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CENTERBANK POSTS $1.7 MILLION PROFIT IN FIRST QUARTER

 CENTERBANK POSTS $1.7 MILLION PROFIT IN FIRST QUARTER
 WATERBURY, Conn., April 27 /PRNewswire/ -- Centerbank (NASDAQ: CTBX), reported net income for the three months ended March 31, 1992 of $1,752,000 or 14 cents per share. This compares to a net loss of $6,699,000 or 55 cents per share for the comparable period in 1991. Total assets as of March 31, 1992 stood at $2.9 billion.
 Chairman and Chief Executive Officer Robert J. Narkis stated, "These results reflect our successful efforts to consolidate the two financial institutions acquired in the fourth quarter of 1991. The time it has taken us to assimilate the operations, the level of staffing required, the marginal expense growth, and the increase in non-performing assets stemming from the acquired portfolios are all below projections."
 While the acquisitions grew the loan portfolio 77 percent from $1.3 billion at the end of the first quarter in 1991 to $2.3 billion a year later, during the same period non-performing assets increased only 11 percent, from $190.5 million to $211.6 million. Comparing the first quarter of 1992 to the same period in 1991, non-performing loans as a percentage of total loans decreased from 12.8 percent to 8.5 percent, reserves as a percentage of non-performing loans increased from 46.8 percent to 66.2 percent, and non-performing assets as a percentage of total assets dropped from 10.9 percent to 7.2 percent.
 Narkis stated, "Centerbank Mortgage Company continues to benefit from the current interest rate climate. Residential mortgage originations are at record levels. In addition, the drop in interest rates has improved the net interest spread from 2.53 percent to 3.39 percent over the same quarter last year."
 Centerbank had total shareholders' equity of $151 million or 5.2 percent of total assets as of March 31, 1992. "This financial strength, combined with our demonstrated abilities to manage in the current economic downturn, provide a solid base to explore further opportunities to improve shareholder value," Narkis concluded.
 Headquartered in Waterbury, Conn., Centerbank has a branch network which includes 45 branch offices throughout the state. Established in 1850, its subsidiaries include Centerbank Mortgage Company, a nationwide residential lending operation servicing a $5 billion loan portfolio; Center Capital Corp. and Tucker Leasing - Capital Corp., equipment leasing firms with sales representatives across the country; and Affiliated Business Credit Corporation, a commercial finance company servicing Connecticut and western Massachusetts.
 Centerbank and Subsidiaries
 Financial Highlights (unaudited)
 (In thousands, except per share amounts)
 Three months ended
 3/31/92 3/31/91
 INCOME STATEMENT DATA:
 Interest income $58,114 $39,807
 Interest expense 35,931 28,523
 Net interest income 22,183 11,284
 Provision for loan and lease losses 2,250 5,965
 Non-interest income 5,264 4,444
 Non-interest expenses-operating 22,545 16,460
 Income (loss) before income taxes 2,652 (6,697)
 Income taxes (benefit) 900 2
 Net income (loss) $1,752 $(6,699)
 Net income (loss) per common share:
 Primary and fully diluted 14 cents (55 cents)
 AVERAGE BALANCE SHEET DATA:
 Loans and leases, net $2,219,684 $1,369,183
 Investment securities 354,409 186,643
 Total average earning assets 2,574,093 1,555,826
 Cash and due from banks 61,972 16,234
 Other assets 273,184 184,096
 Total average assets $2,909,249 $1,756,156
 Deposits $2,422,963 $1,093,723
 Advances from the Federal Home
 Loan Bank 250,854 384,897
 Other borrowings 22,177 104,743
 Other liabilities 62,118 19,002
 Shareholders' equity 151,137 153,791
 Total average liabilities
 and shareholders' equity $2,909,249 $1,756,156
 SELECTED RATIOS:
 Return on average assets .24 pct (1.53) pct
 Return on average equity 4.64 pct (17.42) pct
 Average shareholders' equity
 to average assets 5.20 pct 8.76 pct
 Total shareholders' equity
 to total assets 5.20 pct 8.53 pct
 Core capital ratio 4.75 pct 8.27 pct
 Tangible primary capital ratio 6.97 pct 11.03 pct
 Yield on interest-earning assets (FTE) 9.14 pct 10.23 pct
 Cost of interest-bearing liabilities 5.75 pct 7.70 pct
 Net interest spread (FTE) 3.39 pct 2.53 pct
 Net interest margin 3.05 pct 2.90 pct
 Per common share at March 31:
 Book value $12.39 $12.19
 Market price (close) $8.75 $3.25
 Centerbank and Subsidiaries
 Financial Highlights (Unaudited)
 (In thousands)
 Summary of Non-performing Assets:
 At March 31, At Dec. 31,
 1992 1991 1991 1990
 Past-due three months or more
 and still accruing loans -- -- -- --
 Nonaccruing loans and leases:
 Residential first mortgage loans $29,298 $22,807 $23,889 $21,869
 Home equity and other
 consumer loans 4,929 4,100 4,658 3,107
 Commercial first mortgage loans:
 Permanent 75,394 65,987 64,307 59,433
 Construction 3,625 6,049 4,360 6,417
 Other commercial loans 10,343 14,866 6,172 11,841
 Leases 708 828 665 2,068
 Total non-performing loans
 and leases 124,297 114,637 104,078 104,735
 Real estate owned (REO):
 By foreclosure 66,328 46,534 65,922 46,633
 In-substance foreclosure 20,991 29,927 22,708 31,513
 Total real estate owned 87,319 75,831 88,630 78,146
 Total non-performing assets $211,616 $190,468 $192,708$182,881
 Net charge-offs during the
 quarter $2,160 $4,759 $2,790 $9,789
 Allowance for loan losses $82,262 $53,608 $82,174 $52,402
 Allowance for real estate owned $6,754 $5,000 $6,500 $5,000
 Net charge-offs to average
 loans and leases .10 pct .35 pct .96 pct 2 pct
 Allowance for loan losses to
 average loans and leases 3.71 pct 3.92 pct 5.40 pct 3.57pct
 Allowance for loan losses to
 non-performing loans and
 leases 66.18pct 46.76pct 78.95pct 50.03pct
 Allowances for loan and REO
 losses to non-performing
 assets 42.06pct 30.77pct 46.01pct 31.39pct
 Non-performing assets to
 related asset categories 8.46 pct 12.78 pct 7.93pct 12.15pct
 Non-performing assets to
 total assets 7.25 pct 10.90 pct 6.53pct 10.32pct
 Summary of Restructured Loans: (a)
 First mortgage loans:
 Accruing loans:
 Permanent $13,038 -- $13,051 --
 Nonaccruing loans:
 Interest income recognized
 on a cash basis:
 Permanent 6,788 6,788 6,788 6,788
 Construction -- 830 838 830
 Principal balance reduced
 for all cash received:
 Permanent 21,833 -- 22,263 --
 Total nonaccruing loans 28,621 7,618 29,889 7,618
 Total restructured loans $41,659 $7,618 $42,940 $7,618
 ----
 NOTE:(a) Restructured loans are included in the applicable loan categories of the Summary of Non-performing assets (above) as well as the attached consolidated financial statements.
 Consolidated Statements of Income and Expenses (unaudited)
 (In thousands, except per share amounts)
 Three months ended
 3/31/92 3/31/91
 INTEREST INCOME:
 Interest on loans and leases:
 Residential first mortgage loans $28,026 $18,314
 Home equity and other consumer loans 8,732 8,308
 Commercial first mortgage loans 9,633 4,860
 Other commercial loans 2,495 1,037
 Leases 3,615 3,310
 Total interest on loans and leases 52,501 35,829
 Interest on investment securities 4,914 3,192
 Dividend income 699 786
 Total interest income 58,114 39,087
 INTEREST EXPENSE:
 Interest on deposits 30,120 18,271
 Interest on short-term borrowings 183 2,403
 Interest on long-term borrowings 5,628 7,849
 Total interest expense 35,931 28,523
 Net interest income 22,183 11,284
 Provision for loan and lease losses 2,250 5,965
 Net interest income after provision
 for loan and lease losses 19,933 5,319
 NON-INTEREST INCOME:
 Gain (loss) on sale and writedown
 of investment securities, net 37 (337)
 Gain (loss) on sale of loans and
 servicing rights, net (1,145) 299
 Net income (loss) from real
 estate investments (47) 30
 Mortgage servicing income 2,506 1,338
 Customer service fees 1,041 337
 Real estate brokerage commissions, net --- 2,328
 Other operating income 2,872 449
 Total non-interest income 5,264 4,444
 NON-INTEREST EXPENSES:
 Salaries and employee benefits 10,798 7,659
 Occupancy and equipment 3,104 2,726
 Advertising and public relations 379 438
 Net cost of operation of
 real estate owned 4,289 3,305
 Other operating expenses 3,975 2,332
 Total non-interest expenses 22,545 16,460
 Income (loss) before income taxes 2,652 (6,697)
 Income taxes (benefit) 900 2
 Net income (loss) $1,752 $(6,699)
 NET INCOME (LOSS) PER SHARE:
 Primary and fully diluted 14 cents (55 cents)
 Average shares outstanding 12,256,392 12,225,024
 Consolidated Balance Sheets (unaudited)
 (In thousands)
 3/31/92 12/31/91 3/31/91
 ASSETS
 Cash and due from banks $72,500 $47,714 $27,369
 Federal funds sold and
 securities purchased
 under resale agreements 34,165 170,000 7,000
 Investment securities:
 U.S. government and agencies
 (Market value: $199,200,
 $215,154, $137,400) 196,951 209,182 138,288
 Other debt securities
 (Market value: $11,225,
 $16,571, and $393) 11,288 16,185 400
 Equity securities, at the
 lower of cost or market 34,246 34,411 42,154
 Total investment securities 242,485 259,778 180,842
 Loans and leases:
 Residential first mortgage
 loans:
 Held for investment 983,431 1,027,626 663,706
 Held for sale, at the lower
 of cost or market 372,237 221,057 62,562
 Consumer home equity loans 335,375 333,997 257,190
 Other consumer loans 65,410 79,722 45,760
 Commercial first mortgage
 loans:
 Permanent 363,253 371,958 214,615
 Construction 38,838 48,729 27,106
 Other commercial loans 123,135 132,620 48,375
 Leases 131,484 126,801 95,054
 Less allowance for loan
 losses (82,262) (82,174) (53,608)
 Net loans and leases 2,330,901 2,260,336 1,360,760
 Real estate owned, net 80,565 82,130 70,831
 Real estate held for
 investment 13,036 13,180 13,271
 Premises and equipment 27,515 26,075 17,053
 Mortgage servicing rights 30,199 31,006 21,531
 Other assets 86,953 61,373 48,531
 Total assets $2,918,319 $2,951,592 $1,747,188
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities
 Deposits:
 Demand $241,254 $185,209 $79,199
 Savings 771,364 766,544 177,828
 Money market 218,202 175,542 130,719
 Time 1,227,359 1,334,850 705,496
 Total deposits 2,458,179 2,462,145 1,093,242
 Escrow on first
 mortgage loans 11,588 20,272 5,740
 Short-term borrowings 5,069 3,907 118,151
 Long-term borrowings 261,380 270,079 360,526
 Other liabilities 30,294 45,161 20,455
 Total liabilities 2,766,510 2,801,564 1,598,114
 SHAREHOLDERS' EQUITY
 Preferred stock-voting; no
 par value; 1 million shares
 authorized; none issued and
 outstanding --- --- ---
 Preferred stock-non-voting; no
 par value: 10 million shares
 authorized; none issued and
 outstanding --- --- ---
 Common stock; $1 par value:
 75 million shares authorized:
 12,257,957, 12,253,440 and
 12,228,434 issued and
 outstanding 12,258 12,253 12,228
 Paid-in capital 135,341 135,317 135,264
 Retained earnings 4,210 2,458 1,582
 Total shareholders' equity 151,809 150,028 149,074
 Total liabilities and
 shareholders' equity $2,918,319 $2,951,592 $1,747,188
 -0- 4/27/92
 /CONTACT: Gary A. Fetzer of Centerbank, 203-575-5546 (work), 203-426-7115 (home)/
 (CTBK) CO: Centerbank ST: Connecticut IN: FIN SU: ERN


DD-PB -- NE002 -- 3040 04/27/92 10:47 EDT
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Date:Apr 27, 1992
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