Central Bank reports another quarter of stronger earnings.SOMERVILLE, Mass.--(BUSINESS WIRE)--Jan. 22, 1997--Central Bank (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 :CEBK) today reported another quarter of stronger earnings, as its net income improved by more than 33 percent to $802 thousand, or 41 cents a share, for the quarter ended Dec. 31, 1996, from $601 thousand, or 31 cents a share, for the corresponding quarter of the previous fiscal year. Year-to-date earnings also have reflected strong growth. For the nine months ended Dec. 31, 1996, Central Bank's net income was $2.1 million, or $1.06 a share -- and improvement of nearly 47 percent over the comparable fiscal 1996 period when the bank reported net income of $1.4 million, or 72 cents a share. Central Bank's president & chief executive officer, John D. Doherty, noted that, "The continued strong financial performance of Central Bank is a direct result of the actions the board of directors and management have taken to improve the bank and maximize value for its stockholders. Among the steps initiated are the restructuring program which has contributed to substantial reductions in 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. and more aggressive mortgage activities which resulted in $55 million of loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. during the first nine months of the current fiscal year." Central Bank's balance sheet, especially its asset quality, has continued to strengthened as well. Between Dec. 31, 1995 and Dec. 31, 1996, non-performing assets dropped 26 percent, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. decreased 26 percent and real estate acquired by foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. fell 84 percent. At Dec. 31, 1996, total loans of $234.1 million, deposits of $260.3 million and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $33.3 million were all above their March 31, 1996 levels. A further indication of the bank's financial strength is reflected in its capital-to-assets ratio, which has remained well above regulatory guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . As previously reported and as reflected on the attached financial information, earnings for fiscal 1997 have been negatively affected by legal fees and related expenses associated with the protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with the Genesis hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" , which has been settled on terms favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the bank. Excluding these extraordinary expenses, management estimates that net income for the quarter ended Dec. 31, 1996, would have approximated $866 thousand, or 45 cents a share, and that net income for the nine months ended Dec. 31, 1996, would have approximated $2.3 million, or $1.19 a share. Central Bank is a Massachusetts-chartered co-operative bank The Co-operative Bank is a co-operative bank trading in the United Kingdom with headquarters in Manchester, UK. It is an ethical bank, and refuses to invest in companies involved in the arms trade, genetic engineering, animal testing and use of sweated labour as stated in its operating eight full-service banking offices in suburban Boston. -0-
CENTRAL BANK
Statements of Income
(In Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
(Unaudited)
Net interest and
dividend income $ 3,004 $ 2,869 $ 8,727 $ 8,266
Provision for
loan losses 0 30 0 90
Non-interest income 197 297 687 902
Operating expenses:
Investment fund
litigation expenses 80 -- 320 --
Other operating
expenses 2,127 2,334 6,545 7,210
Total operating
expenses 2,207 2,334 6,865 7,210
Net income $ 802 $ 601 $ 2,055 $ 1,401
Earnings per common and
common equivalent
share $ 0.41 $ 0.31 $ 1.06 $ 0.72
Average common and
common equivalent
shares outstanding 1,940 1,937 1,940 1,934
-0-
CENTRAL BANK
Balance Sheets
(In Thousands)
Dec. 31, March 31,
1996 1996
(Unaudited)
Total assets $ 324,297 $ 310,949
Non-performing assets 5,415 6,111
Total loans 234,106 214,421
Allowance for loan losses 2,896 3,032
Deposits 260,271 257,096
Borrowings 27,000 18,000
Stockholders' equity 33,283 31,084
-0- CONTACT: Central Bank Gladys N. Partamian, 617/628-4000 |
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