Sturgis Bancorp Reports Earnings for Third Quarter 2015
(firmenpresse) - STURGIS, MI -- (Marketwired) -- 10/14/15 -- . (OTCQX: STBI) today announced net income of $534,000 for the third quarter of 2015.
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 12 banking centers in Sturgis, Bangor, 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, 2015:
Net income was $534,000 for the third quarter of 2015, compared to $330,000 for the third quarter of 2014.
The Bank successfully completed its acquisition of The West Michigan Savings Bank in Bangor, Michigan, which is now operating as a branch office of the Bank.
The Bank maintained strong capital ratios, exceeding "well-capitalized" requirements, with Tier 1 capital at 8.49%. Total Bank capital at September 30, 2015 was 14.29% of risk-weighted assets.
Total deposits increased by $43.7 million in the first nine months of 2015, to $277.9 million, mostly due to the $32.6 million deposits assumed in the bank acquisition.
Nonaccrual and past due loans decreased in the first nine months of 2015.
Allowance for loan losses was 1.28% of loans, down from 1.43% at the end of 2014.
- Net income for the three months ended September 30, 2015 was $534,000, or $0.26 per share, compared to net income of $330,000, or $0.16 per share, for the three months ended September 30, 2014. The tax equivalent net interest margin increased to 3.66% in 2015 from 3.65% in 2014.
Net interest income increased by $379,000 in the third quarter of 2015, primarily due to growth in net interest-bearing assets from the bank acquisition and changes in the Bank''s investment portfolio.
Noninterest income was $1.4 million in the third quarter of 2015, compared to $1.5 million in the third quarter of 2014, primarily due to lower brokerage commission income. Mortgage banking activities increased to $190,000 in 2015, due to more loans originated for sale.
Noninterest expense was $3.5 million in 2015, compared to $3.2 million in 2014. Salaries and employee benefits increased $106,000, due to higher pension expense and staff for the acquired bank. Data processing expense increased with the acquired accounts now on the Bank''s computer system. Real estate owned expense of $242,000 in 2015 included $180,000 written down in the third quarter of 2015, compared to $22,000 written down in the third quarter of 2014.
The Bank provided ($31,000) to the allowance for loan losses in the third quarter of 2015, compared to $307,000 in the same quarter of 2014. Net charge-offs were $15,000 in the third quarter of 2015, compared to $459,000 in the third quarter of 2014.
- Net income for the nine months ended September 30, 2015 was $1.6 million, or $0.79 per share, compared to $1.4 million, or $0.69 per share, in the nine months ended September 30, 2014. The tax equivalent net interest margin decreased to 3.58% in 2015 from 3.59% in 2014.
Noninterest income was $4.7 million in the first nine months of 2015, compared to $3.8 million in the first nine months of 2014. The Bank received $700,000 of death benefit in excess of recorded cash value from bank-owned life insurance in the first half of 2015. Gain on sale of real estate increased to $92,000 in 2015, compared to $10,000 in 2014. Commission income decreased $97,000 to $1.6 million in 2015.
Noninterest expense was $10.7 million in 2015, compared to $9.1 million in 2014. The Bank incurred $563,000 of acquisition-related expense in the first nine months of 2015. Compensation expense increased $541,000, primarily due to pension funding. The Company made an elective additional contribution to fund pension liabilities in 2015, which increased nine-month expense by $274,000, compared to 2014.
The Company provided ($4,000) to the allowance for loan losses in the first nine months of 2015, compared to $112,000 in the first nine months of 2014. Net charge-offs were $138,000 in the first nine months of 2015, compared to $733,000 in the first nine months of 2014.
Total assets increased to $362.3 million at September 30, 2015 from $312.5 million at December 31, 2014, primarily due to $35.3 million from the bank acquisition. Most of the increase was in securities. Loans also increased $17.2 million from December 31, 2014, including $11.2 million from the bank acquisition.
Deposits increased by $43.7 million in the first nine months of 2015, to $277.9 million, mostly due to the $32.6 million deposits assumed in the bank acquisition.
Total equity was $31.8 million at September 30, 2015, compared to $30.4 million at December 31, 2014. Book value per share increased to $15.31 at September 30, 2015 from $14.66 at December 31, 2014.
- On April 6, 2015, the Company completed its acquisition of West Michigan Savings Bank in Bangor, Michigan, in an all-cash transaction valued at approximately $3.3 million. Liabilities assumed included $32.6 million of deposits and $690,000 in other liabilities. The assets acquired included $6.1 million of cash and cash equivalents, $17.4 million of available for sale securities, $11.2 million in loans, and $590,000 in other assets. The Company recognized $365,000 core deposit intangible and $962,000 in goodwill. The transaction incurred $755,000 of pre-tax expense, including $563,000 recorded in 2015. Most of the transaction expenses were professional services, data processing termination and conversion, and severance pay.
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: 14.10.2015 - 15:16 Uhr
Sprache: Deutsch
News-ID 1392282
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