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WEST ONE BANCORP RELEASES FOURTH-QUARTER EARNINGS

 WEST ONE BANCORP RELEASES FOURTH-QUARTER EARNINGS
 BOISE, Idaho, Jan. 16 /PRNewswire/ -- West One Bancorp


(NASDAQ-NMS: WEST) reported net income of $12.1 million for the fourth quarter of 1991, a 2 percent increase from the $11.8 million earned in the fourth quarter of 1990. Net income for the year ended Dec. 31, 1991, was $41.2 million as compared to $44.3 million earned in 1990.
 Fully diluted earnings per share were 82 cents in the fourth quarter of 1991 compared to 85 cents for the same quarter a year ago. For the year ended Dec. 31, 1991, fully diluted earnings per share were $2.87, a decline from the $3.19 earned in the prior year. Historic financial data has been restated to include Washington Federal Savings Bank acquired on Dec. 2, 1991, and accounted for as a pooling of interests.
 Daniel R. Nelson, chairman and chief executive officer, said fourth-quarter earnings reflected continued economic growth in West One's market area of Idaho, Oregon, Utah and Washington. The 7 percent decline in earnings for 1991 compared to 1990 was expected because of the provision for credit losses reported in the third quarter of 1991 for West One Bank, Utah, according to Nelson.
 Despite a sluggish national economy, residential construction activity accelerated in West One's market area and annual gains in nonfarm employment placed Idaho, Oregon and Utah within the top 10 performers in the nation. Washington's economic outlook improved as employment levels increased in the fourth quarter of 1991 following the low levels registered in the prior quarter.
 Taxable equivalent net interest income was $55.3 million for the fourth quarter of 1991, an increase of $6.0 million or 12 percent over the same period in 1990. For the year ended Dec. 31, 1991, taxable equivalent net interest income increased $22.7 million or 12 percent. The increases were attributable to earning asset growth and higher net interest margins. Average earning assets increased 11 percent to $4.9 billion in the fourth quarter of 1991 as compared to the same quarter last year and increased 10 percent for the year. Earning asset growth was fueled by a steep yield curve and favorable business conditions in West One's market area. Net interest margin was 4.48 percent for the fourth quarter and for the year 1991, an increase of 4 and 10 basis points, respectively, from 1990.
 The provision for credit losses was $4.1 million in the fourth quarter of 1991, down $.8 million or 16 percent from the fourth quarter of 1990. Net charge-offs in the fourth quarter of 1991 declined 25 percent to $4.4 million from the fourth quarter of 1990. For the year ended Dec. 31, 1991, the provision for credit losses was $29.7 million, up from $11.7 million in 1990. The increase reflected the $11.8 million provision previously reported in the third quarter for West One Bank, Utah. Net charge-offs totaled $24.5 million in 1991 compared to $13.6 million in the prior year.
 The corporation added $5.2 million to its allowance for credit losses in 1991 to strengthen its reserve for potential loan losses. At Dec. 31, 1991, the allowance for credit losses totaled $53.0 million and represented 1.52 percent of loans compared to 1.45 percent last year. Loans past due 90 days or more totaled $2.8 million at Dec. 31, 1991, a 32 percent decline from the balance at Dec. 31, 1990.
 Nonperforming assets consist of nonaccrual loans, other real estate and property owned and restructured loans. At Dec. 31, 1991, nonperforming assets totaled $54.0 million or 1.54 percent of loans and other real estate and property owned compared to $39.7 million or 1.20 percent a year ago. The increase was due primarily to commercial loans in Idaho and Utah. At Sept. 30, 1991, nonperforming assets were $54.6 million and represented 1.59 percent of loans and other real estate and property owned. At Dec. 31, 1991, the allowance for credit losses represented 125 percent of nonperforming loans.
 Noninterest income increased $1.2 million or 7 percent to $18.3 million in the fourth quarter of 1991 compared to the same quarter last year. One half of the increase represented gains on the sale of short-term U.S. Treasury securities and mortgage-backed securities with excessive prepayment risk in a low interest rate environment. Service charges on deposit accounts, real estate loan servicing fees and trust fees also contributed to the increase. For the year ended Dec. 31, 1991, noninterest income was $72.7 million, a $10.7 million or 17 percent increase compared to 1990. The increase included a gain of $1.8 million in the first quarter of 1991 as the corporation reacquired $13 million of convertible subordinated capital notes due 1997. Excluding this gain and securities gains, recurring noninterest income increased 11 percent in 1991 compared to last year. Noninterest income as a percent of average assets increased to 1.41 percent in 1991 from 1.31 percent in 1990 and 1.20 percent in 1989.
 Noninterest expense increased $7.0 million or 17 percent in the fourth quarter of 1991 and $20.1 million or 12 percent for the year 1991 compared to the same periods in 1990. The increases were primarily attributable to higher deposit insurance assessments, expenses associated with a successful loan promotion, health and welfare plan expenses and nonrecurring costs associated with the acquisition of Washington Federal Savings Bank.
 West One's efficiency ratio, noninterest expense as a percent of net interest income plus noninterest income, improved to 64.8 percent in 1991 from 65.5 percent in 1990 and 70.0 percent in 1989.
 West One strengthened its capital position as compared to last year through a $36.1 million or 12 percent increase in average shareholders' equity. Average shareholders' equity as a percent of average assets was 6.75 percent in 1991 compared to 6.61 percent in 1990.
 Assets totaled $5.4 billion at Dec. 31, 1991, a 10 percent increase from a
year ago. Total loans were $3.5 billion at year end


1991, a 6 percent increase from year end 1990. Deposits totaled $4.0 billion at Dec. 31, 1991, up 5 percent from a year ago.
 West One Bancorp is a regional bank holding company with headquarters in Boise, Idaho, and more than 155 offices and 3,600 employees in Idaho, Oregon, Utah and Washington.
 WEST ONE BANCORP AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited; dollars in thousands)
 Dec 31: 1991 1990
 Assets:
 Cash and due from banks $ 315,573 $ 331,455
 Due from banks - interest bearing 174,101 96,328
 Federal funds sold, securities purchased
 under agreements to resell and other 30,434 11,546
 Investment securities:
 United States Treasury and other
 government agencies 538,351 511,284
 State and municipal bonds 209,548 192,856
 Other 471,972 326,591
 Total investment securities 1,219,871 1,030,731
 Loans:
 Commercial 1,062,411 990,778
 Agricultural 317,480 301,955
 Real estate 1,179,101 1,083,381
 Consumer 797,076 797,877
 Leases 141,383 118,226
 Total loans 3,497,451 3,292,217
 Allowance for credit losses (53,048) (47,823)
 Net loans 3,444,403 3,244,394
 Premises and equipment 90,491 91,590
 Interest receivable 47,778 51,663
 Other assets 94,548 89,282
 Total assets $ 5,417,199 $ 4,946,989
 Liabilities
 Deposits:
 Noninterest bearing $ 669,037 $ 696,131
 Interest bearing demand 438,294 396,182
 Regular and money market savings 1,129,957 896,315
 Time certificates under $100,000 1,437,245 1,459,926
 Time certificates $100,000 and over 369,875 412,327
 Total deposits 4,044,408 3,860,881
 Federal funds purchased and securities
 sold under agreements to repurchase 618,861 472,281
 Other short-term borrowings 206,284 148,991
 Long-term notes payable 111,881 72,614
 Other liabilities 68,717 59,530
 Total liabilities 5,050,151 4,614,297
 Shareholders' equity
 Common stock, $1.00 par value:
 Authorized 36,000,000 shares;
 issued and outstanding 14,031,202
 and 13,783,836 shares, respectively 14,031 13,784
 Capital surplus 173,823 167,574
 Retained earnings 179,194 151,334
 Total shareholders' equity 367,048 332,692
 Total liabilities
 and shareholders' equity $ 5,417,199 $ 4,946,989
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Dollars in thousands except per share)
 Quarter Year
 Ended Dec. 31: 1991 1990 1991 1990
 Interest income
 Loans $ 86,455 $ 91,251 $ 347,563 $ 349,429
 Short-term investments 3,437 3,106 14,014 13,951
 Interest and dividends
 on investments:
 U.S. States Treasury and other
 government agencies 10,397 10,372 41,946 42,353
 State and municipal bonds 3,435 3,062 13,285 12,329
 Other 8,516 6,818 30,744 25,641
 Total interest income 112,240 114,609 447,552 443,703
 Interest expense
 Deposits 47,801 54,321 200,530 213,181
 Federal funds purchased and securities
 sold under agreements
 to repurchase 8,048 10,215 33,573 40,761
 Other short-term
 borrowings 1,818 2,072 7,901 7,409
 Long-term notes payable 2,422 1,649 7,976 6,663
 Total interest expense 60,089 68,257 249,980 268,014
 Net interest income 52,151 46,352 197,572 175,689
 Provision for credit
 losses 4,135 4,912 29,680 11,668
 Net interest income after
 provision for
 credit losses 48,016 41,440 167,892 164,021
 Noninterest income
 Trust fees and commissions 2,868 2,619 10,902 10,032
 Service charges
 on deposit accounts 6,759 6,116 25,538 21,932
 Other service charges,
 fees and commissions 6,853 6,974 25,717 24,218
 Other income 1,280 1,396 8,391 5,749
 Securities gains 549 53 2,156 24
 Total noninterest income 18,309 17,158 72,704 61,955
 Noninterest expense
 Employee compensation
 and benefits 23,613 20,981 90,485 82,211
 Net occupancy expense 2,992 2,819 11,781 10,941
 Equipment expense 3,669 4,166 13,182 13,391
 Supplies and services 7,778 5,339 27,510 22,177
 Marketing 1,496 1,435 6,508 6,949
 Other operating expense 9,262 7,093 33,670 27,367
 Total noninterest expense 48,810 41,833 183,136 163,036
 Income before taxes 17,515 16,765 57,460 62,940
 Provision for income taxes 5,458 4,960 16,261 18,673
 Net income $ 12,057 $ 11,805 $ 41,199 $ 44,267
 Primary earnings
 per share $ 0.85 $ 0.85 $ 2.93 $ 3.20
 Fully diluted earnings
 per share 0.82 0.85 2.87 3.19
 Dividends declared
 per share 0.24 0.22 0.96 0.88
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SUMMARY OF RESULTS
 (Dollars in thousands, except per share data)
 Ended Dec 31: Quarter Year
 1991 1990 1991 1990
 Net income $12,057 $11,805 $41,199 $44,267
 Primary earnings
 per share 0.85 0.85 2.93 3.20
 Fully diluted earnings
 per share 0.82 0.85 2.87 3.19
 Cash dividends declared
 per share 0.24 0.22 0.96 0.88
 Taxable equivalent net
 interest income 55,269 49,222 209,724 187,036
 STATISTICAL DATA
 Ended Dec. 31: Quarter Year
 1991 1990 1991 1990
 Rate of return on:
 Average total assets 0.89 0.96 0.80 0.94
 Average common shareholders'
 equity 13.33 14.37 11.82 14.16
 Net interest margin (taxable
 equivalent basis) 4.48 4.44 4.48 4.38
 Net charge-offs as a percent of
 average loans outstanding 0.51 0.72 0.73 0.44
 Shareholders' equity
 to assets (average) 6.65 6.69 6.75 6.61
 Allowance for credit losses
 to loans (average) 1.56 1.50 1.52 1.57
 Dec. 31: 1991 1990
 Book value per common share $ 26.16 $ 24.14
 Closing stock price
 per common share 31-1/2 24
 Period-end number of common
 shares outstanding 14,031,202 13,783,836
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SELECTED AVERAGE BALANCE SHEET COMPONENTS
 (Dollars in thousands)
 Quarter Year
 Ended Dec. 31 1991 1990 1991 1990
 Loans $3,435,873 $3,251,199 $3,349,190 $3,110,738
 Earning assets 4,891,168 4,393,401 4,686,354 4,266,191
 Total assets 5,395,372 4,873,266 5,165,354 4,731,919
 Deposits 4,039,049 3,759,313 3,917,298 3,663,402
 Shareholders' equity 358,826 325,846 348,684 312,599
 SELECTED BALANCE SHEET COMPONENTS
 Dec. 31: 1991 1990
 Loans $3,497,451 $3,292,217
 Allowance for credit losses 53,048 47,823
 Total assets 5,417,199 4,946,989
 Deposits 4,044,408 3,860,881
 Shareholders' equity 367,048 332,692
 LOANS OUTSTANDING
 Dec. 31: 1991 1990
 Loans:
 Commercial $1,062,411 $ 990,778
 Agricultural 317,480 301,955
 Real estate 1,179,101 1,083,381
 Consumer 797,076 797,877
 Leases 141,383 118,226
 Total loans $3,497,451 $3,292,217
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 (Dollars in thousands)
 ALLOWANCE FOR CREDIT LOSSES 1991 1990
 Balance at Oct. 1 $ 53,361 $ 48,818
 Total charge-offs 6,464 7,846
 Total recoveries 2,016 1,939
 Net charge-offs 4,448 5,907
 Provision for credit losses 4,135 4,912
 Balance at Dec. 31 $ 53,048 $ 47,823
 Average loans outstanding
 during the quarter $3,435,873 $3,251,199
 Net charge-offs as a percent of
 average loans (annualized) (percent) 0.51 0.72
 Quarter-end allowance for credit losses
 as a percent of quarter-end loans 1.52 1.45
 CREDIT RISK ASSETS Dec 31, Sept 30, Dec 31,
 1991 1991 1990
 Nonperforming Assets:
 Nonaccrual loans $ 41,862 $ 43,522 $ 31,423
 Restructured loans 539 549 404
 Other real estate owned 11,570 10,512 7,872
 Total $ 53,971 $ 54,583 $ 39,699
 Allowance for credit losses
 as a percent of
 nonperforming loans 125 121 150
 Nonperforming assets to loans
 and other real estate owned 1.54 1.59 1.20
 Accruing loans past due
 90 days or more $ 2,825 $ 1,488 $ 4,139
 -0- 1/16/92
 /CONTACT: Linda Blount-Strauss of West One Bancorp, 208-383-7474/
 (WEST) CO: West One Bancorp ST: Idaho IN: FIN SU: ERN


LM -- SE003 -- 0330 01/16/92 08:07 EST
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