ASHEVILLE, N.C., Jan. 30, 2015 /PRNewswire/ -- ASB Bancorp, Inc.
(the "Company") (NASDAQ GM: ASBB), the holding company for
Asheville Savings Bank, S.S.B. (the "Bank"), announced today its
unaudited preliminary operating results for the three months and
year ended December 31, 2014. The
Company reported net income of $642,000, or $0.16
per diluted common share, for the quarter ended December 31, 2014 compared to net income of
$360,000, or $0.08 per diluted common share, for the same
quarter of 2013. Net income totaled $2.5
million, or $0.59 per diluted
common share, for the year ended December
31, 2014 compared to net income of $1.5 million, or $0.31 per diluted common share, for the year
ended December 31, 2013.
![ASB Bancorp Logo ASB Bancorp Logo](http://photos.prnewswire.com/prnvar/20111031/CL96775LOGO)
Suzanne S. DeFerie, President and
Chief Executive Officer, commented: "Our 2014 results reflected
important progress we have made towards prudent loan growth and
increased earnings, complemented by improved asset quality. We
strengthened our balance sheet by growing core deposits 10.7% in
2014 to fund loan growth of 16.2%. These actions contributed to a
15 basis point expansion in our net interest margin in 2014.
Coupled with a 7.3% decrease in our noninterest expenses, our
returns on assets and equity and our efficiency ratio all improved
significantly in 2014. We also ended 2014 with a tangible book
value per common share of $21.56, an
increase of 7.5% over 2013. For 2015, we will continue our focus on
prudent loan growth funded by core deposit growth and the reduction
of expenses where possible to build share value through increasing
earnings."
Fourth Quarter Highlights
- Net income for the fourth quarter of 2014 was $642,000, or $0.16
per diluted common share, compared to $360,000, or $0.08
per diluted common share, for the fourth quarter of 2013. For the
years ended December 31, 2014 and
2013, net income improved 71.2% to $2.5
million, or $0.59 per diluted
common share, in 2014 compared to $1.5
million, or $0.31 per diluted
common share, in 2013.
- Net interest income increased 8.7% to $5.2 million for the three months ended
December 31, 2014 from $4.8 million for the three months ended
December 31, 2013. The net interest
margin improved to 2.94% for the fourth quarter of 2014 compared to
2.79% for the fourth quarter of 2013.
- Interest income from loans increased 10.3% in the fourth
quarter of 2014 compared to the fourth quarter of 2013, primarily
reflecting a $64.5 million increase
in average loan balances when comparing the two quarters.
- Interest expense decreased 8.4% in the fourth quarter of 2014
compared to the fourth quarter of 2013.
- Provisions for loan losses were $220,000 in the fourth quarter of 2014 compared
to $54,000 in the fourth quarter of
2013, primarily due to loan growth.
- Loan balances increased $33.9
million, or 7.0%, in the fourth quarter of 2014 and
$72.6 million, or 16.2%, for the year
ended December 31, 2014 as new loan
originations exceeded loan repayments, prepayments and
foreclosures.
- Noninterest expenses decreased 5.2% to $5.7 million for the fourth quarter of 2014 from
$6.0 million for the fourth quarter
of 2013, due to overhead expense reduction initiatives.
- Delinquent and nonperforming loans were 0.60% and 0.52%,
respectively, of total loans at December 31,
2014, compared to 0.48% and 0.27%, respectively, of total
loans at December 31, 2013.
- Nonperforming assets, including foreclosed properties,
decreased to 1.51% of total assets at December 31, 2014 from 2.10% of total assets at
December 31, 2013 and 1.68% of total
assets at September 30, 2014.
- Core deposits, which exclude certificates of deposit, increased
$43.6 million, or 10.7%, since
December 31, 2013 and $15.3 million, or 3.5%, since September 30, 2014. Noninterest-bearing deposits
increased $23.4 million since
December 31, 2013, while commercial
non-maturity deposits increased $26.4
million, or 27.7%, over the same period.
- Book value per common share increased to $21.56 from $21.53
at September 30, 2014 and
$20.06 at December 31, 2013.
- Capital remains strong with consolidated regulatory capital
ratios of 13.17% Tier 1 leverage capital, 19.83% Tier 1 risk-based
capital and 21.01% total risk-based capital.
- During 2014, a total of 663,246 shares of common stock were
repurchased through open market and privately negotiated
transactions at an average cost of $19.45 per share.
DeFerie commented: "Our improving core performance reflects our
ongoing initiatives to build a more diversified loan portfolio
while diligently managing funding costs and operating efficiency.
As discussed previously, during 2014 we used a portion of our
capital to repurchase shares of our common stock through both open
market and privately negotiated transactions."
Income Statement Analysis
Net Interest Income. Net interest income increased
$421,000, or 8.7%, to $5.2 million for the fourth quarter of 2014
compared to $4.8 million for the
fourth quarter of 2013. The net interest margin increased 15 basis
points to 2.94% for the quarter ended December 31, 2014 compared to 2.79% for the
quarter ended December 31, 2013.
Interest expense decreased $80,000,
or 8.4%, to $877,000 for the fourth
quarter of 2014 compared to $957,000
for the fourth quarter of 2013, primarily resulting from a 5 basis
point decline in the average rate paid on interest-bearing
liabilities coupled with a $2.6
million decrease in the average balance of total
interest-bearing liabilities. Total interest and dividend income
increased $341,000, or 5.9%, to
$6.1 million for the fourth quarter
of 2014 compared to $5.8 million for
the fourth quarter of 2013, primarily resulting from a $64.5 million increase in average loan balances
and an 18 basis point increase in the average yield on
mortgage-backed and similar securities, which were partially offset
by a $47.9 million decrease in the
average balance in mortgage-backed and other investment securities,
a 16 basis point reduction in the average yield on loans and a 20
basis point decrease in the average yield on other investment
securities.
Net interest income increased $1.2
million, or 6.4%, for the year ended December 31, 2014 as compared to the year ended
December 31, 2013, primarily due to
an increase in interest income on loans and a decrease in interest
expense on deposits, which were partially offset by a decrease in
interest and dividend income on securities. Total interest expense
decreased $658,000, or 15.7%, during
the year ended December 31, 2014,
primarily resulting from a 13 basis point decrease in the rates
paid on interest-bearing deposits as well as a decrease of
$9.8 million, or 1.9%, in the average
balances of interest-bearing deposits, reflecting a decline in
average certificates of deposit that was partially offset by growth
in average balances of NOW, money market, and savings accounts. The
Company continued its focus on core deposit growth, from which it
excludes certificates of deposit. The average rate paid on total
interest-bearing liabilities decreased 11 basis points during 2014.
Total interest and dividend income increased $550,000, or 2.4%, during the year ended
December 31, 2014. Loan interest
income increased $1.5 million, or
7.7%, during the year ended December 31,
2014, primarily due to an increase in average outstanding
loans of $55.4 million, or 13.1%,
which was partially offset by a 22 basis point decrease in the
yield earned on loans during 2014. Interest income from securities
decreased by $978,000, primarily due
to a $63.7 million decrease in the
average balance of mortgage-backed and related securities and a
decrease of $11.6 million in the
average balance of other investment securities that resulted from
sales in 2014 to fund loan growth.
"We believe an important measure of our performance is the net
interest margin improvement resulting from increased interest
income from loan growth funded by lower deposit interest expense
from diligent deposit repricing and core deposit growth," DeFerie
explained. "We consider our loan pipeline to be robust, which gives
us confidence in our ability to continue to grow interest income as
we enter 2015."
Noninterest Income. Noninterest income decreased
$75,000, or 4.3%, to $1.7 million for the three months ended
December 31, 2014 compared to
$1.8 million for the three months
ended December 31, 2013, primarily
due to a reduction of $265,000 in
gains on the sale of foreclosed properties and $56,000 in lower mortgage banking income,
partially offset by $115,000 in
higher income from an investment in a Small Business Investment
Company, $81,000 in higher loan fees
and $32,000 in higher income from
debit card services.
During the year ended December 31,
2014, total noninterest income decreased $1.7 million, or 21.2%, to $6.3 million compared to $8.0 million for the year ended December 31, 2013. Factors that contributed to
the decrease in noninterest income during 2014 included
$967,000 in lower mortgage banking
income, a reduction of $659,000 in
gains from the sale of investment securities, a reduction of
$273,000 in gains from the sale of
foreclosed properties and $132,000 in
lower fees from deposits and other service charge income, which
were partially offset by $219,000 in
higher loan fees and $110,000 in
higher income from debit card services. The decrease in mortgage
banking income was attributable to lower volumes of residential
mortgage loans originated and sold. The decrease in deposit fees
was primarily the result of lower ATM and deposit overdraft
fees.
Noninterest Expenses. Noninterest expenses
decreased $316,000, or 5.2%, to
$5.7 million for the three months
ended December 31, 2014 from
$6.0 million for the three months
ended December 31, 2013. The decrease
in the fourth quarter of 2014 was primarily attributable to
$197,000 in lower data processing
fees, $165,000 in lower salaries and
employee benefits, $76,000 in lower
expenses related to foreclosed properties, and lower expenses in
most other categories, which were partially offset by $176,000 in higher professional and outside
service fees.
Noninterest expenses decreased $1.8
million, or 7.3%, to $23.5
million for the year ended December
31, 2014 compared to $25.4
million for the year ended December
31, 2013. The decrease in noninterest expenses for 2014 was
primarily attributable to $1.8
million in lower foreclosed property expenses, $319,000 in lower data processing fees and
$168,000 in lower occupancy expenses,
which were partially offset by $395,000 in higher salaries and employee benefits
and $324,000 in higher professional
and outside service fees. The increase in salaries and employee
benefits was primarily due to an increase of $457,000 relating to the Company's equity
incentive plan, which included $380,000 related to accelerated vesting for the
disability of a participant, and an increase of $537,000 in other employee benefits, which were
partially offset by a decrease of $632,000 in compensation expenses in 2014.
Employee benefits for 2013 included a $499,000 one-time credit to pension expense
resulting from the curtailment of benefits for future service.
Balance Sheet Review
Assets. Total assets increased $27.0 million, or 3.7%, to $760.1 million at December
31, 2014 from $733.0 million
at December 31, 2013. Investment
securities decreased $44.1 million,
or 23.3%, to $145.5 million at
December 31, 2014 from $189.6 million at December
31, 2013, primarily due to the sale of investment securities
to fund loan growth. Loans receivable, net of deferred fees,
increased $72.6 million, or 16.2%, to
$521.8 million at December 31, 2014 from $449.2 million at December
31, 2013 as new loan originations exceeded loan repayments,
prepayments, and foreclosures.
Liabilities. Total liabilities increased
$33.7 million to $665.7 million at December
31, 2014 compared to $631.9
million at December 31, 2013.
Total deposits increased $30.6
million, or 5.3%, to $603.4
million at December 31, 2014
from $572.8 million at December 31, 2013. Core deposits, which exclude
certificates of deposit, increased $43.6
million, or 10.7%, to $449.3
million at December 31, 2014
from $405.7 million at December 31, 2013 as a result of the Company's
continued focus on increasing core deposits to fund loan
growth.
Commercial checking and money market accounts increased
$26.4 million, or 27.7%, to
$121.6 million at December 31, 2014 from $95.2 million at December
31, 2013, reflecting expanded sources of lower cost funding.
The Company's initiatives to obtain new commercial deposit
relationships in conjunction with making new commercial loans
significantly contributed to this increase and reflects its
commitment to establishing diversified relationships with business
clients.
Certificates of deposit decreased $13.0
million, or 7.8%, to $154.1
million at December 31, 2014
compared to $167.1 million at
December 31, 2013.
Noninterest-bearing deposits increased $23.4
million, or 31.7%, to $97.5
million at December 31, 2014,
compared to $74.0 million at
December 31, 2013. Accounts payable
and other liabilities increased $3.2
million, or 38.7%, to $11.6
million at December 31, 2014
from $8.4 million at December 31, 2013.
"We believe our 27.7% increase in commercial checking and money
market accounts during 2014 demonstrates our focus on creating full
relationships with our business clients and reflects the
complementary nature of our business banking strategy," DeFerie
explained.
Asset Quality
Provision for Loan Losses. The provision for loan
losses was $220,000 for the fourth
quarter of 2014 compared to $54,000
for the fourth quarter of 2013. The provision expenses recorded in
the three months ended December 31,
2014 and 2013 were primarily due to loan growth for the
periods. The Company charged off $182,000 in loans during the fourth quarter of
2014 compared to $352,000 during the
same quarter of 2013.
The Company recorded a recovery of loan losses in the amount of
$(998,000) for the year ended
December 31, 2014 compared to a
recovery of loan losses of $(681,000)
for the year ended December 31, 2013.
In the second quarter of 2014, the Company assessed and modified
its loan loss methodology for unimpaired commercial construction
and land development, unimpaired residential construction and land
development, and unimpaired commercial and industrial loans, which
resulted in a nonrecurring reduction of approximately $1.3 million in the Company's reserves for loans
not considered impaired in the second quarter of 2014. Charge-offs
were $504,000 for the year ended
December 31, 2014 compared to
$630,000 for the year ended
December 31, 2013. The allowance for
loan losses totaled $5.9 million, or
1.14% of total loans, at December 31,
2014 compared to $7.3 million,
or 1.63% of total loans, at December 31,
2013.
Nonperforming Assets. Nonperforming assets
decreased $3.9 million, or 25.5%, to
$11.5 million, or 1.51% of total
assets, at December 31, 2014,
compared to $15.4 million, or 2.10%
of total assets, at December 31,
2013. Nonperforming assets included $2.7 million in nonperforming loans and
$8.8 million in foreclosed real
estate at December 31, 2014, compared
to $1.2 million and $14.2 million, respectively, at December 31, 2013.
Nonperforming loans increased $1.5
million, or 124.6%, to $2.7
million at December 31, 2014
from $1.2 million at December 31, 2013. Collateral on nonperforming
loans in the amount of $281,000 was
moved into foreclosed real estate, while performing troubled debt
restructurings decreased $451,000, or
8.6%, when comparing the same periods. Total performing troubled
debt restructurings and nonperforming assets decreased $4.4 million, or 21.2%, to $16.3 million, or 2.15% of total assets, at
December 31, 2014, compared to
$20.7 million, or 2.82% of total
assets, at December 31, 2013.
Nonperforming loans at December 31,
2014 included two commercial mortgage loans that totaled
$881,000, four commercial and
industrial loans that totaled $221,000, six residential mortgage loans that
totaled $1.4 million, and four home
equity loans that totaled $230,000.
As of December 31, 2014, the
nonperforming loans had specific reserves of $198,000. Foreclosed real estate at December 31, 2014 included 10 properties with a
total carrying value of $8.8 million
compared to 11 properties with a total carrying value of
$14.2 million at December 31, 2013. During 2014, there were five
new properties in the amount of $281,000 added to foreclosed real estate, while
six properties totaling $1.8 million
were sold including a large parcel with a recorded amount of
$1.2 million. In addition, during
2014, the Bank sold 29 of its 44 units in a mixed-use condominium
complex for net proceeds of $4.0
million. The Bank also recorded $242,000 in capital additions and $150,000 in valuation adjustments during
2014.
The Bank's largest foreclosed property resulted from a loan
relationship that had an original purpose of constructing a
mixed-use retail, commercial office, and residential condominium
project located in Western North
Carolina. As a result of this foreclosure, the Bank acquired
44 of the 48 condominium units in the building. Following an
additional write-down of approximately $630,000 on the loans secured by this collateral
in the fourth quarter of 2012, the Bank recorded this foreclosed
property in the amount of $9.8
million. During 2013, the Bank recorded additional
write-downs totaling $1.6 million,
which resulted in an adjusted recorded amount of $8.2 million at December
31, 2013. During the year ended December 31, 2014, the Bank recorded an
additional write-down of $133,000 on
the property and sold 28 residential condominium units and one
office unit. At December 31, 2014,
the adjusted recorded amount was $4.5
million for the remaining 8 retail units and 7 office
units.
Outlook
The Company's capital ratios exceeded accepted regulatory
standards for a well-capitalized institution, with a Tier 1
leverage ratio of 13.17%, a Tier 1 risk-based capital ratio of
19.83% and a total risk-based capital ratio of 21.01% at
December 31, 2014. Book value per
common share was $21.56 at
December 31, 2014 compared with
$20.06 at December 31, 2013. Return on average assets was
0.33% and return on average equity was 2.51% for the year ended
December 31, 2014 compared with 0.19%
and 1.37%, respectively, for the year ended December 31, 2013.
DeFerie concluded: "We are enthusiastic about the important
progress we made in 2014 to strengthen our balance sheet and grow
our loan portfolio to better position us for the future. We feel
there is opportunity to further improve our operating results with
continued loan growth and increased operating efficiency and that
we are well positioned to capitalize on opportunities that will
support the momentum we developed during the past year."
Profile
The Bank is a North Carolina
chartered stock savings bank offering traditional financial
services through thirteen full-service banking centers located in
Buncombe, Madison, McDowell, Henderson, and Transylvania counties in Western North Carolina and a loan production
office in Charlotte, North
Carolina. Originally chartered in 1936 and headquartered in
Asheville, North Carolina, the
Bank is locally managed with a focus on fostering strong
relationships with its customers, its employees and the communities
it serves. The Bank was recognized as the 2014 #1 Best Bank and #1
Best Bank for Small Business Services by the readers of the
Mountain Xpress newspaper in Western North Carolina and was also awarded
the Best Bank in McDowell County
for 2014 by the readers of The McDowell News newspaper.
This news release, as well as other written communications made
from time to time by the Company and its subsidiaries and oral
communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of
the Company (including certain projections and business trends)
that are considered "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 (the "PSLRA").
Such forward-looking statements may be identified by the use of
such words as "believe," "expect," "anticipate," "should,"
"planned," "estimated," "intend" and "potential." For these
statements, the Company claims the protection of the safe harbor
for forward-looking statements contained in the PSLRA.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: prevailing economic and
geopolitical conditions; changes in interest rates, loan demand,
real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting the Company's operations,
pricing, products and services and other factors described in the
Company's Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q as filed with the Securities and Exchange Commission. The
forward-looking statements are made as of the date of this release,
and, except as may be required by applicable law or regulation, the
Company assumes no obligation to update the forward-looking
statements or to update the reasons why actual results could differ
from those projected in the forward-looking statements.
Contact: Suzanne S. DeFerie
Chief
Executive Officer
(828)
254-7411
Selected Financial
Condition Data
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2014
|
|
2013*
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
$ 760,050
|
|
$ 733,035
|
|
3.7%
|
Cash and cash
equivalents
|
|
|
|
|
|
56,858
|
|
52,791
|
|
7.7%
|
Investment
securities
|
|
|
|
|
|
|
|
145,461
|
|
189,570
|
|
-23.3%
|
Loans receivable, net
of deferred fees
|
|
|
|
521,820
|
|
449,234
|
|
16.2%
|
Allowance for loan
losses
|
|
|
|
|
|
(5,949)
|
|
(7,307)
|
|
18.6%
|
Deposits
|
|
|
|
|
|
|
|
|
|
603,379
|
|
572,786
|
|
5.3%
|
Core
deposits**
|
|
|
|
|
|
|
|
449,286
|
|
405,722
|
|
10.7%
|
FHLB
advances
|
|
|
|
|
|
|
|
50,000
|
|
50,000
|
|
0.0%
|
Accounts payable and
other liabilities
|
|
|
|
|
11,614
|
|
8,374
|
|
38.7%
|
Total
equity
|
|
|
|
|
|
|
|
|
|
94,397
|
|
101,088
|
|
-6.6%
|
* Derived
from audited consolidated financial statements.
|
|
|
** Core deposits are
defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
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|
|
|
Selected Operating
Data
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|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
(Dollars in
thousands,
|
|
December
31,
|
|
December
31,
|
except per share
data)
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dividend
income
|
|
$ 6,117
|
|
$ 5,776
|
|
5.9%
|
|
$ 23,502
|
|
$ 22,952
|
|
2.4%
|
Interest
expense
|
|
877
|
|
957
|
|
-8.4%
|
|
3,536
|
|
4,194
|
|
-15.7%
|
Net interest
income
|
|
5,240
|
|
4,819
|
|
8.7%
|
|
19,966
|
|
18,758
|
|
6.4%
|
Provision
for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
220
|
|
54
|
|
307.4%
|
|
(998)
|
|
(681)
|
|
-46.5%
|
Net interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
after
provision for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
5,020
|
|
4,765
|
|
5.4%
|
|
20,964
|
|
19,439
|
|
7.8%
|
Noninterest
income
|
|
1,681
|
|
1,756
|
|
-4.3%
|
|
6,333
|
|
8,034
|
|
-21.2%
|
Noninterest
expenses
|
|
5,714
|
|
6,030
|
|
-5.2%
|
|
23,548
|
|
25,394
|
|
-7.3%
|
Income
before
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax
provision
|
|
987
|
|
491
|
|
101.0%
|
|
3,749
|
|
2,079
|
|
80.3%
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
345
|
|
131
|
|
163.4%
|
|
1,260
|
|
625
|
|
101.6%
|
Net income
|
|
|
|
$ 642
|
|
$ 360
|
|
78.3%
|
|
$ 2,489
|
|
$ 1,454
|
|
71.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
|
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$ 0.17
|
|
$ 0.08
|
|
112.5%
|
|
$ 0.60
|
|
$ 0.31
|
|
93.5%
|
Diluted
|
|
|
|
$ 0.16
|
|
$ 0.08
|
|
100.0%
|
|
$ 0.59
|
|
$ 0.31
|
|
90.3%
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
3,867,296
|
|
4,497,671
|
|
-14.0%
|
|
4,150,706
|
|
4,691,470
|
|
-11.5%
|
Diluted
|
|
|
|
3,952,660
|
|
4,542,024
|
|
-13.0%
|
|
4,197,689
|
|
4,698,997
|
|
-10.7%
|
Ending shares
outstanding
|
4,378,411
|
|
5,040,057
|
|
-13.1%
|
|
4,378,411
|
|
5,040,057
|
|
-13.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances and Yields/Costs
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
508,554
|
|
4.22%
|
|
444,058
|
|
4.38%
|
Investment
securities, including tax-exempt (1)
|
|
147,178
|
|
1.94%
|
|
195,028
|
|
1.86%
|
Other
interest-earning assets
|
|
|
|
2,902
|
|
4.78%
|
|
3,131
|
|
3.04%
|
Total
interest-earning assets (1)
|
|
|
|
719,099
|
|
3.42%
|
|
701,124
|
|
3.34%
|
Interest-bearing
deposits
|
|
|
|
|
|
503,063
|
|
0.30%
|
|
505,401
|
|
0.36%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.93%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
553,258
|
|
0.63%
|
|
555,902
|
|
0.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
2.79%
|
|
|
|
2.66%
|
Net interest margin
(1)
|
|
|
|
|
|
|
|
2.94%
|
|
|
|
2.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
476,782
|
|
4.30%
|
|
421,415
|
|
4.52%
|
Investment
securities, including tax-exempt (1)
|
|
156,062
|
|
1.96%
|
|
231,396
|
|
1.77%
|
Other
interest-earning assets
|
|
|
|
2,953
|
|
4.23%
|
|
3,199
|
|
2.56%
|
Total
interest-earning assets (1)
|
|
|
|
708,733
|
|
3.37%
|
|
706,496
|
|
3.31%
|
Interest-bearing
deposits
|
|
|
|
|
|
501,504
|
|
0.31%
|
|
511,350
|
|
0.44%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.93%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
551,995
|
|
0.64%
|
|
561,892
|
|
0.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
2.73%
|
|
|
|
2.56%
|
Net interest margin
(1)
|
|
|
|
|
|
|
|
2.87%
|
|
|
|
2.72%
|
(1) Yields on
tax-exempt securities have been included on a tax-equivalent basis
using a 34% federal marginal tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Asset
Quality Data
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
Allowance for Loan
Losses
|
|
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
$ 5,852
|
|
$ 7,589
|
|
$ 7,307
|
|
$ 8,513
|
Provision for
(recovery of) loan losses
|
|
|
|
220
|
|
54
|
|
(998)
|
|
(681)
|
Charge-offs
|
|
|
|
|
|
|
(182)
|
|
(352)
|
|
(504)
|
|
(630)
|
Recoveries
|
|
|
|
|
|
|
|
59
|
|
16
|
|
144
|
|
105
|
Net
charge-offs
|
|
|
|
|
|
(123)
|
|
(336)
|
|
(360)
|
|
(525)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
$ 5,949
|
|
$ 7,307
|
|
$ 5,949
|
|
$ 7,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
|
|
|
Total
loans
|
|
|
|
|
|
|
1.14%
|
|
1.63%
|
|
1.14%
|
|
1.63%
|
Total
nonperforming loans
|
|
|
|
221.32%
|
|
610.44%
|
|
221.32%
|
|
610.44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing loans
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
|
|
$
-
|
|
$ 11
|
|
-100.0%
|
Commercial
mortgage
|
|
|
|
|
|
|
|
881
|
|
373
|
|
136.2%
|
Commercial and
industrial
|
|
|
|
|
|
221
|
|
139
|
|
59.0%
|
Total
commercial
|
|
|
|
|
|
|
|
1,102
|
|
523
|
|
110.7%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
|
|
|
|
1,354
|
|
549
|
|
146.6%
|
Revolving
mortgage
|
|
|
|
|
|
|
|
230
|
|
116
|
|
98.3%
|
Consumer
|
|
|
|
|
|
|
|
|
|
2
|
|
9
|
|
-77.8%
|
Total
non-commercial
|
|
|
|
|
|
|
|
1,586
|
|
674
|
|
135.3%
|
Total nonaccruing
loans (1)
|
|
|
|
|
|
2,688
|
|
1,197
|
|
124.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
|
|
|
|
|
2,688
|
|
1,197
|
|
124.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
|
|
|
|
|
|
8,814
|
|
14,233
|
|
-38.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
|
|
|
11,502
|
|
15,430
|
|
-25.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings (2)
|
|
|
|
4,804
|
|
5,255
|
|
-8.6%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets
|
|
|
|
|
|
$ 16,306
|
|
$ 20,685
|
|
-21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
|
|
|
0.52%
|
|
0.27%
|
|
|
Nonperforming assets
as a percent of total assets
|
|
|
|
1.51%
|
|
2.10%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets to total assets
|
|
|
|
2.15%
|
|
2.82%
|
|
|
(1) Nonaccruing loans
include nonaccruing troubled debt restructurings.
|
|
|
|
|
(2) Performing
troubled debt restructurings exclude nonaccruing troubled debt
restructurings.
|
|
|
|
|
Foreclosed Real
Estate by Loan Type
|
|
|
December
31,
|
(Unaudited)
|
|
|
|
|
|
|
2014
|
|
2013
|
(Dollars in
thousands)
|
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
8
|
|
$ 8,706
|
|
9
|
|
$ 13,822
|
Residential
mortgage
|
|
|
|
|
|
2
|
|
108
|
|
2
|
|
411
|
Total
|
|
|
|
|
|
|
|
10
|
|
$ 8,814
|
|
11
|
|
$ 14,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
|
|
|
$ 14,233
|
|
$ 19,411
|
|
|
Transfers from
loans
|
|
|
|
|
|
|
|
281
|
|
708
|
|
|
Capitalized
cost
|
|
|
|
|
|
|
|
242
|
|
39
|
|
|
Valuation adjustments
of foreclosed real estate
|
|
|
|
(150)
|
|
(1,846)
|
|
|
Net gain on
sale of foreclosed properties
|
|
|
|
57
|
|
330
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
|
(5,849)
|
|
(4,409)
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
$ 8,814
|
|
$ 14,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
|
$ 508,554
|
|
$ 444,058
|
|
$ 476,782
|
|
$ 421,415
|
Average total
interest-earning assets
|
|
|
|
719,099
|
|
701,124
|
|
708,733
|
|
706,496
|
Average total
assets
|
|
|
|
|
|
754,932
|
|
744,363
|
|
747,514
|
|
751,486
|
Average total
interest-bearing deposits
|
|
|
|
503,063
|
|
505,401
|
|
501,504
|
|
511,350
|
Average total
deposits
|
|
|
|
|
|
599,211
|
|
581,386
|
|
588,511
|
|
582,858
|
Average total
interest-bearing liabilities
|
|
|
|
553,258
|
|
555,902
|
|
551,995
|
|
561,892
|
Average total
stockholders' equity
|
|
|
|
95,643
|
|
101,947
|
|
98,981
|
|
105,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
|
|
0.34%
|
|
0.19%
|
|
0.33%
|
|
0.19%
|
Return on average
equity (1)
|
|
|
|
2.66%
|
|
1.40%
|
|
2.51%
|
|
1.37%
|
Interest rate spread
(1)(2)
|
|
|
|
|
2.79%
|
|
2.66%
|
|
2.73%
|
|
2.56%
|
Net interest margin
(1)(3)
|
|
|
|
|
2.94%
|
|
2.79%
|
|
2.87%
|
|
2.72%
|
Noninterest expense
to average assets (1)
|
|
3.00%
|
|
3.21%
|
|
3.15%
|
|
3.38%
|
Efficiency ratio
(4)
|
|
|
|
|
|
81.52%
|
|
90.08%
|
|
88.17%
|
|
93.16%
|
(1) Ratios are
annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
difference between the weighted average yield on average
interest-earning assets and the
|
weighted average cost
on average interest-bearing liabilities. Yields on tax-exempt
securities have been
|
included on a
tax-equivalent basis using a 34% federal marginal tax
rate.
|
|
|
|
|
(3) Represents net
interest income as a percent of average interest-earning assets.
Yields on tax-exempt
|
securities have been included on a tax-equivalent
basis using a 34% federal marginal tax rate.
|
|
|
(4) Represents
noninterest expenses divided by the sum of net interest income, on
a tax-equivalent basis
|
using a 34% federal marginal tax rate, and noninterest
income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Earnings
Data
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
(Dollars in
thousands,
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
except per share
data)
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$ 6,117
|
|
$ 5,873
|
|
$ 5,771
|
|
$ 5,741
|
|
$ 5,776
|
Interest
expense
|
|
|
|
877
|
|
886
|
|
886
|
|
887
|
|
957
|
Net interest
income
|
|
|
|
5,240
|
|
4,987
|
|
4,885
|
|
4,854
|
|
4,819
|
Provision for
(recovery of) loan losses
|
|
220
|
|
240
|
|
(1,390)
|
|
(68)
|
|
54
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
|
5,020
|
|
4,747
|
|
6,275
|
|
4,922
|
|
4,765
|
Noninterest
income
|
|
|
|
1,681
|
|
1,642
|
|
1,554
|
|
1,456
|
|
1,756
|
Noninterest
expenses
|
|
|
|
5,714
|
|
5,624
|
|
6,350
|
|
5,860
|
|
6,030
|
Income before
income
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
provision
|
|
|
|
987
|
|
765
|
|
1,479
|
|
518
|
|
491
|
Income tax
provision
|
|
|
|
345
|
|
263
|
|
538
|
|
114
|
|
131
|
Net income
|
|
|
|
|
|
$ 642
|
|
$ 502
|
|
$ 941
|
|
$ 404
|
|
$ 360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Net income per share
– Basic
|
|
$ 0.17
|
|
$ 0.13
|
|
$ 0.22
|
|
$ 0.09
|
|
$ 0.08
|
Net income per share
– Diluted
|
|
$ 0.16
|
|
$ 0.12
|
|
$ 0.21
|
|
$ 0.09
|
|
$ 0.08
|
Book value per
share
|
|
|
|
$ 21.56
|
|
$ 21.53
|
|
$ 21.06
|
|
$ 20.53
|
|
$ 20.06
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,867,296
|
|
3,940,229
|
|
4,342,618
|
|
4,461,521
|
|
4,497,671
|
Diluted
|
|
|
|
|
|
3,952,660
|
|
4,018,945
|
|
4,384,154
|
|
4,493,617
|
|
4,542,024
|
Ending shares
outstanding
|
|
|
4,378,411
|
|
4,378,411
|
|
4,831,311
|
|
4,964,611
|
|
5,040,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(Dollars in
thousands)
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
$ 760,050
|
|
$ 749,033
|
|
$ 754,496
|
|
$ 748,089
|
|
$ 733,035
|
Cash and cash
equivalents
|
|
|
56,858
|
|
78,412
|
|
93,825
|
|
98,554
|
|
52,791
|
Investment
securities
|
|
|
|
145,461
|
|
149,530
|
|
153,921
|
|
156,036
|
|
189,570
|
Loans receivable, net
of deferred fees
|
|
521,820
|
|
487,904
|
|
472,012
|
|
455,434
|
|
449,234
|
Allowance for loan
losses
|
|
|
|
(5,949)
|
|
(5,852)
|
|
(5,770)
|
|
(7,189)
|
|
(7,307)
|
Deposits
|
|
|
|
|
|
603,379
|
|
594,798
|
|
592,683
|
|
585,752
|
|
572,786
|
Core
deposits**
|
|
|
|
449,286
|
|
433,983
|
|
432,201
|
|
423,567
|
|
405,722
|
FHLB
advances
|
|
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
|
|
|
|
|
94,397
|
|
94,285
|
|
101,727
|
|
101,947
|
|
101,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage
capital
|
|
|
|
13.17%
|
|
13.17%
|
|
14.16%
|
|
14.38%
|
|
14.35%
|
Tier 1 risk-based
capital
|
|
|
|
19.83%
|
|
21.17%
|
|
23.69%
|
|
24.29%
|
|
24.14%
|
Total risk-based
capital
|
|
|
|
21.01%
|
|
22.42%
|
|
24.94%
|
|
25.54%
|
|
25.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
|
|
$ 2,688
|
|
$ 3,424
|
|
$ 2,034
|
|
$ 1,905
|
|
$ 1,197
|
Nonperforming
assets
|
|
|
|
11,502
|
|
12,593
|
|
12,409
|
|
15,516
|
|
15,430
|
Nonperforming loans
to total loans
|
|
0.52%
|
|
0.70%
|
|
0.43%
|
|
0.42%
|
|
0.27%
|
Nonperforming assets
to total assets
|
|
1.51%
|
|
1.68%
|
|
1.64%
|
|
2.07%
|
|
2.10%
|
Allowance for loan
losses
|
|
|
|
$ 5,949
|
|
$ 5,852
|
|
$ 5,770
|
|
$ 7,189
|
|
$ 7,307
|
Allowance for loan
losses to total loans
|
|
1.14%
|
|
1.20%
|
|
1.22%
|
|
1.58%
|
|
1.63%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
|
|
|
|
221.32%
|
|
170.91%
|
|
283.68%
|
|
377.38%
|
|
610.44%
|
* Ending
balance sheet data as of December 31, 2013 was derived from audited
consolidated financial statements.
|
** Core
deposits are defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/asb-bancorp-inc-reports-financial-results-for-the-fourth-quarter-and-year-ended-december-31-2014-300027868.html
SOURCE ASB Bancorp, Inc.