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SEABOARD BANCORP, INC. ANNOUNCES RESULTS OF OPERATIONS FOR THIRD QUARTER

SEABOARD BANCORP, INC. ANNOUNCES RESULTS OF OPERATIONS FOR THIRD QUARTER
 VIRGINIA BEACH, Va., Oct. 23 /PRNewswire/ -- Seaboard Bancorp, Inc. (NASDAQ: SEAB) the holding company for Seaboard Savings Bank, F.S.B., Virginia Beach, Va. announced today a consolidated net loss of $729,000 or $.82 per share for the three months ended Sept. 30, 1992 and a consolidated net loss of $589,000 or $.66 per share for the nine months then ended. This compares to a net loss of $1.46 million or $1.64 per share for the three months, and a net loss of $2.9 million or $3.23 per share for the nine months ended Sept. 30, 1991. The net loss for the three month period ended Sept. 30, 1992 was due to a provision to the general valuation allowance for potential loan losses of $513,000 and a provision for potential losses on real estate owned of $326,000. These provisions were taken following an examination of the Savings Bank by the Office of Thrift Supervision. At Sept. 30, 1992, the Savings Bank had general loan loss provisions of $1.4 million, an increase of $660,000 during the nine months ended Sept. 30, 1992.
 Consolidated earnings from continuing operations before provisions for potential losses were $110,000 and $250,000, respectively for the three and nine months ended Sept. 30, 1992.
 Non-accrual, past-due and restructured loans and real estate owned decreased by $2.5 million or 14.5 percent from 17.2 million at Dec. 31, 1991 to $14.7 million at Sept. 30, 1992. Of the $14.7 million only $1.9 million were non-earning assets down from $3.6 million at Dec. 31, 1991.
 In accordance with the Bank's Business Plan to "down-size" its asset base, total assets declined $11.4 million or 11.2 percent from $101.5 million at Dec. 31, 1991 to $90.1 million at Sept. 30, 1992 and by $4.0 million or 4.3 percent from $94.1 million at June 30, 1992. This decrease in assets was due primarily to a reduction in deposits funded by reducing cash and interest-bearing deposits and net loans receivable. Total deposits decreased from $90.7 million to $78.4 million during the nine month period. Loans receivable, net decreased from $79.4 million to $72.5 million. Stockholders' equity decreased by $589,000 or 16.8 percent from $3.5 million at Dec. 31, 1991 to $2.9 million at Sept. 30, 1992.
 At Sept. 30, 1992, the required levels of tangible, core, and risk- based capital for the Savings Bank were $1.4 million, $2.7 million and $5.2 million, respectively, while the actual levels were $2.8 million, $2.8 million and $3.9 million, respectively. Therefore, at Sept. 30, 1992, the Savings Bank failed to meet its risk-based capital requirement by $1.3 million. As a consequence of failing the risk-based capital requirement at Sept. 30, 1991, the Savings Bank filed a capital plan with the OTS. On March 9, 1992, the Savings Bank was notified by the OTS that the capital plan was denied. Management subsequently filed a modified plan as directed and, as yet, has not received a response from the OTS. Seaboard is currently operating under an agreement with the OTS which prohibits additional asset growth of the Savings Bank and contains certain other operating restrictions or sanctions.
 Management intends to resubmit a capital plan with the OTS which will delineate plans to raise additional capital through a rights offering to existing stockholders to be held concurrent with a limited public offering. The exact details of the stock offering have not been finalized, but management anticipates the offering will take place in early 1993.
 Seaboard Bancorp, Inc. is a thrift holding company based in Virginia Beach which owns Seaboard Savings Bank, F.S.B. Through its network of full-service branches in Chesapeake, Portsmouth, and Virginia Beach, Va., Seaboard offers mortgage loans, consumer credit, and various deposit accounts. The thrift holding company has approximately 755 stockholders and 891,184 shares of stock outstanding.
 CONSOLIDATED STATEMENT OF CONDITION
 (Unaudited)
 September 30, 1992 and 1991
 ASSETS: 1992 1991
 Loans:
 Conventional first mortgage (net) $62,115,683 $68,895,234
 Construction (net) 3,597,726 4,679,780
 Consumer and installment (net) 4,238,230 4,719,061
 Commercial (net) 2,177,165 2,622,813
 Savings account loans 366,666 514,655
 Accrued interest on loans 704,255 796,778
 73,199,725 82,228,321
 Cash and other liquid investments 5,708,678 9,922,959
 Mortgage-backed securities 3,842,451 5,063,658
 Federal Home Loan Bank stock 717,800 671,300
 Property and equipment (net) 1,282,806 1,385,254
 Real estate acquired through
 foreclosure (net) 4,391,267 6,044,236
 Other assets 923,261 1,058,768
 Total assets $90,065,988 $106,374,496
 LIABILITIES:
 Deposits (demand and time) $ 78,435,930 $94,361,007
 Borrowed money 8,160,000 8,160,000
 Other liabilities 599,481 364,602
 Total liabilities 87,195,411 102,885,609
 STOCKHOLDERS' EQUITY:
 Capital stock 8,912 8,912
 Paid-in capital 6,946,646 6,946,646
 Retained earnings (4,084,981) (3,466,671)
 Total stockholders' equity 2,870,577 3,488,887
 Total liabilities and
 stockholders' equity $90,065,988 $106,374,496
 CONSOLIDATED STATEMENT OF EARNINGS
 (Unaudited)
 9 Months Ended September 30, 1992 and 1991
 Interest income $ 5,692,622 $ 7,014,798
 Interest expense 3,949,753 5,666,571
 Interest margin 1,742,869 1,348,227
 Provision for loan losses 628,766 1,920,789
 Other operating income 808,561 504,072
 Provision for losses on foreclosed
 real estate 449,580 811,608
 Operating expense 2,062,394 2,041,934
 Net loss before income taxes (589,310) (2,922,032)
 Income tax benefit -- (42,000)
 Net loss $ (589,310) $ (2,880,032)
 Earnings per share
 (1992 & 1991 based upon 891,184) $ (.66) $ (3.23)
 -0- 10/23/92
 /CONTACT: Clarence W. Keel, Seaboard Bancorp, Inc., 804-490-3181/
 (SEAB) CO: Seaboard Bancorp, Inc. ST: Virginia IN: FIN SU: ERN


MM-CM -- CH008 -- 4292 10/23/92 15:44 EDT
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Date:Oct 23, 1992
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