American Financial Holdings Announce First Quarter EPS Up 10.7% to $0.31.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 23, 2001 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. (AMFH: Nasdaq), 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. ("the Bank") 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 earnings of $0.31 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 quarter ended March 31, 2001 compared to earnings of $0.28 per diluted share for the same period in 2000. The Company announced that 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 $0.165 per share for the quarter, which is 10% higher than the dividend declared for the comparable period in 2000, to shareholders of record on May 3, 2001. Payment of the dividend is expected to be made on May 18, 2001. Financial Highlights --Reported earnings of $0.31 per diluted share for the first quarter ended March 31, 2001 --Loan originations increased $6.7 million, or 9.6%; the net loan portfolio remained flat due to loan payoffs associated with a high level of refinancing Refinancing An extension and/or increase in amount of existing debt. activity --Core deposits increased $23.1 million or 6.2% , while higher-priced time deposits decreased $27.1 million --Borrowings increased $74.5 million primarily to fund the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. of 2.9 million shares during the quarter for a total cost of $59.2 million --Service charges and fees increased $172,000, or 19.2% primarily due to an increase in account activity, a larger base of core deposit accounts and higher 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. --Return on average assets was 1.57% for the quarter --The efficiency ratio for the quarter was 45.24%, which remains significantly below industry averages --Non-performing assets to total assets were 0.17% for the quarter ended March 31, 2001, compared to 0.18% for the same period last year, and 0.17% for the quarter ended December December: see month. 31, 2000 Strategic Highlights --Completed two 5% share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. programs during the first quarter, followed by the announcement of a fourth 5% 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. program --Launched marketing campaign to support business banking introduction --Announced competitive deposit fee restructure, which is expected to enhance future fee income --Introduced fully functional 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 platform to customers --Established new banking relationships as a result of an affiliation affiliation (  fil´ēā´sh with AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. Automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of Club of Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. --Received an "Outstanding" Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. (CRA See Community Reinvestment Act. ) Rating from the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). Financial Report American Financial Holdings, Inc. reported net income of $7.5 million, or $0.31 per diluted share for the three-month period ended March 31, 2001. This represents an increase of 10.7% in 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 over the 2000 comparable period. Net loans remained flat in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a heavy refinancing environment due to an increase in loan closings of $6.7 million, a 9.6% increase over the corresponding period in 2000. This increase was a reflection of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment and the Company's focus on expanding its loan markets out of state. Asset quality remained strong 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 for the period ended March 31, 2001 decreased to 0.26% from 0.31% for the same period in 2000. The allowance for loan losses to non-performing loans was 368.3% at March 31, 2001 compared to 282.3% for the corresponding period in 2000. The allowance for loan losses to total loans was 0.94% for the period ended March 31, 2001 compared to 0.87% for the 2000 comparable period. Salaries and employee benefits increased $892,000 over the comparable three-month period of the prior year. This increase reflected the costs associated with awards under the stock-based incentive plan and the increase in the stock price from the prior year, which is the basis for recording charges related to the Employee Stock Ownership Plan. American Savings Foundation The American Savings Foundation announced that it projects its total giving in a falling inwards; a collapse. See also: Giving 2001 to be $1.7 million. During the first quarter, the Foundation continued to expand the size and scope of its grant funding with 15 new grants totaling $195,000. These included the first four grants for capital projects, highlighted by a $30,000 commitment towards "Our Children's Place," a handicap-accessible playground Playground - A visual language for children, developed for Apple's Vivarium Project. OOPSLA 89 or 90? in Newington Newington, town (1990 pop. 29,208), Hartford co., central Conn., a residential suburb of Hartford; settled 1670, inc. 1871. Its industries include milk processing and the manufacture of airplane parts, ball bearings, tools, and plumbing supplies. . The Foundation received a commendation COMMENDATION. The act of recommending, praising. A merchant who merely commends goods he offers for sale, does not by that act warrant them, unless there is some fraud: simplex commendatio non obligat. from the Newington Town Council in recognition of this gift. Over 350 new applications for college scholarships were received for the 2001 academic year. The Foundation has increased its allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for scholarships this year by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 37%, to a total of $375,000, which will provide funding for approximately 200 students attending college. Management Comment "American Savings Bank has achieved 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. double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. loan growth over the past five years by taking advantage of the strong housing market and vibrant economy. In spite of a slowing national economy, expansion of both our correspondent A bank, Securities firm, or other financial institution that regularly renders services for another in an area or market to which the other party lacks direct access. A bank that functions as an agent for another bank and carries a deposit balance for a bank in another city. loan network and out-of-state out-of-state adj. Of, relating to, or being from another state. loan markets will continue to support future loan growth," stated 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
"I am pleased to report our success in core deposit account growth due primarily to the introduction of business checking and retail money market accounts. These accounts are being offered to support core deposit growth and new business initiatives as we continue to position ourselves as a full service provider," Mr. Kenney continued. "Our earnings growth is also dependent on execution of effective capital management strategies. In this economic environment we can continue to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value by maintaining our high level of credit quality, continuing on our capital management strategy which includes stock repurchases and the pursuit of other opportunities that complement our super community bank strategy," he concluded. Annual Meeting The 2001 Annual Meeting of Shareholders will be held on Monday Monday: see week. , April 30, 2001, at 10 a.m. at the Hartford/Farmington Marriott Marriott has several meanings:
tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to vote at the Annual Meeting was March 9, 2001. Conclusion The Company will continue to focus on enhancing shareholder value by expanding its product line and broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad 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. Additional information can be found on the Company's website: www.americanfinancialholdings.com. 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, 2001 March 31 2000
(Dollars in thousands, except per share)
SUMMARY OF OPERATIONS
Interest and Dividend Income $ 31,445 $ 31,092
Interest Expense 15,593 14,408
Net Interest Income 15,852 16,684
Provision for Loan Losses 300 550
Net Interest Income After
Provision for Loan Losses 15,552 16,134
Non-Interest Income 3,677 2,847
Non-Interest Expense 8,238 7,259
Income Before Taxes 10,991 11,722
Tax Expense 3,541 4,147
Net Income $ 7,450 $ 7,575
PER SHARE
Net Income - Basic $ 0.32 $ 0.28
Net Income - Diluted 0.31 0.28
Market Value Closing sales
price as reported on the
NASDAQ Stock Market 21.375 12.063
End of Period Shares Outstanding 23,962,360 28,871,100
Average Weighted Shares
Outstanding (basic) 23,588,127 26,606,541
Average Weighted Shares
Outstanding (diluted) 24,157,212 26,606,541
PROFITABILITY RATIOS
Return on Average Assets (1) 1.57% 1.61%
Return on Average Equity (1) 6.04 5.71
Yield on Earnings Assets (t/e basis) 7.42 6.99
Efficiency Ratio 45.24 40.07
Book Value per Share $ 19.09 $ 18.90
CAPITAL RATIOS FOR AMERICAN
SAVINGS BANK AT MARCH 31
Tier 1 Capital to Average Assets 19.06% 20.89%
Tier 1 Capital to Risk
Weighted Assets 31.46 35.42
Total Capital to Risk
Weighted Assets 34.78 39.20
ASSET QUALITY
Non-Accrual Loans $ 2,694 $ 3,273
Accruing Loans Past Due
90 Days or More -- --
Foreclosed and
Repossessed Assets 340 58
Allowance for Loan Losses 10,858 9,241
Net Charge-offs 66 129
Non-Performing Loans
to Net Loans 0.26% 0.31%
Non-Performing Assets
to Total Assets 0.17 0.18
Allowance for Loan
Losses to Loans 0.94 0.87
Net Charge-Offs to
Average Loans 0.01 0.01
Allowance for Loan Losses
to Non-Performing Loans 368.30 282.31
AVERAGE BALANCES
Investment Securities Portfolio $ 637,544 $ 786,683
Loans 1,148,671 1,039,776
Earning Assets (2) 1,705,994 1,784,765
Assets 1,892,331 1,878,132
Interest Bearing Deposits 1,095,019 1,102,599
Stockholders' Equity 493,701 531,055
SELECTED FINANCIAL DATA AT PERIOD END
Investment Securities Portfolio $ 637,232 $ 805,811
Loans 1,148,081 1,052,054
Earning Assets (2) 1,785,337 1,857,866
Cash Surrender Value of Life Insurance 60,814 --
Assets 1,890,239 1,900,132
Deposits 1,122,318 1,125,321
Stockholders' Equity 457,554 545,804
(1) Income is annualized
(2) Excludes $60,814 Cash Surrender Value of Life Insurance
American Financial Holdings, Inc.
Consolidated Statements of Income
(Unaudited) For the Three Months Ended March 31
2001 2000
(In thousands, except per share data)
Interest and dividend income:
Real estate mortgage loans $14,898 $13,158
Consumer and commercial loans 6,710 5,826
Mortgage-backed securities 4,259 5,744
Federal funds sold 270 170
Investment securities:
Interest-taxable 4,050 5,321
Interest-tax exempt 375 209
Dividends 883 664
Total interest and
dividend income 31,445 31,092
Interest expense:
Deposits 12,164 11,485
Federal Home Loan Bank advances
and other short-term borrowings 3,429 2,923
Total interest expense 15,593 14,408
Net interest income before
provision for loan losses 15,852 16,684
Provision for loan losses 300 550
Net interest income after
provision for loan losses 15,552 16,134
Non-interest income:
Service charges and fees 1,069 897
Investment commissions
and advisory fees 389 445
Net gain on sale of
investment securities 1,320 1,416
Increase in cash surrender
value of life insurance 793 --
Other 106 89
Total non-interest income 3,677 2,847
Non-interest expense:
Salaries and employee benefits 4,789 3,897
Occupancy expense 692 648
Furniture and fixture expense 424 441
Charitable contributions 35 35
Outside services 742 935
Advertising 423 349
Other 1,133 954
Total non-interest expense 8,238 7,259
Income before income taxes 10,991 11,722
Income taxes 3,541 4,147
Net income $ 7,450 $ 7,575
Basic earnings per share $ 0.32 $ 0.28
Diluted earnings per share 0.31 0.28
American Financial Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
March 31, 2001 December 31, 2000
(In thousands)
Assets
Cash and due from banks:
Non-interest bearing $ 15,497 $ 17,293
Interest bearing 24 21
Total cash and due from banks 15,521 17,314
Federal funds sold 18,850 11,740
Cash and cash equivalents 34,371 29,054
Investment securities
available for sale
(amortized cost of
$282,039 at March 31, 2001
and $275,677 at
December 31, 2000) 352,522 351,211
Mortgage-backed securities
available for sale
(amortized cost of
$245,932 at March 31, 2001
and $250,907 at
December 31, 2000) 253,157 255,270
Loans, less allowance
for loan losses of
$10,858 at March 31, 2001 and
$10,624 at December 31, 2000 1,148,081 1,151,048
Accrued interest and dividends
receivable on investments 6,742 7,058
Accrued interest receivable on loans 5,940 5,954
Federal Home Loan Bank stock 12,703 12,194
Bank premises and equipment, net 13,096 13,348
Real estate owned 340 211
Cash surrender value
of life insurance 60,814 45,022
Other assets 2,473 3,088
Total assets $ 1,890,239 $ 1,873,458
Liabilities and Stockholders' Equity
Deposits $ 1,122,318 $ 1,126,336
Mortgagors' escrow
and other deposits 18,808 19,554
FHLB advances
and other borrowings 252,444 177,944
Deferred income
tax liability 23,407 24,280
Other liabilities 15,708 11,377
Total liabilities 1,432,685 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,
28,871,100 shares issued
and outstanding 289 289
Additional paid-in capital 282,660 282,676
Unallocated common stock
held by ESOP (2,133,484 shares) (23,703) (23,703)
Stock-based compensation (186) (78)
Treasury stock (114,854) (56,707)
Retained earnings 266,625 263,452
Accumulated other
comprehensive income 46,723 48,038
457,554 513,967
Total liabilities and
stockholders' equity $ 1,890,239 $ 1,873,458
American Financial Holdings, Inc.
Consolidated Average Balance Sheet and Yield/Rate Analysis
(Unaudited)
For the Three Months Ended
March 31, 2001
Average Interest Average
Balance Yield/Rate
(Dollars in thousands)
Interest earning assets:
Loans (1) $1,148,671 $ 21,608 7.52%
Federal funds sold 19,893 270 5.43
Investment securities-taxable
and interest-earning
deposits 250,705 4,715 7.52
Investment securities-tax
exempt (2) 26,897 577 8.58
Mortgage-backed securities 247,622 4,259 6.88
FHLB stock 12,206 218 7.14
Total interest-earning
assets 1,705,994 $ 31,647 7.42%
Non-interest-earning
assets 186,337
Total assets $1,892,331
Interest-bearing liabilities:
Deposits
Money management accounts $ 70,961 $ 562 3.21%
NOW accounts 87,468 209 0.97
Savings and IRA
passbook accounts 206,364 1,022 2.01
Certificates of deposit 730,226 10,371 5.76
Total interest-bearing
deposits 1,095,019 12,164 4.51
FHLB advances and
other borrowings (3) 231,914 3,429 6.00
Total interest-bearing
liabilities 1,326,933 $ 15,593 4.77%
Non-interest bearing
demand deposits 26,935
Non-interest-bearing
liabilities 44,762
Total liabilities 1,398,630
Stockholders' Equity 493,701
Total liabilities
and equity $1,892,331
Net interest-earning assets $ 379,061
Net interest income $ 16,054
Interest rate spread 2.65%
Net interest margin
(net interest income
as a percentage of
interest-earning assets) 3.76%
Ratio of interest-earning
assets to interest-bearing
liabilities 128.57%
Note 1- Average balances include nonaccrual loans
Note 2- Tax exempt interest is calculated on a tax equivalent basis.
Note 3- Includes mortgage escrow accounts
American Financial Holdings, Inc.
Consolidated Average Balance Sheet and Yield/Rate Analysis
(Unaudited)
For the Three Months Ended
March 31, 2000
Average Interest Average
Balance Yield/Rate
(Dollars in thousands)
Interest earning assets:
Loans (1) $1,039,776 $ 18,984 7.30%
Federal funds sold 11,980 170 5.68
Investment securities-taxable
and interest-earning
deposits 350,499 5,725 6.53
Investment securities-tax
exempt (2) 15,258 321 8.42
Mortgage-backed
securities 351,081 5,744 6.54
FHLB stock 16,171 260 6.43
Total interest-earning
assets 1,784,765 $ 31,204 6.99%
Non-interest-earning
assets 93,367
Total assets $1,878,132
Interest-bearing liabilities:
Deposits
Money management accounts $ 64,219 $ 424 2.65%
NOW accounts 74,333 252 1.37
Savings and IRA
passbook accounts 198,292 996 2.02
Certificates of deposit 765,755 9,813 5.15
Total interest-bearing
deposits 1,102,599 11,485 4.19
FHLB advances and
other borrowings (3) 198,256 2,923 5.93
Total interest-bearing
liabilities 1,300,855 $ 14,408 4.45%
Non-interest bearing
demand deposits 23,164
Non-interest-bearing
liabilities 23,058
Total liabilities 1,347,077
Stockholders' Equity 531,055
Total liabilities
and equity $1,878,132
Net interest-earning assets $ 483,910
Net interest income $ 16,796
Interest rate spread 2.54%
Net interest margin
(net interest income
as a percentage of
interest-earning assets) 3.76%
Ratio of interest-earning
assets to interest-bearing
liabilities 137.20%
Note 1- Average balances include nonaccrual loans
Note 2- Tax exempt interest is calculated on a tax equivalent basis.
Note 3- Includes mortgage escrow accounts
American Financial Holdings, Inc.
Consolidated Statements of Income
(Unaudited)
2001 2000
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
(Dollars in thousands,
except per share data)
Interest and dividend income:
Real estate and
mortgage loans $14,898 $14,706 $14,118 $13,389 $13,158
Consumer and
commercial loans 6,710 6,952 6,699 6,227 5,826
Mortgage-backed
securities 4,259 4,755 5,351 5,775 5,744
Federal funds sold 270 656 123 38 170
Investment
securities:
Interest
taxable 4,050 4,111 4,750 5,222 5,321
Interest-tax
exempt 375 374 372 291 209
Dividends 883 904 930 788 664
Total interest
and dividend
income 31,445 32,458 32,343 31,730 31,092
Interest expense:
Deposits 12,164 12,644 12,222 11,673 11,485
Federal Home Loan Bank
advances and
other short-term
borrowings 3,429 2,936 3,243 2,805 2,923
Total interest expense 15,593 15,580 15,465 14,478 14,408
Net interest income
before provision
for loan losses 15,852 16,878 16,878 17,252 16,684
Provision for
loan losses 300 375 400 570 550
Net interest income
after provision
for loan losses 15,552 16,503 16,478 16,682 16,134
Non-interest income:
Service charges
and fees 1,069 1,090 1,072 918 897
Investment commissions
and advisory fees 389 329 302 469 445
Net gains on sale
of securities
available for sale 1,320 1,289 1,793 1,570 1,416
Increase in cash
surrender value
of life insurance 793 -- -- -- --
Other 106 236 90 89 89
Total non-interest
income 3,677 2,944 3,257 3,046 2,847
Non-interest expense:
Salaries and
employee benefits 4,789 5,038 5,459 4,047 3,897
Occupancy expense 692 591 559 582 648
Furniture and
fixtures expense 424 419 430 416 441
Charitable
contributions 35 1 1 9 35
Outside services 742 838 480 563 935
Advertising 423 281 330 411 349
Other 1,133 1,246 1,013 1,073 954
Total non-interest
expense 8,238 8,414 8,272 7,101 7,259
Income before
income taxes 10,991 11,033 11,463 12,627 11,722
Income taxes 3,541 3,499 3,833 4,240 4,147
Net income $ 7,450 $ 7,534 $ 7,630 $ 8,387 $ 7,575
Basic earnings
per share $ 0.32 $ 0.30 $ 0.30 $ 0.31 $ 0.28
Diluted earnings
per share 0.31 0.30 0.29 0.31 0.28
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