Wednesday, January 30, 2002
Industry notes: Banking
PNC profits restated; stock falls
Shares of the parent of PNC Bank fell almost $6 Tuesday after the company said it would restate profits for last year.
PNC Financial Services Group Inc. said effects of consolidating subsidiaries of a third-party financial services firm it has interests in will cause it to reduce 2001 profits almost $155 million, or 53 cents a share.
PNC, trying to shed bad loans on its books the past year by selling them to investors, set up companies with an insurer last year to buy its loans and sell them over a certain period.
The Federal Reserve asked PNC to consolidate the accounting for the three subsidiaries to comply with generally accepted accounting principles, PNC said in a statement. That recommendation differed from the advice of its auditors, PNC said.
But PNC doesn't expect the moves to affect results for 2002.
PNC said it is cooperating with the Federal Reserve and Securities and Exchange Commission on the inquiries. The company's auditors are Ernst & Young LLP, according to an SEC filing.
PNC shares closed Tuesday at $56.08, down $5.79.
Pennsylvania's largest bank said it will revise fourth-quarter results and restate earnings for the second and third quarters of last year to reflect the changes.
PNC said profits in 2001 will now be $412 million, or $1.38 a share, the company said. PNC reported net income of $567 million for last year on Jan. 17.
Towne Bank parent has strong quarter
Income gains and loan growth sparked a hefty increase in fourth-quarter profits at Oak Hill Financial Inc.
The parent of Towne Bank in Cincinnati earned $2.4 million, or 45 cents a share, up from $1.2 million, or 23 cents a share, in last year's fourth quarter. For the year, Oak Hill earned $8.7 million, or $1.65 a share, up from $6.3 million, or $1.16 a share, in 2000.
The Jackson, Ohio-based banking company's 2001 profits included a one-time pre-tax gain of $900,000 from the sale of its Towne Bank branch in Amelia. The company also had pretax merger-related charges of $259,000 from Oak Hill's acquisition of Innovative Financial Services Inc., an employee benefits agency
Peoples profits up 52% in quarter
Loan growth helped the parent of Peoples Community Bank post a 52-percent gain in first-quarter profits..
West Chester-based Peoples Community Bancorp Inc. earned $585,000, or 25 cents a share, up from $385,000, or 19 cents a share, during 2000's fourth quarter. The gain came as net interest income rose almost 34 percent to about $7.6 million fueled by loan growth.
Peoples also this month completed the sale of its branch in Blanchester to the First National Bank of Blanchester for an undisclosed amount. The gain from that sale likely will be reflected in Peoples' second-quarter results.
Third Federal earns high marks
Third Federal Savings and Loan, one of Cincinnati's largest mortgage lenders, has been named by Fortune magazine as among 100 of the Best Companies to Work For in America.
Third Federal, which made the list for the third straight year, ranked 36th among best companies to work for. It ranked third on the list of Best Companies for Women.
About 80 percent of Third Federal's work force is female.
Bloomberg News contributed to this report. Contact Jeff McKinney at 768-8499; fax 564-6991; or e-mail firstname.lastname@example.org.
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Industry notes: Banking
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