Printer Friendly

TOLLAND BANK REPORTS FOURTH QUARTER RESULTS

 TOLLAND BANK REPORTS FOURTH QUARTER RESULTS
 VERNON, Conn., Jan. 29 /PRNewswire/ -- Tolland Bank (AMEX: TBK)


reported a net loss for the fourth quarter of 1991, of $263 thousand, or $.23 per share, versus a net loss of $1.034 million, or $.90 per share, for the comparable quarter in 1990. For 1991, the net loss was $1.07 million, or $.93 per share versus $677 thousand, or $.59 per share for 1990.
 Quarterly net interest income, noninterest income and noninterest expense were all improved from a year ago while the provision for loan loss expense was virtually unchanged. The quarterly loss was a result of a $672,000 provision for loan loss expense, of which $422,000 replenished the allowance for loan losses for net charge-offs incurred and $250,000 increased the allowance to a more conservative level. In general, the provision expense resulted from additional writedowns or reserves on existing problem assets due to lower real estate market values.
 Several positive developments occurred in the fourth quarter with respect to problem assets. Total nonperforming assets declined to $11.4 million, or 5.8 percent of total assets, at Dec. 31, down from $12.0 million, or 6.1 percent of total assets, at Sept. 30. Nonperforming loans (a subset of nonperforming assets) decreased 46 percent to $1.8 million at Dec. 31, from $3.4 million at Sept. 30. The year end level is the lowest in six quarters. In addition, total loans delinquent 30- 89 days declined to $2.2 million, or 1.6 percent of total loans, which is the lowest level in five quarters. Foreclosed assets increased to $9.5 million at year end from $8.7 million at Sept. 30, but the bank continues to actively market and sell those properties. During the quarter, $.5 million of foreclosed assets were liquidated.
 At Dec. 31, 1991, the allowance for loan losses was $2.2 million, a level equal to 1.6 percent of total loans, 122 percent of nonperforming loans and 204 percent of 1991 net charge-offs. Despite the net loss for the quarter, the ratio of Tier 1 capital (net worth minus intangible assets) to average total assets was 6.7 percent, a level in excess of regulatory requirements.
 Other significant developments in the fourth quarter were:
 -- The bank earned $1.766 million in net interest income, a level which equates to a net interest margin of 4.04 percent. While slightly lower than the third quarter results, the bank has essentially absorbed the decrease in interest income, due to the effect of sharply lower lending rates, with a declining cost of funds due to market conditions and the bank's current liability-sensitive, balance sheet posture.
 -- Total noninterest expense was consistent with the average for prior quarters of 1991 and continues to be unfavorably impacted by problem-asset related expenses. The basic cost of running operations, which is in excess of 85 percent of total expenses, was 4 percent lower than a year ago. A reduction in problem-asset situations and continued vigilance over basic expenses will directly result in lower total expenses.
 -- Noninterest income results were positive. Service charges and fees were at record high quarterly levels due to increased consumer and business activity. Favorable market conditions led to $78,000 of securities trading profits and gains of $143,000 on the sale of investment securities more than offset the $105,000 loss on assets resulting from sales and writedowns on foreclosed properties.
 Chairman and chief executive officer Guy Cambria, Jr., commented that, "While we continue to be concerned about the economic conditions in our market area, our strong core earnings, $14.3 million in equity and $2.2 million in loan loss reserves provide a solid basis for confidence about the future. Our management team continues to be focused on dealing with the problem-asset situations and is dedicated to improving the overall performance of the bank in 1992."
 We are also very pleased that Patrick Logiudice has joined the bank as senior vice president and chief lending officer. He brings over 20 years experience to the bank, and has a wealth of expertise in lending to the residents and business community of Tolland County.
 Tolland Bank is a Connecticut-chartered savings bank located in Tolland, Conn., with executive offices in Vernon, Conn. Total assets at Dec. 31, 1991 were $197.4 million, a 6 percent increase from last year and total deposits were $178.7 million, an 11 percent increase from a year ago.
 TOLLAND BANK
 Selected Financial Highlights
 (Unaudited)
 Periods ended Three Months 12 Months
 Dec. 31 1991 1990 1991 1990
 Operating data ($000 omitted):
 Net interest income $1,766 $1,488 $6,759 $6,170
 Provision for loan losses 672 664 1,974 857
 Total non-interest income 318 (487) 806 (26)
 Total non-interest expense 1,698 1,775 6,732 6,286
 Net income (loss) (263) (1,034) (1,068) (677)
 Net income per common and
 common equivalent shares $(0.23) $(0.90) $(0.93) $(0.59)
 Wtd. avg. shrs. outstdg. (000) 1,150 1,150 1,150 1,150
 Key ratios:
 Net interest spread
 (fully taxable equivalent) (pct.) 3.86 2.89 3.69 3.17
 Net interest margin
 (fully taxable equivalent) (pct.) 4.04 3.38 3.90 3.73
 Return on assets (pct.) (0.54) (2.17) (0.55) (0.36)
 Return on equity (pct.) (7.26) (26.19) (7.17) (4.15)
 Equity percent assets - period end 7.24 8.17 7.24 8.17
 Book value per share 12.43 13.21 12.43 13.21
 TOLLAND BANK
 Statements of Income
 (Unaudited - In thousands)
 Periods ended Three Months 12 Months
 Dec. 31 1991 1990 Change 1991 1990 Change
 Interest on loans $3,476 $4,069 $(593) $14,607 $16,646 $(2,039)
 Interest on investment
 securities 545 378 167 2,092 1,277 815
 Interest on other
 investments 89 149 (60) 338 507 (169)
 Total interest income 4,110 4,596 (486) 17,037 18,430 (1,393)
 Interest on deposits 2,338 2,846 (508) 10,043 10,724 (681)
 Interest on borrowings 6 262 (256) 235 1,536 (1,301)
 Total interest expense 2,344 3,108 (764) 10,278 12,260 (1,982)
 Net interest income 1,766 1,488 278 6,759 6,170 589
 Prov. for loan losses 672 664 8 1,974 857 1,117
 Net interest inc. after
 prov. for loan losses 1,094 824 270 4,785 5,313 (528)
 Service charges & fees 202 156 46 763 613 150
 Securities trading inc. 78 -- 78 103 -- 103
 Gain/(loss) on investment
 securities 143 (313) 456 269 (346) 615
 Gain/(loss) on assets (105) (330) 225 (329) (293) (36)
 Total non-interest inc. 318 (487) 805 806 (26) 832
 Total income 1,412 337 1,075 5,591 5,287 304
 Salaries and benefits 687 641 46 2,674 2,728 (54)
 Occupancy 145 149 (4) 556 576 (20)
 Equipment 81 119 (38) 442 385 57
 Data processing services 180 154 26 664 590 74
 Other expenses 605 712 (107) 2,396 2,007 389
 Total non-interest
 expense 1,698 1,775 (77) 6,732 6,286 446
 Income (loss) before
 income taxes (286)(1,438) 1,152 (1,141) (999) (142)
 Income tax expense
 (benefit) (23) (404) 381 (73) (322) 249
 Net income (loss) (263)(1,034) 771 (1,068) (677) (391)
 TOLLAND BANK
 Statements of Financial Condition
 (In thousands - Unaudited)
 Assets 12/31/91 12/31/90
 Cash and due from banks $4,912 $3,895
 Overnight investments 6,868 5,282
 Total cash and cash equivalents 11,780 9,177
 Time deposits in banks 26 548
 Trading account securities 4,071 0
 U.S. government and agency securities 5,130 2,005
 Other debt securities 22,293 12,382
 Marketable equity securities 0 1,378
 FHLBB stock 558 950
 Total investment securities 27,981 16,715
 Total loans 136,764 143,701
 Plus: Net deferred costs 1,251 1,108
 Less: Allowance for loan losses (2,215) (1,326)
 Net loans 135,800 143,483
 Net property and equipment 5,492 5,943
 Foreclosed assets 9,479 7,531
 Other assets 2,807 2,561
 Total assets 197,436 185,958
 Liabilities and Stockholders' Equity
 Demand deposits 10,855 10,651
 Interest bearing transaction deposits 16,894 12,824
 Savings and money market deposits 48,774 37,858
 Time deposits 102,216 99,056
 Total deposits 178,739 160,389
 FHLBB borrowings 4,000 10,000
 Other liabilities 398 372
 Total liabilities 183,137 170,761
 Common stock (par value $1.00) 1,150 1,150
 Paid-in capital 8,746 8,746
 Retained earnings 4,403 5,471
 Net unrealized loss on equity
 securities 0 (170)
 Total stockholders' equity 14,299 15,197
 Total liabilities and stockholders'
 equity 197,436 185,958
 -0- 1/29/92
 /CONTACT: Joel E. Hyman treasurer and CEO of Tolland Bank, 203-875-2500/
 (TBK) CO: Tolland Bank ST: Connecticut IN: FIN SU: ERN


SM-KK -- NY061 -- 4837 01/29/92 15:13 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1992
Words:1504
Previous Article:NORWEST ECONOMIST TO SPEAK AT NEWS CONFERENCE
Next Article:POUGHKEEPSIE SAVINGS BANK REPORTS 1991 RESULTS; FILES CAPITAL PLAN WITH REGULATORS
Topics:


Related Articles
TOLLAND BANK REPORTS SECOND QUARTER EARNINGS
TOLLAND BANK REPORTS FOURTH QUARTER AND YEAR EARNINGS
TOLLAND BANK REPORTS SECOND 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 Reinstates Dividend with Third Quarter Results
Tolland Bank Announces Record Earnings, Increases Dividend, and Initiates Holding Company Formation

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters