SEATTLE--(BUSINESS WIRE)--
Sound Financial Inc. (OTCBB:SNFL), holding company for Sound Community
Bank, today reported net income for the quarter ended March 31, 2011 of
$496,000, or $0.17 per diluted share, as compared to net income of
$576,000, or $0.20 per diluted share, for the quarter ended December 31,
2010 and net income of $57,000 or $0.02 per diluted share for the
quarter ended March 31, 2010.
This is the fifth consecutive quarter of positive earnings for the
company.
Highlights for the Quarter ended March 31, 2011 include:
Provision for loan losses decreased $600,000 to $825,000 for the quarter
ended March 31, 2011 compared to $1.4 million for the quarter ended
March 31, 2010.
Nonperforming loans decreased $7.5 million, or 55.9% to $5.9 million
from $13.4 million at March 31, 2010. Nonperforming loans, as a
percentage of loans, decreased 251 basis points from 4.50% at March 31,
2010 to 1.99% at March 31, 2011.
Nonperforming assets decreased $6.3 million, or 41.0% to $9.0 million at
March 31, 2011 from $15.3 million at March 31, 2010.
Net interest margin increased 105 basis points to 5.18% for the quarter
ended March 31, 2011 compared to 4.13% for the quarter ended March 31,
2010.
Total equity increased $2.4 million, or 9.5% to $27.7 million at March
31, 2011 from $25.3 million at March 31, 2010. The bank remains “Well
Capitalized” with a Tier 1 capital ratio of 8.25% and total risk-based
capital ratio of 12.12% at March 31, 2011.
Laurie Stewart, President and CEO said, “We have worked diligently to
reduce nonperforming assets and increase earnings and capital levels. We
are pleased with our progress over the past five quarters but we remain
focused on continued improvement as the general economic environment
slowly improves. Our goal was to achieve an 8% Tier 1 capital ratio and
a 12% total risk-based capital ratio by the end of the first quarter of
2011 and we exceeded both of these benchmarks.”
|
|
As of
|
| |
3/31/2011
|
|
|
|
12/31/2010
|
|
|
3/31/2010
|
Selected Consolidated Financial Condition
Data: | |
(In thousands)
|
|
Total assets
| |
$
|
326,997
| | | |
$
|
334,639
| | |
$
|
337,801
|
|
Total loans, net
| | |
292,919
| | | | |
294,810
| | | |
293,323
|
|
Loans held for sale
| | |
79
| | | | |
902
| | | |
2,333
|
|
Available-for-sale securities, at fair value
| | |
3,642
| | | | |
4,541
| | | |
12,383
|
|
Federal Home Loan Bank stock, at cost
| | |
2,444
| | | | |
2,444
| | | |
2,444
|
|
Bank-owned life insurance, net
| | |
6,791
| | | | |
6,729
| | | |
6,529
|
|
Other real estate owned and repossessed assets
| | |
3,113
| | | | |
2,625
| | | |
1,904
|
|
Total deposits
| | |
273,733
| | | | |
278,494
| | | |
287,931
|
|
Borrowings
| | |
21,988
| | | | |
24,849
| | | |
20,000
|
|
Total stockholders’ equity
| | |
27,674
| | | | |
26,902
| | | |
25,268
|
| | | | | | | | | | |
|
| |
Quarter Ended
|
| |
3/31/2011
|
| | |
12/31/2010
| | |
3/31/2010
|
Selected Consolidated Operating Data: | |
(in thousands)
|
|
Total interest income
| |
$
|
4,648
| | | |
$
|
4,690
| | |
$
|
4,770
| | |
|
Total interest expense
| | |
752
|
| | | |
924
| | | |
1,168
|
| |
|
Net interest income
| | |
3,896
| | | | |
3,766
| | | |
3,602
| | |
|
Provision for loan losses
| | |
825
|
| | | |
1,500
| | | |
1,425
|
| |
|
Net interest income after provision for loan losses
| | |
3,071
| | | | |
2,266
| | | |
2,177
| | |
|
Service charges and fee income
| | |
522
| | | | |
544
| | | |
529
| | |
|
Fair value adjustment on mortgage servicing rights
| | |
49
| | | | |
300
| | | |
-
| | |
|
Gain (loss) on sale of securities
| | |
(34
|
)
| | | |
-
| | | |
75
| | |
|
Other than temporary impairment on securities
| | |
(39
|
)
| | | |
-
| | | |
-
| | |
|
Gain on sale of loans
| | |
34
| | | | |
320
| | | |
64
| | |
|
Other noninterest income
| | |
147
|
| | | |
309
| | | |
516
|
| |
|
Total noninterest income
| | |
679
| | | | |
1,473
| | | |
1,184
| | |
|
Total noninterest expense
| | |
3,032
|
| | | |
2,890
| | | |
3,310
|
| |
|
Income before provision (benefit) for income taxes
| | |
718
| | | | |
849
| | | |
50
| | |
|
Provision (benefit) for income taxes
| | |
222
|
| | | |
273
| | | |
(7
|
)
| |
|
Net income
| |
$
|
496
|
| | |
$
|
576
| | |
$
|
57
|
| |
| | | | | | | | | | | |
|
Selected Financial Ratios and Other Data: | | | | | | | | | | | | |
| Performance ratios:
| | | | | | | | | | | | |
|
Return on assets
| | |
0.60
| |
%
| | |
0.69
|
%
| | |
0.07
| |
%
|
|
Return on equity
| | |
7.28
| |
%
| | |
8.65
|
%
| | |
0.90
| |
%
|
|
Net interest margin
| | |
5.18
| |
%
| | |
4.93
|
%
| | |
4.13
| |
%
|
|
Noninterest income to operating revenue
| | |
14.84
| |
%
| | |
28.12
|
%
| | |
24.73
| |
%
|
|
Noninterest expense to average total assets
| | |
3.68
| |
%
| | |
3.47
|
%
| | |
3.95
| |
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | |
101.16
| |
%
| | |
100.71
|
%
| | |
114.06
| |
%
|
|
Efficiency ratio
| | |
66.27
| |
%
| | |
55.17
|
%
| | |
69.18
| |
%
|
| | | | | | | | | | | |
|
Asset quality ratios:
| | | | | | | | | | | | |
|
Nonperforming assets to total assets
| | |
2.76
| |
%
| | |
2.96
|
%
| | |
4.53
| |
%
|
|
Nonperforming loans to gross loans
| | |
1.99
| |
%
| | |
2.44
|
%
| | |
4.50
| |
%
|
|
Allowance for loan losses to nonperforming loans
| | |
74.71
| |
%
| | |
60.82
|
%
| | |
30.05
| |
%
|
|
Allowance for loan losses to gross loans
| | |
1.49
| |
%
| | |
1.48
|
%
| | |
1.35
| |
%
|
|
Net charge-offs to average loans outstanding
| | |
1.14
| |
%
| | |
1.31
|
%
| | |
1.04
| |
%
|
| | | | | | | | | | | |
|
| Consolidated capital ratios:
| | | | | | | | | | | | |
|
Tier 1 leverage
| | |
8.25
| |
%
| | |
7.89
|
%
| | |
7.45
| |
%
|
|
Tier 1 risk-based
| | |
10.87
| |
%
| | |
10.42
|
%
| | |
10.09
| |
%
|
|
Total risk-based
| | |
12.12
| |
%
| | |
11.67
|
%
| | |
11.34
| |
%
|
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.
Source: Sound Financial Inc.
Contact:
Sound Financial Inc.
Media:
Laurie Stewart, 206-448-0884 x-306
or
Financial:
Matt
Deines, 206-448-0884 x-305