Sturgis Bancorp Reports Earnings for Second Quarter 2016
(firmenpresse) - STURGIS, MI -- (Marketwired) -- 07/20/16 -- . (OTCQX: STBI) today announced net income of $705,000 for the second quarter of 2016.
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 for the second quarter of 2016:
Net income for the second quarter of 2016 was $705,000, compared to $706,000 for the second quarter of 2015.
The Bank maintained strong capital ratios, exceeding "well-capitalized" requirements, with Tier 1 leverage capital at 8.50%. Total capital at June 30, 2016 was 14.44% of risk-weighted assets. The Bank''s risk-weighted assets were $242.0 million at June 30, 2016.
Total assets increased 4.6% to $382.9 million, led by $9.1 million growth in loans.
Total deposits increased 5.3% to $299.2 million, mostly in municipal deposits.
Allowance for loan losses was 1.25% of loans, unchanged from December 31, 2016.
- Net income for the three months ended June 30, 2016 was $705,000, or $0.34 per share, compared to net income of $706,000, or $0.34 per share, for the three months ended June 30, 2015. The tax equivalent net interest margin increased to 3.78% in the three months ended June 30, 2016 from 3.55% in 2015.
Net interest income increased by $407,000 in the three months ended June 30, 2016, primarily due to growth in securities and loans.
Noninterest income was $1.4 million in the second quarter of 2016, compared to $1.9 million in the second quarter of 2015. The Bank received $700,000 of death benefit in excess of recorded cash value from bank-owned life insurance in the second quarter of 2015. Income from mortgage banking activities increased to $196,000 from $133,000 in 2015.
Noninterest expense was $3.4 million in the second quarter of 2016, compared to $3.8 million in 2015. Most of the decrease was due to the 2015 acquisition of West Michigan Savings Bank, with most acquisition expenses recorded in the second quarter of 2015.
Salaries and employee benefits, the largest component of noninterest expense, increased $46,000, partially due to staffing requirements of the acquired Bank.
The Company provided $88,000 to the allowance for loan losses in the second quarter of 2016, compared to $113,000 in the same quarter of 2015. Net charge-offs were $35,000 in 2016, compared to $140,000 in 2015.
- Net income for the six months ended June 30, 2016 was $1.3 million, or $0.62 per share, compared to net income of $1.1 million, or $0.53 per share, for the six months ended June 30, 2015. The tax equivalent net interest margin increased to 3.76% in the first half of 2016 from 3.54% in the first half of 2015.
Net interest income increased by $978,000 in the first half of 2016, primarily due to net earning assets acquired from West Michigan Savings Bank and additional growth in securities and loans.
Noninterest income was $2.6 million in the first half of 2016, compared to $3.3 million in the first half of 2015. The Bank received $700,000 of death benefit in excess of recorded cash value from bank-owned life insurance in the second quarter of 2015.
Noninterest expense was $6.8 million in the first half of 2016, compared to $7.1 million in 2015. Most of the decrease was due to the 2015 acquisition of West Michigan Savings Bank, with most acquisition expenses recorded in the second quarter of 2015. Salaries and employee benefits, the largest component of noninterest expense, remained unchanged at $3.8 million.
The Company provided $182,000 to the allowance for loan losses in the first half of 2016, compared to $28,000 in the first half of 2015. Net charge-offs were $104,000 in 2016, compared to $123,000 in 2015.
Total assets increased to $382.9 million at June 30, 2016 from $368.6 million at December 31, 2015, primarily in loans. Loans increased $9.1 million from December 31, 2015. Most of the increase in loans was in Commercial loans.
Noninterest-bearing deposits increased to $69.9 million at June 30, 2016 from $65.0 million at December 31, 2015. Average noninterest-bearing deposits were $65.2 million for the three months ended June 30, 2016 and $64.0 million for the first half of 2016. Interest-bearing deposits also increased to $229.3 million at June 30, 2016 from $219.0 million at December 31, 2015. Average interest-bearing deposits were $233.8 million for the three months ended June 30, 2016 and $228.8 million for the first half of 2016. Brokered deposits increased $5.3 million to $13.0 million at June 30, 2016. The growth in deposits allowed borrowed funds to decrease by $3.7 million to $44.1 million at June 30, 2016.
Total equity was $33.4 million at June 30, 2016, compared to $32.6 million at December 31, 2015. Book value per share increased to $16.04 ($12.48 tangible) at June 30, 2016 from $15.70 ($12.08 tangible) at December 31, 2015. Average equity was $33.1 million for the three months ended June 30, 2016 and $32.9 million for the first half of 2016.
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: 20.07.2016 - 08:33 Uhr
Sprache: Deutsch
News-ID 1447984
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Retail Banking
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