SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report October 25, 1996
AMBANC HOLDING CO., INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-27306 14-1783770
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(State or other jurisdiction (Commission File No.) IRS Employer
of incorporation) Identification No.)
11 Division Street, Amsterdam, New York 12010-4303
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(Adress of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (518) 842-7200
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
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On October 25, 1996, the Registrant issued the press release attached
hereto as Exhibit 99 announcing its earnings for the third quarter ended
September 30, 1996.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
The Exhibits referred to in Item 5 of this Report and listed on the
accompanying Exhibit Index are filed as part of this Report and are incorporated
herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMBANC HOLDING CO., INC.
Date: November 4, 1996 By: /s/ Robert J. Brittain
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Robert J. Brittain
President & Chief Executive Officer
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Exhibit Sequential
Number Description Page No.
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99 Press release dated October 25, 1996 6
FOR IMMEDIATE RELEASE
October 25, 1996 Contact:
Robert J. Brittain, President and CEO
(518) 842-7200
Harold A. Baylor, Vice Pres. & Treas.
(518) 842-1445
Ambanc Holding Co., Inc., the parent of Amsterdam Savings Bank, F.S.B.,
announces earnings for the quarter and the nine-months ended September 30, 1996.
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Amsterdam, N.Y. - Ambanc Holding Co., Inc. (NASDAQ - AHCI) ("Company"), the
holding company of Amsterdam Savings Bank, F.S.B. ("Bank"), today reported
earnings for the quarter ended September 30, 1996, of $572,000, or $0.12 per
share, and earnings for the nine months ended September 30, 1996, of $768,000,
or $0.16 per share, compared to earnings of $665,000 and $493,000 in the
comparable periods in 1995. The Company's efficiency ratios for the three and
nine months ended September 30,1996, improved to 54.2% and 61.5%, respectively.
The comparable ratios for 1995 were 63.4% and 68.5%, respectively.
As the result of a 10% stock repurchase program completed in early August 1996,
shares issued and outstanding on September 30, 1996, were 4,880,025. Average
shares outstanding (excluding unearned shares owned by the ESOP) were 4,657,401
and 4,881,147 for the three and nine months ended September 30, 1996,
respectively. The Company's book value per share as of September 30, 1996, was
$14.42.
Prior to the consummation of the conversion on December 26, 1995, the Company
had no significant assets, liabilities, outstanding shares of stock or
operations. Accordingly, the consolidated data released represents the data of
the Bank and its subsidiaries for the quarter and the nine-months ended
September 30, 1995.
Results of Operations For the Three Months Ended September 30, 1996 and 1995:
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The Company attributed its 1996 third quarter earnings decline primarily to
increases in the provision for loan losses and non-interest expenses of $489,000
and $770,000, respectively, partially offset by an increase in net interest
income of 39.0%, or $1.2 million.
The improvement in net interest income resulted from an increase in average net
earning assets of $47.7 million, or 119.8%, funded primarily by the proceeds
received in the conversion and an increase in borrowed funds. The positive
effect from the growth in average net earning assets was partially offset by a
narrowing of five basis points in the Company's average net interest margin to
3.60% from 3.65% in 1995's third quarter.
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The increase in the provision for loan losses of $489,000 resulted from
management's analysis of the Company's level of non-performing loans and the
allowance for loan losses. Based on this analysis, management decided that it
was prudent to significantly increase its provision expenses in the third
quarter of 1996 as compared to the third quarter of 1995 .
The increase in non-interest expenses was primarily attributable to an increase
in losses and write-downs on real estate owned of $434,000. This increase was
based on actual expenses incurred and management's estimates of lower fair
values, less disposal costs. Also contributing to the increase in non-interest
expenses were the addition of ESOP compensation costs, the new expenses related
to rendering check imaging statements to the Bank's customers, and the
occupancy, equipment, and compensation expenses related to the Company's third
supermarket branch, which was opened in late 1995.
Results of Operations For the Nine Months Ended September 30, 1996 and 1995:
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The improvement in net income of $275,000 for the nine months ended September
30, 1996, to $768,000 was attributable to a 21.5% increase in net interest
income to $11.9 million from $9.8 million in 1995. This positive factor was
partially offset by an increase in the provision for loan losses of $1.3 million
due primarily to a $1.5 million provision taken on March 31, 1996, pertaining to
the Bank's aggregate lending relationship with the Bennett Funding Group, a
company that filed for Chapter 11 bankruptcy protection on March 29, 1996. Also
impacting on the net interest income increase were a $158,000 decline in
non-interest income, mainly due to losses on securities transactions of $89,000,
and a modest increase in non-interest expenses of 1.9%, or $161,000.
The improvement in net interest income resulted from growth in average net
earning assets of $47 million, or 123.3%, funded primarily by the proceeds from
the stock conversion and increased borrowings. The positive effect derived from
the growth in average net earning assets was partially offset by a decrease in
the Company's average net interest margin to 3.79% from 3.98% in the nine months
ended September 30, 1995.
Ambanc Holding Co., Inc. is a newly formed unitary savings and loan holding
company. The Company's primary subsidiary, Amsterdam Savings Bank, F.S.B.,
operates nine banking offices in Montgomery (4), Saratoga (2), Fulton (1),
Schenectady (1), and Albany (1) counties in New York. The Bank's deposits are
insured by the FDIC through the Bank Insurance Fund (BIF).
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AMBANC HOLDING CO., INC.
Selected Consolidated Financial Information
(Unaudited)
Sept. 30, Dec. 31,
1996 1995
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(In Thousands)
Selected Consolidated Financial Condition Data:
Total assets ......................................... $496,505 $439,365
Loans receivable, net ................................ 272,553 249,991
Mortgage-backed securities, available for sale ....... 162,714 53,033
Investment securities, available for sale ............ 42,633 21,389
Due from brokers
0 18,128
Deposits ............................................. 299,991 311,239
Total borrowings ..................................... 122,390 0
Due to brokers ....................................... 0 46,880
Total equity ........................................ 70,362 76,015
For the Three Months For the Nine Months
Ended Ended
Sept.30, Sept.30,
1996 1995 1996 1995
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(In Thousands)
Selected Consolidated Operations
Data:
Total interest income ............. $ 8,854 $ 6,405 $ 23,391 $ 19,103
Total interest expense ............ 4,595 3,341 11,538 9,343
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Net interest income ............... 4,259 3,064 11,853 9,760
Provision for loan losses ......... 549 60 2,610 1,344
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Net interest income after
provision for loan losses ....... 3,710 3,004 9,243 8,416
Fees and service charges .......... 174 165 504 478
Net gain(loss) on sales and
redemptions of AFS investment
and mortgage-backed securities ... 9 1 (89) 1
Other non-interest income ......... 100 123 255 349
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Total non-interest income ......... 283 289 670 828
Total non-interest expense ........ 3,030 2,262 8,549 8,388
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Income before taxes ............... 963 1,031 1,364 856
Income tax provision .............. 391 366 596 363
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Net income ........................ $ 572 $ 665 $ 768 $ 493
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AMBANC HOLDING CO., INC.
Selected Consolidated Financial Ratios and Other Data
(Unaudited)
For the For the
Three-Months Nine-Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
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Performance Ratios:
Return on average assets 0.47% 0.77% 0.23% 0.19%
Return on average equity (1) 3.20 9.76 1.38 2.38
Interest rate
spread during period 2.71 3.11 2.85 3.48
Net interest margin during period 3.60 3.65 3.79 3.98
Efficiency ratio(2) 54.16 63.36 61.53 68.51
Ratio of non-interest expense to
average total assets 2.47 2.63 2.54 3.28
Ratio of avg.interest-earning assets to
average interest-bearing liabilities 125.09 113.61 130.50 113.15
Asset Quality Ratios: September 30, 1996 December 31,1995
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Non-performing assets to total assets
at end of period 3.63% 2.74%
Non-performing loans to total loans 5.33 3.51
Allowance for loan losses to
non-performing loans 31.88 30.10
Allowance for loan losses to
loans receivable, net 1.70 1.05
Capital Ratios:
Equity to total assets at end of period 14.17 17.30
Average equity to average assets 16.53 8.30
Other Data:
Number of full-service offices 9 9
(1) Return on average equity includes the market value adjustment for
available for sale securities.
(2) Calculated net of expenses related to other real estate owned.
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