Standard Federal Bank said Friday that the cessation of gains from mortgage sales lowered fourth-quarter earnings by roughly $600,000, to $30.3 million, despite a 10.7% increase in total assets.
The $12.1 billion-asset thrift, based in Troy, Mich., said annualized quarterly returns equaled 1.01% on average assets, down 19 basis points from a year ago; and 15.15% on average equity, down 260 basis points.
For the full year, Standard Federal earned $119 million, or $3.70 per share, versus 1993 earnings of $115.6 million, or $3.60 per share.
Salomon Brothers Inc. analyst Bruce Harting said Standard Federal is weathering rising interest rates better than most thrifts. But Mr. Harting said softening growth prospects had prompted him to lower 1995 earnings projections by roughly 10%, to approximately $3.70 per share.
For the quarter, Standard Federal said, pretax operating earnings were 16% ahead of the year-earlier period but pretax gains from mortgage sales shrank to $15,000, from $7.4 million in fourth-quarter 1993.
The thrift said it reversed $895,000 of loss reserves into earnings in the fourth quarter, compared with a $2 million provision a year ago. -