Printer Friendly

THE BOSTON FIVE REPORTS FIRST QUARTER EARNINGS

 BOSTON, Feb. 16 /PRNewswire/ -- The Boston Five Bancorp, Inc. (NASDAQ: BFCS), holding company for The Boston Five Cents Savings Bank FSB reported net income of $501,000, or seven cents per share, for the quarter ended Jan. 31, 1993. This compares with a net loss of $2.2 million, or 32 cents per share, in the quarter ended Jan. 31, 1992. As of Jan. 31, 1993, The Boston Five had a book value of $11.03 per share and exceeded all three current regulatory capital requirements.
 For the quarter ended Jan. 31, 1993, the bank recorded its seventh consecutive quarterly decrease in nonperforming assets (NPAs). NPAs decreased $1.2 million in the quarter to a level of $83.9 million on Jan. 31, 1993, compared with $120.8 million on Jan. 31, 1992, and $85.1 million on Oct. 31, 1992.
 Residential mortgage production totalled $339 million for the quarter ended Jan. 31, 1993, compared with $341.5 million in the first quarter of 1992. Total loan production for the quarter was $351.8 million, compared with $358.1 million a year earlier. The Boston Five currently services $3.9 billion in residential mortgages, of which almost $3 billion are serviced for investors.
 The core earnings of The Boston Five were $3.7 million for the quarter, compared with $4.3 million in the first quarter of 1992. Core earnings reflect primarily the bank's net interest income, components of noninterest income and noninterest expenses. They exclude the provision for loan losses, net results of real estate operations and securities gains and losses.
 The results of the bank's mortgage banking operations are part of core earnings. This includes gains on sales of mortgages and mortgage servicing rights, servicing fees and loan fees, as well as a provision for prepayments of mortgages serviced for investors. This provision reflects an interest rate-related increase in prepayments of loans serviced for others and was $1.9 million for the first quarter. No such provision was required in the first quarter of 1992. Mortgage service fees totaled $1 million for the quarter after being reduced $787,000 due to interest payments to investors on loans that prepaid during the month prior to the date of the interest payment. In the first quarter of 1992, mortgage service fees totaled $1.8 million after being reduced $214,000 in interest payments on loans that prepaid.
 The current OREO balance is $32.9 million, compared with $53.8 million as of Jan. 31, 1992 and $36.2 million as of Oct. 31, 1992. The $32.9 million in OREO is net of writedowns and other reductions of $60.7 million, or 49.1 percent, from a starting balance of $123.5 million, and net of $30 million in sales of OREO units that were part of construction loans.
 Nonaccrual and restructured loans declined to $51 million at Jan. 31, 1993, from $66.9 million at Jan. 31, 1992 and $48.9 million at Oct. 31, 1992. At Jan. 31, 1993, 40 percent of the nonaccrual and restructured loans were on one to four family residential properties. The provision for losses on loans was $1.7 million for the quarter, compared with $4.5 million for the first quarter of 1992. Net chargeoffs during the first quarter of 1993 were $1.2 million and loan loss reserves as of Jan. 31, 1993, were $20.2 million. The corresponding amounts for the first quarter of 1992 were $11.3 million and $17.6 million, respectively.
 The Boston Five Cents Savings Bank FSB has total assets of over $1.6 billion. It operates 25 branch offices in eastern Massachusetts and 15 loan offices in five New England states. The Boston Five conducts correspondent lending operations in 12 northeastern states through its wholly-owned subsidiary, The Boston Five Mortgage Corporation. Deposits of The Boston Five are insured by the Bank Insurance Fund (BIF) of the Federal Deposit Insurance Corporation (FDIC).
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 Three Months Ended
 Jan. 31,
 1993 1992
 Interest income $30,179 $36,884
 Interest expense 14,854 24,663
 Net interest income 15,325 12,221
 Provision for losses
 on loans 1,679 4,501
 Net interest income
 after provision for
 losses on loans 13,646 7,720
 Non-interest income:
 Loan and other
 related fees 481 426
 Mortgage service fees 1,002 1,812
 Customer service fees 780 716
 Real estate oper., net (1,485) (3,729)
 Gain (loss) on
 securities, net (7) 745
 Gain (loss) on sale of loans
 and servicing, net 85 2,528
 Other income 226 1,155
 Total non-int. income 1,082 3,653
 Non-interest expenses:
 Salaries and fringe
 benefits 6,720 6,400
 Occupancy 1,136 1,253
 Data processing 1,000 1,007
 Regulatory assessments 1,086 1,125
 Legal and problem loan
 expense 1,112 977
 Other 3,167 2,840
 Total non-interest
 expenses 14,221 13,602
 Income (loss) before
 income taxes 507 (2,229)
 Provision for (benefit
 from) income taxes 6 5
 Net income (loss) $501 $(2,234)
 Earnings (loss) per
 common share: 7 cents (32 cents)
 Earnings (loss) per share were calculated
 using the following number of common shares
 Three Months Ended
 1993 Jan. 31,
 1992
 7,277,333 7,043,010
 Consolidated Statements of Financial Condition
 ($ in thousands, except per data share)
 (NASDAQ: BFCS)
 Jan. 31, 1993 Oct. 31, 1992
 Assets:
 Cash and due from banks $43,509 $44,619
 Federal funds sold 17,000 39,600
 Investment securities at
 cost(market value $114,614
 and $129,669) 112,701 127,856
 Securities held for sale,
 at lower of cost or market 17 24
 Mortgage-backed securities,
 at cost (market value
 $1,942 and $1,937) 1,845 1,870
 Federal Home Loan Bank
 and SBLI stock, at cost 16,380 16,380
 Loans 1,153,812 1,154,907
 Loans held for sale 149,751 203,206
 Loans to joint ventures 8,235 8,235
 Allowance for loan losses (20,214) (19,754)
 Real estate acquired by
 foreclosure or substantively
 repossessed, net 32,897 36,188
 Investments in joint
 ventures, net 15,803 16,366
 Bank premises, furniture
 and equipment, net 54,893 55,456
 Accrued income receivable 10,768 12,080
 Goodwill, net 5,606 5,845
 Purchased and excess
 mortgage servicing rights 39,527 40,741
 Refundable federal and
 state income taxes 23 23
 Other assets 20,360 14,115
 Total assets $1,662,913 $1,757,757
 Liabilities and
 Stockholders' Equity
 Liabilities:
 Deposits $1,529,526 $1,617,065
 Borrowed funds 32,344 32,360
 ESOP debt 5,661 5,921
 Advance payments from
 mortgagors 7,461 14,524
 Accrued interest payable 3,196 3,439
 Accrued and deferred
 income taxes 1,489 1,489
 Accrued expenses and
 other liabilities 4,901 5,475
 Total liabilities 1,584,578 1,680,273
 Stockholders' equity
 Serial preferred stock,
 authorized 5 million
 shares, series authorized:
 series A preferred stock,
 200,000 shares, none
 issued and outstanding --- ---
 Common stock, 1 cent par
 value, authorized
 20 million shares;
 issued 7,206,022 and
 7,154,822 shares 72 72
 Paid-in capital 41,841 41,550
 Retained earnings 43,649 43,148
 Treasury stock, 102,800
 shares, at cost (1,365) (1,365)
 ESOP debt (5,661) (5,921)
 Unearned compensation (201) --
 Total stockholders' equity 78,335 77,484
 Total liabilities and
 stockholders' equity $1,662,913 $1,757,757
 NET INTEREST MARGIN, RATIOS, AND AVERAGE BALANCES(a):
 (Dollars in Thousands)
 Three Months Ended
 January 31,
 1993 1992
 Net interest margin 4.05pct 2.87pct
 Interest rate spread:
 For the period 4.26pct 3.09pct
 Net income(loss) as a
 percentage of:
 Average assets 0.12 pct (0.47)pct
 Average equity 2.53 pct (9.92)pct
 Average equity to
 average assets 4.53pct 4.72pct
 Average assets $1,720,110 $1,909,507
 Average earning
 assets 1,526,042 1,721,548
 Average loans 1,352,973 1,520,097
 Average deposits 1,584,555 1,723,980
 Average equity 77,910 90,051
 (a) Annualized where appropriate
 LOAN PRODUCTION
 Residential Mortgages:
 Fixed rate 188,229 306,348
 Adjustable rate (ARM) 150,733 35,125
 Total residential
 mortgages 338,962 341,473
 Commercial real estate 127 240
 Construction 2,683 4,113
 Commercial --- ---
 Education 5,303 6,309
 Other consumer 4,679 5,930
 Total loan production $351,754 $358,065
 1/31/93 10/31/92
 SELECTED DATA
 Number of:
 Retail banking offices 25 25
 Loan centers 15 15
 Full-time employees 714 727
 Part-time employees 121 117
 Dollar volume of
 residential mortgages
 serviced for others $2,971,633 $2,930,893
 Loans on nonaccrual 45,522 41,449
 Nonaccrual loans as a
 percentage of total
 assets 2.7pct 2.4pct
 Restructured loans 5,500 7,500
 Loan loss reserve as a
 percentage of total loans 1.5pct 1.4pct
 Loan loss reserve as a
 percentage of nonaccrual loans 44.4pct 47.4pct
 Book value per
 common share 11.03 10.99
 Regulatory capital ratios:
 Tangible (1.5pct required) 4.3pct 4.0pct
 Leverage (3.0pct required) 4.5pct 4.2pct
 Risk-weighted (required level
 increased to 8.0pct from 7.2
 pct., effective 12/31/92) 9.0pct 8.3pct
 -0- 2/16/93
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of Boston Five Bancorp, 617-742-6000, ext. 2106/
 (BFCS)


CO: Boston Five Bancorp, Inc. ST: Massachusetts IN: FIN SU: ERN

TM -- NE013 -- 7021 02/16/93 18:08 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 16, 1993
Words:1584
Previous Article:ARCO INTRODUCES MID-GRADE GASOLINE IN NORTHERN CALIFORNIA AND RENO, NEV.
Next Article:ICM PROPERTY INVESTORS INCORPORATED ANNOUNCES RESULTS FOR 1992 AND OTHER DEVELOPMENTS
Topics:


Related Articles
BOSTON BANCORP REPORTS NET INCOME OF $15.5 MILLION FOR FIRST HALF OF FISCAL 1992
BOSTON FIVE REPORTS SECOND QUARTER RESULTS
BOSTON SCIENTIFIC CORPORATION REPORTS INCREASED SALES AND EARNINGS FOR SECOND QUARTER
BOSTON FIVE REPORTS THIRD QUARTER RESULTS: REDUCES NONPERFORMING ASSETS; INCREASES RESERVES
BOSTON FIVE REPORTS IMPROVED ASSET QUALITY, HIGHER CORE EARNINGS AND RECORD MORTGAGE PRODUCTION FOR 1992
AMERICAN MEDICAL RESPONSE REPORTS FIRST QUARTER EARNINGS
THE BOSTON FIVE REPORTS SECOND QUARTER EARNINGS AND 23.2 PERCENT DROP IN NONPERFORMING ASSETS
SHAWMUT NATIONAL CORPORATION REPORTS SECOND QUARTER NET INCOME OF $56.3 MILLION, OR $.56 PER COMMON SHARE
BOSTON FIVE REPORTS THIRD QUARTER RESULTS
Boston Private Bancorp, Inc. Announces Strong Earnings Increase

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters