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 PHILADELPHIA, April 14 /PRNewswire/ -- Old York Road Bancorp, Inc. (NASDAQ: BOYR) said today it has restated its fourth quarter and year-end results for 1993. The restatement came after State and Federal bank supervisory agencies required the Company to downgrade the classification of certain loans by the Company's subsidiary, the Bank and Trust Company of Old York Road, which must be completed 30 days subsequent to the issuance of their report which is anticipated by the end of the 2nd quarter of 1994. This reclassification resulted in an additional $1.7 million charge to income which, in accordance with generally accepted accounting principles, was recorded as of December 31, 1993.
 "Even with this adjustment, 1993 still showed improvement over the previous year," said Bank President Stephen Szemes. After the adjustment, the Company posted a loss for the year of $404,000 or ($.28) per share, compared to a loss of $4.3 million, or ($3.28) per share, in 1992. Restated fourth quarter results showed a loss of $1.5 million, or ($.84) per share, compared to a lose of $1.6 million, or ($1.20) per share in 1992.
 "The Bank has made significant progress since the loss years of 1991 and 1992," Szemes said. "The actions of the State and Federal agencies were a disappointment, but we are continuing to see improvement as we move forward."
 Prior to the charge required by the State and Federal agencies, the Company had reported a profit for 1993. Results announced in February indicated earnings of $1.3 million, or $.91 per share, for the year and $186,000, or $.10 per share, for the fourth quarter.
 This change in the reported earnings for the 1993 year and the 1993 fourth quarter was primarily the result of the disagreement between the Bank and its State and Federal bank supervisory agencies, with respect to the methods of assessing certain credit conditions and to the economic deterioration of certain loans which occurred during the first quarter of 1994. Management believes that the Bank's loan classifications were based on credible and comprehensive external and internal loan reviews, therefore, the Bank disagrees strongly with respect to a significant portion of the conclusions reached by its State and Federal bank supervisory agencies. However, the Bank has determined that an appeal of these adverse regulatory conclusions: (1) would be too costly; (2) could impact negatively on the Bank's relationship with these agencies; and (3) therefore, may not be in the best interest of the Company's shareholders, employees, customers, vendors and the communities in which the Bank conducts its business.
 The result of this charge was an approximate $1.1 million increase in the Bank's Allowance for Possible Loan Losses and a $626,000 increase in the Allowance for Possible Losses on other Real Estate Owned for the year ended December 31, 1993.
 The Bank continues to work diligently to resolve the issues which are in dispute with the State and Federal agencies.
 "Both the Company and the Bank remain in full compliance with regulatory capital requirements," Szemes added. The leverage capital ratio stands at 7.51 percent, compared to a required 6.5 percent. Total risk based capital is now 11.60 percent, compared to a required 8 percent. Before the adjustment, the Bank had reported ratios of 8.29 percent and 12.55 percent, respectively.
 The 42-year-old Bank and Trust Company of Old York Road has 13 branches in Bucks, Montgomery and Philadelphia counties. Total assets at the end of 1993 were $223.6 million, up from $222.7 million in 1992. The bid and asked prices for the Company's stock are quoted on the NASDAQ Small Cap market.
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 /CONTACT: Steve Szemes, president, 215-659-3400, ext. 116, or George Rapp, CFO, 215-659-3400, ext. 181, or Carol Chartrand, investor relations, 215-659-3400, ext. 141, all of Bank and Trust Company of Old York Road/

CO: Old York Road Bancorp, Inc. ST: Pennsylvania IN: FIN SU: ERN

CK -- NY127 -- 7622 04/14/94 17:40 EDT
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Publication:PR Newswire
Date:Apr 14, 1994

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