FOR IMMEDIATE RELEASE
Contact:
Robert J. Brittain, President and CEO
(518) 842-7200
Harold A. Baylor, Vice Pres. & Treas.(CFO)
(518) 842-1445
Ambanc Holding Company, Inc. Announces
Earnings for the Quarter Ended March 31, 1997.
Amsterdam, N.Y., May 1, 1997.... Robert J. Brittain, President and Chief
Executive Officer of Ambanc Holding Co., Inc. (NASDAQ: AHCI), today announced
that the Company had net income of $652,000, or $0.16 per share, for the quarter
ended March 31, 1997, compared to a net loss of $314,000, or $0.06 per share, in
the comparable 1996 period. The net loss recorded in the 1996 period was
attributable to an initial $1.5 million provision for loan losses related to the
Chapter 11 bankruptcy filing on March 29, 1996 by the Bennett Funding Group,
Inc. ("Bennett"), a lease financing company that had a $3.6 million aggregate
loan relationship with the Company's wholly owned subsidiary bank, Amsterdam
Savings Bank, FSB, as of the bankruptcy filing date. Excluding the Bennett
provision, the Company would have earned approximately $593,000, or $0.12 per
share, for the three months ended March 31, 1996.
The improvement in net income was attributable primarily to a decline of $1.3
million in the Company's provision for loan losses to $363,000 for the quarter
ended March 31,1997, compared to a provision of $1.6 million for the comparable
1996 quarter. Also contributing to the improvement in earnings for the three
months ended March 31, 1997 was an increase in net interest income before
provision for loan losses of $367,000, or 10.0%, to $4.0 million, compared to
$3.7 million in the corresponding period last year. Total interest income
increased by $1.8 million to $8.7 million, which more than offset an increase in
total interest expense of $1.4 million.
The increase in net interest income resulted from an increase in the average
volume of interest-earning assets of $87.3 million, or 23.3%, to $462.2 million
for the three months ended March 31, 1997, compared to $374.9 million for the
corresponding 1996 period; partially offset by a narrowing in the Company's
average net interest margin to 3.53% from 3.92%, a decline of 39 basis points.
The increase in total average interest-earning assets was due mainly to an
increase in securities available for sale (AFS) of $125.6 million to $201.5
million, partially offset by a decrease in federal funds sold of $39.1 million
to $7.6 million.
The decrease in the Company's average net interest margin was attributable
primarily to a change in the composition or mix of the Company's average
interest-bearing liabilities as a percentage of its total funding mix (comprised
of interest-bearing liabilities and non-interest bearing funds). During the
quarter ended March 31, 1996, the Company had no borrowed funds as part of its
funding mix. However, as part of the Company's strategy to increase earnings,
the Company borrowed funds to purchase securities AFS and simultaneously pledged
the bulk of these securities as securities sold under agreements to repurchase
(reverse repos). Average borrowed funds for the quarter ended March 31,1997,
increased to $104.7 million at an average rate of 5.93%, primarily reverse
repos, which increased to $102.5 million. For the three months ended March 31,
1997, average interest-bearing liabilities increased to 83.9% of the Company's
total average funding mix compared to 77.2% for the comparable 1996 period.
At March 31, 1997, Ambanc Holding Co., Inc., which operates nine banking
locations in the Capital Region of upstate New York through its subsidiary bank
and has approvals to open three new branch offices in 1997, had total assets of
$478.1 million and total shareholders' equity of $60.8 million.
AMBANC HOLDING CO., INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
March 31, Dec. 31,
1997 1996
-------- --------
(In Thousands)
Selected Consolidated Financial Condition Data:
- -----------------------------------------------
Total assets ......................................... $478,117 $472,421
Securities available for sale, at fair value ......... 202,733 200,539
Loans receivable, net of unamortized fees ............ 251,792 251,532
Allowance for loan losses ............................ 3,712 3,438
Deposits ............................................. 311,471 298,082
Total borrowings ..................................... 102,310 108,780
Total equity ......................................... 60,819 61,518
For the Three Months
Ended
March 31,
---------------------
Selected Consolidated Operations Data: 1997 1996
- -------------------------------------- ---- ----
(In thousands except for per share data)
Total interest income ................................ $ 8,675 $ 6,915
Total interest expense ............................... 4,655 3,262
------- -------
Net interest income .................................. 4,020 3,653
Provision for loan losses ............................ 363 1,628
------- -------
Net interest income after
provision for loan losses ........................... 3,657 2,025
Fees and service charges ............................. 181 176
Net loss on sales and
redemptions of investment
and mortgage-backed securities ...................... (1) (98)
Other non-interest income ............................ 54 54
------- -------
Total non-interest income ............................ 234 132
Total non-interest expense ........................... 2,815 2,692
------- -------
Income(loss) before taxes ............................ 1,076 (535)
Income tax provision (benefit) ....................... 424 (221)
------- -------
Net income (loss) .................................... $ 652 $ (314)
======= =======
Net income (loss) per common share
(4,011,349 and 4,988,924 weighted average number
of shares issued and outstanding, for the three
months ended March 31, 1997 and 1996, respectively).. $ 0.16 $ (0.06)
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AMBANC HOLDING CO., INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
March 31,
------------------
1997 1996
------- -------
Selected Consolidated Financial Ratios
and Other Data (1):
- ------------------
Performance Ratios:
- -------------------
Return on average assets ............................. 0.55% (0.30)%
Return on average equity ............................. 4.22 (1.65)
Average interest rate spread ......................... 2.76 2.88
Average net interest margin .......................... 3.53 3.92
Efficiency ratio ..................................... 63.57 66.06
Ratio of average interest-earning assets to
average interest-bearing liabilities .............. 119.18 29.57
Asset Quality Ratios: March 31, Dec. 31,
- -------------------- 1997 1996
-------- --------
Non-performing assets to total assets at end of period 1.06 1.18
Non-performing loans to total loans .................. 1.76 1.94
Allowance for loan losses to non-performing loans .... 83.87 70.47
Allowance for loan losses to loans receivable ........ 1.47 1.37
Capital Ratios & Book Value per Share:
- -------------------------------------
Equity to total assets at end of period .............. 12.72 13.02
Average equity to average assets ..................... 13.01 15.95
Book Value per Share:
Equity net of after-tax effect from unrealized
gains(losses) on securities available for sale $ 13.85 $ 14.01
Equity before after-tax effect from unrealized
gains(losses) on securities available for sale $ 14.21 $ 14.02
Other Data:
- ----------
Number of full-service offices 9 9
- --------------------------------------------------------------------------------
(1) All ratios, unless otherwise indicated, have been calculated by including
the after-tax effect of unrealized losses on securities AFS.
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