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WESTCO BANCORP, INC. ISSUES THIRD QUARTER EARNINGS REPORT

 WESTCHESTER, Ill., Oct. 12 /PRNewswire/ -- Westco Bancorp, Inc. (NASDAQ: WCBI), the parent holding company of 1st Federal Savings of Westchester, today announced that net income for the nine months ended Sept. 30, 1993, totaled $2.948 million compared to $1.875 million for the comparable period in 1992, a 57 percent increase. Net income for the three months ended Sept. 30, 1993, totaled $1.045 million, or $0.48 per fully diluted common share outstanding, an increase of 22 percent over $857,548, or $0.37 per fully diluted common share outstanding, for the comparable period in 1992. Totals for both the three and nine month periods represent record high earnings. Returns on average assets and average equity during the third quarter were 1.39 percent and 9.27 percent respectively in 1993, compared to 1.12 percent and 7.71 percent in 1992.
 The improvement in the comparable quarterly earnings stemmed principally from an increase of $300,000 in net interest income to $2,672 million in the third quarter of 1993 from $2.372 million in the 1992 quarter. No provision for loan losses was established in the third quarter of either year. For the nine month period in 1993, Westco Bancorp, Inc.'s net interest income after provisions for loan losses increased 32.9 percent to $7.816 million form $5.883 million for the same period in 1992. No provision for loan losses was made during the nine month period in 1993 while a loan loss provision of $449,000 was established for the corresponding period in 1992.
 The association's interest rate spread averaged 3.000 percent during the 1993 third quarter, an increase of 62 basis points from the 2.38 percent maintained during the 1992 third quarter. The net interest margin increased 48 basis points to 3.66 percent for the third quarter of 1993 from 3.18 percent for the 1992 third quarter.
 Non-interest income rose 36.4 percent to $341,000 from the same quarter last year and 19.9 percent to $788,000 for the nine month period from last year's comparable period. These increases primarily resulted from increased loan fees, a one-time gain on the liquidation dividend from the Bank for Financial Institutions, and a market gain on an investment held for trading.
 Non-interest expense decreased 1 percent in the three month period ending Sept. 30, 1993 compared to 1992. Non-interest expense increased 12.5 percent in the nine month period in 1993 compared to 1992. This increase resulted primarily from increased staffing costs due to increased expenses of the benefit plans, salary increases and new operating expenses of the holding company which did not begin operations until the third quarter in 1992.
 At Sept. 30, 1993, total non-performing loans amounted to $634,000, or 0.33 percent of total loans. Non-performing loans at Dec. 31, 1992, totaled $801,000, or 0.41 percent total loans. Total allowances for loan losses amounted to $926,300, or 146 percent of non-performing loans at Sept. 30, 1993. At Sept. 30, 1993 non-performing assets totaled $704,000, or 0.24 percent of total assets. Non-performing assets at Dec. 31, 1992, totaled $1.027 million, or 0.33 percent of total assets.
 Westco Bancorp, Inc.'s assets fell 4.0 percent to $298 million as of Sept. 30, 1993, from $310.7 million of Dec. 31, 1992. Total deposits also declined 3.7 percent to $248.1 million from $257.7 million at Dec. 31, 1992. These declines occurred as a result of the historically low banking interest rate environment; the association's related reductions of interest rates paid on deposits, especially those on maturing longer term certificates of deposits; and the move by some depositors to higher yielding investments available elsewhere.
 The company continues to employ an interest rate risk management strategy of maintaining a significant part of the assets in overnight deposits and U.S. Treasury securities, together having a relatively short weighted average maturity. At Sept. 30, 1993, these investments totaled $95.7 million, or 32 percent of assets, with a weighted average life of approximately 13 months. At Dec. 31, 1992, these investments totaled $109.6 million, or 35 percent of assets, with a weighted average life of approximately 12 months.
 Stockholders' equity in Westco Bancorp, Inc. totaled $45.7 million at Sept. 30, 1993. As a result of a stock buy back plan concluded in 1992 (115,000 shares) and another completed on Aug. 13, 1993 (109,250 shares), the number of common shares outstanding at Sept. 30, 1993, was 2,075,750, and the book value per common share outstanding was $22.03.
 1st Federal's tangible, core and risk-based capital ratios at Sept. 30, 1993, were 13.0 percent and 35.0 percent respectively, which substantially exceed all fully phased-in regulatory requirements. At Sept. 30, 1993, 1st Federal Savings of Westchester's tangible capital stood at $37.9 million.
 WESTCO BANCORP, INC. AND SUBSIDIARIES
 Financial Highlights
 Sept. 30, Dec. 31, Percent
 1993 1992 Change
 (Unaudited)
 Selected Financial
 Condition Data:
 Total assets $298,421,386 310,698,592 - 4.0
 Investment securities
 and interest bearing
 deposits 95,664,894 109,565,930 - 12.7
 Loans receivable,
 net 191,765,763 188,756,692 + 1.6
 Deposits 248,081,299 257,720,471 - 3.7
 Total borrowings -- 1,624,571 - 100.0
 Stockholders equity 45,728,775 44,242,825 + 3.4
 Selected Asset Quality Ratios:
 Non-performing loans
 to loans receivable, net .33 pct. .41 pct.
 Non-performing assets to
 total assets .24 .33
 Allowance for loan losses
 to non-performing loans 146.11 115.48
 Allowance for loan losses
 to non-performing assets 131.68 90.07
 Three Months Ended Sept. 30,
 1993 1992 Percent
 (Unaudited) Change
 Selected Operations Data:
 Net interest income $2,672,061 $2,372,284 +12.6
 Provision for loan losses -- -- --
 Net interest income after
 provision for loan losses 2,672,061 2,372,284 +12.6
 Net interest income 341,317 250,215 +36.4
 General and administrative
 expenses 1,360,853 1,373,951 - 1.0
 Income before income taxes 1,652,525 1,248,548 +32.4
 Income tax expense 607,200 391,000 +55.3
 Net income $1,045,325 857,548 +21.9
 Net income per common
 share outstanding .48 .37
 Selected Operating Ratios:
 Return on average assets 1.39 pct. 1.12 pct.
 Return on average equity 9.27 7.71
 Operating expenses to average
 assets 1.81 1.79
 Interest rate spread during
 the period 3.00 2.38
 Net interest margin 3.66 3.18
 Average interest-earning
 assets to average interest-
 bearing liabilities 117.57 116.80
 Nine Months Ended Sept. 30,
 1993 1992 Percent
 (Unaudited) Change
 Selected Operations Data:
 Net interest income $7,815,662 $6,331,538 + 23.4
 Provision for loan losses -- 448,716 -100.0
 Net interest income after
 provision for loan losses 7,815,662 5,882,822 + 32.9
 Net interest income 787,667 656,784 + 19.9
 General and administrative
 expenses 4,067,040 3,616,190 + 12.5
 Income before income taxes 4,536,289 2,923,416 + 55.2
 Income tax expense 1,588,200 1,048,200 + 51.5
 Net income $2,948,089 1,875,216 + 57.2
 Net income per common
 share outstanding 1.31 .81
 Selected Operating Ratios:
 Return on average assets 1.29 pct. .87 pct.
 Return on average equity 8.73 7.97
 Operating expenses to average
 assets 1.78 1.67
 Interest rate spread during
 the period 2.85 2.41
 Net interest margin 3.53 3.02
 Average interest-earning
 assets to average interest-
 bearing liabilities 117.52 111.56
 NOTE: Mid-year figures are unaudited.
 -0- 10/12/93
 /CONTACT: David C. Burba, president, or Richard A. Brechlin, chief financial officer, 708-865-1100, both of Westco/
 (WCBI)


CO: Westco Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

LD -- NY107 -- 1338 10/12/93 17:27 EDT
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Date:Oct 12, 1993
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