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Exhibit 99.1
For additional information, contact:
Rick L. Hull, President & CEO
Ohio Legacy Corp
(330) 244-2985
FOR RELEASE: March 13, 2012
SUBJECT: OHIO LEGACY CORP REPORTS FOURTH QUARTER EARNINGS
NORTH CANTON, OHIO—Ohio Legacy Corp (the “Company”), parent company of Premier Bank & Trust (the “Bank”), reported net income of $2,808,000, or $0.14 per common share, for the three months ended December 31, 2011 compared to a loss of $45,000 for the three months ended December 31, 2010. For the year ended December 31, 2011, the Company earned $1,820,000, or $0.09 per common share, compared to a loss of $3,110,000, or a loss of $0.18 per common share for the year ended December 31, 2010.
A gain on the sale of $74.3 million in deposits associated with two branches located in Wooster, Ohio, contributed approximately $3.5 million to noninterest income during the fourth quarter of 2011, and a gain on the assignment of an office lease related to the deposit sale totaled approximately $218,000. Net loans sold in connection with the branch deposit sale totaled $9.1 million. Costs associated with the branch disposal totaled $46,000 for the fourth quarter and $212,000 for 2011.
Asset management revenue increased to $744,000 in 2011 from $224,000 in 2010 based on a full year of operation for the Wealth business which commenced during the second quarter of 2010. Assets under management at yearend 2011 totaled $105 million. The Bank’s wealth office located in St. Clairsville, Ohio, recently expanded to include a full service branch office that opened in February 2012.
Net interest income—the difference between interest income and interest expense—increased $131,000 for the fourth quarter of 2011 compared to the same quarter of 2010. For the year ended December 31, 2011, net interest income increased $340,000. The Company’s net interest margin increased to 3.19% for 2011 compared to 2.93% for 2010. On a linked quarter basis, the net interest margin for the fourth quarter of 2011 was 3.62%, up from 2.95% for the third quarter of 2011.
The provision expense for loan losses for the fourth quarter of 2011 was $288,000 compared to a negative loan loss provision of $257,000 for the fourth quarter of 2010. Provision expense for 2011 was $153,000 compared to a negative provision of $116,000 for 2010. Net loans increased to $108.3 million at yearend 2011 compared to $101.1 million at yearend 2010, following the $9.1 million in loans sold related to the Wooster transaction.
Total deposits decreased by $39.2 million at yearend 2011 to $104.0 million from $143.2 million at yearend 2010 following the sale of $74.3 million in deposits during the fourth quarter of 2011. Excluding the deposits sold, deposits would have increased an estimated $35 million.
Non-interest expense increased during the fourth quarter of 2011 to $2,150,000 compared to $2,126,000 for the fourth quarter of 2010. For the year ended December 31, 2011, non-interest expense decreased to $8,355,000 compared to $8,934,000 for 2010. Non-interest expense for 2011 included $212,000 in expenses related to the branch deposit sale, and non-interest expense for 2010 included $517,000 in non-recurring investor expenses associated with the Company’s stock issuance in February 2010.
The Bank’s Tier One regulatory capital totaled $18.1 million at yearend 2011. The Tier One leverage ratio was 12.1%, and total risk-based capital to risk-weighted assets ratio was 17.7%. Asset quality improved with classified loan balances decreasing to $6.3 million at yearend 2011 from $8.5 million at yearend 2010. In addition, loans monitored as special mention declined to $3.3 at yearend 2011 from $7.5 million at yearend 2010. Assets acquired in settlement of loans, which includes other real estate owned, declined to $2.0 million at yearend 2011 from $2.4 million at yearend 2010. In September 2011, the Company announced termination of the Bank’s Consent Order by Office of the Comptroller of the Currency (the “OCC”), its primary regulator.
“In the third quarter of 2011 we were relieved of the regulatory order from the OCC. In the fourth quarter, we finalized the sale of the Wooster portion of our franchise,” stated Rick L. Hull, President & CEO. Hull further stated, “Over the course of 2011 we improved every aspect of our core business; we increased lending in every area, grew our deposits, and added significant assets under management by our Wealth department--all while effectively managing controllable operating expenses. We are pleased with our progress and have positioned ourselves for growth opportunities to leverage both our capital and market positions in 2012.”
Ohio Legacy Corp is a bank holding company with total assets of $147 million with Premier Bank & Trust offices in North Canton and St. Clairsville, Ohio. Ohio Legacy Corp stock trades on the NASDAQ Capital Market under the symbol OLCB.
Forward-looking Statements
In addition to historic information, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact, including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "expects", "should", "believes", "plans", "anticipates", "estimates", "predicts", "potential", "continue", or other words of similar meaning. Readers should not place undue reliance on forward-looking statements, which reflect management's opinion only as of the date on which they were made and, due to many factors, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in, or implied by, the forward looking statements. These factors include general economic conditions which could increase loan losses above loan loss reserves, competition from other banking institutions, financial institutions and nonbank or non-regulated companies or firms that engage in similar activities with significantly greater resources, credit, market, operational, liquidity and interest rate risks, fiscal and monetary policies and legislation impacting future operations and performance and adverse business conditions. Except as required by law, the Company disclaims any obligation to review or update these forward-looking statements to reflect events or circumstances as they occur. Readers should also carefully review these and other risk factors described in Company reports filed with the Securities and Exchange Commission.
| OHIO LEGACY CORP | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| As of December 31, 2011 and December 31, 2010 | ||||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 778,689 | $ | 1,121,473 | ||||
| Federal funds sold and interest-bearing deposits in financial institutions | 19,267,467 | 31,560,745 | ||||||
| Cash and cash equivalents | 20,046,156 | 32,682,218 | ||||||
| Certificate of deposit in financial institution | 100,000 | 100,000 | ||||||
| Securities available for sale | 10,677,644 | 25,206,895 | ||||||
| Securities held to maturity (fair value December 31, 2011 - $0, December 31, 2010 - $2,885,216) | - | 2,815,634 | ||||||
| Loans held for sale | 895,610 | 636,794 | ||||||
| Loans, net of allowance of $2,484,478 and $3,055,766 at December 31, 2011 and December 31, 2010 | 108,277,319 | 101,146,194 | ||||||
| Federal bank stock | 1,597,850 | 1,557,700 | ||||||
| Premises and equipment, net | 2,452,627 | 3,461,455 | ||||||
| Assets acquired in settlement of loans | 2,012,752 | 2,351,302 | ||||||
| Accrued interest receivable and other assets | 541,409 | 658,779 | ||||||
| Total assets | $ | 146,601,367 | $ | 170,616,971 | ||||
| Commitments and contingent liabilities | - | - | ||||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 21,017,215 | $ | 20,760,836 | ||||
| Interest-bearing demand | 6,190,520 | 9,564,745 | ||||||
| Savings | 38,537,916 | 59,285,422 | ||||||
| Certificates of deposit, net | 38,216,813 | 53,604,644 | ||||||
| Total deposits | 103,962,464 | 143,215,647 | ||||||
| Repurchase agreements | 4,213,612 | 4,391,252 | ||||||
| Short-term Federal Home Loan Bank advances | 13,000,000 | - | ||||||
| Long-term Federal Home Loan Bank advances | 6,000,000 | 5,000,000 | ||||||
| Capital lease obligations | - | 407,593 | ||||||
| Accrued interest payable and other liabilities | 837,203 | 1,131,963 | ||||||
| Total liabilities | $ | 128,013,279 | $ | 154,146,455 | ||||
| SHAREHOLDERS' EQUITY | ||||||||
| Preferred stock, no par value, 500,000 shares authorized, none outstanding | - | - | ||||||
| Common stock, no par value; | ||||||||
| December 31, 2011 and December 31, 2010: 22,500,000 shared authorized, 19,714,564 shares issued and outstanding | 35,806,662 | 35,603,803 | ||||||
| Accumulated deficit | (17,468,889 | ) | (19,289,011 | ) | ||||
| Accumulated other comprehensive income | 250,315 | 155,724 | ||||||
| Total shareholders' equity | 18,588,088 | 16,470,516 | ||||||
| Total liabilities and shareholders' equity | $ | 146,601,367 | $ | 170,616,971 | ||||
| OHIO LEGACY CORP | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| For the Three Months Ended | For the year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans, including fees | $ | 1,374,163 | $ | 1,371,711 | $ | 5,529,061 | $ | 5,745,760 | ||||||||
| Securities, taxable | 49,082 | 170,398 | 372,574 | 897,438 | ||||||||||||
| Securities, tax-exempt | 17,239 | 28,187 | 98,851 | 113,900 | ||||||||||||
| Interest-bearing deposits, federal funds sold and other | 14,380 | 19,059 | 79,554 | 76,397 | ||||||||||||
| Dividends on federal bank stock | 18,521 | 18,344 | 74,566 | 71,390 | ||||||||||||
| Total interest and dividend income | 1,473,385 | 1,607,699 | 6,154,606 | 6,904,885 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 160,551 | 392,197 | 1,037,267 | 1,846,924 | ||||||||||||
| Short-term Federal Home Loan Bank advances | 11,783 | - | 4,381 | - | ||||||||||||
| Long-term Federal Home Loan Bank advances | - | 30,650 | 21,156 | 279,955 | ||||||||||||
| Repurchase agreements | 2,768 | 2,978 | 11,036 | 8,909 | ||||||||||||
| Capital leases | 2,267 | 16,692 | 49,966 | 68,790 | ||||||||||||
| Investor notes | - | - | - | 9,693 | ||||||||||||
| Total interest expense | 177,369 | 442,517 | 1,123,806 | 2,214,271 | ||||||||||||
| Net interest income | 1,296,016 | 1,165,182 | 5,030,800 | 4,690,614 | ||||||||||||
| Provision for loan losses | 287,974 | (256,890 | ) | 152,905 | (116,147 | ) | ||||||||||
| Net interest income after provision for loan losses | 1,008,042 | 1,422,072 | 4,877,895 | 4,806,761 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and other fees | 87,623 | 177,698 | 551,361 | 710,253 | ||||||||||||
| Trust and brokerage fee income | 202,523 | 131,081 | 743,850 | 223,625 | ||||||||||||
| Gain on sales of securities available for sale, net | - | 124,936 | 358,030 | 156,165 | ||||||||||||
| Other than temporary impairment loss: | - | - | ||||||||||||||
| Total impairment loss | - | - | - | (47,200 | ) | |||||||||||
| Loss recognized in other comprehensive income | - | - | - | - | ||||||||||||
| Net impairment loss recognized in earnings | - | - | - | (47,200 | ) | |||||||||||
| Gain on sale of loans | 38,204 | 53,033 | 109,629 | 68,084 | ||||||||||||
| Gain on sale of branch deposits | 3,526,070 | - | 3,526,070 | - | ||||||||||||
| Gain on assignment of branch lease | 217,532 | - | 217,532 | - | ||||||||||||
| Loss on disposition of other real estate owned | (145,884 | ) | (39,570 | ) | (268,117 | ) | (341,631 | ) | ||||||||
| Loss on disposition of fixed assets | (69 | ) | - | (3,818 | ) | (8,699 | ) | |||||||||
| Other income | 24,101 | 9,961 | 62,549 | 53,574 | ||||||||||||
| Total noninterest income | 3,950,100 | 457,139 | 5,297,086 | 814,171 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and benefits | 1,170,798 | 1,054,811 | 4,228,249 | 3,970,412 | ||||||||||||
| Occupancy and equipment | 225,534 | 258,073 | 954,872 | 930,594 | ||||||||||||
| Professional fees | 113,770 | 160,814 | 579,491 | 767,586 | ||||||||||||
| Franchise tax | 51,649 | 6,666 | 209,824 | 29,466 | ||||||||||||
| Data processing | 183,551 | 178,048 | 728,243 | 722,155 | ||||||||||||
| Marketing and advertising | 23,551 | 3,362 | 74,669 | 129,817 | ||||||||||||
| Stationery and supplies | 17,491 | 21,674 | 71,362 | 80,157 | ||||||||||||
| Amortization of intangible asset | - | - | - | - | ||||||||||||
| Deposit expense and insurance | 90,008 | 110,735 | 389,509 | 496,727 | ||||||||||||
| Branch disposal expenses | 45,697 | - | 212,383 | - | ||||||||||||
| Investor expenses | - | - | - | 517,222 | ||||||||||||
| Other expenses | 228,390 | 332,150 | 906,257 | 1,289,407 | ||||||||||||
| Total noninterest expense | 2,150,439 | 2,126,333 | 8,354,859 | 8,933,543 | ||||||||||||
| Net income (loss) before income taxes | 2,807,703 | (247,122 | ) | 1,820,122 | (3,312,611 | ) | ||||||||||
| Income tax expense (benefit) | - | (202,501 | ) | - | (202,501 | ) | ||||||||||
| Net income (loss) | $ | 2,807,703 | $ | (44,621 | ) | $ | 1,820,122 | $ | (3,110,110 | ) | ||||||
| Basic income (loss) per share | $ | 0.14 | $ | (0.00 | ) | $ | 0.09 | $ | (0.18 | ) | ||||||
| Diluted income (loss) per share | $ | 0.14 | $ | (0.00 | ) | $ | 0.09 | $ | (0.18 | ) | ||||||