BSB Bancorp earns $4,009,000 in first quarter of 1997.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 22, 1997--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 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) Bank & Trust Company, announced net income for the quarter ended March 31, 1997 of $4,009,000, compared to $3,573,000 for the same quarter in 1996, an increase of 12.2%. The Bank's return on average equity increased substantially rising from 12.18% for the quarter ended March 31, 1996 to 14.34% for the same quarter in 1997. The Bank's return on average assets remained relatively stable at 1.16% for the quarter ended March 31, 1997 compared to 1.15% for the quarter ended March 31, 1996. Earnings per share increased 24.6% for the quarter ended March 31, 1997 to $0.71, compared to $0.57 for the same quarter in 1996. This increase was due to the increase in earnings and the company's repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of common stock. During the past twelve months, BSB Bancorp purchased 577,100 shares of its stock in the open market. The average number of shares outstanding for the quarter ended March 31, 1997 was 5,630,763, compared to 6,216,018 for the quarter ended March 31, 1996. In comparing the first quarter of 1997 to the similar period in 1996, 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. n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. programs resulting in its favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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. ratios. As a result, the Bank has increased its interest income by 13.6%, increased its yield on 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 from 8.67% to 8.73%, and increased its interest rate margin from 4.32% to 4.36%. The Bank's operating expense ratios continue to be better than our peer groups'." The Bank had net losses on the sale of loans and securities of $5,000 for the first quarter of 1997 and net gains of $191,000 for the first quarter of 1996. Non-interest income was $1,934,000 for the first quarter of 1996 and $1,378,000 for the first quarter of 1997. This decrease was primarily due to a decrease in fees associated with the loss of one merchant credit card relationship in the fourth quarter of 1996. This reduction in merchant credit card fee income was substantially offset by a reduction in processing fee expenses associated with that merchant. Non-interest expense decreased from $6,702,000 for the quarter ended March 31, 1996 to $6,617,000 for the quarter ended March 31, 1997. This decrease was primarily the result of a reduction of $335,000 in processing costs associated with the merchant credit card business. The bank's Efficiency Ratio, which consists of non-interest 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 at 42.15% for the first quarter of 1997. The provision for credit losses was $2,460,000 for the first quarter of 1997 and $2,073,000 for the first quarter of 1996. Net charge-offs during the first quarter of 1997 amounted to $1,958,000 or 0.75% of average gross loans outstanding compared to $1,426,000, or 0.61% of average gross loans outstanding in the first quarter of 1996. 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 March 31, 1997 were $11,914,000, or 1.11% of total gross loans outstanding compared to $13,558,000, or 1.45% of total gross loans outstanding at March 31, 1996. 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 from $2,286,000 at March 31, 1996 to $1,273,000 at March 31, 1997. The allowance for possible credit losses increased from $14,712,000, or 1.57% of total gross loans outstanding at March 31, 1996 to $17,556,000, or 1.64% of total gross loans outstanding at March 31, 1997. 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 $110,647,000 or 7.83% of assets, at March 31, 1997 and $114,785,000 or 9.19% of assets, at March 31, 1996. Book value per share was $19.54 at March 31, 1997 and $18.68 at March 31, 1996. Gross loans were $1,073,369,000 at March 31, 1997 and $936,426,000 at March 31, 1996, an increase of 14.6%. Total deposits were $1,119,656,000 on March 31, 1997 and $1,033,974,000 on March 31, 1996, an increase of 8.3%. -0-
BSB BANCORP, INC.
Quarter Ended March 31, 1997 1996
Net Income $4,009,000 $3,573,000
Earnings Per Share $0.71 $0.57
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BSB BANCORP, INC. (In Thousands-Except Per Share Amounts)
FINANCIAL HIGHLIGHTS-QUARTERLY
Quarter Ended March 31,
OPERATIONS DATA 1997 1996
Total interest income $ 28,691 $ 25,268
Total interest expense 14,369 12,682
Net interest income 14,322 12,586
Provision for credit losses 2,460 2,073
Gains (losses) on sale of securities (4) 35
Gains (losses) on sale of loans (1) 156
Non-interest income 1,378 1,934
Operating expense 6,617 6,702
Income tax expense 2,609 2,363
Net income 4,009 3,573
SELECTED FINANCIAL DATA
Yield on earning assets (a) 8.73% 8.67%
Cost of funds (a) 4.58 4.59
Interest rate spread during the
period (a) 4.15 4.08
Interest rate margin during the
period (a) 4.36 4.32
Return on average assets (a) 1.16 1.15
Return on average equity (a) 14.34 12.18
Equity to assets (b) 7.83 9.19
Operating expenses to average
assets (a) 1.91 2.17
Efficiency ratio 42.15 46.16
PER SHARE DATA
Earnings $ 0.71 $ 0.57
Book value $19.54 $18.68
Dividends declared $ 0.25 $ 0.20
FINANCIAL CONDITION DATA at March 31,
Percent
1997 1996 Change
Assets $ 1,413,796 $ 1,249,463 13.15%
Net loans 1,055,262 921,127 14.56
Mortgage-backed securities 127,335 129,770 (1.88)
Investment securities 155,253 124,746 24.46
Deposits 1,049,684 993,974 5.60
Brokered deposits 69,972 40,000 74.93
Borrowings 165,695 81,299 103.81
Shareholders' equity 110,647 114,785 (3.61)
Allowance for possible
credit losses 17,556 14,712 19.33
Non-performing loans & other
real estate 13,187 15,844 (16.77)
Non-performing loans 11,914 13,558 (12.13)
AVERAGE BALANCES - YTD
Assets $ 1,384,049 $ 1,238,203 11.78
Net loans 1,022,711 916,081 11.64
Mortgage-backed securities 150,640 134,165 12.28
Investment securities 138,967 114,025 21.87
Deposits 1,047,420 972,874 7.66
Brokered deposits 48,700 40,000 21.75
Borrowings 158,016 91,343 72.99
Shareholders' equity 111,801 117,300 (4.69)
Trust assets 198,564 171,804 15.58
Serviced loans 352,711 313,717 12.43
Shares outstanding 5,630,763 6,216,018 (9.42)
(a) Annualized
(b) At period ended
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BSB BANCORP INC.
CONSOLIDATED STATEMENTS OF CONDITION (In thousands)
March 31, December 31,
1997 1996
ASSETS
Cash and due from banks $ 31,178 $ 46,427
Investment Securities available for sale 257,463 263,602
Investment securities held to maturity
(market value $25,801 and $24,822) 25,125 24,062
Mortgages held for sale 2,903 1,567
Loans:
Commercial 585,326 536,779
Consumer 229,822 217,068
Real Estate 258,221 254,693
Total loans 1,073,369 1,008,540
Less: Unearned discounts 551 594
Allowance for possible
credit losses 17,556 17,054
Net Loans 1,055,262 990,892
Bank premises and equipment 8,842 9,007
Accrued interest receivable 10,321 9,352
Other real estate 1,273 1,393
Intangible assets 2,114 2,188
Other assets 19,315 14,630
---------- ----------
$ 1,413,796 $ 1,363,120
LIABILITIES AND SHAREHOLDERS' EQUITY
Due to depositors $ 1,119,656 $ 1,118,052
Borrowings 165,695 120,502
Other liabilities 17,798 15,837
Commitments
Shareholders' equity:
Preferred stock, par value $0.01
per share; authorized 2,500,000
shares: none issued 0 0
Common stock, par value $0.01 per
share; authorized 30,000,000 shares;
7,396,977 shares and 7,344,427 shares
issued 74 73
Additional paid in capital 28,481 27,824
Undivided profits 114,060 111,466
Unrealized depreciation in
securities available for sale, net (2,211) (877)
Treasury stock, at cost;
1,735,128 and 1,735,128 shares (29,757) (29,757)
Total shareholders' equity 110,647 108,729
---------- ----------
$ 1,413,796 $ 1,363,120
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BSB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands-except per share data)
Three Months Ended March 31,
1997 1996
Interest Income:
Interest and fees on loans $ 23,620 $ 20,963
Interest on investment
securities 5,058 4,254
Interest on mortgages held
for sale 13 51
Total interest income 28,691 25,268
Interest expense:
Interest on savings deposits 945 1,010
Interest on time accounts 8,329 7,742
Interest on money market
deposit accounts 2,770 2,445
Interest on NOW accounts 194 193
Interest on borrowed funds 2,131 1,292
Total interest expense 14,369 12,682
Net interest income 14,322 12,586
Provision for credit
losses 2,460 2,073
Net interest income after
provision for credit losses 11,862 10,513
Gains (losses) on the sale of securities (4) 35
Gains (losses) on sale of loans (1) 156
Non-interest Income:
Service charges on deposit
accounts 519 419
Credit card fees 141 801
Mortgage servicing fees 279 271
Fees and commissions-
brokerage services 117 118
Trust fees 159 140
Other charges, commissions,
and fees 163 185
Total non-interest income 1,378 1,934
Non-interest expense:
Salaries, pensions, and
other employee benefits 3,375 3,214
Building occupancy 696 594
Computer service fees 213 221
Services 441 571
FDIC insurance 19 18
Goodwill 74 74
Interchange fees 105 440
Other real estate 250 136
Other expenses 1,444 1,434
Total non-interest expense 6,617 6,702
Income before income taxes 6,618 5,936
Provision for income taxes 2,609 2,363
NET INCOME $ 4,009 $ 3,573
Earnings per share $ 0.71 $ 0.57
Average shares outstanding 5,630,763 6,216,018
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CONTACT: BSB Bancorp, Inc. Alex S. DePersis, 607/779-2584 Website: www.bsbbank.com |
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