Local Financial Corporation Reports Third Quarter Profits
OKLAHOMA CITY, April 28 /PRNewswire/ -- Local Financial Corporation (Amex: LO), holding company for Local Federal Bank, FSB, and Local America Bank, FSB, reported third fiscal quarter net income of $4.2 million, $0.21 basic earnings per share compared to a net loss of $14.9 million for the same period a year ago ($0.97 historical loss per share based on equivalent number of shares). The increased profitability was due largely to the balance sheet restructuring which has been underway at Local Financial Corporation since its sale and recapitalization on September 8, 1997, when a group of investors led by the Townsend Investment Group raised $277 million in a private placement offering. The proceeds of this private placement was used to redeem the shares held by Collier Enterprises of Florida and retire debt of the holding company with net proceeds available for recapitalization of the Company.
The earnings announcement comes approximately one week after the Company was declared effective by the Securities and Exchange Commission on its registration statement covering the sale of 21,128,209 shares of Common Stock and $80.0 million of Senior Notes due September 8, 2004. The Company's Stock and Senior Notes began trading on April 22, 1998 under the symbols "LO" and "LO.A", respectively, on the American Stock Exchange.
Chairman and CEO, Edward A. Townsend, stated third quarter results are indicative of the strength and earnings capability of the newly recapitalized Banks. Townsend reports the Banks' focus is being returned to its 90 years heritage within the Oklahoma market. Significant initiatives are underway intended to enhance the Banks' franchise in Oklahoma. Initiatives include establishing a commercial business lending function, branch update projects designed to enhance customer service and operating system enhancements. |
