Printer Friendly

WEST ONE BANCORP EARNINGS INCREASED 32 PERCENT FOR RECORD 3RD QUARTER

 BOISE, Idaho, Oct. 21 /PRNewswire/ -- West One Bancorp (NASDAQ-NMS: WEST)(West One) today reported record earnings attributable to strong loan growth and a higher net interest margin for the third quarter of 1993. West One earned $21.8 million for the quarter ended Sept. 30, 1993, a 32-percent increase from the $16.5 million earned in the same quarter of 1992. Fully diluted earnings per share were 62 cents for the third quarter of 1993 compared to 50 cents for the third quarter of 1992. Results for the current quarter represented a return on average assets of 1.16 percent and a return on average shareholders' equity of 16.10 percent.
 Net income for the nine months ended Sept. 30, 1993, of $60.8 million was 32 percent higher than the $46.0 million earned during the same period in 1992. On a fully diluted basis, year-to-date earnings per share amounted to $1.75 in 1993 compared to $1.48 in 1992. The earnings gain was attributable to higher net interest income as net interest margin widened, the volume and composition of earning assets improved and the credit loss provision declined due to significantly lower nonperforming loans an net charge-offs.
 "Loan growth continues to be a key factor in our strong earnings performance in 1993," said Daniel R. Nelson, chairman and chief executive officer of West One Bancorp. "The loan growth is not concentrated geographically or by industry as all bank affiliates and loan categories recorded significant increases from year-end. Asset quality has improved over the same time period and West One currently reports some of the best asset quality ratios in the financial services industry."
 The regional economy represented by West One's market area of Idaho, Washington, Oregon and Utah continued to outperform the national economy during the third quarter of 1993. Utah led the nation in terms of job growth, while Idaho and Oregon posted performances substantially above the national average during the third quarter. Seasonally adjusted job totals early in the third quarter exceeded a very strong second quarter in Idaho, Oregon and Utah. Washington's service sector employment continues to expand; however, cutbacks in the state's important aerospace industry have more than offset the growth. Expanding populations, combined with favorable interest rates, extended the housing boom in Idaho and Utah and led to increased residential construction activity in both Washington and Oregon during the third quarter. Annual gains in residential construction permit activity ranged from 20 percent in Washington to 44 percent in Utah during August. Agricultural harvest conditions were favorable throughout the region and good yields are being reported. Idaho's 1993 net farm income is expected to exceed last year's level by 11 percent.
 Taxable equivalent net interest income was $83.3 million in the third quarter of 1993, up 29 percent from the same period last year. Earning assets averaged $6.7 billion during the current quarter, an increase of 27 percent from the same quarter in 1992. Loans registered a 35-percent increase over the same period. The increase in earning assets and loans included the September 1992 acquisition of Security Pacific branches in Washington. Excluding the effect of the acquisition, loans increased approximately 22 percent in the third quarter of 1993 compared to the same quarter last year. Loans accounted for 76 percent of earning assets in the current quarter compared to 71 percent last year. Higher volumes of earning assets and an improved mix contributed to a 6 basis point increase in net interest margin over the same time period to 4.92 percent in the third quarter of 1993. Compared to the previous quarter, average loans increased 6 percent and net interest margin improved 10 basis points in the third quarter of 1993. Taxable equivalent net interest income for the first nine months of 1993 totaled $236.7 million, an increase of 32 percent from the same period in 1992.
 The provision for credit losses was $3.9 million in the third quarter of 1993 compared to $2.7 million for the same quarter of 1992. Net charge-offs totaled $2.6 million or 0.20 percent of average loans in the current quarter, down from 0.21 percent of average loans in the corresponding quarter of last year. Nonperforming assets totaled $28.1 million or 0.38 percent of assets at Sept. 30, 1993, a decline of 16 percent compared to $33.6 million or 0.51 percent of assets a year ago. The allowance for credit losses was $73.1 million at Sept. 30, 1993 and represented 308 percent of nonperforming loans compared to 256 percent a year ago. The credit loss provision for the first nine months of 1993 was $10.4 million, a 12-percent decline from the prior year.
 Noninterest income totaled $26.5 million in the third quarter of 1993, an increase of 30 percent from the $20.4 million reported in the same quarter of 1992. In addition to the expanded operations in Washington, the improvement reflected a significant increase in bankcard related income due to increased numbers of merchants served, credit cards outstanding and transaction volumes.


Fees and commissions on the sale of retail investment products also contributed to higher noninterest income. Noninterest income for the first nine months of 1993 totaled $75.0 million and exceeded the prior year by 25 percent.
 Noninterest expense increased 24 percent to $68.9 million in the third quarter of 1993 and 31 percent to $199.0 million in the first nine months of 1993 compared to the corresponding periods of 1992. The increases were attributable to the Washington acquisition. West One's efficiency ratio improved to 62.94 percent in the third quarter of
1993 from 65.17 percent in the same quarter last year. In the fourth quarter of 1992, the first full quarter reflecting the Washington acquisition, the efficiency ratio was 67.66 percent.
 Shareholders' equity was $551.4 million at Sept. 30, 1993, a 19-percent increase from a year ago, and represented 7.43 percent of assets compared to 7.00 percent last year. Capital adequacy levels established by the Federal Reserve Board require minimum leverage, tier 1 and total capital ratios of 3 percent, 4 percent and 8 percent, respectively. In addition, regulators deem a financial institution "well capitalized" when leverage, tier 1 and total capital ratios total at least 5 percent, 6 percent and 10 percent, respectively. West One's leverage, tier 1 and total capital ratios were 6.90 percent, 8.69 percent and 11.08 percent, respectively, at Sept. 30, 1993.
 A two-for-one split of the Company's common stock was paid Aug. 13, 1993 to shareholders of record on July 23, 1993. The related historical data has been adjusted to reflect the split.
 West One Bancorp is a regional bank holding company headquartered in Boise. West One has assets of $7.4 billion and offers a full range of financial and investment services to its customers in Idaho, Washington, Oregon and Utah.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SUMMARY OF RESULTS
 (Dollars in thousands, except per share data)
 Quarter Year
 Ended Sept. 30, 1993 1992 1993 1992
 Net income $21,775 $16,503 $60,754 $45,980
 Primary earnings per share(A) 0.65 0.52 1.84 1.55
 Fully diluted earnings
 per share(A) 0.62 0.50 1.75 1.48
 Cash dividends declared
 per share(A) 0.155 0.13 0.31 0.39
 Cash dividends paid
 per share(A) 0.155 0.13 0.44 0.38
 Taxable equivalent net
 interest income 83,264 64,619 236,689(B) 179,083
 STATISTICAL DATA
 Quarter Year
 Ended Sept. 30, 1993 1992 1993 1992
 Rate of return on:
 Average total assets(percents) 1.16 1.12 1.13 1.12
 Average common
 shareholders' equity 16.10 14.36 15.70 15.12
 Net interest margin (taxable
 equivalent basis) 4.92 4.86 4.85 4.80
 Net charge-offs as a
 percent of average
 loans outstanding 0.20 0.21 0.16 0.30
 Shareholders' equity to
 assets (average) 7.23 7.81 7.17 7.39
 Allowance for credit losses
 to loans (average) 1.44 1.58 1.49 1.58
 Weighted average common shares
 outstanding(A) 32,758,860 31,193,076 32,550,747 29,245,684
 Common stock equivalents -
 primary(A) 501,323 418,348 491,124 403,508
 Common stock equivalents -
 fully diluted(A) 544,256 425,100 507,345 431,528
 Other dilutive securities
 (convertible
 debentures)(A) 2,687,450 2,687,450 2,687,450 2,687,450
 Sept. 30, 1993 1992
 Book value per common share(A) $16.76 $14.90
 Closing stock price per common share(A) 29 1/2 20 1/2
 Period-end number of common
 shares outstanding(A) 32,894,154 31,218,512
 (A) Amounts have been restated for the two-for-one stock split
 paid Aug. 13, 1993.
 (B) Reflects prior quarter adjustments to provide for the
 retroactive tax rate increase.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SELECTED AVERAGE BALANCE SHEET COMPONENTS
 (Dollars in thousands)
 Quarter Year
 Ended Sept. 30, 1993 1992 1993 1992
 Loans $5,072,383 $3,762,016 $4,789,681 $3,545,246
 Earning assets 6,714,016 5,294,302 6,531,271 4,985,958
 Total assets 7,426,001 5,853,036 7,215,642 5,492,551
 Deposits 5,739,819 4,468,125 5,639,770 4,174,990
 Shareholders' equity 536,637 457,304 517,245 406,118
 SELECTED BALANCE SHEET COMPONENTS
 Sept. 30, 1993 1992
 Loans $5,176,211 $4,403,166
 Allowance for credit losses 73,136 66,772
 Total assets 7,421,691 6,640,641
 Deposits 5,699,841 5,285,827
 Shareholders' equity 551,354 465,051
 LOANS OUTSTANDING
 Sept. 30, 1993 1992
 Loans:
 Commercial $1,568,627 $1,339,772
 Agricultural 411,509 414,403
 Real estate 2,049,712 1,661,605
 Consumer 991,512 850,944
 Leases 154,851 136,442
 Total loans $5,176,211 $4,403,166
 WEST ONE BANCORP AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited; dollars in thousands except per share)
 Sept. 30, 1993 1992
 Assets
 Cash and due from banks $386,450 $379,287
 Due from banks - interest bearing 1,379 112,600
 Federal funds sold, securities purchased
 under agreements to resell and other 7,482 48,194
 Securities:
 Investment:
 United States Treasury and
 Government agencies 448,239 542,216
 State and municipal bonds 504,747 405,559
 Mortgage-backed securities 66,789 278,418
 Other 203,385 243,435
 Held for sale 382,221 ---
 Total securities 1,605,381 1,469,628
 Loans:
 Commercial 1,568,627 1,339,772
 Agricultural 411,509 414,403
 Real estate 2,049,712 1,661,605
 Consumer 991,512 850,944
 Leases 154,851 136,442
 Total loans 5,176,211 4,403,166
 Allowance for credit losses (73,136) (66,772)
 Net loans 5,103,075 4,336,394
 Premises and equipment 123,043 116,864
 Interest receivable 53,394 49,610
 Other assets 141,487 128,064
 Total assets 7,421,691 6,640,641
 Liabilities
 Deposits:
 Noninterest bearing 1,101,653 954,429
 Interest bearing demand 694,880 616,165
 Regular and money market savings 1,907,066 1,621,950
 Time certificates under $100,000 1,546,940 1,661,634
 Time certificates $100,000 and over 449,302 431,649
 Total deposits 5,699,841 5,285,827
 Federal funds purchased and securities
 sold under agreements to repurchase 573,245 477,981
 Other short-term borrowings 377,900 214,325
 Long-term debt 117,393 118,689
 Other liabilities 101,958 78,768
 Total liabilities 6,870,337 6,175,590
 Shareholders' equity
 Common stock, $1.00 par value:
 Authorized 75,000,000 shares; issued
 and outstanding 32,894,154 and
 31,218,512 shares, respectively 32,894 31,219
 Capital surplus 259,311 236,030
 Retained earnings 259,149 197,802
 Total shareholders' equity 551,354 465,051
 Total liabilities
 and shareholders' equity $7,421,691 $6,640,641
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited; dollars in thousands, except per share)
 For the For the nine
 quarter ended months ended
 Sept. 30, 1993 1992 1993 1992
 Interest income
 Loans $104,172 $84,435 $296,581 $243,330
 Short-term investments 106 1,076 1,255 6,742
 Interest and dividends
 on securities:
 United States Treasury and
 Government agencies 7,260 9,147 24,203 26,458
 State and municipal bonds 6,528 3,844 18,159 10,579
 Mortgage-backed securities 4,725 5,901 16,954 14,865
 Other 3,849 3,999 12,731 10,639
 Total interest income 126,640 108,402 369,883 312,613
 Interest expense
 Deposits 39,487 38,634 122,087 115,934
 Federal funds purchased
 and securities sold under
 agreements to repurchase 4,302 4,857 13,107 16,498
 Other short-term borrowings 2,537 994 5,112 3,081
 Long-term debt 1,843 2,565 6,416 7,461
 Total interest expense 48,169 47,050 146,722 142,974
 Net interest income 78,471 61,352 223,161 169,639
 Provision for credit losses 3,894 2,672 10,400 11,756
 Net interest income after
 provision for credit losses 74,577 58,680 212,761 157,883
 Noninterest income
 Trust fees and commissions 3,480 2,928 10,224 8,690
 Service charges on
 deposit accounts 9,260 7,691 26,880 21,875
 Other service charges,
 fees and commissions 10,571 7,597 30,079 21,712
 Other 2,858 2,175 7,475 6,266
 Securities gains 339 57 367 1,612
 Total noninterest income 26,508 20,448 75,025 60,155
 Noninterest expense
 Employee compensation
 and benefits 32,739 28,113 95,063 74,887
 Net occupancy 4,907 3,423 14,580 9,414
 Equipment 5,670 4,568 16,093 11,839
 Supplies and services 9,038 6,467 25,861 19,786
 Marketing 2,475 1,490 7,100 5,415
 Insurance and
 miscellaneous taxes 4,269 3,361 12,710 9,341
 Other 9,775 7,976 27,630 20,911
 Total noninterest expense 68,873 55,398 199,037 151,593
 Income before taxes 32,212 23,730 88,749 66,445
 Provision for income taxes 10,437 7,227 27,995 20,465
 Net income $21,775 $16,503 $60,754 $45,980
 Primary earnings per share $ 0.65 $ 0.52 $ 1.84 $ 1.55
 Fully diluted earnings per share 0.62 0.50 1.75 1.48
 Dividends declared per share 0.155 0.13 0.31 0.39
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 ALLOWANCE FOR CREDIT LOSSES AND CREDIT RISK DATA
 (Dollars in thousands)
 Allowance for Credit Losses 1993 1992
 Balance at July 1: $ 71,822 $ 56,075
 Total charge-offs 4,384 4,442
 Total recoveries 1,804 2,418
 Net charge-offs 2,580 2,024
 Provision for credit losses 3,894 2,672
 Addition for acquisition -- 10,049
 Balance at September 30 $ 73,136 $ 66,772
 Average loans outstanding
 during the quarter $5,072,383 $3,762,016
 Net charge-offs as a percent of
 average loans (annualized) 0.20 pct. 0.21 pct.
 Quarter-end allowance for
 credit losses as a percent
 of quarter-end loans 1.41 1.52
 Credit Risk Assets
 Sept. 30, 1993 1992
 Nonperforming assets:
 Nonaccrual loans $ 23,354 $ 25,748
 Restructured loans 365 325
 Other real estate owned 4,425 7,530
 Total $ 28,144 $ 33,603
 Allowance for credit losses as a
 percent of nonperforming loans 308 pct. 256 pct.
 Nonperforming assets to loans
 and other real estate owned 0.54 0.76
 Accruing loans past due 90 days
 or more $ 2,008 $ 3,620
 WEST ONE BANCORP DECLARES 16-PERCENT INCREASE IN QUARTERLY DIVIDEND
 BOISE, Idaho, Oct. 21 /PRNewswire/ -- The board of directors of West One Bancorp (NASDAQ-NMS: WEST) today declared a quarterly cash dividend of 18 cents per share on common stock outstanding to shareholders of record Dec. 31, 1993. The dividend is payable Jan. 20, 1994. This increase represents a 16-percent increase from the 15-1/2 cents per common share cash dividend declared the previous quarter.
 West One Bancorp, headquartered in Boise, has been a banking leader in the Pacific Northwest for 126 years. With assets of $7.4 billion, West One offers a full range of financial and investment services in Idaho, Washington, Oregon and Utah.
 -0- 10/21/93
 /CONTACT: Linda Blount-Strauss of West One Bancorp, 208-383-7474/
 (WEST)


CO: ST: IN: SU:

JH -- SE099 -- 5537 10/22/93 07:14 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 22, 1993
Words:2745
Previous Article:CHILDREN'S DISCOVERY CENTERS ANNOUNCES THIRD QUARTER AND NINE MONTHS REVENUES AND EARNINGS
Next Article:SANMINA FILES REGISTRATION STATEMENT FOR 2,150,000 SHARES OF COMMON STOCK
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters