BOSTON – John Hancock Financial Services Inc., the fourth-largest U.S. life insurer by market value, said second-quarter profit almost tripled as the company made more from fixed annuities and profited from investments.
Net income climbed to $289.9 million, or $1 a share, from $98.3 million, or 33 cents, in the same quarter a year earlier, the Boston-based company said in a statement distributed by PR Newswire.
Profit excluding investment gains and losses was $236.1 million, or 82 cents, compared with the 75-cent average forecast of analysts surveyed by Thomson Financial.
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By targeting customers of small community banks, John Hancock has been able to keep interest rates and commissions on fixed annuities below that of some competitors, helping it avoid a squeeze in profit as insurers are themselves earning the lowest interest rates in 45 years. (Bloomberg News)
Seacoast records jump in second-quarter net income
NEW BEDFORD – Seacoast Financial Services Corp., the holding company for CompassBank and Nantucket Bank, recently announced net income of $13.3 million, or 56 cents per diluted share, for the second quarter, a 43.4 percent increase in earnings when compared to net income of $9.2 million, or 39 cents per diluted share, for the second quarter of 2002.
Included in the second-quarter results is a credit of $5.3 million resulting from the company’s settlement with the Massachusetts Department of Revenue over a dispute involving tax treatment of dividends received by CompassBank and Nantucket Bank from their Real Estate Investment Trust subsidiaries. The bank was among more than 60 other banks to settle with the state. The credit represents the difference between the $11 million liability accrued by the company in the first quarter of 2003 as a result of the REIT issue and the amount of the settlement paid, net of related tax benefits.
Including the first-quarter charge and the second-quarter credit relating to the REIT tax issue, consolidated net income for the six months ended June 30 was $10 million, or 45 cents per diluted share, compared to $18.1 million, or 77 cents per diluted share, for the same six-month period last year.
In the second quarter, Seacoast completed its acquisition of Bay State Bancorp Inc., based in Brookline, and the holding company for Bay State Federal Savings Bank, effective May 31. Bay State Federal Savings Bank had total assets of $603 million, including loans of $512 million, total deposits of $389 million and borrowed funds of $138 million. The goodwill associated with this transaction totaled $81.6 million.
“Our continuing plans call for a full conversion and consolidation of that franchise by year-end 2003,” said Kevin G. Champagne, Seacoast president and CEO.
