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IPSWICH SAVINGS BANK COMPLETES CONVERSION; REPORTS FIRST QUARTER RESULTS

 IPSWICH, Mass., June 15 /PRNewswire/ -- On May 25, 1993, Ipswich Savings Bank (NASDAQ Small Caps: IPSW) completed its conversion from a mutual form savings bank to a stock form savings bank. The conversion was effected through the sale of the bank's common stock at a price of $10 per share in a subscription and community offering. Originally, 200,000 shares of common stock were offered. Due to demand for the stock, the bank exercised its oversubscription option, issuing an additional 30,000 shares. As a result, the bank now has 230,000 shares outstanding.
 Gross proceeds from the conversion totaled $2.3 million. After conversion-related expenses, the bank increased its stockholder's equity by approximately $1.9 million. The bank's Tier 1 Leverage Capital Ratio, as of May 28, 1993, was 6.49 percent, and the Total Risk-based Capital Ratio was 11.72 percent.
 Ipswich Savings Bank reported net income for the quarter ended March 31, 1993, of $68,000, compared to net income of $50,000 for the first quarter of 1992. No per share results were reported since no shares were outstanding during the quarter. Contributing to the increased net income was an increase in net interest dividend income, which totaled $776,000 for the first quarter of 1993, compared to $729,000 for the first quarter of 1992. This increase reflects the continued decline in interest rates. Non-interest income totaled $262,000 for the first quarter of 1993, compared to $164,000 for the first quarter of 1992. This increase was primarily due to gains on the sales of mortgage loans originated by the bank's mortgage banking operation. These gains totaled $119,000 for the first quarter of 1993, compared to no gains recognized in the first quarter of 1992.
 Non-interest expenses were $903,000 for the first quarter of 1993 compared to $768,000 for the first quarter of 1992. The increase in non- interest expenses was primarily from salaries and employee benefits and the provision for possible OREO losses. Salaries and employee benefits were $348,000 for the first quarter of 1993, compared to $277,000 for the first quarter of 1992. The increases are primarily the result of additional staffing in the residential loan origination function. Full- time equivalent employees for the first quarter of 1993 were 39, compared to 34 for the first quarter of 1992. During the quarter, a provision of $124,000 for possible OREO losses was made, compared to $21,000 during the first quarter of 1992.
 Total non-performing assets as a percentage to total assets decreased during the first quarter to 6.38 percent from 7.38 percent at Dec. 31, 1992, and 9.01 percent at March 31, 1992. The allowances for possible loan and OREO losses were also increased during the quarter. The allowance for possible loan losses totaled $1.8 million at the end of the first quarter, representing 147.8 percent of non-accrual loans, compared to 97.8 percent at Dec. 31, 1992, and 86.9 percent at March 31, 1992. The allowance for possible OREO losses was $565,000 at March 31, 1993, compared to $507,000 at Dec. 31, 1992, and $310,000 at March 31, 1992.
 At March 31, 1993, Ipswich Savings Bank had total assets of $82.5 million, total deposits of $72.0 million, total loans of $53.9 million and total equity of $3.3 million.
 Ipswich Savings Bank is a state-chartered stock savings bank headquartered in Ipswich. The bank operates three banking offices and two loan production offices, which generate residential loan originations throughout Essex County. The bank is a member of the Federal Deposit Insurance Corporation (FDIC) and the Deposit Insurance Fund (DIF).
 Shareholder Information Stock Listing
 The common stock is traded over the counter on the NASDAQ Small Capitalization System under the symbol: IPSW.
 Inquiries:
 Ipswich Savings Bank
 23 Market St.
 Ipswich, Mass. 01938
 David L. Grey, president and chief executive officer
 508-356-2971
 Market Makers:
 Arthur W. Wood Company, Inc.
 185 Devonshire St./Suite 11
 Boston, Mass. 02110-1407
 617-542-4224
 Friedman Billings Ramsey & Co., Inc.
 1919 Pennsylvania Ave., N.W.
 Suite 610
 Washington, D.C. 20006
 202-775-4615
 H.C. Wainwright & CO.
 1 Boston Place/31st Floor
 Boston, Mass. 02108
 617-227-3100
 Moors & Cabot, Inc.
 111 Devonshire St.
 Boston, Mass., 02109
 617-426-7320
 IPSWICH SAVINGS BANK AND SUBSIDIARIES
 Consolidated Statement of Income
 (Dollars in thousands, except for per share data)
 Three months ended March 31 1993 1992
 Interest and dividend income:
 Loans $1,228 $1,474
 Mortgage-backed securities 93 114
 Interest and dividends on securities 22 61
 Short-term investment 9 14
 Total interest and dividend income 1,352 1,663
 Interest expense:
 Deposits 571 919
 Borrowed funds 5 15
 Total interest expense 576 934
 Net interest and dividend income 776 729
 Provision for possible loan losses 67 75
 Net interest and dividend income after
 provision for possible loan losses 709 654
 Non-interest Income:
 Loan servicing fees 56 52
 Customer service fees 62 73
 Other loan fees 17 25
 Net gains on sales of mortgage loans 119 0
 Net gains on sales of securities 0 7
 Other 8 7
 Total non-interest income 262 164
 Net interest, dividend and
 non-interest income 971 818
 Non-interest expenses:
 Salaries and employee benefits 348 277
 Occupancy and equipment expenses 58 63
 Other 285 247
 Net other real estate owned expense (OREO) 88 160
 Provision for possible OREO losses 124 21
 Total non-interest expenses 903 768
 Income before income taxes 68 50
 Provision for income taxes 0 0
 Net income $68 $50
 IPSWICH SAVINGS BANK AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in thousands)
 3/31/93 12/31/92 3/31/92
 ASSETS
 Cash and due from banks $ 615 $ 700 $ 1,943
 Interest-bearing deposits
 with other banks 1,808 1,007 77
 Federal funds sold 11 3,046 3,034
 Total cash and cash equivalents 2,434 4,753 5,054
 Investment securities 2,253 253 748
 Mortgage-backed securities held for sale 9,924 6,410 8,478
 Loans held for sale 7,038 6,320 0
 Loans 53,863 53,517 59,983
 Allowance for possible loan losses (1,850) (1,750) (1,497)
 Net loans 52,013 51,767 58,486
 Savings Bank Life Insurance
 Company stock 253 253 253
 Federal Home Loan Bank of Boston stock 628 628 628
 Banking premises and equipment, net 2,212 2,215 2,259
 Other real estate owned (OREO) 4,579 4,478 6,068
 Allowance for possible OREO losses (565) (507) (310)
 Net other real estate owned 4,014 3,971 5,758
 Accrued interest receivable 365 314 446
 Deferred premium on loans sold 614 568 385
 Other assets 756 577 565
 Total assets $82,504 $78,029 $83,060
 LIABILITIES AND RETAINED EARNINGS
 Liabilities:
 Deposits $71,974 $73,082 $76,399
 Borrowed funds 4,711 0 2,000
 Mortgagors' escrow accounts 501 330 459
 Deferred income taxes 0 0 91
 Accrued expenses and other liabilities 2,058 1,425 1,097
 Total liabilities 79,244 74,837 80,046
 Retained earnings 3,260 3,192 3,014
 Total liabilities and
 retained earnings $82,504 $78,029 $83,060
 Selected Performance Data
 (As a percent)
 Net interest margin 4.48 4.17 4.23
 Interest rate spread 4.76 4.32 4.79
 Return on assets 0.34 0.28 0.24
 Return on equity 8.39 7.39 6.58
 Tier 1 equity to total assets 3.95 4.09 3.62
 Total equity to risk-weighted assets 7.48 7.41 6.56
 Allowance for possible loan losses
 to non-accrual loans 147.76 97.82 86.88
 Allowance for possible OREO
 losses to OREO 12.34 11.32 5.11
 Total non-performing assets
 to total assets 6.38 7.38 9.01
 Total non-performing assets
 to allowances and equity 102.75 115.01 161.61
 Loans accounted for on a
 non-accrual basis $1,252 $1,789 $1,723
 Loans serviced for others $68,486 $66,006 $56,163
 -0- 6/15/93
 /CONTACT: David L. Grey, president and CEO of Ipswich Savings Bank, 508-356-2971, or Thomas A. Fitzgerald, managing director of Arthur W. Wood Company, Inc., 617-542-0500, for Ipswich Savings Bank/
 (IPSW)


CO: Ipswich Savings Bank ST: Massachusetts IN: FIN SU: ERN

SM-TS -- NY098 -- 2387 06/15/93 17:57 EDT
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Date:Jun 15, 1993
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