MIDLAND PARK, NJ--(Marketwire - May 11, 2012) - Stewardship Financial Corporation (
Net interest income was $6.1 million in the first quarter of 2012 compared to $5.9 million a year earlier. "The Corporation continues to manage our deposit costs to offset pressure on our asset yields which have been effected by the prolonged, low interest rate environment and the impact of nonaccruals," said Paul Van Ostenbridge, Stewardship Financial Corporation's President and Chief Executive Officer.
The Corporation recorded a $1.765 million provision for loan losses for the three months ended March 31, 2012 compared to a provision for loan losses of $1.675 million for the March 2011 period. As well as addressing individual problem loans, the Corporation continues to actively evaluate and carefully monitor the entire loan portfolio. As a measurement of the allowance coverage, the total allowance for loan losses of 2.89% of total loans represented an improvement from comparable ratios of 2.54% at December 31, 2011 and 2.15% at March 31, 2011.
Non-performing loans decreased to $26.8 million, or 5.91% of total loans at March 31, 2012, compared to $27.7 million, or 6.08% at December 31, 2011. The ratio of allowance for loans losses to nonperforming loans was 48.83% at March 31, 2012, providing improved allowance coverage as compared to 41.84% as of December 31, 2011.
Commenting on the Corporation's problem assets, Van Ostenbridge stated, "While we are reporting a slight decline in level of nonperforming loans in the first quarter of 2012, the negative economic impact and the challenges of a very slow foreclosure process continue." "Nevertheless," Van Ostenbridge continued, "we continue to look to implement appropriate loan work out strategies that maximize loan repayments and improve asset quality."
The Corporation reported noninterest income of $1.6 million for the three months ended March 31, 2012 compared to $1.1 million for the equivalent prior year period. During the first quarter of 2012, the Corporation realized a $433,000 gain from the sale of securities. In addition, noninterest income for the three months ended March 31, 2012 included gains on sales of mortgage loans totaling $411,000 compared to $404,000 of such gains for the comparable prior year period.
Total noninterest expenses, which include the costs, such as legal and other collection related expenses, incurred in connection with the managing of nonperforming assets, were $4.8 million for the three months ended March 31, 2011 -- comparable to the prior year period.
Total assets at March 31, 2012 were $712.0 million, representing a slight increase from assets of $708.8 million at December 31, 2011. Additional liquidity was provided by increases in cash and cash equivalents as well as securities. Gross loans receivable decreased $2.7 million from December 31, 2011, reflecting our adherence to strong underwriting standards and a recent reduced demand for loans coupled with payoffs and normal principal amortization.
Total deposits were $602.1 million at March 31, 2012, reflecting $8.5 million of continued deposit growth when compared to deposits of $593.6 million at December 31, 2011. The overall growth in deposits during the first quarter of 2012 consisted of $2.8 million of noninterest-bearing and $5.7 million of interest-bearing accounts.
Capital levels remain solid with a tier 1 leverage ratio of 9.00% and total risk based capital ratio of 14.27%. Van Ostenbridge commented, "We continue to significantly exceed the regulatory capital requirements for a 'well capitalized' institution of 4% and 8%, respectively."
Addressing the priorities for the Corporation, Van Ostenbridge summarized, "We continue to devote substantial attention and resources to deal with problem loans. In addition, our level of loan loss reserves, coupled with strong liquidity and a sound capital base, enable us to aggressively address workout strategies aimed at reducing the overall level of nonperforming loans and assets. And, looking to the future, we remain focused on funding new loan growth with lower costing core deposits."
Stewardship Financial Corporation's subsidiary, the Atlantic Stewardship Bank, has 13 banking offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock, Ridgewood, Waldwick, Wayne (3), Westwood and Wyckoff, New Jersey. The bank is known for tithing 10% of its pre-tax profits to Christian and local charities. To date, the Bank's tithe donations total $7.7 million.
We invite you to visit our website at www.asbnow.com for additional information.
The information disclosed in this document contains certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "believe," "expect," "anticipate," "should," "plan," "estimate," and "potential." Examples of forward looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Corporation that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include: changes in general, economic and market conditions, legislative and regulatory conditions, or the development of an interest rate environment that adversely affects the Corporation's interest rate spread or other income anticipated from operations and investments.
| Stewardship Financial Corporation | ||||||||||||||
| Selected Consolidated Financial Information | ||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||
| (unaudited) | ||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||
| 2012 | 2011 | 2011 | ||||||||||||
| Selected Financial Condition Data: | ||||||||||||||
| Cash and cash equivalents | $ | 24,181 | $ | 13,698 | $ | 29,661 | ||||||||
| Securities available for sale | 175,102 | 170,925 | 148,178 | |||||||||||
| Securities held to maturity | 36,353 | 38,354 | 42,460 | |||||||||||
| FHLB Stock | 2,266 | 2,478 | 2,361 | |||||||||||
| Loans receivable: | ||||||||||||||
| Loans receivable, gross | 453,671 | 456,413 | 459,508 | |||||||||||
| Allowance for loan losses | (13,097 | ) | (11,604 | ) | (9,874 | ) | ||||||||
| Other, net | 62 | (6 | ) | (86 | ) | |||||||||
| Loans receivable, net | 440,636 | 444,803 | 449,548 | |||||||||||
| Loans held for sale | 1,395 | 4,711 | 827 | |||||||||||
| Other assets | 32,112 | 33,849 | 27,900 | |||||||||||
| Total assets | $ | 712,045 | $ | 708,818 | $ | 700,935 | ||||||||
| Noninterest-bearing deposits | $ | 118,597 | $ | 115,776 | $ | 113,554 | ||||||||
| Interest-bearing deposits | 483,486 | 477,776 | 477,955 | |||||||||||
| Total deposits | 602,083 | 593,552 | 591,509 | |||||||||||
| Other borrowings | 28,000 | 32,700 | 33,000 | |||||||||||
| Securities sold under agreements to repurchase | 14,342 | 14,342 | 14,643 | |||||||||||
| Subordinated debentures | 7,217 | 7,217 | 7,217 | |||||||||||
| Other liabilities | 2,348 | 3,215 | 2,340 | |||||||||||
| Stockholders' equity | 58,055 | 57,792 | 52,226 | |||||||||||
| Total liabilities and stockholders' equity | $ | 712,045 | $ | 708,818 | $ | 700,935 | ||||||||
| Book value per common share | $ | 7.31 | $ | 7.28 | $ | 7.25 | ||||||||
| Equity to assets | 8.15 | % | 8.15 | % | 7.45 | % | ||||||||
| Asset Quality Data: | ||||||||||||||
| Nonaccrual loans | $ | 26,823 | $ | 27,736 | $ | 24,010 | ||||||||
| Loans past due 90 days or more and accruing | - | - | - | |||||||||||
| Total nonperforming loans | 26,823 | 27,736 | 24,010 | |||||||||||
| Other real estate owned | 3,840 | 5,288 | 313 | |||||||||||
| Total nonperforming assets | $ | 30,663 | $ | 33,024 | $ | 24,323 | ||||||||
| Nonperforming loans to total loans | 5.91 | % | 6.08 | % | 5.23 | % | ||||||||
| Nonperforming assets to total assets | 4.31 | % | 4.66 | % | 3.47 | % | ||||||||
| Allowance for loan losses to nonperforming loans | 48.83 | % | 41.84 | % | 41.12 | % | ||||||||
| Allowance for loan losses to total gross loans | 2.89 | % | 2.54 | % | 2.15 | % | ||||||||
| Stewardship Financial Corporation | |||||||||||
| Selected Consolidated Financial Information | |||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| For the three months ended March 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| Selected Operating Data: | |||||||||||
| Interest income | $ | 7,516 | $ | 7,775 | |||||||
| Interest expense | 1,465 | 1,826 | |||||||||
| Net interest and dividend income | 6,051 | 5,949 | |||||||||
| Provision for loan losses | 1,765 | 1,675 | |||||||||
| Net interest and dividend income after provision for loan losses | 4,286 | 4,274 | |||||||||
| Noninterest income: | |||||||||||
| Fees and service charges | 515 | 511 | |||||||||
| Bank owned life insurance | 80 | 80 | |||||||||
| Gain on calls and sales of securities | 433 | - | |||||||||
| Gain on sales of mortgage loans | 411 | 404 | |||||||||
| Other | 111 | 89 | |||||||||
| Total noninterest income | 1,550 | 1,084 | |||||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 2,386 | 2,236 | |||||||||
| Occupancy, net | 487 | 545 | |||||||||
| Equipment | 248 | 258 | |||||||||
| Data processing | 334 | 337 | |||||||||
| FDIC insurance premium | 148 | 254 | |||||||||
| Charitable contributions | 150 | 100 | |||||||||
| Other | 1,001 | 954 | |||||||||
| Total noninterest expenses | 4,754 | 4,684 | |||||||||
| Income before income tax expense | 1,082 | 674 | |||||||||
| Income tax expense | 306 | 191 | |||||||||
| Net income | 776 | 483 | |||||||||
| Dividends on preferred stock and accretion | 75 | 138 | |||||||||
| Net income available to common stockholders | $ | 701 | $ | 345 | |||||||
| Weighted avg. no. of diluted common shares | 5,892,366 | 5,849,723 | |||||||||
| Diluted earnings (loss) per common share | $ | 0.12 | $ | 0.06 | |||||||
| Return on average common equity | 6.47 | % | 3.28 | % | |||||||
| Return on average assets | 0.44 | % | 0.29 | % | |||||||
| Yield on average interest-earning assets | 4.59 | % | 4.99 | % | |||||||
| Cost of average interest-bearing liabilities | 1.11 | % | 1.40 | % | |||||||
| Net interest rate spread | 3.48 | % | 3.59 | % | |||||||
| Net interest margin | 3.71 | % | 3.84 | % | |||||||
Contact Information:
Contact:
Claire M. Chadwick
SVP and Chief Financial Officer
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100