Interchange Financial Services Corporation's Earnings Maintains Upward Trend.Business Editors SADDLE saddle, seat or pad to support the rider on an animal, chiefly a horse. The saddles mentioned in the Bible are generally considered to have been saddlecloths. The ancient Greeks sometimes used saddlecloths, but they had no saddles and often rode bareback. BROOK, N.J.--(BUSINESS WIRE)--Jan. 19, 2000 Anthony S. Abbate, President and Chief Executive Officer of Interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
Please [ improve this article] or discuss the issue on the talk page. Corporation ("Interchange") (AMEX AMEX See: American Stock Exchange :IFC (Internet Foundation Classes) A class library from Netscape that provides an application framework and graphical user interface (GUI) routines for Java programmers. IFC was later made part of the Java Foundation Classes (JFC). See JFC, AFC and AWT. See also ICF. ), has reported that earnings for the year ended December December: see month. 31, 1999, were $9.6 million, up $1.0 million or 11.9% from $8.6 million for the same period in 1998. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per common share were $1.36 for the year ended December 31, 1999 as compared to $1.19 for the same period in 1998, an increase of 14.3%. Adjusted for gains on sale of securities of $927 thousand, in the fourth quarter of 1998, net income for the quarter ended December 31, 1999 increased $108 thousand to $2.2 million from $2.1 million in the fourth quarter of 1998. Adjusted for the net of tax gains on sale of securities in the fourth quarter of 1998, diluted earnings per common share increased $.04 per share or 14.3% to $.32 for the quarter ended December 31, 1999 as compared to the prior comparable period. For the year ended December 31, 1999, two of the Company's key performance ratios, Return on Average Assets and Return on Average Equity were 1.39% and 15.52%, respectively. The Company's non-performing assets decreased $224 thousand or 12.4% to $1.6 million at December 31, 1999 as compared to the prior comparable period. Further, the allowance for loan losses as a percent of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. improved to 409.6% at December 31, 1999 as compared to 327.1% at December 31, 1998. For the year ended December 31, 1999, net interest income, on a taxable equivalent basis, increased $1.7 million or 5.7%. The increase was due largely to an improvement in the Company's 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. , which decreased 33 basis points to 3.01% for the year ended December 31, 1999. In addition, loan growth, which amounted to $31.7 million on average or 6.9% over the same period in 1998, contributed to the increase in net interest income. For the year ended December 31, 1999, the net interest margin improved 2 basis points to 4.64% from 4.62% for the same period in 1998. For the fourth quarter of 1999, net interest income, on a taxable equivalent basis, increased $325 thousand or 4.4%. A growth in loans, which amounted to $33.9 million on average or 7.2%, was principally responsible for the increase over the same period in 1998. For the fourth quarter of 1999, the net interest margin declined 3 basis points to 4.60% from 4.63% for the same period in 1998. During the quarter the bank increased its cash on hand significantly in anticipation of withdrawals by customers concerned with the Y-2K phenomenon. The Y-2K concern caused a decline in deposits at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999 to a level equivalent to year-end 1998. These events reduced investable assets and caused the bank to increase its borrowings, which adversely effected earnings for the fourth quarter. Non-interest income, including net gains on the sale of securities, for the year ended December 31, 1999 was $5.3 million, an increase of $411 thousand or 8.3% as compared to the same period in 1998. The increase was driven largely by gains of $416 thousand from the sale of the Company's VISA and merchant portfolios and an increase of $508 thousand in income recognized from purchase discounts related to the early pay-off of commercial loans. These benefits were partly offset by a decline in net gains on the sale of securities and service charge income of $162 thousand and $250 thousand, respectively. For the fourth quarter of 1999, non-interest income, including net gains on the sale of securities, was $866 thousand, a decrease of $1.2 million or 58.2% as compared to the same period in 1998. The decrease was attributable, in part, to gains of $927 thousand from the sale of debt and equity securities during the fourth quarter of 1998. Non-interest expenses for the year ended December 31, 1999 were $20.1 million, an increase of $647 thousand or 3.3%. Adjusted for 1998 merger-related expenses and a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. benefit related to the cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of certain insurance policies, non-interest expenses increased $1.6 million or 8.5%, respectively, as compared to the same period in 1998. The increase in non-interest expenses can be largely attributed to normal growth and the entire year's cost of a new branch office in Paramus, New Jersey Paramus (IPA: /pəˈræməs/) is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 25,737. , which opened in the fourth quarter of 1998. For the three months ended December 31, 1999, non-interest expenses were $5.0 million, an increase of $91 thousand or 1.9%. The increase in non-interest expenses can be attributed largely to normal growth and the start-up Start-up The earliest stage of a new business venture. costs associated with Interchange Capital Company and a new call center. On December 22, 1999, Interchange announced that its subsidiary, Interchange Bank, has formed an equipment lease-financing subsidiary to be known as Interchange Capital Company ("ICC"). ICC ICC See: International Chamber of Commerce will provide flexible equipment lease financing programs for businesses and the manufacturing, healthcare, and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר . "The introduction of a separate lease financing company is a natural extension of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. commitment to assisting local business and industry in their growth and expansion plans", said Mr. Abbate. During the fourth quarter, Interchange established a new full service call center, Interchange Bank-line Center ("Bank-line Center"). It is an alternative delivery system designed to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound calls and give our customers the opportunity to open new accounts and apply for consumer credit without the need to go to a branch. "More significantly, it will expand the scope of service and individual attention our customers receive", Mr. Abbate said. In addition, the Bankline Bankline is an interbank network of South Korea, for regional banks. Members
• Center will be utilized as an outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. resource for contacting targeted prospects for new accounts in conjunction with current product promotions. Interchange has a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program in progress that was announced on June June: see month. 2, 1999, which authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 10% or approximately 720 thousand of Interchange's outstanding common stock. The repurchased shares will be held as treasury stock and will be principally used for the exercise of stock options, incentive plan stock awards and other general corporate purposes. During the fourth quarter, the Company repurchased approximately 167 thousand of its common shares pursuant to this program. As of December 31, 1999, the Company has repurchased approximately 494 thousand or 4.6% of its common shares pursuant to this program. Interchange is a $706.1 million-asset commercial bank holding company whose principal subsidiary is Interchange Bank ("Bank"). The Bank maintains its headquarters in Saddle Brook, New Jersey Saddle Brook is a township in Bergen County, New Jersey, United States. As of the United States 2000 Census, the township population was 13,155. Saddle Brook adopted its current name on November 8, 1955, replacing Saddle River Township. . It has 15 branch offices located in Elmwood Park Elmwood Park, village (1990 pop. 23,206), Cook co., NE Ill., a suburb of Chicago; inc. 1914. It is chiefly residential. , Franklin Lakes, Garfield Garfield, industrial city (1990 pop. 26,727), Bergen co., NE N.J., on the Passaic at its confluence with the Saddle River; settled 1679 by the Dutch, inc. 1898. Manufactures include paper products, rubber, and printing machinery. , Hillsdale Hillsdale, borough (1990 pop. 9,750), Bergen co., NE N.J.; inc. 1923. It is primarily residential. , Little Ferry, Lodi Lodi, city, Italy Lodi (lô`dē), city (1991 pop. 42,250), Lombardy, N Italy, on the Adda River, near Milan. It is an important dairy and light industrial center. , Montvale Montvale may mean:
Further information on the bank, our core values and focus, and our products and services can be found on our web site at www.interchangebank.com. There is also a direct link from our web site to the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. to allow you to keep well informed of the daily quotes and market activity for Interchange Financial Services Corporation stock. Interchange Financial Services Corporation trades on the American Stock Exchange under the symbol IFC. This release contains certain 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The forward-looking statements, either expressed or implied, concern anticipated future financial performance. Such statements are not historical fact and involve certain risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from what we currently anticipate will happen as a result of, but not limited to, changes in economic condition, interest rate fluctuations, levels of deposit and loan growth, loan quality and the successful implementation of its Year 2000 Plan. Interchange assumes no obligation to publicly announce changes in forward-looking statements that are no longer accurate, whether as a result of new information, what actually happens in the future or for any other reason.
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
Fourth Quarter
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Dollars in thousands except per share data
1999 1998 $Change %Change
----------------------------------------------------------------------
Income/Expense
Net Interest income (actual) $7,697 $7,393 $304 4.1 %
Tax equivalent adjustment 48 27 21 77.8
Net interest income
(taxable equivalent) 7,745 7,420 325 4.4
Provision for loan losses 300 310 (10) (3.2)
Net gain on sale of securities 0 927 (927) (100.0)
Non-interest income 866 1,146 (280) (24.4)
Non-interest expenses 4,958 4,867 91 1.9
Net income 2,167 2,657 (490) (18.4)
Acquisition expenses,
net of tax effect - - - 0.0
Net income
(before acquisition costs) 2,167 2,657 (490) (18.4)
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Per share data (before
deducting acquisition costs)
Basic earnings per common share $0.32 $0.37 ($0.05) (13.5)%
Diluted earnings per common
share and share equivalents $0.32 $0.37 ($0.05) (14.1)
Dividends declared 0.12 0.10 0.02 20.0
Book value - end of period
Per share data (after
deducting acquisition costs)
Basic earnings per common share $0.32 $0.37 ($0.05) (13.5)%
Diluted earnings per common
share and share equivalents $0.32 $0.37 ($0.05) (14.1)
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Key ratios (before deducting
acquisition costs)
Return on average assets 1.23 1.59 (0.36) (22.6)
Return on average equity 14.60 17.29 (2.69) (15.6)
Key ratios (after deducting
acquisition costs)
Return on average assets 1.23 % 1.59% (0.36)% (22.6)
Return on average equity 14.60 17.29 (2.69) (15.6)
Net interest margin 4.60 4.63 (0.03) (0.7)
Leverage ratio
Risk weighted ratios:
Tier 1
Total
Weighted average shares outstanding
Basic 6,784,944 7,199,463
Diluted 6,817,485 7,247,818
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Shares outstanding - end
of period 6,728,098 7,200,133
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Year Ended December 31,
Dollars in thousands except per share data
1999 1998 $Change %Change
----------------------------------------------------------------------
Income/Expense
Net Interest income (actual) $30,518 $28,956 $1,562 5.4 %
Tax equivalent adjustment 158 53 105 198.1
Net interest income
(taxable equivalent) 30,676 29,009 1,667 5.7
Provision for loan losses 1,200 951 249 26.2
Net gain on sale of securities 859 1,021 (162) (15.9)
Non-interest income 4,480 3,907 573 14.7
Non-interest expenses 20,063 19,416 647 3.3
Net income 9,635 8,609 1,026 11.9
Acquisition expenses, net
of tax effect - 898 (898)(100.0)
Net income (before
acquisition costs) 9,635 9,507 128 1.3
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Per share data (before
deducting acquisition costs)
Basic earnings per common share $1.37 $1.32 $0.05 3.6 %
Diluted earnings per common
share and share equivalents $1.36 $1.31 $0.05 3.8
Dividends declared 0.48 0.40 0.08 20.0
Book value - end of period 8.66 8.66 - 0.0
Per share data (after deducting
acquisition costs)
Basic earnings per common share $1.37 $1.20 $0.17 14.4 %
Diluted earnings per common
share and share equivalents $1.36 $1.19 $0.17 14.3
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Key ratios (before deducting
acquisition costs)
Return on average assets 1.39 % 1.44 % (0.05)% (3.5)
Return on average equity 15.52 16.05 (0.53) (3.3)
Key ratios (after deducting
acquisition costs)
Return on average assets 1.39 % 1.31 % 0.08 % 6.1
Return on average equity 15.52 14.53 0.99 6.8
Net interest margin 4.64 4.62 0.02 0.4
Leverage ratio 8.32 9.08 (0.76) (8.4)
Risk weighted ratios:
Tier 1 12.72 13.80 (1.08) (7.8)
Total 13.91 15.12 (1.21) (8.0)
Weighted average shares outstanding
Basic 7,030,883 7,189,239
Diluted 7,062,387 7,237,594
----------------------------------------------------------------------
Shares outstanding - end
of period 6,728,098 7,200,133
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INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
Fourth Quarter
-------------------------------------
Dollars in thousands
except per share data 1999 1998 $Change %Change
----------------------------------------------------------------------
Average balances
Loans $506,702 $472,765 $33,937 7.2 %
Securities 162,922 143,186 19,736 13.8
Earning assets 673,464 641,425 32,039 5.0
Total Assets 705,839 668,575 37,264 5.6
Interest bearing deposits 511,482 484,551 26,931 5.6
Noninterest bearing
deposits 101,579 101,020 559 0.6
Other interest bearing
liabilities 26,847 19,068 7,779 40.8
Shareholders' equity 59,353 61,461 (2,108) (3.4)
----------------------------------------------------------------------
Period end
Assets
Loans
Deposits
Shareholders' equity
----------------------------------------------------------------------
Asset quality
Net charge offs
Total $106 $158 ($52) (32.9)
As % of average
loans (annualized) 0.08 % 0.13 % (0.05)% (38.5)
Loan loss allowance
Total
As % of period-end loans
As % of nonperforming loans
Nonperforming assets
Total
Nonperforming loans
Foreclosed real estate
Nonperforming assets as a percent
of loans plus other real estate owned
----------------------------------------------------------------------
Year Ended December 31,
-------------------------------------
Dollars in thousands
except per share data 1999 1998 $Change %Change
----------------------------------------------------------------------
Average balances
Loans $494,022 $462,296 $31,726 6.9 %
Securities 154,887 136,861 18,026 13.2
Earning assets 661,051 627,499 33,552 5.3
Total Assets 690,958 658,016 32,942 5.0
Interest bearing deposits 501,856 475,743 26,113 5.5
Noninterest bearing
deposits 102,194 94,568 7,626 8.1
Other interest bearing
liabilities 19,802 24,551 (4,749) (19.3)
Shareholders' equity 62,094 59,251 2,843 4.8
----------------------------------------------------------------------
Period end
Assets $706,125 $685,364 $20,761 3.0 %
Loans 511,976 478,717 33,259 6.9
Deposits 598,992 598,732 260 0.0
Shareholders' equity 58,276 62,372 (4,096) (6.6)
----------------------------------------------------------------------
Asset quality
Net charge offs
Total $1,370 $537 $833 155.1 %
As % of average
loans (annualized) 0.28 % 0.12 % 0.16 % 133.3
Loan loss allowance
Total $5,476 $5,645 ($169) (3.0)
As % of period-end loans 1.07 % 1.18 % (0.11)% (9.3)
As % of nonperforming
loans 409.56 327.06 82.50 25.2
Nonperforming assets
Total $1,587 $1,811 ($224) (12.4)
Nonperforming loans 1,337 1,726 (389) (22.5)
Foreclosed real estate 250 85 165 194.4
Nonperforming assets as
a percent of loans plus
other real estate owned 0.31 % 0.38 % (0.07)% (18.4)
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