Chicopee Bancorp, Inc. Reports Year End Results.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: CBNK), 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"), announced the results of operations for the three months and year ended December December: see month. 31, 2007. The Company's net income for the three months ended December 31, 2007 was $107,000 compared to $369,000 for the same period in 2006. The decrease in net income for the quarter is primarily due to an increase in salaries and employee benefits expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc expenses associated with the 2007 Equity Incentive Plan. For the year ended December 31, 2007, net income increased $4.1 million to $1.6 million with earnings per share of $0.24 as compared to a net loss of $2.5 million for the year ended December 31, 2006. The Company's net loss for the year ended December 31, 2006 was a result of a charitable contribution charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. of the Company's common stock in the amount of $5.5 million to the Chicopee Savings Bank Charitable Foundation in connection with the Company's public offering. The Company's assets increased by $13.4 million, or 3.0%, from $450.0 million at December 31, 2006 to $463.4 million at December 31, 2007, primarily as a result of an increase in loans of $10.9 million, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $8.1 million as well as federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold of $7.5 million. The loan growth was offset by maturities of securities held-to-maturity of $10.1 million. The increase in short-term investments and federal funds sold was primarily due to an increase in deposits of $13.4 million. Net loans increased to $379.9 million at December 31, 2007 from $369.0 million at December 31, 2006, with one-to-four family real estate loans increasing $10.3 million, or 7.2% and consumer loans increasing $2.1 million, or 8.5% which were partially offset by decreases in construction loans of $1.3 million or 3.2% and commercial loans of $533,000 or 1.2%. Financial highlights include: * The investment portfolio decreased by $10.1 million, or 22.3%, to $35.2 million as of December 31, 2007 compared to $45.3 million at December 31, 2006, primarily due to maturities of held-to-maturity securities Held-to-Maturity Securities Debt securities that a firm has the ability and intent to hold until maturity. Notes: These are reported at amortized cost, therefore, they are not affected by swings in the financial markets. See also: Debt, Maturity . * Total deposits were $325.0 million at December 31, 2007 compared to $311.6 million at December 31, 2006, an increase of $13.4 million or 4.3%. During the period certificates of deposit increased by $16.4 million, or 8.6%, and money market deposits increased by $1.5 million, or 4.3%, offset slightly by a decrease in demand deposit accounts of $1.9 million, or 6.6%, and NOW accounts of $1.7 million, or 10.5%. The growth in deposits was a result of aggressive deposit pricing. * The allowance for loan losses at December 31, 2007 was $3.1 million, or 0.80% of total loans, compared to $2.9 million, or 0.78% of total loans as of December 31, 2006. Nonperforming loans at December 31, 2007 were $1.0 million, or 0.26% of total loans, decreasing $697,000 from $1.7 million, or 0.46% of total loans as of December 31, 2006. * The provision for loan losses was $9,000 for the three months ended December 31, 2007 compared to $105,000 for the same period in 2006. For the year ended December 31, 2007, the provision for loan losses decreased to $223,000 from $440,000 for the year ended December 31, 2006. The decrease in the provision for loan losses during both periods was due in part to the decrease in construction loans as well as commercial loans and higher asset quality. * During the quarter ended December 31, 2007, the net interest margin decreased to 3.32%, as compared to 3.45% for the fourth quarter of 2006. The decrease of 13 basis points 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. of 23 basis points partially offset by the increase in assets yield of 10 basis points. For the year ended December 31, 2007, net interest margin was 3.35% compared to 3.49% for the year ended December 31, 2006, a decrease of 14 basis points due to the cost of funds increasing faster than the yield on assets. * Non-interest income was $633,000 for the quarter ended December 31, 2007 compared to $335,000 for the quarter ended December 31, 2006. The increase during the period was primarily attributable to an increase in income from service charges, fees and commissions of $171,000 as well as the gain of $121,000 from the sale of available-for-sale securities. For the year ended December 31, 2007, non-interest income was $2.7 million, an increase of $1.1 million or 66.8%, compared to $1.6 million for the same period in 2006. The increase for the year ended December 31, 2007 was primarily due to an increase of $810,000 in gain on sales of available-for-sale securities and an increase of $404,000 in service charges, fees and commissions. The increase was partially offset by a decrease in loan sales and servicing. The increase in income from service charges, fees and commissions for both periods was related to increased deposit account transaction fees and investment services commissions. * Non-interest expense for the three months ended December 31, 2007 was $3.8 million compared to $3.3 million for the same periods in 2006. The increase of $488,000 was primarily due to the increase in salaries and employee benefit expense of $537,000 attributable to additional staffing needs to support the requirements of a public company and increased benefit costs associated with the Bank's Employee Stock Ownership Plan and the Company's Equity Incentive Plan. This increase was partially offset by a decrease in other non-interest expenses of $78,000 for the three months ended December 31, 2007. Non-interest expense for the year ended December 31, 2007 was $14.2 million, a decrease of $3.7 million from $17.9 million for the same period in 2006 primarily due to the establishment and funding of the Chicopee Savings Bank Charitable Foundation with 551,064 shares of the Company's common stock resulting in a charitable contribution expense of $5.5 million during the third quarter of 2006. This was partially offset by an increase in salaries and employee benefit expense of $1.6 million for the year ended December 31, 2007 attributable to additional staffing needs to support the requirements of a public company and increased benefit costs associated with the Bank's Employee Stock Ownership Plan and the Company's Equity Incentive Plan. * Income tax expense for the three months and year ended December 31, 2007 was $305,000 and $1.0 million compared to $160,000 and a tax benefit of $577,000, respectively, for the same periods in 2006. The increase in income tax expense for the three months ended December 31, 2007 is primarily due to the increase of $200,000 in the deferred tax valuation allowance relating to our contribution to the Chicopee Savings Bank Charitable Foundation as part of our stock offering. Based on the narrowing of our net interest margin and current market conditions, management has increased the valuation allowance against the deferred tax benefit to $1.0 million as of December 31, 2007, reducing our charitable contribution carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. to an amount we estimate can be fully utilized. The increase in income tax expense for the year ended December 31, 2007 is mainly attributable to the tax benefit received from the Company's common stock contribution in the amount of $5.5 million to the charitable foundation during the third quarter of 2006. * Total 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. at December 31, 2007 was $104.3 million, a decrease of $4.1 million, or 3.8% from December 31, 2006, resulting mainly from the purchase of 297,574 shares of the Company's common stock to fund the trust which will be used to fund restricted stock awards under the Company's 2007 Equity Incentive Plan, at a cost of $4.4 million as well as the purchase of 155,000 shares of the Company's common stock through the Company's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, at a cost of $2.1 million, partially offset by net income for the period. 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 01013.
Chicopee Savings Bank provides a wide variety of financial products and
services through its six 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.chicopeesavings.com.
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 Form 10-Q See 10-Q. and its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion