Rome Bancorp net income slightly higher this quarter

CNY Business Journal (1996+), May 18, 2001

Rome Bancorp, Inc. (NASDAQ: ROME), the holding company of The Rome Savings Bank, reported net income for the quarter ended March 31 was $552,000, or 18 cents per share, representing an increase of $14,000 or 2.6 percent, compared to $538,000, or 16 cents per share for the same period in 2000. The increase in net income resulted primarily, said the company, from a $36,000 increase in net interest income and a $72,000 decrease in noninterest expense, partially offset by a $103,000 decrease in noninterest income.

Interest income increased from $3.9 million for the quarter ended March 31, 2000, to $4.3 million for the quarter ended March 31 this year. The increase in interest income, the company said, is primarily due to an increase in the volume of loans for the quarter ended March 31, compared to the same quarter in 2000. Average loans increased from $142.6 million in the first quarter of 2000 to $165.0 million in the first quarter of 2001. This increase, it said, is primarily due to $20.2 million in loans purchased with recourse from other financial institutions in the third and fourth quarters of 2000. The increase in average loans resulted in a $482,000 increase in interest income. Interest income on securities decreased $19,100 from $832,000 for the quarter ended March 31, 2000, to $641,000 for the quarter ended March 31 this year, reflecting a decrease in the average balance of securities from $59.8 million for the three months ended March 31, 2000, to $48.2 million for the three months ended March 31 this year. This decrease was partially offset by a $146,000 increase in interest income on other short-term investments from $89,000 for the quarter ended March 31, 2000, to $235,000 for this year's quarter.

Interest expense increased from $1.6 million for the quarter ended March 31, 2000, to $2.0 million for the quarter ended March 31, 2001. The increase in interest expense was primarily a result, said the company, of having no outstanding borrowings in the first quarter of 2000 compared to average borrowings of $19.3 million for the quarter ended March 31. The increase in borrowings caused a $323,000 increase in interest expense. These borrowings were used to fund the purchase of loans discussed above. The increase in interest expense was also caused by an increase in rates paid on time deposits. The average rate on time deposits for the quarter ended March 31 was 5.61 percent, compared to 4.95 percent for the quarter ended March 31, 2000. This increase in rates caused a $107,000 increase in interest expense.

The decrease in noninterest income was caused by a $112,000 decline in the fair value of assets in which directors' deferred compensation is invested. A comparable decrease in noninterest expense is reflected, since the company's liability for directors' deferred compensation also decreased by the same decline in fair value.

Total assets increased from $244.8 million at Dec. 31, 2000, to $245.4 million at March 31. Total cash and cash equivalents increased $4.0 million from $20.8 million at Dec. 31, 2000, to $24.8 million at March 31, due to the aforementioned decrease in securities.

The company's board of directors has declared a quarterly cash dividend on its common stock of 7 cents per share for stockholders of record at the close of business May 9. The dividend is payable May 21.