ASHEVILLE, N.C., May 1, 2015 /PRNewswire/ -- ASB Bancorp,
Inc. (the "Company") (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the "Bank"), announced today its
operating results for the three-month period ended March 31, 2015. The Company reported net income
of $622,000, or $0.16 per diluted common share, for the quarter
ended March 31, 2015 compared to
$404,000, or $0.09 per diluted common share, for the same
quarter of 2014.
![ASB Bancorp Logo ASB Bancorp Logo](http://photos.prnewswire.com/prnvar/20111031/CL96775LOGO)
Suzanne DeFerie, President and
CEO, noted, "Our latest quarterly financial results show increased
net interest income over the previous four quarters with a
continued improvement in our net interest margin to 3.01% compared
to 2.94% in the previous quarter and 2.90% in the comparable
quarter of 2014. We grew loans by $19.9
million during the first quarter and increased interest
income from loans by 12.2% compared to the first quarter of 2014.
The growth in loans for the quarter was funded in part by a
$9.2 million growth in lower cost
core deposits since December 31,
2014. We continue our focus on building relationships with
clients while we explore ways in which we can more quickly and
profitably leverage our capital."
2015 First Quarter Highlights
- Net income for the first quarter of 2015 was $622,000, or $0.16
per diluted common share, compared to $404,000, or $0.09
per diluted common share, for the first quarter of
2014.
- Net interest income increased 9.0% to $5.3 million for the three months ended March
31, 2015 from $4.9
million for the three months ended March 31, 2014. The net interest
margin improved to 3.01% for the first quarter of 2015
compared to 2.90% for the first quarter of
2014.
- Interest income from loans increased 12.2% in the first
quarter of 2015 compared to the first quarter of 2014,
primarily reflecting an $80.5 million
increase in average loan balances when comparing the
two quarters.
- Interest expense decreased 2.9% in the first quarter of
2015 compared to the first quarter of
2014.
- The Company recorded a $194,000 provision for loan losses in the first
quarter of 2015 compared to a recovery of loan losses
of $(68,000) in the first quarter of
2014. The allowance for loan losses declined to 1.12%
of total loans at March 31, 2015 from
1.14% at December 31,
2014, and the allowance coverage of nonperforming loans was
197.5% at March 31, 2015
compared to 221.3% at December 31,
2014.
- Loan balances increased $19.9
million, or 3.8%, to $541.7
million during the first quarter of 2015 and
increased $86.3 million, or 18.9%,
since March 31, 2014 as new loan
originations exceeded loan repayments, prepayments and
foreclosures.
- Noninterest expenses decreased 1.5% to $5.8 million for the first quarter of 2015 from
$5.9 million for the first quarter of 2014, due to
decreases in foreclosed property expenses and overhead
expense reduction initiatives.
- Delinquent and nonperforming loans were 0.27% and 0.56%,
respectively, of total loans at March 31, 2015, compared to 0.60% and 0.52%,
respectively, of total loans at December 31,
2014.
- Nonperforming assets, including foreclosed properties,
were 1.61% of total assets at March 31, 2015 compared to 1.51% of total assets
at December 31, 2014 and 2.07%
of total assets at March 31,
2014.
- Core deposits, which exclude certificates of deposit,
increased $9.2 million, or 2.0%,
since December 31, 2014
and $34.9 million, or 8.2%, since
March 31, 2014.
Noninterest-bearing deposits have increased
$5.3 million, or 5.4%, since
December 31, 2014, while
commercial non-maturity deposits increased
$5.7 million, or 4.7%, over the same
period.
- Book value per common share increased to $21.93 at March 31,
2015 from $21.56 at
December 31, 2014 and
$20.53 at March 31, 2014.
- Capital remained strong with consolidated regulatory
capital ratios of 18.42% common equity tier 1 capital,
13.16% tier 1 leverage capital, 18.42% tier 1 risk-based capital
and 19.53% total risk-based capital.
- On March 31, 2015, the
Company announced a plan to repurchase up to 5%, or 218,920
shares, of its common stock.
DeFerie commented, "We are encouraged by our improving
core performance and remain optimistic about our
Company's prospects in 2015 to create shareholder value through
increased earnings and prudent balance sheet
management."
Income Statement Analysis
Net Interest Income. Net interest income
increased by $439,000, or 9.0%, to
$5.3 million for the
three months ended March
31, 2015 compared to $4.9
million for the three months ended March 31, 2014. Interest income on
loans increased $599,000, primarily
resulting from an $80.5 million
increase in the average loan balances, partially
offset by a 21 basis point decrease in the average yield on loans.
Interest on securities decreased $168,000, attributable to a $34.0 million decrease in the average balance
in mortgage-backed and other investment securities and
a 9 basis point reduction in the average yield earned on
the investment portfolio. Interest expense decreased
$26,000, or 2.9%, to $861,000 for the three months ended
March 31, 2015 from $887,000 for the three months ended March 31, 2014, due to a 3 basis point
reduction in the average rate paid on interest-bearing
deposits, partially offset by an increase of $7.0 million in the average balance
of interest-bearing deposits. The lower cost of interest-bearing
deposits was primarily attributable to a lower average
balance of certificates of deposit, as well as an average
rate reduction of 2 basis points on certificates
of deposit, and reductions in average rates paid on NOW and
savings accounts, which were partially offset by increases in
the average balances of NOW, money market and savings
accounts as the Company continued its focus on core deposit
growth.
DeFerie commented, "We believe an important measure of our
performance is the improvement demonstrated in
increasing interest income through loan growth, lowering interest
expense through disciplined deposit pricing and core
deposit growth, resulting in net interest margin
improvement."
Noninterest Income. Noninterest income
increased $154,000, or 10.6%, to
$1.6 million for the
three months ended March
31, 2015 from $1.5 million for
the three months ended March 31,
2014. Factors that contributed to the increase
in noninterest income during the 2015 period included increases of
$135,000 in mortgage
banking income, $46,000 in income
from debit card services and $21,000
in income from an investment in a Small Business
Investment Company, which were partially offset by $58,000 in lower securities gains.
The increase in mortgage banking income was attributable to higher
volumes of residential mortgage loans originated and
sold. Increased transaction volume also drove the rise in income
from debit card services.
Noninterest Expenses. Noninterest expenses
decreased $88,000, or 1.5%, to
$5.8 million for the
three months ended March
31, 2015 from $5.9 million for
the three months ended March 31,
2014. The lower 2015 noninterest expenses
primarily reflected decreases of $84,000 in foreclosed property expenses,
$71,000 in data processing
expenses and $19,000 in occupancy
expenses, which were partially offset by increases of
$46,000 in compensation expenses and
$48,000 in various other expenses.
The decrease in foreclosed property expenses included
a reduction of $19,000 in valuation
write-downs of foreclosed properties. Increased
pension plan expense was the primary factor contributing to higher
compensation expenses.
Balance Sheet Review
Assets. Total assets increased $14.4 million, or 1.9%, to $774.4 million at March
31, 2015 from $760.0 million at December 31, 2014. Cash and cash equivalents
increased $3.2 million, or 5.6%, to
$60.1 million at
March 31, 2015 from $56.9 million at December
31, 2014 in anticipation of loan growth. Investment
securities decreased $12.3
million, or 8.5%, to $133.1
million at March 31, 2015 from
$145.4 million at
December 31, 2014, primarily
due to the sale of investment securities to fund anticipated loan
growth. Loans receivable, net of deferred fees,
increased $19.9 million, or 3.8%, to
$541.7 million at March 31,
2015 from $521.8 million at
December 31, 2014 as new loan
originations exceeded loan repayments, prepayments and
foreclosures.
Liabilities. Total deposits increased
$8.9 million, or 1.5%, to
$612.3 million at March 31, 2015 from $603.4 million at December
31, 2014. During the three months ended March 31, 2015, the Company
continued its focus on core deposit growth, from which it
excludes certificates of deposit. Core deposits
increased $9.2 million, or
2.0%, to $458.5 million at
March 31, 2015 from $449.3 million at December 31,
2014.
Commercial checking and money market accounts increased
$5.7 million, or 4.7%, to
$127.3 million at
March 31, 2015 from
$121.6 million at December 31, 2014, reflecting expanded sources of
lower cost funding. The Company's initiatives to
obtain new commercial deposit relationships in conjunction
with making new commercial loans significantly
contributed to this increase and reflects a commitment to
establishing diversified relationships with business
clients.
Over the same period, certificates of deposit decreased
$272,000, or 0.2%, to $153.8 million at March 31, 2015
from $154.1 million at December 31, 2014 as the Company continued its
focus on core deposit growth. Accounts payable and
other liabilities increased $3.5
million, or 30.3%, to $15.1
million at March 31, 2015 from $11.6 million at December
31, 2014. The increase in accounts payable and other
liabilities at March 31,
2015 was primarily attributable to securities purchased in
the process of settlement at the end of the first
quarter.
Asset Quality
Provision for Loan Losses. The Company
recorded a provision for loan losses in the amount of $194,000 for the three months ended
March 31, 2015 compared to a recovery
of loan losses of $(68,000) for
the three months ended March
31, 2014. Charge-offs were $252,000 for the first three months of
2015 compared to $94,000
for the first three months of 2014. The increase in the provision
for loan losses for the quarter was primarily due
to growth in loan volume, while the increase in charge-offs was
related to two large loans charged off during the
first quarter of 2015.
Nonperforming Assets. Nonperforming assets
totaled $12.4 million, or 1.61% of
total assets, at March 31, 2015, compared to
$11.5 million, or 1.51% of total
assets, at December 31, 2014.
Nonperforming assets included $3.0 million in nonperforming loans and
$9.4 million in foreclosed real
estate at March 31, 2015
compared to $2.7 million and
$8.8 million, respectively, at
December 31, 2014.
Nonperforming loans increased $371,000 to $3.0
million, or 0.56% of total loans, at March 31, 2015 from $2.7 million, or 0.52% of total loans, at
December 31, 2014. Of the
$371,000 increase in
nonperforming loans for the quarter, $337,000 related to additional nonperforming
mortgage loans. Collateral on nonperforming loans in
the amount of $745,000 was moved into
foreclosed real estate, while performing troubled debt
restructurings decreased $41,000, or
0.9%, when comparing the same periods. Total
performing troubled debt restructurings and nonperforming
assets increased $899,000, or 5.5%,
to $17.2 million, or 2.22% of total assets, at
March 31, 2015 compared to
$16.3 million, or 2.15% of total
assets, at December 31,
2014.
At March 31, 2015,
nonperforming loans included six residential mortgage loans that
totaled $1.6 million,
two commercial mortgage loans that totaled $863,000, five revolving home equity loans that
totaled $367,000 and
four commercial and industrial loans that totaled $274,000. As of March 31,
2015, the nonperforming loans had specific
reserves totaling $174,000.
Foreclosed real estate at March 31,
2015 included ten properties with a total recorded amount of
$9.4 million compared to ten properties with a total
recorded amount of $8.8 million at
December 31, 2014.
During the three months ended March
31, 2015, one new property in the amount of $745,000 was added to foreclosed
real estate, while one property in the amount of $89,000 was sold. In addition, the Bank sold
one of its 15 units in a mixed-use condominium complex
for net proceeds of $89,000 during
the first quarter of 2015. The Bank recorded no
capital additions and no loss provisions during the first three
months of 2015.
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 the year
ended December 31, 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 the first quarter of 2015, the Bank
sold one office unit. At March 31, 2015, the adjusted recorded amount was
$4.4 million for the remaining eight
retail units and six office units.
Outlook
DeFerie concluded, "We are pleased with the progress we
have made to improve the Company's balance sheet. The
ongoing strength of our loan portfolio, asset quality management
and improvement in operating efficiencies should have
an increasingly positive impact on future earnings and the
Company's ability to deliver increasing value to
shareholders."
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 2014 #1 Best Bank and #1 Best Bank for Small
Business Services by the readers of the
Mountain Xpress newspaper in Western North Carolina and was also awarded
the Best Bank in McDowell
County for 2014 by the readers of The McDowell News
newspaper.
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 and business trends) that are
considered "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995 (the PSLRA).
Such forward-looking statements may be identified by the use of
such words as "believe," "expect," "anticipate,"
"should," "planned," "estimated," "intend" and "potential."
For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the PSLRA.
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 Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q as filed with the
Securities and Exchange Commission. 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:
|
Suzanne S. DeFerie
|
|
Chief Executive
Officer
|
|
(828)
254-7411
|
Selected Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
2015
|
|
2014*
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
$ 774,420
|
|
$ 760,050
|
|
1.9%
|
Cash and cash
equivalents
|
|
|
|
60,061
|
|
56,858
|
|
5.6%
|
Investment
securities
|
|
|
|
|
133,118
|
|
145,461
|
|
-8.5%
|
Loans receivable, net
of deferred fees
|
|
|
541,706
|
|
521,820
|
|
3.8%
|
Allowance for loan
losses
|
|
|
|
|
(6,042)
|
|
(5,949)
|
|
-1.6%
|
Deposits
|
|
|
|
|
|
|
612,287
|
|
603,379
|
|
1.5%
|
Core
deposits**
|
|
|
|
|
458,465
|
|
449,286
|
|
2.0%
|
FHLB
advances
|
|
|
|
|
50,000
|
|
50,000
|
|
0.0%
|
Accounts payable and
other liabilities
|
|
|
15,137
|
|
11,614
|
|
30.3%
|
Total
equity
|
|
|
|
|
|
|
|
96,008
|
|
94,397
|
|
1.7%
|
* Derived
from audited consolidated financial statements.
|
|
|
|
|
|
|
** Core deposits are
defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands,
|
|
|
Three Months
Ended
|
except per share
data)
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dividend
income
|
|
|
|
|
|
|
|
$ 6,154
|
|
$ 5,741
|
|
7.2%
|
Interest
expense
|
|
|
|
|
|
|
|
861
|
|
887
|
|
-2.9%
|
Net interest
income
|
|
|
|
|
|
|
|
5,293
|
|
4,854
|
|
9.0%
|
Provision
for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
|
|
|
|
|
194
|
|
(68)
|
|
385.3%
|
Net interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
after
provision for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
|
|
|
|
|
5,099
|
|
4,922
|
|
3.6%
|
Noninterest
income
|
|
|
|
|
|
|
|
1,610
|
|
1,456
|
|
10.6%
|
Noninterest
expenses
|
|
|
|
|
|
|
|
5,772
|
|
5,860
|
|
-1.5%
|
Income
before
|
|
|
|
|
|
|
|
|
|
|
|
|
income
tax
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
|
|
|
|
|
|
937
|
|
518
|
|
80.9%
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
|
|
|
|
|
|
315
|
|
114
|
|
176.3%
|
Net income
|
|
|
|
|
|
|
|
|
|
$ 622
|
|
$ 404
|
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
|
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
$ 0.16
|
|
$ 0.09
|
|
77.8%
|
Diluted
|
|
|
|
|
|
|
|
|
|
$ 0.16
|
|
$ 0.09
|
|
77.8%
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
3,899,419
|
|
4,461,521
|
|
-12.6%
|
Diluted
|
|
|
|
|
|
|
|
|
|
3,975,886
|
|
4,493,617
|
|
-11.5%
|
Ending shares
outstanding
|
|
|
|
|
|
|
4,378,411
|
|
4,964,611
|
|
-11.8%
|
Selected Average
Balances and Yields/Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended March 31,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 535,130
|
|
4.18%
|
|
$ 454,621
|
|
4.39%
|
Investment
securities, including tax-exempt (1)
|
|
137,741
|
|
1.93%
|
|
171,755
|
|
2.02%
|
Other
interest-earning assets
|
|
|
|
52,227
|
|
0.50%
|
|
68,121
|
|
0.49%
|
Total
interest-earning assets (1)
|
|
|
|
725,098
|
|
3.49%
|
|
694,497
|
|
3.42%
|
Interest-bearing
deposits
|
|
|
|
|
|
506,065
|
|
0.30%
|
|
499,043
|
|
0.33%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.93%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
557,019
|
|
0.63%
|
|
549,929
|
|
0.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
2.86%
|
|
|
|
2.77%
|
Net interest margin
(1)
|
|
|
|
|
|
|
3.01%
|
|
|
|
2.90%
|
(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
|
Allowance for Loan
Losses
|
|
|
|
|
March
31,
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
|
|
|
|
$ 5,949
|
|
$ 7,307
|
Provision for
(recovery of) loan losses
|
|
|
|
|
|
194
|
|
(68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
(252)
|
|
(94)
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
151
|
|
44
|
Net
charge-offs
|
|
|
|
|
|
|
|
|
|
(101)
|
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
|
|
|
$ 6,042
|
|
$ 7,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
|
|
|
Total
loans
|
|
|
|
|
|
|
|
|
|
|
1.12%
|
|
1.58%
|
Total
nonperforming loans
|
|
|
|
|
|
|
|
197.52%
|
|
377.38%
|
Nonperforming
Assets
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing loans
(1)
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
|
|
|
|
$ 863
|
|
$ 881
|
|
-2.0%
|
Commercial and
industrial
|
|
|
|
|
|
274
|
|
221
|
|
24.0%
|
Total
commercial
|
|
|
|
|
|
|
|
1,137
|
|
1,102
|
|
3.2%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
|
|
1,554
|
|
1,354
|
|
14.8%
|
Revolving
mortgage
|
|
|
|
|
|
|
367
|
|
230
|
|
59.6%
|
Consumer
|
|
|
|
|
|
|
|
1
|
|
2
|
|
-50.0%
|
Total
non-commercial
|
|
|
|
|
|
1,922
|
|
1,586
|
|
21.2%
|
Total nonaccruing
loans (1)
|
|
|
|
|
|
3,059
|
|
2,688
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
|
|
|
3,059
|
|
2,688
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
|
|
|
|
9,383
|
|
8,814
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
|
|
|
12,442
|
|
11,502
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings (2)
|
|
4,763
|
|
4,804
|
|
-0.9%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
total
nonperforming assets
|
|
|
|
|
|
$ 17,205
|
|
$ 16,306
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
|
0.56%
|
|
0.52%
|
|
|
Nonperforming assets
as a percent of total assets
|
|
1.61%
|
|
1.51%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
total
nonperforming assets to total assets
|
|
|
|
|
|
2.22%
|
|
2.15%
|
|
|
(1) Nonaccruing loans
include nonaccruing troubled debt restructurings.
|
|
|
|
|
|
|
(2) Performing
troubled debt restructurings exclude nonaccruing troubled debt
restructurings.
|
|
|
Foreclosed Real
Estate by Loan Type
|
|
March 31,
2015
|
|
December 31,
2014
|
(Dollars in
thousands)
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
8
|
|
$ 8,617
|
|
8
|
|
$ 8,706
|
Residential
mortgage
|
|
|
|
2
|
|
766
|
|
2
|
|
108
|
Total
|
|
|
10
|
|
$ 9,383
|
|
10
|
|
$ 8,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
Three Months
Ended
|
|
|
(Dollars in
thousands)
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
$ 8,814
|
|
|
|
|
Transfers from
loans
|
|
|
|
|
745
|
|
|
|
|
Gain on sale of
foreclosed properties
|
|
|
|
2
|
|
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
|
(178)
|
|
|
|
|
Ending
balance
|
|
|
|
|
$ 9,383
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
March
31,
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
|
|
|
|
|
$ 535,130
|
|
$ 454,621
|
Average total
interest-earning assets
|
|
|
|
|
|
725,098
|
|
694,497
|
Average total
assets
|
|
|
|
|
|
|
|
|
|
760,842
|
|
738,341
|
Average total
interest-bearing deposits
|
|
|
|
|
|
506,065
|
|
499,043
|
Average total
deposits
|
|
|
|
|
|
|
|
|
|
600,612
|
|
576,066
|
Average total
interest-bearing liabilities
|
|
|
|
|
|
557,019
|
|
549,929
|
Average total
shareholders' equity
|
|
|
|
|
|
|
|
95,808
|
|
102,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
|
|
|
|
|
|
0.33%
|
|
0.22%
|
Return on average
equity (1)
|
|
|
|
|
|
|
|
2.63%
|
|
1.60%
|
Interest rate spread
(1) (2)
|
|
|
|
|
|
|
|
|
2.86%
|
|
2.77%
|
Net interest margin
(1) (3)
|
|
|
|
|
|
|
|
|
3.01%
|
|
2.90%
|
Noninterest expense
to average assets (1)
|
|
|
|
|
|
3.08%
|
|
3.22%
|
Efficiency ratio
(4)
|
|
|
|
|
|
|
|
|
|
82.55%
|
|
91.15%
|
(1) Ratios are
annualized.
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
difference between the weighted average yield on average
interest-earning assets and the
|
weighted average cost
of average interest-bearing liabilities. Yields on tax-exempt
securities have been
|
included on a
tax-equivalent basis using a 34% federal marginal tax
rate.
|
(3) 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.
|
(4) 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.
|
Quarterly Earnings
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
(Dollars in
thousands,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
except per share
data)
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$ 6,154
|
|
$ 6,117
|
|
$ 5,873
|
|
$ 5,771
|
|
$ 5,741
|
Interest
expense
|
|
861
|
|
877
|
|
886
|
|
886
|
|
887
|
Net interest
income
|
|
5,293
|
|
5,240
|
|
4,987
|
|
4,885
|
|
4,854
|
Provision for
(recovery of) loan losses
|
|
194
|
|
220
|
|
240
|
|
(1,390)
|
|
(68)
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
5,099
|
|
5,020
|
|
4,747
|
|
6,275
|
|
4,922
|
Noninterest
income
|
|
1,610
|
|
1,681
|
|
1,642
|
|
1,554
|
|
1,456
|
Noninterest
expenses
|
|
5,772
|
|
5,714
|
|
5,624
|
|
6,350
|
|
5,860
|
Income before
income
|
|
|
|
|
|
|
|
|
|
|
tax
provision
|
|
937
|
|
987
|
|
765
|
|
1,479
|
|
518
|
Income tax
provision
|
|
315
|
|
345
|
|
263
|
|
538
|
|
114
|
Net income
|
|
$ 622
|
|
$ 642
|
|
$ 502
|
|
$ 941
|
|
$ 404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Net income per share
– Basic
|
|
$ 0.16
|
|
$ 0.17
|
|
$ 0.13
|
|
$ 0.22
|
|
$ 0.09
|
Net income per share
– Diluted
|
|
$ 0.16
|
|
$ 0.16
|
|
$ 0.12
|
|
$ 0.21
|
|
$ 0.09
|
Book value per
share
|
|
$ 21.93
|
|
$ 21.56
|
|
$ 21.53
|
|
$ 21.06
|
|
$ 20.53
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,899,419
|
|
3,867,296
|
|
3,940,229
|
|
4,342,618
|
|
4,461,521
|
Diluted
|
|
|
|
|
|
3,975,886
|
|
3,952,660
|
|
4,018,945
|
|
4,384,154
|
|
4,493,617
|
Ending shares
outstanding
|
|
4,378,411
|
|
4,378,411
|
|
4,378,411
|
|
4,831,311
|
|
4,964,611
|
Quarterly
Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
(Dollars in
thousands)
|
|
2015
|
|
2014 (1)
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 774,420
|
|
$ 760,050
|
|
$ 749,033
|
|
$ 754,496
|
|
$ 748,089
|
Cash and cash
equivalents
|
|
60,061
|
|
56,858
|
|
78,412
|
|
93,825
|
|
98,554
|
Investment
securities
|
|
133,118
|
|
145,461
|
|
149,530
|
|
153,921
|
|
156,036
|
Loans receivable, net
of deferred fees
|
|
541,706
|
|
521,820
|
|
487,904
|
|
472,012
|
|
455,434
|
Allowance for loan
losses
|
|
(6,042)
|
|
(5,949)
|
|
(5,852)
|
|
(5,770)
|
|
(7,189)
|
Deposits
|
|
612,287
|
|
603,379
|
|
594,798
|
|
592,683
|
|
585,752
|
Core deposits
(2)
|
|
458,465
|
|
449,286
|
|
433,983
|
|
432,201
|
|
423,567
|
FHLB
advances
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
|
96,008
|
|
94,397
|
|
94,285
|
|
101,727
|
|
101,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios (3):
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
18.42%
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
Tier 1 leverage
capital
|
|
13.16%
|
|
13.17%
|
|
13.17%
|
|
14.16%
|
|
14.38%
|
Tier 1 risk-based
capital
|
|
18.42%
|
|
19.83%
|
|
21.17%
|
|
23.69%
|
|
24.29%
|
Total risk-based
capital
|
|
19.53%
|
|
21.01%
|
|
22.42%
|
|
24.94%
|
|
25.54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$ 3,059
|
|
$ 2,688
|
|
$ 3,424
|
|
$ 2,034
|
|
$ 1,905
|
Nonperforming
assets
|
|
12,442
|
|
11,502
|
|
12,593
|
|
12,409
|
|
15,516
|
Nonperforming loans
to total loans
|
|
0.56%
|
|
0.52%
|
|
0.70%
|
|
0.43%
|
|
0.42%
|
Nonperforming assets
to total assets
|
|
1.61%
|
|
1.51%
|
|
1.68%
|
|
1.64%
|
|
2.07%
|
Allowance for loan
losses
|
|
$ 6,042
|
|
$ 5,949
|
|
$ 5,852
|
|
$ 5,770
|
|
$ 7,189
|
Allowance for loan
losses to total loans
|
|
1.12%
|
|
1.14%
|
|
1.20%
|
|
1.22%
|
|
1.58%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
197.52%
|
|
221.32%
|
|
170.91%
|
|
283.68%
|
|
377.38%
|
(1) Ending
balance sheet data as of December 31, 2014 was derived from audited
consolidated financial statements.
|
(2) Core
deposits are defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
(3) Current
quarter capital ratios are based on BASEL III and prior quarters
are based on BASEL I.
|
|
|
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SOURCE ASB Bancorp, Inc.