BSB Bancorp Inc. earns $2,983,000 in first quarter.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)--April 21, 1995--BSB Bancorp Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BSBN BSBN Baltic Sea Business Network BSBN Bu Sa Bum Nim ), holding company for Binghamton Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , announced net income for the quarter ended March 31, 1995 of $2,983,000, compared to $3,262,000 for the same quarter in 1994. Earnings per share for the quarter ended March 31 were $.69 compared to $.74 for the same quarter in 1994. Net interest income for the quarter ended March 31 increased 5.14%. Non-interest income increased 23.54%. The increase in net interest income occurred despite a decrease in the interest rate spread and was largely due to the matching of interest-rate sensitive assets and liabilities and an increase in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin . The expansion of non-interest income resulted largely from increased mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. fee income, growth in the consumer and merchant credit card business resulting in increased fee income, and increased income from service charges on deposit accounts. The provision for credit losses increased from $948,000 to $1,360,000 for the quarters ended March 31, 1994 and 1995, respectively. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased from $5,750,000 for the first quarter of 1994, to $6,898,000 for the first quarter of 1995. This increase reflects the operating costs operating costs npl → gastos mpl operacionales associated with two additional branches acquired in 1994 (including salary, benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy , goodwill and other operating expenses), increased processing fees incurred in the merchant credit card program, as well as a general increase in operating expenses. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets was 1.03% for the first quarter of 1995, compared to 1.21% for the first quarter of 1994. The annualized return on average equity was 10.50% compared to 12.03% for the quarter ended March 31, 1994. Net loans increased from $801,802,000 at March 31, 1994 to $875,042,000 at March 31, 1995, an increase of 9.13%. Deposits increased from $884,249,000 at March 31, 1994 to $943,417,000 at March 31, 1995, an increase of 6.69%. Borrowings increased from $79,563,000 to $108,541,000 for the same period. 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. and 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 increased to $14,754,000, or 1.26% of total assets at March 31, 1995, compared to $11,486,000, or 1.06% of total assets at March 31, 1994. The increase primarily reflects two commercial real estate loans which were classified as non-performing by management during the quarter. The Bank also charged-off over $1,000,000 in connection with these loans, which was the primary factor in net charge offs during the first quarter increasing to $1,656,000, or 0.75% of average gross loans outstanding, compared to $339,000, or 0.17% of average gross loans outstanding in the first quarter of 1994. The allowance for possible credit losses was $15,551,000, or 1.74% of total gross loans outstanding at March 31, 1995, compared to $15,843,000, or 1.93% of total gross loans outstanding at March 31, 1994. 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 $111,873,000, or 9.53% of assets, at March 31, 1995, compared to $108,474,000, or 10.04% of assets at March 31, 1994. Book value per share increased from $24.49 at March 31, 1994, to $26.02 at March 31, 1995. -0- BSB BANCORP INC. Quarter Ended March 31 1995 1994 Net income $ 2,983,000 $ 3,262,000 Earnings per share $ 0.69 $ 0.74 BSB BANCORP INC. Financial Highlights (Dollars in thousands - except per share amounts)
March 31,
1995 1994
Operations data Net interest income $11,765 $11,190 Provision for credit losses 1,360 948 Gain (loss) on sale of securities (17) 117 Gain on sale of mortgages, net 37 (330) Non-interest income 1,459 1,181 Operating expense 6,898 5,750 Income tax expense 2,003 2,198 Net income 2,983 3,262 Selected Financial Data Yield on earning assets 8.66% 7.68% Cost of funds(1) 4.68 3.58 Interest rate spread during the period(1) 3.98 4.10 Return on average assets(1) 1.03 1.21 Return on average equity(1) 10.50 12.03 Equity to assets(2) 9.53 10.04 Operating expenses to average assets(1) 2.38 2.13 Efficiency ratio 52.16 46.48 Per Share Data Earnings $ 0.69 $ 0.74 Book value $26.02 $24.49 Dividends declared $ 0.22 $ 0.19
March 31, Percent
1995 1994 Change
Financial Condition Data
Assets $1,173,981 $1,080,538 8.65%
Net loans 875,042 801,802 9.13
Mortgage-backed securities 141,755 149,951 (5.47)
Investment securities 88,204 51,383 71.66
Deposits 943,417 884,249 6.69
Borrowings 108,541 79,563 36.42
Shareholders' equity 111,873 108,474 3.13
Allowance for possible credit losses 15,551 15,843 (1.84)
Non-performing loans & other
real estate 14,754 11,486 28.45
Non-performing loans 11,883 9,429 26.03
(1) Annualized (2) At period ended BSB BANCORP INC. Consolidated Statements of Income (Dollars in thousands - except per share data)
Three months ended March 31,
1995 1994
Interest Income: Interest and fees on loans $19,986 $16,233 Interest on mortgage-backed securities 2,504 2,469 Interest on mortgages held for sale 20 25 Interest on federal funds sold and interest-bearing deposits 30 154 Interest and dividends on investment securities: U.S. Government obligations 652 388 State and municipal obligations 108 84 Other debt obligations 383 270 Corporate stocks 170 194 Total interest income 23,853 19,817 Interest Expense: Interest on savings deposits 1,136 1,238 Interest on time accounts 6,765 5,145 Interest on money market deposit accounts 2,550 1,106 Interest on NOW accounts 184 193 Interest on borrowed funds 1,453 945 Total interest expense 12,088 8,627 Net interest income 11,765 11,190 Provision for credit losses 1,360 948 Net interest income after provision for credit losses 10,405 10,242 Net security gains (17) 117 Gain (loss) on the sale of mortgages, net 37 (330) Non-interest Income: Service charges on deposit accounts 365 324 Credit card fees 442 296 Mortgage servicing fees 236 191 Fees and commissions- brokerage services 88 73 Trust fees 125 112 Other charges, commissions, and fees 203 185 Total non-interest income 1,459 1,181 Non-interest expense: Salaries, pensions, and other employee benefits 3,070 2,797 Building occupancy 616 517 Computer service fees 189 180 Services 600 400 FDIC insurance 538 493 Other expenses 1,885 1,363 Total non-interest expense 6,898 5,750 Income before income taxes 4,986 5,460 Provision for income taxes 2,003 2,198 Net income $ 2,983 $ 3,262 Earnings per share $ 0.69 $ 0.74 Average shares outstanding 4,295,794 4,427,040 BSB Bancorp Inc. Consolidated Statements of Condition (Dollars in thousands)
March 31, Dec. 31,
1995 1994
ASSETS
Cash and due from banks $28,745 $28,199
Federal funds sold 0 10,500
Total cash and cash equivalents 28,745 38,699
Investment securities (market
value $88,198 and $86,674) 88,204 86,686
Mortgage-backed securities
(market value $141,958
and $143,048) 141,755 143,177
Mortgages held for sale 1,191 1,782
Loans:
Real estate 288,516 277,344
Commercial 402,884 386,875
Consumer 200,138 200,863
Total loans 891,538 865,802
Less: Unearned discounts 945 1,218
Allowance for possible
credit losses 15,551 15,847
Net loans 875,042 848,017
Bank premises and equipment 7,114 7,136
Accrued interest receivable 8,130 7,697
Other real estate 2,871 3,234
Intangible assets 2,704 2,778
Other assets 18,225 20,202
---------- ----------
$1,173,981 $1,159,408
LIABILITIES AND SHAREHOLDERS' EQUITY
Due to depositors $943,417 $962,780
Borrowings 108,541 79,028
Other liabilities 10,150 10,730
Commitments
Shareholders' equity:
Preferred stock, par value $0.01
per share; authorized 5,000,000
shares; none issued
Common stock, par value $0.01 per
share; authorized 10,000,000
shares; 4,828,142 shares and
4,820,617 shares issued 48 48
Additional paid in capital 26,529 26,436
Surplus fund 20,058 20,058
Undivided profits 74,965 72,928
Unrealized appreciation
(depreciation) in securities
available for sale, net (2,673) (5,546)
Treasury stock, at cost;
528,419 shares (7,054) (7,054)
Total shareholders' equity 111,873 106,870
---------- ----------
$1,173,981 $1,159,408
CONTACT: 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, Binghamton William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack H. Rincker, 607/779-2536 |
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