Bay State Bancorp, Inc. Announces Record Quarter and Year End Results And a 25% Increase in the Quarterly Dividend

Apr 20, 2001, 01:00 ET from Bay State Bancorp, Inc.

    BROOKLINE, Mass., April 20 /PRNewswire Interactive News Release/ --
 BAY STATE BANCORP, INC. (Amex:   BYS) (the "Company") the holding company for
 Bay State Federal Savings Bank (the "Bank"), today announced net income of
 $1.0 million, and $0.61 basic and $0.58 fully diluted earnings per share, for
 the quarter ended March 31, 2001, the fourth quarter of fiscal year 2001,
 compared to $774,000, and $0.42 earnings per share basic and fully diluted,
 for the same period last fiscal year.  This represents an increase of 30.1% in
 net income and a 45.2% and 38.1% increase in basic and fully diluted earnings
 per share, respectively, over the same period last year. The net income for
 the three month period represents a return on average assets of 0.83% and a
 return on average equity of 7.52%, compared to 0.69% and 5.74%, respectively,
 for the same period last year.  Net income for the fiscal year ended March 31,
 2001, totaled $3.6 million, and $2.08 basic and $2.02 fully diluted earnings
 per share, compared to $2.8 million, and $1.34 earnings per share basic and
 fully diluted, for the fiscal year ended March 31, 2000.  This represents an
 increase of 31.1% in net income and a 55.2% and 50.8% increase in basic and
 fully diluted earnings per share, respectively, over the same period last
 year. The net income for the fiscal year represents a return on average assets
 of 0.75% and a return on average equity of 6.74%, compared to 0.65% and 4.82%
 for the last fiscal year, respectively.
     The Company's Chairman, President, and CEO, John F. Murphy commented, "We
 are very proud to be reporting over 30% increases in our quarterly and annual
 net income as well as over 50% increases in basic and fully diluted earnings
 per share for the fiscal year.  The increase in our earnings, generated by the
 asset and deposit growth combined with our capital management strategies, has
 led to continued improvement in the earnings of the Company."
     The Company also announced that the Board of Directors has declared a 25%
 increase in the quarterly dividend to $0.15 per share, from the $0.12 per
 share paid last quarter.  The dividend is payable to shareholders of record as
 of May 4, 2001, and is expected to be paid on May 18, 2001.  Mr. Murphy
 commented, "The 25% increase in the dividend is consistent with the Company's
 targeted payout ratio and our continued commitment to enhance shareholder
 value."
     During the quarter ended March 31, 2001, the Company completed the
 repurchase of 5% of its outstanding common stock, or 92,923 shares, at an
 average price of $27.96 per share.  This sixth repurchase program reduced the
 company's outstanding shares to 1,765,543.  The Board also announced the
 approval and start of a seventh repurchase program of 5% of the outstanding
 shares, or 88,277 shares.
     Total assets at March 31, 2001 were $491.9 million, compared to
 $460.1 million at March 31, 2000, an increase of 6.9%.  Loans receivable
 increased $24.6 million, or 6.3%, primarily in multi-family and commercial
 real estate loans, and to a lesser extent 1-4 family residential mortgages,
 which were originated and purchased. The increase in assets was funded
 primarily from a $25.9 million, or 10.5%, increase in deposits and, a $4.5
 million, or 2.9%, net increase in Federal Home Loan Bank Advances and other
 Borrowed Funds.
     Total stockholder's equity was $53.8 million, or 10.9% of total assets, at
 March 31, 2001, an increase of $1.1 million, or 2.2%, from the $52.6 million,
 or 11.4% of total assets, at March 31, 2000. The change in equity was the
 result of the net income for the period, an increase in the market value of
 investment securities classified as available for sale, and a reduction in
 certain stock benefit plans, offset by the repurchase 190,737 shares of
 treasury stock at a cost of $5.0 million, and the payment of dividends.  The
 Company's book value per share at March 31, 2001 was $32.77, compared to
 $29.06 at March 31, 2000, an increase of 12.8%.
     Non-performing assets at March 31, 2001 were $368,000, compared to $1.3
 million at March 31, 2000, a decrease of 71.4%.  This decrease was the result
 of certain non-accrual loans being brought current or paid off.  The allowance
 for loan losses totaled $4.3 million at March 31, 2001 compared to $3.9
 million at March 31, 2000, an increase of 8.8%.  At March 31, 2001 the
 allowance represents 1,157.1% of non-performing assets and 1.01% of total
 loans.  There was no other real estate owned at March 31, 2001, compared to
 $62,000 at March 31, 2000.
     Net interest income before the provision for loan losses, for the quarter
 ended March 31, 2001, increased $477,000, or 12.4%, to $4.3 million from $3.8
 million, for the same period last year.  For the quarter ended March 31, 2001,
 loan interest income increased $1.1 million, or 14.1%, while interest on
 investments increased $44,000, or 6.2%, over the same period last year,
 respectively. The net interest margin for the quarter ended was 3.76%,
 compared to 3.57% for the same period last year.  For the fiscal year ended
 March 31, 2001, net interest income before the provision for loan losses
 increased $1.4 million, or 9.7%, to $16.0 million from $14.6 million, for the
 same period last year.  Loan interest income for the fiscal year ended March
 31, 2001, increased $6.1 million, or 21.6%, while interest on investments
 increased $153,000, or 5.6%, over the same period last year, respectively. The
 fiscal year end net interest margin was 3.55%, compared to 3.63% for the same
 period last year.  The increase in interest-earning assets was predominantly
 in loans receivable and investments. The increase in net interest income and
 decrease in the net interest margin were attributable to the increased level
 of the average balance of interest-earning assets, funded with an increase in
 deposits and borrowed funds at current interest rate levels.
     The provision for loan losses was $85,000 and $460,000 for the three and
 twelve months ended March 31, 2001, compared to $225,000 and $875,000 for the
 three and twelve month periods last year, respectively.  The decrease in the
 loan loss provision for the three and twelve month periods ended March 31,
 2001 was a direct result of the slower growth in the loan portfolio from the
 previous year and the reduced level of non-performing loans.  The Company
 currently anticipates that it will maintain the allowance through future loan
 loss provisions to support the growth and mix of the loan portfolio, as
 considered necessary by management.
     Total non-interest income, net of gains and losses on investment
 activities, was $343,000 for the quarter ended March 31, 2001, compared to
 $299,000 for the same period last year, an increase of $44,000, or 14.7%. For
 the fiscal year end non-interest income, net of gains and losses on investment
 activities, totaled $1.1 million, compared to $819,000 for the same period
 last year, an increase of $302,000, or 36.9%.  These changes were primarily a
 result of tax-advantaged income received on bank owned life insurance
 policies, fees on loans and deposit accounts and income received from
 alternative investment services offered by the bank. During the three month
 and twelve month periods the Company also recognized losses of $104,000 and
 $64,000, respectively, from the sale of investment securities.  These losses
 were the result of the sale of various equity securities.  The Company then
 reinvested the funds in interest-bearing investments.  In addition, the
 Company recognized gains and losses on trading securities, which represents
 the change in the market value of the assets supporting certain employee
 benefit plans.
     Total non-interest expense was $2.6 million for the quarter ended March
 31, 2001, compared to $2.9 million for the same period last year.  Total
 salaries and benefits decreased $188,000, or 10.2%, primarily the net result
 of a general increase in salaries and benefits due to the increased number of
 employees and the opening of an additional branch location, offset by a net
 reduction in the costs associated with the Company's stock based compensation
 and employee benefit plans.  Occupancy and equipment expense totaled $398,000,
 compared to $364,000 for the same period last year, an increase of $34,000, or
 9.3%.  This increase was the result of the increased level of depreciation on
 building and leasehold improvements associated with the addition of the new
 Walpole branch, the relocation of the Dedham branch and additional leased
 space for the administrative and support service areas of the Bank.
 Advertising expense totaled $104,000, compared to $247,000 for the same period
 last year, a decrease of $143,000, or 57.9%, primarily as a result of the
 promotion and introduction of new deposit products and retail services last
 year coupled with the professional fees associated with the development of
 these products and services. Data processing expense increased $24,000, or
 32.4% as a result of the increased level of deposits and the new retail
 deposit products and services being offered. Other expenses decreased $47,000,
 or 12.9%.
     Total non-interest expense was $10.5 million for the fiscal year ended
 March 31, 2001, compared to $10.6 million for the same period last year, a
 decrease of $145,000, or 1.4%.  Total salaries and benefits decreased
 $266,000, or 3.9%, due to the same reasons discussed previously for the
 quarter end results.  Occupancy and equipment expense totaled $1.5, million
 compared to $1.2 million for the same period last year, an increase of
 $310,000, or 25.9%.  This increase was the result of the increased level of
 depreciation on improvements associated with the added space for the retail
 and administrative areas of the Bank.  Advertising expense totaled $479,000,
 compared to $538,000 for the same period last year, a decrease of $59,000, or
 11.0%, primarily as a result of the promotion and introduction of new deposit
 products and retail services during last fiscal year. Data processing costs
 increased $80,000, or 29.2%, due to the increased level of deposits and new
 products and services being offered.  Other expenses decreased $210,000, or
 11.9%, primarily a result of a reduction in professional service and other
 production expenses associated with the development of new products and
 services introduced during last fiscal year.
     For the quarter ended March 31, 2001 income taxes of $842,000 were
 provided on net income before tax of $1.8 million for an effective rate of
 45.5%, compared to $401,000 on income before taxes of $1.2 million for an
 effective rate of 34.1%, for the same period last year. For the fiscal year
 ended March 31, 2001, income taxes of $2.3 million were provided on net income
 before tax of $5.9 million, for an effective rate of 39.2%, compared to $1.5
 million on income before taxes of $4.2 million for an effective rate of 35.0%,
 for the same period last year.  The change in effective tax rates from year to
 year is a result of the Bank setting up a valuation allowance on the deferred
 tax asset for the contribution deduction carryover and capital loss carryover.
     Bay State Bancorp, Inc. through its subsidiary Bay State Federal Bank
 currently operates 6 banking offices and an administrative office in Norfolk
 and Suffolk counties.
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risk and uncertainties, which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.  The
 Company does not undertake - and specifically disclaims any obligation - to
 publicly release the result of any revisions, which may be made to any
 forward-looking statements to reflect events or circumstances after the date
 of such statements or to reflect the occurrence of anticipated or
 unanticipated events.
 
 
                    Bay State Bancorp, Inc. and Subsidiaries
                          Consolidated Balance Sheets
 
                                                     March 31,        March 31,
                                                       2001             2000
                                                       (Dollars in thousands)
         Assets
 
         Cash and due from banks                      $9,985            $5,392
         Short-term investments                          114               600
         Investment securities available
          for sale                                    34,356            31,812
         Investment securities held to
          maturity                                       336               527
         Loans receivable, net                       417,704           393,093
         Accrued interest receivable                   3,268             2,470
         Stock in Federal Home Loan Bank
          of Boston                                    8,455             8,051
         Investment in bank owned life
          insurance                                    8,269             7,888
         Premises and equipment                        3,222             3,078
         Other real estate owned                         -                  62
         Deferred tax asset, net                       2,816             3,811
         Other assets                                  3,332             3,353
             Total assets                           $491,857          $460,137
 
         Liabilities and Stockholders' Equity
 
         Liabilities:
           Deposits                                 $273,263          $247,344
           Federal Home Loan Bank advances           158,139           147,527
           Other borrowed funds                        2,000             8,137
           Other liabilities                           4,695             4,499
             Total liabilities                       438,097           407,507
         Stockholders' equity:
           Common stock, par value $.01 per share,
            issued 2,535,232 shares                       25                25
           Additional paid-in capital                 49,275            49,207
           Retained earnings                          24,382            21,600
           Accumulated other comprehensive
            income(loss)                                 617            (1,788)
           Unallocated ESOP shares                    (2,420)           (2,826)
           Unearned shares 1998 stock-based
            incentive plan                            (1,208)           (1,681)
           Treasury stock, 769,689 and
            578,952 shares                           (16,911)          (11,907)
             Total stockholders' equity               53,760            52,630
               Total liabilities and
                stockholders' equity                $491,857          $460,137
 
         Selected Financial Highlights - at end of the period
         (Dollars in thousands, except per share amounts)
         Total stockholders' equity to
          total assets                                10.93%            11.44%
         Book value per share                         $32.77            $29.06
         Non-performing assets                           368             1,286
         Allowance for loan losses                     4,258             3,915
         Allowance as a % of non-
          performing assets                         1157.07%           304.43%
         Allowance as a % of loans                     1.01%             0.99%
 
 
                    Bay State Bancorp, Inc. and Subsidiaries
                         Consolidated Income Statements
 
                                        Quarter ended       Fiscal year ended
                                          March 31,              March 31,
                                       2001       2000        2001       2000
       Interest income:           (Dollars in thousands) (Dollars in thousands)
         Loans                        $8,879     $7,783     $34,308    $28,214
         Investments                     754        710       2,912      2,759
           Total interest income       9,633      8,493      37,220     30,973
       Interest expense:
         Deposits                      2,806      2,355      11,286      8,884
         Borrowed funds                2,510      2,298       9,899      7,471
           Total interest expense      5,316      4,653      21,185     16,355
           Net interest income         4,317      3,840      16,035     14,618
       Provision for loan losses          85        225         460        875
         Net interest income
          after provision              4,232      3,615      15,575     13,743
       Non-interest income:
         Other fees and charges          176        113         493        325
         Gain on sale of loans            10        -            21          7
         Net gain(loss) on
          trading securities             (54)       149        (224)       287
         Loss on sale of
          investments                   (104)       -           (64)       -
         Other income                    157        186         607        487
            Total non-interest
             income                      185        448         833      1,106
       Non-interest expense:
         Salaries and benefits         1,651      1,839       6,576      6,842
         Occupancy and equipment         398        364       1,509      1,199
         Advertising                     104        247         479        538
         Data processing                  98         74         354        274
         Other expense                   317        364       1,549      1,759
           Total non-interest
            expense                    2,568      2,888      10,467     10,612
           Income before taxes         1,849      1,175       5,941      4,237
           Income taxes                  842        401       2,329      1,482
       Net income                     $1,007       $774      $3,612     $2,755
 
       Selected Financial Highlights
       Basic earnings per share        $0.61      $0.42       $2.08      $1.34
       Diluted earnings per share      $0.58      $0.42       $2.02      $1.34
       Return on average assets        0.83%      0.69%       0.75%      0.65%
       Return on average equity        7.52%      5.74%       6.74%      4.82%
       Interest rate spread            3.28%      3.11%       3.07%      3.13%
       Net interest margin             3.76%      3.57%       3.55%      3.63%
 
       Average basic shares
        outstanding                1,654,002  1,859,501   1,739,843  2,062,653
       Average fully diluted
        shares outstanding         1,735,307  1,859,501   1,788,824  2,062,653
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X81728437
 
 

SOURCE Bay State Bancorp, Inc.
    BROOKLINE, Mass., April 20 /PRNewswire Interactive News Release/ --
 BAY STATE BANCORP, INC. (Amex:   BYS) (the "Company") the holding company for
 Bay State Federal Savings Bank (the "Bank"), today announced net income of
 $1.0 million, and $0.61 basic and $0.58 fully diluted earnings per share, for
 the quarter ended March 31, 2001, the fourth quarter of fiscal year 2001,
 compared to $774,000, and $0.42 earnings per share basic and fully diluted,
 for the same period last fiscal year.  This represents an increase of 30.1% in
 net income and a 45.2% and 38.1% increase in basic and fully diluted earnings
 per share, respectively, over the same period last year. The net income for
 the three month period represents a return on average assets of 0.83% and a
 return on average equity of 7.52%, compared to 0.69% and 5.74%, respectively,
 for the same period last year.  Net income for the fiscal year ended March 31,
 2001, totaled $3.6 million, and $2.08 basic and $2.02 fully diluted earnings
 per share, compared to $2.8 million, and $1.34 earnings per share basic and
 fully diluted, for the fiscal year ended March 31, 2000.  This represents an
 increase of 31.1% in net income and a 55.2% and 50.8% increase in basic and
 fully diluted earnings per share, respectively, over the same period last
 year. The net income for the fiscal year represents a return on average assets
 of 0.75% and a return on average equity of 6.74%, compared to 0.65% and 4.82%
 for the last fiscal year, respectively.
     The Company's Chairman, President, and CEO, John F. Murphy commented, "We
 are very proud to be reporting over 30% increases in our quarterly and annual
 net income as well as over 50% increases in basic and fully diluted earnings
 per share for the fiscal year.  The increase in our earnings, generated by the
 asset and deposit growth combined with our capital management strategies, has
 led to continued improvement in the earnings of the Company."
     The Company also announced that the Board of Directors has declared a 25%
 increase in the quarterly dividend to $0.15 per share, from the $0.12 per
 share paid last quarter.  The dividend is payable to shareholders of record as
 of May 4, 2001, and is expected to be paid on May 18, 2001.  Mr. Murphy
 commented, "The 25% increase in the dividend is consistent with the Company's
 targeted payout ratio and our continued commitment to enhance shareholder
 value."
     During the quarter ended March 31, 2001, the Company completed the
 repurchase of 5% of its outstanding common stock, or 92,923 shares, at an
 average price of $27.96 per share.  This sixth repurchase program reduced the
 company's outstanding shares to 1,765,543.  The Board also announced the
 approval and start of a seventh repurchase program of 5% of the outstanding
 shares, or 88,277 shares.
     Total assets at March 31, 2001 were $491.9 million, compared to
 $460.1 million at March 31, 2000, an increase of 6.9%.  Loans receivable
 increased $24.6 million, or 6.3%, primarily in multi-family and commercial
 real estate loans, and to a lesser extent 1-4 family residential mortgages,
 which were originated and purchased. The increase in assets was funded
 primarily from a $25.9 million, or 10.5%, increase in deposits and, a $4.5
 million, or 2.9%, net increase in Federal Home Loan Bank Advances and other
 Borrowed Funds.
     Total stockholder's equity was $53.8 million, or 10.9% of total assets, at
 March 31, 2001, an increase of $1.1 million, or 2.2%, from the $52.6 million,
 or 11.4% of total assets, at March 31, 2000. The change in equity was the
 result of the net income for the period, an increase in the market value of
 investment securities classified as available for sale, and a reduction in
 certain stock benefit plans, offset by the repurchase 190,737 shares of
 treasury stock at a cost of $5.0 million, and the payment of dividends.  The
 Company's book value per share at March 31, 2001 was $32.77, compared to
 $29.06 at March 31, 2000, an increase of 12.8%.
     Non-performing assets at March 31, 2001 were $368,000, compared to $1.3
 million at March 31, 2000, a decrease of 71.4%.  This decrease was the result
 of certain non-accrual loans being brought current or paid off.  The allowance
 for loan losses totaled $4.3 million at March 31, 2001 compared to $3.9
 million at March 31, 2000, an increase of 8.8%.  At March 31, 2001 the
 allowance represents 1,157.1% of non-performing assets and 1.01% of total
 loans.  There was no other real estate owned at March 31, 2001, compared to
 $62,000 at March 31, 2000.
     Net interest income before the provision for loan losses, for the quarter
 ended March 31, 2001, increased $477,000, or 12.4%, to $4.3 million from $3.8
 million, for the same period last year.  For the quarter ended March 31, 2001,
 loan interest income increased $1.1 million, or 14.1%, while interest on
 investments increased $44,000, or 6.2%, over the same period last year,
 respectively. The net interest margin for the quarter ended was 3.76%,
 compared to 3.57% for the same period last year.  For the fiscal year ended
 March 31, 2001, net interest income before the provision for loan losses
 increased $1.4 million, or 9.7%, to $16.0 million from $14.6 million, for the
 same period last year.  Loan interest income for the fiscal year ended March
 31, 2001, increased $6.1 million, or 21.6%, while interest on investments
 increased $153,000, or 5.6%, over the same period last year, respectively. The
 fiscal year end net interest margin was 3.55%, compared to 3.63% for the same
 period last year.  The increase in interest-earning assets was predominantly
 in loans receivable and investments. The increase in net interest income and
 decrease in the net interest margin were attributable to the increased level
 of the average balance of interest-earning assets, funded with an increase in
 deposits and borrowed funds at current interest rate levels.
     The provision for loan losses was $85,000 and $460,000 for the three and
 twelve months ended March 31, 2001, compared to $225,000 and $875,000 for the
 three and twelve month periods last year, respectively.  The decrease in the
 loan loss provision for the three and twelve month periods ended March 31,
 2001 was a direct result of the slower growth in the loan portfolio from the
 previous year and the reduced level of non-performing loans.  The Company
 currently anticipates that it will maintain the allowance through future loan
 loss provisions to support the growth and mix of the loan portfolio, as
 considered necessary by management.
     Total non-interest income, net of gains and losses on investment
 activities, was $343,000 for the quarter ended March 31, 2001, compared to
 $299,000 for the same period last year, an increase of $44,000, or 14.7%. For
 the fiscal year end non-interest income, net of gains and losses on investment
 activities, totaled $1.1 million, compared to $819,000 for the same period
 last year, an increase of $302,000, or 36.9%.  These changes were primarily a
 result of tax-advantaged income received on bank owned life insurance
 policies, fees on loans and deposit accounts and income received from
 alternative investment services offered by the bank. During the three month
 and twelve month periods the Company also recognized losses of $104,000 and
 $64,000, respectively, from the sale of investment securities.  These losses
 were the result of the sale of various equity securities.  The Company then
 reinvested the funds in interest-bearing investments.  In addition, the
 Company recognized gains and losses on trading securities, which represents
 the change in the market value of the assets supporting certain employee
 benefit plans.
     Total non-interest expense was $2.6 million for the quarter ended March
 31, 2001, compared to $2.9 million for the same period last year.  Total
 salaries and benefits decreased $188,000, or 10.2%, primarily the net result
 of a general increase in salaries and benefits due to the increased number of
 employees and the opening of an additional branch location, offset by a net
 reduction in the costs associated with the Company's stock based compensation
 and employee benefit plans.  Occupancy and equipment expense totaled $398,000,
 compared to $364,000 for the same period last year, an increase of $34,000, or
 9.3%.  This increase was the result of the increased level of depreciation on
 building and leasehold improvements associated with the addition of the new
 Walpole branch, the relocation of the Dedham branch and additional leased
 space for the administrative and support service areas of the Bank.
 Advertising expense totaled $104,000, compared to $247,000 for the same period
 last year, a decrease of $143,000, or 57.9%, primarily as a result of the
 promotion and introduction of new deposit products and retail services last
 year coupled with the professional fees associated with the development of
 these products and services. Data processing expense increased $24,000, or
 32.4% as a result of the increased level of deposits and the new retail
 deposit products and services being offered. Other expenses decreased $47,000,
 or 12.9%.
     Total non-interest expense was $10.5 million for the fiscal year ended
 March 31, 2001, compared to $10.6 million for the same period last year, a
 decrease of $145,000, or 1.4%.  Total salaries and benefits decreased
 $266,000, or 3.9%, due to the same reasons discussed previously for the
 quarter end results.  Occupancy and equipment expense totaled $1.5, million
 compared to $1.2 million for the same period last year, an increase of
 $310,000, or 25.9%.  This increase was the result of the increased level of
 depreciation on improvements associated with the added space for the retail
 and administrative areas of the Bank.  Advertising expense totaled $479,000,
 compared to $538,000 for the same period last year, a decrease of $59,000, or
 11.0%, primarily as a result of the promotion and introduction of new deposit
 products and retail services during last fiscal year. Data processing costs
 increased $80,000, or 29.2%, due to the increased level of deposits and new
 products and services being offered.  Other expenses decreased $210,000, or
 11.9%, primarily a result of a reduction in professional service and other
 production expenses associated with the development of new products and
 services introduced during last fiscal year.
     For the quarter ended March 31, 2001 income taxes of $842,000 were
 provided on net income before tax of $1.8 million for an effective rate of
 45.5%, compared to $401,000 on income before taxes of $1.2 million for an
 effective rate of 34.1%, for the same period last year. For the fiscal year
 ended March 31, 2001, income taxes of $2.3 million were provided on net income
 before tax of $5.9 million, for an effective rate of 39.2%, compared to $1.5
 million on income before taxes of $4.2 million for an effective rate of 35.0%,
 for the same period last year.  The change in effective tax rates from year to
 year is a result of the Bank setting up a valuation allowance on the deferred
 tax asset for the contribution deduction carryover and capital loss carryover.
     Bay State Bancorp, Inc. through its subsidiary Bay State Federal Bank
 currently operates 6 banking offices and an administrative office in Norfolk
 and Suffolk counties.
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risk and uncertainties, which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Company with the Securities and Exchange Commission from time to time.  The
 Company does not undertake - and specifically disclaims any obligation - to
 publicly release the result of any revisions, which may be made to any
 forward-looking statements to reflect events or circumstances after the date
 of such statements or to reflect the occurrence of anticipated or
 unanticipated events.
 
 
                    Bay State Bancorp, Inc. and Subsidiaries
                          Consolidated Balance Sheets
 
                                                     March 31,        March 31,
                                                       2001             2000
                                                       (Dollars in thousands)
         Assets
 
         Cash and due from banks                      $9,985            $5,392
         Short-term investments                          114               600
         Investment securities available
          for sale                                    34,356            31,812
         Investment securities held to
          maturity                                       336               527
         Loans receivable, net                       417,704           393,093
         Accrued interest receivable                   3,268             2,470
         Stock in Federal Home Loan Bank
          of Boston                                    8,455             8,051
         Investment in bank owned life
          insurance                                    8,269             7,888
         Premises and equipment                        3,222             3,078
         Other real estate owned                         -                  62
         Deferred tax asset, net                       2,816             3,811
         Other assets                                  3,332             3,353
             Total assets                           $491,857          $460,137
 
         Liabilities and Stockholders' Equity
 
         Liabilities:
           Deposits                                 $273,263          $247,344
           Federal Home Loan Bank advances           158,139           147,527
           Other borrowed funds                        2,000             8,137
           Other liabilities                           4,695             4,499
             Total liabilities                       438,097           407,507
         Stockholders' equity:
           Common stock, par value $.01 per share,
            issued 2,535,232 shares                       25                25
           Additional paid-in capital                 49,275            49,207
           Retained earnings                          24,382            21,600
           Accumulated other comprehensive
            income(loss)                                 617            (1,788)
           Unallocated ESOP shares                    (2,420)           (2,826)
           Unearned shares 1998 stock-based
            incentive plan                            (1,208)           (1,681)
           Treasury stock, 769,689 and
            578,952 shares                           (16,911)          (11,907)
             Total stockholders' equity               53,760            52,630
               Total liabilities and
                stockholders' equity                $491,857          $460,137
 
         Selected Financial Highlights - at end of the period
         (Dollars in thousands, except per share amounts)
         Total stockholders' equity to
          total assets                                10.93%            11.44%
         Book value per share                         $32.77            $29.06
         Non-performing assets                           368             1,286
         Allowance for loan losses                     4,258             3,915
         Allowance as a % of non-
          performing assets                         1157.07%           304.43%
         Allowance as a % of loans                     1.01%             0.99%
 
 
                    Bay State Bancorp, Inc. and Subsidiaries
                         Consolidated Income Statements
 
                                        Quarter ended       Fiscal year ended
                                          March 31,              March 31,
                                       2001       2000        2001       2000
       Interest income:           (Dollars in thousands) (Dollars in thousands)
         Loans                        $8,879     $7,783     $34,308    $28,214
         Investments                     754        710       2,912      2,759
           Total interest income       9,633      8,493      37,220     30,973
       Interest expense:
         Deposits                      2,806      2,355      11,286      8,884
         Borrowed funds                2,510      2,298       9,899      7,471
           Total interest expense      5,316      4,653      21,185     16,355
           Net interest income         4,317      3,840      16,035     14,618
       Provision for loan losses          85        225         460        875
         Net interest income
          after provision              4,232      3,615      15,575     13,743
       Non-interest income:
         Other fees and charges          176        113         493        325
         Gain on sale of loans            10        -            21          7
         Net gain(loss) on
          trading securities             (54)       149        (224)       287
         Loss on sale of
          investments                   (104)       -           (64)       -
         Other income                    157        186         607        487
            Total non-interest
             income                      185        448         833      1,106
       Non-interest expense:
         Salaries and benefits         1,651      1,839       6,576      6,842
         Occupancy and equipment         398        364       1,509      1,199
         Advertising                     104        247         479        538
         Data processing                  98         74         354        274
         Other expense                   317        364       1,549      1,759
           Total non-interest
            expense                    2,568      2,888      10,467     10,612
           Income before taxes         1,849      1,175       5,941      4,237
           Income taxes                  842        401       2,329      1,482
       Net income                     $1,007       $774      $3,612     $2,755
 
       Selected Financial Highlights
       Basic earnings per share        $0.61      $0.42       $2.08      $1.34
       Diluted earnings per share      $0.58      $0.42       $2.02      $1.34
       Return on average assets        0.83%      0.69%       0.75%      0.65%
       Return on average equity        7.52%      5.74%       6.74%      4.82%
       Interest rate spread            3.28%      3.11%       3.07%      3.13%
       Net interest margin             3.76%      3.57%       3.55%      3.63%
 
       Average basic shares
        outstanding                1,654,002  1,859,501   1,739,843  2,062,653
       Average fully diluted
        shares outstanding         1,735,307  1,859,501   1,788,824  2,062,653
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X81728437
 
 SOURCE  Bay State Bancorp, Inc.