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ANDOVER BANCORP, INC. REPORTS SECOND QUARTER AND YEAR-TO-DATE PROFIT

ANDOVER BANCORP, INC. REPORTS SECOND QUARTER AND YEAR-TO-DATE PROFIT
 ANDOVER, Mass., July 16 /PRNewswire/ -- Andover Bancorp, Inc. (NASDAQ: ANDB) today announced its operating results for the second quarter and six months ended June 30, 1992. Net income for the second quarter amounted to $1.0 million or 25 cents per share as compared to a net loss of $22.3 million or $5.44 per share for the corresponding period in 1991. Year-to-date profits totaled $2.5 million or 62 cents per share compared with a net loss of $25.9 million or $6.32 per share for the comparable six months of 1991.
 At June 30, 1992, nonaccruing loans amounted to $28.6 million, a reduction of $4.8 million or 14.3 percent from $33.4 million at March 31, 1992, and a reduction of $12.5 million or 30.3 percent from $41.1 million at Dec. 31, 1991. Other real estate owned (OREO) or substantively repossessed totaled $28.0 million at the end of the second quarter, a reduction of $1.6 million or 5.6 percent from $29.6 million at March 31, 1992 and a $0.9 million or 3.4 percent reduction from Dec. 31, 1991.
 With the second quarter allowance for loan losses totaling $19.4 million or 67.6 percent of nonaccruing loans and 5.0 percent of total loans, the second quarter of 1992 included no additional provision for loan losses. Net charge-offs for the period totaled $1.8 million. In the corresponding period of 1991, the provision amounted to $19.5 million and net charge-offs were $8.1 million.
 Gerald T. Mulligan, president and chief executive officer, stated that, "The overall positive trends in Andover Bank's financial performance and the 1992 second quarter and year-to-date results are encouraging. Net interest income for the first six months of 1992 is 29.5 percent higher than the first six months of 1991. Operating expenses have decreased by 4.2 percent during the same period. Especially important to Andover Bank, with its still large amount of non-performing assets, is the success to date in reducing those non- performing assets (including restructured loans), by $12.8 million or 18.1 percent from Dec. 31, 1991. These accomplishments are the direct result of determined effort and persistence by bank employees in the face of a still sluggish local economy, which continues to make us cautious."
 Second quarter 1992 income included a net gain on the sale of securities and loans amounting to $251,000 and a net loss of $2.4 million attributable to real estate operations. This compares to a net loss of $620,000 and a net loss of $4.7 million, respectively, in the second quarter of 1991.
 Bancorp's assets increased from $637.5 million at June 30, 1991 to $722.8 million at June 30, 1992. Its capital to assets ratio now stands at 7.8 percent, with a book value per share of $13.75.
 Andover Bancorp, Inc. is the parent holding company of Andover Bank. The bank is a Massachusetts-chartered savings bank organized in 1834 and headquartered in Andover, Mass., approximately 25 miles north of downtown Boston. The bank operates branch banking offices in Andover, Lawrence, Methuen, North Andover and Tewksbury.
 ANDOVER BANCORP, INC. AND SUBSIDIARIES
 Selected Financial Data for the Quarters Ended:
 (dollars in thousands)
 June 30, December 31, June 30,
 1992 1991 1991
 Nonaccruing loans $28,643 $41,089 $56,984
 Restructured loans 910 264 6,490
 In-substance foreclosures 16,712 18,700 7,280
 Other real estate owned 11,268 10,232 15,066
 Total non-performing $57,533 $70,285 $85,820
 assets
 Interest rate spread 3.03 pct 2.46 pct 1.80 pct
 Net interest margin 3.39 2.99 2.57
 Capital ratios: (a)
 Leverage (core capital) 7.48 pct 7.67 pct 8.15 pct
 ratio
 Risk-based capital
 Tier I capital ratio 11.4 10.5 10.9
 Total capital ratio 12.9 12.0 12.4
 (a) Capital ratios are calculated based on FDIC data for Andover Bank and exceed all regulatory requirements.
 ANDOVER BANCORP, INC. AND SUBSIDIARIES
 (unaudited)
 Condensed Consolidated Balance Sheets
 June 30, 1992 and 1991 (in thousands)
 1992 1991
 Assets held for sale $93,554 $32,564
 Investements 191,551 133,768
 Loans 389,984 432,190
 Allowance for loan losses (19,363) (26,146)
 Net loans 370,621 406,044
 Other real estate owned
 or substantively
 repossessed 27,980 22,346
 Other assets 39,052 42,797
 Total assets $722,758 $637,519
 Deposits $522,734 $546,029
 Borrowed funds 139,548 28,100
 Other liabilities 4,123 3,778
 Total liabilities 666,405 577,907
 Equity 56,353 59,612
 Total liabilities
 and equity 722,758 $637,519
 Statement of Operations
 (in thousands)
 Quarters Ended Year-to-Date
 June 30, June 30,
 1992 1991 1992 1991
 Interest income $12,807 $13,230 $25,809 $27,493
 Interest expense 7,221 9,283 14,921 19,085
 Net interest income 5,586 3,947 10,888 8,408
 Provision for
 loan losses --- 19,500 750 23,500
 NII, after provision 5,586 (15,553) 10,138 (15,092)
 Fee and other income 892 840 2,307 1,633
 Losses on real estate
 operations (2,397) (4,680) (5,305) (6,925)
 Securities/loans
 gains (losses) 251 (620) 2,371 (407)
 Other non-interest
 expense 3,589 3,852 7,266 7,588
 Income (loss) before
 tax benefit 743 (23,865) 2,245 (28,379)
 Tax benefit 300 1,551 300 2,485
 Net income (loss) $1,043 ($22,314) $2,545 ($25,894)
 Per share data
 Net income (loss) 25 cents ($5.44) 62 cents ($6.32)
 Book value 13.75 14.54 13.75 14.54
 Shares outstanding
 At end of period 4,098,980 4,098,980 4,098,980 4,098,980
 Weighted average 4,098,980 4,098,980 4,098,980 4,098,980
 -0- 7/16/92
 /CONTACT: Joseph F. Casey, CFO of Andover Bancorp, 508-749-2213/
 (ANDB) CO: Andover Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN


CN-PB -- NE009 -- 8470 07/16/92 11:15 EDT
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