In contrast with much of the thrift industry, Loyola Capital Corp., the parent company of Loyola Federal Savings and Loan, reports a strong profit for the third quarter, only 4 percent below the same quarter last year.
Third quarter net income was $2.5 million, or 53 cents a share, compared with $2.5 million, or 51 cents a share. The price per share rose because of a continuing stock buy-back program, which saw the company repurchase 136,464 shares during the third quarter.
The net income for the first nine months was $7.5 million, or $1.56 a share, compared with $7.9 million, or $1.56 a share, for the same period a year ago.
Net interest income for the third quarter was $12.5 million, up 12.7 percent from $11.1 million earned during the third quarter of 1989. Net interest income for the first nine months was $36.7 million, up 6.3 percent over the $34.5 million earned in 1989. The company said it benefited from a wider spread between the cost of deposits and the yield on loans and investments.
The thrift raised its provision for loan losses by $1.4 million, increasing the general loan loss reserve to $9.7 million. The company said the increase was necessary because its automobile-loan portfolio has been hurt by the continuing decline in the mid-Atlantic regional economy.
Non-performing assets were low, making up only 1.5 percent of total assets, which is considered favorable by industry standards.
"Like many strong financial institutions, the value of our franchise is not reflected in the price of our stock due to the drumbeat of negative press coverage," said Joseph W. Mosmiller, chairman and chief executive officer.
As a result of the repurchasing program, average shares outstanding during the third quarter declined to 4,698,286 from 5,074,114 in 1989.
Book value of the common stock reached $29.50 a share, and stockholders' equity had grown to $135.2 million as of Sept. 30. Total deposits of $1.54 billion were up 1.4 percent over $1.52 billion one year ago.