LYNCHBURG, Va., Jan. 23, 2017 (GLOBE NEWSWIRE) -- Bank of the James Financial Group, Inc. (the “Company”)
(NASDAQ:BOTJ), the parent company of Bank of the James, a full-service commercial and retail bank serving the greater Lynchburg
area (Region 2000), and the Charlottesville, Harrisonburg, and Roanoke, Virginia markets, today announced unaudited results for the
three months and 12 months ended December 31, 2016.
Net income for the three months ended December 31, 2016 was $293,000 or $0.07 per diluted share compared with $825,000 or $0.22
per diluted share for the three months ended December 31, 2015. Net income for the 12 months ended December 31, 2016 was $3.29
million or $0.75 per diluted share compared with $3.69 million or $1.07 per diluted share for the 12 months ended December 31,
2015.
Diluted earnings per share in both 2016 periods reflected a 19% increase in the number of weighted average shares outstanding
compared with 2015 periods, resulting primarily from the issuance of one million new shares of the Company's common stock on
December 3, 2015. The Company’s fourth quarter and full-year 2016 net income reflected the impact of a significantly higher loan
loss provision, primarily attributable to one classified commercial loan.
Robert R. Chapman III, President and CEO, stated: “Our financial performance in 2016 reflected accelerating revenue generation
from expanded operations, including Company-record annual interest income driven by loan growth and record annual noninterest
income led by residential mortgage originations and treasury services. Due to some adverse circumstances surrounding a
commercial relationship that has over a decade of successful operations with the Bank and continues to pay as agreed, we provided
for a reserve that we believe was appropriate based on the facts that were known. This provision negatively impacted fourth
quarter and full-year earnings, but our Company continued its mission of growing shareholder value.”
Highlights
- Interest income from earning assets increased 5.2% in the fourth quarter and 6.2% in the full year 2016 compared with the
same periods, respectively, in 2015.
- Net interest income before the provision for loan losses increased 7.1% for the three months ended December 31, 2016 and 9.2%
for the 12 months ended December 31, 2016 compared with the prior year’s periods.
- Noninterest income rose 14.4% in 2016 compared to 2015, primarily reflecting continued growth in gains on sale of purchase
mortgage originations, service charges and income from treasury management and corporate credit card services, and gains on the
sale of investment securities.
- Total loans, net of the allowance for loan losses, were a Company-record $464.35 million at December 31, 2016, primarily
driven by growth in commercial lending.
- Commercial loans (primarily C&I) increased 15% year-over-year, with a portfolio of $87.86 million at December 31, 2016
compared with $76.26 million at December 31, 2015. Total real estate loans increased 8.6% year-over-year, led primarily by
increased commercial real estate lending.
- Total assets were $574.20 million at December 31, 2016, up 8.9% from a year earlier.
- Asset quality ratios reflected continuing loan portfolio strength, with a 0.54% ratio of nonperforming loans to total loans,
and an 8.4% year-over-year decline in total nonperforming assets to $4.92 million at December 31, 2016 from $5.37 million at
December 31, 2015.
- New full-service office in Charlottesville, Virginia opened in fourth quarter 2016.
- Total stockholders’ equity was $49.42 million at December 31, 2016, up from $48.20 million at December 31, 2015. Book value
per share was $11.29 at December 31, 2016, up from $11.01 at December 31, 2015.
- Based on the results achieved in the fourth quarter, on January 17, 2017 the Company’s board of directors approved a $0.06
per share dividend payable to shareholders of record on March 10, 2017, to be paid on March 24, 2017.
“Throughout the year, we executed our growth plan, which included building our team of experienced lenders, and expanded the
bank’s presence in the Charlottesville, Harrisonburg, Roanoke and Appomattox markets,” Chapman said. “While successfully competing
for business, we maintained stable margins and sound asset quality.”
Fourth Quarter 2016 Operational Review
Total interest income was $5.56 million in the fourth quarter 2016, growing 5.2% compared with total interest income of $5.29
million in the fourth quarter 2015. Average rates earned on loans, including fees, was 4.48% in the fourth quarter 2016, compared
with 4.52% in the third quarter 2016, 4.50% in the second quarter 2016, and 4.60% in the first quarter 2016. The average rate
earned on total earning assets in the fourth quarter 2016 was 4.16%.
Total interest expense was $636,000 in the fourth quarter of 2016, down from $690,000 in the fourth quarter of 2015. Interest
expense reduction primarily reflected the elimination of interest paid on capital notes that were retired in January 2016 following
the Company’s common equity placement. Year-over-year growth in lower-interest bearing demand deposits and rate reductions in time
deposits contributed to an average rate paid on interest bearing accounts of 0.62% in fourth quarter 2016, compared with 1.01% in
fourth quarter 2015. The Company’s net interest margin was 3.68% and net interest spread was 3.54% in fourth quarter 2016.
Net interest income was $4.93 million for the three months ended December 31, 2016 compared with $4.60 million for the three
months ended December 31, 2015. Net interest income after provision for loan losses was $3.91 million for the three months ended
December 31, 2016 compared with $4.60 million for the three months ended December 31, 2015. The Company recorded a loan loss
provision of $1.02 million in fourth quarter 2016, which included reserving $915,000 for one commercial lending relationship.
Management believes that the circumstances leading to the impairment are unique to the borrower and do not constitute a
trend.
This additional provision for loan losses resulted in a decrease in the Company’s earnings of approximately $604,000, or $0.14
per basic and diluted share for the three and 12 months ended December 31, 2016.
Noninterest income from fees, service charges and commissions, including gains from the sale of residential mortgages to the
secondary market, and income from the bank's line of treasury management services for commercial customers, was $1.19 million in
the fourth quarter of 2016 compared with $970,000 in the fourth quarter of 2015. Gains on sales of mortgage loans was the
most significant driver of noninterest income in fourth quarter 2016.
Noninterest expense for the three months ended December 31, 2016 was $4.70 million compared with $4.45 million for the three
months ended December 31, 2015. Higher expenses primarily reflected costs related to the Company's market expansion, including the
hiring of revenue-generating personnel, and investing in technology and security.
Full Year 2016 Operating Results
Net income of $3.29 million for the 12 months ended December 31, 2016 declined 11.0% from net income of $3.69 million for the 12
months ended December 31, 2015, with the decline primarily reflecting the impact of a $1.3 million increase in the Company’s loan
loss provision. As discussed above, the increase reflected the $915,000 reserve for the classified commercial loan, and appropriate
reserve increases related to loan growth.
Total interest income of $21.57 million in the 12 months of 2016 rose 6.2% compared with $20.30 million in the 12 months of
2015. Interest expense declined 12.9% year-over-year, reflecting diligent interest expense management and the elimination of
interest paid on capital notes subsequent to their retirement in January 2016.
Growing interest income and lower interest expense contributed to a 9.2% rise in net interest income to $19.22 million for the
year ended December 31, 2016 from $17.61 million for the year ended December 31, 2015. Net interest income after provision for loan
losses was $17.61 million for the year ended December 31, 2016, compared with $17.33 million for the year ended December 31,
2015.
The Company's net interest margin was 3.77% and net interest spread was 3.63% for the 12 months ended December 31, 2016,
consistent with the margin and spread a year earlier. Average rates earned on loans, including fees, was 4.51% in the 12 months of
2016 and the average yield on total earning assets was 4.23% compared with 4.62% and 4.35% in the prior year, respectively.
Noninterest income was $4.80 million for the 12 months of 2016, a 14.4% increase from $4.20 million in the 12 months of 2015.
Gains on sales of mortgage loans increased 6.8% year-over-year, reflecting the bank’s focus on originating mortgages and
successfully placing them in the secondary market. Income from service charges, fees and commissions increased year-over-year, and
the bank recorded strong gains on the selective sale of securities.
Noninterest expense for the 12 months ended December 31, 2016 was $17.59 million compared with $16.18 million for the 12 months
ended December 31, 2015, primarily reflecting increased employee compensation, an expanded commercial banking team, and additional
staff and management in the bank’s served markets. Occupancy costs increased moderately year-over-year, primarily reflecting the
addition of the Charlottesville and Appomattox offices. The Company increased marketing expenditures to build brand visibility
throughout an expanded geographic market.
Balance Sheet Reflects Loan, Deposit, Asset Growth
Loans held for investment, net of the allowance for loan losses, were $464.35 million at December 31, 2016 compared with $430.45
million at December 31, 2015. Loans held for sale were $3.83 million at December 31, 2016 compared with $1.96 million at December
31, 2015, and up from the third quarter 2016 total of $3.05 million. Quarter-end totals of loans for sale grew significantly
throughout 2016, primarily reflecting a healthy mortgage origination business throughout the Company’s markets, with particularly
strong contributions in the second half of 2016 from the Harrisonburg market.
Michael A. Syrek, Executive Vice President and Senior Loan Officer, commented: “Our results reflect a strategy implemented
several years ago to emphasize commercial lending as the primary driver of retained loan growth.”
He noted that while commercial and industrial loan growth has outpaced all other lending categories, the bank has conservatively
grown owner occupied real estate, primarily commercial real estate, growing that portfolio by 11% in 2016 versus 2015, and
expanding its non-owner occupied real estate portfolio, which grew 7%. Year-over-year, consumer loans and construction loans
declined by approximately 11% and consumer lines of credit increased by 4%.
Total deposits at December 31, 2016 were $523.11 million compared with $467.61 million at December 31, 2015. The Bank continued
to attract noninterest bearing deposits, which were $102.65 million at December 31, 2016 from $91.33 million at December 31, 2015.
Core deposits (noninterest bearing, NOW, money market and savings deposits) increased to $358.08 million at December 31, 2016
compared with $324.19 million at December 31, 2015.
Total assets were a record $574.20 million at December 31, 2016 compared with $527.14 million at December 31, 2015, primarily
reflecting growth in loans, net of allowance for loan losses. Loans held for sale were higher, primarily based on an increase in
mortgage origination volume and the timing of sale of the mortgages. In addition, securities held-to-maturity and securities
available-for-sale both increased from December 31, 2015.
The Company's asset quality remained sound, with a 0.54% ratio of nonperforming loans to total loans at December 31, 2016,
compared with 0.78% at December 31, 2015. The Company's allowance for loan losses to total loans was 1.22%, slightly higher than in
prior quarters and at year-end 2015. The Company's allowance for loan losses as a percent of nonperforming loans increased to
224.2% at December 31, 2016 compared with 137.5% at December 31, 2015.
Total nonperforming loans were $2.55 million, down 25.1% from $3.41 million at December 31, 2015. Total nonperforming assets
were $4.92 million and other real estate owned was $2.37 million. The bank's regulatory capital ratios continued to exceed accepted
regulatory standards for a well-capitalized institution.
The Company grew measures of shareholder value, including tangible book value per share and total stockholders' equity. Total
stockholders' equity was $49.42 million at December 31, 2016, compared with $48.20 million at December 31, 2015. Retained earnings
rose to $10.16 million at December 31, 2016 compared with $7.92 million at December 31, 2015.
About the Company
Bank of the James, a wholly owned subsidiary of Bank of the James Financial Group, Inc., serves Lynchburg, Charlottesville,
Harrisonburg, Roanoke, Appomattox and other markets in Virginia. The bank operates 12 full service locations, two limited service
branches, two loan production offices, and an investment/insurance services division. Bank of the James Financial Group, Inc.
common stock is listed under the symbol "BOTJ" on the NASDAQ Stock Market, LLC.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "believe," "estimate," "expect," "intend," "anticipate," "plan" and similar expressions
and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were
made. Bank of the James Financial Group, Inc. (the "Company") undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual
results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors
include, but are not limited to, competition, general economic conditions, potential changes in interest rates, and changes in the
value of real estate securing loans made by Bank of the James (the "Bank"), a subsidiary of the Company. Additional information
concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained
in the Company's filings with the Securities and Exchange Commission and previously filed by the Bank (as predecessor of the
Company) with the Federal Reserve Board.
CONTACT:
J. Todd Scruggs
Executive Vice President and Chief Financial Officer
(434) 846-2000
tscruggs@bankofthejames.com
FINANCIAL STATEMENTS FOLLOW
Bank of the James Financial Group, Inc. and Subsidiaries
(000's) except ratios and percent data (unaudited)
Selected Data:
|
|
Three
months
ending
Dec 31,
2016 |
Three
months
ending
Dec 31,
2015 |
Change |
Year
to
date
Dec 31,
2016 |
Year
to
date
Dec 31,
2015 |
Change |
| Interest
income |
$ |
5,563 |
$ |
5,290 |
|
5.16 |
% |
$ |
21,568 |
$ |
20,302 |
|
6.24 |
% |
| Interest
expense |
|
636 |
|
690 |
|
-7.83 |
% |
|
2,344 |
|
2,691 |
|
-12.89 |
% |
| Net interest
income |
|
4,927 |
|
4,600 |
|
7.11 |
% |
|
19,224 |
|
17,611 |
|
9.16 |
% |
| Provision for
loan losses |
|
1,017 |
|
5 |
|
20240.00 |
% |
|
1,612 |
|
282 |
|
471.63 |
% |
| Noninterest
income |
|
1,190 |
|
970 |
|
22.68 |
% |
|
4,795 |
|
4,193 |
|
14.36 |
% |
| Noninterest
expense |
|
4,701 |
|
4,446 |
|
5.74 |
% |
|
17,594 |
|
16,179 |
|
8.75 |
% |
| Income
taxes |
|
106 |
|
294 |
|
-63.95 |
% |
|
1,527 |
|
1,651 |
|
-7.51 |
% |
| Net
income |
|
293 |
|
825 |
|
-64.48 |
% |
|
3,286 |
|
3,692 |
|
-11.00 |
% |
| Weighted
average shares outstanding - basic |
|
4,378,436 |
|
3,688,184 |
|
18.72 |
% |
|
4,378,436 |
|
3,451,409 |
|
26.86 |
% |
| Weighted
average shares outstanding - diluted |
|
4,378,460 |
|
3,688,184 |
|
18.72 |
% |
|
4,378,436 |
|
3,451,409 |
|
26.86 |
% |
| Basic net
income per share |
$ |
0.07 |
$ |
0.22 |
$ |
(0.15 |
) |
$ |
0.75 |
$ |
1.07 |
$ |
(0.32 |
) |
| Fully diluted
net income per share |
$ |
0.07 |
$ |
0.22 |
$ |
(0.15 |
) |
$ |
0.75 |
$ |
1.07 |
$ |
(0.32 |
) |
Balance Sheet at
period end: |
Dec 31,
2016 |
Dec 31,
2015 |
Change |
Dec 31,
2015 |
Dec 31,
2014 |
Change |
| Loans,
net |
$ |
464,353 |
$ |
430,445 |
|
7.88 |
% |
$ |
430,445 |
$ |
394,573 |
|
9.09 |
% |
| Loans held for
sale |
|
3,833 |
|
1,964 |
|
95.16 |
% |
|
1,964 |
|
1,030 |
|
90.68 |
% |
| Total
securities |
|
44,075 |
|
38,515 |
|
14.44 |
% |
|
38,515 |
|
26,923 |
|
43.06 |
% |
| Total
deposits |
|
523,112 |
|
467,610 |
|
11.87 |
% |
|
467,610 |
|
399,497 |
|
17.05 |
% |
| Stockholders'
equity |
|
49,421 |
|
48,196 |
|
2.54 |
% |
|
48,196 |
|
34,776 |
|
38.59 |
% |
| Total
assets |
|
574,195 |
|
527,143 |
|
8.93 |
% |
|
527,143 |
|
460,865 |
|
14.38 |
% |
| Shares
outstanding |
|
4,378,436 |
|
4,378,436 |
|
- |
|
|
4,378,436 |
|
3,371,616 |
|
1,006,820 |
|
| Book value per
share |
$ |
11.29 |
$ |
11.01 |
$ |
0.28 |
|
$ |
11.01 |
$ |
10.31 |
$ |
0.70 |
|
|
Daily averages: |
Three
months
ending
Dec 31,
2016 |
Three
months
ending
Dec 31,
2015 |
Change |
Year
to
date
Dec 31,
2016 |
Year
to
date
Dec 31,
2015 |
Change |
| Loans,
net |
$ |
459,528 |
$ |
428,280 |
7.30 |
% |
$ |
446,281 |
$ |
412,889 |
8.09 |
% |
| Loans held for
sale |
|
3,599 |
|
2,093 |
71.95 |
% |
|
3,611 |
|
2,220 |
62.66 |
% |
| Total
securities |
|
44,751 |
|
37,666 |
18.81 |
% |
|
41,083 |
|
32,578 |
26.11 |
% |
| Total
deposits |
|
514,636 |
|
470,029 |
9.49 |
% |
|
492,472 |
|
446,194 |
10.37 |
% |
| Stockholders'
equity |
|
50,971 |
|
40,758 |
25.06 |
% |
|
49,807 |
|
37,746 |
31.95 |
% |
| Interest
earning assets |
|
531,132 |
|
488,924 |
8.63 |
% |
|
510,275 |
|
466,856 |
9.30 |
% |
| Interest
bearing liabilities |
|
410,065 |
|
383,651 |
6.88 |
% |
|
393,966 |
|
372,794 |
5.68 |
% |
| Total
assets |
|
566,347 |
|
521,644 |
8.57 |
% |
|
543,897 |
|
497,027 |
9.43 |
% |
|
Financial Ratios: |
Three
months
ending
Dec 31,
2016 |
Three
months
ending
Dec 31,
2015 |
Change |
Year
to
date
Dec 31,
2016 |
Year
to
date
Dec 31,
2015 |
Change |
| Return on
average assets |
0.21 |
% |
0.63 |
% |
(0.42 |
) |
0.60 |
% |
0.74 |
% |
(0.14 |
) |
| Return on
average equity |
2.29 |
% |
8.03 |
% |
(5.74 |
) |
6.60 |
% |
9.78 |
% |
(3.18 |
) |
| Net interest
margin |
3.68 |
% |
3.73 |
% |
(0.05 |
) |
3.77 |
% |
3.78 |
% |
(0.01 |
) |
| Efficiency
ratio |
76.85 |
% |
79.82 |
% |
(2.97 |
) |
73.25 |
% |
74.20 |
% |
(0.95 |
) |
| Average equity
to average assets |
9.00 |
% |
7.81 |
% |
1.19 |
|
9.16 |
% |
7.59 |
% |
1.56 |
|
|
Allowance for loan losses: |
Three
months
ending
Dec 31,
2016 |
Three
months
ending
Dec 31,
2015 |
Change |
Year
to
date
Dec 31,
2016 |
Year
to
date
Dec 31,
2015 |
Change |
| Beginning
balance |
$ |
4,953 |
|
$ |
4,748 |
|
4.32 |
% |
$ |
4,683 |
|
$ |
4,790 |
|
-2.23 |
% |
| Provision for
losses |
|
1,017 |
|
|
5 |
|
20240.00 |
% |
|
1,612 |
|
|
282 |
|
471.63 |
% |
|
Charge-offs |
|
(267 |
) |
|
(126 |
) |
111.90 |
% |
|
(759 |
) |
|
(615 |
) |
23.41 |
% |
|
Recoveries |
|
13 |
|
|
56 |
|
-76.79 |
% |
|
180 |
|
|
226 |
|
-20.35 |
% |
| Ending
balance |
|
5,716 |
|
|
4,683 |
|
22.06 |
% |
|
5,716 |
|
|
4,683 |
|
22.06 |
% |
|
Nonperforming assets: |
Dec 31,
2016 |
Dec 31,
2015 |
Change |
Dec 31,
2015 |
Dec 31,
2014 |
Change |
| Total
nonperforming loans |
$ |
2,550 |
$ |
3,406 |
-25.13 |
% |
$ |
3,406 |
$ |
3,505 |
-2.82 |
% |
| Other real
estate owned |
|
2,370 |
|
1,965 |
20.61 |
% |
|
1,965 |
|
956 |
105.54 |
% |
| Total
nonperforming assets |
|
4,920 |
|
5,371 |
-8.40 |
% |
|
5,371 |
|
4,461 |
20.40 |
% |
| Troubled debt
restructurings - (performing portion) |
|
455 |
|
646 |
-29.57 |
% |
|
646 |
|
376 |
71.81 |
% |
|
Asset quality ratios: |
Dec 31,
2016 |
Dec 31,
2015 |
Change |
Dec 31,
2015 |
Dec 31,
2014 |
Change |
| Nonperforming
loans to total loans |
0.54 |
% |
0.78 |
% |
(0.24 |
) |
0.78 |
% |
0.87 |
% |
(0.08 |
) |
| Allowance for
loan losses to total loans |
1.22 |
% |
1.08 |
% |
0.14 |
|
1.08 |
% |
1.20 |
% |
(0.12 |
) |
| Allowance for
loan losses to nonperforming loans |
224.16 |
% |
137.49 |
% |
86.66 |
|
137.49 |
% |
136.66 |
% |
0.83 |
|
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollar amounts in thousands, except per share amounts)
| |
(unaudited) |
|
|
| Assets |
12/31/2016 |
|
12/31/2015 |
| Cash and due from banks |
$ |
16,938 |
|
|
$ |
15,952 |
|
| Federal funds sold |
|
11,745 |
|
|
|
12,703 |
|
| Total cash and cash equivalents |
|
28,683 |
|
|
|
28,655 |
|
| |
|
|
|
| Securities held-to-maturity (fair value of $3,273 in 2016 and $2,649 in 2015) |
|
3,299 |
|
|
|
2,519 |
|
| Securities available-for-sale, at fair value |
|
40,776 |
|
|
|
35,996 |
|
| Restricted stock, at cost |
|
1,373 |
|
|
|
1,313 |
|
| Loans, net of allowance for loan losses of $5,716 in 2016 and $4,683 in 2015 |
|
464,353 |
|
|
|
430,445 |
|
| Loans held for sale |
|
3,833 |
|
|
|
1,964 |
|
| Premises and equipment, net |
|
10,771 |
|
|
|
9,751 |
|
| Software, net |
|
176 |
|
|
|
256 |
|
| Interest receivable |
|
1,378 |
|
|
|
1,248 |
|
| Cash value - bank owned life insurance |
|
12,673 |
|
|
|
9,781 |
|
| Other real estate owned |
|
2,370 |
|
|
|
1,965 |
|
| Income taxes receivable |
|
1,214 |
|
|
|
1,096 |
|
| Deferred tax asset |
|
2,374 |
|
|
|
1,399 |
|
| Other assets |
|
922 |
|
|
|
755 |
|
| Total assets |
$ |
574,195 |
|
|
$ |
527,143 |
|
| |
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
| Deposits |
|
|
|
| Noninterest bearing demand |
|
102,654 |
|
|
|
91,325 |
|
| NOW, money market and savings |
|
255,429 |
|
|
|
232,864 |
|
| Time |
|
165,029 |
|
|
|
143,421 |
|
| Total deposits |
|
523,112 |
|
|
|
467,610 |
|
| |
|
|
|
| Capital notes |
|
- |
|
|
|
10,000 |
|
| Interest payable |
|
88 |
|
|
|
61 |
|
| Other liabilities |
|
1,574 |
|
|
|
1,276 |
|
| Total liabilities |
$ |
524,774 |
|
|
$ |
478,947 |
|
| |
|
|
|
| Stockholders' equity |
|
|
|
| Common stock $2.14 par value; authorized 10,000,000 shares; issued
and outstanding 4,378,436 as of December 31, 2016 and December 31, 2015 |
|
9,370 |
|
|
|
9,370 |
|
| Additional paid-in-capital |
|
31,495 |
|
|
|
31,495 |
|
| Accumulated other comprehensive loss |
|
(1,600 |
) |
|
|
(589 |
) |
| Retained earnings |
|
10,156 |
|
|
|
7,920 |
|
| Total stockholders' equity |
$ |
49,421 |
|
|
$ |
48,196 |
|
| |
|
|
|
| Total liabilities and stockholders' equity |
$ |
574,195 |
|
|
$ |
527,143 |
|
| |
|
|
|
|
|
|
|
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(dollar amounts in thousands, except per share amounts)
| |
For the Three Months |
|
For the Year |
| |
Ended December
31, |
|
Ended December
31, |
| |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
| Interest Income |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
| Loans |
$ |
5,269 |
|
$ |
5,023 |
|
$ |
20,481 |
|
$ |
19,377 |
| Securities |
|
|
|
|
|
|
|
| US Government and agency obligations |
|
111 |
|
|
143 |
|
|
479 |
|
|
570 |
| Mortgage backed securities |
|
35 |
|
|
37 |
|
|
201 |
|
|
95 |
| Municipals |
|
77 |
|
|
43 |
|
|
240 |
|
|
150 |
| Dividends |
|
28 |
|
|
27 |
|
|
67 |
|
|
67 |
| Other (Corporates) |
|
22 |
|
|
6 |
|
|
35 |
|
|
11 |
| Interest bearing deposits |
|
3 |
|
|
5 |
|
|
31 |
|
|
14 |
| Federal Funds sold |
|
18 |
|
|
6 |
|
|
34 |
|
|
18 |
| Total interest income |
|
5,563 |
|
|
5,290 |
|
|
21,568 |
|
|
20,302 |
| |
|
|
|
|
|
|
|
| Interest Expense |
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
| NOW, money market savings |
|
162 |
|
|
134 |
|
|
590 |
|
|
509 |
| Time Deposits |
|
407 |
|
|
377 |
|
|
1,539 |
|
|
1,442 |
| Federal Funds purchased |
|
- |
|
|
- |
|
|
4 |
|
|
2 |
| FHLB borrowings |
|
- |
|
|
- |
|
|
- |
|
|
28 |
| Brokered time deposits |
|
67 |
|
|
29 |
|
|
203 |
|
|
110 |
| Capital notes 6% due 4/1/2017 |
|
- |
|
|
150 |
|
|
8 |
|
|
600 |
| Total interest expense |
|
636 |
|
|
690 |
|
|
2,344 |
|
|
2,691 |
| |
|
|
|
|
|
|
|
| Net interest income |
|
4,927 |
|
|
4,600 |
|
|
19,224 |
|
|
17,611 |
| |
|
|
|
|
|
|
|
| Provision for loan losses |
|
1,017 |
|
|
5 |
|
|
1,612 |
|
|
282 |
| |
|
|
|
|
|
|
|
| Net interest income after provision for loan
losses |
|
3,910 |
|
|
4,595 |
|
|
17,612 |
|
|
17,329 |
| |
|
|
|
|
|
|
|
| Noninterest income |
|
|
|
|
|
|
|
| Gains on sale of loans held for sale |
|
668 |
|
|
519 |
|
|
2,433 |
|
|
2,278 |
| Service charges, fees and commissions |
|
337 |
|
|
327 |
|
|
1,444 |
|
|
1,390 |
| Increase in cash value of life insurance |
|
87 |
|
|
65 |
|
|
292 |
|
|
269 |
| Other |
|
50 |
|
|
53 |
|
|
132 |
|
|
207 |
| Gain on sale of available-for-sale securities |
|
48 |
|
|
6 |
|
|
494 |
|
|
49 |
| |
|
|
|
|
|
|
|
| Total noninterest income |
|
1,190 |
|
|
970 |
|
|
4,795 |
|
|
4,193 |
| |
|
|
|
|
|
|
|
| Noninterest expenses |
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
2,513 |
|
|
2,381 |
|
|
9,230 |
|
|
8,727 |
| Occupancy |
|
342 |
|
|
301 |
|
|
1,312 |
|
|
1,204 |
| Equipment |
|
338 |
|
|
312 |
|
|
1,287 |
|
|
1,275 |
| Supplies |
|
134 |
|
|
115 |
|
|
480 |
|
|
419 |
| Professional, data processing, and other outside expense |
|
672 |
|
|
581 |
|
|
2,731 |
|
|
2,218 |
| Marketing |
|
188 |
|
|
144 |
|
|
686 |
|
|
465 |
| Credit expense |
|
126 |
|
|
71 |
|
|
425 |
|
|
301 |
| Other real estate expenses |
|
11 |
|
|
22 |
|
|
68 |
|
|
122 |
| FDIC insurance expense |
|
88 |
|
|
91 |
|
|
363 |
|
|
331 |
| Other |
|
289 |
|
|
314 |
|
|
1,012 |
|
|
1,003 |
| Writedown on tax credit investment |
|
- |
|
|
114 |
|
|
- |
|
|
114 |
| Total noninterest expenses |
|
4,701 |
|
|
4,446 |
|
|
17,594 |
|
|
16,179 |
| |
|
|
|
|
|
|
|
| Income before income taxes |
|
399 |
|
|
1,119 |
|
|
4,813 |
|
|
5,343 |
| |
|
|
|
|
|
|
|
| Income tax expense |
|
106 |
|
|
294 |
|
|
1,527 |
|
|
1,651 |
| |
|
|
|
|
|
|
|
| Net Income |
$ |
293 |
|
$ |
825 |
|
$ |
3,286 |
|
$ |
3,692 |
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding - basic |
|
4,378,436 |
|
|
3,688,184 |
|
|
4,378,436 |
|
|
3,451,409 |
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding - diluted |
|
4,378,460 |
|
|
3,688,184 |
|
|
4,378,436 |
|
|
3,451,409 |
| |
|
|
|
|
|
|
|
| Income per common share - basic |
$ |
0.07 |
|
$ |
0.22 |
|
$ |
0.75 |
|
$ |
1.07 |
| |
|
|
|
|
|
|
|
| Income per common share - diluted |
$ |
0.07 |
|
$ |
0.22 |
|
$ |
0.75 |
|
$ |
1.07 |
| |
|
|
|
|
|
|
|
|
|
|
|
