Attached files
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| 8-K - SOUND FINANCIAL, INC. 8-K - Sound Financial, Inc. | a6386444.htm |
Exhibit 99.1
Sound Financial Reports Higher Second Quarter Earnings
SEATTLE--(BUSINESS WIRE)--August 4, 2010--Sound Financial Inc. (OTCBB:SNFL), holding company for Sound Community Bank, today announced financial results for the quarter ended June 30, 2010.
The Company reported a net profit of $278 thousand or $0.10 per share for the quarter ended June 30, 2010, compared to net income of $57 thousand or $0.02 per share in the first quarter of 2010 and a net loss of $303 thousand or $0.11 per share in the for the quarter ended June 30, 2009.
Financial Highlights:
- Net Interest Margin increased to 4.77% for the quarter ended 6/30/10
- Cost of Deposits decreased to 1.36% for the quarter ended 6/30/10
- Allowance for Loan Losses was 1.29% of total loans outstanding at 6/30/10
- The Bank remains “Well Capitalized” with Tier 1 Capital of 7.40% and Total Risk Based Capital of 11.08% at 6/30/10
President and CEO Laurie Stewart said, “Despite the economic environment, we achieved positive results in our core business lines during the second quarter. We remain focused on improving credit quality, maintaining our net interest margin and increasing business efficiencies. With signs of stabilizing employment levels and real estate prices in the Puget Sound area, we are guardedly optimistic that we are experiencing the early stages of a recovery.”
| As of | |||||||||||
|
6/30/2010 |
3/31/2010 |
6/30/2009 |
|||||||||
| (In thousands) | |||||||||||
|
Selected Consolidated Financial Condition Data: |
|||||||||||
| Total assets | $ | 340,926 | $ | 337,801 | $ | 324,870 | |||||
| Loans receivable, net | 305,450 | 293,323 | 276,945 | ||||||||
| Loans held for sale | 1,096 | 2,333 | 4,822 | ||||||||
| Mortgage-backed securities available for sale (at fair value) | 4,328 | 12,383 | 21,936 | ||||||||
| Federal Home Loan Bank stock | 2,444 | 2,444 | 2,444 | ||||||||
| Bank owned life insurance | 6,596 | 6,529 | 6,327 | ||||||||
| Repossessed assets and real estate owned | 1,847 | 1,904 | 1,011 | ||||||||
| Deposits | 285,339 | 287,931 | 254,943 | ||||||||
| Federal Home Loan Bank advances | 26,617 | 20,000 | 41,400 | ||||||||
| Stockholders’ Equity | 25,299 | 25,268 | 25,528 | ||||||||
|
Quarter Ended |
|||||||||||||||||
|
6/30/2010 |
3/31/2010 |
6/30/2009 |
|||||||||||||||
|
(In thousands) |
|||||||||||||||||
|
Selected Consolidated Operating Data: |
|||||||||||||||||
| Total interest income |
$ |
4,924 |
$ |
4,770 |
$ |
4,738 |
|||||||||||
| Total interest expense | 1,152 | 1,168 | 1,850 | ||||||||||||||
| Net interest income | 3,772 | 3,602 | 2,888 | ||||||||||||||
| Provision for loan losses | 775 | 1,425 | 925 | ||||||||||||||
| Net interest income after provision for loan losses | 2,997 | 2,177 | 1,963 | ||||||||||||||
| Fees and service charges | 550 | 529 | 476 | ||||||||||||||
| Gain on sale of loans | 58 | 64 | 52 | ||||||||||||||
| Loss on sale of assets | (41 | ) | (48 | ) | (362 | ) | |||||||||||
| (Loss) gain on sale of securities | (11 | ) | 75 | - | |||||||||||||
| Impairment on securities | (51 | ) | - | - | |||||||||||||
| Fair value adjustment on mortgage servicing rights | (210 | ) | 285 | - | |||||||||||||
| Other non-interest income | 221 | 230 | 353 | ||||||||||||||
| Total non-interest income | 516 | 1,135 | 519 | ||||||||||||||
| Total non-interest expense | 3,135 | 3,262 | 2,966 | ||||||||||||||
| Income (loss) before provision (benefit) for income taxes | 378 | 50 | (484 | ) | |||||||||||||
| Provision (benefit) for income taxes | 100 | (7 | ) | (181 | ) | ||||||||||||
| Net income (loss) | 278 | 57 | (303 | ) | |||||||||||||
|
Selected Financial Ratios and Other Data: |
|||||||||||||||||
| Performance ratios: | |||||||||||||||||
| Return on assets (ratio of net income (loss) to average total assets) | 0.32 | % | 0.07 | % | (0.38 | )% | |||||||||||
| Return on equity (ratio of net income (loss) to average equity) | 4.40 | % | 0.88 | % | (2.36 | )% | |||||||||||
| Net interest margin | 4.77 | % | 4.66 | % | 3.92 | % | |||||||||||
| Non-interest income to operating revenue | 12.02 | % | 23.97 | % | 15.20 | % | |||||||||||
| Non-interest expense to average total assets | 3.66 | % | 3.89 | % | 3.77 | % | |||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 100.87 | % | 101.12 | % | 102.77 | % | |||||||||||
| Efficiency ratio | 73.11 | % | 68.86 | % | 87.06 | % | |||||||||||
| Asset quality ratios: | |||||||||||||||||
| Non-performing assets to total assets | 3.54 | % | 4.24 | % | 2.11 | % | |||||||||||
| Non-performing loans to gross loans | 1.36 | % | 1.20 | % | 1.14 | % | |||||||||||
| Allowance for loan losses to non-performing loans | 96.07 | % | 114.46 | % | 59.72 | % | |||||||||||
| Allowance for loan losses to gross loans | 1.29 | % | 1.35 | % | 0.68 | % | |||||||||||
| Net charge-offs to average loans outstanding | 1.04 | % | 1.17 | % | 0.74 | % | |||||||||||
|
Consolidated capital ratios: |
|||||||||||||||||
|
Equity to total assets at end of period |
7.42 |
% |
7.48 |
% |
7.86 |
% |
|||||||||||
|
Average equity to average assets |
7.37 |
% |
7.70 |
% |
8.14 |
% |
|||||||||||
| Six Months Ended | ||||||||
|
6/30/2010 |
6/30/2009 |
|||||||
| (In thousands) | ||||||||
|
Selected Consolidated Operating Data: |
||||||||
| Total interest income |
$ |
9,694 |
$ |
9,276 |
||||
| Total interest expense | 2,321 | 3,758 | ||||||
| Net interest income | 7,374 | 5,518 | ||||||
| Provision for loan losses | 2,200 | 1,375 | ||||||
| Net interest income after provision for loan losses | 5,174 | 4,143 | ||||||
| Fees and service charges | 1,078 | 990 | ||||||
| Gain on sale of loans | 122 | 76 | ||||||
| Loss on sale of assets | (89 | ) | (555 | ) | ||||
| Gain on sale of securities | 13 | - | ||||||
| Impairment on securities | (51 | ) | - | |||||
| Fair value adjustment on mortgage servicing rights | 75 | - | ||||||
| Other non-interest income | 503 | 592 | ||||||
| Total non-interest income | 1,651 | 1,103 | ||||||
| Total non-interest expense | 6,397 | 5,649 | ||||||
| Income (loss) before provision (benefit) for income taxes | 428 | (403 | ) | |||||
| Provision (benefit) for income taxes | 93 | (175 | ) | |||||
| Net income (loss) | 335 | (228 | ) | |||||
|
Selected Financial Ratios and Other Data: |
||||||||
| Performance ratios: | ||||||||
| Return on assets (ratio of net income to average total assets) | 0.20 | % | (0.15 | %) | ||||
| Return on equity (ratio of net income to average equity) | 2.66 | % | (1.76 | %) | ||||
| Net interest margin | 4.72 | % | 3.86 | % | ||||
| Non-interest income to operating revenue | 18.30 | % | 16.66 | % | ||||
| Non-interest expense to average total assets | 3.77 | % | 3.64 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 101.00 | % | 103.00 | % | ||||
| Efficiency ratio | 70.88 | % | 85.32 | % | ||||
Sound Financial Inc. is the holding company for Sound Community Bank, a full-service bank, providing personal and business banking services in communities across the greater Puget Sound region. The Seattle-based company operates five full-service banking offices in King, Pierce, Snohomish and Clallam Counties, and is on the web at www.soundcb.com.
Forward-Looking Statements
This report contains statements that are not historical or current fact and constitute forward-looking statements. In some cases, you can identify these statements by words such as "may", "might", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", or "continue", the negative of these terms and other comparable terminology. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events, and there are or may be important factors that could cause our actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Unless required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.
Results of operations and business are subject to various factors which could cause actual results to differ materially from these estimates and most other statements that are not historical in nature. These factors include, but are not limited to, general and local economic conditions, changes in interest rates, deposit flows, demand for mortgage, consumer and other loans, real estate values, competition, changes in accounting principles, policies or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.
CONTACT:
Sound Financial Inc.
Media:
Scott
Boyer, 206-448-0884 x-312
Financial:
Matt Deines,
206-448-0884 x-305