Earnings report posted as of 6:20 PM EST this evening - hope it bodes well for the stock action the rest of the week.
Tuesday January 21 6:19 PM EDT
Lawrence Savings Bank fourth quarter results 1996
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Jan. 21, 1997--Lawrence Savings Bank, (NASDAQ-LSBX), today
announced results for the quarter ended Dec. 31, 1996.
Lawrence Savings Bank reported net income of $1,780,000 or $0.42 per share (fully dilutive, $0.41 per share) for the fourth
quarter of 1996. This amount compares to net income of $1,199,000 or $0.28 per share for the same period of 1995. Net
income for the year ended Dec. 31, 1996 was $5,228,000 or $1.23 per share (fully dilutive $1.19 per share) as compared to
$2,915,000 or $0.69 per share for the same period of 1995.
Net interest income for the fourth quarter of 1996 and 1995 was $2,693,000 and $2,146,000, respectively. Net interest
income was $9,861,000 and $8,849,000 for the year 1996 and 1995.
The provision for loan losses for the quarter ended Dec. 31, 1996 and 1995 was a credit of $300,000 and $525,000,
respectively. The credit provision in the fourth quarter 1996 reflects net recoveries of $273,000 and a reduction of
non-performing loans. The credit provision in the fourth quarter of 1995 reflected net recoveries of $1,258,000 on loans
previously charged-off. The provision for loan losses for the year ended Dec. 31, 1996 was a credit of $900,000 as
compared to zero for the same period of 1995. Net recoveries for the year 1996 and 1995 were $514,000 and $639,000,
respectively.
Non-interest income for the quarter ended Dec. 31, 1996 and 1995 was $459,000 and $353,000, respectively. Non-interest
income was $1,625,000 for the year ended Dec. 31, 1996 as compared to $1,241,000 for the same period of 1995. The
increase in non-interest income was due to net gains on sales of Other Real Estate Owned (OREO) of $560,000 included in
OREO income of $457,000 in 1996, (reclassified to non-interest income). This compares to OREO expense of $14,000 in
1995 (included in non-interest expense), in which net operating expense and writedowns were offset by net gains on sales of
OREO. This increase was partially offset by a decline in deposit account fees to $516,000 in 1996 from $577,000 in 1995.
Non-interest expense was $1,972,000 and $1,975,000 for the fourth quarter of 1996 and 1995, respectively. Non-interest
expense for the year ended Dec. 31, 1996 was $7,758,000 as compared to $7,775,000 for the same period of 1995. The
decline in non-interest expense was also attributed to lower premiums paid on deposit insurance to the Federal Deposit
Insurance Corporation (FDIC) as a result of FDIC lowering premiums and an improved CAMEL rating by the bank. This
decrease was offset by an increase in salaries and employee benefits to $4,003,000 in 1996 from $3,840,000 in 1995.
Income tax benefits of $300,000 and $150,000 were recorded during the fourth quarter of 1996 and 1995 and $600,000
was recorded for the years ended Dec. 31, 1996 and 1995. The income tax benefits recorded were due to the recognition of
a deferred tax asset.
The bank has continued to reduce total risk assets, which decreased by 73 percent since Dec. 31, 1995. Non-performing
loans decreased to $1,153,000 at Dec. 31, 1996 as compared to $4,818,000 at Dec. 31, 1995. Other real estate owned
(OREO) decreased to $739,000 at Dec. 31, 1996 from $1,854,000 at Dec. 31, 1995. Restructured loans were zero for
Dec. 31, 1996 and $275,000 as of Dec. 31, 1995.
Gross loans at Dec. 31, 1996 were $153,603,000 up from $143,750,000 at Dec. 31, 1995. The reserve for loan losses
decreased to $3,633,000 from $4,019,000 at Dec. 31, 1995.
Total assets increased to $337,856,000 at Dec. 31, 1996 from $305,637,000 at Dec. 31, 1995. The increase in asset size
during the year of 1996 primarily occurred because the bank used the proceeds from a net increase in $26,981,000 Federal
Home Loan Bank advances and repurchase agreements to fund loan growth and purchase investment securities.
Total deposits at Dec. 31, 1996 were $246,063,000 up from $245,364,000 at Dec. 31, 1995. Increases in money market
accounts and certificates of deposit accounts were offset by decreases in savings accounts, Individual Retirement Accounts
(IRA's) and demand deposit accounts.
Stockholders' equity was $29,010,000 at Dec. 31, 1996 as compared to $23,950,000 at Dec. 31, 1995. The increase of
$5,060,000 during the year of 1996 is attributable to net income of $5,228,000 and offset by $223,000 decrease in the value
of investment securities available for sale and $55,000 associated with the exercise of stock options. The bank exceeds all
regulatory minimum capital ratio requirements as defined by the FDIC. The leverage ratio was 8.61 percent and 8.08 percent,
at Dec. 31, 1996 and Dec. 31, 1995, respectively.
The financial results for the fourth quarter of 1996 indicated that the bank is improving profitability, reducing risk assets and
borrowing to fund investment and loan growth. Our staff, management and board of directors will continues in 1997 to work
to further enhance shareholders' value.
LAWRENCE SAVINGS BANK
CONDENSED CONSOLIDATED BALANCE SHEET (a)
(In thousands, except per share data)
Dec. 31, 1996 Dec. 31, 1995
Loans $ 153,603 $ 143,750
Reserve for loan losses (3,633) (4,019)
Investments held to
maturity 124,045 95,422
Investments available for sale 46,091 47,467
OREO 739 1,854
Other assets 17,011 21,163
Total assets $ 337,856 $ 305,637
Deposits $ 246,063 $ 245,364
Borrowed funds 59,030 32,049
Other liabilities 3,753 4,274
Stockholders' equity 29,010 23,950
Total liability and
stockholders' equity $ 337,856 $ 305,637
Book value per share $ 6.83 $ 5.65
CONDENSED CONSOLIDATED INCOME STATEMENT (a)
(In thousands, except per share data)
Three months ended Twelve months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
Interest income $ 6,092 $ 5,147 $22,889 $19,767
Interest expense 3,399 3,001 13,028 10,918
Net Interest income 2,693 2,146 9,861 8,849
Provision for loan losses (300) (525) (900) --
Net interest income after
provision for loan losses 2,993 2,671 10,761 8,849
Non-interest income 459 353 1,625 1,241
Non-interest expense: 1,972 1,975 7,758 7,775
Net income before
income taxes 1,480 1,049 4,628 2,315
Income tax benefit 300 150 600 600
Net income $ 1,780 $ 1,199 $ 5,228 $ 2,915
Net income per share $ 0.42 $ 0.28 $ 1.23 $ 0.69
Net income per
share/fully dilutive $ 0.41 $ 0.28 $ 1.19 $ 0.69
SELECTED FINANCIAL INFORMATION (a)
Three months ended Twelve months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
Select financial ratios:
Return on average assets 2.10% 1.62% 1.61% 1.03%
Return on average
stockholders' equity 25.17% 20.75% 20.74% 13.59%
Dec. 31, Dec. 31,
1996 1995
Capital ratios:
Shareholders' equity to total
assets ratio 8.59% 7.84%
Tier 1 leverage capital ratio 8.61% 8.08%
Total risk-based capital ratio 17.42% 16.30%
Asset quality ratios:
Reserve for loan loss to non-performing
and restructured loans 315.1% 78.9%
Risk assets to total assets: 0.6% 2.3%
Risk assets:
Non-performing loans $1,153 $4,818
Other real estate owned 739 1,854
Restructured loans -- 275
Total risk assets $1,892 $6,947
(a) Unaudited
CONTACT: Lawrence Savings Bank
Jeffrey W. Leeds, 508/725-7605: |
