Atlantic Bank of New York Announces Earnings for the Second Quarter of 2003.Business Editors NEW YORK--(BUSINESS WIRE)--July 30, 2003 Atlantic Bank of New York
Net interest income for the quarter ended June June: see month. 30, 2003 was $21.5 million, a $1.0 million or 4.6% decrease compared with the comparable quarter of 2002. For the six months ended June 30, 2003, net interest income was $42.7 million, a $2.9 million or 7.3% increase over the comparable prior year six month period. The net interest margin for the quarter and six month period declined to 3.05% and 3.19% respectively, reflecting continued margin compression compared with the same periods last year. The decrease in net interest income for the quarter is attributable mainly due to reduced asset yields resulting from the sustained low interest rate environment. The provision for loan losses for the second quarter, 2003 was $1.0 million, a $.2 million decrease from the comparable period last year. Non-interest income for the second quarter increased to $6.7 million, a $.9 million or 15.1% gain compared with the $5.8 million reported for the same period last year. Non-interest income for the year to date increased to $12.8 million, representing a $2.0 million or 18.0% increase compared with $10.8 million posted the first half of 2002. Non-Interest expense for the second quarter was $15.6 million, an increase of $.2 million over the comparable quarter last year. For the six months of 2003, non-interest expense was $31.2 million, an increase of $3.8 million compared with the same period last year. The year to date increase in non-interest expense is attributable to strategic upgrades in the Bank's expanded communications and technology infrastructure, increased 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. associated with the 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) ) merger, and pension plan funding necessitated by a modest reduction in pension plan assets due to capital market volatility. 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 $1,216.6 million at June 30, 2003, compared with $1,203.8 million at March 31, 2003 and $1,292.0 million at June 30, 2002. The increase in loans during the second quarter is attributable to growth in the Bank's Commercial Real Estate portfolio, partially offset by 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 Mortgage loans as refinancing Refinancing An extension and/or increase in amount of existing debt. activity continued. As of June 30, 2003, total assets stood at $3.1 billion, reflecting an increase of $76.5 million or 2.6% over the prior quarter. Total deposits grew to $1,653.2 million at June 30, 2003, an increase of $83.9 million or 5.3% over the previous quarter. The increase is due to the Bank's continued emphasis on relationship banking and the successful attraction of lower cost core deposits across all its business lines. Atlantic Bank's return on average total assets for the second quarter and year to date declined to .92% and 1.00% respectively from 1.22% and 1.17% 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. was 12.99% for the quarter and 13.85% for the six months ended June 30, 2003. The Bank's efficiency ratio for the quarter remained relatively flat at 55.20% compared with the comparable 2002 quarter. The Bank's Tier I leverage ratio was 5.80% and 6.08% at June 30, 2003 and 2002, respectively. This ratio is well 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. Consistent with the Bank's conservative stance on credit portfolio management, the allowance for loan losses was increased in the quarter to $14.5 million, representing 142.89% 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. and 1.19% of total loans, net, at June 30, 2003 compared with 1.93% at June 30, 2002. Non-performing loans declined from $41.2 million or 3.19% of total loans, net, as of June 30, 2002 to $10.1 million or .83% of total loans, net, as of the current quarter. The Bank also announced that it had signed leases for two new branch offices in the 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). market. The opening of both branches is scheduled for early fourth quarter, 2003. The two new Manhattan branch facilities will be located at 400 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. and 936 Third Avenue. Commenting on Atlantic Bank's financial performance, 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. stated, "Our consistent emphasis on a focused and relationship-building approach to the market, together with our diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d credit management practices, continue to serve us well. Despite the challenging economic and historically low interest rate environment in today's market, the execution of our strategic plan has helped us build a solid foundation from which to continue to grow. We are pleased with our progress and excited about new opportunities to grow our business in our expanded market areas, including our two new Manhattan locations slated for opening later this year." 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 over $3.0 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 20 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. and Long
Island, Westchester, Dutchess and in Boston. Atlantic Bank is a member
of the global financial network of the National Bank of Greece The National Bank of Greece (NBG; Greek: Εθνική Τράπεζα της Ελλάδος (NYSE NYSESee: New York Stock Exchange : NBG NBG National Bank of Greece NBG 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 ), which has more than $58 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 Six Months Ended
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------- -------- -------- ---------
Interest Income $ 33,624 $32,776 $66,335 $60,005
Interest Expense 12,147 10,275 23,689 20,245
--------- -------- -------- ---------
Net Interest Income 21,477 22,501 42,646 39,760
Provision for Loan Losses 1,000 1,200 107 2,400
--------- -------- -------- ---------
Net Interest Income after
Provision for Loan Losses 20,477 21,301 42,539 37,360
Non-Interest Income:
--------------------
Customer Related Fees &
Service Charges 1,654 1,556 3,208 3,019
Investment Management and
Commissions 3,098 2,432 5,825 4,600
Trading Income (Loss) 422 12 930 390
Other Operating Income 651 956 1,271 1,690
Gain on Sale of Loans 527 617 (84) 682
Net Securities Gains 331 232 1,624 443
--------- -------- -------- ---------
Total Non-Interest Income 6,683 5,805 12,774 10,824
--------- -------- -------- ---------
Non-Interest Expense 15,566 15,341 31,195 27,422
Income Before Taxes 11,594 11,765 24,118 20,762
Provision for Income Taxes 4,640 4,470 9,653 7,888
--------- -------- -------- ---------
Net Income $ 6,954 $ 7,295 $14,465 $12,874
========= ======== ======== ========
Return on Average Total Assets 0.92% 1.22% 1.00% 1.17%
Return on Average
Stockholder's Equity 12.99% 15.78% 13.85% 14.35%
Yield on Interest Earning
Assets 4.77% 5.86% 4.97% 5.84%
Cost of Funds 2.02% 2.25% 2.08% 2.40%
Net Interest Margin 3.05% 4.02% 3.19% 3.87%
Efficiency Ratio 55.20% 54.20% 56.18% 54.21%
Atlantic Bank of New York
(In thousands, except ratios)
BALANCE SHEET HIGHLIGHTS
UNAUDITED UNAUDITED UNAUDITED
June 30, March 31, December June 30,
2003 2003 31, 2002 2002
----------- ----------- ----------- -----------
Total Assets $3,070,817 $2,994,320 $2,767,143 $2,696,666
Loans, net 1,216,592 1,203,829 1,207,809 1,291,951
Allowance for Loan
Losses 14,478 14,135 24,349 24,967
Securities Available-
For-Sale 1,595,929 1,465,689 1,321,161 1,138,513
Total Treasury
Investments 1,634,854 1,583,768 1,345,719 1,155,236
Total Deposits 1,653,189 1,569,256 1,656,271 1,922,079
Borrowings 1,173,762 1,184,700 870,830 569,373
Stockholder's Equity -
see Note to Financial
Summary 215,339 206,013 203,314 189,992
SELECTED FINANCIAL HIGHLIGHTS
CAPITAL RATIOS:
---------------
Risk Based Capital:
Tier I 11.38% 10.98% 10.90% 9.63%
Total 12.37% 11.91% 12.16% 10.88%
Leverage Ratio 5.80% 6.14% 5.92% 6.08%
ASSET QUALITY
-------------
Non-Performing Loans $ 10,132 $ 34,407 $ 46,550 $ 41,229
Other - 245 278 327
---------- ---------- ---------- ----------
Total Non-Performing
Assets $ 10,132 $ 34,652 $ 46,828 $ 41,556
========== ========== ========== ==========
Allowance for Loan
Losses to Non-
Performing Assets 142.89% 40.79% 52.00% 60.08%
Allowance for Loan
Losses to Total Loans,
Net 1.19% 1.17% 2.02% 1.93%
Non-Performing Loans to
Total Loans, Net 0.83% 2.86% 3.85% 3.19%
Note to Financial Summary
-------------------------
Stockholder's equity includes unrealized gains (losses) on the
Available-for-Sale portfolio in accordance with FAS-115 as follows:
June 30, 2003, ($457); March 31, 2003, ($2,829); December 31, 2002,
$1,983; and June 30, 2002, $813.
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