Clatsop Community Bank reports fourth quarter 2018 results
Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $360,000 or $0.32 per diluted share, for the three months ended December 31, 2018, compared to net loss of $79,000, or $0.07 per diluted share, for the same period the year prior. For the twelve months ended December 31, 2018, the Bank reported a net profit of $968,000, or $0.88 per diluted share, compared to net profit of $373,000, or $0.34 per diluted share for the same period in 2017.
“Clatsop Community Bank had a strong fourth quarter that nicely capped a milestone year,” said president and CEO Joe Schulte. “We celebrated our tenth anniversary, surpassed $100 million in assets, and the bank earned record profits as well,” he added.
Year-to-Date 2018 Financial Highlights:
Return on Average Assets (ROAA):0.95%
Net Interest Margin (TE)(NIM): 3.79%
Efficiency Ratio: 69.38%
Total assets of $95.3 million as of December 31, 2018 increased $5.2 million, or 5.77%, compared to $90.1 million in assets a year ago.
Loans, net of unearned income, decreased $5.3 million to $55.6 million at December 31, 2018, or 8.70% compared to $60.9 million a year ago. The allowance for loan losses as of December 31, 2018 was $540,000, or 0.96% of gross loans, compared to the $641,000, or 1.04% of gross loans as of December 31, 2017. Year-to-date 2018, the Bank had no charge-offs or loan recoveries. For the same period the year prior, the Bank had no charge-offs and $5,000 in loan recoveries.
“Actual new loan production for 2019 was quite strong at $11.8 million. Our new loan growth was out-paced, however, by pay-offs and pay downs,” said Chief Credit Officer Cindy Trask. “Our credit quality remained excellent, finishing the year with zero loans past due and no loan losses. This is, in part, reflective of our market’s good economic environment but also the strong credit culture of the bank,” she added.
The Bank had no other real estate owned (OREO) as of December 31, 2018 or as of December 31, 2017. The Bank had no loans on non-accrual as of December 31, 2018, or as of December 31, 2017.
Deposits and Other Liabilities
Total deposits were $83.7 million as of December 31, 2018, which is an increase of $5.5 million, or 7.03%, compared to $78.2 million in total deposits as of December 31, 2017. Non-interest-bearing deposits increased by $4.3 million or 15.36%, while interest-bearing deposits increased by $1.3 million, or 2.59%, compared to December 31, 2017.
There were no borrowings outstanding as of December 31, 2018 or December 31, 2017.
Net-interest income continued to grow year-over-year. At $955,000 for the three months ended December 31, 2018, net-interest income increased $92,000, or 10.66% over the $863,000 in net-interest income for the same period in 2017. For the twelve months ended December 31, 2018, Net-interest income totaled $3.6 million, an increase of $300,000 or 9.09% compared to $3.3 million as of December 31, 2017. Net-interest margin (TE) at 4.02% for the three months ended December 31, 2018 was four percentage points lower than the 4.06% net-interest margin (TE) during the same period a year ago. For the twelve months ended December 31, 2018, Net-interest margin (TE) totaled 3.79%, fourteen basis points lower than the net-interest margin (TE) of 3.93% a year ago.
Non-interest income, for the three months ended December 31, 2018, at $65,000, decreased $7,000 or 9.72% compared to $72,000 during the same period in 2017. For the twelve months ended December 31, 2018, non-interest income totaled $272,000, a decrease of $36,000 or 11.69% compared to $308,000 as of December 31, 2017. Non-interest expense for the three months ended December 31, 2018, at $646,000, decreased $59,000, or 8.37% over the $705,000 during the same period in 2017. For the twelve months ended December 31, 2018, non-interest expenses totaled $2.7 million, a decrease of $37,000, or 1.36% compared to $2.7 million as of December 31, 2017.
CFO Steve McCoy said, “Net interest income continues to increase as the Bank continues to grow its earning assets and FOMC rate increases work their way through the portfolio. Earnings were also buoyed by a $100,000 negative loan loss provision due to strong credit quality and smaller loan balances. Non-interest expenses remain contained, with year-over-year costs decreasing.”
Equity and Capital
Stockholders’ equity, at $11.4 million as of December 31, 2018, increased $1.2 million, or 11.76% compared to $10.2 million as of December 31, 2017. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.44% as of December 31, 2018, compared to 11.12% as of December 31, 2017, while its total risk-based capital ratio was 18.44% as of December 31, 2018, compared to 15.65% as of December 31, 2017. 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, 2018 was 17.82%, compared to 14.72% as of December 31, 2017.
“Ending 2018 with over a million dollars in net income before taxes marked a pinnacle in terms of the Bank’s performance for the year,” Schulte said. “The Bank continues to maintain strong capital, a high quality loan portfolio and a talented team of bankers who serve our thriving community.”
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 seven of its 10 years in operation. 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.