Reuters News
USABancShares.com, Inc. Announces First Quarter Results with Loss
<USAB.O>
USABancShares.com, Inc. Announces First Quarter Results with Loss Reduced by 70% from Prior Year Quarter PHILADELPHIA--(BUSINESS WIRE)--May 15, 2001--USABancShares.com, Inc. (NASDAQ:USAB) today reported a net loss of $743,000, or $.15 loss per share, diluted, for the quarter ended March 31, 2001, compared to a net loss of $2.45 million, or $0.43 loss per share, diluted, for the quarter ended March 31, 2000. At March 31, 2001, total assets were $326.9 million compared to $336.5 million at December 31, 2000. During the first quarter vBank, the banking subsidiary, continued to reduce its dependence on institutional funding. Interest income decreased 2.7% or $200,000 to $7.1 million, for the quarter ended March 31, 2001, compared to the quarter ended March 31, 2000 due primarily to a decrease in average earning assets. Interest expense increased .4% or $21,000 to $4.8 million for the quarter ended March 31, 2001, due to the higher cost of funds compared to the quarter ended March 31, 2000. Non-interest income increased to $329,000 for the quarter ended March 31, 2001. Service fee income increased $168,000 due to service charges on deposit accounts, and $53,000 on the gain on sale of investments. Non-interest expense decreased $1.5 million or 31.5% from the quarter ended March 31, 2000. The decrease is attributable to the Bank's de-emphasizing its Internet initiative and focusing on its community-banking platform. Reductions occurred in advertising, staffing, and online partnerships. Total non-performing loans were $111,000 for the quarter ended March 31, 2001, compared to $1.5 million for the quarter ended March 31, 2000. Total non-performing loans, as a percentage of total loans, were .06% at the quarter ended March 31, 2001. The allowance for loan losses as a percentage of loans outstanding, net of discount, was 1.15% at March 31, 2001, compared to 1.04% at March 31, 2000. The allowance for loan losses as a percentage of total non-performing loans, net of discount, was 1881.10% at March 31, 2001. "The focus continues on returning to profitability and performance trends are pointing in this direction. Management continues to be pleased with the performance of its loan portfolio," stated Craig J. Scher, President and Chief Executive Officer of vBank, the Company's banking subsidiary. Forward Looking Statements: Some of the statements contained in this press release discuss future expectations and financial conditions and state other "forward looking" information. Those statements are subject to known and unknown risks; uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, for example: general economic conditions, including their impact on capital expenditures; business conditions in the financial services industry; the regulatory environment; rapidly changing technology and evolving banking industry standards; competitive factors, including increased competition with community, regional and national financial institutions; new services and products offered by competitors; and price pressures. --30--DS/ph* CONTACT: USABancShares.com, Philadelphia Craig J. Scher, 215/569-4200 cscher@usabancshares.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com (c) 2001 Business Wire |
