American Bank of Connecticut Announces Earnings

Apr 12, 2001, 01:00 ET from American Bank of Connecticut

    WATERBURY, Conn., April 12 /PRNewswire/ --
 American Bank of Connecticut  (Amex:   BKC) today announced net income of
 $2.8 million, or $.58 per diluted share, for the first quarter ended March 31,
 2001 versus $2.7 million, or $.57 per diluted share for the same quarter of
 2000.
     "I am pleased to report continued earnings growth in the first quarter of
 2001," said William E. Solberg, American Bank's President and Chief Executive
 Officer.  "The reduction of interest rates throughout the first quarter should
 provide for improved margins during the remainder of the year.  Asset quality
 and other fundamentals remain strong and allowed us to increase the quarterly
 dividend."
     Asset quality remained strong at quarter end with non-accrual assets
 amounting to 0.12% of total assets at March 31, 2001 versus 0.18% at year-end
 2000.  The Bank's allowance for loan losses was 663% of non-accrual assets at
 quarter-end.  The Bank's net interest margin improved slightly to 2.98% after
 averaging 2.92% for all of the year ended December 31, 2000.  The Bank has
 benefited from stock market instability, which created an increase in core and
 non-core deposits.
 
     FINANCIAL HIGHLIGHTS
     Return on average assets was 1.24% in the first quarter of 2001.  The
 return on average shareholders' equity was 15.72% for the same quarter, while
 cash return on average shareholders' equity was 17.43%.
     The Bank earned record net interest income of $6.0 million in the first
 quarter of 2001.
     Book value per share increased to $16.00 at March 31, 2001 compared to
 $15.12 at year-end 2000.  Tangible book value per share was $13.09 versus
 $12.11 in the same respective periods.
     Shareholders' equity, which reached a record $76 million at March 31,
 2001, represented 8.19% of total assets.
     Non-interest income, excluding security gains and options premium, was
 $517 thousand for the first quarter of 2001 versus $494 thousand for the same
 quarter in 2000, a 4.7% increase.  This category was negatively impacted by a
 $172 thousand charge against the Bank's share of a limited partnership.
     Non-interest expense, excluding real estate related losses and expenses,
 was 1.70% of average total assets.
 
                          American Bank of Connecticut
                          Consolidated Balance Sheets
                                   unaudited
                             (dollars in thousands)
 
                                                        March 31       Dec. 31
     Assets:                                              2001           2000
     Cash and amounts due from
      depository institutions                           $13,008        $14,838
     Federal funds sold                                  48,900         15,100
     Investment and mortgage backed
      securities available for sale                     401,586        411,387
     Loans receivable:
      Residential real estate                           243,653        246,291
      Commercial real estate                             82,648         80,743
      Real estate construction                           32,343         29,656
      Commercial                                         61,347         64,592
      Consumer                                            3,010          2,678
      Other loans                                           108             89
      Allowance for loan losses                         (7,422)        (7,360)
         Loans net*                                     415,687        416,689
     Premises and equipment                               5,672          5,757
     Real estate owned                                       36             --
     Accrued income receivable                            5,631          6,213
     Intangible assets                                   13,879         14,345
     Cash surrender value of bank owned
      life insurance                                     17,225         16,988
     Prepaid expenses and other assets                   10,587          5,770
         Total Assets                                  $932,211       $907,087
     Liabilities:
     Deposits:
      Demand deposits                                   $41,444        $44,759
      Checking deposits                                  76,480         80,927
      Savings deposits                                  305,339        292,167
      Time deposits                                     305,490        299,503
         Total Deposits                                 728,753        717,356
     Accrued interest payable                             1,409          1,379
     Short-term and long-term borrowings                122,000        114,000
     Accrued expenses and other liabilities               3,723         2,333
     Total Liabilities                                 $855,885       $835,068
     Stockholders' Equity
     Common stock (one dollar par value per share)
      12,000,000 shares authorized:
      4,770,800 issued                                   $4,771         $4,762
     Capital in excess of par value                       6,657          6,584
     Retained earnings                                   62,799         61,236
     Accumulated other comprehensive income               3,034            372
     Unearned ESOP shares                                 (935)          (935)
         Total Stockholders' Equity                     $76,326        $72,019
         Total Liabilities and
          Stockholders' Equity                         $932,211       $907,087
 
                          American Bank of Connecticut
                      Consolidated Statements of Earnings
                                   unaudited
                 (dollars in thousands, except for share data)
 
                                                          Three Months Ended
                                                                March 31
                                                           2001          2000
     Interest income:
      Interest and fees                                  $8,565         $7,933
      Interest and dividends on investment and
       mortgage-backed securities                         6,598          5,063
      Other interest income                                 503            272
         Total interest income                           15,666         13,268
     Interest expense:
      Deposits:
       NOW accounts                                         271            229
       Savings deposits                                   3,347          2,017
       Time deposits                                      4,378          3,205
                                                          7,996          5,451
     Interest on borrowed funds                           1,667          2,513
         Total interest expense                           9,663          7,964
     Net interest income                                  6,003          5,304
     Provision for loan losses                              100             --
     Net interest income after provision
      for loan losses                                     5,903          5,304
     Non-interest income:
      Net gain on sales of securities                       723            683
      Stock option premiums                                 542              5
      Increase in cash surrender value of
       bank owned life insurance                            238            219
      Other                                                 279            275
         Total non-interest income                        1,782          1,182
     Non-interest expenses:
      Salaries and employee benefits                      1,894          1,725
      Amortization of intangible assets                     467             66
      Loss and expense on real estate owned                   5          (120)
      Other administrative and general                    1,471          1,161
         Total non-interest expense                       3,837          2,832
     Earnings before income taxes                         3,848          3,654
      Income taxes                                        1,050            925
     Net earnings                                        $2,798         $2,729
     Basic earnings per share                             $0.60          $0.58
     Diluted earnings per share                           $0.58          $0.57
     Average shares outstanding                       4,697,478      4,666,731
     Average equivalent shares outstanding            4,829,340      4,809,399
     Dividends per share                                  $0.26          $0.25
 
     Loans
     The following table summarizes the composition of the Bank's loan
     portfolio as of March 31, 2001 and 2000 (in thousands):
 
                                                           As of March 31,
                                                       2001           2000
     Real estate loans:
      Residential Loans
       1-4 family                                    $238,776       $243,728
       Multi-family                                     4,877          5,536
       Commercial real estate                          82,648         87,192
       Construction                                    32,343         21,797
     Total real estate loans                         $358,644       $358,253
 
     Non-real estate loans:
      Commercial                                      $61,347        $46,568
      Consumer                                          3,118          1,438
     Total non-real estate loans                      $64,465        $48,006
 
     Total loans receivable gross                    $423,109       $406,259
     Allowance for loan losses                        (7,422)        (6,730)
     Loans receivable, net                           $415,687       $399,529
 
     Deposits
     Balances at March 31, 2001 and 2000, are summarized as follows
     (in thousands):
                                     2001                       2000
                             Amount      % of Total     Amount      % of Total
     Balance by type
      of account:
      Personal DDA           $6,232         0.86%       $1,800         0.32%
      Business DDA           35,212         4.83%       26,763         4.81%
      NOW accounts           76,480        10.49%       60,944        10.95%
      Savings accounts      305,339        41.90%      207,350        37.26%
      Time deposits         305,490        41.92%      259,623        46.65%
                           $728,753       100.00%     $556,480       100.00%
 
                             AVERAGE BALANCE REPORT
                                 MARCH 31, 2000
 
     Average Balance Report
     2000                                                  FTE -       FTE -
                                           BALANCE       INTEREST   YIELD/RATE
     ASSETS:
      LOANS:
       MORTGAGE LOANS:
        BALANCE (PER REPORT)            $357,498,508    $6,907,774      7.73%
        PLUS: NET LOANS AT ATTORNEY          546,642            --         --
       TOTAL MORTGAGE LOANS              358,045,150     6,907,774      7.72%
       COMMERCIAL LOANS                   45,629,717       999,229      8.81%
       OTHER LOANS                         1,479,023        26,121      7.06%
     TOTAL LOANS                         405,153,890     7,933,124      7.83%
      LESS - ALLOWANCE FOR LOAN LOSSES     6,760,683            --         --
     TOTAL LOANS, NET                    398,393,207     7,933,124      7.97%
 
     INVESTMENTS:
      U.S. GOVERNMENTS AND AGENCIES      116,082,669     1,730,355      6.00%
      MORTGAGE-BACKED SECURITIES         128,568,831     2,174,957      6.80%
      STATE AND POLITICAL SUB-DIV.         9,899,897       180,894      7.35%
      CORPORATE OBLIGATIONS                9,926,728       173,092      7.01%
      EQUITIES                            64,783,104     1,176,522      7.30%
      OTHER INVESTMENTS:
       FHLB STOCK                          8,957,508       138,749      6.23%
       ST. OF ISRAEL                          25,000           488      7.85%
        TOTAL OTHER INVESTMENTS            8,982,508       139,237      6.23%
        TOTAL INVESTMENTS                338,243,737     5,575,057      6.63%
 
     TRADING ACCOUNT ASSETS                  371,093            --      0.00%
     FEDERAL FUNDS SOLD                    9,253,151       133,482      5.80%
                                         347,867,981     5,708,539      6.60%
 
        TOTAL INTEREST EARNING
        ASSETS                           746,261,188   $13,641,663      7.35%
 
      OTHER ASSETS                        42,671,740            --         --
 
        TOTAL ASSETS                    $788,932,928            --         --
 
     LIABILITIES AND
      STOCKHOLDERS' EQUITY:
      DEPOSITS:
      SAVINGS                            $86,765,525      $557,516      2.58%
      MFP SAVINGS                        114,813,085     1,459,801      5.11%
      N.O.W. CHECKING                     56,490,762       228,752      1.63%
      TIME DEPOSITS                      255,641,602     3,205,396      5.04%
      DEMAND DEPOSITS                     28,113,307            --      0.00%
                                         541,824,280     5,451,465      4.05%
 
     BORROWED FUNDS:
      FEDERAL HOME LOAN BANK             178,088,801     2,513,005      5.68%
      OTHER                                       --            --         --
       TOTAL BORROWED FUNDS              178,088,801     2,513,005      5.68%
 
       TOTAL INTEREST BEARING
        LIABILITIES                      719,913,081    $7,964,470      4.45%
 
     OTHER LIABILITIES                     3,078,143            --        --
     STOCKHOLDERS' EQUITY                 65,941,704            --        --
 
       TOTAL LIABILITIES AND
        STOCKHOLDERS' EQUITY            $788,932,928            --        --
 
     NET INTEREST INCOME                          --     5,677,193        --
     NET INTEREST SPREAD                          --            --     2.90%
     NET INTEREST MARGIN                          --            --     3.06%
 
     Interest income on tax advantaged securities have been converted on a
     fully tax equivalent basis at a combined Federal and State tax
     rate of 34%.
 
                               AVERAGE BALANCE REPORT
                                   MARCH 31, 2001
 
     Average Balance Report
     2001                                                   FTE -      FTE -
                                           BALANCE       INTEREST   YIELD/RATE
     ASSETS:
     LOANS:
      MORTGAGE LOANS                    $357,290,495     $7,043,570     7.89%
      COMMERCIAL LOANS                    63,384,233      1,451,917     9.29%
      OTHER LOANS                          3,042,113         69,700     9.16%
     TOTAL LOANS                         423,716,841      8,565,187     8.09%
      LESS - ALLOWANCE FOR LOAN LOSSES     7,441,521
       TOTAL LOANS, NET                  416,275,320      8,565,187     8.23%
 
     INVESTMENTS:
      U.S. GOVERNMENTS AND AGENCIES       95,269,271      1,402,698     5.97%
      MORTGAGE BACKED SECURITIES         190,347,454      3,428,818     7.31%
      ASSET BACKED SECURITIES             21,927,846        327,836
      STATE AND POLITICAL SUB-DIV.         4,548,248         91,665     8.17%
       TAXABLE MUNICIPALS                    620,000          9,823
      CORPORATE OBLIGATIONS               20,519,041        385,306     7.62%
      EQUITIES                            70,828,885      1,222,070     7.00%
      OTHER INVESTMENTS:
       FHLB STOCK                          9,700,000       173,404      7.25%
       ST. OF ISRAEL                          25,000           488      7.92%
        TOTAL OTHER INVESTMENTS            9,725,000       173,892      7.25%
        TOTAL INVESTMENTS                413,785,745     7,042,108      6.90%
 
     TRADING ACCOUNT ASSETS                       --            --         --
     FEDERAL FUNDS SOLD                   23,868,310       329,041      5.59%
                                         437,654,055     7,371,149      6.83%
        TOTAL INTEREST EARNING
        ASSETS                           853,929,375   $15,936,336      7.57%
 
     OTHER ASSETS                         59,482,547            --         --
 
        TOTAL ASSETS                    $913,411,922            --         --
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      DEPOSITS:
       SAVINGS                           $91,918,250      $583,291      2.57%
       MFP SAVINGS                       206,653,235     2,763,414      5.42%
       N.O.W. CHECKING                    74,871,395       271,097      1.47%
       TIME DEPOSITS                     303,044,334     4,377,908      5.86%
       DEMAND DEPOSITS                    40,488,110            --      0.00%
                                         716,975,324     7,995,710      4.52%
 
     BORROWED FUNDS:
      FEDERAL HOME LOAN BANK             119,591,398     1,666,904      5.65%
      OTHER                                       --            --         --
        TOTAL BORROWED FUNDS             119,591,398     1,666,904      5.65%
 
        TOTAL INTEREST BEARING
         LIABILITIES                     836,566,722    $9,662,614      4.68%
 
     OTHER LIABILITIES                     4,665,305            --         --
     STOCKHOLDERS' EQUITY                 72,179,895            --         --
 
        TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY           $913,411,922            --         --
 
     NET INTEREST INCOME                          --     6,273,722         --
     NET INTEREST SPREAD                          --            --      2.89%
     NET INTEREST MARGIN                          --            --      2.98%
 
     Interest income on tax advantaged securities have been converted on a
     fully tax equivalent basis at a combined Federal and State tax
     rate of 34%.
 
 

SOURCE American Bank of Connecticut
    WATERBURY, Conn., April 12 /PRNewswire/ --
 American Bank of Connecticut  (Amex:   BKC) today announced net income of
 $2.8 million, or $.58 per diluted share, for the first quarter ended March 31,
 2001 versus $2.7 million, or $.57 per diluted share for the same quarter of
 2000.
     "I am pleased to report continued earnings growth in the first quarter of
 2001," said William E. Solberg, American Bank's President and Chief Executive
 Officer.  "The reduction of interest rates throughout the first quarter should
 provide for improved margins during the remainder of the year.  Asset quality
 and other fundamentals remain strong and allowed us to increase the quarterly
 dividend."
     Asset quality remained strong at quarter end with non-accrual assets
 amounting to 0.12% of total assets at March 31, 2001 versus 0.18% at year-end
 2000.  The Bank's allowance for loan losses was 663% of non-accrual assets at
 quarter-end.  The Bank's net interest margin improved slightly to 2.98% after
 averaging 2.92% for all of the year ended December 31, 2000.  The Bank has
 benefited from stock market instability, which created an increase in core and
 non-core deposits.
 
     FINANCIAL HIGHLIGHTS
     Return on average assets was 1.24% in the first quarter of 2001.  The
 return on average shareholders' equity was 15.72% for the same quarter, while
 cash return on average shareholders' equity was 17.43%.
     The Bank earned record net interest income of $6.0 million in the first
 quarter of 2001.
     Book value per share increased to $16.00 at March 31, 2001 compared to
 $15.12 at year-end 2000.  Tangible book value per share was $13.09 versus
 $12.11 in the same respective periods.
     Shareholders' equity, which reached a record $76 million at March 31,
 2001, represented 8.19% of total assets.
     Non-interest income, excluding security gains and options premium, was
 $517 thousand for the first quarter of 2001 versus $494 thousand for the same
 quarter in 2000, a 4.7% increase.  This category was negatively impacted by a
 $172 thousand charge against the Bank's share of a limited partnership.
     Non-interest expense, excluding real estate related losses and expenses,
 was 1.70% of average total assets.
 
                          American Bank of Connecticut
                          Consolidated Balance Sheets
                                   unaudited
                             (dollars in thousands)
 
                                                        March 31       Dec. 31
     Assets:                                              2001           2000
     Cash and amounts due from
      depository institutions                           $13,008        $14,838
     Federal funds sold                                  48,900         15,100
     Investment and mortgage backed
      securities available for sale                     401,586        411,387
     Loans receivable:
      Residential real estate                           243,653        246,291
      Commercial real estate                             82,648         80,743
      Real estate construction                           32,343         29,656
      Commercial                                         61,347         64,592
      Consumer                                            3,010          2,678
      Other loans                                           108             89
      Allowance for loan losses                         (7,422)        (7,360)
         Loans net*                                     415,687        416,689
     Premises and equipment                               5,672          5,757
     Real estate owned                                       36             --
     Accrued income receivable                            5,631          6,213
     Intangible assets                                   13,879         14,345
     Cash surrender value of bank owned
      life insurance                                     17,225         16,988
     Prepaid expenses and other assets                   10,587          5,770
         Total Assets                                  $932,211       $907,087
     Liabilities:
     Deposits:
      Demand deposits                                   $41,444        $44,759
      Checking deposits                                  76,480         80,927
      Savings deposits                                  305,339        292,167
      Time deposits                                     305,490        299,503
         Total Deposits                                 728,753        717,356
     Accrued interest payable                             1,409          1,379
     Short-term and long-term borrowings                122,000        114,000
     Accrued expenses and other liabilities               3,723         2,333
     Total Liabilities                                 $855,885       $835,068
     Stockholders' Equity
     Common stock (one dollar par value per share)
      12,000,000 shares authorized:
      4,770,800 issued                                   $4,771         $4,762
     Capital in excess of par value                       6,657          6,584
     Retained earnings                                   62,799         61,236
     Accumulated other comprehensive income               3,034            372
     Unearned ESOP shares                                 (935)          (935)
         Total Stockholders' Equity                     $76,326        $72,019
         Total Liabilities and
          Stockholders' Equity                         $932,211       $907,087
 
                          American Bank of Connecticut
                      Consolidated Statements of Earnings
                                   unaudited
                 (dollars in thousands, except for share data)
 
                                                          Three Months Ended
                                                                March 31
                                                           2001          2000
     Interest income:
      Interest and fees                                  $8,565         $7,933
      Interest and dividends on investment and
       mortgage-backed securities                         6,598          5,063
      Other interest income                                 503            272
         Total interest income                           15,666         13,268
     Interest expense:
      Deposits:
       NOW accounts                                         271            229
       Savings deposits                                   3,347          2,017
       Time deposits                                      4,378          3,205
                                                          7,996          5,451
     Interest on borrowed funds                           1,667          2,513
         Total interest expense                           9,663          7,964
     Net interest income                                  6,003          5,304
     Provision for loan losses                              100             --
     Net interest income after provision
      for loan losses                                     5,903          5,304
     Non-interest income:
      Net gain on sales of securities                       723            683
      Stock option premiums                                 542              5
      Increase in cash surrender value of
       bank owned life insurance                            238            219
      Other                                                 279            275
         Total non-interest income                        1,782          1,182
     Non-interest expenses:
      Salaries and employee benefits                      1,894          1,725
      Amortization of intangible assets                     467             66
      Loss and expense on real estate owned                   5          (120)
      Other administrative and general                    1,471          1,161
         Total non-interest expense                       3,837          2,832
     Earnings before income taxes                         3,848          3,654
      Income taxes                                        1,050            925
     Net earnings                                        $2,798         $2,729
     Basic earnings per share                             $0.60          $0.58
     Diluted earnings per share                           $0.58          $0.57
     Average shares outstanding                       4,697,478      4,666,731
     Average equivalent shares outstanding            4,829,340      4,809,399
     Dividends per share                                  $0.26          $0.25
 
     Loans
     The following table summarizes the composition of the Bank's loan
     portfolio as of March 31, 2001 and 2000 (in thousands):
 
                                                           As of March 31,
                                                       2001           2000
     Real estate loans:
      Residential Loans
       1-4 family                                    $238,776       $243,728
       Multi-family                                     4,877          5,536
       Commercial real estate                          82,648         87,192
       Construction                                    32,343         21,797
     Total real estate loans                         $358,644       $358,253
 
     Non-real estate loans:
      Commercial                                      $61,347        $46,568
      Consumer                                          3,118          1,438
     Total non-real estate loans                      $64,465        $48,006
 
     Total loans receivable gross                    $423,109       $406,259
     Allowance for loan losses                        (7,422)        (6,730)
     Loans receivable, net                           $415,687       $399,529
 
     Deposits
     Balances at March 31, 2001 and 2000, are summarized as follows
     (in thousands):
                                     2001                       2000
                             Amount      % of Total     Amount      % of Total
     Balance by type
      of account:
      Personal DDA           $6,232         0.86%       $1,800         0.32%
      Business DDA           35,212         4.83%       26,763         4.81%
      NOW accounts           76,480        10.49%       60,944        10.95%
      Savings accounts      305,339        41.90%      207,350        37.26%
      Time deposits         305,490        41.92%      259,623        46.65%
                           $728,753       100.00%     $556,480       100.00%
 
                             AVERAGE BALANCE REPORT
                                 MARCH 31, 2000
 
     Average Balance Report
     2000                                                  FTE -       FTE -
                                           BALANCE       INTEREST   YIELD/RATE
     ASSETS:
      LOANS:
       MORTGAGE LOANS:
        BALANCE (PER REPORT)            $357,498,508    $6,907,774      7.73%
        PLUS: NET LOANS AT ATTORNEY          546,642            --         --
       TOTAL MORTGAGE LOANS              358,045,150     6,907,774      7.72%
       COMMERCIAL LOANS                   45,629,717       999,229      8.81%
       OTHER LOANS                         1,479,023        26,121      7.06%
     TOTAL LOANS                         405,153,890     7,933,124      7.83%
      LESS - ALLOWANCE FOR LOAN LOSSES     6,760,683            --         --
     TOTAL LOANS, NET                    398,393,207     7,933,124      7.97%
 
     INVESTMENTS:
      U.S. GOVERNMENTS AND AGENCIES      116,082,669     1,730,355      6.00%
      MORTGAGE-BACKED SECURITIES         128,568,831     2,174,957      6.80%
      STATE AND POLITICAL SUB-DIV.         9,899,897       180,894      7.35%
      CORPORATE OBLIGATIONS                9,926,728       173,092      7.01%
      EQUITIES                            64,783,104     1,176,522      7.30%
      OTHER INVESTMENTS:
       FHLB STOCK                          8,957,508       138,749      6.23%
       ST. OF ISRAEL                          25,000           488      7.85%
        TOTAL OTHER INVESTMENTS            8,982,508       139,237      6.23%
        TOTAL INVESTMENTS                338,243,737     5,575,057      6.63%
 
     TRADING ACCOUNT ASSETS                  371,093            --      0.00%
     FEDERAL FUNDS SOLD                    9,253,151       133,482      5.80%
                                         347,867,981     5,708,539      6.60%
 
        TOTAL INTEREST EARNING
        ASSETS                           746,261,188   $13,641,663      7.35%
 
      OTHER ASSETS                        42,671,740            --         --
 
        TOTAL ASSETS                    $788,932,928            --         --
 
     LIABILITIES AND
      STOCKHOLDERS' EQUITY:
      DEPOSITS:
      SAVINGS                            $86,765,525      $557,516      2.58%
      MFP SAVINGS                        114,813,085     1,459,801      5.11%
      N.O.W. CHECKING                     56,490,762       228,752      1.63%
      TIME DEPOSITS                      255,641,602     3,205,396      5.04%
      DEMAND DEPOSITS                     28,113,307            --      0.00%
                                         541,824,280     5,451,465      4.05%
 
     BORROWED FUNDS:
      FEDERAL HOME LOAN BANK             178,088,801     2,513,005      5.68%
      OTHER                                       --            --         --
       TOTAL BORROWED FUNDS              178,088,801     2,513,005      5.68%
 
       TOTAL INTEREST BEARING
        LIABILITIES                      719,913,081    $7,964,470      4.45%
 
     OTHER LIABILITIES                     3,078,143            --        --
     STOCKHOLDERS' EQUITY                 65,941,704            --        --
 
       TOTAL LIABILITIES AND
        STOCKHOLDERS' EQUITY            $788,932,928            --        --
 
     NET INTEREST INCOME                          --     5,677,193        --
     NET INTEREST SPREAD                          --            --     2.90%
     NET INTEREST MARGIN                          --            --     3.06%
 
     Interest income on tax advantaged securities have been converted on a
     fully tax equivalent basis at a combined Federal and State tax
     rate of 34%.
 
                               AVERAGE BALANCE REPORT
                                   MARCH 31, 2001
 
     Average Balance Report
     2001                                                   FTE -      FTE -
                                           BALANCE       INTEREST   YIELD/RATE
     ASSETS:
     LOANS:
      MORTGAGE LOANS                    $357,290,495     $7,043,570     7.89%
      COMMERCIAL LOANS                    63,384,233      1,451,917     9.29%
      OTHER LOANS                          3,042,113         69,700     9.16%
     TOTAL LOANS                         423,716,841      8,565,187     8.09%
      LESS - ALLOWANCE FOR LOAN LOSSES     7,441,521
       TOTAL LOANS, NET                  416,275,320      8,565,187     8.23%
 
     INVESTMENTS:
      U.S. GOVERNMENTS AND AGENCIES       95,269,271      1,402,698     5.97%
      MORTGAGE BACKED SECURITIES         190,347,454      3,428,818     7.31%
      ASSET BACKED SECURITIES             21,927,846        327,836
      STATE AND POLITICAL SUB-DIV.         4,548,248         91,665     8.17%
       TAXABLE MUNICIPALS                    620,000          9,823
      CORPORATE OBLIGATIONS               20,519,041        385,306     7.62%
      EQUITIES                            70,828,885      1,222,070     7.00%
      OTHER INVESTMENTS:
       FHLB STOCK                          9,700,000       173,404      7.25%
       ST. OF ISRAEL                          25,000           488      7.92%
        TOTAL OTHER INVESTMENTS            9,725,000       173,892      7.25%
        TOTAL INVESTMENTS                413,785,745     7,042,108      6.90%
 
     TRADING ACCOUNT ASSETS                       --            --         --
     FEDERAL FUNDS SOLD                   23,868,310       329,041      5.59%
                                         437,654,055     7,371,149      6.83%
        TOTAL INTEREST EARNING
        ASSETS                           853,929,375   $15,936,336      7.57%
 
     OTHER ASSETS                         59,482,547            --         --
 
        TOTAL ASSETS                    $913,411,922            --         --
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      DEPOSITS:
       SAVINGS                           $91,918,250      $583,291      2.57%
       MFP SAVINGS                       206,653,235     2,763,414      5.42%
       N.O.W. CHECKING                    74,871,395       271,097      1.47%
       TIME DEPOSITS                     303,044,334     4,377,908      5.86%
       DEMAND DEPOSITS                    40,488,110            --      0.00%
                                         716,975,324     7,995,710      4.52%
 
     BORROWED FUNDS:
      FEDERAL HOME LOAN BANK             119,591,398     1,666,904      5.65%
      OTHER                                       --            --         --
        TOTAL BORROWED FUNDS             119,591,398     1,666,904      5.65%
 
        TOTAL INTEREST BEARING
         LIABILITIES                     836,566,722    $9,662,614      4.68%
 
     OTHER LIABILITIES                     4,665,305            --         --
     STOCKHOLDERS' EQUITY                 72,179,895            --         --
 
        TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY           $913,411,922            --         --
 
     NET INTEREST INCOME                          --     6,273,722         --
     NET INTEREST SPREAD                          --            --      2.89%
     NET INTEREST MARGIN                          --            --      2.98%
 
     Interest income on tax advantaged securities have been converted on a
     fully tax equivalent basis at a combined Federal and State tax
     rate of 34%.
 
 SOURCE  American Bank of Connecticut