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THE BOSTON FIVE REPORTS FIRST QUARTER RESULTS

 THE BOSTON FIVE REPORTS FIRST QUARTER RESULTS
 BOSTON, Feb. 18 /PRNewswire/ -- The Boston Five Bancorp, Inc.


(NASDAQ: BFCS), holding company for The Boston Five Cents Savings Bank FSB, reported a net loss of $2.2 million, or 32 cents per share, for the quarter ended Jan. 31, 1992. This compares with a net loss of $5.6 million, or 80 cents per share, in the quarter ended Jan. 31, 1991. As of Jan. 31, 1992, The Boston Five exceeded all three current Office of Thrift Supervision (OTS) regulatory capital requirements. The Boston Five has a book value of $12.47 per share.
 During the quarter ended Jan. 31, 1992, nonperforming assets (NPAs) decreased by $8.1 million. NPAs totalled $120.8 million on Jan. 31, 1992, compared with $143.2 million on Jan. 31, 1991, and $128.9 million on Oct. 31, 1991. Nonaccrual and restructured loans declined to $66.9 million at Jan. 31, 1992 from $89.9 million at Jan. 31, 1991. At Jan. 31, 1992, 40 percent of the nonaccrual and restructured loans were on 1 to 4 family residential properties. The provision for losses on loans was $4.5 million for the quarter, compared with $1.5 million for the first quarter of 1991. Net chargeoffs during the first quarter of 1992 were $11.3 million and loan loss reserves as of Jan. 31, 1992 were $17.6 million. The corresponding amounts for the first quarter of 1991 were $1.5 million and $28.5 million respectively.
 The current OREO balance is $53.8 million, compared with $53.3 million as of Jan. 31, 1991. The $53.8 million in OREO is net of writedowns and other reductions of $55.9 million, or 41.8 percent, from a starting balance of $133.6 million, and net of $23.9 million in sales of OREO units that were part of construction loans.
 Residential mortgage production totalled $341.5 million for the quarter ended Jan. 31, 1992, compared with $186.2 million in the first quarter of 1991. Total loan production for the quarter was $358.1 million, compared with $203.7 million a year earlier. As of Jan. 31, 1992, The Boston Five was servicing $2.5 billion in mortgages for investors.
 As previously reported, in November, 1991 the bank sold $131.6 million of investment securities realizing a gain of $723,000.
 The proceeds of this sale were used primarily to pay down maturing certificates of deposit and to expand the pipeline of mortgages held for sale in the secondary market. For the quarter, the bank's interest rate spread was 3.04 percent, compared with 2.21 percent for the first quarter of 1991.
 The Boston Five is an issuing bank in the Massachusetts Savings Bank Life Insurance (SBLI) system and will receive a distribution of stock resulting from the recent mutual to stock conversion of the SBLI Company of Massachusetts. The value of this stock is not included in the results reported for the first quarter of 1992. It will be reported as an extraordinary item in the quarter ended April 30, 1992.
 The Boston Five Cents Savings Bank FSB is the largest savings bank headquartered in Massachusetts. Deposits of The Boston Five are insured by th Bank Insurance Fund (BIF) of the Federal Deposit Insurance Corporation (FDIC).
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 (Dollars in thousands except per share amounts)
 Three months ended
 1/31/92 1/31/91
 Interest income $36,884 $49,480
 Interest expense 24,877 39,262
 Net interest income 12,007 10,218
 Prov. for losses on loans 4,501 1,486
 Net interest income
 after provision for
 losses on loans 7,506 8,732
 Non-interest income:
 Loan and other related
 fees 426 323
 Mortgage service fees 2,026 1,827
 Customer service fees 716 770
 Real estate operations,
 net (3,729) (3,028)
 Gain (loss) on
 securities, net 745 (657)
 Gain (loss) on sale of loans
 and servicing, net 2,528 793
 Other income 1,155 162
 Total non-interest income 3,867 190
 Non-interest expenses:
 Salaries & fringe bene. 6,400 6,681
 Occupancy 1,253 1,568
 Data processing 1,007 1,033
 Deposit insurance 1,009 603
 Other 3,933 4,570
 Total non-interest
 expenses 13,602 14,455
 Income (loss) before
 income taxes (2,229) (5,533)
 Provision for (benefit
 from) income taxes 5 81
 Net income (loss) $(2,234) $(5,614)
 Earnings (loss) per
 common share (32 cents) (80 cents)
 Dividends per
 common share --- ---
 Earnings (loss) per share were calculated using
 the following number of common shares:
 Three Months Ended
 1/31/92 1/31/91
 7,043,010 7,039,122
 Conolidated Statements of Financial Condition
 (Dollars in thousands, except per share data)
 1/31/92 10/31/91
 Assets
 Cash and due from banks $32,895 $36,542
 Federal funds sold and securities
 purchased under agreements to resell 10,000 ---
 Investment securities at cost, net
 (market value $147,509 & $56,040) 146,447 55,147
 Securities held for sale,
 at lower of cost or market 6,791 137,781
 Mortgage-backed securities, at cost
 (market value $1,259 and $1,645) 1,223 1,601
 Federal Home Loan Bank stock, at cost 12,026 12,026
 Loans 1,277,790 1,357,370
 Loans held for sale 206,846 159,893
 Loans to joint ventures 9,203 20,927
 Allowance for loan losses (17,646) (24,451)
 Real estate acquired by foreclosure
 or substantively repossessed 53,826 46,979
 Investments in joint ventures, net 16,104 16,388
 Bank premises, furniture &
 equipment, net 57,355 57,672
 Accrued income receivable 12,336 14,276
 Goodwill, net 6,615 6,873
 Purchased and excess mortgage
 servicing rights 37,461 34,570
 Refundable federal and state
 income taxes 209 208
 Other assets 10,711 9,527
 Total assets $1,880,192 $1,943,329
 Liabilities & Stockholders' Equity
 Liabilities
 Deposits $1,702,476 $1,748,528
 Borrowed funds 64,350 74,810
 ESOP debt 6,703 6,962
 Advance payments from mortgagors 8,837 10,751
 Accrued interest payable 4,420 5,701
 Accrued and deferred income taxes 1,033 1,357
 Accrued expenses & other liabilities 4,465 5,371
 Total liabilities 1,792,284 1,853,480
 Stockholders' equity
 Serial preferred stock, authorized
 5 million shares, series authorized:
 series A preferred stock, 200,000 shares,
 none issued and outstanding --- ---
 Common stock, 1 cent par value,
 authorized 20 million shares;
 issued 7,153,847 and 7,141,922
 shares 72 71
 Paid-in capital 41,547 41,514
 Retained earnings 54,357 56,591
 Treasury stock, 102,800 shares,
 at cost (1,365) (1,365)
 ESOP debt (6,703) (6,962)
 Total stockholders' equity 87,908 89,849
 Total liabilities and
 stockholders' equity $1,880,192 $1,943,329
 Net Interest Margin, Ratios and Average Balances (a)
 (Dollars in thousands)
 Three Months Ended
 1/31/92 1/31/91
 Net interest margin 2.82 pct. 2.01 pct.
 Interest rate spread:
 For the period 3.04 pct. 2.21 pct.
 At the end of the period 3.33 pct. 2.28 pct.
 Net income (loss) as a percentage of:
 Average assets (0.47 pct.) (0.99 pct.)
 Average equity (9.92 pct.) (20.90 pct.)
 Average equity to average assets 4.72 pct. 4.72 pct.
 Average assets $1,909,507 $2,275,145
 Average earning assets $1,721,548 $2,083,574
 Average loans, net $1,520,097 $1,658,735
 Average equity $90,051 $107,432
 NOTE: (a) annualized where appropriate
 Loan Production
 (Dollars in thousands)
 Three Months Ended
 1/31/92 1/31/91
 Residential mortgages:
 Fixed-rate $306,348 $157,503
 Adjustable-rate (ARM) 35,125 28,730
 Total residential mortgages 341,473 186,233
 Commercial real estate 240 --
 Construction 4,113 150
 Commercial -- --
 Education 6,309 7,068
 Other consumer 5,930 10,204
 Total loan production $358,065 $203,655
 Selected Data
 (Dollars in thousands, except per share data)
 1/31/92 10/31/91
 Number of:
 Retail banking offices 25 25
 Loan centers 15 15
 Full time employees 719 720
 Part time employees 107 87
 Dollar volume of
 residential mortgages
 serviced for others $2,530,337 $2,388,414
 Loans on nonaccrual $60,930 $75,873
 Nonaccrual loans as a
 percentage of total assets 3.2 pct. 3.9 pct.
 Restructured loans $6,000 $6,000
 Loan loss reserve as a
 percentage of total loans 1.2 pct. 1.6 pct.
 Book value per common share $12.47 $12.76
 Regulatory capital ratios
 Tangible (1.5 pct. required) 4.3 pct. 4.3 pct.
 Leverage (3.0 pct. required) 4.5 pct. 4.5 pct.
 Risk-weighted (7.2 pct. required 8.5 pct. 8.1 pct.
 -0- 2/18/92
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of The Boston Five, 617-742-6000, ext., 2107/
 (BFCS) CO: Boston Five Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN


EG-DH -- NE012 -- 0195 02/18/92 18:20 EST
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Date:Feb 18, 1992
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