Clatsop Community Bank reports Q1 2017 results
Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $125,000 or $0.12 per diluted share, for the three months ended March 31, 2017, compared to net profit of $124,000, or $0.12 per diluted share, for the same period the year prior.
“Management is pleased to report another profitable quarter for Q1 2017. Our expense ratios are in line with those of other Oregon banks, despite our smaller size, and net interest income–a primary driver for earnings–has continued to grow,” said President and CEO Joe Schulte.
Year-to-Date 2017 Financial Highlights:
Return on Average Assets (ROAA): 0.58%
Net Interest Margin (TE)(NIM): 4.06%
Efficiency Ratio: 78.53%
Total assets of $87.4 million as of March 31, 2017 increased $5.5 million, or 6.72%, compared to $81.9 million in assets a year ago.
Loans, net of unearned income, increased $3.7 million to $56.6 million at March 31, 2017, or 7.00 compared to $52.9 million a year ago. The allowance for loan losses as of March 31, 2017 at $617,000, or 1.09% of gross loans, decreased $8,000 compared to the $625,000, or 1.18% of gross loans as of March 31, 2016. Year-to-date 2017, the Bank had no charge-offs and $2,000 in loan recoveries. For the same period the year prior, the Bank had no charge-offs and $1,000 in loan recoveries.
“Credit quality continues to be strong,” said Chief Credit Officer Cindy Trask. “We’ve experienced an increase in business loan activity and are pleased with the portfolio growth. The Bank’s SBA preferred lender status has allowed us to meet the borrowing needs of a number of business clients in our community,” she added.
The Bank had no other real estate owned (OREO) as of March 31, 2017 or March 31, 2016. The Bank had no loans on non-accrual as of March 31, 2017 or March 31, 2016.
Deposits and Other Liabilities
Total deposits were $72.8 million as of March 31, 2017, which is an increase of $1.0 million, or 1.39%, compared to $71.8 million in total deposits as of March 31, 2016. Non-interest-bearing deposits were $24.3 million as of March 31, 2017, which is a decrease of $300,000 or 1.22%, compared to $24.6 million as of March 31, 2016. Interest-bearing deposits were $48.6 million as of March 31, 2017, which is an increase of $1.5 million, or 3.18%, as compared to $47.1 million as of March 31, 2016.
There were $4.0 million in borrowings outstanding as of March 31, 2017. There were no borrowings outstanding as of March 31, 2016.
At $802,000 for the three months ended March 31, 2017, net-interest income increased $67,000, or 9.12% over the $735,000 in net-interest income for the same period in 2016. Net-interest margin (TE) at 4.06% for the three months ended March 31, 2017 was 0.03 percentage points lower than the 4.09% net-interest margin (TE) during the same period a year ago.
Non-interest income, for the three months ended March 31, 2017, at $83,000, increased $18,000 or 27.69% compared to $65,000 during the same period in 2016. Non-interest expense for the three months ended March 31, 2017, at $695,000, increased $68,000, or 10.85% compared to $627,000 during the same period in 2016.
“Net interest income continues to increase as the Federal Open Market Committee has continued on their path of increasing short term rates. Net interest margin has stabilized and is holding steady at slightly above 4.00%. This compares favorably to our FDIC peer group.” CFO Steve McCoy said.
Equity and Capital
Stockholders’ equity, at $10.3 million as of March 31, 2017, increased $400,000, or 4.04% compared to $9.9 million as of March 31, 2016. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.52% as of March 31, 2017, compared to 11.85% as of March 31, 2016, while its total risk-based capital ratio was 15.27% as of March 31, 2017, compared to 15.87% as of March 31, 2016. 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, 2017 was 14.36% as compared to 14.87% for the same period a year ago.
“The Bank continues to maintain a strong capital base and strong credit culture,” Schulte said. “We promote superior customer service and local decision making as the only locally owned and operated bank in Clatsop County. These differentiating attributes continue to attract growth in our market.”
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.