Affiliated Community Bancorp Inc. Announces Earnings Increase.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)--July 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 half of 1998 of $6,418,000, a 9 percent increase from net income of $5,879,000 for the first half 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 half of 1998 was $.99, 6 percent higher than the $.93 basic EPS for the first half 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 half of 1998 was $.94, 6 percent higher than the $.89 diluted EPS for the first half of 1997. Net income for the second quarter of 1998 was $3,206,000, 9 percent higher than the $2,942,000 reported for the second quarter of 1997. Basic EPS for the second quarter of 1998 was $.49, 4 percent higher than the $.47 basic EPS for the second quarter of 1997. Diluted EPS for the second quarter of 1998 was $.47, 7 percent higher than the $.44 diluted EPS for the second quarter of 1997. Total consolidated assets for Affiliated at June June: see month. 30, 1998 were $1.123 billion, an increase of $33 million as compared to $1.090 billion one year earlier. Gross loans were $696 million on June 30, 1998, a $10 million increase from $686 million on June 30, 1997. Net loan sales into the secondary market during the twelve month period ended June 30, 1998 totaled $60 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 $732 million at the end of the first half of 1998 as compared to $676 million as of June 30, 1997, an 8 percent increase. As announced on June 10, 1998, the Board of Directors 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 percent higher than a year ago. The dividend is payable July July: see month. 24, 1998 to stockholders of record on June 30, 1998. This dividend payment date is three weeks earlier than in recent years. The consolidated provision for possible loan losses was $256,000 for the first half of 1998 as compared to $450,000 for the first half of 1997. The allowance for possible loan losses at June 30, 1998 amounted to $8,916,000 and represented 221 percent of the $4,040,000 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 June 30, 1998 were $4,040,000 (.36 percent of total assets) versus $4,291,000 (.39 percent of total assets) at June 30, 1997. The expense efficiency ratio for the second quarter of 1998 was 47.1 percent, which was below 50 percent for the seventh consecutive quarter. The expenses for the first half 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 1997. On Dec. 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 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. This transaction received shareholder approval at a special meeting of shareholders held on June 10, 1998. The acquisition requires regulatory approval and is expected to close in the first part of next month. Affiliated Community Bancorp Inc. is the parent company of three community banks with thirteen offices located in Middlesex County, Massachusetts Middlesex County is a county located in the U.S. state of Massachusetts. It is the most populous county in Massachusetts. As of the 2000 census, the population was 1,465,396. The center of population of Massachusetts is located in Middlesex County, in the town of Natick. -- Lexington Lexington. 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. On May 1, 1998 Affiliated and William R. Berkley of Greenwich, Connecticut Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2000 census, the town had a total population of 61,101. It is home to many hedge funds and other financial service companies that have left Manhattan. Of the $1. jointly announced the signing of a definitive agreement under which Berkley would acquire 100 percent of the stock of Middlesex Bank and Trust Company for $8.24 million and other consideration. Middlesex has one office located in Newton, Massachusetts The City of Newton in Middlesex County, Massachusetts, is an important residential suburb of Boston, which abuts it on the east. According to the 2000 census, the population of the Newton was 83,829, making it the tenth largest city in the state. and had assets of $28 million as of June 30, 1998. This sale is subject to the closing of the AFCB acquisition by UST and will not have a material impact on either AFCB or UST, nor will it affect the accounting treatment of the acquisition of AFCB by UST. -0-
AFFILIATED COMMUNITY BANCORP INC.
(NASDAQ:AFCB)
Condensed Consolidated Balance Sheets
June 30, 1998 and 1997
($ in thousands, except per share data)
1998 1997
Cash and Due from Banks $ 19,090 $ 19,933
Investments 389,806 368,543
Loans 696,105 685,562
Allowance for Loan Losses (8,916) (8,228)
Net Loans 687,189 677,334
Other Real Estate Owned -- 1
Other Assets 26,895 24,620
Total Assets $1,122,980 $1,090,431
Deposits $ 731,743 $ 676,447
Borrowings 261,967 298,683
Other Liabilities 10,187 8,676
Total Liabilities 1,003,897 983,806
Equity 121,037 110,300
Less Treasury Stock (3,402) (3,402)
Unrealized Gain (Loss) on
Securities 1,448 (273)
Equity, Net 119,083 106,625
Total Liabilities and Equity $1,122,980 $1,090,431
Operating Highlights
($ in Thousands)
Quarters Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Interest & Dividend
Income $ 20,460 $ 19,983 $ 41,745 $ 39,543
Interest Expense 11,616 11,207 23,534 22,090
Net Interest Income 8,844 8,776 18,211 17,453
Provision for Loan
Losses 130 250 256 450
Net Interest Income,
after Provision 8,714 8,526 17,955 17,003
Non-interest Income 812 469 1,570 896
Compensation and Benefits 2,687 2,561 5,630 5,069
Occupancy and Equipment 636 553 1,254 1,090
Other Real Estate Owned
Expenses, Net (89) (102) (97) (124)
Other Non-interest
Expense 1,227 1,287 2,656 2,471
Income before Taxes 5,065 4,696 10,082 9,393
Taxes 1,859 1,754 3,664 3,514
Net income $ 3,206 2,942 $ 6,418 5,879
AFFILIATED COMMUNITY BANCORP INC.
(NASDAQ:AFCB)
Other Financial Data
($ in Thousands)
Quarters Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net Income:
Earnings Per Share (Basic) $0.49 $0.47 $0.99 $0.93
Earnings Per Share (Diluted) $0.47 $0.44 $0.94 $0.89
Return on Avg. Assets 1.14% 1.10% 1.13% 1.11%
Return on Avg. Equity 10.93% 11.26% 11.09 11.38%
Interest Rate Spread 2.57% 2.77% 2.67% 2.78%
Net Yield on Earning Assets 3.23% 3.38% 3.30% 3.39%
Expense Efficiency Ratio 47.12% 47.60% 48.23% 47.03%
At End of Period:
June 30,
1998 1997
Book Value Per Share $18.06 $16.75
Equity to Assets 10.60% 9.78%
Non-performing Loans $4,040 $4,290
Non-performing Assets $4,040 $4,291
Non-performing Assets to Total Assets 0.36% 0.39%
Non-performing Assets to Loans
plus OREO 0.58% 0.63%
Shares outstanding at End of Period 6,665,133 6,465,334
Common Stock Equivalent Shares:
Weighted Average - Quarter
(Basic) 6,538,337 6,356,966
Weighted Average - Quarter
(Diluted) 6,829,193 6,616,978
Weighted Average - Six Months
(Basic) 6,487,722 6,344,945
Weighted Average - Six Months
(Diluted) 6,811,337 6,594,196
Loan Portfolio
(Gross loans including loans
held for sale)
Real estate:
1-4 family $461,773 $454,218
Commercial and construction 171,414 173,235
Commercial 40,762 38,032
Equity lines of credit and other 23,322 21,554
Less: net deferred loan fees (1,166) (1,477)
$696,105 $685,562
-0- All EPS numbers for prior periods have been restated for the impact of 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 128. All share and per share numbers reflect the impact of the 25% stock split that took place on May 30, 1997. CONTACT: Affiliated Community Bancorp Inc. John G. Fallon, 781/894-6810 x399 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 x284 |
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