Stewardship Financial Corporation Reports Earnings for Third Quarter of 2013
(firmenpresse) - MIDLAND PARK, NJ -- (Marketwired) -- 11/08/13 -- Stewardship Financial Corporation (NASDAQ: SSFN), parent of Atlantic Stewardship Bank, reported net income for the three and nine months ended September 30, 2013 of $522,000 and $1,805,000, respectively, compared to $328,000 and $780,000 for the corresponding three and nine month periods in 2012. After dividends on preferred stock and accretion, net income available to common shareholders for the current three month period was $352,000, or $0.06 per diluted common share, compared to $216,000, or $0.04 per diluted common share, for the three months ended September 30, 2012. For the first nine months of 2013, net income available to common shareholders was $1,342,000, or $0.23 per diluted common share, compared to $555,000, or $0.09 per diluted common share, during the same period in 2012.
Stewardship Financial Corporation's President and Chief Executive Officer Paul Van Ostenbridge commented, "We are pleased to report solid earnings combined with improving and stabilizing asset quality."
Net interest income was $5.6 million and $17.1 million for the three and nine months ended September 30, 2013, compared to $5.9 million and $17.9 million for the equivalent prior year periods. In addressing net interest income, Van Ostenbridge offered that "In this prolonged, low interest rate environment, compression in margins remains primarily attributable to reduced asset yields." The net interest margin for the current three and nine months ended September 30, 2013 of 3.49% and 3.60%, respectively, compared to 3.62% and 3.67% for the three and nine months ended September 30, 2012, respectively.
For the three and nine months ended September 30, 2013 the Corporation recorded a provision for loan losses of $900,000 and $3.4 million, respectively. Reflective of improvement in nonperforming assets, the current year levels show significant declines from the prior year loan loss provisions of $2.0 million and $6.7 million for the three and nine months ended September 30 2012, respectively.
Nonperforming assets at September 30, 2013 of $15.7 million, or 2.28% of total assets, represented a $12.3 million decline from the $28.0 million, or 4.10% of total assets, at September 30, 2012. Commenting on the Corporation's level of non-performing loans, Van Ostenbridge stated, "Despite the lengthy workout and foreclosure process, we are reassured by the decline in our level of nonperforming assets over the past twelve months and are committed to continue our focus on asset quality."
The Corporation reported noninterest income of $971,000 and $3.4 million for the three and nine months ended September 30, 2013, respectively, compared to $1.7 million and $4.6 million for the equivalent prior year periods. While the nine month period for 2013 included $537,000 as a result of a death benefit insurance payment received, the 2012 periods included greater gains realized from the sale of securities. The gains for the three months ended September 30, 2012 reflected a transaction executed to lower the Company's risk exposure to rising interest rates and deleverage the balance sheet through the partial prepayment of a higher costing wholesale repurchase agreement. The resulting prior year gain was partially offset by a prepayment premium, which is included as a component of other noninterest expense.
Noninterest expenses for the three and nine months ended September 30, 2013 were $4.9 million and $14.9 million as compared to $5.2 million and $14.8 million in the comparable prior year periods. Included in noninterest expenses in the prior year periods is a $691,000 prepayment premium incurred with the repayment of the above noted wholesale repurchase agreement. While the Corporation remains dedicated to controlling expenses, an increase in noninterest expenses, excluding the prior year one-time charge, is partially due to higher salary and employee benefits expense. Such increase is reflective of staffing necessary to address both increasing regulatory compliance as well the increase in staffing required to focus on commercial lending opportunities and an enhanced credit review function.
At September 30, 2013 total assets were $689.2 million, generally unchanged from the $688.4 million of assets at December 31, 2012. The loan portfolio balance remained relatively flat when compared to December 31, 2012, as a result of the new loan production being offset by loan workouts as well as payoffs and normal principal amortization.
Deposits were $577.2 million at September 30, 2013, compared to deposits of $590.3 million at December 31, 2012. Average core deposit balances continue to see growth. Noninterest-bearing deposits now total $139.9 million, or 24.2% of total deposits at September 30, 2013, up from $124.3 million, or 21.1% at December 31, 2012.
As a summary, Van Ostenbridge stated, "Based on the progress we have seen over the past year, we have demonstrated our commitment to improving asset quality and remain encouraged and confident in our ability to continue to show progress in this goal."
Stewardship Financial Corporation's subsidiary, Atlantic Stewardship Bank, has 13 banking offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock,Ridgewood, Waldwick, Wayne (3), Westwood and Wyckoff, New Jersey. The Bank is known for tithing 10% of its pre-tax profits to Christian and local charities.
We invite you to visit our website at for additional information.
The information disclosed in this document contains certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which forward looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "plan," "estimate," and "potential." Examples of forward looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Corporation that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include: changes in general, economic and market conditions, legislative and regulatory conditions, or the development of an interest rate environment that adversely affects the Corporation's interest rate spread or other income anticipated from operations and investments.
Contact:
Claire M. Chadwick
EVP and Chief Financial Officer
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 08.11.2013 - 15:01 Uhr
Sprache: Deutsch
News-ID 1281275
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
MIDLAND PARK, NJ
Phone:
Kategorie:
Retail Banking
Anmerkungen:
Diese Pressemitteilung wurde bisher 109 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Stewardship Financial Corporation Reports Earnings for Third Quarter of 2013
"
steht unter der journalistisch-redaktionellen Verantwortung von
Stewardship Financial Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
