ASHEVILLE, N.C.,
July 31, 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 operating results for the three- and six-month periods
ended June 30, 2015. The Company
reported net income of $865,000, or
$0.22 per diluted common share, for
the quarter ended June 30, 2015
compared to $941,000, or $0.21 per diluted common share, for the same
quarter of 2014. For the six months ended June 30, 2015, the Company reported net income of
$1.5 million compared to net income
of $1.3 million for the same period
of 2014. For the year-to-date periods, net income per share
increased 23.3% to $0.37 per diluted
common share for the six months ended June
30, 2015 from $0.30 per
diluted common share for the six months ended June 30, 2014. The three- and six-month periods
ended June 30, 2014 included net
nonrecurring after-tax earnings credits of $601,000 and $702,000, respectively, that were primarily
attributable to the release of loan loss reserves, which
significantly distorted the comparisons of the quarterly and
year-over-year loan loss provisions and earnings.
![ASB Bancorp Logo ASB Bancorp Logo](http://photos.prnewswire.com/prnvar/20111031/CL96775LOGO)
Suzanne DeFerie, President
and CEO, commented, "Our latest quarterly financial results are
indicative of our diligent focus on enhancing our core
operating results in tandem with strengthening our balance
sheet with a year-over-year total loan growth of 17.2%
and core deposit growth of 9.6%. Our net interest
income increased over the previous four quarters as we
increased interest income from loans by 12.7% compared
to the second quarter of 2014. As we continue our endeavors to
improve efficiencies, we will remain vigilant in our
approach to profitable growth at reasonable risks."
2015 Second Quarter Highlights
- Net income for the second quarter of 2015 was
$865,000, or $0.22 per diluted common
share, compared to $941,000, or $0.21
per diluted common share, for the second quarter of
2014. The second quarter of 2014 included a net
nonrecurring after-tax earnings credit of $601,000 that was primarily
attributable to the release of loan loss reserves. Excluding the
2014 nonrecurring earnings credit, net income for
the second quarter of 2015 exceeded net income for the
second quarter of 2014.
- Net interest income increased 10.7% to $5.4 million for the three months ended
June 30, 2015 from
$4.9 million for the three months
ended June 30, 2014. The net interest
margin improved to 2.96% for the second quarter
of 2015 compared to 2.82% for the second quarter of
2014.
- Interest income from loans increased 12.7% in the second
quarter of 2015 compared to the second quarter of
2014, which primarily reflected a $90.3
million increase in average loan balances when
comparing the two quarters.
- The Company recorded a $65,000 provision for loan losses in the second
quarter of 2015 compared to a recovery of loan
losses of $(1.4) million in the
second quarter of 2014. The allowance for loan
losses declined to 1.11% of total loans at June 30, 2015 from 1.14% at
December 31, 2014, and the allowance
coverage of nonperforming loans was 210.3% at
June 30, 2015 compared to
221.3% at December 31,
2014.
- Loan balances increased $11.3
million, or 2.1%, to $553.0
million from March 31,
2015. Loans increased $31.2 million, or 6.0%, since December 31, 2014 and increased $81.0 million, or 17.2%, since
June 30, 2014 as new loan
originations exceeded loan repayments, prepayments and
foreclosures. The 2015 increase in loan balances is net of a
decrease in the indirect auto lending portfolio due to
a strategic decision during the second quarter of 2015
to cease production in this lending area.
- Noninterest income increased 26.6% to $2.0 million for the second quarter of 2015 from
$1.6 million for
the second quarter of 2014, primarily due to the increase in
mortgage banking income.
- Noninterest expenses decreased 5.4% to $6.0 million for the second quarter of 2015 from
$6.4 million for
the second quarter of 2014, primarily due to decreases in
foreclosed property expenses and compensation
expenses.
- Delinquent and nonperforming loans were 0.50% and 0.53%,
respectively, of total loans at June 30, 2015, compared to 0.60% and 0.52%,
respectively, of total loans at December 31,
2014.
- Nonperforming assets, including foreclosed properties,
were 1.57% of total assets at June 30, 2015 compared to 1.51% of total assets
at December 31, 2014 and 1.64%
of total assets at June
30, 2014.
- Core deposits, which exclude certificates of deposit,
increased $24.4 million, or 5.4%,
since December 31,
2014 and $41.5 million, or
9.6%, since June 30, 2014.
Noninterest-bearing deposits have increased
$16.5 million, or 17.0%, since
December 31, 2014, while
commercial non-maturity deposits increased
$18.6 million, or 15.3%, over the
same period.
- Book value per common share increased to $21.96 at June 30,
2015 from $21.56 at
December 31, 2014 and
$21.06 at June
30, 2014.
- Capital remained strong with consolidated regulatory
capital ratios of 18.40% common equity tier 1 capital,
13.02% tier 1 leverage capital, 18.40% tier 1 risk-based capital
and 19.49% total risk-based
capital.
DeFerie noted, "We are excited about our success in
continuing to build a growing and more diversified loan
portfolio, while strengthening asset quality, diligently
managing funding costs and prudently managing
capital."
Income Statement Analysis
Net Interest Income. Net interest income
increased by $524,000, or 10.7%, to
$5.4 million for the three
months ended June 30, 2015
compared to $4.9 million for the
three months ended June 30, 2014.
Total interest and dividend income increased
$518,000, or 9.0%, to $6.3 million for the three months ended
June 30, 2015 from $5.8
million for the three months ended June 30, 2014, primarily as a result of an
increase of $90.3
million in average loan balances, which was partially offset
by a 25 basis point decrease in the average yield on
loans. Average mortgage-backed security balances decreased
$20.2 million for the three
months ended June 30,
2015, and the average yield on mortgage-backed securities
decreased 8 basis points compared to the same period
of 2014. Interest expense decreased $6,000, or 0.7%, to $880,000 for the three months ended
June 30, 2015 from $886,000 for the three months ended June 30, 2014, primarily due to an
$8.0 million decrease in the average
balances of certificates of deposit.
Net interest income increased by $963,000, or 9.9%, to $10.7 million for the six months ended June
30, 2015 compared to $9.7
million for the six months ended June
30, 2014. Interest income on loans increased
$1.2 million, primarily
resulting from an $85.4 million
increase in the average loan balances, partially offset
by a 23 basis point decrease in the average yield on loans.
Interest on securities decreased $264,000, attributable to a
$27.2 million decrease in the average
balance in mortgage-backed and other investment
securities and a 4 basis point reduction in the average yield
earned on the investment portfolio. Interest expense
decreased $32,000, or 1.8%, to
$1.7 million for the six months ended
June 30, 2015. The lower
interest expense was primarily attributable to lower average
balances of certificates of deposit, as well as an
average rate reduction of 1 basis point on certificates of
deposit and 1 basis point on NOW accounts. The
decreases in interest expense were partially offset by higher
average balances of NOW, money market and savings
accounts and an increase of 1 basis point in the average rate paid
on money market accounts.
"Our efforts in core deposit growth and vigilant deposit
repricing have provided funding for our loan growth,"
DeFerie explained. "We believe we have a strong loan pipeline
entering the third quarter, which should support
growth in interest income throughout the remainder of the
year."
Noninterest Income. Noninterest income
increased $414,000, or 26.6%, to
$2.0 million for the three
months ended June 30, 2015 from
$1.6 million for the three months
ended June 30, 2014. Factors
that contributed to the increase in noninterest income
during the 2015 period included increases of $282,000 in mortgage banking income,
$50,000 in net gains from the sale of
investment securities, $37,000 in
income from debit card services, $28,000 in loan fees and $19,000 in gain on sale of other assets, which
were partially offset by a decrease of $8,000 in deposit and other service charge
income. The increase in mortgage banking income was
attributable to higher volumes of residential mortgage loans
originated and sold. Increased transaction volume also
drove the rise in income from debit card services.
Noninterest income increased $568,000, or 18.9%, to $3.6 million for the six months ended
June 30, 2015 from
$3.0 million for the six months ended
June 30, 2014. Factors that
contributed to the increase in noninterest income
during the 2015 period included increases of $417,000 in mortgage banking income,
$83,000 in income from debit
card services and $21,000 in income
from an investment in a Small Business Investment
Company, which were partially offset by lower securities net gains
and lower deposit and service charge income. As was
the case for the second quarter of 2015, the increase in mortgage
banking income was attributable to higher volumes of
residential mortgage loans originated and sold, and
increased transaction volume that resulted in
increased income from debit card services.
Noninterest Expenses. Noninterest expenses
decreased $340,000, or 5.4%, to
$6.0 million for the three
months ended June 30, 2015 from
$6.4 million for the three months
ended June 30, 2014. The
decrease for the second quarter of 2015 was primarily
attributable to decreases of $188,000
in foreclosed property expenses, $177,000 in salaries and employee benefits,
$51,000 in data processing expenses
and $71,000 in various
other expenses, which were partially offset by increases of
$63,000 in mortgage software
expenses, $35,000 in
consumer loan expenses and $22,000 in
indirect auto expenses. The decrease in salaries and
benefits was primarily due to a $380,000 additional expense during the second
quarter of 2014 for accelerated vesting related to the
disability of an equity incentive plan participant. The decrease
was partially offset by a $145,000 increase in compensation expense for
employee incentives and $61,000 in
increased pension plan expenses in 2015. The decrease
in foreclosed property expenses included a reduction of
$135,000 in valuation
write-downs of foreclosed properties.
Noninterest expenses decreased $428,000, or 3.5%, to $11.8 million for the six months ended June
30, 2015 from $12.2
million for the six months ended June
30, 2014. The lower 2015 noninterest expenses
primarily reflected decreases of $272,000 in foreclosed property expenses,
$131,000 in compensation and
employee benefits, $122,000 in
data processing expenses and $57,000
in occupancy expenses, which were partially offset by
increases of $68,000 in consumer loan
expenses, $63,000 in mortgage
software expenses and $36,000 in indirect auto expenses. The decrease
in foreclosed property expenses included a reduction
of $154,000 in valuation
write-downs of foreclosed properties. As was the case for the
second quarter of 2015, the decrease in salaries and
benefits was attributable to a $380,000 additional expense during the
second quarter of 2014 for accelerated vesting related to the
disability of an equity incentive plan participant.
The decrease for the six months was partially offset by a
$145,000 increase in incentive
compensation expenses and a $122,000 increase in pension plan expenses in
2015.
Balance Sheet Review
Assets. Total assets increased $23.2 million, or 3.1%, to $783.3 million at June 30,
2015 from $760.1 million at December 31, 2014. Cash and cash equivalents
decreased $3.9 million, or 6.8%, to
$53.0 million at
June 30, 2015 from $56.9 million at December
31, 2014. Investment securities decreased $6.7 million, or 4.6%, to
$138.7 million at June 30, 2015 from $145.4
million at December 31, 2014,
primarily due to the sale of investment securities to
fund anticipated loan growth. Loans receivable, net of deferred
fees, increased $31.2
million, or 6.0%, to $553.0
million at June 30, 2015 from
$521.8 million at December 31,
2014 as new loan originations exceeded loan repayments,
prepayments and foreclosures.
Liabilities. Total deposits increased
$20.6 million, or 3.4%, to
$624.0 million at June 30, 2015 from $603.4 million at December
31, 2014. During the six months ended June 30, 2015, the Company continued
its focus on core deposit growth, from which it excludes
certificates of deposit. Core deposits increased
$24.4 million, or 5.4%, to
$473.7 million at June 30, 2015 from $449.3
million at December 31, 2014.
Commercial checking and money market accounts increased
$18.6 million, or 15.3%, to
$140.2 million at
June 30, 2015 from $121.6 million at December
31, 2014, 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 a commitment to establishing diversified
relationships with business clients.
Over the same period, certificates of deposit decreased
$3.8 million, or 2.5%, to
$150.3 million at June 30,
2015 from $154.1 million at
December 31, 2014 as the Company
continued its focus on core deposit growth. Accounts
payable and other liabilities increased $1.3
million, or 11.5%, to $12.9
million at June 30, 2015 from $11.6 million at December
31, 2014. The increase in accounts payable and other
liabilities at June 30,
2015 was primarily attributable to a $906,000 increase in escrowed payments from
mortgage borrowers and a $403,000 increase in pension plan
liabilities.
"We believe our 15.3% increase in commercial checking and
money market accounts during the first six months of
2015 demonstrates our ability to create 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 $65,000 for the three
months ended June 30,
2015 compared to a recovery of loan losses of $(1.4) million for the three months ended
June 30, 2014. The increase in
the provision for loan losses for the second quarter of 2015 was
primarily due to growth in loan volume. In the second
quarter of 2014, the Bank 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 Bank's reserves for loans not considered impaired in the second
quarter of 2014. The allowance for loan losses totaled
$6.1 million, or 1.11% of total
loans, at June 30, 2015
compared to $5.9
million, or 1.14% of total loans, at December 31, 2014. The Company charged off
$137,000 in loans during
the three months ended June 30, 2015
compared to $56,000 during the three
months ended June 30, 2014.
The Company recorded a provision for loan losses in the
amount of $259,000 for the six months
ended June 30, 2015
compared to a recovery of loan losses of $(1.5) million for the six months ended June
30, 2014. Net charge-offs were $84,000 for the first six months of 2015 compared
to $79,000 for the first
six months of 2014. As was the case for the second quarter of
2014, the increase in the six-month provision for loan
losses primarily resulted from a $1.3
million reduction in loan loss reserves due to a
modification of the loan loss methodology during the second
quarter of 2014, and the increase in the provision for
loan losses for the six-month period of 2015 was primarily due to
growth in loan volume.
Nonperforming Assets. Nonperforming assets
totaled $12.3 million, or 1.57% of
total assets, at June 30, 2015, compared to
$11.5 million, or 1.51% of total
assets, at December 31, 2014.
Nonperforming assets included $2.9 million in nonperforming loans and
$9.4 million in foreclosed real
estate at June 30, 2015
compared to $2.7 million and
$8.8 million, respectively, at
December 31, 2014.
Nonperforming loans increased $224,000 to $2.9
million, or 0.53% of total loans, at June 30, 2015 from $2.7 million, or 0.52% of total loans, at
December 31, 2014. Of the
$224,000 increase in
nonperforming loans for the six months, $235,000 related to additional nonperforming
residential mortgage loans, which was partially offset
by decreases in commercial mortgages, revolving mortgages and
consumer loans. Collateral on nonperforming loans in
the amount of $812,000 was moved into
foreclosed real estate, while performing troubled debt
restructurings ("TDRs") decreased $80,000, or 1.7%, when comparing the same
periods. Total performing TDRs and nonperforming assets
increased $711,000, or 4.4%, to
$17.0 million, or 2.17%
of total assets, at June 30, 2015
compared to $16.3 million, or 2.15%
of total assets, at December 31, 2014.
At June 30, 2015,
nonperforming loans included seven residential mortgage loans that
totaled $1.6 million,
two commercial mortgage loans that totaled $840,000, three revolving home equity loans that
totaled $221,000 and
four commercial and industrial loans that totaled $262,000. As of June 30,
2015, the nonperforming loans had specific
reserves totaling $108,000.
Foreclosed real estate at June 30,
2015 included nine properties with a total recorded amount
of $9.4 million compared to ten properties with a
total recorded amount of $8.8 million
at December 31, 2014.
During the six months ended June 30,
2015, two new properties that totaled $812,000 were added to foreclosed
real estate, while three properties that totaled $156,000 were sold. In addition, the Bank sold
one of its 15 units in a mixed-use condominium complex
for net proceeds of $89,000. The Bank
recorded no capital additions and no loss provisions
on foreclosed real estate during the first six months of
2015.
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. During the first six months of 2015, the Bank
sold one office unit. At June 30, 2015, the adjusted recorded amount was
$4.4 million for the remaining eight
retail units and six office units.
Outlook
DeFerie concluded, "We are enthusiastic with the progress
we have made so far in 2015 to create value for ASB
Bancorp's shareholders through the combination of loan and deposit
growth, expense management, asset quality improvement
and a demonstrated commitment to prudent capital management as are
supported by our year-over-year improvement in
earnings and book value per share. With laser focus on the
achievement of the key strategies of our business plan,
commercial/small business banking,
mortgage banking and increased efficiencies, we
look forward to continued improvement in the second half of
2015."
Profile
The Bank is a North
Carolina chartered stock savings bank offering traditional
financial services through 13 full-service banking
centers located in Buncombe,
Madison, McDowell, Henderson and Transylvania counties in
Western North Carolina and a loan
production office in Mecklenburg
County. 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2015
|
|
2014*
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
$ 783,299
|
|
$ 760,050
|
|
3.1%
|
Cash and cash
equivalents
|
|
|
|
|
|
|
52,990
|
|
56,858
|
|
-6.8%
|
Investment
securities
|
|
|
|
|
|
|
|
138,712
|
|
145,461
|
|
-4.6%
|
Loans receivable, net
of deferred fees
|
|
|
|
|
|
552,999
|
|
521,820
|
|
6.0%
|
Allowance for loan
losses
|
|
|
|
|
|
|
|
(6,124)
|
|
(5,949)
|
|
-2.9%
|
Deposits
|
|
|
|
|
|
|
|
|
|
623,963
|
|
603,379
|
|
3.4%
|
Core
deposits**
|
|
|
|
|
|
|
|
473,674
|
|
449,286
|
|
5.4%
|
FHLB
advances
|
|
|
|
|
|
|
|
50,000
|
|
50,000
|
|
0.0%
|
Accounts payable and
other liabilities
|
|
|
|
|
|
12,949
|
|
11,614
|
|
11.5%
|
Total
equity
|
|
|
|
|
|
|
|
|
|
96,163
|
|
94,397
|
|
1.9%
|
* Derived
from audited consolidated financial statements.
|
** Core deposits are
defined as total deposits excluding certificates of
deposit.
|
Selected Operating
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands,
|
|
Three Months
Ended
|
Six Months
Ended
|
except per share
data)
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dividend
income
|
|
$ 6,289
|
|
$ 5,771
|
|
9.0%
|
|
$ 12,443
|
|
$ 11,512
|
|
8.1%
|
Interest
expense
|
|
880
|
|
886
|
|
-0.7%
|
|
1,741
|
|
1,773
|
|
-1.8%
|
Net interest
income
|
|
5,409
|
|
4,885
|
|
10.7%
|
|
10,702
|
|
9,739
|
|
9.9%
|
Provision
for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
65
|
|
(1,390)
|
|
104.7%
|
|
259
|
|
(1,458)
|
|
117.8%
|
Net interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
after
provision for
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
5,344
|
|
6,275
|
|
-14.8%
|
|
10,443
|
|
11,197
|
|
-6.7%
|
Noninterest
income
|
|
1,968
|
|
1,554
|
|
26.6%
|
|
3,578
|
|
3,010
|
|
18.9%
|
Noninterest
expenses
|
|
6,010
|
|
6,350
|
|
-5.4%
|
|
11,782
|
|
12,210
|
|
-3.5%
|
Income
before
|
|
|
|
|
|
|
|
|
|
|
|
|
income
tax
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
1,302
|
|
1,479
|
|
-12.0%
|
|
2,239
|
|
1,997
|
|
12.1%
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provision
|
|
|
|
437
|
|
538
|
|
-18.8%
|
|
752
|
|
652
|
|
15.3%
|
Net income
|
|
|
|
$ 865
|
|
$ 941
|
|
-8.1%
|
|
$ 1,487
|
|
$ 1,345
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per
|
|
|
|
|
|
|
|
|
|
|
|
|
common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$ 0.22
|
|
$ 0.22
|
|
0.0%
|
|
$ 0.38
|
|
$ 0.31
|
|
22.6%
|
Diluted
|
|
|
|
$ 0.22
|
|
$ 0.21
|
|
4.8%
|
|
$ 0.37
|
|
$ 0.30
|
|
23.3%
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
3,923,199
|
|
4,342,618
|
|
-9.7%
|
|
3,911,375
|
|
4,401,741
|
|
-11.1%
|
Diluted
|
|
|
|
4,013,332
|
|
4,384,154
|
|
-8.5%
|
|
3,995,090
|
|
4,441,010
|
|
-10.0%
|
Ending shares
outstanding
|
4,378,411
|
|
4,831,311
|
|
-9.4%
|
|
4,378,411
|
|
4,831,311
|
|
-9.4%
|
Selected Average
Balances and Yields/Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 553,522
|
|
4.10%
|
|
$ 463,251
|
|
4.35%
|
Investment
securities, including tax-exempt (1)
|
|
132,935
|
|
2.00%
|
|
153,487
|
|
1.99%
|
Other
interest-earning assets
|
|
|
|
59,923
|
|
0.46%
|
|
93,543
|
|
0.40%
|
Total
interest-earning assets (1)
|
|
|
|
746,380
|
|
3.44%
|
|
710,281
|
|
3.32%
|
Interest-bearing
deposits
|
|
|
|
|
|
512,270
|
|
0.31%
|
|
502,168
|
|
0.32%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.93%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
562,921
|
|
0.63%
|
|
552,790
|
|
0.64%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
2.81%
|
|
|
|
2.68%
|
Net interest margin
(1)
|
|
|
|
|
|
|
|
2.96%
|
|
|
|
2.82%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
(Dollars in
thousands)
|
|
|
|
|
|
Balance
|
|
Cost
|
|
Balance
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
|
|
$ 544,377
|
|
4.14%
|
|
$ 458,960
|
|
4.37%
|
Investment
securities, including tax-exempt (1)
|
|
135,325
|
|
1.97%
|
|
162,571
|
|
2.01%
|
Other
interest-earning assets
|
|
|
|
56,097
|
|
0.48%
|
|
80,902
|
|
0.44%
|
Total
interest-earning assets (1)
|
|
|
|
735,799
|
|
3.46%
|
|
702,433
|
|
3.37%
|
Interest-bearing
deposits
|
|
|
|
|
|
509,185
|
|
0.30%
|
|
500,614
|
|
0.32%
|
Federal Home Loan
Bank advances
|
|
|
|
50,000
|
|
3.93%
|
|
50,000
|
|
3.93%
|
Total
interest-bearing liabilities
|
|
|
|
559,986
|
|
0.63%
|
|
551,367
|
|
0.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)
|
|
|
|
|
|
|
|
2.83%
|
|
|
|
2.72%
|
Net interest margin
(1)
|
|
|
|
|
|
|
|
2.99%
|
|
|
|
2.86%
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
Allowance for Loan
Losses
|
|
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, beginning of period
|
|
$ 6,042
|
|
$ 7,189
|
|
$ 5,949
|
|
$ 7,307
|
Provision for
(recovery of) loan losses
|
|
|
|
65
|
|
(1,390)
|
|
259
|
|
(1,458)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
|
|
|
(137)
|
|
(56)
|
|
(389)
|
|
(150)
|
Recoveries
|
|
|
|
|
|
|
|
154
|
|
27
|
|
305
|
|
71
|
Net charge-offs
(recoveries)
|
|
|
|
17
|
|
(29)
|
|
(84)
|
|
(79)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses, end of period
|
|
|
$ 6,124
|
|
$ 5,770
|
|
$ 6,124
|
|
$ 5,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percent of:
|
|
|
|
|
|
|
|
|
Total
loans
|
|
|
|
|
|
|
1.11%
|
|
1.22%
|
|
1.11%
|
|
1.22%
|
Total
nonperforming loans
|
|
|
|
210.30%
|
|
283.68%
|
|
210.30%
|
|
283.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccruing loans
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
|
|
|
|
|
|
$ 840
|
|
$ 881
|
|
-4.7%
|
Commercial and
industrial
|
|
|
|
|
|
262
|
|
221
|
|
18.6%
|
Total
commercial
|
|
|
|
|
|
|
|
1,102
|
|
1,102
|
|
0.0%
|
Non-commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
|
|
|
|
|
1,589
|
|
1,354
|
|
17.4%
|
Revolving
mortgage
|
|
|
|
|
|
|
|
221
|
|
230
|
|
-3.9%
|
Consumer
|
|
|
|
|
|
|
|
|
|
-
|
|
2
|
|
-100.0%
|
Total
non-commercial
|
|
|
|
|
|
|
|
1,810
|
|
1,586
|
|
14.1%
|
Total nonaccruing
loans (1)
|
|
|
|
|
|
2,912
|
|
2,688
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans past due
90 or more days
|
|
|
|
|
|
|
|
|
|
|
and still accruing
|
|
|
|
|
|
|
|
-
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
|
|
|
|
|
|
2,912
|
|
2,688
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate
|
|
|
|
|
|
|
|
9,381
|
|
8,814
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
|
|
|
12,293
|
|
11,502
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings (2)
|
|
|
|
4,724
|
|
4,804
|
|
-1.7%
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets
|
|
|
|
|
|
$ 17,017
|
|
$ 16,306
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent of total loans
|
|
|
|
0.53%
|
|
0.52%
|
|
|
Nonperforming assets
as a percent of total assets
|
|
|
|
1.57%
|
|
1.51%
|
|
|
Performing troubled
debt restructurings and
|
|
|
|
|
|
|
|
|
total
nonperforming assets to total assets
|
|
|
|
2.17%
|
|
2.15%
|
|
|
(1) Nonaccruing loans
include nonaccruing troubled debt restructurings.
|
(2) Performing
troubled debt restructurings exclude nonaccruing troubled debt
restructurings.
|
Foreclosed Real
Estate by Loan Type
|
|
|
June 30,
2015
|
|
December 31,
2014
|
(Dollars in
thousands)
|
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land development
|
|
7
|
|
$ 8,606
|
|
8
|
|
$ 8,706
|
Residential
mortgage
|
|
|
|
|
|
2
|
|
775
|
|
2
|
|
108
|
Total
|
|
|
|
|
|
|
|
9
|
|
$ 9,381
|
|
10
|
|
$ 8,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed Real
Estate
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
|
|
|
|
|
$ 8,814
|
|
|
|
|
Transfers from
loans
|
|
|
|
|
|
|
|
812
|
|
|
|
|
Loss on sale of
foreclosed properties
|
|
|
|
|
|
(1)
|
|
|
|
|
Net proceeds from
sales of foreclosed properties
|
|
|
|
(244)
|
|
|
|
|
Ending
balance
|
|
|
|
|
|
|
|
$ 9,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances and Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balances
|
|
|
|
|
|
|
|
|
|
|
Average total
loans
|
|
|
|
|
|
$ 553,522
|
|
$ 463,251
|
|
$ 544,377
|
|
$ 458,960
|
Average total
interest-earning assets
|
|
|
|
746,380
|
|
710,281
|
|
735,799
|
|
702,433
|
Average total
assets
|
|
|
|
|
|
782,252
|
|
748,806
|
|
771,606
|
|
743,602
|
Average total
interest-bearing deposits
|
|
|
|
512,270
|
|
502,168
|
|
509,185
|
|
500,614
|
Average total
deposits
|
|
|
|
|
|
620,762
|
|
586,593
|
|
610,743
|
|
581,359
|
Average total
interest-bearing liabilities
|
|
|
|
562,921
|
|
552,790
|
|
559,986
|
|
551,367
|
Average total
shareholders' equity
|
|
|
|
96,908
|
|
102,003
|
|
96,361
|
|
102,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
|
|
0.44%
|
|
0.50%
|
|
0.39%
|
|
0.36%
|
Return on average
equity (1)
|
|
|
|
3.58%
|
|
3.70%
|
|
3.11%
|
|
2.65%
|
Interest rate spread
(1) (2)
|
|
|
|
|
2.81%
|
|
2.68%
|
|
2.83%
|
|
2.72%
|
Net interest margin
(1) (3)
|
|
|
|
|
2.96%
|
|
2.82%
|
|
2.99%
|
|
2.86%
|
Noninterest expense
to average assets (1)
|
|
3.08%
|
|
3.40%
|
|
3.08%
|
|
3.31%
|
Efficiency ratio
(4)
|
|
|
|
|
|
80.32%
|
|
96.96%
|
|
81.40%
|
|
94.08%
|
(1) Ratios are
annualized.
|
(2) Represents the
difference between the weighted average yield on average
interest-earning assets and the
|
weighted average cost
of 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
(Dollars in
thousands,
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
except per share
data)
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$ 6,289
|
|
$ 6,154
|
|
$ 6,117
|
|
$ 5,873
|
|
$ 5,771
|
Interest
expense
|
|
|
|
880
|
|
861
|
|
877
|
|
886
|
|
886
|
Net interest
income
|
|
|
|
5,409
|
|
5,293
|
|
5,240
|
|
4,987
|
|
4,885
|
Provision for
(recovery of) loan losses
|
|
65
|
|
194
|
|
220
|
|
240
|
|
(1,390)
|
Net interest income
after provision for
|
|
|
|
|
|
|
|
|
|
|
(recovery of)
loan losses
|
|
|
5,344
|
|
5,099
|
|
5,020
|
|
4,747
|
|
6,275
|
Noninterest
income
|
|
|
|
1,968
|
|
1,610
|
|
1,681
|
|
1,642
|
|
1,554
|
Noninterest
expenses
|
|
|
|
6,010
|
|
5,772
|
|
5,714
|
|
5,624
|
|
6,350
|
Income before
income
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
provision
|
|
|
|
1,302
|
|
937
|
|
987
|
|
765
|
|
1,479
|
Income tax
provision
|
|
|
|
437
|
|
315
|
|
345
|
|
263
|
|
538
|
Net income
|
|
|
|
|
|
$ 865
|
|
$ 622
|
|
$ 642
|
|
$ 502
|
|
$ 941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
Net income per share
– Basic
|
|
$ 0.22
|
|
$ 0.16
|
|
$ 0.17
|
|
$ 0.13
|
|
$ 0.22
|
Net income per share
– Diluted
|
|
$ 0.22
|
|
$ 0.16
|
|
$ 0.16
|
|
$ 0.12
|
|
$ 0.21
|
Book value per
share
|
|
|
|
$ 21.96
|
|
$ 21.93
|
|
$ 21.56
|
|
$ 21.53
|
|
$ 21.06
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
3,923,199
|
|
3,899,419
|
|
3,867,296
|
|
3,940,229
|
|
4,342,618
|
Diluted
|
|
|
|
|
|
4,013,332
|
|
3,975,886
|
|
3,952,660
|
|
4,018,945
|
|
4,384,154
|
Ending shares
outstanding
|
|
|
4,378,411
|
|
4,378,411
|
|
4,378,411
|
|
4,378,411
|
|
4,831,311
|
Quarterly
Financial Condition Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
As
Of
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
(Dollars in
thousands)
|
|
|
|
2015
|
|
2015
|
|
2014 (1)
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
|
|
$ 783,299
|
|
$ 774,420
|
|
$ 760,050
|
|
$ 749,033
|
|
$ 754,496
|
Cash and cash
equivalents
|
|
|
52,990
|
|
60,061
|
|
56,858
|
|
78,412
|
|
93,825
|
Investment
securities
|
|
|
|
138,712
|
|
133,118
|
|
145,461
|
|
149,530
|
|
153,921
|
Loans receivable, net
of deferred fees
|
|
552,999
|
|
541,706
|
|
521,820
|
|
487,904
|
|
472,012
|
Allowance for loan
losses
|
|
|
|
(6,124)
|
|
(6,042)
|
|
(5,949)
|
|
(5,852)
|
|
(5,770)
|
Deposits
|
|
|
|
|
|
623,963
|
|
612,287
|
|
603,379
|
|
594,798
|
|
592,683
|
Core deposits
(2)
|
|
|
|
473,674
|
|
458,465
|
|
449,286
|
|
433,983
|
|
432,201
|
FHLB
advances
|
|
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
|
50,000
|
Total
equity
|
|
|
|
|
|
96,163
|
|
96,008
|
|
94,397
|
|
94,285
|
|
101,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
Ratios (3):
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital
|
|
18.40%
|
|
18.42%
|
|
n/a
|
|
n/a
|
|
n/a
|
Tier 1 leverage
capital
|
|
|
|
13.02%
|
|
13.16%
|
|
13.17%
|
|
13.17%
|
|
14.16%
|
Tier 1 risk-based
capital
|
|
|
|
18.40%
|
|
18.42%
|
|
19.83%
|
|
21.17%
|
|
23.69%
|
Total risk-based
capital
|
|
|
|
19.49%
|
|
19.53%
|
|
21.01%
|
|
22.42%
|
|
24.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
|
|
$ 2,912
|
|
$ 3,059
|
|
$ 2,688
|
|
$ 3,424
|
|
$ 2,034
|
Nonperforming
assets
|
|
|
|
12,293
|
|
12,442
|
|
11,502
|
|
12,593
|
|
12,409
|
Nonperforming loans
to total loans
|
|
0.53%
|
|
0.56%
|
|
0.52%
|
|
0.70%
|
|
0.43%
|
Nonperforming assets
to total assets
|
|
1.57%
|
|
1.61%
|
|
1.51%
|
|
1.68%
|
|
1.64%
|
Allowance for loan
losses
|
|
|
|
$ 6,124
|
|
$ 6,042
|
|
$ 5,949
|
|
$ 5,852
|
|
$ 5,770
|
Allowance for loan
losses to total loans
|
|
1.11%
|
|
1.12%
|
|
1.14%
|
|
1.20%
|
|
1.22%
|
Allowance for loan
losses to
|
|
|
|
|
|
|
|
|
|
|
nonperforming
loans
|
|
|
|
210.30%
|
|
197.52%
|
|
221.32%
|
|
170.91%
|
|
283.68%
|
(1) Ending
balance sheet data as of December 31, 2014 was derived from audited
consolidated financial statements.
|
(2) Core
deposits are defined as total deposits excluding certificates of
deposit.
|
|
|
|
|
(3) 2015
quarterly capital ratios are based on BASEL III and prior quarters
are based on BASEL I.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20111031/CL96775LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/asb-bancorp-inc-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2015-300121703.html
SOURCE ASB Bancorp, Inc.