American Financial Holdings, Inc. Announces 12.7% Increase in Year-end Earnings Per Share; Increases Dividend 9%.Business/Technology Editors NEW BRITAIN New Britain, city, United States New Britain, industrial city (1990 pop. 75,491), Hartford co., central Conn.; settled c.1686, inc. 1871. The tin shops and brassworks in the city were established in the 18th cent. , Conn.--(BUSINESS WIRE)--Jan. 29, 2002 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Financial Holdings, Inc. (Nasdaq: AMFH), the holding company for American 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. , today reported earnings of $1.33 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 for the year ended December December: see month. 31, 2001, a 12.7% increase over the $1.18 per diluted share earned last year. 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 for the quarter ended December 31, 2001 were $0.35, compared to $0.30 for the fourth quarter last year, an increase of 16.7%. At its meeting today, the Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a 9.1% increase in the cash dividend to $0.18 per share to shareholders of record as of February February: see month. 8, 2002. The dividend is payable on February 22, 2002. Financial Highlights for the Year -- Closed a record of over $580 million in loans; net loans increased $63.8 million, or 5.5% -- Core deposits increased $72.4 million, or 19.4% -- Return on average assets was 1.51%, while the efficiency ratio was 48.9% -- Non-performing assets to total assets were 0.23% -- Return on equity was 6.6% compared to 5.9% for the year ended December 31, 2000 -- Book value per share was $19.16 as of December 31, 2001 -- Repurchased 6,233,838 shares during 2001 at an average price of $22.01 Fourth Quarter Financial Highlights -- Reported diluted earnings per share of $0.35 for the quarter ended December 31, 2001, which is a 16.7% increase over diluted earnings per share of $0.30 for the quarter ended December 31, 2000 -- Loan originations 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. increased to $151.9 million, an increase of 85.1% over the same period last year; however, net loans decreased by $20.6 million to $1.2 billion due to heavy refinancing Refinancing An extension and/or increase in amount of existing debt. activity -- Service charges and fee income increased by 34.1%, compared to the quarter ended December 31, 2000 -- Repurchased 637,000 shares during the quarter at an average price of $25.58 Strategic Highlights for 2001 -- Announced the signing of a definitive agreement to acquire American Bank of Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). (Amex: BKC BKC Burger King Corporation BKC Bible Knowledge Commentary BKC Burgess Kershaw Consultants BKC Bethany Korean Church BKC Backup Catalog BKC BatchKennisCentrum (Dutch: Batch Knowledge Centre) BKC Backup Copy ) for $153 million in cash and stock -- Enrolled over 3,700 retail and business customers for Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking, including nearly 1,200 customers using bill paying features -- Successfully expanded lending in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , generating $86
million in residential mortgage loans and $12 million in home equity lines of credit -- American Financial Holdings was added to the S & P SmallCap 600 Index in June June: see month. and the Nasdaq Financial-100 Index in December Review of Financial Results The Company reported net income of $28.6 million, or $1.33 per diluted share for the year ended December 31, 2001. For the three months ended December 31, 2001, net income was $6.9 million, or $0.35 per diluted share, compared to net income of $7.5 million or $0.30 per diluted share for the corresponding period in 2000. Despite a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in economic growth, asset quality remained strong as the ratio of non-performing assets to total assets was 0.23% at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , and the allowance for loan losses was 258.97% of 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 year-end. Core deposits increased 19.4% to $446.6 million, while higher cost time deposits decreased $74.5 million, resulting in a $2.1 million decline in total deposits for the year. Borrowings increased $133.5 million for 2001 to fund loan growth, stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. and to replace higher cost time deposits. The Bank's continued success in generating loan volume by targeting new market areas in Connecticut and Massachusetts, as well as a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment, contributed to net loan growth of $63.8 million, or 5.5%, for the year ended December 31, 2001. The Company continued its stock repurchase programs buying 6.2 million shares at a cost of $137.2 million, or an average of $22.01 per share. The opportunity to 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. American Financial stock continues to be an attractive investment alternative and capital management tool to enhance shareholder value. Net interest margin declined from 3.81% to 3.54% for the 12 months ended December 31, 2001. This was primarily due to the increase in borrowings to fund the stock repurchase program and to a decrease in interest income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the purchase of Bank Owned Life Insurance, where the earnings from the cash value build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. were recorded as non-interest income. Salaries and employee benefits increased $4.1 million to $22.5 million primarily due to charges of $1.7 million for options vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: for retired directors; the increased cost of $1.3 million for restricted stock award charges for a full year in 2001, verses approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. six months of restricted stock award expenses in 2000; and an increase of $878,000 for the Employee Stock Ownership Plan, resulting from the higher share price of the Company's stock. Completed Acquisition of American Bank of Connecticut The acquisition of American Bank of Connecticut, which was announced on July July: see month. 19, 2001, was completed January January: see month. 18, 2002. This has increased AMFH's assets from $1.9 billion to approximately $2.8 billion and expanded the branch network from 17 to 34, further broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad the Company's banking franchise in the state of Connecticut. American Savings Bank is the third largest Connecticut-based bank in both assets and deposit market share. The combination is an ideal, strategic fit for American Financial since it provides an opportunity to expand its geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. reach into markets similar to those already served, as well as to export its expertise in consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against to an entirely new customer base. The transaction will also allow the Company to leverage the commercial products offered by American Bank to accelerate American Savings' commercial lending initiative. The combined strength of American Savings and American Bank provides customers access to a greater breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of 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. , and the added convenience of a substantially larger delivery channel network. American Savings will continue to provide an exceptional level of attentive at·ten·tive adj. 1. Giving care or attention; watchful: attentive to detail. 2. Marked by or offering devoted and assiduous attention to the pleasure or comfort of others. customer service and accessibility to management that are the hallmarks of both institutions. "Due to the extraordinary effort put forth by the employees of both banks, the integration process has been a seamless See seamless integration. transition for our customers," commented Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. T. Kenney Kenney can refer to: People
"We believe we will exceed our cost save targets of approximately 20% of American Bank operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . We are very pleased that we have been able to retain over 70% of American Bank employees, not only to service the 17 additional branches, but to fill open positions within American Savings," he continued. "I am gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack E. Solberg, former President and CEO of American Bank, has decided to join the American Savings executive team as Senior Executive Vice President and Chief Banking Officer. Additionally, Earl T.Young, who had been Executive Vice President and Chief Lending Officer with American Bank, will join the executive team as Executive Vice President and Chief Commercial Banking Officer to insure Insure can mean:
As part of the consideration for American Bank shareholders, approximately 3.2 million shares of stock were issued, giving the Company a total of approximately 23.8 million shares of common stock outstanding at the close of the transaction on January 18, 2002. Based on current market conditions and the financial conditions and performance of the Company, it is the Company's intention to repurchase an amount of shares equal to the approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. amount of those shares issued in consideration for American Bank. American Savings Foundation At its fourth quarter meeting, the Board of Directors of the American Savings Foundation approved 15 grants totaling $193,000. This brought the Foundation's combined total for 2001 in grants, scholarships and sponsorship contributions to $1.7 million. In response to the acquisition of American Bank of Connecticut, the Foundation adopted the Greater Waterbury Waterbury, industrial city (1990 pop. 108,961), New Haven co., W Conn., on the Naugatuck River; settled 1674, inc. as a city 1853. The city, once famous for its brass industry, is a financial and commercial center of W Connecticut. Area as a part of its funding territory and earmarked a total commitment of $500,000 in grants and college scholarships for 2002. This represents 20% of the Foundation's total contributions and scholarships budget of $2.5 million. With assets of over $65 million as of December 31, 2001, the American Savings Foundation ranks among the largest community bank foundations in the country. Management Comment "A significant initiative in 2001 was the agreement to acquire American Bank of Connecticut and the seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. that occurred during the January 18, 2002 weekend. Both our branch network and product offerings were expanded and capital was strategically deployed," commented Robert T. Kenney. "Financial performance improved during a challenging economic period that was highlighted by interest rates moving to 40 year lows," Mr. Kenney said. "This precipitated a shift to fixed rate loans by consumers who took advantage of these rates to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. their debt, and American Savings closed on a record number (1,294) of residential mortgage loans in 2001." While rates were favorable, the bank extended the duration of its Federal Home Loan Bank borrowings to take advantage of the low cost source of funding. These long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. borrowings funded the stock repurchase programs. "The strategic initiatives recently completed will prove to be critical to our success and have paved pave tr.v. paved, pav·ing, paves 1. To cover with a pavement. 2. To cover uniformly, as if with pavement. 3. To be or compose the pavement of. the way for continued improvement in our financial fundamentals," he concluded. Conclusion The Company will continue to focus on enhancing shareholder value by expanding its product line and broadening geographic distribution, while growing the core bank franchise in its established markets and effectively executing capital management strategies. American Financial Holdings, Inc. is the holding company for American Savings Bank. Established in 1862, American Savings operates 34 branches in 21 communities throughout central Connecticut. Additional information can be found on the Company's website: www.americanfinancialholdings.com. The Company is part of the Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. , the S & P SmallCap 600 Index and the Nasdaq Financial-100 Index. 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. about the effect of the acquisition of American Bank by the Company. These statements include statements regarding the anticipated cost savings of the combined entity and the anticipated future results of operations and growth of the combined company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend," or future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," " would," "should," "could," or "may." Certain factors that could cause actual results to differ materially from those expected include unforeseen delays or difficulties in integrating American Bank's operations into the Company, difficulties in achieving cost savings from the acquisition or in achieving such cost savings within expected time frames, increased competitive pressures, changes in the interest rate environment, changes in regional and general economic conditions, legislative and 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. changes that adversely affect the business in which the Company is engaged, and changes in the securities markets. TABLES FOLLOW
American Financial Holdings, Inc.
Financial Summary
(Unaudited) Three Months Twelve Months
Ended December 31, Ended December 31,
2001 2000 2001 2000
(Dollars in thousands, except per share)
SUMMARY OF OPERATIONS
Interest Income $ 28,959 $ 32,458 $ 121,028 $ 127,623
Interest Expense 14,643 15,580 61,240 59,931
Net Interest Income 14,316 16,878 59,788 67,692
Provision for Loan
Losses -- 375 450 1,895
Net Interest Income
After
Provision for Loan
Losses 14,316 16,503 59,338 65,797
Non-Interest Income 4,447 2,944 18,654 12,094
Non-Interest Expense 8,605 8,414 36,046 31,046
Income Before Taxes 10,158 11,033 41,946 46,845
Tax Expense 3,262 3,499 13,316 15,719
Net Income $ 6,896 $ 7,534 $ 28,630 $ 31,126
PER SHARE
Net Income
- Basic $ 0.38 $ 0.30 $ 1.40 $ 1.19
Net Income
- Diluted $ 0.35 $ 0.30 $ 1.33 $ 1.18
Market Value Closing
sales price as
reported on the
NASDAQ Stock Market $ 25.41 $ 20.63
End of Period Shares
Outstanding 20,612,861 26,777,545
Average Weighted
Shares Outstanding
(basic) 18,020,991 25,127,179 20,446,613 26,211,100
Average Weighted
Shares Outstanding
(diluted) 19,710,385 25,522,565 21,556,293 26,371,463
PROFITABILITY RATIOS
Return on Average
Assets (1) 1.43% 1.62% 1.51% 1.66%
Return on Average
Equity (1) 7.02 5.89 6.59 5.91
Net Yield on Earnings
Assets (t/e basis) 6.77 7.46 7.11 7.19
Efficiency Ratio (2) 50.35 45.40 48.91 42.11
Book Value per Share $ 19.16 $ 19.19
CAPITAL RATIOS FOR
AMERICAN SAVINGS
BANK AT DECEMBER 31
Tier 1 Capital to
Average Assets 17.74% 19.25%
Tier 1 Capital to Risk
Weighted Assets 28.43 31.90
Total Capital to Risk
Weighted Assets 31.30 35.60
ASSET QUALITY
Non-Accrual Loans $ 4,204 $ 3,013
Accruing Loans Past
Due 90 Days or More -- --
Foreclosed and
Repossessed Assets 77 211
Allowance for Loan
Losses 10,887 10,624
Net Charge-offs $ 2 $ 27 186 252
Non-Performing Loans
to Net Loans 0.35% 0.26%
Non-Performing Assets
to Total Assets 0.23 0.17
Allowance for Loan
Losses to Net Loans 0.90 0.92
Net Charge-Offs to
Average Loans n/m 0.002% 0.02 0.02
Allowance for Loan
Losses to
Non-Performing Loans 258.97 352.58
AVERAGE BALANCES
Investment Securities
Portfolio $ 494,334 $ 611,257 $ 521,481 $ 689,379
Loans 1,231,998 1,139,578 1,192,331 1,086,721
Interest Earning
Assets 1,726,332 1,750,835 1,713,812 1,776,100
Assets 1,925,116 1,864,269 1,901,841 1,879,202
Interest Bearing
Deposits 1,086,648 1,099,206 1,089,914 1,100,312
Stockholders'
Equity 392,906 511,750 434,669 526,729
SELECTED FINANCIAL
DATA AT PERIOD END
Investment Securities
Portfolio $ 536,394 $ 606,481
Loans 1,214,847 1,151,048
Interest Earning
Assets 1,786,800 1,781,484
Assets 1,900,596 1,873,458
Deposits 1,124,249 1,126,336
Stockholders' Equity 394,947 513,967
(1) Income is annualized
(2) Non-interest expense exclusive of one time employee benefit charge
divided by the sum of net interest income plus non-interest income
less gain on sale of securities
(nm) Not meaninful
AMERICAN FINANCIAL HOLDINGS, INC.
Consolidated Statements of Income
(unaudited)
For the For the
Three Months Twelve Months
Ended December 31, Ended December 31,
2001 2000 2001 2000
(In thousands, except per share data)
Interest and dividend income:
Real estate mortgage loans $ 14,908 $ 14,706 $ 60,025 $ 55,371
Consumer and commercial loans 5,491 6,952 24,294 25,704
Mortgage-backed securities 3,686 4,755 15,945 21,625
Federal funds sold 69 656 550 987
Investment securities:
Interest-taxable 3,331 4,111 14,732 19,404
Interest-tax exempt 443 374 1,584 1,246
Dividends 1,031 904 3,898 3,286
Total interest and
dividend income 28,959 32,458 121,028 127,623
Interest expense:
Deposits 9,801 12,644 44,505 48,024
Federal Home Loan
Bank advances and other
borrowings 4,842 2,936 16,735 11,907
Total interest expense 14,643 15,580 61,240 59,931
Net interest income before
provision for loan losses 14,316 16,878 59,788 67,692
Provision for loan losses -- 375 450 1,895
Net interest income after
provision for loan losses 14,316 16,503 59,338 65,797
Non-interest income:
Service charges and fees 1,462 1,090 5,190 3,977
Investment commissions and
advisory fees 405 329 1,695 1,545
Net gains on sale of
securities available
for sale 1,673 1,289 8,212 6,068
Increase in cash surrender
value of life insurance 787 21 3,122 21
Other 120 215 435 483
Total non-interest income 4,447 2,944 18,654 12,094
Non-interest expense:
Salaries and employee
benefits 5,295 5,038 22,508 18,441
Occupancy expense 630 591 2,576 2,380
Furniture and fixture
expense 447 419 1,750 1,706
Outside services 582 838 2,785 2,816
Advertising 215 281 1,422 1,371
Other 1,436 1,247 5,005 4,332
Total non-interest expense 8,605 8,414 36,046 31,046
Income before income taxes 10,158 11,033 41,946 46,845
Income taxes 3,262 3,499 13,316 15,719
Net income $ 6,896 $ 7,534 $ 28,630 $ 31,126
Basic earnings per share $ 0.38 $ 0.30 $ 1.40 $ 1.19
Diluted earnings per share 0.35 0.30 1.33 1.18
American Financial Holdings, Inc.
Consolidated Balance Sheets
(Unaudited) (Audited)
Dec. 31, 2001 Dec. 31, 2000
(In thousands, except per share data)
Assets
Cash and due from banks:
Non-interest bearing $ 20,903 $ 17,293
Interest bearing 1,230 21
Total cash and due from
banks 22,133 17,314
Federal funds sold 17,050 11,740
Cash and cash equivalents 39,183 29,054
Investment securities available
for sale (amortized cost of
$249,354 at December 31, 2001
and $275,677 at
December 31, 2000) 311,293 351,211
Mortgage-backed securities
available for sale
(amortized cost of $217,537
at December 31, 2001 and
$250,907 at December 31, 2000) 225,101 255,270
Loans, less allowance for loan
losses of $10,887 at
December 31, 2001 and
$10,624 at December 31, 2000 1,214,847 1,151,048
Accrued interest and dividends
receivable on investments 6,076 7,058
Accrued interest receivable
on loans 5,044 5,954
Federal Home Loan Bank stock 17,279 12,194
Bank premises and equipment, net 13,490 13,348
Real estate owned 77 211
Cash surrender value of
life insurance 63,144 45,022
Other assets 5,062 3,088
Total assets $1,900,596 $1,873,458
Liabilities and Stockholders' Equity
Deposits $ 1,124,249 $ 1,126,336
Mortgagors' escrow and other
deposits 27,505 19,554
FHLB advances and other
borrowings 311,444 177,944
Deferred income tax
liability 19,321 24,280
Accrued interest payable on
deposits and FHLB advances 1,855 1,622
Other liabilities 21,275 9,755
Total liabilities 1,505,649 1,359,491
Stockholders' Equity
Preferred stock, $.01 par value;
authorized 10,000,000 shares,
none issued -- --
Common stock, $.01 par value;
authorized 120,000,000 shares,
issued 28,871,100 shares at
December 31, 2001 and 2000 289 289
Additional paid-in capital 285,953 282,676
Unallocated common stock held
by ESOP (2,014,958 shares at
December 31, 2001 and
2,133,484 shares at
December 31, 2000) (22,386) (23,703)
Stock-based compensation (266) (78)
Treasury stock at cost
(9,120,791 shares at
December 31, 2001 and
3,198,395 shares at
December 31, 2000) (188,746) (56,707)
Retained earnings 278,315 263,452
Accumulated other
comprehensive income 41,788 48,038
394,947 513,967
Total liabilities and
stockholders' equity $ 1,900,596 $ 1,873,458
American Financial Holdings, Inc.
Consolidated Average Balance Sheet and Yield/Rate Analysis
(Unaudited)
For the Three Months Ended
December 31, 2001 December 31, 2000
Average Interest Average Average Interest Average
Balance Yield/ Balance Yield/
Rate Rate
(Dollars in thousands)
Interest earnings
assets:
Loans (1) $1,231,998 $ 20,399 6.62% $1,139,578$ 21,658 7.60%
Federal funds
sold 13,766 69 2.00 39,206 656 6.69
Investment
securities-
taxable 218,292 4,173 7.65 256,565 4,771 7.44
Investment
securities-
tax exempt (2) 32,452 681 8.39 26,888 547 8.14
Mortgage-backed
securities 212,545 3,686 6.94 276,404 4,755 6.88
FHLB stock 17,279 189 4.38 12,194 245 8.04
Total interest
-earning
assets 1,726,332 $ 29,197 6.77% 1,750,835$ 32,632 7.46%
Non-interest
-earning
assets 198,784 113,434
Total assets $1,925,116 $1,864,269
Interest-bearing
liabilities:
Deposits
Money
management
accounts $ 95,724 $ 527 2.20% $ 61,953 $ 452 2.92%
NOW accounts 85,089 124 0.58 83,259 285 1.37
Savings and IRA
passbook
accounts 221,665 997 1.80 204,184 1,039 2.04
Certificates of
deposit 684,170 8,153 4.77 749,810 10,868 5.80
Total interest
-bearing
deposits 1,086,648 9,801 3.61 1,099,206 12,644 4.60
FHLB advances
and other
borrowings 348,703 4,842 5.55 190,347 2,936 6.17
Total
interest
-bearing
liabilities 1,435,351 $ 14,643 4.08% 1,289,553$ 15,580 4.83%
Non-interest
bearing
demand
deposits 42,039 25,909
Non-interest
-bearing
liabilities 54,820 37,057
Total
liabilities 1,532,210 1,352,519
Stockholders'
Equity 392,906 511,750
Total
liabilities
and equity $1,925,116 $ 1,864,269
Net interest-
earning assets $ 290,981 $ 461,282
Net interest
income $ 14,554 $ 17,052
Interest rate
spread 2.69% 2.63%
Net interest
margin (net
interest
income as a
percentage of
interest
-earning
assets) 3.37% 3.90%
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 120.27% 135.77%
Note 1- Average balances include nonaccrual loans
Note 2- Tax exempt interest is calculated on a tax equivalent basis.
American Financial Holdings, Inc.
Consolidated Average Balance Sheet and Yield/Rate Analysis
(Unaudited)
For the Twelve Months Ended
December 31, 2001 December 31, 2000
Average Interest Average Average Interest Average
Balance Yield/ Balance Yield/
Rate Rate
(Dollars in thousands)
Interest earnings
assets:
Loans(1) $1,192,331 $ 84,319 7.07% $1,086,721 $ 81,075 7.46%
Federal funds
sold 13,084 550 4.20 15,348 987 6.43
Investment
securities
-taxable 234,151 17,790 7.60 313,808 21,691 6.91
Investment
securities
-tax exempt(2) 28,624 2,437 8.51 22,440 1,289 5.74
Mortgage-backed
securities 231,020 15,945 6.90 324,600 21,625 6.66
FHLB stock 14,602 840 5.75 13,183 999 7.58
Total
interest-
earning
assets 1,713,812 $121,881 7.11% 1,776,100 $127,666 7.19%
Non-interest-
earning
assets 188,029 103,102
Total assets $1,901,841 $1,879,202
Interest-bearing
liabilities:
Deposits
Money
management
accounts $ 84,848 $ 2,370 2.79% $62,295 $ 1,709 2.74%
NOW accounts 86,205 654 0.76 79,624 1,082 1.36
Savings and
IRA passbook
accounts 213,642 4,142 1.94 202,725 4,101 2.02
Certificates
of deposit 705,219 37,339 5.29 755,668 41,132 5.44
Total
interest-
bearing
deposits 1,089,914 44,505 4.08 1,100,312 48,024 4.36
FHLB advances
and other
borrowings 293,894 16,735 5.69 196,141 11,907 6.07
Total
interest-
bearing
liabilities 1,383,808 $ 61,240 4.43% 1,296,453 $ 59,931 4.62%
Non-interest
bearing demand
deposits 36,107 25,181
Non-interest-
bearing
liabilities 47,257 30,839
Total
liabilities 1,467,172 1,352,473
Stockholders'
Equity 434,669 526,729
Total
liabilities
and equity $1,901,841 $1,879,202
Net
interest-
earning
assets $ 330,004 $ 479,647
Net interest
income $ 60,641 $ 67,735
Interest
rate spread 2.68% 2.57%
Net interest
margin (net
interest
income as a
percentage of
interest-
earning
assets) 3.54% 3.81%
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 123.85% 137.00%
Note 1- Average balances include nonaccrual loans
Note 2- Tax exempt interest is calculated on a tax equivalent basis.
American Financial Holdings, Inc.
Consolidated Statements of Income
(Unaudited)
2001
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
(Dollars in thousands, except per share data)
Interest and dividend income:
Real estate and
mortgage loans $14,908 $15,410 $14,809 $14,898
Consumer and
commercial loans 5,491 5,940 6,153 6,710
Mortgage-backed securities 3,686 3,879 4,121 4,259
Federal funds sold 69 3 208 270
Investment securities:
Interest taxable 3,331 3,586 3,765 4,050
Interest-tax exempt 443 391 375 375
Dividends 1,031 1,038 946 883
Total interest
and dividend income 28,959 30,247 30,377 31,445
Interest expense:
Deposits 9,801 10,677 11,863 12,164
Federal Home Loan Bank
advances and other
short-term borrowings 4,842 4,636 3,828 3,429
Total interest expense 14,643 15,313 15,691 15,593
Net interest income
before provision
for loan losses 14,316 14,934 14,686 15,852
Provision for loan losses -- 50 100 300
Net interest income
after provision
for loan losses 14,316 14,884 14,586 15,552
Non-interest income:
Service charges and fees 1,462 1,325 1,334 1,069
Investment commissions
and advisory fees 405 400 501 389
Net gains on sale
of securities
available for sale 1,673 1,381 3,838 1,320
Increase in cash
surrender value
of life insurance 787 742 800 793
Other 120 93 116 106
Total non-interest income 4,447 3,941 6,589 3,677
Non-interest expense:
Salaries and
employee benefits 5,295 5,476 6,948 4,789
Occupancy expense 630 598 656 692
Furniture and
fixtures expense 447 436 443 424
Outside services 582 748 713 742
Advertising 215 256 528 423
Other 1,436 1,167 1,234 1,168
Total non-interest expense 8,605 8,681 10,522 8,238
Income before income taxes 10,158 10,144 10,653 10,991
Income taxes 3,262 3,110 3,403 3,541
Net income $ 6,896 $ 7,034 $ 7,250 $ 7,450
Basic earnings per share $ 0.38 $ 0.37 $ 0.35 $ 0.32
Diluted earnings per share $ 0.35 $ 0.34 $ 0.34 $ 0.31
2000
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
(Dollars in thousands, except per share data)
Interest and dividend income:
Real estate and
mortgage loans $14,706 $14,118 $13,389 $13,158
Consumer and
commercial loans 6,952 6,699 6,227 5,826
Mortgage-backed securities 4,755 5,351 5,775 5,744
Federal funds sold 656 123 38 170
Investment securities:
Interest taxable 4,111 4,750 5,222 5,321
Interest-tax exempt 374 372 291 209
Dividends 904 930 788 664
Total interest
and dividend income 32,458 32,343 31,730 31,092
Interest expense:
Deposits 12,644 12,222 11,673 11,485
Federal Home Loan Bank
advances and other
short-term borrowings 2,936 3,243 2,805 2,923
Total interest expense 15,580 15,465 14,478 14,408
Net interest income
before provision
for loan losses 16,878 16,878 17,252 16,684
Provision for loan losses 375 400 570 550
Net interest income
after provision
for loan losses 16,503 16,478 16,682 16,134
Non-interest income:
Service charges and fees 1,090 1,072 918 897
Investment commissions
and advisory fees 329 302 469 445
Net gains on sale
of securities
available for sale 1,289 1,793 1,570 1,416
Increase in cash
surrender value
of life insurance 21 -- -- --
Other 215 90 89 89
Total non-interest income 2,944 3,257 3,046 2,847
Non-interest expense:
Salaries and
employee benefits 5,038 5,459 4,047 3,897
Occupancy expense 591 559 582 648
Furniture and
fixtures expense 419 430 416 441
Outside services 838 480 563 935
Advertising 281 330 411 349
Other 1,247 1,014 1,082 989
Total non-interest expense 8,414 8,272 7,101 7,259
Income before income taxes 11,033 11,463 12,627 11,722
Income taxes 3,499 3,833 4,240 4,147
Net income $ 7,534 $ 7,630 $ 8,387 $ 7,575
Basic earnings per share $ 0.30 $ 0.30 $ 0.31 $ 0.28
Diluted earnings per share $ 0.30 $ 0.29 $ 0.31 $ 0.28
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