We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Sturgis Bancorp Inc (QX) | USOTC:STBI | OTCMarkets | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 18.0501 | 18.05 | 18.40 | 0.00 | 13:21:15 |
From Dec 2019 to Dec 2024
Sturgis Bancorp is the holding company for Sturgis Bank & Trust Company (Bank), and its subsidiaries Oakleaf Financial Services, Inc. and Oak Mortgage, LLC. Sturgis Bancorp provides a full array of trust, commercial and consumer banking services from 11 banking centers in Sturgis, Bronson, Centreville, Climax, Colon, South Haven, Three Rivers and White Pigeon, Mich. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Oak Mortgage offers residential mortgages in all markets of the Bank.
Key Highlights:
Nonaccrual loans peaked in June 2011 at $14.5 million, up $9.3 million from December 31, 2010. Since June 2011, nonaccrual loans were reduced to $10.5 million at December 31, 2011 and further to $6.7 million at September 30, 2012.
President and CEO Eric L. Eishen stated: "I am pleased to provide another positive quarterly earnings announcement. Interest income continues to be suppressed by sustained low interest rates and poor loan demand. However, fewer credit quality issues resulted in a significant reduction in the provision for loan losses in 2012. The Bank continues to maintain a high reserve in our Allowance for Loan and Lease Losses. It was only modestly reduced in the first nine months of 2012. As the economy improves, the Bank expects continued improvement in credit quality, and therefore earnings. Management continues to focus on our core business. Earnings in 2012 have been enhanced by strong mortgage refinance activity, as rates continue to remain at historic lows."
President Eishen added, "Consumer and Commercial loan demand continues to be weak. This is being experienced by the industry as a whole. This low rate scenario is positive for the mortgage origination segment of the Bank's business, but creates a very challenging environment for the banking industry. I am concerned that the ever increasing regulations and much tighter credit standards imposed by actions of Congress, Freddie Mac, Fannie Mae and the new Consumer Financial Protection Bureau, primarily related to mortgage finance, pose significant risk to this business line and the economic recovery as a whole. I am pleased we have increased our interest margin on loans originated for portfolio. But I expect this is going to be exceedingly more difficult in the coming months if rates continue at the current levels. The Bank is not going to change its risk profile in an attempt to maintain the interest margin, and as a result we may see pressure on this margin in late 2012 and 2013, due to our adherence to rational pricing and loan quality."
President Eishen concluded, "Bank management continues to focus on building our franchise value and capital, in preparation for the proposed capital rules under consideration. We continue to be focused on controlling expenses as evidenced in our performance. There continues to be much uncertainty on the economy, future regulations and capital standards for the banking industry."
Three months ended September 30, 2012 vs. three months ended September 30, 2011 - Net income for the three months ended September 30, 2012 was $517,000, or $0.25 per share, compared to net income of $792,000, or $0.39 per share, for the three months ended September 30, 2011. Most of the decrease is attributed to gains on sales of securities recorded in the three months ended September 30, 2011. The tax equivalent net interest margin increased to 3.54% in 2012 from 3.33% in 2011. The increase in tax equivalent net interest margin is primarily due to the Bank's sales of low-margin investment securities, mostly in the third quarter of 2011.
Noninterest income was $1.2 million in the third quarter of 2012, compared to $1.6 million in the third quarter of 2011. Most of the decrease is attributable to $536,000 (pre-tax) of gains on sales of securities recorded in the third quarter of 2011. Investment brokerage commission income increased to $412,000 in the third quarter of 2012, compared to $308,000 in the third quarter of 2011. Mortgage banking activities also increased to $286,000 from $235,000, as loan sale volume continued relatively strong.
Noninterest expense decreased $266,000 in 2012, compared to 2011, primarily due to $195,000 of prepayment penalties on repurchase agreements recorded in 2011. Salaries and employee benefits decreased $167,000, or 9.7%, to $1.6 million.
The Company recorded $63,000 provision for loan losses of in the three months ended September 30, 2012, compared to a negative provision of $156,000 in the same quarter of 2011. Net charge-offs were $43,000 in 2012, compared to $118,000 in 2011. The net activity in the ALLL decreased the total allowance to 2.12% of gross loans at September 30, 2012, compared to 2.28% at December 31, 2011.
Nine months ended September 30, 2012 vs. nine months ended September 30, 2011 - Net income for the nine months ended September 30, 2012 was $1.5 million, or $0.75 per share, compared to a net loss of $59,000, or ($0.03) per share, for the nine months ended September 30, 2011. The tax equivalent net interest margin increased to 3.53% in 2012 from 3.14% in 2011. The increase in tax equivalent net interest margin is primarily due to the Bank's sales of low-margin investment securities, mostly in the third quarter of 2011.
Noninterest income was $3.4 million in the first nine months of 2012, compared to $3.6 million in the first nine months of 2011, primarily due to $536,000 (pre-tax) gains on sales of securities recorded in 2011. Mortgage banking activities increased $237,000 to $850,000, as loan sale volume continued relatively strong. Investment brokerage commission income also increased by $220,000 to $1.1 million.
Noninterest expense decreased $1.0 million in 2012, compared to 2011. Salaries and employee benefits decreased $451,000, or 8.8%, to $4.7 million. Real estate owned expense decreased by $340,000, to $538,000, as the Company's write downs of the carrying value of foreclosed assets reduced. The Company also recorded $195,000 in 2011 for prepayment penalties on repurchase agreements.
The Company recorded a $54,000 provision for loan losses in the first nine months of 2012, compared to $1.7 million in the first nine months of 2011. Net charge-offs were $454,000 in 2012, compared to $2.0 million in 2011.
Total assets increased to $317.4 million at September 30, 2012 from $314.3 million at December 31, 2011, primarily in interest-earning deposits. Loans also increased $1.0 million from December 31, 2011, primarily in residential mortgage loans.
Noninterest-bearing deposits increased to $42.7 million at September 30, 2012 from $33.6 million at December 31, 2011. Interest-bearing deposits decreased to $193.5 million at September 30, 2012 from $201.0 million at December 31, 2011. The decreases in deposits included $3.4 million decrease in brokered CDs. The number of checking accounts continues to increase, as the Bank continues to expand its customer base. Most consumer checking account customers prefer the Bank's "Free Checking" (noninterest-bearing) account, which charges no monthly account fee.
Total equity was $26.5 million at September 30, 2012, compared to $24.9 million at December 31, 2011. Book value per share increased to $13.04 at September 30, 2012 from $12.34 at December 31, 2011.
During the worst part of the national financial crisis, the Company began including expanded ratios for the Bank's asset quality in quarterly press releases. Because the Company believes these ratios remain meaningful and relevant to investors, the Company has elected to continue providing them.
Hot Features
Premium
Percentage of Gross Percentage of Total
Loans Assets
Sept. 30 Dec. 31 Sept. 30 Dec. 31
Past due and still accruing: 2012 2011 2012 2011
--------- --------- --------- ---------
Past due one month 0.76% 0.53% 0.62% 0.43%
Past due two months 0.57% 0.18% 0.46% 0.15%
Past due three or more months 0.07% 0.14% 0.06% 0.12%
Nonaccrual loans 2.57% 4.07% 2.10% 3.34%
Real Estate Owned 0.59% 0.81% 0.48% 0.66%
This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates or expectations of Bancorp, primarily with respect to future events and the future financial performance of the Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statement. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending and future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes of the world, national and local economies. Bancorp undertakes no obligation to update, amend or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited. For additional information, visit our website at www.sturgisbank.com.
CONSOLIDATED BALANCE SHEETS
September 30, 2012 and December 31, 2011
(Amounts in thousands, except share and per share data)
Sept. 30, 2012 Dec. 31, 2011
-------------- --------------
ASSETS
Cash and due from banks $ 7,125 $ 7,297
Other short-term investments 9,271 15,443
-------------- --------------
Total cash and cash equivalents 16,396 22,740
Interest-earning deposits in banks 12,199 4,760
Securities - Available for sale 1,244 265
Federal Home Loan Bank stock, at cost 4,064 4,064
Loans held for sale 1,819 986
Loans, net of allowance of $5,474 and
$5,875 253,000 252,001
Premises and equipment, net 7,660 7,855
Goodwill 5,109 5,109
Originated mortgage servicing rights 1,289 1,279
Real estate owned 1,531 2,082
Bank-owned life insurance 9,187 8,976
Accrued interest receivable 1,162 1,191
Prepaid FDIC assessment 514 814
Other assets 2,231 2,136
-------------- --------------
Total assets $ 317,405 $ 314,258
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing $ 42,619 $ 33,642
Interest-bearing 193,510 200,957
-------------- --------------
Total deposits 236,129 234,599
Federal Home Loan Bank advances and other
borrowings 52,500 52,575
Accrued interest payable 270 344
Other liabilities 1,968 1,830
-------------- --------------
Total liabilities 290,867 289,348
Stockholders' equity
Preferred stock - $1 par value: authorized
- 1,000,000 shares issued and outstanding
- 0 shares
Common stock - $1 par value: authorized -
9,000,000 shares issued and outstanding
2,034,395 shares at Sept. 30, 2012 and
2,019,235 at December 31, 2011 2,034 2,019
Additional paid-in capital 6,955 6,881
Retained earnings 17,609 16,087
Accumulated other comprehensive income
(loss) (60) (77)
-------------- --------------
Total stockholders' equity 26,538 24,910
-------------- --------------
Total liabilities and stockholders'
equity $ 317,405 $ 314,258
============== ==============
CONSOLIDATED STATEMENTS OF INCOME
Three Months ended September 30, 2012 and 2011
(Amounts in thousands, except share and per share data)
Three Months ended
September 30,
2012 2011
------------- -------------
Interest income
Loans $ 3,095 $ 3,238
Investment securities:
Taxable 41 207
Tax-exempt 11 8
Dividends 41 30
------------- -------------
Total interest income 3,188 3,483
Interest expense
Deposits 324 545
Borrowed funds 423 433
------------- -------------
Total interest expense 747 978
------------- -------------
Net interest income 2,441 2,505
Provision for loan losses 63 (156)
------------- -------------
Net interest income after provision for loan
losses 2,378 2,661
Noninterest income:
Service charges and other fees 323 351
Investment brokerage commission income 412 308
Mortgage banking activities 286 235
Trust fee income 69 69
Increase in value of bank owned life
insurance 71 71
Gain on securities - 536
Other income 13 -
------------- -------------
Total noninterest income 1,174 1,570
Noninterest expenses:
Salaries and employee benefits 1,554 1,721
Occupancy and equipment 361 355
Data processing 176 170
Professional services 105 111
Real estate owned expense 191 183
Advertising 25 32
FDIC premiums 103 51
Prepayment penalties on repurchase
agreements - 195
Other 347 310
------------- -------------
Total noninterest expenses 2,862 3,128
------------- -------------
Income (loss) before income tax expense
(benefit) 690 1,103
Provision for income tax 173 311
------------- -------------
Net income (loss) $ 517 $ 792
============= =============
Earnings per share $ 0.25 $ 0.39
Dividends declared per share $ 0.00 $ 0. 01
Key Ratios:
Return on average equity 7.87% 12.91%
Return on average assets 0.66% 0.91%
Net interest margin (tax equivalent) 3.54% 3.33%
CONSOLIDATED STATEMENTS OF INCOME
Nine Months ended September 30, 2012 and 2011
(Amounts in thousands, except share and per share data)
Nine Months ended Sept. 30,
2012 2011
------------- ------------
Interest income
Loans $ 9,313 $ 9,531
Investment securities:
Taxable 89 871
Tax-exempt 27 38
Dividends 111 90
------------- ------------
Total interest income 9,540 10,530
Interest expense
Deposits 1,032 1,844
Borrowed funds 1,273 1,337
------------- ------------
Total interest expense 2,305 3,181
------------- ------------
Net interest income 7,235 7,349
Provision for loan losses 54 1,699
------------- ------------
Net interest income after provision for loan
losses 7,181 5,650
Noninterest income:
Service charges and other fees 1,016 1,049
Investment brokerage commission income 1,127 907
Mortgage banking activities 850 613
Trust fee income 228 255
Increase in value of bank owned life
insurance 211 209
Gain on securities - 536
Other income (14) 20
------------- ------------
Total noninterest income 3,418 3,589
Noninterest expenses:
Salaries and employee benefits 4,692 5,143
Occupancy and equipment 1,075 1,094
Data processing 532 514
Professional services 293 361
Real estate owned expense 538 878
Advertising 76 97
FDIC premiums 314 285
Prepayment penalties on repurchase
agreements - 195
Other 1,056 1,057
------------- ------------
Total noninterest expenses 8,576 9,624
------------- ------------
Income (loss) before income tax expense
(benefit) 2,023 (385)
Provision for income tax 503 (326)
------------- ------------
Net income (loss) $ 1,520 $ (59)
============= ============
Earnings per share $ 0.75 $ (0.03)
Dividends declared per share $ 0.00 $ 0. 03
Key Ratios:
Return on average equity 7.98% (0.25%)
Return on average assets 0.64% (0.02%)
Net interest margin (tax equivalent) 3.53% 3.14%
Contacts: Sturgis Bancorp Eric Eishen President & CEO Brian P. Hoggatt CFO P: 269 651-9345
1 Year Sturgis Bancorp (QX) Chart |
1 Month Sturgis Bancorp (QX) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
