Atlantic Bank of New York Announces 5% Increase in Earnings for the Third Quarter of 2003.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 29, 2003 Atlantic Bank of New York
Net interest income was $19.2 million for the third quarter and $61.9 million for the year to date, representing a decrease of $4.5 million and $1.6 million respectively over the comparable prior year periods. The net interest margin for the quarter and nine month period declined to 2.75% and 3.04% respectively, reflecting continued margin compression as a result of the sustained low rate environment compared with the same periods last year. The provision for loan losses for the third quarter 2003 and year to date was $.2 and $.3 million respectively, versus $2.2 million and $4.6 million for the comparable periods last year, reflecting continued improvement in the credit quality of the Bank's corporate loan portfolio. Non-interest income for the third quarter increased to $8.7 million, a $3.6 million or 70% gain compared with the $5.1 million reported the same period last year. Non-interest income for the year to date increased to $21.5 million, representing a $5.5 million or 35% increase compared with $16.0 million posted the first nine months of 2002. The increase in non-interest income for both periods is primarily attributable to a higher volume of loan fees associated with greater commercial real estate lending activity and, to a lesser extent, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of gains on sale of securities realized during the reporting periods. Non-Interest expense for the third quarter was $15.4 million, an increase of 1.2% or $.1 million over the comparable quarter last year. For the nine months of 2003, non-interest expense was $46.6 million, an increase of 9.3% or $3.9 million compared with the same period last year. The increased year to date non-interest expense is primarily attributable to higher salary, benefit, facilities and equipment costs associated with the prior year acquisition of Yonkers Yonkers (yŏn`kərz), city (1990 pop. 188,082), Westchester co., SE N.Y., on the east bank of the Hudson, in a hilly region just N of the Bronx (New York City); inc. 1855. Its elevator works date from 1852. Financial Corporation (YFC YFC Youth For Christ YFC Young Farmers Club (UK) YFC Youth Flying Club (Singapore) YFC Fredericton, New Brunswick, Canada - Fredericton Municipal (Airport Code) ). Total loans, net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , were $1,209.2 million at September September: see month. 30, 2003, compared with $1,216.6 million at June June: see month. 30, 2003 and $1,272.3 million at September 30, 2002. The $7.4 million or .6% decrease in loans during the third quarter was primarily attributable to the Bank's continued strategic management of runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. in fixed rate residential mortgages, partially offset by growth in its corporate loan portfolio. Total deposits were $1,559.9 million at September 30, 2003, reflecting a decrease of 5.6% or $93.3 million from the prior quarter and a decrease of 9.4% or $162.8 million compared with September 30, 2002. The decrease from the prior quarter of this year is primarily the result of periodic cash management activities by certain major institutional clients and the Bank's continuing de-emphasis on higher rate funding sources, partially offset by a $21 million or 5.3% growth in core demand deposits. As of September 30, 2003, total assets were $2.9 billion, reflecting a decrease of 6.0% or $183.3 million compared with the prior quarter and an increase of 10.1% or $264.0 million for the comparable prior year to date period. Early in the second quarter management determined that the absolute level of interest rates available to it in the securities markets did not warrant continued investment. As a consequence, approximately $350.0 million of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. and sales in the securities portfolio were used to reduce certain liabilities during the quarter just ended. Atlantic Bank's return on average total assets for the third quarter and year to date was .99% and 1.00% respectively compared with 1.04% and 1.12% for the same periods last year. Return on average stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. declined to 14.17% for the quarter and to 13.95% for the nine months ended September 30, 2003. The bank's efficiency ratio was 54.65% for the quarter and 55.66% for the nine months ended September 30, 2003, reflecting the additional costs associated with the YFC acquisition and the Bank's new Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). branch locations. The bank's Tier I leverage ratio was 6.10% and 5.65% at September 30, 2003 and 2002, respectively. This ratio is substantially in excess of the current regulatory guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for a well-capitalized institution. The allowance for loan losses as a percentage of total loans was 1.22% at September 30, 2003 compared with 1.98% the prior year. The allowance for loan losses represents 129.7% of non-performing assets as of September 30, 2003, versus 62.6% for the prior year. Non-performing assets declined to $11.4 million as of September 30, 2003 from $40.1 million reported the prior year. "As we continue to improve the absolute level and quality of our earnings, we are also enthusiastic about implementing our business expansion plans," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs M. O'Brien O'Bri·en , Edna Born 1932. Irish writer whose works, including The Lonely Girl (1962) and Johnny I Hardly Knew You (1977), explore the lives of women in modern-day Ireland. Noun 1. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . He added, "The addition of our two new Manhattan branches, together with our announced plan to acquire Allied Irish Bank's New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. branch business, will significantly improve our Manhattan presence. Our 48th Street and Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. office successfully opened October October: see month. 1st, and our Third Avenue at 56th Street branch will open later this year. We anticipate receiving the necessary approvals in order to proceed with our acquisition of the attractive New York City branch business of Allied Irish Bank by late November November: see month. ." Established in 1926, Atlantic Bank of New York is one of the top 20 commercial banks serving the 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 area. With $2.9 billion in assets, Atlantic Bank is a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. commercial bank providing a comprehensive range 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. to small- and mid-sized businesses, commercial real estate investors A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. and consumers. The Bank operates 21 branch offices in Manhattan, Queens, Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. , Long Island,
Westchester, Dutchess and Boston. Atlantic Bank is a member of the NBG NBG National Bank of GreeceNBG Nederlands Bijbelgenootschap NBG National Bank of Georgia NBG Need Before Greed (Everquest game slang) NBG National Bicycle Greenway NBG Naval Beach Group NBG Natural Born Gamers Group (NYSE NYSE See: New York Stock Exchange : NBG), which has more than $57 billion in assets and operates in 16 countries. Additional information is available on the bank's website at www.abny.com. The financial summary follows.
Atlantic Bank of New York
(In thousands, except ratios)
INCOME STATEMENT HIGHLIGHTS
Three Months Ended Nine Months Ended
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
--------- --------- --------- ---------
Interest Income $30,614 $35,900 $96,949 $95,906
Interest Expense 11,392 12,163 35,081 32,408
--------- --------- --------- ---------
Net Interest Income 19,222 23,737 61,868 63,498
Provision for Loan Losses 241 2,200 348 4,600
--------- --------- --------- ---------
Net Interest Income after
Provision for Loan Losses 18,981 21,537 61,520 58,898
Non-Interest Income:
---------------------------
Customer Related Fees &
Service Charges 1,496 1,586 4,705 4,605
Investment Management and
Commissions 4,614 2,400 10,439 6,999
Trading Income (Loss) 967 (499) 1,898 (109)
Other Operating Income 690 658 1,960 2,349
Gain on Sale of Loans 449 283 366 965
Net Securities Gains 527 701 2,151 1,144
--------- --------- --------- ---------
Total Non-Interest Income 8,743 5,129 21,519 15,953
--------- --------- --------- ---------
Non-Interest Expense 15,438 15,261 46,634 42,682
Income Before Taxes 12,286 11,405 36,405 32,169
Provision for Income Taxes 4,909 4,398 14,562 12,286
--------- --------- --------- ---------
Net Income $7,377 $7,007 $21,843 $19,883
========= ========= ========= =========
Return on Average Total Assets 0.99% 1.04% 1.00% 1.12%
Return on Average
Stockholder's Equity 14.17% 14.28% 13.95% 14.36%
Yield on Interest Earning
Assets 4.37% 5.64% 4.76% 5.76%
Cost of Funds 1.91% 2.26% 2.02% 2.34%
Net Interest Margin 2.75% 3.73% 3.04% 3.81%
Efficiency Ratio 54.65% 52.87% 55.66% 53.72%
Atlantic Bank of New York
(In thousands, except ratios)
BALANCE SHEET HIGHLIGHTS
UNAUDITED UNAUDITED UNAUDITED
September June 30, December September
30, 2003 2003 31, 2002 30, 2002
----------- ----------- ----------- -----------
Total Assets $2,887,513 $3,070,817 $2,767,143 $2,623,511
Loans, net 1,209,177 1,216,592 1,207,809 1,272,341
Allowance for Loan
Losses 14,731 14,478 24,349 25,136
Securities Available-
For-Sale 1,378,106 1,595,929 1,321,161 1,117,168
Total Treasury
Investments 1,481,116 1,634,854 1,345,719 1,168,845
Total Deposits 1,559,903 1,653,189 1,656,271 1,722,687
Borrowings 1,082,775 1,173,762 870,830 689,215
Stockholder's Equity -
see Note to Financial
Summary 216,619 215,339 203,314 197,679
SELECTED FINANCIAL HIGHLIGHTS
CAPITAL RATIOS:
--------------------
Risk Based Capital:
Tier I 12.05% 11.38% 10.90% 9.90%
Total 13.06% 12.37% 12.16% 11.16%
Leverage Ratio 6.10% 5.80% 5.92% 5.65%
ASSET QUALITY
--------------------
Non-Performing Loans $11,362 $10,132 $46,550 $39,865
Other - - 278 278
----------- ----------- ----------- -----------
Total Non-
Performing Assets $11,362 $10,132 $46,828 $40,143
=========== =========== =========== ===========
Allowance for Loan
Losses to Non-
Performing Assets 129.65% 142.89% 52.00% 62.62%
Allowance for Loan
Losses to Total
Loans, Net 1.22% 1.19% 2.02% 1.98%
Non-Performing Loans
to Total Loans, Net 0.94% 0.83% 3.85% 3.13%
Note to Financial Summary
-------------------------
Stockholder's equity includes unrealized gains (losses) on the
Available-for-Sale portfolio in accordance with FAS-115 as follows:
September 30, 2003, ($6,555); June 30, 2003, ($457); December 31,
2002, $1,983; and September 30, 2002, $1,489.
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