Affiliated Community Bancorp Announces Earnings Increase and Quarterly Dividend.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)--April 16, 1998--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 first quarter of 1998 of $3,212,000, a 9% increase from net income of $2,937,000 for the first quarter of 1997. Basic EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the first quarter of 1998 was $.50, 9% higher than the $.46 basic EPS for the first quarter of 1997. 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. EPS for Affiliated for the first quarter of 1998 was $.47, 4% higher than the $.45 diluted EPS for the first quarter of 1997. The difference in percentage increase between the earnings per share measures is caused by the impact of the increase in Affiliated's stock price from 1997 to 1998 on the common stock equivalents used to calculate 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 . Total consolidated assets for Affiliated at March 31, 1998 were $1.141 billion, an increase of $86 million as compared to $1.055 billion one year earlier. Gross loans were $709 million on March 31, 1998, a $41 million or 6% increase from $668 million on March 31, 1997. Net loan sales during the twelve month period ended March 31, 1998 totaled $35 million. This reflects refinancing Refinancing An extension and/or increase in amount of existing debt. of adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. residential mortgages into fixed rate loans that were sold into the secondary market. Deposits totaled $728 million at the end of the first quarter of 1998 as compared to $665 million as of March 31, 1997, a 9% increase. The Board of Directors, at their meeting held on April 16, 1998, declared a regular quarterly cash dividend of $.15 per share on the common stock outstanding. This dividend is the same amount as that announced last quarter and 25% higher than a year ago. The dividend is payable May 15, 1998 to stockholders of record on April 30, 1998. The consolidated provision for possible loan losses was $126,000 for the first quarter of 1998 and $200,000 for the first quarter of 1997. The allowance for the possible loan losses at the March 31, 1998 amounted to $8,783,000 and represented 186% of the $4,709,000 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 March 31, 1998 were $4,710,000 (.41% of total assets) versus $4,870,000 (.46% of total assets) at March 31, 1997. The expense efficiency ratio for the first quarter was 49.3%, which was below 50% for the sixth consecutive quarter. The expenses for the first quarter of 1998 included those of 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 which opened for business in June June: see month. , 1997. On December 15, 1997, Affiliated and UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) Corp. (Nasdaq:USTB USTB University of Science and Technology Beijing (China) USTB Universitaets- und Stadtbibliothek (Germany) USTB Underground Storage Tank Branch ) jointly announced that the companies had signed a definitive agreement under which UST Corp would acquire Affiliated. This transaction is structured to qualify as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. for accounting purposes and as a tax-free exchange tax-free exchange An exchange of assets between taxpayers in which any gain or loss is not recognized in the period during which the exchange takes place. Rather, taxpayers are required to adjust the basis of assets exchanged. of 1.41 shares of UST common stock for each share of Affiliated common stock. The acquisition requires shareholder and regulatory approval. More information, including notice of a special meeting and a proxy for the meeting, are scheduled to be issued in the next few weeks. The transaction is expected to close in late second quarter or early third quarter of 1998. 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:
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 eight banking offices in Lexington, Arlington, Bedford and Burlington 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 $1 trillion. ). The Federal Savings Bank has four offices located in Waltham, Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. and Weston and is insured by the FDIC's SAIF fund. Middlesex Bank & Trust Company is BIF insured and has one office located in Newton. -0-
AFFILIATED COMMUNITY BANCORP, INC.
(Nasdaq:AFCB)
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 1998 and 1997
($ in Thousands)
1998 1997
Cash and Due from Banks $ 16,023 $ 11,777
Investments 398,787 360,079
Loans 708,975 667,998
Allowance for Loan Losses (8,783) (7,962)
Net Loans 700,192 660,036
Other Real Estate Owned 1 10
Other Assets 25,759 23,095
Total Assets $1,140,762 $1,054,997
Deposits $ 727,703 $ 665,146
Borrowings 289,555 277,419
Other Liabilities 7,529 9,383
Total Liabilities 1,024,787 951,948
Equity 118,546 107,834
Less Treasury Stock (3,402) (3,402)
Unrealized Gain (Loss) on
Securities 831 (1,383)
Equity, Net 115,975 103,049
Total Liabilities and Equity $1,140,762 $1,054,997
-0-
OPERATING HIGHLIGHTS
($ in Thousands)
Quarters Ended
March 31,
1998 1997
Interest and Dividend Income $21,285 $19,560
Interest Expense 11,918 10,883
Net Interest Income 9,367 8,677
Provision for Loan Losses 126 200
Net Interest Income, after Provision 9,241 8,477
Non-interest Income 758 427
Compensation and Benefits 2,943 2,508
Occupancy and Equipment 618 537
Other Real Estate Owned Expenses, Net (8) (22)
Other Non-interest Expense 1,429 1,184
Income before Taxes 5,017 4,697
Taxes 1,805 1,760
Net Income $3,212 $2,937
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OTHER FINANCIAL DATA
($ in Thousands)
Quarters Ended
March 31,
1998 1997
Net Income:
Earnings Per Share (Basic) $0.50 $0.46
Earnings Per Share (Diluted) $0.47 $0.45
Return on Avg. Assets 1.12% 1.12%
Return on Avg. Equity 11.25% 11.50%
Interest Rate Spread 2.77% 2.81%
Net Yield on Earning Assets 3.38% 3.40%
Expense Efficiency Ratio 49.28% 46.45%
-0-
At End of Period:
March 31,
1998 1997
Book Value Per Share $17.83 $16.23
Equity to Assets 10.17% 9.77%
Non-performing Loans $4,709 $4,860
Non-performing Assets $4,710 $4,870
Non-performing Assets to Total Assets 0.41% 0.46%
Non-performing Assets to Loans
plus OREO 0.66% 0.73%
Shares Outstanding at End of Period 6,580,570 6,456,458
Common Stock Equivalent Shares:
Weighted Average-Quarter (Basic) 6,436,542 6,332,791
Weighted Average-Quarter (Diluted) 6,791,778 6,570,973
Loan Portfolio
(Gross loans including loans
held for sale)
Real estate:
1-4 family $469,496 $439,068
Commercial and construction 175,729 174,308
Commercial 43,355 35,503
Equity lines of credit and other 21,610 20,904
Less: net deferred loan fees (1,215) (1,785)
$708,975 $667,998
All EPS numbers for prior periods have been restated for the impact
of SFAS No 128.
All share and per share numbers 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, 781/894-6810 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. , 781/894-6810 x. 284 |
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