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THE GREATER NEW YORK SAVINGS BANK ANNOUNCES THIRD QUARTER RESULTS

 THE GREATER NEW YORK SAVINGS BANK ANNOUNCES THIRD QUARTER RESULTS
 NEW YORK, Oct. 22 /PRNewswire/ -- The Greater New York Savings Bank (OTC: GRTR) announced today net income for the third quarter of 1992 of $0.1 million, compared with a net loss of $11.9 million for the third quarter of 1991.
 Gerard C. Keegan, chairman and chief executive officer of the Greater, said third quarter 1992 earnings were affected by the bank's decision to provide an additional $15 million to the Reserves for Loan and Real Estate Losses as well as by security gains of $8 million. The loss provisions reflect management's evaluation of the loan and real estate portfolios as well as of the FDIC and New York State Banking Department's examination process.
 "Despite the addition to our reserves, we have continued to build our capital and reduced nonperforming assets by 13 percent," Mr. Keegan said.
 For the first nine months of 1992, net income was $13.3 million, compared with a net loss for the first nine months of 1991 of $53.6 million.
 The Greater attributed the improvement in third quarter results, compared to the same period last year, to increased core earnings, a reduction in nonperforming assets and gains on the sale of securities. These gains were partially offset by an increase in the combined provision for loan and real estate losses. The year-to-date 1992 results, compared to the same period last year, improved because of increased core earnings, gains on the sale of assets and a decline in the combined provision for loan and real estate losses.
 Among improvements reported in the third quarter, The Greater increased its Tier 1 leverage capital ratio at Sept. 30, 1992 to 5.10 percent from 4.51 percent on Sept. 30, 1991 and 5.02 percent on June 30, 1992. As previously reported, The Greater is required by both the FDIC and the New York State Banking Department to maintain a Tier 1 leverage capital ratio of 5.0 percent and to achieve a 5.5 percent ratio by June 30, 1993. The Greater also reported a risk-based capital ratio of 9.80 percent on Sept. 30, 1992, compared with 8.68 percent on Sept. 30, 1991 and 9.82 percent on June 30, 1992.
 Nonperforming assets declined to $257 million at Sept. 30, 1992, compared to $295 million at June 30, 1992 and $296.4 million at Sept. 30, 1991.
 Mr. Keegan said, "While we continue to focus our efforts on reducing nonperforming assets, we also have bolstered significantly our residential loan origination staff. We anticipate increased activity in this area in the coming months."
 Additionally, the bank's net interest margin was 3.12 percent in the third quarter of 1992, up from 2.00 percent in the third quarter of 1991 and 2.69 percent in the second quarter of 1992.
 The combined provision for loan and real estate losses amounted to $15 million in the third quarter of 1992, compared with $12.7 million in last year's third quarter and $8 million in the second quarter of 1992. At Sept. 30, 1992, the combined allowance for loan and real estate losses amounted to $46 million, down from $56.7 million at June 30, 1992. Chargeoffs in the third quarter of 1992 totaled $25.7 million, compared with $17.4 million for this year's second quarter and $5.1 million for the third quarter of 1991.
 Depending on the final report to be issued in conjunction with the examination process, The Greater may not have achieved full compliance with the provisions of the order of the FDIC and New York State Banking Department which require the Bank to reduce the assets classified by the FDIC and New York State Banking Department as of March 31, 1991 to not more than 150 percent of equity and reserves as of June 30, 1992. This ratio is required to be reduced further to 100 percent by June 30, 1993.
 The Greater New York Savings Bank is an FDIC insured, New York chartered stock savings bank with assets of $2.7 billion, deposits of $2.2 billion and total stockholder's equity of $142 million at Sept. 30, 1992.
 THE GREATER NEW YORK SAVINGS BANK AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share)
 Quarters ended 9/30/92 9/30/91(A) 6/30/92
 Operations data:
 Net interest and dividend income $19,646 $13,687 $17,727
 Provisions for loan and real
 estate losses(B) 15,000 12,656 8,000
 Net gain on sales of assets 8,136 87 5,475
 Other operating income (C) 2,263 1,526 2,039
 Other operating expenses(D) 14,744 15,038 13,774
 Tax expense (benefit) 186 (471) 189
 Net income (loss) 115 (11,923) 3,278
 Core earnings(E) 7,165 175 5,992
 Primary earnings (loss) per share ($0.03) ($0.98) $0.22
 Fully diluted earnings per share N/A N/A 0.19
 Selected other data (annualized)
 as a percent:
 Earning asset yield 7.95 8.43 7.87
 Cost of funds 4.83 6.59 5.26
 Interest rate spread 3.12 1.84 2.61
 Other operating expense to
 average assets 3.89 2.51 3.12
 Other operating expense (excluding
 nonperforming loan and real estate
 activities expense) to
 average assets 1.75 1.66 1.73
 Equity to assets ratios
 -- GAAP 5.19 4.61 5.18
 -- Tier 1 leverage 5.10 4.51 5.02
 Risk-based capital ratio 9.80 8.68 9.82
 (B) -- Provision for loan losses $3,035 $9,223 --
 (B) -- Provision for real
 estate losses $11,965 $3,433 $8,000
 (C) -- Other operating income excludes the net gain on sales of assets.
 (D) -- Other operating expenses excludes the provision for real estate losses.
 N/A -- Fully diluted earnings per share is not dilutive.
 (A) -- Restated to maintain comparability with the current period's presentation.
 (E) -- Core earnings is defined as net income before (i) taxes (ii) net gain on sales of assets and (iii) provisions for loan and real estate losses.
 THE GREATER NEW YORK SAVINGS BANK AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share)
 Quarters ended 9/30/92 9/30/91 6/30/92
 Nonperforming assets as a
 percent of total assets 9.39 10.19 10.76
 Foregone interest income
 from nonaccrual loans $4,004 $6,168 $5,903
 Net loan chargeoffs $13,131 $1,247 $4,862
 Net real estate chargeoffs $12,569 $3,873 $12,537
 THE GREATER NEW YORK SAVINGS BANK AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share)
 Nine months ended Sept. 30 1992 1991(A)
 Operations data:
 Net interest and dividend income $54,951 $41,480
 Provisions for loan and real
 estate losses(B) 28,000 61,526
 Net gain on sales of assets 24,580 87
 Other operating income (C) 5,874 4,892
 Other operating expenses(D) 43,585 40,028
 Tax expense (benefit) 564 (1,519)
 Net income (loss) 13,256 53,576
 Core earnings(E) 17,240 6,344
 Primary earnings (loss) per share $0.92 ($4.34)
 Fully diluted earnings per share 0.78 N/A
 Selected other data (annualized)
 as a percent:
 Earning asset yield 8.03 8.57
 Cost of funds 5.26 6.88
 Interest rate spread 2.77 1.69
 Net interest margin 2.81 1.92
 Other operating expense to average assets 3.18 2.98
 Other operating expense (excluding
 nonperforming loan and real estate
 activities expense) to average assets 1.74 1.62
 (B) -- Provision for loan losses $5,097 $34,608
 (B) -- Provision for real estate losses $22,903 $26,918
 (C) -- Other operating income excludes the net gain on sales of assets.
 (D) -- Other operating expenses excludes the provision for real estate losses.
 N/A -- Fully diluted earnings per share is not dilutive.
 (A) -- Restated to maintain comparability with the current period's presentation.
 (E) -- Core earnings is defined as net income before (i) taxes (ii) net gain on sales of assets and (iii) provisions for loan and real estate losses.
 THE GREATER NEW YORK SAVINGS BANK AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share)
 Nine months ended Sept. 30 1992 1991
 Foregone interest income
 from nonaccrual loans $14,042 $19,311
 Net loan chargeoffs 21,641 15,108
 Net real estate chargeoffs 26,842 12,971
 THE GREATER NEW YORK SAVINGS BANK AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share)
 9/30/92 12/31/91
 Financial condition data:
 Total assets $2,736,136 $2,847,742
 Loans receivable 1,424,822 1,771,401
 Allowance for loan losses (29,633) (46,177)
 Total 1,395,189 1,725,224
 Mortgage-backed securities, net 687,369 766,469
 Securities held for sale, net 262,482 --
 Investment securities, net 92,641 117,812
 Real estate held for development
 and acquired through foreclosure:
 Other real estate $63,846 $46,488
 In-substance foreclosures 98,357 42,419
 Joint ventures 23,675 31,812
 Total 185,878 120,719
 Allowance for real estate losses (16,412) (20,351)
 Total 169,466 100,368
 Deposits 2,225,683 2,277,692
 Borrowed funds 324,275 374,001
 Stockholders' equity 142,013 129,176
 Selected ratios (as a percent):
 Negative one-year gap to
 total assets 10.5 8.6
 Interest-sensitive assets
 to total assets:
 Under 1 year 26.3 38.6
 Under 5 years 74.0 75.2
 Book value per share $10.77 $9.86
 -0- 10/22/92
 /CONTACT: Philip A. Cimino, senior vice president of Greater New York Savings Bank, 212-613-4063/
 (GRTR) CO: The Greater New York Savings Bank ST: New York IN: FIN SU: ERN


AH -- NY026 -- 3658 10/22/92 13:23 EDT
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