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For additional information, contact:
Rick L. Hull, President & CEO
Ohio Legacy Corp
(330) 244-2985
FOR RELEASE: August 14, 2012
SUBJECT: OHIO LEGACY CORP REPORTS SECOND QUARTER EARNINGS
NORTH CANTON, OHIO—Ohio Legacy Corp (the “Company”), parent company of Premier Bank & Trust (the “Bank”), reported net income of $33,000 for the three months ended June 30, 2012 compared to a loss of $239,000 for the three months ended June 30, 2011. For the six months ended June 30, 2012, the Company reported a loss of $182,000 compared to a loss of $708,000 for the six months ended June 30, 2011.
Rick L. Hull, President & CEO, stated, “Second quarter results were right on target with our expectations. This small profit marks a return to what we believe will be sustainable profitability from our core banking. Our loan production has exceeded expectations and our pipelines in all areas of lending are robust. We continue to add clients in all banking segments, with a significant increase in our private banking area over the past year. We are excited about these results and about the remainder of 2012.”
Portfolio loan balances increased to $122.6 million at June 30, 2012 from $110.8 million at year-end 2011, an increase of 10.7%. Loans held for sale increased to $7.3 million at June 30, 2012 from $896,000 at year-end 2011. Total deposits increased 9.7%, or $10.1 million, to $114.1 million at June 30, 2012 compared to $104.0 million at year-end 2011.
Asset management revenue increased to $443,000 for the six months ended June 30, 2012 compared to $345,000 for the same period in 2011. Assets under management at June 30, 2012 totaled $111 million with an additional $58 million in assets serviced through its brokerage division. A full service branch office in St. Clairsville, Ohio, opened in February 2012 expanding services previously offered at the St. Clairsville Wealth Office. This opens the door to all residents in the community seeking professional and personal community bank service. Denise Penz, Executive Vice President, Chief Operating Officer and Wealth Division Manager, said, “We are so excited to serve the financial needs of the people we have known for so many years here in this market. Many local landowners have realized some pretty substantial financial windfalls as a result of the Utica and Marcellus shale plays in Belmont, Stark and the surrounding counties. We are fully prepared to assist landowners with their financial planning and other local businesses looking to expand. Many homeowners have a terrific opportunity to refinance their homes and see significant cost savings.”
Mr. Hull said, “The sale of $74.3 million in deposits associated with two banking offices in Wooster, Ohio during the fourth quarter of 2011 turned out just as we anticipated. Our net interest margin increased to 3.62% for the second quarter of 2012 compared to 2.78% for the September 2011 quarter immediately preceding the sale. Although service charges and other deposit-related fees were down about $164,000 for the first half of 2012 compared to the same period of 2011 as a result of the deposit sale, overhead expense savings more than covered this decline. Total noninterest expenses were down $638,000 for the first half of 2012 with a sizable amount of these savings related to Wooster banking offices.”
Ohio Legacy Corp is a bank holding company with total assets of $158 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 | |||
| (Unaudited) | |||
| As of June 30, 2012 and December 31, 2011 | |||
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 695,928 | $ | 778,689 | ||||
| Federal funds sold and interest-bearing deposits in financial institutions | 7,943,003 | 19,267,467 | ||||||
| Cash and cash equivalents | 8,638,931 | 20,046,156 | ||||||
| Certificate of deposit in financial institution | 100,000 | 100,000 | ||||||
| Securities available for sale | 14,256,959 | 10,677,644 | ||||||
| Loans held for sale | 7,311,584 | 895,610 | ||||||
| Loans, net of allowance of $2,271,108 and $2,484,478 at June 30, 2012 and December 31, 2011 | 120,301,447 | 108,277,319 | ||||||
| Federal bank stock | 1,577,750 | 1,597,850 | ||||||
| Premises and equipment, net | 2,547,715 | 2,452,627 | ||||||
| Assets acquired in settlement of loans | 2,152,128 | 2,012,752 | ||||||
| Accrued interest receivable and other assets | 786,895 | 541,409 | ||||||
| Total assets | $ | 157,673,409 | $ | 146,601,367 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 24,191,472 | $ | 21,017,215 | ||||
| Interest-bearing demand | 7,622,579 | 6,190,520 | ||||||
| Savings | 37,019,178 | 38,537,916 | ||||||
| Certificates of deposit, net | 45,237,665 | 38,216,813 | ||||||
| Total deposits | 114,070,894 | 103,962,464 | ||||||
| Repurchase agreements | 5,512,693 | 4,213,612 | ||||||
| Short-term Federal Home Loan Bank advances | 13,000,000 | 13,000,000 | ||||||
| Long-term Federal Home Loan Bank advances | 6,000,000 | 6,000,000 | ||||||
| Accrued interest payable and other liabilities | 545,864 | 837,203 | ||||||
| Total liabilities | 139,129,451 | 128,013,279 | ||||||
| Commitments and contingent liabilities | - | - | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Preferred stock, no par value, 500,000 shares authorized, none outstanding | - | - | ||||||
| Common stock, no par value; | ||||||||
| June 30, 2012 and December 31, 2011: 22,500,000 shares authorized, 19,714,564 shares issued and outstanding | 35,904,793 | 35,806,662 | ||||||
| Accumulated deficit | (17,650,824 | ) | (17,468,889 | ) | ||||
| Accumulated other comprehensive income | 289,989 | 250,315 | ||||||
| Total shareholders' equity | 18,543,958 | 18,588,088 | ||||||
| Total liabilities and shareholders' equity | $ | 157,673,409 | $ | 146,601,367 | ||||
| OHIO LEGACY CORP |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans, including fees | $ | 1,396,125 | $ | 1,351,553 | $ | 2,740,907 | $ | 2,745,516 | ||||||||
| Securities, taxable | 52,886 | 112,655 | 91,854 | 260,618 | ||||||||||||
| Securities, tax-exempt | 27,001 | 27,264 | 53,908 | 54,435 | ||||||||||||
| Interest-bearing deposits, federal funds sold and other | 7,327 | 22,222 | 19,606 | 40,142 | ||||||||||||
| Dividends on federal bank stock | 19,174 | 18,784 | 39,407 | 38,408 | ||||||||||||
| Total interest and dividend income | 1,502,513 | 1,532,478 | 2,945,682 | 3,139,119 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 146,121 | 280,308 | 290,281 | 606,278 | ||||||||||||
| Short-term Federal Home Loan Bank advances | 5,474 | - | 10,150 | 13,754 | ||||||||||||
| Long-term Federal Home Loan Bank advances | 8,503 | - | 17,007 | - | ||||||||||||
| Repurchase agreements | 2,888 | 2,532 | 5,761 | 5,124 | ||||||||||||
| Capital leases | - | 15,941 | - | 32,273 | ||||||||||||
| Total interest expense | 162,986 | 298,781 | 323,199 | 657,429 | ||||||||||||
| Net interest income | 1,339,527 | 1,233,697 | 2,622,483 | 2,481,690 | ||||||||||||
| Provision for loan losses | - | (49,967 | ) | (7,557 | ) | (26,195 | ) | |||||||||
| Net interest income after provision for loan losses | 1,339,527 | 1,283,664 | 2,630,040 | 2,507,885 | ||||||||||||
| Noninterest income: | �� | |||||||||||||||
| Service charges and other fees | 73,421 | 152,589 | 142,002 | 305,782 | ||||||||||||
| Trust and brokerage fee income | 226,949 | 179,212 | 443,336 | 345,051 | ||||||||||||
| Gain on sales of securities available for sale, net | - | - | - | 32,999 | ||||||||||||
| Gain on sale of loans | 38,691 | 21,493 | 61,484 | 48,240 | ||||||||||||
| Gain (loss) on disposition of assets acquired in settlement of loans | 427 | - | (26,414 | ) | (35,299 | ) | ||||||||||
| Loss on disposition of fixed assets | (2,541 | ) | 1,000 | (2,541 | ) | (337 | ) | |||||||||
| Other income | 14,344 | 18,166 | 16,255 | 28,379 | ||||||||||||
| Total noninterest income | 351,291 | 372,460 | 634,122 | 724,815 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and benefits | 892,107 | 1,035,359 | 1,848,617 | 2,080,909 | ||||||||||||
| Occupancy and equipment | 200,666 | 249,829 | 389,195 | 495,665 | ||||||||||||
| Professional fees | 131,314 | 164,257 | 247,033 | 298,908 | ||||||||||||
| Franchise tax | 60,750 | 52,500 | 121,550 | 106,300 | ||||||||||||
| Data processing | 147,598 | 181,879 | 288,152 | 361,874 | ||||||||||||
| Marketing and advertising | 30,786 | 16,410 | 47,705 | 39,359 | ||||||||||||
| Stationery and supplies | 13,414 | 16,285 | 29,274 | 34,733 | ||||||||||||
| Deposit expense and insurance | 78,953 | 94,539 | 151,891 | 207,748 | ||||||||||||
| Other expenses | 122,629 | 233,394 | 327,741 | 464,099 | ||||||||||||
| Total noninterest expense | 1,678,217 | 2,044,452 | 3,451,158 | 4,089,595 | ||||||||||||
| Net income (loss) before income taxes | 12,601 | (388,328 | ) | (186,996 | ) | (856,895 | ) | |||||||||
| Income tax expense (benefit) | (20,438 | ) | (149,384 | ) | (5,061 | ) | (149,384 | ) | ||||||||
| Net income (loss) | $ | 33,039 | $ | (238,944 | ) | $ | (181,935 | ) | $ | (707,511 | ) | |||||
| Basic income (loss) per share | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.04 | ) | |||||
| Diluted income (loss) per share | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.04 | ) | |||||