PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Stan Carlson, President & CEO
Washington Bancorp Announces:
20% Increase in the Quarterly Dividend,
Earnings for the Second Quarter ending December 31, 1997
and the Completion of the Rubio Savings Bank Merger
Washington, Iowa - (Jan. 27, 1998) Stan Carlson, President & Chief Executive
Officer of Washington Bancorp (NASD Bulletin Board: WBIO), reported net income
of $199,230 or $0.33 per share, for the quarter ended December 31, 1997. This
compares to net income of $194,749 for the quarter ending December 31, 1996,
or $.32 per share. The earnings were a slight improvement over the previous
period primarily as a result of the increased level of loans, loans have grown
6.28% when compared to the same period a year earlier and currently stand at
$55,828,000. For the first six months ending December 31, 1997, the Company
has earned $355,450 or $.22 per share compared to $165,387 or $.18 per share
for the six month period ending December 31, 1996.
In other news, the Company announced that on February 23, 1998, it will pay
its seventh consecutive quarterly dividend. The dividend will be $.12 per
share to shareholders of record on January 31, 1998. This dividend represents
a 20% increase over the previous quarterly dividend of $.10. As of December
31, 1997, Washington Bancorp had 651,133 shares of common stock outstanding,
and reported assets of $66,091,000 and stockholders' equity of $10,981,000.
Washington Bancorp and its subsidiary, Washington Federal Savings Bank, a
wholly owned subsidiary of Washington Bancorp, provides a wide range of
financial products and services, and operates one full-service office and one
drive-up facility located in Washington, Iowa. In addition, as of January 15,
1998, the Rubio Savings Bank of Brighton, IA, became an owned subsidiary of
Washington Bancorp. Rubio will operate as a completely separate state
chartered financial institution with its own charter and board of directors.
As of December 31, 1997, Rubio Savings Bank reported assets of $22,630,000
compared to $22,293,000 as of December 31, 1996. Deposits of both
institutions are insured by the Federal Deposit Insurance Corporation to the
full extent permitted by law and regulation. The common stock of Washington
Bancorp is traded on the "Bulletin Board" of the National Quotation Bureau
Inc. under the symbol "WBIO".
Washington Bancorp
Selected Financial Ratios and Other Data:
Three months ended Six months ended
December 31, December 31,
1997 1996 1997 1996
Performance ratios (annualized):
Return on average assets 1.21% 1.22% 1.09% 0.53%
Average interest rate spread 3.03% 3.14% 2.95% 3.01%
Net interest margin 3.94% 4.08% 3.87% 3.97%
Ratio of operating expense
to average total assets 2.52% 2.49% 2.39% 3.36%
Return on average equity 7.31% 7.36% 6.59% 3.13%
Quality ratios:
Non-performing assets to
total assets at end of period 0.06% 0.02% 0.06% 0.02%
Allowance for loan losses to
non-performing assets 668.62% 1354.93% 668.62% 1354.93%
Capital ratios:
Equity to total assets at end
of period 16.61% 16.51% 16.61% 16.51%
Average equity to average
assets 16.54% 16.65% 16.51% 16.87%
Ratio of average interest-earning
assets to average interest-
bearing liabilities 121.35% 122.46% 121.28% 122.83%
Unaudited Consolidated Statements of Income
Three months ended Six months ended
December 31, December 31,
1997 1996 1997 1996
Total Interest income $1,317,582 $1,264,785 $2,602,304 $2,457,023
Total Interest expense 685,100 641,075 1,366,607 1,268,052
---------- ---------- ---------- ----------
Net interest income 632,482 623,710 1,235,697 1,188,971
Provision for loan loss 28,000 3,000 53,000 6,000
Net interest income after
provision for loan losses 604,482 620,710 1,182,697 1,182,971
Total non-interest income 83,293 72,725 135,426 129,304
Total non-interest expense 414,741 388,695 785,078 1,054,343
---------- ---------- ---------- ----------
Income before income tax expense 273,034 304,740 533,045 257,932
Income tax expense 73,804 109,991 177,595 92,545
---------- ---------- ---------- ----------
Net income $ 199,230 $ 194,749 $ 355,450 $ 165,387
---------- ---------- ---------- ----------
Earnings per share:
Basic EPS $0.33 $0.32 $0.59 $0.27
Diluted EPS $0.32 $0.32 $0.57 $0.27
Cash dividend declared
per share $0.12 $0.10 $0.22 $0.18
Consolidated Statements of Financial Condition
December 31, June 30,
1997 1997
----------- ------------
(unaudited)
Assets
Cash and cash equivalents 2,414,182 807,805
Investment securities 6,105,677 9,849,991
Loans receivable, net 55,827,909 52,530,153
Other assets 1,743,370 1,687,085
----------- -----------
Total assets 66,091,138 64,875,034
=========== ===========
Liabilities
Deposits 44,471,416 44,754,328
Borrowed funds 9,844,772 8,651,765
Other liabilities 716,303 724,118
----------- -----------
55,032,491 54,130,211
----------- -----------
Commitments and contingencies
Redeemable common stock held
by the ESOP 78,066 69,392
----------- -----------
Stockholders' equity 10,980,581 10,675,431
----------- -----------
Total liabilities and
stockholders' equity 66,091,138 64,875,034
=========== ===========