American Bancorp N J (MM) (NASDAQ:ABNJ)
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American Bancorp of New Jersey, Inc. (NASDAQ: ABNJ) ("American")
announced today earnings of $2,133,000 for the year ended September 30,
2006. By comparison, net income for the year ended September 30, 2005
was $2,043,000. Basic and diluted earnings per share for the year ended
September 30, 2006 were $0.16 and $0.16, respectively. By comparison,
for the year ended September 30, 2005, basic and diluted earnings per
share were $0.15 and $0.15, respectively after adjusting for the
exchange of shares relating to the Company’s
recent second-step conversion.
On October 5, 2005, American Savings, MHC closed its second step
conversion. Through this transaction, the Company replaced ASB Holding
Company as the holding company of American Bank of New Jersey, a
federally chartered stock savings bank which conducts business from its
main office in Bloomfield, New Jersey and one branch office in Cedar
Grove, New Jersey. Upon closing the conversion, each share of ASB
Holding Company stock was exchanged for 2.55102 shares of American
Bancorp of New Jersey, Inc. The earnings for the year ended September
30, 2005 reported by American are those of ASB Holding Company.
For the year ended September 30, 2006, loans receivable, net increased
$57.6 million or 16.9% to $398.6 million from $341.0 million at
September 30, 2005. The growth was comprised of net increases in
multi-family, commercial real estate and construction loans totaling
$30.5 million, coupled with net increases in commercial and business
loans totaling $5.3 million. Together, net growth in these loan balances
totaled $35.8 million comprising nearly two-thirds of the Company’s
net increase in loans receivable for the year. The remaining net growth
in loans included increases in 1-4 family mortgages, including equity
loans and home equity lines of credit, totaling $22.2 million.
For that same period, the balance of the Company’s
cash and cash equivalents decreased by a net of $118.6 million. This net
decrease funded the return of approximately $33.7 million in
oversubscriptions relating to the Company’s
second step conversion which closed October 5, 2005. The decrease in
cash and cash equivalents also funded net growth in investment
securities for the year of $14.9 million. The remaining net reduction in
cash served as the primary funding source for the net growth in loans
reported for the year.
Deposits decreased by $13.8 million or 4.0% to $327.1 million at
September 30, 2006 from $340.9 million at September 30, 2005. This
decrease included net outflows of $6.7 million from one municipal
account relationship of which a significant portion related to
disbursements made by the municipality to fund the completed stages of a
capital improvement project. The remaining outflows were attributable to
a loss of deposits resulting from the interest rates paid by a highly
competitive marketplace. Offsetting this outflow of deposits, in part,
was an increase of $2.3 million in short term borrowings from the
Federal Home Loan Bank. Finally, of the $115.2 million of stock
subscriptions held at September 30, 2005, $81.5 million was utilized to
purchase Company shares in the second step conversion and, as noted
earlier, $33.7 million were returned as oversubscriptions.
The continued growth in the Company’s
commercial lending activities contributed significantly to improved
yields on earning assets, which increased 29 basis points from 4.84% to
5.13%. However, these improved yields were more than offset by increases
in the cost of interest-bearing liabilities which grew by 76 basis
points from 2.56% to 3.32%. This increase in interest costs was largely
attributable to higher costs of interest-bearing deposits, which grew 87
basis points from 2.16% to 3.03%. Consequently, the Company reported a
lower net interest spread for the year ended September 30, 2006 from
that reported for the prior year ended September 30, 2005. For those
comparative periods, the Company’s net
interest spread shrank 46 basis points from 2.28% to 1.82%.
The factors resulting in the compression of the Company’s
net interest spread also impacted the Company’s
net interest margin. However, the effects of that compression were more
than offset by the impact of the additional capital raised in the Company’s
second-step conversion. As a result, the Company’s
net interest margin increased 14 basis points from 2.60% for the year
ended September 30, 2005 to 2.74% for the year ended September 30, 2006.
Overall loan growth and improvements in net interest margin contributed
significantly to a $2.5 million or 22.5% improvement in net interest
income from $11.1 million for the year ended September 30, 2005 to $13.5
million for the year ended September 30, 2006. This improvement was
offset, in part, by comparatively higher provisions for loan losses. For
those same comparative periods, the Company’s
net loan loss provision increased $384,000 from $81,000 to $465,000. The
increase in loan loss provision was primarily attributable to the
comparatively higher net growth in our commercial loan portfolio.
Noninterest income decreased $175,000 from $1,196,000 for the year ended
September 30, 2005 to $1,021,000 for the year ended September 30, 2006.
This reduction in noninterest income was primarily attributable to a
$271,000 loss on sale of an underperforming investment security during
the first quarter of fiscal 2006 compared with similar losses of $16,000
in fiscal 2005. Offsetting the net $255,000 increase in security sale
losses was comparatively higher income from cash surrender value of life
insurance of approximately $45,000 and increases to deposit service fees
and charges of $32,000.
Excluding the security sale losses, the comparative improvement in net
interest and noninterest income were largely offset by increases to
noninterest expense. Noninterest expense increased $1.7 million from
$8.9 million for the year ended September 30, 2005 to $10.7 million for
the year ended September 30, 2006. Significant components of this growth
in operating costs include comparative increases to salaries and
employee benefits of $1.0 million, increased occupancy and equipment
costs of $119,000, increases in advertising and marketing costs of
$62,000, comparatively higher legal costs of $52,000, increases in
professional and consulting costs of $257,000 and increases to other non
interest expenses of $247,000.
The comparative $1.0 million increase in salaries and employee benefits
from fiscal 2005 to fiscal 2006 includes increases of $448,000 to
employee salaries and payroll taxes. Such increases were primarily
attributable to growth in the Company’s
commercial lending staff and additions to retail deposit staff in
anticipation of the Company’s next branch
opening. Other noteworthy increases to salaries and employee benefits
resulted from the completion of Company’s
second step conversion and the subsequent implementation of the Company’s
2006 Equity Incentive Plan approved by shareholders in May, 2006. ESOP
costs increased $310,000 from $270,000 for fiscal 2005 to $580,000 for
fiscal 2006. For those same comparative periods, restricted stock plan
costs increased $405,000 from $207,000 to $612,000. Finally, the Company
began recognizing stock options expense beginning in fiscal 2006. For
the year ended September 30, 2006, the Company recorded $384,000 in
stock options expense for which no comparative expense was recorded in
the prior fiscal year. Offsetting these increases in fiscal 2006 was a
comparative $413,000 decrease in expenses relating to the Company’s
director retirement plan. Plan expenses for fiscal 2005 which totaled
$477,000 had reflected expense accrual adjustments resulting from
changes to the benefit terms of that plan. By comparison, directors
retirement plan expenses for fiscal 2006 totaled $64,000 reflecting no
such changes to plan benefit terms.
The comparative increase in occupancy and equipment costs of $119,000
for the year ended September 30, 2006 from the prior fiscal year was
attributable, in part, to the recognition of approximately $91,000 of
deposit branch acquisition costs relating to sites for which the Bank
and/or Seller were unable to fulfill the conditional terms of the sales
contract. Such expenses would have been capitalized into the depreciable
cost of the branch had they come to fruition. Notwithstanding these
challenges, the Company continues to pursue its deposit branch growth
strategy. Toward that end, the Bank has nearly completed the
construction of a full service branch located along Bloomfield Avenue in
Verona, New Jersey. The remaining increase in occupancy and equipment
costs is attributable primarily to additional property tax expense
relating to that branch. Additionally, the Company recently received the
requisite municipal approvals needed to construct a full service branch
on a site in Clifton, New Jersey.
Other increases in noninterest expense for those same comparative
periods included increases in advertising and marketing expenses of
$62,000 attributable primarily to costs associated with enhanced
corporate and lending marketing programs. Legal expenses for the year
ended September 30, 2006 were $52,000 higher than those recorded for
fiscal 2005. This comparative increase in legal expenses was
attributable, in large part, to the Company’s
annual meeting held in May, 2006 and matters addressed by shareholders
at that time.
Professional and consulting fees increased $257,000 to $531,000 for the
year ended September 30, 2006 from $274,000 for fiscal 2005. In large
part, these increases were attributable to audit and consulting costs
incurred by the Company relating to compliance with the Sarbanes Oxley
Act of 2002 and the outsourcing of other internal audit and
compliance-related services.
Finally, the Company recognized noteworthy increases in a variety of
other noninterest expenses in fiscal 2006 compared with fiscal 2005.
Other noninterest expenses increased $247,000 from $752,000 for the year
ended September 30, 2005 to $999,000 for the year ended September 30,
2006. A significant portion of this increase was directly attributable
to the Company’s conversion into a fully
public entity. Such cost increases include those associated with
corporate insurance, transfer agent services, NASDAQ membership fees and
regulatory oversight costs. Additional increases in other noninterest
expense resulted from the implementation of the Company’s
strategic growth and business diversification strategies. For example,
the Company recognized a substantial portion of the general and
administrative “start up costs”
of its new deposit branch in the fourth quarter of fiscal 2006. The
Verona branch location is scheduled to open in the first quarter of
fiscal 2007.
The following table presents selected comparative financial data for the
periods ended September 30, 2006 and September 30, 2005 and selected
comparative operating data for the fiscal years ended on those same
dates.
FINANCIAL HIGHLIGHTS
(unaudited)
At September 30,
2006
2005
Balance
% Total Assets
Balance
% Total Assets
SELECTED FINANCIAL DATA:
Assets
Cash and cash equivalents
$
7,165
1.39%
$
125,773
22.63%
Securities available-for-sale
74,523
14.49
62,337
11.21
Securities held-to-maturity
10,547
2.05
7,824
1.41
Loans held for sale
-
-
280
0.05
Loans receivable, net
398,624
77.51
341,006
61.36
Premises and equipment
6,523
1.27
4,131
0.74
Federal Home Loan Bank stock
3,356
0.65
3,119
0.56
Cash surrender value of life insurance
8,747
1.70
7,512
1.35
Accrued interest receivable
1,979
0.38
1,468
0.26
Other assets
2,855
0.56
2,410
0.43
Total Assets
$
514,319
100.00
$
555,860
100.00
Liabilities and equity
Deposits
$
327,147
63.61%
$
340,925
61.33%
Stock subscriptions received
-
-
115,201
20.72
Advances for taxes and insurance
2,466
0.48
2,443
0.44
Borrowings
56,075
10.90
53,734
9.67
Other liabilities
3,770
0.73
3,578
0.64
Amount reclassified on ESOP shares
-
-
473
0.09
Equity
124,861
24.28
39,506
7.11
Total liabilities and equity
$
514,319
100.00%
$
555,860
100.00%
Loan Data
% Total Loans
% Total Loans
1-4 family mortgage loans
$
272,318
68.32%
$
259,289
76.04%
Home equity loans
12,294
3.08
8,814
2.58
Home equity lines of credit
19,194
4.82
13,455
3.95
Multifamily mortgage loans
35,059
8.80
27,489
8.06
Nonresidential mortgage loans
38,394
9.63
31,072
9.11
Land and property acquisition loans
534
0.13
-
-
Construction loans
16,155
4.05
1,098
0.32
Commercial loans
6,078
1.52
746
0.22
Consumer loans
720
0.18
701
0.21
Allowance for loans losses
(2,122)
(0.53)
(1,658)
(0.49)
Loans receivable, net
$
398,624
100.00%
$
341,006
100.00%
Deposit Data
% Total Deposits
% Total Deposits
Noninterest-bearing deposits
23,545
7.20
25,583
7.50
Interest-bearing checking
31,429
9.61
39,264
11.52
Savings
107,008
32.71
123,270
36.16
Certificates of deposit
165,165
50.48
152,808
44.82
Deposits
327,147
100.00
340,925
100.00
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
For the year ended September 30,
2006
2005
SELECTED OPERATING DATA:
Total interest income
$
25,344
$ 20,601
Total interest expense
11,802
9,546
Net interest income
13,542
11,055
Provision for loan losses
465
81
Net interest income after provision for loan losses
13,077
10,974
Noninterest income
1,021
1,196
Noninterest expense
10,657
8,924
Income before income taxes
3,441
3,246
Income tax provision
1,308
1,203
Net income
$
2,133
$ 2,043
At or for years ended September 30,
2006
2005
SELECTED FINANCIAL DATA:
Performance Ratios:
Return on average assets
0.42%
0.46%
Return on average equity
1.68
5.30
Net interest rate spread
1.82
2.28
Net interest margin
2.74
2.60
Operating (noninterest) expense to average total assets
2.08
2.02
Efficiency Ratio
73.18
72.84
Average interest-earning assets to average interest-bearing
liabilities
138.70
114.30
Capital Ratios:
Equity to total assets at end of period
24.28
7.11
Average equity to average assets
24.72
8.74
Asset Quality Ratios:
Non-performing loans to total loans
0.52
0.34
Non-performing assets to total assets
0.41
0.21
Net charge offs to average loans outstanding
0.00
0.00
Allowance for loan losses to non-performing loans
101.64
142.62
Allowance for loan losses to total loans
0.53
0.48
PER SHARE DATA:
Earnings per share
Basic
$
0.16
$
0.15
Diluted
$
0.16
$
0.15
The foregoing material contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
concerning our financial condition, results of operations and business.
We caution that such statements are subject to a number of
uncertainties and actual results could differ materially, and,
therefore, readers should not place undue reliance on any
forward-looking statements. We do not undertake, and specifically
disclaim, any obligation to publicly release the results of any
revisions that may be made to any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or circumstances
after the date of such statements.
American Bancorp of New Jersey, Inc. (NASDAQ: ABNJ) ("American")
announced today earnings of $2,133,000 for the year ended September
30, 2006. By comparison, net income for the year ended September 30,
2005 was $2,043,000. Basic and diluted earnings per share for the year
ended September 30, 2006 were $0.16 and $0.16, respectively. By
comparison, for the year ended September 30, 2005, basic and diluted
earnings per share were $0.15 and $0.15, respectively after adjusting
for the exchange of shares relating to the Company's recent
second-step conversion.
On October 5, 2005, American Savings, MHC closed its second step
conversion. Through this transaction, the Company replaced ASB Holding
Company as the holding company of American Bank of New Jersey, a
federally chartered stock savings bank which conducts business from
its main office in Bloomfield, New Jersey and one branch office in
Cedar Grove, New Jersey. Upon closing the conversion, each share of
ASB Holding Company stock was exchanged for 2.55102 shares of American
Bancorp of New Jersey, Inc. The earnings for the year ended September
30, 2005 reported by American are those of ASB Holding Company.
For the year ended September 30, 2006, loans receivable, net
increased $57.6 million or 16.9% to $398.6 million from $341.0 million
at September 30, 2005. The growth was comprised of net increases in
multi-family, commercial real estate and construction loans totaling
$30.5 million, coupled with net increases in commercial and business
loans totaling $5.3 million. Together, net growth in these loan
balances totaled $35.8 million comprising nearly two-thirds of the
Company's net increase in loans receivable for the year. The remaining
net growth in loans included increases in 1-4 family mortgages,
including equity loans and home equity lines of credit, totaling $22.2
million.
For that same period, the balance of the Company's cash and cash
equivalents decreased by a net of $118.6 million. This net decrease
funded the return of approximately $33.7 million in oversubscriptions
relating to the Company's second step conversion which closed October
5, 2005. The decrease in cash and cash equivalents also funded net
growth in investment securities for the year of $14.9 million. The
remaining net reduction in cash served as the primary funding source
for the net growth in loans reported for the year.
Deposits decreased by $13.8 million or 4.0% to $327.1 million at
September 30, 2006 from $340.9 million at September 30, 2005. This
decrease included net outflows of $6.7 million from one municipal
account relationship of which a significant portion related to
disbursements made by the municipality to fund the completed stages of
a capital improvement project. The remaining outflows were
attributable to a loss of deposits resulting from the interest rates
paid by a highly competitive marketplace. Offsetting this outflow of
deposits, in part, was an increase of $2.3 million in short term
borrowings from the Federal Home Loan Bank. Finally, of the $115.2
million of stock subscriptions held at September 30, 2005, $81.5
million was utilized to purchase Company shares in the second step
conversion and, as noted earlier, $33.7 million were returned as
oversubscriptions.
The continued growth in the Company's commercial lending
activities contributed significantly to improved yields on earning
assets, which increased 29 basis points from 4.84% to 5.13%. However,
these improved yields were more than offset by increases in the cost
of interest-bearing liabilities which grew by 76 basis points from
2.56% to 3.32%. This increase in interest costs was largely
attributable to higher costs of interest-bearing deposits, which grew
87 basis points from 2.16% to 3.03%. Consequently, the Company
reported a lower net interest spread for the year ended September 30,
2006 from that reported for the prior year ended September 30, 2005.
For those comparative periods, the Company's net interest spread
shrank 46 basis points from 2.28% to 1.82%.
The factors resulting in the compression of the Company's net
interest spread also impacted the Company's net interest margin.
However, the effects of that compression were more than offset by the
impact of the additional capital raised in the Company's second-step
conversion. As a result, the Company's net interest margin increased
14 basis points from 2.60% for the year ended September 30, 2005 to
2.74% for the year ended September 30, 2006.
Overall loan growth and improvements in net interest margin
contributed significantly to a $2.5 million or 22.5% improvement in
net interest income from $11.1 million for the year ended September
30, 2005 to $13.5 million for the year ended September 30, 2006. This
improvement was offset, in part, by comparatively higher provisions
for loan losses. For those same comparative periods, the Company's net
loan loss provision increased $384,000 from $81,000 to $465,000. The
increase in loan loss provision was primarily attributable to the
comparatively higher net growth in our commercial loan portfolio.
Noninterest income decreased $175,000 from $1,196,000 for the year
ended September 30, 2005 to $1,021,000 for the year ended September
30, 2006. This reduction in noninterest income was primarily
attributable to a $271,000 loss on sale of an underperforming
investment security during the first quarter of fiscal 2006 compared
with similar losses of $16,000 in fiscal 2005. Offsetting the net
$255,000 increase in security sale losses was comparatively higher
income from cash surrender value of life insurance of approximately
$45,000 and increases to deposit service fees and charges of $32,000.
Excluding the security sale losses, the comparative improvement in
net interest and noninterest income were largely offset by increases
to noninterest expense. Noninterest expense increased $1.7 million
from $8.9 million for the year ended September 30, 2005 to $10.7
million for the year ended September 30, 2006. Significant components
of this growth in operating costs include comparative increases to
salaries and employee benefits of $1.0 million, increased occupancy
and equipment costs of $119,000, increases in advertising and
marketing costs of $62,000, comparatively higher legal costs of
$52,000, increases in professional and consulting costs of $257,000
and increases to other non interest expenses of $247,000.
The comparative $1.0 million increase in salaries and employee
benefits from fiscal 2005 to fiscal 2006 includes increases of
$448,000 to employee salaries and payroll taxes. Such increases were
primarily attributable to growth in the Company's commercial lending
staff and additions to retail deposit staff in anticipation of the
Company's next branch opening. Other noteworthy increases to salaries
and employee benefits resulted from the completion of Company's second
step conversion and the subsequent implementation of the Company's
2006 Equity Incentive Plan approved by shareholders in May, 2006. ESOP
costs increased $310,000 from $270,000 for fiscal 2005 to $580,000 for
fiscal 2006. For those same comparative periods, restricted stock plan
costs increased $405,000 from $207,000 to $612,000. Finally, the
Company began recognizing stock options expense beginning in fiscal
2006. For the year ended September 30, 2006, the Company recorded
$384,000 in stock options expense for which no comparative expense was
recorded in the prior fiscal year. Offsetting these increases in
fiscal 2006 was a comparative $413,000 decrease in expenses relating
to the Company's director retirement plan. Plan expenses for fiscal
2005 which totaled $477,000 had reflected expense accrual adjustments
resulting from changes to the benefit terms of that plan. By
comparison, directors retirement plan expenses for fiscal 2006 totaled
$64,000 reflecting no such changes to plan benefit terms.
The comparative increase in occupancy and equipment costs of
$119,000 for the year ended September 30, 2006 from the prior fiscal
year was attributable, in part, to the recognition of approximately
$91,000 of deposit branch acquisition costs relating to sites for
which the Bank and/or Seller were unable to fulfill the conditional
terms of the sales contract. Such expenses would have been capitalized
into the depreciable cost of the branch had they come to fruition.
Notwithstanding these challenges, the Company continues to pursue its
deposit branch growth strategy. Toward that end, the Bank has nearly
completed the construction of a full service branch located along
Bloomfield Avenue in Verona, New Jersey. The remaining increase in
occupancy and equipment costs is attributable primarily to additional
property tax expense relating to that branch. Additionally, the
Company recently received the requisite municipal approvals needed to
construct a full service branch on a site in Clifton, New Jersey.
Other increases in noninterest expense for those same comparative
periods included increases in advertising and marketing expenses of
$62,000 attributable primarily to costs associated with enhanced
corporate and lending marketing programs. Legal expenses for the year
ended September 30, 2006 were $52,000 higher than those recorded for
fiscal 2005. This comparative increase in legal expenses was
attributable, in large part, to the Company's annual meeting held in
May, 2006 and matters addressed by shareholders at that time.
Professional and consulting fees increased $257,000 to $531,000
for the year ended September 30, 2006 from $274,000 for fiscal 2005.
In large part, these increases were attributable to audit and
consulting costs incurred by the Company relating to compliance with
the Sarbanes Oxley Act of 2002 and the outsourcing of other internal
audit and compliance-related services.
Finally, the Company recognized noteworthy increases in a variety
of other noninterest expenses in fiscal 2006 compared with fiscal
2005. Other noninterest expenses increased $247,000 from $752,000 for
the year ended September 30, 2005 to $999,000 for the year ended
September 30, 2006. A significant portion of this increase was
directly attributable to the Company's conversion into a fully public
entity. Such cost increases include those associated with corporate
insurance, transfer agent services, NASDAQ membership fees and
regulatory oversight costs. Additional increases in other noninterest
expense resulted from the implementation of the Company's strategic
growth and business diversification strategies. For example, the
Company recognized a substantial portion of the general and
administrative "start up costs" of its new deposit branch in the
fourth quarter of fiscal 2006. The Verona branch location is scheduled
to open in the first quarter of fiscal 2007.
The following table presents selected comparative financial data
for the periods ended September 30, 2006 and September 30, 2005 and
selected comparative operating data for the fiscal years ended on
those same dates.
-0-
*T
FINANCIAL HIGHLIGHTS
(unaudited)
At September 30,
2006 2005
------------------- -------------------
% Total % Total
Balance Assets Balance Assets
--------- ---------
SELECTED FINANCIAL DATA:
Assets
Cash and cash equivalents $ 7,165 1.39% $125,773 22.63%
Securities available-for-sale 74,523 14.49 62,337 11.21
Securities held-to-maturity 10,547 2.05 7,824 1.41
Loans held for sale - - 280 0.05
Loans receivable, net 398,624 77.51 341,006 61.36
Premises and equipment 6,523 1.27 4,131 0.74
Federal Home Loan Bank stock 3,356 0.65 3,119 0.56
Cash surrender value of life
insurance 8,747 1.70 7,512 1.35
Accrued interest receivable 1,979 0.38 1,468 0.26
Other assets 2,855 0.56 2,410 0.43
--------- --------- --------- ---------
Total Assets $514,319 100.00 $555,860 100.00
========= ========= ========= =========
Liabilities and equity
Deposits $327,147 63.61% $340,925 61.33%
Stock subscriptions received - - 115,201 20.72
Advances for taxes and
insurance 2,466 0.48 2,443 0.44
Borrowings 56,075 10.90 53,734 9.67
Other liabilities 3,770 0.73 3,578 0.64
Amount reclassified on ESOP
shares - - 473 0.09
Equity 124,861 24.28 39,506 7.11
Total liabilities and equity $514,319 100.00% $555,860 100.00%
========= ========= ========= =========
% Total % Total
Loan Data Loans Loans
--------- ---------
1-4 family mortgage loans $272,318 68.32% $259,289 76.04%
Home equity loans 12,294 3.08 8,814 2.58
Home equity lines of credit 19,194 4.82 13,455 3.95
Multifamily mortgage loans 35,059 8.80 27,489 8.06
Nonresidential mortgage loans 38,394 9.63 31,072 9.11
Land and property acquisition
loans 534 0.13 - -
Construction loans 16,155 4.05 1,098 0.32
Commercial loans 6,078 1.52 746 0.22
Consumer loans 720 0.18 701 0.21
Allowance for loans losses (2,122) (0.53) (1,658) (0.49)
--------- --------- --------- ---------
Loans receivable, net $398,624 100.00% $341,006 100.00%
========= ========= ========= =========
% Total % Total
Deposit Data Deposits Deposits
--------- ---------
Noninterest-bearing deposits 23,545 7.20 25,583 7.50
Interest-bearing checking 31,429 9.61 39,264 11.52
Savings 107,008 32.71 123,270 36.16
Certificates of deposit 165,165 50.48 152,808 44.82
--------- --------- --------- ---------
Deposits 327,147 100.00 340,925 100.00
========= ========= ========= =========
*T
-0-
*T
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
For the year ended
September 30,
2006 2005
------------ -----------
SELECTED OPERATING DATA:
Total interest income $ 25,344 $20,601
Total interest expense 11,802 9,546
------------ -----------
Net interest income 13,542 11,055
Provision for loan losses 465 81
------------ -----------
Net interest income after provision for loan
losses 13,077 10,974
Noninterest income 1,021 1,196
Noninterest expense 10,657 8,924
------------ -----------
Income before income taxes 3,441 3,246
Income tax provision 1,308 1,203
------------ -----------
Net income $ 2,133 $2,043
============ ===========
At or for years ended
September 30,
2006 2005
------------ -----------
SELECTED FINANCIAL DATA:
Performance Ratios:
Return on average assets 0.42% 0.46%
Return on average equity 1.68 5.30
Net interest rate spread 1.82 2.28
Net interest margin 2.74 2.60
Operating (noninterest) expense to average
total assets 2.08 2.02
Efficiency Ratio 73.18 72.84
Average interest-earning assets to average
interest-bearing liabilities 138.70 114.30
Capital Ratios:
Equity to total assets at end of period 24.28 7.11
Average equity to average assets 24.72 8.74
Asset Quality Ratios:
Non-performing loans to total loans 0.52 0.34
Non-performing assets to total assets 0.41 0.21
Net charge offs to average loans outstanding 0.00 0.00
Allowance for loan losses to non-performing
loans 101.64 142.62
Allowance for loan losses to total loans 0.53 0.48
PER SHARE DATA:
Earnings per share
Basic $ 0.16 $ 0.15
Diluted $ 0.16 $ 0.15
*T
The foregoing material contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning our financial condition, results of operations and
business. We caution that such statements are subject to a number of
uncertainties and actual results could differ materially, and,
therefore, readers should not place undue reliance on any
forward-looking statements. We do not undertake, and specifically
disclaim, any obligation to publicly release the results of any
revisions that may be made to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.