Company posts earnings per share of $0.20 for the quarter
SEATTLE--(BUSINESS WIRE)--
Sound Financial, Inc. (the “Company”) (OTCBB:SNFL), holding company for
Sound Community Bank(the “Bank”), today reported net income for the
quarter ended June 30, 2012 of $593,000, or $0.20 per diluted share, as
compared to net income of $454,000, or $0.16 per diluted share, for the
quarter ended June 30, 2011. Return on Average Assets was 0.68% for the
quarter ended June 30, 2012 compared to 0.55% for the quarter ended June
30, 2011. Total assets increased to $355.1 million as of June 30, 2012
compared to $348.7 million as of March 31, 2012.
This is the tenth consecutive quarter of positive earnings for the
Company.
Highlights as of and for the quarter ended June 30, 2012 include:
-
Net Interest Margin decreased nine basis points to 5.24% for the
quarter ended June 30, 2012 from 5.33% for the quarter ended June 30,
2011
-
Efficiency Ratio increased to 58.51% for the quarter ended June 30,
2012 compared to 50.70% for the quarter ended June 30, 2011
-
Deposit Cost of Funds was 0.69% for the quarter ended June 30, 2012
compared to 0.88% for the quarter ended June 30, 2011
-
Provision for Loan losses decreased to $1.1 million for the quarter
ended June 30, 2012 from $1.2 million for the quarter ended June 30,
2011
-
Non-Performing Loans to Gross Loans was 2.20% as of June 30, 2012
compared to 1.82% as of June 30, 2011
-
Non-Performing Assets to Total Assets was 2.70% as of June 30, 2012
compared to 2.65% as of June 30, 2011
Laurie Stewart, President and CEO, said “The Bank continues to maintain
a strong Net Interest Margin in spite of the continuing low rate
environment. As a result of historically low rates, mortgage loan
originations for the quarter exceeded $20 million which led to over
$300,000 in gain on sale of loans to Fannie Mae.” Stewart also commented
on the Bank’s reduction in losses and expenses related to other real
estate owned, stating “The decrease in expenses related to foreclosed
properties indicates that housing prices appear to be stabilizing in our
markets.”
|
| As of |
| | 6/30/2012 | |
| 3/31/2012 |
|
| 6/30/2011 | |
Selected Consolidated Financial Condition
Data: | | |
|
Total assets
| |
$
|
355,072
| | | |
$
|
348,697
| | |
$
|
337,473
| | |
|
Total loans, net
| | |
301,945
| | | | |
296,393
| | | |
294,214
| | |
|
Loans held for sale
| | |
1,053
| | | | |
1,139
| | | |
392
| | |
|
Available-for-sale securities, at fair value
| | |
9,033
| | | | |
3,035
| | | |
3,331
| | |
| Federal Home Loan Bank stock, at cost
| | |
2,444
| | | | |
2,444
| | | |
2,444
| | |
|
Bank-owned life insurance
| | |
7,099
| | | | |
7,047
| | | |
6,857
| | |
|
Other real estate owned and repossessed assets
| | |
2,839
| | | | |
2,065
| | | |
3,498
| | |
|
Total deposits
| | |
313,729
| | | | |
307,776
| | | |
287,635
| | |
|
Borrowings
| | |
8,185
| | | | |
8,346
| | | |
18,828
| | |
|
Total stockholders’ equity
| | |
30,042
| | | | |
29,466
| | | |
27,977
| | |
| | | | | | | | | | | | |
|
| | Quarter Ended |
| | 6/30/2012 | | | 3/31/2012 | | | 6/30/2011 | |
Selected Consolidated Operating Data: | | |
|
Total interest income
| |
$
|
4,598
| | | |
$
|
4,563
| | | |
$
|
4,701
| |
|
Total interest expense
| | |
588
|
| | | |
601
|
| | | |
683
| |
|
Net interest income
| | |
4,010
| | | | |
3,962
| | | | |
4,018
| |
|
Provision for loan losses
| | |
1,100
|
| | | |
1,500
|
| | | |
1,225
| |
|
Net interest income after provision for loan losses
| | |
2,910
| | | | |
2,462
| | | | |
2,793
| |
|
Service charges and fee income
| | |
513
| | | | |
550
| | | | |
476
| |
|
Fair value adjustment on mortgage servicing rights
| | |
(76
|
)
| | | |
384
| | | | |
208
| |
|
Other than temporary impairment on securities
| | |
(32
|
)
| | | |
(91
|
)
| | | |
-
| |
|
Gain on sale of loans
| | |
308
| | | | |
251
| | | | |
102
| |
|
Other noninterest income
| | |
73
|
| | | |
243
|
| | | |
109
| |
|
Total noninterest income
| | |
786
| | | | |
1,337
| | | | |
895
| |
|
Total noninterest expense
| | |
2,828
|
| | | |
3,008
|
| | | |
3,036
| |
|
Income before provision for income taxes
| | |
868
| | | | |
791
| | | | |
652
| |
|
Provision for income taxes
| | |
275
|
| | | |
245
|
| | | |
198
| |
|
Net income
| |
$
|
593
|
| | |
$
|
546
|
| | |
$
|
454
| |
| | | | | | | | | | | |
|
| | Quarter Ended |
| | 6/30/2012 | | | 3/31/2012 | | | 6/30/2011 | |
Selected Financial Ratios and Other Data: | | |
| Performance ratios(1):
| | | | | | | | | | | | |
|
Return on average assets
| | |
0.68
| |
%
| | |
0.64
| |
%
| | |
0.55
|
%
|
|
Return on average equity
| | |
7.90
| |
%
| | |
7.42
| |
%
| | |
6.46
|
%
|
|
Net interest margin(2) | | |
5.24
| |
%
| | |
5.23
| |
%
| | |
5.33
|
%
|
|
Non-interest income to operating revenue(3) | | |
16.39
| |
%
| | |
25.23
| |
%
| | |
18.23
|
%
|
|
Noninterest expense to average total assets
| | |
3.23
| |
%
| | |
3.52
| |
%
| | |
3.67
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| | |
107.03
| |
%
| | |
108.51
| |
%
| | |
110.14
|
%
|
|
Efficiency ratio(4) | | |
58.51
| |
%
| | |
47.91
| |
%
| | |
50.70
|
%
|
| | | | | | | | | | | | | |
|
|
| | | | | | | | | | | | | | |
(1) Performance ratios for the three months ended June
30, 2012 and 2011 and March 31, 2012 are annualized, as
appropriate.
|
(2) Net interest income divided by average interest
earning assets.
|
(3) Noninterest income divided by the sum of
noninterest income and net interest income.
|
(4) Noninterest expense, excluding other real estate
owned and repossessed property expense, as a percentage of net
interest income and total noninterest income, excluding net
securities transactions.
|
|
| Quarter Ended |
| | 6/30/2012 |
| 3/31/2012 |
| 6/30/2011 |
| Asset quality ratios:
| | |
|
Nonperforming assets to total assets
| |
|
2.70
|
%
| |
|
2.81
|
%
| |
|
2.65
|
%
| |
|
Nonperforming loans to gross loans
| | |
2.20
|
%
| | |
2.57
|
%
| | |
1.82
|
%
| |
|
Allowance for loan losses to nonperforming loans
| | |
65.86
|
%
| | |
56.28
|
%
| | |
80.14
|
%
| |
|
Allowance for loan losses to gross loans
| | |
1.45
|
%
| | |
1.45
|
%
| | |
1.46
|
%
| |
|
Net charge-offs to average loans outstanding
| | |
1.35
|
%
| | |
2.14
|
%
| | |
1.72
|
%
| |
| | | | | | | | | | | |
|
|
|
|
| | Six Months Ended |
| | 6/30/2012 |
| | 6/30/2011 |
Selected Consolidated Operating Data: | | |
|
Total interest income
| | $9,161 | | | | $9,350 | |
|
Total interest expense
| |
1,189
|
| | |
1,435
|
|
|
Net interest income
| |
7,972
| | | |
7,915
| |
|
Provision for loan losses
| |
2,600
|
| | |
2,050
|
|
|
Net interest income after provision for loan losses
| |
5,372
| | | |
5,865
| |
|
Fees and service charges
| |
1,064
| | | |
999
| |
|
Gain on sale of loans
| |
559
| | | |
137
| |
|
Loss on sale of securities
| |
-
| | | |
(34
|
)
|
|
Other than temporary impairment on securities
| |
(124
|
)
| | |
(39
|
)
|
|
Fair value adjustment on mortgage servicing rights
| |
308
| | | |
257
| |
|
Other non-interest income
| |
317
|
| | |
255
|
|
|
Total non-interest income
| |
2,124
| | | |
1,575
| |
|
Total non-interest expense
| |
5,837
|
| | |
6,069
|
|
|
Income before provision for income taxes
| |
1,659
| | | |
1,371
| |
|
Provision for income taxes
| |
520
|
| | |
421
|
|
|
Net income
| | $1,139 |
| | | $950 |
|
|
|
|
| | Six Months Ended |
| | 6/30/2012 |
|
| 6/30/2011 |
Selected Financial Ratios and Other Data: | | |
| Performance ratios(1):
| | | | |
|
Return on average assets
| |
0.66
|
%
| | |
0.58
|
%
|
|
Return on average equity
| |
7.67
|
%
| | |
6.86
|
%
|
|
Net interest margin(2) | |
5.18
|
%
| | |
5.26
|
%
|
|
Non-interest income to operating revenue(3) | |
21.04
|
%
| | |
16.60
|
%
|
|
Non-interest expense to average total assets
| |
3.38
|
%
| | |
3.68
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
| |
107.78
|
%
| | |
110.56
|
%
|
|
Efficiency ratio(4) | |
52.94
|
%
| | |
56.74
|
%
|
| | | | |
|
|
| | | | | |
(1) Performance ratios for the six months ended June
30, 2012 and 2011 are annualized, as appropriate.
|
(2) Net interest income divided by average interest
earning assets.
|
(3) Noninterest income divided by the sum of
noninterest income and net interest income.
|
(4) Noninterest expense, excluding other real estate
owned and repossessed property expense, as a percentage of net
interest income and total noninterest income, excluding net
securities transactions.
|
Regulatory Capital Ratios of Sound Community Bank at June 30,
2012 |
|
| Actual |
| Minimum Capital Requirements |
|
Minimum Required to
Be Well-Capitalized
Under Prompt
Corrective
Action Provisions |
| | Amount |
| Ratio | | Amount |
| Ratio | | Amount |
| Ratio |
| |
(Dollars in thousands)
|
|
Core capital (to total adjusted assets)
| |
$
|
29,329
| |
8.28
|
%
| | $14,168 | |
4.0
|
%
| |
$
|
17,710
| |
5.0
|
%
|
|
Core capital (to risk-weighted assets)
| | |
29,329
| |
10.81
|
%
| |
10,857
| |
4.0
|
%
| | |
16,286
| |
6.0
|
%
|
|
Risked-based capital (to risk-weighted assets)
| | |
32,734
| |
12.06
|
%
| |
21,715
| |
8.0
|
%
| | |
27,143
| |
10.0
|
%
|
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, 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 x306
or
Financial:
Matt Deines,
206-448-0884 x305
Source: Sound Financial, Inc.