit portfolio(3) (pct) 4.76 5.55
 Equity-to-assets ratio (pct) 6.02 5.52
 Core capital as a percentage of
 adjusted assets(4) (pct) 5.78 5.25
 Tangible capital as a percentage of
 adjusted assets(4) (pct) 4.74 4.18
 Risk-based capital as a percentage of
 risk-adjusted assets(4) (pct) 12.75 11.81
 Ratio of net nonperforming assets
 to total assets (pct) 0.62 0.48
 Ratio of gross nonperforming assets
 to total assets (pct) 0.85 0.73
 One-year repricing gap as a
 percentage of total assets(5) (pct) +3.05 -1.97
 (1) Includes cash equivalents, term federal funds sold, securities purchased under resale agreements and investment securities.
 (2) Includes FHLB advances, other long-term borrowings and securities sold under agreements to repurchase.
 (3) 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.
 (4) At both dates presented, Standard Federal was in full compliance with each of the three regulatory capital requirements.
 (5) The difference between the estimated amounts of earning assets and interest-bearing liabilities repricing within one year, divided by total assets.
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 (unaudited)
 Total interest income $191,792 $205,273 $385,147 $416,372
 Net interest income 63,982 52,698 123,661 102,271
 Net income 23,634 15,442 46,006 28,825
 Earnings per share 0.75 0.50 1.45 0.93
 Annualized data:
 Yield on earning
 assets (pct) 8.55 9.46 8.62 9.52
 Cost of interest-bearing
 liabilities (pct) 6.05 7.25 6.17 7.46
 Interest rate spread (pct) 2.50 2.21 2.45 2.06
 Net interest margin (pct) 2.87 2.39 2.78 2.30
 Overhead-to-assets
 ratio (pct) 1.40 1.37 1.35 1.37
 Return on assets (pct) 1.00 0.67 0.97 0.62
 Return on equity (pct) 17.08 12.73 16.92 12.04
 Deposit Activity:
 Net increase (decrease) ($90,437) ($81,145) ($63,551) ($169,414)
 Net increase (decrease)
 as a percentage of
 beginning deposits (pct) -1.46 -1.40 -1.03 -2.87
 Interest credited, included
 above $65,874 $83,064 $134,898 $171,360
 Mortgage Loan Activity:
 Dollar volume of residential
 loan closings $761,450 $486,463 $1,668,710 $805,692
 Dollar volume of apartment
 loan closings --- 83 200 109
 Dollar volume of commercial
 loan closings 1,105 --- 1,105 1,045
 Total loan closings $762,555 $486,546 $1,670,015 $806,846
 30-year fixed-rate loans
 closed as a percentage of
 total loans closed (pct) 32.40 55.30 33.40 51.70
 15-year fixed-rate loans
 closed as a percentage of
 total loans closed (pct) 36.00 26.20 42.30 31.30
 Balloon loans closed as a
 percentage of total loans
 closed (pct) 9.00 8.40 8.40 7.60
 Adjustable-rate loans closed
 as a percentage of total
 loans closed (pct) 22.60 10.10 15.90 9.40
 Average yield on 30-year
 fixed-rate loans
 closed (pct) 9.02 9.83 8.96 9.80
 Average yield on 15-year
 fixed-rate loans
 closed (pct) 8.72 9.62 8.66 9.60
 Average yield on balloon
 loans closed (pct) 8.71 9.99 8.68 9.99
 Average yield on adjustable-
 rate loans closed (pct) 7.36 8.84 7.37 8.91
 Repaid, net $255,889 $178,257 $549,389 $292,753
 Securitized and sold $383,510 $214,543 $561,263 $526,352
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except share data)
 June 30, Dec. 31,
 1992 1991
 (unaudited)
 Assets
 Cash $116,654 $129,309
 Cash equivalents 69,300 40,236
 Term federal funds sold and
 securities purchased under
 resale agreements 75,000 125,000
 Loans receivable held for sale 116,609 ---
 Investment securities 492,279 774,092
 Mortgage-backed securities 3,585,244 3,918,852
 Loans receivable 4,458,570 4,043,578
 Total earning assets 8,797,002 8,901,758
 Accrued interest receivable 60,325 64,186
 Real estate and other
 repossessed assets 32,601 21,740
 Premises and equipment 174,875 175,646
 Cost in excess of fair value
 of net assets acquired 123,970 128,960
 Other assets 77,949 92,323
 Total assets $9,383,376 $9,513,922
 Liabilities and Stockholders' Equity
 Liabilities:
 Deposits $6,124,999 $6,188,550
 FHLB advances and other
 long-term borrowings 2,056,097 1,754,340
 Securities sold under agreements
 to repurchase 215,971 720,422
 Total interest-bearing liabilities 8,397,067 8,663,312
 Accrued interest payable 52,333 43,935
 Undisbursed payments on
 participations sold 83,999 114,052
 Advance payments by borrowers
 for taxes and insurance 140,742 25,650
 Federal income taxes payable 7,412 11,422
 Liability for checks and
 money orders issued 74,314 79,813
 Other liabilities 62,263 50,973
 Total liabilities 8,818,130 8,989,157
 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;
 31,015,800 and 30,910,850 shares
 issued and outstanding in
 1992 and 1991, respectively 31,016 30,911
 Additional paid-in capital 208,454 207,270
 Retained earnings,
 partially restricted 325,776 286,584
 Total stockholders' equity 565,246 524,765
 Total liabilities and
 stockholders' equity $9,383,376 $9,513,922
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except share data)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 (unaudited)
 Interest Income:
 Money market investments $1,706 $1,715 $3,710 $4,744
 Investment securities 8,998 19,440 19,650 40,867
 Mortgage-backed securities 77,399 95,619 160,441 190,600
 Loans receivable 103,689 88,499 201,346 180,161
 Total 191,792 205,273 385,147 416,372
 Interest Expense:
 Deposits 83,812 93,863 169,750 194,751
 FHLB advances and other
 long-term borrowings 41,789 41,311 82,278 81,248
 Securities sold under
 agreements to repurchase 2,209 17,401 9,458 38,102
 Total 127,810 152,575 261,486 314,101
 Net interest income 63,982 52,698 123,661 102,271
 Provision for losses 3,031 3,504 5,764 6,839
 Net interest income after
 provision for losses 60,951 49,194 117,897 95,432
 Non-interest Income:
 Loan fees and charges 1,111 1,372 2,452 2,781
 Deposit-related fees
 and charges 4,601 4,015 8,484 7,374
 Loan servicing fee income (240) 2,608 (1,431) 5,603
 Gain on sale of earning
 assets 5,023 1,017 11,941 2,915
 Real estate operations, net (532) 204 (1,744) (164)
 Other 1,247 829 2,319 1,833
 Total 11,210 10,045 22,021 20,342
 Other Expenses:
 Compensation and benefits 13,994 13,651 27,060 28,331
 Occupancy and equipment 8,153 8,232 16,552 16,588
 Federal insurance premium 3,535 3,347 7,070 6,703
 General and administrative 2,192 2,366 4,314 5,100
 Advertising 1,697 1,264 2,162 2,067
 Other taxes 1,632 1,579 3,195 3,004
 Other 1,929 1,358 3,569 1,954
 Total operating and
 administrative expenses 33,132 31,797 63,922 63,747
 Amortization of cost in
 excess of fair value of
 net assets acquired 2,495 2,150 4,990 4,302
 Total 35,627 33,947 68,912 68,049
 Income before provision
 for federal income taxes 36,534 25,292 71,006 47,725
 Provision for federal
 income taxes 12,900 9,850 25,000 18,900
 Net income $23,634 $15,442 $46,006 $28,825
 Earnings per share $0.75 $0.50 $1.45 $0.93
 Dividends per common share $0.11 $0.10 $0.22 $0.20
 -0- 7/16/92
 /CONTACT: Joseph Krul, senior vice president and chief financial officer, Stockholder Relations, Standard Federal Bank, 313-643-9600 or (in Michigan) 800-482-3930 or (in Indiana) 800-874-3716/
 (SFB) CO: Standard Federal Bank ST: Michigan IN: FIN SU: ERN DIV


SM-KS -- DE026 -- 9897 07/16/92 15:30 EDT
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