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BANKWORCESTER CORPORATION REPORTS FIRST QUARTER NET INCOME OF 35 CENTS PER COMMON SHARE; DIVIDEND DECLARED

 WORCESTER, Mass., April 21 /PRNewswire/ -- BankWorcester Corporation (NASDAQ: BNKW) today reported net income of $2.3 million or 35 cents per share of common stock for the quarter ended March 31, 1993. On a fully diluted basis, net income was 34 cents per share. This compares to operating income of $1.9 million or 29 cents per share for the same period last year. First quarter 1992 net income was $1.82 per share and included $1.53 per share of non-recurring income relating to the distribution of stock of the Savings Bank Life Insurance Company of Massachusetts (15 cents per share) and the adoption of FASB Statement 109 ($1.38 per share). Net income for 1993 contains no material non- recurring items.
 In the 1993 quarter, management provided $1.8 million for possible loan losses compared to $1.0 million in the 1992 first quarter and charged off a net $1.3 million of loans versus $3.9 million in the 1992 first quarter. After the provision and net charge-offs, the loan loss allowance was $16.7 million or 95.2 percent of non-performing loans.
 Net interest income for the quarter was $14.1 million compared to $12.7 million in last year's first quarter. Deposits at March 31, 1993, were $1.3 billion, virtually the same as last year. Net loans were $1.0 billion versus $990.1 million last year. Assets on March 31, 1993, totaled $1.4 billion, the same as last year.
 Non-performing assets at March 31, 1993, totaled $39.7 million, a decrease from $56.8 million at the end of the same quarter last year but higher than $34.8 million at the end of 1992. The increase in non- performing assets from year end was largely due to the addition of a $3.5 million loan relating to a hotel and two land development loans totaling $2.0 million.
 BankWorcester president Harold Cabot said, "As I mentioned in our 1992 annual report to stockholders, some of the $11.4 million of potential problem loans subsequently moved into the non-performing category. On a more positive note, potential problem loans declined to $5.5 million at March 31. Also, while the bank's margin and non- interest income grew 11.2 percent and 6.4 percent, respectively, non- interest expense grew only 1.9 percent over last year's first quarter."
 The board of directors of BankWorcester yesterday declared a quarterly dividend of 5 cents per share of common stock. The dividend is payable on July 2, 1993, to stockholders of record on May 28, 1993.
 BANKWORCESTER CORPORATION
 Consolidated Statement of Income
 (In thousands, except per share)
 (Unaudited)
 Three Months Ended
 March
 1993 1992
 Interest and dividend income $23,321 $26,483
 Interest expense (9,197) (13,777)
 Net interest and dividend income 14,124 12,706
 Provision for loan losses (1,750) (1,000)
 Other income 2,538 2,385
 Other expense (10,728) (10,529)
 Income before income taxes,
 extraordinary item and
 change in accounting principle 4,184 3,562
 Income tax expense (1,850) (1,663)
 Income before extraordinary item
 and change in accounting
 principle 2,334 1,899
 Extraordinary item, net of
 income taxes --- 972
 Change in accounting principle --- 9,139
 Net income $2,334 $12,010
 Earnings per common share:
 Operating income $0.35 $0.29
 Extraordinary item --- 0.15
 Change in accounting principle --- 1.38
 Primary $0.35 $1.82
 Fully diluted $0.34 $1.82
 Average shares outstanding:
 Primary 6,628 6,610
 Fully diluted 6,878 6,610
 Balance Sheet Data 3/31/93 3/31/92
 (In thousands except per share)
 Deposits $1,269,968 $1,272,504
 Commercial loans, net 332,398 330,545
 Mortgage loans, net 479,000 484,326
 Consumer loans, net 195,128 175,231
 Total assets 1,441,713 1,449,194
 Total liabilities 1,305,252 1,319,800
 Stockholders' equity 136,461 129,394
 Stockholders' equity per share 20.55 19.58
 Total shares outstanding 6,639 6,610
 SELECTED STATISTICS - BANKWORCESTER
 (Dollars in thousands)
 3/31/93 12/31/92 9/30/92 6/30/92 3/31/92
 Non-accrual loans $14,774 $7,372 $8,444 $10,181 $13,448
 Loans 90 days
 past due and
 still accruing 2,797 2,047 2,648 4,637 5,449
 Total non-performing
 loans 17,571 9,419 11,092 14,818 18,897
 Real estate acquired
 through foreclosure
 and loans substantively
 repossessed 13,605 14,599 19,407 20,107 15,659
 Restructured loans 8,536 10,746 5,133 9,946 22,263
 Total non-performing
 assets $39,712 $34,764 $35,632 $44,871 $56,819
 Total loans 1,023,259 1,017,528 1,002,829 1,004,160 1,010,222
 Allowance for possible
 loan losses $16,733 $16,266 $15,117 $17,074 $20,120
 Allowance as percent
 of non-performing
 loans 95.2 pct 172.7 pct 136.3 pct 115.2 pct 106.5 pct
 Allowance as percent
 of non-performing
 assets 42.1pct. 46.8 pct 42.4 pct 38.1 pct 35.4 pct
 Allowance as percent
 of total loans 1.6 pct 1.6 pct 1.5 pct 1.7 pct 2.0 pct
 Non-performing assets as
 as percent of stockholders'
 equity less costs in excess of
 net assets acquired plus
 allowance for possible
 loan losses 27.5 pct 24.6 pct 25.9 pct 32.3 pct 40.7 pct
 -0- 4/21/93
 /CONTACT: Dennis Byrne of BankWorcester, 508-831-4460/
 (BNKW)


CO: BankWorcester Corporation ST: Massachusetts IN: FIN SU: ERN

SJ -- NE009 -- 8616 04/21/93 10:19 EDT
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Date:Apr 21, 1993
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