ASHEVILLE, N.C., April 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-month period
ended March 31, 2016. The Company
reported net income of $1.1 million,
or $0.30 per diluted common share,
for the quarter ended March 31, 2016
compared to $622,000, or $0.16 per diluted common share, for the same
quarter of 2015.
![ASB Bancorp Logo. ASB Bancorp Logo.](http://photos.prnewswire.com/prnvar/20111031/CL96775LOGO)
Suzanne S. DeFerie, President and
Chief Executive Officer, commented: "Our solid first quarter
financial results demonstrate that the positive trends we saw
towards the end of fiscal year 2015 continued into early 2016. We
experienced further growth in core deposits and total loans,
expanded net interest margin, and improved asset quality. By
increasing net interest and noninterest income coupled with
controlling expenses, we were able to realize our key goal of
improving our efficiency ratio below our near-term target of 73%
while maintaining a strong capital position. The result of our work
was an 80% improvement in first quarter net income compared to the
same period last year."
"The current economic drivers in our marketplace give us
confidence that this progress should persist through the remainder
of 2016. We intend to continue driving efficiency, with a long-term
target of 54% to 64%. This should drive increased value for our
shareholders as we target returns of 8.1% to 9.0% on average equity
and 1.0% to 1.1% on average assets over the next three years."
2016 First Quarter Highlights
- Net income for the first quarter of 2016 was $1.1 million, or $0.30 per diluted common share, compared to
$622,000, or $0.16 per diluted common share, for the first
quarter of 2015.
- Net interest income increased 10.2% to $5.8 million for the three months ended
March 31, 2016 from $5.3 million for the three months ended
March 31, 2015. The net interest
margin improved to 3.21% for the first quarter of 2016 compared to
3.01% for the same quarter of 2015.
- Interest income from loans increased 9.1% in the first quarter
of 2016 compared to the first quarter of 2015, which primarily
reflected a $58.2 million increase in
average loan balances when comparing the two quarters.
- Interest expense was $844,000 for
the first quarter of 2016 compared to $861,000 for the same quarter of 2015 due to
lower volumes of time deposits.
- Provisions for loan losses were $399,000 in the first quarter of 2016 compared to
$194,000 in the first quarter of
2015 primarily due to the provision of a specific reserve on a loan
determined to be impaired late in the first quarter. The
allowance for loan losses was 1.13% of total loans at March 31, 2016 compared to 1.09% at December 31, 2015, and the allowance coverage of
nonperforming loans was 284.6% at March 31,
2016 compared to 246.8% at December
31, 2015.
- Loan balances increased $19.7
million, or 3.4%, to $595.8
million during the first quarter of 2016 and increased
$54.1 million, or 10.0%, since
March 31, 2015 as new loan
originations exceeded loan repayments, prepayments and
foreclosures.
- Noninterest income increased 27.3% to $2.0 million for the first quarter of 2016 from
$1.6 million for the first 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.
- Noninterest expenses remained at $5.8
million for the first quarters of 2016 and 2015.
- Delinquent and nonperforming loans were 0.35% and 0.40%,
respectively, of total loans at March 31,
2016 compared to 0.49% and 0.44%, respectively, of total
loans at December 31,
2015.
- Nonperforming assets, including foreclosed properties, were
1.02% of total assets at March 31,
2016 compared to 1.05% of total assets at December 31, 2015 and 1.61% of total assets
at March 31, 2015.
- Core deposits, which exclude certificates of deposit, increased
$4.7 million, or 0.9%, since
December 31, 2015 and $41.9 million, or 9.1%, since March 31, 2015. Noninterest-bearing deposits
increased $6.9 million, or 6.1%, and
commercial non-maturity deposits increased $6.0 million, or 4.1%, since December 31, 2015.
- Book value per common share increased to $23.10 at March 31,
2016 from $22.50 at
December 31, 2015 and $21.93 at March 31,
2015.
- Capital remained strong with consolidated regulatory capital
ratios of 16.65% common equity tier 1 capital, 12.33% tier 1
leverage capital, 16.65% tier 1 risk-based capital and 17.81% total
risk-based capital.
Income Statement Analysis
Net Interest Income. Net interest income
increased by $540,000, or 10.2%, to
$5.8 million for the three months
ended March 31, 2016 compared to
$5.3 million for the three months
ended March 31, 2015. Interest income
on loans increased $502,000,
primarily resulting from a $58.2
million increase in average loan balances, partially offset
by a 10 basis point decrease in the average yield on loans.
Interest on investment securities increased $20,000, attributable to a 35 basis point
increase in the average yield earned on the investment portfolio,
which was partially offset by a $12.0
million decrease in the average balance of investment
securities. Interest expense decreased $17,000, or 2.0%, for the three months ended
March 31, 2016 compared to the three
months ended March 31, 2015. The
lower interest expense was primarily attributable to lower average
balances of certificates of deposit, as well as average rate
reductions 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 quarterly periods,
average noninterest-bearing deposits grew $19.0 million, or 20.1%, which contributed to the
reduction of deposit interest expense while deposit funding
grew.
Noninterest Income. Noninterest income
increased $439,000, or 27.3%, to
$2.0 million for the three months
ended March 31, 2016 from
$1.6 million for the three months
ended March 31, 2015. Factors that
contributed to the increase in noninterest income during the 2016
period included increases of $400,000
in net gains from the sale of investment securities, $80,000 in deposit and other service charge
income and $15,000 in fees from debit
card services, which were partially offset by decreases of
$42,000 in mortgage banking income
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, while increased transaction volume drove the rise in
income from debit card services. The decrease in mortgage banking
income was attributable to lower volumes of residential mortgage
loans originated and sold.
Noninterest Expenses. Noninterest expenses
remained at $5.8 million for the
three months ended March 31, 2016 and 2015. Decreases of
$75,000 in loan expenses,
$34,000 in occupancy expenses,
$31,000 in salaries and employee
benefits, $23,000 in foreclosed
property expenses and $58,000 in
other miscellaneous expenses were partially off set by increases of
$120,000 in professional and outside
services primarily due to revenue enhancement consulting fees and
$90,000 in data processing fees.
Balance Sheet Review
Assets. Total assets increased $670,000, or 0.1%, to $783.5 million at March
31, 2016 from $782.9 million
at December 31, 2015. Cash and cash
equivalents increased $3.7 million,
or 11.0%, to $37.1 million at
March 31, 2016 from $33.4 million at December
31, 2015. Investment securities decreased $19.0 million, or 13.4%, to $122.4 million at March
31, 2016 from $141.4 million
at December 31, 2015, primarily due
to the sale of investment securities to fund loan growth. Loans
receivable, net of deferred fees, increased $19.7 million, or 3.4%, to $595.8 million at March
31, 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.
Liabilities. Total deposits decreased $2.5 million, or 0.4%, to $628.4 million at March
31, 2016 from $630.9 million
at December 31, 2015. During
the three months ended March 31,
2016, we continued our focus on core deposit growth, from
which we exclude certificates of deposit. Core deposits
increased $4.7 million, or 0.9%, to
$500.3 million at March 31, 2016 from $495.6
million at December 31,
2015.
Commercial checking and money market accounts increased
$6.0 million, or 4.1%, to
$153.0 million at March 31, 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.
Since December 31, 2015,
certificates of deposit decreased $7.2
million, or 5.3%, to $128.1
million at March 31, 2016 from
$135.3 million at December 31, 2015 as we continued our focus on
core deposit growth. Accounts payable and other liabilities
increased $405,000, or 3.4%, to
$12.3 million at March 31, 2016 from $11.9
million at December 31,
2015. The increase in accounts payable and other liabilities
at March 31, 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. We recorded a provision
for loan losses in the amount of $399,000 for the three months ended March 31, 2016 compared to $194,000 for the three months ended March 31, 2015. The Company charged off
$8,000 in loans for the first quarter
of 2016 compared to $252,000 for the
first quarter of 2015. The increase in the three-month
provision for loan losses was primarily due to the provision of a
specific reserve on a loan determined to be impaired late in the
first quarter of 2016.
Nonperforming Assets. Nonperforming assets totaled
$8.0 million, or 1.02% of total
assets, at March 31, 2016 compared to
$8.2 million, or 1.05% of total
assets, at December 31, 2015.
Nonperforming assets included $2.4
million in nonperforming loans and $5.6 million in foreclosed real estate at
March 31, 2016 compared to
$2.5 million and $5.6 million, respectively, at December 31, 2015.
Nonperforming loans decreased $186,000 to $2.4
million, or 0.40% of total loans, at March 31, 2016 from $2.5
million, or 0.44% of total loans, at December 31, 2015. Commercial mortgage and
industrial nonperforming loans decreased $436,000 for the three months of 2016 and
residential and revolving mortgage nonperforming loans decreased
$128,000 for the same period.
The decreases were partially offset by an increase of $378,000 in additional non-commercial
construction and land development nonperforming loans. Performing
troubled debt restructurings ("TDRs") decreased $39,000, or 0.9%, when comparing the same
periods. Total performing TDRs and nonperforming assets decreased
$274,000, or 2.1%, to $12.5 million, or 1.59% of total assets, at
March 31, 2016 compared to
$12.7 million, or 1.63% of total
assets, at December 31, 2015.
At March 31, 2016, nonperforming
loans included three residential mortgage loans that totaled
$1.2 million, two commercial mortgage
loans that totaled $395,000, one
commercial construction loan in the amount of $378,000, four commercial and industrial loans
that totaled $214,000 and three
revolving home equity loans that totaled $182,000. As of March 31, 2016, the nonperforming loans had
specific reserves totaling $320,000.
TDRs were $5.1 million at
March 31, 2016 and $5.5 million at December
31, 2015. There were no additions to TDRs during the
three months ended March 31, 2016. At
March 31, 2016, $547,000 of the $5.1
million of TDRs were not performing.
Foreclosed real estate at March 31,
2016 included six properties with a total recorded amount of
$5.6 million compared to six
properties with a total recorded amount of $5.6 million at December
31, 2015. During the three months ended March 31, 2016, no new properties were added to
foreclosed real estate, while the Bank sold one of its residential
lots in a mixed-use lot subdivision for net proceeds of
$49,000. The Bank recorded no
loss provisions on foreclosed real estate during the first three
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 three months ended March 31,
2016, the Bank sold no units. As of March 31, 2016, the adjusted recorded amount was
$4.0 million for the remaining seven
retail units and five office units.
Other Developments
In April 2016, the Bank decided to
settle its qualified pension plan liability 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.
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 ofsuch 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:
|
Suzanne S.
DeFerie
|
|
Chief Executive
Officer
|
|
(828)
254-7411
|
Selected Financial
Condition Data
|
|
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
2016
|
|
2015 (1)
|
|
% Change
|
|
|
|
|
|
|
Total
assets
|
$ 783,523
|
|
$ 782,853
|
|
0.1%
|
Cash and cash
equivalents
|
37,091
|
|
33,401
|
|
11.0%
|
Investment
securities
|
122,374
|
|
141,364
|
|
-13.4%
|
Loans receivable, net
of deferred fees
|
595,832
|
|
576,087
|
|
3.4%
|
Allowance for loan
losses
|
(6,722)
|
|
(6,289)
|
|
-6.9%
|
Deposits
|
628,415
|
|
630,904
|
|
-0.4%
|
Core deposits
(2)
|
500,330
|
|
495,628
|
|
0.9%
|
FHLB
advances
|
50,000
|
|
50,000
|
|
0.0%
|
Accounts payable and
other liabilities
|
12,345
|
|
11,940
|
|
3.4%
|
Total
equity
|
92,064
|
|
89,682
|
|
2.7%
|
|
|
|
|
|
|
(1) Derived
from audited consolidated financial statements.
|
(2) 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,
|
|
2016
|
|
2015
|
|
% Change
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
dividend
income
|
$ 6,677
|
|
$ 6,154
|
|
8.5%
|
Interest
expense
|
844
|
|
861
|
|
-2.0%
|
Net interest
income
|
5,833
|
|
5,293
|
|
10.2%
|
Provision
for
|
|
|
|
|
|
loan
losses
|
399
|
|
194
|
|
105.7%
|
Net interest
income
|
|
|
|
|
|
after
provision for
|
|
|
|
|
|
loan
losses
|
5,434
|
|
5,099
|
|
6.6%
|
Noninterest
income
|
2,049
|
|
1,610
|
|
27.3%
|
Noninterest
expenses
|
5,761
|
|
5,772
|
|
-0.2%
|
Income
before
|
|
|
|
|
|
income
tax
|
|
|
|
|
|
provision
|
1,722
|
|
937
|
|
83.8%
|
Income tax
|
|
|
|
|
|
provision
|
601
|
|
315
|
|
90.8%
|
Net income
|
$ 1,121
|
|
$ 622
|
|
80.2%
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
Basic
|
$ 0.31
|
|
$ 0.16
|
|
93.8%
|
Diluted
|
$ 0.30
|
|
$ 0.16
|
|
87.5%
|
Average shares
outstanding:
|
|
|
|
|
|
Basic
|
3,578,367
|
|
3,899,419
|
|
-8.2%
|
Diluted
|
3,720,127
|
|
3,975,886
|
|
-6.4%
|
Ending shares
outstanding
|
3,985,475
|
|
4,378,411
|
|
-9.0%
|
Selected Average
Balances and Yields/Costs
|
|
|
For The Three Months
Ended March 31,
|
|
2016
|
|
2015
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$ 593,341
|
|
4.08%
|
|
$ 535,130
|
|
4.18%
|
Investment
securities, including tax-exempt (1)
|
125,753
|
|
2.28%
|
|
137,741
|
|
1.93%
|
Other
interest-earning assets
|
27,169
|
|
0.98%
|
|
52,227
|
|
0.50%
|
Total
interest-earning assets (1)
|
746,263
|
|
3.67%
|
|
725,098
|
|
3.49%
|
Interest-bearing
deposits
|
509,038
|
|
0.28%
|
|
506,065
|
|
0.30%
|
Federal Home Loan
Bank advances
|
50,000
|
|
3.94%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
559,757
|
|
0.61%
|
|
557,019
|
|
0.63%
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
3.06%
|
|
|
|
2.86%
|
Net interest margin
(1)
|
|
|
3.21%
|
|
|
|
3.01%
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
|
|
|
$ 6,289
|
|
$ 5,949
|
Provision for loan
losses
|
|
|
|
|
399
|
|
194
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
(8)
|
|
(252)
|
Recoveries
|
|
|
|
|
42
|
|
151
|
Net recoveries
(charge-offs)
|
|
|
|
|
34
|
|
(101)
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
|
|
$ 6,722
|
|
$ 6,042
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
|
|
Total
loans
|
|
|
|
|
1.13%
|
|
1.12%
|
Total
nonperforming loans
|
|
|
|
|
284.59%
|
|
197.52%
|
Nonperforming
Assets
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
2016
|
|
2015
|
|
% Change
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
Nonaccruing loans
(1)
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
Commercial
mortgage
|
$ 395
|
|
$ 818
|
|
-51.7%
|
Commercial and
industrial
|
214
|
|
227
|
|
-5.7%
|
Total
commercial
|
609
|
|
1,045
|
|
-41.7%
|
Non-commercial:
|
|
|
|
|
|
Non-commercial
construction and land development
|
378
|
|
-
|
|
n/a
|
Residential
mortgage
|
1,193
|
|
1,309
|
|
-8.9%
|
Revolving
mortgage
|
182
|
|
194
|
|
-6.2%
|
Total
non-commercial
|
1,753
|
|
1,503
|
|
16.6%
|
Total nonaccruing
loans (1)
|
2,362
|
|
2,548
|
|
-7.3%
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
and still accruing
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
Total nonperforming
loans
|
2,362
|
|
2,548
|
|
-7.3%
|
|
|
|
|
|
|
Foreclosed real
estate
|
5,597
|
|
5,646
|
|
-0.9%
|
|
|
|
|
|
|
Total nonperforming
assets
|
7,959
|
|
8,194
|
|
-2.9%
|
|
|
|
|
|
|
Performing troubled
debt restructurings (2)
|
4,513
|
|
4,552
|
|
-0.9%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
total
nonperforming assets
|
$ 12,472
|
|
$ 12,746
|
|
-2.1%
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
0.40%
|
|
0.44%
|
|
|
Nonperforming assets
as a percent of total assets
|
1.02%
|
|
1.05%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
total
nonperforming assets to total assets
|
1.59%
|
|
1.63%
|
|
|
|
|
|
|
|
|
(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,
2016
|
|
December 31,
2015
|
(Dollars in
thousands)
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
5
|
|
$ 4,892
|
|
5
|
|
$ 4,941
|
Residential
mortgage
|
1
|
|
705
|
|
1
|
|
705
|
Total
|
6
|
|
$ 5,597
|
|
6
|
|
$ 5,646
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
Three Months
Ended
|
|
|
|
(Dollars in
thousands)
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
$ 5,646
|
|
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
(49)
|
|
|
|
|
Ending
balance
|
|
|
$ 5,597
|
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
(Dollars in
thousands)
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
$ 593,341
|
|
$ 535,130
|
Average total
interest-earning assets
|
|
|
|
|
746,263
|
|
725,098
|
Average total assets
(1)
|
|
|
|
|
776,623
|
|
760,832
|
Average total
interest-bearing deposits
|
|
|
|
|
509,038
|
|
506,065
|
Average total
deposits
|
|
|
|
|
622,630
|
|
600,612
|
Average total
interest-bearing liabilities
|
|
|
|
|
559,757
|
|
557,019
|
Average total
shareholders' equity
|
|
|
|
|
91,414
|
|
95,808
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
|
|
|
|
0.58%
|
|
0.33%
|
Return on average
equity (2)
|
|
|
|
|
4.93%
|
|
2.63%
|
Interest rate spread
(2) (3)
|
|
|
|
|
3.06%
|
|
2.86%
|
Net interest margin
(2) (4)
|
|
|
|
|
3.21%
|
|
3.01%
|
Noninterest expense
to average assets (2)
|
|
|
|
|
2.98%
|
|
3.08%
|
Efficiency ratio
(5)
|
|
|
|
|
71.95%
|
|
82.55%
|
|
|
|
|
|
(1) Certain
amounts for prior periods were reclassified to conform to the March
31, 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 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.
|
(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.
|
Quarterly Earnings
Data
|
|
|
Three Month
Periods Ended
|
(Dollars in
thousands,
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
except per share
data)
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
$ 6,677
|
|
$ 6,533
|
|
$ 6,459
|
|
$ 6,289
|
|
$ 6,154
|
Interest
expense
|
844
|
|
867
|
|
877
|
|
880
|
|
861
|
Net interest
income
|
5,833
|
|
5,666
|
|
5,582
|
|
5,409
|
|
5,293
|
Provision for
(recovery of) loan losses
|
399
|
|
(89)
|
|
191
|
|
65
|
|
194
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
5,434
|
|
5,755
|
|
5,391
|
|
5,344
|
|
5,099
|
Noninterest
income
|
2,049
|
|
1,847
|
|
2,084
|
|
1,968
|
|
1,610
|
Noninterest
expenses
|
5,761
|
|
5,921
|
|
5,837
|
|
6,010
|
|
5,772
|
Income before
income
|
|
|
|
|
|
|
|
|
|
tax
provision
|
1,722
|
|
1,681
|
|
1,638
|
|
1,302
|
|
937
|
Income tax
provision
|
601
|
|
735
|
|
496
|
|
437
|
|
315
|
Net income
|
$ 1,121
|
|
$ 946
|
|
$ 1,142
|
|
$ 865
|
|
$ 622
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
Net income per share
– Basic
|
$ 0.31
|
|
$ 0.25
|
|
$ 0.29
|
|
$ 0.22
|
|
$ 0.16
|
Net income per share
– Diluted
|
$ 0.30
|
|
$ 0.24
|
|
$ 0.28
|
|
$ 0.21
|
|
$ 0.16
|
Book value per
share
|
$ 23.10
|
|
$ 22.50
|
|
$ 22.41
|
|
$ 21.96
|
|
$ 21.93
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
3,578,367
|
|
3,769,438
|
|
3,947,445
|
|
3,923,199
|
|
3,899,419
|
Diluted
|
3,720,127
|
|
3,931,470
|
|
4,079,029
|
|
4,013,332
|
|
3,975,886
|
Ending shares
outstanding
|
3,985,475
|
|
3,985,475
|
|
4,405,266
|
|
4,378,411
|
|
4,378,411
|
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)
|
2016
|
|
2015 (1)
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
Total assets
(2)
|
$ 783,523
|
|
$ 782,853
|
|
$ 797,386
|
|
$ 783,207
|
|
$ 774,410
|
Cash and cash
equivalents
|
37,091
|
|
33,401
|
|
55,765
|
|
52,990
|
|
60,061
|
Investment
securities
|
122,374
|
|
141,364
|
|
138,459
|
|
138,712
|
|
133,118
|
Loans receivable, net
of deferred fees
|
595,832
|
|
576,087
|
|
569,085
|
|
552,999
|
|
541,706
|
Allowance for loan
losses
|
(6,722)
|
|
(6,289)
|
|
(6,297)
|
|
(6,124)
|
|
(6,042)
|
Deposits
|
628,415
|
|
630,904
|
|
635,083
|
|
623,963
|
|
612,287
|
Core deposits
(3)
|
500,330
|
|
495,628
|
|
489,519
|
|
473,674
|
|
458,465
|
FHLB
advances
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
92,064
|
|
89,682
|
|
98,736
|
|
96,163
|
|
96,008
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
16.65%
|
|
16.66%
|
|
18.33%
|
|
18.40%
|
|
18.42%
|
Tier 1 leverage
capital
|
12.33%
|
|
11.87%
|
|
13.09%
|
|
13.02%
|
|
13.16%
|
Tier 1 risk-based
capital
|
16.65%
|
|
16.66%
|
|
18.33%
|
|
18.40%
|
|
18.42%
|
Total risk-based
capital
|
17.81%
|
|
17.77%
|
|
19.44%
|
|
19.49%
|
|
19.53%
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
$ 2,362
|
|
$ 2,548
|
|
$ 2,815
|
|
$ 2,912
|
|
$ 3,059
|
Nonperforming
assets
|
7,959
|
|
8,194
|
|
11,686
|
|
12,293
|
|
12,442
|
Nonperforming loans
to total loans
|
0.40%
|
|
0.44%
|
|
0.49%
|
|
0.53%
|
|
0.56%
|
Nonperforming assets
to total assets
|
1.02%
|
|
1.05%
|
|
1.47%
|
|
1.57%
|
|
1.61%
|
Allowance for loan
losses
|
$ 6,722
|
|
$ 6,289
|
|
$ 6,297
|
|
$ 6,124
|
|
$ 6,042
|
Allowance for loan
losses to total loans
|
1.13%
|
|
1.09%
|
|
1.11%
|
|
1.11%
|
|
1.12%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
284.59%
|
|
246.82%
|
|
223.69%
|
|
210.30%
|
|
197.52%
|
|
|
|
|
|
|
|
|
|
|
(1) Derived
from audited consolidated financial statements.
|
(2) Certain
amounts for prior periods were reclassified to conform to the March
31, 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.
|
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SOURCE ASB Bancorp, Inc.