Peoples Federal Bancshares, Inc. Announces Second Quarter And Year To Date Results For Fiscal Year 2013

BRIGHTON, Mass., April 29, 2013 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced second quarter and year to date earnings for the fiscal year ending September 30, 2013. For the quarter ended March 31, 2013, the Company reported net income of $545,000 or $0.09 per share, basic and diluted, as compared to net income of $588,000 or $0.09 per share, basic and diluted, for the same period last year and net income of $681,000, or $0.11 per share, basic and diluted, for the quarter ended December 31, 2012. For the six months ended March 31, 2013, the Company reported net income of $1.2 million or $0.20 per share, basic and diluted, as compared to net income of $1.4 million or $0.22 per share, basic and diluted, for the same period last year.

For the quarters ended March 31, 2013 and 2012, net interest and dividend income totaled $4.1 million and $4.2 million, respectively. Non-interest income totaled $488,000 for the quarter ended March 31, 2013, as compared to $375,000 for the quarter ended March 31, 2012. Non-interest expense totaled $3.6 million for both the quarter ended March 31, 2013 and the quarter ended March 31, 2012.

For the six-month periods ended March 31, 2013 and 2012, net interest and dividend income totaled $8.3 million and $8.5 million, respectively. Non-interest income totaled $980,000 for the six-months ended March 31, 2013, as compared to $828,000 for the six months ended March 31, 2012. Non-interest expense totaled $7.0 million for the six months ended March 31, 2013, as compared to $6.9 million for the six months ended March 31, 2012, reflecting higher salaries and employee benefits offset by a decrease in other expense.

On a linked basis, the Company's second quarter fiscal 2013 net interest and dividend income decreased $200,000, or 4.7%, to $4.1 million from $4.3 million for the first fiscal quarter ended December 31, 2012, reflecting continued net interest margin compression during the current quarter. Non-interest income for the second quarter of fiscal 2013 decreased slightly to $488,000 from $492,000 for the first fiscal quarter ended December 31, 2012. Non-interest expense increased $126,000, or 3.7%, for the second quarter of fiscal 2013 compared to the first fiscal quarter ended December 31, 2012. 

Total assets increased $7.5 million, or 1.3%, to $578.3 million at March 31, 2013 from $570.8 million at September 30, 2012.  Loans, net decreased $2.0 million, or 0.5%, as residential real estate, commercial real estate and commercial loans decreased due to loan prepayments. The decreases were offset, in part, by increases in construction and commercial loans. Cash and cash equivalents increased $20.3 million to $56.5 million at March 31, 2013 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. Securities available-for-sale and held-to-maturity decreased $11.0 million, or 23.1%, to $36.6 million at March 31, 2013 from $47.6 million at September 30, 2012. Borrowings remained at $33.0 million at March 31, 2013 and September 30, 2012.  

Deposits increased $12.1 million to $428.8 million at March 31, 2013 from $416.7 million at September 30, 2012. Savings accounts increased $5.7 million, money markets increased $2.9 million, demand deposits increased $1.8 million, and NOWs increased $1.8 million while term certificates decreased $147,000. At March 31, 2013, total stockholders' equity was $108.2 million, a decrease of $2.3 million from $110.5 million at September 30, 2012. The decrease in stockholders' equity during the six-month period was primarily due to dividends paid of $1.9 million and the repurchase and retirement of 147,200 shares, or $2.5 million, of the Company's common stock pursuant to our stock repurchase plan, offset by net income of $1.2 million, stock based compensation expense of $666,000 and common stock released and committed to be released by the ESOP plan of $248,000.

During the quarter ended March 31, 2013, the Company paid a quarterly cash dividend of $0.03 per common share. The dividends paid totaled $178,000 during the quarter. The Company did not pay any dividends during the quarter ended March 31, 2012.   

Non-performing assets totaled $2.0 million, or 0.4% of total assets, at March 31, 2013, compared to $3.4 million, or 0.6% of total assets, at September 30, 2012 and $3.3 million, or 0.6% of total assets, at December 31, 2012. Classified assets decreased to $4.1 million at March 31, 2013, as compared to $9.6 million at September 30, 2012 and $7.0 million at December 31, 2012. The Company provided $80,000 to its provision for loan losses during the quarter ended March 31, 2013, 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
     
  March 31, 2013 September 30, 2012
  (Unaudited)  
  (In thousands, except share data)
ASSETS
Cash and due from banks  $ 3,743  $ 6,713
Interest-bearing demand deposits with other banks  50,495  27,378
Federal funds sold  160  48
Federal Home Loan Bank - overnight deposit  2,102  2,102
Total cash and cash equivalents  56,500  36,241
Securities available-for-sale  15,950  21,653
Securities held-to-maturity (fair values of $21,104 and $26,746)  20,627  25,921
Federal Home Loan Bank stock (at cost)  3,775  4,014
Loans  453,076  454,925
Allowance for loan losses  (4,058)  (3,891)
Loans, net  449,018  451,034
Premises and equipment, net  3,497  3,577
Cash surrender value of life insurance policies  19,707  19,364
Accrued interest receivable  1,484  1,589
Deferred income tax asset, net  5,149  5,116
Other assets  2,581  2,318
Total assets  $ 578,288  $ 570,827
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:    
Non-interest bearing  $ 50,981  $ 49,165
Interest-bearing  377,814  367,583
Total deposits  428,795  416,748
Short-term borrowings  6,000  8,000
Long-term debt  27,000  25,000
Accrued expenses and other liabilities  8,265  10,541
Total liabilities  470,060  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; 6,579,704 and 6,726,904 shares issued and outstanding at March 31, 2013 and September 30, 2012, respectively  66  67
Additional paid-in capital  61,697  63,909
Retained earnings  54,526  55,153
Accumulated other comprehensive income  65  113
Unearned restricted shares; 215,970 and 244,140 shares at March 31, 2013 and September 30, 2012, respectively  (3,341)  (3,777)
Unearned compensation - ESOP  (4,785)  (4,927)
Total stockholders' equity  108,228  110,538
Total liabilities and stockholders' equity  $ 578,288  $ 570,827
 
 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME
         
  Three Months Ended March 31, Six Months Ended March 31,
  2013 2012 2013 2012
  (Unaudited)
  (Dollars in thousands, except share data)
Interest and dividend income:        
Interest and fees on loans  $ 4,619  $ 4,806  $ 9,472  $ 9,673
Interest on debt securities:        
Taxable  120  242  270  513
Other interest  26  17  44  41
Dividends on equity securities  4  6  9  9
Total interest and dividend income  4,769  5,071  9,795  10,236
         
Interest expense:        
Interest on deposits  555  686  1,167  1,455
Interest on Federal Home Loan Bank advances  150  140  300  262
Total interest expense  705  826  1,467  1,717
Net interest and dividend income  4,064  4,245  8,328  8,519
Provision for loan losses  80  125  200  250
Net interest and dividend income, after provision for loan losses  3,984  4,120  8,128  8,269
         
Non-interest income:        
Customer service fees  193  206  403  415
Loan servicing fees (costs), net  6  (26)  14  (13)
Net gain on sales of mortgage loans  46  7  147  7
Increase in cash surrender value of life insurance  181  171  343  329
Other income  62  17  73  90
Total non-interest income  488  375  980  828
         
Non-interest expense:        
Salaries and employee benefits   2,403  2,482  4,729  4,607
Occupancy expense  249  244  478  460
Equipment expense  101  112  207  224
Professional fees  177  121  294  224
Advertising expense  108  161  237  308
Data processing expense  211  204  419  400
Deposit insurance expense  61  50  130  110
Other expense  257  206  514  526
Total non-interest expense  3,567  3,580  7,008  6,859
Income before income taxes  905  915  2,100  2,238
Provision for income taxes   360  327  874  825
Net income   $ 545  $ 588  $ 1,226  $ 1,413
         
Weighted-average shares outstanding:        
Basic  5,894,114  6,231,753  5,935,215  6,302,352
Diluted  5,914,177  6,236,209  5,973,180  6,304,580
         
Earnings per common share:        
Basic  $ 0.09  $ 0.09  $ 0.20  $ 0.22
Diluted  $ 0.09  $ 0.09  $ 0.20  $ 0.22
 
 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME
 
  Three Months Ended
  March 31, 2013 December 31, 2012
  (Unaudited)
  (Dollars in thousands, except share data)
Interest and dividend income:    
Interest and fees on loans  $ 4,619  $ 4,853
Interest on debt securities:    
Taxable  120  150
Other interest  26  18
Dividends on equity securities  4  5
Total interest and dividend income  4,769  5,026
     
Interest expense:    
Interest on deposits  555  612
Interest on Federal Home Loan Bank advances  150  150
Total interest expense  705  762
Net interest and dividend income  4,064  4,264
Provision for loan losses  80  120
Net interest and dividend income, after provision for loan losses  3,984  4,144
     
Non-interest income:    
Customer service fees  193  210
Loan servicing fees, net  6  8
Net gain on sales of mortgage loans  46  101
Increase in cash surrender value of life insurance  181  162
Other income  62  11
Total non-interest income  488  492
     
Non-interest expense:    
Salaries and employee benefits   2,403  2,326
Occupancy expense  249  229
Equipment expense  101  106
Professional fees  177  117
Advertising expense  108  129
Data processing expense  211  208
Deposit insurance expense  61  69
Other expense  257  257
Total non-interest expense  3,567  3,441
Income before income taxes  905  1,195
Provision for income taxes   360  514
Net income   $ 545  $ 681
     
Weighted-average shares outstanding:    
Basic  5,894,114  5,975,422
Diluted  5,914,177  6,031,289
     
Earnings per common share:    
Basic  $ 0.09  $ 0.11
Diluted  $ 0.09  $ 0.11

The following tables set 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 March 31,
  2013 2012
  Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1) Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1)
  (Unaudited)
  (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 449,549  $ 4,619 4.11%  $ 413,633  $ 4,806 4.65%
Taxable securities (3)  35,566  120  1.35  63,024  242  1.54
Other interest-earning assets  50,678  26  0.21  30,137  17  0.23
FHLB stock  3,958  4  0.40  4,253  6  0.56
Total interest-earning assets  539,751  4,769  3.53  511,047  5,071  3.97
Non-interest-earning assets  36,427      37,945    
Total assets  $ 576,178      $ 548,992    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 53,538  20  0.15  $ 48,052  24  0.20
Money market accounts  155,630  200  0.51  155,579  288  0.74
NOW accounts  37,683  6  0.06  36,600  11  0.12
Term certificates  129,105  329  1.02  125,809  363  1.15
Total deposits  375,956  555  0.59  366,040  686  0.75
FHLB advances  32,911  150  1.82  20,484  140  2.73
Total interest-bearing liabilities  408,867  705  0.69  386,524  826  0.85
Demand deposits  49,945      39,909    
Other non-interest-bearing liabilities  9,088      8,530    
Total non-interest-bearing liabilities  59,033      48,439    
Total liabilities  467,900      434,963    
Stockholders' equity  108,278      114,029    
Total liabilities and stockholders' equity  $ 576,178      $ 548,992    
             
Net interest income    $ 4,064      $ 4,245  
Net interest rate spread (4)     2.84%     3.12%
Net interest-earning assets (5)  $ 130,884      $ 124,523    
Net interest margin (6)     3.01%     3.32%
Ratio of interest-earning assets to total interest-bearing liabilities  1.32x      1.32x    
             
(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.
             
             
  Six Months Ended March 31,
  2013 2012
  Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1) Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1)
  (Unaudited)
  (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 451,068  $ 9,472 4.20%  $ 411,602  $ 9,673 4.70%
Taxable securities (3)  38,850  270  1.39  59,259  513  1.73
Other interest-earning assets  42,874  44  0.21  26,606  41  0.31
FHLB stock  3,986  9  0.45  4,296  9  0.42
Total interest-earning assets  536,778  9,795  3.65  501,763  10,236  4.08
Non-interest-earning assets  37,108      49,747    
Total assets  $ 573,886      $ 551,510    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 52,161  39  0.15  $ 47,891  48  0.20
Money market accounts  154,320  435  0.56  153,557  565  0.74
NOW accounts  37,381  12  0.06  36,005  22  0.12
Term certificates  128,426  681  1.06  132,403  820  1.24
Total deposits  372,288  1,167  0.63  369,856  1,455  0.79
FHLB advances  32,681  300  1.84  18,929  262  2.77
Total interest-bearing liabilities  404,969  1,467  0.72  388,785  1,717  0.88
Demand deposits  50,299      39,439    
Other non-interest-bearing liabilities  9,367      8,644    
Total non-interest-bearing liabilities  59,666      48,083    
Total liabilities  464,635      436,868    
Stockholders' equity  109,251      114,642    
Total liabilities and stockholders' equity  $ 573,886      $ 551,510    
             
Net interest income    $ 8,328      $ 8,519  
Net interest rate spread (4)     2.93%     3.20%
Net interest-earning assets (5)  $ 131,809      $ 112,978    
Net interest margin (6)     3.10%     3.40%
Ratio of interest-earning assets to total interest-bearing liabilities  1.33x      1.29x    
             
(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.
             
             
             
  Three Months Ended 
  March 31, 2013 December 31, 2012
  Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1) Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (1)
  (Unaudited)
  (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 449,549  $ 4,619 4.11%  $ 452,554  $ 4,853 4.29%
Taxable securities (3)  35,566  120  1.35  42,062  150  1.43
Other interest-earning assets  50,678  26  0.21  35,656  18  0.20
FHLB stock  3,958  4  0.40  4,014  5  0.50
Total interest-earning assets  539,751  4,769  3.53  534,286  5,026  3.76
Non-interest-earning assets  36,427      37,373    
Total assets  $ 576,178      $ 571,659    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 53,538  20  0.15  $ 50,814  20  0.16
Money market accounts  155,630  200  0.51  153,038  235  0.61
NOW accounts  37,683  6  0.06  37,085  6  0.06
Term certificates  129,105  329  1.02  127,764  351  1.10
Total deposits  375,956  555  0.59  368,701  612  0.66
FHLB advances  32,911  150  1.82  32,457  150  1.85
Total interest-bearing liabilities  408,867  705  0.69  401,158  762  0.76
Demand deposits  49,945      50,643    
Other non-interest-bearing liabilities  9,088      9,654    
Total non-interest-bearing liabilities  59,033      60,297    
Total liabilities  467,900      461,455    
Stockholders' equity  108,278      110,204    
Total liabilities and stockholders' equity  $ 576,178      $ 571,659    
             
Net interest income    $ 4,064      $ 4,264  
Net interest rate spread (4)     2.84%     3.00%
Net interest-earning assets (5)  $ 130,884      $ 133,128    
Net interest margin (6)     3.01%     3.19%
Ratio of interest-earning assets to total interest-bearing liabilities  1.32x      1.33x    
             
(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

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX