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 (Date of earliest event reported) April 28, 1998
Alliance Bancorp of New England, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware 001-13405 06-1495617
(State of Other (Commission File IRS Employer
Jurisdiction Number) Identification No.
of Incorporation)
348 Hartford Turnpike, Vernon, CT 06066
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (860) 875-2500
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On April 28, 1998, the Board of Directors of Alliance Bancorp of New
England, Inc. ("Alliance") approved a three-for-two split of the common stock
of Alliance to be effected as a stock dividend, payable on May 26, 1998 to
shareholders of record as of May 12, 1998. A copy of the press release
announcing the stock split is attached hereto as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Businesses Acquired
Not applicable
(b) Pro Forma Financial Information
Not applicable
(c) Exhibits
(99) Press release dated April 28, 1998
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 hereto duly authorized.
ALLIANCE BANCORP OF
NEW ENGLAND, INC.
Registrant
Date: May 20, 1998 By:______________/s/____________
David H. Gonci
Vice President/Chief Financial Officer
Alliance Bancorp of New England, Inc. Announces First Quarter Earnings,
Dividend and Three-For-Two Stock Split
April 28 -- Alliance Bancorp of New England, Inc. reported a 34% increase
in net income to $602 thousand for the first quarter ended March 31, 1998
compared to net income of $450 thousand in last year's first quarter ($.35
vs. $.28 on a per share basis fully diluted).
The Company announced that the Board of Directors also approved a
three-for-two split of the common stock of Alliance Bancorp of New England,
to be effected as a stock dividend payable on May 26, 1998 to shareholders of
record as of May 12, 1998.
The directors also retained the quarterly dividend at five cents per share
(based on pre-split shares) also payable on May 26, 1998 to shareholders of
record as of May 12, 1998.
President Joseph Rossi said, "We are pleased that the progress of the
Company allows us to declare this stock split. This is the second year in a
row that Alliance has declared a stock split. For those shareholders who have
been with us since last June, the two splits together have resulted in a
doubling in the number of their shares."
Improved earnings in the quarter were attributable to both higher net
interest income and investment security gains. Interest income
benefited from an 8.4% increase in loan interest income due to loan growth.
Investment gains reflected an ongoing process of active investment portfolio
management which has increased the overall yield, as well as realizing the
benefits of the strongly improving market valuations.
As in earlier quarters, revenue gains offset additions to the allowance
for loan losses, which grew to $3.1 million at March 31, 1998, representing
1.96% of loans outstanding. The allowance measured 141% of nonperforming
loans; this ratio was unchanged from year-end 1997.
Non-interest expense remained relatively unchanged or decreased in most
major categories, due to ongoing cost containment. Total expense increased
from the first quarter of 1997 due primarily to problem asset expense
recoveries which were recorded in 1997.
At March 31, the Company had total assets of $247.3 million, $10.0 million
(4.2%) higher than a year ago. Total deposits were $220.7 million, up
$12.0 million (5.7%) from a year earlier. Shareholders' equity increased
23.3% from a year earlier to $19.7 million, representing a book value per
share of $11.86. The Company's capital remained in excess of all regulatory
requirements.
Alliance Bancorp of New England, Inc. (Amex: ANE) is the holding company
for Tolland Bank, a Connecticut-chartered savings bank serving Tolland County
and the surrounding communities.
ALLIANCE BANCORP OF NEW ENGLAND, INC.
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS
Three Months Ended
March 31,
1998 1997
Operating Data ($000 omitted)
Net Interest Income $2,088 $1,961
Provision for Loan Losses 145 74
Total Non-Interest Income 682 260
Total Non-Interest Expense 1,744 1,577
Net Income 602 450
Basic Earnings Per Share $0.36 $0.29
Diluted Earnings Per Share $0.35 $0.28
Average Basic Shares 1,660,517 1,563,109
Average Diluted Shares 1,720,051 1,590,677
Key Ratios (Annualized)
Net Interest Spread
(Fully Taxable Equivalent) 3.26% 3.44%
Net Interest Margin
(Fully Taxable Equivalent) 3.83% 3.90%
Return on Assets 1.00% 0.80%
Return on Equity 13.13% 11.40%
Equity % Assets
- Period End 7.97% 6.73%
Book Value Per Share
- Period End 11.86 10.22
ALLIANCE BANCORP OF NEW ENGLAND, INC.
CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
(in thousands except share data)
Three Months Ended
March 31,
1998 1997
Interest on loans $3,188 $2,940
Interest on other
earning assets 1,164 1,111
Total interest income 4,352 4,051
Interest on deposits 2,205 2,011
Interest on borrowings 59 79
Total interest expense 2,264 2,090
Net interest income 2,088 1,961
Provision for loan losses 145 74
Net interest income
after provision 1,943 1,887
Service charges and fees 247 260
Gain on securities, net 435 0
Gain on assets, net 0 0
Total non-interest income 682 260
Compensation and benefits 877 871
Occupancy 154 158
Equipment & data processing 219 230
Other expense 494 318
Total non-interest expense 1,744 1,577
Income before income taxes 881 570
Income tax expense 279 120
Net income $602 $450
Basic earnings per share $0.36 $0.29
Diluted earnings per share $0.35 $0.28
ALLIANCE BANCORP OF NEW ENGLAND, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
March 31, December 31, March 31,
Assets 1998 1997 1997
Cash and due from banks $5,961 $6,652 $6,039
Short-term investments 19,980 14,765 6,101
Total cash and cash equivalents 25,941 21,417 12,140
Securities available for sale 39,107 43,729 51,785
Securities held to maturity 19,331 19,949 20,511
Residential mortgage loans 40,766 39,319 40,934
Commercial mortgage loans 46,001 45,511 38,727
Consumer loans 29,712 29,504 25,276
Other commercial loans 20,235 18,270 15,518
Government guaranteed loans 21,668 24,846 25,716
Total loans 158,382 157,450 146,171
Less: Allowance for loan losses (3,100) (3,000) (2,850)
Net loans 155,282 154,450 143,321
Premises and equipment, net 4,086 4,151 4,332
Foreclosed assets, net 769 617 955
Other assets 2,821 2,816 4,267
Total assets $247,337 $247,129 $237,311
Liabilities and Equity
Demand deposits $20,268 $21,918 $17,839
NOW deposits 20,430 22,260 19,720
Money market deposits 18,715 15,447 5,687
Savings deposits 34,333 34,677 37,673
Time deposits 126,977 127,431 127,813
Total deposits 220,723 221,733 208,732
Borrowings 5,708 5,739 11,895
Other liabilities 1,197 854 704
Total liabilities $227,628 $228,326 $221,331
Common stock (Par value $.01) 16 16 12
Additional paid-in capital 11,306 11,073 10,476
Net unrealized gain (loss)
on securities 796 643 (234)
Retained earnings 7,591 7,071 5,726
Total shareholders' equity 19,709 18,803 15,980
Total liabilities
and shareholders' equity $247,337 $247,129 $237,311
