BANK AND TRUST COMPANY OF OLD YORK ROAD REPORTS THIRD QUARTER 1991 EARNINGS
BANK AND TRUST COMPANY OF OLD YORK ROAD
REPORTS THIRD QUARTER 1991 EARNINGS
WILLOW GROVE, Pa., Nov. 8 /PRNewswire/ -- Mark Hankin, chairman and chief executive officer of Old York Road Bancorp, Inc., the parent of Bank and Trust Company of Old York Road, announced today that management and the board of directors of the company have determined to establish additional provisions for possible losses from loans and real estate owned of $5,776,000, to be charged against income in the third quarter.
This action increases the company's reserve for possible losses on loans and other real estate owned to $9,173,000, or 4.25 percent of total loans and real estate owned.
The company reported a net loss of $4,676,000, or $3.59 per share for the nine months ended Sept. 30, 1991, and will report a loss for the year ending Dec. 31, 1991. Based upon this action, the company said it believes it should no longer be necessary to record provisions for loan losses at levels comparable to recent quarters.
The significant provision for loan losses and real estate owned has been made necessary by the general economic slowdown in the area and the depressed commercial real estate market.
Hankin stated that the decision to take these charges was made after careful consideration by the board of directors and management, and reflects their desire to move the institution beyond its current earning problems and back to historic earning levels. Hankin also stated that while the company has attempted to be realistic in its assessment of the status of its loan portfolio and that the portfolio will continue to be monitored closely, no assurance could be given that further write-downs or additional provisions for loan losses would not be necessary.
Bank and Trust Company of Old York Road's capital position continues to remain strong after adjusting for the previously described charges. The bank will continue to exceed the federally mandated risk-based and core capital requirements. The current bank core capital ratio of 5.81 percent is slightly below the Pennsylvania regulation, which requires 6 percent.
/CONTACT: Mark Hankin, chairman and CEO, 215-537-8400, or Arlene Goldbach, 215-947-7531, both of Bank and Trust Company of Old York Road/ CO: Bank and Trust Company of Old York Road ST: Pennsylvania IN: FIN SU: ERN MK-CC -- PH002 -- 2484 11/08/91 09:01 EST