Exhibit 99.1
Clifton Bancorp Inc. Announces
Financial Results for the Second Quarter Ended September 30, 2017;
Declares Cash Dividend
Clifton, New Jersey – November 1, 2017 — Clifton Bancorp Inc. (Nasdaq: CSBK) (the “Company”), the holding company for Clifton Savings Bank (“CSBK”), today announced results for the second quarter ended September 30, 2017. Net income for the second quarter was $2.31 million ($0.11 per share, basic and diluted) as compared to net income of $1.24 million ($0.06 per share, basic and diluted) for the second quarter ended September 30, 2016. Net income for the six months ended September 30, 2017 was $3.71 million ($0.17 per share, basic and diluted) as compared to $2.26 million ($0.10 per share, basic and diluted) for the same period in 2016.
The Board of Directors also announced today a cash dividend of $0.06 per common share for the quarter ended September 30, 2017. The dividend will be paid on December 1, 2017 to stockholders of record on November 17, 2017.
Notable Items
| | • | | Net income increased by 85.7%, or $1.1 million, to $2.31 million for the quarter ended September 30, 2017 compared to $1.24 million for the quarter ended September 30, 2016; |
| | • | | Net income for the quarter ended September 30, 2017 included gains on the sale of securities totaling $593,000 versus no gains for the 2016 quarter; |
| | • | | Total assets increased 8.6%, or $122.7 million, from $1.43 billion at March 31, 2017 to $1.55 billion at September 30, 2017; |
| | • | | Loans receivable, net grew 13.2%, or $132.6 million, from $1.01 billion at March 31, 2017 to $1.14 billion at September 30, 2017: |
| | - | One-to-four family real estate loans increased 3.0%, or $21.0 million, from $702.4 million at March 31, 2017 to $723.4 million at September 30, 2017; |
| | - | Multi-family and commercial real estate loans increased 38.2%, or $112.4 million, from $294.4 million at March 31, 2017 to $406.8 million at September 30, 2017; |
| | • | | Loan mix betweenone-to-four family real estate loans, and multi-family and commercial real estate loans, to total loans shifted from 69.5% and 29.1%, respectively, at March 31, 2017, to 63.2% and 35.6%, respectively, at September 30, 2017; |
| | • | | Deposits increased 8.3%, or $69.7 million, from $844.8 at March 31, 2017 to $914.6 at September 30, 2017 with savings and checking deposits to total deposits increasing from 33.9% at March 31, 2017 to 36.7% at September 30, 2017; |
| | • | | Stockholders’ equity declined as a percentage of total assets from 23.1% at September 30, 2016, and 20.7% at March 31, 2017, to 18.4% at September 30, 2017; and |
| | • | | The Company repurchased 299,100 shares at a weighted average price of $15.76 during the quarter ended September 30, 2017. Since the Company commenced its first post second-step conversion repurchase program on April 1, 2015, it has repurchased 5,960,753 shares at a weighted average price of $14.50 per share. |
Paul M. Aguggia, Chairman and Chief Executive Officer, stated, “We are pleased with our second quarter results as we increased net income in the face of continuing margin pressure. The primary driver of our increased earnings continues to be our overall loan growth. We approach the second half of our fiscal year with continued confidence in our ability to generate relatively higher yielding assets. Lowering our cost of funds remains a priority, but is a significant challenge in our hyper competitive deposit-gathering environment. ”
Balance Sheet and Credit Quality Review
Total assets increased $122.7 million, or 8.6%, from $1.43 billion at March 31, 2017, to $1.55 billion at September 30, 2017. The increase in total assets was primarily due to an increase in loans.
Net loans increased $132.6 million, or 13.2%, from $1.01 billion at March 31, 2017, to $1.14 billion at September 30, 2017.One-to-four family real estate loans increased $21.0 million, or 3.0%, while multi-family and commercial real estate loans increased $112.4 million, or 38.2%, during the six months ended September 30, 2017. Securities, including both available for sale and held to maturity issues, decreased $15.7 million, or 5.0%, from $315.3 million at March 31, 2017, to $299.6 million at September 30, 2017, mainly due to sales, maturities and repayments. Securities held to maturity totaling $10.2 million were sold during thesix-month period ended September 30, 2017, resulting in a gain of $593,000. One security totaling $3.7 million was sold during thesix-month period ended September 30, 2016, resulting in a gain of $84,000. Cash and cash equivalents increased $1.4 million, or 9.5%, from $14.7 million at March 31, 2017, to $16.0 million at September 30, 2017, as a small portion of cash flows from deposits and borrowed funds were not yet redeployed into higher yielding assets.
Deposits increased $69.7 million, or 8.3%, from $844.8 million at March 31, 2017, to $914.6 million at September 30, 2017. CSBK launched a high-yielding checking account in May 2017 that was responsible for a significant percentage of the period’s deposit growth. Borrowed funds increased $64.9 million, or 23.5%, from $275.8 million at March 31, 2017, to $340.7 million at September 30, 2017. The Company’s outstanding borrowings at September 30, 2017 had a weighted average rate of 1.81% and a weighted average term of 19 months. All outstanding borrowings are with the Federal Home Loan Bank of New York.
Total stockholders’ equity decreased $10.7 million, or 3.6%, from $296.6 million at March 31, 2017, to $285.9 million at September 30, 2017 primarily as a result of $8.7 million in repurchases of common stock, and the payment of $7.9 million in cash dividends, including the $0.25 special dividend paid in July totaling $5.3 million, partially offset by net income of $3.7 million.
Nonaccrual loans increased $656,000, or 17.8%, to $4.3 million at September 30, 2017 as compared to $3.7 million at March 31, 2017. Included in nonaccrual loans at September 30, 2017 were seven loans totaling $1.2 million that were current or less than 90 days delinquent,
but which were previously 90 days or more delinquent and on nonaccrual status pending a sustained period of repayment performance (generally six months). The percentage of nonperforming loans to total gross loans was 0.41% at both September 30, 2017 and March 31, 2017. The allowance for loan losses to nonperforming loans increased to 154.12% at September 30, 2017 from 146.11% at March 31, 2017, as nonperformingone-to-four family loans increased slightly and provisions were added (mainly due to significant increases in loans outstanding).
Income Statement Review
Net interest income increased by $1.1 million, or 16.0%, to $8.2 million for the three months ended September 30, 2017, as compared to $7.1 million for the three months ended September 30, 2016. Net interest income increased despite a decrease of 7 basis points in net interest margin and a decrease of $9.6 million in average net interest-earning assets. The increase was primarily due to other categories of interest-earning assets being redeployed into CSBK’s highest yielding asset category (multi-family and commercial loans).
Net interest income increased by $2.1 million, or 14.9%, to $16.1 million for the six months ended September 30, 2017, as compared to $14.0 million for the six months ended September 30, 2016. Net interest income increased despite a decrease of 8 basis points in net interest margin and a decrease of $9.2 million in average net interest-earning assets. Net interest income increased for the reason noted above.
The provision for loan losses increased $105,000, or 20.8%, to $610,000 for the three months ended September 30, 2017, as compared to $505,000 for the three months ended September 30, 2016, and increased $169,000, or 16.4%, to $1.20 million for the six months ended September 30, 2017, as compared to $1.03 million for the six months ended September 30, 2016. The increases in the provisions for both periods were due in large part to the significant growth in the balance of outstanding loans, mainly commercial and multi-family real estate loans, which based on their risk profile require more reserves than residential loans.
Non-interest income for the three months ended September 30, 2017 increased $610,000, or 121.8%, to $1.11 million, as compared to $501,000 for the three months ended September 30, 2016, as the 2017 period included a $593,000 gain on the sale of securities and a $75,000 gain on the sale of real estate owned, compared to no gains noted in the 2016 period.
Non-interest income for the six months ended September 30, 2017 increased $530,000, or 51.6%, to $1.6 million, as compared to $1.0 million for the six months ended September 30, 2016, mostly due to the gains noted above in the 2017 period. The 2016 period included an $84,000 gain on the sale of securities.
Non-interest expenses for the three months ended September 30, 2017 increased $79,000, or 1.5%, to $5.4 million, as compared to $5.3 million for the three months ended September 30, 2016. The increase consisted primarily of increases in advertising and marketing expenses of $68,000, or 68.7%, and occupancy expenses of $59,000, or 13.6%, partially offset by a decrease in federal deposit insurance premium of $44,000, or 29.0%. The increase in advertising and marketing expenses was related to the costs to promote CSBK’s recently
opened Hoboken and Montclair banking centers, as well as the new checking account product referenced above. The increase in occupancy expenses was mainly related to operational costs of the Montclair banking center. The decrease in federal deposit insurance premium in the 2017 period was due to the revision of the FDIC assessment system, which began on July 1, 2016, and is only partially reflected in the 2016 period expense. Revisions for “small institutions” (under $10 billion in assets) resulted in, among other things, a change in the financial ratios method used to determine assessment rates.
Non-interest expenses for the six months ended September 30, 2017 increased $212,000, or 2.0%, to $11.0 million, as compared to $10.8 million for the six months ended September 30, 2016. The increase consisted primarily of increases in advertising and marketing expenses of $149,000, or 59.1%, and occupancy expenses of $102,000, or 12.0%, partially offset by a decrease in federal deposit insurance premium of $87,000, or 30.0%. The increases relate to the same items noted above.
Income taxes for the three months ended September 30, 2017 increased $496,000, or 96.7%, to $1.0 million, as compared to $513,000 for the three ended September 30, 2016, and increased $781,000, or 81.3%, to $1.74 million for the six months ended September 30, 2017, as compared to $961,000 for the six months ended September 30, 2016. The increases resulted from higherpre-tax income, coupled with a slight increase in the effective income tax rate. The overall effective income tax rates were 30.4% and 32.0%, respectively for the 2017 periods compared with 29.3% and 29.9%, respectively for the 2016 periods.
About Clifton Bancorp Inc.
Clifton Bancorp Inc. is the holding company for CSBK (Clifton Savings Bank), a federally chartered savings bank headquartered in Clifton, New Jersey. CSBK is a metropolitan, community-focused bank serving residents and businesses in its market area through 12 full-service banking centers. For additional investor relations information, including subscribing to email alerts, visit cliftonbancorp.com.
Forward-Looking Statements
Clifton Bancorp makes forward-looking statements in this news release. These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals.
Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Clifton Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Clifton Bancorp anticipated in its forward-looking statements and future results could differ materially from historical performance.
Clifton Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the loan or investment portfolios; changes in competitive pressures among financial institutions or fromnon-financial institutions; the ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Clifton Bancorp provides greater detail regarding some of these factors in the “Risk Factors” section of its Annual Report on Form10-K, which was filed on June 8, 2017. Clifton Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s website at www.sec.gov.
| | |
| Contact: | | Michael Lesler |
| | (973)473-2200 |
Selected Consolidated Financial Condition Data
| | | | | | | | |
| | | At September 30, | | | At March 31, | |
| | | 2017 | | | 2017 | |
| | | (In thousands) | |
Financial Condition Data: | | | | | | | | |
Total assets | | $ | 1,554,521 | | | $ | 1,431,803 | |
Loans receivable, net | | | 1,140,419 | | | | 1,007,844 | |
Cash and cash equivalents | | | 16,044 | | | | 14,653 | |
Securities | | | 299,640 | | | | 315,348 | |
Deposits | | | 914,573 | | | | 844,825 | |
FHLB advances | | | 340,700 | | | | 275,800 | |
Total stockholders’ equity | | | 285,943 | | | | 296,619 | |
Selected Consolidated Operating Data
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | | (In thousands, except per share data) | |
Operating Data: | | | | | | | | | | | | | | | | |
Interest income | | $ | 12,229 | | | $ | 9,916 | | | $ | 23,715 | | | $ | 19,507 | |
Interest expense | | | 4,026 | | | | 2,847 | | | | 7,623 | | | | 5,496 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 8,203 | | | | 7,069 | | | | 16,092 | | | | 14,011 | |
Provision for loan losses | | | 610 | | | | 505 | | | | 1,200 | | | | 1,031 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 7,593 | | | | 6,564 | | | | 14,892 | | | | 12,980 | |
Non-interest income | | | 1,111 | | | | 501 | | | | 1,558 | | | | 1,028 | |
Non-interest expenses | | | 5,390 | | | | 5,311 | | | | 11,002 | | | | 10,790 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 3,314 | | | | 1,754 | | | | 5,448 | | | | 3,218 | |
Income taxes | | | 1,009 | | | | 513 | | | | 1,742 | | | | 961 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 2,305 | | | $ | 1,241 | | | $ | 3,706 | | | $ | 2,257 | |
| | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.11 | | | $ | 0.06 | | | $ | 0.17 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.11 | | | $ | 0.06 | | | $ | 0.17 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | |
Average shares outstanding - basic | | | 21,274 | | | | 22,216 | | | | 21,322 | | | | 22,495 | |
Average shares outstanding - diluted | | | 21,411 | | | | 22,276 | | | | 21,474 | | | | 22,555 | |
Average Balance Table
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | |
| | | 2017 | | | 2016 | |
| | | Average
Balance | | | Interest
and
Dividends | | | Yield/
Cost | | | Average
Balance | | | Interest
and
Dividends | | | Yield/
Cost | |
| | | (Dollars in thousands) | |
Assets: | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable | | $ | 1,107,262 | | | $ | 10,112 | | | | 3.65 | % | | $ | 855,838 | | | $ | 7,748 | | | | 3.62 | % |
Mortgage-backed securities | | | 248,079 | | | | 1,579 | | | | 2.55 | % | | | 267,646 | | | | 1,734 | | | | 2.59 | % |
Investment securities | | | 55,914 | | | | 270 | | | | 1.93 | % | | | 59,099 | | | | 283 | | | | 1.92 | % |
Other interest-earning assets | | | 39,524 | | | | 268 | | | | 2.71 | % | | | 28,402 | | | | 151 | | | | 2.13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 1,450,779 | | | | 12,229 | | | | 3.37 | % | | | 1,210,985 | | | | 9,916 | | | | 3.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-earning assets | | | 85,339 | | | | | | | | | | | | 85,425 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,536,118 | | | | | | | | | | | $ | 1,296,410 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand accounts | | $ | 97,727 | | | | 160 | | | | 0.65 | % | | $ | 53,270 | | | | 14 | | | | 0.11 | % |
Savings and Club accounts | | | 205,035 | | | | 234 | | | | 0.46 | % | | | 183,426 | | | | 178 | | | | 0.39 | % |
Certificates of deposit | | | 571,976 | | | | 2,101 | | | | 1.47 | % | | | 492,921 | | | | 1,731 | | | | 1.40 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 874,738 | | | | 2,495 | | | | 1.14 | % | | | 729,617 | | | | 1,923 | | | | 1.05 | % |
FHLB Advances | | | 330,475 | | | | 1,531 | | | | 1.85 | % | | | 226,250 | | | | 924 | | | | 1.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 1,205,213 | | | | 4,026 | | | | 1.34 | % | | | 955,867 | | | | 2,847 | | | | 1.19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing deposits | | | 27,950 | | | | | | | | | | | | 23,512 | | | | | | | | | |
Othernon-interest-bearing liabilities | | | 15,469 | | | | | | | | | | | | 11,652 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Totalnon-interest-bearing liabilities | | | 43,419 | | | | | | | | | | | | 35,164 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,248,632 | | | | | | | | | | | | 991,031 | | | | | | | | | |
Stockholders’ equity | | | 287,486 | | | | | | | | | | | | 305,379 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,536,118 | | | | | | | | | | | $ | 1,296,410 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 8,203 | | | | | | | | | | | $ | 7,069 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest rate spread | | | | | | | | | | | 2.03 | % | | | | | | | | | | | 2.08 | % |
Net interest margin | | | | | | | | | | | 2.26 | % | | | | | | | | | | | 2.33 | % |
Average interest-earning assets to average interest-bearing liabilities | | | 1.20 | x | | | | | | | | | | | 1.27 | x | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended September 30, | |
| | | 2017 | | | 2016 | |
| | | | | | Interest | | | | | | | | | Interest | | | | |
| | | Average | | | and | | | Yield/ | | | Average | | | and | | | Yield/ | |
| | | Balance | | | Dividends | | | Cost | | | Balance | | | Dividends | | | Cost | |
| | | (Dollars in thousands) | |
Assets: | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable | | $ | 1,072,038 | | | $ | 19,501 | | | | 3.64 | % | | $ | 828,462 | | | $ | 14,966 | | | | 3.61 | % |
Mortgage-backed securities | | | 250,519 | | | | 3,196 | | | | 2.55 | % | | | 270,566 | | | | 3,577 | | | | 2.64 | % |
Investment securities | | | 56,351 | | | | 541 | | | | 1.92 | % | | | 65,440 | | | | 691 | | | | 2.11 | % |
Other interest-earning assets | | | 36,795 | | | | 477 | | | | 2.59 | % | | | 29,388 | | | | 273 | | | | 1.86 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 1,415,703 | | | | 23,715 | | | | 3.35 | % | | | 1,193,856 | | | | 19,507 | | | | 3.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-earning assets | | | 86,113 | | | | | | | | | | | | 85,722 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,501,816 | | | | | | | | | | | $ | 1,279,578 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand accounts | | $ | 80,421 | | | | 208 | | | | 0.52 | % | | $ | 53,390 | | | | 29 | | | | 0.11 | % |
Savings and Club accounts | | | 206,504 | | | | 467 | | | | 0.45 | % | | | 173,567 | | | | 304 | | | | 0.35 | % |
Certificates of deposit | | | 567,035 | | | | 4,118 | | | | 1.45 | % | | | 484,690 | | | | 3,351 | | | | 1.38 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 853,960 | | | | 4,793 | | | | 1.12 | % | | | 711,647 | | | | 3,684 | | | | 1.04 | % |
FHLB Advances | | | 315,057 | | | | 2,830 | | | | 1.80 | % | | | 226,357 | | | | 1,812 | | | | 1.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 1,169,017 | | | | 7,623 | | | | 1.30 | % | | | 938,004 | | | | 5,496 | | | | 1.17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing deposits | | | 28,072 | | | | | | | | | | | | 21,463 | | | | | | | | | |
Othernon-interest-bearing liabilities | | | 14,254 | | | | | | | | | | | | 10,834 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Totalnon-interest-bearing liabilities | | | 42,326 | | | | | | | | | | | | 32,297 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,211,343 | | | | | | | | | | | | 970,301 | | | | | | | | | |
Stockholders’ equity | | | 290,473 | | | | | | | | | | | | 309,277 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,501,816 | | | | | | | | | | | $ | 1,279,578 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 16,092 | | | | | | | | | | | $ | 14,011 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest rate spread | | | | | | | | | | | 2.05 | % | | | | | | | | | | | 2.10 | % |
Net interest margin | | | | | | | | | | | 2.27 | % | | | | | | | | | | | 2.35 | % |
Average interest-earning assets to average interest-bearing liabilities | | | 1.21 | x | | | | | | | | | | | 1.27 | x | | | | | | | | |
Asset Quality Data
| | | | | | | | | | | | |
| | | Six | | | | | | Six | |
| | | Months | | | Year | | | Months | |
| | | Ended | | | Ended | | | Ended | |
| | | September 30, | | | March 31, | | | September 30, | |
| | | 2017 | | | 2017 | | | 2016 | |
| | | (Dollars in thousands) | |
Allowance for loan losses: | | | | | | | | | | | | |
Allowance at beginning of period | | $ | 6,100 | | | $ | 4,360 | | | $ | 4,360 | |
Provision for loan losses | | | 1,200 | | | | 1,985 | | | | 1,031 | |
| | | |
Charge-offs | | | (1 | ) | | | (247 | ) | | | (193 | ) |
Recoveries | | | 11 | | | | 2 | | | | 2 | |
| | | | | | | | | | | | |
Net recoveries (charge-offs) | | | 10 | | | | (245 | ) | | | (191 | ) |
| | | | | | | | | | | | |
Allowance at end of period | | $ | 7,310 | | | $ | 6,100 | | | $ | 5,200 | |
| | | | | | | | | | | | |
Allowance for loan losses to total gross loans | | | 0.64 | % | | | 0.60 | % | | | 0.59 | % |
Allowance for loan losses to nonperforming loans | | | 154.12 | % | | | 146.11 | % | | | 185.52 | % |
| | | |
| | | At September 30, | | | At March 31, | | | At September 30, | |
| | | 2017 | | | 2017 | | | 2016 | |
| | | (Dollars in thousands) | |
Nonperforming Assets: | | | | | | | | | | | | |
Nonaccrual loans: | | | | | | | | | | | | |
One- to four-family real estate | | $ | 4,164 | | | $ | 3,508 | | | $ | 2,619 | |
Commercial real estate | | | 184 | | | | 184 | | | | 184 | |
| | | | | | | | | | | | |
Total nonaccrual loans | | | 4,348 | | | | 3,692 | | | | 2,803 | |
Accruing loans past due 90 days or more | | | 395 | | | | 483 | | | | — | |
| | | | | | | | | | | | |
| | | 4,743 | | | | 4,175 | | | | 2,803 | |
Real estate owned | | | 167 | | | | 698 | | | | 943 | |
| | | | | | | | | | | | |
Total nonperforming assets | | $ | 4,910 | | | $ | 4,873 | | | $ | 3,746 | |
| | | | | | | | | | | | |
Total nonperforming loans to total gross loans | | | 0.41 | % | | | 0.41 | % | | | 0.32 | % |
Total nonperforming assets to total assets | | | 0.32 | % | | | 0.34 | % | | | 0.29 | % |
Selected Consolidated Financial Ratios
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2017 | | | 2016 | | | 2017 | | | 2016 | |
Selected Performance Ratios (1): | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.60 | % | | | 0.38 | % | | | 0.49 | % | | | 0.35 | % |
Return on average equity | | | 3.21 | % | | | 1.63 | % | | | 2.55 | % | | | 1.46 | % |
Interest rate spread | | | 2.03 | % | | | 2.08 | % | | | 2.05 | % | | | 2.10 | % |
Net interest margin | | | 2.26 | % | | | 2.33 | % | | | 2.27 | % | | | 2.35 | % |
Non-interest expenses to average assets | | | 1.40 | % | | | 1.64 | % | | | 1.47 | % | | | 1.69 | % |
Efficiency ratio (2) | | | 57.87 | % | | | 70.16 | % | | | 62.33 | % | | | 71.75 | % |
Average interest-earning assets to average interest-bearing liabilities | | | 1.20 | x | | | 1.27 | x | | | 1.21 | x | | | 1.27 | x |
Average equity to average assets | | | 18.72 | % | | | 23.56 | % | | | 19.34 | % | | | 24.17 | % |
Dividend payout ratio | | | 55.40 | % | | | 107.28 | % | | | 212.55 | % | | | 119.36 | % |
Net charge-offs to average outstanding loans during the periods | | | 0.00 | % | | | 0.04 | % | | | 0.00 | % | | | 0.05 | % |
| (1) | Performance ratios are annualized. |
| (2) | Representsnon-interest expense divided by the sum of net interest income and non-interest income including gains and losses on the sale of assets. |
Quarterly Data
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2017 | | | 2017 | | | 2017 | | | 2016 | | | 2016 | |
| | | (In thousands except per share data) | |
Operating Data | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 12,229 | | | $ | 11,486 | | | $ | 10,774 | | | $ | 10,193 | | | $ | 9,916 | |
Interest expense | | | 4,026 | | | | 3,597 | | | | 3,246 | | | | 3,071 | | | | 2,847 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 8,203 | | | | 7,889 | | | | 7,528 | | | | 7,122 | | | | 7,069 | |
Provision for loan losses | | | 610 | | | | 590 | | | | 541 | | | | 413 | | | | 505 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 7,593 | | | | 7,299 | | | | 6,987 | | | | 6,709 | | | | 6,564 | |
Non-interest income | | | 1,111 | | | | 447 | | | | 426 | | | | 460 | | | | 501 | |
Non-interest expenses | | | 5,390 | | | | 5,612 | | | | 5,558 | | | | 5,354 | | | | 5,311 | |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 3,314 | | | | 2,134 | | | | 1,855 | | | | 1,815 | | | | 1,754 | |
Income taxes | | | 1,009 | | | | 733 | | | | 609 | | | | 596 | | | | 513 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 2,305 | | | $ | 1,401 | | | $ | 1,246 | | | $ | 1,219 | | | $ | 1,241 | |
| | | | | | | | | | | | | | | | | | | | |
Share Data | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.11 | | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | |
Diluted earnings per share | | $ | 0.11 | | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | |
Dividends per share | | $ | 0.06 | | | $ | 0.31 | | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | |
Average shares outstanding - basic | | | 21,274 | | | | 21,369 | | | | 21,887 | | | | 22,020 | | | | 22,216 | |
Average shares outstanding - diluted | | | 21,411 | | | | 21,525 | | | | 22,025 | | | | 22,150 | | | | 22,276 | |
Shares outstanding at period end | | | 22,065 | | | | 22,299 | | | | 22,549 | | | | 23,046 | | | | 23,086 | |
| | | | | |
Financial Condition Data | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,554,521 | | | $ | 1,525,028 | | | $ | 1,431,803 | | | $ | 1,371,265 | | | $ | 1,312,190 | |
Loans receivable, net | | | 1,140,419 | | | | 1,074,748 | | | | 1,007,844 | | | | 936,894 | | | | 881,593 | |
Cash and cash equivalents | | | 16,044 | | | | 48,280 | | | | 14,653 | | | | 22,277 | | | | 22,758 | |
Securities | | | 299,640 | | | | 304,060 | | | | 315,348 | | | | 319,163 | | | | 317,147 | |
Deposits | | | 914,573 | | | | 892,414 | | | | 844,825 | | | | 803,364 | | | | 772,306 | |
FHLB advances | | | 340,700 | | | | 324,800 | | | | 275,800 | | | | 252,500 | | | | 224,500 | |
Total stockholders’ equity | | | 285,943 | | | | 288,152 | | | | 296,619 | | | | 303,098 | | | | 302,890 | |
| | | | | |
Assets Quality: | | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 4,910 | | | $ | 5,149 | | | $ | 4,873 | | | $ | 4,171 | | | $ | 3,746 | |
Total nonperforming loans to total gross loans | | | 0.41 | % | | | 0.40 | % | | | 0.41 | % | | | 0.37 | % | | | 0.32 | % |
Total nonperforming assets to total assets | | | 0.32 | % | | | 0.34 | % | | | 0.34 | % | | | 0.30 | % | | | 0.29 | % |
Allowance for loan losses | | $ | 7,310 | | | $ | 6,700 | | | $ | 6,100 | | | $ | 5,575 | | | $ | 5,200 | |
Allowance for loan losses to total gross loans | | | 0.64 | % | | | 0.62 | % | | | 0.60 | % | | | 0.59 | % | | | 0.59 | % |
Allowance for loan losses to nonperforming loans | | | 154.12 | % | | | 155.38 | % | | | 146.11 | % | | | 162.02 | % | | | 185.52 | % |
