Clatsop Community Bank Reports Fourth Quarter 2015 Results
Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $63,000 or $0.06 per diluted share, for the three months ended December 31, 2015, compared to net profit of $1.55 million, or $1.42 per diluted share, for the same period the year prior. For the twelve months ended December 31, 2015, the Bank reported a net profit of $533,000, or $0.50 per diluted share, compared to net profit of $1.78 million, or $1.66 per diluted share for the same period in 2014.
“Management is pleased with the financial results Clatsop Community Bank achieved during 2015. The entire industry has experienced tremendous pressure from regulators, historically low interest rates, and fierce competition. Even under these circumstances, the Bank easily had the best operating performance in its history,” Schulte said.
Year-to-Date 2015 Financial Highlights
- Return on Average Assets (ROAA): 0.69%
- Net Interest Margin (TE)(NIM): 4.04%
- Efficiency Ratio: 77.26%
Total assets of $78.0 million as of December 31, 2015 increased $6.8 million, or 9.55%, compared to $71.2 million in assets a year ago.
Loans, net of unearned income, increased $3.6 million to $51.4 million at December 31, 2015, or 7.53% compared to $47.8 million a year ago. The allowance for loan losses as of December 31, 2015 at $623,000, or 1.21% of gross loans, increased $19,000 compared to the $604,000, or 1.19% of gross loans as of December 31, 2014. Year-to-date 2015, the Bank had $3,000 in charge-offs and $23,000 in loan recoveries. For the same period the year prior, the Bank had $14,000 in loan charge-offs and $3,000 in loan recoveries.
Michael Schlieski, who has been CCO since the inception of the bank, announced his retirement in 2015 and will complete his service at the end of January 2016. The Bank hired Cindy Trask as his replacement.
“I am very thankful for all of the tremendous accomplishments Mike contributed to our success. He will be missed, though we are very excited about our future and know the portfolio will be in very good hands with Cindy Trask,” Schulte stated.
“Mike’s retirement created an amazing opportunity for me to join Clatsop Community Bank,” Trask said. “The state of the loan portfolio, with superb credit quality and profitable growth, made joining this local team an easy decision. Mike built a great foundation and I look forward to providing the same level of exceptional service to our clients,” she added.
Other real estate owned (OREO) at $30,000 as of December 31, 2015 is down $1,000, or 3.23% compared to $31,000 on December 31, 2014. Nonaccrual loans represented 0.04% of loans net of unearned income as of December 31, 2015, compared to 0.29% of loans net of unearned income as of December 31, 2014.
Deposits and Other Liabilities
Total deposits were $68.1 million as of December 31, 2015, which is an increase of $7.3 million, or 12.01%, compared to $60.8 million in total deposits as of December 31, 2014. Non-interest-bearing deposits increased by $4.0 million or 22.6%, while interest-bearing deposits increased by $3.2 million, or 7.42%, compared to December 31, 2014.
There were no borrowings outstanding as of December 31, 2015 as compared to $1.0 million as of December 31, 2014.
Net-interest income continues to grow year-over-year. At $782,000 for the three months ended December 31, 2015, net-interest income increased $68,000, or 9.52% over the $714,000 in net-interest income for the same period in 2014. For the twelve months ended December 31, 2015, net-interest income increased $232,000, or 8.55% over the $2.7 million for the same period in 2014. Net-interest margin (TE) at 4.29% for the three months ended December 31, 2015 was 0.39 percentage points lower than the 4.68% net-interest margin (TE) during the same period a year ago. For the twelve months ended December 31, 2015, Net-interest margin (TE) at 4.04% was 0.42 percentage points lower than the 4.46% net-interest margin (TE) during the same period a year ago.
Non-interest income, for the three months ended December 31, 2015, at $47,000, decreased $87,000 or 64.9% compared to $134,000 during the same period in 2014. For the twelve months ended December 31, 2015, non-interest income at $311,000 increased $28,000 or 9.89% compared to $283,000 during the same period a year ago. Non-interest expense for the three months ended December 31, 2015, at $720,000, increased $59,000, or 8.93% over the $661,000 during the same period in 2014. For the twelve months ended December 31, 2015, non-interest expense at $2.5 million increased $120,000, or 5.01% over the $2.4 million in non-interest expense during the same period a year ago.
CFO Steve McCoy said, “Net-interest income, our most important revenue component, continues to increase despite margin compression. This profitable growth, combined with future potential increases in the interest rate environment, should benefit earnings in the future.”
Equity and Capital
Stockholders’ equity, at $9.8 million as of December 31, 2015, increased $500,000, or 5.47% compared to December 31, 2014. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 12.27% as of December 31, 2015, compared to 11.3% as of December 31, 2014, while its total risk-based capital ratio was 16.79% as of December 31, 2015, compared to 16.25% as of December 31, 2014. 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 December 31, 2015 was 15.79%.
“Clatsop Community Bank needs to remain flexible in the current environment,” Schulte said. “While the increase in interest rates that occurred in 2015 was widely anticipated, future interest rate increases are less certain. Management will continue to maintain a defensive investment position, a measured appetite for credit risk, and appropriate compensation for our risk spectrum,” he added.
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.
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.