By January 29, 2014
CBT Financial Corp.(OTCBB - CBTC), the parent company of Clearfield Bank & Trust Company, today announced net income, before preferred stock dividends, of $2,524,786 in 2013, an decrease of 19.5% or $612,642, from net income of $3,137,428 in 2012.
The reduction in net earnings was caused primarily by several one-time events and the continued low interest rate environment that is placing pressure on the entire banking industry's net interest margin. The most significant event was the decision to relocate our Huntingdon branch office to improve visibility and customer service. As a result there was a $610,000 increase in annual depreciation for the Huntingdon office, which
includes a $546,000 depreciation charge related to the decision to relocate the office. We anticipate a February 2014 opening for the relocated branch. Another factor that negatively impacted net income was the difference in security gains year over year. In
2012 there were gains taken of $610,546 compared to only $379,038 realized in 2013. Consequently, earnings per share fell from $ 3.05 in 2012 to $2.37 per share in 2013. Our earnings translated to a return on average shareholders' equity for 2013 of 7.15%, and our return on assets was 0.60%. While we fell short of our budgeted earnings, if the one-time events were considered, net income would have been similar to 2013 even with the lower net interest margin.
At year end 2013, our total assets were $426.2 million or an increase of $8.1 million and total loans grew by $14.1 million year over year. Our nonperforming loans to total loans was a very low 0.29% and charge offs to total loans was only 0.15% for 2013. Because of the improvement in asset quality, the provision for loan losses decreased by $525,000 over the previous year.
Based on our overall performance, the Board of Directors did authorize a special dividend of $0.03 per share in addition to our regular dividend of $0.30 per share, for shareholders of record as of January 10, 2013.
CBT Financial Corp, is the holding company of Clearfield Bank & Trust Company, which operates fourteen community offices throughout Bedford, Blair, Centre, Clearfield and Huntingdon Counties. They provide a full range of consumer and business banking services along with trust services and financial planning. For more information, contact their headquarters at 814-765-7551 or log onto www.cbtfinancial.com.
Certain statements in this news release that related to CBT Financial Corp's plans, objectives, or future performance may be deemed to be forward-looking statements. Such statements are based on management's current expectations. Actual strategies and results in future periods may differ materially from those currently expected because of various risks and uncertainties.
Highlights
• Net income of $2.525 million, or $2.37 per share
• Return on average equity of 7.15%
• Return on average assets of 0.60%
• Net loans of $279.0 million, an increase of $14.1 million or 5.3% over December
31, 2012
• Deposits of 365.2 million, an increase of $9.8 million or 2.7% over December 31,
2012
Balance Sheet ($000) | 12/31/2013 | 12/31/2012 |
Cash and cash equivalents | $15,305 | $26,080 |
Securities | 98,228 | 94,563 |
Net loans | 278,957 | 264,878 |
Premises and equipment | 11,967 | 9,801 |
Other assets | 21,721 | 22,802 |
Total Assets | $426,178 | $418,124 |
Deposits | $365,225 | $355,476 |
Borrowings and subordinated debentures | 13,000 | 13,000 |
Other liabilities | 5,622 | 6,638 |
Total liabilities | 383,847 | 375,114 |
Equity | 42,331 | 43,010 |
Total liabilities and equity | $426,178 | $418,124 |
Income Statement ($000) | 12/31/2013 | 12/31/2012 |
Net Interest Income | $13,194 | $13,468 |
Provision for loan losses | 350 | 875 |
Net Interest income after provision | 12,844 | 12,593 |
Realized security gains | 379 | 611 |
Noninterest income | 4,411 | 4,340 |
Noninterest expense | 14,511 | 13,491 |
Income before income taxes | 3,123 | 4,053 |
Income taxes | 598 | 916 |
Per Share Items ($) | 12/31/2013 | 12/31/2012 |
Earnings per share | $2.37 | $3.05 |
Dividends per share | 1.23 | 1.23 |
Asset Quality Ratios (%) | 12/31/2013 | 12/31/2012 |
Nonperforming assets to total assets | 0.21 | 0.52 |
Loan losses reserve to total loans | 1.10 | 1.19 |
Net charge-offs to average loans | 0.15 | 0.40 |
Performance Ratios (%) | 12/31/2013 | 12/31/2012 |
Return on average assets | 0.60 | 0.77 |
Return on average equity | 7.15 | 9.32 |
Net interest margin | 3.48 | 3.69 |
Loan to Deposits | 77.59 | 75.41 |
Capital Ratios (%) | 12/31/2013 | 12/31/2012 |
Total capital to risk weighted assets | 17.10 | 17.01 |
Tier 1 capital to risk weighted assets | 15.94 | 15.77 |
Tier 1 capital to average assets | 10.23 | 10.30 |
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