Chicopee Bancorp, Inc. Announces Second Quarter Earnings.CHICOPEE Chicopee (chĭk`əpē), city (1990 pop. 56,632), Hampden co., SW Mass., at the confluence of the Chicopee and the Connecticut rivers; settled c.1641, set off from Springfield 1848, inc. as a city 1890. , Mass. -- Chicopee Bancorp, Inc. (the "Company") (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 : CBNK), which became the holding company for Chicopee 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. (the "Bank) in connection with the Bank's conversion from a mutual savings bank Mutual savings bank A state-chartered savings bank which is owned by its depositors and managed by a fiduciary board of trustees. to a stock savings bank, today announced the results of operations for the three and six months ending June June: see month. 30, 2006. Due to the timing of the conversion, as of June 30, 2006, the Company had no assets and conducted no operations. Accordingly, all information presented is for the Bank's operations only. The Bank's net income increased 12.1% from $347,000 for the quarter ending June 30, 2005 to $389,000 for the quarter ended June 30, 2006. Net income increased by 1.9% from $727,000 for the six months of 2005 to $741,000 for the first six months of 2006. The Company and Bank completed its mutual-to-stock conversion and related stock offering on July July: see month. 19, 2006 with the issuance of 7,439,368 shares (including 551,064 shares issued to the Chicopee Savings Bank Charitable Foundation) raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $67.1 million. Such net proceeds were initially invested in short term investments including fed funds fed funds See federal funds. and agency bonds. The Bank's balance sheet increased by $47.1 million, or 12%, from $391.3 million at December December: see month. 31, 2005 to $438.5 million at June 30, 2006, including subscription proceeds of $55.2 million. During this period, net loans increased by $13.9 million, or 4.4%, to $329.6 million. Consumer loans increased by $3.7 million, or 20.2%, to $21.8 million, and commercial real estate loans increased by $4.3 million, or 3.9%, to $114.5 million. Financial highlights include: --The investment portfolio decreased by $1.4 million, or 4.2%, to $32.8 million as of June 30, 2006 compared to the balance at December 31, 2005 primarily due to the sale of available-for-sale securities as well as the overall market trend. --For the six months ended June 30, 2006, total deposits increased by $7.8 million, or 2.7%. During the period demand deposits increased $5.0 million or 17.8% due to increase in business checking balances and certificates of deposit increased by $6.5 million, or 4.0%, primarily from a special deposit promotion. --FHLB advances at June 30, 2006 were $17.0 million, a decrease of $12.4 million from December 31, 2005 due to maturities. --The allowance for loan losses at June 30, 2006 was $2.8 million, or 0.85% of total loans, compared to $2.6 million, or 0.82% of total loans as of December 31, 2005. Nonperforming loans at June 30, 2006 were $319,000, or 0.10% of total loans, decreasing $417,000 from $736,000, or 0.23% of total loans as of December 31, 2005. The provision for loan losses increased to $110,000 in the three months ended June 30, 2006 from $30,000 for the same period in 2005 due to the classification of special mention in June 2006. The increase in provision for loan losses for the six months ended June 30, 2006 was $260,000 compared $60,000 for the same period in 2005 this increase was related to an increase in classified loans and overall loan growth. --During the quarter ending June 30, 2006, the net interest margin remained stable at 3.47%, as compared to 3.55% for the second quarter of 2005. For the first six months of 2006, the net interest margin was 3.43% compared to 3.56% for the six months ended June 30, 2005. The lower net interest margin for the first two quarters of 2006 as compared to the same period in 2005 was primarily due to an increase in the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. due to higher market interest rates in 2006. --Non-interest income was $446,000 for the quarter ended June 30, 2006 compared to $378,000 for the quarter ended June 30, 2005. The year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. non-interest income was $916,000, an increase of $142,000, or 18.3%, over the same period in 2005. Such increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased fees from loan sales and servicing during 2006. --Non-interest expense for the three months ended June 30, 2006 was $3.0 million compared to $2.8 million for the same period in 2005. In the first half of 2006, non-interest expense was $5.9 million, an increase of $391,000 or 7.1% over the six months ended June 30, 2005. --Total capital at June 30, 2006 was $44.2 million, an increase of $751,000, or 1.7%, resulting from net income during the period. The capital levels at June 30, 2006 do not reflect the net proceeds from the Company's stock offering which closed on July 19, 2006. Chicopee Bancorp, Inc. is a publicly owned Publicly owned can refer to:
 `sĭts), most populous of the New England states of the NE United States. stock
savings bank headquartered at 70 Center Street, Chicopee, MA 01014.
Chicopee Savings Bank provides a wide variety of financial products and
services through its five branch offices located in Chicopee, Ludlow Ludlow, town (1990 pop. 18,820), Hampden co., SW Mass., on the Chicopee River; settled c.1750, set off from Springfield 1774, inc. 1775. It is a residential suburb of Springfield and Chicopee. Industrial molds, plastic products, and twine are produced. and
West Springfield West Springfield, town (1990 pop. 27,537), Hampden co., SW Mass., on the Connecticut River opposite Springfield; settled 1654, set off from Springfield and inc. 1774. Light manufactures include paper, chemicals, and ignition systems. in Western Massachusetts. For more information
regarding the Bank's products and services, please visit our web
site at www.chicopeesavingsbank.com.Attached are consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of operations. The condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's Form 10-Q Form 10-Q See 10-Q. , dated March 31, 2006. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services 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. , adverse changes in the securities markets, changes in deposit flows and changes in the quality or composition of the Company's loan or investment portfolios. Additionally, other risks and uncertainties may be described in the Company's quarterly reports on Form 10-Q and its registration statement on Form S-1, each filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Should one or more of these risks materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company assumes no obligation to update any forward-looking statements.
CHICOPEE SAVINGS BANK AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
June December
30, 31,
Assets 2006 2005
--------- ---------
Cash and due from banks $11,876 $10,003
Short-term investments 4,066 4,181
Federal funds sold 35,250 3,402
--------- ---------
Total cash and cash equivalents 51,192 17,586
Securities available for sale, at fair value 4,670 4,934
Securities held-to-maturity, at cost (fair value
$27,677 and $29,109 at June 30, 2006 and
December 31, 2005, respectively) 28,295 29,472
Federal Home Loan Bank stock, at cost 2,589 2,447
Loans, net of allowance for loan losses ($2,811
at June 30, 2006 and $2,605 at December
31, 2005) 329,566 315,649
Cash surrender value of life insurance 11,002 10,801
Premises and equipment, net 7,190 7,079
Accrued interest and dividend receivable 1,524 1,341
Deferred income tax asset 649 987
Other assets 1,818 1,053
--------- ---------
Total assets $438,495 $391,349
========= =========
Liabilities and Surplus
Deposits
Non-interest-bearing $32,866 $27,912
Interest-bearing $270,004 $267,111
--------- ---------
Total deposits $302,870 $295,023
Securities sold under agreements to repurchase 14,459 20,163
Advances from Federal Home Loan Bank 17,029 29,417
Mortgagors' escrow accounts 897 971
Accrued expenses and other liabilities 59,048 2,334
--------- ---------
Total liabilities $394,303 $347,908
--------- ---------
Commitments and contingencies
Surplus
Undivided profits 44,078 43,351
Accumulated other comprehensive income
Net unrealized appreciation on securities
available-for-sale, net of deferred
income taxes 114 90
--------- ---------
Total surplus 44,192 43,441
--------- ---------
Total liabilities and surplus $438,495 $391,349
========= =========
CHICOPEE SAVINGS BANK AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In Thousands Except Per Share Amounts)
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------
Interest and dividend income:
Loans, including fees $4,879 $4,213 $9,576 $8,257
Interest and dividends on
securities: 385 277 745 568
Other interest-earning assets 152 79 243 120
------- ------- ------- -------
Total interest and dividend
income 5,416 4,569 10,564 8,945
------- ------- ------- -------
Interest expense:
Deposits 1,804 1,472 3,466 2,747
Securities sold under agreements
to repurchase 48 36 110 74
Other borrowed funds 354 146 712 265
------- ------- ------- -------
Total interest expense 2,206 1,654 4,288 3,086
------- ------- ------- -------
Net interest income 3,210 2,915 6,276 5,859
Provision for loan losses 110 30 260 60
------- ------- ------- -------
Net interest income, after provision
for loan losses 3,100 2,885 6,016 5,799
------- ------- ------- -------
Non-interest income:
Service charges, fees and
commissions 391 322 781 657
Loan sales and servicing 44 17 117 27
Net gain on sales of securities
available-for-sale 11 39 18 90
------- ------- ------- -------
Total non-interest income 446 378 916 774
------- ------- ------- -------
Non-interest expenses:
Salaries and employee benefits 1,628 1,529 3,228 3,018
Occupancy expenses 262 229 541 488
Furniture and equipment 223 209 441 433
Data processing 163 137 343 273
Stationery, supplies and postage 85 89 161 180
Other non-interest expense 628 569 1,171 1,102
------- ------- ------- -------
Total non-interest expenses 2,989 2,762 5,885 5,494
------- ------- ------- -------
Income before income taxes 557 501 1,047 1,079
Provision for income taxes 168 154 320 338
------- ------- ------- -------
Net income $389 $347 $727 $741
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