May 23--Benson Financial Corp., the holding company for Groos Bank and Kelly Field National Bank in San Antonio, said its quarterly net earnings fell to $1.21 million, or 27 cents a share, compared with net earnings before extraordinary items of $1.36 million, or 32 cents a share, for the year-earlier period.
When extraordinary earnings are taken into account, the company's net earnings totaled $2.51 million for the first quarter of 1995. During that period last year, Benson redeemed preferred stock for a gain of $1.15 million after taxes.
Benson attributed the quarterly drop in net earnings to an increase in the company's provision for loan losses because more loans were charged off in 1996 compared with the same quarter in 1995.
The drop in earnings also was caused by a jump in the holding company's effective tax rate from 28 percent in 1995 to 34 percent this year.
Benson's loan portfolio totaled $264.4 million and its deposit base was $410.2 million on March 31.
That compares with a loan portfolio of $279.9 million and a deposit base of $406.6 million for the same period in 1995.
Benson said the amount of its loan portfolio fell because it made fewer consumer loans, there was more competition in the marketplace and because its credit standards have tightened.
The holding company also said its nonperforming assets are down more than 20 percent in the quarter, falling to $5 million on March 31 from $6.5 million on March 31, 1995.
Benson agreed to merge with Norwest Corp. late last year. Benson's shareholders will vote on the merger at a special meeting set for Wednesday.
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