Sturgis Bancorp Reports Earnings for Third Quarter 2014
(firmenpresse) - STURGIS, MI -- (Marketwired) -- 11/13/14 -- . (OTCQB: STBI) today announced net income of $330,000 for the third quarter of 2014.
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 September 30, 2014:
Net income was $330,000 for the third quarter of 2014, compared to $467,000 for the third quarter of 2013.
The Bank maintained strong capital ratios, exceeding "well-capitalized" requirements, with Tier 1 capital at 9.74%. Total capital at September 30, 2014 was 15.84% of risk-weighted assets.
Total deposits increased 5.0% from December 31, 2013 to $240.4 million, mostly in noninterest-bearing deposit accounts.
Allowance for loan losses was 1.47% of loans, down from 1.74% at the end of 2013.
-- Net income for the three months ended September 30, 2014 was $330,000, or $0.16 per share, compared to net income of $467,000, or $0.23 per share, for the three months ended September 30, 2013. The tax equivalent net interest margin increased to 3.51% in 2014 from 3.37% in 2013.
Noninterest income was $1.5 million in the third quarter of 2014, compared to $1.3 million in the third quarter of 2013. Investment brokerage commission income, the largest component of noninterest income, increased to $778,000 in the third quarter of 2014, compared to $481,000 in the third quarter of 2013. Mortgage banking activities income decreased to $119,000 in 2014 from $267,000 in 2013, as loan sale volume slowed.
Noninterest expense increased to $3.2 million in 2014, compared to $3.1 million in 2013. Salaries and employee benefits increased $115,000, or 6.7%, to $1.8 million. The premium for FDIC deposit insurance decreased to $57,000 in the third quarter of 2014 from $108,000 in 2013. Noninterest expense in the third quarter of 2014 included $101,000 of legal, audit, and investment banker fees related to the pending acquisition of West Michigan Savings Bank in Bangor, MI.
The Company provided $307,000 to the allowance for loan losses in the third quarter of 2014, compared to $8,000 in the same quarter of 2013. Net charge-offs were $459,000 in the third quarter of 2014, compared to $208,000 in the third quarter of 2013.
-- Net income for the nine months ended September 30, 2013 was $1.4 million, or $0.69 per share, unchanged from $1.4 million, or $0.69 per share, for the nine months ended September 30, 2013. The tax equivalent net interest margin increased to 3.59% in 2014 from 3.41% in 2013.
Noninterest income was $3.8 million in the first nine months of 2014, compared to $3.9 million in the first nine months of 2013. The decrease is primarily in mortgage-banking activities, which decreased $325,000 to $484,000 in 2014. Investment brokerage commission income increased to $1.7 million in the first nine months of 2014, compared to $1.4 million in 2013.
Noninterest expense decreased to $9.2 million in 2014, compared to $9.4 million in 2013. Real estate owned expense of $242,000 in 2014 included $107,000 written down for the carrying value of foreclosed assets, compared to $358,000 written down in the first half of 2013. The premium for FDIC deposit insurance decreased to $172,000 in the first nine months of 2014, compared to $323,000 for the first nine months of 2013. Noninterest expense in the first nine months of 2014 included $102,000 of legal, audit, and investment banker fees related to the pending acquisition of West Michigan Savings Bank in Bangor, MI.
The Company provided $112,000 to the allowance for loan losses in the first nine months of 2014, compared to ($243,000) in the first nine months of 2013. Net charge-offs were $733,000 in the first nine months of 2014, compared to $360,000 in the first nine months of 2013.
Total assets increased to $318.3 million at September 30, 2014 from $305.0 million at December 31, 2013, primarily in securities held-to-maturity. Loans increased $2.2 million from December 31, 2013, primarily due to purchased loans guaranteed by the U.S. Government.
Cash and cash equivalents increased $2.7 million to $23.6 million.
Noninterest-bearing deposits increased by $10.2 million at September 30, 2014 from $41.7 million at December 31, 2013. Interest-bearing deposits also increased to $188.5 million at September 30, 2014 from $187.3 million at December 31, 2013. Brokered certificates of deposits decreased by $3.7 million to $4.0 million at September 30, 2014.
Total equity was $30.1 million at September 30, 2014, compared to $28.5 million at December 31, 2013. Book value per share increased to $14.41 at June 30, 2014 from $13.89 at December 31, 2013. The Company reinstated regular quarterly dividends in 2014, paying $0.02 per common share in each quarter and announcing $0.03 for the fourth quarter of 2014.
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: 13.11.2014 - 06:24 Uhr
Sprache: Deutsch
News-ID 1318056
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