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THE STUDENT LOAN CORPORATION ANNOUNCES 1992 EARNINGS

 ROCHESTER, N.Y., Jan. 21 /PRNewswire/ -- The Student Loan Corporation (NYSE: STU) today reported net income of $51.0 million ($2.55 per share) for the year ended Dec. 31, 1992, up 96.1 percent over net income of $26.0 million ($1.30 per share) in 1991. Fourth quarter 1992 net income was $15.8 million ($0.79 per share), compared with $7.7 million ($0.39 per share) in the fourth quarter of 1991. The significant gains in net income arose as a result of growth in the balances of student loans and the substantially lower interest rate environment.
 The company's board of directors intends to consider declaration of a dividend on the company's common stock at the next regular board meeting, which is currently scheduled for April.
 "1992 was the most successful year ever for our business," said Stephen Biklen, president and chief executive officer of the company. "The real credit goes to our employees. It is through their effort that we were able to generate the highest number of applications ever, increase our market share, implement significant systems changes required by the 1992 Amendments to the Higher Education Act, and offer a new loan product as permitted by these same Amendments."
 At Dec. 31, 1992, the company's insured student loan assets were $3.4 billion, up 18.5 percent over December 31, 1991 balances of $2.9 billion. The Company originated $885 million of loans during 1992, up 20.2 percent over 1991 originations of $736 million. Expenses were up only 1.5 percent reflecting the Company's continued focus on expense management.
 The Company earns interest on substantially all of its student loan portfolio at a rate equal to the higher of a floating rate based on the 91-day Treasury Bill rate or a floor rate (a fixed minimum rate). The Company funds the majority of its loans with variable rate liabilities. In low interest rate environments, such as all of 1992, the Company's net spread is improved by the floor income.
 The floor income on the Company's student loan portfolio accounted for $14.9 million ($0.75 per share) of net income in 1992 compared with $0.9 million ($0.05 per share) in 1991. Floor income accounted for $5.4 million ($0.27 per share) of net income in the 1992 fourth quarter versus $0.5 million ($0.03 per share) in the year-earlier quarter. On most student loans initially disbursed after Oct. 1, 1992, the Company's interest earnings will be based solely on a floating rate, with no fixed minimum rate, and therefore the Company will not earn floor income on these loans.
 The Student Loan Corporation is the nation's largest originator and is second only to The Student Loan Marketing Association in holdings of insured student loans. The Company was operated as a division of Citibank (New York State), a subsidiary of Citicorp (NYSE: CCI), until December, 1992. Citibank (New York State) completed an initial public offering of 20 percent of the Company's common stock on December 23, 1992 and continues to hold the remaining 80 percent interest.
 "In 1992, working closely with our key schools to differentiate our service enabled the Company to remain an approved lender of choice," Biklen said. "In doing so, we grew market share of guaranteed loans to 6.2 percent in 1992, up from 5.5 percent in 1991. We remained dedicated to providing quality service to our customers, and we worked hard at doing things the right way. We have focused on quality because we know of its value to our earnings. We've had extraordinary occurrences in 1992, such as changes resulting from the 1992 Amendments and our recent public offering. It is indeed a tribute to our staff that we were able to absorb these impacts with no disruption in service."
 Biklen noted, "It has been an extraordinary year for the Company, both in terms of growth and in terms of direction. The strength and focus that everyone displayed throughout 1992 demonstrates the very strong commitment we have to our customers and our product."
 THE STUDENT LOAN CORPORATION
 Statement of Income
 (In thousands of dollars, except per share amounts)
 Three months period ended Dec. 31 1992 1991 Change
 Interest income 66,732 60,905 5,827
 Interest expense 32,177 39,868 (7,691)
 Net interest income 34,555 21,037 13,518
 Fee income 52 48 4
 Total income 34,607 21,085 13,522
 Salaries and employee benefits 4,887 4,484 403
 Other expenses 4,207 4,276 (69)
 Total operating expenses 9,094 8,760 334
 Income before income taxes 25,513 12,325 13,188
 Income taxes 9,700 4,600 5,100
 Net income 15,813 7,725 8,088
 Earnings per common share $0.79 $0.39 $0.40
 Other data:
 Return on average total assets
 (in percent) 1.88 1.08 0.80
 Net interest margin (in percent) 4.17 3.01 1.16
 Operating expenses on a percent of 1.10 1.25 (0.15)
 average loan assets
 Excluding impact of floors:
 Net income 10,447 7,201 3,246
 Earnings per common share $0.52 $0.36 $0.16
 Net interest margin (in percent) 3.11 2.90 0.21%
 THE STUDENT LOAN CORPORATION
 Statement of Income
 ($ in thousands, except per share amounts)
 Year ended Dec. 31 1992 1991 Change
 Interest income 257,303 245,949 11,354
 Interest expense 140,603 170,260 (29,657)
 Net Interest income 116,700 75,689 41,011
 Fee income 153 465 (312)
 Total income 116,853 76,154 40,699
 Salaries and employee benefits 18,685 17,173 1,512
 Other expenses 16,293 17,284 (991)
 Total operating expenses 34,978 34,457 521
 Income before income taxes 81,875 41,697 40,178
 Income taxes 30,900 15,700 15,200
 Net income 50,975 25,997 24,978
 Earnings per common share $2.55 $1.30 $1.25
 OTHER DATA (As a percent):
 Return on average total assets 1.62 0.97 0.65
 Net interest margin 3.78 2.92 0.86
 Operating expenses as a percent of 1.13 1.31 (0.18)
 average loan assets
 Excluding Impact of Floors:
 Net income 36,095 25,058 11,037
 Earnings per common share $1.80 $1.25 $0.55
 Net interest margin
 (as a percent) 2.99 2.87 0.12
 Balance Sheet
 ($ Thousands)
 Dec. 31 1992 1991 Change
 ASSETS:
 Insured student loans 3,426,314 2,890,738 535,576
 Cash 282 25 257
 Other assets 64,351 56,015 8,336
 Total assets 3,490,947 2,946,778 544,169
 LIABILITIES:
 Short-term borrowing 2,759,641 450,000 2,309,641
 Long-term notes 600,000 1,350,000 (750,000)
 Amounts due parent 0 1,113,358 (1,113,358)
 Other liabilities, 29,560 33,420 (3,860)
 principally accrued interest
 payable
 Total liabilities 3,389,201 2,946,778 442,423
 STOCKHOLDERS' EQUITY:
 Common stock 200 0 200
 Additional paid-in capital 99,800 0 99,800
 Retained Earnings 1,746 0 1,746
 Total stockholders' equity 101,746 0 101,746
 Total liabilities and equity 3,490,947 2,946,778 544,169
 Average insured student loans 3,094,360 2,630,141 464,219
 -0- 1/21/93
 /CONTACT: Susan Weeks, 212-559-0580, or Maria Rullo, 212-559-0409, or (investors) Deborah Russe ll, 212-559-4658, or John Eley, 212-559-2479, all for Student Loan Corporation/
 (STU)


CO: Student Loan Corporation ST: New York IN: FIN SU: ERN

TS-WB -- NY084 -- 7606 01/21/93 16:26 EST
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Date:Jan 21, 1993
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