Benjamin Franklin Bancorp Reports Results for Third 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 (the "Bank"), today reported net income of $1.3 million, or $.16 per share, for the quarter ended September September: see month. 30, 2005. For the nine months ended September 30, 2005, the Company reported a loss of $882,000. The loss was the result of two non-recurring charges recorded in the second quarter of 2005: a) a $4.0 million contribution made to the Benjamin Franklin Bank Charitable Foundation (loss of $2.6 million on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. ), and b) the recognition of a net loss of $1.0 million on the sale/write-down of bank-owned land (loss of $1.0 million after tax). Excluding these non-recurring charges, the Company earned $2.8 million in the first nine months of 2005. Because shares had not been issued and outstanding during the entire period, earnings per share have not been reported for the nine months ended September 30, 2005. The Company's Employee Stock Ownership Plan ("ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ") made additional open market purchases in the third quarter amounting to 132,700 shares, bringing the total purchased through September 30, 2005 to 432,700. Total shares outstanding on that date were 8,066,825, resulting in a book value per share and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share of $13.35 and $8.61, respectively. The remaining 45,494 shares to be acquired by the ESOP were purchased in the first two weeks of October October: see month. , 2005. 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, noted: "We are encouraged by the improvement in our core earnings in the third quarter, which have risen to $1.3 million from $1.1 million in the second quarter, excluding non-recurring charges. We will almost certainly face a more challenging environment in the next year due to increases in market interest rates and a corresponding expected slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in commercial and residential real estate lending activity. We will continue to work toward implementing a growth strategy focused on building profitable lending and deposit relationships." Since December December: see month. 31, 2004, the Company's balance sheet has increased by $338.8 million, or 65.5%, to $856.2 million. $260.4 million of that increase was the result of the acquisition of Chart Bank on April 4, 2005, and consisted of the following major asset and liability components: loans, $184.0 million; securities, $39.9 million; cash deployed by CSSI CSSI Critical Skills Shortage Initiative CSSI California Strategic Sourcing Initiative CSSI Computer Support Services, Inc. (Irving, TX, USA) CSSI Computer Security Subsystem Interpretation CSSI Computer Software & Services Industry , the Bank's ATM servicing subsidiary, $28.9 million; deposits, $216.9 million; and borrowed funds, $25.5 million. The gross loan portfolio increased by $222.2 million, or 57.5%, over the first nine months of 2005. While the Chart Bank acquisition accounted for $184.0 million of that growth, another $38.2 million of net loan growth was generated internally, primarily in commercial real estate and construction loans. With the addition of the Chart Bank loan portfolio and internal growth, commercial loans have grown to 46.3% of total loans, compared to 30.8% at December 31, 2004. The Company remains committed to the further expansion of its commercial lending business over the next several years. In the nine months ended September 30, 2005, the Company's deposits have increased by $208.0 million, or 52.5%, to $604.5 million. The Chart Bank acquisition added $216.9 million, resulting in a change in the mix of deposits, with certificate accounts accounting for 40.5% of total deposits at September 30, 2005, compared with 34.6% at year end 2004. In the third quarter of 2005, the Bank experienced net deposit outflows aggregating $24.4 million, spread across most deposit product types. This outflow was in part caused by seasonal factors and in part by net withdrawals from former Chart Bank customer accounts. As a result, the Bank increased its borrowings by $20.0 million during the third quarter of 2005. Asset quality remains strong at the close of the third quarter, with non-performing assets as a percentage of total assets at .05% as of September 30, 2005. The allowance for loan losses stood at .93% of total loans at quarter end, representing 1,207.1% of 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. on that date. The Company's net interest margin ("NIM nim 1 tr. & intr.v. nimmed, nim·ming, nims Archaic To steal; pilfer. [Middle English nimen, to take, from Old English niman; see ") was 3.34% for the three months ended September 30, 2005, an increase of 28 basis points compared to the third quarter of 2004. Over the past twelve months, the NIM has benefited from the increase in higher-yielding commercial loans, as well as from the wider NIM provided by Chart Bank's balance sheet, which was more heavily invested in commercial assets than that of Benjamin Franklin. This widening of the NIM coupled with balance sheet growth resulted in a $2.7 million increase in net interest income, which rose to $6.3 million in the three months ended September 30, 2005 from $3.7 million in the comparable period in 2004. Non-interest income for the quarter totaled $1.3 million, an increase of $870,000 compared to the third quarter of 2004. This increase reflects the addition of deposit and loan fees associated with former Chart Bank accounts, as well as fee revenue generated by CSSI, the Bank's ATM servicing subsidiary. For the quarter, those CSSI fees amounted to $493,000. The Company's efficiency ratio for the quarter (excluding amortization of the core deposit intangible and gains/losses on sales of bank assets) improved to 64.5% from 75.7% in the year earlier period. Although 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. have increased in order to support the Company's lending growth, the leverage to the Company's existing expense structure provided by the Chart Bank acquisition more than offset these expense increases. 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, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
September December
30, 31,
2005 2004
---------- --------
ASSETS (Unaudited)
Cash and due from banks $ 20,641 $ 8,691
Cash supplied by CSSI to ATM customers 27,508 -
Short-term investments 13,546 5,513
---------- --------
Total cash and cash equivalents 61,695 14,204
Securities available for sale, at fair value 117,105 86,070
Securities held to maturity, at amortized cost 133 217
Restricted equity securities, at cost 10,015 6,975
---------- --------
Total securities 127,253 93,262
Loans:
Residential real estate mortgage 290,195 241,090
Commercial real estate mortgage 215,776 85,911
Construction mortgage 47,297 28,651
Commercial business 18,931 4,375
Consumer 35,226 25,370
Net deferred loan costs 1,292 1,148
---------- --------
Total loans 608,717 386,545
Allowance for loan losses (5,631) (3,172)
---------- --------
Loans, net 603,086 383,373
Premises and equipment, net 9,217 11,147
Accrued interest receivable 2,988 1,490
Goodwill 33,762 4,248
Core deposit intangible 4,489 -
Bank-owned life insurance 7,386 7,182
Other assets 6,299 2,487
---------- --------
$ 856,175 $517,393
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Regular savings accounts $ 103,455 $ 95,875
Money market accounts 99,243 53,167
Now accounts 29,508 22,460
Demand deposit accounts 127,425 87,776
Time deposit accounts 244,855 137,221
---------- --------
Total deposits 604,486 396,499
Short-term borrowings - 4,250
Long-term debt 137,926 81,000
Other liabilities 6,031 4,316
---------- --------
Total liabilities 748,443 486,065
---------- --------
Common stock, no par value; authorized 75,000,000
shares; issued 8,488,898 shares at September 30,
2005 - -
Additional paid-in capital 82,845 -
Retained earnings 31,860 32,997
Unallocated common shares held by ESOP (4,797) -
Accumulated other comprehensive loss (2,176) (1,669)
---------- --------
Total stockholders' equity 107,732 31,328
---------- --------
$ 856,175 $517,393
========== ========
BENJAMIN FRANKLIN BANCORP, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
---------------- -----------------
2005 2004 2005 2004
------- ------ ------- -------
(Unaudited) (Unaudited)
Interest and dividend income $10,029 $5,419 $24,928 $15,223
Interest expense 3,709 1,757 8,921 5,025
------- ------ ------- -------
Net interest income 6,320 3,662 16,007 10,198
Provision for loan losses 152 150 648 470
------- ------ ------- -------
Net interest income, after
provision for loan losses 6,168 3,512 15,359 9,728
------- ------ ------- -------
Other income (charges):
Deposit service fees 356 198 857 682
Loan servicing fees 126 11 331 188
ATM servicing fees 493 - 1,002 -
Gain on sale of loans, net 52 8 72 106
Gain on sales of securities,
net - - - 8
Loss on sale/write-down of
bank-owned land, net - - (1,020) -
Income from bank-owned life
insurance 83 48 204 145
Miscellaneous 204 179 605 538
------- ------ ------- -------
Total other income 1,314 444 2,051 1,667
------- ------ ------- -------
Operating expenses:
Salaries and employee benefits 2,529 1,962 7,010 5,679
Occupancy and equipment 654 289 1,753 1,035
Data processing 468 345 1,339 1,047
Professional fees 257 74 624 191
Contribution to Benjamin
Franklin Bank Charitable
Foundation - - 4,000 -
Amortization of core deposit
intangible 445 45 1,044 136
Other general and
administrative 986 430 2,174 1,369
------- ------ ------- -------
Total operating
expenses 5,339 3,145 17,944 9,457
------- ------ ------- -------
Income (loss) before income taxes 2,143 811 (534) 1,938
Provision for income taxes 814 277 348 626
------- ------ ------- -------
Net income (loss) $ 1,329 $ 534 $ (882) $ 1,312
======= ====== ======= =======
Earnings per share:
Basic $ 0.16 n/a n/a n/a
Diluted $ 0.16 n/a n/a n/a
BENJAMIN FRANKLIN BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Dollars in thousands except share and per share data)
At or For the
Three Months
Ended Sept 30,
--------------------
2005 2004
---------- -------
(Unaudited)
Financial Highlights:
Net interest income $ 6,320 $ 3,662
Net income $ 1,329 $ 534
Shares outstanding - end of period 8,066,825 n/a
Weighted average shares outstanding:
Basic 8,148,113 n/a
Diluted 8,148,113 n/a
Earnings per share:
Basic $ 0.16 n/a
Diluted $ 0.16 n/a
Shareholders' equity - end of period $ 107,732 $30,800
Book value per share - end of period $ 13.35 n/a
Tangible book value per share - end of period $ 8.61 n/a
Ratios and Other Information:
Return on average assets 0.61% 0.42%
Return on average equity 4.84% 7.05%
Net interest rate spread (1) 2.92% 2.69%
Net interest margin (2) 3.34% 3.06%
Efficiency ratio (3) 64.54% 75.65%
Non-interest expense to average total assets 2.46% 2.47%
Average interest-earning assets to average
interest-bearing liabilities 121.45% 124.84%
At period end:
Non-performing assets to total assets 0.05% 0.07%
Non-performing loans to total loans 0.08% 0.10%
Allowance for loan losses to non-performing loans 1207.13% 844.05%
Allowance for loan losses to total loans 0.93% 0.80%
Equity to total assets 12.58% 5.90%
Tier 1 leverage capital ratio 9.79% 7.42%
Total risk-based capital ratio 15.48% 12.65%
Number of full service offices 9 6
-------------------------------------------------
(1) The net 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 of 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, INC AND SUBSIDIARIES
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands)
Three Months Ended
September 30,
-----------------------------------
2005
-----------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
------------ -------- -------------
Interest-earning assets:
Loans $607,136 $8,716 5.70%
Investment securities 128,734 1,213 3.74%
Short-term investments 15,139 100 2.62%
------------ --------
Total interest-earning assets 751,009 10,029 5.30%
Non-interest-earning assets 111,195
------------
Total assets $862,204
============
Interest-bearing liabilities:
Savings deposits $106,123 133 0.50%
Money market 106,015 432 1.62%
NOW accounts 36,438 12 0.13%
Certificates of deposits 247,960 1,798 2.88%
------------ --------
Total deposits 496,536 2,375 1.90%
Borrowings 121,854 1,334 4.34%
------------ --------
Total interest-bearing
liabilities 618,390 3,709 2.38%
Non-interest bearing liabilities 134,899
------------
Total liabilities 753,289
Equity 108,915
------------
Total liabilities and equity $862,204
============
Net interest income $6,320
========
Net interest rate spread (2) 2.92%
Net interest-earning assets (3) $132,619
============
Net interest margin (4) 3.34%
Average interest-earning assets
to interest-bearing liabilities 121.45%
Three Months Ended
September 30,
-----------------------------------
2004
-----------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
------------ -------- -------------
Interest-earning assets:
Loans $365,231 $4,578 4.99%
Investment securities 103,982 820 3.14%
Short-term investments 7,185 21 1.16%
------------ --------
Total interest-earning assets 476,398 5,419 4.53%
Non-interest-earning assets 30,449
------------
Total assets $506,847
============
Interest-bearing liabilities:
Savings deposits $100,300 125 0.50%
Money market 52,500 124 0.94%
NOW accounts 23,736 9 0.15%
Certificates of deposits 135,643 827 2.43%
------------ --------
Total deposits 312,179 1,085 1.38%
Borrowings 69,427 672 3.85%
------------ --------
Total interest-bearing
liabilities 381,606 1,757 1.83%
Non-interest bearing liabilities 95,111
------------
Total liabilities 476,717
Equity 30,130
------------
Total liabilities and equity $506,847
============
Net interest income $3,662
========
Net interest rate spread (2) 2.69%
Net interest-earning assets (3) $94,792
============
Net interest margin (4) 3.06%
Average interest-earning assets
to interest-bearing liabilities 124.84%
(1) Yields and rates for the three months ended September 30, 2005
and 2004 are annualized.
(2) Net interest rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average cost of 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 as a
percent of average interest-earning assets.
BENJAMIN FRANKLIN BANCORP, INC AND SUBSIDIARIES
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands)
Nine Months Ended
September 30,
-----------------------------------
2005
-----------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
------------ -------- -------------
Interest-earning assets:
Loans $528,411 $21,656 5.48%
Investment securities 116,350 2,928 3.37%
Short-term investments 19,230 344 2.39%
------------ --------
Total interest-earning assets 663,991 24,928 5.02%
Non-interest-earning assets 84,433
------------
Total assets $748,424
============
Interest-bearing liabilities:
Savings deposits $103,492 391 0.50%
Money market 93,744 1,099 1.57%
NOW accounts 31,584 52 0.22%
Certificates of deposits 211,602 4,256 2.69%
------------ --------
Total deposits 440,422 5,798 1.76%
Borrowings 100,931 3,123 4.14%
------------ --------
Total interest-bearing
liabilities 541,353 8,921 2.20%
Non-interest bearing liabilities 125,076
------------
Total liabilities 666,429
Equity 81,995
------------
Total liabilities and equity $748,424
============
Net interest income $16,007
========
Net interest rate spread (2) 2.82%
Net interest-earning assets (3) $122,638
============
Net interest margin (4) 3.22%
Average interest-earning assets to
interest-bearing liabilities 122.65%
Nine Months Ended September 30,
-----------------------------------
2004
-----------------------------------
Average
Outstanding
Balance Interest Yield/Rate(1)
------------ -------- -------------
Interest-earning assets:
Loans $327,700 $12,567 5.12%
Investment securities 109,897 2,549 3.10%
Short-term investments 15,382 107 0.93%
------------ --------
Total interest-earning assets 452,979 15,223 4.49%
Non-interest-earning assets 31,055
------------
Total assets $484,034
============
Interest-bearing liabilities:
Savings deposits $99,172 369 0.50%
Money market 51,779 331 0.85%
NOW accounts 23,955 27 0.15%
Certificates of deposits 133,492 2,494 2.50%
------------ --------
Total deposits 308,398 3,221 1.40%
Borrowings 53,421 1,804 4.51%
------------ --------
Total interest-bearing
liabilities 361,819 5,025 1.86%
Non-interest bearing liabilities 92,257
------------
Total liabilities 454,076
Equity 29,958
------------
Total liabilities and equity $484,034
============
Net interest income $10,198
========
Net interest rate spread (2) 2.63%
Net interest-earning assets (3) $91,160
============
Net interest margin (4) 3.01%
Average interest-earning assets
to interest-bearing liabilities 125.20%
(1) Yields and rates for the nine months ended September 30, 2005
and 2004 are annualized.
(2) Net interest rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average cost of 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 as a
percent of average interest-earning assets.
Reconciliation of Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude significant gains or losses that are expected to be non-recurring and to exclude the effects of amortization of 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. (in the case of the efficiency ratio). Because these items and their impact on the Company's performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Three Three Nine Nine
months months months months
ended ended ended ended
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
---------- ---------- ---------- ----------
Net Income (GAAP) $1,329 $534 $(882) $1,312
Add back contribution to
the Benjamin Franklin
Bank Charitable
Foundation (after tax) - - 2,640 -
Add back net loss on sale
of bank assets
(after tax) - - 1,020 -
---------- ---------- ---------- ----------
$1,329 $534 $2,778 $1,312
========== ========== ========== ==========
Efficiency Ratio (GAAP) 69.93 % 76.6 % 99.2 % 79.7 %
Effects of amortization of
intangible assets (5.9)% (1.1)% (5.5)% (1.2)%
Effects of contribution to
the Benjamin Franklin
Bank Charitable
Foundation - - (21.1)% -
Effects of net gain (loss)
on sale of bank assets .5 % .2 % (4.9)% .8 %
---------- ---------- ---------- ----------
64.5 % 75.7 % 67.7 % 79.3 %
========== ========== ========== ==========
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