Sound Community Bank maintains Net Interest Margin of 5.25% year to
date
SEATTLE--(BUSINESS WIRE)--
Sound Financial Inc. (OTCBB: SNFL), holding company for Sound Community
Bank, today reported net income for the nine months ended September 30,
2011 of $1.1 million, or $0.39 per diluted share, as compared to net
income of $756,000, or $0.26 per diluted share, for the nine months
ended September 30, 2010. For the quarter ended September 30, 2011 net
income was $181,000 or $0.06 per diluted share, as compared to $454,000
and $0.16 per diluted share for the quarter ended June 30, 2011 and
$421,000 or $0.14 per diluted share for the quarter ended September 30,
2010. Return on Average Assets was 0.45% for the nine months ended
September 30, 2011 compared to 0.30% for the nine months ended September
30, 2010.
This is the seventh consecutive quarter of positive earnings for the
Company.
Highlights as of and for the nine months ended September 30, 2011
include:
- Year to date Net Interest Margin improved 46 basis points to 5.25%
from 4.79% for the nine months ended September 30, 2011
- Efficiency Ratio decreased to 63.87% compared to 69.54% for the nine
months ended September 30, 2011
- Deposit Cost of Funds is 0.89% compared to 1.35% for the nine months
ended September 30, 2011
- The Fair Value Adjustment on Mortgage Servicing Rights represented a
decrease to non-interest income of $235,000 for the nine months ended
September 30, 2011 compared to a decrease of $197,000 for the nine
months ended September 30, 2010
- Provision for Loan losses increased from $3.15 million for the nine
months ended September 30, 2010 to $3.35 million for the nine months
ended September 30, 2011
- Non-Performing Loans to Gross Loans is 2.13% as of September 30, 2011
compared to 2.79% as of September 30, 2010
- Non-Performing Assets to Total Assets is 2.84% as of September 30,
2011 compared to 3.45% as of September 30, 2010
Laurie Stewart, President and CEO said, “We continue to experience
positive earnings, but the trends in the economy are not all positive.
While core earnings, including net interest margin, efficiency and
operating expenses all have improved in 2011 compared to 2010, the mark
to market on our mortgage servicing rights, holding costs and losses on
sale of foreclosed assets along with provision for loan losses remain
higher than anticipated at this point in the cycle.”
|
|
| As of |
| | | 9/30/2011 |
|
|
| 6/30/2011 |
|
| 9/30/2010 |
|
|
Selected Consolidated Financial Condition
Data: | | |
(In thousands)
|
|
Total assets
| | |
$
|
339,623
| | | |
$
|
337,473
| | |
$
|
345,712
| | |
|
Total loans, net
| | | |
298,939
| | | | |
294,214
| | | |
304,792
| | |
|
Loans held for sale
| | | |
1,129
| | | | |
392
| | | |
1,836
| | |
|
Available-for-sale securities, at fair value
| | | |
3,138
| | | | |
3,331
| | | |
4,655
| | |
| Federal Home Loan Bank stock, at cost
| | | |
2,444
| | | | |
2,444
| | | |
2,444
| | |
|
Bank-owned life insurance
| | | |
6,918
| | | | |
6,857
| | | |
6,663
| | |
|
Other real estate owned and repossessed assets
| | | |
3,191
| | | | |
3,498
| | | |
3,313
| | |
|
Total deposits
| | | |
299,846
| | | | |
287,635
| | | |
285,777
| | |
|
Borrowings
| | | |
8,667
| | | | |
18,828
| | | |
30,210
| | |
|
Total stockholders’ equity
| | | |
28,177
| | | | |
27,977
| | | |
26,113
| | |
| | | | | | | | | | | | | |
|
| | | Quarter Ended |
| | | 9/30/2011 |
| | | 6/30/2011 | | | 9/30/2010 |
| |
Selected Consolidated Operating Data: | | | (in thousands) |
|
Total interest income
| | |
$
|
4,613
| | | |
$
|
4,701
|
| | |
$
|
4,930
| | |
|
Total interest expense
| | | |
681
|
| | | |
683
| | | | |
1,043
|
| |
|
Net interest income
| | | |
3,932
| | | | |
4,018
| | | | |
3,887
| | |
|
Provision for loan losses
| | | |
1,300
|
| | | |
1,225
| | | | |
950
|
| |
|
Net interest income after provision for loan losses
| | | |
2,632
| | | | |
2,793
| | | | |
2,937
| | |
|
Service charges and fee income
| | | |
516
| | | | |
476
| | | | |
559
| | |
|
Fair value adjustment on mortgage servicing rights
| | | |
(491
|
)
| | | |
208
| | | | |
(284
|
)
| |
|
Other than temporary impairment on securities
| | | |
(56
|
)
| | | |
-
| | | | |
(47
|
)
| |
|
Gain on sale of loans
| | | |
126
| | | | |
102
| | | | |
342
| | |
|
Other noninterest income
| | | |
171
|
| | | |
109
| | | | |
142
|
| |
|
Total noninterest income
| | | |
266
| | | | |
895
| | | | |
712
| | |
|
Total noninterest expense
| | | |
2,674
|
| | | |
3,036
| | | | |
3,050
|
| |
|
Income before provision for income taxes
| | | |
224
| | | | |
652
| | | | |
599
| | |
|
Provision for income taxes
| | | |
43
|
| | | |
198
| | | | |
178
|
| |
|
Net income
| | |
$
|
181
|
| | |
$
|
454
| | | |
$
|
421
|
| |
| | | | | | | | | | | | | |
|
| | | Quarter Ended |
| | | 9/30/2011 | | 6/30/2011 | | 9/30/2010 |
Selected Financial Ratios and Other Data: | | | (in thousands) |
| Performance ratios:
| | | | | | | | | | | | | | |
|
Return on average assets
| | | |
0.21
| |
%
| | |
0.55
| |
%
| | |
0.49
| |
%
|
|
Return on average equity
| | | |
2.53
| |
%
| | |
6.46
| |
%
| | |
6.55
| |
%
|
|
Net interest margin
| | | |
5.22
| |
%
| | |
5.33
| |
%
| | |
4.93
| |
%
|
|
Noninterest income to operating revenue
| | | |
6.34
| |
%
| | |
18.23
| |
%
| | |
15.49
| |
%
|
|
Noninterest expense to average total assets
| | | |
3.17
| |
%
| | |
3.67
| |
%
| | |
2.79
| |
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | | |
98.61
| |
%
| | |
100.61
| |
%
| | |
100.91
| |
%
|
|
Efficiency ratio
| | | |
63.70
| |
%
| | |
61.80
| |
%
| | |
66.31
| |
%
|
|
| Quarter Ended |
| | 9/30/2011 |
| 6/30/2011 |
| 9/30/2010 |
|
|
Selected Financial Ratios and Other Data: | | (in thousands) |
| Asset Quality Ratios: | |
| |
| | |
| |
| | |
| |
| |
|
Nonperforming assets to total assets
| | |
2.84
| |
%
| | |
2.65
| |
%
| | |
3.45
| |
%
| | |
|
Nonperforming loans to gross loans
| | |
2.13
| |
%
| | |
1.82
| |
%
| | |
2.79
| |
%
| | |
|
Allowance for loan losses to nonperforming loans
| | |
62.10
| |
%
| | |
80.12
| |
%
| | |
45.56
| |
%
| | |
|
Allowance for loan losses to gross loans
| | |
1.32
| |
%
| | |
1.46
| |
%
| | |
1.27
| |
%
| | |
|
Net charge-offs to average loans outstanding
| | |
2.22
| |
%
| | |
1.72
| |
%
| | |
1.32
| |
%
| | |
| | | | | | | | | | | | | | |
|
| Bank level capital ratios:
| | | | | | | | | | | | | | | |
|
Tier 1 leverage
| | |
8.18
| |
%
| | |
8.16
| |
%
| | |
7.44
| |
%
| | |
|
Tier 1 risk-based
| | |
10.98
| |
%
| | |
10.95
| |
%
| | |
10.06
| |
%
| | |
|
Total risk-based
| | |
12.23
| |
%
| | |
12.13
| |
%
| | |
11.31
| |
%
| | |
| | |
| |
| | | Nine months ended |
| | | 9/30/2011 |
|
| | | 9/30/2010 |
|
|
Selected Consolidated Operating Data: | | (in thousands) |
|
Total interest income
| | $ 13,963 | | | |
| $ 14,624 | | |
|
Total interest expense
| |
2,116
|
|
| | |
3,363
|
|
|
|
Net interest income
| |
11,847
| | | | |
11,261
| | |
|
Provision for loan losses
| |
3,350
|
|
| | |
3,150
|
|
|
|
Net interest income after provision for loan losses
| |
8,497
| | | | |
8,111
| | |
|
Fees and service charges
| |
1,514
| | | | |
1,638
| | |
|
Gain on sale of loans
| |
263
| | | | |
465
| | |
|
Gain (loss) on sale of securities
| |
(33
|
)
|
| | |
64
| | |
|
Other than temporary impairment on securities
| |
(96
|
)
|
| | |
(98
|
)
|
|
|
Fair value adjustment on mortgage servicing rights
| |
(235
|
)
|
| | |
(197
|
)
|
|
|
Other non-interest income
| |
427
|
|
| | |
289
|
|
|
|
Total non-interest income
| |
1,840
| | | | |
2,453
| | |
|
Total non-interest expense
| |
8,743
|
|
| | |
9,536
|
|
|
|
Income before provision for income taxes
| |
1,594
| | | | |
1,028
| | |
|
Provision for income taxes
| |
463
|
|
| | |
272
|
|
|
|
Net income
| | $ 1,131 |
|
|
| | $ 756 |
|
|
| | |
|
| | | Nine months ended |
| | | 9/30/2011 | | 9/30/2010 |
|
Selected Financial Ratios and Other Data: | | (in thousands) |
| Performance ratios:
| | | | |
|
Return on assets (ratio of net income to average total assets)
| |
0.45
| |
%
| | |
0.30
| |
%
|
|
Return on equity (ratio of net income to average equity)
| |
5.39
| |
%
| | |
3.95
| |
%
|
|
Net interest margin
| |
5.25
| |
%
| | |
4.79
| |
%
|
|
Non-interest income to operating revenue
| |
13.45
| |
%
| | |
17.88
| |
%
|
|
Non-interest expense to average total assets
| |
2.63
| |
%
| | |
2.80
| |
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| |
100.10
| |
%
| | |
100.97
| |
%
|
|
Efficiency ratio
| |
63.87
| |
%
| | |
69.54
| |
%
|
Sound Financial Inc. is the holding company for Sound Community Bank, a
full-service bank, providing personal and business banking services in
communities across the greater Puget Sound region. The Seattle-based
company operates five full-service banking offices in King, Pierce,
Snohomish and Clallam Counties, and is on the web at www.soundcb.com.
Forward-Looking Statements
This report contains statements that are not historical or current
fact and constitute forward-looking statements.In some cases,
you can identify these statements by words such as "may", "might",
"will", "should", "expect", "plan", "intend", "anticipate", "believe",
"estimate", "predict", "potential", or "continue", the negative of these
terms and other comparable terminology.Such forward-looking
statements, which are based on various underlying assumptions and
expectations and are subject to risks, uncertainties and other unknown
factors, may include projections of our future financial performance
based on our growth strategies and anticipated trends in our business.These statements are only predictions based on our current
expectations and projections about future events, and there are or may
be important factors that could cause our actual results to be
materially different from the historical results or from any future
results expressed or implied by such forward-looking statements.Unless
required by law, we undertake no obligation to publicly update or revise
any forward-looking statement to reflect circumstances or events after
the date of this press release.
Results of operations and business are subject to various factors
which could cause actual results to differ materially from these
estimates and most other statements that are not historical in nature.These factors include, but are not limited to, general and local
economic conditions, changes in interest rates, deposit flows, demand
for mortgage, consumer and other loans, real estate values, competition,
changes in accounting principles, policies or guidelines, changes in
legislation or regulation, and other economic, competitive,
governmental, regulatory and technological factors affecting our
operations, pricing, products and services.
Sound Financial Inc.
Media:
Laurie Stewart, 206-448-0884 x-306
or
Financial:
Matt
Deines, 206-448-0884 x-305
Source: Sound Financial Inc.