ALBANY, Ore., Jan. 27, 2016 /PRNewswire/ -- Willamette Community Bank (OTCQB: WMCB) based in Albany, Oregon, today reported net income of $590,470 for 2015 or $.59 per share, up from $186,109 or $.19 per share in 2014. The improvement represents a 217% increase in net income from the prior year and is a record for Willamette Community Bank.
Highlights for the year include:
-- Loans increased $5.4 million (8.14%) to $72.9 Million.
-- Deposit growth of $4 million (4.78%) significantly funded loan growth
and more than offset the effects of product realignments and interest
rate changes.
-- Pre-provision net interest income increased $269,205 (up 7% from 2014)
due to both increased interest revenue and lower interest expense.
-- Net income of $590,470 includes a $100,000 release from allowance as a
result of improving loan portfolio metrics.
-- Operating profitability or pre-tax, pre-provision income of $793,270 was
up $295,461 (59%) from 2014 reflecting efforts to improve core operating
results.
-- Noninterest income increased 6.5% as a result of product enhancements.
-- Net Interest Margin of 4.44% was in the top 10% of national peers and
was an improvement from 4.14% in 2014.
-- The Texas ratio, a measure of how well a bank's nonperforming assets are
supported by reserves, remains below 1.00, much better than peers with
an average of over 10.00.
President and Chief Executive Officer, Dan McDowell, states, "After only the second full year with the current management team and structure, our efforts of aligning our capabilities with the markets we serve are producing the desired results. Previous investments in infrastructure to build capacity and a companywide focus on our strategic plan have allowed us to grow while reducing expenses at the same time. We continue to see opportunities for growth in all of our markets."
Earnings
2015 reflected a continuing trend of improved earning asset performance. The earnings from loans more than offset the declining investment earnings which partially funded the growth. While overall investment balances went down, the overall return on the portfolio improved as a result of a broader investment strategy. Interest income of $4.28 million was up 3.2% or $130,915 from 2014. Interest expense fell significantly as high cost time deposits matured and were allowed to run off and deposit rates were aligned with the market. The lower cost of funds complimented the improved earning asset performance and net interest income climbed $269,205 (7%) to $4.113 million from $3.844 million in 2014.
Noninterest income showed modest improvements with only a 6.5% increase over 2014 levels. The increase was a result of pricing and product changes made mid-2015.
Assets
Total assets increased 4.81% or $4.5 million from 2014 to end the year at $98.9 million. Assets consist of loans (74%), cash and securities (24%) and other assets including premises (2%). Loans increased 8.14% or $5.4 million for the year and were funded primarily by deposits. Cash balances increased $4.1 million as a result of securities cash flow. The higher than normal cash balances were held in anticipation of near term loan funding demand.
As of 12/31/2015, the Bank held an allowance for loan losses of $929,000 or 1.26% of total assets. This is down somewhat from 2014, but reflects improvement in the loan portfolio and the low level of non-performing assets of .14% compared to peer level of 1.00%. During the year charge-offs of $16,084 were more than offset by recoveries of $18,605. The Bank had no past due loans at year end 2015.
Deposits
Deposits increased $4 million or 4.78% for the year. This is in line with expectations as intentional repricing of the deposit portfolio resulted in a $6 million reduction in high cost time deposits which were replaced with lower cost money market balances. Deposit balances consist of demand deposits (35%), money market (50%), savings (7%) and time deposits (8%). Of the $6.9 million in time deposits, $2.4 million were reciprocal brokered deposits. The Bank does not have any non-reciprocal brokered deposits. Overall, the cost of funds was reduced from an average of .31% in the fourth quarter of 2014 to an average of .18% in the fourth quarter of 2015. The loan to deposit ratio, near 83% reflects, a well-funded balance sheet. The Bank did not have any borrowed funds at year-end 2015.
Capital
At the end of 2015, the Bank had Tier 1 leverage ratio of 10.75%, a Tier 1 capital ratio of 12.49% and a Total Risk Based Capital Ratio of 13.59%. The Bank remains "Well capitalized" according to all regulatory standards. The risk based capital ratios are lower than peers as a result of the Bank doing a better job deploying funding into loans which carry a 100% risk weighting when compared to those banks with lower loan to deposit ratios.
Certain statements in this release may constitute forward-looking statements within the definition of the "safe-harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant uncertainties, which could cause actual results to differ materially from those set forth in such statements. Forward-looking statements are those that incorporate management's current expectations and plans based on information currently known to them. These statements can sometimes be identified by words such as "believe," "estimate," "anticipate," "expect," "intend," "will," "may," "should," or other similar phrases or words. Readers are cautioned not to place undue reliance on forward-looking statements. In particular, they should not be construed as assurances of a given level of performance or as promises of a given set of management's actions. Some of the factors that could cause management to deviate from its current plans, or could cause the Company's results to differ from current expectations, include the effect of localized or regional economic shifts that may affect the collectability of loans or the value of the collateral underlying those loans; the effects of laws, regulations, policies and government actions upon the Company's assets and operations; sensitivity to local geographic markets and events affecting those markets; and the impacts of new government initiatives upon us and our borrowers. The Company does not intend to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events
Contact: Dan McDowell, President and Chief Executive Officer
(541) 926-9000 or dmcdowell@willamettecommunitybank.com
Statements of Financial Condition
December 31
2015 2014 % Change
(Unaudited) (Audited) 2015 vs 2014
---------- -------- ------------
ASSETS
------
Cash and cash equivalents: $7,734,111 $3,653,924 111.67%
Investment securities, available for sale 11,240,128 17,712,671 -36.54%
Investment securities, held to maturity 4,501,176 2,988,484 50.62%
Loans, net 72,864,459 67,382,128 8.14%
Other assets 2,542,097 2,603,231 -2.35%
Total assets $98,881,971 $94,340,438 4.81%
=========== =========== ====
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
LIABILITIES
-----------
Deposits:
Total deposits 88,297,364 84,267,394 4.78%
Accrued interest and other liabilities 56,262 115,468 -51.27%
------ ------- ------
Total liabilities 88,353,626 84,382,862 4.71%
SHAREHOLDERS' EQUITY
--------------------
Common stock, 998,999 shares issued and outstanding at December 31, 2015 and 2014
8,681,680 8,681,680 0.00%
Retained earnings 1,852,456 1,261,986 46.79%
Accumulated other comprehensive income (5,791) 13,910 -141.63%
------ ------ -------
Total shareholders' equity 10,528,345 9,957,576 5.73%
---------- --------- ----
Total liabilities and shareholders' equity $98,881,971 $94,340,438 4.81%
=========== =========== ====
Weighted average common shares outstanding:
Basic and diluted 998,999 981,620 1.8%
Book value per share $10.54 $9.97 5.73%
Non performing assets ratio 0.10% 0.06%
Tier 1 leverage Ratio 10.75% 10.02%
Tier 1 Capital Ratio 12.49% 13.10%
Total Risk-based Capital Ratio 13.59% 14.35%
Statements of Income
12 months ended
December 31
2015 2014 % Change
(Unaudited) (Audited) 2015 vs 2014
---------- -------- ------------
INTEREST INCOME
Interest and
fees on loans $3,915,539 $3,732,158 4.9%
Taxable
interest on
investment
securities 221,124 302,876 -27.0%
Nontaxable
interest on
investment
securities 120,531 88,270 36.5%
Other interest
income 23,717 26,692 -11.1%
------ ------ -----
Total interest
income 4,280,911 4,149,996 3.2%
--------- --------- ---
INTEREST
EXPENSE
Deposits:
Interest-
bearing
demand, money
market and
savings 114,581 170,566 -32.8%
Time 52,359 134,678 -61.1%
Borrowing 14 -
--- ---
Total interest
expense 166,954 305,244 -45.3%
------- ------- -----
NET INTEREST
INCOME 4,113,957 3,844,752 7.0%
Loan loss
provision (100,000) 238,000 -142.0%
-------- ------- ------
Net interest
income after
loan loss
provision 4,213,957 3,606,752 16.8%
--------- --------- ----
NON-INTEREST
INCOME
Total non-
interest
income 242,624 227,780 6.5%
------- ------- ---
NON-INTEREST
EXPENSE 3,563,311 3,574,723 -0.3%
--------- --------- ----
Income before
income taxes 893,270 259,809 243.8%
Provision for
income taxes 302,800 73,700 310.9%
------- ------ -----
Net income $590,470 $186,109 217.3%
======== ======== =====
Basic and
diluted
earnings per
common share $0.59 $0.19 211.8%
Return on
Assets 0.61% 0.19%
Return on
Equity 5.77% 1.95%
Net interest
margin 4.44% 4.14%
Efficiency
ratio 81.79% 87.78%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/willamette-community-bank-reports-record-earnings-in-2015-300210795.html
SOURCE Willamette Community Bank
