Ben Franklin Q4 Profit Drops On Bad Loans, Expenses
Franklin-based Benjamin Franklin Bancorp, the holding company for Benjamin Franklin Bank, reported a steep fourth quarter profit decline as bad loans and expenses related to its planned merger with Independent Bank Corp. began to mount.
The bank said its fourth quarter net income was $164,000 compared to $1.2 million in the same period the prior year.
Operating expenses increased by $791,000 over the fourth quarter of 2007, primarily due to $550,000 in expenses related to Benjamin Franklin's proposed merger with Independent, the parent company for Rockland Trust. The deal was announced in November and is expected to close during the second quarter.
The bank's provision for loan losses increased to $1.2 million in the fourth quarter from $447,000 in the third quarter and $165,000 in the fourth quarter of 2007. The bank said the increase was "due in large part to the addition of $726,000 in reserves for one $6.4 million non-performing commercial loan" for a mixed-use building in Boston.
For the year, the bank reported net income of $3.7 million compared to $3.6 million the prior year.
The bank's board of directors declared a cash dividend of $0.08 per share payable to shareholders as of Feb. 24.
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