Legacy Bancorp Inc. (LEGC) filed Quarterly Report for the period ended 2009-09-30.
Legacy Bancorp Inc. has a market cap of $84.7 million; its shares were traded at around $9.68 with and P/S ratio of 1.6. The dividend yield of Legacy Bancorp Inc. stocks is 2.1%.
Highlight of Business Operations:
Overview: Total assets increased by $8.9 million, or 0.9%, from $944.7 million at December 31, 2008 to $953.5 million at September 30, 2009. Within the overall balance sheet, investment securities increased while net loans decreased. On the liability side, an increase in total deposits was partially offset by a decrease in borrowings from the Federal Home Loan Bank of Boston (FHLBB), as discussed below.
Investment Activities: Cash and short-term investments increased by $4.9 million, or 14.7%, from $33.6 million at December 31, 2008 to $38.5 million at September 30, 2009. Available for sale securities increased $43.8 million, or 33.1%, from $132.4 million at December 31, 2008 to $176.1 million, or 18.5% of total assets, at September 30, 2009. The portfolio consists primarily of debt obligations issued by certain government-sponsored agencies and municipalities. Additionally, the portfolio includes mortgage-backed securities with a fair value of $72.7 million, $61.2 million of which are issued or backed by the Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) or other government-sponsored agencies, and $11.5 million issued by certain private issuers. Restricted equity securities and other investments totaled $17.6 million at September 30, 2009 and consisting primarily of stock in the Federal Home Loan Bank of Boston (FHLBB) and in Savings Bank Life Insurance of Massachusetts, and investments in real estate partnerships. The following table sets forth at the dates indicated information regarding the amortized cost and fair values of the Company’s investment securities.
Lending Activities: Total net loans, excluding loans held for sale, at September 30, 2009 were $658.0 million, a decrease of $37.3 million, or 5.4%, from $695.3 million at December 31, 2008. The following table sets forth the composition of the Bank’s loan portfolio (excluding loans held for sale) in dollar amounts and as a percentage of the respective portfolio at the dates indicated.
Growth in commercial real estate and commercial business loans of $10.6 million, or 3.8% was offset by a decrease in residential mortgages of $50.8 million, or 14.7% as many customers took advantage of the decrease in mortgage rates and refinanced their existing mortgages into 30-year fixed-rate mortgages, a product which the Bank currently sells in the secondary market with servicing retained. During the first nine months of 2009, the Bank experienced growth in home equity loans which increased $5.4 million, or 8.6%.
periods ended September 30, 2009. At September 30, 2009 the Bank had five troubled debt restructurings (loans for which a portion of interest or principal has been forgiven, or the loans have been modified to lower the interest rate or extend the original term) totaling approximately $5.0 million. The interest income recorded from these loans amounted to approximately $84,000 and $251,000 for the three and nine month periods ended September 30, 2009, respectively. There were no troubled debt restructurings at December 31, 2008.
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the original contractual terms of the loan agreement. Impaired loans with payments past due 90 days or greater are generally maintained on a non-accrual basis. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan-by-loan basis for commercial loans and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank generally does not separately identify individual consumer and residential loans for impairment disclosures. At September 30, 2009, impaired loans totaled $22.5 million with a corresponding specific reserve allowance of $2.9 million.
LEGC is in the portfolios of John Keeley of Keeley Fund Management.
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