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INDEPENDENCE BANCORP REPORTS THIRD QUARTER NET INCOME OF $6 MILLION

 PERKASIE, Pa., Oct. 20 /PRNewswire/ -- Independence Bancorp (NASDAQ: INBC) today reported net income of $6 million for the three months ended Sept. 30, 1993, a 33.3 percent increase compared with $4.5 million a year ago.
 Primary earnings per share were $.52 and fully diluted earnings per share were $.51 for the 1993 quarter, compared with primary and fully diluted earnings per share of $.40 for the same quarter a year ago.
 Net income for the nine-month period ended Sept. 30, 1993, was up 23.2 percent to $17.1 million, compared with $13.8 million a year ago before the effect of a change in accounting for income taxes adopted last year. Primary earnings per share were $1.48 and fully diluted earnings per share were $1.46, compared with primary earnings per share of $1.24 and fully diluted of $1.23 a year ago before the effect of a change in accounting for income taxes adopted last year.
 John D Harding, president and chief executive officer, commented, "We're encouraged by our third consecutive quarter of improving credit quality and higher profits. While loan demand is weak, higher non- interest income and lower loan loss provisions are enabling us to continue earnings improvement in 1993."
 Tax-equivalent net interest income for the quarter was $27 million, compared with $28.3 million a year ago, as the net interest margin contracted to 4.41 percent from 4.64 percent a year ago.
 At Sept. 30, 1993, total loans were $1.68 billion, compared with $1.66 billion a year ago, while total deposits at period-end were unchanged at $2.16 billion.
 The loan loss provision was $2.5 million for the third quarter compared with $4.2 million a year ago, and $3.3 million for the second quarter ended June 30, 1993. For the nine-month period, the provision totaled $9.1 million compared with $11.7 million a year ago.
 Nonperforming assets, including non accrual loans, restructured loans and other real estate owned, dropped to $42.9 million at Sept. 30, 1993, or 2.53 percent of loans and other real estate owned, down from $44.1 million or 2.64 percent at Sept. 30, 1992, and $46.4 million or 2.71 percent at June 30, 1993.
 Net charge-offs were $3.6 million for the quarter, compared with $3.3 million a year ago and $3.6 million for the quarter ended June 30, 1993.
 Non-interest income grew to $8.5 million for the quarter ended Sept. 30, 1993. Included in non-interest income is $1.4 million of a total $3.3 million payment received on a previously charged-off credit. The balance is included in net charge-offs as a recovery. Excluding this item, non-interest income grew 22.6 percent over the same quarter of 1992.
 Non-interest expense for the third quarter of 1993 increased by $1.3 million over the same quarter in 1992. This increase was in expense primarily related to other real estate, and other expense which included increased consulting fees and severance expense.
 Return on average assets was .91 percent for the quarter, compared with .69 percent for the same quarter in 1992. Return on average equity for the quarter was 11.03 percent compared with 8.51 percent a year ago.
 Independence's allowance for loan losses was $33.7 million, or 2.01 percent of total loans at Sept. 30, 1993, compared with 1.82 percent a year ago. Independence's Tier 1 capital ratio was a strong 10.25 percent at Sept. 30, 1993.
 The board of directors of Independence Bancorp on Oct. 19, 1993, declared a quarterly cash dividend of $.29 per share, unchanged from the previous quarter. The dividend, payable on Nov. 10, 1993, to shareholders of record on Oct. 29, 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 -- Quarter Ended Sept. 30, 1993
 (In thousands, except per-share data)
 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
 1993 1993 1993 1992 1992
 Assets:
 Cash and due
 from banks $116,762 $121,683 $109,400 $153,932 $126,230
 Interest-bearing
 deposits with banks 37,487 36,785 46,038 48,667 59,248
 Federal funds sold 49,600 48,100 42,900 63,000 34,100
 Other short-term
 investments 9,926 2,986 11,935 16,999 8,947
 Mortgages held for
 sale 41,495 49,707 27,433 46,739 45,085
 Investments held for
 sale 5,813 6,050 8,563 9,410 52,469
 Investment
 securities 602,732 621,547 676,042 652,202 623,577
 Loans, net of
 unearned income 1,679,627 1,694,521 1,650,212 1,660,256 1,655,647
 Less: Allowance
 for possible loans
 losses 33,736 34,873 35,102 34,634 30,162
 Net loans 1,645,891 1,659,648 1,615,110 1,625,622 1,625,485
 Premises and
 equipment, net 34,202 34,849 35,330 35,850 35,711
 Accrued income and
 other assets 59,585 64,003 68,943 74,488 53,849
 Total assets 2,603,493 2,645,358 2,641,694 2,726,909 2,664,701
 Liabilities:
 Deposits less
 than $100,000 2,059,119 2,078,180 2,075,856 2,130,119 2,059,439
 Deposits greater
 than $100,000 96,467 70,619 69,927 119,008 100,274
 Total Deposits 2,155,586 2,148,799 2,145,783 2,249,127 2,159,713
 Short-term
 borrowings 67,875 104,925 140,539 129,373 132,724
 Long-term
 borrowings 134,285 134,322 114,211 104,239 94,267
 Accrued expenses
 and other
 liabilities 26,123 41,447 28,670 36,115 62,013
 Total
 liabilites 2,383,869 2,429,493 2,429,203 2,518,854 2,448,717
 Total
 shareholders'
 equity 219,624 215,865 212,491 208,055 215,984
 Total
 liabilities and
 shareholders'
 equity 2,603,493 2,645,358 2,641,694 2,726,909 2,664,701
 Average Balances:
 Average assets 2,621,091 2,619,227 2,632,909 2,667,044 2,605,975
 Average earning
 assets 2,431,952 2,426,606 2,443,291 2,478,293 2,425,512
 Average loans 1,686,962 1,684,059 1,651,691 1,651,046 1,662,841
 Average deposits 2,166,771 2,142,374 2,164,088 2,193,019 2,171,052
 Average deposits
 (excluding more
 than $100,000) 2,082,510 2,081,523 2,072,146 2,087,489 2,093,167
 Average equity 216,846 212,231 209,353 216,902 211,325
 Credit Data:
 Nonperforming
 assets (NPAs) 42,901 46,418 52,025 53,815 44,050
 Nonaccrual loans
 (NPLs) 26,936 28,187 33,615 30,303 24,108
 Restructured loans
 (NPLs) 1,586 1,586 1,586 5,580 5,580
 Other real estate
 owned 14,379 16,645 16,824 17,932 14,362
 Allowance for loan
 losses 33,736 34,873 35,102 34,634 30,162
 Loan loss provision 2,505 3,325 3,225 19,266 4,175
 Net charge-offs 3,642 3,554 2,757 15,508 3,319
 Net charge-offs/
 average loans (Pct.) .86 .85 .68 3.74 .79
 Allowance/period-end
 loans 2.01 2.06 2.13 2.09 1.82
 NPAs/loans plus other
 real estate owned 2.53 2.71 3.12 3.21 2.64
 Allowance/NPLs 118.28 117.13 99.72 96.52 101.60
 Nine months ended Sept. 30 1993 1992
 Assets:
 Cash and due
 from banks $116,762 $126,230
 Interest-bearing
 deposits with banks 37,487 59,248
 Federal funds sold 49,600 34,100
 Other short-term
 investments 9,926 8,947
 Mortgages held for
 sale 41,495 45,085
 Investments held for
 sale 5,813 52,469
 Investment
 securities 602,732 623,577
 Loans, net of
 unearned income 1,679,627 1,655,647
 Less: Allowance
 for possible loans
 losses 33,736 30,162
 Net loans 1,645,891 1,625,485
 Premises and
 equipment, net 34,202 35,711
 Accrued income and
 other assets 59,585 53,849
 Total Assets 2,603,493 2,664,701
 Liabilities:
 Deposits less
 than $100,000 2,059,119 2,059,439
 Deposits greater
 than $100,000 96,467 100,274
 Total Deposits 2,155,586 2,159,713
 Short-term
 borrowings 67,875 132,724
 Long-term
 borrowings 134,285 94,267
 Accrued expenses
 and other
 liabilities 26,123 62,013
 Total
 liabilites 2,383,869 2,448,717
 Total
 shareholders'
 equity 219,624 215,984
 Total
 liabilities and
 shareholders'
 equity 2,603,493 2,664,701
 Average Balances:
 Average assets 2,624,126 2,609,026
 Average earning
 assets 2,433,908 2,426,582
 Average loans 1,674,366 1,670,127
 Average deposits 2,157,399 2,193,723
 Average deposits
 (excluding more
 than $100,000) 2,079,987 2,094,561
 Average equity 212,991 207,245
 Credit Data:
 Nonperforming
 assets (NPAs) 42,901 44,050
 Nonaccrual loans
 (NPLs) 26,936 24,108
 Restructured loans
 (NPLs) 1,586 5,580
 Other real estate
 owned 14,379 14,362
 Allowance for loan
 losses 33,736 30,162
 Loan loss provision 9,055 11,684
 Net charge-offs 9,953 8,805
 Net charge-offs/
 average loans (Pct.) .79 .70
 Allowance/period-end
 loans 2.01 1.82
 NPAs/loans plus other
 real estate owned 2.53 2.64
 Allowance/NPLs 118.28 101.60
 INDEPENDENCE BANCORP, INC.
 Results of Operations -- Quarter Ended Sept. 30, 1993
 (In thousands, except per-share data)
 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
 1993 1993 1993 1992 1992
 Taxable equivalent
 interest income 44,397 45,393 46,204 48,761 49,572
 Interest expense 17,363 17,868 18,940 20,275 21,305
 Taxable equivalent
 net interest
 income 27,034 27,525 27,264 28,486 28,267
 Provision for possible
 loan losses 2,505 3,325 3,225 19,266 4,175
 Net interest income
 after provision for
 possible loan losses 24,529 24,200 24,039 9,220 24,092
 Non-interest income:
 Trust income 1,100 1,061 1,163 1,075 1,006
 Service charges on
 deposit accounts 2,480 2,443 2,249 2,409 2,384
 Other service charges
 and fees 1,719 1,603 1,791 1,357 1,377
 Securities gains
 (losses) (26) 94 (173) (1,009) (275)
 Gains (losses) sales
 of mortgages 1,086 1,091 891 815 706
 Other income 2,179 657 667 1,039 634
 Total non-interest
 income 8,538 6,949 6,588 5,686 5,832
 Non-interest expense:
 Salaries 9,168 8,950 9,265 8,847 9,108
 Employee benefits 2,286 2,251 2,448 2,265 2,445
 Net occupancy expense 1,700 1,666 1,663 1,662 1,712
 Furniture and equipment
 expense 1,434 1,513 1,545 1,678 1,525
 Other real estate
 expense 874 662 322 1,870 334
 Other expense 8,753 8,075 7,510 8,805 7,790
 Total non-interest
 expense 24,215 23,117 22,753 25,127 22,914
 Income before taxes 8,852 8,032 7,874 (10,221) 7,010
 Taxable equivalent
 adjustment 545 473 485 539 575
 Book tax expense 2,279 1,762 2,158 (4,027) 1,913
 Income tax expense 2,824 2,235 2,643 (3,488) 2,488
 Income before change
 in accounting
 principle 6,028 5,797 5,231 (6,733) 4,522
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- ---
 Net income 6,028 5,797 5,231 (6,733) 4,522
 Per Share Data:
 Primary earnings per share:
 Income before change in
 accounting principle $0.52 $0.50 $0.46 ($0.60) $0.40
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- ---
 Net income 0.52 0.50 0.46 (0.60) 0.40
 Fully Diluted Earnings
 Per Share:
 Income before change in
 accounting principle 0.51 0.50 0.45 (0.60) 0.40
 Cumulative effect of
 change in tax
 accounting method --- --- --- --- ---
 Net income 0.51 0.50 0.45 (0.60) 0.40
 Cash dividends paid 0.29 0.29 0.29 0.29 0.29
 Book value 19.12 18.86 18.63 18.43 19.27
 Average common shares
 outstanding:
 Primary 11,570,400 11,482,365 11,493,009 11,315,313 11,266,383
 Fully
 Diluted 12,753,281 12,645,058 12,656,519 12,515,271 12,429,050
 Selected Ratios (pct):
 Net interest margin
 (taxable equivalent) 4.41 4.55 4.53 4.57 4.64
 Return on average
 assets (ROA) 0.91 0.89 0.81 (1.00) 0.69
 Return on average
 equity (ROE) 11.03 10.96 10.13 (12.35) 8.51
 Average equity to
 average assets 8.27 8.10 7.95 8.13 8.11
 Tier 1 capital/
 risk-based assets 10.25 9.99 9.97 9.60 10.16
 Total capital/
 risk-based assets 14.64 14.35 14.37 13.94 14.56
 Nine months ended Sept. 30 1993 1992
 Taxable equivalent
 interest income 135,994 152,317
 Interest expense 54,171 69,725
 Taxable equivalent
 net interest
 income 81,823 82,592
 Provision for possible
 loan losses 9,055 11,684
 Net interest income
 after provision for
 possible loan losses 72,768 70,908
 Non-interest income:
 Trust income 3,324 3,002
 Service charges on
 deposit accounts 7,172 6,901
 Other service charges
 and fees 5,113 4,636
 Securities gains
 (losses) (105) (271)
 Gains (losses) sales
 of mortgages 3,068 2,519
 Other income 3,503 1,468
 Total non-interest
 income 22,075 18,255
 Non-interest expense:
 Salaries 27,383 27,354
 Employee benefits 6,985 7,371
 Net occupancy expense 5,029 4,900
 Furniture and equipment
 expense 4,492 4,561
 Other real estate
 expense 1,858 997
 Other expense 24,338 22,941
 Total non-interest
 expense 70,085 68,124
 Income before taxes 24,758 21,039
 Taxable equivalent
 adjustment 1,503 1,410
 Book tax expense 6,199 5,784
 Income tax expense 7,702 7,194
 Income before change
 in accounting
 principle 17,056 13,845
 Cumulative effect of
 change in tax
 accounting method --- 4,378
 Net income 17,056 18,223
 Per Share Data:
 Primary earnings per share:
 Income before change in
 accounting principle $1.48 $1.24
 Cumulative effect of
 change in tax
 accounting method --- .39
 Net income 1.48 1.63
 Fully Diluted Earnings
 Per Share:
 Income before change in
 accounting principle 1.46 1.23
 Cumulative effect of
 change in tax
 accounting method --- 0.36
 Net income 1.46 1.59
 Cash dividends paid 0.87 0.87
 Book value --- ---
 Average common shares
 outstanding:
 Primary 11,498,259 11,210,414
 Fully
 Diluted 12,689,077 12,384,358
 Selected Ratios (pct):
 Net interest margin
 (taxable equivalent) 4.49 4.55
 Return on average
 assets (ROA) 0.87 0.71(A)
 Return on average
 equity (ROE) 10.71 8.92(A)
 Average equity to
 average assets 8.12 7.94
 Tier 1 capital/
 risk-based assets 10.25 10.16
 Total capital/
 risk-based assets 14.64 14.56
 (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 .93 percent and 11.75 percent, respectively.
 /delval/
 -0- 10/20/93
 /CONTACT: Philip H. Rinnander, chief financial officer, 215-453-3030, or Gary A. Kimball, corporate communications, 215-453-3094, of Independence Bancorp/
 (INBC)


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

JM-PL -- PH002 -- 4399 10/20/93 09:01 EDT
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