Abington Savings Bank reports results for third quarter and nine months ended Sept. 30, 1995.
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)--Nov. 10, 1995--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. (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 :ABBK) today announced results for the third quarter and nine months ended Sept. 30, 1995.
The bank recognized a net loss for the quarter ended Sept. 30, 1995 of $668,000 or $.36 per share compared to net income of $684,000 or $.35 per share for the same period a year earlier. Net income for the nine months ended Sept. 30, 1995 was $640,000 or $.33 per share compared to $2,006,000 or $1.03 per share for the same period a year earlier. The loss for the third quarter is due primarily to a net loss on the sale of loans of $1,654,000 which is attributable to the bank's recent decision to sell approximately $9.2 million of non-performing and certain other loans at a discount. In addition, the bank also recognized a loss on other real estate owned Real Estate Owned
Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most amounting to $225,000 during the quarter ended Sept. 30, 1995. The loan sale is expected to close during the fourth quarter of 1995.
During October October: see month. 1995, the bank's management and board of directors evaluated the feasibility of a sale, at a discount, of a group of approximately $9.2 million of loans. These loans consist of approximately $5.7 million of loans which were nonperforming at Sept. 30, 1995 and certain other loans which, although performing, required a higher than average level of management attention.
The bank entered into a definitive agreement with a third party to sell the loans, and expects to consummate To carry into completion; to fulfill; to accomplish.
A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the transaction during the fourth quarter of 1995. As a result, at Sept. 30, 1995, these loans have been reflected on the bank's balance sheet as loans held for sale. The loans will be sold at approximately 64 percent of par, which will result in a pre-tax pre-tax adj → anterior al impuesto
pre-tax adj → avant impôt(s)
pre-tax adj → al lordo d'imposta loss of approximately $1,654,000. The loss on the sale of these loans is reflected in the bank's consolidated income statements consolidated income statement
An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. for the three months and nine months ended Sept. 30, 1995 as an addition to the provision for loan losses. After giving effect to the loan sale, the bank's nonperforming assets Nonperforming asset
An asset that is not effectively producing income, such as an overdue loan.
An asset that produces no income. are expected to be approximately $1.6 million, consisting of $500,000 of nonperforming loans and $1.1 million of other real estate owned (OREO).
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:
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. market in which to sell 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. . In light of these factors, we decided to take advantage of the opportunity to sell a significant portion of the bank's nonperforming assets. We look forward to devoting more time and attention to new loan business."
McDonough added that when the additional provision for loan loss of $1,654,000 and OREO losses of $225,000 are netted out of the financial results net income would have been $679,000 or $.35 per share and $1,987,000 or $1.02 per share, for the quarter and nine months ended Sept. 30, 1995, respectively. "The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). to the bank's loan portfolio which is reflected in the third quarter of 1995 operating results has pointed the organization in a direction which management and the board of directors believe will allow earnings in future quarters to reach greater levels given efficiencies which will be recognized as a result of the loan sale." McDonough noted that future earnings reaching increased levels will be a key ingredient toward creating greater value for the bank's shareholders.
At Sept. 30, 1995, assets totaled $441,893,000 compared to $421,833,000 at Dec. 31, 1994. Total outstanding net loans and deposits at Sept. 30, 1995 were $233,248,000 and $275,381,000, respectively, compared with $235,439,000 and $246,843,000, respectively at Dec. 31, 1994. 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. at Sept. 30, 1995 was $29,682,000, reflecting a stockholders' equity to assets ratio of 6.7 percent. 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 Sept. 30, 1995 was $15.82. The results for the quarter and nine months ended Sept. 30, 1995 reflect the acquisition of certain assets and liabilities of a branch office in Holbrook, Mass. on June 23, 1995. The deposits acquired amounted to approximately $16 million.
Abington Savings Bank is a Massachusetts-chartered savings bank whose deposits are insured by the Federal Deposit Insurance Corp. and the 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. . In addition to its headquarters and loan center in Abington, the bank has six other branches in Halifax, Holbrook, Hull, Kingston, Pembroke and Whitman. -0-
Abington Savings Bank Operating Results (In thousands, except per share data)
Three Months Ended Sept. 30, 1995 1994 (unaudited)
Interest and dividend income $8,037 $7,213 Net interest income 3,422 3,367 Provision for possible loan losses 1,804 150 Non-interest income 567 542 Non-interest expenses 3,111 2,619 Income (loss) before income taxes (926) 1,140 Net income (loss) (668) 684 Earnings (loss) per share $ (.36) $ .35 Dividends per share $ .10 $ .10 Weighted average shares outstanding 1,876,000 1,981,000
Nine Months Ended Sept. 30, 1995 1994 (unaudited)
Interest and dividend income $23,456 $19,459 Net interest income 10,169 9,305 Provision for possible loan losses 2,104 460 Non-interest income 1,998 1,804 Non-interest expenses 8,890 7,548 Income before income taxes 1,173 3,101 Net income 640 2,006 Earnings per share $ .33 $ 1.03 Dividends per share $ .30 $ .30 Weighted average shares outstanding 1,959,000 1,958,000
Balance Sheet Data (In thousands, except per share data)
Sept. 30, Dec. 31, 1995 1994 (unaudited)
Total assets $441,893 $421,833 Loans, net 233,248 235,439 Allowance for loan losses 1,417 2,845 Deposits 275,381 246,843 Stockholders' equity 29,682 28,366 Book value per share $ 15.82 15.13 Shares outstanding 1,876 1,875
CONTACT: Abington Savings Bank
Edward J. Merritt, 617/982-3271