Abington Bancorp Reports 1998 and Fourth Quarter Earnings.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. 8, 1999--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 1998. For the year ended Dec. 31, 1998, net income was $4,371,000 or $1.17 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 $4,378,000 or $1.10 per diluted share for 1997. For the three month period ended Dec. 31, 1998, net income was $1,016,000 or $.29 per share on a diluted basis as compared to $1,103,000 or $.28 per share on a diluted basis on 1997. Commenting on these results, President and Chief Executive Officer 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:
The Bank opened its first supermarket branch in August 1997; a second supermarket branch opened in early April and a third opened in September September: see month. . "This investment, as anticipated, has had an unfavorable impact on 1998 earnings of approximately $.09 per diluted share. However, we are confident our retail strategies and product lines combined with innovative supermarket banking methodologies, should enhance core earnings and franchise value in future periods." McDonough also noted, "We are pleased with the progress of these supermarket branches as they continue to exceed our internal profitability forecasts." The net interest spread for the year ended Dec. 31, 1998, was approximately 3.13%, compared to 3.29% in 1997. This reduction in interest margin is attributable to 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. activity on higher yielding loans and mortgage-backed Mortgage-backed may refer to:
"The fact that customer service fees grew 16.5% in this year compared to 1997 shows the ongoing success of our retail marketing strategies, including our High Performance Checking Program, which continues to draw new customers," said McDonough. Customer service fees were $3,816,000 for the year ended Dec. 31, 1998, compared to $3,276,000 for 1997. Business banking trends also continue to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. as the Bank's business banking portfolio has grown approximately 27.6%, or $12,981,000, from Dec. 31, 1997, to Dec. 31, 1998. "This trend has continued despite heavy pricing pressures on good credits," noted McDonough. McDonough also explained, "We have also been able to obtain more non-transaction oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. business loans over the past year. These borrowers are more focused on developing a business relationship with their bank which tends to produce more stable loan balances and provides more deposit relationships as well." -0-
Abington Bancorp Inc.
Operating Results
(Dollars in thousands, except per share data)
Three Months Ended
December 31
-----------
(unaudited)
1998 1997
---- ----
Interest and dividend income $ 9,912 $ 9,312
Net interest income 4,499 4,061
Provision for possible loan losses 190 157
Non-interest income 1,754 1,436
Non-interest expenses 4,498 3,621
Income before income taxes 1,565 1,719
Net income 1,016 1,103
Dividends per share $ .05 $ .05
Basic - earnings per share $ .30 $ .30
Weighted average common shares (Basic) 3,347,000 3,654,000
Diluted - earnings per share $ .29 $ .28
Weighted average common shares
and share equivalents (Diluted) 3,545,000 3,933,000
Year Ended
December 31
-----------
(unaudited)
1998 1997
---- ----
Interest and dividend income $ 38,442 $ 36,297
Net interest income 16,857 16,206
Provision for possible loan losses 760 630
Non-interest income 6,909 4,986
Non-interest expenses 16,266 13,505
Income before income taxes 6,739 7,057
Net income 4,371 4,378
Dividends per share $ .30 $ .20
Basic - earnings per share $ 1.25 $ 1.18
Weighted average common shares (Basic) 3,491,000 3,716,000
Diluted - earnings per share $ 1.17 $ 1.10
Weighted average common shares
and share equivalents (Diluted) 3,722,000 3,966,000
Abington Bancorp Inc.
Balance Sheet Data
(Dollars in thousands, except per share data)
December 31 December 31
1998 1997
---- ----
(unaudited)
Total assets $ 591,151 $ 531,986
Loans, net 360,735 330,792
Allowance for loan losses 3,077 2,280
Deposits 363,953 324,934
Stockholders' equity 33,060 36,321
Book value per share $ 9.88 $ 9.99
Shares outstanding 3,347,000 3,637,000
Abington Bancorp Inc.
Other Key Statistics
(Dollars in thousands, except per share data)
Dec. 31, Dec. 31,
1998 1997
---- ----
Non accrual loans $ 681 $ 622
Loans greater than 90 days still accruing 50 91
-------- --------
Non performing loans 731 713
Other real estate owned -- 265
-------- --------
Non performing assets $ 731 $ 978
-------- --------
Loan loss reserve to non performing loans 420.9% 319.8%
Delinquency ratio .36% .42%
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
---- ----
Return on assets .79% .87%
Return on equity 12.68% 12.59%
Efficiency ratio 66.1%(b) 63.7%
Shares repurchased 574,100 (a) 165,000 (a)
Cost of shares repurchased $ 9,581 $ 2,228
Net overhead ratio 1.69%(b) 1.81%
(a) Represents cumulative shares repurchased program to date for each
respective period presented. In March 1997, the Company announced
a 10% buyback program. The total shares authorized to be
repurchased under this program was 375,000. Additionally, on
February 24, 1998, the Board of Directors authorized management
of the Company to repurchase an additional 10% or 347,000 shares
of common stock once the initial program had concluded.
(b) Excludes the accrued distributions (expenses) related to trust
preferred securities.
-0- At Dec. 31, 1998, assets totaled $591,151,000, and net loans and deposits were $360,735,000 and $363,953,000, 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 $33,060,000 or 5.59% 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 Dec. 31, 1998, was $9.88. At Dec. 31, 1998, non-performing assets were $731,000. Abington Savings Bank is a Massachusetts-chartered savings bank with offices in Abington, 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. , Hanson Hanson may refer to:
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, Randolph and Whitman. Its deposits are insured 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. |
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