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BANKWORCESTER CORPORATION REPORTS INCREASED THIRD QUARTER AND NINE MONTH OPERATING INCOME; NON-PERFORMING ASSETS DECLINE

 /REPEATING DUE TO GARBLE IN HEADER OF FIRST TABLE/
 WORCESTER, Mass., Oct. 27 /PRNewswire/ -- BankWorcester Corporation


(NASDAQ: BNKW) today reported net income of $1.7 million or 25 cents per share of common stock for the quarter ended Sept. 30, 1993, an increase over net income of $706,000 or 11 cents per common share for the same period last year. Net income for the 1993 third quarter was adversely affected by expenses of approximately $1.1 million or 15 cents per share associated with a previously announced merger agreement. This agreement between BankWorcester and the Bank of Boston Corporation was signed on Sept. 21, 1993.
 Non-performing assets totaled $28.1 million, a decrease from $31.3 million at the end of the 1993 second quarter and $35.6 million at the end of the third quarter last year. In the 1993 quarter, BankWorcester provided $1.5 million for possible loan losses, compared to $4.0 million in the 1992 third quarter, and charged off a net $1.9 million of loans, compared to $6.0 million in the 1992 third quarter. After the provision and net charge-offs, the loan loss allowance was $16.4 million or 133.6 percent of non-performing loans.
 Net interest and dividend income for the quarter was $13.6 million vs. $14.4 million last year.
 For the nine months ended Sept. 30, 1993, net income was $6.5 million or 95 cents per share compared to income before extraordinary item and change in accounting principle of $4.7 million or 71 cents per share for the corresponding period last year. Net interest and dividend income for the 1993 nine month period increased to $42.0 million from $39.6 million for the comparable 1992 period.
 Deposits at Sept. 30, 1993, totaled $1.3 billion compared to $1.2 billion on the same date last year. Net loans totaled $1.0 billion vs. $987.7 million a year ago. Assets on Sept. 30, 1993, totaled $1.5 billion, virtually the same as last year.
 The Board of Directors of BankWorcester yesterday declared a quarterly dividend of 5 cents per share of common stock. The dividend is payable on Jan. 7, 1994, to stockholders of record on Nov. 26, 1993.
 BANKWORCESTER CORPORATION
 Consolidated Statement of Income
 (In thousands, except per share)
 (Unaudited)
 Three Months Nine Months
 ended Sept. 30, ended Sept. 30,
 1993 1992 1993 1992
 Interest and dividend income $22,704 $25,397 $69,136 $77,436
 Interest expense (9,097) (11,032) (27,183) (37,849)
 Net interest and dividend income 13,607 14,365 41,953 39,587
 Provision for loan losses (1,500) (4,000) (4,750) (6,000)
 Other income 2,490 2,058 7,029 7,249
 Other expense (10,859) (10,958) (31,908) (32,465)
 Income before income taxes,
 extraordinary item and
 change in accounting principle 3,738 1,465 12,324 8,371
 Income tax expense (2,003) (759) (5,808) (3,678)
 Income before extraordinary item
 and change in accounting
 principle 1,735 706 6,516 4,693
 Extraordinary item, net of
 income taxes --- --- --- 972
 Change in accounting principle --- --- --- 9,139
 Net income $1,735 $706 $6,516 $14,804
 Earnings per common share:
 Operating income $0.25 $0.11 $0.95 $0.71
 Extraordinary item --- --- --- 0.15
 Change in accounting principle --- --- --- 1.38
 Net income $0.25 $0.11 $0.95 $2.24
 Average shares and share
 equivalents 6,934 6,610 6,870 6,610
 Balance Sheet Data Sept. 30
 1993 1992
 Deposits $1,261,656 $1,246,271
 Commercial loans, net 322,635 326,334
 Mortgage loans, net 494,871 480,685
 Consumer loans, net 201,967 180,693
 Total assets 1,455,955 1,441,721
 Total liabilities 1,315,796 1,309,898
 Stockholders' equity 140,159 131,823
 Stockholders' equity per share 21.11 19.94
 Total shares outstanding 6,641 6,610
 SELECTED STATISTICS - BANKWORCESTER
 (Dollars in thousands)
 9/30/93 6/30/93 3/31/93 12/31/92 9/30/92
 Non-accrual loans $10,880 $13,248 $14,774 $7,372 $8,444
 Loans 90 days
 past due and
 still accruing 1,383 2,371 2,797 2,047 2,648
 Total non-performing
 loans 12,263 15,619 17,571 9,419 11,092
 Real estate acquired
 through foreclosure
 and loans substantively
 repossessed 13,875 13,036 13,605 14,599 19,407
 Restructured loans 2,000 2,645 8,536 10,746 5,133
 Total non-performing
 assets $28,138 $31,300 $39,712 $34,764 $35,632
 Total loans 1,035,855 1,025,471 1,023,259 1,017,528 1,002,829
 Allowance for possible
 loan losses $16,382 $16,761 $16,733 $16,266 $15,117
 Allowance as percent
 of non-performing
 loans 133.6 pct 107.3 pct 95.2 pct 172.7 pct 136.3 pct
 Allowance as percent
 of non-performing
 assets 58.2 pct 53.5 pct 42.1 pct 46.8 pct 42.4 pct
 Allowance as percent
 of total loans 1.58 pct 1.63 pct 1.64 pct 1.60 pct 1.51 pct
 Non-performing assets as
 percent of stockholders'
 equity less costs in excess of
 net assets acquired plus
 allowance for possible
 loan losses 19.01 pct 21.3 pct 27.5 pct 24.6 pct 25.9 pct
 -0- 10/27/93 R
 /CONTACT: Dennis Byrne of BankWorcester, 508-831-4460/
 (BNKW)


CO: BankWorcester Corporation ST: Massachusetts IN: FIN SU: ERN

DJ -- NE005 -- 7213 10/27/93 11:02 EDT
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