- Net income for the quarter improved to $585,000, up 24% from $473,000 in the linked quarter and up 72% from $341,000 in the same quarter in the prior year. Year-to-date June 30, 2012 net income is $1.1 million, up an impressive 57% from $674,000 in 2011; year-to-date income before income taxes more than doubled:
|Income before income taxes||$||1,503,000||$||675,000|
|Provision for income taxes||445,000||1,000|
- Net interest income totaled $4.4 million for the quarter ended June 30, 2012, slightly higher than the linked quarter’s $4.3 million. Year-to-date 2012 net interest income totaled $8.7 million, a 21% increase over the prior year.
- Total assets were $639 million, stable from the linked quarter. “We are very focused on improving our profitability and enhancing our risk management infrastructure,” stated Chief Executive Officer David R. Misch.
- Total deposits declined slightly over the linked quarter, to $553 million at June 30, 2012, as the Bank favorably restructured certain brokered certificates of deposit issued for interest rate risk management purposes to take advantage of record-low, long-term interest rates.
- Demand deposits totaled $247 million and accounted for 45% of total deposits at June 30, 2012 as compared to $270 million or 46% of total deposits at the linked quarter. The decline reflects the planned withdrawal of a short-term demand deposit at the beginning of the second quarter.
- Total earning loans were $315 million at June 30, 2012, a slight decrease from the linked quarter.
- Non-accrual loans totaled $2.7 million at June 30, 2012 and continue to account for less than 1% of total loans outstanding. At June 30, 2012, the coverage ratio of the allowance for credit losses to non-accrual loans was 215% and the Bank had no earning loans past due 90 days or more.
- The allowance for credit losses was $5.9 million or 1.84% of total loans at June 30, 2012, compared to $5.8 million or 1.81% in the linked quarter. The provision for credit losses, primarily attributable to loan growth, totaled $39,000 for the second quarter and $477,000 for year-to-date 2012. The Bank has incurred no gross loan charge-offs in 2012.
- The Bank’s capital ratios continued to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:
|Tier 1 leverage ratio||7.34||%||5.00||%|
|Tier 1 risk-based capital ratio||13.58||%||6.00||%|
|Total risk-based capital ratio||14.84||%||10.00||%|