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T R FINANCIAL CORP. ANNOUNCES THIRD QUARTER RESULTS

 GARDEN CITY, N.Y., Oct. 21 /PRNewswire/ -- T R Financial Corp. (NASDAQ-NMS: ROSE), the holding company for Roosevelt Savings Bank, today reported net income for the quarter ended Sept. 30, 1993, of $2.5 million or $0.22 per share, compared with $2.6 million for the third quarter of 1992. For the first nine months of 1993, net income rose to $6.9 million from $6.2 million for the same period one year ago. The results for the 1993 nine month period include an extraordinary item of $2.3 million, representing fees incurred as a result of the prepayment of high cost FHLB borrowings, most of which occurred during the first six months of 1993. Per share figures are presented only for the period subsequent to T R Financial Corp.'s initial public offering. T R Financial Corp. became a publicly held bank holding company on June 29, 1993 when it issued 11,362,000 shares of common stock at a price of $9 per share.
 At Sept. 30, 1993 the bank's leverage and total risk-based capital ratios were 8 percent and 16.61 percent, respectively, compared to 6 percent and 12.14 percent at Dec. 31, 1992. These capital ratios are well in excess of FDIC requirements. At Sept. 30, 1993 T R Financial Corp. had total assets of $1.91 billion and stockholders' equity of $186.2 million which represents an equity to asset ratio of 9.74 percent and a book value of $16.39 per share.
 Total loans, net of the allowance for possible loan losses, reached $1.02 billion at Sept. 30, 1993, an increase of $85.4 million from Dec. 31, 1992. Total mortgage loan originations for the three months ended Sept. 30, 1993 were $85.3 million compared to $66.7 million for the second quarter of 1993. Total deposits decreased $43.3 million from the end of 1992 to $1.23 billion at Sept. 30, 1993. Borrowed funds continued to increase during the third quarter and at Sept. 30, 1993 totaled $442.0 million. This increase was from additional FHLB borrowings and is net of $30.0 million of prepayments which occurred predominantly during the first six months of 1993.
 T R Financial Corp.'s net interest income before provision for possible loan losses increased to $13.1 million for the third quarter of 1993 compared to $11.6 million for the 1992 comparable quarter. While T R Financial Corp.'s interest rate spread narrowed to 2.42 percent compared with 2.73 percent for the same period one year ago, net interest-earning assets increased $100.9 million from $108.3 million during the third quarter of 1992 to $209.2 million in the third quarter of 1993. Non-performing assets decreased to $54.6 million, or 2.86 percent of total assets at Sept. 30, 1993, a decrease of $13.0 million or 135 basis points from Dec. 31, 1992. Non-performing loans decreased to $40.3 million or 3.89 percent of total loans at Sept. 30, 1993, a decrease of $12.1 million or 163 basis points from Dec. 31, 1992.
 The provision for possible loan losses for the quarter ended Sept. 30, 1993 was $1.5 million, a decrease of $1.3 million from the comparable quarter last year. As of Sept. 30, 1993 the bank's allowance for possible loan losses to non-performing assets and non-performing loans continued to increase and was 23.9 percent and 32.4 percent, respectively, compared to 16.5 percent and 21.3 percent at Dec. 31, 1992.
 Non-interest expense for the three months ended Sept. 30, 1993 was $9.7 million, an increase of $1.9 million from the same quarter one year ago. Salary and employee benefits increased $1.5 million over the comparable quarter last year, due primarily to normal salary increases, additions to staff and higher levels of expenses incurred with the benefit plans established in connection with the conversion and post- retirement benefits being accrued under SFAS 106.
 Provision for income taxes for the third quarter of 1993 was $2.0 million, an increase of $505 thousand from the comparable quarter last year. The 1992 third quarter tax provision utilized a lower effective tax rate to reflect a change in the method of calculating the bank's bad debt deduction for tax purposes. The 1993 third quarter effective tax rate includes an increase in the effective tax rate as a result of the enactment of the 1993 Omnibus Tax Act.
 T R Financial Corp. also announced that the Board of Directors has authorized the T R Financial Corp. Employee Stock Ownership Plan and Trust to file a notice with the Federal Reserve Bank of New York and the New York State Banking Department under the Federal and state change in bank control acts. Regulatory processing generally requires at least 90 days following the filing. If approved by the regulatory authorities, the Employee Stock Ownership Plan and Trust would be permitted to increase its beneficial ownership of T R Financial Corp. stock from 9.5 percent currently, to 10 percent or more of the shares outstanding. Such increase may occur either through T R Financial Corp.'s repurchase of common stock, the Employee Stock Ownership Plan and Trust's purchase of common stock or a combination thereof in open market transactions. No decision has been made at this time by the Board of Directors as to T R Financial Corp.'s repurchase or the Employee Stock Ownership Plan and Trust's purchase of common stock.
 T R Financial Corp. and Roosevelt Savings Bank are headquartered in Garden City, New York. Roosevelt Savings Bank services its customers from 12 full-service banking facilities located throughout Nassau, Suffolk, Brooklyn and Queens.
 T R FINANCIAL CORP. AND SUBSIDIARIES
 Consolidated Statements Of Financial Condition
 (Unaudited, in thousands, except share amounts)
 9/30/93 12/31/92
 Assets
 Cash and cash equivalents $ 47,020 $ 64,508
 Money market investments 31,896 43,984
 Securities available for sale
 (estimated market values of
 $223,509 and $198,351
 at 9/30/93 and 12/31/92,
 respectively) 223,341 197,448
 Investment securities
 (estimated market values
 of $335,346 and $231,542
 at 9/30/93 and 12/31/92,
 respectively):
 Bonds:
 United States Government
 and agencies 206,614 114,800
 State, municipal and other 121,552 111,885
 Total 328,166 226,685
 Stocks 3,079 2,965
 Total investment securities 331,245 229,650
 Mortgage-backed securities
 (estimated market values
 of $186,894 and $87,953
 at 9/30/93 and 12/31/92,
 respectively) 181,531 83,186
 Mortgage loans on real
 estate, net 988,458 893,010
 Other loans, net 34,161 44,248
 Other real estate owned 14,061 14,777
 Banking house and
 equipment, net 9,320 9,212
 Accrued interest receivable 14,790 13,351
 Federal Home Loan Bank
 stock, at cost 22,410 9,900
 Other assets 12,686 2,219
 Total assets $1,910,919 $1,605,493
 Liabilities And Stockholders'
 Equity:
 Due to depositors $1,233,748 $1,277,092
 Borrowed funds 441,950 194,250
 Mortgagors' escrow deposits 17,728 7,915
 Accounts payable and
 accrued expenses 12,787 9,882
 Official checks outstanding 8,642 19,588
 Accrued taxes payable --- 1,272
 Other liabilities 9,854 1,170
 Total liabilities 1,724,709 1,511,169
 Commitments and contingencies:
 Stockholders' equity:
 Preferred stock, $.01 par value,
 5,000,000 shares authorized;
 none issued --- ---
 Common stock, $.01 par value,
 30,000,000 authorized,
 11,362,000 issued 114 ---
 Additional paid-in capital 97,903 ---
 Retained earnings,
 substantially restricted 101,267 94,324
 Less:
 Unallocated common stock
 held by ESOP (9,430) ---
 Unearned common stock
 held by RRP's (3,644) ---
 Total stockholders' equity 186,210 94,324
 Total liabilities and
 stockholders' equity $1,910,919 $1,605,493
 Consolidated Statements Of Income
 (Unaudited, in thousands)
 Period ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Interest income:
 Mortgage loans $20,092 $19,176 $58,897 $58,699
 Mortgage-backed
 securities 2,725 1,993 6,620 6,322
 Securities and
 other investments 6,639 6,215 18,932 19,207
 Other loans 840 1,322 2,775 4,559
 Total interest income 30,296 28,706 87,224 88,787
 Interest expense:
 Deposits 11,404 14,223 35,586 45,982
 Borrowed funds 5,783 2,929 14,106 8,126
 Total interest expense 17,187 17,152 49,692 54,108
 Net interest income before
 provision for possible
 loan losses 13,109 11,554 37,532 34,679
 Provision for possible
 loan losses 1,500 2,750 4,900 7,150
 Net interest income after
 provision for possible
 loan losses 11,609 8,804 32,632 27,529
 Non-interest income:
 Loan fees and other
 charges, net 2,002 1,985 5,890 5,202
 Net gain on sales
 of securities 246 676 3,494 1,728
 Gain on sales of mortgage-
 backed securities --- --- --- 144
 Gain on sales of
 whole loans 207 263 544 794
 Other income 142 133 416 408
 Total non-interest income: 2,597 3,057 10,344 8,276
 Non-interest expense:
 Salaries and employee
 benefits 5,265 3,788 13,869 11,110
 Occupancy and equipment
 expense 845 894 2,619 2,550
 Marketing expense 553 415 1,518 1,202
 Other real estate
 owned expense 391 419 2,484 1,392
 FDIC assessment 755 740 2,231 2,190
 Other operating expense 1,887 1,549 5,036 4,672
 Total non-interest expense 9,696 7,805 27,757 23,116
 Inc. bef. provision for inc.
 taxes, extraord. items and
 net cumulative effect of
 changes in acct principles 4,510 4,056 15,219 12,689
 Provision for income taxes 2,003 1,498 6,489 6,502
 Inc. bef. extraord. items
 and net cumulative effect
 of changes in accounting
 principles 2,507 2,558 8,730 6,187
 Extraordinary charges
 from prepayment of
 FHLB advances, net (19) --- (2,287) ---
 Net cumulative effect of
 changes in accounting
 principles --- --- 500 ---
 Net income $ 2,488 $2,558 $6,943 $6,187
 Earnings per share: (A)
 Inc. bef. extraord. charges
 and net cumulative effect
 of changes in
 accounting principles $ .22 N/A N/A N/A
 Extraordinary charges --- N/A N/A N/A
 Net income $ .22 N/A N/A N/A
 (A) Earnings per share data represent earnings since the conversion on June 29, 1993.
 Selected Financial Ratios And Other Data
 (Dollars in Thousands)
 At or for the three months ended
 Sept. 30, 1993 1992
 Performance Ratios:
 Return on average assets 0.54 percent 0.66 percent
 Return on average
 stockholders' equity 5.36 percent 11.60 percent
 Average stockholders'
 equity to average assets 10.02 percent 5.69 percent
 Stockholders' equity
 to total assets 9.74 percent 5.84 percent
 Interest rate spread
 during period 2.42 percent 2.73 percent
 Net interest margin 2.93 percent 3.09 percent
 Non-interest expense to
 average assets 2.09 percent 2.01 percent
 Ratio of net interest income
 to non-interest expense 1.35x 1.48x
 Average interest-earning
 assets to average interest-
 bearing liabilities 1.13x 1.08x
 Other Data:
 Allowance for possible
 loan losses $ 13,046 $ 10,870
 Mortgage loan originations
 (Year to date) $210,224 $153,029
 Full-service customer facilities 12 12
 At 9/30/93 At 12/31/92
 Regulatory Capital Ratios (Bank only):
 Leverage capital ratio 8.00 percent 6.00 percent
 Total risk-based capital ratio 16.61 percent 12.14 percent
 Assets Quality Ratios:
 Non-performing loans
 to total loans(B) 3.89 percent 5.52 percent
 Non-performing assets
 to total assets 2.86 percent 4.21 percent
 Net charge-offs to average
 loans (Year to date)(B) 0.39 percent 0.41 percent
 Allowance for possible loan losses
 to total loans(B) 1.26 percent 1.18 percent
 Allowance for possible loans losses
 to non-performing assets 23.88 percent 16.49 percent
 Allowance for possible loan losses
 to non-performing loans(B) 32.36 percent 21.28 percent
 (B) Reflects the effects of reclassifying in-substance foreclosed loans from other real estate owned to mortgage loans on real estate in the amount of $3.2 million and $5.1 million at Sept. 30, 1993 and Dec. 31, 1992, respectively.
 -0- 10/21/93
 /CONTACT: Theodore S. Ayvas, assistant vice president - investor relations, 516-742-9300, for T R Financial Corp./
 (ROSE)


CO: T R Financial Corp. ST: New York IN: FIN SU: ERN

MP -- NY057 -- 5210 10/21/93 12:22 EDT
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