Clatsop Community Bank reports Q4 2016 results
Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $121,000 or $0.11 per diluted share, for the three months ended December 31, 2016, compared to net profit of $78,000, or $0.07 per diluted share, for the same period the year prior. For the twelve months ended December 31, 2016, the Bank reported a net profit of $515,000, or $0.48 per diluted share, compared to net profit of $548,000, or $0.51 per diluted share for the same period in 2015.
“We’re pleased to report our sixth consecutive profitable year,” said President and CEO Joe Schulte. “We continue to grow despite an unfavorable interest rate environment, high compliance burden and competitive pressures,” he added. “Our focus remains the same—and that is to seek relationship-based deposits and high quality loan opportunities in order to build our organization in a sustainable manner.”
Year-to-Date 2016 Financial Highlights:
Return on Average Assets (ROAA): 0.59%
Net Interest Margin (TE)(NIM): 3.79%
Efficiency Ratio: 79.31%
Total assets of $85.7 million as of December 31, 2016 increased $7.7 million, or 9.87%, compared to $78.0 million in assets a year ago.
Loans, net of unearned income, increased $3.4 million to $54.8 million at December 31, 2016, or 6.61% compared to $51.4 million a year ago. The allowance for loan losses as of December 31, 2016 at $616,000, or 1.12% of gross loans, decreased $7,000 compared to the $623,000, or 1.21% of gross loans as of December 31, 2015. Year-to-date 2016, the Bank had $11,000 in charge-offs and $3,000 in loan recoveries. For the same period the year prior, the Bank had $3,000 in charge-offs and $23,000 in loan recoveries.
“Loan growth was challenging in 2016 due to intense market competition. Consistent with our growth strategy to enhance shareholder value, our focus remains to build profitable, quality relationships. Loan growth for the year tracked closely with the national growth rate for community banks of our size. Our new loan originations exceeded $16 million for the year, with over $2.8 million funded in SBA 7A loans. Our loan portfolio performance continues to be among the best in the region, and should benefit from improving economic conditions in our market,” said Chief Credit Officer Cindy Trask.
The Bank had no other real estate owned (OREO) as of December 31, 2016 compared to $30,000 on December 31, 2015. The Bank had no loans on non-accrual as of December 31, 2016, compared to 0.04% of loans net of unearned income as of December 31, 2015.
Deposits and Other Liabilities
Total deposits were $72.9 million as of December 31, 2016, which is an increase of $4.8 million, or 7.05%, compared to $68.1 million in total deposits as of December 31, 2015. Non-interest-bearing deposits increased by $3.5 million or 16.13%, while interest-bearing deposits increased by $1.4 million, or 3.02%, compared to December 31, 2015.
There were $2.5 million in borrowings outstanding as of December 31, 2016. There were no borrowings outstanding as of December 31, 2015.
Net-interest income remained flat year-over-year. At $781,000 for the three months ended December 31, 2016, net-interest income decreased $1,000, or 0.13% over the $782,000 in net-interest income for the same period in 2015. For the twelve months ended December 31, 2016, Net-interest income totaled $3.0 million, an increase of $94,000 or 3.19% compared to $2.9 million as of December 31, 2015. Net-interest margin (TE) at 3.90% for the three months ended December 31, 2016 was 0.14 percentage points lower than the 4.04% net-interest margin (TE) during the same period a year ago. For the twelve months ended December 31, 2016, Net-interest margin (TE) totaled 3.79%, 0.25 percentage points lower than the net-interest margin (TE) of 4.04% a year ago.
Non-interest income, for the three months ended December 31, 2016, at $87,000, increased $42,000 or 93.33% compared to $45,000 during the same period in 2015. For the twelve months ended December 31, 2016, non-interest income totaled $313,000, a decrease of $42,000 or 11.83% compared to $355,000 as of December 31, 2015. Non-interest expense for the three months ended December 31, 2016, at $701,000, decreased $19,000, or 2.64% compared to $720,000 during the same period in 2015. For the twelve months ended December 31, 2016, non-interest expenses totaled $2.6 million, an increase of $118,000, or 4.69% compared to $2.5 million as of December 31, 2015.
“Although the Bank has experienced net interest margin compression over the last several years, the Bank is well positioned, given the rising rate environment that we are now experiencing. Our pricing discipline and reluctance to extend duration in our loan and deposit portfolios leave us well protected if the FOMC continues to raise rates in 2017,” CFO Steve McCoy said.
Equity and Capital
Stockholders’ equity, at $10.3 million as of December 31, 2016, increased $100,000, or 0.96% compared to $10.2 million as of December 31, 2015. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.25% as of December 31, 2016, compared to 12.27% as of December 31, 2015, while its total risk-based capital ratio was 15.94% as of September 30, 2016, compared to 16.79% as of December 31, 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 September 30, 2016 was 14.99%.
“Clatsop Community Bank continues to offer superior service by highly passionate, professional bankers. The Bank is well positioned for an increasing interest rate environment with an asset sensitive balance sheet, well-controlled expense load and low funding costs. Building on our successes in 2016, we look forward to 2017 and beyond,” Schulte said.
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.