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CENTERBANK CHAIRMAN ADDRESSES BOSTON INVESTMENT AUDIENCE

 CENTERBANK CHAIRMAN ADDRESSES BOSTON INVESTMENT AUDIENCE
 BOSTON, Jan. 7 /PRNewswire/ -- At a meeting of investors and analysts, Chairman and Chief Executive Officer Robert J. Narkis presented the first comprehensive look of Centerbank (NASDAQ: CTBX) following its acquisitions of Central Bank on Oct. 18, 1991 and Connecticut Savings Bank on Nov. 14, 1991 from the FDIC.
 Total assets for Centerbank stood at $3 billion at Nov. 30, 1991, a 71 percent increase from $1.7 billion as of Sept. 30, 1991. Narkis stated that while Centerbank's capital of $149 million was not affected by these transactions, the growth in size lowered the equity to assets ratio to 5 percent. "However, virtually every other one of the bank's financial ratios were strengthened by the federally assisted takeover of these two banks. Further, we expect to see in time the capital ratio rise to approximately 6 percent given the added earnings horsepower anticipated from these transactions."
 "With the addition of $1.4 billion in new deposits, Centerbank reduced its dependence on borrowings and other liabilities." Deposits as a percentage of total liabilities increased from 68 percent at the end of the third quarter to 88 percent on a proforma basis as of Nov. 30, 1991.
 The net interest margin increased from 3.15 percent to 3.16 percent. This is expected to improve further as the deposit rates from the accounts of all three financial institutions are standardized."
 These transactions improved also two other important ratios. The liquidity ratio rose from 15.3 percent to 25.6 percent and the loan to deposit ratio dropped from 127 percent to 90 percent.
 "An attractive feature of these acquisitions was the opportunity to increase Centerbank's allowance for loan losses to $82 million. This improved the ratio of loan loss reserves to non-performing loans and leases from 52 percent at the end of the third quarter, to 84 percent on a proforma basis. Allowances for loan and REO losses as a percent of total non-performing assets increased from 31 percent to 49 percent. The acquisition of performing loans caused the ratio of non-performing loans to total loans to decrease from 6.5 percent to 4.1 percent, while the ratio of non-performing assets to total assets decreased from 10.2 percent to 5.9 percent.
 "While the integration of these three financial institutions is still in process, we are already benefitting from economies of scale. Our operating efficiency ratio (operating expenses less extraordinary expenses as a percentage of net-interest income plus non-interest income), decreased from 94 percent to 72 percent, and is expected to improve further as cost-saving measures continue to be identified and implemented."
 "These transactions expanded Centerbank's branch network by 35 offices to 53. However, considerations of market coverage, and customer needs will reduce the final branch network to 45-47 offices."
 "As we go forward our challenge is to consolidate these three financial institutions, quickly and effectively and harness fully the earnings horsepower inherent in the resulting organization. In this way, shareholder value should be considerably enhanced."
 Insured by the FDIC, Centerbank was established in 1850 and is headquartered in Waterbury, Conn. Its subsidiaries include Centerbank Mortgage Company with offices along the Atlantic Coast; Center Capital Corp., a nationwide equipment leasing firm; and Affiliated Business Credit Corporation, a commercial finance company based in Wethersfield, Conn.
 CENTERBANK AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited) (in thousands)
 CSB &-(a) ProForma
 Sept. 30, Central Bank Oct/Nov 1991 Nov. 30,
 1991 Acquisitions Net Activity 1991
 ASSETS
 Cash and due
 from banks $28,568 $25,348 $(6,856) 47,060
 Advances from FDIC --- 661,821 (661,821) ---
 Federal funds sold
 and repurchase
 agreements --- 45,650 227,050 272,700
 Investment
 securities:
 U.S. government
 and agencies 128,306 8,045 (10,956) 125,395
 Other debt
 securities 400 59,461 (2,450) 57,411
 Equity securities,
 at the lower of
 cost or market 20,532 19,932 (3,851) 36,613
 Total investment
 securities 149,238 87,438 (17,257) 219,419
 Loans and leases:
 Residential first
 mortgage loans:
 Held for
 investment 621,759 444,107 1,925 1,067,791
 Held for sale,
 at the lower
 of cost or
 market 151,402 --- 30,627 182,029
 Consumer loans 289,678 171,452 (4,361) 456,769
 Commercial first
 mortgage loans 230,514 185,594 (25,830) 390,278
 Other commercial
 loans 39,155 79,938 1,995 121,088
 Leases 117,180 --- 5,687 122,867
 Less allowance for
 possible loan
 losses (49,801) (32,161) (451) (82,413)
 Net loans and
 leases 1,399,887 848,930 9,592 2,258,409
 Real estate
 owned, net 78,933 --- (1,359) 77,574
 Real estate held
 for investment 13,358 --- (157) 13,201
 Premises and
 equipment 16,904 6,200 (1,868) 21,236
 Mortgage servicing
 rights 30,987 1,423 (758) 31,652
 Other assets 49,416 58,200 (36,642) 70,974
 Total assets $1,767,291 $1,735,010 $(490,076) $3,012,225
 LIABILITIES AND
 SHAREHOLDERS' EQUITY
 Liabilities:
 Deposits 1,103,331 1,476,294 (72,709) 2,506,916
 Borrowings 484,530 205,979 (399,614) 290,895
 Escrow on first
 mortgage loans 7,700 5,573 3,121 16,394
 Other liabilities 22,496 47,164 (20,963) 48,697
 Total liabilities 1,618,057 1,735,010 (490,165) 2,862,902
 Shareholders' Equity:
 Common stock 12,247 --- 5 12,252
 Paid-in capital 135,301 --- 10 135,311
 Retained earnings 1,686 --- 74 1,760
 Unrealized loss on
 marketable equity
 securities --- --- -- ---
 Total shareholders'
 equity 149,234 --- 89 149,323
 Total liabilities
 and shareholders
 equity $1,767,291 $1,735,010 $(490,076) $3,012,225
 ---
 NOTE (a)-Includes purchase accounting activity.
 -0- 1/7/92
 /CONTACT: Gary A. Fetzer of Centerbank, 203-575-5546 (day), or 203-426-7115 (home)/
 (CTBX) CO: Centerbank ST: Connecticut IN: FIN SU:


SH -- NE003 -- 7280 01/07/92 11:24 EST
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