Loyola Capital posts 16% rise in 3rd-quarter profit

October 21, 1992|By David Conn | David Conn,Staff Writer

Loyola Capital Corp., parent of Loyola Federal Savings Bank, reported a 16 percent rise in earnings in the third quarter, as the company reduced its real estate-related expenses compared with last year.

Those expenses, both the costs associated with foreclosed properties and losses from Loyola's homebuilding subsidiary, amounted to $1.5 million in the third quarter of 1991. But real estate investments added $109,000 to Loyola's earnings in the latest quarter, which ended Sept. 30.

For the three months, Loyola earned $2.9 million, or 33 cents a share, a 15.8 percent increase over the $2.5 million, or 28 cents a share, the company earned a year ago. These figures reflect a 2-for-1 stock split as of Sept. 30. The company's board of directors yesterday also declared a regular quarterly dividend of 6 cents a share to be paid Dec. 31 to stockholders of record on Dec. 15.

The company's stock closed at $11.625 a share yesterday, down 12.5 cents in trading on the New York Stock Exchange.

Loyola, which had $1.8 billion in assets as of Sept. 30, saw some improvement in its asset quality, with non-performers falling to $47.7 million in the quarter compared with $51.9 million a year ago. And while it set aside less money to protect against possible loan losses -- $1.3 million vs. $1.92 million a year ago -- Loyola's loan loss reserve grew by nearly half to $25.4 million.

"We're concerned about the next phase of this recession, if there is going to be one," said James McAveney, executive vice president and chief financial officer. "Any time you elongate a recession, you're going to have some good people fall apart on you."

Unlike many other banking companies in the region, Loyola has not seen a continuing rise in net interest margin, the spread between the cost of borrowing from depositors and the amount it makes lending to customers and investing in securities.

Three months ended 9/30/92

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

'92 ... ... ... 2,921,000 ... 0.33

'91 ... ... ... 2,523,000 ... 0.28

% change .. ... +15.8 .. .. .. +17.9

Nine months ended 9/30/92

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

'92 ... ... ... 11,716,000 .. 1.33

'91 ... ... ... 7,718,000 ... 0.85

% change .. ... +51.8 .. .. .. +56.5

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