Abington Bancorp Reports First Quarter Earnings.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)--April 13, 2000 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 first quarter 2000. For the three-month period ended March 31, 2000, net income was $1,133,000 or $.35 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 $1,061,000 or $.30 per diluted share for 1999. This represents an increase per diluted share of 16.7%. 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:
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 22% in the first quarter of 2000, compared to a 4.2% increase in the same period in 1999. "The first quarter of 2000 reflected continued positive trends in the performance of our supermarket branches", McDonough noted. The results of the supermarket branches for the first three months of 2000 reduced earnings by approximately $.01 per diluted share overall as compared to $.03 per dilutive share for the same period in 1999. McDonough also said, "we are beginning to see nearly all of our supermarket branches moving out of their initial investment period, where the results are expected to be diluted, into a period of profitability. As of the first quarter of 2000, only the 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. branch, which was opened in May 1999, was having a dilutive impact on earnings. At the same time we have seen each of these branches reach 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 level by the seventh quarter of operations. The trends we have seen in Brockton show that it will likely achieve this level within the next two quarters." 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 grew approximately 14.3% to $73.1 million at March 31, 2000, compared to March 31, 1999. "This trend has continued despite heavy pricing pressures on good credits," noted McDonough. "Also, we have 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 us, which tends to produce more stable loan balances and provides more deposit relationships as well." The Company also had no provision for possible loan losses during the first quarter of 2000 as compared to $190,000 for the first quarter of 1999. "The reduction is attributable to a large recovery of a previously charged-off loan of approximately $90,000, as well as the continued strength of other asset quality factors that management uses to evaluate the adequacy of loan loss reserve levels", McDonough said. The reserve to 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. is approximately 643.9% at March 31, 2000 as compared to 423.9% as of March 31, 1999. At March 31, 2000, assets totaled $703,050,000, and net loans and deposits were $387,444,000 and $411,290,000, 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 $28,397,000 or 4.0% 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 March 31, 2000, was $9.37. Abington Savings Bank is a Massachusetts-chartered savings bank with offices in Abington, Brockton, 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 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 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
March 31,
(unaudited)
2000 1999
Interest and dividend income $ 11,565 $ 9,964
Net interest income 4,936 4,673
Provision for possible loan losses -- 190
Non-interest income:
Loan fees 83 97
Customer service fees 1,125 947
Gains on securities 245 177
Gains on mortgages 243 163
Gain on sale of other real estate -- --
Other 101 95
Total non-interest income 1,797 1,479
Non-interest expenses:
Salaries and employee benefits 2,514 2,090
Occupancy and equipment 904 753
Trust preferred securities expense 280 261
Other non-interest expense 1,283 1,195
Total non-interest expense 4,983 4,299
Income before income taxes 1,750 1,663
Net income 1,133 1,061
Dividends per share $ .09 $ .20
Basic - earnings per share $ .36 $ 32
Weighted average common shares (Basic) 3,112,000 3,347,000
Diluted - earnings per share $ .35 $ .30
Weighted average common shares
and share equivalents (Diluted) 3,249,000 3,537,000
ABINGTON BANCORP, INC.
Balance Sheet Data
(Dollars in thousands, except per share data)
March 31, December 31, March 31,
2000 1999 1999
Total assets $ 703,050 $ 696,250 $ 599,981
Loans, net 387,444 388,710 359,173
Allowance for loan losses 3,767 3,701 3,243
Investments 258,495 235,623 197,934
Deposits 411,290 389,692 367,700
Stockholders' equity 28,397 27,832 33,049
Book value per share $ 9.37 $ 8.72 $ 9.87
Shares outstanding 3,030,000 3,193,000 3,347,000
Supermarket Branch Openings
Cohasset August 1997
Randolph April 1998
Hanson September 1998
Brockton May 1999
Canton Tentative - October 2000
ABINGTON BANCORP, INC.
Other Key Statistics
Quarter Ended
March 31,
2000 1999
Return on assets .66% .71%
Return on equity 16.52% 12.82%
Net overhead ratio(A) 1.79% 1.85%
Yields
Quarter Ended
March 31,
2000 1999
Loans 7.58% 7.58%
Bonds and government obligations 6.81% 6.62%
Mortgage backed securities 6.53% 6.66%
Equities and FHLB stock 4.27% 4.37%
Earning assets 7.11% 7.19%
Non-time deposits(B) 1.41% 1.42%
Time deposits 5.16% 5.22%
Borrowed funds 5.92% 5.50%
Cost of funds(B) 4.14% 3.91%
Interest margin 3.03% 3.37%
(A) Excludes the accrued distributions (expenses) related to trust
preferred securities issued in June 1998.
(B) Includes the effect of average non-interest bearing DDAs which
were $46,673,000 and $42,121,000 in 2000 and 1999, respectively.
ABINGTON BANCORP, INC.
Asset Quality Statistics
(Dollars in thousands, except share data)
March 31, December 31, March 31,
2000 1999 1999
Non accrual loans $585 $616 $698
Loans greater than 90 days
still accruing -- -- 67
Non performing loans 585 616 765
Other real estate owned -- -- --
Non performing assets $585 $616 $765
Loan loss reserve to non
performing loans 643.9% 600.8% 423.9%
Loan loss reserve to total loans .97% .95% .89%
Delinquency ratio .37% .28% .19%
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands, except share data)
Quarter Ended
March 31,
2000
Community Mortgage(A)
Banking Banking Other Elimination Consolidated
Total interest
income $11,551 $67 $27 $(80) $11,565
Net interest income 4,895 14 27 -- 4,936
Provision for
possible
loan losses -- -- -- -- --
Total non-interest
income 1,554 293 -- (50) 1,797
Total non-interest
expense 4,274 395 314 -- 4,983
Net income (loss) 1,419 (63) (190) (33) 1,133
Efficiency Ratio(B) 66.3 % 128.7% N/A N/A 69.8%
Quarter Ended
March 31,
1999
Community
Banking Other Elimination Consolidated
Total interest income $9,964 $ 27 $ (27) $9,964
Net interest income 4,646 27 -- 4,673
Provision for
possible loan losses 190 -- -- 190
Total non-interest income 1,479 -- -- 1,479
Total non-interest expense 3,985 314 -- 4,299
Net income (loss) 1,269 (208) -- 1,061
Efficiency Ratio(B) 65.1% N/A N/A 65.6%
(A) The Company considers the acquisition of Old Colony Mortgage
which was completed on April 1, 1999 to constitute the
establishment of a mortgage banking segment.
(B) Excludes the effect of paid and accrued distributions on trust
preferred securities.
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