Empire National Bank Announces Significant Growth in Core Third Quarter Earnings
(firmenpresse) - ISLANDIA, NY -- (Marketwire) -- 10/18/11 -- Empire National Bank (OTCQB: EMPK), today announced its operating results for the third quarter of 2011. Highlights include:
ended September 30, 2011 was $411 thousand, from a loss of $71 thousand in 2010. Core earnings reflect net income excluding securities gains of $1.9 million in the third quarter of 2011 and $536 thousand in 2010.
ended September 30, 2011 was $1.2 million, from $50 thousand in 2010.
ended September 30, 2011 was $2.3 million, an increase of $1.8 million from the $465 thousand in 2010.
ended September 30, 2011 was $3.2 million, an increase of $2.4 million from the $782 thousand in 2010.
of $3.1 million represented a year-over-year increase of 6.9% from the third quarter of 2010.
increased $8.4 million, or 20.7%, to $49.0 million from the third quarter 2010 to 2011.
at 0.84% for the quarter ended September 30, 2011.
with $87.8 million in cash and cash equivalents and available for sale securities and a loan to deposit ratio of 81.45%.
with an allowance for loan and lease losses of 1.96% of total loans, non-performing loans to total loans of 1.03%, and a 0% delinquency rate among performing loans.
of 0.50%, excluding net securities gains.
of 4.76%, excluding net securities gains.
with Tier 1 leverage, Tier 1 risk-based and total risk-based capital ratios of 10.54%, 14.71% and 15.97%, respectively.
Douglas C. Manditch, Chairman and Chief Executive Officer stated, "We are pleased with the continued growth in core earnings of the bank, our strong capital position, and the consistent performance of our commercial loan portfolio. Our financial performance through the third quarter serves to reinforce the quality of our business model and the dedication that our management team, board of directors and employees bring to our shareholders and customers alike."
Net income was $2.3 million, or $0.56 per share, for the third quarter of 2011, compared to $465 thousand or $0.11 per share for the third quarter of 2010, an increase of $1.8 million. The increase in net income was primarily attributable to an increase in net security gains of $1.4 million, coupled with no additional provision for loan losses. Excluding net securities gains, earnings per share were $0.10 for the third quarter of 2011, compared to a loss per share of $0.02 for the third quarter of 2010. On a linked quarter basis, core earnings of the bank remained relatively unchanged.
The increase in net interest income of $115 thousand quarter-over-quarter was primarily attributable to an increase in the average balance of interest earning assets of $17.2 million. The bank's net interest margin was 3.86% for the quarter ended September 30, 2011, a decrease of 7 basis points from the same period in 2010, due to a decrease in the bank's yield on interest earning assets of 21 basis points from 4.85% to 4.64%, which was partially offset by a decrease in the bank's cost of interest bearing liabilities of 15 basis points to 1.01% in the third quarter of 2011. The decrease in the average yield on interest earning assets was primarily due to the increased growth in securities available for sale as a percentage of average earning assets, as compared to loans over the same period. The decrease in the bank's interest bearing liabilities was attributable to an overall reduction in short-term market interest rates and funding costs.
Net income for the nine months ended September 30, 2011 was $3.2 million, an increase of $2.4 million, as compared to the nine months ended September 30, 2010. The increase in net income was attributable to an increase of approximately $1.2 million in net securities gains, an increase of approximately $0.8 million in net interest income and no additional provision for loan losses, partially offset by an increase of approximately $0.2 million in noninterest expenses. Earnings per share, excluding net securities gains were $0.30 and $0.01 for the nine month periods ended September 30, 2011 and 2010, respectively, and $0.76 and $0.19, respectively, for the same periods including net securities gains.
For the nine months ended September 30, 2011, the bank's net interest income was approximately $9.0 million, an increase of approximately $0.8 million or 9.8%, as compared to net interest income of approximately $8.2 million for the nine months ended September 30, 2010. The net interest margin was 3.78% for the nine months ended September 30, 2011 as compared to 3.91% for the same period a year ago. The decrease in the net interest margin is due primarily to a continued historically low interest rate environment and an increase in securities available for sale as a percentage of average earning assets, as compared to loans.
The bank's efficiency ratio improved from 92.33% for the nine months ended September 30, 2010 to 86.66% for the nine months ended September 30, 2011, due to continued revenue growth and expense management, while continuing the bank's mission to deliver high quality, personalized service to its customers.
Total assets were $310.1 million at September 30, 2011, reflecting a $29.7 million decrease from June 30, 2011. The decrease in total assets was primarily due to a decrease in securities available for sale of $26.8 million. Management continues to proactively assess opportunities in this market, given the volatility of interest rates, to contribute to the growth of current earnings and capital, while reinvesting to preserve future earnings of the bank. Total assets similarly decreased $8.7 million year-over-year, or 2.7%, primarily as a result of a decrease in securities available for sale of $7.5 million, or 8.2%.
Non-performing assets were $2.2 million at September 30, 2011, June 30, 2011 and March 31, 2011. As of September 30, 2011, the bank had two non-performing loans that had been restructured and are presently paying as agreed under the restructured terms. Non-performing loans, at 1.03% of total loans, remain below that of the bank's peers. The allowance for loan losses to total loans was 1.96% at September 30, 2011, as compared to 1.93% at September 30, 2010. In addition, the bank had a 0% delinquency rate in its performing loans.
Total deposits were $264.8 million at September 30, 2011, a year-over-year increase of $3.9 million, or 1.5%. On a linked quarter basis, total deposits increased by $5.4 million, or 2.1%. Demand deposits increased $8.4 million, or 21.8%, year-over-year. Savings, NOW and money market deposits increased year-over-year by $7.6 million, or 6.3%, and increased by $3.0 million, or 2.4%, on a linked quarter basis to $128.9 million at September 30, 2011.
Stockholders' equity grew from $31.8 million at September 30, 2010 to $35.4 million at September 30, 2011. The bank was "well capitalized" at September 30, 2011, with leverage, Tier 1 risk-based and total risk-based capital ratios of 10.54%, 14.71% and 15.97%, respectively.
"As challenges and weaknesses permeate throughout the banking industry, most notably with the larger money-center banks, we remain committed to our core business model, the continued success of which is reflective in our third quarter of earnings of the bank. We believe the bank is positioned to effectively navigate these challenging times and capitalize on opportunities if and when they arise in the future," commented Thomas M. Buonaiuto, President and Chief Operating Officer.
Empire National Bank specializes in serving the financial needs of small and mid-sized privately owned businesses, professionals, nonprofit organizations, real estate investors, and consumers. The bank has three banking offices located in Islandia, Shirley and Port Jefferson Station. Its bankers take pride in understanding the needs of each and every customer so the bank can deliver the highest quality service with a sense of urgency.
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate" or "continue," or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within Empire National Bank's control. The forward looking statements included in this report are made only as of the date of this report. We have no intention, and do not assume any obligation, to update these forward looking statements.
Contact:
William Franz
VP, Director of Marketing & Investor Relations
(631) 348-4444
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Datum: 18.10.2011 - 06:30 Uhr
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