Oneida Financial Corp. Reports 2010 Third Quarter Operating Results (unaudited)

Oct 26, 2010, 16:06 ET from Oneida Financial Corp.

ONEIDA, N.Y., Oct. 26 /PRNewswire-FirstCall/ -- Oneida Financial Corp. (Nasdaq Global: ONFC), the parent company of The Oneida Savings Bank, has announced third quarter operating results.  Net income for the three months ended September 30, 2010 was $815,000, or $0.11 diluted earnings per share, compared to $696,000, or $0.10 diluted earnings per share, for the three months ended September 30, 2009.  The increase in net income during the respective third quarter periods is primarily the result of an increase net interest income, an increase in non-interest income and a decrease in net investment, partially offset by a decrease in the positive change in fair value of trading securities, an increase in the provision for loan losses, an increase in non-interest expenses and an increase in income tax provision.

Net income for the nine months ended September 30, 2010 was $2.3 million or $0.31 diluted earnings per share, as compared with $2.9 million or $0.40 diluted earnings per share for the same period in 2009.  Net income from operations for the nine months ended September 30, 2010, excluded non-cash gains and losses, as referenced in the table below, was $3.8 million or $0.53 per diluted share. This compares to net income from operations for the nine months ended September 30, 2009 of $2.9 million or $0.41 per diluted share.  The increase in net income from operations was primarily due to an increase in net interest income, an increase in non-interest income and an increase in gains from the sale of investments, partially offset by an increase in the provision for loan losses, an increase in non-interest expense and an increase in the provision for income taxes.  

Key items for third quarter 2010 include:

  • The Company announced the results of the stock offering related with the reorganization of Oneida Financial Corp. from a mutual holding company to a fully public stock holding company.  Gross stock offering proceeds of $31.5 million were received and the reorganization was completed on July 7, 2010.  
  • The Bank is well capitalized at September 30, 2010 with a Tier 1 leverage ratio of 9.36% and a total risk-based capital ratio of 15.02%. The Company's average equity ratio as a percent of average assets was 13.19% at September 30, 2010 compared to 9.84% at June 30, 2010.
  • Net interest income was $4.6 million for the three months ended September 30, 2010 compared to $4.4 million for the three months ended September 30, 2009.  Net interest margin was 3.39% for the third quarter of 2010 compared to 3.73% for the third quarter of 2009.
  • Non-interest income was $5.2 million for the three months ended September 30, 2010 compared to $4.8 million for the three months ended September 30, 2009.  This increase is primarily the result of an increase in revenue derived from the Company's insurance and other non-banking operations of $306,000 to $3.8 million in the third quarter of 2010 compared to $3.5 million in the comparable 2009 period.
  • Non-cash increase in the fair value recognized on trading (equity) securities was $409,000 for the three months ended September 30, 2010 compared to a non-cash increase of $739,000 for the three months ended September 30, 2009.  Non-cash impairment charges of $649,000 were recorded in the third quarter 2010 on certain investment securities compared with $956,000 in non-cash charges recorded in the third quarter of 2009.
  • Noninterest expense increased to $8.4 million for the three months ended September 30, 2010 compared to $8.0 million for the comparable period in 2009.  This increase was primarily the result of an increase in compensation and employee benefits expense associated with the Company's insurance and other non-banking operations.
  • Deposits increased $55.4 million to $534.4 million at September 30, 2010 compared to $479.0 million at September 30, 2009. Total borrowings outstanding decreased 45.2% to $17.0 million at September 30, 2010 from $31.0 million at September 30, 2009.
  • Total equity has increased $31.8 million to $88.9 million at September 30, 2010 from $57.1 million at September 30, 2009.

Michael R. Kallet, President and Chief Executive Officer of Oneida Financial Corp., said, "Oneida Financial Corp. is pleased to have completed our corporate reorganization and related stock offering in early July of this year.  Our stock offering enjoyed wide support and participation from depositors, board members, employees, local businesses and individuals and the broader investment community."  Kallet continued, "The new capital raised will allow Oneida Financial Corp. to continue deploying our business strategies which position us as a diversified banking and financial services company.  Oneida Savings Bank is pleased to report a record level of assets and deposits at September 30, 2010, while our insurance and financial services subsidiaries, Bailey & Haskell Associates, Inc. and Benefit Consulting Group, Inc., are on track for a record revenue year in 2010."   Kallet concluded, "Oneida Financial Corp. appreciates the support we have received from our customers and stockholders over the past decade as a mutual holding company and we look forward to our continued shared success as a fully public stockholder-owned company."

Net Interest Income and Margin

Third quarter 2010 compared with third quarter 2009

Net interest income was $4.6 million for the third quarter of 2010, an $186,000 increase from the third quarter of 2009. The net interest margin was 3.39% for the third quarter of 2010, compared to 3.73% for the third quarter of 2009. The yield on interest-earning assets has decreased 82 basis points to 4.41% partially offset by an increase in average interest-earning assets of $69.0 million. For the same period, the cost of interest-bearing deposits decreased 38 basis points to 1.02% while average interest-bearing deposits increased $47.7 million.  The Company executed on its planned repayment of Federal Home Loan Bank borrowings upon the maturity of its advances resulting in a decrease of $11.6 million in average borrowings outstanding. The average cost of interest-bearing liabilities decreased 46 basis points to 1.17% for the third quarter of 2010 as compared to the third quarter of 2009.

Third quarter 2010 compared with linked quarter ended June 30, 2010

Net interest income for the quarter ended September 30, 2010, increased $180,000 from the quarter ended June 30, 2010. The increase in net interest income reflects our increased level of average interest earning assets partially offset by a decrease in our net interest margin of 1 basis point from 3.40% for the quarter ended June 30, 2010. The yield on interest-earning assets decreased 12 basis points from 4.53% from the quarter ended June 30, 2010 while the cost of interest-bearing liabilities decreased 7 basis points from 1.24% during the second quarter of 2010.

Year-to-date comparison 2010 to 2009

On a fiscal year-to-date basis, net interest income increased $565,000 for the nine-month period ended September 30, 2010, as compared to the same period in 2009.  The increase in net interest income is the result of an increase in average interest-earning assets of $57.3 million to $524.6 million for the nine months ended September 30, 2010 from the same period in 2009 partially offset by a decrease in net interest margin of 25 basis points from 3.65% to 3.40%.  

Provision for loan losses

Third quarter 2010 compared with third quarter 2009

During the third quarter of 2010, the Company made a $650,000 provision for loan losses as compared with $400,000 in provision for loan losses during the third quarter of 2009.  The increase in provision for loan losses during the third quarter of 2010 is primarily the result of the Company increasing a specific reserve to $2.2 million for an impaired unsecured commercial loan with a principal balance of $2.2 million.  Net charge-offs during the current quarter were $3,000.  The Company continues to monitor the adequacy of the allowance for loan losses given the risk assessment of the loan portfolio and current economic conditions.  The Company continues to report an overall low level of net loan charge-offs as compared to its peers.  The ratio of the loan loss allowance to loans receivable was 1.44% at September 30, 2010 compared to 0.97% at September 30, 2009.

Third quarter 2010 compared with linked quarter ended June 30, 2010

The provision for loan losses increased by $350,000 during the third quarter of 2010 as compared with the linked prior quarter.  The Company continued to increase a specific reserve for an unsecured commercial loan deemed fully impaired at the end of the current quarter.  Non-performing loans to total loans were 0.80% at September 30, 2010 as compared with 1.01% at June 30, 2010.   The ratio of the loan loss allowance to loans receivable was 1.44% at September 30, 2010 compared to 1.19% at June 30, 2010.

Year-to-date comparison 2010 to 2009

Provision for loan losses totaled $1.4 million for the nine months ended September 30, 2010 as compared with $560,000 in the same period of 2009.

Noninterest Income

Third quarter 2010 compared with third quarter 2009

Noninterest income totaled $5.2 million for the third quarter of 2010, an increase of $427,000 or 8.9% from $4.8 million in the third quarter of 2009. The increase was primarily due to an increase of $306,000 in commissions and fees on the sales of non-bank products through the Company's insurance and financial service subsidiaries.  The increase in non-interest income was also supported by an increase in loan sale and servicing income, which totaled $348,000 in the third quarter of 2010 as compared with $202,000 in the third quarter of 2009. The Bank sells substantially all of its fixed-rate residential mortgage loan originations on a servicing retained basis in the secondary market. These loan sales help the Bank to control interest rate risk. The volume of fixed-rate residential mortgage loan originations has decreased in the current quarter as compared with the 2009 period, however, the decrease in market interest rates has resulted in an increase in the profit realized upon the sale of these loans.  

Third quarter 2010 compared with linked quarter ended June 30, 2010

Noninterest income decreased $485,000 from $5.7 million on a linked-quarter basis, reflecting a seasonal decrease in commissions and fees on the sales of non-bank products partially offset by an increase in loan sale and servicing income in the third quarter of 2010.

Year-to-date comparison 2010 to 2009

Noninterest income totaled $16.8 million for the nine months ended September 30, 2010 as compared with $15.4 million in the same period of 2009, an increase of 9.2%.

Net Investment Gains (Losses)

Third quarter 2010 compared with third quarter 2009

Net investment losses of $112,000 were recorded in the third quarter of 2010 compared with net investment losses of $648,000 in the third quarter of 2009.  During the third quarter of 2010 eight trust preferred securities were reviewed for other-than-temporarily-impairment.  The Company recorded a non-cash charge of $620,000 representing the credit impairment on certain securities in the third quarter of 2010 as compared with a non-cash charge of $956,000 in the third quarter of 2009.  The trust preferred securities owned by the Company are diversified pools of collateralized debt obligations primarily issued by domestic financial institutions. In addition, the Company recorded a non-cash charge of $28,000 representing the other-than-temporary impairment of a privately-issued collateralized mortgage obligation.  Partially offsetting the non-cash impairment charges during the third quarter of 2010 were investment gains resulting from the Company's decision to realize a portion of the appreciation in its mortgage-backed and investment securities portfolio, monetizing other comprehensive income and reducing prepayment risk during the third quarter of 2010.  These factors resulted in net gains realized of $536,000 during the three months ended September 30, 2010.

Third quarter 2010 compared with linked quarter ended June 30, 2010

During the linked quarter ended June 30, 2010, the Company realized net investment gains of $381,000 as the Company recorded non-cash impairment charges of $61,000 representing the credit impairment on one trust preferred securities and one privately-issued collateralized mortgage obligation owned by the Company offset in part by investment gains of $442,000 realized in its mortgage-backed and investment securities portfolio.

Year-to-date comparison 2010 to 2009

For the nine months ended September 30, 2010 the Company has recorded net investment losses of $413,000 as compared with net investment losses of $874,000 during the nine months ended September 30, 2009.  The losses recorded in both periods is the result of non-cash other-than-temporary impairment charges recorded in each period partially offset by gains realized on the sale of mortgage-backed and investment securities.

Change in the Fair Value of Investments

Third quarter 2010 compared with third quarter 2009

The Company has identified the preferred and common equity securities it holds in the investment portfolio as trading securities and as such the change in fair value of these securities is reflected as a non-cash adjustment through the income statement.   For the three months ended September 30, 2010, the market value of the Company's trading securities increased $409,000 as compared with an increase of $739,000 in the third quarter of 2009.  The increase in market value of the Company's trading securities in the third quarter of 2010 is reflective of the increase in broader equity markets during the period.

Third quarter 2010 compared with linked quarter ended June 30, 2010

During the linked quarter ended June 30, 2010, the Company recorded non-cash charge of $863,000 reflecting the decrease in market value of the Company's trading securities at the end of the second quarter of 2010.

Year-to-date comparison 2010 to 2009

For the nine month period ended September 30, 2010 a negative net fair value adjustment of $315,000 reflects the decrease in market value of the Bank's trading securities at September 30, 2010 from the most recent year end.   This compares with a net increase in the fair value for the same 2009 period of $1.3 million.

The table below summarizes the Company's operating results excluding these cumulative non-cash charges related to the change in fair value of trading securities and the non-cash impairment charges recorded as net investment losses in each period.

Reported Results

(including non-cash gains and losses recognized under ASC 320)

(All amounts in thousands except net income per diluted share)


Year to Date

Year to Date


Sept 30,

Sept 30,


2010

2009

Net interest income

$13,357

$12,792

Provision for loan losses

1,350

560

Investment losses

(413)

(874)

Change in fair value of investments

(315)

1,308

Non-interest income

16,756

15,351

Non-interest expense

25,108

24,098

Income tax provision

671

1,040

Net income

$  2,256

$  2,879

Net income per



  diluted share

$    0.31

$    0.40



Operating Results / Non-GAAP

(excluding non-cash gains and losses recognized under ASC 320)

(All amounts in thousands except net income per diluted share)


Year to Date

Year to Date


Sept 30,

Sept 30,


2010

2009

Net interest income

$13,357

$12,792

Provision for loan losses

1,350

560

Investment gains

1,287

514

Non-interest income

16,756

15,351

Non-interest expense

25,108

24,098

Income tax provision

1,132

1,060

Net income

$  3,810

$  2,939

Net income per



diluted share

$    0.53

$    0.41



The Company believes these non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the Company, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry. In addition, the Company believes this alternate presentation of these items enables management to perform a more effective evaluation and comparison of the Company's results and to assess the overall performance of our business in relation to the Company's ongoing operations.

Noninterest Expense

Third quarter 2010 compared with third quarter 2009

Noninterest expense was $8.4 million for the three months ended September 30, 2010 as compared with $8.0 million during the third quarter of 2009. The increase in noninterest expense was primarily due to the increase in sales of insurance and other non-banking products through our subsidiaries resulting in an increase in compensation and employee benefit expenses combined with an increase in selling expenses.  

Third quarter 2010 compared with linked quarter ended June 30, 2010

Noninterest expense increased $114,000 in the third quarter of 2010 as compared with the linked prior quarter. Compensation and employee benefit expense increased by $208,000 as compared with quarter ended June 30, 2010 partially offset by a decrease in other operating expenses.

Year-to-date comparison 2010 to 2009

Noninterest expense totaled $25.1 million for the nine months ended September 30, 2010 as compared with $24.1 million in the same period of 2009. The increase in noninterest expense was primarily due to the increase in sales of insurance and other non-banking products through our subsidiaries resulting in an increase in compensation and employee benefit expenses.

Income Taxes

The Company's effective tax rate was 22.9% for the third quarter of 2010 as compared with an effective tax rate of 24.8% for the third quarter of 2009. For the linked quarter ended June 30, 2010, the Company's effective tax rate was 22.2%. For the nine months ended September 30, 2010 the Company's effective tax rate was 22.9%.  The lower effective tax rate was due changes in the Bank's tax exempt and tax preferred investment income and overall tax rate in effect for the year.

Key Balance Sheet Changes at September 30, 2010

  • Deposit accounts were at the record level of $534.4 million at September 30, 2010, an increase of $13.1 million from June 30, 2010.  The increase in deposits in the current quarter was primarily the result of an increase in municipal deposits concurrent with the seasonal tax collections.  Total deposits increased $55.4 million from September 30, 2009, an increase of $18.6 million in retail deposits combined with an increase of $36.8 million in municipal deposits over the past twelve months.  
  • Net loans receivable totaled $285.4 million at September 30, 2010 compared to $291.3 million at June 30, 2010 and $295.4 million at September 30, 2009.  The decrease in net loan balances reflects the Company's continued loan sales activity. The Company has sold $31.7 million in fixed rate residential loans during the trailing twelve months ended September 30, 2010.
  • Investment and mortgage-backed securities totaled $226.7 million at September 30, 2010, an increase of $28.5 million from June 30, 2010, and an increase of $62.5 million from September 30, 2009.  The increase in investment and mortgage-backed securities is primarily the result of the increase in collateral for municipal deposit accounts and a decrease in loans receivable.  
  • The Company continued to repay maturing Federal Home Loan Bank advances with proceeds from investment securities maturities, calls and other cash flows.  Borrowings outstanding were $17.0 million at September 30, 2010 a decrease of $14.0 million from September 30, 2009.
  • Total equity at September 30, 2010 was $88.9 million, an increase of $28.2 million from June 30, 2010 and an increase of $31.8 million from September 30, 2009.  Net proceeds from the Company's stock offering completed on July 7, 2010 provided $29.0 million in additional capital during the current quarter. The increase in total equity is also the result of the contribution of net earnings combined with valuation adjustments made for the Company's available for sale investment and mortgage-backed securities, partially offset by the declaration of cash dividends during the trailing twelve month period.

About Oneida Financial Corp.

The Company's wholly owned subsidiaries include The Oneida Savings Bank, a New York State chartered FDIC insured stock savings bank; State Bank of Chittenango, a state chartered limited-purpose commercial bank; Bailey, Haskell & LaLonde Agency, an insurance and risk management company; Benefit Consulting Group, an employee benefits consulting and retirement plan administration firm; and Workplace Health Solutions, a risk management company specializing in workplace injury claims management.  Oneida Savings Bank was established in 1866 and operates eleven full-service banking offices in Madison, Oneida and Onondaga counties. For more information, visit the Company's web site at www.oneidafinancial.com.

FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS

In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

All financial information provided at and for the quarter ended September 30, 2010 and all quarterly data is unaudited.  Selected financial ratios have been annualized where appropriate.  Operating data is presented in thousands of dollars, except for per share amounts.



At

At

At

At

At

Selected Financial Condition Data:

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(in thousands except per share data)

2010

2010

2010

2009

2009


(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)







Total assets

$647,926

$613,310

$596,265

$590,506

$574,126

Cash and cash equivalents

44,942

32,235

42,282

39,537

26,914

Loans receivable, net

285,384

291,267

293,024

295,839

295,384

Mortgage-backed securities

74,252

73,133

65,401

65,737

75,605

Investment securities

152,449

125,033

105,403

96,487

88,608

Trading securities

7,283

6,884

7,757

7,627

7,220

Goodwill and other intangibles  

24,620

24,721

24,822

24,813

24,929

Interest bearing deposits  

468,286

445,166

444,627

426,368

417,401

Non-interest bearing deposits

66,111

76,153

60,889

62,997

61,574

Borrowings

17,000

23,500

23,500

31,000

31,000

Total equity

88,945

60,694

59,699

59,116

57,133







Book value per share






  (end of period)

$12.44

$8.49

$8.35

$8.29

$8.03

Tangible value per share






  (end of period)

$9.00

$5.03

$4.88

$4.81

$4.53






Quarter Ended

Year to Date

Selected Operating Data:

Sep 30,

Sep 30,

Sep 30,

Sep 30,

(in thousands except per share data)

2010

2009

2010

2009


(unaudited)

(unaudited)

(unaudited)

(unaudited)

Interest income:





  Interest and fees on loans

$4,187

$4,418

$12,688

$13,309

  Interest and dividends





     on investments

1,823

1,809

5,067

5,349

  Interest on fed funds

11

7

28

32

     Total interest income

6,021

6,234

17,783

18,690

Interest expense:





  Interest on deposits

1,159

1,425

3,585

4,567

  Interest on borrowings

234

367

841

1,331

     Total interest expense

1,393

1,792

4,426

5,898

Net interest income

4,628

4,442

13,357

12,792

  Provision for loan losses

650

400

1,350

560

Net interest income after





    provision for loan losses

3,978

4,042

12,007

12,232

Net investment losses

(112)

(658)

(413)

(874)

Change in fair value of investments

409

739

(315)

1,308

Non-interest income:





  Service charges on deposit accts

630

645

1,964

1,906

  Commissions and fees on sales





      of non-banking products

3,845

3,539

12,942

11,594

  Other revenue from operations

746

610

1,850

1,851

     Total non-interest income

5,221

4,794

16,756

15,351

Non-interest expense





  Salaries and employee benefits

5,404

5,107

15,837

15,088

  Equipment and net occupancy

1,196

1,145

3,721

3,551

  Intangible amortization

101

116

311

354

  Other costs of operations

1,738

1,623

5,239

5,105

     Total non-interest expense

8,439

7,991

25,108

24,098

Income before income taxes

1,057

926

2,927

3,919

Income tax provision

242

230

671

1,040

Net income

$         815

$         696

$      2,256

$      2,879

Net income per common





  share ( EPS – Basic )

$0.11

$0.10

$0.31

$0.40

Net income per common





  share ( EPS – Diluted)

$0.11

$0.10

$0.31

$0.40

Cash dividends declared

$0.12

$0.24

$0.48

$0.48











Third

Second

First

Fourth

Third

Selected Operating Data:

Quarter

Quarter

Quarter

Quarter

Quarter

(in thousands except per share data)

2010

2010

2010

2009

2009


(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Interest income:






  Interest and fees on loans

$4,187

$4,183

$4,318

$4,452

$4,418

  Interest and dividends






     on investments

1,823

1,732

1,512

1,854

1,809

  Interest on fed funds

11

9

7

5

7

     Total interest income

6,021

5,924

5,837

6,311

6,234

Interest expense:






  Interest on deposits

1,159

1,197

1,227

1,310

1,425

  Interest on borrowings

234

279

329

366

367

     Total interest expense

1,393

1,476

1,556

1,676

1,792

Net interest income

4,628

4,448

4,281

4,635

4,442

  Provision for loan losses

650

300

400

200

400

Net interest income after






    provision for loan losses

3,978

4,148

3,881

4,435

4,042

Net investment (losses) gains

(112)

381

(681)

(633)

(658)

Change in fair value of investments

409

(863)

139

417

739

Non-interest income:






  Service charges on deposit accts

630

712

622

709

645

  Commissions and fees on sales






      of non-banking products

3,845

4,435

4,662

4,243

3,539

  Other revenue from operations

746

559

544

581

610

     Total non-interest income

5,221

5,706

5,828

5,533

4,794

Non-interest expense






  Salaries and employee benefits

5,404

5,196

5,237

5,337

5,107

  Equipment and net occupancy

1,196

1,251

1,274

1,197

1,145

  Intangible amortization

101

101

108

116

116

  Other costs of operations

1,738

1,777

1,725

1,697

1,623

     Total non-interest expense

8,439

8,325

8,344

8,347

7,991

Income before income taxes

1,057

1,047

823

1,405

926

Income tax provision

242

233

196

171

230

Net income

$         815

$         814

$         627

$      1,234

$         696

Net income per common






  share ( EPS – Basic )

$0.11

$0.11

$0.09

$0.17

$0.10

Net income per common






  share ( EPS – Diluted)

$0.11

$0.11

$0.09

$0.17

$0.10

Cash dividends declared

$0.12

$0.12

$0.24

$0.00

$0.24






At

At

At

At

At

Selected Financial Ratios (1)

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

   and Other Data

2010

2010

2010

2009

2009


(unaudited)

(unaudited)

(unaudited)

(audited)

(unaudited)

Performance Ratios:






Return on average assets

0.51%

0.53%

0.42%

0.86%

0.49%

Return on average equity

3.90%

5.41%

4.21%

8.54%

5.00%

Return on average tangible equity

5.54%

9.19%

7.22%

14.95%

9.07%

Interest rate spread (2)

3.24%

3.30%

3.26%

3.69%

3.60%

Net interest margin (3)

3.39%

3.40%

3.39%

3.79%

3.73%

Efficiency ratio (4)

84.66%

81.99%

82.54%

82.09%

86.52%

Non-interest income to average assets

3.30%

3.73%

3.91%

3.84%

3.40%

Non-interest expense to average assets

5.33%

5.44%

5.60%

5.79%

5.66%

Average interest-earning assets as a ratio





    of average interest-bearing liabilities

115.59%

109.28%

108.51%

108.78%

109.32%

Average equity to average total assets

13.19%

9.84%

9.99%

10.02%

9.87%

Equity to total assets (end of period)

13.73%

9.90%

10.01%

10.01%

9.95%

Tangible equity to tangible assets

10.32%

6.11%

6.10%

6.06%

5.86%







Asset Quality Ratios:






Nonperforming assets to






   total assets (5)

1.24%

1.45%

0.90%

0.41%

0.40%

Nonperforming loans to






   total loans

0.80%

1.01%

0.11%

0.18%

0.09%

Net charge-offs to average loans

0.00%

0.05%

0.00%

0.06%

0.06%

Allowance for loan losses to






   loans receivable, net

1.44%

1.19%

1.13%

0.98%

0.97%

Allowance for loan losses to






   nonperforming loans

176.30%

115.57%

1041.01%

526.50%

1110.04%







Bank Regulatory Capital Ratios:






Total capital






   to risk weighted assets

15.02%

11.25%

11.04%

10.73%

10.30%

Tier 1 capital






   to risk weighted assets

14.02%

10.39%

10.21%

10.00%

9.58%

Tier 1 capital






   to average assets

9.36%

7.05%

7.08%

7.19%

7.03%







         1 - Ratios are annualized where appropriate.





         2 - The average interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the

                weighted-average cost of interest-bearing liabilities for the period.

         3 - The net interest margin represents net interest income as a percent of average interest-earning assets for the period.

         4 - The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income excluding

                net impairment losses, net investment gains (losses) and changes in the fair value of trading securities.

         5 - Non-performing assets include non-performing loans and non-accrual trust preferred securities.





SOURCE Oneida Financial Corp.



RELATED LINKS

http://www.oneidafinancial.com