Affiliated Community Bancorp announces quarterly and annual earnings increases 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)--Jan. 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 ) (the holding company for 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. and 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 ) today reported net income for the fourth quarter of 1996 of $2,699,000 or $.52 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. . For the fourth quarter of 1995 Affiliated reported net income of $135,000 or $.03 per share, fully diluted. Excluding merger costs, net of taxes, of $1,889,000, Affiliated would have reported fully diluted net income for the fourth quarter of 1995 of $2,024,000 or $.38 per share. The 1996 fourth quarter earnings per share of $.52 represents a 37 percent increase in earnings per share vs. the comparable 1995 results before merger expense. Net income for the 12 months of 1996 was $8,523,000 or $1.64 per share, fully diluted. This net income is after the third quarter pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $2,121,000 ($1,236,000 after tax or $.23 per share) 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). . Federal legislation mandating the recapitalization was signed on Sept. 30, 1996. Excluding the cost of SAIF recapitalization, Affiliated would have reported net income for 1996 of $9,759,000 or $1.87 per share, fully diluted. Reported net income for the 12 months of 1995 was $5,707,000 or $1.07 per share, fully diluted. Excluding merger costs, Affiliated would have reported 1995 net income of $7,596,000 or $1.42 per share. The 1996 pre-SAIF 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 figure of $1.87 represents a 32 percent increase when compared to the comparable 1995 pre-merger expense earnings per share of $1.42. The growth in earnings per share also reflects the effect of the 238,000 share (4.5 percent) stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program announced in January January: see month. 1996 and completed in February February: see month. . 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, "We are quite pleased with the performance of the company during our first full year of operations. Our community banks continue to position themselves as excellent alternatives to the current trend of regional bank consolidation. The combination of quality staff and the Affiliated strategy of `localness' is making a difference in the community and has resulted in a 1996 pattern of high quality growth and earnings. The results for the fourth quarter reflect our continuing momentum." President Hansberry noted that gross loans were $654 million on Dec. 31, 1996, a $110 million or 20 percent increase from $544 million on Dec. 31, 1995. Deposits totaled $653 million as of the end of the fourth quarter of 1996 as compared to $584 million as of Dec. 31, 1995, a 12 percent increase. Total consolidated assets at Dec. 31, 1996 were $1.032 billion as compared to $878 million one year earlier. The company's expense efficiency ratio for 1996 improved to 50.79 percent, vs. 55.50 percent for 1995, well ahead of the peer group average. Non-interest expense, excluding SAIF recapitalization and OREO expense, increased less than 3 percent from 1995. The provision for possible loan losses was $605,000 and $325,000 for 1996 and 1995, respectively. The allowance for possible loan losses at Dec. 31, 1996 amounted to $7,759,000 and represented 159 percent of the $4,886,000 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 Dec. 31, 1996 were $5,019,000 (.49 percent of total assets) vs. $7,002,000 (.80 percent of total assets) at Dec. 31, 1995. The board of directors, at their meeting held on Jan. 16, 1997 declared a regular quarterly cash dividend of $.15 per share on its common stock outstanding. This dividend is the same amount as that announced in the last quarter and 25 percent higher than a year ago. The dividend is payable Feb. 14, 1997 to stockholders of record on Jan. 30, 1997. On Dec. 18, 1996, Affiliated announced that it has entered into a definitive agreement to provide the initial capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. 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 and Trust Company (in organization), 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 that will be located in Newton, Mass. This transaction is subject to the necessary regulatory approvals and is expected to open for business in the second quarter of 1997. Affiliated Community Bancorp Inc. is the parent company of Lexington Savings Bank and The Federal Savings Bank which are 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 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 $1 trillion. ). The Federal Savings Bank has four offices located in Waltham, Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. and Weston Weston, town (1990 pop. 10,200), Middlesex co., E Mass., W of Boston; settled c.1642, set off from Watertown and inc. 1713. The town is mainly residential. Regis College, the Weston College Geophysical Observatory, and many 18th-century buildings are there. and is insured by the FDIC's SAIF fund. -0-
AFFILIATED COMMUNITY BANCORP INC.
(NASDAQ: AFCB)
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, 1996 and 1995
($ in thousands)
1996 1995
Investments $ 352,456 $ 305,416
Loans 653,556 543,877
Allowance for Loan Losses (7,759) (7,127)
Net loans 645,797 536,750
Other Real Estate Owned 133 1,201
Other Assets 33,827 35,113
Total Assets $1,032,213 $ 878,480
Deposits $ 652,509 $ 583,832
Borrowings 269,292 187,514
Other Liabilities 9,010 7,844
Total Liabilities 930,811 779,190
Equity 105,336 99,200
Less Treasury Stock (3,402) --
Unrealized Gain (Loss) on
Securities (532) 90
Equity, Net 101,402 99,290
Total Liabilities and Equity $1,032,213 $878,480
-0-
OPERATING HIGHLIGHTS
($ in thousands)
Quarters Ended
Dec. 31,
1996 1995
Interest and Dividend Income $18,938 $16,015
Interest Expense 10,687 8,914
Net Interest Income 8,251 7,101
Provision for Loan Losses 200 25
Net Interest Income, after Provision 8,051 7,076
Non-interest Income 379 420
Other Real Estate Owned Expenses, Net (35) 28
SAIF Recapitalization Charge -- --
Merger Related Expenses -- 1,989
Other Non-interest Expense 4,211 4,012
Income before Taxes 4,254 1,467
Taxes 1,555 1,332
Net income $2,699 135
Merger Expenses, Net of Related Taxes -- 1,889
SAIF Recapitalization, Net of
Related Taxes -- --
Results Excluding SAIF Recapitalization
and Merger Expenses $2,699 $2,024
Years Ended
Dec. 31,
1996 1995
Interest and Dividend Income $71,341 $60,996
Interest Expense 40,064 33,224
Net Interest Income 31,277 27,772
Provision for Loan Losses 605 325
Net Interest Income, after Provision 30,672 27,447
Non-interest Income 1,638 1,693
Other Real Estate Owned Expenses, Net 129 (107)
SAIF Recapitalization Charge 2,121 --
Merger Related Expenses -- 1,989
Other Non-interest Expense 16,716 16,352
Income before Taxes 13,344 10,906
Taxes 4,821 5,199
Net income 8,523 5,707
Merger Expenses, Net of Related Taxes -- 1,889
SAIF Recapitalization, Net of
Related Taxes 1,236 --
Results Excluding SAIF Recapitalization
and Merger Expenses $9,759 $7,596
OTHER FINANCIAL DATA
($ in thousands)
Quarters Ended
Dec. 31,
1996 1995
Net Income:
Earnings Per Share (fully diluted) $0.52 $0.03
Return on Average Assets 1.06% 0.06%
Return on Average Equity 10.84% 0.55%
Results Excluding SAIF Recapitalization
and Merger Expenses:
Earnings Per Share (fully diluted) $0.52 $0.38
Return on Average Assets 1.06% 0.94%
Return on Average Equity 10.84% 8.21%
Interest Rate Spread 2.77% 2.75%
Net Yield on Earning Assets 3.33% 3.41%
Expense Efficiency Ratio 48.79% 53.34%
Years Ended
Dec. 31,
1996 1995
Net Income:
Earnings Per Share (fully diluted) $1.64 $1.07
Return on Average Assets 0.88% 0.69%
Return on Average Equity 8.70% 5.90%
Results Excluding SAIF Recapitalization
and Merger Expenses:
Earnings Per Share (fully diluted) $1.87 $1.42
Return on Average Assets 1.01% 0.92%
Return on Average Equity 9.96% 7.83%
Interest Rate Spread 2.77% 2.80%
Net Yield on Earning Assets 3.33% 3.46%
Expense Efficiency Ratio 50.79% 55.50%
-0-
At End of Period:
Dec. 31,
1996 1995
Book Value Per Share $20.05 $18.99
Equity to Assets 9.82% 11.30%
Non-performing Loans $4,886 $5,601
Non-performing Assets $5,019 $7,002
Non-performing Assets to Total Assets 0.49% 0.80%
Non-performing Assets to Loans
plus OREO 0.77% 1.28%
Shares outstanding:
Weighted Average - Quarter
(Fully-Diluted) 5,210,520 5,356,969
Weighted Average - Twelve Months
(Fully-Diluted) 5,208,139 5,346,053
At End of Period 5,149,166 5,296,700
Loan Portfolio
(Gross loans including loans
held for sale)
Real estate:
1-4 family $428,308 $368,758
Commercial and construction 171,990 129,314
Commercial 35,338 28,636
Equity lines of credit and other 19,748 19,051
Less: net deferred loan fees (1,829) (1,882)
$653,555 $543,877
-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 |
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