MULTIBANK FINANCIAL CORP. HOLDS ANNUAL MEETING
MULTIBANK FINANCIAL CORP. HOLDS ANNUAL MEETING DEDHAM, Mass., April 27 /PRNewswire/ -- Multibank Financial Corp.
(NASDAQ: MLTF) held its annual meeting of shareholders today at the Hilton at Dedham Place in Dedham, Mass. After greeting shareholders and invited guests, company chairman and chief executive officer, David B. Lynch, highlighted the company's financial performance in 1991 and the first quarter of 1992.
Lynch noted that 1991 had been the second full year of the deep economic recession in New England. He indicated that the company has worked intensively on asset quality and the resolution of problem credits. As a result, Lynch reported that by the end of 1991 the company had reduced non-performing loans to $101,884,000 down from $148,380,000 at the end of 1990. During the same period, the company's level of non-performing assets fell from $189,852,000 to $176,943,000. Lynch said that the $45,886,000 which Multibank had added to the allowance for possible credit losses during 1991 had been the primary contributor to the company's annual net loss. For the year, the company lost $15,241,000 or $1.66, per share, compared to a net loss of $21,301,000 or $2.32 per share in 1990. Also contributing to the loss were unusually high expenses associated with loan workout activities. The company's chairman also reported on the significant expense containment programs of the past fifteen months. These include salary reductions for senior executives and a salary freeze for employees earning more than $20,000 implemented in January 1991, reduced employee Thrift Plan contributions, containment of health care costs and staffing reductions. He reported that the company's number of full-time equivalent employees had dropped from 1,584 at the end of 1990 to 1,442 at year end 1991. Staff reductions, Lynch said, had been achieved largely through attrition. Lynch commented that during the fourth quarter of the year there appeared indications that the economy was improving. During the quarter the company's level of non-performing loans decreased, and there was a lessened need for additions to the company's allowance for possible credit losses. These factors, along with after tax gains on the sale of investment securities and certain credit card related assets, resulted in a profitable fourth quarter, Lynch said. The positive signs of the fourth quarter continued into 1992. As announced earlier this month, the company reported first quarter 1992 net income of $909,000, or 10 cents per share, compared to a net loss of $5,263,000, or 57 cents per share, in the first quarter of 1991. The improved performance was largely the result of a continued reduction in the level of non-performing loans which ended the quarter at $97,354,000, down very substantially from the level of $144,026,000 at March 31, 1991, Lynch reported. In closing, Chairman Lynch was optimistic about the future. "We believe economic conditions in our region are stabilizing and should gradually improve," Lynch said. "We are enthusiastic as we look ahead for Multibank." He indicated that he expected the trends of the last two quarters to continue and said that the strength of the company's community banking franchises add to management's ongoing confidence that Multibank can and will return to greater levels of profitability. Following Lynch's remarks, company President Selwyn I. Atherton expanded upon the company's efforts to improve credit quality. He reported that the loan review function at the holding company had been strengthened through the addition of an experienced vice president of loan review and a staff of four loan review officers. Atherton also said credit administration had been enhanced as the result of the formation of the company's credit policy and credit administration review committee. The committee, whose membership includes Lynch and Atherton and other senior executives, oversees the resolution of problem credits, reviews the status of OREO properties and monitors the adequacy of the company's allowances for possible credit losses. In concluding, Atherton said, "We have worked our way through a substantial amount of loan problems and we are not seeing new ones pop up. Nineteen-ninety-two will be a better year than 1991 and 1993 will be better still." At the conclusion of Atherton's remarks, the program was turned over to Peter F. Russo, senior vice president, treasurer and chief financial officer, who added financial details to the remarks of the company's chairman and president. In discussing the company's captial position, Russo reported that year-end equity capital was 6.16 percent, substantially above required guidelines. Multibank Financial Corp. is a registered bank holding company with five Massachusetts banks. The company's stock is traded on the over-the-counter market and is listed and quoted through the NASDAQ National Market System (NMS) under the symbol MLTF. -0- 4/27/92 /CONTACT: Alan B. Neville of Multibank, 617-461-5572/ (MLTF) CO: Multibank Financial Corp. ST: Massachusetts IN: FIN SU:
TM -- NE012 -- 3369 04/27/92 16:40 EDT
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|Date:||Apr 27, 1992|
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