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STANDARD FEDERAL BANK REPORTS RECORD ANNUAL EARNINGS OF $95.6 MILLION ($3 PER SHARE), AN INCREASE OF 45 PERCENT OVER 1991 EARNINGS

4th-Quarter Net Income Represents New All-Time High; Net Interest Margin & Income at Record Levels; Record Single-Family Loan Volume Continues
 TROY, Mich., Jan. 21 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) reported record 1992 annual earnings of $95.6 million, or $3 per share, compared to 1991 earnings of $65.8 million, or $2.11 per share; an increase of over 45 percent. For the year ended Dec. 31, 1992, return on stockholders' equity was 16.93 percent (13.37 percent in 1991), while return on assets was 1.00 percent (0.70 percent in 1991).
 Additionally, the bank reported record fourth-quarter 1992 earnings of $25.3 million, or $0.79 per share, compared to $21.4 million, or $0.68 per share, for the same period in 1991; an increase of over 18 percent.
 The significant increases in fourth-quarter and annual earnings 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 comparatively higher levels of gains from the sales of earning assets. The bank's net interest margin has increased to 2.89 percent of average earning assets during the year ended Dec. 31, 1992, compared to 2.38 percent recorded during the prior year. Consequently, net interest income totaled a record $69.2 million and $259.6 million for the fourth quarter and year ended Dec. 31, 1992, respectively, compared to $57.9 million and $211.8 million for the respective prior-year periods.
 The relatively high level of sales and gains recorded during 1992 is due to the extremely high volume of mortgage loan closings. For asset/liability management purposes, the bank has followed the practice of selling certain recently closed longer-term fixed-rate loans. The bank recognized $7.8 million and $28.2 million in gains from sales of recently closed longer-term fixed-rate single-family mortgage loans during the fourth quarter and year ended Dec. 31, 1992, respectively, compared to $7.5 million and $12.4 million recorded during the comparable periods in 1991. 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 fourth quarter and year ended Dec. 31, 1992, and 1991. Both the net income and the pretax operating earnings recorded during the year ended Dec. 31, 1992, represent all-time records for Standard Federal since its inception as a publicly held savings bank in January 1987. Pretax operating earnings of $120.7 million for the year ended Dec. 31, 1992, surpasses the previous record of $93.9 million earned during the comparable period in 1991 by $26.8 million, or 29 percent.
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 Condensed Statements 1992 1991 1992 1991
 of Operations Data: (unaudited)
 (In millions, except share data)
 Pretax operating earnings $31.8 $26.4 $120.7 $93.9
 Gains from sales of loans 7.8 7.5 28.2 12.4
 Pretax earnings 39.6 33.9 148.9 106.3
 Provision for federal income
 taxes (14.3) (12.5) (53.3) (40.5)
 Net income $25.3 $21.4 $95.6 $65.8
 Earnings per share $0.79 $0.68 $3.00 $2.11
 During the fourth quarter and the year ended Dec. 31, 1992, Standard Federal also established new bank records for mortgage loan closings. The bank closed $1.03 billion and $3.61 billion of single-family home mortgage loans during the respective periods, compared to $521.7 million and $1.67 billion closed during the comparable year-ago periods; increases of 98 percent and 116 percent, respectively. During the year ended Dec. 31, 1992, approximately $1.63 billion, or 45 percent, of total loan closings were refinances of existing Standard Federal mortgages while mortgages to new borrowers totaled $1.98 billion. This represents an increase of $781.4 million, or 65 percent, over the $1.20 billion in mortgage loans to new borrowers during the same period in 1991.
 The bank's level of nonperforming assets remained stable throughout the year and, as such, continues to remain well below industry averages at Dec. 31, 1992. Nonperforming assets totaled approximately $71.7 million at Dec. 31, 1992, and represented 0.75 percent of total assets at that date, while as of Dec. 31, 1991, nonperforming assets totaled approximately $69.0 million (0.73 percent of total assets).
 Separately today, the bank's board of directors declared a regular quarterly dividend of $0.13 per share to stockholders of record on Feb. 15, 1993, payable March 1, 1993, representing an increase of over 8 percent compared to the bank's $0.12 per share dividend paid by the bank for each of the previous two quarters.
 Standard Federal Bank, headquartered in Troy, is Michigan's leading home mortgage lender and the Midwest's largest thrift institution with assets totaling $9.5 billion. The bank operates 123 branch offices in Michigan, Indiana and Ohio.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except share data)
 Dec. 31, Dec. 31,
 1992 1991
 Total assets $9,544,731 $9,513,922
 Investments 543,149 939,328
 Mortgage-backed securities 3,175,781 3,918,852
 Loans receivable 5,235,399 4,043,578
 Cost in excess of fair value
 of net assets acquired 120,568 128,960
 Deposits 6,527,603 6,188,550
 Advances and borrowings 2,081,312 2,474,762
 Stockholders' equity 609,071 524,765
 Book value per share 19.56 16.98
 Tangible book value per share 15.54 12.67
 Weighted average rate on
 deposit portfolio(1) (pct) 4.11 5.55
 Equity-to-assets ratio (pct) 6.38 5.52
 Core capital as a percentage of
 adjusted assets(2) (pct) 6.14 5.25
 Tangible capital as a percentage of
 adjusted assets(2) 5.14 4.18
 Risk-based capital as a percentage
 of risk-adjusted assets(2) (pct) 13.53 11.81
 Ratio of nonperforming assets to
 total assets (pct) 0.75 0.73
 Ratio of nonperforming assets (net
 of reserves) to total assets (pct) 0.46 0.48
 One-year repricing gap as a
 percentage of total assets(3) (pct) +5.58 -1.97
 (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 Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (unaudited)
 Total interest income $183,342 $207,079 $758,181 $828,801
 Net interest income 69,181 57,898 259,595 211,805
 Net income 25,307 21,410 95,613 65,802
 Earnings per share 0.79 0.68 3.00 2.11
 Primary common shares
 outstanding(4) 31,967,000 31,611,000 31,889,000 31,255,000
 Yield on earning
 assets(5) (pct) 8.11 8.98 8.44 9.31
 Cost of interest-bearing
 liabilities(5) (pct) 5.32 6.68 5.82 7.16
 Interest rate
 spread(5) (pct) 2.79 2.30 2.62 2.15
 Net interest margin on
 average earning
 assets(5) (pct) 3.04 2.56 2.89 2.38
 Ratio of operating and
 administrative expenses
 to average assets(5) (pct) 1.42 1.36 1.39 1.37
 Return on average
 assets(5) (pct) 1.05 0.88 1.00 0.70
 Return on average
 stockholders'
 equity(5) (pct) 16.95 16.67 16.93 13.37
 (4) 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.
 (5) Quarterly data is annualized.
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (unaudited)
 Deposit Activity:
 Net increase (decrease),
 not including acquired
 deposits $37,099 ($80,254) $168,504 ($145,032)
 Deposits acquired from
 mergers --- --- 170,549 435,219
 Net increase (decrease)
 as a percentage of
 beginning deposits (pct) 0.57 -1.28 5.48 4.92
 Interest credited, included
 above $71,474 $84,478 $277,670 $337,914
 Mortgage Loan Activity:
 Dollar volume of
 residential loan
 closings $1,032,279 $521,706 $3,612,168 $1,665,688
 Dollar volume of
 apartment loan closings 1,034 75 1,339 2,297
 Dollar volume of
 commercial loan closings --- 960 1,105 2,005
 Total loan closings $1,033,313 $522,741 $3,614,612 $1,669,990
 30-year fixed-rate
 loans closed as a percentage
 of total loans
 closed (pct) 32.90 44.10 33.60 50.90
 15-year fixed-rate loans
 closed as a percentage
 of total loans
 closed (pct) 45.00 40.70 43.80 31.00
 Balloon loans closed as
 a percentage of total
 loans closed (pct) 9.20 8.40 8.60 8.70
 Adjustable-rate loans
 closed as a percentage of
 total loans closed (pct) 12.90 6.80 14.00 9.40
 Average yield on 30-year
 fixed-rate loans
 closed (pct) 8.39 9.12 8.65 9.59
 Average yield on 15-year
 fixed-rate loans
 closed (pct) 8.01 8.84 8.30 9.24
 Average yield on balloon
 loans closed (pct) 7.87 9.08 8.26 9.68
 Average yield on
 adjustable-rate loans
 closed (pct) 6.84 7.92 7.14 8.68
 Loans acquired from mergers --- $3,357 $149,940 $59,586
 Repaid, net ($436,962) ($208,491)($1,310,350)($603,949)
 Securitized and sold ($433,167) ($132,474)($1,228,145)($692,154)
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (In thousands, except share data)
 Dec. 31, Dec. 31,
 1992 1991
 Assets
 Cash $132,008 $129,309
 Cash equivalents 106,002 40,236
 Term federal funds sold and
 securities purchased under
 resale agreements 25,000 125,000
 Loans receivable held for sale 351,512 ---
 Investment securities 412,147 774,092
 Mortgage-backed securities 3,175,781 3,918,852
 Loans receivable 4,883,887 4,043,578
 Total earning assets 8,954,329 8,901,758
 Accrued interest receivable 53,731 64,186
 Real estate and other repossessed
 assets 24,868 21,740
 Premises and equipment 173,898 175,646
 Cost in excess of fair value
 of net assets acquired 120,568 128,960
 Other assets 85,329 92,323
 Total assets $9,544,731 $9,513,922
 Liabilities and Stockholders' Equity
 Liabilities:
 Deposits $6,527,603 $6,188,550
 FHLB advances and other long-
 term borrowings 1,853,605 1,754,340
 Securities sold under agreements
 to repurchase 227,707 720,422
 Total interest-bearing
 liabilities 8,608,915 8,663,312
 Accrued interest payable 30,849 43,935
 Undisbursed payments on
 participations sold 115,050 114,052
 Advance payments by borrowers
 for taxes and insurance 28,146 25,650
 Federal income taxes payable 10,220 11,422
 Liability for checks and money
 orders issued 78,045 79,813
 Other liabilities 64,435 50,973
 Total liabilities 8,935,660 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; 31,146,200
 and 30,910,850 shares issued and
 outstanding in 1992 and 1991,
 respectively 31,146 30,911
 Additional paid-in capital 209,997 207,270
 Retained earnings, partially
 restricted 367,928 286,584
 Total stockholders' equity 609,071 524,765
 Total liabilities and
 stockholders' equity $9,544,731 $9,513,922
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except share data)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Interest Income: (unaudited)
 Money market investments $1,267 $2,699 $6,593 $8,930
 Investment securities 4,659 18,630 32,461 80,839
 Mortgage-backed securities 66,860 86,801 298,679 366,869
 Loans receivable 110,556 98,949 420,448 372,163
 Total 183,342 207,079 758,181 828,801
 Interest Expense:
 Deposits 74,527 95,777 324,651 385,516
 FHLB advances and other
 long-term borrowings 38,769 39,399 162,092 162,221
 Securities sold under
 agreements to repurchase 865 14,005 11,843 69,259
 Total 114,161 149,181 498,586 616,996
 Net interest income 69,181 57,898 259,595 211,805
 Provision for losses 3,267 2,707 11,728 11,990
 Net interest income after
 provision for losses 65,914 55,191 247,867 199,815
 Non-Interest Income:
 Loan fees and charges 1,395 1,684 5,103 5,873
 Deposit-related fees
 and charges 4,499 3,723 17,252 14,824
 Loan servicing fee income (2,265) 1,410 (4,579) 10,204
 Gain on the sale of earning
 assets 7,773 7,489 28,235 12,424
 Real estate operations,
 net (1,619) (697) (5,335) (1,605)
 Other 763 696 3,838 3,715
 Total 10,546 14,305 44,514 45,435
 Other Expenses:
 Compensation and benefits 13,916 13,961 55,240 56,881
 Occupancy and equipment 9,105 8,677 34,503 34,020
 Federal insurance premium 3,674 3,258 14,382 13,222
 General and administrative 3,374 2,862 12,651 11,432
 Advertising 1,414 2,542 6,136 5,560
 Other taxes 1,858 879 6,945 5,414
 Other 1,003 891 3,536 3,370
 Total operating and
 administrative expenses 34,344 33,070 133,393 129,899
 Amortization of cost in
 excess of fair value of net
 assets acquired 2,559 2,516 10,075 9,061
 Total 36,903 35,586 143,468 138,960
 Income before provision
 for federal income taxes 39,557 33,910 148,913 106,290
 Provision for federal
 income taxes 14,250 12,500 53,300 40,488
 Net income $25,307 $21,410 $95,613 $65,802
 Earnings per share $0.79 $0.68 $3.00 $2.11
 Dividends per common share $0.12 $0.10 $0.46 $0.40
 -0- 1/21/93
 /CONTACT: Joseph Krul, senior vice president and chief financial officer, Stockholder Relations, Standard Federal Bank, 313-643-9600, 800-482-3930 (in Michigan) or 800-874-3716 (in Indiana)/
 (SFB)


CO: Standard Federal Bank ST: Michigan IN: FIN SU: ERN

SM-MJ -- DE019 -- 7549 01/21/93 15:30 EST
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