Stewardship Financial Corporation (NASDAQ:SSFN), parent company of
Atlantic Stewardship Bank, announced improved results for the
current year periods. Net income for the three and nine
months ended September 30, 2017 was reported at $1.6 million and
$3.9 million, respectively, compared to net income of $1.0 million
and $3.4 million for the three and nine months ended September 30,
2016.
Paul Van Ostenbridge, President and Chief
Executive Officer of Stewardship Financial Corporation commented,
“Following a successful capital raise in April 2017 and the opening
of a new location in Morristown, NJ in June 2017, the Corporation
is focused on growing the bank and generating solid core
earnings. Increased revenue will result from a growing loan
portfolio and we intend to continue to work to maintain expense
levels.”
Operating ResultsFor the three
and nine months ended September 30, 2017, the Corporation reported
net interest income of $6.8 million and $19.5 million,
respectively. Current net interest income levels reflect
improvement over the $5.5 million and $16.7 million reported
in the comparable prior year periods, with the current year
increases primarily driven by growth in the loan portfolio.
Average loan balances increased $146.5 million and $130.7 million
for the three and nine months ended September 30, 2017 over the
comparable prior year periods. The net interest margins for
the current three and nine month periods were 3.09% and 3.15%,
respectively, compared to 3.07% and 3.18% for the three and nine
months ended September 30, 2016. The margins are generally
reflective of an environment with a flattened yield curve.
With year-over-year growth in the loan
portfolio, provisions for loan losses of $20,000 and $580,000 were
recorded for the three and nine months ended September 30, 2017,
respectively, compared to negative provisions for loan losses of
$250,000 and $1.1 million for the three and nine months ended
September 30, 2016, respectively. As the Corporation
continues to maintain stable credit quality, the allowance for loan
losses to total gross loans was 1.24% at September 30, 2017
compared to 1.31% at December 31, 2016 and 1.48% a year
earlier.
For the three and nine months ended September
30, 2017, noninterest income was $845,000 and $2.5 million,
respectively, compared to $823,000 and $2.5 million in the
equivalent prior year periods. For the three and nine months
ended September 30, 2017, noninterest income included $68,000 and
$123,000 of gains on sales of mortgage loans, respectively,
compared to $33,000 and $70,000 for the comparable prior year
periods. For the nine months ended September 30, 2017,
noninterest income included $1,000 of gains on calls and sales of
securities compared to $62,000 for the comparable prior year
period.
Noninterest expenses for the three and nine
months ended September 30, 2017 were $5.0 million and $15.2
million, respectively, compared to $5.0 million and $14.9 million
in the comparable prior year periods. “In growing our
loan portfolio, we are realizing efficiencies and remain committed
to managing our expenses and infrastructure, as appropriate,”
stated Van Ostenbridge.
Balance Sheet / Financial
ConditionTotal assets of $910.7 million at September 30,
2017 reflected a $152.8 million increase, or 20%, from a year
earlier. The asset growth was driven by organic loan
originations which resulted in a $139.8 million increase in the
gross loan portfolio over the last twelve months.
Van Ostenbridge noted, “We have demonstrated our
ability to fund the increase in loans with deposit growth coupled
with, to a lesser extent, borrowings." At September 30, 2017,
deposits totaled $741.0 million, reflecting net growth over the
past year of $94.9 million. A mix of organic growth and the
retention / expansion of existing relationships has resulted in
solid increases in deposits. Other borrowings were $68.8
million at September 30, 2017 compared to $35.0 million at
September 30, 2016. Approximately $20 million of the growth
in other borrowings can be attributed to a leverage strategy
undertaken in conjunction with the capital raise in April 2017.
All regulatory capital levels at September 30,
2017 remain above the levels considered to be "well capitalized"
under the applicable regulations. Tier 1 leverage ratio was
8.88% and 7.65% at September 30, 2017 and December 31, 2016,
respectively. Total risk based capital ratio was 14.62% at
September 30, 2017 compared to 13.10% at December 31, 2016.
The Corporation recently announced the
establishment of a Small Business Administration (SBA) Department -
staffed with newly hired employees with significant experience in
the SBA process. Van Ostenbridge explained, "We view the
SBA product offerings as value-added lending solutions for small
businesses that do not meet traditional lending requirements."
About Stewardship Financial
CorporationStewardship Financial Corporation’s subsidiary,
the Atlantic Stewardship Bank, is a full-service community bank
serving both individuals and businesses. ASB is known for tithing,
or sharing, 10% of its taxable income with nonprofit, educational,
charitable and/or evangelical religious organizations. To
date, ASB’s total tithing donations total over $9.3 million.
ASB maintains 12 banking locations in NJ including; Hawthorne,
Midland Park, Montville, Morristown, North Haledon, Pequannock,
Ridgewood, Waldwick, Westwood, Wyckoff and two offices in
Wayne. ASB invites you to visit their website at
www.asbnow.com for additional information and to learn
more.
The information disclosed in this document
contains certain “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995, and may be
identified by the use of such words as “believe,” “expect,”
“anticipate,” “should,” “plan,” “estimate,” and “potential.”
Examples of forward-looking statements include, but are not limited
to, estimates with respect to the financial condition, results of
operations and business of the Corporation that are subject to
various factors which could cause actual results to differ
materially from these estimates. These factors include
changes in general, economic and market conditions, legislative and
regulatory conditions, or the development of an interest rate
environment that adversely affects the Corporation’s interest rate
spread or other income anticipated from operations and
investments.
Contact: Claire M. Chadwick
Executive Vice President and Chief Financial Officer 630 Godwin
Avenue Midland Park, NJ 07432 P: 201.444.7100
|
Stewardship Financial Corporation |
Selected Consolidated Financial Information |
(dollars in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
Selected Financial
Condition Data: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
17,213 |
|
|
$ |
19,459 |
|
|
$ |
12,793 |
|
|
$ |
11,680 |
|
|
$ |
21,025 |
|
Securities available for sale |
115,733 |
|
|
116,244 |
|
|
95,632 |
|
|
98,583 |
|
|
103,546 |
|
Securities held to maturity |
53,323 |
|
|
52,091 |
|
|
52,805 |
|
|
52,330 |
|
|
54,179 |
|
FHLB
stock |
3,919 |
|
|
5,169 |
|
|
3,784 |
|
|
3,515 |
|
|
2,425 |
|
Loans
held for sale |
688 |
|
|
446 |
|
|
188 |
|
|
773 |
|
|
300 |
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
Loans
receivable, gross |
691,953 |
|
|
692,056 |
|
|
654,769 |
|
|
604,083 |
|
|
552,106 |
|
Allowance
for loan losses |
(8,614 |
) |
|
(8,550 |
) |
|
(8,246 |
) |
|
(7,905 |
) |
|
(8,150 |
) |
Other,
net |
(422 |
) |
|
(344 |
) |
|
(327 |
) |
|
(226 |
) |
|
(110 |
) |
Loans
receivable, net |
682,917 |
|
|
683,162 |
|
|
646,196 |
|
|
595,952 |
|
|
543,846 |
|
Other
real estate owned, net |
— |
|
|
— |
|
|
401 |
|
|
401 |
|
|
834 |
|
Bank
owned life insurance |
20,943 |
|
|
20,802 |
|
|
16,673 |
|
|
16,558 |
|
|
16,439 |
|
Other
assets |
15,958 |
|
|
15,934 |
|
|
15,927 |
|
|
15,743 |
|
|
15,333 |
|
Total
assets |
$ |
910,694 |
|
|
$ |
913,307 |
|
|
$ |
844,399 |
|
|
$ |
795,535 |
|
|
$ |
757,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
171,609 |
|
|
$ |
177,678 |
|
|
$ |
170,566 |
|
|
$ |
169,306 |
|
|
$ |
172,072 |
|
Interest-bearing deposits |
569,352 |
|
|
543,215 |
|
|
530,138 |
|
|
489,624 |
|
|
474,012 |
|
Total
deposits |
740,961 |
|
|
720,893 |
|
|
700,704 |
|
|
658,930 |
|
|
646,084 |
|
Other
borrowings |
68,760 |
|
|
93,760 |
|
|
65,200 |
|
|
59,200 |
|
|
35,000 |
|
Subordinated debentures and subordinated notes |
23,301 |
|
|
23,284 |
|
|
23,268 |
|
|
23,252 |
|
|
23,235 |
|
Other
liabilities |
3,564 |
|
|
2,859 |
|
|
2,810 |
|
|
2,766 |
|
|
2,040 |
|
Total
liabilities |
836,586 |
|
|
840,796 |
|
|
791,982 |
|
|
744,148 |
|
|
706,359 |
|
Shareholders' equity |
74,108 |
|
|
72,511 |
|
|
52,417 |
|
|
51,387 |
|
|
51,568 |
|
Total
liabilities and shareholders' equity |
$ |
910,694 |
|
|
$ |
913,307 |
|
|
$ |
844,399 |
|
|
$ |
795,535 |
|
|
$ |
757,927 |
|
|
|
|
|
|
|
|
|
|
|
Gross
loans to deposits |
93.39 |
% |
|
96.00 |
% |
|
93.44 |
% |
|
91.68 |
% |
|
85.45 |
% |
|
|
|
|
|
|
|
|
|
|
Equity to
assets |
8.14 |
% |
|
7.94 |
% |
|
6.21 |
% |
|
6.46 |
% |
|
6.80 |
% |
|
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
8.57 |
|
|
$ |
8.39 |
|
|
$ |
8.55 |
|
|
$ |
8.39 |
|
|
$ |
8.43 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
806 |
|
|
$ |
826 |
|
|
$ |
592 |
|
|
$ |
606 |
|
|
$ |
929 |
|
Loans
past due 90 days or more and accruing |
— |
|
|
320 |
|
|
— |
|
|
— |
|
|
— |
|
Total
nonperforming loans |
806 |
|
|
1,146 |
|
|
592 |
|
|
606 |
|
|
929 |
|
Other
real estate owned |
— |
|
|
— |
|
|
401 |
|
|
401 |
|
|
834 |
|
Total
nonperforming assets |
$ |
806 |
|
|
$ |
1,146 |
|
|
$ |
993 |
|
|
$ |
1,007 |
|
|
$ |
1,763 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
0.12 |
% |
|
0.17 |
% |
|
0.09 |
% |
|
0.10 |
% |
|
0.17 |
% |
Nonperforming assets to total assets |
0.09 |
% |
|
0.13 |
% |
|
0.12 |
% |
|
0.13 |
% |
|
0.23 |
% |
Allowance
for loan losses to total gross loans |
1.24 |
% |
|
1.24 |
% |
|
1.26 |
% |
|
1.31 |
% |
|
1.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stewardship Financial Corporation |
Selected Consolidated Financial Information |
(dollars in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
September 30, |
|
September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Selected Operating
Data: |
|
|
|
|
|
|
|
Interest
income |
$ |
8,400 |
|
|
$ |
6,657 |
|
|
$ |
23,767 |
|
|
$ |
20,085 |
|
Interest
expense |
1,577 |
|
|
1,113 |
|
|
4,230 |
|
|
3,410 |
|
Net
interest income |
6,823 |
|
|
5,544 |
|
|
19,537 |
|
|
16,675 |
|
Provision
for loan losses |
20 |
|
|
(250 |
) |
|
580 |
|
|
(1,050 |
) |
Net
interest income |
|
|
|
|
|
|
|
after
provision for loan losses |
6,803 |
|
|
5,794 |
|
|
18,957 |
|
|
17,725 |
|
Noninterest income: |
|
|
|
|
|
|
|
Fees and
service charges |
524 |
|
|
536 |
|
|
1,578 |
|
|
1,595 |
|
Bank
owned life insurance |
141 |
|
|
120 |
|
|
385 |
|
|
328 |
|
Gain on
calls and sales of securities |
1 |
|
|
6 |
|
|
1 |
|
|
62 |
|
Gain on
sales of mortgage loans |
68 |
|
|
33 |
|
|
123 |
|
|
70 |
|
Gain on
sales of other real estate owned |
— |
|
|
— |
|
|
13 |
|
|
6 |
|
Miscellaneous |
111 |
|
|
128 |
|
|
357 |
|
|
413 |
|
Total
noninterest income |
845 |
|
|
823 |
|
|
2,457 |
|
|
2,474 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
2,843 |
|
|
2,788 |
|
|
8,567 |
|
|
8,245 |
|
Occupancy, net |
414 |
|
|
400 |
|
|
1,216 |
|
|
1,202 |
|
Equipment |
173 |
|
|
155 |
|
|
497 |
|
|
453 |
|
Data
processing |
444 |
|
|
485 |
|
|
1,369 |
|
|
1,434 |
|
Advertising |
182 |
|
|
165 |
|
|
529 |
|
|
473 |
|
FDIC
insurance premium |
50 |
|
|
100 |
|
|
236 |
|
|
296 |
|
Charitable contributions |
130 |
|
|
80 |
|
|
375 |
|
|
240 |
|
Bank-card
related services |
137 |
|
|
150 |
|
|
421 |
|
|
431 |
|
Other
real estate owned, net |
— |
|
|
27 |
|
|
24 |
|
|
129 |
|
Miscellaneous |
663 |
|
|
649 |
|
|
1,999 |
|
|
1,997 |
|
Total
noninterest expenses |
5,036 |
|
|
4,999 |
|
|
15,233 |
|
|
14,900 |
|
Income before income
tax expense |
2,612 |
|
|
1,618 |
|
|
6,181 |
|
|
5,299 |
|
Income tax expense |
972 |
|
|
583 |
|
|
2,282 |
|
|
1,911 |
|
Net income |
$ |
1,640 |
|
|
$ |
1,035 |
|
|
$ |
3,899 |
|
|
$ |
3,388 |
|
|
|
|
|
|
|
|
|
Weighted avg. no. of
diluted common shares |
8,643,737 |
|
|
6,115,987 |
|
|
7,656,942 |
|
|
6,106,723 |
|
Diluted earnings per
common share |
$ |
0.19 |
|
|
$ |
0.17 |
|
|
$ |
0.51 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
Return on average
common equity |
8.83 |
% |
|
8.06 |
% |
|
8.02 |
% |
|
9.09 |
% |
|
|
|
|
|
|
|
|
Return on average
assets |
0.71 |
% |
|
0.54 |
% |
|
0.60 |
% |
|
0.61 |
% |
|
|
|
|
|
|
|
|
Yield on average
interest-earning assets |
3.80 |
% |
|
3.68 |
% |
|
3.83 |
% |
|
3.83 |
% |
Cost of average
interest-bearing liabilities |
0.94 |
% |
|
0.83 |
% |
|
0.89 |
% |
|
0.86 |
% |
Net interest rate
spread |
2.86 |
% |
|
2.85 |
% |
|
2.94 |
% |
|
2.97 |
% |
|
|
|
|
|
|
|
|
Net interest
margin |
3.09 |
% |
|
3.07 |
% |
|
3.15 |
% |
|
3.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stewardship Financial Corporation |
Selected Consolidated Financial Information |
(dollars in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
8,400 |
|
|
$ |
7,943 |
|
|
$ |
7,424 |
|
|
$ |
7,000 |
|
|
$ |
6,657 |
|
Interest
expense |
|
1,577 |
|
|
1,409 |
|
|
1,244 |
|
|
1,103 |
|
|
1,113 |
|
Net
interest income |
|
6,823 |
|
|
6,534 |
|
|
6,180 |
|
|
5,897 |
|
|
5,544 |
|
Provision
for loan losses |
|
20 |
|
|
260 |
|
|
300 |
|
|
(300 |
) |
|
(250 |
) |
Net
interest and dividend income |
|
|
|
|
|
|
|
|
|
|
after
provision for loan losses |
|
6,803 |
|
|
6,274 |
|
|
5,880 |
|
|
6,197 |
|
|
5,794 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Fees and
service charges |
|
524 |
|
|
519 |
|
|
535 |
|
|
564 |
|
|
536 |
|
Bank
owned life insurance |
|
141 |
|
|
129 |
|
|
115 |
|
|
119 |
|
|
120 |
|
Gain on
calls and sales of securities |
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
|
6 |
|
Gain on
sales of mortgage loans |
|
68 |
|
|
38 |
|
|
17 |
|
|
94 |
|
|
33 |
|
Gain on
sales of other real estate owned |
|
— |
|
|
13 |
|
|
— |
|
|
30 |
|
|
— |
|
Miscellaneous |
|
111 |
|
|
114 |
|
|
132 |
|
|
129 |
|
|
128 |
|
Total
noninterest income |
|
845 |
|
|
813 |
|
|
799 |
|
|
937 |
|
|
823 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
2,843 |
|
|
2,880 |
|
|
2,844 |
|
|
2,735 |
|
|
2,788 |
|
Occupancy, net |
|
414 |
|
|
393 |
|
|
409 |
|
|
396 |
|
|
400 |
|
Equipment |
|
173 |
|
|
162 |
|
|
162 |
|
|
156 |
|
|
155 |
|
Data
processing |
|
444 |
|
|
456 |
|
|
469 |
|
|
481 |
|
|
485 |
|
Advertising |
|
182 |
|
|
211 |
|
|
136 |
|
|
196 |
|
|
165 |
|
FDIC
insurance premium |
|
50 |
|
|
109 |
|
|
77 |
|
|
21 |
|
|
100 |
|
Charitable contributions |
|
130 |
|
|
120 |
|
|
125 |
|
|
135 |
|
|
80 |
|
Bank-card
related services |
|
137 |
|
|
142 |
|
|
142 |
|
|
148 |
|
|
150 |
|
Other
real estate owned, net |
|
— |
|
|
9 |
|
|
15 |
|
|
14 |
|
|
27 |
|
Miscellaneous |
|
663 |
|
|
601 |
|
|
735 |
|
|
720 |
|
|
649 |
|
Total
noninterest expenses |
|
5,036 |
|
|
5,083 |
|
|
5,114 |
|
|
5,002 |
|
|
4,999 |
|
Income before income
tax expense |
|
2,612 |
|
|
2,004 |
|
|
1,565 |
|
|
2,132 |
|
|
1,618 |
|
Income tax expense |
|
972 |
|
|
736 |
|
|
574 |
|
|
784 |
|
|
583 |
|
Net income |
|
$ |
1,640 |
|
|
$ |
1,268 |
|
|
$ |
991 |
|
|
$ |
1,348 |
|
|
$ |
1,035 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted avg. no. of
diluted common shares |
|
8,643,737 |
|
|
8,174,484 |
|
|
6,124,926 |
|
|
6,119,693 |
|
|
6,115,987 |
|
Diluted earnings per
common share |
|
$ |
0.19 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.22 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity |
|
8.83 |
% |
|
7.37 |
% |
|
7.71 |
% |
|
10.40 |
% |
|
8.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
0.71 |
% |
|
0.58 |
% |
|
0.49 |
% |
|
0.69 |
% |
|
0.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
Yield on average
interest-earning assets |
|
3.80 |
% |
|
3.81 |
% |
|
3.88 |
% |
|
3.77 |
% |
|
3.68 |
% |
Cost of average
interest-bearing liabilities |
|
0.94 |
% |
|
0.90 |
% |
|
0.84 |
% |
|
0.80 |
% |
|
0.83 |
% |
Net interest rate
spread |
|
2.86 |
% |
|
2.91 |
% |
|
3.04 |
% |
|
2.97 |
% |
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.09 |
% |
|
3.14 |
% |
|
3.23 |
% |
|
3.18 |
% |
|
3.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stewardship Financial (NASDAQ:SSFN)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Stewardship Financial (NASDAQ:SSFN)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024