York Traditions Bank Reports 4th Quarter Earnings
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): |
||||||||
| 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
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