Sturgis Bancorp Reports Earnings for Second Quarter 2013
(firmenpresse) - STURGIS, MI -- (Marketwired) -- 07/17/13 -- . (OTCBB: STBI) today announced net income of $436,000 for the second quarter of 2013.
Sturgis Bancorp is the holding company for (Bank), and its subsidiaries and Sturgis Bancorp provides a full array of trust, commercial and consumer banking services from 11 banking centers in Sturgis, Bronson, Centreville, Climax, Colon, South Haven, Three Rivers and White Pigeon, Mich. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Oak Mortgage offers residential mortgages in all markets of the Bank.
Key Highlights as of June 30, 2013:
Net income was $436,000 for the second quarter of 2013, compared to $502,000 for the second quarter of 2012.
The Bank maintained strong capital ratios, exceeding "well-capitalized" requirements, with Tier 1 capital at 8.85%. Total capital at June 30, 2013 was 14.58% of risk-weighted assets.
Nonaccrual and past due loans decreased from December 31, 2012.
Total deposits decreased 0.9% to $232.9 million, mostly in temporary municipal deposits.
Allowance for loan losses was 1.95% of loans, down slightly from 2.03% at the end of 2012.
President and CEO Eric L. Eishen stated: "Credit quality continues to improve and earnings are stable. Capital ratios are the strongest they have been since I took leadership of the Bank. I am pleased we have navigated the financial crisis and come out a stronger bank. Management will continue to focus on improving earnings and expense control. The low sustained rates are problematic for the industry and regulatory expectations are increasing. We are confident the Bank is in excellent position to return to normal operations, as soon as the economic conditions have stabilized. Loan demand is weak and the increase in mortgage rates has slowed down mortgage refinance activity. We continue to be the market leader in St. Joseph County and real estate purchase activity is improving."
- Net income for the three months ended June 30, 2013 was $436,000, or $0.21 per share, compared to net income of $502,000, or $0.25 per share, for the three months ended June 30, 2013. The tax equivalent net interest margin decreased to 3.29% in 2013 from 3.52% in 2012.
Noninterest income was $1.2 million in the second quarters of 2013 and 2012. Investment brokerage commission income increased to $494,000 in the second quarter of 2013, compared to $417,000 in the second quarter of 2012. Mortgage banking activities decreased to $213,000 in 2013, as loan sale volume slowed.
Noninterest expense increased to $3.1 million in 2013, compared to $2.9 million in 2012. Salaries and employee benefits increased $147,000, or 9.4%, to $1.7 million, due to increased health insurance benefit expense, salary adjustments, and commissions earned. Real estate owned expense of $182,000 included $124,000 written down for the carrying value of foreclosed assets.
The Company provided ($154,000) to the allowance for loan losses in the second quarter of 2013, compared to ($11,000) in the same quarter of 2012. Net charge-offs were $76,000 in the second quarter of 2013, compared to $316,000 in the second quarter of 2012.
- Net income for the six months ended June 30, 2013 was $938,000, or $0.46 per share, compared to net income of $1.0 million, or $0.50 per share, for the six months ended June 30, 2012. The tax equivalent net interest margin decreased to 3.42% in 2013 from 3.53% in 2012.
Noninterest income was $2.5 million in the first half of 2013, compared to $2.2 million in the first half of 2012. The increase is primarily in investment brokerage commission income, which increased to $958,000 in the first half of 2013, compared to $716,000 in the first half of 2012.
Noninterest expense increased to $6.3 million in 2013, compared to $5.7 million in 2012. Salaries and employee benefits increased $274,000, or 8.7%, to $3.4 million, due to increased health insurance benefit expense, salary adjustments, and commissions earned. Real estate owned expense of $485,000 included $326,000 written down for the carrying value of foreclosed assets.
The Company provided ($243,000) to the allowance for loan losses in the first half of 2013, compared to ($9,000) in the first half of 2012. Net charge-offs were $152,000 in the first half of 2013, compared to $411,000 in the first half of 2012.
Total assets decreased to $316.1 million at June 30, 2013 from $317.1 million at December 31, 2012, primarily in loans. Loans decreased $10.3 million from December 31, 2012, primarily in Commercial Mortgage and Commercial Nonmortgage Loans.
Cash and cash equivalents increased $9.9 million to $29.7 million.
Noninterest-bearing deposits increased by $592,000 at June 30, 2013 from $41.3 million at December 31, 2012. Interest-bearing deposits decreased to $191.1 million at June 30, 2013 from $193.7 million at December 31, 2012. These decrease in interest-bearing deposits includes $4.0 million decrease in brokered certificates of deposit. The number of checking accounts continues to increase, as the Bank continues to expand its customer base.
Total equity was $27.7 million at June 30, 2013, compared to $26.9 million at December 31, 2012. Book value per share increased to $13.53 at June 30, 2013 from $13.21 at December 31, 2012.
This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates or expectations of Bancorp, primarily with respect to future events and the future financial performance of the Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statement. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending and future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes of the world, national and local economies. Bancorp undertakes no obligation to update, amend or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.
For additional information, visit our website at .
Contacts:
Sturgis Bancorp
Eric Eishen
President & CEO
or
Brian P. Hoggatt
CFO
P: 269 651-9345
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Datum: 17.07.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 1246282
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