CFX CORPORATION ANNOUNCES RECORD EARNINGS FOR SECOND QUARTER.KEENE Keene, city (1990 pop. 22,430), seat of Cheshire co., SW N.H., on the Ashuelot River; settled 1736, inc. as a city 1873. It is a trade and manufacturing center in a farming and resort area. , N.H.--(BUSINESS WIRE)--July 12, 1995--CFX CORPORATION (AMEX AMEX See: American Stock Exchange : CFX CFX Command Field Exercise CFX Combined Field Exercise CFX Congregationum Fratrorum Xaverianorum (Latin: Congregation of Xaverian Brothers (Roman Catholic religious order) CFX China France Express CFX Compact Form Factor ) today announced record earnings of $1,988,000, or $.28 per share, for the quarter ended June June: see month. 30, 1995, compared to earnings of $1,521,000, or $.23 per share, for the corresponding period a year ago, a per share increase of $.05, or 22%. For the six months ended June 30, 1995, the Company's earnings amounted to $3,477,000, or $.50 per share, compared to earnings of $2,709,000, or $.41 per share, for the corresponding period a year ago, a per share increase of $.09, or 22% (Per share earnings have been adjusted to reflect 3 for 2 stock split.) Company spokesman and Chief Financial Officer, Mark A. Gavin Gavin is a common given name in Ireland, England, Scotland, and Wales. It is the late medieval form of the name Gawain, which in turn is believed to have originated from the Welsh name Gwalchgwn, meaning "white hawk. said, "We are pleased to report record earnings for the second quarter. CFX's positive performance was primarily due to increased core earnings (net interest income and non-interest income). The stronger core earnings are the result of an $83 million, or 15%, increase in loans and leases over the past twelve months, and an increased focus on the generation of non-interest income. However, a portion of the increase in core earnings was offset by $191,000 and $150,000, respectively, in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta losses incurred in the first and second quarters of 1995 from the sale of bank properties. Total core earnings were $10,694,000 and $20,649,000, respectively, for the three and six months ended June 30, 1995, compared to $9,123,000 and $17,893,000, respectively, for the same periods a year ago. The Company's net interest margin of 4.12% for the three months ended June 30, 1995 increased from 4.02% for the corresponding period a year ago. Contributing to the increase in non-interest income was the adoption of Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 122, 'Accounting for 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. Rights'. The Company adopted this Statement as of January January: see month. 1, 1995, which resulted in a $152,000 increase in gains on the sales of loans. Of the total recognized in the second quarter of 1995 from the adoption of SFAS No. 122, $43,000 was related to mortgage servicing rights generated in the first quarter of 1995." Mr. Gavin added, "It is gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to report that both 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). ) and return on common shareholders 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. ) rose sharply in the second quarter. ROA and ROE was .91% and 9.27%, respectively, for the three months ended June 30, 1995, compared to .71% and 7.47%, respectively, for the same period a year ago. In addition the Company's efficiency ratio also improved for the quarter, declining from 71.73% for the year ago quarter, to 67.51%." CFX CORPORATION is a multi-bank holding company headquartered in Keene, New Hampshire Keene is a city in Cheshire County, New Hampshire, United States. The estimated population was 23,023 in 2005, according to the state Data Center [1] It is the county seat of Cheshire CountyGR6. with total assets of $875,518,000, as of June 30, 1995. The Company's two banking subsidiaries are CFX BANK, headquartered in Keene, New Hampshire, and Orange Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , headquartered in Orange, Massachusetts Orange is a town in Franklin County, Massachusetts, United States. The population was 7,518 at the 2000 census. For geographic and demographic information on the census-designated place Orange, please see the article Orange (CDP), Massachusetts. . CFX MORTGAGE, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. ., CFX BANK's mortgage banking subsidiary, services approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $648,328,000 in mortgage loans for others. The combined Company operates 23 full service offices, 2 loan production offices, and 51 automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. teller TELLER. An officer in a bank or other institution. He is said to take that name from tallier, or one who kept a tally, because it is his duty to keep the accounts between the bank or other institution and its customers, or to make their accounts tally. and remote service banking locations in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and north central Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. .
SELECTED FINANCIAL HIGHLIGHTS
At or for the Three Months Ended June 30
(In thousands, except per share data)
1995 1994
Operating and Performance Ratios:
Return on average assets (1) .91% .71%
Return on average common equity (1) 9.27 7.47
Other income/average assets (1) 1.18 .74
Other expense/average assets (1) 3.31 3.04
Efficiency ratio 67.51 71.73
Tier 1 leverage capital 9.03 8.98
Asset Quality:
Nonperforming assets/total assets 1.03% 1.25%
Nonperforming loans as a
percent of total loans and leases 1.17 1.71
Allowance for loan and lease
losses/nonperforming loans 100.54 77.66
Allowance for loan and lease
losses/total loans and leases 1.17 1.33
Net charge offs/average loans and
leases (1) .21 .30
Stock Performance Indicators:
Common shares outstanding 7,071 6,667
Closing price (adjusted for 3 for 2
stock split) $16.50 $11.25
Book value per common share $12.48 $12.21
Tangible book value per common share $11.06 $10.58
Price/book value per common share 132% 92%
Price/tangible book value per
common share 149% 106%
Dividend per common share $.16 $.12
Dividend payout ratio 57% 52%
Price/earnings (1) 15 12
(1) Annualized
-0-
Note: Prior period financial statements have been restated to
reflect the accounting for the acquisition of Orange Savings Bank as
of April 28, 1995 as a pooling-of-interests. In addition, prior
period common per share data has been restated to reflect the
Company's 3 for 2 stock split declared on June 13, 1995 to
shareholders of record on June 23, 1995. The effective date of the
stock split will be July 24, 1995.
-0- CONSOLIDATED BALANCE SHEETS June 30, December 31, June 30, (Dollars in thousands) 1995 1994 1994 Assets
Cash and interest bearing
deposits with other banks $ 29,485 $ 26,000 $ 25,152
Federal Home Loan Bank of
Boston stock 7,388 7,388 6,839
Trading securities 20,615 236 50,774
Securities available for sale 6,741 8,234 22,325
Securities held to maturity 102,546 111,285 94,476
Mortgage loans held for sale 12,047 8,295 14,250
Nonperforming loans 7,600 8,515 9,718
Other loans and leases 644,536 632,606 559,538
Allowance for loan and
lease losses (7,641) (7,558) (7,547)
Premises and equipment 13,874 14,087 13,950
Mortgage servicing rights 4,206 4,207 4,361
Goodwill and deposit base
intangibles 10,108 10,476 10,855
Foreclosed real estate 1,414 1,271 1,034
Other assets 22,599 14,162 30,764
Total Assets $875,518 $839,204 $836,489
Liabilities and Shareholders' Equity Deposits $676,197 $625,429 $617,478 Borrowed funds 96,835 119,517 122,202 Other liabilities 14,207 7,685 11,824 Total Liabilities 787,239 752,631 751,504 Shareholders' Equity
Preferred stock - 193 193
Common stock 5,291 5,055 5,022
Paid-in capital 66,027 65,740 62,086
Retained earnings 24,561 23,289 25,391
Net unrealized losses
on securities available
for sale, after
tax effects (402) (506) (509)
Cost of common stock
in treasury (7,198) (7,198) (7,198)
Total Shareholders' Equity 88,279 86,573 84,985
Total Liabilities and
Shareholders' Equity $ 875,518 $ 839,204 $ 836,489
Common shares outstanding 7,071 6,717 6,667
Common shareholders'
equity per share $ 12.48 $ 12.36 $ 12.21
-0-
CONSOLIDATED INCOME STATEMENTS
Three Months Ended Six Months Ended
June 30,
(Dollars in thousands)
1995 1994 1995 1994
Interest and dividend income $ 16,065 $ 13,260 $ 31,331 $ 26,560 Interest expense 7,947 5,736 15,322 11,285 Net Interest and Dividend Income 8,118 7,524 16,009 15,275 Provision for loan and lease losses 480 - 630 12 Net Interest and Dividend Income After Provision for Loan and Lease Losses 7,638 7,524 15,379 15,263 Other income:
Service charges on
deposit accounts 540 389 1,092 783
Loan servicing fees 389 448 816 805
Net gains (losses) on
trading and investment
securities 408 135 632 (306)
Net gains on sales of
loans 202 106 214 432
Leasing activities 527 63 1,037 106
Other 510 458 849 798
2,576 1,599 4,640 2,618
Other expense:
Salaries and employee
benefits 3,393 3,227 6,939 6,419
Occupancy expense and
equipment expense 964 907 1,938 1,854
FDIC deposit insurance 363 346 725 691
Goodwill and deposit
base intangible
amortization 179 189 368 379
Operation of foreclosed
real estate 59 143 92 218
Other 2,262 1,732 4,465 3,676
7,220 6,544 14,527 13,237
Income Before Income
Taxes 2,994 2,579 5,492 4,644
Income Taxes 984 990 1,926 1,800
Net Income 2,010 1,589 3,566 2,844
Preferred stock
dividends 22 68 89 135
Net Income Available
to Common Stock $ 1,988 $ 1,521 $ 3,477 $ 2,709
Weighted average
common shares
outstanding 6,949 6,664 6,835 6,656
Earnings per common
share:
Primary $ .28 $ .23 $ .50 $ .41
Fully Diluted $ .28 $ .23 $ .49 $ .41
-0-
CONSOLIDATED AVERAGE BALANCE SHEETS
Three Months Ended June 30,
1995 1994
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
(Dollars in Balance Expense(1) Rate Balance Expense(1) Rate
thousands)
Assets Interest earning assets Loans and leases $662,646 $14,162 8.57% $574,201 $10,843 7.57% Taxable securities 109,266 1,433 5.27 155,151 2,050 5.30 Tax-exempt securities 24,734 438 7.10 17,383 277 6.39 Other 10,644 200 7.54 15,043 197 5.25
Total interest
earning
assets 807,290 16,233 8.07 761,778 13,367 7.04
Noninterest
earning assets 67,799 102,298
Total $875,089 $864,076
Liabilities and shareholders' equity Interest bearing liabilities:
Savings
deposits $299,930 1,931 2.58 $346,847 2,060 2.38
Time deposits 326,591 4,497 5.52 234,633 2,576 4.40
Advances from
Federal Home
Loan Bank of
Boston 67,384 1,080 6.43 94,616 974 4.13
Other borrowed
funds 30,411 439 5.79 17,747 126 2.85
Total interest
bearing
liabilities 724,316 7,947 4.40 693,843 5,736 3.32
Noninterest bearing liabilities:
Demand deposits 48,819 28,459
Other 13,256 56,336
Shareholders'
equity 88,698 85,438
Total $875,089 $864,076
Net interest and dividend income $8,286 $7,631 Interest rate spread 3.67% 3.72% Net interest margin 4.12% 4.02% (1) Income from tax-exempt securities has been restated to a tax-equivalent basis using a 38.62% tax rate. -0-
CONSOLIDATED AVERAGE BALANCE SHEETS
Six Months Ended June 30,
1995 1994
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
(Dollars in Balance Expense(1) Rate Balance Expense(1) Rate
thousands)
Assets Interest earning assets Loans and leases $655,569 $ 27,465 8.45% $ 567,207 $ 21,625 7.69% Taxable securities 109,668 2,926 5.38 158,495 4,256 5.42 Tax-exempt securities 24,215 855 7.12 15,182 484 6.43 Other 12,645 415 6.62 14,577 382 5.28
Total interest
earning
assets 802,097 31,661 7.96 755,461 26,747 7.14
Noninterest
earning assets 67,130 98,612
Total $869,227 $854,073
Liabilities and Shareholders' Equity Interest bearing liabilities: Savings deposits $304,689 3,881 2.57 $343,948 4,087 2.40 Time deposits 320,599 8,534 5.37 238,015 5,254 4.45 Advances from Federal Home Loan Bank of Boston 65,441 2,057 6.34 88,622 1,702 3.87 Other borrowed funds 30,194 850 5.68 12,453 242 3.92 Total interest bearing liabilities 720,923 15,322 4.29 683,038 11,285 3.33 Noninterest bearing liabilities:
Demand deposits 47,250 28,792
Other 12,761 56,979
Shareholders'
equity 88,293 85,264
Total $869,227 $854,073
Net interest and dividend income $ 16,339 $ 15,462 Interest rate spread 3.67% 3.81% Net interest margin 4.11% 4.13% (1) Income from tax-exempt securities has been restated to a tax-equivalent basis using a 38.62% tax rate. CONTACT: CFX Corp. Mark A. Gavin, Chief Financial Officer, 603/352-2502 |
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