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TOLLAND BANK REPORTS FOURTH QUARTER AND YEAR EARNINGS

 VERNON, Conn., Jan. 27 /PRNewswire/ -- Tolland Bank (AMEX: TBK) today reported net income for the fourth quarter of 1992 of $134,000, or $.12 per share, versus a net loss of $263,000, or $.23 per share in the comparable quarter of 1991. For the year ended Dec. 31, 1992, the Bank reported net income of $183,000, or $.16 per share, versus a net loss of $1.068 million, or $.93 per share, for 1991.
 Chairman, President, and CEO Guy Cambria Jr., commented that, "We are pleased to report a third consecutive quarterly profit despite the continuing effects of economic problems on particular segments of our marketplace. With record high net interest income, improving fee income and decreased expenses, the Bank's core earnings have more than offset the adverse impact of problem asset costs. We continue to make progress in disposing of foreclosed properties and, as reflected by the relatively low level of nonperforming loans, minimize potential of new problems through aggressive collection efforts. We look forward to continued profitability in 1993, but are mindful that our performance is tied to the financial conditions of our customers."
 The Bank continues to be well-capitalized by FDIC definitions, with a year-end ratio of Tier 1 capital (net worth minus intangible assets) to average assets of 6.8 percent and a risk-based capital ratio of 10.6 percent. At the end of last year the comparable ratios were 6.7 percent and 9.9 percent, respectively.
 The Bank's record net interest income for the fourth quarter was almost $100,000 higher than the previous best and 9 percent higher than the fourth quarter of last year. Record net interest income for the year was almost $600,000, or 9 percent, higher than last year's level. The Bank's net interest margin for the fourth quarter was 4.42 percent versus 4.04 percent in the fourth quarter of 1991 and reached 4.21 percent for the year 1992 versus 3.90 percent in 1991.
 Total noninterest expenses in the fourth quarter were 6 percent lower than the comparable quarter in 1991 and , for the full year, were 2 percent lower. Problem asset related expenses were significantly reduced in the fourth quarter as the Bank recorded net income on the operation of the property associated with an in-substance foreclosure on one commercial mortgage. For the year, most other problem asset-related expense categories were lower as the Bank completed foreclosure actions on several properties and the level of chronic loan delinquencies diminished. Basic operating expenses increased by 3 percent because the lower volume of loans booked in 1992 resulted in a substantial reduction in the deferral of compensation expense under FASB 91. Excluding the effect of the deferred expenses, basic operating expenses were unchanged form 1991 to 1992.
 Fee income in the fourth quarter of 1992 was 2 percent higher than the same quarter of 1991 and 3 percent higher than for the full year due to greater deposit and secondary mortgage market activity levels. Securities trading income was minimal in the fourth quarter and down substantially for the year due to the losses incurred in the first quarter. Gains on securities due to portfolio restructuring were $64,000 in the fourth quarter and $258,000 for the year. Writedowns or net losses realized on the disposition of problem assets were $59,000 for the fourth quarter and $194,000 for the year.
 Total nonperforming assets were $12.1 million, or 6.2 percent of total assets, at Dec. 31, 1992 a 6 percent increase from $11.3 million, or 5.7 percent of total assets, at Dec. 31, 1991. Nonperforming loans (a subject of nonperforming assets) declined by 28 percent to $1.3 million at year-end 1992 from $1.8 million at year-end 1991. This level is the lowest at any quarter-end since the second quarter of 1990. Foreclosed assets increased to $10.8 million at Dec. 31, 1992 from $9.5 million at the same time a year ago. This increase is attributable to the in-substance foreclosure discussed above. During the fourth quarter, the Bank acquired title to and is actively marketing the properties comprising the collateral for the problem asset which accounts for almost half of the total.
 The allowance for loan losses at Dec. 31, 1992 was $2.1 million, a level equal to 1.66 percent of total loans, 164 percent of nonperforming loans, and 154 percent of annualized net chargeoffs. Net average loans; net chargeoffs were $1.1 million in 1991, equal to .78 percent of average loans. Almost half of this year's net chargeoffs were related to the previously mentioned in-substance foreclosure. Provision expense for 1992 was $1.2 million, a decrease of 37 percent from a year earlier.
 Total assets were $194.1 million at Dec. 31, 1992, a decrease of 2 percent from the $197.4 million level at Dec. 31, 1991. Total loans decreased to $126.7 million at year-end 1992, which was $10 million lower than a year ago, due to the runoff of indirect installment loans following the downsizing of the dealer lending program. Total deposits of $169.1 million at year-end 1992 were almost $10 million lower than at year-end 1991, as some customers chose to utilize the funds from maturing time deposits to meet personal needs.
 Tolland Bank (AMEX: TBK) is a Connecticut-chartered savings bank serving Tolland County and surrounding communities.
 TOLLAND BANK
 Selected Financial Highlights
 (Unaudited)
 Periods ended Three months Twelve months
 Dec. 31 1992 1991 1992 1991
 Operating data
 (000s omitted)
 Net interest income $1,920 $1,766 $7,352 $6,759
 Provision for loan losses 329 672 1,245 1,974
 Total non-interest income 215 318 787 806
 Total non-interest expense 1,595 1,698 6,605 6,732
 Net income (loss) 134 (263) 183 (1,068)
 Net income (loss) per
 common and common
 equivalent share $0.12 ($0.23) $0.16 ($0.93)
 Common and common
 equivalent shares
 (period-end) 1,154,755 1,150,000 1,154,755 1,154,000
 Key Ratios
 (as a percent)
 Net interest spread
 (fully taxable
 equivalent) 4.34 3.86 4.10 3.69
 Net interest margin
 (fully taxable
 equivalent) 4.42 4.04 4.21 3.90
 Return on assets 0.27 (0.54) 0.09 (0.55)
 Return on equity 3.69 (7.26) 1.27 (7.17)
 Equity percent of assets
 -- Period end 7.44 7.24 7.44 7.24
 Book value per share
 -- Period end $12.51 $12.43 $12.51 $12.43
 Statements of Income
 (Unaudited, in thousands)
 Periods ended Three months Twelve months
 Dec. 31 1992 1991 change 1992 1991 change
 Interest on loans $2,768 $3,476 (708) $11,698 $14,607 (2,709)
 Interest on
 investment
 securities 618 496 122 2,329 2,043 266
 Interest on other
 earning assets 60 136 (78) 272 387 (115)
 Total interest
 income 3,446 4,110 (664) 14,499 17,037 (2,536)
 Interest on
 deposits 1,424 2,338 (914) 6,869 10,043 (3,174)
 Interest on
 borrowings 102 6 96 276 235 43
 Total interest
 expense 1,526 2,344 (818) 7,147 10,278 (3,131)
 Net interest income 1,920 1,766 154 7,352 6,759 593
 Provision for
 loan losses 329 672 (343) 1,245 1,974 (729)
 Net interest after
 provision for
 loan losses 1,591 1,094 497 6,107 4,765 1,322
 Service charges
 and fees 205 202 3 786 763 23
 Securities trading
 income 5 76 (73) (63) 103 (166)
 Gain/(loss) on
 investment
 securities 64 143 (79) 258 269 (11)
 Gain/(loss) on assets (59) (105) 46 (194) (329) 135
 Total non-interest
 income 215 318 (103) 787 806 (19)
 Salaries and benefits 733 687 46 2,911 2,674 237
 Occupancy 135 145 (10) 551 556 (5)
 Equipment 93 61 12 383 442 (59)
 Data processing
 services 161 180 (19) 620 664 (44)
 Other expense 473 605 (132) 2,140 2,396 (256)
 Total non-interest
 expense 1,595 1,698 (103) 6,605 6,732 (127)
 Income (loss) before
 income taxes 211 (286) 497 289 (1,141) 1,430
 Income tax expense
 (benefit) 77 (23) 100 106 (73) 179
 Net income (loss) 134 (263) 397 183 (1,068) 1,251
 Statements of Financial Condition
 (Unaudited, in thousands)
 Dec. 31 1992 1991
 Assets:
 Cash and due from banks $6,742 $4,912
 Overnight investments 5,176 6,868
 Total cash and cash equivalents 11,918 11,780
 Trading account securities 0 4,071
 U.S. government and agency securities 6,038 5,130
 Other debt securities 29,067 22,180
 Fixed income mutual funds 2,465 0
 PHLBB stock 618 558
 Total investment securities 38,188 27,868
 Permanent residential mortgage loans 43,574 37,957
 Permanent commercial mortgage loans 34,914 37,636
 Consumer loans 29,663 39,249
 Commercial loans 18,558 21,922
 Total loans 126,709 136,764
 Plus: Net deferred costs 759 1,251
 Less: Allowance for loan losses (2,100) (2,215)
 Net loans 125,368 135,800
 Net property and equipment 5,105 5,492
 Foreclosed assets 10,805 9,479
 Other assets 2,693 2,946
 Total assets $ 194,077 $ 197,436
 Liabilities and Stockholders' Equity
 Demand deposits $ 13,028 $ 10,855
 Interest-bearing transaction deposits 17,518 16,894
 Money market deposits 11,896 11,017
 Savings deposits 44,191 37,757
 Time deposits 82,472 102,216
 Total deposits 169,105 178,739
 Total borrowings 10,073 4,000
 Other liabilities 452 398
 Total liabilities 179,630 183,137
 Common stock (par value $1) 1,150 1,150
 Paid-in capital 8,746 8,746
 Net unrealized loss on mutual funds (35) 0
 Retained earnings 4,586 4,403
 Total stockholders' equity 14,447 14,299
 Total liabilities stockholders equity 194,077 197,436
 -0- 1/27/93
 /CONTACT: Joel E. Hyman, treasurer and chief financial officer of Tolland Bank, 203-875-2500/
 (TBK)


CO: Tolland Bank ST: Connecticut IN: FIN SU: ERN

LD-WB -- NY006 -- 9430 01/27/93 08:03 EST
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Date:Jan 27, 1993
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