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THE BOSTON FIVE REPORTS SECOND QUARTER EARNINGS AND 23.2 PERCENT DROP IN NONPERFORMING ASSETS

 BOSTON, May 14 /PRNewswire/ -- The Boston Five Bancorp, Inc. (NASDAQ: BFCS) reported net income of $722,000, or 10 cents per share, for the quarter ended April 30, 1993. This compares with a net loss of $1.8 million, or 26 cents per share, in the second quarter of 1992. For the six months ended April 30, 1993, The Boston Five earned $1.2 million, or 17 cents per share, compared with a net loss of $4.1 million, or 58 cents, per share, for the six months ended April 30, 1992. In 1992, the results for the quarter and six months ended April 30 included extraordinary income of $4.4 million, or 62 cents per share, relating to the conversion of the Massachusetts Savings Bank Life Insurance company from a mutual to a stock form of ownership.
 On April 13, 1993, The Boston Five announced that it had entered into a definitive agreement to be acquired by Citizens Financial Group for $13.00 per share in an all-cash transaction. It is expected to be completed within six to nine months of the date of the announcement. The $13.00 per share purchase price is subject to upward adjustment if the transaction is not completed by Oct. 11, 1993. The acquisition is subject to stockholder and regulatory approvals and certain other conditions.
 The Boston Five's improved operating results primarily reflect reduced losses on real estate operations, lower provisions for losses on loans and increased net interest income.
 During the three months ending April 30, 1993, The Boston Five reduced total nonperforming assets (NPAs) 23.2 percent, from $83.9 million to $64.4 million. This was the eighth consecutive, and single largest, quarterly decline in NPAs. In the six months ending April 30, 1993, total NPAs declined 24.3 percent from $85.1 million. Of the $64.4 million in NPAs, $25.8 million or 40 percent are on 1 to 4 family residential properties.
 Loans on nonaccrual and restructured loans declined to $33.7 million at April 30, 1993, from $61.3 million at April 30, 1992, and $48.9 million at Oct. 31, 1992. Other real estate owned (OREO) declined to $30.7 million at April 30, 1993, from $46.8 million at April 30, 1992, and $36.2 million as of Oct. 31, 1992.
 The provisions for losses on loans was $1.6 million for the quarter, compared with $3.6 million for the corresponding quarter of 1992. For the six months ending April 30, 1993, the provision for losses on loans was $3.2 million, compared with $8.1 million in the first six months of 1993.
 Residential mortgage production totalled $224.8 million for the three months ending April 30, 1993, compared with $457.5 million for the second quarter of 1992. For six months, residential mortgage production totalled $563.8 million, compared with $799.0 million in 1992. The Boston Five currently services $3.7 billion in residential mortgages, of which more than $2.9 billion are serviced for investors.
 As of April 30, 1993, The Boston Five had a book value of $11.17 per share and exceeded all three Office of Thrift Supervision (OTS) regulatory capital requirements.
 The Boston Five Bancorp, Inc. is the holding company of The Boston Five Cents Savings Bank FSB. With total assets of almost $1.7 billion The Boston Five is one of the largest savings banks headquartered in Massachusetts. It operates 25 branch offices in eastern Massachusetts and 15 loan offices in five New Engl conducts correspondent lending operations in 12 Northeastern and Middle Atlantic states through its wholly-owned subsidiary, The Boston Five Mortgage Corporation. Deposits of The Boston Five are insured by the Bank Insurance Fund (BIF) of the Federal Deposit Insurance Corporation (FDIC).
 THE BOSTON FIVE BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 ($ in thousands, except per share amounts)
 Three Months Ended Six Months Ended
 April 30, April 30,
 1993 1992 1993 1992
 Interest income $28,378 $35,279 $58,557 $72,163
 Interest expense 13,660 21,442 28,514 46,105
 Net interest income 14,718 13,837 30,043 26,058
 Provision for losses
 on loans 1,554 3,556 3,233 8,057
 Net interest income
 after provision for
 losses on loans 13,164 10,281 26,810 18,001
 Non-interest income:
 Loan and other
 related fees 320 429 801 855
 Mortgage service fees 1,143 1,420 2,145 3,232
 Customer service fees 790 842 1,570 1,558
 Real estate oper., net (4,141) (6,913) (5,626) (10,642)
 Gain (loss) on
 securities, net --- (109) (7) 636
 Gain on sale of loans
 and servicing, net 1,936 1,257 2,021 3,785
 Other income 1,733 114 1,959 1,269
 Total non-int. income 1,781 (2,960) 2,863 693
 Non-interest expenses:
 Salaries and fringe
 benefits 6,230 6,048 12,950 12,448
 Occupancy 1,352 1,238 2,488 2,491
 Data processing 1,014 1,080 2,014 2,087
 Regulatory assessments 1,248 1,078 2,334 2,203
 Legal and problem loan
 expenses 958 933 2,070 1,910
 Other 3,422 3,116 6,589 5,956
 Total non-interest
 expenses 14,224 13,493 28,445 27,095
 Income (loss) before
 income taxes 721 (6,172) 1,228 (8,401)
 Provision for (benefit
 from) income taxes (1) 1 5 6
 Income (loss) before
 extraordinary item 722 (6,173) 1,223 (8,407)
 Extraordinary item --- 4,354 --- 4,354
 Net income (loss) $722 $(1,819) $1,223 ($4,053)
 Earnings (loss) per
 common share:
 Earnings (loss) per
 share before
 extraordinary item 10 cents (88 cents) 17 cents ($1.20)
 Extraordinary item --- 62 cents --- 62 cents
 Total earnings (loss)
 per share 10 cents (26 cents) 17 cents (58 cents)
 Earnings (loss) per share were calculated
 using the following number of common shares
 Three Months Ended Six Months Ended
 April 30, April 30,
 1993 1992 1993 1992
 7,362,236 7,051,214 7,355,223 7,047,067
 Consolidated Statements of Financial Condition
 ($ in thousands)
 April 30, 1993 Oct. 31, 1992
 Assets:
 Cash and due from banks $47,256 $44,619
 Federal funds sold 77,600 39,600
 Investment securities at
 cost(market value $135,231
 and $129,669) 132,645 127,856
 Securities held for sale,
 at lower of cost or market 17 24
 Mortgage-backed securities,
 at cost (market value
 $1,782 and $1,937) 1,681 1,870
 Federal Home Loan Bank
 and SBLI stock, at cost 16,380 16,380
 Loans 1,114,961 1,154,907
 Loans held for sale 149,528 203,206
 Loans to joint ventures 1,236 8,235
 Allowance for loan losses (15,820) (19,754)
 Real estate acquired by
 foreclosure or substantively
 repossessed, net 30,702 36,188
 Investments in joint
 ventures, net 15,432 16,366
 Bank premises, furniture
 and equipment, net 54,340 55,456
 Accrued income receivable 10,698 12,080
 Goodwill, net 5,367 5,845
 Purchased and excess
 mortgage servicing rights 38,541 40,741
 Refundable federal and
 state income taxes 23 23
 Other assets 18,187 14,115
 Total assets $1,698,774 $1,757,757
 Liabilities and
 Stockholders' Equity
 Liabilities:
 Deposits $1,559,735 $1,617,065
 Borrowed funds 32,339 32,360
 ESOP debt 5,400 5,921
 Advance payments from
 mortgagors 12,382 14,524
 Accrued interest payable 2,990 3,439
 Accrued and deferred
 income taxes 1,489 1,489
 Accrued expenses and
 other liabilities 5,036 5,475
 Total liabilities 1,619,371 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 7,211,834 and
 7,154,822 shares 72 72
 Paid-in capital 41,870 41,550
 Retained earnings 44,371 43,148
 Treasury stock, 102,800
 shares, at cost (1,365) (1,365)
 ESOP debt (5,400) (5,921)
 Unearned compensation (145) ---
 Total stockholders' equity 79,403 77,484
 Total liabilities and
 stockholders' equity $1,698,774 $1,757,757
 NET INTEREST MARGIN, RATIOS, AND AVERAGE BALANCES (a):
 (Dollars in Thousands)
 Three Months Ended Six Months Ended
 4/30/93 4/30/92 4/30/93 4/30/92
 Net interest margin 3.90pct 3.22pct 3.99pct 3.04pct
 Interest rate spread
 for the period 4.12pct 3.47pct 4.19pct 3.28pct
 Net income (loss) as a
 percentage of:
 Average assets 0.17 pct (0.39)pct 0.14pct (0.43)pct
 Average equity 3.66 pct (8.26)pct 3.12pct (9.08)pct
 Average equity to
 average assets 4.74pct 4.68pct 4.63pct 4.71pct
 Average assets $1,664,810 $1,882,402 $1,693,137 $1,896,369
 Average earning
 assets 1,474,619 1,678,011 1,500,784 1,700,785
 Average loans 1,264,729 1,501,443 1,309,609 1,510,678
 Average deposits 1,530,595 1,700,346 1,558,022 1,713,319
 Average equity 78,869 88,128 78,444 89,298
 (a) annualized where appropriate
 LOAN PRODUCTION
 Residential Mortgages:
 Fixed rate 202,712 402,303 485,561 708,651
 Adjustable rate (ARM) 22,135 55,211 78,248 90,336
 Total residential
 mortgages 224,847 457,514 563,809 798,987
 Commercial real estate 163 354 290 594
 Construction 2,132 --- 4,815 4,119,527
 Other consumer 3,478 6,222 8,157 12,152
 Total loan production $233,268 $467,708 $585,022 $825,773
 4/30/93 10/31/92
 SELECTED DATA
 (dollars in thousands, except per share data)
 Number of:
 Retail banking offices 25 25
 Loan centers 15 15
 Full-time employees 724 727
 Part-time employees 112 117
 Dollar volume of
 residential mortgages
 serviced for others $2,944,186 $2,930,893
 Loans on nonaccrual 29,288 41,449
 Nonaccrual loans as a
 percentage of total
 assets 1.7pct 2.4pct
 Restructured loans 4,444 7,500
 Loan loss reserve as a
 percentage of total loans 1.2pct 1.4pct
 Loan loss reserve as a percentage
 of nonaccrual loans 54.0pct 47.7pct
 Book value per
 common share 11.17 10.99
 Regulatory capital ratios:
 Tangible (1.5pct required) 4.2pct 4.0pct
 Leverage (3.0pct required) 4.4pct 4.2pct
 Risk-weighted (required level
 increased to 8.0 pct from
 7.2 pct., effective 12/31/92) 9.1pct 8.3pct
 -0- 5/14/93
 /CONTACT: Vernon L. Blodgett, Jr., senior vice president of Boston Five Bancorp, 617-742-6000, ext. 2109/
 (BFCS)


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

SJ -- NE015 -- 8764 05/14/93 16:08 EDT
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Date:May 14, 1993
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