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INDEPENDENCE BANCORP REPORTS 17 PERCENT INCREASE IN SECOND QUARTER NET INCOME

    PERKASIE, Pa., July 21 /PRNewswire/ -- Independence Bancorp (NASDAQ: INBC) today reported net income of $5.8 million for the three months ended June 30, 1993, a 17.0 percent increase from the second quarter of 1992.
    Primary and fully diluted earnings per share for the second quarter were 50 cents, compared with 44 cents primary and fully diluted a year ago.
    For the six-month period ended June 30, 1993, net income increased 18.3 percent to $11.0 million compared with $9.3 million a year ago before the effect of a change in accounting for income taxes.  Primary earnings per share for the six-month period in 1993 were $.96 and fully diluted earnings per share were $.95 compared with primary and fully diluted earnings per share of $.83 a year ago before the effect of a change in accounting for income taxes.
    John D. Harding, president and chief executive officer, commented, "We're pleased with the trends in our nonperforming assets and profitability in the second quarter. This performance is consistent with our goals for this year -- to improve credit quality, maintain a strong capital position, continue to improve efficiency, and improve earnings."
    Nonperforming assets, including nonaccrual loans, restructured loans and other real estate owned, were $46.4 million or 2.71 percent of total loans and other real estate owned, compared with $52.0 million or 3.12 percent in the first quarter of 1993 and $44.3 million, or 2.65 percent a year ago.
    The loan loss provision was $3.3 million for the second quarter of 1993, compared with $3.7 million a year ago. For the six-month period, the provision totaled $6.6 million compared with $7.5 million a year ago. Net charge-offs were $3.6 million for the quarter, compared with $2.8 million a year ago.
    At June 30, 1993, Independence's loan loss allowance was $34.9 million, or 2.06 percent of total loans, compared with 1.75 percent a year ago. Independence's Tier 1 capital ratio was 9.99 percent at June 30, 1993.
    Total loans were $1.69 billion for the second quarter, compared with $1.65 billion a year ago. Total deposits were $2.15 billion for the second quarter, compared with $2.21 billion a year ago.
    Net interest income on a taxable equivalent basis was $27.5 million for the second quarter of 1993, compared with $27.3 million a year ago. The net interest margin was 4.55 percent for the second quarter, compared with 4.49 percent a year ago.
    Non-interest income grew 9 percent to $6.9 million in the second quarter, compared with $6.4 million a year ago. Non-interest expense increased 2.4 percent to $23.1 million at June 30, 1993.
    For the second quarter of 1993, return on average assets was 0.89 percent, compared with 0.76 percent a year ago, and return on average equity was 10.96 percent, compared with 9.59 percent a year ago.
    The board of directors of Independence Bancorp on July 20, 1993, declared a quarterly cash dividend of 29 cents per share, payable on Aug. 10 to shareholders of record on July 3O. The dividend, unchanged from the previous quarter, pays an annual rate of $1.16. Independence has approximately 11 million shares outstanding.
    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.
         Results of Operations -- Quarter Ended June 30, 1993
               (In thousands, except per-share data)
                        2nd Qtr.  1st Qtr.  4th Qtr.  3rd Qtr.  2nd Qtr.
                          1993      1993      1992      1992      1992
    Taxable equivalent
       interest income    45,393    46,204    48,761    49,572   50,911
    Interest expense      17,868    18,940    20,275    21,305   23,601
    Taxable equivalent
       net interest
       income             27,525    27,264    28,486    28,267   27,310
    Provision for possible
        loan losses        3,325     3,225    19,266     4,175    3,692
    Total                 24,200    24,039     9,220    24,092   23,618
    Non-interest income:
    Trust income           1,061     1,163     1,075     1,006      954
    Service charges on
        deposit accounts   2,443     2,249     2,409     2,384    2,313
    Other service charges
        and fees           1,603     1,791     1,357     1,377    1,652
    Securities gains
        (losses)              94      (173)   (1,009)     (275)       4
    Gains (losses) sales
        of mortgages       1,091       891       815       706      941
    Other income             657       667     1,039       634      515
      Total non-interest
         income             6,949    6,588     5,686     5,832    6,379
    Non-interest expense:
    Salaries                8,950    9,265     8,847     9,108    9,062
    Employee benefits       2,251    2,448     2,265     2,445    2,188
    Net occupancy expense   1,666    1,663     1,662     1,712    1,570
    Furniture and equipment
      expense               1,513    1,545     1,678     1,525    1,493
    Other real estate
      expense                 662      322     1,870       334      412
    Other expense           8,075    7,510     8,805     7,790    7,846
       Total non-interest
          expense          23,117   22,753    25,127    22,914   22,571
        Income before taxes 8,032    7,874   (10,221)    7,010    7,426
    Taxable equivalent
       adjustment             473      485       539       575      416
    Book tax expense        1,762    2,158    (4,027)    1,913    2,054
       Income tax expense   2,235    2,643    (3,488)    2,488    2,470
    Income before change
       in accounting
       principle            5,797    5,231    (6,733)    4,522    4,956
    Cumulative effect of
       change in tax
       accounting method      ---      ---       ---       ---      ---
    Net income              5,797    5,231    (6,733)    4,522    4,956
    Per Share Data:
    Primary earnings per share:
    Income before change in
      accounting principle  $0.50    $0.46    ($0.60)     $0.40   $0.44
    Cumulative effect of
      change in tax
      accounting method       ---      ---       ---        ---     ---
    Net income               0.50     0.46     (0.60)      0.40    0.44
    Fully Diluted Earnings
       Per Share:
    Income before change in
       accounting principle  0.50     0.45     (0.60)      0.40    0.44
    Cumulative effect of
       change in tax
       accounting method      ---      ---       ---        ---     ---
    Net income               0.50     0.45     (0.60)      0.40    0.44
    Cash dividends paid      0.29     0.29      0.29       0.29    0.29
    Book value              18.86    18.63     18.43      19.27   19.15
    Average common shares
     outstanding:
     Primary      11,482,365 11,493,009 11,315,313 11,266,383 11,208,723
     Fully
      Diluted     12,645,058 12,656,519 12,515,271 12,429,050 12,393,652
    Selected Ratios (pct):
    Net interest margin
     (taxable equivalent)    4.55     4.53      4.57     4.64    4.49
    Return on average
     assets (ROA)            0.89     0.81     (1.00)    0.69    0.76
    Return on average
     equity (ROE)           10.96    10.13    (12.35)    8.51    9.59
    Average equity to
     average assets          8.10     7.95      8.13     8.11    7.87
    Tier 1 capital           9.99     9.97      9.60    10.16   10.03
    Total risk
     based capital          14.35    14.37     13.94    14.56   14.42
    Six months ended June 30  1993            1992
    Taxable equivalent
       interest income       91,597         102,745
    Interest expense         36,808          48,420
    Taxable equivalent
       net interest
       income                54,789          54,325
    Provision for possible
        loan losses           6,550           7,509
    Total                    48,239          46,816
    Non-interest income:
    Trust income              2,224           1,996
    Service charges on
        deposit accounts      4,692           4,517
    Other service charges
        and fees              3,394           3,259
    Securities gains
        (losses)                (79)              4
    Gains (losses) sales
        of mortgages          1,982           1,813
    Other income              1,324             834
      Total non-interest
         income              13,537          12,423
    Non-interest expense:
    Salaries                 18,215          18,246
    Employee benefits         4,699           4,926
    Net occupancy expense     3,329           3,188
    Furniture and equipment
      expense                 3,058           3,036
    Other real estate
      expense                   984             663
    Other expense            15,585          15,151
       Total non-interest
          expense            45,870          45,210
        Income before taxes  15,906          14,029
    Taxable equivalent
       adjustment               958             835
    Book tax expense          3,920           3,871
       Income tax expense     4,878           4,706
    Income before change
       in accounting
       principle             11,028           9,323
    Cumulative effect of
       change in tax
       accounting method        ---           4,378
    Net income               11,028          13,701
    Per Share Data:
    Primary earnings per share:
    Income before change in
      accounting principle    $0.96           $0.83
    Cumulative effect of
      change in tax
      accounting method         ---             .39
    Net income                 0.96            1.22
    Fully Diluted Earnings
       Per Share:
    Income before change in
       accounting principle    0.95            0.83
    Cumulative effect of
       change in tax
       accounting method        ---            0.36
    Net income                 0.95            1.19
    Cash dividends paid        0.58            0.58
    Book value                  ---             ---
    Average common shares
     outstanding:
     Primary             11,461,716      11,179,749
     Fully
      Diluted            12,624,818      12,369,906
    Selected Ratios (pct):
    Net interest margin
     (taxable equivalent)      4.54           4.51
    Return on average
     assets (ROA)              0.85           0.72(A)
    Return on average
     equity (ROE)             10.54           9.14(A)
    Average equity to
     average assets            8.04           7.86
    Tier 1 capital              ---            ---
    Total risk
     based capital              ---            ---
    (A) Return on assets (ROA) and Return on equity (ROE) do not include cumulative effect of change in tax accounting method.  Had this effect been included, ROA and ROE would have been 1.06 percent and 13.43 percent, respectively.
                     INDEPENDENCE BANCORP, INC.
             Balance Sheets -- Quarter Ended June 30, 1993
                (In thousands, except per-share data)
                        2nd Qtr.  1st Qtr.  4th Qtr.  3rd Qtr.  2nd Qtr.
                          1993      1993      1992      1992      1992
    Assets:
    Cash and due
     from banks          121,683   109,400   153,932   126,230   130,630
    Interest-bearing
     deposits with banks  36,785    46,038    48,667    59,248    66,516
    Federal funds sold    48,100    42,900    63,000    34,100    49,300
    Other short-term
     investments           2,986    11,935    16,999     8,947    14,942
    Mortgages held for
     sale                 49,707    27,433    46,739    45,085    39,915
    Investments held for
     sale                  6,050     8,563     9,410    52,469         0
    Investment
     securities          621,547   676,042   652,202   623,577   637,568
    Loans, net of
     unearned income   1,694,521 1,650,212 1,660,256 1,655,647 1,654,835
    Less: Allowance
     for possible loans
     losses               34,873    35,102    34,634    30,162    28,992
    Net loans          1,659,648 1,615,110 1,625,622 1,625,485 1,625,843
    Premises and
     equipment, net       34,849    35,330    35,850    35,711    35,854
    Accrued income and
     other assets         64,003    68,943    74,488    53,849    57,954
    Total Assets       2,645,358 2,641,694 2,726,909 2,664,701 2,658,522
    Liabilities:
     Deposits less
      than $100,000    2,078,180 2,075,856 2,130,119 2,059,439 2,124,925
     Deposits greater
      than $100,000       70,619    69,927   119,008   100,274    84,086
       Total Deposits  2,148,799 2,145,783 2,249,127 2,159,713 2,209,011
     Short-term
      borrowings         104,925   140,539   129,373   132,724    82,207
     Long-term
      borrowings         134,322   114,211   104,239    94,267    94,295
     Accrued expenses
      and other
      liabilities         41,447    28,670    36,115    62,013    59,102
       Total
        liabilites     2,429,493 2,429,203 2,518,854 2,448,717 2,444,615
       Total
        shareholders'
        equity           215,865   212,491   208,055   215,984   213,907
       Total
        liabilities and
        shareholders'
        equity         2,645,358 2,641,694 2,726,909 2,664,701 2,658,522
    Average Balances:
     Average assets    2,619,227 2,632,909 2,667,044 2,605,975 2,639,528
     Average earning
      assets           2,426,606 2,443,291 2,478,293 2,425,512 2,445,920
     Average loans     1,684,059 1,651,691 1,651,046 1,662,841 1,685,539
     Average deposits  2,142,374 2,164,088 2,193,019 2,170,460 2,242,020
     Average deposits
      (excluding more
      than $100,000)   2,081,523 2,072,146 2,087,489 2,092,575 2,130,601
     Average equity      212,231   209,353   216,902   211,325   207,794
    Credit Data:
     Nonperforming
      assets (NPAs)       46,418    52,025    53,815    44,050    44,250
      Nonaccrual loans
       (NPLs)             28,187    33,615    30,303    24,108    22,294
      Restructured loans
        (NPLs)             1,586     1,586     5,580      5,580    5,580
      Other real estate
       owned              16,645    16,824    17,932     14,362   16,376
     Allowance for loan
      losses              34,873    35,102    34,634     30,162   28,992
     Loan loss provision   3,325     3,225    19,266      4,175    3,692
     Net charge-offs       3,554     2,757    15,508      3,319    2,775
     Net charge-offs/
      average loans (Pct.)   .85       .68      3.74        .79      .66
     Allowance/period-end
      loans                 2.06      2.13      2.09       1.82     1.75
     NPAs/loans plus other
      real estate owned     2.71      3.12      3.21       2.64     2.65
     Allowance/NPLs       117.13     99.72     96.52     101.60   104.01
    Six months ended June 30    1993            1992
     Assets:
    Cash and due
     from banks               121,683          130,630
    Interest-bearing
     deposits with bank        36,785           66,516
    Federal funds sold         48,100           49,300
    Other short-term
     investments                2,986           14,942
    Mortgages held for
     sale                      49,707           39,915
    Investments held fo
     sale                       6,050                0
    Investment
     securities               621,547          637,568
    Loans, net of
     unearned income        1,694,521        1,654,835
    Less: Allowance
     for possible loans
     losses                    34,873           28,992
    Net loans               1,659,648        1,625,843
    Premises and
     equipment, net            34,849           35,854
    Accrued income and
     other assets              64,003           57,954
    Total Assets            2,645,358        2,658,522
    Liabilities:
     Deposits less
      than $100,000         2,078,180        2,124,925
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Date:Jul 21, 1993
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