The Washington Savings Bank, F.S.B. Reports Record First Quarter
Results; Records 23% Increase in Net Earnings and Announces Cash Dividend
BOWIE, Md., Nov. 18 /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 its first quarter ended October 31, 2004.
WSB reports record first quarter net earnings of $2,411,000 or $0.29 per
diluted share for the first quarter ended October 31, 2004, representing a 23%
increase in net earnings over the same quarter last year.
The increase in net earnings for the first quarter was primarily due to a 38%
increase in net interest income and 25% increase in non-interest income, which
offset the 30% increase in non-interest expenses, compared to the same period
last year. The increase in net interest income is the result of
higher-yielding loans, including our construction loan portfolio. The increase
in non-interest income is the result of an increase in the amount of gain on
loans sold in the secondary market. Even though there was a slight increase in
mortgage interest rates, rates have remained at historically low levels, which
has had a positive effect on mortgage loan originations that are then sold in
the secondary market. Non-interest expenses increased 30% primarily as a
result of an increase in salaries associated with loan production and related
benefits. During the first quarter of this fiscal year, the provision for loan
losses increased to $520,000 from $60,000 for the same quarter last fiscal
year. The provision is the result of the increased loan portfolio as well as
the review by WSB's Loan Committee of land and construction loans to individual
borrowers that are involved with a builder that has defaulted during this
quarter on their constructions, causing collateral deficiencies that reflect
possible losses.
WSB's October 31, 2004 total assets increased to $553,120,000, a 36% increase
from October 31, 2003 balance of $406,223,000. This increase is primarily the
result of an increase in the loan held-for-investment portfolio.
WSB also announced that a seven-cent per share cash dividend will be paid on
December 17, 2004, to stockholders of record as of December 3, 2004.
FINANCIAL HIGHLIGHTS
(Unaudited) Three Months Ended October 31,
2004 2003 % Change
Interest Income $9,949,000 $7,422,000 34%
Interest Expense $3,725,000 $2,914,000 28%
Net Interest Income $6,224,000 $4,508,000 38%
Provision for Loan Losses $520,000 $60,000 767%
Non-Interest Income $1,564,000 $1,256,000 25%
Non-Interest Expenses $3,352,000 $2,578,000 30%
Net Earnings $2,411,000 $1,967,000 23%
Basic Earnings Per Share $0.33 $0.28 18%
Diluted Earnings Per Share $0.29 $0.25 16%
Average Shares Outstanding 7,348,744 6,947,406 6%
Average Diluted Shares
Outstanding 8,204,130 8,005,167 2%
As of October 31, and for the three months ended
2004 2003 % Change
Total Assets $553,120,000 $406,223,000 36%
Deposits and Borrowings $497,888,000 $360,711,000 38%
Total Stockholders' Equity $50,744,000 $41,431,000 22%
Book Value Per Share $6.90 $5.95 16%
Return on Average Assets 1.81% 1.88% (4)%
Return on Average Equity 19.34% 19.44% (1)%
Efficiency Ratio 43.04 44.72
DATASOURCE: The Washington Savings Bank, F.S.B.
CONTACT: William J. Harnett, Chairman, CEO, or Kevin P. Huffman, President, COO, +1-301-352-3120, both of The Washington Savings Bank, F.S.B.
Web site: http://www.twsb.com/
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