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Foundation Bancorp Earns $551,000 In Fourth Quarter And $2.2 Million In 2012; Highlighted By Continued Credit Quality Improvements

Stocks in this article: FDNB

BELLEVUE, Wash., Feb. 8, 2013 (GLOBE NEWSWIRE) -- Foundation Bancorp, Inc. (OTCBB:FDNB), the holding company for Foundation Bank, today reported it earned $551,000, or $0.16 per diluted share, in the fourth quarter of 2012 compared to a net loss of $3.0 million, or ($0.89) per diluted share, in the fourth quarter a year ago. For all of 2012, Foundation Bancorp earned $2.2 million, or $0.62 per diluted share, compared to a net loss of $5.0 million, or ($1.48) per diluted share, in 2011.

Fourth Quarter 2012 Highlights:

  • Sixth consecutive quarterly reduction in non-performing assets (NPAs) with a year-over-year reduction of 29%.
  • Net interest margin increased to 3.91% for the fourth quarter and 4.01% for the year, compared to 3.87% and 3.72% for the respective periods a year ago.
  • Gross loans increased 10% year-over-year to $288.9 million, excluding the decrease in non-accrual loans, loans increased 16%.
  • Return on average equity of 8.28% for the fourth quarter and 8.59% for the year.
  • Non-interest bearing demand deposits increased 39% and total deposits increased 15% year-over-year.

"Foundation's performance has improved dramatically. We greatly improved our operating results while reducing the adverse effects of non-performing assets," said Diane Dewbrey, President and CEO. "In 2012 we improved net interest income by increasing lending activity and adding deposits, despite the continued pressure on loan yields. Profitability strengthened even further as we continued to substantially reduce legal costs and other expenses related to repossessed properties throughout the year. Another highlight of the year was gaining approval by the Financial Industry Regulatory Authority (FINRA) for trading our shares on the electronic OTC Markets. This proved to be an excellent strategic move for our shareholders and is already starting to add liquidity for the stock."

Asset Quality

Non-accrual loans were $17.6 million at December 31, 2012 compared to $18.1 million three months earlier and $29.8 million a year ago. Of the $17.6 million in loans classified as non-accrual, 71% or $12.5 million of these loans are paying as agreed on a revised schedule. Foreclosed Assets (include OREO and Other Property Owned) declined during the quarter to $9.2 million at year end, compared to $10.3 million at September 30, 2012. The OREO balance of $8.2 million consists of eight properties with one property accounting for 47% of the total. Of the total amount in OREO, $5.5 million is paying rent/lease payments.

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