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INDEPENDENCE BANCORP REPORTS 10.8 PERCENT EARNINGS INCREASE FOR 1991

INDEPENDENCE BANCORP REPORTS 10.8 PERCENT EARNINGS INCREASE FOR 1991
 PERKASIE, Pa., Jan. 22 /PRNewswire/ -- Independence Bancorp (NASDAQ: INBC) today reported net income of $19 million for the year ended Dec. 31, 1991, a 10.8 percent increase from $17.1 million reported a year ago.
 Primary earnings per share were $1.72, compared with $1.55 a year ago, and fully diluted earnings per share were $1.71, compared with $1.55 a year ago.
 For the fourth quarter of 1991, Independence reported net income of $4.4 million, or $.40 per primary and fully diluted share, compared with a net loss of $734,000, or a loss of $.07 per primary and fully diluted share a year ago.
 The loan loss provision was $7.2 million in the fourth quarter of 1991, down from $8.8 million in the 1990 quarter. Net charge-offs also decreased to $5.1 million for the 1991 fourth quarter, from $7.5 million in the 1990 quarter.
 As previously announced, in the fourth quarter Independence reported settlement of litigation concerning certain asset-backed bonds that were placed on nonaccrual status in 1987 and had a book value of $5.9 million at the time of the settlement. Independence reported a fourth quarter recovery of $4.1 million in excess of the book value.
 For the year, the company reported a loan loss provision of $18.7 million, compared with $13.2 million a year ago. Nonaccrual loans and other real estate owned were $44.3 million, or 2.65 percent of total loans and other real estate owned, compared with $25.9 million or 1.55 percent a year ago, and $44.1 million, or 2.62 percent in the third quarter of 1991.
 John D. Harding, president and chief executive officer, commented, "We're pleased to report our third consecutive year of earnings improvement, and while economic conditions remain weak, we're encouraged by the trends in nonaccrual loans and other real estate."
 Independence's ratio of loan loss reserves to nonaccrual loans was 97.3 percent at Dec. 31, 1991, compared to 132.6 percent a year ago, and 84.0 percent at Sept. 30, 1991. The allowance for loan losses to total loans was 1.63 percent compared with 1.42 percent a year ago and 1.49 percent in the third quarter.
 Total loans were $1.66 billion at year-end 1991, unchanged from a year ago. Total deposits were $2.18 billion at year-end, compared with $2.23 billion a year ago.
 "Assuming a modest economic recovery in the second half of 1992, we are expecting improvement in loan growth and asset quality. We also will continue to focus on improving our expense ratios in 1992," said Harding.
 Tax-equivalent net interest income was $107.2 million for 1991, an increase of 4.6 percent from $102.5 million a year ago. The net interest margin improved to 4.40 percent for the year, compared with 4.18 percent in 1990.
 Non-interest income for the year ended Dec. 31, 1991, was $28.6 million which included gains of $6.5 million from the first quarter sale of the company's credit card portfolio and the fourth quarter settlement of litigation. Excluding these items, non-interest income was $22.1 million, a 7.1 percent increase over 1990.
 Non-interest expense increased 6.6 percent in 1991 compared with 1990. Excluding increases in FDIC insurance and expense related to other real estate owned, expenses increased 2.7 percent.
 Indepene Independence Bancorp board of directors on Jan. 21, 1991, declared a quarterly cash dividend of $.29 per share, unchanged from the previous quarter.
 Independence Bancorp is a $2.6 billion bank holding company for four community banks in eastern Pennsylvania: Bucks County Bank and Trust Company, Cheltenham Bank, Lehigh Valley Bank and Third National Bank and Trust Company of Scranton.
 INDEPENDENCE BANCORP INC.
 Financial Highlights
 (Dollars in thousands)
 Three months ended 12 months ended
 Dec. 31, Sept. 30, Dec. 31, Dec. 31
 1991 1991 1990 1991 1990
 Income:
 Net income $4,383 $5,023 $(734) $18,956 $17,102
 Per share:
 Primary $.40 $.45 $(.07) $1.72 1.55
 Fully diluted .40 .45 (.07) 1.71 1.55
 Cash dividends paid .29 .29 .29 1.16 1.16
 Book value 18.43 18.35 17.88 18.43 17.88
 Net interest income 26,128 26,691 24,639 104,956 99,502
 Tax-equivalent net
 interest income 26,656 27,219 25,370 107,956 107,216
 Non-interest income 9,979 5,605 4,914 28,621 20,622
 Non-interest expense 23,402 22,717 21,445 90,292 84,706
 Loan loss provision 7,182 2,953 8,756 18,665 13,216
 Net charge-offs 5,133 2,864 7,517 15,266 11,902
 Period-End Balances:
 Total assets 2,602,875 2,643,637 2,643,544 2,602,875 2,643,544
 Total loans 1,655,893 1,669,672 1,658,017 1,655,893 1,658,017
 Allowance for loan
 losses 26,969 24,920 23,570 26,969 23,570
 Total deposits 2,184,281 2,221,080 2,232,546 2,184,281 2,232,546
 Shareholders' equity 203,891 202,635 195,817 203,891 195,817
 Nonaccrual loans 27,717 29,655 17,774 27,717 17,774
 Other real estate
 owned 16,539 14,491 8,106 16,539 8,106
 Average Balances:
 Average assets 2,609,466 2,616,328 2,641,489 2,610,835 2,630,299
 Average earning
 assets 2,428,120 2,439,016 2,457,928 2,434,454 2,453,256
 Average loans 1,664,227 1,656,813 1,650,499 1,654,299 1,661,829
 Average deposits 2,203,318 2,210,884 2,206,822 2,203,502 2,182,115
 Shares Outstanding (millions):
 Total shares
 outstanding 11.061 11.043 10.950 11.061 10.950
 Average primary
 shares 11.087 11.089 10.991 11.047 11.019
 Average fully diluted
 shares 12.257 12.255 12.153 12.220 12.181
 Selected Ratios (pct):
 Net interest margin 4.36 4.43 4.10 4.40 4.18
 Allowance for loan
 losses/loans 1.63 1.49 1.42 1.63 1.42
 Average equity/average
 assets 7.82 7.55 7.46 7.56 7.43
 Net charge-offs to
 average loans 1.22 0.69 1.81 0.92 0.72
 Nonaccrual loans and
 other real estate owned
 to loans and other
 real estate owned 2.65 2.62 1.55 2.65 1.55
 Allowance for possible
 loan losses to
 nonaccrual loans 97.30 84.03 132.61 97.30 132.61
 /delval/
 -0- 1/22/92
 /CONTACT: Gary A. Kimball, 215-453-3094, or Philip H. Rinnander, CFO (financial), 215-453-3030, both of Independence Bancorp/
 (INBC) CO: Independence Bancorp ST: Pennsylvania IN: FIN SU: ERN


JS-MK -- PH005 -- 2205 01/22/92 10:56 EST
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Date:Jan 22, 1992
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