Clatsop Community Bank Reports Second Quarter 2016 Results

Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $147,000 or $0.14 per diluted share, for the three months ended June 30, 2016, compared to net profit of $157,000, or $0.14 per diluted share, for the same period the year prior.  For the six months ended June 30, 2016, the Bank reported a net profit of $269,000, or $0.25 per diluted share, compared to net profit of $289,000, or $0.26 per diluted share for the same period in 2015.

“We are pleased to report continued profitability for the first half of 2016, particularly in core interest income,” said President and CEO Joe Schulte. “Despite robust competition, limited loan opportunities and a difficult interest rate environment, the Bank continues to grow key funding sources and deploy liquidity in high quality loans and investments.”

Year-to-Date 2016 Financial Highlights:

Return on Average Assets (ROAA): 0.66%
Net Interest Margin (TE)(NIM): 4.02%
Efficiency Ratio: 77.69%

Assets

Total assets of $82.2 million as of June 30, 2016 increased $5.9 million, or 7.73%, compared to $76.3 million in assets a year ago.

Loans, net of unearned income, increased $3.0 million to $53.6 million at June 30, 2016, or 5.93% compared to $50.6 million a year ago. The allowance for loan losses as of June 30, 2016 at $614,000, or 1.15% of gross loans, decreased $12,000 compared to the $626,000, or 1.24% of gross loans as of June 30, 2015. Year-to-date 2016, the Bank had $11,000 in charge-offs and $1,000 in loan recoveries. For the same period the year prior, the Bank had no loan charge-offs and $23,000 in loan recoveries.

“Business loan demand has been modest and competition this quarter has been strong,” said Chief Credit Officer Cindy Trask. “The improving real estate market and increased demand for housing have created lending opportunities in new home construction financing. We continue to focus on supporting our local small business community with our SBA program loans, and we recently ranked 15th of 66 SBA lenders based upon number of loans as of May 2016. Loan portfolio performance and quality remain very strong,” she added.

The Bank had no other real estate owned (OREO) as of June 30, 2016 compared to $31,000 on June 30, 2015. The Bank had no loans on non-accrual as of June 30, 2016, compared to 0.17% of loans net of unearned income as of June 30, 2015.

Deposits and Other Liabilities

Total deposits were $71.9 million as of June 30, 2016, which is an increase of $5.3 million, or 7.96%, compared to $66.6 million in total deposits as of June 30, 2015. Non-interest-bearing deposits increased by $2.8 million or 12.96%, while interest-bearing deposits increased by $2.5 million, or 5.56%, compared to June 30, 2015.

There were no borrowings outstanding as of June 30, 2016 or June 30, 2015

Earnings

Net-interest income continued to grow year-over-year. At $760,000 for the three months ended June 30, 2016, net-interest income increased $43,000, or 6.00% over the $717,000 in net-interest income for the same period in 2015. For the six months ended June 30, 2016, Net-interest income totaled $1.5 million, an increase of $82,000 or 5.80% compared to $1.4 million as of June 30, 2015. Net-interest margin (TE) at 4.09% for the three months ended June 30, 2016 was 0.21 percentage points lower than the 4.30% net-interest margin (TE) during the same period a year ago. For the six months ended June 30, 2016, Net-interest margin (TE) totaled 4.02%, 0.22 percentage points lower than the net-interest margin (TE) of 4.24% a year ago.

Non-interest income, for the three months ended June 30, 2016, at $86,000, decreased $53,000 or 38.13% compared to $139,000 during the same period in 2015. For the six months ended June 30, 2016, non-interest income totaled $151,000, a decrease of $71,000 or 31.98% compared to $222,000 as of June 30, 2015. Non-interest expense for the three months ended June 30, 2016, at $635,000, increased $21,000, or 3.42% over the $614,000 during the same period in 2015. For the six months ended June 30, 2016, non-interest expenses totaled $1.3 million, an increase $67,000, or 5.60% compared to $1.2 million as of June 30, 2015.

CFO Steve McCoy said, “The Bank’s net interest margin is being pressured down, as Brexit, a slowing Chinese economy, and a strong US dollar have depressed interest rates to an all-time low. Despite this challenging environment, the Bank is still making progress toward increased core profitability and risk appropriate growth.”

Equity and Capital

Stockholders’ equity, at $10.1 million as of June 30, 2016, increased $600,000, or 6.32% compared to June 30, 2015. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.75% as of June 30, 2016, compared to 12.41% as of June 30, 2015, while its total risk-based capital ratio was 16.24% as of June 30, 2016, compared to 15.82% as of June 30, 2015. 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%. The Common Equity Tier One ratio under Basel III (Standard Approach) as of March 31, 2016 was 15.25%.

“We continue to pursue local, relationship-driven growth. The Bank possesses ample capital to achieve this goal, and is well positioned for new opportunities as clarity in political and financial conditions emerges in the near future.” Schulte stated.

2016-Q2-chart

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 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, 2014 and 2015. 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.