26.10.2016, 20:58
Clarkston Financial Corporation Reports 2016 Q3 Results
OREANDA-NEWS. Clarkston Financial Corporation ("Corporation") (OTCBB:CKFC) - (News), the holding company for Clarkston State Bank ("Bank"), today reported a net income of $371,000 or $0.11 per share for the three months ended September 30, 2016, compared to net income of $336,000 or $0.10 per share for the three months ended September 30, 2015. For the nine months ended September 30, 2016, the corporation reported a net income of $881,000 or $0.27 per share compared to a net income of $803,000 or $0.25 per share for the same period in 2015.
J. Grant Smith, CEO, said, "With each passing quarter our performance continues to get better and better. Earlier this year we reengineered some of our processes within our deposit operations which helped to further reduce costs. In addition, our lending performance has been very good this year. The combination of these two factors has resulted in a significant improvement in our financial performance. Our asset quality fundamentals continue to out-perform industry peers and when combined with a robust net interest margin (4.13%) are the catalyst for very good bottom line performance. We expect the performance to continue to improve as we execute the initiative within our strategic plan."
Operating Results
The Corporation’s net interest income increased to $1,618,000 for the quarter ended September 30, 2016 compared to $1,421,000 for the same period ended September 30, 2015. The net interest margin of the Bank remains elevated compared to peers, but continues to have compression, ending at 4.13% for the quarter ended September 30, 2016, down from 4.41% for the quarter ended September 30, 2015.
Noninterest income decreased during the third quarter 2016. The quarter ended at $195,000 compared to $326,000 for the quarter ended September 30, 2015, a decrease of $131,000 or 40.18%. The decrease in noninterest income is attributable to the gain on sale of loans recognized in the third quarter 2015. Noninterest expense decreased, ending the third quarter 2016 at $1,195,000 compared to $1,247,000 for the same period ended September 30, 2015, a decrease of $52,000 or 4.17%. The decline in noninterest expense has helped to improve the Corporation’s efficiency ratio, ending the quarter at 65.89% compared to 71.40% at September 30, 2015.
Balance Sheet
Total assets at September 30, 2016 were $176,814,000 compared to $156,777,000 at September 30, 2015, an increase of $20,037,000 or 12.78%. The increase in assets is largely due to increases in noninterest-bearing demand deposits.
Net loans increased $26,848,000 from $120,586,000 at September 30, 2015 to $147,434,000 at September 30, 2016, an increase of 22.26%. Total deposits increased $16,576,000 or 12.11%, ending at $153,473,000 for September 30, 2016, up from $136,897,000 at September 30, 2015. Total stockholders’ equity increased from $13,672,000 at September 30, 2015 to $14,852,000 at September 30, 2016, an increase of $1,180,000 or 8.63%.
Asset Quality
The Bank continued to not have any non-performing loans at September 30, 2016. The allowance for loan loss decreased to 1.07% of total loans as of September 30, 2016, compared to 1.47% for the same period 2015. Management continually monitors the allowance for loan loss to determine its adequacy.
Clarkston State Bank opened in January 1999 and operates two branches in Clarkston and Waterford, Michigan.
J. Grant Smith, CEO, said, "With each passing quarter our performance continues to get better and better. Earlier this year we reengineered some of our processes within our deposit operations which helped to further reduce costs. In addition, our lending performance has been very good this year. The combination of these two factors has resulted in a significant improvement in our financial performance. Our asset quality fundamentals continue to out-perform industry peers and when combined with a robust net interest margin (4.13%) are the catalyst for very good bottom line performance. We expect the performance to continue to improve as we execute the initiative within our strategic plan."
Operating Results
The Corporation’s net interest income increased to $1,618,000 for the quarter ended September 30, 2016 compared to $1,421,000 for the same period ended September 30, 2015. The net interest margin of the Bank remains elevated compared to peers, but continues to have compression, ending at 4.13% for the quarter ended September 30, 2016, down from 4.41% for the quarter ended September 30, 2015.
Noninterest income decreased during the third quarter 2016. The quarter ended at $195,000 compared to $326,000 for the quarter ended September 30, 2015, a decrease of $131,000 or 40.18%. The decrease in noninterest income is attributable to the gain on sale of loans recognized in the third quarter 2015. Noninterest expense decreased, ending the third quarter 2016 at $1,195,000 compared to $1,247,000 for the same period ended September 30, 2015, a decrease of $52,000 or 4.17%. The decline in noninterest expense has helped to improve the Corporation’s efficiency ratio, ending the quarter at 65.89% compared to 71.40% at September 30, 2015.
Balance Sheet
Total assets at September 30, 2016 were $176,814,000 compared to $156,777,000 at September 30, 2015, an increase of $20,037,000 or 12.78%. The increase in assets is largely due to increases in noninterest-bearing demand deposits.
Net loans increased $26,848,000 from $120,586,000 at September 30, 2015 to $147,434,000 at September 30, 2016, an increase of 22.26%. Total deposits increased $16,576,000 or 12.11%, ending at $153,473,000 for September 30, 2016, up from $136,897,000 at September 30, 2015. Total stockholders’ equity increased from $13,672,000 at September 30, 2015 to $14,852,000 at September 30, 2016, an increase of $1,180,000 or 8.63%.
Asset Quality
The Bank continued to not have any non-performing loans at September 30, 2016. The allowance for loan loss decreased to 1.07% of total loans as of September 30, 2016, compared to 1.47% for the same period 2015. Management continually monitors the allowance for loan loss to determine its adequacy.
Clarkston State Bank opened in January 1999 and operates two branches in Clarkston and Waterford, Michigan.
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