York Traditions Bank Reports 4th Quarter Earnings

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Jan 20, 2017, 04:05 ET

YORK, Pa., Jan. 20, 2017 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income available to common shareholders of $518,000, or 24 cents per share, for the 4^th quarter ended December 31, 2016, compared to $494,000, or 23 cents per share, for the 4^th quarter ended December 31, 2015. This represents a $24,000, or 5%, increase over the 4^th quarter of 2015. Net income available to common shareholders for the year ended December 31, 2016 was $2,900,000, or $1.33 per share. This represents an increase of $917,000, or 46%, over last year. Return on assets of 0.77% and return on equity of 9.44% also showed significant growth year to year. Book value per common share climbed to $14.86 at December 31, 2016.

"We are pleased to report 4^th quarter and annual earnings," stated Michael E. Kochenour, Chairman. "An uptick in long-term interest rates and normal seasonality slowed our gains on sale of mortgages in the 4^th quarter. This was partially offset by our second and final $150,000 installment for switching merchant processing vendors. Despite the mortgage slowdown in the 4^th quarter, the Bank achieved record annual earnings. Collectively, commercial and consumer-related loans grew $46,420,000, or 18%, during 2016, boosting net interest income $1,563,000, or 15%. We achieved record gains on mortgage sales of $4,249,000, an increase of $926,000, or 28%. Deposits grew $27,825,000, or 9%. In addition, our net interest margin remained stable, and net charge offs declined along with non-performing assets. In recognition of the significant loan growth, we recorded an annual provision for loan losses of $994,000, which enhances the allowance to 1.02% of loans. We remain well capitalized, and we look forward to 2017."

FINANCIAL HIGHLIGHTS (unaudited): (Dollars in thousands, except per share data)
Selected Financial Data		Dec 31, 2016		Dec 31, 2015
Investment securities	$	50,185	$	66,856
Loans, net of unearned income		305,277		258,857
Total assets		396,716		359,642
Deposits		322,317		294,492
Borrowings		35,710		29,750
Subordinated debt		5,000		5,000
Shareholders' equity		32,223		29,506
Book value per common share	$	14.86	$	13.53
Allowance/loans		1.02%		0.92%
Non-performing assets/total assets		0.81%		0.90%
Tier 1 capital/average assets		8.21%		8.55%

	Three months ended Dec 31,				Twelve months ended Dec 31,
Selected Operations Data		2016		2015		2016	2015
Interest income	$	3,798	$	3,231	$	14,472	$12,741
Interest expense		(688)		(666)		(2,715)	(2,547)
Net interest income		3,110		2,565		11,757	10,194
Provision for loan losses		(300)		(135)		(994)	(405)
Investment securities gains		-		2		72	2
Gains on sale of mortgages		688		863		4,249	3,323
Other income		483		262		1,602	1,031
Other expense		(3,261)		(2,886)		(12,558)	(11,358)
Income before income taxes		720		671		4,128	2,787
Income taxes		(202)		(177)		(1,228)	(791)
Net income		518		494		2,900	1,996
Preferred stock dividends		-		-		-	(13)
Net income available to common shareholders	$	518	$	494	$	2,900	$1,983
Earnings per common share (basic and diluted)	$	0.24	$	0.23	$	1.33	$0.91
Return on average assets		0.52%		0.57%		0.77%	0.60%
Return on average equity		6.30%		6.89%		9.44%	6.88%
Net interest margin		3.32%		3.16%		3.31%	3.30%
Net charge-offs(recoveries)/average loans		-0.04%		-0.01%		0.10%	0.24%

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