ASB Bancorp, Inc. Reports First Quarter Results

ASHEVILLE, N.C., May 2, 2013 /PRNewswire/ -- ASB Bancorp, Inc. (the "Company") (NASDAQ GM: ASBB), the holding company for Asheville Savings Bank, S.S.B. (the "Bank"), announced today its operating results for the three month period ended March 31, 2013. The Company reported net income of $740,000 for the quarter ended March 31, 2013 compared to $284,000 for the same quarter of 2012. On a basic and diluted per share basis, the Company had net income of $0.15 per share and $0.06 per share for the three month periods ended March 31, 2013 and 2012, respectively.

(Logo: http://photos.prnewswire.com/prnh/20111031/CL96775LOGO )

"First quarter results indicate continued progress toward the goal of reducing nonperforming assets," said Suzanne S. DeFerie, President and Chief Executive Officer. "Additionally, increases in both core deposits and loan balances support our focus on net interest margin improvement, which will improve our profitability now and for the sustainable future."

First Quarter Highlights

  • Net income for the first quarter of 2013 improved to $740,000, or $0.15 per basic and diluted share.
  • Loans increased $7.8 million to $395.5 million as new loan originations exceeded loan repayments, prepayments and foreclosures.   
  • Nonperforming loans increased to $1.5 million, or 0.39% of total loans, at March 31, 2013 from $1.2 million, or 0.30% of total loans, at December 31, 2012.       
  • Delinquent loans totaled $3.1 million, or 0.77% of total loans, at March 31, 2013, a decrease from $3.2 million, or 0.82% of total loans, at December 31, 2012.            
  • Nonperforming assets decreased $900,000 to $19.7 million, or 2.60% of total assets, at March 31, 2013 from $20.6 million, or 2.74% of total assets, at December 31, 2012 and have improved in each quarter since the fourth quarter of 2011.
  • Core deposits, or deposits excluding time deposits, increased $9.2 million to $398.3 million at March 31, 2013 from $389.1 million at December 31, 2012 and have increased in each of the previous four quarters.  Since December 31, 2012, non-interest-bearing deposits increased $3.1 million, or 4.7%.
  • Book value per share increased $0.28 to $20.25 at the end of the first quarter of 2013.
  • The Company completed a 5% stock repurchase plan during the first quarter of 2013.  Under the plan, 279,228 shares of common stock were repurchased at an average cost of $16.52 per share.

Balance Sheet Review

Assets. Total assets increased $8.1 million, or 1.1%, to $757.5 million at March 31, 2013 from $749.4 million at December 31, 2012. Cash and cash equivalents increased $2.9 million, or 6.2%, to $50.3 million at March 31, 2013 from $47.4 million at December 31, 2012. Investment securities increased $18.5 million, or 7.6%, to $261.9 million at March 31, 2013 from $243.4 million at December 31, 2012, primarily due to the reinvestment of proceeds from the sale of investment securities in the fourth quarter of 2012 that settled in the first quarter of 2013. Loans receivable, net of deferred fees, increased $7.8 million, or 2.0%, to $395.5 million at March 31, 2013 from $387.7 million at December 31, 2012 as new loan originations exceeded loan repayments, prepayments, and foreclosures.

Liabilities. Total deposits increased $11.3 million, or 2.0%, to $589.6 million at March 31, 2013 from $578.3 million at December 31, 2012. During the three months ended March 31, 2013, the Company continued its focus on core deposit growth, from which it excludes certificates of deposit. Core deposits increased $9.2 million, or 2.4%, to $398.3 million at March 31, 2013 from $389.1 million at December 31, 2012. Non-interest-bearing deposits increased $3.1 million, or 4.7%, to $68.4 million at March 31, 2013 from $65.3 million at December 31, 2012. Over the same period, certificates of deposit increased $2.1 million, or 1.1%, to $191.3 million at March 31, 2013 from $189.2 million at December 31, 2012.

Asset Quality

Provision for Loan Losses. The provision for loan losses was $112,000 for the three months ended March 31, 2013 compared to $598,000 for the three months ended March 31, 2012. The decrease in the provision was primarily due to a decrease in charge-offs, which were $105,000 for the first three months of 2013 compared to $716,000 million for the first three months of 2012.

Nonperforming assets. Nonperforming assets totaled $19.7 million, or 2.60% of total assets, at March 31, 2013, compared to $20.6 million, or 2.74% of total assets, at December 31, 2012. Nonperforming assets included $1.5 million in nonperforming loans and $18.1 million in foreclosed real estate at March 31, 2013, compared to $1.2 million and $19.4 million, respectively, at December 31, 2012.

Nonperforming loans increased $397,000, or 34.5%, to $1.5 million at March 31, 2013 from $1.2 million at December 31, 2012. The increase in nonperforming loans to March 31, 2013 from December 31, 2012 was primarily attributable to the addition of one loan that stopped performing during the period. At March 31, 2013, nonperforming loans included one commercial mortgage in the amount of $389,000, three commercial and industrial loans that totaled $204,000, ten residential mortgage loans that totaled $830,000, and one home equity loan in the amount of $95,000. As of March 31, 2013, the nonperforming loans had specific reserves of $191,000.

Foreclosed real estate at March 31, 2013 included 14 properties with a total carrying value of $18.1 million compared to 18 properties with a total carrying value of $19.4 million at December 31, 2012. During the three months ended March 31, 2013, there was one new property in the amount of $40,000 added to foreclosed real estate, while five properties totaling $1.3 million were sold, including one with a private mortgage insurance settlement pending. The Bank also added $59,000 in loss provisions.

The Bank's largest foreclosed property resulted from a loan relationship that had an original purpose of constructing a mixed-use retail, commercial office, and residential condominium project located in western North Carolina. As a result of this foreclosure, the Bank acquired (1) 44 of the 48 condominium units in the building including all eight of the retail units, three of which are leased, (2) eight of the eleven commercial office condominiums, three of which were sold by the developer prior to the foreclosure, and (3) 28 of the 29 residential units, one of which was sold by the developer prior to the foreclosure. Following an additional write-down of approximately $630,000 on the loans secured by this collateral in the fourth quarter of 2012, the Bank recorded this foreclosed property in the amount of $9.8 million.

Income Statement Analysis

Net Interest Income. Net interest income was $4.6 million for each of the three-month periods ended March 31, 2013 and March 31, 2012. Total interest and dividend income decreased by $793,000, or 12.1%, to $5.7 million for the three months ended March 31, 2013 compared to $6.5 million for the three months ended March 31, 2012. The decrease in interest and dividend income was primarily a result of a 12 basis point decrease in yields on interest-earning assets, a $31.6 million decrease in average loan balances, and a $20.9 million decrease in the average balances of all other interest-earning assets, including investments. The decline in total interest and dividend income was offset by a $802,000, or 41.8%, decrease in interest expense to $1.1 million for the three months ended March 31, 2013 compared to $1.9 million for the three months ended March 31, 2012. The decrease in interest expense resulted from a 46 basis point reduction in the average rate paid on interest-bearing liabilities and a decline of $48.2 million in the average balances of interest-bearing liabilities, reflecting a fourth quarter 2012 $10.0 million prepayment of a FHLB advance, when comparing the three-month periods.

Noninterest Income. Noninterest income decreased $70,000 to $1.9 million for the three months ended March 31, 2013 from $2.0 million for the three months ended March 31, 2012. Factors that contributed to the decrease in noninterest income during the 2013 period were decreases of $509,000 in gains on sale of investment securities and $116,000 in service charge income, partially offset by increases of $261,000 in mortgage banking income and $242,000 in other noninterest income, primarily related to an increase of $114,000 in other income from a SBIC investment. The increase in mortgage banking income was attributable to higher volumes of mortgage loans sold. The decrease in deposit and other service charge income was primarily the result of lower deposit overdraft fees.

Noninterest Expense. Noninterest expense decreased $246,000, or 4.4%, to $5.3 million for the three months ended March 31, 2013 compared to $5.6 million for the three months ended March 31, 2012. The primary reasons for the decrease were decreases of $181,000 in salaries and benefits, and $58,000 in professional and outside services, which were partially offset by an increase of $53,000 in foreclosed property expenses. The decrease in salaries and benefits was primarily due to a $481,000 one-time credit to pension expense resulting from the curtailment of benefits for future service, that was partially offset by increases of $164,000 in expenses related to the Bank's new equity incentive plan and $126,000 in compensation expenses. The increase in foreclosed property expenses related primarily to the increase in the loss provision compared to the prior year.

The Bank is a North Carolina chartered stock savings bank with a community focus offering traditional financial services through thirteen full-service banking centers located in Buncombe, Madison, McDowell, Henderson, and Transylvania counties in Western North Carolina.

This news release, as well as other written communications made from time to time by the Company and its subsidiaries and oral communications made from time to time by authorized officers of the Company, may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Company cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services and other factors that may be described in the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Contact:
Suzanne S. DeFerie  
Chief Executive Officer  
(828) 254-7411 

 

Selected Financial Condition Data




































 March 31, 


 December 31, 



(dollars in thousands)








2013


2012*


% change
















Total assets










$ 757,522


$ 749,354


1.1%

Cash and cash equivalents







50,321


47,390


6.2%

Investment securities








261,880


243,385


7.6%

Loans receivable, net of deferred fees






395,540


387,721


2.0%

Allowance for loan losses








(8,553)


(8,513)


-0.5%

Deposits










589,626


578,299


2.0%

Core deposits








398,338


389,095


2.4%

FHLB advances








50,000


50,000


0.0%

Accounts payable and other liabilities






9,845


9,115


8.0%

Total equity










107,433


111,529


-3.7%

* Derived from audited consolidated financial statements. 







 

Selected Operating Data



























(dollars in thousands,



 Three Months Ended  

except per share data)



 March 31, 











2013


2012*


% change
















Interest and















  dividend income








$   5,746


$    6,539


-12.1%

Interest expense








1,117


1,919


-41.8%

Net interest income








4,629


4,620


0.2%

Provision for loan losses








112


598


-81.3%

Net interest income













  after provision for













  loan losses









4,517


4,022


12.3%

Noninterest income








1,888


1,958


-3.6%

Noninterest expense








5,320


5,566


-4.4%

Income before













  income tax 













  provision










1,085


414


162.1%

Income tax















  provision










345


130


165.4%

Net income










$       740


$      284


160.6%
















Net income per













  common share:













  Basic










$     0.15


$     0.06


150.0%

  Diluted










$     0.15


$     0.06


150.0%

*   Certain amounts for prior periods were reclassified to conform to the March 31, 2013 presentation.


 

Selected Average Balances and Yields/Costs






























For the Three Months Ended March 31,









2013


2012









 Average 


 Yield/ 


 Average 


 Yield/ 

(dollars in thousands)






 Balance 


 Cost 


 Balance 


 Cost 
















Interest-earning deposits with banks




$  43,378


0.38%


$  67,892


0.32%

Loans receivable






399,645


4.67%


431,202


4.76%

Investment securities






67,780


2.87%


62,722


2.31%

Mortgage-backed and similar securities




192,657


1.50%


193,644


2.17%

Other interest-earning assets




3,406


2.38%


3,873


1.77%

Interest-bearing deposits






512,603


0.50%


550,690


0.96%

Federal Home Loan Bank advances




50,000


3.93%


60,000


4.03%
















Interest rate spread








2.56%




2.22%

Net interest margin








2.72%




2.47%

 

Selected Asset Quality Data



































 Three Months Ended  

Allowance for Loan Losses





 March 31, 

(dollars in thousands)










2013


2012
















Allowance for loan losses, beginning of period






$     8,513


$   10,627

Provision for loan losses










112


598
















Charge-offs











(105)


(716)

Recoveries












33


53

Net charge-offs










(72)


(663)
















Allowance for loan losses, end of period







$     8,553


$   10,562
















Allowance for loan losses as a percent of:









  Total loans











2.16%


2.54%

  Total nonperforming loans








552.52%


58.47%

 

Nonperforming Assets








 March 31, 


 December 31, 



(dollars in thousands)








2013


2012


% change
















Nonperforming Loans:













Nonaccruing Loans (1)













Commercial:














  Commercial construction and land development




$        -


$        40


-100.0%

  Commercial mortgage








389


-


n/a   

  Commercial and industrial






204


114


78.9%

  Total commercial








593


154


285.1%

Non-commercial:













  Residential mortgage








830


808


2.7%

  Revolving mortgage








95


155


-38.7%

  Consumer










30


34


-11.8%

  Total non-commercial








955


997


-4.2%

Total nonaccruing loans (1)






1,548


1,151


34.5%
















Total loans past due 90 or more days











    and still accruing








-


-


0.0%
















Total nonperforming loans







1,548


1,151


34.5%
















Foreclosed real estate








18,128


19,411


-6.6%
















Total nonperforming assets






19,676


20,562


-4.3%
















Performing troubled debt restructurings (2)




5,254


5,065


3.7%

Performing troubled debt restructurings and









 total nonperforming assets






$  24,930


$   25,627


-2.7%
















Nonperforming loans as a percent of total loans




0.39%


0.30%



Nonperforming assets as a percent of total assets




2.60%


2.74%



Performing troubled debt restructurings and









  total nonperforming assets to total assets




3.29%


3.42%



(1) Nonaccruing loans include nonaccruing troubled debt restructurings.





(2) Performing troubled debt restructurings exclude nonaccruing troubled debt restructurings.









Foreclosed Real Estate by Loan Type



 March 31, 2013 


 December 31, 2012 

(dollars in thousands)






 Number 


 Amount 


 Number 


 Amount 
















By foreclosed loan type:












Commercial mortgage






1


$       986


2


$  1,709

Commercial construction and land development


11


16,623


10


16,642

Residential mortgage






2


519


5


944

Residential construction






-


-


1


116

Total 








14


$  18,128


18


$ 19,411
















Foreclosed Real Estate








Three Months Ended 





(dollars in thousands)








 March 31, 2013 




















Beginning balance








$  19,411





Transfers from loans








40





Capitalized cost








5





Loss provisions








(59)





Gain on sale of foreclosed properties






65





Net proceeds from sales of foreclosed properties




(1,334)





Ending balance








$   18,128





 

Selected Average Balances and Performance Ratios































 Three Months Ended  










 March 31, 

(dollars in thousands)










2013


2012
















Selected Average Balances











Average total interest-earning assets








$706,866


$759,333

Average total assets










756,804


792,236

Average total interest-bearing deposits








512,603


550,690

Average total deposits










578,802


604,286

Average total interest-bearing liabilities








563,232


611,469

Average total stockholders' equity








110,529


116,421
















Selected Performance Ratios











Return on average assets (1)








0.40%


0.14%

Return on average equity (1)








2.72%


0.98%

Interest rate spread (1) (2)









2.56%


2.22%

Net interest margin (1) (3)









2.72%


2.47%

Noninterest expense to average assets (1)






2.85%


2.83%

Efficiency ratio (4)










80.30%


84.14%

(1) Ratios are annualized.












(2) Represents the difference between the weighted average yield on average interest-earning assets and the  

     weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax 

     equivalent basis using a federal marginal tax rate of 34%.







(3) Represents net interest income as a percent of average interest-earning assets. Tax exempt income is 

     reported on a tax equivalent basis using a federal marginal tax rate of 34%.




(4) Represents noninterest expenses divided by the sum of net interest income, on a tax equivalent basis

     using a federal marginal tax rate of 34%, and noninterest income.





















Quarterly Data


































 Three Month Periods Ended 

(dollars in thousands,




 March 31, 


 December 31, 


 September 30, 


 June 30, 


 March 31, 

except per share data)




2013


2012*


2012*


2012*


2012*
















Income Statement Data:













Interest and dividend income


$     5,746


$     5,967


$     6,088


$     6,398


$     6,539

Interest expense




1,117


1,303


1,527


1,743


1,919

Net interest income




4,629


4,664


4,561


4,655


4,620

Provision for (recovery of) loan losses


112


(733)


542


1,293


598

Net interest income after













  provision for loan losses



4,517


5,397


4,019


3,362


4,022

Noninterest income




1,888


3,083


2,416


1,999


1,958

Noninterest expense




5,320


8,178


5,760


5,588


5,566

Income (loss) before income 











  tax provision (benefit)




1,085


302


675


(227)


414

Income tax provision (benefit)


345


67


218


(113)


130

Net income (loss)




$       740


$       235


$       457


$      (114)


$       284
















Per Share Data:













Net income (loss) per share – Basic


$      0.15


$      0.05


$      0.09


$     (0.02)


$      0.06

Net income (loss) per share – Diluted


$      0.15


$      0.05


$      0.09


$     (0.02)


$      0.06

Book value per share




$    20.25


$    19.97


$    20.99


$     20.79


$    20.66

Ending shares outstanding



5,305,323


5,584,551


5,584,551


5,584,551


5,584,551






















 As Of 


 As Of 


 As Of 


 As Of 


 As Of 







 March 31, 


 December 31, 


 September 30, 


 June 30, 


 March 31, 

(dollars in thousands)




2013


2012**


2012


2012


2012
















Ending Balance Sheet Data:











Total assets






$ 757,522


$ 749,354


$ 772,407


$ 798,667


$ 796,901

Cash and cash equivalents



50,321


47,390


50,583


73,475


80,087

Investment securities




261,880


243,385


281,166


284,671


264,782

Loans receivable, net of deferred fees


395,540


387,721


402,724


409,140


416,307

Allowance for loan losses




(8,553)


(8,513)


(10,220)


(11,563)


(10,562)

Deposits






589,626


578,299


586,686


606,022


610,242

Core deposits




398,338


389,095


379,237


375,478


359,350

FHLB advances




50,000


50,000


60,000


60,000


60,000

Total equity






107,433


111,529


117,225


116,079


115,360
















Asset Quality:













Nonperforming loans




$     1,548


$     1,151


$   12,724


$   18,232


$   18,063

Nonperforming assets




19,676


20,562


24,324


26,847


27,198

Nonperforming loans to total loans


0.39%


0.30%


3.16%


4.46%


4.34%

Nonperforming assets to total assets


2.60%


2.74%


3.15%


3.36%


3.41%

Allowance for loan losses




$     8,553


$     8,513


$   10,220


$   11,563


$   10,562

Allowance for loan losses to total loans


2.16%


2.20%


2.54%


2.83%


2.54%

Allowance for loan losses to











  nonperforming loans




552.52%


739.62%


80.32%


63.42%


58.47%

*   Certain amounts for prior periods were reclassified to conform to the March 31, 2013 presentation.






     The reclassifications had no effect on net income or equity as previously reported.





** Ending balance sheet data as of December 31, 2012 were derived from audited consolidated financial statements.

 

SOURCE ASB Bancorp, Inc.



RELATED LINKS
http://www.ashevillesavings.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.