Loyola earnings report draws little reaction

July 19, 1995|By Timothy J. Mullaney | Timothy J. Mullaney,Sun Staff Writer

What if they gave an earnings report and nobody cared?

It would make your company's stock move sideways in a down market, judging from the reaction yesterday after Loyola Capital Corp. of Baltimore announced that its second-quarter profits jumped 20 percent to $4.4 million, or 50 cents a share.

The news hardly made a ripple, and for a simple reason: Loyola has already agreed to be acquired by Crestar Financial Corp. by the end of the year. The Crestar deal is the only story that counts when it comes to the stock of Loyola Federal Savings Bank's parent company.

Loyola's quarter didn't surprise its Wall Street following. The only quarterly estimate available had predicted Loyola would earn 46 cents a share, according to Nelson Publications Inc. Loyola's stock fell 25 cents yesterday to close at $32.50. "Who cares about Loyola? They're already bought," said Vernon C. Plack, a Scott & Stringfellow Inc. banking analyst whose Richmond, Va., firm is one of only two investment banks listed as following the thrift's stock. "I looked at [the earnings report] and set it aside."

"Let's face it. With a deal that is signed . . . our price is only going to react to Crestar's price," Loyola Chief Financial Officer James V. McAveney said. "If we lost a lot of money it would have no effect. We had record earnings, and it had no effect."

Crestar's price affects Loyola's because Loyola stockholders are slated to get .69 shares of Crestar for each Loyola share. The value of that package moves with the price of Crestar stock, which closed yesterday at $51.125, down 50 cents.

For now, though, the news was good, Mr. McAveney said. The company earned more than $900,000 on the sale of some of its real estate, enough to account for three-fourths of its profit gain, as it disposed of condominiums and land in South Carolina.

Loyola Capital Corp.

Baltimore

Ticker .... Yesterday's

Symbol .... Cls. .. Chg.

LOYC ...... 32 1/4 ..- 1/4

Period ended

06/30/95 ..... 2nd qtr. ... Year ago ... Chg.

Net Income .... $4,381 ...... $3,641 ... +20.3%

Primary EPS .... $0.50 ....... $0.42 ... +19.0%

Annualized return

on assets ....... .70% ........ .65%

Add. to allowance

for loan losses .. 236 ......... 180 ... +31.1%

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

Net Income ...... $8,449 ..... $7,131 ... +18.5%

Primary EPS ...... $0.97 ...... $0.82 ... +18.3%

Annualized

return on assets .. .68% ...... .63%

Add. to allowance

for loan losses .... 437 ....... 360 ..... +21.4%

Balances as of

.................. 6/30/95 .... 6/30/94

Assets ........ $2,579,692 .... $2,235,468 .. +15.4%

Deposits ...... $1,518,276 .... $1,423,381 ... +6.7%

Loans outst. .. $2,053,093 .... $1,681,172 .. +22.1%

Loan loss

reserve .......... $23,376 ....... $25,358 ....-7.8%

Figures in thousands (except per share data.) Loan loss reserve includes reserve for losses on investments in real estate.

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