The second-quarter net income for Charter One Financial Inc rose to $166 million from $145.9 million a year ago. The increase is due in part by a 16% increase in retail banking revenue and increased mortgage business.
Earnings rose 18% to 72 cents a share from 61 cents a share a yaer ago in the second quarter.
The earnings-per-sharewere restated to reflect the 5% stock dividend that was issued September 30.
The average annualized return on average assets was 1.5% and the average return on average equity was 19.86%.
Charter One will increase its regular quarterly dividend by 2 cents, or 8%, to 26 cents a share from 24 cents last quarter. Charter one is also discontinuing its annual 5% stock dividend and said the cash dividend is in the better interest of stockholders.
Charter One's retail banking revenue was up 16.2% in the second quarter to $97.1 million from $83.5 million a year ago. Deposit-related revenue was a driver of the banking growth, as deposit revenue was up 18.9% to 84.9 million according to Charter One. Charter One said its plan to shift balances into noninterest-bearing products has accomplished its goal.
Mortgage banking revenue, excluding mortgage servicing rights asset-related adjustments, was up 46.4% to $22.8 million from $15.6 million a year ago. The company has benefited from the continued record low interest rates.
Charter One's net gains of $108.5 million have been driven primarily by the sale of some $3.2 billion in mortgage-backed securities.
As of June 30, Charter One has $206 million in nonperforming assets, or .81% of loans, leases and colateral owned.
Charter One has raised its full year earnings guidance to between $2.72 and $2.75 a share based on the view that low interest rates will continue and that gians will remain at elevated levels for at least the next quarter. They had previously expected to earn $2.66 to $2.72 a share.
Last year Charter One earned $577.7 million, or
$2.45 a share.
Charter One Reports Record 2nd Qtr EPS up 18%
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on