Abington Bancorp Reports 10.4% Increase in Earnings Through Third Quarter.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)--Oct. 24, 2001 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 NMS See NetWare Management System. : ABBK) a one-bank holding company for 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 announced its earnings for the third quarter and nine-months ended September September: see month. 30, 2001. Net income for the three-months ended September 30, 2001 grew 5.0% to $1,239,000 or $.38 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 compared to $1,180,000 or $.37 per diluted share for the corresponding period in 2000. For the nine-month period ended September 30, 2001, net income was $3,815,000 or $1.18 per diluted share, compared to $3,455,000 or $1.08 per diluted share for the same period in 2000. This represents an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10.4%. "Earnings are a direct result of the success of our retail banking franchise. Growth in customer service fees, our ability to attract new customers and our improvement in selling add-on A purchase of additional goods before payment is made for goods already purchased. An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. products and services to core customers have been driving factors to our success," noted 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:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of approximately 16.3% in the first nine months of 2001. Checking accounts grew 7.4% from 44,600 at September 30, 2000 to 47,900 at September 30, 2001. "Retail banking has been and continues to be a core strength of our franchise", added McDonough. Mr. McDonough continued by stating, "Net interest margins have also been stronger in 2001 at 3.32% and 3.22% for the quarter and nine-month periods ended September 30, 2001, respectively as compared to 2.93% and 2.99% in 2000, respectively. The increase in margins is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's continued success in attracting core deposit relationships as well as a steepening of the yield curve Steepening of the yield curve A change in the yield curve where the spread between the yield on a long-term and short-term Treasury has increased. Compare flattening of the yield curve and butterfly shift. . This has allowed the Company to decrease overall 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. on wholesale funding rapidly despite the beginning of declines in the rates earned on assets." "Additionally, mortgage banking activities continued to contribute to our level of success in 2001", noted McDonough. "This area of our business resulted in a contribution of approximately $.04 and $.11 per diluted share for the quarter and nine-month period ended September 30, 2001 as compared to a breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations or slight loss on a stand alone basis for the same periods in 2000. This is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market for residential 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 refinancings as well as the Company's solid position in the marketplace as a mortgage loan provider. The current outlook for mortgage banking activities for the fourth quarter of 2001 is positive although the general expectation is for some seasonal decline in application volume." At September 30, 2001, assets totaled $791,630,000, and net loans and deposits were $424,424,000 and $486,906,000, respectively. 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 $41,781,000 or 5.3% of total assets. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: at September 30, 2001 was $13.43. Abington Savings Bank is a Massachusetts-chartered savings bank with offices in Abington, Brockton Brockton, industrial city (1990 pop. 92,788), Plymouth co., E Mass.; settled c.1700, set off from Bridgewater 1821, inc. as a city 1881. It formerly had a large shoe and leather products industry. , 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 Cohasset can refer to:
Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. , 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 Hanson may refer to:
Hull, city (1991 pop. 60,707), SW Que., Canada, at the confluence of the Ottawa and Gatineau rivers, opposite Ottawa; inc. 1875. Hull has a hydroelectric power station. , Kingston Kingston, city, Canada Kingston, city (1991 pop. 56,597), S Ont., Canada, on Lake Ontario, near the head of the St. Lawrence River and at the end of Rideau Canal from Ottawa. Kingston has probably the best harbor on the lake. , Pembroke Pembroke, town, Canada Pembroke (pĕm`brōk), town (1991 pop. 13,997), SE Ont., Canada, NW of Ottawa, on the Ottawa River. It is a lumbering center and also has steel and electric-products factories. , Randolph Randolph, town (1990 pop. 30,093), Norfolk co., E Mass.; settled c.1710, set off from Braintree and inc. 1793. A suburb of Boston, it has diverse light manufacturing. and Whitman Whitman, town (1990 pop. 13,240), Plymouth co., SE Mass., S of Boston; settled c.1670, set off from Abington and inc. 1875. It is an industrial town that manufactures shoes, plastics, foundry products, and textile machinery. The Toll House (1709) is restored. . Its deposits are insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. 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 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. ," and actual results may differ from those contemplated by these statements. The Bank disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
ABINGTON BANCORP, INC.
Operating Results
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
(unaudited) (unaudited)
2001 2000 2001 2000
Interest and dividend
income $ 12,884 $ 12,336 $ 38,176 $ 35,853
Net interest income 5,999 4,947 17,019 14,895
Provision for possible
loan losses 510 - 840 60
Non-interest income:
Loan fees 59 80 203 239
Customer service fees 1,963 1,739 5,635 4,475
Gains (losses) on
securities, net 16 99 (47) 402
Gains on mortgages 642 336 2,006 878
Gain on sale of other
real estate - - - -
Other 72 127 312 357
Total non-interest
income 2,752 2,381 8,109 6,351
Non-interest expenses:
Salaries and employee
benefits 3,082 2,926 9,389 8,033
Occupancy and
equipment 826 718 2,515 2,392
Trust preferred
securities expenses 280 280 840 840
Other non-interest
expense 2,059 1,592 5,559 4,579
Total non-interest
expense 6,247 5,516 18,303 15,844
Income before income
taxes 1,994 1,812 5,985 5,342
Net income 1,239 1,180 3,815 3,455
Dividends per share $ .10 $ .09 $ .30 $ .27
Basic - earnings per
share $ .40 $ .39 $ 1.23 $ 1.13
Weighted average common
shares (Basic) 3,111,000 3,055,000 3,099,000 3,068,000
Diluted - earnings per
share $ .38 $ .37 $ 1.18 $ 1.08
Weighted average common
shares and share
equivalents (Diluted) 3,262,000 3,167,000 3,235,000 3,191,000
ABINGTON BANCORP, INC.
Balance Sheet Data
(Dollars in thousands, except per share data)
September 30, December 31, September 30,
2001 2000 2000
(unaudited) (unaudited)
Investments(1) $ 287,825 $ 290,211 $ 277,772
Loans, net 424,424 374,138 382,266
Allowance for Loan Losses 4,653 3,856 3,808
Intangible Assets:
Goodwill 1,739 1,961 2,035
Core Deposits 632 749 788
Total Assets 791,630 728,249 728,418
Deposits 486,906 454,747 437,069
Borrowings 217,760 222,132 241,495
Stockholders' Equity:
Equity, excluding effect
of unrealized gain (loss)
on securities, net of
taxes 38,493 35,500 34,641
Less: Unrealized gain
(loss) on Securities, net
of taxes 3,288 (1,195) (1,994)
Total $ 41,781 $ 34,305 $ 32,647
Book value per share $ 13.43 $ 11.18 $ 10.65
Shares outstanding 3,111,000 3,068,000 3,067,000
Branch Openings
Randolph April 1998
Hanson September 1998
Brockton May 1999
Canton November 2000
Hanover July 2001
(1) All of the Company's investments are classified as available for
sale even though management does not necessarily have any plans or
intentions to sell these securities in the immediate future. As
required by accounting rules, these securities are marked to market,
net of applicable taxes, through shareholders equity.
ABINGTON BANCORP, INC.
Yields and Returns
Quarter Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Return on assets .62% .66% .66% .66%
Return on equity 12.58% 15.44% 13.68% 16.00%
Net overhead ratio(1) 1.78% 1.69% 1.77% 1.74%
Yields
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Loans 7.74% 7.73% 7.73% 7.65%
Bonds and Government
Obligations 6.80% 7.01% 7.30% 6.91%
Mortgage Backed
Securities 6.48% 6.89% 6.64% 6.69%
Equities and FHLB Stock 4.60% 4.95% 4.85% 4.65%
Earning assets 7.13% 7.31% 7.23% 7.20%
Non-time deposits(2) 1.30% 1.38% 1.32% 1.38%
Time deposits 5.61% 5.67% 5.84% 5.38%
Borrowed funds 5.50% 6.61% 5.81% 6.22%
Cost of funds 3.85% 4.43% 4.06% 4.26%
Interest margin 3.32% 2.93% 3.22% 2.99%
(1) Excludes the accrued distributions (expenses) related to trust
preferred securities.
(2) Includes the effect of average non-interest bearing DDAs which
were $64,008,000 and $60,769,000, respectively, for the three- and
nine-month periods ended September 30, 2001 and $53,084,000 and
$48,257,000, respectively, for the three- and nine-month periods ended
September 30, 2000.
ABINGTON BANCORP, INC.
Average Balances
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Loans $ 386,730 $ 379,621 $ 377,730 $ 383,329
Bonds and Government
Obligations 51,681 85,819 65,304 78,878
Mortgage Backed Securities 265,222 187,222 239,363 180,281
Equities and FHLB Stock 19,231 21,981 21,349 21,221
Earning assets 722,864 674,643 703,746 663,709
Non-time deposits 285,708 246,123 271,756 235,789
Time deposits 189,611 173,672 194,507 172,208
Borrowed funds 239,855 247,145 228,307 247,567
ABINGTON BANCORP, INC.
Asset Quality Statistics
(Dollars in thousands)
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
Non accrual loans $ 589 $ 549 $ 280
Loans greater than 90 days still
accruing 2 7 -
Non performing loans 591 556 280
Other real estate owned 355 - -
Non performing assets $ 946 $ 556 $ 280
Loan loss reserve to non
performing loans 787.3% 693.5% 1,360.0%
Loan loss reserve to total loans 1.08% 1.02% 1.00%
Delinquency ratio .32% .22% .46%
Tier I capital leverage ratio 6.06% 6.13% 5.95%
Total risk-based capital ratio 12.99% 12.14% 11.83%
Nine Months Twelve Months Nine Months
Ended Ended Ended
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
Allowance for loan losses,
beginning of period $ 3,856 $ 3,701 $ 3,701
Charge-offs (169) (284) (182)
Recoveries 126 279 229
Net (charge-offs) recoveries (43) (5) 47
Provision for possible loan
losses 840 160 60
Allowance for loan losses
end of period $ 4,653 $ 3,856 $ 3,808
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands)
Quarter Ended
September 30,
2001
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $ 12,873 $ 143 $ 2 $ (134) $ 12,884
Net interest income 5,964 33 2 - 5,999
Provision for possible
loan losses 510 - - - 510
Total non-interest
income 2,109 653 - (10) 2,752
Total non-interest
expense 5,492 475 280 - 6,247
Net income (loss) 1,318 114 (186) (7) 1,239
Quarter Ended
September 30,
2000
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $ 12,354 $ 74 $ 13 $ (105) $ 12,336
Net interest income 4,935 (1) 13 - 4,947
Provision for possible
loan losses - - - - -
Total non-interest
income 2,045 367 - (31) 2,381
Total non-interest
expense 4,824 370 322 - 5,516
Net income (loss) 1,412 (10) (202) (20) 1,180
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands)
Nine Months Ended
September 30,
2001
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $ 38,192 $ 454 $ 14 $ (484) $ 38,176
Net interest income 16,961 44 14 - 17,019
Provision for possible
loan losses 840 - - - 840
Total non-interest
income 6,102 2,017 - (10) 8,109
Total non-interest
expense 16,032 1,431 840 - 18,303
Net income (loss) 4,029 340 (547) (7) 3,815
Nine Months Ended
September 30,
2000
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $ 35,883 $ 234 $ 51 $ (315) $ 35,853
Net interest income 14,829 15 51 - 14,895
Provision for possible
loan losses 60 - - - 60
Total non-interest
income 5,473 1,068 - (190) 6,351
Total non-interest
expense 13,753 1,141 950 - 15,844
Net income (loss) 4,235 (64) (591) (125) 3,455
ABINGTON BANCORP, INC.
Other Key Loan and Deposit Information
(Dollars in thousands)
September 30, December 31, September 30,
2001 2000 2000
Loan portfolio:
Residential $ 296,489 $ 261,702 $ 275,746
Home equity 28,095 27,415 26,189
Commercial real estate 82,385 65,238 60,814
Commercial 14,729 15,981 15,993
Other 7,379 7,658 7,332
Total loans and loans held
for sale $ 429,077 $ 377,994 $ 386,074
Deposits:
DDA's $ 69,394 $ 62,025 $ 61,622
Now's 76,575 67,246 68,401
Savings & Money Market 151,234 135,494 125,904
Core deposits $297,203 $ 264,765 $ 255,927
Time deposits 189,703 189,982 181,142
Total Deposits $486,906 $ 454,747 $ 437,069
Loan Originations - Mortgage Banking
(Dollars in thousands)
Applications(1): 2001 2000
Quarter 1 $ 76,800 $ 40,700
Quarter 2 61,900 37,900
Quarter 3 65,900 34,300
Quarter 4 TBD 34,800
Year to Date $ 204,600 $147,700
(1)Applications typically take 30 to 60 days to convert into loan
sales.
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