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STANDARD FEDERAL REPORTS 103-PERCENT INCREASE IN 4TH-QUARTER EARNINGS; ANNUAL EARNINGS OF $2.11 PER SHARE INCREASE 64 PERCENT OVER 1990

STANDARD FEDERAL REPORTS 103-PERCENT INCREASE IN 4TH-QUARTER EARNINGS;
 ANNUAL EARNINGS OF $2.11 PER SHARE INCREASE 64 PERCENT OVER 1990
 TROY, Mich., Jan. 16 /PRNewswire/ -- Today, Standard Federal Bank (NYSE: SFB) reported net income of $21.4 million, or $0.68 per share, for the three months ended Dec. 31, 1991, compared to $10.6 million, or $0.34 per share, for the same period in 1990, an increase of approximately 103 percent.
 During each period, earnings were enhanced by the sales of loans, which resulted in after-tax gains of approximately $5.0 million, or $0.16 per share, during the fourth quarter of 1991, compared to $2.6 million, or $0.08 per share, during the same period in 1990. The sales in 1991 were larger than normal due to the record volume of loan closings during the current quarter. The fourth-quarter results brought earnings for the year ended Dec. 31, 1991, to $65.8 million, or $2.11 per share, compared to $40.1 million, or $1.30 per share, for the year ended Dec. 31, 1990, an increase of more than 64 percent.
 The significant increases in both fourth-quarter and annual earnings, as compared to the same periods in the prior year, are due in large part to increases in net interest income resulting from the relatively lower levels of market interest rates. The bank's net interest margin has increased to 2.38 percent of average earning assets during the year ended Dec. 31, 1991, compared to the 1.86 percent recorded during the year ended Dec. 31, 1990. Consequently, net interest income reached record levels for both the fourth quarter and the year ended Dec. 31, 1991, totaling $57.9 million and $211.8 million, respectively, compared to $43.2 million and $167.0 million for the same periods a year ago.
 The following chart presents an analysis of the results of operations for the fourth quarter and the year ended Dec. 31, 1991 and 1990. The operating earnings recorded during both the fourth quarter and the year ended Dec. 31, 1991, represent all-time records for the bank.
 STANDARD FEDERAL BANK
 CONDENSED STATEMENTS OF OPERATIONS DATA
 (In Millions, Except Share Data)
 Three Months Ended Year Ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 (Unaudited)
 Pretax operating earnings $26.4 $13.5 $93.9 $58.0
 Gains from earning
 asset sales 7.5 4.0 12.4 5.4
 Pretax earnings 33.9 17.5 106.3 63.4
 Provision for federal
 income taxes (12.5) (6.9) (40.5) (23.3)
 Net income $21.4 $10.6 $65.8 $40.1
 Earnings per share $0.68 $0.34 $2.11 $1.30
 Standard Federal continued to experience unprecedented levels of consumer demand for single-family mortgage loan closings during the fourth quarter of 1991. Total closings of $521.7 million for the current quarter represent a 160-percent increase over the $200.3 million closed during the three months ended Dec. 31, 1990. Similarly, for the year ended Dec. 31, 1991, the bank's all-time record total loan closings of $1.67 billion represents a 65-percent increase over the previous record of $1.01 billion closed during the year ended Dec. 31, 1990. Approximately $467.8 million, or 28 percent of total loan closings for the year ended Dec. 31, 1991, represent refinances of existing Standard Federal mortgages.
 Total assets, which amounted to $9.5 billion at Dec. 31, 1991, have increased $216.7 million from the year-ago totals. During September 1991, Standard Federal Bank acquired all of the branches and deposits of United Home Federal of Toledo and certain specified assets. At the date of acquisition, United Home Federal operated 11 offices in northwestern Ohio and had total deposits of $435.2 million.
 The bank's level of non-performing assets, net of applicable reserves, declined slightly during the fourth quarter of 1991, and, as a result, continued to remain well below industry averages. Net non- performing assets, which totaled approximately $45.4 million at Dec. 31, 1991, represented 0.48 percent of total assets at that date. At Sept. 30, 1991, net non-performing assets totaled approximately $50.7 million, or 0.52 percent of total assets, while at Dec. 31, 1990, net non-performing assets totaled approximately $38.2 million, or 0.41 percent of total assets.
 Separately today, the bank's board of directors declared a 10-percent increase in its regular quarterly dividend, from $0.10 per share to $0.11 per share, to stockholders of record on Feb. 17, 1992, payable March 2, 1992.
 Standard Federal Bank, with assets of $9.5 billion, and 120 branch offices in Michigan, Indiana and Ohio, is listed on the New York Stock Exchange under the symbol SFB.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except share data)
 Dec. 31 Dec. 31
 1991 1990
 Total assets $9,513,922 $9,297,253
 Investments(1) 939,328 1,071,417
 Mortgage-backed securities 3,918,852 4,076,774
 Loans receivable 4,043,578 3,541,244
 Cost in excess of fair value of net
 assets acquired 118,908 127,492
 Core deposit premium 10,052 ---
 Deposits 6,188,550 5,898,363
 Advances and borrowings(2) 2,474,762 2,683,799
 Stockholders' equity 524,765 468,811
 Book value per share 16.98 15.30
 Shares outstanding 30,910,850 30,647,500
 Equity-to-assets ratio (pct) 5.52 5.04
 Core capital as a percentage of
 adjusted assets(3) (pct) 5.25 4.77
 Tangible capital as a percentage
 of adjusted assets(3) (pct) 4.18 3.69
 Risk-based capital as a percentage
 of risk-adjusted assets(3) (pct) 11.81 11.22
 Ratio of net nonperforming assets
 to total assets (pct) 0.48 0.41
 One-year repricing gap as a percentage
 of total assets(4) (pct) -1.97 -0.03 (5)
 (1) Includes cash equivalents, term federal funds sold, securities purchased under resale agreements, interest-earning deposits, investment securities and FHLB stock.
 (2) Includes FHLB advances, other long-term borrowings and securities sold under agreements to repurchase.
 (3) At both dates presented, Standard Federal was in full compliance with each of the three regulatory capital requirements.
 (4) The difference between the amount of earning assets and interest-bearing liabilities repricing within one year, divided by total assets.
 (5) The ratio presented for Dec. 31, 1990, has been restated, for comparability purposes, from the -5.69 percent reported in the bank's 1990 Annual Report to Stockholders. During 1991, the bank adjusted its calculation methodology, due primarily to a change in deposit withdrawal assumptions, reflecting actual current experience.
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 (unaudited)
 Total interest income $207,079 $215,819 $828,801 $871,775
 Net interest income 57,898 43,164 211,805 167,023
 Net income 21,410 10,563 65,802 40,063
 Earnings per share 0.68 0.34 2.11 1.30
 Net interest margin on
 average earning
 assets(1) (pct) 2.56 1.94 2.38 1.86
 Ratio of operating and
 administrative expenses
 to average
 assets(1) (pct) 1.36 1.43 1.37 1.32
 Return on average
 assets(1) (pct) 0.88 0.45 0.70 0.42
 Return on average
 stockholders'
 equity(1) (pct) 16.67 9.11 13.37 8.84
 (1) Quarterly data is annualized.
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (In thousands, except share data)
 Dec. 31 Dec. 31
 1991 1990
 Assets
 Cash $129,309 $117,851
 Cash equivalents 40,236 ---
 Term federal funds sold and securities
 purchased under resale agreements 125,000 75,000
 Interest earning deposits --- 5,500
 Investment securities 675,384 892,209
 FHLB stock - at cost 98,708 98,708
 Mortgage-backed securities 3,918,852 4,076,774
 Loans receivable 4,043,578 3,541,244
 Total earning assets 8,901,758 8,689,435
 Accrued interest receivable 64,186 93,145
 Real estate and other repossessed assets 21,740 12,520
 Premises and equipment 175,646 177,525
 Cost in excess of fair value
 of net assets acquired 118,908 127,492
 Core deposit premium 10,052 ---
 Other assets 92,323 79,285
 Total assets $9,513,922 $9,297,253
 Liabilities and Stockholders' Equity
 Liabilities:
 Deposits $6,188,550 $5,898,363
 FHLB advances and other
 long-term borrowings 1,754,340 1,738,872
 Securities sold under agreements
 to repurchase 720,422 944,927
 Total interest-bearing liabilities 8,663,312 8,582,162
 Accrued interest payable 43,935 81,512
 Undisbursed payments on
 participations sold 114,052 49,003
 Advance payments by borrowers
 for taxes and insurance 25,650 19,202
 Federal income taxes payable 11,422 4,897
 Liability for checks and
 money orders issued 79,813 67,426
 Other liabilities 50,973 24,240
 Total liabilities 8,989,157 8,828,442
 Stockholders' equity:
 Serial preferred stock, $1.00 par value
 per share; 10 million shares authorized;
 none issued --- ---
 Common stock, $1.00 par value per share;
 50 million shares authorized;
 30,910,850 and 30,647,500 shares issued
 and outstanding in 1991 and 1990,
 respectively 30,911 30,648
 Additional paid-in capital 207,270 205,082
 Retained earnings, partially restricted 286,584 233,081
 Total stockholders' equity 524,765 468,811
 Total liabilities and
 stockholders' equity $9,513,922 $9,297,253
 STANDARD FEDERAL BANK AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except share data)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 (unaudited)
 Interest income:
 Money market
 investments $2,699 $3,835 $8,930 $25,571
 Investment securities 18,630 20,574 80,839 79,066
 Mortgage-backed
 securities 86,801 97,065 366,869 399,199
 Loans receivable 98,949 94,345 372,163 367,939
 Total 207,079 215,819 828,801 871,775
 Interest expense:
 Deposits 95,777 113,300 385,516 441,670
 FHLB advances and other
 long-term borrowings 39,399 41,434 162,221 181,075
 Securities sold under
 agreements to
 repurchase 14,005 17,921 69,259 82,007
 Total 149,181 172,655 616,996 704,752
 Net interest income 57,898 43,164 211,805 167,023
 Provision for losses 2,707 3,048 11,990 7,439
 Net interest income
 after provision for
 losses 55,191 40,116 199,815 159,584
 Non-interest income:
 Loan fees and charges 1,684 1,514 5,873 5,725
 Other fees and charges 3,723 3,323 14,824 12,085
 Loan servicing income 1,410 2,850 10,204 10,565
 Gain on the sale of
 earning assets 7,489 3,982 12,424 5,395
 Gain (loss) on the sale
 of real estate and other
 repossessed assets (697) 203 (1,605) (469)
 Other 696 1,292 3,715 6,079
 Total 14,305 13,164 45,435 39,380
 Other expenses:
 Compensation and
 benefits 13,961 15,920 56,881 60,213
 Occupancy and equipment 8,677 8,360 34,020 33,501
 Federal insurance
 premium 3,258 2,920 13,222 11,782
 General and
 administrative 2,262 3,118 9,956 11,576
 Advertising 2,542 1,433 5,560 5,603
 Other taxes 879 1,317 5,414 1,305
 Other 1,491 612 4,846 3,032
 Total operating and
 administrative expenses 33,070 33,680 129,899 127,012
 Amortization of cost in
 excess of fair value of
 net assets acquired 2,516 2,137 9,061 8,619
 Total 35,586 35,817 138,960 135,631
 Income before provision
 for federal income
 taxes 33,910 17,463 106,290 63,333
 Provision for federal
 income taxes 12,500 6,900 40,488 23,270
 Net income $21,410 $10,563 $65,802 $40,063
 Earnings per share $0.68 $0.34 $2.11 $1.30
 Dividends per common
 share $0.10 $0.10 $0.40 $0.40
 -0- 1/16/92
 /CONTACT: Joseph Krul of 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


SB-ML -- DE017 -- 0648 01/16/92 15:41 EST
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