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BOSTON BANCORP REPORTS NET INCOME OF $15.5 MILLION FOR FIRST HALF OF FISCAL 1992

 BOSTON BANCORP REPORTS NET INCOME OF $15.5 MILLION
 FOR FIRST HALF OF FISCAL 1992
 BOSTON, May 14 /PRNewswire/ -- The Boston Bancorp (NASDAQ: SBOS), the holding company for South Boston Savings Bank, today reported net income of $6,021,000, or $0.95 per share, for the second quarter ended April 30, 1992. The company earned $6,251,000, or $0.95 per share, for the same quarter of fiscal 1991.
 For the first six months of fiscal 1992, the Boston Bancorp reported earnings of $15,471,000, or $2.43 per share. This compared with $9,654,000, or $1.46 per share, for the six months ended April 30, 1991.
 Results for the first half of fiscal 1992 included a non-recurring benefit from the effect of an accounting change amounting to $3,370,000, or $0.53 per share. Excluding this benefit, 1992 six month earnings were $12,101,000, or $1.90 per share. The accounting change reflected the adoption of FASB 109, which, among other things, permits companies to record tax benefits for future deductions such as bad debt reserves.
 "Earnings for the fiscal 1992 periods reflected sharply higher net interest income, which increased by 46 percent for both the second quarter and first half. This was accompanied by a decrease in net realized gains on securities compared with the 1991 periods, as well as higher operating expenses due to additional branches and increased FDIC insurance," said Richard R. Laine, chairman and chief executive officer.
 The fiscal 1992 first half results, before the cumulative effect of the change in an accounting principle, represent an annualized return on average equity of 21.89 percent, and an annualized return on average assets of 1.23 percent. The Boston Bancorp had total assets at April 30, 1992, of $1.97 billion and deposits of $1.42 billion. Stockholders' equity was $116,233,000 at the end of the second quarter, representing book value of $18.79 per share. The Tier 1 and risk-based capital levels of South Boston Savings Bank were 5.75 percent and 14.35 percent, respectively, at April 30, 1992.
 Net interest income before provision for possible loan losses was $15,900,000 for the fiscal 1992 second quarter and $29,611,000 for the first six months. The comparable 1991 figures were $10,889,000 and $20,337,000, respectively. The rise in net interest income reflected an increase in the net interest spread to 3.01 percent for the 1992 second quarter, up from 2.49 percent for the same three months of fiscal 1991.
 The company's provision for possible loan losses was $2 million for the second quarter of fiscal 1992, and $4 million for the six months ended April 30, 1992. Other real estate, consisting of mortgages in foreclosure and substantially foreclosed, amounted to $16,923,000 at the end of the recent quarter, an increase from $14,799,000 a year ago, and from $12,858,000 at the end of the first quarter of fiscal 1992. Loans delinquent, substantively foreclosed and in foreclosure were 0.99 percent of total assets at the end of the latest quarter versus 1.09 percent three months earlier and 1.06 percent one year ago.
 Total other income was $1,757,000 for the 1992 second quarter, compared with $5,662,000 for the same period of fiscal 1991. For the six months ended April 30, 1992 and 1991, other income was $5,463,000 and $7,511,000, respectively. Other income in the 1991 periods included substantially higher net realized gains on securities.
 Total operating expenses were $6,629,000 for the recent quarter and $13,003,000 for six months, compared with $5,546,000 and $11,047,000 for the respective year-ago periods. A large portion of the expense growth was due to the industry-wide increase in FDIC deposit insurance premiums and costs associated with acquiring and operating additional branches of the former Granite Co-operative Bank.
 The Boston Bancorp is the holding company for South Boston Savings Bank, a state-chartered stock savings bank headquartered in South Boston, Mass. The bank has full-service offices in South Boston, Dorchester, Quincy, North Quincy, Weymouth, Needham and West Roxbury, Mass.
 THE BOSTON BANCORP
 Consolidated Statement of Operations
 (Dollars in thousands, except per share)
 Periods Ended Three Months Six Months
 April 30 1992 1991 1992 1991
 Net interest and dividend
 income $15,900 $10,889 $29,611 $20,337
 Provision for loan losses 2,000 2,000 4,000 3,000
 Net interest and dividend
 income after provision for
 loan losses 13,900 8,889 25,611 17,337
 Other income:
 Net gain on sales of
 securities 693 5,043 3,681 6,082
 Fees and service charges
 on loans 218 247 439 597
 Other operating income 846 372 1,343 832
 Total other income 1,757 5,662 5,463 7,511
 Total operating expenses 6,629 5,546 13,003 11,047
 Income before income taxes
 and cumulative effect of
 a change in an accounting
 principle 9,028 9,005 18,071 13,801
 Income tax provision 3,007 2,754 5,970 4,147
 Income before cumulative
 effect of a change in an
 accounting principle 6,021 6,251 12,101 9,654
 Cumulative effect of a change
 in an accounting principle -- -- 3,370 --
 Net income 6,021 6,251 15,471 9,654
 Per Share (Fully Diluted):
 Income before cumulative
 effect of a change in an
 accounting principle $0.95 $0.95 $1.90 $1.46
 Cumulative effect of a
 change in an accounting
 principle -- -- .53 --
 Net income per share $0.95 $0.95 $2.43 $1.46
 Fully diluted shares 6,373,892 6,593,475 6,372,034 6,624,761
 THE BOSTON BANCORP
 Financial Highlights
 (Dollars in thousands, except per share)
 4/30/92 10/31/91
 Total assets $1,969,686 $1,899,413
 Loan portfolio, net 539,053 512,946
 Allowance for loan losses 6,500 7,503
 GNMA, FHLMC and FNMA mortgage-backed
 securities 892,652 888,992
 U.S. Treasury and Federal
 Agency Securities 207,773 135,300
 Other investment securities 257,818 251,460
 Other real estate 16,923 12,858
 Deposits 1,419,758 1,298,045
 Notes payable 32,025 43,450
 Borrowings 56,190 197,384
 FHLB advances 322,000 222,000
 Total stockholders' equity 116,233 104,445
 Book value per share $18.79 $16.77
 -0- 5/14/92
 /CONTACT: Richard Laine of Boston Bancorp, 617-268-2500, or Edward Nebb of Morgen-Walke Associates, 212-986-5900, for Boston Bancorp/
 (SBOS) CO: Boston Bancorp ST: Massachusetts IN: FIN SU: ERN


SM-OS -- NY008 -- 0270 05/14/92 13:12 EDT
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