YORK, Pa., Jan. 20, 2017 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income available to common shareholders of $518,000, or 24 cents per share, for the 4(th) quarter ended December 31, 2016, compared to $494,000, or 23 cents per share, for the 4(th) quarter ended December 31, 2015. This represents a $24,000, or 5%, increase over the 4(th) quarter of 2015. Net income available to common shareholders for the year ended December 31, 2016 was $2,900,000, or $1.33 per share. This represents an increase of $917,000, or 46%, over last year. Return on assets of 0.77% and return on equity of 9.44% also showed significant growth year to year. Book value per common share climbed to $14.86 at December 31, 2016.
"We are pleased to report 4(th) quarter and annual earnings," stated Michael E. Kochenour, Chairman. "An uptick in long-term interest rates and normal seasonality slowed our gains on sale of mortgages in the 4(th) quarter. This was partially offset by our second and final $150,000 installment for switching merchant processing vendors. Despite the mortgage slowdown in the 4(th) quarter, the Bank achieved record annual earnings. Collectively, commercial and consumer-related loans grew $46,420,000, or 18%, during 2016, boosting net interest income $1,563,000, or 15%. We achieved record gains on mortgage sales of $4,249,000, an increase of $926,000, or 28%. Deposits grew $27,825,000, or 9%. In addition, our net interest margin remained stable, and net charge offs declined along with non-performing assets. In recognition of the significant loan growth, we recorded an annual provision for loan losses of $994,000, which enhances the allowance to 1.02% of loans. We remain well capitalized, and we look forward to 2017."
FINANCIAL HIGHLIGHTS (unaudited):
(Dollars in thousands, except per share data)
Selected Financial Data Dec 31, Dec 31,
2016 2015
--- ---- ----
Investment securities $50,185 $66,856
Loans, net of unearned income 305,277 258,857
Total assets 396,716 359,642
Deposits 322,317 294,492
Borrowings 35,710 29,750
Subordinated debt 5,000 5,000
Shareholders' equity 32,223 29,506
Book value per common share $14.86 $13.53
Allowance/loans 1.02% 0.92%
Non-performing assets/total assets 0.81% 0.90%
Tier 1 capital/average assets 8.21% 8.55%
Three months ended Dec 31, Twelve months ended Dec 31,
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Selected Operations Data 2016 2015 2016 2015
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Interest income $3,798 $3,231 $14,472 $12,741
Interest expense (688) (666) (2,715) (2,547)
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Net interest income 3,110 2,565 11,757 10,194
Provision for loan losses (300) (135) (994) (405)
Investment securities gains - 2 72 2
Gains on sale of mortgages 688 863 4,249 3,323
Other income 483 262 1,602 1,031
Other expense (3,261) (2,886) (12,558) (11,358)
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Income before income taxes 720 671 4,128 2,787
Income taxes (202) (177) (1,228) (791)
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Net income 518 494 2,900 1,996
Preferred stock dividends - - - (13)
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Net income available to common shareholders $518 $494 $2,900 $1,983
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Earnings per common share (basic and diluted) $0.24 $0.23 $1.33 $0.91
Return on average assets 0.52% 0.57% 0.77% 0.60%
Return on average equity 6.30% 6.89% 9.44% 6.88%
Net interest margin 3.32% 3.16% 3.31% 3.30%
Net charge-offs(recoveries)/average loans -0.04% -0.01% 0.10% 0.24%
Safe Harbor Statement:
Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Because of these risks and uncertainties, our actual future results may be materially different from the results indicated by these forward looking statements. In addition, our past results of operations do not necessarily indicate our future results. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE York Traditions Bank
