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BANKWORCESTER REPORTS THIRD QUARTER AND NINE MONTH NET INCOME; CAPITAL RATIO INCREASES; NON-PERFORMING ASSETS DECLINE; DIVIDEND DECLARED

BANKWORCESTER REPORTS THIRD QUARTER AND NINE MONTH NET INCOME; CAPITAL RATIO INCREASES; NON-PERFORMING ASSETS DECLINE; DIVIDEND DECLARED
 WORCESTER, Mass., Oct. 27 /PRNewswire/ -- BankWorcester Corporation (NASDAQ-NMS: BNKW) today reported that it charged off a net $6 million of loans, provided $4 million for possible loan losses and wrote down other real estate owned by $652,000, resulting in 1992 third quarter net income of $706,000 or 11 cents per common share. These actions reflect management's ongoing review of the loan portfolio and discussions with representatives of the FDIC concerning the preliminary results of a third quarter field examination. Net income in last year's third quarter was $2.4 million or 36 cents per share.
 At Sept. 30, 1992, BankWorcester's capital to assets ratio was 9.14 percent versus 8.96 percent at the same date last year; both ratios substantially exceed regulatory requirements. Over the same period book value per share increased to $19.94 from $17.49. Net interest and dividend income in the 1992 third quarter increased to $14.4 million from $11.1 million in the same period last year.
 Non-performing assets declined to $35.6 million in the 1992 quarter. This decline exceeded amounts charged off and written down. Non- performing assets had totaled $44.9 million at the end of the second quarter and $65.6 million at the end of the third quarter last year. After the 1992 third quarter's provision and net charge-offs, the loan loss allowance was $15.1 million or 136.3 percent of non-performing loans, compared to 115.2 percent at the end of the second quarter and 70 percent at the end of the 1991 third quarter.
 For the nine months ended Sept. 30, 1992, income before extraordinary item and change in accounting principle was $4.7 million or 71 cents per share compared to $3.5 million or 53 cents per share for the corresponding period last year. Deposits at Sept. 30, 1992, were $1.21 billion compared to $1.1 billion on the same date last year. Net loans were $987.7 million versus $982.8 million a year ago. Assets on Sept. 30, 1992, totaled $1.4 billion, compared to $1.3 billion last year.
 The board of directors of BankWorcester declared a quarterly dividend of 5 cents per share payable on Jan. 4, 1993, to stockholders of record as of Nov. 27, 1992.
 BANKWORCESTER CORPORATION
 Consolidated Statement of Income
 (In thousands, except per share)
 (Unaudited)
 Three Months Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Interest and dividend income $25,397 $27,090 $77,436 $82,316
 Interest expense (11,032) (15,956) (37,849) (50,826)
 Net interest and dividend income 14,365 11,134 39,587 31,490
 Provision for loan losses (4,000) (2,000) (6,000) (6,000)
 Other income 2,058 1,891 7,249 5,757
 Other expense (10,958) (9,052) (32,465) (27,690)
 Income before income taxes,
 extraordinary item and
 change in accounting principle 1,465 1,973 8,371 3,557
 Income tax (expense) benefit (759) 439 (3,678) (74)
 Income before extraordinary item
 and change in accounting
 principle $706 $2,412 $4,693 $3,483
 Extraordinary item, net of
 income taxes --- --- 972 ---
 Change in accounting principle --- --- 9,139 ---
 Net income $706 $2,412 $14,804 $3,483
 Earnings per common share:
 Operating income 11 cents 36 cents 71 cents 53 cents
 Extraordinary item --- --- 15 cents ---
 Change in accounting principle --- --- $1.38 ---
 Net income 11 cents 36 cents $2.24 53 cents
 Shares outstanding 6,610 6,610 6,610 6,610
 Balance Sheet Data Sept. 30,
 1992 1991
 Deposits $1,246,271 $1,146,709
 Commercial loans, net 347,301 364,501
 Mortgage loans, net 459,718 456,047
 Consumer loans, net 180,693 162,290
 Total assets 1,441,721 1,289,291
 Total liabilities 1,309,898 1,173,715
 Stockholders' equity 131,823 115,576
 Stockholders' equity per share 19.94 17.49
 SELECTED STATISTICS - BANKWORCESTER
 (Dollars in thousands)
 9/30/92 6/30/92 3/31/92 12/31/91 9/30/91
 Non-accrual loans $8,444 $10,181 $13,448 $16,589 $25,483
 Loans 90 days
 past due and
 still accruing 2,648 4,637 5,449 6,087 6,079
 Total non-performing
 loans 11,092 14,818 18,897 22,676 31,562
 Real estate acquired
 through foreclosure
 and loans substantively
 repossessed 19,407 20,107 15,659 16,925 12,479
 Restructured loans 5,133 9,946 22,263 22,181 21,605
 Total non-performing
 assets $35,632 44,871 $56,819 $61,782 $65,646
 Total loans 1,002,829 1,004,160 1,010,222 1,022,176 1,004,936
 Allowance for possible
 loan losses $15,117 $17,074 $20,120 $23,044 $22,098
 Allowance as percent
 of non-performing
 loans 136.3 pct 115.2 pct 106.5 pct 101.6 pct 70.0 pct
 Allowance as percent
 of non-performing
 assets 42.4 pct 38.1 pct 35.4 pct 37.3 pct 33.7 pct
 Allowance as percent
 of total loans 1.5 pct 1.7 pct 2.0 pct 2.3 pct 2.2 pct
 Non-performing assets
 as percent of stock-
 holders' equity less
 costs in excess of net
 assets acquired plus
 allowance for possible
 loan losses 25.9 pct 32.3 pct 40.6 pct 47.2 pct 50.3 pct
 -0- 10/27/92
 /CONTACT: Dennis Byrne of BankWorcester, 508-831-4460/
 (BNKW) CO: BankWorcester Corporation ST: Massachusetts IN: FIN SU: ERN


DH -- NE026 -- 5697 10/27/92 18:13 EST
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