Peoples Federal Bancshares, Inc. Announces Fiscal First Quarter 2013 Results

BRIGHTON, Mass., Jan. 30, 2013 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced earnings for the quarter ending December 31, 2012, the fiscal first quarter for its year. For the three months ended December 31, 2012, the Company reported net income of $681,000 or $0.11 per share, basic and diluted, as compared to net income of $825,000 or $0.13 per share, basic and diluted, for the same period last year.

Net interest and dividend income totaled $4.3 million for both three-month periods ended December 31, 2012 and 2011. Non-interest income totaled $492,000 for the three months ended December 31, 2012 as compared to $453,000 for the three months ended December 31, 2011. Non-interest expense totaled $3.4 million for the three months ended December 31, 2012 as compared to $3.3 million for the three months ended December 31, 2011, reflecting higher salaries and employee benefits offset by a decrease in other expense.

Total assets increased $6.6 million, or 1.2%, to $577.4 million at December 31, 2012 from $570.8 million at September 30, 2012. Loans, net increased $1.5 million, or 0.3%, as we experienced increases in construction loans, residential real estate and commercial loans, offset by decreases in commercial real estate loans and multi-family loans. Cash and cash equivalents increased $16.2 million to $52.4 million at December 31, 2012 from $36.2 million at September 30, 2012. This increase was the result of an increase in deposits and maturing securities, which management determined not to reinvest into loans or securities in the low interest rate environment. Borrowings remained at $33.0 million at December 31, 2012 and September 30, 2012. Deposits increased $9.9 million to $426.6 million at December 31, 2012 from $416.7 million at September 30, 2012. The increases were in all deposit types. Demand deposits increased $2.9 million, term certificates increased $2.4 million, savings increased $1.7 million, money markets increased $1.6 million and NOWs increased $1.3 million. At December 31, 2012, total stockholders' equity was $108.8 million, a decrease of $1.7 million from $110.5 million at September 30, 2012. The decrease in stockholders' equity during the quarter was primarily due to dividends of $1.7 million and the repurchase and retirement of 67,300 shares or $1.1 million of the Company's common stock pursuant to our stock repurchase plan, offset by net income of $681,000, stock options and restricted stock awards earned of $333,000 and common stock released by the ESOP plan of $121,000.

During the quarter ended December 31, 2012, the Company paid a quarterly cash dividend of $0.03 per common share. In addition, the Company paid a special cash dividend of $0.25 per common share during the December 31, 2012 quarter. The dividends paid totaled $1.7 million during the quarter. The Company did not pay any dividends during the quarter ended December 31, 2011.   

Non-performing assets totaled $3.3 million, or 0.57% of total assets, at December 31, 2012, as compared to $3.4 million, or 0.60% of total assets, at September 30, 2012. Classified assets decreased to $7.0 million at December 31, 2012 compared to $9.6 million at September 30, 2012. The Company provided $120,000 to the provision for loan losses during the quarter ended December 31, 2012, reflecting an increase in net loans and changes in the loan segments.    

Certain statements herein constitute "forward-looking statements" and actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Peoples Federal Bancshares, Inc. is engaged and changes in the securities market. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
     
CONSOLIDATED BALANCE SHEETS
     
  December 31, September 30,
  2012 2012
  (Unaudited)  
  (In thousands, except share data)
ASSETS
Cash and due from banks  $ 6,442  $ 6,713
Interest-bearing demand deposits with other banks  43,858  27,378
Federal funds sold  41  48
Federal Home Loan Bank - overnight deposit  2,102  2,102
Total cash and cash equivalents  52,443  36,241
Securities available-for-sale  13,340  21,653
Securities held-to-maturity (fair values of $23,745 and 26,746)  23,178  25,921
Federal Home Loan Bank stock (at cost)   4,014  4,014
Loans   456,524  454,925
Allowance for loan losses   (4,007)  (3,891)
Loans, net   452,517  451,034
Premises and equipment, net  3,492  3,577
Cash surrender value of life insurance policies  19,526  19,364
Accrued interest receivable   1,367  1,589
Deferred income tax asset, net  5,131  5,116
Other assets   2,431  2,318
Total assets  $ 577,439  $ 570,827
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:    
Non-interest bearing  $ 52,032  $ 49,165
Interest-bearing  374,596  367,583
Total deposits  426,628  416,748
Short-term borrowings  6,000  8,000
Long-term debt  27,000  25,000
Accrued expenses and other liabilities  8,977  10,541
Total liabilities  468,605  460,289
     
Stockholders' equity:    
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued  --  --
Common stock, $0.01 par value; 100,000,000 shares authorized; 6,659,604 and 6,726,904 shares issued and outstanding at December 31, 2012 and September 30, 2012, respectively   66  67
Additional paid-in capital  62,934  63,909
Retained earnings  54,159  55,153
Accumulated other comprehensive income   90  113
Unearned restricted shares; 230,055 and 244,140 shares at December 31, 2012 and September 30, 2012, respectively  (3,559)  (3,777)
Unearned compensation - ESOP  (4,856)  (4,927)
Total stockholders' equity  108,834  110,538
Total liabilities and stockholders' equity  $ 577,439  $ 570,827
 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF INCOME
     
  Three Months Ended
  December 31,
  2012 2011
  (Unaudited)
  (Dollars in thousands, except share data)
Interest and dividend income:    
Interest and fees on loans  $ 4,853  $ 4,867
Interest on debt securities:    
Taxable  150  271
Other interest  18  24
Dividends on equity securities  5  3
Total interest and dividend income  5,026  5,165
     
Interest expense:    
Interest on deposits  612  769
Interest on Federal Home Loan Bank advances  150  122
Total interest expense  762  891
Net interest and dividend income  4,264  4,274
Provision for loan losses  120  125
Net interest and dividend income, after provision for loan losses  4,144  4,149
     
Non-interest income:    
Customer service fees  210  209
Loan servicing fees  8  13
Net gain on sales of mortgage loans  101  --
Increase in cash surrender value of life insurance  162  158
Other income  11  73
Total non-interest income  492  453
     
Non-interest expense:    
Salaries and employee benefits   2,326  2,125
Occupancy expense  229  216
Equipment expense  106  112
Professional fees  117  103
Advertising expense  129  147
Data processing expense  208  196
Deposit insurance expense  69  60
Other expense  257  320
Total non-interest expense  3,441  3,279
Income before income taxes  1,195  1,323
Provision for income taxes   514  498
Net income   $ 681  $ 825
     
Weighted-average shares outstanding:    
Basic  5,975,422  6,372,181
Diluted  6,031,289  6,372,181
     
Earnings per common share:    
Basic  $ 0.11  $ 0.13
Diluted  $ 0.11  $ 0.13

The following table sets forth average assets, liability and equity account balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
  Three Months Ended December 31,
  2012 2011
  Average Interest Average Average Interest Average
  Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
  Balance Paid Rate (1) Balance Paid Rate (1)
  (Unaudited)
  (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 452,554  $ 4,853 4.29%  $ 409,593  $ 4,867 4.75%
Taxable securities (3)  42,062  150  1.43  55,535  271  1.95
Other interest-earning assets  35,656  18  0.20  36,351  24  0.26
FHLB stock  4,014  5  0.50  4,339  3  0.28
Total interest-earning assets  534,286  5,026  3.76  505,818  5,165  4.08
Non-interest-earning assets  37,373      48,182    
Total assets  $ 571,659      $ 554,000    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 50,814  20  0.16  $ 47,732  24  0.20
Money market accounts  153,038  235  0.61  151,557  277  0.73
NOW accounts  37,085  6  0.06  35,416  11  0.12
Term certificates  127,764  351  1.10  138,926  457  1.32
Total deposits  368,701  612  0.66  373,631  769  0.82
FHLB advances  32,457  150  1.85  17,391  122  2.81
Total interest-bearing liabilities  401,158  762  0.76  391,022  891  0.91
Demand deposits  50,643      38,974    
Other non-interest-bearing liabilities  9,654      8,755    
Total non-interest-bearing liabilities  60,297      47,729    
Total liabilities  461,455      438,751    
Stockholders' equity  110,204      115,249    
Total liabilities and stockholders' equity  $ 571,659      $ 554,000    
             
Net interest income    $ 4,264      $ 4,274  
Net interest rate spread (4)     3.00%     3.17%
Net interest-earning assets (5)  $ 133,128      $ 114,796    
Net interest margin (6)     3.19%     3.38%
Ratio of total interest-earning assets to total interest-bearing liabilities  1.33 x      1.29 x    
             
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
CONTACT: Maurice H. Sullivan, Jr.         (617) 254-0707

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