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INDEPENDENCE REPORTS NET INCOME OF $11.5 MILLION FOR 1992; DIVIDEND DECLARED

 PERKASIE, Pa., Jan. 20 /PRNewswire/ -- Independence Bancorp (NASDAQ-NMS: INBC) today reported net income of $11.5 million for the year ended Dec. 31, 1992. Primary and fully diluted earnings per share were $1.02.
 For 1991, net income was $19.0 million. Primary earnings per share were $1.72 and fully diluted were $1.71.
 The Independence Bancorp board of directors on Jan. 19, 1993 declared a quarterly cash dividend of $0.29 per share, unchanged from the previous quarter.
 For the fourth quarter of 1992, Independence reported a net loss of $6.7 million, or a loss of $0.60 per primary and fully diluted share, compared with net income of $4.4 million, or $0.40 per primary and fully diluted share a year ago.
 The loan loss provision was $19.3 million in the fourth quarter of 1992, an increase of $15.1 million from the third quarter, 1992 level of $4.2 million. The provision was $7.2 million in the fourth quarter of 1991. The provision was $31.0 million for the full-year 1992, compared with $18.7 million a year ago.
 Net charge-offs were $15.5 million for the fourth quarter, and $24.3 million for the full year, compared with $5.3 million in the 1991 fourth quarter and $15.3 million for the full-year 1991.
 John D. Harding, president and chief executive officer, commented, "The higher charge-offs and loan loss provision resulted primarily from the sudden deterioration of several large commercial credits. We took immediate action to address this situation.
 "Although our current results were adversely affected by our actions in the fourth quarter, our capital position and underlying structure remain strong."
 Nonperforming loans, including nonaccrual loans, restructured loans and other real estate owned, were $53.8 million, or 3.21 percent of total loans and other real estate owned, compared with $44.3 million or 2.65 percent a year ago. Independence's allowance for possible loan losses to nonaccrual loans was 114.3 percent at Dec. 31, 1992, compared with 97.3 percent a year ago. The allowance for loan losses to total loans was 2.09 percent compared with 1.63 percent a year ago.
 Independence's Tier I capital ratio was 9.62 percent at Dec. 31, 1992, well above the required minimum of 4 percent.
 Also in the fourth quarter, Independence adopted Financial Accounting Standard No. 109, Accounting for Income Taxes. Results for the year reflect the cumulative effect of the change in accounting principle as a positive adjustment of $4.4 million.
 Total loans were $1.67 billion at year-end 1992, up from $1.66 billion a year ago. Total deposits were $2.25 billion at year-end, up from $2.18 billion a year ago.
 Tax equivalent net interest income was $111.1 million for 1992, an increase of 3.6 percent from $107.3 million a year ago. The net interest margin was 4.55 percent for the year, compared with 4.41 percent in 1991.
 Non-interest income for the year ended Dec. 31, 1992, was $23.9 million, compared with $28.5 million a year ago. Non-interest income in 1991 included $6.5 million in non-recurring gains from the sale of the company's credit card portfolio and from the settlement of litigation. Excluding these gains, non-interest income grew 8.2 percent in 1992.
 Non-interest expense increased 3.4 percent compared with 1991.
 Independence Bancorp is a $2.7 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
 (Dollars in thousands)
 Period ended Three Months Twelve Months
 December 31, 1992 1991 1992 1991
 Income:
 Net income before
 effect of cumulative
 change in accounting
 principle ($6,732) $4,383 $7,113 $18,956
 Cumulative effect on
 prior years of change
 in different tax
 accounting method -- -- 4,378 --
 Net income after effect
 of cumulative change in
 accounting principle (6,732) 4,383 11,491 18,956
 Per share:
 Primary earnings before
 effect of cumulative
 change in accounting
 principle ($0.60) $0.40 $0.63 $1.72
 Cumulative effect on
 prior year of change
 in different tax
 accounting method -- -- 0.39 --
 Primary earnings after
 effect of cumulative
 change in accounting
 principle ($0.60) $0.40 $1.02 $1.72
 Fully diluted earnings
 before effect of
 cumulative change in
 accounting principle ($0.60) $0.40 $0.63 $1.71
 Cumulative effect on
 prior year of change in
 different tax
 accounting method -- -- 0.39 --
 Fully diluted earnings
 after effect of
 cumulative change in
 accounting principle (0.60) 0.40 1.02 1.71
 Cash dividends paid 0.29 0.29 1.16 1.16
 Book value 18.40 18.43 18.40 18.43
 Net interest income 27,947 26,168 109,129 105,042
 Tax-equivalent net
 interest income 28,485 26,696 111,078 107,302
 Non-interest income 5,686 9,862 23,941 28,452
 Non-interest expense 25,127 23,325 93,251 90,209
 Loan loss provision 19,266 7,182 30,950 18,665
 Net charge-offs 15,508 5,133 24,313 15,266
 Period-End Balances:
 Total assets 2,726,602 2,602,875 2,726,602 2,602,875
 Total loans 1,660,257 1,655,893 1,660,257 1,655,893
 Allowance for
 loan losses 34,634 26,969 34,634 26,969
 Total deposits 2,249,127 2,184,281 2,249,127 2,184,281
 Shareholders' equity 207,748 203,891 207,748 203,891
 Nonaccrual loans 30,303 27,717 30,303 27,717
 Restructured loans 5,580 -- 5,580 --
 Other real estate owned 17,932 16,539 17,932 16,539
 Average Balances:
 Average assets 2,664,271 2,609,466 2,622,979 2,610,835
 Average earning
 assets 2,477,984 2,428,120 2,439,560 2,434,454
 Average loans 1,651,046 1,664,227 1,665,311 1,654,299
 Average deposits 2,193,008 2,203,318 2,193,546 2,203,502
 Share Outstanding
 (In Millions):
 Total shares
 outstanding 11.291 11.061 11.291 11.061
 Average primary shares 11.293 11.087 11.237 11.047
 Average fully diluted
 shares 12.493 12.257 12.455 12.220
 Selected Ratios
 (In Percent):
 Net interest margin 4.57 4.36 4.55 4.41
 Allowance for loan
 losses/loans 2.09 1.63 2.09 1.63
 Average equity/average
 assets 8.00 7.82 7.97 7.56
 Net charge-offs to
 average loans 3.74 1.22 1.46 0.92
 Nonperforming loans to
 loans and other real
 estate owned 3.21 2.65 3.21 2.65
 Allowance for possible
 loan losses to
 nonaccrual loans 114.29 97.30 114.29 97.30
 -0- 1/20/93
 /CONTACT: Investors: Philip H. Rinnander, chief financial officer, 215-453-3030, or media, Gary A. Kimball, corporate communications, 215-453-3094, both of Independence Bancorp/
 (INBC)


CO: Independence Bancorp ST: Pennsylvania IN: FIN SU: ERN TM-LD -- NY003 -- 6714 01/20/93 08:22 EST
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Date:Jan 20, 1993
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