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WEST ONE EARNINGS UP 28 PERCENT FOR RECORD SECOND QUARTER

 WEST ONE EARNINGS UP 28 PERCENT FOR RECORD SECOND QUARTER
 BOISE, Idaho, July 16 /PRNewswire/ -- West One Bancorp (NASDAQ-NMS: WEST) today reported earnings of $15.3 million for the second quarter of 1992, a 28-percent increase compared to the $11.9 million earned in the second quarter of 1991. Fully diluted earnings per share were $1.00 for the second quarter of 1992, compared to 84 cents in the same period last year. The corporation achieved a return on average assets of 1.16 percent and a return on average shareholders' equity of 15.79 percent in the second quarter of 1992. The improvement in earnings was attributable to higher net interest income and noninterest income, and a lower provision for credit losses.
 Net income for the six months ended June 30, 1992, was $29.5 million or 28-percent higher than the $23.0 million earned during the first six months of 1991. On a fully diluted basis, year- to-date earnings per share amounted to $1.95 in 1992 compared to $1.64 in 1991.
 On June 22, 1992, West One Bancorp issued 1.5 million shares of common stock at a price of $42 per share through a public offering. The net proceeds of the offering of approximately $61 million enhance West One's capital position in anticipation of its recently announced branch acquisitions in the states of Washington and Oregon.
 "Population and employment growth fueled economic conditions in our market area of Idaho, Oregon, Utah and Washington during the second quarter of 1992," said Daniel R. Nelson, chairman and chief executive officer of West One Bancorp. "The opportunities provided by an expanding economy, combined with steady improvement in net interest margin, contributed to the outstanding performance achieved in the second quarter."
 Economic conditions improved in the corporation's market area during the second quarter of 1992. Idaho's nonfarm employment continued to grow at the fastest rate in the nation, while Utah's growth was fifth, Oregon's 11th and Washington's 15th among the 50 states. Favorable economic conditions and net population immigration to the region sustained strength in the housing industry. Gains in residential housing construction for the first five months of 1992 ranged from 13 percent in Oregon to 51 percent in Idaho. Drought conditions in Idaho could cause weakness in the farm economy later this year following record spring harvests. Environmental limitations on timber harvest have slowed Oregon's growth rate slightly and in Washington, further declines in aerospace employment are anticipated for the remainder of the year. Despite softening in particular economic sectors, strength in tourism, high-tech manufacturing, international trade and other sectors of the regional economy is expected to result in further growth and net economic expansion during the remainder of the year.
 Taxable equivalent net interest income was $58.2 million in the second quarter of 1992, up 12 percent from $52.0 million in the same period last year. The increase was attributable to a higher net interest margin and earning asset growth. The corporation's net interest margin was 4.88 percent for the second quarter of 1992, up 36 basis points from 4.52 percent in the second quarter of 1991. A shift in the funding mix from certificates of deposits to noninterest bearing demand deposits and lower cost interest bearing demand and savings deposits contributed to the improvement in net interest margin. The shift in funds is attributable to the propensity of depositors to maintain liquid investments during periods of low interest rates. During the second quarter of 1992, earning assets averaged $4.8 billion, a 4-percent increase from the comparable period last year.
 The provision for credit losses was $4.2 million in the second quarter of 1992, a 5-percent decline from $4.5 million in the second quarter of 1991. Net charge-offs totaled $2.5 million in the second quarter of 1992, down 27 percent from $3.5 million in the corresponding quarter last year. Nonperforming assets were $45.1 million at June 30, 1992, (0.83 percent of assets compared to $49.5 million and 0.94 percent a year ago), a decline of 10 percent from March 31, 1992, and 16 percent from the $54.0 million reported at Dec. 31, 1991. The improvement from a year ago was due primarily to a reduction in nonaccrual real estate loans at the Utah subsidiary. The allowance for credit losses was $56.1 million at June 30, 1992, and represented 1.59 percent of loans, up from 1.49 percent last year. The allowance for credit losses represented 160 percent of nonperforming loans at June 30, 1992, compared to 127 percent a year ago.
 Noninterest income in the second quarter of 1992 totaled $20.2 million, an increase of 18 percent from $17.1 million recorded in the second quarter of 1991. Service charges on deposit accounts increased due to account growth and increased activity levels. The region's strong housing market contributed to the increase in other income due to the sale of real estate loan production and servicing. The sale of investment securities, primarily mortgage-backed securities, to slightly shorten the maturity of the investment portfolio, resulted in net securities gains of $0.9 million in the second quarter of 1992. Noninterest income for the first six months of 1992 totaled $39.7 million and exceeded the prior year by 12 percent.
 Noninterest expense increased 9.5 percent to $49.0 million in the second quarter of 1992 and 9 percent to $96.2 million in the first half of 1992 compared to the same periods in 1991.
 Salary expense increased due to the opening of three new branches in Idaho, staffing for the Washington expansion, incentive pay and merit increases. Higher deposit insurance premiums assessed by the FDIC also contributed to the increase.
 Shareholders' equity was $451.4 million at June 30, 1992, a 28-percent increase from $352.2 million a year ago. Shareholders' equity represented 8.27 percent of assets at June 30, 1992, compared to 6.71 percent at June 30, 1991. Capital adequacy levels established by the Federal Reserve Board for bank holding companies require minimum Tier 1 and total capital ratios of 4.0 percent and 8.0 percent, respectively, by Dec. 31, 1992. The corporation's Tier 1 and total capital ratios, measured by the rules effective at year-end 1992, were 10.57 percent and 13.66 percent, respectively, at June 30, 1992. The corporation's leverage ratio, using Tier 1 capital and calculated according to Federal regulations, was 8.29 percent at the end of the second quarter of 1992. Tangible equity to assets ratio was 7.71 percent at June 30, 1992 compared to 6.13 percent a year ago.
 WEST ONE BANCORP AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited; dollars in thousands)
 June 30: 1992 1991
 Assets
 Cash and due from banks $ 329,586 $ 338,069
 Due from banks - interest bearing 150,425 174,925
 Federal funds sold, securities purchased
 under agreements to resell and other 10,862 74,846
 Investment securities:
 United States Treasury and other
 Government agencies 481,722 530,258
 State and municipal bonds 211,812 215,617
 Mortgage-backed securities 327,193 213,880
 Other 250,417 130,296
 Total investment securities 1,271,144 1,090,051
 Loans:
 Commercial 1,058,898 1,000,270
 Agricultural 331,061 316,325
 Real estate 1,226,104 1,154,910
 Consumer 782,260 780,704
 Leases 134,109 121,158
 Total loans 3,532,432 3,373,367
 Allowance for credit losses (56,075) (50,394)
 Net loans 3,476,357 3,322,973
 Premises and equipment 92,682 89,338
 Interest receivable 41,275 51,770
 Other assets 86,755 104,399
 Total assets $5,459,086 $5,246,371
 Liabilities
 Deposits:
 Noninterest bearing $ 744,229 $ 681,483
 Interest bearing demand 451,243 394,416
 Regular and money market savings 1,226,171 976,923
 Time certificates under $100,000 1,268,141 1,457,910
 Time certificates $100,000 and over 327,176 414,242
 Total deposits 4,016,960 3,924,974
 Federal funds purchased and securities
 sold under agreements to repurchase 497,066 601,036
 Other short-term borrowings 211,676 217,214
 Long-term debt 118,708 59,075
 Other liabilities 163,241 91,892
 Total liabilities 5,007,651 4,894,191
 Shareholders' equity
 Common stock, $1.00 par value:
 Authorized 36,000,000 shares; issued
 and outstanding 15,579,733 and
 13,921,239 shares, respectively 15,580 13,921
 Capital surplus 234,888 170,346
 Retained earnings 200,967 167,913
 Total shareholders' equity 451,435 352,180
 Total liabilities and shareholders' equity $5,459,086 $5,246,371
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited; dollars in thousands, except per-share data)
 Quarter Six Months
 Ended June 30: 1992 1991 1992 1991
 Interest income
 Loans $79,356 $86,544 $158,895 $173,026
 Short-term investments 2,471 3,397 5,666 7,497
 Interest and dividends
 on investments:
 United States Treasury and other
 Government agencies 8,205 11,081 17,311 21,324
 State and municipal bonds 3,379 3,194 6,735 6,305
 Other 7,419 7,291 15,604 14,601
 Total interest income 100,830 111,507 204,211 222,753
 Interest expense
 Deposits 36,785 50,427 77,300 102,419
 Federal funds purchased
 and securities sold under
 agreements to repurchase 5,662 8,623 11,641 16,835
 Other short-term borrowings 778 1,938 2,087 4,489
 Long-term debt 2,474 1,469 4,896 3,179
 Total interest expense 45,699 62,457 95,924 126,922
 Net interest income 55,131 49,050 108,287 95,831
 Provision for credit losses 4,238 4,452 9,084 10,765
 Net interest income after
 provision for credit losses 50,893 44,598 99,203 85,066
 Noninterest income
 Trust fees and commissions 3,029 2,840 5,762 5,401
 Service charges on
 deposit accounts 7,076 6,197 14,184 12,052
 Other service charges,
 fees and commissions 7,264 6,306 14,115 12,287
 Other income 1,963 1,599 4,091 5,593
 Securities gains 857 198 1,555 223
 Total noninterest income 20,189 17,140 39,707 35,556
 Noninterest expense
 Employee compensation
 and benefits 23,126 21,953 46,774 44,119
 Net occupancy 3,021 2,794 5,991 5,691
 Equipment 3,799 3,242 7,271 6,246
 Supplies and services 7,053 6,815 13,319 12,707
 Marketing 2,402 1,582 3,925 3,497
 Insurance 2,905 2,504 5,980 5,106
 Other operating 6,708 5,862 12,935 10,744
 Total noninterest expense 49,014 44,752 96,195 88,110
 Income before taxes 22,068 16,986 42,715 32,512
 Provision for income taxes 6,804 5,104 13,238 9,512
 Net income $15,264 $11,882 $29,477 $23,000
 Primary earnings per share $ 1.06 $ 0.84 $ 2.06 $ 1.64
 Fully diluted earnings per share 1.00 0.84 1.95 1.64
 Dividends declared per share 0.26 0.24 0.52 0.48
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SUMMARY OF RESULTS
 (Dollars in thousands, except per share)
 Quarter Six months
 Ended June 30: 1992 1991 1992 1991
 Net income $15,264 $11,882 $29,477 $23,000
 Primary earnings per share 1.06 0.84 2.06 1.64
 Fully diluted earnings
 per share 1.00 0.84 1.95 1.64
 Cash dividends declared
 per share 0.26 0.24 0.52 0.48
 Taxable equivalent net
 interest income 58,207 52,006 114,464 101,675
 STATISTICAL DATA
 Quarter Six months
 Ended June 30: 1992 1991 1992 1991
 Rate of return on:
 Average total assets 1.16 pct. 0.94 pct. 1.12 pct. 0.92 pct.
 Average common
 shareholders' equity 15.79 13.80 15.60 13.60
 Net interest margin (taxable
 equivalent basis) 4.88 4.52 4.77 4.50
 Net charge-offs as a
 percent of average
 loans outstanding 0.29 0.42 0.35 0.50
 Shareholders' equity to
 assets (average) 7.36 6.79 7.16 6.78
 Allowance for credit losses
 to loans (average) 1.59 1.50 1.58 1.49
 Weighted average common shares
 outstanding 14,218,788 13,906,475 14,130,645 13,865,788
 Common stock
 equivalents-primary 211,232 167,623 197,522 152,131
 Common stock equivalents-
 -fully diluted 212,769 167,623 215,649 158,759
 Other dilutive securities (convertible
 debentures) 1,343,725 -- 1,343,725 --
 June 30: 1992 1991
 Book value per common share $28.98 $25.30
 Closing stock price per common share 41 1/4 30 1/4
 Period-end number
 of common shares outstanding 15,579,733 13,921,239
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 SELECTED AVERAGE BALANCE SHEET COMPONENTS
 (Dollars in thousands)
 Quarter Six months
 Ended June 30: 1992 1991 1992 1991
 Loans $3,467,039 $3,303,968 $3,435,064 $3,276,286
 Earning assets 4,799,331 4,619,921 4,829,231 4,558,398
 Total assets 5,279,320 5,086,935 5,309,322 5,026,267
 Deposits 4,011,322 3,877,467 4,025,993 3,844,015
 Shareholders' equity 388,771 345,256 380,100 340,921
 SELECTED BALANCE SHEET COMPONENTS
 June 30: 1992 1991
 Loans $3,532,432 $3,373,367
 Allowance for credit losses 56,075 50,394
 Total assets 5,459,086 5,246,371
 Deposits 4,016,960 3,924,974
 Shareholders' equity 451,435 352,180
 LOANS OUTSTANDING
 June 30: 1992 1991
 Loans:
 Commercial $1,058,898 $1,000,270
 Agricultural 331,061 316,325
 Real Estate 1,226,104 1,154,910
 Consumer 782,260 780,704
 Leases 134,109 121,158
 Total loans $3,532,432 $3,373,367
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 ALLOWANCE FOR CREDIT LOSSES AND CREDIT RISK DATA
 (Dollars in thousands)
 Allowance for Credit Losses 1992 1991
 Balance at April 1 $ 54,356 $ 49,413
 Total charge-offs 4,971 5,435
 Total recoveries 2,452 1,964
 Net charge-offs 2,519 3,471
 Provision for credit losses 4,238 4,452
 Balance at June 30 $ 56,075 $ 50,394
 Average loans outstanding
 during the quarter $3,467,039 $3,303,968
 Net charge-offs as a percent of
 average loans (annualized) 0.29 pct. 0.42 pct.
 Quarter-end allowance for
 credit losses as a percent
 of quarter-end loans 1.59 1.49
 Credit Risk Assets June 30, June 30, Dec. 31,
 1992 1991 1991
 Nonperforming Assets:
 Nonaccrual loans $34,708 $38,997 $41,862
 Restructured loans 332 572 539
 Other real estate owned 10,039 9,934 11,570
 Total $45,079 $49,503 $53,971
 Allowance for credit losses as a
 percent of nonperforming loans 160 pct. 127 pct. 125 pct.
 Nonperforming assets to loans
 and other real estate owned 1.27 1.46 1.54
 -0- 7/16/92
 /CONTACT: Linda Blount-Strauss of West One Bancorp, 208-383-7474/
 (WEST) CO: West One Bancorp ST: Idaho IN: FIN SU: ERN


SC -- SE003 -- 9845 07/16/92 08:08 EDT
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