Exhibit 99.1
Emclaire Financial Corp. Announces Third Quarter and Year to Date 2007 Earnings
EMLENTON, Pa.--(BUSINESS WIRE)--Oct. 19, 2007--Emclaire Financial
Corp. (OTCBB:EMCF), the parent holding company of The Farmers National
Bank of Emlenton, reported consolidated net income of $754,000 or
$0.59 per share for the three months ended September 30, 2007. Net
income for the quarterly period increased $62,000 or 9.0%, as compared
to net income of $692,000 or $0.55 per share for the quarter ended
September 30, 2006. The Corporation's annualized return on average
assets and equity were 1.00% and 12.35%, respectively, for the three
months ended September 30, 2007, versus 0.94% and 11.59%,
respectively, for the same period in the prior year.
Net income for the nine-month period ended September 30, 2007 was
$2.0 million or $1.59 per share. Net income for the year to date
period increased $131,000 or 6.9%, as compared to net income of $1.9
million or $1.48 per share for the same period in the prior year. The
Corporation's annualized return on average assets and equity were
0.90% and 11.20%, respectively, for the current year to date period,
as compared to 0.89% and 10.64%, respectively, for the same period in
the prior year.
The increase in net income for the quarter and year to date
periods ended September 30, 2007, compared to the same periods in
2006, was primarily due to an increase in net interest income,
partially offset by a decrease in noninterest income. Also partially
offsetting the increase in net income for the year to date period was
an increase in noninterest expense. The increase in net interest
income was primarily due to growth in the loan portfolio, particularly
with respect to commercial loans. The decrease in noninterest income
was primarily due to a decrease in gains on the sale of securities.
The increase in noninterest expenses was primarily due to increased
professional fees for compliance and operations consulting.
During the nine-month period ended September 30, 2007, total
assets increased $330,000 to $300.9 million at September 30, 2007,
from $300.6 million at December 31, 2006. Cash equivalents decreased
$10.3 million between year-end 2006 and September 30, 2007 resulting
primarily from an increase in loans receivable of $12.9 million and a
decrease in customer deposits of $8.3 million. In addition, borrowed
funds increased $7.6 million during such time to offset the decrease
in customer deposits and fund operations. The Corporation remains well
capitalized and is positioned for continued growth with total
stockholders' equity of $24.8 million or 8.2% of total assets. At
September 30, 2007, book value per share amounted to $19.53.
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 eleven 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 Nine month period
ended September 30, ended September 30,
2007 2006 2007 2006
----------- ------- ---------- --------
Interest income $4,535 $4,240 $13,263 $11,915
Interest expense 1,939 1,854 5,860 4,951
----------- ------- ---------- --------
Net interest income 2,596 2,386 7,403 6,964
Provision for loan losses 45 90 120 168
Noninterest income 696 793 2,198 2,291
Noninterest expense 2,255 2,265 6,901 6,733
----------- ------- ---------- --------
Net income before provision
for income taxes 992 824 2,580 2,354
Provision for income taxes 238 132 569 474
----------- ------- ---------- --------
Net income $754 $692 $2,011 $1,880
=========== ======= ========== ========
Net income per share $0.59 $0.55 $1.59 $1.48
Dividends per share $0.29 $0.27 $0.87 $0.81
Return on average assets (1) 1.00% 0.94% 0.90% 0.89%
Return on average equity (1) 12.35% 11.59% 11.20% 10.64%
Yield on average interest-
earning assets 6.64% 6.36% 6.53% 6.28%
Cost of average interest-
bearing liabilities 3.43% 3.32% 3.44% 3.13%
Net interest margin 3.87% 3.65% 3.71% 3.74%
(1) Returns are annualized for the three and nine month periods ended
September 30, 2007 and 2006.
CONSOLIDATED FINANCIAL CONDITION DATA:
As of As of
9/30/2007 12/31/2006
---------- -----------
Total assets $300,890 $300,560
Cash and equivalents 6,407 16,717
Securities 48,835 51,774
Loans 226,199 213,344
Deposits 236,148 244,492
Borrowed funds 37,600 30,000
Stockholders' equity 24,760 23,917
Book value per share $19.53 $18.86
Net loans to deposits 95.79% 87.26%
Allowance for loan losses to total loans 0.93% 0.94%
Earning assets to total assets 92.31% 92.89%
Stockholders' equity to total assets 8.23% 7.96%
Shares of common stock outstanding 1,267,835 1,267,835
CONTACT: Emclaire Financial Corp.
David L. Cox, 724-867-2311
Chairman of the Board, President and
Chief Executive Officer
or
William C. Marsh, 724-867-2311
Chief Financial Officer and Treasurer