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BOSTON FIVE REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS

 BOSTON FIVE REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
 BOSTON, Dec. 4 /PRNewswire/ -- The Boston Five Bancorp, Inc. (NASDAQ: BFCS), holding company for The Boston Five Cents Saving Bank FSB, reported a net loss of $3 million, or 42 cents per share, for its fourth quarter, ended Oct. 31, 1991, compared with a net loss of $13.6 million, or $1.93 per share, in the fourth quarter of 1990. As of Oct. 31, 1991, The Boston Five exceed all three current Office of Thrift Supervision (OTS) regulatory capital requirements and had a book value of $12.76 per share.
 For the fiscal year ended Oct. 31, 1991, The Boston Five had a net loss of $20.5 million, or $2.91 per share, compared with a net loss of $15.3 million, or $2.17 per share, for 1990.
 During the quarter and year ended Oct. 31, 1991, the bank's nonperforming assets (NPAs) decreased by $11.2 million and $7.5 million, respectively, to a level of $128.9 million. Since April 30, 1991, when the bank reported total NPAs of $152.4 million, the net decrease has been $23.5 million, or 15.4 percent.
 In the quarter ended Oct. 31, 1991, the bank's risk-weighted capital ratio increased to 8.1 percent, from 7.6 percent, primarily as a result of the elimination of the recourse risk associated with $151.7 million of mortgages serviced for others. The bank will continue to service the loans, but has obtained insurance that covers the recourse risk.
 Residential mortgage production totaled $279.4 million for the fourth quarter of 1991, compared with $296.1 million in the fourth quarter of 1990. For the year, residential production was $1.02 billion, compared with $1.05 billion in 1990. Total loan production for the year was $1.08 billion, compared with $1.16 billion for 1990. The Boston Five services almost $2.4 billion in mortgages for others, an increase of 30.4 percent over the $1.8 billion serviced as of Oct. 31, 1990.
 As of Oct. 31, 1991, the bank designated $137.6 million of investment securities as held for sale, resulting in a net loss of $397,000. Subsequently, in November 1991, $131.6 million of these securities were sold at a gain of $723,000 as part of an ongoing effort to reduce total assets and restructure the balance sheet.
 The $47.0 million current balance in OREO is net of writedowns and other reductions of $44.2 million, or 39.2 percent, from a starting balance of $112.7 million, and net of $21.5 million in sales of OREO units that were part of construction projects.
 The bank had previously announced that it would be signing an agreement with the Office of Thrift Supervision. The bank entered into a Supervisory Agreement on Oct. 25, 1991. Under the agreement, the bank has agreed to address certain aspects of its operations and to develop a three-year business plan that would permit the bank to increase its leverage capital ratio.
 The Boston Five Bancorp, Inc. is the holding company of The Boston Five Cents Savings Bank FSB. With total assets of more than $1.9 billion, The Boston Five is the largest savings bank headquartered in Massachusetts. Deposits of The Boston Five are insured by the Bank Insurance Fund (BIF) of the FDIC.
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 (Dollars in thousands, except per share amounts)
 Three Months Ended Year Ended
 10/31/91 10/31/90 10/31/91 10/31/90
 Interest income $40,807 $48,447 $177,569 $201,807
 Interest expense 29,149 38,939 135,029 158,332
 Net interest income 11,658 9,508 42,540 43,475
 Prov. for losses on loans 2,170 7,423 8,352 14,317
 Net interest income after
 provision for losses on
 loans 9,488 2,085 34,188 29,158
 Non interest income:
 Loan and other related
 fees 940 680 2,652 1,932
 Mortgage service fees 2,982 1,362 8,340 6,511
 Customer service fees 769 508 3,115 2,009
 Real estate operations,
 net (4,350) (6,714) (16,967) (13,236)
 Gain (loss) on securities,
 net (394) (4,437) (904) (4,692)
 Gain on sale of loans
 and servicing, net 1,679 1,448 5,392 9,318
 Other income 271 305 979 1,237
 Total non-interest income 1,897 (6,848) 2,607 3,079
 Non interest expenses:
 Salaries & fringe
 benefits 6,194 6,327 24,998 24,796
 Occupancy 1,282 1,730 6,593 7,496
 Data processing 1,026 1,078 4,167 4,182
 Other 5,903 4,548 21,478 17,410
 Total non-interest
 expenses 14,405 13,683 57,236 53,884
 Income (loss) before
 income taxes (3,020) (18,446) (20,441) (21,647)
 Provision for (benefit
 from) income taxes (53) (4,873) 63 (6,381)
 Net income (loss) $(2,967) $(13,573) $(20,504) $(15,266)
 Earnings (loss) per
 common share:
 Primary (42 cents) $(1.93) $(2.91) $(2.17)
 Dividends per
 common share --- --- --- 12 cents
 Earnings (loss) per share were calculated using
 the following number of common shares
 Three Months Ended Year Ended
 10/31/91 10/31/90 10/31/91 10/31/90
 Primary 7,039,122 7,039,122 7,039,122 7,039,122
 Conolidated Statements of Financial Condition
 (Dollars in thousands)
 10/31/91 10/31/90
 Assets:
 Cash and due from banks $36,542 $29,843
 Federal funds sold and securities
 purchased under agreements to resell --- 1,093
 Investment securities at cost, net
 (market value $56,659 & $404,349) 55,750 413,474
 Securities held for sale,
 at lower of cost or market 137,781 25,412
 Mortgage-backed securities, at cost
 (market value $1,026 and $79,912) 998 85,072
 Federal Home Loan Bank stock, at cost 12,026 16,470
 Loans 1,403,710 1,522,893
 Loans held for sale 113,553 148,902
 Loans to joint ventures 20,927 22,002
 Allowance for loan losses (24,451) (28,588)
 Real estate acquired by foreclosure
 or substantively repossessed 46,979 52,705
 Investment in joint ventures, net 16,388 17,879
 Bank premises, furniture and
 equipment, net 57,672 57,349
 Accrued interest and dividends
 receivable 14,276 18,365
 Goodwill, net 6,873 8,496
 Purchased and excess mortgage
 servicing rights 34,570 25,802
 Refundable federal and state
 income taxes 208 2,893
 Other assets 9,527 8,192
 Total assets $1,943,329 $2,428,254
 Liabilities & Stockholders' Equity
 Liabilities:
 Deposits $1,748,528 $2,013,155
 Borrowed funds 74,810 272,007
 ESOP debt 6,962 8,003
 Advances from borrowers for
 taxes and insurance 10,751 12,210
 Accrued interest payable 5,701 9,966
 Accrued and deferred federal and
 state income taxes 2,140 448
 Accrued expenses & other liabilities 4,588 3,153
 Total liabilities $1,853,480 $2,318,942
 Stockholders' equity
 Serial preferred stock, authorized
 5 million shares, series authorized:
 series A preferred stock, 200,000
 shares, none issued and outstanding --- ---
 Common stock, 1 cent par value,
 authorized 20 million shares;
 issued 7,141,922 shares 71 71
 Paid-in capital 41,514 41,514
 Retained earnings 56,591 77,095
 Treasury stock, 102,800 shares,
 at cost (1,365) (1,365)
 ESOP debt (6,962) (8,003)
 Total stockholders' equity 89,849 109,312
 Total liabilities and
 stockholders' equity $1,943,329 $2,428,254
 Net Interest Margin, Ratios and Average Balances-(a)
 (Dollars in thousands)
 Three Months Ended Year Ended
 Oct. 31, Oct. 31,
 1991 1990 1991 1990
 Net interest margin 2.63 pct 1.90 pct 2.20 pct 2.11 pct
 Net interest spread:
 For the period 2.85 pct 2.05 pct 2.41 pct 2.11 pct
 At the end of the period 3.02 pct 2.24 pct 3.02 pct 2.24 pct
 Net income (loss) as a
 percentage of:
 Average assets (0.60 pct) (2.47 pct) (0.97 pct)(0.68 pct)
 Average equity (12.94 pct) (46.46 pct) (20.55 pct)(12.47pct)
 Average equity to
 average assets 4.60 pct 5.41 pct 4.70 pct 5.48 pct
 Average assets $1,992,487 $2,199,038 $2,120,957 $2,232,812
 Average earning assets $1,806,746 $2,003,850 $1,933,513 $2,065,583
 Average loans, net $1,566,220 $1,712,601 $1,616,216 $1,797,820
 Average equity $91,713 $116,863 $99,759 $122,384
 ---
 NOTE (a)-Annualized where appropriate.
 Loan Production
 (Dollars in thousands)
 Three Months Ended Year Ended
 Oct. 31, Oct. 31,
 1991 1990 1991 1990
 Residential mortgages:
 Fixed-rate $248,449 $259,966 $890,901 $938,087
 Adjustable-rate (ARM) 30,998 36,157 129,691 107,705
 Total residential mortgages 279,447 296,123 1,020,592 1,045,792
 Commercial real estate 1,689 --- 6,772 27,495
 Construction 270 1,100 1,102 11,926
 Commercial --- 44 114 95
 Education 5,582 4,941 17,107 15,567
 Other consumer 5,258 14,461 31,530 56,460
 Total loan production $292,246 $316,669 $1,077,217 $1,157,335
 Selected Data
 (Dollars in thousands, except per share data)
 10/31/91 10/31/90
 Number of:
 Retail banking offices 25 32
 Loan centers 15 17
 Full-time employees 720 821
 Part-time employees 87 96
 Dollar volume of mortgage
 serviced for others $2,388,414 $1,831,890
 Loans on nonaccrual $75,873 $68,048
 Nonaccrual loans as a percentage
 of total assets 3.9 pct 2.8 pct
 Restructured loans $6,000 $15,566
 Loan loss reserve as a percentage
 of total loans 1.6 pct 1.7 pct
 Book value per common share $12.76 $15.53
 Regulatory capital ratios:
 Tangible (1.5 pct required) 4.3 pct 4.2 pct
 Leverage (3.0 pct required) 4.5 pct 4.4 pct
 Risk-weighted (6.4 pct required
 until 12/31/90 8.1 pct 8.1 pct
 7.2 pct required
 effective 12/31/90)
 -0- 12/4/91
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of The Boston Five, 617-742-6000, ext. 2107/
 (BFCS) CO: Boston Five Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN


KM-SH -- NE013 -- 9439 12/04/91 18:53 EST
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