2014

OBA Financial Services, Inc. Announces 2nd Quarter Results

GERMANTOWN, Md., Jan. 24, 2012 /PRNewswire/ -- OBA Financial Services, Inc., (NASDAQ: OBAF) ("Company"), the parent company of OBA Bank ("Bank"), announces net income of $170 thousand, or $0.04 basic and diluted earnings per share, for the six months ended December 31, 2011 as compared to net income of $535 thousand, or $0.13 basic and diluted earnings per share, for the comparable period in the prior year. 

The Company announces its fiscal second quarter net income, which ended December 31, 2011, of $82 thousand, or $0.02 basic and diluted earnings per share, as compared to net income of $283 thousand, or $0.07 basic and diluted earnings per share, for the fiscal quarter ended December 31, 2010 and net income of $88 thousand, or $0.02 basic and diluted earnings per share, for the fiscal quarter ended September 30, 2011.

The Company's quarterly income was primarily impacted by an increase in non-interest expense of $137 thousand for the quarter ended December 31, 2011 as compared to the quarter ended December 31, 2010.  The Company's income for the six months ended December 31, 2011 was primarily impacted by an increase in non-interest expense of $388 thousand as compared to the six months ended December 31, 2010.  The increase in non-interest expense primarily reflects an increase in salaries and employee benefits as a result of  additions to staff and the implementation of, and grants under, the Company's equity incentive plan as previously disclosed in its 8-K filed on May 17, 2011.

Income Statement

The Company's net interest income for the quarter ended December 31, 2011 increased $68 thousand to $3.0 million as compared to the quarter ended September 30, 2011.  The Company continued to pay down higher cost borrowings, concluded its money market promotion, and decreased deposit rates while maintaining its competitive position within the local market.

The Company's net interest income for the quarter ended December 31, 2011 remained essentially unchanged at $3.0 million as compared to the fiscal quarter ended December 31, 2010.

Balance Sheet

Total assets decreased to $382.0 million at December 31, 2011 from $386.4 million at June 30, 2011.

Total loans decreased to $281.6 million at December 31, 2011 from $281.9 million at June 30, 2011.

Total deposits decreased to $251.9 million at December 31, 2011 from $257.0 million at June 30, 2011 primarily due to the completion of the money market promotion and a reduction in brokered certificates of deposit.

Equity and Capital

Stockholders' equity decreased to $75.9 million at December 31, 2011 as compared to $80.9 million at June 30, 2011 primarily as a result of the Company's share repurchase program.  The Company remains well-capitalized with ratios well in excess of regulatory minimums.

Asset Quality

Total non-performing assets to total assets increased to 1.74% at December 31, 2011 from 1.40% at June 30, 2011 and 0.18% at December 31, 2010.  Total non-performing loans to total loans increased to 2.34% at December 31, 2011 from 1.88% at June 30, 2011 and 0.16% at December 31, 2010.  The increases were primarily made up of two loan relationships with not-for-profit entities that have collateral values well in excess of the loan values.  Based on the value of the collateral, no specific allowances are required for these loans.

The allowance for loan losses to total loans increased to 0.93% at December 31, 2011 from 0.80% at June 30, 2011, and 0.76% at December 31, 2010.

About OBA Financial Services, Inc. and OBA Bank

OBA Financial Services, Inc. is the holding company for OBA Bank.  OBA Bank, founded in 1861, is a community-oriented bank which provides a variety of financial services to individuals and small businesses through its offices in Montgomery and Howard Counties of Maryland.  The Bank's primary deposits are demand, money market, and time certificate accounts and its primary lending products are residential and commercial mortgage loans.  Visit www.obabank.com to locate an ATM or branch near you or for more information about OBA Bank.

Forward-Looking Statements

When used in this Press Release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are subject to certain risks and uncertainties including, but not limited to, changes in economic conditions in OBA Bank's market area, changes in policies by regulatory agencies, changes in the Bank's regulator, fluctuations in interest rates, demand for loans in OBA Bank's market area, competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, and other risks described in the Company's filings with the Securities and Exchange Commission.  The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  The Company advises readers that the factors listed above could affect the Company's financial performance and could cause The Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

  

OBA Financial Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL SUMMARY

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

   Three Months Ended

 

 

 Three Months Ended

 

 

December 31,

 

 

September 30,

 

 

2011

 

2010

 

% Change

 

 

2011

 

% Change

 

RESULTS OF OPERATIONS:

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$      3,042

 

$      3,075

 

(1.1)

%

 

$      2,974

 

2.3

%

Provision for loan losses

229

 

245

 

(6.5)

 

 

147

 

55.8

 

Non-interest income

172

 

308

 

(44.2)

 

 

211

 

(18.5)

 

Non-interest expense

2,854

 

2,717

 

5.0

 

 

2,936

 

(2.8)

 

Income before taxes

131

 

421

 

(68.9)

 

 

102

 

28.4

 

Income tax

49

 

138

 

(64.5)

 

 

14

 

-

 

Net Income

82

 

283

 

(71.0)

 

 

88

 

(6.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$        0.02

 

$        0.07

 

(71.4)

%

 

$        0.02

 

-

%

Diluted earnings per share

0.02

 

0.07

 

(71.4)

 

 

0.02

 

-

 

Book value per common share

18.03

 

17.41

 

3.6

 

 

17.86

 

1.0

 

Tangible book value per common share

18.03

 

17.41

 

3.6

 

 

17.86

 

1.0

 

Weighted average shares - basic

3,924,869

 

4,272,387

 

(8.1)

 

 

4,193,848

 

(6.4)

 

Weighted average shares - diluted

3,924,869

 

4,272,387

 

(8.1)

 

 

4,193,881

 

(6.4)

 

Common shares outstanding

4,210,850

 

4,628,750

 

(9.0)

 

 

4,351,200

 

(3.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED RATIOS:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

0.08

%

0.31

%

 

 

 

0.09

%

 

 

Return on average equity

0.42

 

1.39

 

 

 

 

0.43

 

 

 

Net interest margin

3.59

 

3.76

 

 

 

 

3.52

 

 

 

Leverage ratio

19.76

 

22.67

 

 

 

 

19.45

 

 

 

Tier I risk-based capital ratio

29.85

 

32.74

 

 

 

 

30.88

 

 

 

Total risk-based capital ratio

30.88

 

33.63

 

 

 

 

31.85

 

 

 

Allowance for loan losses to total loans

0.93

 

0.76

 

 

 

 

0.85

 

 

 

Non-performing loans to total loans

2.34

 

0.16

 

 

 

 

2.18

 

 

 

Non-performing assets to total assets

1.74

 

0.18

 

 

 

 

1.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

END OF PERIOD BALANCES:

 

 

 

 

 

 

 

 

 

 

 

Investment securities

$    43,348

 

$    27,609

 

57.0

%

 

$    37,298

 

16.2

%

Total loans

281,560

 

286,011

 

(1.6)

 

 

281,999

 

(0.2)

 

Earning assets

347,526

 

325,864

 

6.6

 

 

338,926

 

2.5

 

Assets

382,017

 

354,216

 

7.8

 

 

396,659

 

(3.7)

 

Deposits

251,873

 

227,699

 

10.6

 

 

270,716

 

(7.0)

 

Borrowings

52,250

 

44,533

 

17.3

 

 

45,762

 

14.2

 

Stockholders' equity

75,927

 

80,596

 

(5.8)

 

 

77,721

 

(2.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES:

 

 

 

 

 

 

 

 

 

 

 

Investment securities

$    36,692

 

$    28,918

 

26.9

%

 

$    37,414

 

(1.9)

%

Total loans

279,095

 

283,779

 

(1.7)

 

 

280,418

 

(0.5)

 

Earning assets

336,618

 

324,547

 

3.7

 

 

335,444

 

0.3

 

Assets

383,968

 

363,743

 

5.6

 

 

392,649

 

(2.2)

 

Deposits

259,022

 

227,852

 

13.7

 

 

262,927

 

(1.5)

 

Borrowings

46,607

 

53,277

 

(12.5)

 

 

46,656

 

(0.1)

 

Stockholders' equity

76,806

 

80,881

 

(5.0)

 

 

80,328

 

(4.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OBA Financial Services, Inc.

 

 

 

 

 

 

FINANCIAL SUMMARY

 

 

 

 

 

 

(dollars in thousands, except per share data)

Six Months Ended

 

 

December 31,

 

 

2011

 

2010

 

% Change

 

RESULTS OF OPERATIONS:

 

 

 

 

 

 

Net interest income

$       6,016

 

$       6,042

 

(0.4)

%

Provision for loan losses

376

 

403

 

(6.7)

 

Non-interest income (loss)

383

 

561

 

(31.7)

 

Non-interest expense

5,790

 

5,402

 

7.2

 

Income (loss) before taxes

233

 

798

 

(70.8)

 

Income tax (benefit)

63

 

263

 

(76.0)

 

Net income (loss)

170

 

535

 

(68.2)

 

 

 

 

 

 

 

 

SHARE DATA:

 

 

 

 

 

 

Basic earnings (loss) per share

$         0.04

 

$         0.13

 

(69.2)

%

Diluted earnings (loss) per share

0.04

 

0.13

 

(69.2)

 

Book value per common share

18.03

 

17.41

 

3.6

 

Tangible book value per common share

18.03

 

17.41

 

3.6

 

Weighted average shares - basic

4,059,359

 

4,270,072

 

(4.9)

 

Weighted average shares - diluted

4,064,369

 

4,270,072

 

(4.8)

 

Common shares outstanding

4,210,850

 

4,628,750

 

(9.0)

 

 

 

 

 

 

 

 

SELECTED RATIOS:

 

 

 

 

 

 

Return on average assets

0.09

%

0.29

%

 

 

Return on average equity

0.43

 

1.31

 

 

 

Net interest margin

3.55

 

3.61

 

 

 

Leverage ratio

19.76

 

22.67

 

 

 

Tier I risk-based capital ratio

29.85

 

32.74

 

 

 

Total risk-based capital ratio

30.88

 

33.63

 

 

 

Allowance for loan losses to total loans

0.93

 

0.76

 

 

 

Non-performing loans to total loans

2.34

 

0.16

 

 

 

Non-performing assets to total assets

1.74

 

0.18

 

 

 

 

 

 

 

 

 

 

END OF PERIOD BALANCES:

 

 

 

 

 

 

Investment securities

$     43,348

 

$     27,609

 

57.0

%

Total loans

281,560

 

286,011

 

(1.6)

 

Earning assets

347,526

 

325,864

 

6.6

 

Assets

382,017

 

354,216

 

7.8

 

Deposits

251,873

 

227,699

 

10.6

 

Borrowings

52,250

 

44,533

 

17.3

 

Stockholders' equity

75,927

 

80,596

 

(5.8)

 

 

 

 

 

 

 

 

AVERAGE BALANCES:

 

 

 

 

 

 

Investment securities

$     37,053

 

$     30,356

 

22.1

%

Total loans

279,757

 

280,879

 

(0.4)

 

Earning assets

336,031

 

331,794

 

1.3

 

Assets

388,309

 

365,520

 

6.2

 

Deposits

260,974

 

228,049

 

14.4

 

Borrowings

46,632

 

54,829

 

(15.0)

 

Stockholders' equity

78,567

 

80,720

 

(2.7)

 

 

SOURCE OBA Financial Services, Inc.



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