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THE STUDENT LOAN CORPORATION ANNOUNCES THIRD QUARTER EARNINGS

 PITTSFORD, N.Y., Oct. 29 /PRNewswire/ -- The Student Loan Corporation (NYSE: STU) today reported net income of $16.6 million ($0.83 per share) for the quarter ended Sept. 30, 1993, an increase of 17 percent over net income of $14.1 million ($0.71 per share) in the third quarter of 1992. Earnings excluding the benefit of floor interest rates on a portion of the loans in the Company's portfolio, were $10.7 million ($0.54 per share) for the quarter, up 21 percent from $8.8 million ($0.44 per share) for third quarter 1992. The improvement in net income was primarily a result of an increase of $621 million (19 percent) in the Company's student loan portfolio from levels at the same time last year and a one-time tax adjustment of $1.5 million.
 The Company also announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.06 per share. This dividend will be paid on Dec. 1, 1993, to shareholders of record on Nov. 12, 1993.
 "Our application volume reached record levels this quarter, with our peak season well underway," commented Stephen C. Biklen, president and CEO.
 At Sept. 30, 1993, the Company's insured student loan assets were $3.8 billion. The Company originated $330.0 million of loans in the third quarter, up 22 percent over third quarter 1992 originations of $271.6 million. Expenses for the quarter were $1.7 million greater than third quarter 1992 as a result of portfolio growth, development of new software, and increased systems modification costs attributable to both the 1992 and 1993 amendments to the Higher Education Act.
 The 1993 Budget Reconciliation legislation enacted on Aug. 10 amended the Higher Education Act of 1965 by establishing a program of direct lending in which an increasing percentage of guaranteed student loans will be made directly by the federal government rather than by originators such as The Student Loan Corporation. In addition, the 1993 Amendments included provisions designed to reduce program costs to the government and to students by reducing lenders' yield while the borrower is in school, and imposing additional fees on originators, holders of loans, and guarantee agencies. Both the creation of a direct lending program and the cost cuts were anticipated by the Student Loan Corporation which supported the savings initiatives and other program simplification measures as a means of improving the current program and as an alternative to full-fledged direct lending.
 "We will continue to generate significant volume in the current program, in terms of both absolute volume and marketshare," commented Mr. Biklen. "It's more important than ever to focus on the basics -- providing high quality servicing, continuing efficiency improvements, maintaining our strong relationships with schools, and our long-standing commitment to originate and hold loans," said Mr. Biklen. The Student Loan Corporation expects to see continued volume growth as a result of expanded eligibility requirements, new marketing programs, and the addition of new guarantor relationships.
 The Student Loan Corporation is the nation's largest originator and second largest holder of insured student loans. Citibank (New York State), a subsidiary of Citicorp, remains the largest shareholder in the Company, with an 80 percent interest.
 THE STUDENT LOAN CORPORATION
 Statements of Income
 (Dollars in thousands, except per share amounts and ratios)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 REVENUE
 Interest income $70,493 $62,644 $209,852 $190,571
 Interest expense 34,932 31,752 99,148 108,426
 Net interest income 35,561 30,892 110,704 82,145
 Fee and other income 359 27 402 101
 Total revenue $35,920 $30,919 $111,106 $82,246
 OPERATING EXPENSES
 Salaries and employee benefits $5,420 $4,631 $15,260 $13,798
 Other expenses 4,548 3,671 13,893 12,086
 Total operating expenses $9,968 $8,302 $29,153 $25,884
 INCOME BEFORE INCOME TAXES $25,952 $22,617 $81,953 $56,362
 Income taxes 9,382 8,500 32,342 21,200
 NET INCOME $16,570 $14,117 $49,611 $35,162
 NET INCOME - excluding floor
 income $10,712 $8,833 $30,969 $25,658
 PER COMMON SHARE (based on 20 million average shares outstanding)
 Net income $0.83 $0.71 $2.48 $1.76
 Net income - excluding floor
 income $0.54 $0.44 $1.55 $1.28
 Dividend declared $0.06 -- $0.12 --
 Return on average total assets
 (pct) 1.72 1.79 1.77 1.53
 Net interest margin (pct) 3.73 4.02 4.02 3.63
 Net interest margin excluding
 floor (pct) 2.62 2.93 2.83 2.95
 Operating expense as a percent of
 average insured student loans 1.08 1.07 1.08 1.15
 THE STUDENT LOAN CORPORATION
 Balance Sheets
 (Dollars in thousands)
 9/30/93 12/31/92
 ASSETS:
 Insured student loans $3,826,701 $3,426,314
 Cash 690 282
 Deferred tax benefits 76,328 --
 Other assets 80,988 64,351
 TOTAL ASSETS $3,984,707 $3,490,947
 LIABILITIES:
 Short-term borrowings $3,090,203 $2,759,641
 Long-term notes 600,000 600,000
 Payable to principal stockholder 39,974 --
 Other liabilities 71,364 29,560
 TOTAL LIABILITIES $3,801,541 389,201
 STOCKHOLDERS' EQUITY:
 Common stock $200 $200
 Additional paid-in capital 134,009 99,800
 Retained earnings 48,957 1,746
 TOTAL STOCKHOLDERS' EQUITY $183,166 $101,746
 TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY $3,984,707 $3,490,947
 AVERAGE INSURED STUDENT LOANS
 (year-to-date) $3,594,600 $3,094,360
 -0- 10/29/93
 /CONTACT: Maria Rullo (press), 212-559-0409, or Donna Watson (investor relations), 716-248-7187, both of Student Loan Corporation/
 (STU)


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

LG-GK -- NY002 -- 8353 10/29/93 08:48 EDT
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Date:Oct 29, 1993
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