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WEST ONE BANCORP EARNINGS INCREASED 36 PERCENT FOR RECORD SECOND QUARTER

    BOISE, Idaho, July 15 /PRNewswire/ -- West One Bancorp (NASDAQ-NMS: WEST) (West One) today reported record earnings for the second quarter of 1993 accompanied by strong loan growth and excellent credit quality.  West One earned $20.8 million for the quarter ended June 30, 1993, a 36 percent increase from the $15.3 million earned in the same quarter of 1992.  Fully diluted earnings per share were $1.20 for the second quarter of 1993 compared to $1.00 for the second quarter of 1992.  The current results represented a return on average assets of 1.15 percent and a return on average shareholder's equity of 16.16 percent.
    Net income for the six months ended June 30, 1993, was $39.0 million or 32 percent higher than the $29.5 million earned during the first six months of 1992.  On a fully diluted basis, year-to-date earnings per share amounted to $2.25 in 1993 compared to $1.95 in 1992. The improvement in earnings was attributable to higher net interest income due to the volume and composition of earning assets and a lower credit loss provision reflecting significant declines in nonperforming loans and net charge-offs.
    "The improvements evident in core business operations during the second quarter were particularly gratifying," said Daniel R. Nelson, chairman and chief executive officer of West One Bancorp.  "In sharp contrast to most areas of the country, loan growth was excellent, credit quality continued to improve and key performance ratios reflected our progress."
    The regional economy, represented by West One's market area of Idaho, Washington, Oregon and Utah, continued to outperform the national economy during the first half of 1993.  Utah led the nation in nonfarm employment gains with a 4.6 percent increase from last year, while Idaho's 2.6 percent advance was within the top 10 performing states.  Washington posted an annual gain of 30,000 new jobs despite the loss of nearly 8,000 aerospace jobs, and Oregon posted a respectable 1.5 percent gain in jobs despite continued cutbacks in the important forest products sector.  Favorable demographic trends are reflected in growth in the housing and construction markets.  Residential construction activity accelerated in Utah as the number of permits for new housing units issued during the first two months of the current quarter increased 32 percent.  Boise's construction industry is expecting a record year in 1993, following a record-setting 1992, as construction permits are up 20 percent from a year ago.  After several years of drought, full reservoirs and normal stream flows are providing adequate water for the important southern Idaho agricultural region and for summer recreational activities.
    Taxable equivalent net interest income was $79.1 million in the second quarter of 1993, up 36 percent from the same period last year. Earning assets averaged $6.6 billion during the current quarter, an increase of 38 percent from the same quarter in 1992.  Loans registered a 39 percent increase over the same period.  The increase in earning assets and loans includes the September 1992 acquisition of Security Pacific branches in Washington.  Excluding the effect of the acquisition, loans increased 15 percent in the second quarter of 1993 compared to the same quarter in 1992.  Average loans increased 7 percent from the first quarter of 1993 to the current quarter, and net interest margin increased 3 basis points.  Taxable equivalent net interest income for the first six months of 1993 totaled $153.1 million, an increase of 34 percent from the same period in 1992.
    The provision for credit losses was $3.4 million in the second quarter of 1993, a 19 percent decline from the second quarter of 1992. Net charge-offs totaled $2.7 million or 0.22 percent of average loans in the current quarter, down from 0.29 percent of average loans in the corresponding quarter last year.  Nonperforming assets totaled $32.2 million or 0.44 percent of assets at June 30, 1993, down 29 percent compared to $45.1 million or 0.83 percent of assets a year ago.  The allowance for credit losses was $71.8 million at June 30, 1993, and represented 261 percent of nonperforming loans compared to 160 percent a year ago.  The credit loss provision for the first half of 1993 was $6.5 million, a 28 percent decline from the prior year.
    Noninterest income totaled $25.4 million in the second quarter of 1993, an increase of 26 percent from the $20.2 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 increases in the number 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 six months of 1993 totaled $48.5 million and exceeded the prior year by 22 percent.
    Noninterest expense totaled $66.1 million for the second quarter of 1993, up 35 percent from the $49.0 million reported for the corresponding quarter of 1992.  The increase was attributable to the Washington acquisition.  West One's efficiency ratio improved to 63.24 percent in the second quarter of 1993 from 67.66 percent in the fourth quarter of 1992, the first full quarter reflecting the Washington acquisition.
    Shareholders' equity was $529.6 million at June 30, 1993, a 17 percent increase from a year ago and represented 7.16 percent of assets at June 30, 1993.  Capital adequacy levels established by the Federal Reserve Board require minimum leverage, Tier I 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 I and total capital ratios total at least 5 percent, 6 percent and 10 percent, respectively.  West One's leverage, Tier I and total capital ratios, based on regulatory guidelines, were 6.79 percent, 8.56 percent and 10.98 percent, respectively at June 30, 1993.
    West One Bancorp is a regional bank holding company headquartered in Boise, Idaho, with assets of $7.4 billion and more than 200 offices and 4,500 employees in Idaho, Washington, Oregon and Utah.
                       WEST ONE BANCORP
                Consolidated Financial Highlights
                      Summary of Results
          (Dollars in thousands, except per-share data)
                                      Quarter              Year
      Ended June 30:               1993      1992      1993      1992
    Net income                  $20,814   $15,264   $38,979   $29,477
    Primary earnings per share     1.26      1.06      2.37      2.06
    Fully diluted earnings
      per share                    1.20      1.00      2.25      1.95
    Cash dividends declared
      per share                    0.31      0.26      0.31      0.52
    Cash dividends paid
      per share                    0.31      0.26      0.57      0.50
    Taxable equivalent net
      interest income            79,132    58,207   153,076   114,464
                        Statistical Data
                                        Quarter             Year
      Ended June 30:                 1993      1992      1993    1992
      Rate of return on:
    Average total assets (pct)       1.15      1.16      1.11    1.12
    Average common
      shareholders' equity          16.16     15.79     15.49   15.60
    Net interest margin (taxable
      equivalent basis)              4.81      4.88      4.79    4.77
    Net charge-offs as a
      percent of average
     loans outstanding               0.22      0.29      0.14    0.35
    Shareholders' equity to
      assets (average)               7.10      7.36      7.14    7.16
    Allowance for credit losses
      to loans (average)             1.50      1.59      1.52    1.58
    Weighted average common
      shares outstanding     16,257,425 14,218,788 16,222,483 14,130,645
    Common stock equivalents -
      primary                     228,204   211,232   242,970 197,522
    Common stock equivalents -
      fully diluted               230,825   212,769   244,292 215,649
    Other dilutive securities  1,343,725 1,343,725 1,343,725 1,343,725
      June 30:                                1993      1992
    Book value per common share              $32.40    $28.98
    Closing stock price per common share     49 3/8    41 1/4
    Period-end number of common
      shares outstanding                16,345,224 15,579,733
                  Consolidated Financial Highlights
              Selected Average Balance Sheet Components
                       (Dollars in thousands)
                                 Quarter              Six Months
      Ended June 30:         1993       1992       1993       1992
    Loans                 $4,806,992 $3,467,039 $4,645,987 $3,435,064
    Earning assets         6,600,903  4,799,331  6,438,384  4,829,231
    Total assets           7,273,826  5,279,320  7,108,719  5,309,322
    Deposits               5,639,706  4,011,322  5,588,917  4,025,993
    Shareholders' equity     516,540    388,771    507,388    380,100
                  Selected Balance Sheet Components
      June 30:                          1993        1992
    Loans                            $5,010,017  $3,532,432
    Allowance for credit losses          71,822      56,075
    Total assets                      7,391,837   5,459,086
    Deposits                          5,675,673   4,016,960
    Shareholders' equity                529,601     451,435
                        Loans Outstanding
      June 30:                          1993       1992
      Loans:
    Commercial                      $1,631,039  $1,058,898
    Agricultural                       382,683     331,061
    Real estate                      1,886,201   1,226,104
    Consumer                           956,726     782,260
    Leases                             153,368     134,109
      Total loans                   $5,010,017  $3,532,432
                 West One Bancorp and Subsidiaries
                    Consolidated Balance Sheets
        (Unaudited; dollars in thousands except per share)
      June 30:                                        1993       1992
      Assets:
    Cash and due from banks                       $465,140   $329,586
    Due from banks - interest bearing                1,480    150,425
    Federal funds sold, securities purchased
      under agreements to resell and other           2,551     10,862
      Securities:
      Investment:
    United States Treasury and
      Government agencies                          490,004    481,722
    State and municipal bonds                      473,511    211,812
    Mortgage-backed securities                     306,856    327,193
    Other                                          253,372    250,417
      Held for sale                                159,009
      Total  securities                          1,682,752  1,271,144
      Loans:
    Commercial                                   1,631,039  1,058,898
    Agricultural                                   382,683    331,061
    Real estate                                  1,886,201  1,226,104
    Consumer                                       956,726    782,260
    Leases                                         153,368    134,109
      Total loans                                5,010,017  3,532,432
    Allowance for credit losses                   (71,822)   (56,075)
      Net loans                                  4,938,195  3,476,357
    Premises and equipment                         125,137     92,682
    Interest receivable                             49,456     41,275
    Other assets                                   127,126     86,755
      Total assets                              $7,391,837 $5,459,086
      Liabilities
      Deposits:
    Noninterest bearing                          1,088,297    744,229
    Interest bearing demand                        676,912    451,243
    Regular and money market savings             1,845,385  1,226,171
    Time certificates under $100,000             1,583,393  1,268,141
    Time certificates $100,000 and over            481,686    327,176
      Total deposits                             5,675,673  4,016,960
    Federal funds purchased and securities
      sold under agreements to repurchase          553,412    497,066
    Other short-term borrowings                    428,566    211,676
    Long-term debt                                 119,714    118,708
    Other liabilities                               84,871    163,241
      Total liabilities                          6,862,236  5,007,651
    Shareholders' equity
    Common stock, $1.00 par value:
      Authorized 75,000,000 shares; issued
      and outstanding 16,345,224 and
      15,579,733 shares, respectively               16,345     15,580
    Capital surplus                                254,401    234,888
    Retained earnings                              258,855    200,967
    Total shareholders' equity                     529,601    451,435
    Total liabilities and
      shareholders' equity                      $7,391,837 $5,459,086
                     Consolidated Statements of Income
         (Unaudited; dollars in thousands, except per share)
                                         For the      For the six
                                     quarter ended    months ended
      June 30:                        1993    1992     1993     1992
      Interest income
    Loans                          $98,544 $79,356 $192,409 $158,895
    Short-term investments             286   2,471    1,149    5,666
      Interest and dividends
      on securities:
    United States Treasury and
      Government agencies            8,172   8,205   16,943   17,311
    State and municipal bonds        6,202   3,379   11,631    6,735
    Mortgage-backed securities       6,016   4,067   12,229    8,964
    Other                            4,603   3,352    8,882    6,640
    Total interest income          123,823 100,830  243,243  204,211
      Interest expense
    Deposits                        40,454  36,785   82,600   77,300
    Federal funds purchased
      and securities sold under
      agreements to repurchase       4,900   5,662    8,805   11,641
    Other short-term borrowings      1,610     778    2,575    2,087
    Long-term debt                   2,054   2,474    4,573    4,896
    Total interest expense          49,018  45,699   98,553   95,924
    Net interest income             74,805  55,131  144,690  108,287
    Provision for credit losses      3,414   4,238    6,506    9,084
    Net interest income after
      provision for credit losses   71,391  50,893  138,184   99,203
      Noninterest income:
    Trust fees and commissions       3,507   3,029    6,744    5,762
    Service charges on
      deposit accounts               9,196   7,076   17,620   14,184
    Other service charges,
      fees and commissions          10,303   7,264   19,508   14,115
    Other                            2,320   1,963    4,617    4,091
    Securities gains                    36     857       28    1,555
    Total noninterest income        25,362  20,189   48,517   39,707
      Noninterest expense:
    Employee compensation
      and benefits                  30,946  23,126   62,324   46,774
    Net occupancy                    4,670   3,021    9,673    5,991
    Equipment                        5,452   3,799   10,423    7,271
    Supplies and services            8,775   7,053   16,823   13,319
    Marketing                        2,576   2,402    4,625    3,925
    Insurance and
      miscellaneous taxes            4,345   2,905    8,441    5,980
    Other                            9,299   6,708   17,855   12,935
    Total noninterest expense       66,063  49,014  130,164   96,195
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Publication:PR Newswire
Date:Jul 15, 1993
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