ASHEVILLE, N.C., July 29, 2016 /PRNewswire/ -- ASB Bancorp,
Inc. (the "Company") (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the "Bank"), announced today its
unaudited preliminary operating results for the three- and
six-month periods ended June 30,
2016. The Company reported net income of $1.7 million, or $0.45 per diluted common share, for the quarter
ended June 30, 2016 compared to net
income of $865,000, or $0.21 per diluted common share, for the same
quarter of 2015. For the six months ended June 30, 2016, the Company reported net income of
$2.8 million compared to net income
of $1.5 million for the same period
of 2015 or an increase of 89.4%. For the year-to-date periods, net
income per share increased to $0.75
per diluted common share for the six months ended June 30, 2016 from $0.37 per diluted common share for the six months
ended June 30, 2015.
Suzanne S. DeFerie, President and
Chief Executive Officer, commented: "We are pleased with our
financial results this quarter. The solid momentum we established
in the first quarter continued through the first six months of the
year. For the second quarter we grew net income by 96.1% over the
same period last year as we experienced further growth in core
deposits and total loans, expanded net interest margin, and
improved asset quality. Increased net interest and noninterest
income coupled with lower noninterest expenses, drove our
efficiency ratio this quarter to approximately 72.5%, slightly
below our 73% near-term target."
"We are confident that the strong economic and demographic
trends in our markets will enable our momentum to continue through
the remainder of 2016. We intend to continue our tight focus on
controlling expenses and driving efficiency throughout the
organization. We have continued to progress toward long-term target
returns of 8.1% to 9.0% on average equity and 1.0% to 1.1% on
average assets. We believe this progress and our recently completed
share buyback program will drive increased shareholder value."
2016 Second Quarter Highlights
- Net income for the second quarter of 2016 increased 96.1% to
$1.7 million, or $0.45 per diluted common share, from $865,000, or $0.21
per diluted common share, for the second quarter of 2015.
- Excluding net gains realized from the sale of investment
securities, net of income taxes, core earnings for the second
quarter of 2016 increased 73.7% to $1.2
million, or $0.33 per diluted
common share, from $775,000, or
$0.19 per diluted common share, for
the second quarter of 2015.
- Net interest income increased 9.1% to $5.9 million for the three months ended
June 30, 2016 from $5.4 million for the three months ended
June 30, 2015. The net interest
margin improved to 3.20% for the second quarter of 2016 compared to
2.96% for the same quarter of 2015.
- Interest income from loans increased 8.1% in the second quarter
of 2016 compared to the second quarter of 2015, which primarily
reflected a $50.6 million increase in
average loan balances when comparing the two quarters.
- Interest expense was $854,000 for
the second quarter of 2016 compared to $880,000 for the same quarter of 2015, a decrease
of 3.0%, due to lower volumes of time deposits.
- Provisions for loan losses were $104,000 in the second quarter of 2016 compared
to $65,000 in the second quarter of
2015. The allowance for loan losses was 1.09% of total loans at
June 30, 2016 and at December 31, 2015, and the allowance coverage of
nonperforming loans was 265.3% at June 30,
2016 compared to 246.8% at December
31, 2015.
- Loan balances increased $10.4
million, or 1.7%, to $606.2
million from March 31, 2016.
Loans increased $30.1 million, or
5.2%, since December 31, 2015 and
increased $53.2 million since
June 30, 2015 as new loan
originations exceeded loan repayments, prepayments and
foreclosures.
- Noninterest income increased 25.8% to $2.5 million for the second quarter of 2016 from
$2.0 million for the second quarter
of 2015, primarily due to an increase in gains realized from the
sale of investment securities and an increase in deposit and other
service charge income, partially offset by decreases in mortgage
banking income and loan fees.
- Noninterest expenses decreased 6.2% to $5.6 million for the second quarter of 2016 from
$6.0 million for the second quarter
of 2015, primarily due to decreases in loan and mortgage related
expenses and cost controls.
- Delinquent and nonperforming loans were 0.40% and 0.41%,
respectively, of total loans at June 30,
2016 compared to 0.49% and 0.44%, respectively, of total
loans at December 31, 2015.
- Nonperforming assets, including foreclosed properties, were
0.90% of total assets at June 30,
2016 compared to 1.05% of total assets at December 31, 2015 and 1.57% of total assets at
June 30, 2015.
- Core deposits, which exclude certificates of deposit, increased
$9.8 million, or 2.0%, since
December 31, 2015 and $31.8 million, or 6.7%, since June 30, 2015. Noninterest-bearing deposits
increased $14.2 million, or 12.5%,
and commercial non-maturity deposits increased $11.9 million, or 8.1%, since December 31, 2015.
- Book value per common share increased to $23.80 at June 30,
2016 from $22.50 at
December 31, 2015 and $21.96 at June 30,
2015.
- Capital remained strong with consolidated regulatory capital
ratios of 16.41% common equity tier 1 capital, 12.43% tier 1
leverage capital, 16.41% tier 1 risk-based capital and 17.50% total
risk-based capital.
- On July 1, 2016, the Company
announced a program to repurchase up to 200,000 shares of its
common stock. On July 11, 2016, the
repurchase program was completed under Rule 10b5-1 at an average
purchase price of $24.62 per
share.
Income Statement Analysis
Net Interest Income. Net interest income increased
by $492,000, or 9.1%, to $5.9 million for the three months ended
June 30, 2016 compared to
$5.4 million for the three months
ended June 30, 2015. Total interest
and dividend income increased $466,000, or 7.4%, to $6.8
million for the three months ended June 30, 2016 from $6.3
million for the three months ended June 30, 2015, primarily as a result of an
increase of $50.6 million in average
loan balances, partially offset by a 3 basis point decrease in the
average yield on loans. Interest on investment securities increased
$3,000, attributable to a 32 basis
point increase in the average yield earned on the investment
portfolio, which was partially offset by a $15.4 million decrease in the average balance of
investment securities. Interest expense decreased $26,000, or 3.0%, to $854,000 for the three months ended June 30, 2016 from $880,000 for the three months ended June 30, 2015, primarily due to a $21.3 million decrease in the average balances of
certificates of deposit. When comparing these same three-month
periods, average noninterest-bearing deposits grew $10.9 million, or 10.1%, which contributed to
minimizing deposit interest expense while deposit funding
grew.
Net interest income increased by $1.0
million, or 9.6%, to $11.7
million for the six months ended June
30, 2016 compared to $10.7
million for the six months ended June
30, 2015. Interest income on loans increased $958,000, primarily resulting from a $54.4 million increase in average loan balances,
partially offset by a 6 basis point decrease in the average yield
on loans. Interest on investment securities increased $23,000, attributable to a 33 basis point
increase in the average yield earned on the investment portfolio,
which was partially offset by a $13.7
million decrease in the average balance of investment
securities to fund loan growth and repurchases of Company common
stock under the Company's repurchase program as discussed herein.
Interest expense decreased $43,000,
or 2.5%, for the six months ended June 30,
2016 compared to the six months ended June 30, 2015. The lower interest expense was
primarily attributable to the $21.6
million lower average balances of certificates of deposit,
as well as an average rate reduction of 2 basis points on total
interest-bearing deposits. The decrease in average balances of
certificates of deposit was partially offset by higher average
balances of NOW, money market and savings accounts. For the same
comparable six-month periods, average noninterest-bearing deposits
grew $14.9 million, or 14.7%, which
contributed to the reduction of deposit interest expense while
deposit funding grew.
Noninterest Income. Noninterest income increased
$508,000, or 25.8%, to $2.5 million for the three months ended
June 30, 2016 from $2.0 million for the three months ended
June 30, 2015. Factors that
contributed to the increase in noninterest income during the 2016
period included increases of $573,000
in net gains from the sale of investment securities and
$116,000 in deposit and other service
charge income, which were partially offset by decreases of
$102,000 in mortgage banking income
and $76,000 in loan fees. Increased
income on deposit and other fees primarily related to retail
checking accounts. The decrease in mortgage banking income was
attributable to lower volumes of residential mortgage loans
originated and sold during the 2016 period.
Noninterest income increased $947,000, or 26.5%, to $4.5 million for the six months ended
June 30, 2016 from $3.6 million for the six months ended
June 30, 2015. Factors that
contributed to the increase in noninterest income during the 2016
period included increases of $973,000
in net gains from the sale of investment securities and
$196,000 in deposit and other service
charge income, which were partially offset by decreases of
$144,000 in mortgage banking income,
$71,000 in loan fees and $21,000 in income from an investment in a Small
Business Investment Company. Increased income on deposit and other
fees primarily related to retail checking accounts. The decrease in
mortgage banking income was attributable to lower volumes of
residential mortgage loans originated and sold during the 2016
period.
Noninterest Expenses. Noninterest expenses
decreased $373,000, or 6.2%, to
$5.6 million for the three months
ended June 30, 2016 from $6.0 million for the three months ended
June 30, 2015. The decrease for
the second quarter of 2016 was primarily due to decreases of
$75,000 in loan expenses,
$73,000 in mortgage software
expenses, $73,000 in compensation and
employee benefits and $53,000 in
professional and outside services. The decrease in compensation and
employee benefits was primarily attributable to lower deferred
compensation expenses related to deferred loan fees.
Noninterest expenses decreased $384,000, or 3.3%, to $11.4 million for the six months ended
June 30, 2016 from $11.8 million for the six months ended
June 30, 2015. The lower 2016
noninterest expenses primarily reflected decreases of $150,000 in loan expenses, $104,000 in salaries and employee benefits,
$84,000 in mortgage software
expenses, $46,000 in federal deposit
insurance premiums and $40,000 in
occupancy expenses, which were partially offset by increases of
$115,000 in data processing fees and
$67,000 in professional and outside
services primarily due to revenue enhancement consulting fees.
Balance Sheet Review
Assets. Total assets increased $22.7 million, or 2.9%, to $805.6 million at June 30,
2016 from $782.9 million at
December 31, 2015. Cash and cash
equivalents increased $18.2 million,
or 54.4%, to $51.6 million at
June 30, 2016 from $33.4 million at December
31, 2015, primarily attributable to the sale of investment
securities. Investment securities decreased $30.5 million, or 21.6%, to $110.9 million at June 30,
2016 from $141.4 million at
December 31, 2015, primarily due to
the sale of investment securities to fund loan growth and
repurchases of Company common stock under the Company's repurchase
program announced on July 1, 2016 and discussed herein. Loans
receivable, net of deferred fees, increased $30.1 million, or 5.2%, to $606.2 million at June 30,
2016 from $576.1 million at
December 31, 2015 as new loan
originations, primarily commercial real estate loan originations,
exceeded loan repayments, prepayments and foreclosures. The
increase in other assets was primarily attributable to a
$10.0 million investment in general
account bank owned life insurance during the second quarter of
2016.
Liabilities. Total deposits increased $9.8 million, or 1.6%, to $640.7 million at June 30,
2016 from $630.9 million at
December 31, 2015. During the six
months ended June 30, 2016, we
continued our focus on core deposit growth, from which we exclude
certificates of deposit. Core deposits increased $9.8 million, or 2.0%, to $505.4 million at June 30,
2016 from $495.6 million at
December 31, 2015.
Commercial checking and money market accounts increased
$11.9 million, or 8.1%, to
$158.9 million at June 30, 2016 from $147.0
million at December 31, 2015,
reflecting expanded sources of lower cost funding. Our efforts to
obtain new commercial deposit relationships in conjunction with
making new commercial loans significantly contributed to this
increase and reflects our commitment to establishing diversified
relationships with business clients.
Certificates of deposit decreased slightly to $135.2 million at June 30,
2016 from $135.3 million at
December 31, 2015 as we continued our
focus on core deposit growth in addition to increasing longer term
brokered deposits by $6.0 million
since December 31, 2015. Accounts
payable and other liabilities increased $1.2
million, or 9.5%, to $13.1
million at June 30, 2016 from
$11.9 million at December 31, 2015. The increase in accounts
payable and other liabilities at June 30,
2016 was primarily attributable to increases in escrowed
payments from mortgage borrowers and pension plan liabilities that
were partially offset by a decrease in payroll accruals.
Asset Quality
Provision for Loan Losses. The provision for loan
losses was $104,000 for the three
months ended June 30, 2016 compared to $65,000 for the three months ended June 30, 2015. The increase in the provision for
loan losses for the second quarter of 2016 was primarily due to
growth in loan volume. The allowance for loan losses totaled
$6.6 million, or 1.09% of total
loans, at June 30, 2016 compared to
$6.3 million, or 1.09% of total
loans, at December 31, 2015. We
charged off $260,000 in loans during
the three months ended June 30, 2016
compared to $137,000 during the three
months ended June 30, 2015.
The Company recorded a provision for loan losses in the amount
of $503,000 for the six months ended
June 30, 2016 compared to
$259,000 for the six months ended
June 30, 2015. The Company charged
off $268,000 in loans for the first
six months of 2016 compared to $389,000 for the first six months of 2015. The
increase in the six-month provision for loan losses was primarily
due to growth in loan volume.
Nonperforming Assets. Nonperforming assets totaled
$7.3 million, or 0.90% of total
assets, at June 30, 2016 compared to
$8.2 million, or 1.05% of total
assets, at December 31, 2015.
Nonperforming assets included $2.5
million in nonperforming loans and $4.8 million in foreclosed real estate at
June 30, 2016 compared to
$2.5 million and $5.6 million, respectively, at December 31, 2015.
Nonperforming loans decreased $67,000 and were $2.5
million, or 0.41% of total loans, at June 30, 2016 compared to $2.5 million, or 0.44% of total loans, at
December 31, 2015. Commercial
mortgage and industrial nonperforming loans decreased $445,000 for the first six months of 2016. The
decreases were partially offset by an increase of $358,000 in residential and revolving
nonperforming loans. Performing troubled debt restructurings
("TDRs") decreased $81,000, or 1.8%,
when comparing the same periods. Total performing TDRs and
nonperforming assets decreased $1.0
million, or 7.9%, to $11.7
million, or 1.46% of total assets, at June 30, 2016 from $12.7
million, or 1.63% of total assets, at December 31, 2015.
At June 30, 2016, nonperforming
loans included five residential mortgage loans that totaled
$1.7 million, two commercial mortgage
loans that totaled $387,000, one
construction and land development loan in the amount of
$6,000, four commercial and
industrial loans that totaled $207,000 and two revolving home equity loans that
totaled $181,000. As of June 30, 2016, the nonperforming loans had
specific reserves totaling $94,000.
TDRs were $5.0 million at
June 30, 2016 and $5.5 million at December
31, 2015. There were no additions to TDRs during the six
months ended June 30, 2016. At
June 30, 2016, $536,000 of the $5.0
million of TDRs were not performing.
Foreclosed real estate at June 30,
2016 included seven properties with a total recorded amount
of $4.8 million compared to six
properties with a total recorded amount of $5.6 million at December
31, 2015. During the six months ended June 30, 2016, one new property was added to
foreclosed real estate in the amount of $5,000, while the Bank sold four of its
residential lots in a mixed-use lot subdivision for net proceeds of
$139,000 and one unit in a mixed-use
condominium for net proceeds of $701,000. The Bank recorded $18,000 in additional loss provisions on
foreclosed real estate during the first six months of 2016, and
there were no capital additions during the period.
The Bank's largest foreclosed property resulted from a loan
relationship that had an original purpose of constructing a
mixed-use retail, commercial office, and residential condominium
project located in Western North
Carolina. As a result of this foreclosure, the Bank acquired
44 of the 48 condominium units in the building. Following an
additional write-down of approximately $630,000 on the loans secured by this collateral
in the fourth quarter of 2012, the Bank recorded this foreclosed
property in the amount of $9.8
million. During 2013, the Bank recorded additional
write-downs totaling $1.6 million,
which resulted in an adjusted recorded amount of $8.2 million at December
31, 2013. During 2014, the Bank recorded an additional
write-down of $133,000 on the
property and sold 28 residential condominium units and one office
unit. During 2015, the Bank sold one retail unit and two office
units. During the six months ended June 30, 2016, the
Bank sold one retail unit. As of June 30,
2016, the adjusted recorded amount was $3.3 million for the remaining six retail units
and five office units.
Other Developments
In April 2016, the Bank decided to
settle its qualified pension plan liability for all remaining
participants effective July 1, 2016.
The settlement is expected to be recognized in the fourth quarter
of 2016 when participants receive annuities or lump sum payments of
their accrued benefit balances. A preliminary estimate of the
one-time settlement charge is in the range of $8.7 million to $9.5 million before income taxes,
or $5.5 million to $6.0 million after
income taxes, of which $8.0 million
before income taxes, or $5.1 million
after income taxes, was recognized as a reduction of tangible
common shareholders' equity in the form of accumulated other
comprehensive loss as of December 31,
2015. A preliminary estimate of the range of earnings per
share dilution is $1.49 to $1.62 per
share, while a preliminary estimate of the range of common equity
book value dilution is $0.12 to $0.24
per share. For periods following the settlement in the fourth
quarter of 2016, the Bank estimates annual periodic expense savings
of approximately $810,000 before
income taxes, or $513,000 after
income taxes, or $0.14 per
share.
Share Repurchases
On July 14, 2016, the Company
issued a news release announcing that the Company completed its
repurchase of 200,000 shares of its outstanding common stock under
the repurchase program previously announced on July 1, 2016. The Company's Board of Directors
approved a stock repurchase program whereby the Company could
repurchase up to 200,000 shares of its outstanding common stock.
Under a Rule 10b5-1 repurchase plan, the share repurchases totaling
200,000 shares were completed on July 11,
2016 at an average purchase price of $24.62 per share. Following the completion of the
repurchase, the Company had 3,787,322 shares outstanding.
Profile
The Bank is a North Carolina
chartered stock savings bank offering traditional financial
services through 13 full-service banking centers located in
Buncombe, Madison, McDowell, Henderson and Transylvania counties in Western North Carolina and a loan production
office in Mecklenburg County.
Originally chartered in 1936 and headquartered in Asheville, North Carolina, the Bank is locally
managed with a focus on fostering strong relationships with its
customers, its employees and the communities it serves. The Bank
was recognized as the 2015 #1 Best Bank Overall, #1 Best Bank for
Small Business Services and #1 Best Bank for Mortgages by the
readers of the Mountain Xpress newspaper in Western North Carolina.
This news release, as well as other written communications made
from time to time by the Company and its subsidiaries and oral
communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of
the Company (including certain projections, performance and growth
targets and business trends) that are considered "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995, Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements may be identified by the use of such words as "believe,"
"expect," "anticipate," "should," "planned," "estimated," "intend"
and "potential," and are subject to the protections of the safe
harbors created by such acts.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: prevailing economic and
geopolitical conditions; changes in interest rates, loan demand,
real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting the Company's operations,
pricing, products and services and other factors described in the
Company's filings with the Securities and Exchange Commission,
including its Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q. The forward-looking statements are made as of the date
of this release, and, except as may be required by applicable law
or regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Contact:
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Suzanne S.
DeFerie
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Chief Executive
Officer
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(828)
254-7411
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Selected Financial
Condition Data
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|
|
|
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June
30,
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December
31,
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(Dollars in
thousands)
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|
|
|
|
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2016
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|
2015 (1)
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% Change
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|
|
|
|
|
|
|
|
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|
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Total
assets
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|
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$ 805,568
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$ 782,853
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2.9%
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Cash and cash
equivalents
|
|
|
|
|
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51,561
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|
33,401
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54.4%
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Investment
securities
|
|
|
|
|
|
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110,869
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|
141,364
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|
-21.6%
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Loans receivable, net
of deferred fees
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606,212
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576,087
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5.2%
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Allowance for loan
losses
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|
|
|
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(6,583)
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|
(6,289)
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-4.7%
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Deposits
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|
|
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|
|
|
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640,685
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630,904
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1.6%
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Core deposits
(2)
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505,438
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495,628
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2.0%
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FHLB
advances
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|
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50,000
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|
50,000
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0.0%
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Accounts payable and
other liabilities
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13,070
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|
11,940
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|
9.5%
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Total
equity
|
|
|
|
|
|
|
|
|
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94,907
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|
89,682
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5.8%
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|
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(1) Derived
from audited consolidated financial statements.
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(2) Core
deposits are defined as total deposits excluding certificates of
deposit.
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Selected Operating
Data
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(Dollars in
thousands,
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Three Months
Ended
|
Six Months
Ended
|
except per share
data)
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June
30,
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|
June
30,
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|
|
|
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2016
|
|
2015
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% Change
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2016
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2015
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% Change
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Interest
and
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dividend
income
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$
6,755
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$
6,289
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7.4%
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$
13,432
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$
12,443
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7.9%
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Interest
expense
|
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854
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|
880
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-3.0%
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|
1,698
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1,741
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-2.5%
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Net interest
income
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|
5,901
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5,409
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9.1%
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|
11,734
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|
10,702
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9.6%
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Provision
for
|
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loan
losses
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104
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|
65
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|
60.0%
|
|
503
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|
259
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|
94.2%
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Net interest
income
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|
|
|
|
|
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after
provision for
|
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loan
losses
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|
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5,797
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|
5,344
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8.5%
|
|
11,231
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|
10,443
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|
7.5%
|
Noninterest
income
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|
2,476
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|
1,968
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|
25.8%
|
|
4,525
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|
3,578
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|
26.5%
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Noninterest
expenses
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|
5,637
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|
6,010
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-6.2%
|
|
11,398
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|
11,782
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-3.3%
|
Income
before
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income
tax
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provision
|
|
|
|
2,636
|
|
1,302
|
|
102.5%
|
|
4,358
|
|
2,239
|
|
94.6%
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
940
|
|
437
|
|
115.1%
|
|
1,541
|
|
752
|
|
104.9%
|
Net income
|
|
|
$
1,696
|
|
$
865
|
|
96.1%
|
|
$
2,817
|
|
$
1,487
|
|
89.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
|
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
0.47
|
|
$
0.22
|
|
113.6%
|
|
$
0.78
|
|
$
0.38
|
|
105.3%
|
Diluted
|
|
|
|
$
0.45
|
|
$
0.21
|
|
114.3%
|
|
$
0.75
|
|
$
0.37
|
|
102.7%
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
3,602,449
|
|
3,923,199
|
|
-8.2%
|
|
3,590,407
|
|
3,911,375
|
|
-8.2%
|
Diluted
|
|
|
|
3,742,458
|
|
4,013,332
|
|
-6.7%
|
|
3,731,316
|
|
3,995,090
|
|
-6.6%
|
Ending shares
outstanding
|
3,987,322
|
|
4,378,411
|
|
-8.9%
|
|
3,987,322
|
|
4,378,411
|
|
-8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances and Yields/Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 604,138
|
|
4.07%
|
|
$ 553,522
|
|
4.10%
|
Investment
securities, including tax-exempt (1)
|
|
117,544
|
|
2.32%
|
|
132,935
|
|
2.00%
|
Other
interest-earning assets
|
|
|
|
34,651
|
|
0.87%
|
|
59,923
|
|
0.46%
|
Total
interest-earning assets (1)
|
|
|
|
756,333
|
|
3.65%
|
|
746,380
|
|
3.44%
|
Interest-bearing
deposits
|
|
|
|
|
|
510,054
|
|
0.29%
|
|
512,270
|
|
0.31%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.94%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
561,685
|
|
0.61%
|
|
562,921
|
|
0.63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
3.04%
|
|
|
|
2.81%
|
Net interest margin
(1)
|
|
|
|
|
|
3.20%
|
|
|
|
2.96%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 598,739
|
|
4.08%
|
|
$ 544,377
|
|
4.14%
|
Investment
securities, including tax-exempt (1)
|
|
121,648
|
|
2.30%
|
|
135,325
|
|
1.97%
|
Other
interest-earning assets
|
|
|
|
30,910
|
|
0.92%
|
|
56,097
|
|
0.48%
|
Total
interest-earning assets (1)
|
|
|
751,297
|
|
3.66%
|
|
735,799
|
|
3.46%
|
Interest-bearing
deposits
|
|
|
|
509,546
|
|
0.28%
|
|
509,185
|
|
0.30%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.94%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
560,721
|
|
0.61%
|
|
559,986
|
|
0.63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
3.05%
|
|
|
|
2.83%
|
Net interest margin
(1)
|
|
|
|
|
|
3.21%
|
|
|
|
2.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Yields on
tax-exempt securities have been included on a tax-equivalent basis
using a 34% federal marginal tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset
Quality Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
Allowance for Loan
Losses
|
|
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
$
6,722
|
|
$
6,042
|
|
$
6,289
|
|
$
5,949
|
Provision for loan
losses
|
|
|
|
104
|
|
65
|
|
503
|
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
|
(260)
|
|
(137)
|
|
(268)
|
|
(389)
|
Recoveries
|
|
|
|
|
|
|
|
17
|
|
154
|
|
59
|
|
305
|
Net recoveries
(charge-offs)
|
|
|
|
(243)
|
|
17
|
|
(209)
|
|
(84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
$
6,583
|
|
$
6,124
|
|
$
6,583
|
|
$
6,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
|
|
|
Total
loans
|
|
|
|
|
|
1.09%
|
|
1.11%
|
|
1.09%
|
|
1.11%
|
Total
nonperforming loans
|
|
|
|
265.34%
|
|
210.30%
|
|
265.34%
|
|
210.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets
|
|
|
|
June
30,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
2016
|
|
2015 (1)
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing loans
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
|
$
6
|
|
$
-
|
|
n/a
|
Commercial
mortgage
|
|
|
|
|
|
387
|
|
818
|
|
-52.7%
|
Commercial and
industrial
|
|
|
|
|
|
207
|
|
227
|
|
-8.8%
|
Total
commercial
|
|
|
|
|
|
|
|
600
|
|
1,045
|
|
-42.6%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
|
|
|
|
1,680
|
|
1,309
|
|
28.3%
|
Revolving
mortgage
|
|
|
|
|
|
|
|
181
|
|
194
|
|
-6.7%
|
Consumer
|
|
|
|
|
|
|
|
|
|
20
|
|
-
|
|
n/a
|
Total
non-commercial
|
|
|
|
|
|
|
|
1,881
|
|
1,503
|
|
25.1%
|
Total nonaccruing
loans (2)
|
|
|
|
|
|
2,481
|
|
2,548
|
|
-2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
|
|
|
|
|
2,481
|
|
2,548
|
|
-2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
|
|
|
|
|
|
4,793
|
|
5,646
|
|
-15.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
|
|
|
7,274
|
|
8,194
|
|
-11.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings (3)
|
|
|
|
4,471
|
|
4,552
|
|
-1.8%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets
|
|
|
|
|
|
$
11,745
|
|
$
12,746
|
|
-7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
|
0.41%
|
|
0.44%
|
|
|
Nonperforming assets
as a percent of total assets
|
|
0.90%
|
|
1.05%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets to total assets
|
|
|
|
1.46%
|
|
1.63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Derived from
audited consolidated financial statements.
|
(2) Nonaccruing loans
include nonaccruing troubled debt restructurings.
|
(3) Performing
troubled debt restructurings exclude nonaccruing troubled debt
restructurings.
|
Foreclosed Real
Estate by Loan Type
|
|
|
June 30,
2016
|
|
December 31,
2015
|
(Dollars in
thousands)
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
6
|
|
$
4,106
|
|
5
|
|
$
4,941
|
Residential
mortgage
|
|
|
|
|
|
1
|
|
687
|
|
1
|
|
705
|
Total
|
|
|
|
|
|
|
|
7
|
|
$
4,793
|
|
6
|
|
$
5,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
|
|
|
$
5,646
|
|
|
|
|
Transfers from
loans
|
|
|
|
|
|
|
|
5
|
|
|
|
|
Loss
provisions
|
|
|
|
|
|
|
|
(18)
|
|
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
|
(840)
|
|
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
$
4,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
|
$ 604,138
|
|
$ 553,522
|
|
$ 598,739
|
|
$ 544,377
|
Average total
interest-earning assets
|
|
|
|
756,333
|
|
746,380
|
|
751,297
|
|
735,799
|
Average total assets
(1)
|
|
|
|
|
|
787,603
|
|
782,122
|
|
782,373
|
|
771,536
|
Average total
interest-bearing deposits
|
|
|
|
510,054
|
|
512,270
|
|
509,546
|
|
509,185
|
Average total
deposits
|
|
|
|
|
|
629,467
|
|
620,762
|
|
626,049
|
|
610,743
|
Average total
interest-bearing liabilities
|
|
|
|
561,685
|
|
562,921
|
|
560,721
|
|
559,986
|
Average total
shareholders' equity
|
|
|
|
93,648
|
|
96,908
|
|
92,531
|
|
96,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
|
|
|
0.87%
|
|
0.44%
|
|
0.72%
|
|
0.39%
|
Return on average
equity (2)
|
|
|
|
7.28%
|
|
3.58%
|
|
6.12%
|
|
3.11%
|
Interest rate spread
(2)(3)
|
|
|
|
|
3.04%
|
|
2.81%
|
|
3.05%
|
|
2.83%
|
Net interest margin
(2)(4)
|
|
|
|
|
3.20%
|
|
2.96%
|
|
3.21%
|
|
2.99%
|
Noninterest expense
to average assets (2)
|
|
2.88%
|
|
3.08%
|
|
2.93%
|
|
3.08%
|
Efficiency ratio
(5)
|
|
|
|
|
|
72.46%
|
|
81.88%
|
|
74.35%
|
|
82.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain amounts for
prior periods were reclassified to conform to the June 30, 2016
presentation.
|
|
The reclassifications
had no effect on net income or equity as previously
reported.
|
(2)
|
Ratios are
annualized.
|
|
|
|
|
(3)
|
Represents the
difference between the weighted average yield on average
interest-earning assets and the
|
|
weighted average cost
on average interest-bearing liabilities. Yields on tax-exempt
securities have been
|
|
included on a
tax-equivalent basis using a 34% federal marginal tax
rate.
|
(4)
|
Represents net
interest income as a percent of average interest-earning assets.
Yields on tax-exempt
|
|
securities have been
included on a tax-equivalent basis using a 34% federal marginal tax
rate.
|
|
(5)
|
Represents
noninterest expenses divided by the sum of net interest income on a
tax-equivalent basis
|
|
using a 34% federal
marginal tax rate and noninterest income excluding realized gains
and losses on
|
|
the sale of
securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Earnings
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
(Dollars in
thousands,
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
except per share
data)
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$
6,755
|
|
$
6,677
|
|
$
6,533
|
|
$
6,459
|
|
$
6,289
|
Interest
expense
|
|
|
|
854
|
|
844
|
|
867
|
|
877
|
|
880
|
Net interest
income
|
|
|
|
5,901
|
|
5,833
|
|
5,666
|
|
5,582
|
|
5,409
|
Provision for
(recovery of) loan losses
|
|
104
|
|
399
|
|
(89)
|
|
191
|
|
65
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
5,797
|
|
5,434
|
|
5,755
|
|
5,391
|
|
5,344
|
Noninterest
income
|
|
|
|
2,476
|
|
2,049
|
|
1,847
|
|
2,084
|
|
1,968
|
Noninterest
expenses
|
|
|
|
5,637
|
|
5,761
|
|
5,921
|
|
5,837
|
|
6,010
|
Income before
income
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
provision
|
|
|
|
2,636
|
|
1,722
|
|
1,681
|
|
1,638
|
|
1,302
|
Income tax
provision
|
|
|
|
940
|
|
601
|
|
735
|
|
496
|
|
437
|
Net income
|
|
|
|
|
|
$
1,696
|
|
$
1,121
|
|
$
946
|
|
$
1,142
|
|
$
865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Net income per share
– Basic
|
|
$
0.47
|
|
$
0.31
|
|
$
0.25
|
|
$
0.29
|
|
$
0.22
|
Net income per share
– Diluted
|
|
$
0.45
|
|
$
0.30
|
|
$
0.24
|
|
$
0.28
|
|
$
0.21
|
Book value per
share
|
|
|
|
$
23.80
|
|
$
23.10
|
|
$
22.50
|
|
$
22.41
|
|
$
21.96
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,602,449
|
|
3,578,367
|
|
3,769,438
|
|
3,947,445
|
|
3,923,199
|
Diluted
|
|
|
|
|
|
3,742,458
|
|
3,720,127
|
|
3,931,470
|
|
4,079,029
|
|
4,013,332
|
Ending shares
outstanding
|
|
|
3,987,322
|
|
3,985,475
|
|
3,985,475
|
|
4,405,266
|
|
4,378,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
2016
|
|
2016
|
|
2015 (1)
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total assets
(2)
|
|
|
|
$ 805,568
|
|
$ 783,523
|
|
$ 782,853
|
|
$ 797,386
|
|
$ 783,207
|
Cash and cash
equivalents
|
|
|
51,561
|
|
37,091
|
|
33,401
|
|
55,765
|
|
52,990
|
Investment
securities
|
|
|
|
110,869
|
|
122,374
|
|
141,364
|
|
138,459
|
|
138,712
|
Loans receivable, net
of deferred fees
|
|
606,212
|
|
595,832
|
|
576,087
|
|
569,085
|
|
552,999
|
Allowance for loan
losses
|
|
|
|
(6,583)
|
|
(6,722)
|
|
(6,289)
|
|
(6,297)
|
|
(6,124)
|
Deposits
|
|
|
|
|
|
640,685
|
|
628,415
|
|
630,904
|
|
635,083
|
|
623,963
|
Core deposits
(3)
|
|
|
|
505,438
|
|
500,330
|
|
495,628
|
|
489,519
|
|
473,674
|
FHLB
advances
|
|
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
|
|
|
|
|
94,907
|
|
92,064
|
|
89,682
|
|
98,736
|
|
96,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
16.41%
|
|
16.65%
|
|
16.66%
|
|
18.33%
|
|
18.40%
|
Tier 1 leverage
capital
|
|
|
|
12.43%
|
|
12.33%
|
|
11.87%
|
|
13.09%
|
|
13.02%
|
Tier 1 risk-based
capital
|
|
|
|
16.41%
|
|
16.65%
|
|
16.66%
|
|
18.33%
|
|
18.40%
|
Total risk-based
capital
|
|
|
|
17.50%
|
|
17.81%
|
|
17.77%
|
|
19.44%
|
|
19.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
|
|
$
2,481
|
|
$
2,362
|
|
$
2,548
|
|
$
2,815
|
|
$
2,912
|
Nonperforming
assets
|
|
|
|
7,274
|
|
7,959
|
|
8,194
|
|
11,686
|
|
12,293
|
Nonperforming loans
to total loans
|
|
0.41%
|
|
0.40%
|
|
0.44%
|
|
0.49%
|
|
0.53%
|
Nonperforming assets
to total assets
|
|
0.90%
|
|
1.02%
|
|
1.05%
|
|
1.47%
|
|
1.57%
|
Allowance for loan
losses
|
|
|
|
$
6,583
|
|
$
6,722
|
|
$
6,289
|
|
$
6,297
|
|
$
6,124
|
Allowance for loan
losses to total loans
|
|
1.09%
|
|
1.13%
|
|
1.09%
|
|
1.11%
|
|
1.11%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
|
|
265.34%
|
|
284.59%
|
|
246.82%
|
|
223.69%
|
|
210.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Derived from audited
consolidated financial statements.
|
|
|
|
|
|
(2)
|
Certain amounts for
prior periods were reclassified to conform to the June 30, 2016
presentation. The
|
|
reclassifications had
no effect on net income or equity as previously
reported.
|
|
|
|
|
(3)
|
Core deposits are
defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/asb-bancorp-inc-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2016-300305850.html
SOURCE ASB Bancorp, Inc.