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8-K - CURRENT REPORT - Athens Bancshares Corpathens8knov2-12.htm
Exhibit 99.1



ATHENS BANCSHARES CORPORATION REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2012

Athens, Tennessee, October 31, 2012, Athens Bancshares Corporation (NASDAQ: AFCB – news) (the “Company”), the holding company for Athens Federal Community Bank (the “Bank”), today announced its results of operations for the three and nine months ended September 30, 2012.  The Company’s net income for the three months ended September 30, 2012, was $746,000 or $0.32 per diluted share, compared to net income of $463,000 or $0.18 per diluted share for the same period in 2011.  For the nine months ended September 30, 2012, net income was $2.0 million or $0.83 per diluted share, compared to net income of $1.2 million or $0.46 per diluted share for the nine months ended September 30, 2011.

Results of Operations – Three Months Ended September 30, 2012 and 2011

Net interest income after provision for loan losses increased $311,000 or 13.70%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.  Interest income decreased $37,000 when comparing the two periods as the average balance of interest-earning assets increased from $264.1 million for the three months ended September 30, 2011 to $271.8 million for the comparable period in 2012. The average yield on interest earning assets decreased from 5.56% during the three months ended September 30, 2011 to 5.34% for the comparable period in 2012.   Interest expense decreased $184,000 as the average cost of interest-bearing liabilities decreased from 1.52% to 1.16% when comparing the same two periods, which more than offset an increase in the average balance of those liabilities from $219.5 million for the quarter ended September 30, 2011 to $223.8 million for the comparable period in 2012.  The provision for loan losses decreased $164,000 from $564,000 for the quarter ended September 30, 2011 to $400,000 for the quarter ended September 30, 2012.
 
Non-interest income increased $152,000 to $1.4 million for the three months ended September 30, 2012 compared to the same period in 2011.  The increase was primarily due to an increase in income related to sale of loans on the secondary market, an increase in debit card related income and an increase in income related to consumer loan related fees and revenue from Valley Title Services, LLC partially offset by a reduction in deposit related fees generated from non-sufficient fund charges.

Non-interest expense increased $43,000 to $2.9 million for the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011.  The primary reason for the increase was an increase in data processing expense as a result of increased debit card transaction activity.

Income tax expense for the three months ended September 30, 2012 was $347,000 compared to $210,000 for the same period in 2011.  The primary reason for the change was the increase in taxable income during the 2012 period.


 
 

 

Results of Operations – Nine Months Ended September 30, 2012 and 2011

Net interest income after provision for loan losses increased $1.4 million, or 19.76%, for the nine months ended September 30, 2012 as compared to the same period in 2011.  Interest income decreased $145,000 when comparing the two periods as the average balance of interest-earning assets increased from $262.7 million for the nine months ended September 30, 2011 to $270.4 million for the comparable period in 2012.  The average yield on interest-earning assets decreased from 5.57% during the nine months ended September 30, 2011 to 5.34% for the same period in 2012.  Interest expense decreased $546,000 as the average cost of interest bearing liabilities decreased from 1.56% to 1.21% when comparing the same two periods, while the average balance of interest bearing liabilities increased $3.4 million from $218.8 million to $222.2 million.  The provision for loan losses decreased $953,000 from $1.6 million for the nine months ended September 30, 2011 to $606,000 for the nine months ended September 30, 2012. The decrease in provision for loan losses was primarily due to a decrease in net charge offs period over period.

Non-interest income increased $372,000 for the nine months ended September 30, 2012 compared to the same period in 2011.  The increase was primarily due to an increase in income related to the sale of mortgage loans on the secondary market, an increase in debit card related income and an increase in revenue from Valley Title Services, LLC partially offset by reductions in nonsufficient fund charges on deposit accounts and customer investment sales commissions.

Non-interest expense increased $126,000 for the nine months ended September 30, 2012 compared to the same period in 2011.  The increase was primarily due to data processing fees related to increased debit card transactions.

Income tax expense for the nine months ended September 30, 2012 was $1.3 million as compared to an income tax expense of $552,000 for the same period in 2011.  The primary reason for the change was the increase in taxable income during the 2012 period.

Total assets increased $9.1 million to $292.8 million at September 30, 2012, compared to $283.7 million at December 31, 2011.  The Bank was considered well-capitalized under applicable federal regulatory capital guidelines at September 30, 2012.

This release may contain forward-looking statements within the meaning of the federal securities laws.  These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as “expects”, “believes”, “anticipates”, “intends” and similar expressions.

Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements.  Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf.  Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
 
 

 
 

 

ATHENS BANCHSARES CORPORATION AND SUBSIDIARY
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share amounts)
               
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30,
 
SEPTEMBER 30,
 
2012
 
2011
 
2012
 
2011
Operating Data:
             
Total interest income
 $      3,631
 
 $       3,668
 
 $    10,828
 
 $     10,973    
Total interest expense
648 
 
832
 
2,018
 
2,564    
               
Net interest income
2,983
 
2,836
 
8,810
 
8,409    
Provision for loan losses
400
 
564
 
606
 
1,559    
Net interest income after provision for loan losses
2,583
 
2,272
 
8,204
 
6,850    
               
Total non-interest income
1,435
 
1,283
 
3,853
 
3,481    
Total non-interest expense
2,925
 
2,882
 
8,711
 
8,585    
               
Income  before income taxes
1,093
 
673
 
3,346
 
1,746    
Income tax expense
347
 
210
 
1,323
 
552    
               
Net income
 $          746
 
 $            463
 
 $        2,023
 
 $       1,194    
               
Net income per share, basic
 $         0.33
 
$            0.18
 
 $          0.85
 
$         0.47    
Average common shares outstanding, basic
2,275,089
 
2,528,890
 
2,383,830
 
2,541,843    
Net income per share, diluted
 $         0.32
 
$            0.18
 
 $          0.83
 
$         0.46    
Average common shares outstanding, diluted
2,337,908
 
2,549,027
 
2,431,525
 
2,569,982    
               
Performance ratios:
             
Return on average assets (annualized)
1.02    
%
 0.65  
%
0.93   
0.56%    
Return on average equity (annualized)
6.07
 
3.68
 
5.38
 
3.18    
Interest rate spread
4.18
 
4.04
 
4.13
 
4.01    
Net interest margin
4.39
 
4.30
 
4.34
 
4.27    

 
 

 


 
AS OF
 
AS OF
 
SEPTEMBER 30, 2012
 
DECEMBER 31, 2011
FINANCIAL CONDITION DATA:
     
Total assets
 $                    292,823  
 
 $                     283,716   
Gross loans
219,161  
 
                        208,865   
Allowance for loan losses
4,487  
 
                           4,166   
Deposits
                       235,381  
 
                        224,112   
Securities sold under agreements to repurchase
                              1,721  
 
                        2,265   
Total liabilities
                        244,250  
 
                        233,166   
Stockholders' equity
                          48,573  
 
                          50,550   
       
Non-performing assets:
     
     Nonaccrual loans
 $                        4,424  
 
 $                        3,254   
     Accruing loans past due 90 days
11  
 
                             45   
     Foreclosed real estate
686  
    
                          526   
     Other non-performing assets
7  
 
                                11   
       
Troubled debt restructurings(1)
 $                        5,699  
 
 $                         6,808   
       
Asset quality ratios:
     
Allowance for loan losses as a percent of total gross loans
2.05%  
 
  1.99%   
Allowance for loan losses as a percent
      of non-performing loans
101.17  
 
126.28   
Non-performing loans as a percent of
      total loans
2.02  
 
1.58   
 Non-performing loans as a percent of total assets
1.51  
 
1.16   
Non-performing assets and troubled debt restructurings as a percentage of total assets
3.53  
 
3.52   
       
Regulatory capital ratios (Bank only):
     
     Total capital (to risk-weighted assets)
23.00%  
 
21.96%   
     Tier 1 capital (to risk-weighted assets)
21.74  
 
20.69   
     Tier 1 capital (to adjusted total assets)
14.45  
 
14.13   
       
(1) Troubled debt restructurings include $476,000 and $670,000 in non-accrual loans at September 30, 2012 and December 31, 2011, respectively, which are also included in non-accrual loans at both dates listed above.

 
CONTACT:          Athens Bancshares Corporation
Jeffrey L. Cunningham
President and CEO
423-745-1111