Lawrence Savings Bank first quarter results 1997
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--April 22, 1997-- Lawrence Savings Bank ,
today announced results for the quarter ended March 31, 1997.
Lawrence Savings Bank reported net income of $1,303,000 or $0.31 per share (fully dilutive $0.29
per share) for the first quarter of 1997. This amount compares to net income of $982,000 or $0.23
per share (fully dilutive $0.23 per share) for the same period of 1996.
Net interest income for the first quarter of 1997 and 1996 was $2,816,000 and $2,312,000,
respectively. This represents a 22 percent increase in net interest income. This was due to a
reduction of risk assets which were non-performing and an increase in loans and investment
securities.
The provision for loan losses for the quarter ended March 31, 1997 and 1996 was a credit of
$100,000 and $300,000, respectively. Net recoveries were $12,000 and $298,000 in the first
quarter of 1997 and 1996, respectively, on loans previously charged-off. The credit provision also
takes into account the reduction in non-performing loans since Dec. 31, 1996.
Non-interest income for the quarter ended March 31, 1997 and 1996 was $285,000 and
$191,000, respectively. Included in 1997 was $12,000 of gains on the sale of mortgage loans as
compared to $35,000 of losses in the first quarter of 1996. Other real estate owned expenses
(OREO) of $61,000 was included in non-interest income for the first quarter 1996.
Non-interest expense was $1,998,000 and $1,921,000 for the first quarter of 1997 and 1996,
respectively. The increase was due to salaries and employee benefits increasing to $1,105,000 from
$914,000 due to normal raises for employees and changes in the pension plan. The increase was
offset by reduction of occupancy and equipment expenses of $44,000 and professional expenses of
$83,000. For the first quarter of 1997 and 1996, occupancy and equipment expenses were
$194,000 and $238,000 and professional expenses were $219,000 and $302,000, respectively.
Income tax benefit of $100,000 was recorded during the first quarter of 1997 and 1996. The
income tax benefit recorded was due to the recognition of an increase in deferred tax asset.
Non-performing loans decreased to $487,000 at March 31, 1997 as compared to $1,153,000 at
Dec. 31, 1996 and $4,179,000 at March 31, 1996. Other real estate owned decreased to
$733,000 at March 31, 1997 from $739,000 at Dec. 31, 1996 and from $2,223,000 at March 31,
1996.
Gross loans at March 31, 1997 increased to $155,872,000 from $153,603,000 at Dec. 31, 1996
and $147,354,000 at March 31, 1996. The reserve for loan losses decreased to $3,545,000 at
March 31, 1997 from $3,633,000 at Dec. 31, 1996 and from $4,017,000 at March 31, 1996.
Total assets increased to $342,037,000 at March 31, 1997 from $337,856,000 at Dec. 31, 1996
and $323,523,000 at March 31, 1996. The increase in asset size at March 31, 1997 from Dec. 31,
1996 occurred because the bank used the proceeds from a net increase of $6,618,000 in deposits
to fund loan growth, purchase investment securities, payoff certain Federal Home Loan Bank
advances and repurchase agreements. The increase in asset size at March 31, 1997 from March 31,
1996 occurred because the bank used the net proceeds from the increase of $7,406,000 in deposits
and $5,843,000 in borrowed funds to fund loan growth and purchase investment securities.
Total deposits at March 31, 1997 were $252,681,000 which increased from $246,063,000 at Dec.
31, 1996 and $245,275,000 at March 31, 1996. The increase in deposits at March 31, 1997 from
Dec. 31, 1996 was due to an increase in certificates of deposit and Individual Retirement Accounts
(IRA's). The increase in deposits at March 31, 1997 from March 31, 1996 was due to an increase
in certificates of deposit and money market accounts which were offset by decreases in savings
accounts, IRA's and demand deposit accounts. Total borrowed funds were $55,328,000 at March
31, 1997 as compared to $59,030,000 and $49,485,000 at Dec. 31, 1996 and March 31, 1996,
respectively.
Stockholders' equity was $30,038,000 at March 31, 1997 as compared to $29,010,000 and
$24,443,000 at Dec. 31, 1996 and March 31, 1996, respectively. The increase of $1,028,000
during the first quarter of 1997 is attributable to net income of $1,303,000, proceeds of $28,000
associated with the exercise of stock options offset by a decrease in the market value of investment
securities available for sale of $303,000. The bank exceeds all regulatory minimum capital ratio
requirements as defined by the FDIC. The leverage ratio was 8.90 percent, 8.61 percent and 8.15
percent at March 31, 1997, Dec. 31, 1996 and March 31, 1996, respectively.
The financial results for the first quarter of 1997 indicate that the bank is improving profitability,
reducing risk assets and funding loans and purchasing investment growth from deposits. Our staff,
management and Board of Directors will continue in 1997 to work to further enhance shareholders'
value.
LAWRENCE SAVINGS BANK
CONDENSED CONSOLIDATED BALANCE SHEET (a)
(In thousands, except per share data)
March 31, 1997 Dec. 31, 1996 March 31, 1996
Loans $ 155,872 $ 153,603 $ 147,354
Reserve for loan losses (3,545) (3,633) (4,017)
Investments held to
maturity 126,849 124,045 111,897
Investments available
for sale 44,970 46,091 48,841
OREO 733 739 2,223
Other assets 17,158 17,011 17,225
Total assets $ 342,037 $ 337,856 $ 323,523
Deposits $ 252,681 $ 246,063 $ 245,275
Borrowed funds 55,328 59,030 49,485
Other liabilities 3,990 3,753 4,320
Stockholders' equity 30,038 29,010 24,443
Total liabilities and
stockholders' equity $ 342,037 $ 337,856 $ 323,523
Book value per share $ 7.06 $ 6.83 $ 5.76
CONDENSED CONSOLIDATED INCOME STATEMENT (a)
(In thousands, except per share data)
March 31, March 31,
1997 1996
Interest income $ 6,213 $ 5,386
Interest expense 3,397 3,074
Net Interest income 2,816 2,312
Provision for loan losses (100) (300)
Net interest income after
provision for loan losses 2,916 2,612
Non-interest income 285 191
Non-interest expense 1,998 1,921
Net Income before
income taxes 1,203 882
Income tax benefit 100 100
Net income $ 1,303 $ 982
Net income per share $ 0.31 $ 0.23
Net income per share/fully dilutive $ 0.29 $ 0.23
SELECTED FINANCIAL INFORMATION (a)
March 31, 1997 March 31, 1996
Select financial ratios:
Return on average assets 1.54% 1.30%
Return on average stockholders'
equity 18.06% 16.36%
March 31, 1997 Dec. 31, 1996 March 31, 1996
Capital ratios:
Shareholders' equity to
total assets ratio 8.78% 8.59% 7.56%
Tier 1 leverage capital
ratio 8.90% 8.61% 8.15%
Total risk-based capital
ratio 18.21% 17.42% 16.52%
Asset quality ratios:
Reserve for loan loss to
non-performing and
restructured loans 727.9% 315.1% 96.1%
Risk assets to total
assets 0.4% 0.6% 2.0%
Risk assets:
Non-performing loans $ 487 $1,153 $4,179
Other real estate owned 733 739 2,223
Total risk assets $1,220 $1,892 $6,402
(a) Unaudited |
