American Financial Holdings, Inc. Announces First Quarter EPS of $.28; Board of Directors Declare Cash Dividend.Business 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)--April 24, 2000 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 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 :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. and the third largest public banking institution based in 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). , today reported operating results for the quarter ended March 31, 2000, the first full quarter since the completion of the bank's conversion in November November: see month. 1999. In addition, the 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 cash dividend of $.15 per share for the quarter ended March 31, 2000, to shareholders of record on May 4, 2000. Payment of the cash dividend will be made on May 19, 2000.
First Quarter Financial Highlights
-- Reported earnings per share of $.28
-- Net income rose 48% to $7.6 million over the first quarter of 1999
-- Loans increased $137.6 million or 15.1% from March 31, 1999
-- Non-performing assets to total assets was .17% at March 31, 2000
-- Book value per share was $18.90 as of March 31, 2000
-- Return on average assets was 1.61% for the quarter ended March 31,
2000, while the efficiency ratio stood at 40.1%
-- Deposits grew $16.4 million during the first quarter 2000, of
which $6.1 million was core deposits
-- Borrowings declined $27.5 million during the first quarter 2000
-- Declared dividend of $.15 per share based on first quarter results
Strategic Highlights
-- Continued implementation of a financial services program whereby
banking personnel are licensed to offer mutual funds and annuities
in addition to deposit products, contributing to a 36.4% increase
in gross commissions
-- Continued aggressive equity line of credit promotion and
utilization of 24 hour/7 day application processing and approval
for home equity lines and loans
-- Developed retail checking account growth strategy to increase core
deposit relationships
-- Initiated development of comprehensive internet banking strategy;
launched on-line mortgage pre-qualification application; and
purchased AS/400 software to support an internal, 24 hour/7 day
data processing environment for internet banking
-- Initiated development of commercial banking product line
-- Implemented dividend policy consistent with capital management
strategies First Quarter Results
American Financial Holdings, Inc. reported net income of $7.6 million, or $.28 per share for the quarter ended March 31, 2000. This represents an increase of 48% from $5.1 million over the 1999 comparable quarter. The increase in earnings was primarily driven by the increase in net interest income generated from earnings on the additional capital of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $261 million as a result of the bank's conversion to a public company, and to growth in fee-based income. Earnings in the current quarter were less attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to gains from the sale of securities than the same quarter last year. Gains on the sale of investment securities decreased 49.8% to $1.4 million for the quarter ended March 31, 2000. Net loans were $1,052 million at March 31, 2000, an increase of 2.2% from December December: see month. 31, 1999. Asset quality continued to remain strong in the first quarter as 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. to total loans was .30% at March 31, 2000. Service charges and fee income increased 21.7% to $1.3 million for the first quarter of 2000 as compared to the same period in the prior year. Included in this increase were gross commissions from American Investment Services, Inc., the bank's investment services subsidiary, which increased 36.4% to $434,000. The strong performance of American Investment Services was partially attributable to the continued implementation of a 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. program whereby banking personnel are licensed to offer mutual funds and annuities in addition to deposit products. Initial Cash Dividend Declared by Board of Directors American Financial Holdings, Inc. also announced today that its Board of Directors has approved a dividend policy, enabling the initial quarterly dividend of $.15 per share. Future dividends will be set based on the Company's capital level, earnings and financial opportunities. American Savings Foundations During the first quarter, the American Savings Bank Foundation (founded in 1995) set its year 2000 charitable distributions budget at $500,000. This will include grants made to not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. organizations that provide community-based educational programs, and scholarships to students pursuing higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. . The newly-created American Savings Charitable Foundation held its first Board of Directors meeting and established its grantmaking budget for the year 2000. Taken together, the two foundations project a total disbursement DISBURSEMENT. Literally, to take money out of a purse. Figuratively, to pay out money; to expend money; and sometimes it signifies to advance money. 2. of $850,000 this year and $1.5 million in 2001. The combined assets of the foundations had a market value of approximately $37 million at March 31, 2000, making it one of Connecticut's largest independent corporate foundations. Management Comment Commenting on the Company's performance, 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
tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad our product offerings to strengthen our position in today's highly competitive environment." Mr. Kenney added, "We are also pleased to announce our first cash dividend, which reflects the Company's solid financial performance as well as our commitment to enhancing 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. shareholder value." Conclusion The Company will continue to focus on enhancing shareholder value by expanding its product line and broadening 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. 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 and the third largest public banking institution based in Connecticut. Established in 1862, American Savings operates 17 branches in 12 communities throughout central Connecticut. Statements contained in this Press Release which are not historical facts are 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. , as the term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, such as changes in market interest rates, the actions of our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. and changes in regulation or legislation that apply to the Company and the bank.
American Financial Holdings, Inc.
Financial Summary
(Unaudited)
Three Months Ended
March 31, March 31,
2000 1999
(Dollars in thousands,
except per share)
SUMMARY OF OPERATIONS
Interest Income $ 31,092 $ 24,680
Interest Expense 14,408 13,398
Net Interest Income 16,684 11,282
Provision for Loan Losses 550 600
Net Interest Income After Provision
for Loan Losses 16,134 10,682
Non-Interest Income 2,847 4,043
Non-Interest Expense 7,259 7,091
Income Before Taxes 11,722 7,634
Tax Expense 4,147 2,521
Net Income $ 7,575 $ 5,113
PER SHARE
Net Income - Basic $ 0.28 n/a
Net Income - Diluted 0.28 n/a
Market Value Closing sales price as
reported on the NASDAQ Stock Market 12.063 n/a
Common Stock Outstanding 28,871,100 n/a
PROFITABILITY RATIOS
Return on Average Assets (1) 1.61% 1.3%
Return on Average Equity (1) 5.71 7.29
Net Yield on Earnings Assets 6.99 6.73
Efficiency Ratio 40.07 55.11
Book Value per Share $ 18.90 n/a
CAPITAL RATIOS FOR AMERICAN
SAVINGS BANK AT MARCH 31
Tier 1 Capital to Average Assets 20.89% 15.50%
Tier 1 Capital to Risk Weighted Assets 35.42 25.94
Total Capital to Risk Weighted Assets 39.20 29.88
ASSET QUALITY
Non-Accrual Loans $ 3,160 $ 3,203
Accruing Loans Past Due 90 Days or More -- --
Foreclosed and Repossessed Assets 58 716
Allowance for Loan Losses 9,241 7,888
Net Charge-offs 141 386
Non-Performing Loans to Loans 0.30% 0.35%
Non-Performing Assets to Total Assets 0.17 0.25
Allowance for Loan Losses to Loans 0.88 0.86
Net Charge-Offs to Average Loans 0.01 0.04
Allowance for Loan Losses to
Non-Performing Loans 292.43 246.27
AVERAGE BALANCES FOR THE QUARTER ENDED
Investment Securities Portfolio $ 740,578 $ 554,361
Loans 1,039,776 909,090
Earning Assets 1,784,765 1,466,270
Assets 1,877,416 1,569,653
Deposits 1,102,599 1,104,816
Stockholders' Equity 531,079 280,504
SELECTED FINANCIAL DATA FOR
THE QUARTER ENDED
Investment Securities Portfolio $ 805,811 $ 618,402
Loans 1,052,054 914,458
Earning Assets 1,857,865 1,532,860
Assets 1,900,327 1,584,010
Deposits 1,135,241 1,140,771
Stockholders' Equity 545,804 283,368
(1) Income is annualized
American Financial Holdings, Inc.
Consolidated Statement of Income
(Unaudited) Three Months Ended
March 31, March 31,
2000 1999
(Dollars in thousands,
except per share)
Interest and dividend income:
Real Estate and mortgage loans $13,158 $11,515
Consumer loans 5,826 5,094
Mortgage-backed securities 5,744 2,762
Federal funds sold 170 498
Investment securities:
Interest-taxable 5,321 4,120
Interest-tax exempt 209 --
Dividends 664 691
Total interest and dividend income 31,092 24,680
Interest expense:
Deposits 11,485 11,605
Federal Home Loan Bank advances and
other short-term borrowings 2,923 1,793
Total interest expense 14,408 13,398
Net interest income before
provision for loan losses 16,684 11,282
Provision for loan losses 550 600
Net interest income after
provision for loan losses 16,134 10,682
Non-interest income:
Service charges and fees 1,301 1,069
Gain on sale of investment securities 1,416 2,822
Net gain on sale of loans 2 44
Other 128 108
Total non-interest income 2,847 4,043
Non-interest expense:
Salaries and employee benefits 3,897 3,860
Occupancy expense 648 578
Furniture and fixture expense 441 383
Charitable contributions 35 236
Outside Services 935 747
Advertising 349 404
Other 954 883
Total non-interest expense 7,259 7,091
Income before income taxes 11,722 7,634
Income taxes 4,147 2,521
Net income $ 7,575 $ 5,113
Basic earnings per share 0.28 n/a
Diluted earnings per share 0.28 n/a
American Financial Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2000 1999
(Dollars in thousands)
Assets Cash and due from banks:
Non-interest bearing $ 12,870 $ 23,290
Interest bearing 16 5,014
12,886 28,304
Federal funds sold 13,750 2,300
Cash and cash equivalents 26,636 30,604
Investment securities available for sale
(amortized cost of $362,643 at
March 31, 2000 and $378,763,
at December 31, 1999) 432,747 435,832
Mortgage-backed securities available
for sale(amortized cost of $355,745
at March 31, 2000 and $348,281
at December 31, 1999) 347,120 341,421
Loans, less allowance for loan losses of
$9,241 at March 31, 2000 and
$8,820 at December 31, 1999 1,052,054 1,029,531
Real estate owned 58 445
Accrued interest and dividends
receivable on investments 8,602 8,833
Accrued interest receivable on loans 5,572 5,697
Federal Home Loan Bank stock 12,194 16,402
Bank premises and equipment, net 13,486 13,373
Other assets 1,858 4,015
Total assets $ 1,900,327 $ 1,886,153
Liabilities and Stockholders' Equity
Deposits $ 1,135,241 $ 1,118,881
Mortgagors' escrow deposits 5,492 356
FHLB advances and other borrowings 186,944 214,444
Deferred income tax liability 16,335 11,835
Accrued interest payable on deposits
and FHLB advances 1,365 1,556
Other liabilities 9,146 7,629
Total liabilities 1,354,523 1,354,701
Stockholders' Equity
Preferred stock, $.01 par value;
authorized 10,000,000 shares
None issued - -
Common stock, $.01 par value;
authorized 120,000,000 shares,
28,871,100 shares outstanding
at March 31, 2000 289 289
Additional paid-in capital 282,148 282,148
Unallocated common stock held
by ESOP (2,252,010 shares
at March 31, 2000) (25,020) (25,020)
Stock-based compensation (160) (160)
Retained earnings 251,582 244,007
Accumulated other comprehensive income 36,965 30,188
545,804 531,452
Total liabilities and
stockholders equity $ 1,900,327 $ 1,886,153
American Financial Holdings, Inc.
Consolidated Average Balance Sheet and Yield/Rate Analysis
(Unaudited)
For the Quarters Ended
March 31, 2000 March 31, 1999
Average Interest Average Average Interest Average
Balance Yield/ Balance Yield/
Rate Rate
(Dollars in thousands)
Interest earnings
assets:
Loans (1) $1,039,776 $18,984 7.30% $909,090 $16,609 7.31%
Federal
funds sold 11,980 170 5.71 42,090 498 4.80
Investment
securities
-taxable 346,088 5,662 6.58 329,689 4,621 5.68
Investment
securities-
tax exempt (2) 15,258 321 8.46 -- -- --
Mortgage-backed
securities 351,081 5,744 6.54 173,116 2,762 6.38
FHLB stock 16,171 260 6.47 9,466 155 6.64
Interest-earning
deposits 4,411 63 5.74 2,819 35 5.04
Total interest
-earning
assets 1,784,765 $31,204 6.99% 1,466,270 24,680 6.73%
Non-interest
-earning assets 92,651 103,383
Total assets $1,877,416 $1,569,653
Interest-bearing
liabilities:
Deposits
Money management
accounts $64,219 $424 2.66% $64,079 $433 2.74%
NOW accounts 74,333 252 1.36 65,528 219 1.36
Savings and
IRA passbook
accounts 198,292 996 2.02 195,642 972 2.01
Certificates
of deposit 765,755 9,813 5.15 779,567 9,981 5.19
Total interest
-bearing
deposits 1,102,599 11,485 4.19 1,104,816 11,605 4.26
FHLB advances
and other
borrowings 198,056 2,923 5.94 123,512 1,793 5.89
Total interest
-bearing
liabilities 1,300,655 $14,408 4.46% $1,228,328 13,398 4.42%
Non-interest
bearing demand
deposits 23,344 23,924
Non-interest
-bearing
liabilities 22,338 36,897
Total
liabilities 1,346,337 1,289,149
Stockholders'
Equity 531,079 280,504
Total
liabilities
and equity $1,877,416 $1,569,653
Net interest
-earning assets $484,110 $237,942
Net interest
income $16,796 $11,282
Interest rate
spread 2.53% 2.31%
Net interest
margin (net
interest
income as a
percentage of
interest-
earning assets) 3.76% 3.08%
Ratio of interest
-earning assets
to interest
-bearing
liabilities 137.22% 119.37%
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)
2000 1999
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
(Dollars in thousands, except per share)
Interest and dividend
income:
Real estate and
mortgage loans $ 13,158 $ 12,681 $12,448 $ 11,722 $ 11,515
Consumer loans 5,826 5,652 5,378 5,204 5,094
Mortgage-backed
securities 5,744 5,044 3,600 3,127 2,762
Federal funds sold 170 595 70 389 498
Investment securities
Interest taxable 5,321 5,247 4,249 4,154 4,120
Interest-tax exempt 209 122 0 0 0
Dividends 664 714 484 473 691
Total interest and
dividend income 31,092 30,055 26,229 25,069 24,680
Interest expense:
Deposits 11,485 11,349 11,256 11,507 11,605
Federal Home Loan Bank
advances and other
short-term borrowings 2,923 4,297 2,716 1,921 1,793
Total interest
expense 14,408 15,646 13,972 13,428 13,398
Net interest income
before provision
for loan losses 16,684 14,409 12,257 11,641 11,282
Provision for loan
losses 550 550 540 340 600
Net interest income
after provision
for loan losses 16,134 13,859 11,717 11,301 10,682
Non-interest income:
Service charges and
fees 1,301 1,139 1,219 1,186 1,069
Gain (loss) on sale of
securities 1,416 (2,581) 207 2,193 2,822
Gain on contribution
of investment
securities 0 0 0 209 0
Net gain on sale of
loans 2 2 2 11 44
Other 128 115 120 98 108
Total non-interest
income 2,847 (1,325) 1,548 3,697 4,043
Non-interest expense:
Salaries and employee
benefits 3,897 7,185 3,652 2,888 3,860
Occupancy expense 648 728 588 587 578
Furniture and fixtures
expense 441 584 415 426 383
Charitable
contributions 35 20,770 238 214 236
Outside services 935 994 537 324 747
Advertising 349 394 283 271 404
Other 954 1,022 904 833 883
Total non-interest
expense 7,259 31,677 6,617 5,543 7,091
Income (loss) before
income taxes 11,722 (19,143) 6,648 9,455 7,634
Income taxes 4,147 (6,462) 2,642 3,110 2,521
Net income (loss) $ 7,575 $(12,681) $ 4,006 $ 6,345 $ 5,113
Earnings per share 0.28 n/m n/a n/a n/a
Diluted earnings per
share 0.28 n/m n/a n/a n/a
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