American Community Bancorp Reports 2009 Earnings
EVANSVILLE, Ind., Feb. 8 /PRNewswire-FirstCall/ --
- 2009 net income of $1,203,580 represents $0.59 earnings per diluted share.
- Fourth quarter net income equals $555,203, a 9.7 percent annualized return on equity.
- Net interest margin improves 17 basis points to 3.37 percent during the quarter.
- Fourth quarter revenue increases 25.1 percent over the same quarter last year.
- Non interest bearing deposits increase $6,196,597 or 23.9 percent over 2008.
American Community Bancorp, Inc. (the "Company") (OTC Bulletin Board: ACBP), the holding company for Bank of Evansville, today reported consolidated net income for the 2009 fiscal year of $1,203,580, compared to 2008 net income of $1,297,253. Diluted earnings per share, adjusted for the 5 percent stock dividend declared in April 2009, were $0.59 per share for 2009 and $0.64 per share for 2008. In 2008, the Company sold its merchant processing line of business for an after tax gain of approximately $394,403. Adjusting for this one-time gain, 2009 annual net income was $300,730, or 33.3 percent higher than core net income for 2008.
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For the quarter ended December 31, 2009, net income of $555,203 was recorded versus a net loss of $180,872 for the same quarter in 2008. Diluted earnings per share for the fourth quarter of 2009 were $0.27 per share, compared to $(0.09) per share for the fourth quarter of 2008. The increase in earnings was primarily due to an increase in net interest income of $335,866 and a $645,000 reduction in provision for loan loss expense relative to the same quarter last year. The net interest income increase is attributable to an improved net interest margin of 3.37 percent for the fourth quarter of 2009, compared to 2.95 percent for the fourth quarter of 2008.
Michael S. Sutton, President and Chief Executive Officer, commented, "2009 was full of challenges in the banking industry, and we were not immune to them. Yet, we managed through these obstacles to finish with a very strong fourth quarter and year. Given the environment, I am pleased with our 33.3 percent increase in "core" earnings. In addition, a number of positive trends occurred in our performance this past year: 1) a 23.9 percent increase in our non interest bearing deposits provided a low-cost source of funding and a 27.1 percent increase in service charge revenue; 2) the interest rate environment drove residential mortgage refinancing activity, contributing to a 78.7 percent increase in gains on the sale of mortgage loans; and 3) a consistent quarterly increase in net interest income and an improved net interest margin were achieved primarily through deposit repricing opportunities."
Annual Performance
Total revenues, consisting of net interest income and non interest income, were $10,078,649 for 2009, decreasing $753,718 or 7.0 percent, compared to 2008. Net interest income for 2009 was $8,865,124, which was $54,661 or 0.6 percent higher than the $8,810,463 reported for 2008. Non interest income for 2009 decreased $808,379 or 40.0 percent less than 2008. Excluding revenue related to the Company's merchant processing line of business that was sold during 2008, non interest income increased by $465,207, or 62.2 percent over 2008. The change was primarily from a year over year increase of $235,206 in gains on the sale of residential mortgage loans, and a one-time gain on sale of investment securities of $114,750.
Non interest expense for 2009 was $6,871,699, compared to $6,899,769 for 2008. Salaries and benefits, the largest component of non interest expense, increased $143,565 in 2009, a 4.1 percent increase over 2008. Additionally, the Company expensed $133,215 on a pre-tax basis in 2009 to record its portion of the FDIC's special deposit insurance assessment levied on all FDIC insured financial institutions.
Quarterly Performance
Total revenues were $2,787,718 for the fourth quarter of 2009, reflecting an increase of $559,094, or 25.1 percent, compared to the same period in 2008. Net interest income in the fourth quarter of 2009 was $2,417,629, increasing $335,866, or 16.1 percent, compared to the same quarter of 2008. The net interest margin for the fourth quarter of 2009 was 3.37 percent compared to 2.95 percent for the same quarter last year. The improvement in the margin is attributable to a slight increase in loan yields and a significant reduction in interest expense on deposits driven by non interest bearing deposit growth and pricing discipline on maturities of certificates of deposit. Non interest expense for the fourth quarter of 2009 was $1,686,245, increasing 2.7 percent from $1,641,796 in the same period a year ago.
Balance Sheet
Total assets at December 31, 2009, were $301,830,897, compared to $295,004,193 at the same date a year ago, an increase of $6,826,704 or 2.3 percent. Loans decreased $4,312,150 or 1.6 percent and were $259,142,061 at December 31, 2009, compared to $263,454,211 at December 31, 2008. Total deposits at December 31, 2009, were $260,063,124, reflecting an increase of $5,781,216, or 2.3 percent over the corresponding total a year ago. Non interest bearing deposits, the Company's low cost source of funding, increased by $6,196,597, or 23.9 percent during 2009 and totaled $32,157,834 at the end of the year.
Asset Quality
Net loan charge-offs were $1,049,773 during 2009 compared to $478,414 during 2008. Non performing assets at December 31, 2009, were $7,086,574 or 2.35 percent of total assets compared to $5,596,354 or 1.90 percent of total assets at the end of 2008. The allowance for loan losses was $4,515,926 at December 31, 2009, or 1.74 percent of total outstanding loans compared to 1.65 percent at the end of 2008. As a percentage of non performing loans, the allowance for loan loss was 74.0 percent and 81.7 percent for 2009 and 2008, respectively. Provision for loan loss expense for 2009 was $1,215,000, which equaled approximately 116 percent of net charge-offs. For 2008, provision expense was $1,712,345, or 358 percent of net charge-offs.
Capital
The Company remains "well capitalized" with a Tier 1 leverage ratio of 10.3 percent, a Tier 1 risk based capital ratio of 11.8 percent, and a total risk based capital ratio of 13.2 percent at December 31, 2009. The regulatory minimum ratios to be considered "well capitalized" are 5.0 percent for the Tier 1 leverage ratio, 6.0 percent for the Tier 1 risk based capital ratio, and 10.0 percent for the total risk based capital ratio.
Mr. Sutton concluded, "We are extremely proud of our quarterly and annual performance in light of unprecedented challenges in our national and local economy. While many financial institutions reported losses in 2009, our Company remains profitable as evidenced by our return on equity of 5.4 percent for the year and 9.7 percent for the fourth quarter. We continue to focus on reducing our risk profile and improving our net interest margin given that asset quality and net interest income are significant contributors to achieving strong, consistent earnings for our shareholders."
American Community Bancorp, Inc., through its wholly owned subsidiary, Bank of Evansville, provides a full range of commercial and consumer banking services in the Evansville, Indiana, area.
This news release contains certain forward-looking statements. These forward-looking statements may be identified by the use of such forward-looking terminology as "expect," "believe," "plan," "anticipate," "may," "will," or similar statements or variations of such terms or otherwise express views concerning trends and the future. Forward-looking statements involve risks and uncertainties which could cause our results to differ materially from such forward-looking statements. We assume no obligation for updating any such forward-looking statement at any time.
CONTACT: |
Michael S. Sutton, CEO |
|
John M. Schenk, CFO |
||
Phone: |
(812) 962-2265 |
|
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, December 31,
2009 2008
---- ----
ASSETS
Cash and due from banks $3,070,354 $10,566,834
Interest bearing balances with banks 11,827,957 67,729
Federal funds sold 3,256,000 -
------------ ------------
Total cash and cash equivalents 18,154,311 10,634,563
Securities available for sale, at fair value 13,448,255 12,540,576
Nonmarketable equity securities 1,364,850 1,269,450
Loans, net of deferred fees 259,142,061 263,454,211
Allowance for loan losses (4,515,926) (4,350,699)
------------ ------------
Net loans 254,626,135 259,103,512
Premises and equipment 7,176,779 7,498,177
Other real estate owned 982,550 268,600
Other assets 6,078,017 3,689,315
------------ ------------
Total assets $301,830,897 $295,004,193
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing $32,157,834 $25,961,237
NOW, MMDA and Savings 150,555,986 94,865,418
Time deposits 77,349,304 133,455,253
------------ ------------
Total deposits 260,063,124 254,281,908
Long term debt 18,248,000 18,248,000
Accrued expenses and other
liabilities 779,007 1,072,135
------------ ------------
Total liabilities 279,090,131 273,602,043
SHAREHOLDERS' EQUITY
Common stock, no par value, 3,000,000 shares
authorized; issued and outstanding
2,021,335 and 2,001,462 21,813,998 20,556,955
Undivided profits 896,962 750,568
Accumulated other
comprehensive income 29,806 94,627
------------ ------------
Total shareholders' equity 22,740,766 21,402,150
------------ ------------
Total liabilities and
shareholders' equity $301,830,897 $295,004,193
============ ============
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, except Year Ended December 31, 2008)
Three months ended
December 31,
Interest income: 2009 2008
---------- ----------
Interest and fees on loans $3,434,372 $3,618,975
Securities:
U. S. government agencies and corporations 58,970 118,961
State, County, Municipal bonds 11,551 -
Other securities 20,369 18,156
Federal funds sold 179 12,487
Deposits with other banks 23,333 183
Total interest income 3,548,774 3,768,762
Interest expense:
Deposits 1,020,609 1,515,519
Fed funds purchased - -
Borrowings 110,536 171,480
Total interest expense 1,131,145 1,686,999
---------- ----------
Net interest income 2,417,629 2,081,763
Provision for loan losses 225,000 870,000
Net interest income after provision 2,192,629 1,211,763
for loan losses
Non interest income:
Service charges on deposit accounts 93,737 73,537
Gain on sale of loans 98,295 68,192
Gain on sale of other assets - -
Gain (loss) on sale of other real estate - (56,650)
Gain (loss) on sale of investment
securities 114,772 -
Merchant processing fees - 2,347
Other 63,285 59,435
Total non interest income 370,089 146,861
Non interest expense:
Salaries and benefits 935,871 860,447
Occupancy and equipment, net 169,249 170,173
Marketing 13,908 25,417
Data processing 117,509 115,696
Supplies, postage and printing 20,430 28,985
Legal and professional 88,487 189,131
Merchant processing expense - 187
FDIC insurance assessment 141,747 67,450
Other 199,044 184,310
Total non interest expense 1,686,245 1,641,796
---------- ----------
Income before income taxes 876,473 (283,172)
Income taxes 321,270 (102,300)
---------- ----------
Net income $555,203 $(180,872)
========== ==========
Basic earnings per common share* $0.28 $(0.09)
Diluted earnings per common share* $0.27 $(0.09)
Average common shares outstanding* 2,004,505 1,994,440
Average diluted shares outstanding* 2,024,015 2,018,683
Years ended
December 31,
Interest income: 2009 2008
----------- -----------
Interest and fees on loans $13,406,680 $15,524,650
Securities:
U. S. government agencies and corporations 303,714 415,873
State, County, Municipal bonds 31,298 -
Other securities 72,365 69,413
Federal funds sold 860 199,667
Deposits with other banks 48,671 640
Total interest income 13,863,588 16,210,243
Interest expense:
Deposits 4,508,692 6,728,974
Fed funds purchased 3,369 11,571
Borrowings 486,403 659,235
Total interest expense 4,998,464 7,399,780
----------- -----------
Net interest income 8,865,124 8,810,463
Provision for loan losses 1,215,000 1,712,345
----------- -----------
Net interest income after provision 7,650,124 7,098,118
for loan losses
Non interest income:
Service charges on deposit accounts 345,795 272,034
Gain on sale of loans 533,956 298,750
Gain on sale of other assets - 675,000
Gain (loss) on sale of other real estate (4,797) (73,486)
Gain (loss) on sale of investment securities 114,750 -
Merchant processing fees - 598,586
Other 223,821 251,020
Total non interest income 1,213,525 2,021,904
Non interest expense:
Salaries and benefits 3,615,209 3,471,644
Occupancy and equipment, net 680,608 624,660
Marketing 75,030 83,126
Data processing 453,372 426,776
Supplies, postage and printing 69,957 79,011
Legal and professional 512,907 469,423
Merchant processing expense - 531,916
FDIC insurance assessment 682,634 260,800
Other 781,982 952,413
Total non interest expense 6,871,699 6,899,769
----------- -----------
Income before income taxes 1,991,950 2,220,253
Income taxes 788,370 923,000
Net income $1,203,580 $1,297,253
============ ============
Basic earnings per common share* $0.60 $0.66
Diluted earnings per common share* $0.59 $0.64
Average common shares outstanding* 2,003,574 1,979,940
Average diluted shares outstanding* 2,039,436 2,023,638
* Adjusted for 5 percent stock dividends paid on June 6, 2008 and
June 11, 2009
AMERICAN COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Years ended
(dollars in thousands 2009 2008 December 31
except per share data) 4th Qtr 4th Qtr 2009 2008
------- ------- ---- ----
EARNINGS
Net interest income $2,417 $2,082 $8,865 $8,810
Provision for loan losses $225 $870 $1,215 $1,712
Non interest income $370 $147 $1,214 $2,022
Non interest expense $1,686 $1,642 $6,872 $6,900
Income taxes $321 $(102) $788 $923
Net income $555 $(181) $1,204 $1,297
Basic earnings per share* $0.28 $(0.09) $0.60 $0.66
Diluted earnings per share* $0.27 $(0.09) $0.59 $0.64
Average shares outstanding* 2,004,505 1,994,440 2,003,574 1,979,939
Average diluted shares
outstanding* 2,024,015 2,018,682 2,039,436 2,021,574
PERFORMANCE RATIOS
Return on average assets 0.75% -0.25% 0.41% 0.45%
Return on average common equity 9.71% -3.32% 5.42% 6.23%
Net interest margin
(fully tax equivalent) 3.37% 2.95% 3.21% 3.20%
Efficiency ratio 60.49% 73.70% 68.18% 63.70%
Full time equivalent employees 48 48 49 48
CAPITAL
Average equity to average assets 7.69% 7.39% 7.63% 7.24%
Tier 1 leverage capital ratio 10.27% 9.70% 10.19% 9.70%
Tier 1 risk based capital ratio 11.80% 11.26% 11.50% 11.26%
Total risk based capital ratio 13.23% 12.87% 13.00% 12.87%
Book value per share* $11.25 $10.69 $11.25 $10.69
Cash dividend per share
ASSET QUALITY
Gross loan charge offs $563 $260 $1,208 $509
Net loan charge offs $561 $247 $1,050 $478
Net loan charge offs to
average loans 0.22% 0.09% 0.41% 0.19%
Allowance for loan losses $4,516 $4,351 $4,516 $4,351
Allowance for losses to
total loans 1.74% 1.65% 1.74% 1.65%
Nonperforming loans $6,104 $5,328 $6,104 $5,328
Other real estate and
repossessed assets $983 $269 $983 $269
Nonperforming assets to
total assets 2.35% 1.90% 2.35% 1.90%
END OF PERIOD BALANCES
Loans $259,142 $263,454 $259,142 $263,454
Total earning assets $288,990 $277,175 $288,990 $277,175
Total assets $301,831 $295,004 $301,831 $295,004
Deposits $260,063 $254,282 $260,063 $254,282
Shareholders' equity $22,741 $21,402 $22,741 $21,402
AVERAGE BALANCES
Loans $256,100 $260,959 $256,303 $255,114
Total earning assets $284,815 $280,354 $276,267 $275,325
Total assets $294,918 $292,931 $291,074 $287,266
Deposits $252,905 $251,768 $249,359 $248,185
Shareholders' equity $22,691 $21,657 $22,221 $20,812
* Adjusted for 5 percent stock dividends paid June 6, 2008 and
June 11, 2009
SOURCE American Community Bancorp, Inc.
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