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SEABOARD BANCORP, INC. ANNOUNCES THIRD QUARTER OPERATING RESULTS

 VIRGINIA BEACH, Va., Nov. 2 /PRNewswire/ -- Seaboard Bancorp, Inc. (NASDAQ: SEAB), the unitary holding company of Seaboard Savings Bank, F.S.B., announced today that it incurred net losses of $1.2 million or $.24 per share and $1.1 million or $.33 per share for the three and nine months ended Sept. 30, 1993, compared to net losses of $729,000 or $.82 per share and $589,000 or $.66 per share for the comparable periods in 1992. The per share amounts for 1992 do not reflect the results of Seaboard's rights offering consummated in 1993. The net losses during 1993 resulted from the bank's desire to bolster its allowance for loan losses in order to provide a cushion for future charges to income for any losses associated with current assets and to position the bank for consistent operating results on an ongoing basis.
 The decision to increase the bank's provision for loan losses by $717,000 to $2.5 million was made by the board of directors after a review of the bank's capital position and level of classified assets. This followed an additional $540,000 to the allowance for loan losses in connection with a regular examination of the bank by the Office of Thrift Supervision. In connection with its review of the bank's assets and liabilities and in light of the current interest rate environment, the board also approved the refinancing of two high rate Federal Home Loan Bank Board ("FHLB") advances. Assuming the stability of current interest rates, the refinancing of such advances is expected to occur during the fourth quarter and while prepayment penalties of approximately $330,000 would be recognized at such time, management believes that the lower interest rate payments would decrease interest expense by approximately $180,000, $165,000 and $100,000 for the years ended Dec. 31, 1994, 1995 and 1996 respectively.
 As of Sept. 30, 1993, non-performing assets, consisting of non-accrual loans and real estate owned, amounted to $4.4 million compared to $6.5 million at Sept. 30, 1992. At Sept. 30, 1993, general valuation allowances as a percentage of non-performing assets were 56.8 percent.
 At Sept. 30, 1993, the bank exceeded all of its regulatory capital requirements. The bank's tangible, core and risk-based capital amounted to $5.4 million, $5.4 million and $6.1 million, respectively, compared to required levels of $1.2 million, $2.5 million and $4.6 million, respectively.
 Chairman James L. Harrell, III stated that "management believes that Seaboard has successfully weathered a difficult time in its history and, accordingly, believes that Seaboard is favorably positioned for a return to profitability."
 Through its network of full-service branches in Virginia Beach, Portsmouth and Chesapeake, Va., the bank offers mortgage loans, consumer credit, and various deposit accounts. At Sept. 30, 1993, Seaboard Bancorp, Inc. had approximately 820 stockholders and 4,990,630 shares of common stock outstanding. Seaboard is listed on the NASDAQ exchange under the symbol "SEAB".
 SEABOARD BANCORP, INC.
 CONSOLIDATED STATEMENT OF CONDITION
 (Unaudited)
 Sept. 30, Dec. 31,
 ASSETS: 1993 1992
 Loans:
 Conventional first mortgage (net) $58,191,088 $61,050,496
 Construction (net) 2,155,037 3,209,907
 Consumer and installment (net) 3,273,250 3,986,361
 Commercial (net) 1,846,624 2,431,664
 Savings account loans 217,852 316,664
 Accrued interest on loans 487,036 767,843
 Loans receivable (net) 66,170,887 71,762,935
 Cash and other liquid investments 5,071,102 5,004,151
 Mortgage-backed securities 5,357,048 3,817,271
 Federal Home Loan Bank stock 760,800 728,600
 Property and equipment (net) 1,192,849 1,253,390
 Real estate acquired through
 foreclosure (net) 2,430,992 3,610,673
 Other assets 893,307 630,284
 Total assets $81,876,985 $86,807,304
 LIABILITIES:
 Deposits (demand and time) $69,310,153 $75,166,950
 Borrowed money 6,660,000 8,160,000
 Other liabilities 415,510 528,605
 Total liabilities 76,385,663 83,855,555
 STOCKHOLDERS' EQUITY:
 Capital stock 49,906 8,912
 Paid-in capital 10,622,652 6,946,646
 Retained earnings (5,181,236) (4,003,809)
 Total stockholders' equity 5,491,322 2,951,749
 Total liabilities and stockholders'
 equity $81,876,985 $86,807,304
 CONSOLIDATED STATEMENT OF EARNINGS
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Interest income $1,461,853 $1,733,672 $4,509,401 $5,692,622
 Interest expense 940,340 1,173,643 2,977,665 3,949,753
 Net interest income 521,513 560,029 1,531,736 1,742,869
 Provision for loan
 losses 1,263,771 619,462 1,217,884 628,766
 Other operating
 income 177,693 308,221 582,117 808,561
 Provision for losses on
 foreclosed real estate -- 325,800 423,612 449,580
 Operating expense 647,620 652,380 1,857,659 2,062,394
 Net loss before
 income taxes and
 cumulative effect
 of accounting
 change (1,212,185) (729,392) (1,385,302) (589,310)
 Provision for
 income taxes -- -- -- --
 Cumulative effect of
 a change in method
 of accounting for
 income tax purposes -- -- 275,686 --
 Net loss $(1,212,185) $(729,392) $(1,109,616) $(589,310)
 Net loss per share $(.24) $(.82) $(.33) $(.66)
 Average shares
 outstanding 4,990,630 891,184 3,338,839 891,184
 -0- 11/2/93
 /CONTACT: P. Douglas Richard of Seaboard Bancorp, 804-490-3181/
 (SEAB)


CO: Seaboard Bancorp, Inc. ST: Virginia IN: FIN SU: ERN

SB-MM -- CH011 -- 9846 11/02/93 17:27 EST
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Date:Nov 2, 1993
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