Affiliated Community Bancorp Announces Earnings Increase, Dividend Increase and Stock Repurchase Program.WALTHAM Waltham (wôl`thăm, –thəm), city (1990 pop. 57,878), Middlesex co., E Mass., a suburb of Boston, on the Charles River; settled c.1634, set off from Watertown 1738, inc. as a city 1884. , Mass.--(BUSINESS WIRE)--Oct. 16, 1997--Affiliated Community 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 :AFCB AFCB ARC Fault Circuit Breaker AFCB Ahwatukee Foothills Concert Band (Phoenix, AZ) AFCB Authorized Function Control Block ) today reported net income for the third quarter of 1997 of $2,949,000 or $.43 per share, fully 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. . This compares to net income of $1,302,000 or $.20 per share fully diluted for the third quarter of 1996. The year ago results of the third quarter of 1996 were impacted by a charge for recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of the Savings Association Insurance Fund Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. (SAIF) of the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). . Affiliated's third quarter 1997 net income of $2,949,000 is 16 percent higher than the third quarter 1996 net income of $2,538,000 excluding the cost of SAIF recapitalization. The 1997 earnings per share of $.43 is 10 percent higher than the earnings per share, excluding the SAIF recapitalization, in 1996. The increase in earnings per share was partially reduced by the impact of the increase in Affiliated's stock price from 1996 to 1997 on the common stock equivalents used to calculate fully 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 . The 1997 nine month fully diluted earnings per share of $1.32 is 21 percent higher than the pre-SAIF 1996 level of $1.09. Net income for the first nine months of 1997 was $8,828,000, 25 percent higher than the $7,060,000 nine month 1996 net income without SAIF. Again, the increase in earnings per share was reduced by the impact of higher stock prices on fully diluted calculations. Total consolidated assets for Affiliated at Sept. 30, 1997 were $1.129 billion, an increase of $124 million as compared to $1.005 billion one year earlier. Gross loans were $709 million on Sept. 30, 1997, an $89 million or 14 percent increase from $620 million on Sept. 30, 1996. Deposits totaled $703 million at the end of the third quarter of 1997 as compared to $637 million as of Sept. 30, 1996, a 10 percent increase. The Board of Directors, at their meeting held on Oct. 16, 1997, declared a regular quarterly cash dividend of $.15 per share on the common stock outstanding. This dividend is a 25 percent increase over the previous quarter's dividend. The dividend is payable Nov. 14, 1997 to stockholders of record on Oct. 30, 1997. Affiliated also announced Board approval of a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program to become effective on Nov. 1, 1997. This program will run through Oct. 31, 1998 and authorizes the purchase of up to 300,000 shares, roughly 5 percent of Affiliated's common stock, in open market transactions subject to market conditions. The stock purchased will be placed in Treasury and may be used for general corporate purposes. Timothy J. Hansberry Hans·ber·ry , Lorraine 1930-1965. American playwright known for her play A Raisin in the Sun (1959). , president and chief executive officer of Affiliated, said that "We continue to be quite pleased with our financial and business results. The Affiliated strategy of separate local banks and quality staff results in this continued pattern of high quality growth and earnings. "The combination of strong earnings and strong capital make it possible for Affiliated to again increase the dividend substantially. This represents the second 25 percent increase in dividends in as many years. "We are also pleased to initiate our second repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program of Affiliated stock. Given our strong capital position, we believe that the repurchase of stock Repurchase of stock Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. is a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. long term investment and in keeping with our commitment to enhance shareholder value. The program will be spread over the next twelve months and the timing of actual purchases will depend on market conditions. "This was the first full quarter of operation for Middlesex Middlesex, former county, England Middlesex, former county adjoining London, SE England. In 1965 the county was principally reorganized into the Greater London boroughs of Barnet, Brent, Ealing, Enfield, Haringey, Harrow, Hillingdon, Hounslow, and Richmond Bank & Trust Company, a de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. bank subsidiary of Affiliated which opened for business in Newton, MA on June June: see month. 2. While the income and expense numbers for this quarter were impacted by start-up Start-up The earliest stage of a new business venture. expenses of Middlesex, the expense efficiency ratio for the entire Corporation was below 50 percent for the fourth quarter in a row." The consolidated provision for possible loan losses for the first nine months was $700,000 and $405,000 for 1997 and 1996, respectively. The allowance for possible loan losses at Sept. 30, 1997 amounted to $8,381,000 and represented 219 percent of the $3,832,000 in 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. at that date. Non-performing assets on Sept. 30, 1997 were $3,833,000 (.34 percent of total assets) versus $6,187,000 (.62 percent of total assets) at Sept. 30, 1996. Affiliated Community Bancorp Inc. is the parent company of three community banks located in Middlesex County For the traditional county of England, see Middlesex. For other uses, see Middlesex (disambiguation). Middlesex County is the name of six counties in North America:
1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. 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 Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks and Middlesex Bank & Trust Company. Lexington Savings Bank has seven banking offices in Lexington, Arlington Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. , Bedford Bedford, town, England Bedford, town (1991 pop. 75,632), county seat of Bedfordshire, central England, on the Ouse River. It is an important industrial center; diesel engines, pumps, turbines, agricultural machinery, electrical equipment, and transistors and Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. and is insured by the FDIC's Bank Insurance Fund (BIF BIF In currencies, this is the abbreviation for the Burundi Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ). The Federal Savings Bank has four offices located in Waltham, Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. and Weston and is insured by the FDIC's SAIF fund. Middlesex Bank & Trust Company is BIF insured and has one office located in Newton. All per share figures reflect the impact of the 25 percent stock split that took place on May 30, 1997. -0-
AFFILIATED COMMUNITY BANCORP INC.
(NASDAQ: AFCB)
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, 1997 and 1996
($ in thousands)
1997 1996
Cash and Due from Banks $ 15,979 $ 14,098
Investments 386,029 354,426
Loans 708,879 619,964
Allowance for Loan Losses (8,381) (7,386)
Net loans 700,498 612,578
Other Real Estate Owned 1 979
Other Assets 26,072 23,335
Total Assets $1,128,579 $1,005,416
Deposits $ 702,994 $ 637,029
Borrowings 308,570 259,384
Other Liabilities 6,857 10,941
Total Liabilities 1,018,421 907,354
Equity 113,054 103,668
Less Treasury Stock (3,402) (4,081)
Unrealized Gain (Loss) on
Securities 506 (1,525)
Equity, Net 110,158 98,062
Total Liabilities and Equity $1,128,579 $1,005,416
-0-
OPERATING HIGHLIGHTS
($ in thousands)
Quarters Ended
Sept. 30,
1997 1996
Interest and Dividend Income $20,740 $18,280
Interest Expense 11,824 10,301
Net Interest Income 8,916 7,979
Provision for Loan Losses 250 135
Net Interest Income, after Provision 8,666 7,844
Non-interest Income 562 404
Compensation and Benefits 2,714 2,308
Occupancy and Equipment 618 552
Other Real Estate Owned Expenses, Net (17) 25
SAIF Recapitalization Charge -- 2,121
Other Non-interest Expense 1,225 1,361
Income before Taxes 4,688 1,881
Taxes 1,739 579
Net income 2,949 1,302
SAIF Recapitalization, Net of
Related Taxes -- 1,236
Results Excluding SAIF Recapitalization $2,949 $2,538
Nine Months Ended
Sept. 30,
1997 1996
Interest and Dividend Income $60,283 $52,403
Interest Expense 33,914 29,377
Net Interest Income 26,369 23,026
Provision for Loan Losses 700 405
Net Interest Income, after Provision 25,669 22,621
Non-interest Income 1,458 1,259
Compensation and Benefits 7,783 6,863
Occupancy and Equipment 1,708 1,562
Other Real Estate Owned Expenses, Net (141) 164
SAIF Recapitalization Charge -- 2,121
Other Non-interest Expense 3,696 4,080
Income before Taxes 14,081 9,090
Taxes 5,253 3,266
Net income 8,828 5,824
SAIF Recapitalization, Net of
Related Taxes -- 1,236
Results Excluding SAIF Recapitalization $8,828 $7,060
-0-
OTHER FINANCIAL DATA
($ in thousands)
Quarters Ended
Sept. 30,
1997 1996
Net Income: (Excluding SAIF Charge, Net)
Earnings Per Share (fully diluted) $0.43 $0.39
Return on Average Assets 1.07% 1.03%
Return on Average Equity 10.92% 10.38%
Interest Rate Spread 2.70% 2.72%
Net Yield on Earning Assets 3.32% 3.33%
Expense Efficiency Ratio 48.08% 50.35%
Nine Months Ended
Sept. 30,
1997 1996
Net Income: (Excluding SAIF Charge, Net)
Earnings Per Share (fully diluted) $1.32 $1.09
Return on Average Assets 1.10% 0.99%
Return on Average Equity 11.22% 9.70%
Interest Rate Spread 2.76% 2.72%
Net Yield on Earning Assets 3.36% 3.33%
Expense Efficiency Ratio 47.39% 51.49%
-0-
At End of Period:
Sept. 30,
1997 1996
Book Value Per Share $17.28 $15.57
Equity to Assets 9.76% 9.75%
Non-performing Loans $3,832 $5,108
Non-performing Assets $3,833 $6,187
Non-performing Assets to Total Assets 0.34% 0.62%
Non-performing Assets to Loans
plus OREO 0.54% 1.00%
Shares outstanding at End of Period 6,492,609 6,368,333
Common Stock Equivalent Shares:
Weighted Average-Quarter
(Fully Diluted) 6,706,282 6,482,483
Weighted Average-Nine Months
(Fully Diluted) 6,678,817 6,496,074
Loan Portfolio
(Gross loans including loans
held for sale)
Real estate:
1-4 family $471,147 $409,196
Commercial and construction 177,700 161,684
Commercial 39,570 32,027
Equity lines of credit and other 21,887 18,819
Less: net deferred loan fees (1,425) (1,762)
$708,879 $619,964
All share and per share figures reflect the impact of the 25 percent stock split that took place on May 30, 1997. -0- CONTACT: Affiliated Community Bancorp Inc. John G. Fallon, 617/894-6810 x. 399 or James A. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. , 617/894-6810 x. 284 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion