The Cincinnati Enquirer from Cincinnati, Ohio • Page 21

B-6 FRIDAY, AUGUST 7, 1987 THE CINCINNATI ENQUIRER EDITOR: KERRY KLUMPE, 369-1009 NYSE listingB-7 NASDAQ tableB-8 Amex stocksB-8 Mutual fundsB-9 71 D) Portfolio First National buying Indiana bank l2600H 2580" '2560' 2540- 2520- 2500. 2480 2460. III! 1 it Jl born County. William D. Backman chairman of the board of Aurora First National Bancorp, could not be reached late Thursday for comment.

With $4.34 billion in total assets, First National Cincinnati Corp. is currently the second largest Cincinnati-based and locally owned bank holding company. However, it is expected to be the city's largest locally owned banking company after the merger of Central Bancorporation with $4.5 billion in total assets, and PNC Financial of Pittsburgh, with $28.2 billion in total assets, is completed. The merger is expected to be closed early next year. BY JAN PASCHAL The Cincinnati Enquirer First National Cincinnati Corp.

lined up its third Indiana bank holding company acquisition by signing on Thursday a letter of intent to acquire Aurora First National Bancorp, of Aurora, about 25 miles west of Cincinnati. If the proposed merger is approved by banking regulators, Aurora First National Bancorp will become an affiliate of First National Cincinnati Corp. Such approval usually takes 90 to 120 days. Terms were not disclosed. First National Bank of Cincinnati, with $2.53 billion in total assets, is the lead bank of the chairman and chief executive officer of First National Cincinnati Corp.

"We already own one bank over there, so this will just increase our market share." Aurora is just four miles south of Lawrenceburg, home of Peoples National Bank. Second National First National's other Indiana banking affiliate, is in Richmond, about 60 miles north of Aurora. "It will get us up to a size that gives us enough presence to do things for the betterment of the (Aurora) community," Waddell said. Aurora First National Bancorp, with $55 million in total assets, is the parent of First National Bank of Aurora. The bank has three offices in Dear $4.34 billion-asset First National Cincinnati Corp.

In a recent earnings report, First National Cincinnati Corp. said it has 13 banking subsidiaries with 129 offices in 19 counties of central and southern Ohio, Northern Kentucky, and eastern Indiana. In 1986, First National Cincinnati Corp. bought Peoples National Bancorp of America, parent of Peoples National Bank of Law-renceburg, and Second National parent of Second National Bank, of Richmond, and Bentonville State Bank, in Fayette County. "It's an attractive acquisition because we think there is great potential for southeastern Indiana," said Oliver W.

Waddell, 2440 24 27 28 29 30 31 3 4 5 6 July Aug. Dow Jones 30 Industrials daily highs and closes, at arrow tip Oliver W. Waddell great potential' Area-interest stocks in industrial average (NYSE change from previous day) 58 GE 1 34 2 58 Cincinnati Stock Exchange volume Thursday 2,1 82,500 Local thrift a national leader Retail Uit. .11 revenue 0 r- expands Stores report i modest gains Cincinnati area thrifts The top 10 savings and loans based on return on average assets. Based on March 31,1 987, published financial statements.

Savings and loan Return Addison Savings Loan (North College Hill) 6.72 Price Hill Eagle Loan Building Co. No. 1 2.44 Union Savings Bank (Loveland) 2.36 Williamsburg Building Loan (Clermont County) 2.06 Warsaw Federal Savings Loan (Cincinnati) 2.03 Valley Central Building Loan (Reading) 2.01 Mayflower Savings Loan (Groesbeck) 1 .93 Westwood Homestead Savings Loan 1.71 Mount Washington Savings Loan' 1 .70 Mercantile Savings Bank (Cincinnati) 1.70 Columbia Savings and Loan (Cincinnati) 1 .68 Ohio Average 0.64 National Average 0.11 'Tied in 9th place 1 Chemed plans special meeting Chemed Corp. plans to hold a special meeting in early October to vote on a proposal to set up its DuBois Chemical Division as a separate subsidiary corporation. The move would facilitate an initial public offering of DuBois common stock if future financial and market conditions warrant, the company said Thursday.

Chemed has pursued a policy of developing its major business units as companies that can stand alone, with separate management and corporate identities, in an effort to attract, retain and motivate management, it said. Chemed said in any event it expects to retain ownership of at least 80 of DuBois' common stock for the foreseeable future. Litigation GIBSON SUES REVCO: Gibson Greetings a Cincinnati-based greeting card company, has filed a $27.5 million lawsuit against Revco drug stores. The suit filed in Hamilton County Common Pleas Court alleges that Revco, based in Twinsburg, Ohio, tricked the company into buying card displays for about 580 Kevco stores just before they dropped the Gibson line of cards. Appointments PROMOTION OFFICIAL: As expected, Drexel Burnham Lambert Inc.

Thursday announced that it promoted its veteran Procter Gamble Co. watcher Focus BY JAN PASCHAL The Cincinnati Enquirer The nation's third most profitable savings institution is tiny Addison Savings Loan of North College Hill, it was confirmed Thursday by Sheshunoff Company the Austin, Texas, financial consulting firm. With only $4.15 million in total assets, Addison Savings Loan earned an astounding 6.72 return on average assets during the first three months of this year, according to Sheshunoff's report on the first-quarter performance of all U.S. thrifts. That fact must be balanced against the sea of red ink afflicting the Southwest's savings institutions, with losses so big that they dragged total earnings down by 80 for all 3,228 federally insured thrifts during the first quarter, Sheshunoff's report said.

The losses of Texas thrifts and those in other Southwestern states, like Oklahoma, totaled $1.2 billion in the first quarter, according to Alex J. Sheshunoff, president of Sheshunoff Company which publishes quarterly performance reviews of the nation's commercial banks and savings institutions. Such losses are the reason why Congress approved the comprehensive banking bill this week to let the technically insolvent Federal Savings and Loan Insurance Corp. raise up to $10.8 billion so it can close hundreds of insolvent thrifts and pay off depositors. In comparison, Ohio's thrifts ranked fifth in the nation for net thrift's only full-time managing officer, could not be reached for comment.

"They're open at unusual hours, so unusual that I couldn't trust myself to repeat the schedule," said George C. Eyrich, attorney for Addison Savings, and former treasurer of the Ohio Republican Party. Some of Cincinnati's smaller savings institutions are tlosed on one or two week days and open Saturdays, according to their ads in Cincinnati Bell's Consumer Yellow Pages. "They're very smartly managed," Eyrich said, of Addison Savings. "They do nothing other than make loans, mostly mortgage loans.

They handle their loans very nicely, and their expenses, for their size, are minimal." Addison Savings has only two other full-time employees, besides Huey, the managing officer, Eyrich said. "One thing they did do, though, several years ago, when everybody else was still treading water, they started giving savings accounts 6 (interest). But no CDs (certificates of deposit), no, none of that." The average interest rate on passbook savings accounts is 5.25. In spite of its success, Addison Savings is considering a potential merger, Eyrich said. "Competition and everything gets tougher, all the time, you know," he said.

on finance 1.06 or more during the first quarter of 1987, Sheshunoff said. Operating out of a three-room concrete block building with a staff of three, Addison Savings Loan turned enough profits during the first quarter of this year that it ranks behind only: Fairfax Savings Association, of Baltimore, $393 million in total assets, and 7.96 return on average assets. Gallitzin Savings Loan Association, of Gallitzin, $23 million in total assets, and 7.58 return on average assets. Nationwide, return on average assets was 0.11 for the first quarter, Sheshunoff's study said. In Ohio, the return on assets was 0.64.

There was no answer Thursday to calls placed to Addison pavings Loan. Gene Huey, secretary of Addison Savings and the income and 21st in return on average assets standard measures of profitability for financial institutions. "It shows the bauvarein tradition is alive and well," said Paul Wolgin, executive vice president of the Savings Loan League of Southwestern Ohio. The bauvarein was the neighborhood building and loan association started more than 100 years ago by the thrifty German descendants of Cincinnati's earliest settlers. In the Greater Cincinnati area, 21 savings institutions achieved a return on average assets of I Hercules A.

Segalas to managing director and hired Joseph H. Kozloff from PaineW-ebber Inc. as its new household products and cosmetics industry analyst. Segalas, who spent 10 years at nor i iL. THE ASSOCIATED and CINCINNATI ENQUIRER; Sales revenue grew modestly: in July for the nation's biggest general retailers as the stores tried to hold down inventories ia the face of sluggish consumer; spending, according to company; reports Thursday.

'K -l Slow growth in consumef'in-come and high levels of consumer debt have slowed spending some time, and been keeping inventories low" to prevent the need for clearance sales, analysts said. But while the lack of -clearances and accompanying thark-downs has slowed sales groyt)r, it also has aided profits by keeping margins high. 'i. "Sales are below planned generally speaking, but, profits $re in line or a little above planned," said Jeffrey Edelman, a retailing analyst for the investment firm Drexel Burnham Lambert Incv Sales figures for major general retailers which do not include retailers such as supermarket chains or auto dealers considered a key measure fjf consumer spending, which accounts for about two-thirds of U.S. -economic activity.

Federated Department Stores which owns Lazarus stores, said its July sales rose 6.8", from last year, to $705 while sales grew 7.5 in the 26 weeks ended Aug. 1, to $4.9 billion!" May Department Stores which owns L.S. Ayres stores, said its July sales rose 7 'over the year-earlier month, to $584.8 million, while sales for the year to date increased 9.7, to billion. For stores open.u'more than a year, sales rose 2'. 4" in July and 4.1 in the 26 wepks.

Mercantile Stores Co. of Wilmington, which owns McAl-pin's stores, said sales for the four weeks ended Aug. 1 "rose 4.7 to $135.5 millionr.fr.om $129.43 million in the yeargo period. Comparable store for the period rose2.4 to $131.49 million, from $128.46 million a yearearlier. Sears Roebuck the nation's largest general retailer, reported its July sales rose 2.4, to $2.23 billion, from the.same month last year.

Sales for the 26 weeks ended Aug. 1 13.97 billion, 3.7 higher than for' the same period in 1986. mart Corp. said its July of $1.86 billion were up 7.2 from last year, while sales for the 26 weeks ended July 29 were up 8.2 from 1986, to Firestone offices free to roll out of Akron VVt roiu oegummg in uie Vvv. 4 mid-1950s, will be itHr I "Hpvntinu his time to THE ASSOCIATED PRESS CLEVELAND A U.S.

District Court judge on Thursday refused to block Firestone Tire Rubber move to new headquarters in Chicago. Judge John M. Manos said Firestone directors and executives adequately kept shareholders aware of key issues affecting the company. At issue in a class-action shareholders' request for an injunction was whether shareholders were adequately informed in proxy materials, in an annual report, and at the annual shareholders' meeting about intentions to move the headquarters of the Akron-based company. Manos heard arguments in mid-July.

An estimated 200 to 250 Firestone em was discussed among company executives as early as October 1986, with Chicago first considered last January. He said Chicago is a more suitable location for managing Firestone's growing retail business. Mario Di Federico, former Firestone president, was among three former Firestone employees who sued on behalf of other shareholders, alleging that the corporate actions violated Securities and Exchange Commission regulations. In his 17-page opinion, Manos said, "Plaintiffs claim that the defendants decided to move to Chicago before the annual shareholders' meeting. All relevant evidence refutes this claim." ployees among the 1,800 now at the Akron headquarters complex would move to Chicago's Boulevard Towers South beginning Nov.

1, according to company plans. Offices of the company's tire business would still be in Akron. The move was first announced publicly April 30, a few hours after the annual shareholders' meeting. The judge's ruling "confirms that the company's decision was made in accordance with routine corporate procedures and that the decision was announced as soon as it was made by our board of directors April 30," said Thomas M. Forman, Firestone's vice president and general counsel.

Firestone Chairman John Nevin testified before Manos that the possibility of a move Segalas development of corpo rate business using his extensive industrial contacts," a Drexel representative said. Kozloff had covered during his IV2 years with Paine Webber. Earnings UNITED BRANDS LOWER: United Brands Co. reported net income for the second quarter, ended June 30, of $31.8 million, or $1.95 per share, compared to $35.6 million, or $2.08 per share, for the same quarter last year. In the six months ended June 30, net income was $46.2 million, or $2.84 per share, compared to $48.5 million, or $2.83 per share, for the same period last year.

Net sales for the second quarter were $833 million, compared to $902 million for the same quarter in 1986. The sales decline is attributable primarily to the sale in 1986 of the company's domestic animal feeds operation and United Kingdom produce business, the company said. High technology THAYER BUYS STAKE: Paul Thayer, the former LTV Corp. chairman and Pentagon official who received the stiffest prison sentence ever in an insider-trading case, has bought a major stake GM's dealers Ford matching GM plan Keeping competitive is cited as reason for decision in a growing Lalitor-nia computer company that hopes to make it big in defense work. Thayer earlier this week became the biggest shareholder in Computerbase International a 5-year-old company whose board of directors he joined in May, Comments on automaker's new 1.9 financing plan.

"I think it will help. Business has been slow for the last three months The 8.9 (for 60 months) is probably the best deal. Many people wait to get 60-month financing." Bob Pulte, owner of Bob Pulte Automotive, Western Hills. "It's a beautiful opportunity for buyers. I've never seen a more lucrative program for buyers We're experiencing heavy traffic already." Bob Fischer, part owner of Simon Fischer Oldsmobile, Newport.

"It's great for customers but not so good for dealers If the same thing happens as last year, we'll do two or three months worth of business in one month and then we'll do nothing." Bill Woeste, owner of Bill Woeste Chevrolet, Anderson Twp. Retail sales for North American sales. Analysts already have said that Ford doesn't need further incentives to move its cars and trucks. Among the Big Three U.S. automakers, Ford alone has sold more cars this year than last year.

While GM has cut production 18 this year, Ford's factories have run on overtime almost continuously, prompting United Auto Workers union complaints that Ford is forcing its employees to work too much overtime instead of hiring additional workers. At Ford, sales have kept pace with production, but at GM, sales have lagged continuously despite the production cuts, which GM Chairman Roger Smith said last year would replace wholesale incentives. GM blamed the costly incentive programs, which cut automakers' revenues, for a $338.5 million operating loss in the third quarter of 1986. In addition to the Festiva and Tracer, Ford's incentives cover its 1987 Ford Escort, Tempo, Taurus, Thunderbird and 1987 Mercury Lynz, Topaz, Sable and Cougar. THE ASSOCIATED PRESS DETROIT It took Ford Motor Co.

just one day to respond to General Motors new buyer incentive program with a similar choice of rebates or loan rates as low as 1.9. Ford, the world's most profitable automaker, Thursday evening announced incentives on most of its car lineup, including its new Korean-made 1988 Ford Festiva and its Mexican-built, Japanese-designed 1988 Mercury Tracer. Ford representative Bill Carroll said the new program begins immediately and runs, like industry-leader GM's, through Sept. 30. Ford is the nation's second-largest automaker.

Chrysler Corp. representative Tom Jakobowski said the No. 3 automaker still had no changes in its incentive programs to announce Thursday night. "Extremely strong demand for Ford and Mercury cars and the resulting low inventory levels do not suggest that incentive programs are necessary for us. However, we intend to continue responding to these programs because we want to keep our dealers competitive and maintain our strong sales momentum," said Louis Lataif, Ford vice president Retail sales figures forTIf)-state department store owners for the four weeks ended Aug 1 in millions of dollars, with rate of increase over the compans-ble period last year.

Store Sales Rate May 625.6 Federated 704.9 Mercantile 135.5 Thayer by acquiring a 15 stake. He is overseeing the company's development of sophisticated hardware and software systems using the ADA computer language, the standard computer language of the Defense Department. Compiled by Dick Benson from staff and news service reports.