Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STEWARDSHIP FINANCIAL CORP | form8k-16058_ssfn.htm |
EXHIBIT 99.1
| For Immediate Release | Contact: | |
| Claire M. Chadwick | ||
| EVP and Chief Financial Officer | ||
| 630 Godwin Avenue | ||
| Midland Park, NJ 07432 | ||
| P: (201) 444-7100 |
PRESS RELEASE
Stewardship Financial Corporation Announces
Improved Earnings For First Quarter of 2016
Midland Park, NJ – May 10, 2016 – Stewardship Financial Corporation (NASDAQ:SSFN), parent company of Atlantic Stewardship Bank, announced net income available to common shareholders for the three months ended March 31, 2016 of $991,000, or $0.16 per common share, as compared to $746,000, or $0.12 per common share, for the three months ended March 31, 2015.
“The Corporation continues to demonstrate an ability to produce steadily improving results”, stated Paul Van Ostenbridge, Stewardship Financial Corporation’s President and Chief Executive Officer.
Operating Results
Net interest income was $5.3 million for the first quarter of 2016 compared to $5.4 million for the comparable period a year earlier. The net interest margin for the three months ended March 31, 2016 was 3.11% compared to 3.41% for the three months ended March 31, 2015. The current year decline in net interest rate margin partially reflects the impact of the $16.6 million of Subordinated Notes issued in August 2015 and the subsequent redemption of preferred stock. While the cost of the Subordinated Notes added
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| Press Release - Midland Park NJ | |
| Stewardship Financial Corporation continued | May 10, 2016 |
$296,000 of interest expense to the current year period, such increase, on an after tax basis, is approximately offset by the dividends that would have accrued at a rate of 4.56% on the preferred stock resulting in an overall neutral effect on net income available to common shareholders. Furthermore, beginning on March 1, 2016, and for all dividend periods thereafter, the dividend rate on the preferred stock would have been increased and become fixed at 9%, ultimately making the issuance of the subordinated notes a positive impact to future net income available to common shareholders.
The Corporation reported noninterest income of $819,000 for the three months ended March 31, 2016 compared to $918,000 for the equivalent prior year period. Excluding gains from securities transactions and gains from the sale of other real estate owned, noninterest income for the current year period of $795,000 represents an $82,000 improvement when measured against a comparable figure of $713,000 for the three months ended March 31, 2015. Approximately $50,000 of the increase is reflected in fees and service charges.
Total noninterest expenses were $4.9 million for the three months ended March 31, 2016 – relatively comparable to the $5.0 million incurred in the prior year period. “We are committed to controlling expenses as we grow our balance sheet,” stated Van Ostenbridge.
Asset Quality
Results for the three months ended March 31, 2016 were positively impacted by the Corporation recording a negative provision for loan losses of $350,000 as compared to a negative provision for loan losses of $100,000 for the three months ended March 31, 2015. During the three months ended March 31, 2016, the Corporation recorded a $67,000 net recovery of previously charged off loan balances. In addition, both quantitative and qualitative factors evaluated in determining reserve levels continue to show improvement, thereby supporting a lower overall reserve level.
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| Press Release - Midland Park NJ | |
| Stewardship Financial Corporation continued | May 10, 2016 |
Balance Sheet / Financial Condition
Total assets at March 31, 2016 were $726.7 million, reflecting an increase from the $717.9 million of assets at December 31, 2015. While lower than recent quarters, the net impact of new loan originations, partially offset by normal principal amortization and payoffs, resulted in growth in the loan portfolio. To supplement the loan growth, funds were invested in securities, so as to contribute to the Corporation’s overall yield on earning assets. According to Van Ostenbridge, “The Corporation intends to utilize cash flows from the securities portfolios to help fund future loan growth.”
Total deposits were $612.4 million at March 31, 2016, reflecting net growth of $7.7 million since December 31, 2015. The Corporation continues to experience growth in both noninterest-bearing and interest-bearing deposits.
At March 31, 2016, the Corporation’s Tier 1 and total risk based capital ratios were 10.28% and 14.45%, respectively. These ratios are both significantly above the respective 4.0% and 8% minimum levels required and result in categorizing the Corporation as a “well capitalized” institution under regulatory guidelines.
About Stewardship Financial Corporation
Stewardship Financial Corporation’s subsidiary, the Atlantic Stewardship Bank, has 12 banking offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock, Ridgewood, Waldwick, Wayne (2), Westwood and Wyckoff, New Jersey. The bank is known for tithing 10% of its pre-tax profits to Christian and local charities. To date, the Bank’s tithe donations total $8.8 million.
We invite you to visit our website at www.asbnow.com for additional information.
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| Press Release - Midland Park NJ | |
| Stewardship Financial Corporation continued | May 10, 2016 |
The information disclosed in this document contains certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” and “potential.” Examples of forward looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Corporation that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include: changes in general, economic and market conditions, legislative and regulatory conditions, or the development of an interest rate environment that adversely affects the Corporation’s interest rate spread or other income anticipated from operations and investments.
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Stewardship Financial Corporation
Selected Consolidated Financial Information
(dollars in thousands, except per share amounts)
(unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
| Selected Financial Condition Data: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 13,319 | $ | 10,910 | $ | 16,025 | $ | 19,782 | $ | 21,035 | ||||||||||
| Securities available for sale | 97,637 | 93,354 | 86,994 | 90,850 | 94,553 | |||||||||||||||
| Securities held to maturity | 62,427 | 60,738 | 60,252 | 58,363 | 55,811 | |||||||||||||||
| FHLB Stock | 2,608 | 2,608 | 3,035 | 2,833 | 3,026 | |||||||||||||||
| Loans held for sale | 783 | 1,522 | 1,570 | 1,416 | 798 | |||||||||||||||
| Loans receivable: | ||||||||||||||||||||
| Loans receivable, gross | 528,011 | 526,477 | 518,168 | 507,105 | 490,087 | |||||||||||||||
| Allowance for loan losses | (8,540 | ) | (8,823 | ) | (8,805 | ) | (9,299 | ) | (9,600 | ) | ||||||||||
| Other, net | (64 | ) | (98 | ) | (93 | ) | (132 | ) | (7 | ) | ||||||||||
| Loans receivable, net | 519,407 | 517,556 | 509,270 | 497,674 | 480,480 | |||||||||||||||
| Other real estate owned, net | 1,013 | 880 | 587 | 219 | 320 | |||||||||||||||
| Bank owned life insurance | 14,212 | 14,111 | 14,008 | 13,905 | 13,804 | |||||||||||||||
| Other assets | 15,251 | 16,209 | 15,908 | 16,149 | 15,990 | |||||||||||||||
| Total assets | $ | 726,657 | $ | 717,888 | $ | 707,649 | $ | 701,191 | $ | 685,817 | ||||||||||
| Noninterest-bearing deposits | $ | 154,201 | $ | 147,828 | $ | 151,078 | $ | 153,546 | $ | 141,406 | ||||||||||
| Interest-bearing deposits | 458,225 | 456,925 | 434,790 | 432,453 | 424,916 | |||||||||||||||
| Total deposits | 612,426 | 604,753 | 585,868 | 585,999 | 566,322 | |||||||||||||||
| Other borrowings | 40,000 | 40,000 | 49,500 | 45,000 | 50,000 | |||||||||||||||
| Subordinated debentures and subordinated notes | 23,203 | 23,186 | 23,176 | 7,217 | 7,217 | |||||||||||||||
| Other liabilities | 1,836 | 2,376 | 2,087 | 2,123 | 2,166 | |||||||||||||||
| Total liabilities | 677,465 | 670,315 | 660,631 | 640,339 | 625,705 | |||||||||||||||
| Shareholders' equity | 49,192 | 47,573 | 47,018 | 60,852 | 60,112 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 726,657 | $ | 717,888 | $ | 707,649 | $ | 701,191 | $ | 685,817 | ||||||||||
| Gross loans to deposits | 86.22% | 87.06% | 88.44% | 86.54% | 86.54% | |||||||||||||||
| Equity to assets | 6.77% | 6.63% | 6.64% | 8.68% | 8.77% | |||||||||||||||
| Book value per share | $ | 8.05 | $ | 7.82 | $ | 7.72 | $ | 7.53 | $ | 7.42 | ||||||||||
| Asset Quality Data: | ||||||||||||||||||||
| Nonaccrual loans | $ | 2,304 | $ | 1,882 | $ | 2,574 | $ | 2,539 | $ | 2,798 | ||||||||||
| Loans past due 90 days or more and accruing | — | — | — | — | — | |||||||||||||||
| Total nonperforming loans | 2,304 | 1,882 | 2,574 | 2,539 | 2,798 | |||||||||||||||
| Other real estate owned | 1,013 | 880 | 587 | 219 | 320 | |||||||||||||||
| Total nonperforming assets | $ | 3,317 | $ | 2,762 | $ | 3,161 | $ | 2,758 | $ | 3,118 | ||||||||||
| Nonperforming loans to total loans | 0.44% | 0.36% | 0.50% | 0.50% | 0.57% | |||||||||||||||
| Nonperforming assets to total assets | 0.46% | 0.38% | 0.45% | 0.39% | 0.45% | |||||||||||||||
| Allowance for loan losses to nonperforming loans | 370.66% | 468.81% | 342.07% | 366.25% | 343.10% | |||||||||||||||
| Allowance for loan losses to total gross loans | 1.62% | 1.68% | 1.70% | 1.83% | 1.96% | |||||||||||||||
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Stewardship Financial Corporation
Selected Consolidated Financial Information
(dollars in thousands, except per share amounts)
(unaudited)
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2016 | 2015 | |||||||
| Selected Operating Data: | ||||||||
| Interest income | $ | 6,449 | $ | 6,194 | ||||
| Interest expense | 1,173 | 793 | ||||||
| Net interest and dividend income | 5,276 | 5,401 | ||||||
| Provision for loan losses | (350 | ) | (100 | ) | ||||
| Net interest income | ||||||||
| after provision for loan losses | 5,626 | 5,501 | ||||||
| Noninterest income: | ||||||||
| Fees and service charges | 529 | 479 | ||||||
| Bank owned life insurance | 101 | 96 | ||||||
| Gain on calls and sales of securities | 24 | 152 | ||||||
| Gain on sales of mortgage loans | 18 | 10 | ||||||
| Gain on sales of other real estate owned | — | 53 | ||||||
| Other | 147 | 128 | ||||||
| Total noninterest income | 819 | 918 | ||||||
| Noninterest expenses: | ||||||||
| Salaries and employee benefits | 2,715 | 2,708 | ||||||
| Occupancy, net | 398 | 467 | ||||||
| Equipment | 150 | 156 | ||||||
| Data processing | 472 | 453 | ||||||
| FDIC insurance premium | 106 | 113 | ||||||
| Other | 1,061 | 1,152 | ||||||
| Total noninterest expenses | 4,902 | 5,049 | ||||||
| Income before income tax expense | 1,543 | 1,370 | ||||||
| Income tax expense | 552 | 453 | ||||||
| Net income | 991 | 917 | ||||||
| Dividends on preferred stock | — | 171 | ||||||
| Net income available to common shareholders | $ | 991 | $ | 746 | ||||
| Weighted avg. no. of diluted common shares | 6,092,351 | 6,045,683 | ||||||
| Diluted earnings per common share | $ | 0.16 | $ | 0.12 | ||||
| Return on average common equity | 8.21% | 6.77% | ||||||
| Return on average assets | 0.55% | 0.54% | ||||||
| Yield on average interest-earning assets | 3.79% | 3.90% | ||||||
| Cost of average interest-bearing liabilities | 0.90% | 0.67% | ||||||
| Net interest rate spread | 2.89% | 3.23% | ||||||
| Net interest margin | 3.11% | 3.41% | ||||||
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Stewardship Financial Corporation
Selected Consolidated Financial Information
(dollars in thousands, except per share amounts)
(unaudited)
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
| Selected Operating Data: | ||||||||||||||||||||
| Interest income | $ | 6,449 | $ | 6,643 | $ | 6,412 | $ | 6,360 | $ | 6,194 | ||||||||||
| Interest expense | 1,173 | 1,198 | 993 | 842 | 793 | |||||||||||||||
| Net interest and dividend income | 5,276 | 5,445 | 5,419 | 5,518 | 5,401 | |||||||||||||||
| Provision for loan losses | (350 | ) | (275 | ) | (400 | ) | (600 | ) | (100 | ) | ||||||||||
| Net interest and dividend income | ||||||||||||||||||||
| after provision for loan losses | 5,626 | 5,720 | 5,819 | 6,118 | 5,501 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Fees and service charges | 529 | 558 | 541 | 557 | 479 | |||||||||||||||
| Bank owned life insurance | 101 | 103 | 103 | 101 | 96 | |||||||||||||||
| Gain on calls and sales of securities | 24 | 17 | — | — | 152 | |||||||||||||||
| Gain on sales of mortgage loans | 18 | 24 | 52 | 55 | 10 | |||||||||||||||
| Gain on sales of other real estate owned | — | 30 | — | — | 53 | |||||||||||||||
| Other | 147 | 123 | 142 | 169 | 128 | |||||||||||||||
| Total noninterest income | 819 | 855 | 838 | 882 | 918 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 2,715 | 2,719 | 2,785 | 2,688 | 2,708 | |||||||||||||||
| Occupancy, net | 398 | 422 | 427 | 423 | 467 | |||||||||||||||
| Equipment | 150 | 159 | 175 | 165 | 156 | |||||||||||||||
| Data processing | 472 | 467 | 468 | 459 | 453 | |||||||||||||||
| FDIC insurance premium | 106 | 106 | 87 | 117 | 113 | |||||||||||||||
| Other | 1,061 | 1,027 | 1,183 | 1,253 | 1,152 | |||||||||||||||
| Total noninterest expenses | 4,902 | 4,900 | 5,125 | 5,105 | 5,049 | |||||||||||||||
| Income before income tax expense | 1,543 | 1,675 | 1,532 | 1,895 | 1,370 | |||||||||||||||
| Income tax expense | 552 | 614 | 532 | 673 | 453 | |||||||||||||||
| Net income | 991 | 1,061 | 1,000 | 1,222 | 917 | |||||||||||||||
| Dividends on preferred stock | — | — | 114 | 171 | 171 | |||||||||||||||
| Net income available to common shareholders | $ | 991 | $ | 1,061 | $ | 886 | $ | 1,051 | $ | 746 | ||||||||||
| Weighted avg. no. of diluted common shares | 6,092,351 | 6,086,249 | 6,091,627 | 6,086,474 | 6,045,683 | |||||||||||||||
| Diluted earnings per common share | $ | 0.16 | $ | 0.17 | $ | 0.15 | $ | 0.17 | $ | 0.12 | ||||||||||
| Return on average common equity | 8.21% | 8.89% | 7.58% | 9.25% | 6.77% | |||||||||||||||
| Return on average assets | 0.55% | 0.58% | 0.56% | 0.71% | 0.54% | |||||||||||||||
| Yield on average interest-earning assets | 3.79% | 3.87% | 3.80% | 3.91% | 3.90% | |||||||||||||||
| Cost of average interest-bearing liabilities | 0.90% | 0.92% | 0.79% | 0.70% | 0.67% | |||||||||||||||
| Net interest rate spread | 2.89% | 2.95% | 3.01% | 3.21% | 3.23% | |||||||||||||||
| Net interest margin | 3.11% | 3.18% | 3.21% | 3.40% | 3.41% | |||||||||||||||
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