ASHEVILLE, N.C., April 28, 2017 /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, 2017. The Company
reported net income of $1.8 million,
or $0.50 per diluted common share,
for the quarter ended March 31, 2017
compared to net income of $1.1
million, or $0.30 per diluted
common share, for the same quarter of 2016.
Suzanne S. DeFerie, President and
Chief Executive Officer, commented: "We began the year with a very
strong first quarter thanks to focused and successful execution of
our strategic business plan and strong market fundamentals. One of
our key priorities has been to establish new relationships with
commercial clients and to diversify relationships with existing
business clients. During the first quarter, we saw favorable growth
in the number of new commercial relationships and a corresponding
increase in new core deposit accounts and new loan originations,
which exceeded loan repayments, prepayments and foreclosures.
Overall, deposit growth was strong.
"During the quarter, we improved our funding mix by repaying
higher-cost Federal Home Loan Bank advances. This helped lower our
cost of funding and contributed to the ongoing expansion of our net
interest margin. Asset quality metrics continued to improve and
nonperforming loans as a percent of total loans was nine basis
points at quarter end.
Ms. DeFerie continued, "With a solid business plan, strong
capital position and dedicated professionals as our foundation, we
expect to continue our momentum and generate attractive returns for
our shareholders."
2017 First Quarter Highlights
- Net income for the first quarter of 2017 increased 63.6% to
$1.8 million, or $0.50 per diluted common share, from $1.1 million, or $0.30 per diluted common share, for the first
quarter of 2016. First quarter 2017 earnings improved over each of
the previous four quarters.
- Excluding net gains of $17,000
realized from the sale of investment securities, net of income
taxes, earnings for the first quarter of 2017 increased 118.4% to
$1.8 million, or $0.49 per diluted common share, from $832,000, or $0.22
per diluted common share, for the first quarter of 2016.
- The income tax provision of $574,000 for the three months ended March 31, 2017 is net of an income tax benefit of
$228,000 due to the adoption of a new
accounting pronouncement during the first quarter of 2017 related
to the tax benefit on restricted stock vested and released during
the quarter for the Company's equity incentive plan. The income tax
benefit was previously recognized in the equity section of the
balance sheet as a credit to additional paid-in capital.
- Net interest income increased 4.7% to $6.1 million for the three months ended
March 31, 2017 from $5.8 million for the three months ended
March 31, 2016. The net interest
margin improved to 3.33% for the first quarter of 2017 compared to
3.21% for the same quarter of 2016.
- Interest income from loans increased 4.5% in the first quarter
of 2017 compared to the first quarter of 2016, which primarily
reflected an $18.3 million increase
in average loan balances when comparing the two
quarters.
- Interest expense was $816,000 for
the first quarter of 2017 compared to $844,000 for the same quarter of 2016, a decrease
of 3.3%, primarily due to the repayment of $30.0 million in Federal Home Loan Bank advances
that matured in March 2017. The
advances had interest rates ranging from 3.99% to 4.20%.
- Provisions for loan losses were $57,000 in the first quarter of 2017 compared to
$399,000 for the first quarter of
2016, primarily due to increase in the 2016 provision for a
specific reserve on a loan determined to be impaired late in the
first quarter of 2016.
- Loan balances increased $2.2
million, or 0.4%, to $605.8
million at March 31, 2017 from
$603.6 million at December 31, 2016 and increased $10.0 million, or 1.7%, since March 31, 2016 as new loan originations exceeded
loan repayments, prepayments and foreclosures.
- Noninterest income decreased 5.0% to $1.9 million for the first quarter of 2017 from
$2.0 million for the first
quarter of 2016, primarily due to decreases in gains realized from
the sale of investment securities, which were partially offset by
increases in mortgage banking income and income from investments in
bank owned life insurance.
- Noninterest expenses decreased 3.0% to $5.6 million for the first quarter of 2017 from
$5.8 million for the first quarter of
2016, primarily due to decreases in pension plan expenses related
to termination of the qualified pension plan during the fourth
quarter of 2016.
- Delinquent and nonperforming loans were 0.18% and 0.09%,
respectively, of total loans at March 31,
2017 compared to 0.27% and 0.17%, respectively, of total
loans at December 31,
2016.
- Nonperforming assets, including foreclosed properties and
repossessed assets, were 0.72% of total assets at March 31, 2017 compared to 0.79% of total assets
at December 31, 2016 and 1.02% of
total assets at March 31,
2016.
- Core deposits, which exclude certificates of deposit, increased
$25.3 million, or 4.9%, since
December 31, 2016 and $41.0 million, or 8.2%, since March 31, 2016. Noninterest-bearing deposits
increased $9.2 million, or 7.4%, and
commercial non-maturity deposits increased $14.3 million, or 9.2%, since December 31, 2016.
- Book value per common share increased to $24.75 at March 31,
2017 from $24.06 at
December 31, 2016 and $23.10 at March 31,
2016.
- Capital remained strong with consolidated regulatory capital
ratios of 15.97% common equity tier 1 capital, 11.89% tier 1
leverage capital, 15.97% tier 1 risk-based capital and 17.07% total
risk-based capital.
Income Statement Analysis
Net Interest Income. Net interest income increased
by $274,000, or 4.7%, to $6.1 million for the three months ended
March 31, 2017 compared to
$5.8 million for the three months
ended March 31, 2016. Interest income
on loans increased $271,000,
primarily resulting from an $18.3
million increase in average loan balances and a 9 basis
point increase in the average yield on loans. Interest on
investment securities decreased $68,000, attributable to a $23.3 million decrease in the average balance of
investment securities, which was partially offset by a 30 basis
point increase in the average yield earned on the investment
portfolio. Interest expense decreased $28,000, or 3.3%, for the three months ended
March 31, 2017 compared to the three
months ended March 31, 2016. The
lower interest expense was primarily attributable to the repayment
of $30.0 million in Federal Home Loan
Bank advances that matured in March
2017, which was partially offset by a 2 basis points rate
increase on total interest-bearing deposits and higher average
balances of interest-bearing deposits. For the same comparable
three-month periods, average noninterest-bearing deposits grew
$11.4 million, or 10.0%, which
provided deposit funding growth without adding deposit interest
expense.
Noninterest Income. Noninterest income decreased
$103,000, or 5.0%, to $1.9 million for the three months ended
March 31, 2017 from $2.0 million for the three months ended
March 31, 2016. The decrease in
noninterest income during the 2017 period was primarily due to a
$429,000 decrease in gains realized
from the sale of investment securities, which was partially offset
by increases of $132,000 in mortgage
banking income, $87,000 in income
from investments in bank owned life insurance and $71,000 in deposit and other service charge
income. The increase in mortgage banking income was attributable to
higher volumes of residential mortgage loans originated and sold
during the 2017 period. Increased income on deposit and other fees
primarily related to commercial checking accounts.
Noninterest Expenses. Noninterest expenses
decreased $173,000, or 3.0%, to
$5.6 million for the three months
ended March 31, 2017 from
$5.8 million for the three months
ended March 31, 2016. The lower 2017
noninterest expenses primarily reflected decreases of $100,000 in professional and outside services,
$82,000 in salaries and employee
benefits, $50,000 in data processing
fees, and $50,000 in federal deposit
insurance premiums, which were partially offset by increases of
$72,000 in debit card expenses and
$55,000 in training and recruiting
expenses. The decrease in salaries and employee benefits included a
$197,000 reduction in pension plan
expenses that resulted from the termination of the qualified
pension plan during the fourth quarter of 2016, which was partially
offset by increases in other employee benefits.
Balance Sheet Review
Assets. Total assets increased $7.7 million, or 1.0%, to $803.5 million at March
31, 2017 from $795.8 million
at December 31, 2016. Cash and cash
equivalents increased $13.7 million,
or 29.4%, to $60.5 million at
March 31, 2017 from $46.7 million at December
31, 2016, primarily attributable to deposit growth.
Investment securities decreased $2.5
million, or 2.4%, to $101.1
million at March 31, 2017 from
$103.6 million at December 31, 2016, primarily due to the
redeployment of investment securities to fund loan growth. Loans
receivable, net of deferred fees, increased $2.2 million, or 0.4%, to $605.8 million at March
31, 2017 from $603.6 million
at December 31, 2016 as new loan
originations, primarily residential mortgage and commercial real
estate loan originations, exceeded loan repayments, prepayments and
foreclosures.
Liabilities. Total deposits increased $34.4 million, or 5.3%, to $682.1 million at March
31, 2017 from $647.6 million
at December 31, 2016. During the
three months ended March 31, 2017, we
continued our focus on core deposit growth, from which we exclude
certificates of deposit. Core deposits increased $25.3 million, or 4.9%, to $541.4 million at March
31, 2017 from $516.1 million
at December 31, 2016.
Commercial checking and money market accounts increased
$14.3 million, or 9.2%, to
$169.6 million at March 31, 2017 from $155.3
million at December 31, 2016,
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 increased $9.2
million, or 7.0%, to $140.7
million at March 31, 2017 from
$131.5 million at December 31, 2016, which included an $11.2 million increase in longer term brokered
deposits since December 31, 2016.
Accounts payable and other liabilities increased $311,000, or 4.7%, to $7.0
million at March 31, 2017 from
$6.7 million at December 31, 2016. The increase in accounts
payable and other liabilities at March 31,
2017 was primarily attributable to escrow payments made by
borrowers.
Asset Quality
Provision for Loan Losses. The Company recorded a
provision for loan losses in the amount of $57,000 for the three months ended March 31, 2017 compared to $399,000 for the three months ended March 31, 2016. The Company charged off
$53,000 in loans for the first
quarter of 2017 compared to $8,000
for the first quarter of 2016. The decrease in the three-month
provision for loan losses was primarily due to continued
improvement in asset quality and the payoff of a residential
nonperforming loan for $434,000
during the first quarter of 2017. The allowance for loan losses was
1.08% of total loans at March 31,
2017 and December 31, 2016
compared to 1.13% at March 31,
2016.
Nonperforming Assets. Nonperforming assets totaled
$5.8 million, or 0.72% of total
assets, at March 31, 2017 compared to
$6.3 million, or 0.79% of total
assets, at December 31, 2016.
Nonperforming assets included $568,000 in nonperforming loans and $5.2 million in foreclosed real estate and
repossessed assets at March 31, 2017
compared to $1.0 million and
$5.3 million, respectively, at
December 31, 2016.
Nonperforming loans decreased $444,000 to $568,000, or 0.09% of total loans, at
March 31, 2017 compared to
$1.0 million, or 0.17% of total
loans, at December 31, 2016.
Residential mortgage nonperforming loans decreased $442,000, and revolving nonperforming loans
decreased $28,000 for the first three
months of 2017, which was partially offset by an increase of
$32,000 in consumer nonperforming
loans. Performing troubled debt restructurings ("TDRs") decreased
$82,000, or 1.8%, when comparing the
same periods. Total performing TDRs and nonperforming assets
decreased $546,000, or 5.0%, to
$10.3 million, or 1.28% of total
assets, at March 31, 2017 from
$10.8 million, or 1.36% of total
assets, at December 31, 2016.
At March 31, 2017, nonperforming
loans included four revolving home equity loans that totaled
$295,000, one residential mortgage
loan in the amount of $184,000, two
commercial and industrial loans that totaled $57,000 and two consumer loans that totaled
$32,000. As of March 31, 2017, the nonperforming loans had
specific reserves totaling $82,000.
TDRs were $4.5 million at
March 31, 2017 and $4.6 million at December
31, 2016. There were no additions to TDRs during the three
months ended March 31, 2017. At
March 31, 2017, all of the
$4.5 million in TDRs were performing,
with the exception of $12,000, which
were not performing according to their restructured terms and were
included as nonaccruing loans.
Foreclosed real estate at March 31,
2017 included seven properties with a total recorded amount
of $5.1 million compared to ten
properties with a total recorded amount of $5.1 million at December
31, 2016. During the three months ended March 31, 2017, no new properties were added to
foreclosed real estate, while three properties in the amount of
$30,000 were sold with an additional
gain of $16,000. The Bank recorded no
additional loss provisions on foreclosed real estate during the
first three months of 2017, 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 2016, the Bank sold one retail unit. During the three
months ended March 31, 2017, there
were no units sold. As of March 31,
2017, the adjusted recorded amount was $3.3 million for the remaining six retail units
and five office units.
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. 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 2016
#1 Best Overall Bank, #1 Best Mortgage Company, #1 Best Bank
Services For Small Businesses and #1 Best Business That Gives Back
To The Community 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:
|
Suzanne S.
DeFerie
|
|
Chief Executive
Officer
|
|
(828)
254-7411
|
Selected Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
2017
|
|
2016 (1)
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
$ 803,499
|
|
$ 795,823
|
|
1.0%
|
Cash and cash
equivalents
|
|
|
|
60,451
|
|
46,724
|
|
29.4%
|
Investment
securities
|
|
|
|
|
101,106
|
|
103,581
|
|
-2.4%
|
Loans receivable, net
of deferred fees
|
|
|
605,826
|
|
603,582
|
|
0.4%
|
Allowance for loan
losses
|
|
|
|
|
(6,573)
|
|
(6,544)
|
|
-0.4%
|
Deposits
|
|
|
|
|
|
|
682,069
|
|
647,623
|
|
5.3%
|
Core deposits
(2)
|
|
|
|
|
541,379
|
|
516,125
|
|
4.9%
|
FHLB
advances
|
|
|
|
|
20,000
|
|
50,000
|
|
-60.0%
|
Accounts payable and
other liabilities
|
|
|
6,982
|
|
6,671
|
|
4.7%
|
Total
equity
|
|
|
|
|
|
|
93,740
|
|
91,137
|
|
2.9%
|
|
|
|
|
|
|
(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,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
|
|
|
|
|
dividend
income
|
|
|
|
$
6,923
|
|
$
6,677
|
|
3.7%
|
Interest
expense
|
|
|
|
816
|
|
844
|
|
-3.3%
|
Net interest
income
|
|
|
|
6,107
|
|
5,833
|
|
4.7%
|
Provision
for
|
|
|
|
|
|
|
|
|
loan
losses
|
|
|
|
|
|
57
|
|
399
|
|
-85.7%
|
Net interest
income
|
|
|
|
|
|
|
|
|
after
provision for
|
|
|
|
|
|
|
|
|
loan
losses
|
|
|
|
|
|
6,050
|
|
5,434
|
|
11.3%
|
Noninterest
income
|
|
|
|
1,946
|
|
2,049
|
|
-5.0%
|
Noninterest
expenses
|
|
|
|
5,588
|
|
5,761
|
|
-3.0%
|
Income
before
|
|
|
|
|
|
|
|
|
income
tax
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
|
|
2,408
|
|
1,722
|
|
39.8%
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
|
|
574
|
|
601
|
|
-4.5%
|
Net income
|
|
|
|
|
|
$
1,834
|
|
$
1,121
|
|
63.6%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
$
0.53
|
|
$
0.31
|
|
71.0%
|
Diluted
|
|
|
|
|
|
$
0.50
|
|
$
0.30
|
|
66.7%
|
Average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,452,400
|
|
3,578,367
|
|
-3.5%
|
Diluted
|
|
|
|
|
|
3,697,194
|
|
3,720,127
|
|
-0.6%
|
Ending shares
outstanding
|
|
|
3,788,025
|
|
3,985,475
|
|
-5.0%
|
Selected Average
Balances and Yields/Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended March 31,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 611,614
|
|
4.17%
|
|
$ 593,341
|
|
4.08%
|
Investment
securities, including tax-exempt (1)
|
|
102,438
|
|
2.58%
|
|
125,753
|
|
2.28%
|
Other
interest-earning assets
|
|
|
|
45,096
|
|
0.98%
|
|
27,169
|
|
0.98%
|
Total
interest-earning assets (1)
|
|
|
|
759,148
|
|
3.77%
|
|
746,263
|
|
3.67%
|
Interest-bearing
deposits
|
|
|
|
|
|
530,756
|
|
0.30%
|
|
509,038
|
|
0.28%
|
Federal Home Loan
Bank advances
|
|
|
|
44,444
|
|
3.89%
|
|
50,000
|
|
3.94%
|
Total
interest-bearing liabilities
|
|
|
|
575,866
|
|
0.57%
|
|
559,757
|
|
0.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
3.20%
|
|
|
|
3.06%
|
Net interest margin
(1)
|
|
|
|
|
|
|
|
3.33%
|
|
|
|
3.21%
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
|
$
6,544
|
|
$
6,289
|
Provision for
loan losses
|
|
|
|
|
|
|
57
|
|
399
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
|
|
(53)
|
|
(8)
|
Recoveries
|
|
|
|
|
|
|
|
|
25
|
|
42
|
Net (charge-offs)
recoveries
|
|
|
|
|
(28)
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
|
$
6,573
|
|
$
6,722
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
Total
loans
|
|
|
|
|
|
|
|
1.08%
|
|
1.13%
|
Total
nonperforming loans
|
|
|
|
|
1,157.22%
|
|
284.59%
|
Nonperforming
Assets
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
2017
|
|
2016 (1)
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing loans
(2)
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
$
57
|
|
$
63
|
|
-9.5%
|
Total
commercial
|
|
|
|
|
|
57
|
|
63
|
|
-9.5%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
|
|
184
|
|
626
|
|
-70.6%
|
Revolving
mortgage
|
|
|
|
|
|
295
|
|
323
|
|
-8.7%
|
Consumer
|
|
|
|
|
|
|
|
32
|
|
-
|
|
n/a
|
Total
non-commercial
|
|
|
|
|
|
511
|
|
949
|
|
-46.2%
|
Total nonaccruing
loans (2)
|
|
|
|
568
|
|
1,012
|
|
-43.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
|
|
|
568
|
|
1,012
|
|
-43.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
|
|
|
|
5,055
|
|
5,069
|
|
-0.3%
|
Repossessed
assets
|
|
|
|
|
|
184
|
|
190
|
|
-3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
|
5,807
|
|
6,271
|
|
-7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings (3)
|
|
4,461
|
|
4,543
|
|
-1.8%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
total
nonperforming assets
|
|
|
|
$
10,268
|
|
$
10,814
|
|
-5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
|
0.09%
|
|
0.17%
|
|
|
Nonperforming assets
as a percent of total assets
|
|
0.72%
|
|
0.79%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
total
nonperforming assets to total assets
|
|
1.28%
|
|
1.36%
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
March 31,
2017
|
|
December 31,
2016
|
(Dollars in
thousands)
|
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
5
|
|
$
4,102
|
|
8
|
|
$
4,116
|
Residential
mortgage
|
|
|
|
|
|
2
|
|
953
|
|
2
|
|
953
|
Total
|
|
|
|
|
|
|
|
7
|
|
$
5,055
|
|
10
|
|
$
5,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
|
|
|
|
|
$
5,069
|
|
|
|
|
Gain on sale of
foreclosed properties
|
|
|
|
|
|
16
|
|
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
|
|
|
(30)
|
|
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
|
|
$
5,055
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
March
31,
|
(Dollars in
thousands)
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
|
|
$ 611,614
|
|
$ 593,341
|
Average total
interest-earning assets
|
|
|
|
|
759,148
|
|
746,263
|
Average total assets
(1)
|
|
|
|
|
|
|
799,954
|
|
776,623
|
Average total
interest-bearing deposits
|
|
|
|
|
530,756
|
|
509,038
|
Average total
deposits
|
|
|
|
|
|
|
655,719
|
|
622,630
|
Average total
interest-bearing liabilities
|
|
|
|
|
575,866
|
|
559,757
|
Average total
shareholders' equity
|
|
|
|
|
92,821
|
|
91,414
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
|
|
|
|
0.93%
|
|
0.58%
|
Return on average
equity (2)
|
|
|
|
|
8.01%
|
|
4.93%
|
Interest rate spread
(2)(3)
|
|
|
|
|
|
3.20%
|
|
3.06%
|
Net interest margin
(2)(4)
|
|
|
|
|
|
3.33%
|
|
3.21%
|
Noninterest expense
to average assets (2)
|
|
|
2.83%
|
|
2.98%
|
Efficiency ratio
(5)
|
|
|
|
|
|
|
68.50%
|
|
76.29%
|
|
|
|
|
|
|
|
(1)
|
Certain amounts for
prior periods were reclassified to conform to the March 31, 2017
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,
|
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
except per share
data)
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$
6,923
|
|
$
6,934
|
|
$
6,982
|
|
$
6,755
|
|
$
6,677
|
Interest
expense
|
|
|
|
816
|
|
875
|
|
871
|
|
854
|
|
844
|
Net interest
income
|
|
|
|
6,107
|
|
6,059
|
|
6,111
|
|
5,901
|
|
5,833
|
Provision for
(recovery of) loan losses
|
|
57
|
|
137
|
|
(92)
|
|
104
|
|
399
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
6,050
|
|
5,922
|
|
6,203
|
|
5,797
|
|
5,434
|
Noninterest
income
|
|
|
|
1,946
|
|
1,941
|
|
2,290
|
|
2,476
|
|
2,049
|
Noninterest
expenses
|
|
|
|
5,588
|
|
13,191
|
|
5,861
|
|
5,637
|
|
5,761
|
Income (loss) before
income
|
|
|
|
|
|
|
|
|
|
|
tax provision
(benefit)
|
|
|
|
2,408
|
|
(5,328)
|
|
2,632
|
|
2,636
|
|
1,722
|
Income tax provision
(benefit)
|
|
574
|
|
(2,004)
|
|
907
|
|
940
|
|
601
|
Net income
(loss)
|
|
|
|
$
1,834
|
|
$
(3,324)
|
|
$
1,725
|
|
$
1,696
|
|
$
1,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share – Basic
|
|
$
0.53
|
|
$
(0.97)
|
|
$
0.51
|
|
$
0.47
|
|
$
0.31
|
Net income (loss) per
share – Diluted
|
|
$
0.50
|
|
$
(0.97)
|
|
$
0.48
|
|
$
0.45
|
|
$
0.30
|
Book value per
share
|
|
|
|
$
24.75
|
|
$
24.06
|
|
$
24.12
|
|
$
23.80
|
|
$
23.10
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,452,400
|
|
3,419,782
|
|
3,422,798
|
|
3,602,449
|
|
3,578,367
|
Diluted
|
|
|
|
|
|
3,697,194
|
|
3,419,782
|
|
3,573,937
|
|
3,742,458
|
|
3,720,127
|
Ending shares
outstanding
|
|
|
3,788,025
|
|
3,788,025
|
|
3,787,322
|
|
3,987,322
|
|
3,985,475
|
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)
|
|
|
|
2017
|
|
2016 (1)
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total assets
(2)
|
|
|
|
$ 803,499
|
|
$ 795,823
|
|
$ 797,240
|
|
$ 805,568
|
|
$ 783,523
|
Cash and cash
equivalents
|
|
|
60,451
|
|
46,724
|
|
44,752
|
|
51,561
|
|
37,091
|
Investment
securities
|
|
|
|
101,106
|
|
103,581
|
|
110,035
|
|
110,869
|
|
122,374
|
Loans receivable, net
of deferred fees
|
|
605,826
|
|
603,582
|
|
597,935
|
|
606,212
|
|
595,832
|
Allowance for loan
losses
|
|
|
|
(6,573)
|
|
(6,544)
|
|
(6,464)
|
|
(6,583)
|
|
(6,722)
|
Deposits
|
|
|
|
|
|
682,069
|
|
647,623
|
|
642,603
|
|
640,685
|
|
628,415
|
Core deposits
(3)
|
|
|
|
541,379
|
|
516,125
|
|
510,842
|
|
505,438
|
|
500,330
|
FHLB
advances
|
|
|
|
20,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
|
|
|
|
|
93,740
|
|
91,137
|
|
91,343
|
|
94,907
|
|
92,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
15.97%
|
|
15.54%
|
|
15.92%
|
|
16.41%
|
|
16.65%
|
Tier 1 leverage
capital
|
|
|
|
11.89%
|
|
11.58%
|
|
11.97%
|
|
12.43%
|
|
12.33%
|
Tier 1 risk-based
capital
|
|
|
|
15.97%
|
|
15.54%
|
|
15.92%
|
|
16.41%
|
|
16.65%
|
Total risk-based
capital
|
|
|
|
17.07%
|
|
16.63%
|
|
16.99%
|
|
17.50%
|
|
17.81%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
|
|
$
568
|
|
$
1,012
|
|
$
1,237
|
|
$
2,481
|
|
$
2,362
|
Nonperforming
assets
|
|
|
|
5,807
|
|
6,271
|
|
6,184
|
|
7,294
|
|
7,959
|
Nonperforming loans
to total loans
|
|
0.09%
|
|
0.17%
|
|
0.21%
|
|
0.41%
|
|
0.40%
|
Nonperforming assets
to total assets
|
|
0.72%
|
|
0.79%
|
|
0.78%
|
|
0.91%
|
|
1.02%
|
Allowance for loan
losses
|
|
|
|
$
6,573
|
|
$
6,544
|
|
$
6,464
|
|
$
6,583
|
|
$
6,722
|
Allowance for loan
losses to total loans
|
|
1.08%
|
|
1.08%
|
|
1.08%
|
|
1.09%
|
|
1.13%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
|
|
1,157.22%
|
|
646.64%
|
|
522.55%
|
|
265.34%
|
|
284.59%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Derived from audited
consolidated financial statements.
|
(2)
|
Certain amounts for
prior periods were reclassified to conform to the March 31, 2017
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/asb-bancorp-inc-reports-financial-results-for-the-quarter-ended-march-31-2017-300447738.html
SOURCE ASB Bancorp, Inc.