Alliance Reports 7% First Quarter Earnings Growth

Apr 24, 2001, 01:00 ET from Alliance Bancorp of New England, Inc.

    VERNON, Conn., April 24 /PRNewswire Interactive News Release/ -- Alliance
 Bancorp of New England, Inc., the holding company for Tolland Bank, reported a
 7% increase in earnings for the first quarter ended March 31, 2001.  Net
 profit totaled $827 thousand, compared to $771 thousand a year earlier.
 Quarterly earnings per share increased to $.35 compared to $.33, on a diluted
 basis.
     Alliance also announced that the Board of Directors has approved a
 quarterly cash dividend of 7.5 cents per share, payable on May 22, 2001 to
 shareholders of record at the close of May 8, 2001.
     President Joseph H. Rossi stated, "Total loans grew at a 22% annualized
 rate during the most recent quarter, continuing the strong business growth we
 accomplished through last year-end.  This growth was funded primarily from
 short term investments, producing higher yielding fixed rate assets.  Loan
 growth was recorded in all major loan categories, reflecting favorable volume
 in both the commercial and consumer loan markets.  We continue to carefully
 manage asset quality, pursuing our plan for controlled growth through market
 share expansion.  There were no foreclosed assets at March 31, 2001.
 Nonaccruing loans totaled $1.5 million, compared to $1.1 million at year-end
 2000.  There were no net loan chargeoffs during the quarter.  Internally, we
 are implementing various sales and service initiatives, and we are developing
 improved avenues for customer convenience."
     First quarter net interest income grew by $283 thousand (10%) due to the
 strong loan growth, along with securities purchases.  Non-interest income
 declined by $66 thousand (16%) due to higher securities gains recorded in the
 previous year.  Non-interest expense increased by $117 thousand (6%),
 including higher salaries and higher legal and audit expense.
     Total assets were $350.5 million at quarter-end, and total shareholders'
 equity was $19.5 million, measuring 5.6% of total assets, compared to 5.2% at
 year-end 2000.  Book value per share was $8.37 at March 31, 2001, increasing
 by 8% from $7.77 at year-end 2000.  Shareholders' equity included a
 $744 thousand net benefit due to a decrease in net unrealized securities
 losses during the quarter.  Return on shareholders' equity measured 18.4%
 during the first quarter, and the Company's capital remained in excess of all
 regulatory requirements.
     As of January 1, 2001, Alliance implemented Financial Accounting Standard
 133.  This implementation included the re-designation of securities with a net
 value of $11.6 million from held to maturity to available for sale.  At the
 same time, the Company transferred securities with a net value of $7.1 million
 from available for sale to held to maturity.
     Alliance Bancorp of New England, Inc. (Amex:   ANE) is the bank holding
 company for Tolland Bank, a Connecticut-chartered bank with nine offices
 serving the market in central and eastern Connecticut.
 (http://www.alliancebancorp.com and http://www.tollandbank.com)
 
                     Alliance Bancorp of New England, Inc.
                Consolidated Selected Financial Data (Unaudited)
 
                                                           As of and for the
                                                          three months ended
                                                             March 31,
                                                        2001            2000
     For the Quarter (in thousands)
     Net interest income                               $3,091         $2,808
     Provision for loan losses                             72             87
     Service charges and other income                     312            310
     Net gain on securities and other assets               36            104
     Non-interest expense                               2,201          2,084
     Net income                                          $827           $771
 
     Per Share
     Earnings - basic                                   $0.35          $0.33
     Earnings - diluted                                  0.35           0.33
     Dividends declared                                 0.075           0.06
     Book value                                          8.37           6.77
     Common stock price:
     High                                                9.38           9.25
     Low                                                 8.37           6.88
     Close                                               9.25           8.38
 
     At Quarter End (in millions)
     Total assets                                      $350.5         $320.0
     Total loans                                        240.9          198.0
     Other earning assets                                89.2          101.4
     Deposits                                           283.4          259.6
     Borrowings                                          45.5           43.0
     Shareholders' equity (a)                            19.5           15.6
 
     Operating Ratios (in percent)
     Return on average equity                          18.36%         20.63%
     Return on average assets                            0.97           0.98
     Net interest spread (b)                             3.49           3.56
     Net interest margin (b)                             3.95           3.97
     Dividend payout ratio                              21.15          17.96
     Equity % total assets (period end)                  5.57           4.88
 
     (a) Shareholders' equity includes accumulated other comprehensive income
         (loss), which consists of unrealized gains (losses) on investment
         securities, net of taxes.
     (b) Ratio expressed as fully taxable equivalent.
 
                     Alliance Bancorp of New England, Inc.
                   Consolidated Income Statements (Unaudited)
 
                                                        Three Months Ended
                                                               March 31
     (in thousands except share data)                    2001           2000
     Interest Income
      Loans                                            $4,835         $3,928
      Debt securities                                   1,276          1,288
      Dividends on equity securities                      270            279
      Other earning assets                                 99            197
         Total interest and dividend income             6,480          5,692
     Interest Expense
      Deposits                                          2,694          2,309
      Borrowings                                          695            575
         Total interest expense                         3,389          2,884
 
     Net Interest Income                                3,091          2,808
 
     Provision For Loan Losses                             72             87
      Net interest income after
       provision for loan losses                        3,019          2,721
 
     Non-Interest Income
      Service charges and other income                    312            310
      Net gain on securities                               36            104
         Total non-interest income                        348            414
 
     Non-Interest Expense
      Compensation and benefits                         1,159          1,117
      Occupancy                                           181            192
      Data processing services and equipment              276            281
      Office and insurance                                136            163
      Purchased services                                  271            163
      Other                                               178            168
         Total non-interest expense                     2,201          2,084
      Income before income taxes                        1,166          1,051
      Income tax expense                                  339            280
         Net Income                                      $827           $771
 
     Per Share Data
      Basic earnings per share                          $0.35          $0.33
      Diluted earnings per share                        $0.35          $0.33
 
      Average basic shares outstanding              2,331,100      2,309,283
      Average additional dilutive shares               45,263         53,662
      Average diluted shares outstanding            2,376,363      2,362,945
 
                     Alliance Bancorp of New England, Inc.
                    Consolidated Balance Sheets (Unaudited)
 
     (in thousands except share data)               March 31,       Dec. 31,
     Assets                                              2001           2000
      Cash and due from banks                          $9,260        $10,684
      Short-term investments                            8,398         19,503
         Total cash and cash equivalents               17,658         30,187
 
      Securities available for sale
       (at fair value)                                 64,262         53,392
      Securities held to maturity                      16,562         23,013
      Residential mortgage loans                       61,544         58,280
      Commercial mortgage loans                        75,913         73,865
      Other commercial loans                           41,988         38,706
      Consumer loans                                   36,524         35,679
      Government guaranteed loans                      24,971         21,794
         Total loans                                  240,940        228,324
      Less: Allowance for loan losses                 (3,500)        (3,400)
         Net loans                                    237,440        224,924
 
      Premises and equipment, net                       5,852          5,834
      Foreclosed assets, net                               --             --
      Accrued interest income receivable                3,089          3,189
      Cash surrender value of life insurance            2,784          2,745
      Other assets                                      2,842          4,894
         Total assets                                $350,489       $348,178
 
     Liabilities and Shareholders' Equity
      Demand deposits                                 $29,332        $30,293
      NOW deposits                                     31,267         32,033
      Money market deposits                            41,175         38,716
      Savings deposits                                 46,111         46,849
      Time deposits                                   135,556        132,625
         Total deposits                               283,441        280,516
 
      Borrowings                                       45,500         46,700
      Other liabilities                                 2,037          2,847
         Total liabilities                            330,978        330,063
 
      Preferred stock, ($.01 par value;
       100,000 shares authorized, none issued)             --             --
      Common stock, ($.01 par value;
       authorized 4,000,000 shares; issued
       2,531,699 in 2001 and 2,531,699 in 2000;
       outstanding 2,331,100 in 2001 and
       2,331,100 in 2000)                                  25             25
      Additional paid-in capital                       11,516         11,516
      Retained earnings                                14,850         14,198
      Accumulated other comprehensive loss, net       (3,771)        (4,515)
      Treasury stock (200,599 shares)                 (3,109)        (3,109)
       Total shareholders' equity                      19,511         18,115
       Total liabilities and
        shareholders' equity                         $350,489       $348,178
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X92841169
 
 

SOURCE Alliance Bancorp of New England, Inc.
    VERNON, Conn., April 24 /PRNewswire Interactive News Release/ -- Alliance
 Bancorp of New England, Inc., the holding company for Tolland Bank, reported a
 7% increase in earnings for the first quarter ended March 31, 2001.  Net
 profit totaled $827 thousand, compared to $771 thousand a year earlier.
 Quarterly earnings per share increased to $.35 compared to $.33, on a diluted
 basis.
     Alliance also announced that the Board of Directors has approved a
 quarterly cash dividend of 7.5 cents per share, payable on May 22, 2001 to
 shareholders of record at the close of May 8, 2001.
     President Joseph H. Rossi stated, "Total loans grew at a 22% annualized
 rate during the most recent quarter, continuing the strong business growth we
 accomplished through last year-end.  This growth was funded primarily from
 short term investments, producing higher yielding fixed rate assets.  Loan
 growth was recorded in all major loan categories, reflecting favorable volume
 in both the commercial and consumer loan markets.  We continue to carefully
 manage asset quality, pursuing our plan for controlled growth through market
 share expansion.  There were no foreclosed assets at March 31, 2001.
 Nonaccruing loans totaled $1.5 million, compared to $1.1 million at year-end
 2000.  There were no net loan chargeoffs during the quarter.  Internally, we
 are implementing various sales and service initiatives, and we are developing
 improved avenues for customer convenience."
     First quarter net interest income grew by $283 thousand (10%) due to the
 strong loan growth, along with securities purchases.  Non-interest income
 declined by $66 thousand (16%) due to higher securities gains recorded in the
 previous year.  Non-interest expense increased by $117 thousand (6%),
 including higher salaries and higher legal and audit expense.
     Total assets were $350.5 million at quarter-end, and total shareholders'
 equity was $19.5 million, measuring 5.6% of total assets, compared to 5.2% at
 year-end 2000.  Book value per share was $8.37 at March 31, 2001, increasing
 by 8% from $7.77 at year-end 2000.  Shareholders' equity included a
 $744 thousand net benefit due to a decrease in net unrealized securities
 losses during the quarter.  Return on shareholders' equity measured 18.4%
 during the first quarter, and the Company's capital remained in excess of all
 regulatory requirements.
     As of January 1, 2001, Alliance implemented Financial Accounting Standard
 133.  This implementation included the re-designation of securities with a net
 value of $11.6 million from held to maturity to available for sale.  At the
 same time, the Company transferred securities with a net value of $7.1 million
 from available for sale to held to maturity.
     Alliance Bancorp of New England, Inc. (Amex:   ANE) is the bank holding
 company for Tolland Bank, a Connecticut-chartered bank with nine offices
 serving the market in central and eastern Connecticut.
 (http://www.alliancebancorp.com and http://www.tollandbank.com)
 
                     Alliance Bancorp of New England, Inc.
                Consolidated Selected Financial Data (Unaudited)
 
                                                           As of and for the
                                                          three months ended
                                                             March 31,
                                                        2001            2000
     For the Quarter (in thousands)
     Net interest income                               $3,091         $2,808
     Provision for loan losses                             72             87
     Service charges and other income                     312            310
     Net gain on securities and other assets               36            104
     Non-interest expense                               2,201          2,084
     Net income                                          $827           $771
 
     Per Share
     Earnings - basic                                   $0.35          $0.33
     Earnings - diluted                                  0.35           0.33
     Dividends declared                                 0.075           0.06
     Book value                                          8.37           6.77
     Common stock price:
     High                                                9.38           9.25
     Low                                                 8.37           6.88
     Close                                               9.25           8.38
 
     At Quarter End (in millions)
     Total assets                                      $350.5         $320.0
     Total loans                                        240.9          198.0
     Other earning assets                                89.2          101.4
     Deposits                                           283.4          259.6
     Borrowings                                          45.5           43.0
     Shareholders' equity (a)                            19.5           15.6
 
     Operating Ratios (in percent)
     Return on average equity                          18.36%         20.63%
     Return on average assets                            0.97           0.98
     Net interest spread (b)                             3.49           3.56
     Net interest margin (b)                             3.95           3.97
     Dividend payout ratio                              21.15          17.96
     Equity % total assets (period end)                  5.57           4.88
 
     (a) Shareholders' equity includes accumulated other comprehensive income
         (loss), which consists of unrealized gains (losses) on investment
         securities, net of taxes.
     (b) Ratio expressed as fully taxable equivalent.
 
                     Alliance Bancorp of New England, Inc.
                   Consolidated Income Statements (Unaudited)
 
                                                        Three Months Ended
                                                               March 31
     (in thousands except share data)                    2001           2000
     Interest Income
      Loans                                            $4,835         $3,928
      Debt securities                                   1,276          1,288
      Dividends on equity securities                      270            279
      Other earning assets                                 99            197
         Total interest and dividend income             6,480          5,692
     Interest Expense
      Deposits                                          2,694          2,309
      Borrowings                                          695            575
         Total interest expense                         3,389          2,884
 
     Net Interest Income                                3,091          2,808
 
     Provision For Loan Losses                             72             87
      Net interest income after
       provision for loan losses                        3,019          2,721
 
     Non-Interest Income
      Service charges and other income                    312            310
      Net gain on securities                               36            104
         Total non-interest income                        348            414
 
     Non-Interest Expense
      Compensation and benefits                         1,159          1,117
      Occupancy                                           181            192
      Data processing services and equipment              276            281
      Office and insurance                                136            163
      Purchased services                                  271            163
      Other                                               178            168
         Total non-interest expense                     2,201          2,084
      Income before income taxes                        1,166          1,051
      Income tax expense                                  339            280
         Net Income                                      $827           $771
 
     Per Share Data
      Basic earnings per share                          $0.35          $0.33
      Diluted earnings per share                        $0.35          $0.33
 
      Average basic shares outstanding              2,331,100      2,309,283
      Average additional dilutive shares               45,263         53,662
      Average diluted shares outstanding            2,376,363      2,362,945
 
                     Alliance Bancorp of New England, Inc.
                    Consolidated Balance Sheets (Unaudited)
 
     (in thousands except share data)               March 31,       Dec. 31,
     Assets                                              2001           2000
      Cash and due from banks                          $9,260        $10,684
      Short-term investments                            8,398         19,503
         Total cash and cash equivalents               17,658         30,187
 
      Securities available for sale
       (at fair value)                                 64,262         53,392
      Securities held to maturity                      16,562         23,013
      Residential mortgage loans                       61,544         58,280
      Commercial mortgage loans                        75,913         73,865
      Other commercial loans                           41,988         38,706
      Consumer loans                                   36,524         35,679
      Government guaranteed loans                      24,971         21,794
         Total loans                                  240,940        228,324
      Less: Allowance for loan losses                 (3,500)        (3,400)
         Net loans                                    237,440        224,924
 
      Premises and equipment, net                       5,852          5,834
      Foreclosed assets, net                               --             --
      Accrued interest income receivable                3,089          3,189
      Cash surrender value of life insurance            2,784          2,745
      Other assets                                      2,842          4,894
         Total assets                                $350,489       $348,178
 
     Liabilities and Shareholders' Equity
      Demand deposits                                 $29,332        $30,293
      NOW deposits                                     31,267         32,033
      Money market deposits                            41,175         38,716
      Savings deposits                                 46,111         46,849
      Time deposits                                   135,556        132,625
         Total deposits                               283,441        280,516
 
      Borrowings                                       45,500         46,700
      Other liabilities                                 2,037          2,847
         Total liabilities                            330,978        330,063
 
      Preferred stock, ($.01 par value;
       100,000 shares authorized, none issued)             --             --
      Common stock, ($.01 par value;
       authorized 4,000,000 shares; issued
       2,531,699 in 2001 and 2,531,699 in 2000;
       outstanding 2,331,100 in 2001 and
       2,331,100 in 2000)                                  25             25
      Additional paid-in capital                       11,516         11,516
      Retained earnings                                14,850         14,198
      Accumulated other comprehensive loss, net       (3,771)        (4,515)
      Treasury stock (200,599 shares)                 (3,109)        (3,109)
       Total shareholders' equity                      19,511         18,115
       Total liabilities and
        shareholders' equity                         $350,489       $348,178
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X92841169
 
 SOURCE  Alliance Bancorp of New England, Inc.