Alliance Bancorp Reports Earnings for the First Quarter of the Year 2001.Business Editors HINSDALE Hinsdale, village (1990 pop. 16,029), Cook and Du Page counties, NE Ill., part of the greater Chicago metropolitan area; inc. 1873. Computer systems software is produced. , Ill.--(BUSINESS WIRE)--April 25, 2001 Alliance Bancorp (Nasdaq:ABCL ABCL American Birth Control League ABCL As Built Configuration List ABCL Amitabh Bachhan Corporation Limited ), the holding company for Liberty Federal Bank, today reported net income for the first quarter ended March 31, 2001 of $4,638,000, or $0.47 per 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. share. In the first quarter of 2000, the Bank had auctioned $125,000,000 of Federal Home Loan Bank advances, recognizing a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $8.8 million on the sale of those advances. This was reported as a $5.7 million "Extraordinary Item-Gain on Early Extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of Debt, Net of Tax", or $0.58 per diluted share. Concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. in the first quarter of 2000, the Bank sold $122 million of investment and mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , held as available for sale, recognizing losses of $6.3 million. The gain on these combined "de-leveraging" transactions, net of fees and tax was $1.4 million, or $0.14 per diluted share. Total reported net income for the first quarter of 2000, including this net gain, was $5,152,000, or $0.52 per diluted share. For the first quarter of 2001, net interest income was $13,505,000, compared to $13,849,000 for the prior year's first quarter. In addition to last year's de-leveraging transactions mentioned above, comparison of the current quarter to the prior year's first quarter is also affected by a $25 million purchase of Bank Owned Life Insurance made in August, 2000. Income of $413,000 from that transaction is included in other noninterest income in the current quarter. The current quarter's interest rate spread was 2.36 percent and the interest rate margin was 2.84 percent, compared to 2.65 percent and 3.06 percent, respectfully re·spect·ful adj. Showing or marked by proper respect. re·spect  ful·ly adv. , in the prior year's first quarter. The yield on
average interest earning assets Earning AssetsAny income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin for the current quarter increased to 7.80 percent from 7.43 percent, for last year's first quarter. The cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities was 5.44 percent for the current quarter, compared to 4.78 percent for the prior year's first quarter. For the current quarter, the annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets was 0.92 percent, and the annualized return on average equity was 11.15 percent, compared to 1.08 percent and 13.40 percent, respectively, for the prior year's first quarter. Average loan balances for the current quarter increased $135 million to $1.52 billion, compared to the prior year's first quarter. Interest income on loans for the current quarter increased $3.9 million over the first quarter of 2000, to $30.5 million. The overall yield on loans increased to 8.07 percent for the current quarter from 7.70 percent for last year's first quarter. This change reflects an increase in mortgage yields overall and changes in the mix of the loan portfolio, primarily from an increase in higher yielding loans such as commercial real estate lending. The average balances of mortgage-backed securities, interest-bearing deposits and investment securities decreased by $43.5 million, to $389.4 million, from $432.9 million for the prior year's first quarter primarily as a result of the de-leveraging security sales in the first quarter of 2000. Combined income from these investments decreased $538,000 in the current quarter from the prior year's first quarter due to the lower average securities balances. However, the overall yield on these investments increased to 6.75 percent in the current quarter from 6.55 percent in the prior year's first quarter because the securities sold had lower yields than the remaining yield on the portfolio. Interest expense on deposit accounts increased $2.1 million to $15.4 million for the current quarter compared to the prior year's first quarter. Since March 31, 2000, rates on deposit accounts have generally increased for financial institutions reflecting the Federal Reserve Bank's influence in increasing interest rates. In an effort to compete with other banks to retain deposits and improve its interest rate sensitivity position, Liberty Federal has had to offer longer term, higher yielding certificate of deposit accounts which have increased the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . The average interest cost of deposits has increased to 5.07 percent for the current quarter from 4.48 percent in the prior year's first quarter. Average deposit balances of $1.23 billion increased $38.3 million from a year ago. In addition to deposits, the Bank uses borrowed money, consisting primarily of advances from the Federal Home Loan Bank of Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , to fund a portion of its investment activity and its loan demand. Interest expense on borrowed money increased $1.7 million, to $8.2 million in the current quarter compared to the prior year's first quarter. Average balances of borrowed money for the quarter increased to $525 million from $472 million a year ago, primarily because of the additional lending in the year 2000. The cost of advances increased to 6.31 percent for the current quarter, from 5.52 percent in the prior year's first quarter. The current quarter's income from real estate operations was $485,000, compared to $974,000 in the prior year's first quarter. Other fees and commissions, consisting primarily of loan commissions paid to the Bank's mortgage broker subsidiary Liberty Home Mortgage, increased by $404,000, to $1.7 million, in the current quarter compared to the prior year's first quarter, primarily due to an increase in loans sold to other lenders in the current period. Other components of noninterest income include: brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions on security transactions for customers of Liberty Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. the Bank's investment subsidiary; fees for loans serviced; fees from deposit accounts; and income from Bank Owned Life Insurance. In the current quarter, the Bank terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: its participation in a shared ATM network primarily due to increased costs. ATM fee income, net of ATM expenses for the current quarter was $104,000, compared to $152,000 in the prior year's first quarter, however, this net income had decreased to $107,000 in the fourth quarter of 2000. Currently the Bank operates 18 ATM's located at its branch offices. The current quarter's noninterest expense was $9.9 million, a decrease of $939,000 from the prior year's first quarter. The largest component of noninterest expense, compensation and benefits, decreased $458,000, to $5.0 million in the current year's first quarter, compared to the prior year's first quarter. A significant portion of this decrease, compared to the prior year period is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to staff reductions at the mortgage broker subsidiary. The provision for income taxes for the current quarter was $1.7 million, compared to $2.5 million for the prior year's first quarter. The provision for income taxes for the current quarter was reduced by $225,000 as a result of the completion of a review of the Company's tax liability. At March 31, 2001, 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. were $4.1 million, or 0.27 percent of total loans, compared to $4.5 million, or 0.32 percent of total loans at March 31, 2000. A $200,000 provision for loan losses was recorded in the current quarter, increasing the allowance for loan losses at March 31, 2001 to $7.3 million, or 0.49 percent of loans. A $200,000 provision for loan losses was recorded in the prior year's first quarter. Non-performing assets were $4.3 million at March 31, 2001, or 0.21 percent of total assets, compared to $5.2 million, or 0.28 percent of total assets at March 31, 2000. Alliance Bancorp's total assets were $2.0 billion at March 31, 2001, and total deposits were $1.3 billion. 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. was $170.5 million, resulting in a book value of $18.35 per share for the 9,295,331 shares outstanding. On January January: see month. 23, 2001, the Company entered into a definitive agreement with Charter One Financial, Inc. under which Alliance Bancorp would be merged into Charter One. Charter One is one of the 30 largest bank holding companies in the country with over $33 billion in assets and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 420 branch office locations in Ohio, Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. and Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. . Terms of the agreement call
for each share of Alliance common stock to be exchanged for $5.25 in
cash and .72 shares of Charter One stock. The transaction will be
accounted for as a purchase and is expected to be completed early in the
third quarter of 2001. The transaction has been approved by the boards
of directors of both companies and is subject to approval by the Office
of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. , the Federal Reserve Board, and Alliances'
shareholders at the Annual Meeting on May 30, 2001. The record date for
voting at that meeting is for shareholders of record as of the close of
trading on April 24, 2001.Liberty Federal Bank is a community-oriented financial services company operating nineteen retail banking offices in Chicago; north, west and southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. Cook County; and DuPage County. The Bank's tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. and leverage capital ratios were 7.21 percent, and the risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 10.83 percent at March 31, 2001. These ratios exceed all current regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . This news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. The Company intends such forward-looking statements to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward-looking statements contained in the Private Securities Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results of the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the subsidiaries include, but are not limited to, changes in; interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flow, competition, demand for financial services in the Company's market area and accounting principles and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, are included in the Company's filings with the SEC. The Company's common stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: ABCL. -Financial Statements Attached-
Alliance Bancorp and Subsidiaries
Consolidated Statements of Financial Condition
March 31, December 31,
(In thousands, except share data) 2001 2000
----------------------------------------------------------------------
(unaudited)
Assets
Cash and due from banks $ 20,108 21,918
Interest-bearing deposits 64,688 30,235
Investment securities available
for sale, at fair value 48,483 51,848
Investment securities at amortized cost
(fair value of $20,412 and $20,309) 19,407 19,405
Mortgage-backed securities available
for sale, at fair value 220,750 223,423
Mortgage-backed securities at amortized
cost (fair value of $12,994 and $13,134) 11,878 12,165
Loans, net of allowance for losses of
$7,307 at March 31, 2001
and $7,276 at December 31, 2000 1,492,465 1,526,296
Accrued interest receivable 10,946 13,143
Real estate 18,555 19,675
Premises and equipment, net 11,436 12,110
Stock in Federal Home Loan Bank of Chicago,
at cost 29,995 29,486
Bank owned life insurance 48,222 47,519
Other assets 14,929 15,447
----------------------------------------------------------------------
$ 2,011,862 2,022,670
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
Liabilities:
Deposits $ 1,304,661 1,275,338
Borrowed funds 500,138 550,116
Advances by borrowers for taxes
and insurance 9,358 10,666
Accrued expenses and other liabilities 27,155 22,494
----------------------------------------------------------------------
Total liabilities 1,841,312 1,858,614
----------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, $.01 par value;
authorized 1,500,000 shares;
none outstanding - -
Common stock, $.01 par value;
authorized 21,000,000 shares;
11,754,153 shares issued and 9,295,331
outstanding at March 31, 2001
11,702,397 shares issued and 9,243,575
outstanding at December 31, 2000 117 117
Additional paid-in capital 108,972 108,123
Retained earnings, substantially
restricted 110,059 106,722
Treasury stock, at cost; 2,458,822 shares
at March 31, 2001 and December 31, 2000 (46,440) (46,440)
Accumulated other comprehensive loss (2,158) (4,466)
----------------------------------------------------------------------
Total stockholders' equity 170,550 164,056
----------------------------------------------------------------------
Commitments and contingencies
----------------------------------------------------------------------
$ 2,011,862 2,022,670
----------------------------------------------------------------------
Alliance Bancorp and Subsidiaries
Consolidated Statements of Income
Three Months Ended
March 31,
(In thousands, except per share amounts) 2001 2000
----------------------------------------------------------------------
(unaudited)
Interest Income:
Loans $ 30,484 26,561
Mortgage-backed securities 4,013 5,371
Investment securities 1,840 1,623
Interest-bearing deposits 703 100
----------------------------------------------------------------------
Total interest income 37,040 33,655
----------------------------------------------------------------------
Interest Expense:
Deposits 15,370 13,307
Borrowed funds 8,165 6,499
----------------------------------------------------------------------
Total interest expense 23,535 19,806
----------------------------------------------------------------------
Net interest income 13,505 13,849
Provision for loan losses 200 200
----------------------------------------------------------------------
Net interest income after provision
for loan losses 13,305 13,649
----------------------------------------------------------------------
Noninterest Income:
Gain on sales of loans held for sale - 14
Loss on sales of mortgage-backed
securities available for sale - (6,059)
Loss on sales of investment
securities available for sale - (491)
Income from real estate operations 485 974
Servicing fee income, net 58 53
ATM fee income 197 421
Other fees and commissions 1,679 1,275
Other, net 521 (89)
----------------------------------------------------------------------
Total noninterest income 2,940 (3,902)
----------------------------------------------------------------------
Noninterest Expense:
Compensation and benefits 4,965 5,423
Occupancy expense 2,084 2,004
Federal deposit insurance premiums 70 69
Advertising expense 169 197
ATM expense 93 269
Computer services 348 354
Other 2,167 2,519
----------------------------------------------------------------------
Total noninterest expense 9,896 10,835
----------------------------------------------------------------------
Income (loss) before income taxes and
extraordinary item 6,349 (1,088)
Income tax expense (benefit) 1,711 (540)
----------------------------------------------------------------------
Net income (loss) before extraordinary item 4,638 (548)
Extraordinary item-gain on early
extinguishment of debt, net of tax
expense of $3,069 - 5,700
----------------------------------------------------------------------
Net income $ 4,638 5,152
----------------------------------------------------------------------
Basic earnings per share
Net income (loss) before extraordinary item $ 0.50 (0.05)
Extraordinary item, net of tax - 0.57
----------------------------------------------------------------------
Net income 0.50 0.52
----------------------------------------------------------------------
Diluted earnings per share
Net income (loss) before extraordinary item 0.47 (0.05)
Extraordinary item, net of tax - 0.57
----------------------------------------------------------------------
Net income $ 0.47 0.52
----------------------------------------------------------------------
Alliance Bancorp and Subsidiaries
Selected Financial Ratios and Other Data
At Or For The Three Months
(Dollars in thousands, Ended March 31,
except per share data) 2001 2000
----------------------------------------------------------------------
(unaudited)
Average assets $2,020,328 $1,904,506
Average interest-earning assets 1,904,781 1,813,238
Average interest-bearing liabilities 1,754,911 1,663,414
Average equity 166,452 153,772
Return on average assets 0.92 % 1.08 %
Return on average equity 11.15 13.40
Average stockholders' equity to average assets 8.24 8.07
Stockholders' equity to total assets 8.48 8.48
Bank only
Tangible capital to total assets 7.21 7.30
Leverage capital to total assets 7.21 7.30
Risk-based capital ratio 10.83 11.51
Interest rate spread during the period 2.36 2.65
Net yield on average interest-bearing assets 2.84 3.06
General and administrative expenses to average
assets 1.96 2.28
Non-performing loans to total loans 0.27 0.32
Non-performing assets to total assets 0.21 0.28
Average interest-earning assets to average
interest-bearing liabilities 1.09 X 1.09 X
Book value per share $ 18.35 $ 16.02
Weighted average shares outstanding
Basic 9,263,895 9,961,869
Diluted 9,855,838 9,961,869
Earnings per share
Basic $ 0.50 $ 0.52
Diluted $ 0.47 $ 0.52
----------------------------------------------------------------------
Ratios were calculated on an annualized basis, as applicable.
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