First Fidelity's earnings rise 14% in second quarter

July 19, 1994|By David Conn | David Conn,Sun Staff Writer

First Fidelity Bancorp., the Lawrenceville, N.J., company that has agreed to buy Baltimore Bancorp, yesterday reported a 14 percent increase in second-quarter earnings.

The company earned $111.6 million, or $1.27 a share, in the three months ended June 30, compared with earnings of $98 million, or $1.13 a share a year ago. Shares outstanding had risen to 86.1 million in the latest period, from 84.4 million a year earlier.

"The bank continues to benefit from stable core earnings while the company's capital position and asset quality continue to strengthen," said Anthony Terracciano, chairman and chief executive of First Fidelity.

Credit quality continued to improve, allowing the company to slash the amount it added to its reserve for possible loan problems. In the second quarter, the addition to its loan loss reserves, which is deducted from earnings, dropped to $20 million from $41 million a year ago.

Growth in lending activity wasn't as dramatic. Although First Fidelity's profit margin from loans and deposits was up slightly from this year's first quarter, it was down significantly compared with the same period last year.

And though consumer lending was strong during the quarter, the amount of business loans was unchanged, partly because more companies have been paying off debt than in the past.

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First Fidelity Bancorporation

.. .. .. .. . ... ... ... ... ... Ticker ... ... ... Yesterday's

... ... ... ... ... .. ... ... ... Symbol ... ... ... Cls. ... Chg.

... ... ... ... ... .. ... ... ... FFB ... .. ... ... 473/8 .. +3/8

Period ended

June 30 ... ... ... ... ... 2nd qtr. ... ... ... Year ago ... ... Chg.

Net Income .. .. .. ... ... $111,593 ... ... ... $97,928 .. .. .. +14.0%

Primary EPS ... ... ... ... $1.29 ... ... ... .. $1.15 ... ... .. +12.2%

Annualized return

on avg. assets ... ... ... 1.34% ... ... ... ... 1.26% ... ... .. --

Add. to allowance

for loan losses .. ... ... $20,000 ... ... .. .. $41,000 ... ... -51.2%

... ... ... ... ... ... .. 6 mos. ... ... ... .. Year ago ... ... Chg.

Net Income ... ... ... ... $220,459 ... ... ... $192,914* ... ... +14.3%

Primary EPS .. ... ... ... $2.54 ... ... .. ... $2.29* ... .. ... +10.9%

Annualized return

on avg. assets ... ... ... 1.32% ... ... ... .. 1.26% ... ... ... --

Add. to allowance

for loan losses .. ... ... $44,000 ... ... ... $86,000 ... ... ... -48.8%

Balances as of ... ... ... 6/30/94 ... ... ... 6/30/93

Assets ... ... ... ... ... $33,908,306 ... ... $32,323,909 ... ... +4.9%

Deposits ... ... .. .. ... $27,442,146 ... ... $27,317,372 ... ... +0.5%

Loans outstg. .. .. .. ... $21,608,066 ... ... $19,895,019 ... ... +8.6%

Loan loss

reserve ... ... ... ... .. $590,936 .. ... ... $656,890 ... .. ... -10.1%

* Includes a gain of $2.37 million, or 3 cents a share, from an accounting change.

-- Figures in thousands (except per share data.)

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