MISSOULA, Mont., April 29, 2015 (GLOBE NEWSWIRE) -- Treasure State Bank ("the Bank") (OTCQB:TRSU), a Montana chartered community bank, today announced:
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The Bank had a net operating profit of $99,000 for the quarter ended March 31, 2015, as compared to $63,000 for the same quarter last year. The prior year's net operating profit of $63,000 was not affected by income taxes. On a pre-tax basis the net operating income for the quarter ended March 31, 2015 was $160,000, as compared to the $63,000 for the same quarter last year.
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Earnings before non-cash expenses of depreciation and amortization, loan loss provisions, real estate owned write-downs, stock option expense and income taxes, were $223,000 ($892,000 annualized) for the quarter ended March 31, 2015, as compared to $109,000 ($436,000 annualized) for the same quarter last year.
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The return on average assets for the quarter ended March 31, 2015 was 0.55%, as compared to 0.38% for the same quarter last year. The return on average assets on a pre-tax basis for the quarter ended March 31, 2015 was 0.89%, as compared to 0.38% for the same quarter last year.
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The return on average equity for the quarter ended March 31, 2015 was 4.23%, as compared to 3.52% for the same quarter last year. The return on average equity on a pre-tax basis for the quarter ended March 31, 2015 was 6.86%, as compared to 3.52% for the same quarter last year.
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Tier 1 leverage capital was 9.97% as of March 31, 2015, as compared to 10.42% at December 31, 2014. Total Risk-Based Capital was 13.71% as of March 31, 2015, as compared to 14.14% at December 31, 2014.
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Stockholder's Equity to assets at March 31, 2015 was 12.90%, as compared to 13.01% at December 31, 2014.
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Book value per share was $5.36 as of March 31, 2015 based on 1,740,951 shares outstanding.
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Total assets increased $400,000 to $72.3MM at March 31, 2015, as compared to $71.9MM at December 31, 2014. Total assets were $66.1MM at December 31, 2013.
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Cost of funds decreased to 0.58% at March 31, 2015 from 0.59% at December 31, 2014 and 0.65% at March 31, 2014.
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The net interest margin (interest income less interest expense divided by average earning assets) increased to 3.53% for the quarter ended March 31, 2015, as compared to 3.44% for the quarter ended December 31, 2014. The net interest margin for the quarter ended March 31, 2014 was 3.59%.
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Loan loss reserves to total loans were 2.82% ($1.4MM) at March 31, 2015, as compared to 2.76% ($1.3MM) as of December 31, 2014.
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Total liquidity as of March 31, 2015 was 20.07%.
- Non-performing assets decreased $300,000 to $3.8MM at March 31, 2015 from $4.1MM at December 31, 2014 and $4.1MM at March 31, 2014. Non-performing assets to total assets at March 31, 2015 were 5.28% as compared to 5.69% at December 31, 2014 and 6.28% at March 31, 2014.
President and Chief Executive Officer Jim Salisbury stated "I am pleased to report that the Bank began 2015 with record normal operating earnings of $160,000 before income taxes as compared to $63,000 for the same period last year. In the press release reporting the fourth quarter 2014 earnings I noted that going forward the Bank will make a provision for income taxes on earnings for financial statement purposes at approximately 39.0% and this will reduce earnings on a comparable basis. However, because the tax provision is offset by net operating loss carryforwards, there will not be a cash effect to the Bank until all of the net operating loss carryforwards are fully utilized. Management predicts that it will be some years prior to the Bank being required to actually pay income taxes. Therefore, some discussions will focus on pre-tax earnings as a comparison to prior periods. The strong $97,000 earnings increase quarter over quarter is the result of increased net interest income of $35,000, increases in non-interest income of $93,000 (primarily related to substantial mortgage loan fee income), partially offset by $15,000 in provision for other real estate owned expenses and a modest increase of $16,000 in operating expenses.
Our focus continues to be growing the Bank by increasing loan production, which will increase net interest income and loan related fee income. This is evidenced by our $1.7MM increase in gross loans during the quarter. Our net interest margin remains strong at 3.53%, complemented by a 2.82% loan loss reserve to total loans and a continued reduction in the Bank's cost of funds of 10.77% year over year.
As noted above, non-performing assets decreased $300,000, or 7.32 %, to $3.8MM at March 31, 2015 from $4.1MM at December 31, 2014.
Total assets increased $400,000, or 0.56%, to $72.3MM at March 31, 2015, as compared to $71.9MM at December 31, 2014. Cash and cash equivalents decreased $1.2MM and other assets decreased $100,000 while gross loans increased $1.7MM.
The Bank believes at this time that its reserve for loan losses is sufficient and that no additional provision for loan loss reserves is currently required. There could be additional charges related to foreclosed property if certain appraisals would indicate the need for additional write downs of these assets.
Twenty cents of every dollar is held in domestic liquid assets to cushion the Bank from a rising interest rate environment and to allow for the funding of new loans. In addition, the investments that the Bank owns have very short term maturities, which will not fluctuate significantly in market value should interest rates increase. The current interest rate environment does not reward the Bank for having this relatively high liquidity position because earnings are minimal on these investments. Given the many uncertainties with the global economy and civil unrest, the massive Federal deficits and current strained political situation in Washington D.C., such position is analogous to a form of "insurance" that the Bank is willing to incur at this time to continue to improve its financial condition."
For more information regarding this release, or the Bank in general, you may contact James A. Salisbury, President and CEO, at 406-543-8700.
About Treasure State Bank
Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. Treasure State Bank currently trades on the OTCBB under the ticker symbol "TRSU". Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit www.treasurestatebank.com.
Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors 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 contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.