Higher earnings, stock split for Loyola Capital Lower interest rates contribute to profits

July 22, 1992|By David Conn | David Conn,Staff Writer

An article in yesterday's Business section incorrectly identified the location of Loyola Capital Corp.'s headquarters. Loyola is based in Baltimore.

The Sun regrets the error.

Loyola Capital Corp. gave stockholders a triple dose of encouraging news yesterday: higher second-quarter earnings, an increased dividend and a 2-for-1 stock split.

The Towson-based parent of Loyola Federal Savings Bank earned $3.1 million, or 70 cents a share, in the three months that ended June 30. That was 5.8 percent more than the $2.9 million, or 64 cents a share, that the company earned in the same period a year ago.

FOR THE RECORD - CORRECTION

In the first six months of the year, Loyola earned $8.8 million, or $2 a share, up from $5.2 million, or $1.14 a share during the same period last year. The company noted that a $1.4 million loss on real estate investments in the second quarter of 1991 turned into a $772,000 gain this year, a difference of more than $2 million that largely accounted for the improved quarterly earnings. As with most of the nation's banking companies, Loyola's profits also were driven by lower interest rates, which increased the company's net interest margin, the difference between the rate it paid for money and what it charged customers.

Loyola, which had assets of nearly $1.9 billion on June 30, also announced that its board of directors voted to raise the dividend on common stock by 20 percent. The company will pay a 6-cent-a-share dividend Sept. 30, the day the 2-for-1 stock split takes place.

The news struck a positive chord with investors, who boosted Loyola's stock to $24 a share, up $1.50 in over-the-counter trading.

Loyola, Maryland's second-largest thrift with 34 branches in the state, said total non-performing assets declined about $1.6 million, just over 3 percent, in the past six months.

Three months ended 6/30/92

.. .. .. .. .. Income .. .. .. .. .. .. Share

'92 .. .. .. .. 3,080,000 .. .. .. ... 0.70

'91 .. .. .. .. 2,911,000 .. .. .. ... 0.64

% change .. .. .. .. +5.8 .. .. .. .. ...+9.4

... ... ... ... ....Annualized return on assets '92 .. .. .. .. .. .. .. .. 0.16%

.. .. .. .. .. .. .. .. 0.14%

... ... ... ... ... Addition to allowance ... .... .... ... Net

... .... .... .... .... for loan losses ... ... ... ... ... charge-offs

'92 .. .. .. .. .. .. .. 1,575,000 .. .. .. .. .. .. .. .. 1,755,000

'91 .. .. .. .. .. .. .. .. 4,379,000 .. .. .. .. .. .. .. 3,822,000

% change .. .. .. .. .. .. ..-64.0 .. .. .. .. .. .. .. .. .-54.1

Six months ending 6/30/92

.. .. .. .. .. .. .. .. .. Income .. .. .. .. .. .. .. .. Share

'92 .. .. .. .. .. .. .. .. 8,795,000 .. .. .. .. .. .. .2.00

'91 .. .. .. .. .. .. .. .. 5,195,000 .. .. .. .. .. .. .1.14

% change .. .. .. .. .. .. .. +69.3 .. .. .. .. .. .. .. .+75.4

Balances as of 6/30/92

.. .. .. .. .. .. .. .. .. Assets .. .. .. .. .. .. .. .. Deposits

'92 .. .. .. .. .. .. .. .. 1,867,459,000 .. .. .. .. .. 1,528,731,000

'91 .. .. .. .. .. .. .. .. 2,105,187,000 .. .. .. .. .. 1,675,679,000

% change .. .. .. .. .. .. ..-11.3 .. .. .. .. .. .. .. ..-8.8

.. .. .... ... ... .... .... Net Loans ... ... ... ... ... Allowance

.... ... .... ... ... ... outstanding .... .... ... ... for loanlosses

'92 .. .. .. .. .. .. .. .. 1,477,674,000 .. .. .. .. .. 25,386,000

'91 .. .. .. .. .. .. .. .. 1,732,256,000 .. .. .. .. .. 18,778,000

% change .. .. .. .. .. .. ..-14.7 .. .. .. .. .. .. .. .. +35.2

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