BSB Bancorp earns record $15,204,000 for 1996; $4,172,000 in fourth quarter; declares quarterly cash dividend.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)--Jan. 27, 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 Co., announced record net income in 1996 of $15,204,000, compared to $12,594,000 for 1995, an increase of 20.7 percent. The return on average equity increased substantially in 1996, rising from 10.89 percent in 1995 to 13.49 percent in 1996. Record net income for the quarter ended Dec. 31, 1996 was $4,172,000, compared to $3,020,000 for the same quarter in 1995, an increase of 38.2 percent. The return on average assets was 1.19 percent in 1996 and 1.06 percent in 1995. Earnings per share increased 29.8 percent for the year and 54.2 percent for the fourth quarter as compared to the same periods last year. These increases were due to record earnings performance 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. Earnings per share were $2.57 for 1996, compared to $1.98 for 1995. Earnings per share for the quarter ended Dec. 31, 1996 were $0.74, compared to $0.48 for the same quarter 1995. During 1996, BSB Bancorp purchased 707,600 shares of its stock in the open market. The average number of shares outstanding for 1996 was 5,909,467, compared to 6,360,664 for 1995. At its meeting held on Jan. 27, 1997, the board of directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable March 10, 1997 to shareholders of record at the close of business on Feb. 24, 1997. In 1996, the company raised its dividend twice. Cash dividends paid in 1996 rose to $5,257,000 compared to $4,062,000 in 1995, an increase of 29.4 percent. Net interest income was $53,781,000 for 1996, compared to $48,613,000 for 1995, an increase of 10.6 percent. The interest rate margin increased from 4.30 percent in 1995 to 4.46 percent in 1996. The provision for credit losses was $9,971,000 for 1996 and $7,333,000 for 1995. The bank had a net gain on the sale of loans and securities of $1,174,000 for 1996 and had a net gain on the sale of loans and securities of $56,000 for 1995. Non-interest income was $8,140,000 in 1996 and $6,672,000 in 1995. This increase resulted largely from the growth in income from service charges on deposit accounts, brokerage services, 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, increased trust business, other charges, commissions and fees, and from growth in the consumer and merchant credit card business resulting in increased fee income. Non-interest expense increased 3.0 percent from 1995 to 1996. The increase was the result of the costs associated with processing fees related to the growth in the merchant credit card program, as well as other increases in non-interest expense. These increases were partially offset by a reduction of $898,000 in FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insurance premiums and a reduction of $709,000 in other real estate expenses. The 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 favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. at 45.29 percent for 1996 compared to 49.27 percent for 1995. Net interest income was $14,350,000 for the quarter ended Dec. 31, 1996 and $12,274,000 for the quarter ended Dec. 31, 1995, an increase of 16.9 percent. The interest rate margin was 4.59 percent for the quarter ended Dec. 31, 1996, and 4.26 percent for the quarter ended Dec. 31, 1995. Non-interest expense was $6,889,000 for the quarter ended Dec. 31, 1996, and $6,674,000 for the quarter ended Dec. 31, 1995. Non-interest income was $1,726,000 for the fourth quarter of 1996, and $2,157,000 for the fourth quarter of 1995. This reduction was primarily the result of the loss of one large merchant credit card relationship in the fourth quarter of 1996. The reduction of future income is expected to be substantially offset by a reduction in the processing fee expenses associated with that merchant. Net charge-offs of $1,351,000 and an increase in the allowance for possible credit losses to $17,054,000 resulted in a provision for credit losses of $2,245,000 for the fourth quarter of 1996. The provision for credit losses was $3,237,000 for the fourth quarter of 1995. The ratio of net charge-offs to average gross loans declined from 1.03 percent for the fourth quarter of 1995 to 0.54 percent for the same quarter in 1996. Losses from the sale of loans and securities were $72,000 for the quarter ended Dec. 31, 1996 compared to gains of $271,000 for the quarter ended Dec. 31, 1995. Net charge-offs during 1996 amounted to $6,982,000, or 0.72 percent of average gross loans outstanding compared to $6,622,000, or 0.72 percent of average gross loans outstanding in 1995. 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. declined from $12,812,000, or 1.38 percent of total gross loans outstanding at Dec. 31, 1995 to $12,217,000, or 1.21 percent of total gross loans outstanding at Dec. 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 $2,468,000 at Dec. 31, 1995 to $1,393,000 at Dec. 31, 1996. Total loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. increased 22.5 percent from $315,784,000 in 1995 to $386,818,000 in 1996. As loan growth continued to be strong in the bank's surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. market areas, the allowance for possible credit losses was increased by $2,989,000 or 21.3 percent in 1996. The allowance for possible credit losses was $17,054,000, or 1.69 percent of total gross loans outstanding at Dec. 31, 1996 and $14,065,000, or 1.52 percent of total gross loans outstanding at Dec. 31, 1995. 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 $108,729,000, or 7.98 percent of assets, at Dec. 31, 1996 and $116,774,000, or 9.42 percent of assets, at Dec. 31, 1995. Book value per share was $19.38 at Dec. 31, 1996 and $18.70 at Dec. 31, 1995. Gross loans were $1,008,540,000 at Dec. 31, 1996 and $927,016,000 at Dec. 31, 1995, an increase of 8.8 percent. Deposits were $1,118,052,000 on Dec. 31, 1996 and $1,006,465,000 on Dec. 31, 1995, an increase of 11.1 percent. -0- BSB BANCORP, INC. Quarters Ended December 31 1996 1995 Net Income $ 4,172,000 $ 3,020,000 Earnings Per Share $ 0.74 $ 0.48 Years Ended December 31 1996 1995 Net income $15,204,000 $12,594,000 Earnings Per Share $2.57 $1.98 -0- BSB BANCORP INC. (Dollars in Thousands-Except Per Share Amounts) FINANCIAL HIGHLIGHTS Quarters Ended Dec. 31, OPERATIONS DATA 1996 1995 Total interest income $ 28,065 $ 25,259 Total interest expense 13,715 12,985 Net interest income 14,350 12,274 Provision for credit losses 2,245 3,237 Gains (losses) on sale of securities (92) 185 Gains (losses) on sale of loans 20 86 Non-interest income 1,726 2,157 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. 6,889 6,674 Income tax expense 2,698 1,771 Net income 4,172 3,020 SELECTED FINANCIAL DATA 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 (a and c) 8.98% 8.76% Cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. (a) 4.60 4.78 Interest rate spread during the period (a and c) 4.38 3.98 Interest rate margin during the period (a and c) 4.59 4.26 Return on average assets (a and c) 1.27 0.99 Return on average equity (a) 15.40 10.39 Equity to assets (b and c) 7.98 9.42 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. to average assets (a and c) 2.09 2.19 Efficiency ratio 42.85 46.25 PER SHARE DATA Earnings $ 0.74 $ 0.48 Book value (b) $19.38 $18.70 Dividends paid $ 0.25 $ 0.20 -0- Years Ended Dec. 31, OPERATIONS DATA 1996 1995 Total interest income $106,252 $ 99,034 Total interest expense 52,471 50,421 Net interest income 53,781 48,613 Provision for credit losses 9,971 7,333 Gains (losses) on sale of securities1,208 97 Gains (losses) on sale of loans (34) (41) Non-interest income 8,140 6,672 Operating expense 28,045 27,239 Income tax expense 9,875 8,175 Net income 15,204 12,594 SELECTED FINANCIAL DATA Yield on earning assets (a and c) 8.80% 8.77% Cost of funds (a) 4.58 4.75 Interest rate spread during the period (a and c) 4.22 4.02 Interest rate margin during the period (a and c) 4.46 4.30 Return on average assets (a and c) 1.19 1.06 Return on average equity (a) 13.49 10.89 Equity to assets (b and c) 7.98 9.42 Operating expenses to average assets (a and c) 2.20 2.29 Efficiency ratio 45.29 49.27 PER SHARE DATA Earnings $ 2.57 $ 1.98 Book value (b) $19.38 $18.70 Dividends paid $ 0.89 $ 0.65 FINANCIAL CONDITION DATA at Dec. 31, 1996 1995 Percent change Assets (c) $1,363,120 $1,239,036 10.01 % Net loans (c) 990,892 912,346 8.61 Mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. 158,788 143,978 10.29 Investment securities 128,877 103,114 24.98 Deposits 1,078,060 966,465 11.55 Brokered deposits 39,992 40,000 (0.02) Borrowings 120,502 98,949 21.78 Shareholders' equity 108,729 116,774 (6.89) Allowance for possible credit losses (c) 17,054 14,065 21.25 Non-performing loans & other real estate 13,610 15,280 (10.93) Non-performing loans 12,217 12,812 (4.64) AVERAGE BALANCES - YTD See Year-to-date. YTD See year to date (YTD). Assets (c) $1,277,352 $1,190,851 7.26 Net loans (c) 953,983 900,702 5.92 Mortgage-backed securities 135,842 135,384 0.34 Investment securities 114,463 91,067 25.69 Deposits 1,015,212 928,047 9.39 Brokered deposits 40,000 33,214 20.43 Borrowings 91,605 99,324 (7.77) Shareholders' equity 112,737 115,657 (2.52) Trust assets 178,049 151,424 17.58 Serviced loans 325,603 271,318 20.01 Shares outstanding 5,909,467 6,360,664 (7.09) (a) 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. (b) At period ended (c) These amounts have been affected by a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of an allowance for credit losses to a liability account in the amount of $2.5 million. -0- BSB BANCORP INC. CONSOLIDATED STATEMENTS OF CONDITION December December: see month. 31, 1996 1995 ASSETS Cash and due from banks $ 46,427,178 $ 43,825,565 Investment securities available for sale 263,602,142 228,113,449 Investment securities held-to-maturity (Market value of $24,821,601 and $19,769,644) 24,062,374 18,977,997 Mortgages held for sale 1,566,649 1,279,802 Loans: Commercial 536,778,911 455,443,997 Consumer 217,067,811 200,546,061 Real Estate 254,693,421 271,026,326 Total loans 1,008,540,143 927,016,384 Less: Unearned discounts 594,226 605,479 Allowance for possible credit losses 17,053,647 14,065,000 Net Loans 990,892,270 912,345,905 Bank premises and equipment 9,006,476 7,288,524 Accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. receivable 9,351,526 8,486,094 Other real estate 1,393,359 2,467,880 Intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. 2,187,916 2,482,916 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 14,630,195 13,767,397 ---------- ---------- $1,363,120,085 $1,239,035,529 LIABILITIES AND SHAREHOLDERS' EQUITY Due to depositors $1,118,052,301 $1,006,465,180 Borrowings 120,501,962 98,948,728 Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 15,836,827 16,847,975 Commitments Shareholders' equity: Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , par value $0.01 per share; 2,500,000 shares authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: : none issued Common stock, par value $0.01 per share; 30,000,000 shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. ; 7,344,427 and 7,270,925 shares issued 73,444 72,709 Additional paid in capital 27,824,147 26,861,407 Undivided profits undivided profit The undistributed net income that has not yet been included as part of retained earnings. 111,465,208 101,518,771 Unrealized (depreciation) appreciation in securities available for sale, net (876,647) 168,878 Treasury stock, at cost; 1,735,128 and 1,027,528 shares (29,757,157) (11,848,119) Total shareholders' equity 108,728,995 116,773,646 ---------- ---------- $1,363,120,085 $1,239,035,529 -0- BSB BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME Years Ended Dec. 31, 1996 1995 1994 Interest Income: Interest and fees on loans $88,304,418 $83,584,018 $69,191,993 Interest on short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investment securities 0 30,289 642,665 Interest on investment securities 17,672,004 15,204,360 14,920,310 Interest on mortgages held for sale 275,145 215,758 169,414 Total interest income 106,251,567 99,034,425 84,924,382 Interest Expense: Interest on savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. 4,038,946 4,376,740 5,126,801 Interest on time accounts 31,960,648 28,624,637 22,817,648 Interest on money market deposit accounts 10,525,401 10,490,989 6,345,394 Interest on NOW accounts 799,362 762,544 795,577 Interest on borrowed funds 5,146,385 6,166,894 4,116,348 Total interest expense 52,470,742 50,421,804 39,201,768 Net interest income 53,780,825 48,612,621 45,722,614 Provision for credit losses 9,971,256 7,332,612 3,717,184 Net interest income after provision for credit losses 43,809,569 41,280,009 42,005,430 Gains (losses) on sale of securities 1,207,767 97,165 355,383 Gains (losses) on sale of loans (34,454) (41,280) (951,656) Non-interest income: Service charges on deposit accounts 2,014,876 1,609,229 1,393,435 Credit card fees 3,088,327 2,559,668 1,688,471 Mortgage servicing fees 1,020,493 927,420 850,985 Fees and commissions- brokerage services 669,789 335,655 328,914 Trust fees 595,365 550,990 475,755 Other charges, commissions, and fees 751,391 689,596 763,227 Total non-interest income 8,140,241 6,672,558 5,500,787 Non-interest expense: Salaries, pensions, and other employee benefits 12,618,628 12,023,425 12,158,078 Building occupancy 2,377,978 2,302,189 2,180,724 Computer service fees 875,975 858,628 724,397 Services 2,450,229 2,073,155 1,809,870 FDIC insurance 246,955 1,145,297 2,017,209 Goodwill 295,000 295,000 172,084 Interchange fees Interchange fee is a term used in the payment card industry to describe a fee that bank card networks such as Visa and MasterCard require merchants to pay card-issuing banks when merchants accept their credit and debit cards for purchases. 2,165,218 1,896,288 1,318,173 Other real estate 387,578 1,097,340 313,990 Other expenses 6,627,516 5,547,784 5,057,070 Total non-interest expense 28,045,077 27,239,106 25,751,595 Income before income taxes 25,078,046 20,769,346 21,158,349 Provision for income taxes 9,874,419 8,175,255 8,287,008 NET INCOME $15,203,627 $12,594,091 $12,871,341 Earnings per share $ 2.57 $ 1.98 $ 1.95 CONTACT: BSB Bancorp, Inc. Alex S. DePersis, 607/779-2584 URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.bsbbank.com |
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