Loyola Capital earnings rise 17%

April 19, 1995|By David Conn | David Conn,Sun Staff Writer

Loyola Capital Corp., showing strong growth in consumer lending, yesterday reported a 17 percent increase in first-quarter earnings.

The company, parent of Loyola Federal Savings Bank, said earnings rose to $4.1 million, or 47 cents a share, from $3.5 million, or 40 cents a share a year ago.

"To compete effectively, we have streamlined and strengthened our core businesses while diversifying into promising business activities," Chairman and Chief Executive Officer Joseph W. Mosmiller said.

"Even while mortgage originations slowed, we've continued to increase income in construction and consumer lending and mortgage servicing," Mr. Mosmiller said.

The company's consumer loan portfolio increased to $373.0 million from $321.1 million a year ago. Construction loans rose to $89.1 million from $59.4 million. Among the only soft spots were mortgage originations, a victim of higher interest rates.

"Although the volume isn't as great as we anticipated, the runoff [of prepaid mortgages] is less than we expected," so the mortgage portfolio has increased a bit, said Executive Vice President James A. McAveney.

Excluding a loss on the sale of some loans, Loyola's income from nonlending activities -- or fee-based income -- was up 11.6 percent in the quarter, to almost $2.5 million. Also, Loyola was among the first financial companies to raise the amount it set aside for possible loan losses, to $201,000 from $180,000 a year ago.

The company's stock also is on the rise. Yesterday it gained 12.5 cents to close at $25 a share. That was more than 18 percent higher than where it stood on March 14, the day before Legg Mason analyst Janet McCabe upgraded her recommendation on Loyola, which has $2.5 billion in assets.

"Loyola is a good, solid company in an industry where limited growth opportunities are driving consolidation," she said.

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