Net Interest Margin is 5.21% for the year
SEATTLE--(BUSINESS WIRE)--
Sound Financial Inc. (the “Company”) (OTCBB:SNFL), holding company for
Sound Community Bank, today reported net income for the year ended
December 31, 2011 of $1.8 million, or $0.62 per diluted share, as
compared to net income of $1.3 million, or $0.46 per diluted share, for
the year ended December 31, 2010. Return on Average Assets was 0.54% for
the year ended December 31, 2011 compared to 0.43% for the year ended
December 31, 2010.
This is the eighth consecutive quarter of positive earnings for the
Company.
Highlights as of and for the year ended December 31, 2011 include:
- Net Interest Margin improved 39 basis points to 5.21% for the year
ended December 31, 2011 from 4.82% for the year ended December 31, 2010
- Efficiency Ratio decreased to 62.91% for the year ended December 31,
2011 compared to 65.56% for the year ended December 31, 2010
- Deposit Cost of Funds was 0.87% for the year ended December 31, 2011
compared to 1.30% for the year ended December 31, 2010
- Provision for Loan losses decreased to $4.2 million for the year ended
December 31, 2011 from $4.7 million for the year ended December 31, 2010
- Non-Performing Loans to Gross Loans was 2.86% as of December 31, 2011
compared to 2.44% as of December 31, 2010
- Non-Performing Assets to Total Assets was 3.35% as of December 31,
2011 compared to 2.96% as of December 31, 2010
Laurie Stewart, President and CEO said, “We are pleased with our
performance during 2011 and the continued improvement in earnings this
year. While the economic environment is still challenging, we continue
to work with our borrowers to achieve mutually beneficial outcomes.”
As previously announced, on January 27, 2012 the Board of directors
announced a Plan of Conversion and Reorganization pursuant to which the
Bank will reorganize from the two-tier mutual holding company structure
to the stock holding company structure and will undertake a
“second-step” stock offering of shares of common stock of a new state
chartered corporation formed in connection with the conversion.
The conversion and reorganization will be subject to approval of the
Bank’s depositors, the Company’s shareholders (including the approval of
a majority of the shares held by persons other than Sound Community MHC,
which owns approximately 55.0% of the outstanding common stock of the
Company (the MHC) and the Board of Governors of the Federal Reserve
System. The new holding company will offer and sell shares of common
stock in an amount representing the percentage ownership interest
currently held by the MHC, to be based on an appraisal of the Bank, as
converted, which will be performed by an independent appraiser.
In addition, existing shareholders of the Company, other than the MHC,
will receive shares of common stock of the new holding company pursuant
to an exchange ratio designed to preserve their aggregate percentage
ownership interest. The exchange ratio will be determined based upon the
appraisal and the results of the offering.
Information, including the details of the offering and business and
financial information about the Company and the Bank will be provided in
proxy materials and a prospectus when the offering commences, which is
expected to be during the second quarter of 2012.
|
| | As of |
| | | 12/31/2011 |
| 12/31/2010 |
Selected Consolidated Financial Condition
Data: | | | (In thousands) |
|
Total assets
|
|
$
|
340,004
| | |
$
|
334,639
| |
|
Total loans, net
| |
296,041
| | | |
294,810
| |
|
Loans held for sale
| |
1,807
| | | |
902
| |
|
Available-for-sale securities, at fair value
| |
2,992
| | | |
4,541
| |
| Federal Home Loan Bank stock, at cost
| |
2,444
| | | |
2,444
| |
|
Bank-owned life insurance, net
| |
6,981
| | | |
6,729
| |
|
Other real estate owned and repossessed assets
| |
2,821
| | | |
2,625
| |
|
Total deposits
| |
299,997
| | | |
278,494
| |
|
Borrowings
| |
8,506
| | | |
24,849
| |
|
Total stockholders’ equity
| |
28,976
| | | |
26,902
| |
| | | | | |
|
| Asset quality ratios: | | | | | | |
Non-performing assets to total assets
| | |
3.35
|
%
| | |
2.96
|
%
|
|
Non-performing loans to gross loans
| | |
2.86
|
%
| | |
2.44
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
47.25
|
%
| | |
60.82
|
%
|
|
Allowance for loan losses to gross loans
| | |
1.35
|
%
| | |
1.48
|
%
|
|
Net charge-offs to average loans outstanding
| | |
1.56
|
%
| | |
1.21
|
%
|
| | | | | |
|
| Consolidated capital ratios:
| | | | | | |
| | | | | |
|
|
Equity to total assets at end of period
| | |
8.52
|
%
| | |
8.03
|
%
|
|
Average equity to average assets
| | |
8.43
|
%
| | |
7.38
|
%
|
|
|
Year ended |
| | 12/31/2011 |
| 12/31/2010 |
Selected Consolidated Operating Data: | | (in thousands) |
Total interest income
| |
$
|
18,519
| | |
$
|
19,314
| |
|
Total interest expense
| |
|
2,781
|
| |
|
4,288
|
|
|
Net interest income
| | |
15,738
| | | |
15,026
| |
|
Provision for loan losses
| |
|
4,200
|
| |
|
4,650
|
|
|
Net interest income after provision for loan losses
| | |
11,538
| | | |
10,376
| |
|
Fees and service charges
| | |
2,051
| | | |
2,182
| |
|
Gain on sale of loans
| | |
501
| | | |
785
| |
|
(Loss)gain on sale of securities
| | |
(33
|
)
| | |
64
| |
|
Other than temporary impairment on securities
| | |
(96
|
)
| | |
(99
|
)
|
|
Fair value adjustment on mortgage servicing rights
| | |
(422
|
)
| | |
103
| |
|
Other non-interest income
| |
|
591
|
| |
|
890
|
|
|
Total non-interest income
| | |
2,592
| | | |
3,925
| |
|
Total non-interest expense
| |
|
11,531
|
| |
|
12,425
|
|
|
Income before provision for income taxes
| | |
2,599
| | | |
1,876
| |
|
Provision for income taxes
| |
|
784
|
| |
|
545
|
|
|
Net income
| |
$
|
1,815
|
| |
$
|
1,331
|
|
| |
|
Selected Financial Ratios and Other Data: | | |
| Performance ratios:
| | | | |
|
Return on average assets (ratio of net income to average total
assets)
| | |
0.54
|
%
| | |
0.43
|
%
|
|
Return on equity (ratio of net income to average equity)
| | |
6.44
|
%
| | |
5.87
|
%
|
|
Net interest margin
| | |
5.21
|
%
| | |
4.82
|
%
|
|
Non-interest income to operating revenue
| | |
14.14
|
%
| | |
18.74
|
%
|
|
Operating expense to average total assets
| | |
3.45
|
%
| | |
3.52
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | |
99.83
|
%
| | |
110.76
|
%
|
|
Efficiency ratio
| | |
62.91
|
%
| | |
65.56
|
%
|
This release is neither an offer to sell nor a solicitation of an offer
to buy common stock. The offer is made only by the prospectus when
accompanied by a stock order form. The shares of common stock of the new
holding company are not savings accounts or savings deposits, may lose
value, and are not insured by the Federal Deposit Insurance Corporation
or any other government agency.
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
“Safe Harbor” statement under the Private Securities Litigation
Reform Act of 1995: This press release 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 for 2012 and beyond 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.
There are a number of important factors that could cause future
results to differ materially from historical performance and these
forward-looking statements. Factors which could cause actual results to
differ materially, include, but are not limited to, delays in
consummation of the Plan of Conversion and Reorganization, difficulties
in selling the conversion stock or in selling the conversion stock
within the expected time frame, 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.