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BOSTON FIVE REPORTS SECOND QUARTER RESULTS

 BOSTON FIVE REPORTS SECOND QUARTER RESULTS
 BOSTON, May 15 /PRNewswire/ -- The Boston Five Bancorp, Inc.


(NASDAQ: BFCS), holding company for The Boston Five Cents Savings Bank FSB, reported a net loss of $1.8 million, or 26 cents per share, for the quarter ended April 30, 1992. This compares with a net loss of $6.2 million, or 87 cents per share, in the second quarter of 1991. For the six months ended April 30, 1992, The Boston Five had a net loss of $4.1 million, or 58 cents per share, compared with a net loss of $11.8 million, or $1.67 per share, in the first six months of 1991. The results for the quarter and six months ended April 30, 1992, include extraordinary income of $4.4 million, or 62 cents per share, resulting from the conversion of the Massachusetts Savings Bank Life Insurance (SBLI) company from a mutual to a stock form of ownership.
 The provision for loan losses in the second quarter of 1992 was $3.6 million, compared with $2.6 million in the second quarter of 1991. The loan loss provision for the six months ended April 30, 1992, was $8.1 million, compared with $4.0 million for the corresponding period in 1991. The loan loss reserve totaled $16.4 million as of April 30, 1992, compared with $28.4 million as of April 30, 1991.
 During the quarter ended April 30, 1992, the bank's nonperforming assets (NPAs) decreased by $12.7 million, or 10.5 percent. NPAs totaled $108 million on April 30, 1992, compared with $152.4 million on April 30, 1991, and $128.9 million on Oct. 31, 1991. During the quarter, loans on nonaccrual decreased by $7.1 million to $53.8 million; other real estate owned (OREO) decreased by $7.1 million to $46.8 million; and restructured loans increased by $1.5 million to $7.5 million. The $46.8 million current balance in OREO is net of cumulative writedowns of $59.3 million, or 45 percent, from a starting balance of $131.8 million less $25.7 million in sales of OREO units that were part of construction projects.
 Real estate operations reflect primarily writedowns on OREO and the costs of managing such real estate. In the second quarter of 1992, real estate operations generated a net loss of $6.9 million compared with a net loss of $4.1 million in the second quarter of 1991. For the six months ended April 30, 1992, the bank recorded a loss of real estate operations of $10.6 million compared with a $7.1 million loss for the corresponding period of 1991.
 Residential mortgage production totaled $457.5 million for the second quarter of 1992, compared with $216.9 million in the second quarter of 1991. For six months, residential production was $799.0 million, compared with $403.2 million in 1991. Total loan production for the second quarter of 1992 was $467.7 million, compared with $231.5 million for the second quarter of 1991. Total loan production for six months was $825.8 million, compared with $435.2 million in the corresponding period of 1991. The Boston Five services almost $2.7 billion in mortgages for others.
 As of April 30, 1992, The Boston Five had a book value of $12.25 per share and exceeded all three Office of Thrift Supervision (OTS) regulatory capital requirements.
 The Boston Five Bancorp, Inc. is the holding company of The Boston Five Cents Savings Bank FSB. With total assets of more than $1.8 billion, The Boston Five is one of the largest savings banks headquartered in Massachusetts. Deposits of The Boston Five are insured by the Bank Insurance Fund (BIF) of the FDIC.
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 Three Months Ended Six Months Ended
 April 30, April 30,
 1992 1991 1992 1991
 Interest income $35,279 $44,024 $72,163 $93,504
 Interest expense 22,006 34,461 46,883 73,723
 Net interest income 13,273 9,563 25,280 19,781
 Provision for losses
 on loans 3,556 2,556 8,057 4,042
 Net interest income after
 provision for losses
 on loans 9,717 7,007 17,223 15,739
 Non interest income:
 Loan and other related fees 429 497 855 820
 Mortgage service fees 1,984 1,674 4,010 3,501
 Customer service fees 842 803 1,558 1,573
 Real estate operations, net (6,913) (4,072) (10,642) (7,100)
 Gain (loss) on securities, net (109) 152 636 (505)
 Gain on sale of loans and
 servicing, net 1,257 977 3,785 1,770
 Other income 114 406 1,269 568
 Total non interest income (2,396) 437 1,471 627
 Non interest expense:
 Salaries and fringe benefits 6,048 6,040 12,448 12,721
 Occupancy 1,238 1,736 2,491 3,304
 Data processing 1,080 1,072 2,087 2,105
 Deposit insurance 990 845 1,999 1,448
 Other 4,137 3,909 8,070 8,479
 Total non interest expenses 13,493 13,602 27,095 28,057
 Income (loss) before
 income taxes (6,172) (6,158) (8,401) (11,691)
 Provision for (benefit from)
 income taxes 1 7 6 88
 Income (loss) before
 extraordinary item (6,173) (6,165) (8,407) (11,779)
 Extraordinary item 4,354 --- 4,354 ---
 Net income (loss) $(1,819) $(6,165) $(4,053)$(11,779)
 Earnings (loss) per common share:
 Earnings (loss) per share
 before extraordinary item $(0.88) $(0.87) $(1.20) $(1.67)
 Extraordinary item $ 0.62 $ -- $ 0.62 --
 Total earnings (loss)
 per share $(0.26) $(0.87) $(0.58) $(1.67)
 Earnings (loss) per share
 were calculated using the
 following number of
 common shares
 Three Months Ended Six Months Ended
 April 30, April 30,
 1992 1991 1992 1991
 7,051,214 7,039,122 7,047,067 7,039,122
 Consolidated Statements of Financial Condition
 ($ in thousands)
 April 30, Oct. 31,
 1992 1991
 Assets
 Cash and due from banks $44,003 $36,542
 Investment securities at cost, net
 (market value $144,050 and $56,040) 143,447 55,147
 Securities held for sale, at lower
 of cost or market 6,640 137,781
 Mortgage-backed securities, at cost
 (market value $667 and $1,645) 619 1,601
 Federal Home Loan Bank stock, at cost 12,026 12,026
 Loans 1,211,023 1,357,370
 Loans held for sale 236,192 159,893
 Loans to joint ventures 8,744 20,927
 Allowance for loan losses (16,378) (24,451)
 Real estate acquired by foreclosure
 or substantively repossessed 46,750 46,979
 Investments in joint ventures, net 16,699 16,388
 Bank premises, furniture and
 equipment, net 56,745 57,672
 Accrued income receivable 12,220 14,276
 Goodwill, net 6,356 6,873
 Purchased and excess mortgage
 servicing rights 40,308 34,570
 Refundable federal and
 state income taxes 209 208
 Other assets 10,761 9,527
 Total assets $1,836,364 $1,943,329
 Liabilities and Stockholders Equity
 Liabilities:
 Deposits $1,664,272 $1,748,528
 Borrowed funds 59,315 74,810
 ESOP debt 6,441 6,962
 Advance payments from mortgagors 8,388 10,751
 Accrued interest payable 4,458 5,701
 Accrued and deferred income taxes 1,350 1,357
 Accrued expenses and
 other liabilities 5,789 5,371
 Total liabilities 1,750,013 1,853,480
 Stockholders' equity:
 Serial preferred stock, authorized
 5 million shares, series authorized:
 series A preferred stock, 200,000
 shares, none issued and outstanding --- ---
 Common stock, $.01 par value, authorized
 20 million shares; issued 7,154,472
 and 7,141,922 shares 72 71
 Paid-in capital 41,548 41,514
 Retained earnings 52,537 56,591
 Treasury stock, 102,800 shares, at cost (1,365) (1,365)
 ESOP debt (6,441) (6,962)
 Total stockholders' equity 86,351 89,849
 Total liabilities and
 stockholders' equity $1,836,364 $1,943,329
 THE BOSTON FIVE BANCORP INC., AND SUBSIDIARY
 Net Interest Margin, Ratios, and Average Balances-(a)
 (Dollars in thousands)
 Three Months Ended Six Months Ended
 4/30/92 4/30/91 4/30/92 4/30/91
 Net interest margin 3.08 pct. 1.79 pct. 2.94 pct. 1.90 pct.
 Interest rate spread:
 For the period 3.34 pct. 1.99 pct. 3.19 pct. 2.10 pct.
 At the end of period 3.38 pct. 2.33 pct. 3.38 pct. 2.33 pct.
 Net income (loss) as a
 percentage of:
 Average assets (0.39)pct.(1.15) pct. (0.43)pct. (1.06)pct.
 Average equity (8.26)pct.(24.12)pct. (9.08)pct.(22.44)pct.
 Average equity to
 average assets 4.68 pct. 4.76 pct. 4.71 pct. 4.74 pct.
 Average assets $1,882,402 $2,150,369 1,896,369 2,213,791
 Average earnings
 assets 1,678,011 1,964,811 1,700,785 2,025,176
 Average loans 1,501,443 1,612,029 1,510,678 1,635,769
 Average deposits 1,700,346 1,805,429 1,713,319 1,852,818
 Average equity 88,128 102,258 89,298 104,986
 NOTE: (a)-Annualized where appropriate.
 LOAN PRODUCTION:
 Residential mortgages:
 Fixed rate $402,303 $185,960 $708,651 $343,463
 Adjustable rate(ARM) 55,211 30,961 90,336 59,691
 Total residential
 mortgages 457,514 216,921 798,987 403,154
 Commercial real estate 354 3,723 594 3,723
 Construction --- 682 4,113 832
 Commercial 400 --- 400 ---
 Education 3,218 2,649 9,527 9,717
 Other consumer 6,222 7,555 12,152 17,759
 Total loan production 467,708 231,530 825,773 435,185
 SELECTED DATA:
 (Dollars in thousands, except per share data)
 4/30/92 10/31/91
 Number of:
 Retail banking offices 25 25
 Loan centers 15 15
 Full time employees 720 720
 Part time employees 123 87
 Dollar volume of
 residential mortgages
 serviced for others $2,691,560 $2,388,414
 Loans on nonaccrual $53,794 $75,873
 Nonaccrual loans as a
 percentage of total
 assets 2.9 pct. 3.9 pct.
 Restructured loans $7,500 $6,000
 Loan loss reserve as a
 percentage of
 total loans 1.1 pct. 1.6 pct.
 Book value per common
 share $12.25 $12.76
 Regulatory capital ratios:
 Tangible (1.5 pct. required) 4.4 pct. 4.3 pct.
 Leverage (3.0 pct. required) 4.6 pct. 4.5 pct.
 Risk-weighted
 (7.2 pct. required) 8.6 pct. 8.1 pct.
 -0- 5/15/92
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of The Boston Five, 617-742-6000, x2106/
 (BFCS) CO: The Boston Five Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN


SH -- NE010 -- 1022 05/15/92 18:21 EDT
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Date:May 15, 1992
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