Capital Holding's banking group earned $32.8 million, up 21.1%.

LOUISVILLE -- Capital Holding Corp. said its banking group, which includes the credit card marketer First Deposit Corp., had pretax earnings of $32.8 million for the first quarter, 21.1% more than in the comparable 1993 period.

Managed loans, including securitized loans that the banking group services, stood at $3.9 billion, up 12% from the first quarter last year.

The loan total was down slightly from yearend 1993 in what the company described as a typical seasonal variation.

The results reflect increased operating margins in its core unsecured spread-based businesses, growth in new markets, and improving fee-based income, Capital Holding said.

In addition to growth in the unsecured business, secured credit card receivables increased $41.1 million from the first quarter a year earlier, while auto premium finance receivables grew by $14.8 million. Both sets of products are aimed at consumers underserved by traditional banking institutions.

In line with the emphasis on the underbanked niche, San Francisco-based First Deposit introduced a secured Visa credit card in 1991 and added a secured MasterCard in 1993.

Capital Holding also said the banking group's mortgage portfolio increased outstandings by $92.6 million over the first quarter of 1993.

Net credit losses for unsecured receivables under management were 5.2% for the quarter, even with calendar year 1993, and improved from the 5.4% as of March 1993.

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