Alliance earnings flat to start 2001

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

Alliance Financial Corporation (NASDAQ: ALNC) has reported net income for the quarter ended March 31 of $1.2 million, with earnings per share of 32 cents. This compares to net income of $1.3 million and earnings per share of 38 cents for the same period in 2000.

Commenting on the report, John C. Mott, chairman of Alliance Financial, said, "We are extremely pleased with the continued growth that has resulted from our plans to ex pand our bank ing subsidiary. In the past 12 months, loans that have grown $47 million, or 17 percent, have generated increased revenue, which when combined with strong security gains this quarter have significantly offset our new branch startup costs and overhead expenses, as well as the higher interest expense associated with our deposit growth."

Interest income for the first quarter was $10.6 million, up 14 percent compared with the same period last year. The company said that the increase was primarily associated with growth in the company's loan portfolio. Interest expense was up 35 percent, to $5.6 million, reflecting, said the company, both the growth in and the higher rates paid on deposits. Net interest income declined 3 percent, to $5 million.

Noninterest income was up 51.4 percent, to $2 million, Contributing to this increase, said the company, were gains of $62 1,000 on the sale of securities that had been purchased in 2000. the company also reported an increase in income from service charge on deposits, which rose 27.2 percent, to $580,000. Noninterest expense increased 12.2 percent, to $4.9 million. According to the company, a 15.7 percent increase in salary and benefits expense had an impact on these expenses. Much of the increase, it said, resulted from its planned expansion of staff to serve its growing market. In the past year, the company has opened and staffed three new offices in the Syracuse market area.

The company's assets increased 13.5 percent, to $619 million, at the end of the first quarter this year, compared with last year's first-quarter-end. Deposits grew $41 million, to $507 million, or 8.8 percent. The company attributed this growth to increases in time deposits from new customers, supplemented by increased borrowings, up $25 million compared to March 31, 2000, with increases in both Federal Home Loan Bank advances and retail repurchase agreements.

During the quarter ended March 31, the company repurchased 25,014 shares of its common stock, in connection with a stock repurchase program. On April 10, the company paid its regular quarterly dividend of 18.5 cents per share.