Exhibit 99.1
Emclaire Financial Corp. Announces Second Quarter and Year to Date 2006 Earnings
EMLENTON, Pa.--(BUSINESS WIRE)--July 21, 2006--Emclaire Financial
Corp. (OTCBB:EMCF), the parent holding company of the Farmers National
Bank of Emlenton, reported consolidated net income of $602,000 or
$0.47 per share for the three months ended June 30, 2006. Net income
for the quarterly period decreased $52,000 or 8.0%, as compared to net
income of $654,000 or $0.52 per share for the quarter ended June 30,
2005. The Corporation's annualized return on average assets and equity
were 0.87% and 10.25%, respectively, for the three months ended June
30, 2006, versus 0.95% and 10.92%, respectively, for the same period
in the prior year.
Net income for the six-month period ended June 30, 2006 was
$1.19 million or $0.94 per share versus $1.22 million or $0.96 per
share for the same period in the prior year. This decrease of $30,000
or 2.5% in earnings resulted in an annualized return on average assets
and equity of 0.87% and 10.15%, respectively, for the current year to
date period versus 0.89% and 10.24%, respectively, for the same period
in the prior year.
The decrease in the Corporation's operating results for the
quarterly and year to date periods can be attributed to decreases in
net interest income and commissions on financial services and
increases in compensation and benefits and premises and equipment.
Partially offsetting this decrease were increases in fees and service
charges and gains on sales of securities and a decrease in other
noninterest expense.
During the six-month period ended June 30, 2006, total assets
increased $9.4 million or 3.4% to $285.0 million at June 30, 2006 from
$275.5 million at December 31, 2005. Investment securities and cash
equivalents decreased $4.7 million and $4.6 million, respectively,
between year-end 2005 and June 30, 2006. Loans receivable, customer
deposits and borrowed funds increased $17.4 million, $8.0 million, and
$1.7 million, respectively, to $209.9 million, $238.5 million, and
$21.2 million, respectively, at June 30, 2006. The Corporation remains
well capitalized and is positioned for continued growth with total
stockholders' equity at June 30, 2006 of $23.5 million or
approximately 8.2% of total assets.
Average interest-earning assets remained stable at $255.4 million
for the six month periods ended June 30, 2006 and June 30, 2005.
Average securities and interest-earning cash equivalents decreased
$10.2 million and $2.8 million, respectively, to $54.5 million and
$3.5 million, respectively at June 30, 2006 from $64.6 million and
$6.3 million, respectively, for the same period last year primarily as
a result of funding loan growth. Average loans increased $12.9 million
or 7.0% to $197.4 for the first six months of 2006 versus
$184.5 million for the same period in 2005. The yield on
interest-earning assets increased 29 basis points to 6.24% in the
first six months of 2006 versus 5.95% for the same period in 2005.
Average liabilities increased $674,000 to $251.9 million for the
six months ended June 30, 2006, compared to $251.2 million for the
same period in the prior year. Average borrowed funds increased
$1.2 million or 7.7% to $16.2 million at June 30, 2006 from
$15.0 million for the same period in 2005. Partially offsetting this
increase was a decrease in average deposits of $297,000 to
$233.3 million at June 30, 2006 from $233.6 million for the same
period in the prior year. The Corporation's cost of funds increased
31 basis points to 2.50% for the first six months of 2006 versus 2.19%
for the same period in 2005.
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". For more
information, visit the Corporation's website at
"www.emclairefinancial.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 Six month period
ended June 30, ended June 30,
2006 2005 2006 2005
--------- -------- -------- --------
Interest income $3,931 $3,782 $7,675 $7,326
Interest expense 1,614 1,342 3,097 2,696
--------- -------- -------- --------
Net interest income 2,317 2,440 4,578 4,630
Provision for loan losses 47 45 78 105
Noninterest income 769 757 1,497 1,413
Noninterest expense 2,253 2,330 4,468 4,417
--------- -------- -------- --------
Net income before provision
for income taxes 786 822 1,529 1,521
Provision for income taxes 184 168 342 300
--------- -------- -------- --------
Net income $602 $654 $1,187 $1,221
========= ======== ======== ========
Net income per share $0.47 $0.52 $0.94 $0.96
Dividends per share $0.27 $0.25 $0.54 $0.50
Return on annualized average
assets 0.87% 0.95% 0.87% 0.89%
Return on annualized average
equity 10.25% 10.92% 10.15% 10.24%
Yield on average interest-earning
assets 6.29% 6.10% 6.24% 5.95%
Cost of average interest-bearing
liabilities 3.10% 2.61% 3.02% 2.63%
Net interest margin 3.78% 4.00% 3.79% 3.82%
CONSOLIDATED FINANCIAL CONDITION DATA:
As of As of
6/30/2006 12/31/2005
----------- -----------
Total assets $284,951 $275,517
Cash and equivalents 5,764 10,367
Securities 51,632 56,304
Loans 209,943 192,526
Deposits 238,483 230,503
Borrowed funds 21,200 19,500
Stockholders' equity 23,480 23,615
Book value per share $18.52 $18.63
Net loans to deposits 88.03% 83.52%
Allowance for loan losses to total loans 0.89% 0.96%
Earning assets to total assets 92.73% 92.82%
Stockholders' equity to total assets 8.24% 8.57%
Shares of common stock outstanding 1,267,835 1,267,835
CONTACT: Emclaire Financial Corp., Emlenton
David L. Cox or William C. Marsh, 724-867-2311