CENTERBANK ACHIEVES RECORD OPERATING EARNINGS.WATERBURY Waterbury, industrial city (1990 pop. 108,961), New Haven co., W Conn., on the Naugatuck River; settled 1674, inc. as a city 1853. The city, once famous for its brass industry, is a financial and commercial center of W Connecticut. , Conn.--(BUSINESS WIRE)--April 25, 1995--Centerbank (NASDAQ/CTBX) today reported record net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $4.5 million or $.35 per share for the first quarter of 1995. This compares to a loss of $4.9 million or $.40 per share for the first quarter of 1994, resulting from a bulk sale of subperforming and nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. . Without the sale, earnings for the quarter ended March 31, 1994 would have been approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.7 million or $.14 per share. During the first quarter, the company reduced its level of nonperforming assets to $85.8 million, down 3% from $88.2 million at December December: see month. 31, 1994. The allowance for loan and lease losses at March 31, 1995 was $41.6 million, or 85.13% of nonaccruing loans and leases. Nonperforming assets represent 2.77% of total assets. Net interest margin for the three months ended March 31, 1995 was 3.66%, down from 4.01% a year earlier; however, net interest income for the period did increase by approximately $800 thousand. At March 31, 1995, total 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. stood at $186.0 million or 6.01% of total assets. This represents a $16.0 million increase from the $170.0 million reported at March 31, 1994. Total assets amounted to $3.1 billion at the close of the first quarter, an 8% increase over the first quarter of 1994. Book value at March 31, 1995 was $14.67 per share. Centerbank also announced that the company's board of directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $.05 per share, payable May 15, 1995, to shareholders of record on May 5. Centerbank's dividend was restored in the first quarter of this year, with the payment of $.05 per share on February February: see month. 28, 1995. Centerbank Chairman and Chief Executive Officer Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Narkis expressed satisfaction with the company's first quarter results. "The important measures we have taken during the last five years to enhance the future earnings of the company are beginning to produce significant returns," Mr. Narkis stated. "We are now fully realizing the savings resulting from last year's sale of nonperforming assets. In addition, the reduction in work force that was implemented at Centerbank Mortgage Company has proven to be the correct response to the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the mortgage banking industry. 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 been reduced and productivity appears to have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. ." "While we are pleased with our progress to date, we are far from showing the results of a high performance company, which generally equates to a return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) greater than 1% and a return on equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) greater than 15%," Mr. Narkis added. "To reach high performance, we have commenced a comprehensive review of all work processes, concentrating on ways to flatten flatten - To remove structural information, especially to filter something with an implicit tree structure into a simple sequence of leaves; also tends to imply mapping to flat ASCII. "This code flattens an expression with parentheses into an equivalent canonical form." the organization, enhance revenues and materially reduce expenses, under the corporate banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. `High Performance 1997.' We have retained KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Peat Marwick Marwick is a surname, and may refer to:
This page or section lists people with the surname Marwick. and Wm. Schiemann & Associates to assist in our reengineering Using information technology to improve performance and cut costs. Its main premise, as popularized by the book "Reengineering the Corporation" by Michael Hammer and James Champy, is to examine the goals of an organization and to redesign work and business processes from the ground up programs in the bank and mortgage company respectively." Mr. Narkis added, "Some of these initiatives will result in the elimination of jobs. A specific number and timing have not yet been determined. When the analysis is complete, we plan to make the information available." "Ultimately, we believe it will be a win/win situation for our constituencies. Our employees will have a healthier company in which to work, our shareholders should earn a better return on their investment, our communities will continue to have a Connecticut-based company committed to meeting their needs, and our customers will receive superior service," Mr. Narkis concluded. Established in 1850, Centerbank has 38 retail banking branches throughout central Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . Insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). , its subsidiaries include Centerbank Mortgage Company, Center Capital Corporation, and Affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: Business Credit Corporation. -0-
CENTERBANK and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except
per share amounts)
Three months ended
March 31,
1995 1994
Statement of Operations
Interest and dividend income $ 54,568 $ 45,207
Interest expense 28,827 20,266
Net interest income 25,741 24,941
Provision for loan and
lease losses 1,248 13,888
Noninterest income 6,863 5,965
Noninterest expense 25,022 30,453
Income (loss) before 6,334 (13,435)
income taxes
Income tax expense (benefit) 1,871 (8,500)
Net income (loss) $ 4,463 $ (4,935)
Net income (loss) per common share $ 0.35 $ (0.40)
Average Balance Sheet
Loans and leases, net $2,328,613 $2,240,851
Securities and other interest-
earning assets 488,017 249,966
Total average
interest-earning assets 2,816,630 2,490,817
Cash and due from banks 49,240 68,890
Other assets 208,152 258,622
Total average assets $3,074,022 $2,818,329
Deposits $2,117,742 $2,137,377
Escrow on first mortgage
loans 45,932 100,331
Short-term borrowings 371,704 140,561
Long-term borrowings 323,908 220,616
Other liabilities 30,700 47,610
Shareholders' equity 184,036 171,834
Total average liabilities
and shareholders'
equity $3,074,022 $2,818,329
Selected Ratios and Other Data Return (loss) on average assets 0.58 % (0.70) % Return (loss) on average shareholders' equity 9.70 (11.49) Dividend payout ratio 14.21 - Average shareholders' equity to average assets 5.99 6.10 Total shareholders' equity to total assets 6.01 5.93 Leverage ratio 5.59 5.36 Tier 1 capital to risk-weighted assets 8.57 7.71 Total capital to risk-weighted assets 9.83 8.97 Yield on interest-earning assets 7.75 7.26 Cost of interest-bearing liabilities 4.28 3.36 Net interest spread 3.47 3.9 Net interest margin 3.66 % 4.01 % Per common share at March 31: Book value $ 14.67 $ 13.53 Market value (close) $ 12.75 $ 12.63 -0- CENTERBANK and SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands)
Summary of Nonperforming Assets
(March 31, 1994 amounts
exclude nonperforming
assets held for bulk sale) (1)
March 31, December 31, March 31,
1995 1994 1994
Nonaccruing loans and leases:
Residential first mortgage loans:
1 - 4 family $ 17,399 $ 20,740 $ 16,550
Other 1,209 - -
Home equity and other
consumer loans 2,490 3,026 2,696
Commercial first mortgage loans:
Permanent 17,794 16,460 18,073
Construction - - 116
Other commercial loans 6873 7,044 7,465
Leases 3,112 3,222 3,774
Total nonaccruing loans
and leases, net 48,877 50,492 48,674
Real estate owned ("REO"):
Commercial 31,429 33,227 39,589
Residential 5,285 4,496 4,402
Total real estate owned 36,714 37,723 43,991
Total nonperforming assets $ 85,591 $ 88,215 $ 92,665
Net loan and lease charge-offs during the quarter $ 385 $ 6,110 $ 26,410 Allowance for loan and lease losses (2) 41,608 40,745 43,113 Allowance for losses on REO 6,738 6,118 4,410 Net loan and lease charge-offs to average loans and leases 0.02 % 0.28 % 1.17 % Allowance for loan and lease losses to average loans and leases 1.79 1.88 1.92 Allowance for loan and lease losses to nonaccruing loans and leases 85.13 80.70 88.58 Allowances for loan, lease and REO losses to nonperforming assets 56.48 53.12 51.28 Nonperforming assets to related asset categories 3.49 3.71 4.07 Nonperforming assets to total assets 2.77 % 2.88 % 3.23 %
Summary of Impaired Loans
As a result of the adoption of Statement of Financial Accounting
Standards Nos. 114 and 118 ("SFAS Nos. 114 and 118"), Centerbank
reported $24,667 of impaired loans at March 31, 1995. The components
of the impaired loan balance were as follows: $17,794 of commercial
mortgage loans and $6,873 of other commercial loans.
Summary of Restructured Loans The total in the "Total nonaccruing loans and leases, net" category listed above includes $158 and $159 of loans that were restructured as of March 31, 1995 and December 31, 1994, respectively. There were no restructured loans at March 31, 1994.
(1) Excluded from nonperforming assets at March 31, 1994 were $59,992
and $21,779 of loans and REO, respectively. These amounts appeared
as separate line items on the consolidated balance sheets.
(2) The amount reported for March 31, 1995 includes $2,254 as an
allowance for credit losses on impaired loans totaling $16,400
in accordance with the adoption of SFAS Nos. 114 and 118.
-0-
CENTERBANK and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share
amounts)
March 31, December 31, March 31,
1995 1994 1994
Assets
Cash and due from banks $ 58,103 $ 57,993 $ 80,512
Securities:
Available for sale
(amortized cost: $71,727,
$81,796, and $97,644) 74,035 82,184 100,067
Held to maturity (fair
value: $374,793, $396,814
and $179,124) 382,016 412,309 182,610
Total securities 456,051 494,493 282,677
Assets held for bulk sale, at
fair value:
Loans - - 59,992
Real estate owned - - 21,779
Total assets held for bulk
sale - - 81,771
Loans and leases:
Residential first mortgage
loans available for sale 102,086 115,581 456,809
Residential first mortgage
loans held for investment 1,386,156 1,305,397 889,729
Consumer home equity
loans 263,509 267,980 279,126
Other consumer loans 85,214 76,458 57,003
Commercial first mortgage
loans:
Permanent 266,971 257,609 235,779
Construction 12,259 12,213 15,214
Other commercial loans 98,550 101,444 96,992
Leases 202,201 203,869 201,005
Allowance for loan and
lease losses (41,608) (40,745) (43,113)
Total loans and leases, net 2,375,338 2,299,806 2,188,544
Real estate owned, net 29,976 31,605 39,581
Premises and equipment, net 41,843 42,712 43,720
Accrued interest receivable 16,813 16,957 15,476
Purchased mortgage
servicing rights 53,394 54,335 56,635
Excess servicing fees
receivable 12,170 12,614 17,601
Deferred tax assets, net 16,909 18,900 21,390
Other assets 33,320 32,683 37,959
$3,093,917 $3,062,098 $2,865,866
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand $ 169,728 $ 177,136 $ 249,809
Savings 716,691 764,277 825,399
Money market 112,343 118,653 136,290
Time 1,136,197 1,077,920 1,022,781
Total deposits 2,134,959 2,137,986 2,234,279
Escrow on first mortgage
loans 49,157 57,389 61,738
Short-term borrowings 365,492 337,817 114,549
Long-term borrowings 322,371 319,399 242,408
Other liabilities 35,941 28,576 42,890
2,907,920 2,881,167 2,695,864
Shareholders' equity:
Preferred stock - voting; no
par value; 1,000,000
authorized shares; issued
and outstanding - none - - -
Preferred stock -
nonvoting; no par value;
10,000,000 authorized
shares; issued and
outstanding - none - - -
Common stock; par value
$1; 75,000,000 authorized
shares; 12,682,397,
12,649,354, and 12,566,646
shares issued and
outstanding at March 31,
1995, December 31, 1994
and March 31, 1994,
respectively 12,682 12,649 12,567
Paid-in capital 138,162 138,063 137,599
Retained earnings 33,825 29,996 18,452
Net unrealized gain on
securities available for sale,
net of tax effect 1,328 223 1,384
185,997 180,931 170,002
$3,093,917 $3,062,098 $2,865,866
-0-
CENTERBANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per
share amounts)
Three months ended
March 31,
1995 1994
Interest and Dividend Income
Interest and fees on loans and leases:
Residential first mortgage
loans $ 25,841 $ 23,587
Home equity and other
consumer loans 7,743 6,015
Commercial first mortgage
loans 6,493 6,514
Other commercial loans 2,459 1,827
Leases 4,344 3,973
Total interest and fees on
loans and leases 46,880 41,916
Interest on mortgage-
backed securities 7,188 2,334
Interest and dividends on
other earning assets 500 957
Total interest income 54,568 45,207
Interest Expense
Interest on deposits 17,978 15,458
Escrow on first mortgage
loans 169 192
Interest on short-term
borrowings 5,793 1,238
Interest on long-term
borrowings 4,887 3,378
Total interest expense 28,827 20,266
Net interest income 25,741 24,941
Provision for loan and lease losses 1,248 13,888 Net interest income after provision for loan and lease losses 24,493 11,053
Noninterest Income
Customer service fees 1,399 1,202
Mortgage servicing
income, net 2,990 692
Gain on sale of loans and
servicing rights, net 1,180 2,393
Gain on sale of securities,
net 445 740
Other income 849 938
Total noninterest income 6,863 5,965
Noninterest Expense
Salaries and employee
benefits 11,973 13,126
Occupancy and equipment 4,134 4,143
Professional and other
services 2,816 2,247
Net cost of real estate
owned 1,288 3,940
FDIC and state assessment 1,560 1,424
Advertising and public
relations 901 792
Other expense 2,350 4,781
Total noninterest expense 25,022 30,453
Income (loss) before
income taxes 6,334 (13,435)
Income tax expense (benefit) 1,871 (8,500)
Net income (loss) $ 4,463 $ (4,935)
Net income (loss) per common share $ 0.35 $ (0.40) Average common shares outstanding 12,673,072 12,408,790 CONTACT: Centerbank Patricia B. Sweet Senior Vice President Corporate Communication Division 203/578-6296 |
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