Port Financial Corp. Reports First Quarter Earnings.Business Editors CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass.--(BUSINESS WIRE)--April 19, 2000 Port Financial Corp. (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 :PORT), the holding company for Cambridgeport Cambridgeport is one of the neighborhoods of Cambridge, Massachusetts. It is bounded by Massachusetts Avenue, the Charles River, MIT, and Harvard. The commercial district is Central Square, which is also the the name of its subway/MBTA (locally called the T) stop, on the Red Line. Bank, reported today net income of $1.1 million for the quarter ended March 31, 2000, compared to $1.4 million for the quarter ended March 31, 1999. The results of operations for these periods do not reflect the company's conversion and stock offering which were completed on April 11, 2000. Non-recurring items affected earnings in each period. In the 1999 first quarter, interest income was boosted by $355,000, reflecting prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. fees on commercial real estate loans and a loan recovery. In the current period, noninterest income was reduced by $135,000 because of a change in 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 life insurance policies that occurred when the underlying assets were converted from equity investments to long term fixed return investments. Net interest income totaled $6.5 million for the current quarter compared to $6.1 million, an increase of $431,000, or 7.1%, compared with the first quarter of 1999. This resulted primarily from an increase of $77.1 million, or 11.5%, in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , principally in residential real estate and home equity loans. The Company's net interest margin declined by 20 basis points to 3.47% in the first quarter of 2000 from 3.67% in the 1999 period, including one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items. Excluding the non-recurring interest income items mentioned above, the net interest margin was virtually unchanged on a year-over-year basis. "We are very pleased with our first quarter performance which, when adjusted for one time items, reflected seven percent growth in net income and continued growth in our core businesses," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. B. Keegan Keegan is both a forename and a surname, and may refer to: In acting:
The Company's total assets increased $98.1 million, or 12.9%, to $860.8 million at March 31, 2000 from $762.7 million at December December: see month. 31, 1999. This growth included $67.5 million of funds received in connection with the stock conversion transaction, which will be reflected in the Company's equity in the second quarter. These funds, which were held in an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. deposit account, were invested primarily in overnight fed funds fed funds See federal funds. as of March 31, 2000, pending final 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. approvals of the conversion transaction. Other areas of asset growth in the quarter included residential real estate loans, and an increase in fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → in connection with the construction of its new administrative center building. 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. were $115,000 at March 31, 2000, compared to $128,000 at December 31, 1999. The provision for loan losses amounted to $166,000 in the March 31, 2000 quarter, compared with $140,000 the first quarter of 1999. The allowance for possible loan losses stood at $7.2 million as of March 31, 2000. Total noninterest income declined $311,000 in the first quarter of 2000 compared to the 1999 first quarter, primarily because of reductions in loan sale gains and cash surrender value of life insurance policies. Loan sale gains, resulting primarily from the sale of fixed rate residential mortgages, were reduced by $221,000, or 91.0%, reflecting a decline in fixed rate mortgage loan applications in the quarter, because of an increase in mortgage rates and corresponding increase in adjustable rate mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. loan applications. As noted above, the cash surrender value of life insurance policies declined $135,000 during the current quarter, which reduced non-interest income compared with the first quarter of 1999. Customer service fees increased $32,000, or 16.49%, as a result of the Company's successful strategy of acquiring more core transaction accounts, such as checking accounts, from customers affected by regional merger activity. Noninterest expense increased $472,000, or 10.6%, to $4.9 million in the quarter ended March 31, 2000 compared to $4.5 million for the same period in 1999. Salaries and benefits increased $379,000, or 16.2%, reflecting annual wage increases as well as additional staff supporting the Company's expansion into business banking. Marketing expenses increased $78,000 because of increased promotional activities designed to attract customers. Port Financial Corp. (NASDAQ:PORT) is the holding company for Cambridgeport Bank, a Massachusetts-chartered bank with ten branches and a telebanking center in the Greater Boston Greater Boston is the area of the Commonwealth of Massachusetts surrounding the city of Boston, Massachusetts. While Metro Boston tends to be the "Inner Core" surrounding the City of Boston, Greater Boston overlaps the North and South Shores, as well as the MetroWest region. area. Port Financial Corp. received regulatory approval to complete its offering of common stock in connection with the conversion of Cambridgeport Mutual Holding Company to a stock holding company on April 11, 2000, and its common stock began trading on the NASDAQ National Market on April 12, 2000. The Company sold 7,442,818 shares of common stock at a price of $10 per share to eligible depositors of the Bank and to the Bank's employee stock ownership plan ("ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ") in the stock offering. The ESOP is expected to purchase additional shares in the open market in order to achieve the maximum ownership provided for in the Plan of Conversion. The Plan allows the ESOP to acquire an amount equal to 8% of the number of shares sold in the offering. This release contains 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 may be identified by the use of such words as "believe," "expect," "planned." and "potential." These statements are subject to various factors, which could cause actual results to differ materially. Such factors include, but are not limited to, general and local economic conditions, changes in interest rates, deposit flows, demand for mortgages and other loans, real estate values, competition, changes n accounting principles, practices, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products and services.
CAMBRIDGEPORT MUTUAL HOLDING COMPANY (a)
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2000 1999
ASSETS (In Thousands)
Cash and due from banks $ 9,231 $ 16,594
Federal funds sold 63,735 --
Other cash equivalents 4,014 2,835
Total cash and cash equivalents 76,980 19,429
Certificates of deposit 2,353 5,149
Investment securities held to maturity 17,853 --
Investment securities available-for-sale
at fair value 126,714 131,647
Loans held-for-sale 230 --
Loans, net 597,855 577,029
Federal Home Loan Bank Stock, at cost 4,951 4,452
Savings Bank Life Insurance Stock, at cost 1,934 1,934
Banking premises and equipment, net 19,125 11,782
Accrued interest receivable 4,916 4,054
Other assets 7,908 7,265
Total assets $860,819 $762,741
LIABILITIES AND RETAINED EARNINGS
Deposits $724,480 $618,288
Federal Home Loan Bank advances 45,697 55,891
Mortgagors' escrow payments 3,654 3,031
Accrued expenses and other liabilities 7,003 6,401
Total liabilities 780,834 683,611
Commitments and contingencies
Retained earnings 78,348 77,221
Accumulated other comprehensive income 1,637 1,909
Total retained earnings 79,985 79,130
Total liabilities and
retained earnings $860,819 $762,741
(a) Cambridgeport Mutual Holding Company changed its name to Port
Financial Corp. in connection with its conversion and common stock
offering.
CAMBRIDGEPORT MUTUAL HOLDING COMPANY
Consolidated Statement of Operations
(Unaudited)
Three Months Ended
March 31,
2000 1999
(In Thousands)
Interest and dividend income:
Interest on loans $ 11,140 $ 9,942
Interest and dividends on investment
securities 2,264 2,138
Interest on other cash equivalents 206 182
Interest on certificates of deposit 87 101
Total interest and dividend income 13,697 12,363
Interest expense:
Interest on deposits 6,531 5,770
Interest on borrowed funds 668 526
Total interest expense 7,199 6,296
Net interest income 6,498 6,067
Provision for possible loan losses 166 140
Net interest income after
provision for possible loan losses 6,332 5,927
Noninterest income:
Customer service fees 226 194
Net gain on sale of investment
securities, net -- --
Gain on sale of loans, net 22 243
Loan servicing fee income 130 129
Increase (decrease) in cash surrender value (135) --
Other income 143 131
Total noninterest income 386 697
Noninterest expense:
Salaries and employee benefits 2,722 2,343
Occupancy and equipment expense 752 813
Data processing service fees 380 323
Marketing 302 224
Other noninterest expense 773 754
Total noninterest expenses 4,929 4,457
Income before provision for income taxes 1,789 2,167
Provision for income taxes 662 787
Net income $ 1,127 $ 1,380
CAMBRIDGEPORT MUTUAL HOLDING COMPANY
Selected Financial Ratios
(Unaudited)
Three Months Ended March 31,
2000 1999
Performance ratios:
Net interest margin 3.47% 3.67%
Return on average assets 0.58% 0.81%
Total non-interest expense to
average assets 2.53% 2.61%
Capital and asset quality data:
At March 31, At December 31,
2000 1999
Equity to total assets at end of period 9.29% 10.37%
Non-performing assets as a percent of
total assets 0.01% 0.02%
Allowance for loan losses as a percent of
total loans 1.20% 1.21%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion