Mechanics Savings Bank Reports Third Quarter Earnings

Business Wire, Oct 15, 1997

HARTFORD, Conn.--(BUSINESS WIRE)--Oct. 15, 1997--Mechanics Savings Bank (NASDAQ:MECH) today reported net income of $1.9 million fully taxed or $.36 per share for the third quarter of 1997. On a pre-tax basis, the company earned $3.1 million or $.58 per share compared to $2.6 million or $.50 per share for the same quarter of 1996. Net income for the first nine months was $11.1 million or $2.12 per share compared to a net loss of $1.7 million or $.34 per share for the same period in 1996. Return on average assets and return on average equity were 1.87% and 18.53%, respectively, for the first nine months of 1997.

Total non-performing assets at September 30, 1997 were $6.4 million or .77% of assets, a 35% drop from the level of $9.9 million or 1.40% of assets at September 30, 1996. Total assets increased 17% to a record $831 million from the year earlier level of $710 million and total loans jumped 14% to $546 million.

Edgar C. Gerwig, Mechanics' Chairman, President and Chief Executive Officer stated, "We have made great progress in many areas during 1997. Residential mortgage closings were $97.5 million for the first nine months, over four times the comparable 1996 volume and installment loans made were double last year's amount. Non-performing assets have been further reduced. Finally, we continue to see substantial income generated by Mechanics Investment Services Inc., our brokerage subsidiary."

Mechanics Savings Bank serves individuals and small and mid-sized businesses at fourteen banking offices in Central Connecticut.