The Charlotte Observer du lieu suivant : Charlotte, North Carolina • 25

THE CHARLOTTE OBSERVER Monday January 6 1986 9B NC Federal Is In The Black After Weathering Shaky Years 1 0 if)07 -1 l' IA14 "NC Federal will definitely be one of the survivors We keep building our strengths" Bruton Smith NC Federal's largest shareholder 1 Continued From Page 111 rebounded because of an expanding economy and lower Interest rates US savings institutions earned a record $5 billion in 1985 up fourfold from $950 million in 1984 the US League of Savings Institutions estimates The industry's previous record for earnings was $39 billion in 1979 NC thrifts had an "outstanding year" of profits based on a preliminary review of figures adds Thad Woodard president of the NC League of Savings Institutions David West banking analyst at Wheat First Securities in Richmond says "The (thrift) industry has made a significant return to profitability Compared to a few years back the industry has a renewed lease on life in many cases" During the industry's rapid deterioration from 1981 to 1984 NC Federal lost $114 million Harwood the firm's president blames the thrift's portfolio of fixed-rate loans which lost money because of high interest rates The takeover battle between the NC Federal's former management and Charlotte businessman Bruton Smith also contributed he adds Since then the thrift has restructured its loan portfolio which contained virtually all fixed-rate mortgages in 1980 Today about 35 of its lending is interest-rate sensitive (either adjustable-rate or short-term loans) Harwood says And by 1988 65 of its lending will be interest-rate sensitive he says NC Federal has also diversified into real-estate lending with the latest example its financing of Piper's Glen the I100-acre golf-housing development off NC 51 in southern Mecklenburg County While speculative real-estate lending has resulted in losses for some banks in Texas California and Florida Harwood says NC Federal doesn't regard its lending as risky "We don't do speculative office buildings We don't do hotels" Harwood says Regarding Piper Glen he adds "The PGA contracted not only to manage the golf course but to own the course We went for quality We knew it would be done right" The firm has also watched operating costs more carefully Harwood says even though it plans to move to more expensive Charlotte office space FILE BOXES FOR YOUR '85 RECORDS AWAY :4: 10 305 EACH 25 258 EACH 50 185 EACH 100 155 EACH 500 125 EACH OWENS-1LLINOIS PO Box 189 1000 100 EACH Rutherfordton NC 28139 (704) 286-9156 POWER SERVICE DIESEL FUEL SUPPLEMENT KEEPS YOUR FUEL FLOWING THROUGH SLEET SNOW AND 30 below ser DIESELNEL tit PURSER OIL CO Charlotte NC 704333-3775 CAROLINA INDUSTRIAL REAL ESTATE Space GthiedFOrPOfit 295000 sq ft on 1012 acres air-conditionrailsprinkler PO Box 11610 KEENAN Columbia SC 29205 (803)254-2300 COLLIERS BUSINESS SCPIA01 TELEPHONE '4S C1 SYSTEMS To meet your needs Are you opening moving or enlarging? Call Dick Neely Sales Manager 535-9000 A Subsidiary of Rock Hill Telephone Company Serving In The Piedmont Area Since 1894 IN ROCK HILL CALL 324-601 The Cancan Some communications firms hen develop sizzling CrCatiVCS asked to conjure up sizzling creatives achieve extraordinar) goals that sell-on a tight deadline become all inside set deadlines great hoofers 1 hey do the cant-cant Call the Lyerly Agency for public The lyerl) Agent) does the cancan relations advertising excellent We can communications of an) kind We cancan analyze )our position Our dance number is 704-333-1218 build your strategy Lyeriy Agency Inc Public RelationsAdvertising 1015 East BoulevardCharlotte NC 282035713704 333-1218 (WI (Formerly Eve Communication Services Inc (01 Last fall the firm sought to finance as its headquarters "a major addition to the downtown skyline" Harwood says Executives scrapped the proposal he says when a second potential tenant Broadway Seymour Inc a computer systems and services firm decided not to leave its current downtown site The proposal no longer made financial sense without a guaranteed second tenant Harwood says NC Federal has also largely put behind it the takeover battle in late 1983 and early 1984 The institution's former two top managers resigned during the battle Smith who owns Town and Country Ford in Charlotte retains controlling interest of 42 in NC Federal The struggle for control erupted in July 1983 when Smith opposed a five-way merger that would have made NC Federal the state's largest savings institution After the merger collapsed two of the institutions involved North Wilkesboro Federal Savings and Loan Association and Home Federal Savings and Loan Association filed lawsuits seeking damages from the failed merger of more than $5 million Late last year Home Federars $24 million suit was quietly settled out of court with NC Federal paying an amount "not material at all to us" according to Harwood North Wilkesboro's $28 million suit is still outstanding Both Smith who is a company director and NC Federars managers say their relationship has proceeded smoothly Smith praises the company's new management saying "getting good management and being aggressive" prompted the turnaround "I'm quite pleased with what's occurred" he says "We're on course" Analyst West Harwood and many industry observers believe federal regulators will allow savings institutions to make regional interstate acquisitions of other healthy thrifts this year But it's uncertain if NC Federal advertising will be held from 7-9 pm each Tuesday through March 25 at Catalytic Inc on NC 51 across from Carmel Commons Shopping Center Dick Stark publicity director of the BPAA said the course Is for "people that are just starting in the field as well as for those who want to sharpen their skills on the will survive The institution's size of $655 million in assets makes it much smaller than thrifts in neighboring states And its capital position with net worth equal to just over 3 of assets is less than most other thrifts in the state and region "There will be a lot of interest in NC institutions" says one Carolinas thrift executive who asked not to be identified "I can't see them (NC Federal) being a strong survivor It's likely that they would be acquired only if Mr Smith decides to sell" Harwood acknowledges that capital is a concern The firm plans to increase its net worth to assets to 55 over the next five years But he believes NC Federal will be financially strong enough to make acquisitions The firm is interested in the Columbia Atlanta Orlando Tampa and Charleston metropolitan areas he says Though NC Federal executives would consider a takeover offer Harwood says "We kind of think of ourselves as GAF" GAF Corp is seeking to acquire Union Carbide Corp Smith NC Federal's largest shareholder says he believes the company's stock is likely to rise with or without an acquisition Smith says NC Federal which traded with a bid price of $9 per share Friday is grossly undervalued The stock has a price-earnings ratio of 4 just one-third of the stock market's price-earnings ratio of about 12 The ratio is calculated by dividing a company's stock price by its annual per-share earnings But Smith is holding his cards close to his vest "NC Federal will definitely be one of the survivors We keep building our strengths" Smith says But asked if that means he wouldn't sell his stake in the firm he adds "I always believe anything is for sale I wouldn't rule anything out" new technology and the new techniques" The course will cost 6100 for BPAA members and $125 for nonmembers and be limited to 35 participants For more information contact Robert Brickell CBC Elox Division Colt Industries PO Box 220 Davidson NC 28036 or call 389-8011 9 am-5 pm weekdays 1 Group Sponsoring 11-Week Course p9i4 pu Lti C4 tc) lri 1 L1 1 0) CL 1 c) 1 -I The Carolinas chapter of the BusinessProfessional Advertising Association (BPAA) will sponsor an 11-week course in business-to- business marketing communica- tions beginning Jan 14 The course which will cover such topics as copy and layout print production catalogs and litQ erature television production media selection and legal aspects of.