FOR IMMEDIATE RELEASE
July 19, 1996 Contact:
Robert J. Brittain, President and CEO
(518) 842-7200
Harold A. Baylor, Vice Pres. & Treas.
(518) 842-1445
Ambanc Holding Co., Inc., the parent of Amsterdam Savings Bank,
F.S.B., announces earnings for the quarter and the six-months ended
June 30, 1996.
Amsterdam, N.Y. - Ambanc Holding Co., Inc. (NASDAQ - AHCI)
("Company"), the holding company of Amsterdam Savings Bank, F.S.B.
("Bank"), today reported earnings for the quarter ended June 30,
1996, of $510,000, or $0.09 per share, and earnings for the six
months ended June 30, 1996, of $196,000, or $0.04 per share,
compared to losses of $820,000 and $172,000 in the comparable
periods in 1995. Shares issued and outstanding on June 30, 1996,
were 5,422,250.
Prior to the consummation of the conversion on December 26, 1995,
the Company had no significant assets, liabilities or operations.
Accordingly, the consolidated data released represents the data of
the Bank and its subsidiaries for the quarter and the six-months
ended June 30, 1995.
Results of Operations For the Three Months Ended June 30, 1996 and
1995:
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The Company attributed its 1996 second quarter earnings
improvement, in part, to an increase in net interest income of
$631,000, or 19.2%, to $3.9 million from $3.3 million in the second
quarter of 1995. Also contributing to its improved earnings were
decreases in the provision for loan losses and non-interest
expenses of $683,000 and $834,000, respectively, in comparison to
the 1995 period. The Company's efficiency ratio decreased to 65.7%
for the three months ended June 30,1996, from 81.8% in the
comparable 1995 period.
The improvement in net interest income resulted from an increase in
average net earning assets of $43.2 million, funded primarily by
the proceeds received in the conversion and an increase in borrowed
funds. The positive effect from the growth in average net earning
assets was partially offset by a narrowing of 14 basis points in
the Company's average net interest margin to 3.87% from 4.01% in
1995's second quarter.
The provision for loan losses declined by $683,000 to $433,000 for
the quarter ended June 30, 1996, compared to the same quarter in
1995. In the 1995 period, the Bank decided that it was prudent to
significantly increase its provision expense based on management's
analysis of the Bank's asset quality and the level of its allowance
for loan losses. In the 1996 period, management's analysis of its
allowance for loan losses indicated that its reserve levels were
adequate and, therefore, did not necessitate the same levels of
provision expense required in the prior year.
The decrease in non-interest expenses was primarily attributable to
a decline in losses and write-downs on real estate owned of
$680,000. In the second quarter of 1995, the Bank significantly
increased its losses and write-down expense based on actual
expenses incurred and management's estimations of lower fair
values, less disposal costs. Management's estimations of the fair
value of the Bank's repossessed assets were based on various
factors, which included appraisals, actual sales, and offers to
purchase such properties or properties similar in nature to the
repossessed properties held by the Bank. A similar analysis in
1996 did not indicate that additional write-downs were required as
was the case in 1995. Also contributing to the decrease in
non-interest expenses was a decline in the FDIC/BIF deposit
insurance expense of $177,000 due to the minimum annual premium
assessment of $2,000 currently applied to well-capitalized
institutions.
Results of Operations For the Six Months Ended June 30, 1996 and
1995:
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The improvement in net income of $368,000 for the six months ended
June 30, 1996, to $196,000 was the result, in part, of an increase
in net interest income of $899,000, or 13.4%, to $7.6 million
compared to $6.7 million for the six months ended June 30, 1995.
Also contributing to the improved earnings was a decrease in
non-interest expenses of $608,000, or 9.9%, to $5.5 million from
the comparable six month period in 1995. The Company's efficiency
ratio was reduced to 65.6% for the six months ended June 30, 1996,
from 70.0% in the same period a year ago. These positive factors
were partially offset by an increase in the provision for loan
losses of $777,000 due entirely to a $1.5 million charge taken on
March 31, 1996, pertaining to the Bank's aggregate lending
relationship of $3.6 million with the Bennett Funding Group, a
company that filed for Chapter 11 on March 29, 1996.
The improvement in net interest income was attributable to an
increase in average net earning assets of $76.9 million funded
primarily by the proceeds from the stock conversion. The positive
effect derived by the growth in average net earning assets was
partially offset by a decrease in the average net interest margin
to 3.89% for the six months ended June 30, 1996, from 4.15% in the
same period of 1995.
Earnings were also positively affected by a decline in non-interest
expenses of $608,000, or 9.9%, to $5.5 million. The primary reason
for the decrease was a decline in losses and write-downs on real
estate owned of $778,000 for the same reasons as stated above for
the three months ended June 30, 1996. Also contributing to the
decrease in non-interest expenses was a decline in the FDIC/BIF
deposit insurance premium of $352,000 Ambanc Holding Co., Inc. is
a newly formed unitary savings and loan holding company. The
Company's primary subsidiary, Amsterdam Savings Bank, F.S.B.,
operates nine banking offices in Montgomery (4), Saratoga (2),
Fulton (1), Schenectady (1), and Albany (1) counties in New York.
The Bank's deposits are insured by the FDIC through the Bank
Insurance Fund (BIF).
AMBANC HOLDING CO., INC.
Selected Consolidated Financial Information
June 30 December 31
1996 1995
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(In Thousands)
Selected Financial Condition Data:
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Total assets $ 458,988 $439,365
Loans receivable, net 258,801 249,991
Mortgage-backed securities 132,685 53,033
Investment securities 43,862 21,389
Due from brokers 0 18,128
Deposits 305,355 311,239
Total borrowings 74,370 0
Due to brokers 0 46,880
Total equity 74,822 76,015
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
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1996 1995 1996 1995
------ ------- ------- -------
(In Thousands)
Selected Operations Data:
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Total interest income $7,590 $ 6,426 $14,538 $12,698
Total interest expense 3,681 3,148 6,943 6,002
------ ------- ------- -------
Net interest income 3,909 3,278 7,595 6,696
Provision for loan losses 433 1,116 2,061 1,284
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Net interest income after
provision for loan losses 3,476 2,162 5,534 5,412
Fees and service charges 169 166 330 313
Net gain(loss) on sales and
redemptions of investment
and mortgage-backed securities 0 1 (98) 1
Other non-interest income 83 89 154 226
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Total non-interest income 252 256 386 540
Total non-interest expense 2,855 3,689 5,519 6,127
------ ------- ------- -------
Income(loss) before taxes 873 (1,271) 401 (175)
Income tax provision 363 (451) 205 (3)
------ ------- ------- -------
Net income (loss) $ 510 $ (820) $ 196 $ (172)
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AMBANC HOLDING CO., INC.
Selected Financial Ratios and Other Data
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
------------------ ------------------
1996 1995 1996 1995
------- -------- ------- --------
Performance Ratios:
Return on assets 0.47% (0.97)% 0.09% (0.10)%
Return on equity 2.74 (11.72) 0.52 (1.23)
Interest rate spread during period 2.94 3.49 2.93 3.81
Net interest margin during period 3.87 4.01 3.89 4.15
Efficiency ratio 65.73 81.77 65.60 70.00
Ratio of operating expense to
average total assets 2.62 4.35 2.58 3.55
Ratio of avg. interest-earning
assets to average interest-
bearing liabilities 131.10 113.51 133.91 109.15
Asset Quality Ratios: June 30, 1996 December 31, 1995
- --------------------- ------------- -----------------
Non-performing assets to total assets
at end of period 3.65% 2.74%
Non-performing loans to total loans 6.37 3.51
Allowance for loan losses to
non-performing loans 32.88 30.10
Allowance for loan and real estate
owned losses to non-performing
assets 26.19 21.99
Allowance for loan losses to
loans receivable, net 1.65 1.05
Capital Ratios:
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Equity to total assets at end of
period 16.30 17.30
Average equity to average assets 17.68 8.30
Other Data:
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Number of full-service offices 9 9