Abington Bancorp Announces 2003 Fourth Quarter and Full Year Results.Business Editors ABINGTON Abington, township (1990 pop. 59,084), Montgomery co., SE Pa., a residential suburb of Philadelphia; settled 1696, inc. 1906. The site of combat during the Revolutionary War, Abington has abrasives and other light manufacturing industries. , Mass.--(BUSINESS WIRE)--Jan. 22, 2004 Abington Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABBK), the parent company of Abington Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. (the "Bank"), today reported net income of $766,000, or $0.19 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended December December: see month. 31, 2003. This compares with net income of $1.13 million, or $0.29 per diluted share, for the same quarter of 2002. During the fourth quarter of 2003, the Company recorded a charge for expenses incurred in connection with its pending merger with Seacoast Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Corporation (NASDAQ: SCFS SCFS School Christian Fellowships SCFS Seaman's Christian Friend Society ) which reduced net income by $523,000, or $0.13 per diluted share. For the year ended December 31, 2003, net income was $3.08 million, or $0.76 per diluted share, compared with net income of $6.17 million, or $1.76 per diluted share, for the year ended December 31, 2002. In addition to merger-related expenses recorded in the fourth quarter, net income for 2003 reflects approximately $1.7 million in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges related to the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) borrowings incurred in connection with a balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program and approximately $600,000, pre-tax, of legal and accounting fees associated with the previously announced revision of 2002 financial statements and the re-audit of financial statements for 2001. On October October: see month. 21, 2003, the Company and Seacoast Financial Services Corporation jointly announced the execution of a definitive merger agreement. Under the terms of the agreement, shareholders of Abington Bancorp will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive $34.00 per share in cash, 1.4468 shares of Seacoast common stock, or a combination thereof, subject to election and allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as procedures intended to ensure that, in the aggregate, 75% of Abington Bancorp shares will be exchanged for Seacoast Financial Services Corporation common stock. It is anticipated that the transaction will be completed during the second quarter of 2004, pending regulatory approvals and the approval of Abington Bancorp shareholders. Results for the 2003 periods include the operations of the former Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Fincorp Fincorp was an Australian property and investment company that collapsed in March 2007. The company promised investors a return of up to 9.25% p.a., but, upon collapse, owed 8100 investors over AU$200 million. External links
tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. Mandatorily Redeemable Redeemable Eligible for redemption under the terms of an indenture. Securities from mezzanine capital Mezzanine capital (or mezzanine debt) is a broad financial term that refers to unsecured, high-yield, subordinated debt or preferred stock that represents a claim on a company's assets that is senior only to that of a company's shareholders. to other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. and has included as interest expense the related costs associated with these securities in conformity with Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Interpretation No. 46, "Consolidation of Variable Interest Entities." This reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. became effective on December 31, 2003 and prior periods have been restated to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current presentation. Quarterly Results For the fourth quarter of 2003, total interest and dividend income was $8.81 million, a decline of $2.03 million, or 18.7%, from the $10.83 million reported for the prior year quarter, reflecting a lower volume of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin employed at lower available yields. Average earning assets were $747.2 million in the fourth quarter of 2003 compared to $827.9 million in the fourth quarter of 2002. Earning asset Earning asset An asset that generates income, e.g., income from rental property. yields were 4.68% in the fourth quarter of 2003 and 5.19% in the fourth quarter of 2002. Interest expense was $3.04 million in the 2003 fourth quarter, a decrease of $1.84 million, or 37.7%, from the restated $4.88 million recorded in the 2002 fourth quarter. The decrease was due to generally lower rates paid on deposits and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings and a lower balance of higher-cost FHLB obligations. Interest bearing liabilities throughout the 2003 fourth quarter averaged $656.9 million compared with $750.9 million throughout the comparable 2002 quarter. Rates paid on average interest bearing liabilities were 1.84% for the fourth quarter of 2003 and 2.58% in the 2002 quarter. Net interest income for the 2003 quarter was $5.76 million, compared with the restated $5.95 million for the 2002 quarter. The resulting net interest margins were 3.06% in the 2003 quarter and 2.85% in the fourth quarter of 2002. Quarterly Noninterest Income and Expense Noninterest income for the fourth quarter of 2003 was $3.84 million, a decrease of $835,000, or 17.9%, from the $4.67 million reported for the fourth quarter of 2002. Gains on sales of mortgage loans decreased by $1.13 million, or 63.5%, to $652,000, from the $1.79 million reported in the 2002 fourth quarter reflecting a significantly lower volume of loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and funding activity during the 2003 quarter. Customer service fees, consisting of deposit service charges, ATM, debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and other fees, increased by $331,000, or 12.6%, to $2.95 million from the $2.62 million reported in the 2002 fourth quarter, reflecting increased transaction volumes and revised pricing schedules. Realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. from the sale of securities recorded during the 2003 quarter were $21,000 compared with net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of $84,000 during the fourth quarter of 2002. Noninterest expense for the quarter ended December 31, 2003, including the previously mentioned $523,000 of merger related expenses, was $8.17 million, compared with $8.55 million in the fourth quarter of 2002, a decrease of $381,000, or 4.5%. Salaries and employee benefits decreased by $858,000 to $3.89 million as volume related mortgage banking commissions were lower. Occupancy and equipment costs were $1.33 million in 2003's fourth quarter, an increase of $193,000, or 17.0%, over the fourth quarter of 2002. The majority of this increase represents increased rent expense related to the Company's leased premises. All other noninterest expense for the 2003 quarter, excluding merger related charges, totaled $2.43 million, a decrease of $239,000, or 9.0% from the $2.66 million reported for the 2002 quarter. Full Year Operating Results For the year ended December 31, 2003, net interest income was $23.23 million, compared with the restated $23.31 million in the same period of 2002, a decrease of $81,000, or 0.4%. The Company's interest income was affected by the maturity of higher yielding earning assets that were repriced or reinvested at lower available yields. Average earning assets for the year 2003 were $815.0 million, compared with $766.6 million throughout 2002. Interest bearing liabilities, comprised of deposits and borrowings, averaged $752.4 million throughout 2003 and the restated $699.3 million throughout 2002. The yield on earning assets was 4.82% for 2003 compared to 5.94% for 2002. The Company's cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. declined to 2.14% for 2003, compared with the restated 3.18% for 2002. The decrease resulted from lower rates paid on deposits and borrowings during 2003 and a change in the mix of interest bearing liabilities as a portion of the Company's longer-term, higher-cost borrowings were repaid during the year in connection with a previously announced balance sheet restructuring program. The resulting net interest margins were 2.85% for 2003 and 3.04% for 2002, as restated. Average earning assets for 2003 include a full year of MAFN earning assets and interest bearing liabilities compared with only a partial year, from the date of acquisition, in 2002. Noninterest income for the year 2003 was $18.52 million, compared with $13.75 million for the year 2002, an increase of $4.77 million, or 34.7%. Service charges and fees grew by more than $1.85 million, or 20.8% from 2002, reflecting a combination of increased transaction volumes due to organic growth and the MAFN acquisition, as well as changes in fee schedules. Realized securities gains were $898,000 in 2003 compared with realized securities losses of $157,000 during 2002. Gains on sales of mortgage loans totaled $5.74 million in 2003, an increase of $1.41 million, or 32.4%, over 2002. Heavy refinancing Refinancing An extension and/or increase in amount of existing debt. and other mortgage banking activity during the first half of 2003 offset markedly lower volumes throughout the second half of the year. Other noninterest income of $1.12 million in 2003 exceeded 2002 by $458,000 and included gains from the sale of bank owned real estate along with other miscellaneous gains and recoveries. Noninterest expense for 2003 was $36.11 million, up $9.26 million, or 34.5%, from the $26.85 million recorded in 2002. The increase in noninterest expense in 2003 includes the previously mentioned $1.7 million pre-tax charge related to the prepayment of FHLB debt, $600,000, pre-tax, in accounting and legal fees related to financial statement revision and re-audit, and $523,000 of merger related expenses coupled with increased volumes and activity resulting from internal growth and a full year of costs associated with the MAFN acquisition; commissions and professional fees associated with mortgage banking activities; volume related data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a costs; and increased expenditures for occupancy, marketing and advertising. Balance Sheet Data At December 31, 2003, total assets were $814.9 million, down $89.1 million, or 9.9% from $904.0 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002. Total loans at December 31, 2003 were $386.1 million, compared with $361.4 million at December 31, 2002, an increase of $24.7 million, or 6.8%. Short-term investments decreased by $71.8 million as excess funds were invested in portfolio securities. Available for sale securities declined by $9.1 million, or 2.6%, at year-end 2003 from 2002, as purchases and sales were effected throughout the year to improve margins and reduce interest rate risk. Loans held for sale declined by $24.6 million to $11.0 million from year-end 2002, a decline of 69.1%, as mortgage banking activity slowed. Deposits totaled $650.6 million at year end 2003, compared with $646.6 million at year-end 2002. Lower-cost demand, NOW, savings and money market accounts grew by $28.6 million, or 6.27%, to $485.1 million, while higher-cost term certificates decreased by $24.7 million, or 12.98%, to $165.5 million. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $58.7 million at December 31, 2003, compared with $57.8 million at December 31, 2002. Stockholders' equity per share was $14.61 per share at year-end 2003 and $15.42 at year end 2002. The change results from a combination of net income and proceeds from stock option exercises, net of dividends declared, unearned compensation and a decrease in the market value of investment securities, net of tax. At year-end 2003, the allowance for loan losses was $4.21 million, or 1.09% of total loans, compared with $4.21 million, or 1.17% of total loans at December 31, 2002. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. totaled $1.29 million, or 0.16% of total assets at year-end 2003, compared with $2.02 million, or 0.22% of total assets at year-end 2002. Net charge-offs for the fourth quarter of 2003 were $24,000. A provision for loan losses of $375,000 was recorded for 2003 compared with $225,000 for 2002. At December 31, 2003, the Company had 4,020,000 shares of common stock outstanding, compared with 3,746,000 shares at year-end 2002, reflecting the issuance of common stock in connection with the exercise of stock options during 2003. Fully diluted weighted average shares outstanding were 4,138,000 and 3,918,000, respectively, during the quarters ended December 31, 2003 and 2002. For the years ended December 31, 2003 and 2002, fully diluted weighted average shares outstanding were 4,035,000 and 3,510,000 respectively. Conference Call Abington Bancorp will hold a conference call with investors to discuss these results at 2:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today, January January: see month. 22, 2004. The call will be hosted by James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. P. McDonough McDonough is the name of several places in the United States:
About Abington Bancorp. Abington Bancorp, Inc. is a one-bank holding company for Abington Savings Bank. Abington Savings Bank is a Massachusetts-chartered savings bank with offices in Abington, Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. (Dorchester Dorchester, town, England Dorchester (dôr`chĭstər), town (1991 pop. 13,734), county seat of Dorset, S central England. Dorchester is a busy agricultural market, especially for sheep and lambs. ), Brockton, Canton Canton, cities, United States Canton. 1 City (1990 pop. 13,922), Fulton co., W central Ill., in the corn belt; inc. 1849. It is a trade and industrial center for a coal and farm area. 2 Town (1990 pop. 18,530), Norfolk co. , Cohasset, Halifax, Hanover Hanover, city, Germany Hanover, Ger. Hannover, city (1994 pop. 524,820), capital of Lower Saxony, N Germany, on the Leine River and the Midland Canal. , Hanson, Holbrook, Hull, Kingston, Milton, Pembroke, Quincy, Randolph, Weymouth and Whitman. Its deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. and in full by the additional coverage provided by the Depositors Insurance Fund The Depositors Insurance Fund was created by the state government of Massachusetts in response to the large number of Massachusetts bank failures during the Great Depression. The Federal Deposit Insurance Corporation was inspired by this fund. . Certain statements herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ," within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated, including the changing of regional and national economic conditions, changes in the real estate market, changes in levels of market interest rates, credit risks on lending activities, and competitive and regulatory factors. All forward-looking statements are necessarily speculative and undue reliance should not be placed on any such statements, which are accurate only as of the date made. The Company disclaims any duty to update such forward looking statements.
ABINGTON BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands) December 31 December 31
2003 2002
Assets
Cash and due from banks $27,536 $31,238
Short-term investments 6,034 77,878
Total cash and cash equivalents 33,570 109,116
Loans held for sale 10,994 35,629
Securities available for sale - at market
value 343,236 352,339
Loans 386,091 361,434
Less: Allowance for possible loan loss (4,214) (4,212)
Loans, net 381,877 357,222
Federal Home Loan Bank stock, at cost 14,042 14,042
Banking premises and equipment, net 11,583 13,364
Goodwill 5,771 5,768
Intangible assets 4,018 4,615
Other assets 9,844 11,928
$814,935 $904,023
Liabilities and Stockholders' Equity
Deposits $650,598 $646,628
Short-term borrowings 8,469 11,006
Long-term debt 79,135 167,009
Company obligated, mandatorily
redeemable securities 13,041 13,041
Accrued taxes and expenses 3,499 6,789
Other liabilities 1,480 1,770
Total liabilities 756,222 846,243
Commitments and contingencies
Stockholders' equity:
Serial preferred stock, $.10 par value,
none issued
Common stock, $.10 par value 587 555
Additional paid-in capital 39,707 34,340
Retained earnings 36,490 35,106
76,784 70,001
Treasury stock (19,352) (17,584)
Compensation plans (225) 120
Other accumulated comprehensive income -
net unrealized gain (loss) on available
for sale securities, net of taxes 1,506 5,243
Total stockholders' equity 58,713 57,780
$814,935 $904,023
ABINGTON BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
2003 2002 2003 2002
(Restated) (Restated)
(Dollars in thousands, except
per share data)
Interest and dividend income:
Interest and fees on loans $5,383 $6,630 $23,515 $25,300
Interest on mortgage-backed
securities 3,033 3,545 13,697 17,306
Interest on bonds and
obligations 191 426 1,162 1,979
Dividend income 98 134 553 544
Interest on short-term
investments 102 98 374 397
Total interest and
dividend income 8,807 10,833 39,301 45,526
Interest expense:
Interest on deposits 1,780 2,578 8,235 10,802
Interest on short-term
borrowings 21 35 455 176
Interest on long-term debt 962 1,991 6,261 10,117
Interest on company
obligated mandatorily
redeemable securities 280 280 1,120 1,120
Total interest expense 3,043 4,884 16,071 22,215
Net interest income 5,764 5,949 23,230 23,311
Provision for loan losses - 150 375 225
Net interest income after
provision for loan losses 5,764 5,799 22,855 23,086
Noninterest income
Customer service fees 2,952 2,621 10,756 8,904
Gain (loss) on sales of
securities, net (21) 84 898 (157)
Gain on sales of mortgage
loans, net 652 1,786 5,743 4,338
Other 252 179 1,124 666
Total noninterest income 3,835 4,670 18,521 13,751
Noninterest expense:
Salaries and employee
benefits 3,893 4,751 18,039 14,776
Occupancy and equipment
expenses 1,326 1,133 4,884 3,869
Prepayment penalty on
borrowed funds - - 1,722 -
Merger related expenses 523 - 523 -
Other noninterest expense 2,425 2,664 10,942 8,202
Total noninterest expense 8,167 8,548 36,110 26,847
Income before income taxes 1,432 1,921 5,266 9,990
Provision for income taxes 666 793 2,186 3,816
Net income $766 $1,128 $3,080 $6,174
Basic earnings per share $0.19 $0.30 $0.80 $1.83
Diluted earnings per share $0.19 $0.29 $0.76 $1.76
Weighted average common
shares (Basic) 3,956,000 3,736,000 3,852,000 3,371,000
Common stock equivalents 182,000 182,000 183,000 139,000
Weighted average common
shares (Diluted) 4,138,000 3,918,000 4,035,000 3,510,000
ABINGTON BANCORP, INC.
SELECTED FINANCIAL DATA
(Unaudited)
December 31 December 31
2003 2002
(Restated)
(In thousands, except per
share data)
Period End:
Short-term investments $6,034 $77,878
Securities available for
sale, at market 343,236 352,339
Loans held for sale 10,994 35,629
Portfolio loans 386,091 361,434
Allowance for loan losses (4,214) (4,212)
Total assets 814,935 904,023
Deposits 650,598 646,628
Borrowed funds 87,604 178,015
Company obligated,
mandatorily redeemable
securities 13,041 13,041
Stockholders' equity 58,713 57,780
Book value per share $14.61 $15.42
Common shares outstanding 4,020 3,746
Quarter Ended Year Ended
December 31 December 31
Year and Quarter Ended: 2003 2002 2003 2002
(Restated) (Restated)
Net interest income $5,764 $5,949 $23,230 $23,311
Provision for loan losses - 150 375 225
Non-interest income 3,835 4,670 18,521 13,751
Non-interest expense 8,167 8,548 36,110 26,847
Provision for income tax 666 793 2,186 3,816
Net income 766 1,128 3,080 6,174
Weighted average common
shares (Basic) 3,956 3,736 3,852 3,371
Weighted average dilutive
options 182 182 183 139
Fully diluted weighted
average shares 4,138 3,918 4,035 3,510
Basic earnings per share $0.19 $0.30 $0.80 $1.83
Fully diluted earnings per
share $0.19 $0.29 $0.76 $1.76
Dividends declared $0.11 $0.11 $0.44 $0.41
Quarterly Yield Analysis
Yield on loans 5.57% 6.51% 6.12% 6.87%
Yield on investments 4.07% 4.17% 3.88% 5.30%
Yield on short-term
investments 1.01% 1.18% 1.11% 1.62%
Yield on earning assets 4.68% 5.19% 4.82% 5.94%
Rate paid on deposits 1.27% 1.83% 1.45% 2.24%
Rate paid on borrowings 4.39% 4.48% 3.90% 5.06%
Rate paid on capital trust
securities 8.59% 8.59% 8.59% 8.59%
Rate paid on interest
bearing liabilities 1.84% 2.58% 2.14% 3.18%
Interest rate spread 2.84% 2.61% 2.69% 2.76%
Net interest margin 3.06% 2.85% 2.85% 3.04%
Loan Applications -
Mortgage Banking: 2003 2002
Quarter 1 $195,000 $66,600
Quarter 2 192,000 69,300
Quarter 3 90,000 133,700
Quarter 4 64,000 156,300
Cumulative $541,000 $425,900
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