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| Alliance Bancorp Reports Record Earnings of $2.6 Million, or $0.46 Per Share, for the Second Quarter |
HINSDALE, Ill., July 18 /PRNewswire/ -- Alliance Bancorp (Nasdaq: ABCL),
the holding company for Liberty Federal Bank, today reported net income for
the second quarter ended June 30, 1997, of $2,636,000, or $0.46 per fully
diluted share. Year-to-date earnings were $4,065,000, representing $0.80 per
fully diluted share.
Alliance Bancorp completed its merger of equals transaction with Liberty
Bancorp Inc. on February 10, 1997. During the quarter ended June 30, 1997,
the bank completed its data processing conversion and severance strategy,
operationally completing the merger. Net income year-to-date does not include
earnings from Liberty Bancorp Inc. prior to the date of the merger. As a
result of the merger, comparisons to previously reported periods are not
meaningful.
Net interest income for the quarter was $8.9 million. The current
quarter's interest rate spread was 2.33 percent and the interest rate margin
was 2.74 percent. Year-to-date net interest income was $16.4 million with an
interest rate spread of 2.40 percent and an interest rate margin of 2.80
percent.
The current quarter's noninterest income was $4,210,000. Year-to-date
noninterest income of $6,907,000 included a first-quarter pretax loss of
$391,000 from a sale of $59 million of adjustable rate mortgage loans. The
loan sale loss and subsequent reinvestment was part of a restructuring of the
loan portfolio to improve the yield to the bank. Fees and commissions are
primarily derived from the bank's mortgage banking subsidiary, Preferred
Mortgage Associates Ltd., brokerage commissions on security transactions for
customers of Liberty Financial Services Inc., the bank's investment and
insurance subsidiary, transaction fees from the bank's shared ATM network,
fees for loans serviced, and fees from deposit accounts.
General and administrative expenses were $8,802,000 for the current
quarter. Year-to-date general and administrative expenses were $16,691,000
and include $553,000 in pretax non-recurring merger related expenses included
in the first quarter.
At June 30, 1997, non-performing loans were $1.6 million, or 0.16 percent
of total loans. The allowance for loan losses of $5.5 million, represents 335
percent of the balance of non-performing loans. Non-performing assets were
$2.1 million, or 0.15 percent of total assets. These measures are slightly
stronger than the first quarter when non-performing loans were $1.8 million,
or 0.16 percent of total loans, the allowance for loan losses was $5.5
million, representing 311 percent of total non-performing loans, and
non-performing assets were $2.3 million, or 0.18 percent of total assets.
At June 30, 1997, the bank's tangible capital ratio was 7.67 percent, the
leverage capital ratio was 7.77 percent and the risk-based capital ratio was
15.15 percent. These ratios substantially exceed all current and fully
phased-in regulatory capital requirements.
Alliance Bancorp's total assets were $1.4 billion at June 30, 1997, and
total deposits were over $1 billion. Stockholders' equity was $125 million,
resulting in a book value of $23.40 per share.
On May 30, 1997, the company announced a $0.1625 per share cash dividend
to holders of record on June 30, 1997, payable on July 18, 1997.
Alliance Bancorp is the parent company of Liberty Federal Bank which was
recently formed through the merger of Hinsdale Federal Bank and Liberty
Federal Savings Bank. Liberty Federal Bank is a community-oriented financial
services company operating 14 retail banking offices in Chicago, north and
western Cook County and DuPage County. Liberty Financial Services Inc., a
subsidiary of Liberty Federal Bank, provides full-service insurance services
as a licensed insurance agency, and investment transactions for customers
through INVEST Financial Corporation with 11 licensed brokers operating in all
14 offices of the bank. Preferred Mortgage Associates Ltd., a subsidiary of
Liberty Federal Bank, is one of the largest mortgage brokers in the Chicago
metropolitan area. Preferred has four mortgage origination offices including
its headquarters in Downers Grove, Ill.
The company's common stock trades on the Nasdaq National Market tier of
the Nasdaq Stock Market under the symbol: ABCL.
ALLIANCE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
(In thousands, except per share data) 1997 1996
(unaudited)
ASSETS
Cash and due from banks $12,410 7,645
Interest-bearing deposits 23,858 19,596
Investment securities available for sale,
at fair value 97,835 1,998
Mortgage-backed securities available for sale,
at fair value 204,477 5,140
Loans, net of allowance for losses of
$5,458 at June 30, 1997 and $2,272 at
December 31, 1996 1,017,641 609,371
Accrued interest receivable 8,620 3,522
Real estate 2,424 1,586
Premises and equipment, net 7,269 6,592
Stock in Federal Home Loan Bank of Chicago,
at cost 12,855 7,445
Other assets 16,874 5,069
Total $1,404,263 667,964
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $1,020,923 462,869
Borrowed funds 228,684 131,900
Collateralized mortgage obligations 1,684 2,243
Advances by borrowers for taxes and insurance 12,461 7,919
Accrued expenses and other liabilities 15,417 6,407
Total liabilities 1,279,169 611,338
Stockholders' Equity:
Preferred stock, $.01 par value; authorized
1,500,000 shares; none outstanding -- --
Common stock, $.01 par value; authorized
11,000,000 shares; 5,447,625 shares issued
and 5,344,900 outstanding at June 30, 1997
2,790,085 shares issued and 2,695,085
outstanding at December 31, 1996 54 27
Additional paid-in capital 86,481 21,066
Retained earnings, substantially restricted 39,780 37,117
Treasury stock, at cost; 102,725 shares at
June 30, 1997 and 95,000 shares at
December 31, 1996 (1,502) (1,284)
Common stock purchased by:
Employee Stock Ownership Plan -- (428)
Unrealized gain on securities available
for sale, net of tax 281 128
Total stockholders' equity 125,094 56,626
Commitments and contingencies
Total $1,404,263 667,964
ALLIANCE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
(In thousands, except per share amounts)
(unaudited)
INTEREST INCOME:
Loans $18,542 10,669 35,250 21,591
Mortgage-backed securities 3,132 158 4,629 311
Interest-bearing deposits 304 328 441 576
Investment securities 1,345 147 1,818 320
Commercial paper 6 -- 37 --
Federal funds sold -- -- 15 --
Total interest income 23,329 11,302 42,190 22,798
INTEREST EXPENSE:
Deposits 11,654 4,902 20,587 9,835
Borrowed funds 2,734 2,051 5,082 4,313
Collateralized mortgage obligations 51 103 111 220
Total interest expense 14,439 7,056 25,780 14,368
Net interest income 8,890 4,246 16,410 8,430
Provision for loan losses -- -- -- --
Net interest income after
provision for loan losses 8,890 4,246 16,410 8,430
NONINTEREST INCOME:
Gain (loss) on sales of loans and
mortgage-backed securities 82 (8) (314) 202
Income from real estate operations -- 77 59 174
Servicing fee income 109 114 214 228
Fees and commissions 3,985 2,822 6,895 5,807
Other 34 15 53 180
Total noninterest income 4,210 3,020 6,907 6,591
NONINTEREST EXPENSE:
Compensation and benefits 4,913 3,286 9,295 6,620
Occupancy expense 1,059 742 2,104 1,486
Federal deposit insurance premiums 160 268 288 526
Computer services 338 129 701 262
Other 2,332 1,434 4,303 2,757
Total noninterest expense 8,802 5,859 16,691 11,651
Income before income taxes 4,298 1,407 6,626 3,370
Income tax expense 1,662 275 2,561 1,037
Net income $2,636 1,132 4,065 2,333
Primary earnings per share $0.46 0.40 0.80 0.83
Fully diluted earnings per share $0.46 0.40 0.80 0.83
ALLIANCE BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At Or For The At Or For The
Three Months Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
(unaudited)
(Dollars in thousands,
except per share data)
Average assets $1,347,358 $669,912 $1,220,669 $674,951
Return on average assets 0.78% 0.68% 0.67% 0.69%
Return on average equity 8.52 8.27 7.28 8.63
Average stockholders'
equity to average
assets 9.18 8.17 9.15 8.01
Stockholders' equity to
total assets 8.91 8.37 8.91 8.37
Tangible capital to
total assets (Bank only) 7.67 7.64 7.67 7.64
Leverage capital to
total assets (Bank only) 7.77 7.87 7.77 7.87
Risk-based capital ratio
(Bank only) 15.15 13.71 15.15 13.71
Interest rate spread
during the period 2.33 2.23 2.40 2.19
Net yield on average
interest-earning assets 2.74 2.62 2.80 2.58
General and administrative
expenses to average assets 2.61 3.50 2.73 3.45
Non-performing loans to
total loans 0.16 0.12 0.16 0.12
Non-performing assets to
total assets 0.15 0.13 0.15 0.13
Average interest-earning
assets to average
interest-bearing
liabilities 1.09 x 1.09 x 1.09 x 1.09 x
Book value per share $ 23.40 $ 20.62 $ 23.40 $ 20.62
Weighted average shares
outstanding
Primary 5,669,718 2,803,025 5,076,837 2,798,114
Fully diluted 5,683,540 2,816,735 5,092,079 2,813,404
Earnings per share
Primary $0.46 $0.40 $0.80 $0.83
Fully diluted $0.46 $0.40 $0.80 $0.83
Ratios were calculated on an annualized basis, as applicable.
SOURCE Alliance Bancorp Inc.
back to topCONTACT:
Richard A. Hojnicki, Executive Vice President
and Chief Financial Officer, of Alliance Bancorp, 630-323-1776;
or General Inquiries, Marilyn Windsor of The Financial Relations
Board, 312-640-6692
