Benjamin Franklin Bancorp Reports Earnings for First Quarter of 2005.FRANKLIN Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. , Mass. -- Benjamin Franklin Bancorp, Inc. (the "Company" or "Benjamin Franklin") (Nasdaq: BFBC BFBC Bracknell Forest Borough Council BFBC Battlefield Bad Company (video game) BFBC Bicycle-Friendly Berkeley Coalition BFBC Best Florida Beer Championship BFBC Big Freakin' Brown Cloud ), the bank holding company for Benjamin Franklin Bank, today reported net income of $331,000 for the quarter ended March 31, 2005. The quarter concluded prior to the completion of the Company's stock offering and acquisition of Chart Bank, and does not reflect the effects of those transactions. In the quarter ended March 31, 2005, total assets grew to $582.8 million, an increase of $111.3 million or 23.6% when compared to March 31, 2004. That growth was led by growth in the loan portfolio, which has increased by $91.8 million over the past year. Increases were achieved in nearly all loan categories including residential mortgage loans (up $61.6 million) and commercial real estate loans (up $23.7 million). The net balance of investment securities and 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. investments grew by $15.3 million year over year, consistent with the overall growth in the Company's balance sheet. Funding the growth in loans and investments were increases in deposits, which rose by 5.9% year over year, and increases in borrowed funds and 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. , which have risen by 180.0% since March 31, 2004. The decline in earnings to $331,000 from $454,000 in the year-earlier quarter was primarily the result of lower levels of fee income and higher 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. , offset in part by an increase in net interest income. Fee income declined by $201,000 to $493,000 for the quarter, the result of lower gains and fees earned on sales of fixed rate residential mortgage loans, and reduced service fee income earned on deposit accounts. Operating expenses rose by $337,000 to $3.5 million for the quarter. Nearly half of the increase was the result of increases in staffing levels over the past year, as the Company moved to convert to a stock institution, accomplish the acquisition of Chart Bank and make the staffing investments necessary to continue the growth of its loan portfolio. Net interest income rose by $375,000 to $3.6 million for the first quarter of 2005 when compared to the year-earlier quarter. The increase in net interest income that resulted from the growth in interest 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 and interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities was offset in part by a narrowing of the Company's net interest margin, which declined to 2.97% in the first quarter of 2005 from 3.06% in the year-earlier quarter. The compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. in the margin was primarily the result of the rise in short and intermediate term market interest rates over the past year, coupled with the liability-sensitivity of the Company's balance sheet for most of that period. Benjamin Franklin completed its mutual-to-stock conversion and related stock offering with the issuance of 5,977,419 shares (including 400,000 shares issued to the Benjamin Franklin Bank Charitable Foundation) on April 4, 2005. An additional 2,511,479 shares were issued in connection with the acquisition of Chart Bank, which was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. immediately following the stock conversion. The cash portion of the consideration paid to Chart Bank shareholders totaled $21,392,960 (net of amounts received by Chart Bank upon the exercise of stock options prior to the merger). The Company's stock began trading on April 5, 2005, on the Nasdaq National Market, under the symbol "BFBC". Total shares outstanding at present are 8,488,898. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs R. Venables Venables is a village and commune of the Eure département in Haute-Normandie, France. The village dates back some 7,000 years. It is situated at the northern most point of the Madrie Plateau and is located at an altitude of 124 meters above sea level. , President and Chief Executive Officer, commented that "We have built a dedicated and energetic team here at Benjamin Franklin, one poised to tackle the new opportunities and challenges that will come with being public and acquiring the operations of Chart Bank. We appreciate the support expressed by our depositors in the Company's public offering, and we will work very hard to enhance shareholder value for them as we move forward." Certain statements herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " and actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes that adversely affect the businesses in which Benjamin Franklin Bancorp is engaged and changes in the securities market. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.
BENJAMIN FRANKLIN BANCORP, MHC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
ASSETS
March 31, Dec. 31, March 31,
2005 2004 2004
-------- -------- --------
(Unaudited) (Unaudited)
Cash and due from banks $ 9,394 $ 8,691 $ 7,884
Short-term investments 59,618 5,513 24,590
-------- -------- --------
Total cash and cash equivalents 69,012 14,204 32,474
-------- -------- --------
Securities available for sale, at
fair value 84,679 86,070 104,980
Securities held to maturity, at
amortized cost 187 217 353
Restricted equity securities, at cost 6,975 6,975 6,222
-------- -------- --------
Total securities 91,841 93,262 111,555
Loans:
Residential real estate mortgage
loans 240,511 241,090 178,896
Commercial real estate 98,649 85,911 74,912
Construction 27,109 28,651 25,402
Commercial business 4,649 4,375 5,277
Consumer 25,632 25,370 20,643
Net deferred loan costs 1,169 1,148 813
-------- -------- --------
Total Loans 397,719 386,545 305,943
Allowance for loan losses (3,351) (3,172) (2,704)
-------- -------- --------
Loans, net 394,368 383,373 303,239
Premises and equipment, net 11,194 11,147 11,303
Accrued interest receivable 1,592 1,490 1,334
Goodwill 4,248 4,248 4,248
Bank-owned life insurance 7,244 7,182 5,591
Other assets 3,292 2,487 1,793
-------- -------- --------
$582,791 $517,393 $471,537
======== ======== ========
LIABILITIES AND RETAINED EARNINGS
Deposits:
Regular savings $ 96,438 $ 95,875 $ 98,215
Money market accounts 56,835 53,167 47,288
Now accounts 23,240 22,460 27,777
Demand deposit accounts 90,577 87,776 84,414
Time deposit accounts 147,643 137,221 134,088
-------- -------- --------
Total Deposits 414,733 396,499 391,782
Short-term borrowings - 4,250 -
Long-term debt 81,000 81,000 45,000
Other liabilities 56,258 4,316 4,018
-------- -------- --------
Total liabilities 551,991 486,065 440,800
-------- -------- --------
Retained earnings 33,327 32,997 31,762
Accumulated other comprehensive loss (2,527) (1,669) (1,025)
-------- -------- --------
Total retained
earnings 30,800 31,328 30,737
-------- -------- --------
$582,791 $517,393 $471,537
======== ======== ========
BENJAMIN FRANKLIN BANCORP, MHC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands)
Quarter Ended March 31,
--------------------------
2005 2004
------------ ------------
(Unaudited)
Interest and dividend income $5,714 $4,861
Interest expense 2,085 1,607
------------ ------------
Net interest income 3,629 3,254
Provision for loan losses 168 170
------------ ------------
Net interest income, after
provision for loan losses 3,461 3,084
------------ ------------
Other income (charges):
Deposit service fees 207 254
Loan servicing fees 72 145
Gain on sale of loans, net 15 66
Gain (loss) on sales of
securities, net 0 9
Income from bank-owned
life insurance 59 48
Miscellaneous 140 172
------------ ------------
Total other income 493 694
------------ ------------
Operating expenses:
Salaries and employee
benefits 2,014 1,851
Occupancy and equipment 440 379
Data processing 337 336
Professional fees 129 65
Other general and
administrative 544 496
------------ ------------
Total operating
expenses 3,464 3,127
------------ ------------
Income before income taxes 490 650
Provision for income taxes 159 196
------------ ------------
Net income $ 331 $ 454
============ ============
BENJAMIN FRANKLIN BANCORP, MHC. AND SUBSIDIARIES
Financial Ratios
For the Quarters
Ended March 31,
------------------
2005 2004
--------- --------
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on assets (ratio of net income to average
total assets) 0.25% 0.39%
Return on equity (ratio of net income to average
equity) 4.25% 6.08%
Average interest rate spread (1) 2.55% 2.70%
Net interest margin (2) 2.97% 3.06%
Efficiency ratio (3) 83.24% 79.76%
Non-interest expense to average total assets 2.64% 2.72%
Average interest-earning assets to average
interest-bearing liabilities 124.68% 124.01%
Asset Quality Ratios:
Non-performing assets to total assets 0.06% 0.09%
Non-performing loans to total loans 0.09% 0.14%
Allowance for loan losses to non-performing loans 972.08% 627.47%
Allowance for loan losses to total loans 0.85% 0.89%
Capital Ratios:
Equity to total assets at end of period 5.28% 6.52%
Average equity to average assets 5.95% 6.49%
Risk-based capital ratio (bank only) 11.51% 13.15%
Other Data:
Number of full service offices 6 6
-------------------------------------------------
(1) The average interest rate spread represents the difference between
the weighted-average yield on interest-earning assets and the
weighted-average cost of interest-bearing liabilities for the
period.
(2) The net interest margin represents net interest income as a
percent on average interest-earning assets for the period.
(3) The efficiency ratio represents non-interest expense minus
expenses related to the amortization of intangible assets divided
by the sum of net interest income (before the loan loss provision)
plus non-interest income (excluding net gains (losses) on sale of
bank assets).
BENJAMIN FRANKLIN BANCORP, MHC AND SUBSIDIARIES
Analysis of Net Interest Income
---------------------------------------
Three Months Ended March 31, 2005
---------------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
----------- -------- -------------
(Dollars in thousands)
Interest-earning assets:
Loans $ 388,346 $ 4,892 5.11%
Investment securities 91,636 729 3.23%
Short-term investments 16,115 94 2.36%
----------- --------
Total interest-earning assets 496,097 5,714 4.67%
Non-interest-earning assets 35,717
-----------
Total assets $ 531,814
===========
Interest-bearing liabilities:
Savings deposits $ 95,036 116 0.50%
Money market $ 57,267 210 1.49%
NOW accounts 22,081 9 0.16%
Certificates of deposits 142,409 897 2.55%
----------- --------
Total deposits 316,793 1,232 1.58%
Short-term borrowings 112 1 2.59%
Long-term debt 81,000 853 4.27%
----------- --------
Total interest-bearing
liabilities 397,905 2,085 2.13%
Non-interest bearing
liabilities 102,270
-----------
Total liabilities 500,175
Equity 31,639
-----------
Total liabilities and equity $ 531,814
===========
Net interest income $ 3,629
========
Net interest rate spread (2) 2.55%
Net interest-earning assets (3) $ 98,192
===========
Net interest margin (4) 2.97%
Average interest-earning assets
to interest-bearing liabilities 124.68%
BENJAMIN FRANKLIN BANCORP, MHC AND SUBSIDIARIES
Analysis of Net Interest Income
-----------------------------------------
Three Months Ended March 31, 2004
-----------------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
------------ ---------- ---------------
(Dollars in thousands)
Interest-earning assets:
Loans $293,997 $3,916 5.36%
Investment securities 110,710 895 3.25%
Short-term investments 22,486 50 0.89%
------------ ----------
Total interest-earning
assets 427,192 4,861 4.58%
Non-interest-earning assets 35,259
------------
Total assets $462,451
============
Interest-bearing liabilities:
Savings deposits $96,698 119 0.50%
Money market $51,227 103 0.81%
NOW accounts 23,327 9 0.15%
Certificates of deposits 128,230 811 2.54%
------------ ----------
Total deposits 299,481 1,042 1.40%
Short-term borrowings 0 0 0.00%
Long-term debt 45,000 565 5.05%
------------ ----------
Total interest-bearing
liabilities 344,481 1,607 1.88%
Non-interest bearing
liabilities 87,956
------------
Total liabilities 432,438
Equity 30,014
------------
Total liabilities and
equity $462,451
============
Net interest income $3,254
==========
Net interest rate spread (2) 2.70%
Net interest-earning assets(3) $82,711
============
Net interest margin (4) 3.06%
Average interest-earning
assets to interest-bearing liabilities 124.01%
(1) Yields and rates for the three months ended March 31, 2005 and
2004 are annualized.
(2) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities
(3) Net interest-earning assets represents total interest-earning
assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by
average total interest-earning assets.
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