Clatsop Community Bank Reports Second Quarter 2014 Results
FOR IMMEDIATE RELEASE: July 15, 2014
Joe Schulte, President and Chief Executive Officer
503.738.8000 or firstname.lastname@example.org
SEASIDE, OR—Clatsop Community Bank (OTC: CLAT), reported a net profit of $83,000, or $0.07 per diluted share, for the three months ended June 30, 2014, compared to net profit of $164,000, or $0.15 per diluted share, for the same period the prior year. Net income for the three months ended June 30, 2014 includes a tax provision of $52,000, while there was no tax provision made during the same period of the prior year as a result of a full DTA valuation allowance. Net income for the three months ended June 30, 2014 included a gain on the sale of securities of $9,000, while there was a gain on the sale of securities in the amount of $116,000 for the same period 2013.For the six months ended June 30, 2014, the Bank reported a net profit of $130,000, compared to net profit of $201,000 for the same period in 2013. For the six months ended June 30, 2014, net income before taxes, extraordinary items and gains on the sale of securities was $208,000, compared to net profit of $88,000 for the same period 2013.
“We are very pleased that our core earnings continue to grow rapidly,” President and CEO Joe Schulte said. “After accounting for period-over-period extraordinary gains and tax treatment differences, we see meaningful acceleration in earnings growth.”
Year-to-Date 2014 Financial Highlights:
Return on Average Assets (ROAA): 0.38%
Net Interest Margin (TE)(NIM): 4.07%
Efficiency Ratio: 83.40%
Total assets of $71.5 million as of June 30, 2014 increased $6.8 million, or 10.51%, compared to $64.7 million in assets a year ago.
Loans, net of unearned income, increased $4.4 million to $44.5 million at June 30, 2014, or 10.97% compared to $40.1 million a year ago. The allowance for loan losses as of June 30, 2014 at $542,000, or 1.22% of gross loans, was less than the $566,000, or 1.41% of gross loans as of June 30, 2013. Year-to-date 2014, the Bank had $10,000 in loan charge-offs and $3,000 in loan recoveries, compared to the same period the year prior when the Bank had $10,000 in loan charge-offs with no recoveries.
Other real estate owned (OREO) at $139,000 as of June 30, 2014 increased $25,000, or 21.92% compared to June 30, 2013. Nonaccrual loans represented 0.37% of loans net of unearned income as of June 30, 2014, compared to 1.49% of loans net of unearned income as of June 30, 2013.
“High quality loan growth continues to be management’s first priority,” Schulte said. “We are pleased with the improvement so far this year in both credit quality and quantity.”
As of June 30, 2014 the Bank has over $16.7 million of excess cash and unpledged securities. This provides ample opportunities for loan growth.
Deposits and Other Liabilities
Total deposits were $63.8 million as of June 30, 2014, which is an increase of $6.3 million, or 10.95%, compared to $57.5 million in total deposits as of June 30, 2013. Non-interest-bearing deposits increased by $3.6 million or 27.17%, while interest-bearing deposits increased by $2.7 million, or 6.16%.
There were no borrowings outstanding as of June 30, 2014 or June 30, 2013.
“Our relationship-banking model has proven to be very popular,” Schulte said. “The strong deposit growth we experienced over the last several years is evidence to that fact. Our focus on the customer through quick, flexible decision-making and friendly service continues to provide us a growing, satisfied customer base,” he added.
Net-interest income continues to grow year-over-year. At $653,000 for the three months ended June 30, 2014, net-interest income was $70,000 higher, or 12.00% more than the $583,000 in net-interest income for the same period in 2013. Net-interest margin (TE) at 4.07% for the three months ended June 30, 2014 was 0.10% lower than the 4.17% net-interest margin (TE) during the same period a year ago.
Non-interest income, excluding gains on sales of securities, for the three months ended June 30, 2014 at $49,000 increased $16,000 or 48.48% from $33,000 during the same period in 2013. Non-interest expense for the three months ended June 30, 2014, at $574,000, was $12,000 higher, or 2.13% more than the $562,000 during the same period in 2013.
CFO Steve McCoy said, “Earnings continue to improve in-step with our growing asset base. We’ve been able to combat net-interest margin compression very effectively by continuing to expand our lending opportunities.”
Equity and Capital
Stockholders’ equity, at $7.5 million as of June 30, 2014, increased $451,000 compared to June 30, 2013. The bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 10.89% as of June 30, 2014, compared to 11.36% as of June 30, 2013, while its total risk-based capital ratio was 16.09% as of June 30, 2014, compared to 17.34% as of June 30, 2013. To be well-capitalized under prompt corrective action provisions, the bank must maintain a tier-one leverage ratio of greater than 5.0%, and a total risk-based capital ratio of greater than 10.0%.
“Our capital base is strong and expanding, providing a solid foundation for future growth,” Schulte concluded.
About Clatsop Community Bank:
Information about the Company’s stock may be obtained through the OTCQB marketplace at www.otcmarkets.com. Clatsop Community Bank’s stock symbol is CLAT. Clatsop Community Bank was formed in 2008 in order to serve Clatsop County and neighboring counties as the only locally-owned and operated Bank in the area. The Bank has been named among the “100 Best Companies to Work for in Oregon” by Oregon Business Magazine for 2009, 2010, 2011, 2012, 2013, and 2014. For more information about Clatsop Community Bank, visit our website at www.clatsopbank.com. Information contained in or linked to our website is not incorporated as a part of this release.
Certain statements in this release may constitute forward-looking statements within the definition of the “safe-harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant uncertainties, which could cause actual results to differ materially from those set forth in such statements. Forward-looking statements are those that incorporate management’s current expectations and plans based on information currently known to them. These statements can sometimes be identified by words such as “believe,” “estimate,” “anticipate,” “expect,” “intend,” “will,” “may,” “should,” or other similar phrases or words. Readers are cautioned not to place undue reliance on forward-looking statements. In particular, they should not be construed as assurances of a given level of performance or as promises of a given set of management’s actions. Some of the factors that could cause management to deviate from its current plans, or could cause the Company’s results to differ from current expectations, include the effect of localized or regional economic shifts that may affect the collectability of loans or the value of the collateral underlying those loans; the effects of laws, regulations, policies and government actions upon the Company’s assets and operations; sensitivity to the Northwestern Oregon geographic markets and events affecting those markets; and the impacts of new government initiatives upon us and our borrowers. The Company does not intend to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Clatsop Community Bank’s stock ticker symbol is CLAT and is traded OTC. For more information regarding stock transactions, please contact your broker or Joey Warmenhoven at McAdams/Wright/Ragen, 800-754-2841.