Central Bank reports strong earnings for its fiscal 1997 first quarter.SOMERVILLE Somerville. 1 City (1990 pop. 76,210), Middlesex co., E Mass., a residential and industrial suburb of Boston, on the Mystic River; settled 1630, set off from Charlestown 1842, inc. as a city 1871. , Mass.--(BUSINESS WIRE)--July 23, 1996--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 increased mortgage lending combined with lower interest expenses and operating costs operating costs npl → gastos mpl operacionales contributed to an improvement of more than 60 percent in the Bank's profits -- to $601 thousand, or 31 cents a share, for the quarter ended June June: see month. 30, 1996, from $368 thousand, or 19 cents a share, for the corresponding quarter of 1995. New 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. totaled approximately $27 million during the June 30, 1996 quarter, bringing total loans to $230.2 million and total assets to $319.2 million. With deposits also up to $259.5 million, the bank's loans, assets and deposits were all above their March 31, 1996 levels. The bank's strong earnings for the first quarter of fiscal 1997 were principally attributed to the combined effects of improvements in the bank's interest spread, as management was able to reduce the bank's interest expense and avoid the need for further provisions for possible loan losses, while essentially maintaining interest income levels. In addition, substantial cost savings accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. to the bank as a result of management's continuing successful implementation of the bank's previously announced 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). , as well as improved back-office efficiencies and decreased deposit insurance costs. Commenting on Central Bank's results, its President and Chief Executive Officer, John Doherty John Doherty is the name of:
Despite management's ongoing initiatives to improve Central bank's profitability and enhance stockholder value, the bank's earnings continued to be depressed by legal fees and related expenses associated with previously reported 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. initiated by the Genesis investment fund. Without the expenses incurred in these matters, management estimates that the bank's net income for the quarter ended June 30, 1996, could have been approximately $700 thousand, or 36 cents a share. The bank's capital-to-assets ratio at June 30, 1996, 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. , and the bank's financial strength and soundness have been consistently recognized by the independent bank rating organizations, two of which, Bauer Bauer is a German family name. It translates to peasant or farmer (agricola in Latin). Notable people of this name include:
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 11 full-service offices in suburban Boston. -0-
Central Bank
Statements of Operations
(In Thousands, Except Per-Share Data)
Three Months Ended
June 30,
1996 1995
(Unaudited)
Net interest and dividend income $2,818 $2,742 Provision for possible loan losses 0 30 Non-interest income 251 296 Operating expenses: Investment fund litigation expenses 120 0 Other operating expenses 2,206 2,518 Total operating expenses 2,326 2,518 Net income $601 $368 Earnings per common and common equivalent share $0.31 $0.19 Average common and common equivalent shares outstanding 1,940 1,927 -0-
Central Bank
Balance Sheets
(In Thousands)
June 30, March 31,
1996 1996
(Unaudited)
Total assets $319,162 $310,949 Non-performing assets 5,702 6,111 Total loans 230,184 214,421 Allowance for possible loan losses 2,920 3,032 Deposits 259,500 257,096 Borrowings 24,095 18,000 Stockholders' equity 31,327 31,084 CONTACT: Central Bank Gladys N. Partamian, 617/628-4000 |
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