BOWIE, Md., May 19 /PRNewswire-FirstCall/ -- The Washington Savings Bank,
F.S.B. (Amex: WSB), a federally-chartered, federally-insured savings bank,
with principal executive offices in Bowie, Maryland, today announced record
results for both its third quarter and nine month period ended April 30, 2004,
and declared a quarterly cash dividend of six cents per share which will be
paid on June 18, 2004, to stockholders of record as of June 4, 2004.
WSB reported record net earnings of $2,660,000, or $0.33 per diluted
share, and a record $6,571,000, or $0.82 per diluted share, for the three and
nine month periods ended April 30, 2004, respectively. The record net
earnings for the current fiscal periods included no gains from the sale of
mortgage-backed securities, compared to a pre-tax gain on the sale of
mortgage-backed securities of approximately $299,000 (approximately $197,000,
or $0.03 per diluted share on an after-tax basis) the same quarter last year,
and $823,000 (approximately 543,000, or $0.07 per diluted share on an after-
tax basis) for the nine months ended April 30, 2003. WSB's net earnings for
the nine month period ending last year were also affected by granting to the
Maryland Environmental Trust, a deed of conservation easement on the real
estate held for investment with a carrying value of $506,000 and an appraised
value of $2,145,000, which resulted in reducing the income tax expense by
approximately $745,000. The positive net effect on the prior period's net
earnings for this transaction was approximately $239,000, or $0.03 per basic
share.
The record net earnings for the three and nine month period ended April
30, 2004, represent an increase of $773,000, or 40.9% and $1,033,000, or 18.6%
compared to the same corresponding periods last fiscal year. The increase in
net earnings for the nine month period are primarily attributable to a 54%
increase in net interest income which partially offset the 30% decrease in
non-interest income, compared to the nine month period last year. The
increase in net interest income is the result of restructuring the balance
sheet to include more higher-yielding loans with an emphasis on construction
loans. The decrease in non-interest income is the result of the current
interest rate environment on mortgage loans, which resulted in a substantial
decrease in the amount of gain on sales of loans sold in the secondary market
due to a decrease in volume of mortgage loan originations.
WSB's April 30, 2004 total assets increased by 30% to $471,344,000 over
last year's April 30th balance, and increased 9% for the nine month period
since July 31, 2003.
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended April 30,
2004 2003 % Change
Interest Income $ 8,154,000 $ 6,006,000 36 %
Interest Expense $ 2,954,000 $ 2,676,000 10 %
Net Interest Income $ 5,200,000 $ 3,330,000 56 %
Non-Interest Income $ 2,113,000 $ 2,343,000 (10)%
Non-Interest Expenses $ 2,822,000 $ 2,614,000 8 %
Provision for Loan Losses $ 180,000 $ 90,000 100 %
Net Earnings $ 2,660,000 $ 1,887,000 41 %
Basic Earnings Per Share $ 0.37 $ 0.27 37 %
Diluted Earnings Per Share $ 0.33 $ 0.25 32 %
Average Shares Outstanding 7,253,835 6,904,758 5 %
Average Diluted Shares Outstanding 8,075,981 7,693,280 5 %
Nine Months Ended April 30,
2004 2003 % Change
Interest Income $ 23,084,000 $ 17,832,000 29 %
Interest Expense $ 8,696,000 $ 8,466,000 3 %
Net Interest Income $ 14,388,000 $ 9,366,000 54 %
Non-Interest Income $ 4,746,000 $ 6,737,000 (30)%
Non-Interest Expenses $ 8,195,000 $ 8,050,000* 2 %
Provision for Loan Losses $ 360,000 $ 270,000 33 %
Net Earnings $ 6,571,000 $ 5,538,000 19 %
Basic Earnings Per Share $ 0.93 $ 0.80 16 %
Diluted Earnings Per Share $ 0.82 $ 0.73 12 %
Average Shares Outstanding 7,066,102 6,890,434 3 %
Average Diluted Shares Outstanding 8,009,467 7,639,020 5 %
As of April 30, and nine months then ended
2004 2003 % Change
Total Assets $471,344,000 $363,833,000 30 %
Deposits and Borrowings $420,645,000 $320,985,000 31 %
Total Stockholders' Equity $ 46,830,000 $ 37,674,000 24 %
Book Value Per Share $ 6.41 $ 5.46 17 %
Return on Average Assets 2.08 % 2.27 % (8)%
Return on Average Equity 20.55 % 21.27 % (3)%
Efficiency Ratio 42.83 49.99
* Includes $506,000 donation of real estate.
SOURCE The Washington Savings Bank, F.S.B.
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Related links:
http://www.twsb.com
CONTACT:
William J. Harnett, Chairman, CEO, or Kevin
P. Huffman, President, COO, both of The Washington Savings Bank,
F.S.B., +1-301-352-3120
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