Tuesday, January 19, 1999
INDUSTRY NOTES: BANKING
Banking asset sales hit record
BY JEFF McKINNEY
The Cincinnati Enquirer
The value of assets sold in the banking industry hit a record in 1998 as institutions made deals to grow geographically or expand into new lines of financial services.
More than $1.2 trillion in assets was acquired in the industry last year, surpassing 1998's total of $386.8 billion and more than doubling the previous record of $544.1 billion in 1995, according to SNL Securities Inc., a Charlottesville, Va., bank research firm.
Banks and thrifts paid $284.9 billion, up from $96 billion in 1997, to acquire those assets. But the stock market's decline last summer pulled down many of the deals' prices before they closed. Several major banks in the Tristate got involved in the consolidation game last year.
Cincinnati's Star Banc Corp. invested $8 billion in stock to buy Milwaukee's Firstar Corp. And Fifth Third Bancorp invested more than $1 billion to acquire at least six types of financial institutions, including Dayton's Citfed Bancorp Inc. and State Savings Co. of Columbus, two of Ohio's largest thrifts.
Increase in lending boosts Bancorp quarter
Loan growth helped First Financial Bancorp post a 10 percent gain in fourth-quarter net income.
The parent of the First National Bank of Southwestern Ohio earned $11.7 million, or 32 cents a share, compared with $10.6 million, or 29 cents a share, in 1997's fourth quarter. A 15 percent increase in lending helped fuel the higher profits.
For the year, the Hamilton-based thrift and banking company earned $44.1 million, compared with $40.3 million in 1997. The company said per share data has been restated to reflect a two-for-one stock split declared in April and a 10 percent stock dividend declared in November.
The results came two weeks after First Financial said it would pay about $37 million in stock to buy the parent of Hebron Deposit Bank, giving the company its first entry into Northern Kentucky.
First Financial said in December it would pay about $141 million in stock to buy Sand Ridge Financial Corp. of Highland, Ind., allowing it to expand into Indiana's second-largest county.
With assets of nearly $3 billion, First Financial operates 105 branches in Ohio, Michigan and Indiana.
Internet equity loans approved in 50 seconds
Bank One Corp., the nation's fifth-largest bank, said it has begun approving home-equity loans on the Internet in 50 seconds, making it the first to offer such approval online to people in all 50 states.
Chicago-based Bank One, the nation's third-largest home-equity lender, has offered a similar service over the telephone for two years. It said strong demand from consumers for the service on the Web prompted the company to offer it online.
After getting approval online, Bank One customers must complete forms before receiving the money, which the bank claims should arrive within five to 10 days.
Winton Financial profits up 15 percent
Higher net interest income helped Winton Financial Corp. post a 15 percent gain in fiscal first-quarter profits.
The parent of Winton Savings and Loan Co. had net income of $1.1 million, or 27 cents a share, compared with $960,000, or 24 cents a share, during the period in 1997.
The thrift's announcement comes a month after it said it would pay $5.5 million in stock to buy Benchmark Federal Savings Bank.
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INDUSTRY NOTES: BANKING
TRISTATE BUSINESS SUMMARY
