CFX Corp. announces record quarter and annual earnings.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)-- Jan. 19, 1995 -- 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 CORPORATION (AMEX AMEX See: American Stock Exchange : CFX) today announced record earnings of $1,531,000, or $.40 per share, for the quarter ended December December: see month. 31, 1994, compared to earnings of $1,022,000, or $.27 per share, for the same quarter last year, a per share increase of $.13, or 48%. For the year ended December 31, 1994, the Company's record earnings were $5,205,000, or $1.35 per share, compared to earnings of $4,752,000, or $1.24 per share, for the year ended December 31, 1993, a per share increase of $.11, or 8.9%. (Per share earnings for prior periods have been restated to reflect the 1994 5% stock dividend). Income taxes for the prior year periods were reduced (and thus earnings increased) through the recognition of several special tax adjustments in connection with the Statement of Financial Accounting Standards No. 109. Without these tax adjustments, the previous year's earnings would have been $636,000, or $.17 per share, and $3,577,000, or $.93 per share for the three and twelve months ended December 31, 1993. 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, "Our earnings for 1994 were positively affected by stronger core earnings (net interest and dividend income and other income, excluding securities gains and losses) and lower credit costs (provision for loan and lease losses and the operation of foreclosed real estate) as a result of a significantly lower level of 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. carried on the Company's balance sheet during 1994 compared to 1993. Total core earnings were $9,673,000 and $34,446,000, respectively, for the three and twelve months ended December 31, 1994, compared to $8,034,000 and $29,784,000 respectively for the same periods a year ago. The interest rate spread of 3.77% and the net interest margin of 4.13% for the year ended December 31, 1994, declined from 4.00% and 4.33%, respectively, for the corresponding period in the prior year. The interest rate spread and net interest margin in 1994 declined from 1993 levels principally as a result of increased funding costs and the Company's wholesale leverage program (liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. in October October: see month. 1994) which earned a considerably lower interest rate spread than the Company's retail banking activities. Excluding leverage program assets and other trading securities, the Company's interest rate spread and net interest margin for the twelve months ended December 31, 1994 were 3.85% and 4.23%, respectively. A major contribution to the Company's higher core earnings in 1994 was a growth in net loans of $99 million, compared to a $12 million decline in net loans during 1993. The strong loan growth in 1994 was the result of our increased focus on the Company's lending activities. Over the past 18 months we have significantly increased our lending capabilities with the integration of CFX MORTGAGE, the formation of our lease funding company, and the expansion of our commercial and consumer finance activities." Mr. Gavin added, "Other factors affecting earnings in the fourth quarter of 1994 were a $677,000 (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ) gain from the sale of a $59 million mortgage loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. portfolio, and a $89,000 (pre-tax) gain from the sale of a $1 million credit card portfolio. Substantially offsetting these gains were $594,000 (pre-tax) in charges associated with a profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. , a severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when accrual, and costs incurred in connection with the acquisition of 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. ." CFX CORPORATION is a 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 $756,000,000 as of December 31, 1994. The Company's banking subsidiary is CFX BANK, headquartered in Keene, N.H. 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. ., the Bank's mortgage banking subsidiary, services approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $645,000,000 in mortgage loans for others. The combined Company operates 20 full service offices, 7 loan production offices, and 50 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). . CFX Corp. Selected income statement data (Unaudited) (In thousands, except per share data)
Three Months Year
Ended Ended
Dec. 31, Dec. 31,
1994 1993 1994 1993
Interest and dividend income $13,486 $11,596 $49,681 $46,142 Interest expense 6,052 4,850 21,632 19,685 Net interest and dividend income 7,434 6,746 28,049 26,457 Provision for loan and lease losses 375 - 425 2,970 Net gains (losses) on trading securities 124 (26) (257) 316 Net gains on investment securities - 891 85 2,624 Net gain on sale of servicing 677 - 677 - Net gains on sale of loans 85 263 525 371 Loan servicing fees 599 205 1,862 323 Other income 878 820 3,333 2,633 Operation of foreclosed real estate 46 1,514 157 3,011 Other expense 6,862 6,133 25,005 20,481 Income before income taxes 2,514 1,252 8,687 6,262 Income taxes 916 162 3,214 1,240 Net income 1,598 1,090 5,473 5,022 Preferred stock dividends 67 68 268 270 Net income available to common stock $ 1,531 $ 1,022 $ 5,205 $ 4,752 Weighted average common shares outstanding 3,872 3,837 3,860 3,826 Earnings per common share $ .40 $ .27 $ 1.35 $ 1.24 Other selected data Average yield on interest earning assets 7.61% 7.16% 7.26% 7.53% Average cost of interest bearing liabilities 3.79% 3.27% 3.49% 3.53% Interest rate spread 3.82% 3.89% 3.77% 4.00% Net interest margin 4.24% 4.19% 4.13% 4.33% Annualized return on average assets .83% .58% .68% .71% Annualized return on average equity 8.54% 5.59% 7.10% 6.66%
CFX CORPORATION
Selected Balance Sheet Data
(Unaudited)
(In thousands, except per share data)
12/31/94 9/30/94 12/31/93
Total assets $ 755,936 $ 759,031 $ 735,121 Loans and leases $ 564,175 $ 520,675 $ 465,043 Less: allowance for loan and lease losses $ 7,025 $ 6,935 $ 7,357 Net loans and leases $ 557,150 $ 513,740 $ 457,686 Nonperforming loans $ 6,536 $ 6,769 $ 6,472 Foreclosed real estate $ 1,573 $ 2,179 $ 3,353 Total nonperforming assets $ 8,109 $ 8,948 $ 9,825 Net charge offs (year-to-date) $ 757 $ 472 $ 3,535 Total deposits $ 551,539 $ 542,330 $ 551,205 Total borrowed funds $ 119,517 $ 113,021 $ 67,683 Common shareholders' equity $ 74,562 $ 73,465 $ 72,193 Common shares issued and outstanding $ 3,893 $ 3,864 $ 3,842 Book value per common share $ 19.15 $ 19.01 $ 18.79 Tier 1 Leverage Capital Ratio 9.09% 8.88% 8.93% OTHER SELECTED DATA Allowance for loan and lease losses as a percent of total loans and leases 1.25% 1.33% 1.58% Allowance for loan and lease losses as a percent of total nonperforming loans 107.48% 102.45% 113.67% Nonperforming loans as a percent of total loans and leases 1.16% 1.30% 1.39% Nonperforming assets as a percent of total assets 1.07% 1.18% 1.34% Nonperforming assets as a percent of total shareholders' equity & allowance for loan and lease losses 9.52% 10.66% 11.82% CONTACT: CFX Corp. Mark A. Gavin, 603/352-2502 |
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