Printer Friendly

TOLLAND BANK REPORTS FIRST QUARTER RESULTS APRIL 13, 1993

 VERNON, Conn., April 13 /PRNewswire/ -- Tolland Bank (AMEX: TBK) reported net income of $381 thousand, or $.33 per share in the first quarter of 1993 versus a net loss of $122 thousand, or $.11 per share in the first quarter of 1992. Included in net income is $189 thousand, or $.16 per share, attributable to the recognition of the cumulative effect of a required change in accounting for income taxes.
 The improved results reflected a substantial reduction of $400 thousand in the provision for loan losses, to the lowest level in more than three years, combined with slightly higher net interest income and noninterest expense, slightly lower fee income and a favorable swing in other noninterest income due largely to trading account activity.
 The Bank had net loan charge-offs of $36 thousand, or .11 percent of average loans on an annualized basis, and, through the provision expense, replenished the allowance for loan losses to $2.1 million, a level equal to 1.68 percent of total loans and 176 percent of nonperforming loans. This favorable circumstance was possible because nonperforming loans (a subset of nonperforming assets) were $1.2 million at March 31, 1993, the lowest level since the second quarter of 1990 and a decrease of 43 percent from the level one year ago. Total nonperforming assets were $11.9 million, or 6.1 percent of total assets at the end of the first quarter of 1993, a 2 percent decrease from $12.1 million a year earlier. Two-thirds of the nonperforming assets are bank-owned at this time and are being actively marketed, whereas last year only 19 percent of nonperforming assets were bank-owned.
 Chairman, President and CEO Guy Cambria, Jr. said, "Although total nonperforming assets continue to be high, we have obtained title to a significant number of properties which allows us to proceed with their disposition. In addition, the continued decline in nonperforming loans since mid-1992 means that new problem situations are not developing. On the other hand, because the weakened economic situation in the state continues, some borrowers may still face financial difficulty."
 The Bank's net interest margin in the first quarter of 1993 was 4.21 percent versus 4.11 percent in the prior year. Although the earning asset yield continues to decline with the runoff of high-yielding consumer loans and the repricing of adjustable rate loans, the effect on earnings was more than offset by a decreasing cost of funds resulting from the rollover of higher-cost time deposits and aggressive liability management strategies.
 Total noninterest margin income was 58 percent higher in the first quarter of 1993 as compared to the first quarter of 1992. This improvement was attributable to trading account activity which produced a profit of $30 thousand this year versus a $92 thousand loss last year. Gains on sales of securities were minimal this quarter, whereas gains of $115 thousand were recorded last year as the result of portfolio restructuring. Losses on the disposition of assets were also minimal this quarter versus losses of $88 thousand realized a year ago. Fee income in the first quarter of 1993 was down by about 10 percent from the same quarter in 1992 due to lower activity levels which were likely impacted by adverse weather conditions.
 Total noninterest expense was virtually unchanged from a year ago. Staff expense increased 7 percent, more than half of which was attributable to a significant decline in the deferral of compensation expense related to loans originated for the Bank's portfolio. This continues a trend seen throughout 1992 as the result of curtailing the indirect installment loan program and originating residential mortgages for sale into the secondary market. Other basic operating expenses were lower than a year ago as the result of continued success in controlling discretionary spending and the renegotiation of the Bank's data processing contract. Problem asset-related expenses were about 5 percent higher than a year ago.
 During the first quarter of 1993, the Bank adopted Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes and upon adoption recorded a net deferred tax asset of $189 thousand which is equal to the tax carryback available from 1992 and the projected taxes payable for 1993. At March 31, 1993 the Bank has a net deferred tax asset of $682 thousand, before a valuation allowance of $411 thousand. To fully recognize the net deferred tax asset available to the Bank, sufficient additional income must be anticipated in future periods.
 The first quarter results increased the ratio of Tier 1 Capital (net worth minus intangible assets) to average assets to 7.1 percent on March 31, 1993 from 6.6 percent at March 31, 1992. The Risk-Based Capital ratio at quarter-end was 10.7 percent, as compared to 10.2 percent a year ago. Both measures continue to increase and remain in excess of regulatory requirements.
 Total assets were $196.2 million at March 31, 1993 which was unchanged from a year ago. Total loans were $124.7 million at March 31, a 7 percent decrease from the $134.8 million at the same time last year. Total deposits were $172.9 million at March 31, a 3 percent decrease from the $177.5 million at the same time in 1992.
 Tolland Bank (AMEX: TBK) is a Connecticut-chartered savings bank serving Tolland County and the surrounding communities.
 TOLLAND BANK
 Selected Financial Highlights
 (Unaudited)
 Three Months Ended March 31 1993 1992
 Operating Data ($000 omitted)
 Net interest income 1,804 1,792
 Provision for loan losses 36 435
 Total non-interest income 214 135
 Total non-interest expense 1,687 1,678
 Net income (loss) 381 (122)
 Net income (loss) per common
 and common equivalent share 0.33 (0.11)
 Common and common equivalent
 shares (period average) 1,156,163 1,152,531
 Key Ratios
 Net interest spread
 (fully taxable equivalent) 4.13 pct 4.01 pct
 Net interest margin
 (fully taxable equivalent) 4.21 pct 4.11 pct
 Return on assets 0.79 pct (0.25 pct)
 Return on equity 10.38 pct (3.42 pct)
 Equity pct assets - period end 7.57 pct 7.23 pct
 Book value per share - period end $ 12.82 $ 12.28
 TOLLAND BANK
 Statements of Income
 (Unaudited, In Thousands)
 Three Months Ended March 31, 1993 1992 Change
 Interest on loans 2,608 3,196 (588)
 Interest on investment securities 576 558 18
 Interest on other earning assets 53 90 (37)
 Total interest income 3,237 3,844 (607)
 Interest on deposits 1,347 2,015 (668)
 Interest on borrowings 86 37 49
 Total interest expense 1,433 2,052 (619)
 Net interest income 1,804 1,792 12
 Provision for loan losses 36 435 (399)
 Net interest income after provision
 for loan losses 1,768 1,357 411
 Service charges and fees 182 200 (18)
 Securities trading income/(loss) 30 (92) 122
 Gain/(loss) on investment securities 7 115 (108)
 Gain/(loss) on assets (5) (88) 83
 Total non-interest income 214 135 79
 Staff 758 712 46
 Occupancy 145 149 (4)
 Equipment 97 101 (4)
 Data processing services 133 172 (39)
 Other expense 554 544 10
 Total non-interest expense 1,687 1,678 9
 Income (loss) before income taxes 295 (186) 481
 Income tax expense (benefit) 103 (64) 167
 Income (loss) before cumulative effect
 of change in accounting principles 192 (122) 314
 Cumulative effect of change in
 accounting principles 189 0 189
 Net income (loss) 381 (122) 503
 TOLLAND BANK
 Statements of Financial Condition
 (Unaudited, In Thousands)
 Periods Ended 3/31/93 12/31/92 3/31/92
 Assets
 Cash and due from banks $4,501 $6,742 $5,418
 Overnight investments 4,401 5,176 7,780
 Total cash and cash equivalents 8,902 11,918 13,198
 Trading account securities 0 0 1,918
 U.S. government and agency
 securities 8,521 6,038 6,657
 Mortgage-backed securities 29,770 29,067 20,577
 Other debt securities 4,617 0 2,181
 Debt security mutual fund 1,978 2,465 0
 FHLBB stock 618 618 558
 Total investment securities 45,504 38,188 29,973
 Permanent residential mortgage
 loans 44,121 43,574 39,465
 Permanent commercial mortgage loans 34,661 34,914 37,154
 Consumer loans 27,225 29,663 36,913
 Other commercial loans 18,651 18,558 21,284
 Total loans 124,658 126,709 134,816
 Plus: Net deferred costs 669 759 1,170
 Less: Allowance for loan losses (2,100) (2,100) (2,375)
 Net loans 123,227 125,368 133,611
 Net property and equipment 5,120 5,203 5,381
 Foreclosed assets 10,679 10,805 9,344
 Other assets 2,766 2,595 2,777
 Total assets $196,198 $194,077 $196,202
 Liabilities and
 Shareholders' Equity
 Demand deposits $11,328 $13,028 $10,505
 Interest bearing transaction
 deposits 16,439 17,518 18,392
 Money market deposits 12,577 11,896 10,405
 Savings deposits 43,188 44,191 44,087
 Time deposits 89,342 82,472 94,062
 Total deposits 172,874 169,105 177,451
 Total borrowings 8,065 10,073 4,000
 Other liabilities 414 452 574
 Total liabilities 181,353 179,630 182,025
 Common stock (Par value $1.00) 1,150 1,150 1,150
 Paid-in capital 8,746 8,746 8,746
 Net unrealized loss on mutual funds (18) (35) 0
 Retained earnings 4,967 4,586 4,281
 Total shareholders' equity 14,845 14,447 14,177
 Total liabilities and
 shareholders' equity $196,198 $194,077 $196,202
 -0- 4/13/93
 /CONTACT: Joel E. Hyman, treasurer & CFO of Tolland Bank, 203-875-2500, or fax 203-875-3856/
 (TBK)


CO: Tolland Bank ST: Connecticut IN: FIN SU: ERN

LD-KW -- NY001 -- 5069 04/13/93 08:53 EDT
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:Apr 13, 1993
Words:1618
Previous Article:PARKER BROTHERS INTRODUCES TRIVIAL PURSUIT 1992 YEAR-IN-REVIEW EDITION; NEW VERSION OF CLASSIC BOARD GAME SETS PACE WITH NATIONAL TREND
Next Article:LOJACK CORP. REPORTS 51 PERCENT INCREASE IN REVENUES FOR FOURTH QUARTER; ANTICIPATES PROFIT DURING CURRENT FISCAL YEAR
Topics:


Related Articles
TOLLAND BANK REPORTS SECOND QUARTER EARNINGS
TOLLAND BANK REPORTS SECOND QUARTER RESULTS
TOLLAND BANK REPORTS THIRD QUARTER RESULTS
TOLLAND BANK REPORTS SECOND QUARTER RESULTS - 1994
TOLLAND BANK REPORTS FIRST QUARTER RESULTS - 1995
TOLLAND BANK ANNOUNCES SECOND QUARTER RESULTS - 1995
TOLLAND BANK ANNOUNCES THIRD QUARTER RESULTS - 1995
TOLLAND BANK ANNOUNCES FOURTH QUARTER RESULTS - 1995
TOLLAND BANK ANNOUNCES SECOND QUARTER RESULTS AND LIFTING OF MEMORANDUM OF UNDERSTANDING
Tolland Bank Reinstates Dividend with Third Quarter Results

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