Clatsop Community Bank reports second quarter 2017 results

Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $156,000 or $0.14 per diluted share, for the three months ended June 30, 2017, compared to net profit of $147,000, or $0.14 per diluted share, for the same period the year prior. For the six months ended June 30, 2017, the Bank reported a net profit of $281,000, or $0.26 per diluted share, compared to net profit of $269,000, or $0.25 per diluted share for the same period in 2016.

“We are pleased to report continued profitability for the first half of 2017, particularly in core interest income,” said President and CEO Joe Schulte. “Despite robust competition, the Bank continues to grow key funding sources and deploy liquidity in high quality loans and investments.”

Year-to-Date 2017 Financial Highlights:

Return on Average Assets (ROAA): 0.65%
Net Interest Margin (TE)(NIM): 4.01%
Efficiency Ratio: 76.05%

Assets

Total assets of $86.7 million as of June 30, 2017 increased $4.5 million, or 5.47%, compared to $82.2 million in assets a year ago.

Loans, net of unearned income, increased $3.7 million to $57.3 million at June 30, 2017, or 6.90% compared to $53.6 million a year ago. The allowance for loan losses as of June 30, 2017 was $617,000, or 1.08% of gross loans, compared to the $614,000, or 1.15% of gross loans as of June 30, 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 $11,000 in charge-offs and $1,000 in loan recoveries.

“We have experienced solid loan growth this quarter and have been able to assist our business community with their financing needs” said Chief Credit Officer Cindy Trask. “We are strong supporters of the SBA 7a program, and currently rank second in the Community Bank category of the US Small Business Administration’s Portland District for SBA 7a production volume. Our loan portfolio performance and asset quality continue to be strong,” she added.

The Bank had no other real estate owned (OREO) as of June 30, 2017 or as of June 30, 2016. The Bank had no loans on non-accrual as of June 30, 2017, or as of June 30, 2016.

Deposits and Other Liabilities

Total deposits were $75.3 million as of June 30, 2017, which is an increase of $3.4 million, or 4.73%, compared to $71.9 million in total deposits as of June 30, 2016. Non-interest-bearing deposits increased by $1.7 million or 6.97%, while interest-bearing deposits increased by $1.6 million, or 3.37%, compared to June 30, 2016.

There were a total of $555,000 borrowings outstanding as of June 30, 2017; there were no borrowings outstanding as of June 30, 2016

Earnings

Net-interest income continued to grow year-over-year. At $810,000 for the three months ended June 30, 2017, net-interest income increased $50,000, or 6.58% over the $760,000 in net-interest income for the same period in 2016. For the six months ended June 30, 2017, Net-interest income totaled $1.6 million, an increase of $117,000 or 7.83% compared to $1.5 million as of June 30, 2016. Net-interest margin (TE) at 4.03% for the three months ended June 30, 2017 was 0.06 percentage points lower than the 4.09% net-interest margin (TE) during the same period a year ago. For the six months ended June 30, 2017, Net-interest margin (TE) totaled 4.01%, 1 basis point lower than the net-interest margin (TE) of 4.02% a year ago.

Non-interest income, for the three months ended June 30, 2017, at $73,000, decreased $13,000 or 15.12% compared to $86,000 during the same period in 2016. For the six months ended June 30, 2017, non-interest income totaled $156,000, an increase of $5,000 or 3.31% compared to $151,000 as of June 30, 2016. Non-interest expense for the three months ended June 30, 2017, at $648,000, increased $13,000, or 2.05% over the $635,000 during the same period in 2016. For the six months ended June 30, 2017, non-interest expenses totaled $1.3 million, an increase of $79,000, or 6.25% compared to $1.3 million as of June 30, 2016.

CFO Steve McCoy said, “The FOMC increased the federal funds rate at the June meeting. The Bank is beginning to recognize some stronger earnings in the investment portfolio as management is able to reinvest principal payments into higher-yielding investments. Although competition for deposits remains strong, deposit rates have not yet begun to increase.”

Equity and Capital

Stockholders’ equity, at $10.6 million as of June 30, 2017, increased $500,000, or 4.95% compared to June 30, 2016. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.71% as of June 30, 2017, compared to 11.75% as of June 30, 2016, while its total risk-based capital ratio was 15.99% as of June 30, 2017, compared to 16.24% as of June 30, 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 June 30, 2017 was 15.07%, compared to 15.25% as of June 30, 2016.

“Capital levels and ratios are strong, which provides a solid foundation for potential growth. The talented team of bankers at Clatsop Community Bank continue to seek and serve local, relationship-based business for the benefit of all stakeholders in our community,” Schulte stated.

2017-Q2chartAbout 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.