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INDEPENDENCE BANCORP REPORTS 19.8 PERCENT INCREASE IN FIRST QUARTER NET INCOME

 PERKASIE, Pa., April 21 /PRNewswire/ -- Independence Bancorp (NASDAQ: INBC) today reported net income of $5.2 million for the three months ended March 31, 1993, a 19.8 percent increase as compared to first quarter 1992 income before the effect of a change in accounting for income taxes.
 After this accounting change, net income for the 1992 quarter was restated as $8.7 million.
 Primary earnings per share were $.46 and fully diluted were $.45 at March 31, 1993. Primary and fully diluted earnings per share for the first quarter of 1992 were $.39. After the change in accounting principle, primary earnings per share for the 1992 quarter were $.78 and fully diluted were $.75.
 John D. Harding, president and chief executive officer, commented, "Our earnings improved due to a lower loan loss provision, cost control and higher non-interest income. We're particularly pleased that nonperforming assets decreased from the previous quarter. This is a positive trend as we move ahead in 1993 and regain our earnings momentum."
 Nonperforming assets declined to $52 million, or 3.12 percent of total loans and other real estate owned at March 31, 1993, compared with $53.8 million or 3.21 percent at Dec. 31, 1992.
 Net charge-offs were $2.8 million for the 1993 first quarter compared with $15.5 million for the fourth quarter 1992 and $2.7 million a year ago. The provision for loan losses was $3.2 million, down from $19.3 million at Dec. 31, 1992, and $3.8 million a year ago. At March 31, 1993, Independence's loan loss allowance was $35.1 million, or 2.13 percent of total loans, compared with 2.098 percent at Dec. 31, 1992, and 1.67 percent a year ago. Independence's Tier I capital ratio was 9.97 percent, compared with the minimum regulatory requirement of 4 percent.
 Non-interest income grew 9 percent to $6.6 million in the 1993 quarter, compared with $6 million a year ago. Non-interest expense increased just 0.5 percent to $22.8 million.
 Tax-equivalent net interest income was $27.3 million compared with $27 million a year ago. The net interest margin was 4.53 percent for the 1993 quarter compared with 4.52 percent a year ago. Total loans were $1.65 billion compared with $1.68 billion, while total deposits were $2.15 billion compared with $2.20 billion at March 31, 1992.
 The board of directors of Independence Bancorp on April 20, 1993, declared a quarterly cash dividend of 29 cents per share, payable on May 10 to shareholders of record on April 30. 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.
 Balance Sheets
 (In thousands, except per-share data)
 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
 1993 1992 1992 1992 1992
 Assets:
 Cash and due
 from banks 109,400 153,932 126,230 130,630 133,364
 Interest-bearing
 deposits with banks 46,038 48,667 59,248 66,516 76,889
 Federal funds sold 42,900 63,000 34,100 49,300 22,900
 Other short-term
 investments 11,935 16,999 8,947 14,942 11,454
 Mortgages held for
 sale 27,433 46,739 45,085 39,915 54,875
 Investments held for
 sale 7,628 9,410 52,469 0 0
 Investment
 securities 676,977 652,202 623,577 637,568 599,371
 Loan, net of
 unearned icome 1,650,212 1,660,256 1,655,647 1,654,835 1,676,266
 Less: Allowance
 for possible loans
 losses 35,102 34,634 30,162 28,992 28,075
 Net loans 1,615,110 1,625,622 1,625,485 1,625,843 1,648,191
 Premises and
 equipment, net 35,330 35,850 35,711 35,854 35,781
 Accrued income and
 other assets 68,943 74,488 53,849 57,954 54,423
 Total Assets 2,641,694 2,726,909 2,664,701 2,658,522 2,637,248
 Liabilities:
 Deposits less
 than $100,000 2,075,856 2,130,119 2,059,439 2,124,925 2,081,488
 Deposits greater
 than $100,000 69,927 119,008 100,274 84,086 117,716
 Total Deposits 2,145,783 2,249,127 2,159,713 2,209,011 2,199,204
 Short-term
 borrowings 140,539 129,373 132,724 82,207 101,668
 Long-term
 borrowings 114,211 104,239 94,267 94,295 69,110
 Accrued expenses
 and other
 liabilities 28,670 36,115 62,013 59,102 56,265
 Total
 liabilites 2,429,203 2,518,854 2,448,717 2,444,615 2,426,247
 Total
 shareholders'
 equity 212,491 208,055 215,984 213,907 211,001
 Total
 liabilities and
 shareholders'
 equity 2,641,694 2,726,909 2,664,701 2,658,522 2,637,248
 Average Balances:
 Average assets 2,632,909 2,667,044 2,605,975 2,639,528 2,582,017
 Average earning
 assets 2,443,291 2,478,293 2,425,512 2,445,920 2,401,634
 Average loans 1,651,691 1,651,046 1,662,841 1,685,539 1,662,291
 Average deposits 2,164,088 2,193,019 2,170,460 2,242,020 2,168,098
 Average deposits
 (excluding more
 than $100,000) 2,072,146 2,087,489 2,092,575 2,130,601 2,056,557
 Average equity 209,353 216,902 211,325 207,794 202,484
 Credit Data:
 Nonperforming
 assets (NPAs) 52,025 53,815 44,050 44,250 42,850
 Nonaccrual loans
 (NPLs) 33,615 30,303 24,108 22,294 28,266
 Restructured loans
 (NPLs) 1,586 5,580 5,580 5,580 0
 Other real estate
 owned 16,824 17,932 14,362 16,376 14,584
 Allowance for loan
 losses 35,102 34,634 30,162 28,992 28,075
 Loan loss provision 3,225 19,266 4,175 3,692 3,817
 Net charge-offs 2,757 15,508 3,319 2,775 2,711
 Net charge-offs/
 average loans (Pct.) .68 3.74 .79 .66 .66
 Allowance/period-end
 loans 2.13 2.09 1.82 1.75 1.67
 NPAs/loans plus other
 real estate owned 3.12 3.21 2.64 2.65 2.53
 Allowance/NPLs 99.72 96.52 101.60 104.01 99.32
 INDEPENDENCE BANCORP, INC.
 Results of Operations Quarter Ended March 31, 1993
 (In thousands, except per-share data)
 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
 1993 1992 1992 1992 1992
 Tax-equivalent
 interest income 46,204 48,761 49,572 50,911 51,834
 Interest expense 18,940 20,275 21,305 23,601 24,819
 Net interest income 27,264 28,486 28,267 27,310 27,015
 Provision for possible
 loan losses 3,225 19,266 4,175 3,692 3,817
 Total 24,039 9,220 24,092 23,618 23,198
 Non-interest income:
 Trust income 1,163 1,075 1,006 954 1,042
 Service charges on
 deposit accounts 2,249 2,409 2,384 2,313 2,204
 Other service charges
 and fees 1,791 1,357 1,377 1,652 1,607
 Gains (losses) sales
 of investments (173) (1,009) (275) 4 ---
 Gains (losses) sales
 of mortages 891 815 706 941 872
 Other income 667 1,039 634 515 319
 Total non-interest
 income 6,588 5,686 5,832 6,379 6,044
 Non-interest exp 2,188 2,738
 Net occupancy expense 1,663 1,662 1,712 1,570 1,618
 Furniture and equipment
 expense 1,545 1,678 1,525 1,493 1,543
 Other real estate
 expense 322 1,870 334 412 251
 Other expense 7,510 8,805 7,790 7,846 7,305
 Total non-interest
 expense 22,753 25,127 22,914 22,571 22,639
 Income before taxes 7,874 (10,221) 7,010 7,426 6,603
 Tax equivalent
 adjustment 485 539 575 416 419
 Book tax expense 2,158 (4,027) 1,913 2,054 1,817
 Income tax expense 2,643 (3,488) 2,488 2,470 2,236
 Income before change
 in accounting
 principle 5,231 (6,733) 4,522 4,956 4,367
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- 4,378
 Net income 5,231 (6,733) 4,522 4,956 8,745
 Per Share Data:
 Primary earnings per share:
 Income before change in
 accounting principle $0.46 ($0.60) $0.40 $0.44 $0.39
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- 0.39
 Net income 0.46 (0.60) 0.40 0.44 0.78
 Fully Diluted Earnings
 Per Share:
 Income before change in
 accounting principle 0.45 (0.60) 0.40 0.44 0.39
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- 0.36
 Net income 0.45 (0.60) 0.40 0.44 0.75
 Cash dividends paid 0.29 0.29 0.29 0.29 0.29
 Book value 18.63 18.43 19.27 19.15 18.96
 Average common shares
 outstanding:
 Primary 11,493,009 11,315,313 11,266,383 11,208,723 11,150,966
 Fully
 Diluted 12,656,519 12,515,271 12,429,050 12,393,652 12,324,760
 Selected Ratios (pct):
 Net interest margin
 (tax equivalent) 4.53 4.57 4.64 4.49 4.52
 Return on average
 assets (ROA) 0.81 (1.00) 0.69 0.76 0.68(A)
 Return on average
 equity (ROE) 10.13 (12.35) 8.51 9.59 8.67(A)
 Average equity to
 average assets 7.95 8.13 8.11 7.87 7.84
 Tier 1 capital 9.97 9.60 10.16 10.03 9.60
 Total risk
 based capital 14.37 13.94 14.56 14.42 13.96
 (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 1.36 percent and 17.37 percent, respectively.
 /delval/
 -0- 4/21/93
 /CONTACT: Gary A. Kimball, 215-453-3094, or Philip H. Rinnander, chief financial officer (financial), 215-453-3030, both of Independence Bancorp/
 (INBC)


CO: Independence Bancorp ST: Pennsylvania IN: FIN SU: ERN

LJ-MP -- PH003 -- 8510 04/21/93 09:01 EDT
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