The Washington Savings Bank, F.S.B. Reports Second Quarter and
Six Month Results and Announces Cash Dividend
BOWIE, Md., Feb. 16 /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 results for
both its second quarter and six month period ended January 31, 2005, and
quarterly cash dividend of seven cents per share which will be paid on March
18, 2005, to stockholders of record as of March 4, 2005.
WSB reported net earnings of $2,321,000, or $0.28 per diluted share, and
$4,732,000, or $0.58 per diluted share, for the three and six month periods
ended January 31, 2005, respectively.
The net earnings for the six month period ended January 31, 2005, represent an
increase of $820,000, or 21.0% over the same period last year. The increase in
net earnings is primarily attributable to a 40% increase in net interest income
and 14% increase in non-interest income, which partially offset the 30%
increase in non-interest expenses, compared to the six month period last year.
The increase in net interest income is the result of higher balances of
higher-yielding loans, including our construction loan portfolio, compared to
the prior period. The increase in non-interest income is the result of an
increase in the amount of gain on loans 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 six
months of this fiscal year, the provision for loan losses increased to
$1,190,000 from $180,000 for the same period last fiscal year. The increase is
the result of the increased loan portfolio as well as an increase in assets
subject to management's criticism.
On February 11, 2005, WSB announced a plan to reduce its concentration in
residential construction lending, primarily through a reduction of non-owner
occupied residential construction. This reduction, along with a continuing
tightening of credit standards, may affect future earnings and growth.
WSB's January 31, 2005 total assets increased by 36% to $557,010,924 over last
year's January 31st balance.
FINANCIAL HIGHLIGHTS
(Unaudited) Three Months
Ended January 31, 2005 2004 % Change
Interest Income $10,645,000 $7,508,000 42 %
Interest Expense $4,041,000 $2,828,000 43 %
Net Interest Income $6,604,249 $4,680,000 41 %
Non-Interest Income $1,444,000 $1,378,000 5 %
Non-Interest Expenses $3,608,000 $2,795,000 29 %
Provision for Loan Losses $670,000 $120,000 458 %
Net Earnings $2,321,000 $1,944,000 19 %
Basic Earnings Per Share $0.32 $0.28 13 %
Diluted Earnings Per Share $0.28 $0.24 17 %
Average Shares Outstanding 7,363,177 6,997,064 5 %
Average Diluted Shares Outstanding 8,248,808 7,947,253 4 % Six Months
Ended January 31, 2005 2004 % Change
Interest Income $20,593,000 $14,930,000 38 %
Interest Expense $7,765,000 $5,742,000 35 %
Net Interest Income $12,828,000 $9,188,000 40 %
Non-Interest Income $3,008,000 $2,634,000 14 %
Non-Interest Expenses $6,961,000 $5,373,000 30 %
Provision for Loan Losses $1,190,000 $180,000 561 %
Net Earnings $4,732,000 $3,911,000 21 %
Basic Earnings Per Share $0.64 $0.56 15 %
Diluted Earnings Per Share $0.58 $0.49 17 %
Average Shares Outstanding 7,355,961 6,972,235 6 %
Average Diluted Shares Outstanding 8,226,469 7,976,210 3 % As of January 31, and
six months then ended 2005 2004 % Change
Total Assets $557,011,000 $409,354,000 36 %
Deposits and Borrowings $500,977,000 $362,827,000 38 %
Total Stockholders' Equity $52,618,000 $43,426,000 21 %
Book Value Per Share $7.13 $6.10 17 %
Return on Average Assets 1.74% 1.91% (9)%
Return on Average Equity 18.62% 18.89% (1)%
Efficiency Ratio 43.95 45.44
DATASOURCE: Washington Savings Bank, F.S.B.
CONTACT: William J. Harnett, Chairman, or Kevin P. Huffman, President, COO, both of Washington Savings Bank, F.S.B., +1-301-352-3120 Web site: http://www.twsb.com/
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