Center Financial announces 19% increase in earnings for first quarter.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 23, 1996--Center Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CFCX), the holding company of Centerbank, today reported net income of $5.5 million, or $0.38 per share, for the first quarter of 1996, an increase of $0.9 million over net income of $4.6 million, or $0.32 per share, for the first quarter of 1995. This represents an improvement of 19.6 percent. The company also announced that the board of directors 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 regular quarterly dividend of $0.07 per share, payable May 13, 1996, to shareholders of record on May 2, 1996. This is the company's sixth consecutive quarterly dividend since restoring the dividend in the first quarter of 1995. In making the announcement, Center Financial President 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 commented, "I am gratified 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 a healthy 40 percent increase in our noninterest income during the first quarter due, in part, to securities gains and strong mortgage banking activity. I expect this trend will continue, particularly in light of the high volume of loan applications seen last month." He continued, "Noninterest expenses also improved slightly this quarter as we began to see the results of 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 efforts initiated in 1995." Net interest margin for the quarter ended March 31, 1996 was 3.39 percent, down 32 basis points from a year earlier, but up from the fourth quarter 1995 level of 3.24 percent. 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. , at $223.9 million, was 6.10 percent of total assets at March 31, 1996, representing a $22.6 million increase from $201.4 million at March 31, 1995. Total assets were $3.7 billion at the close of the first quarter, an increase of 6.9 percent over the first quarter of 1995. Book value at March 31, 1996 was $15.46 per share. Center Financial Corporation completed the merger of Great Country Bank of Ansonia, Connecticut Ansonia is a city and town in New Haven County, Connecticut, U.S.A., on the Naugatuck River, immediately north of Derby and about 12 miles northwest of New Haven. The population was 18,554 at the 2000 census. The ZIP code for Ansonia is 06401. , with Centerbank on December December: see month. 15, 1995. The transaction was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . The 1995 historical results of operations and financial condition of the company have been restated to reflect Center Financial's financial position and its results of operations on a combined basis with Great Country. "The remainder of 1996 will be an exciting time at Center Financial. In April, we completed the transaction with Watertown-based Heritage Bank and we are looking forward to opening our first supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. branch during the second quarter and anticipate seven additional supermarket branches by the end of the year. Our investigation of other alternative delivery systems, such as PC-based home banking, banking on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , and advanced telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , coupled with the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. introduction of a Centerbank MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and (R) and the national expansion of our consumer finance subsidiary, Center Credit Corporation, should serve us well," Narkis added. Center Financial Corporation is the holding company for Centerbank, 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. It recently signed an agreement with Edwards Super Food Stores to place full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branches in their stores located in Clinton Clinton. 1 Town (1990 pop. 12,767), Middlesex co., S Conn., on Long Island Sound; settled 1663, set off from Killingworth and inc. 1838. The school that later became Yale opened here in 1702. , Meriden Meriden (mĕr`ĭdən), city (1990 pop. 59,479), New Haven co., S central Conn.; settled 1661, inc. as a town 1806, as a city 1867, town and city consolidated 1922. Silverware and pewter were made there in the 18th cent. , Orange, Shelton Shelton, city (1990 pop. 35,418), Fairfield co., SW Conn., on the Housatonic River opposite Derby; settled 1697, set off from Stratford 1789, inc. as a city 1915. Metal products, furniture, and electronic equipment are among the city's manufactures. and Southington Southington (sŭth`ĭngtən), town (1990 pop. 38,518), Hartford co., central Conn.; settled 1696, inc. 1779. Manufacturing began in Southington in the 1770s, and its thriving machine tool industry was spurred by inventions made there . Centerbank delivers banking services 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). via 44 branches in 27 communities and through alternative delivery systems, such as ATMs and telephone banking. It is 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). . Centerbank Mortgage Company is a full-service mortgage banking company with a residential servicing portfolio of $7.3 billion. Center Capital Corporation is an equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. . -0- CENTER FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited) (In thousands, except per share amounts)
Three months ended Twelve months ended
March 31, December 31,
1996 1995 1995 1994
Statement of Operations Interest and dividend income $ 65,339 $ 60,946 $ 254,103 $ 211,465 Interest expense 37,116 31,801 141,127 100,163 Net interest income 28,223 29,145 112,976 111,302 Provision for loan and lease losses 1,587 1,248 8,616 20,103 Noninterest income 9,442 6,706 35,985 30,659 Noninterest expense 27,887 28,130 115,902 122,478 Income before income taxes 8,191 6,473 24,443 -620 Income tax expense 2,712 1,873 1,797 -4,956 Net income (loss) $ 5,479 $ 4,600 $ 22,646 $ 4,336 Net income (loss) per common share $ 0.38 $ 0.32 $ 1.58 $ 0.31 Average Balance Sheet Loans and leases, net $ 2,893,673 $ 2,577,742 $ 2,704,526 $ 2,406,138 Securities and other interest- earning assets 437,795 562,238 513,785 469,025 Total average interest-
earning assets 3,331,468 3,139,980 3,218,311 2,875,163
Cash and due from banks 59,257 54,959 56,885 65,598
Other assets 223,166 222,840 216,285 285,199
Total average assets$ 3,613,891 $ 3,417,779 $ 3,491,481 $ 3,225,960
Deposits $ 2,483,262 $ 2,406,293 $ 2,405,225 $ 2,477,480 Escrow on first mortgage
loans 51,457 47,575 55,465 59,827
Borrowings 830,583 733,364 786,408 448,063
Other liabilities 26,604 29,440 31,219 48,569
Shareholders' equity 221,985 201,107 213,164 192,021
Total average liabilities
and shareholders'
equity $ 3,613,891 $ 3,417,779 $ 3,491,481 $ 3,225,960
Selected Ratios and Other Data
Return (loss) on average
assets 0.61 % 0.54 % 0.65 % 0.13 %
Return (loss) on average
shareholders' equity 9.87 9.15 10.94 2.26 Dividend payout ratio 18.42 15.63 10.00 - Average shareholders' equity to average assets 6.14 5.88 6.11 5.95 Total shareholders' equity to total assets 6.10 5.86 6.18 5.75 Yield on interest-earning assets 7.85 7.76 7.90 7.35 Cost of interest-bearing liabilities 4.7 4.29 4.61 3.62 Net interest spread 3.15 3.47 3.29 3.73 Net interest margin 3.39 % 3.71 % 3.51 % 3.87 % Per common share at March 31: Book value $ 15.35 $ 14.11 15.33 13.77 Market value (close) 18.13 12.75 17.50 10.00 Regulatory Ratios Centerbank: Leverage ratio 5.77 % 5.50 % 5.74 % 5.44 % Tier 1 capital to risk-weighted assets 9.07 8.58 8.82 8.38 Total capital to risk-weighted assets 11.42 9.84 11.17 9.64 Center Financial Corporation: (as successor to Centerbank) Leverage ratio 5.79 5.50 5.79 % - Tier 1 capital to risk-weighted assets 9.09 8.58 8.87 - Total capital to risk-weighted assets 11.44 9.84 11.22 - CENTER FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Unaudited) (In thousands) Summary of Nonperforming Assets
Mar 31, Dec 31, Mar 31,
1996 1995 1995
Nonaccruing loans and leases:
Residential first mortgage loans:
1 - 4 family $ 26,827 $ 24,495 $ 23,275
Other 3,151 3,650 1,380
Home equity and other
consumer loans 3,909 3,678 2,599
Commercial first mortgage loans: 24,228 20,639 21,856
Other commercial loans 9,769 7,755 9,579
Leases 3,452 3,777 3,112
Total nonaccruing loans
and leases, net 71,336 63,994 61,801
Real estate owned ("REO"):
Commercial 23,526 23,682 32,929
Residential 5,187 6,517 7,522
Total real estate owned 28,713 30,199 40,451
Total nonperforming assets $ 100,049 $ 94,193 $ 102,252
Net loan and lease charge-offs during the quarter $ 2,142 $ 3,201 $ 520 Allowance for loan and lease losses (1) 42,470 43,025 46,434 Allowance for losses on REO 4,246 4,540 6,738 Net loan and lease charge-offs to average loans and leases 0.07 % 0.11 % 0.02 % Allowance for loan and lease losses to average loans and leases 1.47 1.53 1.8 Allowance for loan and lease losses to nonaccruing loans and leases 59.54 67.23 75.13 Allowances for loan, lease and REO losses to nonperforming assets 46.69 50.5 52 Nonperforming assets to related asset categories 3.4 3.2 3.77 Nonperforming assets to total assets 2.73 % 2.63 % 2.98 % Summary of Impaired Loans Center Financial reported $33,997 of impaired loans at March 31, 1996. The components of the impaired loan balance were as follows: $24,228 of commercial mortgage loans and $9,769 of other commercial loans. Summary of Restructured Loans The total in the "Total nonaccruing loans and leases, net" category listed above includes $944, $1,005 and $886 of loans that were restructured as of March 31, 1996, December 31, 1995 and March 31, 1995, respectively. (1) The amount reported for March 31, 1996 includes $1,535 as an allowance for credit losses on impaired loans totaling $18,641 in accordance with the adoption of SFAS Nos. 114 and 118. CENTER FINANCIAL CORPORATION CONSOLIDATED BALANCE SHEET (Unaudited) (In thousands, except share amounts)
Mar 31, Dec 31, Mar 31,
1996 1995 1995
Assets
Cash and due from banks $ 93,844 $ 77,069 $ 64,563
Securities:
Federal Home Loan Bank stock,
at cost 34,506 32,321 28,248
Available for sale
(amortized cost: $324,532,
$241,032 and $84,104) 291,562 214,625 61,324
Held to maturity (fair value:
$149,327, $160,438
and $430,139) 151,192 161,988 439,783
Total securities 477,260 408,934 529,355
Loans and leases:
Residential first mortgage
loans available for sale 206,268 153,173 119,752
Residential first mortgage
loans held for
investment 1,702,235 1,732,253 1,542,290
Consumer home equity
loans 237,136 247,127 268,739
Other consumer loans 136,951 131,293 110,857
Commercial first mortgage
loans:
Permanent 305,263 295,202 290,895
Construction 29,659 33,896 12,260
Other commercial loans 110,399 123,026 122,988
Leases 182,925 193,762 202,201
Allowance for loan and
lease losses -42,470 -43,025 -46,580
Total loans and leases, net 2,868,366 2,866,707 2,623,402
Real estate owned, net 24,467 25,659 32,534
Premises and equipment, net 47,108 46,617 48,011
Accrued interest receivable 20,580 21,816 18,883
Mortgage servicing rights 69,586 65,461 53,394
Excess servicing fees
receivable 15,836 15,264 12,170
Deferred tax assets, net 15,835 15,399 16,909
Acquisition related
intangibles 14,762 15,277 12,337
Other assets 21874 22216 22271
$3,669,518 $3,580,419 $3,433,829
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand $ 213,167 $ 216,163 $ 185,179
Savings 644,073 643,816 835,905
Money market 270,700 271,347 128,566
Time 1,397,297 1,345,298 1,275,051
Total deposits 2,525,237 2,476,624 2,424,701
Escrow on first mortgage
loans 60,001 63,546 50,578
Borrowings 828,962 787,385 723,108
Other liabilities 31,388 31,438 34,075
3,445,588 3,358,993 3,232,462
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; 14,487,375, 14,445,649
and 14,535,253 shares issued
and outstanding at March 31,
1996, December 31, 1995
and March 31, 1995 respectively 14,487 14,446 14,535
Paid-in capital 176,480 176,050 174,724
Retained earnings 32,060 27,592 11,457
Net unrealized gain (loss) on
securities available for sale,
net of tax effect 903 3338 651
223,930 221,426 201,367
$ 3,669,518 $3,580,419 $ 3,433,829
CENTER FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per
share amounts)
Three months ended Twelve months ended
March 31, December 31,
1996 1995 1995 1994
Interest and Dividend
Income
Interest and fees on
loans $ 54,672 $ 47,764 $ 205,053 $ 167,074
Leases 3,861 4,344 17,006 16,225
Total interest and fees on
loans and leases 58,533 52,108 222,059 183,299
Interest on mortgage-
backed securities 6,044 8,162 28,932 24,159
Interest and dividends on
other earning assets 762 676 3,112 4,007
Total interest income 65,339 60,946 254,103 211,465
Interest Expense
Interest on deposits 24,351 20,279 90,925 74,461
Escrow on first mortgage
loans 188 180 883 860
Interest on borrowings 12,577 11,342 49,319 24,842
Total interest expense 37,116 31,801 141,127 100,163
Net interest income 28,223 29,145 112,976 111,302
Provision for loan and lease losses 1,587 1,248 8,616 20,103 Net interest income after provision for loan and lease losses 26,636 27,897 104,360 91,199
Noninterest Income
Customer service fees 1,661 1,574 6,484 6,392
Mortgage servicing
income, net 2,280 2,990 11,542 9,343
Gain on sale of loans and
servicing rights, net 2,588 1,222 7,282 9,317
Gain on sale of securities,
net 1,897 441 1,813 753
Other income 1,016 479 3,975 4,854
Total noninterest income 9,442 6,706 31,096 30,659
Noninterest Expense
Salaries and employee
benefits 13,093 13,200 51,595 54,846
Occupancy and equipment 4,411 4,600 17,221 19,155
Professional and other
services 3,489 3,505 14,882 10,052
Net cost of real estate
owned 1,429 1,452 6,182 12,693
FDIC and state assessment 169 1,773 3,637 6,959
Advertising and public
relations 1,200 980 3,157 3,460
Other expense 4,096 2,620 11,183 15,313
Total noninterest expense 27,887 28,130 107,857 12,2478
Income before
income taxes 8,191 6,473 27,599 -620
Income tax expense 2,712 1,873 1,797 -4,956
Net income (loss) $ 5,479 $ 4,600 $ 25,802 $ 4,336
Net income (loss) per common share $ 0.38 $ 0.32 $ 1.58 $ 0.31 Average common shares outstanding 14,462,674 14,253,174 14,326,160 14,145,849 CONTACT: Center Financial Corporation Patricia B. Sweet 203/578-6296 (phone) 203/578-6279 (fax) |
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