OSB Financial Corp. first quarter earnings report

Business Wire, April 25, 1995

OSHKOSH, Wis.--(BUSINESS WIRE)--April 25, 1995--Ronald J. Timmerman, president and chief executive officer of OSB Financial Corp. and its wholly-owned subsidiary, Oshkosh Savings Bank f.s.b. announced earnings for the first quarter of 1995.

Earnings for the quarter ended March 31, 1995 were $277,000 representing earnings per share of 23 cents. In the first quarter 1994, earnings were $500,000 and earnings per share were 39 cents.

``Rapidly rising interest rates during 1994 and a very flat yield curve thus far in 1995 have created a very tough environment to work under,'' stated Timmerman. ``Competitive pressure to increase deposit rates and lower lending rates continues to diminish our spread.

``Lending volume, consisting mainly of variable-rate products, continues to be quite active. These products are retained in our loan portfolio, and as they reprice will result in long-term profits and accelerated asset growth. Our loan portfolio has increased by $9.4 million to $153.8 million since year end 1994.

``A portion of our loan growth can be attributed to our new Commercial Services Division which produced lending volume in excess of our budget during the first quarter of 1995. Providing high-quality commercial lending and deposit services to small businesses and professional accounts is our goal.

``Our new full-service branches in Ripon and Wautoma are performing better than anticipated. The expenses associated with bringing these two offices and the Commercial Services Division into fruition in 1994 have a short-term effect on earnings, but these operations will increase our long-term franchise value and definitely add to the core earnings of the Bank in the future.

``Stockholders' equity totaled $32.5 million at March 31, 1995 resulting in a book value of $27.54 per share. We have recently completed our fourth 5 percent stock repurchase program and to date have repurchased 271,340 shares. The total present capital-to-assets ratio of the Corporation is 13.25 percent which exceeds all federally imposed regulatory capital requirements, and the Bank continues to be ranked among the highest capitalized thrifts in the United States.

``Assets increased to $244.9 million as of March 31, 1995 compared to $236.5 million at Dec. 31, 1994. Non-performing assets were 0.31 percent of assets at March 31, 1995 compared to 0.41 percent as of Dec. 31, 1994.

``We are looking forward to expanding all our products and services, and to the growth of the commercial services department and our two new branch offices. They will only add to the long-term viability of OSB Financial Corp.,'' Timmerman concluded.

OSB Financial's common stock trades on the NASDAQ National Market System under the symbol ``OSBF.'' -0-

                         OSB FINANCIAL CORP.
             Unaudited Consolidated Financial Highlights
                          (In Thousands)