YORK, Pa., Oct. 28, 2015 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income available to common shareholders of $471,000, or 22 cents per share, for the third quarter ended September 30, 2015, compared to $608,000, or 28 cents per share, for the third quarter ended September 30, 2014. This represents a $137,000, or 23%, decrease. Net income available to common shareholders for the nine months ended September 30, 2015 was $1,489,000 or 69 cents per share, compared to $1,519,000, or 70 cents per share, for the same period last year. This represents a $30,000, or 2%, decrease. Book value per common share stood at $13.29 at September 30, 2015, an increase of $0.67 since December 31, 2014.
"We continue to take advantage of a strengthening residential real estate market and low interest rates," stated Michael E. Kochenour, Chairman and Chief Executive Officer. "Gains from the sale of residential mortgages total $2,460,000 so far in 2015, an increase of $999,000 compared to the first nine months in 2014. We experienced a $3,461,000 decline in loan balances during the 3rd quarter due to unusually high prepayments, loans have grown 1% from one year ago and 2% since December 31, 2014. This minimized the increase in net interest income which is up $208,000, or 3%, year-to-date. These increases helped offset higher other expenses related to our new branch office in Hanover, Pennsylvania and several technology initiatives. Lastly, we experienced a modest increase in nonperforming assets and encountered additional loan charge-offs in the third quarter; however, our credit quality remains satisfactory."
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. As a result, the Tier 1 capital/average assets ratio fell from 10.80% at December 31, 2014 to 8.49% at September 30, 2015. The Bank remains well capitalized as defined by banking regulators. 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. As a result, investment securities increased $30,660,000 since December 31, 2014 and the net interest margin fell to 3.16% for the third quarter compared to 3.62% for the same period last year.
| FINANCIAL HIGHLIGHTS (unaudited): |
||||||||
| Selected Financial Data |
Sept 30, 2015 |
Dec 31, 2014 |
Sept 30, 2014 |
|||||
| Investment securities |
$ |
65,875 |
$ |
35,215 |
$ |
36,515 |
||
| Loans, net of unearned income |
241,849 |
237,798 |
239,320 |
|||||
| Total assets |
342,351 |
300,231 |
302,182 |
|||||
| Deposits |
274,144 |
247,860 |
237,688 |
|||||
| Borrowings |
32,833 |
18,390 |
31,251 |
|||||
| Subordinated debt |
5,000 |
- |
- |
|||||
| Shareholders' equity |
29,097 |
32,815 |
32,316 |
|||||
| Book value per common share |
$ |
13.29 |
$ |
12.62 |
$ |
12.46 |
||
| Allowance/loans |
0.93% |
1.08% |
1.05% |
|||||
| Non-performing assets/total assets |
1.21% |
0.74% |
0.80% |
|||||
| Tier 1 capital/average assets |
8.49% |
10.80% |
10.84% |
|||||
| Three months ended Sept 30, |
Nine months ended Sept 30, |
|||||||
| Selected Operations Data |
2015 |
2014 |
2015 |
2014 |
||||
| Interest income |
$ |
3,214 |
$ |
3,035 |
$ |
9,510 |
$ |
8,852 |
| Interest expense |
(683) |
(495) |
(1,881) |
(1,431) |
||||
| Net interest income |
2,531 |
2,540 |
7,629 |
7,421 |
||||
| Provision for loan losses |
(135) |
(60) |
(270) |
(196) |
||||
| Investment securities gains |
- |
6 |
- |
12 |
||||
| Gains on sale of mortgages |
801 |
583 |
2,460 |
1,461 |
||||
| Other income |
265 |
249 |
769 |
711 |
||||
| Other expense |
(2,798) |
(2,426) |
(8,472) |
(7,170) |
||||
| Income before income taxes |
664 |
892 |
2,116 |
2,239 |
||||
| Income taxes |
(193) |
(271) |
(614) |
(681) |
||||
| Net income |
471 |
621 |
1,502 |
1,558 |
||||
| Preferred stock dividends |
- |
(13) |
(13) |
(39) |
||||
| Net income available to common shareholders |
$ |
471 |
$ |
608 |
$ |
1,489 |
$ |
1,519 |
| Earnings per common share (basic and diluted) |
$ |
0.22 |
$ |
0.28 |
$ |
0.69 |
$ |
0.70 |
| Return on average assets |
0.55% |
0.83% |
0.62% |
0.72% |
||||
| Return on average equity |
6.66% |
7.87% |
6.87% |
6.76% |
||||
| Net interest margin |
3.16% |
3.62% |
3.35% |
3.62% |
||||
| Net charge-offs(recoveries)/average loans |
0.31% |
0.00% |
0.33% |
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
Share this article