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BOSTON FIVE REPORTS THIRD QUARTER RESULTS

 BOSTON, Aug. 16 /PRNewswire/ -- The Boston Five Bancorp., Inc. (NASDAQ: BFCS), holding company for The Boston Five Cents Savings Bank FSB, reported a net loss for the quarter ended July 31, 1993, amounting to $5.9 million, or 83 cents per share. This compares with a net loss of $9.9 million or $1.40 per share, for the quarter ended July 31, 1992. For the nine months ended July 31, 1993, The Boston Five had a net loss of $4.7 million, or 66 cents per share, compared with a net loss of $13.9 million, or $1.97 per share, for the corresponding nine months of 1992.
 The Boston Five had previously announced that it expected to report a loss of as much as $6.0 million for the quarter arising out of a provision for losses on loans and joint ventures following a recent regulatory examination and anticipated writedowns of excess mortgage servicing rights due to refinancing of residential mortgage loans. Lawrence K. Fish, chairman, president and chief executive officer of Citizens Financial Group, Inc. (Citizens) has indicated that this loss has no effect on Citizens' previously announced plans to acquire The Boston Five.
 On April 13, 1993, The Boston Five announced that it had entered into a definitive agreement to be acquired by Citizens for $13.00 per share in an all-cash transaction. The acquisition is subject to stockholder and regulatory approvals and certain other conditions. A special meeting of stockholders of The Boston Five to act upon the proposed transaction has been scheduled for Aug. 31, 1993. The $13.00 purchase price is subject to upward adjustment if the transaction is not completed by Oct. 12, 1993.
 During the quarter ended July 31, 1993, the Bank's nonperforming assets (NPAs) decreased by $5.0 million, or 7.8 percent, representing the bank's ninth consecutive quarterly decrease in NPAs. On July 31, 1993, NPAs totalled $59.4 million, compared with $85.1 million as of Oct. 31, 1992, and $92.7 million on July 31, 1992.
 The provision for losses on loans was $4.4 million for the quarter, compared with $6.1 million for the corresponding quarter of 1992. For the nine months ending July 31, 1993, the provision for losses on loans was $7.6 million, compared with $14.2 million in the first nine months of 1992.
 During the quarter and nine months ended July 31, 1993, the bank recorded writedowns of excess mortgage servicing rights amounting to $3.6 million and $5.8 million, respectively. For the corresponding periods of 1992 the bank recorded writedowns of excess mortgage servicing rights of $1.8 million and $2.5 million, respectively.
 Residential mortgage production totaled $334.3 million for the quarter ending July 31, 1993, compared with $352.2 million for the third quarter of 1992. For the first nine months of 1993, residential mortgage production totaled $898.1 million, compared with $1.15 billion in the comparable period of 1992. The Boston Five currently services approximately $3.8 billion in residential mortgages, of which almost $3.0 billion are serviced for investors.
 The results for the nine months ended July 31, 1992, included extraordinary income of $4.4 million, or 62 cents per share, relating to the conversion of the Massachusetts Savings Bank Life Insurance company from a mutual to a stock form of ownership.
 The Boston Five Bancorp, Inc. is the holding company for The Boston Five Cents Savings Bank FSB. With total assets of more than $1.6 billion, The Boston Five is one of the largest savings banks headquartered in Massachusetts. It operates 23 branch offices in eastern Massachusetts and 15 loan offices in five New England states. The Boston Five conducts correspondent lending operations in 12 Northeastern and Middle Atlantic states through its wholly-owned subsidiary, The Boston Five Mortgage Corporation. Deposits of The Boston Five are insured by the Bank Insurance Fund (BIF) of the Federal Deposit Insurance Corporation (FDIC).
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 July 31, July 31,
 1993 1992 1993 1992
 Interest income $27,588 $33,274 $86,145 $105,437
 Interest expense 13,080 19,456 41,594 65,561
 Net interest income 14,508 13,818 44,551 39,876
 Provision for losses
 on loans 4,407 6,118 7,640 14,175
 Net interest income
 after provision for
 losses on loans 10,101 7,700 36,911 25,701
 Non-interest income:
 Loan and other
 related fees 462 409 1,263 1,264
 Mortgage service fees 647 1,693 2,792 4,925
 Customer service fees 804 867 2,374 2,425
 Real estate oper., net (1,794) (6,778) (7,420) (17,420)
 Gain (loss) on
 securities, net --- 124 (7) 760
 Gain (loss) on sale of
 loans and
 servicing, net (1,539) 42 482 3,827
 Other income 137 177 2,096 1,446
 Total non-int. income (1,283) (3,466) 1,580 (2,773)
 Non-interest expenses:
 Salaries and fringe
 benefits 6,743 6,545 19,693 18,993
 Occupancy 1,254 1,079 3,742 3,570
 Data processing 798 1,088 2,812 3,175
 Regulatory assessments 1,361 1,083 3,695 3,286
 Legal and problem loan
 expense 1,444 1,149 3,514 3,059
 Other 3,128 3,154 9,717 9,110
 Total non-interest
 expenses 14,728 14,098 43,173 41,193
 Income (loss) before
 income taxes (5,916) (9,864) (4,682) (18,265)
 Provision for (benefit
 from) income taxes 6 (10) 11 (4)
 Income (loss) before
 extraordinary item (5,916) (9,854) (4,693) (18,261)
 Extraordinary item --- --- --- 4,354
 Net income (loss) (5,916) (9,854) (4,693) (13,907)
 Earnings (loss) per
 common share:
 Earnings (loss) per
 share before
 extraordinary item (83 cents) $(1.40) (66 cents) $(2.59)
 Extraordinary item --- --- --- 62 cents
 Total earnings (loss)
 per share (83 cents) $(1.40) (66 cents) $(1.97)
 Earnings (loss) per share were calculated using the following number of common shares:
 Three Months Ended Nine Months Ended
 July 31, July 31,
 1993 1992 1993 1992
 7,110,205 7,051,763 7,102,278 7,048,644
 Consolidated Statements of Financial Condition
 ($ in thousands)
 July 31, 1993 Oct. 31, 1992
 Assets:
 Cash and due from banks $34,180 $44,619
 Federal funds sold 50,100 39,600
 Investment securities at
 cost(market value $152,252
 and $129,669) 150,425 127,856
 Securities held for sale,
 at lower of cost or market 17 24
 Mortgage-backed securities,
 at cost (market value
 $1,418 and $1,937) 1,335 1,870
 Federal Home Loan Bank Stock
 at cost 16,380 16,380
 Loans 1,072,355 1,154,907
 Loans held for sale 169,254 203,206
 Loans to joint ventures 978 8,235
 Allowance for loan losses (18,905) (19,754)
 Real estate acquired by
 foreclosure or substantively
 repossessed, net 26,493 36,188
 Investments in joint
 ventures, net 15,183 16,366
 Bank premises, furniture
 and equipment, net 53,809 55,456
 Accrued income receivable 10,161 12,080
 Goodwill, net 5,129 5,845
 Purchased and excess
 mortgage servicing rights 35,985 40,741
 Refundable federal and
 state income taxes 23 23
 Other assets 16,582 14,115
 Total assets $1,639,484 $1,757,757
 Liabilities and
 Stockholders' Equity
 Liabilities:
 Deposits $1,508,141 $1,617,065
 Borrowed funds 32,334 32,360
 ESOP debt 5,140 5,921
 Advance payments from
 mortgagors 11,197 14,524
 Accrued interest payable 2,896 3,439
 Accrued and deferred
 income taxes 1,489 1,489
 Accrued expenses and
 other liabilities 4,471 5,475
 Total liabilities $1,565,668 $1,680,273
 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 7,214,270 and
 7,154,822 shares 72 72
 Paid-in capital 41,883 41,550
 Retained earnings 38,455 43,148
 Treasury stock, 102,800
 shares, at cost (1,365) (1,365)
 ESOP debt (5,140) (5,140)
 Unearned compensation (89) ---
 Total stockholders' equity 73,816 77,484
 Total liabilities and
 stockholders' equity $1,639,484 $1,757,757
 NET INTEREST MARGIN, RATIOS, AND AVERAGE BALANCES(a):
 (Dollars in Thousands)
 Three Months Ended Nine Months Ended
 7/31/93 7/31/92 7/31/93 7/31/92
 Net interest margin 3.92pct 3.37pct 3.95pct 3.08pct
 Interest rate spread:
 For the period 4.09pct 3.61pct 4.15pct 3.32pct
 Net income(loss) as a
 percentage of:
 Average assets (1.41)pct (2.19)pct (0.37)pct (0.99)pct
 Average equity (30.89)pct (46.97)pct (8.27)pct (21.21)pct
 Average equity to
 average assets 4.55pct 4.67pct 4.48pct 4.69pct
 Average assets $1,682,068 $1,798,783 $1,687,810 $1,863,640
 Average earning
 assets 1,492,391 1,603,518 1,498,794 1,668,166
 Average loans 1,258,834 1,401,037 1,293,169 1,473,904
 Average deposits 1,537,994 1,627,907 1,551,273 1,681,039
 Average equity 76,610 83,920 75,650 87,422
 NOTE: (a) Annualized where appropriate
 LOAN PRODUCTION
 Residential Mortgages:
 Fixed rate $304,714 $301,752 $790,275 $1,010,403
 Adjustable rate (ARM) 29,579 50,428 107,827 140,763
 Total residential
 mortgages 334,293 352,180 898,102 1,151,166
 Commercial real estate 77 1,373 367 1,967
 Construction 4,228 192 9,043 4,305
 Commercial --- --- 370 400
 Education 1,125 1,844 8,706 11,371
 Other consumer 3,253 5,627 11,410 17,779
 Total loan production $342,976 $361,216 $927,998 $1,186,988
 7/31/93 10/31/92
 SELECTED DATA
 Number of:
 Retail banking offices 23 25
 Loan centers 15 15
 Full-time employees 738 727
 Part-time employees 132 117
 Dollar volume of
 residential mortgages
 serviced for others $2,964,811 $2,930,893
 Loans on nonaccrual 28,519 41,449
 Nonaccrual loans as a
 percentage of total
 assets 1.7pct 2.4pct
 Restructured loans 4,430 7,500
 Loan loss reserve as a
 percentage of total loans 1.5pct 1.4pct
 Loan loss reserve as a percentage
 of nonaccrual loans 66.3pct 47.7pct
 Book value per
 common share 10.38 10.99
 Regulatory capital ratios:
 Tangible (1.5pct required) 3.9pct 4.0pct
 Leverage (3.0pct required) 4.1pct 4.2pct
 Risk-weighted (required level
 increased to 8.0pct from
 7.2pct, effective 12/31/92) 8.5pct 8.3pct
 -0- 8/16/93
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of Boston Five Bancorp, 617-742-6000, ext. 2106/
 (BFCS)


CO: Boston Five Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN

SJ -- NE023 -- 3313 08/16/93 18:22 EDT
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