Emclaire Financial Corp (NASDAQ:EMCF), the parent holding company
of The Farmers National Bank of Emlenton, reported consolidated net
income available to common stockholders of $3.4 million, or
$1.23 per diluted common share, for the three months ended
September 30, 2021, an increase of $1.6 million, or 87.7%, from
$1.8 million, or $0.66 per diluted common share, reported for
the comparable period in 2020. Net income available to common
shareholders for the nine-month period ended September 30, 2021 was
$7.4 million, or $2.69 per diluted common share, an increase of
$3.2 million, or 76.3%, from $4.2 million, or $1.54 per diluted
common share, for the same period in 2020. The increase in
net income for both periods compared to the same periods in
2020 resulted from an increase in net interest income and
a decrease in the provision for loan losses, partially offset
by increases in noninterest expense and the provision for income
taxes.
William C. Marsh, Chairman, President and Chief
Executive Officer of the Corporation and the Bank, noted, “We are
extremely pleased to announce record earnings for the third
quarter. The Bank has achieved solid earnings, balance
sheet growth and strong credit quality while
navigating through the ongoing pandemic, staffing
challenges and industry-wide margin compression. We
continue to process and benefit from forgiveness requests
related to the Small Business Administration's Paycheck
Protection Program (PPP) through which we provided a total
of $81.6 million of loans to local small businesses
of which only $10.5 million remained outstanding at quarter
end. We remain focused on meeting our customers' needs and
providing a competitive return to our shareholders."
QUARTERLY OPERATING RESULTS OVERVIEW
Net income available to common stockholders
increased $1.6 million, or 87.7%, to $3.4 million, or
$1.23 per diluted common share, for the three months ended
September 30, 2021, compared to net income of $1.8 million, or
$0.66 per diluted common share for same period in
2020. The increase resulted from increases in net interest
income and noninterest income of $1.4 million and $208,000,
respectively, and a $625,000 decrease in the provision for
loan losses, partially offset by increases in noninterest expense
and the provision for income taxes of $306,000 and $350,000,
respectively.
Net interest income increased $1.4 million, or
19.4%, to $8.6 million for the three months ended September
30, 2021 from $7.2 million for the same period in 2020.
The increase in net interest income resulted from a decrease in
interest expense of $756,000, or 39.1%, and an increase in
interest income of $644,000, or 7.0%. The Corporation's cost
of funds decreased 37 basis points to 0.47% for the three
months ended September 30, 2021, compared to 0.84% for the same
period in 2020, resulting in an $832,000 decrease in interest
expense. The decrease in the cost of funds was partially
offset by an $85,000 increase in interest expense caused by a $35.2
million increase in average interest-bearing deposits to $729.6
million for the three months ended September 30, 2021, compared to
$694.4 million for the same period in 2020. The increase in
interest income resulted primarily from a 25 basis point
increase in the yield on loans to 4.36% for the three months ended
September 30, 2021 from 4.11% for the same period in 2020, causing
a $527,000 increase in interest income. During the three
months ended September 30, 2021, the Corporation recognized
$1.2 million of interest income related to the PPP loans, compared
to $389,000 for the same period in 2020. Without the PPP
loans, the Corporation would have experienced a 25 basis point
decrease in the yield on loans to 3.86% for the three months
ended September 30, 2021. The increase in loan yield was
partially offset by a $22.5 million decrease in the average
balance of loans outstanding as a result of PPP loan forgiveness
and a reduction in the Bank's residential mortgage and home equity
loan portfolios. The decrease in loan volume caused
a reduction of $237,000 in interest income for the
quarter. Additionally, average security balances
increased $93.4 million to $186.4 million for the three months
ended September 30, 2021, compared to $93.1 million for the same
period in 2020, causing a $500,000 increase in interest
income. This was partially offset by a 36 basis point
decrease in the yield on securities to 2.08% for the three months
ended September 30, 2021 from 2.44% for the same period in 2020,
causing a $91,000 decrease in interest income.
The provision for loan losses decreased
$625,000, or 83.3%, to $125,000 for the three months ended
September 30, 2021 from $750,000 for the same period in
2020. The higher provision for loan losses recorded during the
third quarter of 2020 was due to growth in the residential and
consumer loan portfolios, an increase in the specific pandemic
qualitative allowance factor, increased risk ratings for loans
which were granted payment deferrals and an increase in criticized
and classified loans. Criticized and classified loans
decreased $3.7 million during the quarter ended September 30,
2021 to $39.3 million, or 3.6%, of total assets from
$43.0 million, or 3.9%, of total assets at June 30, 2021.
Noninterest income increased $208,000, or 18.3%,
to $1.3 million for the three months ended September 30,
2021 from $1.1 million for the same period in
2020 due to increases in gains on the sale of securities,
other income and fees and service charges of $170,000,
$51,000 and $18,000, respectively, partially offset by a
decrease in gains on the sale of loans of $30,000.
During the quarter ended September 30, 2021, the Corporation sold a
total of $4.4 million of primarily low-yielding
mortgage-backed securities and realized a net gain of
$170,000. The sale proceeds were utilized to repay a $5.0
million Federal Home Loan Bank (FHLB) term advance. The
increase in other income was primarily related to an increase in
interchange fee income resulting from easing pandemic
restrictions leading to an increase in consumer spending.
Noninterest expense increased $306,000, or 5.6%,
to $5.8 million for the three months ended September 30,
2021 from $5.4 million for the same period in
2020. The increase was primarily attributable to increases in
other noninterest expense, professional fees, compensation and
benefits expense and intangible amortization expense, of
$191,000, $57,000, $56,000 and $27,000, respectively. The
increase in other noninterest expense was primarily related to
prepayment penalties of $173,000 incurred during the quarter ended
September 30, 2021 as a result of the aforementioned early
repayment of FHLB debt.
The provision for income taxes increased
$350,000, or 91.2%, to $734,000 for the three months ended
September 30, 2021 from $384,000 for the same period in
2020 as a result of the increase in net income before
provision for income taxes.
YEAR-TO-DATE OPERATING RESULTS OVERVIEW
Net income available to common stockholders
increased $3.2 million, or 76.3%, to $7.4 million,
or $2.69 per diluted common share, for the nine months ended
September 30, 2021, compared to net income of $4.2 million, or
$1.54 per diluted common share for same period in
2020. The increase resulted from a $2.7 million
increase in net interest income and a $2.0 million
decrease in the provision for loan losses, partially offset by a
$65,000 decrease in noninterest income and increases in noninterest
expense and the provision for income taxes of $706,000 and
$679,000, respectively.
Net interest income increased $2.7 million,
or 12.8%, to $23.5 million for the nine months ended September
30, 2021 from $20.8 million for the same period in 2020. The
increase in net interest income resulted from a decrease in
interest expense of $2.3 million, or 36.3%, and a $371,000, or
1.4%, increase in interest income. The Corporation's cost of
funds decreased 40 basis points to 0.56% for the nine months
ended September 30, 2021, compared to 0.96% for the same period in
2020, resulting in a $2.5 million decrease in interest
expense. The decrease in the cost of funds was partially
offset by a $204,000 increase in interest expense caused by a
$52.2 million increase in average interest-bearing deposits to
$715.4 million for the nine months ended September 30, 2021,
compared to $663.2 million for the same period in
2020. The decrease in interest income resulted from a
13 basis point decrease in the yield on loans to 4.15% for the
nine months ended September 30, 2021, compared to 4.28% for the
same period in 2020, causing a $789,000 decrease in interest
income. Without the PPP loans, the Corporation would have
experienced a 38 basis point decrease in the yield on loans to
3.90% for the nine months ended September 30, 2021. This
decrease in yield was partially offset by a $23.3 million
increase in the average balance of loans outstanding as a result of
record loan production during 2020 and the addition of
PPP loans in 2020 and 2021, causing a $734,000 increase in
interest income. During the nine months ended September 30,
2021, the Corporation recognized $2.3 million of interest
income related to the PPP loans, compared to $654,000 for the same
period in 2020. Additionally, average security balances
increased $49.5 million to $153.4 million for the nine months ended
September 30, 2021, compared to $103.9 million for the same
period in 2020, causing a $860,000 increase in interest
income. This was partially offset by a 30 basis point
decrease in the yield on securities to 2.26% for the nine months
ended September 30, 2021 from 2.56% for the same period in 2020,
causing a $257,000 decrease in interest income.
The provision for loan losses decreased
$2.0 million, or 75.4%, to $650,000 for the nine months ended
September 30, 2021 from $2.6 million for the same period
in 2020. The higher provision for loan losses recorded during
the first nine months of 2020 was due to growth in the
residential and consumer loan portfolios, the addition of a
specific pandemic qualitative allowance factor, increased risk
ratings for loans which were granted payment deferrals and an
increase in criticized and classified loans. Criticized and
classified loans decreased $5.1 million during the nine months
ended September 30, 2021 to $39.3 million, or 3.6%, of total
assets from $44.4 million, or 4.3%, of total assets at
December 31, 2020.
Noninterest income decreased $65,000, or 1.8%,
to $3.5 million for the nine months ended September 30, 2021,
compared to $3.5 million for the same period in 2020 due
to decreases in gains on the sale of securities and fees and
service charges of $434,000 and $59,000, respectively, partially
offset by increases in other income and gains on the sale of
loans of $253,000 and $172,000, respectively.
During the nine months ended September 30, 2021, the Corporation
sold a total of $4.6 million of primarily low-yielding
mortgage-backed securities and realized a net gain of
$201,000. The sale proceeds were utilized to repay a $5.0
million Federal Home Loan Bank (FHLB) term advance.
During the nine months ended September 30, 2020, the Corporation
sold a total of $39.4 million of low-yielding mortgage-backed and
collateralized mortgage obligation securities and realized a net
gain of $635,000. The sale proceeds were utilized to repay
$15.0 million in FHLB term advances and purchase higher
yielding municipal securities. The increase in other
income was primarily related to an increase in interchange fee
income resulting from easing pandemic restrictions leading to
an increase in consumer spending. During the nine months
ended September 30, 2021, the Corporation sold $13.5 million
of residential mortgage loans to the FHLB and realized a net gain
of $353,000, compared to sales of $4.1 million and a net
gain of $181,000 recognized during the same period in
2020.
Noninterest expense increased $706,000, or 4.3%,
to $17.3 million for the nine months ended September 30, 2021,
compared to $16.6 million for the same period in 2020. The
increase was primarily attributable to increases in compensation
and benefits expense, professional fees, FDIC insurance
expense, other noninterest expense, premises and equipment
expense and intangible amortization expense of $260,000, $189,000,
$97,000, $92,000, $46,000 and $22,000,
respectively.
The provision for income taxes increased
$679,000, or 76.1%, to $1.6 million for the nine months ended
September 30, 2021 from $892,000 for the same period in
2020 as a result of the increase in net income before
provision for income taxes.
CONSOLIDATED BALANCE SHEET & ASSET
QUALITY OVERVIEW
Total assets increased $52.7 million, or
5.1%, to $1.1 billion at September 30, 2021 from $1.0
billion at December 31, 2020. The increase in
assets was driven primarily by a $73.9 million increase
in securities, partially offset by an $18.8 million decrease
in net loans receivable. Liabilities increased $49.7 million,
or 5.3%, to $990.5 million at September 30,
2021 from $940.8 million at December 31, 2020 due to
a $54.9 million increase in customer deposits, partially
offset by a $5.0 million reduction in borrowed funds.
Nonperforming assets decreased $1.4
million to $3.0 million, or 0.28% of total assets at
September 30, 2021, compared to $4.4 million, or 0.43% of
total assets at December 31, 2020. Classified and
criticized assets decreased $5.1 million to $39.3 million or 3.6%
of total assets at September 30, 2021, compared to $44.4
million or 4.3% of total assets at December 31, 2020.
Classified and criticized assets remain elevated largely due to the
impact of COVID-19 on the hospitality loan portfolio. At
September 30, 2021 the Corporation's hotel portfolio totaled
$32.1 million, of which $30.1 million was rated classified or
criticized.
The COVID-19 pandemic has impacted the global
and local economies and some customers' ability to continue making
timely loan payments. The Corporation addressed the
challenges of those facing hardship due to the pandemic by granting
payment deferrals on 402 loans, which totaled $108.1 million.
At September 30, 2021, four loan relationships comprised
of 10 loans totaling $16.0 million remained on
deferral, all of which are associated with borrowers within the
hospitality industry. The Corporation continues to carefully
monitor these loans and the entire loan portfolio and is
well-positioned to weather a potential weakening of asset quality
that may occur related to current circumstances.
Stockholders’ equity increased $3.0 million, or
3.2%, to $94.4 million at September 30, 2021 from $91.5
million at December 31, 2020 primarily due to a
$4.9 million increase in retained earnings as a result of $7.4
million of net income available to common stockholders, less $2.4
million of common dividends paid, partially offset by a $2.3
million decrease in accumulated other comprehensive income.
The Corporation remains well capitalized and is
well positioned for continued growth with total stockholders’
equity at 8.7% of total assets. Book value per common share
was $33.16 at September 30, 2021, compared to $32.07 at
December 31, 2020.
This news release may contain forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements may contain words such as
“believe”, “expect”, “anticipate”, “estimate”, “should”, “may”,
“can”, “will”, “outlook”, “project”, “appears” or similar
expressions. Such forward-looking statements are subject to
risk and uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of
factors. Such factors include, but are not limited to, changes in
interest rates which could affect net interest margins and net
interest income, the possibility that increased demand or prices
for the Corporation's financial services and products may not
occur, changing economic and competitive conditions, technological
and regulatory developments, and other risks and uncertainties,
including those detailed in the Corporation's filings with the
Securities and Exchange Commission. The Corporation does not
undertake, and specifically disclaims any obligation to update any
forward-looking statements to reflect occurrences or unanticipated
events or circumstances after the date of such statements.
INVESTOR RELATIONS CONTACT:William C. MarshChairman, President
andChief Executive OfficerPhone: (844) 800-2193
|
|
EMCLAIRE FINANCIAL CORP |
Consolidated Financial Highlights |
(Unaudited - Dollar amounts in thousands, except share data) |
CONSOLIDATED OPERATING
RESULTS DATA: |
|
Three month period |
|
|
Nine month period |
|
|
|
ended September 30, |
|
|
ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
9,816 |
|
|
$ |
9,172 |
|
|
$ |
27,527 |
|
|
$ |
27,156 |
|
Interest expense |
|
|
1,179 |
|
|
|
1,935 |
|
|
|
4,020 |
|
|
|
6,308 |
|
Net interest income |
|
|
8,637 |
|
|
|
7,237 |
|
|
|
23,507 |
|
|
|
20,848 |
|
Provision for loan losses |
|
|
125 |
|
|
|
750 |
|
|
|
650 |
|
|
|
2,642 |
|
Noninterest income |
|
|
1,348 |
|
|
|
1,140 |
|
|
|
3,478 |
|
|
|
3,543 |
|
Noninterest expense |
|
|
5,751 |
|
|
|
5,445 |
|
|
|
17,281 |
|
|
|
16,575 |
|
Income before provision for income taxes |
|
|
4,109 |
|
|
|
2,182 |
|
|
|
9,054 |
|
|
|
5,174 |
|
Provision for income
taxes |
|
|
734 |
|
|
|
384 |
|
|
|
1,571 |
|
|
|
892 |
|
Net income |
|
|
3,375 |
|
|
|
1,798 |
|
|
|
7,483 |
|
|
|
4,282 |
|
Preferred stock dividends |
|
|
- |
|
|
|
- |
|
|
|
95 |
|
|
|
91 |
|
Net income available to common stockholders |
|
$ |
3,375 |
|
|
$ |
1,798 |
|
|
$ |
7,388 |
|
|
$ |
4,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
1.24 |
|
|
$ |
0.66 |
|
|
$ |
2.72 |
|
|
$ |
1.55 |
|
Diluted earnings per common
share |
|
$ |
1.23 |
|
|
$ |
0.66 |
|
|
$ |
2.69 |
|
|
$ |
1.54 |
|
Dividends per common
share |
|
$ |
0.30 |
|
|
$ |
0.30 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(1) |
|
|
1.22 |
% |
|
|
0.70 |
% |
|
|
0.94 |
% |
|
|
0.58 |
% |
Return on average equity
(1) |
|
|
14.15 |
% |
|
|
8.01 |
% |
|
|
10.79 |
% |
|
|
6.49 |
% |
Return on average common
equity (1) |
|
|
14.81 |
% |
|
|
8.41 |
% |
|
|
11.16 |
% |
|
|
6.67 |
% |
Yield on average
interest-earning assets |
|
|
3.78 |
% |
|
|
3.83 |
% |
|
|
3.68 |
% |
|
|
3.99 |
% |
Cost of average
interest-bearing liabilities |
|
|
0.62 |
% |
|
|
1.06 |
% |
|
|
0.72 |
% |
|
|
1.19 |
% |
Cost of funds |
|
|
0.47 |
% |
|
|
0.84 |
% |
|
|
0.56 |
% |
|
|
0.96 |
% |
Net interest margin |
|
|
3.33 |
% |
|
|
3.03 |
% |
|
|
3.15 |
% |
|
|
3.07 |
% |
Efficiency ratio |
|
|
57.54 |
% |
|
|
64.14 |
% |
|
|
63.57 |
% |
|
|
68.85 |
% |
|
(1 |
) |
Returns are annualized for the
periods reported. |
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET DATA: |
|
As of |
|
|
As of |
|
|
|
9/30/2021 |
|
|
12/31/2020 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,084,974 |
|
|
$ |
1,032,323 |
|
Cash and equivalents |
|
|
38,066 |
|
|
|
37,439 |
|
Securities |
|
|
186,930 |
|
|
|
113,056 |
|
Loans, net |
|
|
781,859 |
|
|
|
800,413 |
|
Intangible assets |
|
|
20,397 |
|
|
|
20,543 |
|
Deposits |
|
|
948,523 |
|
|
|
893,627 |
|
Borrowed funds |
|
|
27,050 |
|
|
|
32,050 |
|
Common stockholders'
equity |
|
|
90,234 |
|
|
|
87,274 |
|
Stockholders' equity |
|
|
94,440 |
|
|
|
91,480 |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
33.16 |
|
|
$ |
32.07 |
|
|
|
|
|
|
|
|
|
|
Net loans to deposits |
|
|
82.43 |
% |
|
|
89.57 |
% |
Allowance for loan losses to
total loans |
|
|
1.26 |
% |
|
|
1.18 |
% |
Nonperforming assets to total
assets |
|
|
0.28 |
% |
|
|
0.43 |
% |
Stockholders' equity to total
assets |
|
|
8.70 |
% |
|
|
8.86 |
% |
Shares of common stock
outstanding |
|
|
2,721,212 |
|
|
|
2,721,212 |
|
Grafico Azioni Emclaire Financial (NASDAQ:EMCF)
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Da Giu 2023 a Giu 2024