Abington Bancorp Reports Second 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)--July 15, 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 the second quarter 1999. For the three-month period ended June June: see month. 30, 1999, net income was $1,082,000 or $.31per 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 $1,154,000 or $.30 per diluted share for the same quarter in 1998. 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 results for the second quarter of 1999 reflect the impact of four new supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. branches that opened between August 1997 and May 1999. "This investment, as anticipated, has had an unfavorable impact on earnings in 1998 and 1999," McDonough said. "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. We are pleased with the progress of these supermarket branches as they continue to exceed our internal profitability forecasts." The results of these branches reduced the second quarter results in 1999 by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $.04 per share on a fully diluted basis as compared to approximately $.02 per fully diluted share for the second quarter of 1998, which reflected two branch openings. 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 19%, to $64 million at June 30, 1999, compared to June 30, 1998. "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 reduced provisions for possible loan losses during the second quarter of 1999 to $70,000 from $190,000 for the first quarter of 1998. "The reduction is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk 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 494% at June 30, 1999. At June 30, 1999, assets totaled $630,637,000, and net loans and deposits were $366,594,000 and $378,972,000, 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 $30,353,000 or 4.8% 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 June 30, 1999, was $9.32. 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. , 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:
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 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. -0-
ABINGTON BANCORP, INC.
Operating Results
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
(unaudited) (unaudited)
1999 1998 1999 1998
Interest and
dividend income $ 10,237 $ 9,482 $ 20,201 $ 18,864
Net interest income 4,768 4,011 9,441 8,046
Provision for possible
loan losses 70 190 260 380
Non-interest income:
Loan fees 91 124 188 239
Customer service fees 1,088 922 2,035 1,783
Gains on securities 228 657 405 1,022
Gains on mortgages 359 146 522 214
Gain on sale of other
real estate 68 43 68 43
Other 124 70 219 154
Total non-interest
income 1,958 1,962 3,437 3,455
Non-interest expenses:
Salaries and employee
benefits 2,389 1,910 4,479 3,663
Occupancy and
equipment 821 636 1,574 1,312
Trust preferred
securities
expense 299 66 560 66
Other non-interest
expense 1,452 1,367 2,647 2,543
Total non-interest
expense 4,961 3,979 9,260 7,584
Income before income
taxes 1,695 1,804 3,358 3,537
Net income 1,082 1,154 2,143 2,290
Dividends per share $ .05 $ .05 $ .25 $ .20
Basic - earnings
per share $ .33 $ .32 $ .65 $ .64
Weighted average
common shares
(Basic) 3,272,000 3,560,000 3,310,000 3,573,000
Diluted - earnings
per share $ .31 $ .30 $ .61 $ .60
Weighted average
common shares
and share
equivalents
(Diluted) 3,464,000 3,803,000 3,501,000 3,828,000
ABINGTON BANCORP, INC.
Balance Sheet Data
(Dollars in thousands, except per share data)
June 30, December 31, June 30,
1999 1998 1998
(unaudited) (unaudited)
Total assets $ 630,637 $ 591,151 $ 546,208
Loans, net 366,594 360,735 342,461
Allowance for loan losses 3,382 3,077 2,652
Deposits 378,972 363,953 345,838
Stockholders' equity 30,353 33,060 34,779
Book value per share $ 9.32 $ 9.88 $ 9.85
Shares outstanding 3,256,000 3,347,000 3,532,000
ABINGTON BANCORP, INC.
Other Key Statistics
Quarter Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Return on assets .70% .85% .71% .85%
Return on equity 13.63% 13.23% 13.18% 13.04%
Net overhead ratio(a) 1.87% 1.51% 1.86% 1.59%
Yields
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Loans 7.57% 7.84% 7.58% 7.82%
Investments and other 6.28% 6.42% 6.37% 6.56%
Earning assets 7.08% 7.36% 7.13% 7.39%
Non-time deposits 1.35% 1.60% 1.50% 1.61%
Time deposits 5.05% 5.67% 5.13% 5.63%
Borrowed funds 5.50% 5.90% 5.50% 5.89%
Cost of funds 3.83% 4.31% 3.99% 4.31%
Interest margin 3.30% 3.11% 3.33% 3.15%
Interest spread 3.25% 3.05% 3.14% 3.08%
(a) Excludes the accrued distributions (expenses) related to trust
preferred securities issued in June 1998.
ABINGTON BANCORP, INC.
Asset Quality Statistics
(Dollars in thousands, except share data)
June 30, June 30,
1999 1998
Non accrual loans $685 $744
Loans greater than 90 days still accruing -- 6
Non performing loans 685 750
Other real estate owned -- --
Non performing assets $685 $750
Loan loss reserve to non performing loans 493.7% 354.0%
Delinquency ratio .40% .33%
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands, except share data)
Three Months Ended
June 30,
1999
Community Mortgage(b)
Banking Banking Other Consolidated
Total interest income $10,185 $ 52 $ -- $10,237
Net interest margin 4,765 3 -- 4,768
Provision for possible
loan losses 70 -- -- 70
Total non-interest income 1,599 359 -- 1,958
Total non-interest expense 4,252 395 314 4,961
Net income (loss) 1,293 (20) (191) 1,082
Efficiency Ratio(c) 66.8% 109.1% N/A 69.6%
Three Months Ended
June 30,
1998
Community
Banking Other Consolidated
Total interest income $9,482 -- $9,482
Net interest margin 4,011 -- 4,011
Provision for possible
loan losses 190 -- 190
Total non-interest income 1,962 -- 1,962
Total non-interest expense 3,853 126 3,979
Net income (loss) 1,234 (80) 1,154
Efficiency Ratio(c) 64.5% N/A 65.5%
(b) 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.
(c) Excludes the effect of paid and accrued distributions on trust
preferred securities.
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands, except share data)
Six Months Ended
June 30,
1999
Community Mortgage(d)
Banking Banking Other Consolidated
Total interest income $20,149 $ 52 $ -- $20,201
Net interest margin 9,438 3 -- 9,441
Provision for possible
loan losses 260 -- -- 260
Total non-interest income 3,078 359 -- 3,437
Total non-interest expense 8,237 395 628 9,260
Net income (loss) 2,544 (20) (381) 2,143
Efficiency Ratio(e) 65.8% 109.1% N/A 67.6%
Six Months Ended
June 30,
1998
Community
Banking Other Consolidated
Total interest income $18,864 -- $18,864
Net interest margin 8,046 -- 8,046
Provision for possible
loan losses 380 -- 380
Total non-interest income 3,455 -- 3,455
Total non-interest expense 7,403 181 7,584
Net income (loss) 2,406 (116) 2,290
Efficiency Ratio(e) 64.4% N/A 65.4%
(d) 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.
(e) Excludes the effect of paid and accrued distributions on trust
preferred securities.
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