York Traditions Bank Reports 4th Quarter Earnings

27 Jan, 2016, 05:50 ET from York Traditions Bank

YORK, Pa., Jan. 27, 2016 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income available to common shareholders of $494,000, or 23 cents per share, for the fourth quarter ended December 31, 2015, compared to $354,000, or 16 cents per share, for the fourth quarter ended December 31, 2014.  This represents a 39.5% increase over the fourth quarter of 2014.  Net income available to common shareholders for the year ended December 31, 2015 was $1,983,000, or 91 cents per share, compared to $1,873,000, or 87 cents per share, for last year.  This represents a $110,000, or 5.9%, increase.  Book value per common share stood at $13.53 at December 31, 2015.

"We are pleased to report a solid increase in earnings," stated Michael E. Kochenour, Chairman and Chief Executive Officer.  "Our mortgage division achieved a record $3,323,000 of gains on the sale of residential mortgages helping offset increased costs from our new office in Hanover and continued investment in technology.  Through a lot of patience and persistence, our lending teams increased loans in the fourth quarter by $17,008,000, or 7.0%.  We are encouraged that the dominant growth was achieved in the commercial lending area.  Deposit growth was outstanding throughout 2015, increasing $46,632,000, or 18.8%.  We remain well capitalized with excellent loan quality and look forward to 2016."

On March 27, 2015, the Bank completed a $5 million aggregate principal amount of subordinated notes due March 27, 2025 with a 6.25% interest rate. The Bank also repaid $5,115,000 of preferred stock on March 31, 2015 as part of the United States Treasury's Small Business Lending Fund (SBLF). The SBLF preferred stock was considered Tier 1 capital and the subordinated notes are Tier 2. Following the issuance of the more permanent subordinated notes, the Bank executed a $32 million leverage strategy acquiring high quality investment securities funded by Federal Home Loan Bank borrowings.

 

FINANCIAL HIGHLIGHTS (unaudited):
(Dollars in thousands, except per share data)

Selected Financial Data


Dec 31,

2015


Dec 31,

2014





Investment securities

$

66,856

$

35,215





Loans, net of unearned income


258,857


237,798





Total assets


359,642


300,231





Deposits


294,492


247,860





Borrowings


29,750


18,390





Subordinated debt


5,000


-





Shareholders' equity


29,506


32,815





Book value per common share

$

13.53

$

12.62





Allowance/loans


0.92%


1.08%





Non-performing assets/total assets


0.90%


0.74%





Tier 1 capital/average assets


8.55%


10.80%















Three months ended Dec 31,   

Twelve months ended Dec 31,

Selected Operations Data


2015


2014


2015


2014

Interest income

$

3,231

$

3,174

$

12,741

$

12,026

Interest expense


(666)


(521)


(2,547)


(1,952)

Net interest income


2,565


2,653


10,194


10,074

Provision for loan losses


(135)


(60)


(405)


(256)

Investment securities gains


2


-


2


12

Gains on sale of mortgages


863


436


3,323


1,897

Other income


262


255


1,031


966

Other expense


(2,886)


(2,765)


(11,358)


(9,935)

Income before income taxes


671


519


2,787


2,758

Income taxes


(177)


(153)


(791)


(834)

Net income


494


366


1,996


1,924

Preferred stock dividends


-


(12)


(13)


(51)

Net income available to common shareholders

$

494

$

354

$

1,983

$

1,873

Earnings per common share (basic and diluted)

$

0.23

$

0.16

$

0.91

$

0.87

Return on average assets


0.57%


0.48%


0.60%


0.66%

Return on average equity


6.89%


4.56%


6.88%


6.19%

Net interest margin


3.16%


3.73%


3.30%


3.65%

Net charge-offs(recoveries)/average loans


-0.01%


0.01%


0.24%


0.00%

 

Safe Harbor Statement:

Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Because of these risks and uncertainties, our actual future results may be materially different from the results indicated by these forward looking statements.  In addition, our past results of operations do not necessarily indicate our future results.  We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

SOURCE York Traditions Bank



RELATED LINKS

http://www.yorktraditionsbank.com