Exhibit 99.1
Emclaire Financial Corp. Announces First Quarter 2005 Earnings
EMLENTON, Pa.--(BUSINESS WIRE)--April 22, 2005--Emclaire Financial Corp.
(OTCBB:EMCF), the parent holding company of the Farmers National Bank of
Emlenton, reported consolidated net income of $567,000 or $0.45 per share for
the three months ended March 31, 2005. Net income for the quarterly period
increased $2,000, as compared to net income of $565,000 or $0.45 per share for
the quarter ended March 31, 2004.
During the first three months of 2005, total assets increased $54,000 to
$273.4 million. Loans receivable increased $4.0 million or 2.2% to $183.5
million from $179.6 million and investment securities increased $244,000 to
$63.6 million from $63.4 million between year-end 2004 and March 31, 2005.
Customer deposits also increased $363,000 during the period to $233.2 million at
quarter end. The Corporation remains well capitalized and is positioned for
continued growth with total stockholders' equity at March 31, 2005 of $23.2
million or 8.5% of total assets.
Average interest-earning assets increased $10.5 million or 4.3% to $253.5
million for the three months ended March 31, 2005, compared to $243.0 million
for the same period in the prior year. Average securities increased $15.4
million or 31.0% to $65.1 million for the first three months of the current year
versus $49.7 million in the prior year. Security portfolio growth has been
experienced as management seeks to deploy funds, generated by deposit growth
that outpaces loan demand, into relatively safe marketable securities where
optimal yields can be realized in the current interest rate environment. Average
loans decreased $8.9 million or 4.7% to $180.8 million for the first three
months of 2005 versus $189.7 million for the same period in 2004. Actual loans
receivable for the quarter ended March 31, 2005 increased $4.0 million from
December 31, 2004 as a result of the increased efforts of our commercial lending
area. The yield on interest-earning assets decreased 6 basis points to 5.85% for
the first quarter of 2005 versus 5.91% for the same quarter in 2004.
Contributing to the Corporation's improved operating results for the
quarterly period was an increase in noninterest income resulting primarily from
increases in commissions earned from the financial services and gains on
securities.
Increased customer deposits funded loan and security portfolio growth as
average deposits increased $14.7 million or 6.7% to $233.4 million for the three
months ended March 31, 2005 versus $218.7 million for the same period in the
prior year. The Corporation's cost of funds increased 8 basis points to 2.21%
for the first quarter of 2005 versus 2.13% for the same quarter in 2004.
The Corporation's asset quality remained strong as nonperforming loans were
$707,000, or 0.38% of total loans, at March 31, 2005, compared to $840,000, or
0.46% of total loans, at December 31, 2004.
Emclaire Financial Corp. is the parent company of The Farmers National Bank
of Emlenton, an independent, nationally chartered, FDIC-insured community bank
headquartered in Emlenton, Pennsylvania, operating ten full service offices in
Venango, Butler, Clarion, Clearfield, Elk and Jefferson counties, Pennsylvania.
The Corporation's common stock is quoted on and traded through the OTC
Electronic Bulletin Board under the symbol "EMCF". Visit the Bank's website at
www.farmersnb.com.
This news release may contain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risk and uncertainties which could cause actual
results to differ materially from those currently anticipated due to a number of
factors. Such factors include, but are not limited to, changes in interest rates
which could effect net interest margins and net interest income, the possibility
that increased demand or prices for the Corporation's financial services and
products may not occur, changing economic and competitive conditions,
technological and regulatory developments, and other risks and uncertainties,
including those detailed in the Corporation's filings with the Securities and
Exchange Commission. The Corporation does not undertake, and specifically
disclaims any obligation to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date of such
statements.
EMCLAIRE FINANCIAL CORP. AND SUBSIDIARY
Financial Highlights
(Unaudited - Dollar amounts in thousands, except share data)
CONSOLIDATED OPERATING RESULTS DATA:
Three month period
ended March 31,
2005 2004
---- ----
Interest income $ 3,544 $ 3,463
Interest expense 1,354 1,251
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Net interest income 2,190 2,212
Provision for loan losses 60 55
Noninterest income 655 480
Noninterest expense 2,087 1,950
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Net income before provision for income taxes 698 687
Provision for income taxes 131 122
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Net income $ 567 $ 565
========= =========
Net income per share $ 0.45 $ 0.45
Dividends per share $ 0.25 $ 0.23
Return on annualized average assets 0.84% 0.87%
Return on annualized average equity 9.54% 9.86%
Yield on average interest-earning assets 5.85% 5.91%
Cost of average interest-bearing liabilities 2.65% 2.52%
Net interest margin 3.68% 3.84%
CONSOLIDATED FINANCIAL CONDITION DATA:
As of As of
3/31/2005 12/31/2004
----------- -----------
Total assets $ 273,434 $ 273,380
Cash and equivalents 9,971 14,624
Securities 63,606 63,362
Loans, net 183,546 179,575
Deposits 233,237 232,874
Borrowed funds 15,000 15,000
Stockholders' equity 23,166 23,616
Book value per share $ 18.27 $ 18.63
Net loans to deposits 78.70% 77.11%
Allowance for loan losses to total loans 1.00% 1.00%
Interest-earning assets to average assets 92.22% 92.86%
Stockholders' equity to total assets 8.47% 8.64%
Shares common stock outstanding 1,267,835 1,267,835
CONTACT: Emclaire Financial Corp.
David L. Cox or Shelly L. Rhoades, 724/867-2311