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BOULEVARD BANCORP REPORTS IMPROVED RESULTS AMID SIGNS PROBLEM LOANS ARE EASING

              BOULEVARD BANCORP REPORTS IMPROVED RESULTS
                  AMID SIGNS PROBLEM LOANS ARE EASING
    CHICAGO, Jan. 31 /PRNewswire/ -- Boulevard Bancorp, Inc. (NASDAQ-NMS: BLVD) today reported an improved performance for both the fourth quarter and year ended Dec. 31, 1991.  Net income for the fourth quarter of $.5 million, or 6 cents per share, compared with a net loss of $15.5 million or $2.24 per share in the same period a year ago.  For the 12 months ended Dec. 31, 1991, the company reported a narrowed loss of $2.3 million, or 28 cents per share as compared to a net loss of $24.1 million or $3.38 per share in 1990.  The improvement in both fourth quarter and full year results from the year earlier periods was due largely to a reduction in the provision for loan losses.
    The Chicago-based bank holding company said it was particularly encouraged by a 12 percent decline in non-performing assets, which fell to $67.5 million in the latest quarter.  This is the third consecutive quarterly decline in non-performing assets.
    "These results are a good indication that our three-point plan to return Boulevard Bancorp to its historic level of profitability, by improving asset quality, reducing expenses and enhancing revenues, is beginning to take hold," said Richard T. Schroeder, president and chief executive officer.
    Through the asset disposition program, announced in July 1991, and other actions, the company has reduced non-performing assets by $33 million since June 30, 1991.  Approximately $20 million in assets remain for disposition with a target completion date around mid-1992.  The company also noted that the accelerated dispositions created no material fourth quarter losses since the company had already taken a charge against earnings in the third quarter to reflect the estimated losses (including future carrying costs).
    Schroeder said that the company has worked hard to reduce expenses and is now focused on the future with a comprehensive program to enhance revenues.
    "In the past 18 months much of our attention has been centered on internal issues, it's now time to begin looking to the future by establishing an enhanced sales effort," he said, adding that a large number of the company's employees have gone through sales training in recent weeks.
    "We have a strong and dedicated group of employees who have a commitment to serve our customers, and who look forward in 1992 and beyond to return this organization to a level of profitability its shareholders deserve," he concluded.
    Boulevard Bancorp remains well capitalized with a Dec. 31, 1991, total risk based capital ratio of 11.2 percent, or 3.95 percentage points above the regulatory minimum of 7.25 percent.
    Results of Operations.
    For the quarter ended Dec. 31, 1991, the company reported that net interest income declined 9.4 percent to $13.7 million, from $15.1 million in the fourth quarter of last year.  The year-to-year decrease was attributable to a decrease in average earning assets and a decrease in the net interest margin.
    The provision for loan losses was $3.1 million compared with $30.0 million in last year's fourth quarter.  Non-interest income was up 65.3 percent to $5.7 million from $3.4 million a year earlier due primarily to an increase of $2.3 million in gains on sale of securities.  Non- interest expense increased 8.7 percent to $15.6 million from $14.4 million due primarily to increases in legal, other real estate owned expenses, salaries and employee benefits, and FDIC insurance premiums.
    For the year ended Dec. 31, 1991, the company reported that net interest income decreased 10.7 percent to $54.9 million, from $61.5 million in 1990.  The provision for loan losses was $15.6 million compared with $60.7 million.  Non-interest income was up 36.3 percent to $19.6 million from $14.4 million a year earlier primarily due to an increase of $4.6 million in gains on sale of securities.  Non interest expense increased 11.9 percent to $64.3 million from $57.5 million. Excluding expenses related to other real estate owned, which increased $5.6 million, non-interest expenses increased $1.2 million or 2.2 percent as compared to last year.
    Asset Quality.
    Net charge-offs for the 12-month period were $23.2 million compared with $39.0 million a year ago, and were $5.0 million in the fourth quarter of 1991 compared to $20.0 million in the same period last year. Non-performing loans decreased to $44.1 million at Dec. 31, 1991, from $57.3 million at the end of the third quarter and were $12.5 million lower than a year earlier.  Other real estate owned increased to $23.4 million at Dec. 31, 1991, from $19.4 million at Sept. 30, 1991, and was $.5 million lower than a year earlier.
    As a percent of loans and other real estate owned, non-performing assets at Dec. 31, 1991, were 7.05 percent compared with 6.86 percent a year ago, and 7.53 percent at Sept. 30, 1991.  The slight increase in the ratio at Dec. 31, 1991, from the ratio at Dec. 31, 1990, despite a decrease in the amount of non-performing assets, was due to a decrease in loans and other real estate owned.
    Balance Sheet Analysis.
    As a result of the slowdown in general economic conditions and management's plan to improve asset quality and capital ratios, the balance sheet reflects decreases in loans and deposits.
    Total assets decreased 7.6 percent to $1.54 billion from $1.67 billion at Dec. 31, 1990, while net loans decreased 18.7 percent to $.91 billion from $1.11 billion and deposits decreased 8.2 percent to $1.31 billion from $1.42 billion.  Common shareholders' equity decreased 0.8 percent to $90.4 million, or $12.33 per share, from $91.1 million, or $12.58 per share, a year earlier.
    Boulevard Bancorp, Inc. is Chicago's 10th largest bank holding company with assets of $1.5 billion.  Its principal subsidiaries include Boulevard Bank National Association in Chicago, First National Bank of Des Plaines, Citizens National Bank of Downers Grove, National Security Bank of Chicago and Boulevard Technical Services.
    -0-          1/31/92
    /CONTACT:  Janet K. Burt (media), 312-993-8602, or George H. Cook (investors),  312-836-6685, both of Boulevard Bancorp/
    (BLVD) CO:  Boulevard Bancorp, Inc. ST:  Illinois IN:  FIN SU:  ERN SH -- NY053 -- 5725 01/31/92 15:30 EST
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Date:Jan 31, 1992
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