Contact: Edward F. Seserko
President and CEO
(412) 681-8400
For Immediate Release
July 29, 2011
EUREKA FINANCIAL CORP. ANNOUNCES EARNINGS
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2011
Pittsburgh, Pennsylvania – Eureka Financial Corp., (the “Company”), the parent holding company for Eureka Bank (the “Bank”), Pittsburgh, Pennsylvania, today announced earnings for the three months ended June 30, 2011 of $422,000, or $0.34 diluted earnings per share, as compared to net income of $264,000, or $0.20 diluted earnings per share, for the three months ended June 30, 2010. For the nine months ended June 30, 2011, the Company reported net income of $964,000, or $0.75 diluted earnings per share, as compared to net income of $736,000, or $0.56 diluted earnings per share, for the nine months ended June 30, 2010. The increased income in the periods was primarily due to an increase in net interest income and a lower effective tax rate, offset by increased noninterest expense.
Assets increased $12.4 million, or 9.7%, from $127.3 million at September 30, 2010 to $139.7 million at June 30, 2011 primarily due to a $9.9 million, or 43.0% increase in cash and investments and a $4.5 million, or 4.6%, increase in loans. The increase in cash and investments was primarily due to additional securities purchased with the proceeds from our second-step conversion completed in February 2011. The increase in loans was primarily concentrated in loans secured by 1-4 family dwellings and by commercial leases. Deposits increased $6.1 million, or 5.6%, from $111.0 million at September 30, 2010 to $117.2 million at June 30, 2011, primarily due to an increase in certificates of deposit.
Nonaccrual loans increased $408,000, from $58,000 at September 30, 2010 to $466,000 at June 30, 2011, which represents the addition of five loans that were placed on non-accrual status during the third fiscal quarter.
The Bank, founded in 1886, is a federally chartered stock savings bank and operates two offices in Pittsburgh. The Company’s common stock trades in the over-the-counter market under the symbol “EKFC.”
The foregoing material may contain forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially and, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
| EUREKA FINANCIAL CORP. | ||||||||
| Selected Financial Data | ||||||||
(Dollars in thousands except per share data) (Unaudited) | ||||||||
| June 30, | September 30, | |||||||
| 2011 | 2010 | |||||||
| Total assets | $ | 139,698 | $ | 127,309 | ||||
| Cash and investments | 32,845 | 22,968 | ||||||
| Loans receivable, net | 102,560 | 98,034 | ||||||
| Allowance for loan losses | (970 | ) | (905 | ) | ||||
| Deposits | 117,169 | 111,044 | ||||||
| Total liabilities | 118,569 | 113,180 | ||||||
| Stockholders' equity | $ | 21,129 | $ | 14,129 | ||||
| Nonaccrual loans | $ | 466 | $ | 58 | ||||
| Repossessed real estate | 0 | 0 | ||||||
| Total nonperforming assets | $ | 466 | $ | 58 | ||||
| Allowance for loan losses to nonperforming loans | 208.15 | % | 1560.34 | % | ||||
| Nonperforming loans to net loans | 0.45 | % | 0.06 | % | ||||
| Nonperforming assets to total assets | 0.33 | % | 0.05 | % | ||||
| Book value per share (2) | $ | 16.07 | $ | 11.20 | ||||
| Number of common shares outstanding | 1,314,705 | 1,261,231 | ||||||
(Unaudited) Three Months Ended June 30, | (Unaudited) Nine Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Interest income | $ | 1,697 | $ | 1,568 | $ | 4,977 | $ | 4,616 | ||||||||
| Interest expense | 416 | 496 | 1,353 | 1,557 | ||||||||||||
| Net interest income | 1,281 | 1,072 | 3,624 | 3,059 | ||||||||||||
| Provision for loan losses | 30 | 20 | 65 | 40 | ||||||||||||
| Net interest income after provision for loan losses | 1,251 | 1,052 | 3,559 | 3,019 | ||||||||||||
| Noninterest income | 24 | 20 | 59 | 37 | ||||||||||||
| Noninterest expense | 785 | 653 | 2,210 | 1,920 | ||||||||||||
| Income before income taxes | 490 | 419 | 1,408 | 1,136 | ||||||||||||
| Income tax expense | 68 | 155 | 444 | 400 | ||||||||||||
| Net income | $ | 422 | $ | 264 | $ | 964 | $ | 736 | ||||||||
| Earnings Per Share - Basic and Diluted (1) | $ | 0.34 | $ | 0.20 | $ | 0.75 | $ | 0.56 | ||||||||
| (1) | The per share totals reflect the conversion ratio of 1.0457 for shares outstanding prior to the completion on the Company's second-step conversion on February 28, 2011. |
| (2) | The book value per share for September 30, 2010, does not reflect the conversion ratio of 1.0457 on the outstanding shares. |