BSB Bancorp, Inc. Announces Third Quarter Earnings.BINGHAMTON Binghamton (bĭng`əmtən), industrial city (1990 pop. 53,008), seat of Broome co., S central N.Y., at the confluence of the Chenango and the Susquehanna rivers; settled 1787, inc. as a city 1867. , N.Y.--(BUSINESS WIRE)--October 18, 1999-- BSB BSB Backstreet Boys BSB Bayerische Staatsbibliothek BSB British Superbikes (motorcycle racing series) BSB Bachelor of Science in Business BSB Bandar Seri Begawan (capital of Brunei) Bancorp, Inc. (NASDAQ/NMS:BSBN BSBN Baltic Sea Business Network BSBN Bu Sa Bum Nim ), holding company for BSB Bank & Trust Company, announced net income for the quarter ended September September: see month. 30, 1999 of $4,200,000, or $0.40 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, before giving effect to non-recurring after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges of $2,500,000 in the third quarter related to the acquisition of Skaneateles Skaneateles may refer to, in the United States:
Third quarter results also include after-tax charges of $700,000 as a result of the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of a mortgage-backed security Noun 1. mortgage-backed security - a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; and $2,000,000 from the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of a $9,700,000 loan. Before giving effect to these one time charges for the third quarter of 1999 and the acquisition related charges, net income for the three and nine months ended September 30, 1999 would have been $6,900,000 and $18,000,000, respectively, or $0.66 and $1.74 per diluted share, respectively. The after-tax charge of $2,000,000 on the $9,700,000 loan impacted after-tax earnings by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.19 per share. The borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the was a local company with which the Bank has had a loan relationship since 1994. In 1997 the borrower merged with a larger, public company and BSB was part of the lending group providing senior debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay for that transaction. The borrower recently experienced various problems, including product development delays and cash flow shortages. In the third quarter of 1999, BSB made the decision to sell its participation interest in the loan to an investment bank, recognizing the associated loss. BSB expects to complete the sale of the loan this quarter. Alex (language) Alex - 1. A polymorphic language being developed by Stephen Crawley <sxc@itd.dtso.oz.au> of Defence Science & Tech Org, Australia. Alex has abstract data types, type inference and inheritance. 2. Cayuga County – Auburn Cortland County – Cortland Madison County – Oneida State and realizing the efficiencies that come from combining the operations of the two companies. The non-recurring charges for the single loan charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. and the charge to adjust the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. on a security are disappointing. Our core earnings capacity remains strong and we are pleased the benefits of the Skaneateles merger are being realized as expected." Net interest income was $21,427,000 for the third quarter of 1999, compared to $21,058,000 for the third quarter of 1998, an increase of 1.8%. The provision for credit losses was $7,054,000 for the quarter ended September 30, 1999 and $3,533,000 for the quarter ended September 30, 1998. Non-performing assets were $16,943,000 at September 30, 1999 and $17,495,000 at September 30, 1998. The allowance for possible credit losses increased to $27,398,000, or 1.57% of period-end loans outstanding at September 30, 1999, from $24,678,000, or 1.60% of period-end loans outstanding at September 30, 1998. Net charge-offs during the third quarter of 1999 amounted to $6,766,000, or 1.56% of average gross loans outstanding, compared to $2,259,000, or 0.59% of average gross loans outstanding in the third quarter of 1998. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. at September 30, 1999 were $15,444,000, or 0.89% of total gross loans outstanding, compared to $14,668,000, or 0.95% of total gross loans outstanding at September 30, 1998. Other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most as a result of property acquired by foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. or by deed in lieu of foreclosure A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. declined to $1,499,000 at September 30, 1999 from $2,827,000 at September 30, 1998. Non-interest income increased 19.5% to $3,080,000 for the third quarter in 1999 from $2,578,000 for the third quarter of 1998. Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , exclusive of merger-related expenses as discussed above, was $11,326,000 for the third quarter of 1999 and $10,906,000 for the third quarter of 1998. The Bank's Efficiency Ratio, (again exclusive of merger-related expenses), which consists of operating expense divided by recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues (net interest income and non-interest income) on a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis, remains very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. compared to our peer groups', at 46.22% for the third quarter of 1999. Total assets were $2,249,997,000 at September 30, 1999 and $2,087,448,000 at September 30, 1998, an increase of 7.8%. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $152,766,000, or 6.79% of assets, at September 30, 1999 and $152,501,000, or 7.31% of assets, at September 30, 1998. This decline was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a change in unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on securities available for sale of $10.3 million. Book value per share was $14.95 at September 30, 1999 and $15.20 at September 30, 1998. Gross loans were $1,739,666,000 at September 30, 1999 and $1,542,238,000 at September 30, 1998, an increase of 12.8%. Total deposits were $1,770,133,000 at September 30, 1999 and $1,697,551,000 at September 30, 1998, an increase of 4.3%. Total borrowings increased to $284,197,000 at September 30, 1999 from $175,638,000 at September 30, 1998, an increase of 61.8%. -0-
BSB Bancorp, Inc.
Quarters Ended September 30, 1999 1998
---------------------------- ---- ----
Net Income $1,676,000 $5,581,000
Earnings Per Share
Basic $0.16 $0.56
Diluted $0.16 $0.54
Nine Months Ended September 30, 1999 1998
------------------------------- ---- ----
Net Income $11,997,000 $15,860,000
Earnings Per Share
Basic $1.19 $1.59
Diluted $1.16 $1.53
BSB BANCORP, INC. (In Thousands-Except Share Data)
FINANCIAL HIGHLIGHTS
Quarter Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---------------------------------------------------------------------
OPERATIONS DATA
Total interest income $44,262 $43,148 $130,500 $123,062
Total interest expense 22,835 22,090 66,209 62,939
Net interest income 21,427 21,058 64,291 60,123
Provision for credit losses 7,054 3,533 14,210 9,487
Gains (losses) on sale of
securities 1 (15) (215) (530)
Gains (losses) on sale of
loans (32) 47 (335) (289)
Non-interest income 3,080 2,578 8,871 7,361
Operating expense 15,374 10,906 39,196 31,252
Income tax expense 372 3,648 7,209 10,066
Net income 1,676 5,581 11,997 15,860
----------------------------------------------------------------------
SELECTED FINANCIAL DATA
Yield on earning assets (1) 8.25% 8.87% 8.24% 8.83%
Cost of funds (1) 4.38 4.69 4.31 4.67
Interest rate spread during
the period (1) 3.87 4.18 3.93 4.16
Interest rate margin during
the period (1) 3.99 4.33 4.06 4.31
Return on average
assets (1) 0.30 1.08 0.72 1.08
Return on average
equity (1) 4.15 14.65 10.09 14.62
Equity to assets (2) 6.79 7.31 6.79 7.31
Operating expenses to
average assets (1) 2.72 2.12 2.35 2.12
Efficiency ratio 62.73 46.14 53.57 46.31
----------------------------------------------------------------------
PER SHARE DATA
Basic earnings $0.16 $0.56 $1.19 $1.59
Diluted earnings $0.16 $0.54 $1.16 $1.53
Book value $14.95 $15.20 $14.95 $15.20
Dividends paid $0.25 $0.20 $0.70 $0.60
Dividend payout ratio 152.41% 35.77% 59.15% 37.71%
(1) Annualized
(2) At period ended
----------------------------------------------------------------------
FINANCIAL CONDITION
DATA at September 30, 1999 1998 Percent Change
----------------------------------------------------------------------
Assets $2,249,997 $2,087,448 7.8%
Earning assets 2,114,811 1,982,767 6.7
Gross loans 1,739,666 1,542,238 12.8
Investment securities 397,201 452,046 -12.1
Deposits 1,770,133 1,697,551 4.3
Borrowings 284,197 175,638 61.8
Subordinated debt 30,000 30,000 0.0
Shareholders' equity 152,766 152,501 0.2
Allowance for possible
credit losses 27,398 24,678 11.0
Non-performing loans 15,444 14,668 5.3
Other real estate 1,499 2,827 -47.0
Trust assets 328,326 262,208 25.2
Mortgage serviced loans 562,059 487,468 15.3
--------------------------------------------------------------------
AVERAGE BALANCES (YTD)
--------------------------------------------------------------------
Assets $2,222,806 $1,965,132 13.1%
Earning assets 2,111,004 1,858,551 13.6
Gross loans 1,691,605 1,492,593 13.3
Investment securities 436,064 374,412 16.5
Deposits 1,776,919 1,583,605 12.2
Borrowings 239,810 205,384 16.8
Subordinated debt 30,000 7,712 289.0
Shareholders' equity 158,591 144,646 10.0
Shares outstanding 10,108,821 9,997,303 1.1
Diluted shares outstanding 10,333,297 10,370,486 -0.4
BSB BANCORP, INC.
(Dollars In Thousands - Except Per Share Data)
CONSOLIDATED STATEMENTS OF CONDITION
September 30, December 31,
1999 1998
ASSETS
Cash and due from banks $ 63,880 $ 45,987
Federal funds sold 24,300
Investment securities available
for sale 383,469 415,000
Investment securities held to
maturity (market value $13,895
and $12,939) 13,732 12,537
Mortgages held for sale 4,588 16,806
Loans:
Commercial 918,340 802,474
Consumer 471,385 410,787
Real estate 349,941 364,648
---------------------------------------------------------------------
Total loans 1,739,666 1,577,909
Less: Net deferred costs (754) (507)
Allowance for possible
credit losses 27,398 25,030
---------------------------------------------------------------------
Net loans 1,713,022 1,553,386
Bank premises and equipment 16,136 15,864
Accrued interest receivable 14,368 16,352
Other real estate 1,499 3,021
Intangible assets 1,695 1,598
Other assets 37,608 30,476
$2,249,997 $2,135,327
LIABILITIES & SHAREHOLDERS' EQUITY
Due to depositors $1,770,133 $1,709,860
Borrowings 284,197 229,736
Other liabilities 12,901 11,640
Company obligated mandatorily
redeemable preferred securities
of subsidiary, Capital Trust I,
holding solely junior
subordinated
debentures of the Company 30,000 30,000
Shareholders' Equity:
Preferred Stock, par value $0.01
per share; authorized
2,500,000 shares; none issued
Common Stock, par value $0.01
per share; authorized
30,000,000 shares; 11,394,921
and 11,237,470 shares issued 114 112
Additional paid-in capital 24,967 23,038
Undivided profits 148,389 143,887
Accumulated other comprehensive
income (7,258) 425
Treasury stock, at cost:
1,173,669 shares and
1,196,396 shares (13,446) (13,371)
Total Shareholders' Equity 152,766 154,091
---------------------------------------------------------------------
$2,249,997 $2,135,327
BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands-Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---------------------------------------------------------------------
Interest income:
Interest and fees on
loans $38,546 $35,282 $110,907 $103,131
Interest on federal
funds sold 23 276 443 637
Interest on
investment securities 5,530 7,255 18,478 18,420
Interest on mortgages
held for sale 163 335 672 874
---------------------------------------------------------------------
Total interest
income 44,262 43,148 130,500 123,062
Interest expense:
Interest on savings
deposits 1,294 1,350 3,700 3,909
Interest on time
accounts 13,592 13,989 40,911 38,948
Interest on money
market deposit
accounts 3,322 3,386 9,268 9,970
Interest on
NOW accounts 467 376 1,405 1,072
Interest on borrowed
funds 3,537 2,529 9,062 8,580
Interest on
mandatorily
redeemable
preferred securities
of subsidiary 623 460 1,863 460
---------------------------------------------------------------------
Total interest
expense 22,835 22,090 66,209 62,939
---------------------------------------------------------------------
Net interest income 21,427 21,058 64,291 60,123
Provision for credit
losses 7,054 3,533 14,210 9,487
---------------------------------------------------------------------
Net interest income after
provision for
credit losses 14,373 17,525 50,081 50,636
Gains (Losses) on sale
of securities 1 (15) (215) (530)
Losses on sale of loans (32) 47 (335) (289)
Non-interest income:
Service charges on
deposit accounts 1,100 957 3,216 2,797
Credit card fees 488 350 1,165 913
Mortgage servicing
fees 330 331 1,036 943
Fees and
commissions-brokerage
services 307 148 631 398
Trust fees 275 231 819 703
Other charges,
commissions, and
fees 580 561 2,004 1,607
---------------------------------------------------------------------
Total non-interest
income 3,080 2,578 8,871 7,361
--------------------------------------------------------------------
Operating expense:
Salaries, pensions,
and other employee
benefits 5,180 5,054 15,494 14,406
Building occupancy 1,078 1,098 3,470 3,305
Dealer commission
expense 256 162 801 776
Computer service fees 469 640 1,594 1,464
Services 1,394 988 4,309 2,990
FDIC insurance 54 48 164 144
Goodwill 96 96 244 244
Interchange fees 375 259 898 658
Other real estate 250 258 210 413
Other expenses 6,222 2,303 12,012 6,852
---------------------------------------------------------------------
Total operating
expense 15,374 10,906 39,196 31,252
---------------------------------------------------------------------
Income before income
taxes 2,048 9,229 19,206 25,926
---------------------------------------------------------------------
Provision for income
taxes 372 3,648 7,209 10,066
---------------------------------------------------------------------
NET INCOME $ 1,676 $ 5,581 $ 11,997 $ 15,860
=====================================================================
Earnings per share:
Basic $0.16 $0.56 $1.19 $1.59
Diluted $0.16 $0.54 $1.16 $1.53
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