Central Bank reports significant growth in earnings for fiscal 1997.SOMERVILLE, Mass.--(BUSINESS WIRE)--April 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 that its earnings for the fiscal year ended March 31, 1997, were $2.84 million, or $1.46 a share, a significant improvement over the net income of $1.23 million, or 64 cents a share, reported for the fiscal year ended March 31, 1996. For the quarter ended March 31, 1997, net income totaled $782 thousand, or 40 cents a share, compared to a net loss of $175 thousand, or 9 cents a share, in the corresponding quarter of the prior fiscal year. The fiscal 1996 results were adversely affected by one-time restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and related expenses of $748 thousand (pre-tax) incurred to improve the bank's efficiency and productivity. Central Bank's President and Chief Executive Officer, John D. Doherty, noted: "We are very pleased with the strong earnings reported for fiscal 1997, which were in line with our expectations and were a direct result of the many steps we have taken to improve the bank's financial position and maximize value for our stockholders. Continued 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. resulting in part from the previously announced restructuring plan, along with a substantial volume 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. , contributed to the earnings improvement. Management and the Board of Directors will evaluate additional initiatives to further capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the bank's strong financial position. The outlook remains very positive as we move ahead." Significant progress was made during fiscal 1997 in improving the quality of the banks' assets. Between March 31, 1996 and March 31, 1997, non-performing assets dropped 54 percent. At March 31, 1997, total loans of $234.9 million, deposits of $259.1 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 $33.5 million were all above their March 31, 1996, levels. Loan originations were $60.7 million in fiscal 1997, compared to $39.3 million in fiscal 1996. As previously reported, earnings for fiscal 1997 were negatively affected by legal fees and related expenses associated with the 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 a former California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). 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 was settled on terms favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the Bank. 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.
CENTRAL BANK
Statements of Income
(In Thousands, Except Per Share Data)
Three Months Ended Fiscal Years Ended
March 31, March 31,
1997 1996 1997 1996
(Unaudited)
Net interest and
dividend income $ 2,896 $ 2,809 $11,623 $11,075
Provision for loan
losses 0 30 0 120
Non-interest income 201 445 888 1,347
Operating expenses 2,121 3,456 8,986 10,666
Net income (loss) $ 782 ($175) $ 2,837 $ 1,226
Earnings (loss) per
common and common
equivalent share $ 0.40 ($0.09) $ 1.46 $ 0.64
Average common and
common equivalent
shares outstanding 1,942 1,965 1,940 1,926
-0-
CENTRAL BANK
Balance Sheets
(In Thousands)
March 31,
1997 1996
Total assets $ 320,950 $ 310,949
Non-performing assets 2,822 6,111
Total loans 234,935 214,421
Allowance for loan losses 2,900 3,032
Deposits 259,093 257,096
Borrowings 25,000 18,000
Stockholders' equity 33,545 31,084
CONTACT: Central Bank Gladys N. Partamian, 617/628-4000 |
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