Abington Bancorp Reports Strong Fourth Quarter and Full Year 2002 Results From Core Banking.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. 27, 2003 Results supported by record mortgage production and expanding net interest margins 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 that for the fourth quarter ended December December: see month. 31, 2002, net income totaled $1.873 million, or $0.48 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 a net loss of $410,000, or $(0.13) per diluted share, during the same period last year. Results for the fourth quarter of 2002 included a real estate gain of $212,000 (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ), or $0.03 per diluted share, which was more than offset by acquisition-related charges of $330,000 (pre-tax), or $0.05 per diluted share. During the fourth quarter of 2001, the Bank recorded several one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.835 million (pre-tax), or $0.50 per diluted share. Adjusting both periods for these non-recurring items, net income for the fourth quarter of 2002 would have been $1.947 million, or $.49 per diluted share, compared to $1.206 million, or $0.37 per diluted share, for the fourth quarter of 2001, for increases in net income and earnings per share of roughly 61% and 33%, respectively. For the year, net income totaled $7.258 million, or $2.07 per diluted share, versus net income of $3.077 million, or $.95 per diluted share, in 2001. In addition to the items affecting the fourth quarter mentioned above, results for 2002 included a pre-tax gain of $537,000, or $0.10 per diluted share, in the first quarter from the settlement of a pension program. Results for 2001 also reflect the implementation of an accounting change for the treatment of marketing expenses, the net effect of which was a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $498,000 (pre-tax), or $0.09 per diluted share, in the first quarter of 2001. Excluding non-recurring items from both years' results in order to provide more meaningful comparisons, adjusted net income for 2002 would have been $6.946 million, or $1.98 per diluted share, versus $4.991 million, or $1.54 per diluted share, for 2001. On this basis, 2002 results improved 39% and 29% on a net income and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of basis, respectively. (A full reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings to "Adjusted Earnings" is provided in the financial schedules that follow.) On September September: see month. 13, 2002, Abington Bancorp completed its acquisition of 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
See: Over-the-counter. OTC See over-the-counter market (OTC). BB: MAFN MAFN Mid-Atlantic Facilitators Network , "MAFN"), the holding company for The Massachusetts Co-operative Bank The Co-operative Bank is a co-operative bank trading in the United Kingdom with headquarters in Manchester, UK. It is an ethical bank, and refuses to invest in companies involved in the arms trade, genetic engineering, animal testing and use of sweated labour as stated in its . Abington's results for 2002 include those generated by MAFN from the closing date (September 13th) until the end of the year. These results, excluding the impact of non-recurring charges incurred in connection with the acquisition totaling roughly $330,000 on a pre-tax basis, were not dilutive to earnings performance in 2002. 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:
adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. acquisition of MAFN, while still expanding the net interest margin and effectively managing our balance sheet for future growth and stability. We were able to take maximum advantage of the low interest rate environment in our mortgage banking segment, producing both record volume and income. And finally, we acquired and successfully integrated the assets and operations of Mass. Fincorp. These achievements were made possible by the combined efforts of our Board of Directors, management and employees, and we are grateful to them for their dedication." Mr. McDonough continued, "We enter 2003 a stronger, larger community bank. We remain focused on building both our consumer and business banking franchises utilizing our effective sales culture. We will execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution this strategy taking into account that our outlook regarding the economy is a cautious one. Although we have continued to be pleasantly surprised by the continuing strength of the mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. business, our conservative approach leads us to believe that it may not continue at the levels we experienced in 2002. We do, however, see an opportunity to optimize optimize - optimisation the performance and market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of our three newly acquired branches. "In terms of our business outlook for 2003, we believe that segmenting our forecast into Community Banking and Mortgage Banking components provides the most helpful information as to the underlying trends in our business. We expect Community Banking earnings, which were roughly $6.0 million in 2002, as adjusted for non-recurring or one-time items, to continue to grow, and to increase by approximately 20-25% (8-10% on a per share basis). At the same time, we expect Mortgage Banking to experience a decline in earnings of roughly 45-55% from the record level of income generated in 2002 of $942,000. Based upon these divergent di·ver·gent adj. 1. Drawing apart from a common point; diverging. 2. Departing from convention. 3. Differing from another: a divergent opinion. 4. trends, we currently expect to generate earnings on an adjusted basis in 2003 that will meet or exceed those of 2002." "The current interest rate environment continues to be our most significant challenge going forward as we plan for 2003," added Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. M. Lallo, Abington Chief Financial Officer. "During 2002, we reduced our 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. more rapidly (due to their 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. nature) to more than offset the declines in asset yields and ended the year with fourth quarter net interest margin of 3.66%. We anticipate that net interest margins will contract in the coming months as assets continue to reprice at historically low levels without a corresponding decrease in rates paid. We continue to manage our investment and loan portfolios cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. , by acquiring assets with much shorter average lives than we had previously, which has rendered the yield of newly purchased or originated assets even lower in the current rate environment. We feel that this trade-off is prudent, even though it may bring pressure to near term net interest income levels. The advantage of this strategy, however, is that we will be better positioned to manage margins in a rising interest rate environment." Fourth Quarter Operating and Financial Highlights (as compared to the Fourth Quarter of 2001): -- Net income, as adjusted to exclude certain non-recurring items, increased over 60% in 2002 in comparison to 2001, in spite of the fact that the Mortgage Banking segment contribution was relatively unchanged in 2002 as compared to 2001. -- Net interest margin improved from 3.29% to 3.66% -- Non-interest expenses increased 22.7% or $1.6 million in 2002 over 2001. This increase is inclusive of non-recurring acquisition-related charges of approximately $330,000 related to MAFN, and $1.1 million attributable to increases in commissions (mortgage company) and other performance related incentives, reflecting enhanced financial performance in comparison to plan. There were other increases related to higher volumes of transactions and customers serviced. -- Mortgage Banking remained strong. The contribution for the fourth quarter was roughly $.06 per diluted share, as compared to $0.08 (on a fully diluted basis) for the corresponding period in 2001. The pipeline (inclusive of loans held for sale and commitments) remains high at roughly $100 million. -- Non-performing assets decreased to $2.0 million from $3.9, as $2.2 million relating to a single commercial credit was charged-off during the quarter (previously reserved for since December 31, 2001). -- Return on assets improved from (0.21)% to 0.82% -- Return on equity improved from (3.92)% to 12.76% 2002 Operating and Financial Highlights (as compared to 2001): -- Net income, on an adjusted basis, increased over 39% in 2002 in comparison to 2001 -- Net interest margin improved from 3.24% to 3.44% -- Customer service fees increased 9.2% -- Non-interest expenses increased 9.9% or $2.5 million. This increase is inclusive of inclusive of prep. Taking into consideration or account; including. non-recurring, acquisition-related charges ($330,000), increases in costs associated with higher profitability of the mortgage company ($1.3 million) and other increases in costs associated with the higher volumes of transactions and customers serviced as a result of general growth and the growth associated with the acquisition of MAFN -- Mortgage Banking segment contributed approximately $.27 per diluted share, compared to $0.18 per diluted share in 2001. -- Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). improved from 0.40% to 0.86% -- Return on equity improved from 8.02% to 15.27% Other Highlights/Information of Note - December 31, 2002 -- Total deposits and core deposits grew approximately 9% and 27% respectively, excluding the impact of MAFN. -- The results for 2002 also reflect the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of the nine-months ended September 30, 2002 for the non-amortization of goodwill in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 147. The impact of the adoption of this statement in 2002 increased overall earnings by $.01. -- One issue that has impacted other financial institutions recently has been charges necessitated by adjustments on deferred loan sale premiums and mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights. As the Company sells loans on a servicing released basis, no deferred loan sale premiums or servicing rights are booked. -- The Bank sold the remainder of its equity portfolio in the fourth quarter of 2002. At December 31, 2002 there were no marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities or corporate bonds in the Company's portfolio. -- Asset growth, excluding the impact of MAFN, was controlled to less than 1%, generally through management of securities and controlled run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of the residential loan portfolio. -- Tier I capital leverage ratio at December 31, 2002 was 6.24% (to period end assets). This exceeded management's expectation of roughly 5.5%, on a pro-forma basis, at the time of the acquisition. This preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at was possible as a result of wider margins andstrong profit levels from the mortgage banking segment, which allowed management to manage the asset growth of the Company in a conservative fashion without being detrimental det·ri·men·tal adj. Causing damage or harm; injurious. det  ri·men to earnings growth.
-- 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: increased 24.8% from December 31, 2001 to $15.68 per share. -- Loan loss 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. was 207.4% at December 31, 2002. Conference Call Abington Bancorp. will hold a conference call with investors to discuss these results on Tuesday Tuesday: see week. , January January: see month. 28, 2003, at 8:30 am. The call will also be available as a webcast and participants can join the call by visiting the Abington Bancorp website (www.abingtonsavings.com) and following the directions on the homepage See home page. . The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number for the call is 800-946-0782, passcode 274463. The call will be available as a webcast for a week following the completion of the call, and can be accessed through the Company's website. 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 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. , Milton Milton, town (1990 pop. 25,725), Norfolk co., E Mass., a residential suburb of Boston, on the Neponset River; settled 1636, set off from Dorchester and inc. 1662. Granite quarries are nearby. , 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. , Quincy Quincy. 1 (kwĭnt`sē) City (1990 pop. 39,681), seat of Adams co., W Ill., on a bluff above the Mississippi; inc. 1839. It is a trade, industrial (steel parts), and distribution center in a grain and livestock area. , 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. ," 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 changing 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors. All forward-looking statements are necessarily speculative Speculative Securities that involve a high level of risk. speculative Of or relating to an asset or a group of assets with uncertain returns. The greater the degree of uncertainty the more speculative the asset. 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.
financial statements to follow
ABINGTON BANCORP, INC.
Operating Results
(Dollars in thousands, except per share data)
Three Months Ended
December 31, Years Ended
(unaudited) December 31,
2002 2001 2002 2001
---- ---- ---- ----
Interest and
dividend income $12,187 $12,317 $47,495 $50,493
Interest expense 4,604 6,486 21,095 27,643
Net interest
income 7,583 5,831 26,400 22,850
Provision for
possible loan
losses 150 865 225 1,705
Non-interest
income:
Customer
service fees 2,396 2,314 8,679 7,949
Gains (losses)
on securities,
net 84 (1,676) (157) (1,723)
Gains on
mortgages 1,786 882 4,338 2,888
Gains (losses)
on sale of
real estate 212 (2) 297 (2)
Other 192 142 594 657
--------- --------- -------- ---------
Total
non-interest
ncome 4,670 1,660 13,751 9,769
--------- --------- -------- ---------
Non-interest
expenses:
Salaries and
employee
benefits 5,116 3,132 15,152 12,521
Occupancy and
equipment 1,133 1,517 3,869 4,032
Trust preferred
securities
expenses 280 280 1,120 1,120
Other
non-interest
expense 2,489 2,423 8,105 8,032
--------- ------ ------ -----
Total
non-interest
expense 9,018 7,352 28,246 25,705
--------- ------ ------ -----
Income (Loss)
before income
taxes 3,085 (726) 11,680 5,209
Provision
Benefit) for
income taxes 1,212 (316) 4,422 1,834
Net income (loss)
before cumulative
Effect of
Accounting Change 1,873 (410) 7,258 3,375
Cumulative Effect
of Accounting
Change - - - (298)
Net Income (Loss) 1,873 (410) 7,258 3,077
Dividends per
share $ .11 $ .10 $ .41 $ .40
Basic - earnings
per share $ .50 $( .13) $ 2.17 $ .99
Weighted average
common shares
(Basic) 3,736,000 3,113,000 3,350,000 3,103,000
Diluted - earnings
per share $ .48 $( .13) $ 2.07 $ .95
Weighted average
common shares and
share equivalents
(Diluted) 3,940,000 3,113,000 3,508,000 3,239,000
Reconciliation of One-Time or Unusual Items
for the Fourth Quarters and Years Ended December 31, 2002 and 2001
2001
Fourth Common Common
Quarter Share Share
2001 EPS Equivalents 2001 EPS Equivalents
---- --- ----------- ---- --- -----------
Net income (loss)
as reported $(410) $(0.13) 3,113 $3,077 $0.95 3,239
Adjusted for:
Cumulative Effect
of Change in
Accounting for
Sales Incentives
($498,000 pre-tax) $ - $ 298
Loss on Sale of
Corporate Bond
($2,200,000
million pre-tax) 1,254 1,254
Writedown of Real
Estate
($635,000 pre-tax) 362 362
------ ------ ------ -----
Adjusted Net Income $1,206 $0.37 3,251 $4,991 $1.54 3,239
====== ====== ====== =====
2002
Fourth Common Common
Quarter Share Share
2002 EPS Equivalents 2002 EPS Equivalents
---- --- ----------- ---- --- -----------
Net income (loss)
as reported $1,873 $ 0.48 3,940 $7,258 $2.07 3,508
Adjusted for:
One-time
Acquisition-Related
Costs not
Capitalized - MAFN
($330,000 pre-tax) $205 $205
Gain on sales of
Real Estate
($212,000 and
$297,000 pre-tax) (131) (184)
Gain on Settlement
of Pension
($537,000 pre-tax) - (333)
------ ----- ------ -----
Adjusted Net Income $1,947 $0.49 3,940 $6,946 $1.98 3,508
====== ===== ====== =====
Growth on an
adjusted basis 61.4% 33.2% 39.2% 28.5%
Management is providing the above adjustments to its results under
Generally Accepted Accounting Principles to provide a clearer picture
of the underlying performance of the Bank's core businesses.
Management believes that the adjustments made for the periods above
remove the impact of one-time, or non-recurring, items (both charges
and gains)and will help investors understand the comparable
performance of the Bank during all periods presented.
ABINGTON BANCORP, INC.
Balance Sheet Data
(Dollars in thousands, except per share data)
December 31, December 31,
2002 2001
---- ----
Investments(1) $354,262 $277,627
Loans, net 392,851 403,552
Allowance for Loan Losses 4,212 5,482
Intangible Assets:
Goodwill 5,767 1,395
Core Deposits 4,615 864
Total Assets 905,752 770,118
Deposits 646,628 497,459
Borrowings 178,015 201,548
Shareholders' Equity:
Equity, excluding effect
of unrealized gain
on securities, net of taxes 54,666 37,512
Add: Unrealized gain on
Securities, net of taxes(1) 4,084 1,639
Total $58,750 $39,151
Book value per share $15.68 $12.56
Shares outstanding 3,746,000 3,118,000
Branch Openings
Canton November 2000
Hanover July 2001
Boston(Dorchester) September 13, 2002 (MAFN acquisition)
Milton September 13, 2002 (MAFN acquisition)
Quincy September 13, 2002 (MAFN acquisition)
(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
Quarters Ended Years Ended
December 31, December 31,
2002 2001 2002 2001
---- ---- ---- ----
Return on assets .82% (.21)% .86% .40%
Return on equity 12.76% (3.92)% 15.27% 8.02%
Net overhead ratio(1) 1.93% 3.27% 1.74% 1.86%
Three Months Ended Years Ended
Yields December 31, December 31,
------
2002 2001 2002 2001
---- ---- ---- ----
Loans 6.34% 7.46% 6.83% 7.66%
Bonds and Government
Obligations 3.65% 6.83% 4.15% 7.30%
Mortgage Backed
Securities 6.24% 6.56% 6.25% 6.62%
Equities and FHLB
Stock 3.55% 4.28% 3.55% 4.77%
Earning assets 5.89% 6.95% 6.20% 7.17%
Non-time deposits(2) 0.90% 1.28% 1.12% 1.30%
Time deposits 3.30% 5.34% 3.84% 5.72%
Borrowed funds 4.52% 5.64% 5.06% 5.77%
Cost of funds 2.23% 3.70% 2.77% 3.97%
Interest margin 3.66% 3.29% 3.44% 3.24%
(1) Excludes the accrued distributions (expenses) related to trust
preferred securities and gains (losses) on securities or real estate.
(2) Includes the effect of average non-interest bearing DDAs which
were $87,218,000 and $74,964,000, respectively, for the three- and
twelve-month periods ended December 31, 2002 and $74,007,000 and
$62,110,000, respectively, for the three- and twelve-month periods
ended December 31, 2001.
ABINGTON BANCORP, INC.
Average Balances
(Dollars in thousands)
Three Months Ended Years Ended
December 31, December 31,
2002 2001 2002 2001
---- ---- ---- ----
Loans $404,145 $408,358 $368,122 $385,149
Bonds and Government
Obligations 46,694 29,588 47,700 55,234
Mortgage Backed
Securities 328,672 239,435 310,920 239,381
Equities and FHLB
Stock 15,092 18,335 15,340 20,379
Earning assets 827,851 708,873 766,634 704,574
Non-time deposits 458,147 298,432 390,513 278,481
Time deposits 187,984 190,189 167,759 193,418
Borrowed funds 179,333 212,593 203,360 224,347
ABINGTON BANCORP, INC.
Asset Quality Statistics
(Dollars in thousands)
December 31, December 31,
2002 2001
---- ----
Non accrual loans $2,024(1) $3,881(1)
Loans greater than 90 days
still accruing 7 78
-------- -------
Non performing loans 2,031 3,959
Other real estate owned - -
----- -------
Non performing assets $2,031 $3,959
========= ========
Loan loss reserve to non
performing loans 207.4% 138.5%
Loan loss reserve to total
loans 1.06% 1.34%
Delinquency ratio .62% 1.16%
Tier I capital leverage
ratio(2) 6.15% 6.08%
Total risk-based capital
ratio 14.23% 12.82%
Year Ended Year Ended
December 31, 2002 December 31, 2001
Allowance for loan losses,
beginning of period $5,482 $3,856
Charge-offs (2,396) (243)
Recoveries 162 164
-------- ---------
Net (charge-offs)
recoveries (2,234) (79)
Allowance for loan losses
acquired from
Massachusetts Fincorp 739 -
Provision for possible
loan losses 225 1,705
-------- ---------
Allowance for loan losses
end of period $4,212 $5,482
======== =========
(1) 2001 includes a single commercial relationship (telecom)
totaling roughly $3 million of which $2,175,000 had been allocated in
the Company's allowance for loan losses. $2,175,000 of this credit was
charged-off in the fourth quarter of 2002.
(2) This ratio is calculated in accordance with regulatory
guidelines that require using average assets. The Tier I capital
leverage ratio calculated with period end assets is 6.24% in 2002.
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands)
Quarter Ended
December 31,
2002
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $ 11,953 $ 528 $ 3 $ (297) $12,187
Net interest income 7,303 277 3 - 7,583
Provision for
possible loan losses 150 - - 150
Total non-interest
income 2,884 1,816 - (30) 4,670
Total non-interest
expense 7,098 1,640 280 - 9,018
Net income (loss) 1,859 249 (217) (18) 1,873
Quarter Ended
December 31,
2001
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $12,247 $213 $ 4 $(147) $12,317
Net interest income 5,761 66 4 - 5,831
Provision for
possible loan losses 865 - - - 865
Total non-interest
income 778 883 - (1) 1,660
Total non-interest
expense 6,571 501 280 - 7,352
Net income (loss) (482) 255 (182) (1) (410)
ABINGTON BANCORP, INC
Segment Analysis
(Dollars in thousands)
Year Ended
December 31,
2002
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $47,137 $1,043 $23 $(708) $47,495
Net interest income 25,876 501 23 - 26,400
Provision for
possible loan losses 225 - - - 225
Total non-interest
income 9,413 4,383 - (45) 13,751
Total non-interest
expense 23,854 3,272 1,120 - 28,246
Net income (loss) 7,069 942 (726) (27) 7,258
Year Ended
December 31,
2001
Community Mortgage
Banking Banking Other Elimination Consolidated
Interest and dividend
income $50,471 $667 $18 $(663) $50,493
Net interest income 22,722 110 18 - 22,850
Provision for
possible loan losses 1,705 - - - 1,705
Total non-interest
income 6,881 2,899 - (11) 9,769
Total non-interest
expense 22,652 1,933 1,120 - 25,705
Net income (loss) 3,218 595 (729) (7) 3,077
Reconciliation of One-Time or Unusual Items
for the Years Ended December 31, 2002 and 2001
For Segment Analysis
(Amounts in 000's excpet per share data)
2001
Community
Combined Mortgage Banking &
2001 Banking Other
Net income (loss) as
reported $ 3,077 $ 595 $ 2,482
Adjusted for:
Cumulative Effect of
Change in Accounting
for Sales Incentives
($498,000 pre-tax) $ 298 $ 298
Loss on Sale of
Corporate Bond
($2,200,000 million
pre-tax) 1,254 1,254
Writedown of Real
Estate ($635,000
pre-tax) 362 362
---------- ---------- -----------
Adjusted Net Income $ 4,991 $ 595 $ 4,396
========== ========== ===========
Earnings per share $ 1.54 $ 0.18 $ 1.36
========== ========== ===========
Fully Diluted Common
Stock Equivalents 3,239 3,239 3,239
========== ========== ===========
2002
Community
Combined Mortgage Banking &
2002 Banking Other
Net income (loss) as
reported $ 7,258 $ 942 $ 6,316
Adjusted for:
One-time
Acquisition-Related
Costs not
Capitalized - MAFN
($330,000 pre-tax) $ 205 $ 205
Gain on sales of
Real Estate
($297,000 pre-tax) (184) (184)
Gain on Settlement
of Pension
($537,000 pre-tax) (333) (333)
---------- ---------- -----------
Adjusted Net Income $ 6,946 $ 942 $ 6,004
========== ========== ===========
Earnings per share $ 1.98 $ 0.27 $ 1.71
========== ========== ===========
Fully Diluted Common
Stock Equivalents 3,508 3,508 3,508
========== ========== ===========
Increase on net
income basis 39.2% 58.3% 36.6%
========== ========== ===========
Increase on earnings
per share basis 28.5% 46.2% 26.1%
========== ========== ===========
ABINGTON BANCORP, INC.
Other Key Loan and Deposit Information
(Dollars in thousands)
December 31, December 31,
2002 2001
---- ----
Loan portfolio:
Residential $218,259 $ 275,514
Home equity 33,702 28,301
Commercial real estate 127,617 83,874
Commercial 9,642 13,994
Other 7,843 7,351
-------- ---------
Total loans and loans
held for sale $397,063 $ 409,034
======== ==========
Deposits:
DDA's $ 90,960 $ 66,344
Now's 105,047 79,659
Savings & Money Market 260,480 163,798
--------- -------
Core deposits $456,487 $309,801
Time deposits 190,141 187,658
--------- ---------
Total Deposits $646,628 $ 497,459
========= =========
Loan Originations - Mortgage Banking
(Dollars in thousands)
Applications: 2002 2001 2000
----- ---- ----
Quarter 1 $66,600 $ 76,800 $ 40,700
Quarter 2 69,300 61,900 37,900
Quarter 3 133,700 65,900 34,300
Quarter 4 156,300 90,900 34,800
-------- -------- -------
Year to Date $425,900 $295,500 $147,700
======== ======= ========
Loans Originated- $315,000 $187,500 $ 88,000
ABINGTON BANCORP, INC.
Balance Sheet Data
(Dollars in thousands, except per share data)
2002
Change
Excluding
2002 2001 Change MAFN
---- ---- -------- -------
Investments $354,262 $277,627 $76,635 $49,766
Loans, net 392,851 403,552 (10,701) (93,945)
Allowance for Loan
Losses 4,212 5,482 (1,270) (2,009)
Intangible Assets:
Goodwill 5,767 1,395 4,372 182
Core Deposits 4,615 864 3,751 (449)
Total Assets 905,752 770,118 135,634 5,629
Deposits 646,628 497,459 149,169 49,218
Borrowings 178,015 201,548 (23,533) (38,081)
Shareholders' Equity 58,750 39,151 19,599 9,180
Impact of Opening Balances
of Massachusetts Fincorp as of September 13, 2002:
Investments $26,869
Loans, net 83,244
Intangible Assets:
Goodwill 4,190
Core Deposits 4,200
Total Assets 130,005
Deposits 99,951
Total Liabilities 119,514
Borrowings 14,548
Shareholders' Equity 10,419
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