ONEIDA, N.Y., July 23, 2010 - Oneida Financial Corp. (Nasdaq:
ONFCD), the parent company of The Oneida Savings Bank, has
announced second quarter operating results. Net income for
the three months ended June 30, 2010
was $814,000, or $0.10 diluted earnings per share, compared to
$1.1 million, or $0.14 diluted earnings per share, for the three
months ended June 30, 2009. The
decrease in net income during the respective second quarter periods
is primarily the result of a decrease in the fair value of trading
securities, an increase in the provision for loan losses and an
increase in non-interest expenses, partially offset by an increase
in net interest income, an increase in net investment gains, an
increase in non-interest income and a decrease in income tax
provisions.
Net income for the six months ended June
30, 2010 was $1.4 million or
$0.18 diluted earnings per share, as
compared with $2.2 million or
$0.28 diluted earnings per share for
the same period in 2009. Net income from operations for the
six months ended June 30, 2010,
excluded non-cash gains and losses, as referenced in the table
below, was $2.8 million or
$0.36 per diluted share. This
compares to net income from operations for the six months ended
June 30, 2009 of $2.1 million or $0.27 per diluted share. The increase in
net income from operations was primarily due to an increase in net
interest income, an increase in non-interest income and an increase
in gains from the sale of investments, partially offset by an
increase in the provision for income taxes, an increase in the
provision for loan losses and an increase in non-interest expense.
Key items for second quarter 2010 include:
- The Bank remains well capitalized at June 30, 2010 with a Tier 1 leverage ratio of
7.05% and a total risk-based capital ratio of 11.25%. The Company's
average equity ratio as a percent of average assets was 9.84% at
June 30, 2010 compared to 9.99% at
March 31, 2010.
- Net interest income was $4.4
million for the three months ended June 30, 2010 compared to $4.3 million for the three months ended
June 30, 2009. Net interest
margin was 3.40% for the second quarter of 2010 compared to 3.66%
for the second quarter of 2009.
- Non-interest income was $5.7
million for the three months ended June 30, 2010 compared to $5.0 million for the three months ended
June 30, 2009. This increase is
primarily the result of an increase in revenue derived from the
Company's insurance and other non-banking operations of
$529,000 to $4.4 million in the
second quarter of 2010 compared to $3.9
million in the comparable 2009 period.
- Non-cash decrease in the fair value recognized on trading
(equity) securities was $863,000 for
the three months ended June 30, 2010
compared to a non-cash increase of $998,000 for the three months ended June 30, 2009. Non-cash impairment charges
of $61,000 were recorded in the
second quarter 2010 on certain investment securities compared with
$454,000 in non-cash charges recorded
in the second quarter of 2009.
- Noninterest expense increased to $8.3
million for the three months ended June 30, 2010 compared to $8.2 million for the comparable period in 2009.
This increase was primarily the result of an increase in
compensation and employee benefits expense associated with the
Company's insurance and other non-banking operations.
- Deposits increased $60.8 million to
$521.3 million at June 30,
2010 compared to $460.5
million at June 30, 2009.
Total borrowings outstanding decreased 26.6% to $23.5 million at June 30,
2010 from $32.0 million at
June 30, 2009.
- We announced the results of the stock offering related to the
reorganization of Oneida Financial Corp. from a mutual holding
company to a fully public stock holding company. Gross stock
offering proceeds of $31.5 million
were received and the reorganization was completed on July 7, 2010.
Michael R. Kallet, President and
Chief Executive Officer of Oneida Financial Corp., said, "Oneida
Financial Corp. is pleased to report a record level of total assets
and total deposits." Kallet continued, "As a diversified
banking and financial services company, Oneida Financial Corp.
continues to manage risk through a diversified business model.
Our insurance and financial services subsidiaries, Bailey
& Haskell Associates, Inc. and Benefit Consulting Group, Inc.,
reported a record level of revenue in the second quarter of 2010."
Kallet concluded, "Oneida Financial Corp. appreciates the
support we have received from our customers and stockholders over
the past decade as a mutual holding company and we look forward to
our continued shared success as a fully public stockholder-owned
company now that our corporate reorganization is complete."
Net Interest Income and Margin
Second quarter 2010 compared with second quarter 2009
Net interest income was $4.4
million for the second quarter of 2010, a $157,000 increase from the second quarter of
2009. The net interest margin was 3.40% for the second quarter of
2010, compared to 3.66% for the second quarter of 2009. The yield
on interest-earning assets has decreased 78 basis points to 4.53%
partially offset by an increase in average interest-earning assets
of $53.8 million. For the same
period, the cost of interest-bearing deposits decreased 48 basis
points to 1.06% while average interest-bearing deposits increased
$58.1 million. The Company
executed on its planned repayment of Federal Home Loan Bank
borrowings upon the maturity of its advances resulting in a
decrease of $11.7 million in average
borrowings outstanding. The average cost of interest-bearing
liabilities decreased 56 basis points to 1.24% for the second
quarter of 2010 as compared to the second quarter of 2009.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
Net interest income for the quarter ended June 30, 2010, increased $167,000 from the quarter ended March 31, 2010. The increase in net interest
income reflects higher net interest income as a percent of our
average interest earning assets and is expressed as an increase in
our net interest margin of 1 basis point from 3.39% for the quarter
ended March 31, 2010 and one
additional calendar day in the current quarter. The yield on
interest-earning assets decreased 9 basis points from 4.62% from
the quarter ended March 31, 2010
while the cost of interest-bearing liabilities decreased 11 basis
points from 1.35% during the first quarter of 2010.
Year-to-date comparison 2010 to 2009
On a year-to-date basis, net interest income increased
$379,000 for the six months ended
June 30, 2010, as compared to the
same period in 2009. The increase in net interest income is
the result of an increase in average interest-earning assets of
$51.4 million to $514.1 million for
the six months ended June 30, 2010
from the same period in 2009 partially offset by a decrease in net
interest margin of 21 basis points from 3.61 percent to 3.40
percent.
Provision for loan losses
Second quarter 2010 compared with second quarter 2009
During the second quarter of 2010, the Company made a
$300,000 provision for loan losses as
compared with $160,000 in provision
for loan losses during the second quarter of 2009. The
increase in provision for loan losses during the second quarter of
2010 is primarily the result of the Company increasing a specific
reserve to $1.4 million for an
impaired unsecured commercial loan with a principal balance of
$2.2 million. As of
June 30, 2010, the borrower of the
impaired loan has made all payments as agreed. Net
charge-offs during the current quarter were $148,000. The Company continues to monitor
the adequacy of the allowance for loan losses given the risk
assessment of the loan portfolio and current economic conditions.
The Company continues to report an overall low level of net
loan charge-offs as compared to its peers. The ratio of the
loan loss allowance to loans receivable was 1.19% at June 30, 2010 compared to 0.90% at June 30, 2009.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
The provision for loan losses decreased by $100,000 during the second quarter of 2010 as
compared with the linked prior quarter. The Company continued
to increase a specific reserve for an impaired unsecured commercial
loan. The increase in non-performing loans in the current
quarter as compared with the linked quarter reflects management's
assessment of this impaired commercial loan and other loans
outstanding to the same borrower. The ratio of the loan loss
allowance to loans receivable was 1.19% at June 30, 2010 compared to 1.13% at March 31, 2010.
Year-to-date comparison 2010 to 2009
Provision for loan losses totaled $700,000 for the six months ended June 30, 2010 as compared with $160,000 in the same period of 2009.
Noninterest Income
Second quarter 2010 compared with second quarter 2009
Noninterest income totaled $5.7
million for the second quarter of 2010, an increase of
$704,000 or 14.1% from $5.0 million in the second quarter of 2009. The
increase was primarily due to an increase of $529,000 in commissions and fees on the sales of
non-bank products through the Company's insurance and financial
service subsidiaries. Partially offsetting the increase was a
decrease in loan sale and servicing income, which totaled
$221,000 in the second quarter of
2010 as compared with $276,000 in the
second quarter of 2009. The Bank sells substantially all of its
fixed-rate residential mortgage loan originations on a servicing
retained basis in the secondary market. These loan sales help the
Bank to control interest rate risk. The volume of fixed-rate
residential mortgage loan originations decreased in the current
quarter as compared with the 2009 period. Service charges on
deposit accounts increased $98,000 in
the second quarter of 2010 as compared with the second quarter of
2009 due in part to the increase in non-interest bearing
deposits.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
Noninterest income decreased $122,000 from $5.8
million on a linked-quarter basis, reflecting a decrease in
commissions and fees on the sales of non-bank products partially
offset by an increase in service charges on deposit accounts in the
second quarter of 2010.
Year-to-date comparison 2010 to 2009
Noninterest income totaled $11.5
million for the six months ended June
30, 2010 as compared with $10.6
million in the same period of 2009, an increase of 9.3%.
Net Investment Gains/(Losses)
Second quarter 2010 compared with second quarter 2009
Net investment gains of $381,000
were recorded in the second quarter of 2010 compared with net
investment losses of $454,000 in the
second quarter of 2009. During the second quarter of 2010
eight trust preferred securities were reviewed for
other-than-temporary-impairment. The Company recorded a
non-cash charge of $58,000
representing the credit impairment on certain securities in the
second quarter of 2010 as compared with a non-cash charge of
$454,000 in the second quarter of
2009. The trust preferred securities owned by the Company are
diversified pools of collateralized debt obligations primarily
issued by domestic financial institutions. In addition, the Company
recorded a non-cash charge of $3,000
representing the other-than-temporary impairment of a
privately-issued collateralized mortgage obligation.
Offsetting the non-cash impairment charges during the second
quarter of 2010 were investment gains resulting from the Company's
decision to realize a portion of the appreciation in its
mortgage-backed and investment securities portfolio, monetizing
other comprehensive income and reducing prepayment risk during the
second quarter of 2010. These factors resulted in net gains
realized of $442,000 during the three
months ended June 30, 2010.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
During the linked quarter ended March 31,
2010, the Company realized net investment losses of
$681,000 as the Company recorded
non-cash impairment charges of $990,000 representing the credit impairment on
five trust preferred securities and one privately-issued
collateralized mortgage obligation owned by the Company offset in
part by investment gains of $309,000
realized in its mortgage-backed and investment securities
portfolio.
Year-to-date comparison 2010 to 2009
For the six months ended June 30,
2010 the Company has recorded net investment losses of
$300,000 as compared with net
investment losses of $216,000 during
the six months ended June 30, 2009.
The losses recorded in both periods is the result of non-cash
other-than-temporary impairment charges recorded in each period
partially offset by gains realized on the sale of mortgage-backed
and investment securities.
Change in the Fair Value of Investments
Second quarter 2010 compared with second quarter 2009
The Company has identified the preferred and common equity
securities it holds in the investment portfolio as trading
securities and as such the change in fair value of these securities
is reflected as a non-cash adjustment through the income statement.
For the three months ended June 30,
2010, the market value of the Company's trading securities
decreased $863,000 as compared with
an increase of $998,000 in the second
quarter of 2009. The decrease in market value of the
Company's trading securities in the second quarter of 2010 is
reflective of the decrease in broader equity markets during the
period.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
During the linked quarter ended March 31,
2010, the Company recorded non-cash income of $139,000 reflecting the increase in market value
of the Company's trading securities at the end of the first quarter
of 2010.
Year-to-date comparison 2010 to 2009
For the six month period ended June 30,
2010 a negative net fair value adjustment of $724,000 reflects the decrease in market value of
the Bank's trading securities at June 30,
2010 from the most recent year end. This compares
with a net increase in the fair value for the same 2009 period of
$569,000. The table below summarizes
the Company's operating results excluding these cumulative non-cash
charges related to the change in fair value of trading securities
and the non-cash impairment charges recorded as net investment
losses in each period.
Reported Results
|
|
(including non-cash gains and
losses recognized under ASC 320)
|
|
(All amounts in thousands except
net income per diluted share)
|
|
|
Year to Date
|
Year to Date
|
|
|
June 30,
|
June 30,
|
|
|
2010
|
2009
|
|
Net interest income
|
$ 8,729
|
$ 8,350
|
|
Provision for loan
losses
|
700
|
160
|
|
Investment gains
(losses)
|
(300)
|
(216)
|
|
Change in fair value of
investments
|
(724)
|
569
|
|
Non-interest income
|
11,535
|
10,558
|
|
Non-interest expense
|
16,669
|
16,108
|
|
Income tax provision
|
429
|
810
|
|
Net income
|
$ 1,442
|
$ 2,183
|
|
Net income per
|
|
|
|
diluted share
|
$ 0.18
|
$ 0.28
|
|
|
|
|
Operating Results /
Non-GAAP
|
|
(excluding non-cash gains and
losses recognized under ASC 320)
|
|
(All amounts in thousands except
net income per diluted share)
|
|
|
Year to Date
|
Year to Date
|
|
|
June 30,
|
June 30,
|
|
|
2010
|
2009
|
|
Net interest income
|
$ 8,729
|
$ 8,350
|
|
Provision for loan
losses
|
700
|
160
|
|
Investment gains
|
751
|
238
|
|
Non-interest income
|
11,535
|
10,558
|
|
Non-interest expense
|
16,669
|
16,108
|
|
Income tax provision
|
835
|
779
|
|
Net income
|
$ 2,811
|
$ 2,099
|
|
Net income per
|
|
|
|
diluted share
|
$ 0.36
|
$ 0.27
|
|
|
|
|
The Company believes these non-GAAP financial measures provide a
meaningful comparison of the underlying operational performance of
the Company, and facilitate investors' assessments of business and
performance trends in comparison to others in the financial
services industry. In addition, the Company believes this alternate
presentation of these items enables management to perform a more
effective evaluation and comparison of the Company's results and to
assess the overall performance of our business in relation to the
Company's ongoing operations.
Noninterest Expense
Second quarter 2010 compared with second quarter 2009
Noninterest expense was $8.3
million for the three months ended June 30, 2010 as compared with $8.2 million during the second quarter of 2009.
The increase in noninterest expense was primarily due to the
increase in sales of insurance and other non-banking products
through our subsidiaries resulting in an increase in compensation
and employee benefit expenses partially offset by a decrease in
other operating expenses.
Second quarter 2010 compared with linked quarter ended
March 31, 2010
Noninterest expense decreased $19,000 in the second quarter of 2010 as compared
with the linked prior quarter. Compensation and employee benefit
expense decreased by $41,000 as
compared with quarter ended March 31,
2010.
Year-to-date comparison 2010 to 2009
Noninterest expense totaled $16.7
million for the six months ended June
30, 2010 as compared with $16.1
million in the same period of 2009. The increase in
noninterest expense was primarily due to the increase in sales of
insurance and other non-banking products through our subsidiaries
resulting in an increase in compensation and employee benefit
expenses.
Income Taxes
The Company's effective tax rate was 22.2% for the second
quarter of 2010 as compared with an effective tax rate of 27.2% for
the second quarter of 2009. For the linked quarter ended
March 31, 2010, the Company's
effective tax rate was 23.8%. For the six months ended June 30, 2010 the Company's effective tax rate
was 22.9%.
Key Balance Sheet Changes at June 30,
2010
- Deposit accounts were at the record level of $521.3 million at June 30,
2010, an increase of $15.8
million from March 31, 2010.
The increase in deposits in the current quarter was primarily
the result of the receipt of stock subscription deposits in
connection with the Company's stock offering completed on
July 7, 2010 at which time
$10.9 million in deposits were
transferred to cash and cash equivalents of the Company.
Total deposits increased $60.8
million from June 30, 2009,
reflecting an increase of $29.5
million in retail deposits combined with an increase of
$31.3 million in municipal deposits
over the past twelve months.
- Net loans receivable totaled $291.3
million at June 30, 2010
compared to $293.0 million at
March 31, 2010 and $292.8 million at June 30,
2009. The decrease in net loan balances reflects the
Company's continued loan sales activity. The Company has sold
$31.8 million in fixed rate
residential loans during the trailing twelve months ended
June 30, 2010.
- Investment and mortgage-backed securities totaled $198.2 million at June 30,
2010, an increase of $27.4
million from March 31, 2010,
and an increase of $45.2 million from
June 30, 2009. The increase in
investment and mortgage-backed securities is primarily the result
of the increase in collateral for municipal deposit accounts and a
decrease in loans receivable.
- The Company continued to repay maturing Federal Home Loan Bank
advances with proceeds from investment securities maturities, calls
and other cash flows. Borrowings outstanding were
$23.5 million at June 30, 2010 a decrease of $8.5 million from June 30,
2009.
- Total equity at June 30, 2010 was
$60.7 million, an increase of
$995,000 from March 31, 2010 and an increase of $5.1 million from June 30,
2009. The Company paid a semiannual cash dividend on
February 9, 2010 totaling
$844,000. Our mutual holding company
parent waived its receipt of this cash dividend. The increase
in total equity is primarily a result of the contribution of net
earnings combined with valuation adjustments made for the Company's
available for sale investment and mortgage-backed securities,
partially offset by the payment of $1.7
million in cash dividends during the trailing twelve month
period. The Company estimates $29.3
million in additional capital will be contributed as a
result of the corporate reorganization and related stock offering
completed on July 7, 2010.
About Oneida Financial Corp.
The Company's wholly owned subsidiaries include The Oneida
Savings Bank, a New York State
chartered FDIC insured stock savings bank; State Bank of
Chittenango, a state chartered
limited-purpose commercial bank; Bailey, Haskell & LaLonde
Agency, an insurance and risk management company; Benefit
Consulting Group, an employee benefits consulting and retirement
plan administration firm; and Workplace Health Solutions, a risk
management company specializing in workplace injury claims
management. Oneida Savings Bank was established in 1866 and
operates twelve full-service banking offices in Madison, Oneida and Onondaga counties. For more information, visit
the Company's web site at www.oneidafinancial.com.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK
FACTORS
In addition to historical information, this earnings release
may contain forward-looking statements for purposes of applicable
securities laws. Any statements contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties. There are a number of
important factors described in documents previously filed by the
Company with the Securities and Exchange Commission, and other
factors that could cause the Company's actual results to differ
materially from those contemplated by such forward-looking
statements. The Company undertakes no obligation to publicly
release the results of any revisions to those forward-looking
statements which may be made to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events.
All financial information provided at and for the quarter ended
June 30, 2010 and all other quarterly
and year-to-date data is unaudited. Selected financial ratios
have been annualized where appropriate. Operating data is
presented in thousands of dollars, except for per share
amounts.
|
|
|
At
|
At
|
At
|
At
|
At
|
|
Selected Financial Condition
Data:
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
(in thousands except per share
data)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Total assets
|
$613,310
|
$596,265
|
$590,506
|
$574,126
|
$557,513
|
|
Cash and cash
equivalents
|
32,235
|
42,282
|
39,537
|
26,914
|
21,143
|
|
Loans receivable,
net
|
291,267
|
293,024
|
295,839
|
295,384
|
292,814
|
|
Mortgage-backed
securities
|
73,133
|
65,401
|
65,737
|
75,605
|
76,257
|
|
Investment
securities
|
125,033
|
105,403
|
96,487
|
88,608
|
76,716
|
|
Trading
securities
|
6,884
|
7,757
|
7,627
|
7,220
|
6,491
|
|
Goodwill and other intangibles
|
24,721
|
24,822
|
24,813
|
24,929
|
25,045
|
|
Interest bearing deposits
|
445,166
|
444,627
|
426,368
|
417,401
|
398,339
|
|
Non-interest bearing
deposits
|
76,153
|
60,889
|
62,997
|
61,574
|
62,186
|
|
Borrowings
|
23,500
|
23,500
|
31,000
|
31,000
|
32,000
|
|
Total stockholders'
equity
|
60,694
|
59,699
|
59,116
|
57,133
|
55,620
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
|
|
(end of
period)
|
$7.76
|
$7.63
|
$7.57
|
$7.01
|
$6.82
|
|
Tangible value per
share
|
|
|
|
|
|
|
(end of
period)
|
$4.60
|
$4.46
|
$4.39
|
$3.81
|
$3.60
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
Year to Date
|
|
Selected Operating
Data:
|
Jun 30,
|
Jun 30,
|
Jun 30,
|
Jun 30,
|
|
(in thousands except per share
data)
|
2010
|
2009
|
2010
|
2009
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
Interest income:
|
|
|
|
|
|
Interest and
fees on loans
|
$4,183
|
$4,410
|
$8,501
|
$8,891
|
|
Interest and
dividends
|
|
|
|
|
|
on
investments
|
1,732
|
1,804
|
3,244
|
3,541
|
|
Interest on fed
funds
|
9
|
11
|
17
|
25
|
|
Total interest income
|
5,924
|
6,225
|
11,762
|
12,457
|
|
Interest expense:
|
|
|
|
|
|
Interest on
deposits
|
1,197
|
1,526
|
2,426
|
3,143
|
|
Interest on
borrowings
|
279
|
408
|
607
|
964
|
|
Total
interest expense
|
1,476
|
1,934
|
3,033
|
4,107
|
|
Net interest
income
|
4,448
|
4,291
|
8,729
|
8,350
|
|
Provision for loan
losses
|
300
|
160
|
700
|
160
|
|
Net interest income
after
|
|
|
|
|
|
provision for loan
losses
|
4,148
|
4,131
|
8,029
|
8,190
|
|
Net investment gains
(losses)
|
381
|
(454)
|
(300)
|
(216)
|
|
Change in fair value of
investments
|
(863)
|
998
|
(724)
|
569
|
|
Non-interest
income:
|
|
|
|
|
|
Service charges on
deposit accts
|
712
|
614
|
1,334
|
1,261
|
|
Commissions and fees on
sales
|
|
|
|
|
|
of
non-banking products
|
4,435
|
3,906
|
9,097
|
8,055
|
|
Other revenue from
operations
|
559
|
481
|
1,104
|
1,242
|
|
Total
non-interest income
|
5,706
|
5,001
|
11,535
|
10,558
|
|
Non-interest
expense
|
|
|
|
|
|
Salaries and employee
benefits
|
5,196
|
4,994
|
10,433
|
9,981
|
|
Equipment and net
occupancy
|
1,251
|
1,178
|
2,525
|
2,406
|
|
Intangible
amortization
|
101
|
116
|
209
|
238
|
|
Other costs of
operations
|
1,777
|
1,921
|
3,502
|
3,483
|
|
Total
non-interest expense
|
8,325
|
8,209
|
16,669
|
16,108
|
|
Income before income
taxes
|
1,047
|
1,467
|
1,871
|
2,993
|
|
Income tax provision
|
233
|
398
|
429
|
810
|
|
Net income
|
$
814
|
$
1,069
|
$
1,442
|
$
2,183
|
|
Net income per common
|
|
|
|
|
|
share ( EPS – Basic
)
|
$0.10
|
$0.14
|
$0.18
|
$0.28
|
|
Net income per common
|
|
|
|
|
|
share ( EPS –
Diluted)
|
$0.10
|
$0.14
|
$0.18
|
$0.28
|
|
Cash dividends
declared
|
$0.12
|
$0.00
|
$0.24
|
$0.24
|
|
|
|
|
|
|
|
|
|
|
|
Second
|
First
|
Fourth
|
Third
|
Second
|
|
Selected Operating
Data:
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
(in thousands except per share
data)
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
Interest income:
|
|
|
|
|
|
|
Interest and
fees on loans
|
$4,183
|
$4,318
|
$4,452
|
$4,418
|
$4,410
|
|
Interest and
dividends
|
|
|
|
|
|
|
on
investments
|
1,732
|
1,512
|
1,854
|
1,809
|
1,804
|
|
Interest on fed
funds
|
9
|
7
|
5
|
7
|
11
|
|
Total interest income
|
5,924
|
5,837
|
6,311
|
6,234
|
6,225
|
|
Interest expense:
|
|
|
|
|
|
|
Interest on
deposits
|
1,197
|
1,227
|
1,310
|
1,425
|
1,526
|
|
Interest on
borrowings
|
279
|
329
|
366
|
367
|
408
|
|
Total
interest expense
|
1,476
|
1,556
|
1,676
|
1,792
|
1,934
|
|
Net interest
income
|
4,448
|
4,281
|
4,635
|
4,442
|
4,291
|
|
Provision for loan
losses
|
300
|
400
|
200
|
400
|
160
|
|
Net interest income
after
|
|
|
|
|
|
|
provision for loan
losses
|
4,148
|
3,881
|
4,435
|
4,042
|
4,131
|
|
Net investment gains
(losses)
|
381
|
(681)
|
(633)
|
(658)
|
(454)
|
|
Change in fair value of
investments
|
(863)
|
139
|
417
|
739
|
998
|
|
Non-interest
income:
|
|
|
|
|
|
|
Service charges on
deposit accts
|
712
|
622
|
709
|
645
|
614
|
|
Commissions and fees on
sales
|
|
|
|
|
|
|
of
non-banking products
|
4,435
|
4,662
|
4,243
|
3,539
|
3,906
|
|
Other revenue from
operations
|
559
|
544
|
581
|
610
|
481
|
|
Total
non-interest income
|
5,706
|
5,828
|
5,533
|
4,794
|
5,001
|
|
Non-interest
expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
5,196
|
5,237
|
5,337
|
5,107
|
4,994
|
|
Equipment and net
occupancy
|
1,251
|
1,274
|
1,197
|
1,145
|
1,178
|
|
Intangible
amortization
|
101
|
108
|
116
|
116
|
116
|
|
Other costs of
operations
|
1,777
|
1,725
|
1,697
|
1,623
|
1,921
|
|
Total
non-interest expense
|
8,325
|
8,344
|
8,347
|
7,991
|
8,209
|
|
Income before income
taxes
|
1,047
|
823
|
1,405
|
926
|
1,467
|
|
Income tax provision
|
233
|
196
|
171
|
230
|
398
|
|
Net income
|
$
814
|
$
627
|
$
1,234
|
$
696
|
$
1,069
|
|
Net income per common
|
|
|
|
|
|
|
share ( EPS – Basic
)
|
$0.10
|
$0.08
|
$0.16
|
$0.09
|
$0.14
|
|
Net income per common
|
|
|
|
|
|
|
share ( EPS –
Diluted)
|
$0.10
|
$0.08
|
$0.16
|
$0.09
|
$0.14
|
|
Cash dividends
declared
|
$0.12
|
$0.24
|
$0.00
|
$0.24
|
$0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months
Ended
|
|
Selected Financial Ratios
(1)
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
and Other
Data
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
(unaudited)
|
(unaudited)
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Return on average
assets
|
0.53%
|
0.42%
|
0.86%
|
0.49%
|
0.77%
|
|
Return on average
equity
|
5.41%
|
4.21%
|
8.54%
|
5.00%
|
8.03%
|
|
Return on average tangible
equity
|
9.19%
|
7.22%
|
14.95%
|
9.07%
|
15.15%
|
|
Interest rate spread
(2)
|
3.30%
|
3.26%
|
3.69%
|
3.60%
|
3.52%
|
|
Net interest margin
(3)
|
3.40%
|
3.39%
|
3.79%
|
3.73%
|
3.66%
|
|
Efficiency ratio (4)
|
81.99%
|
82.54%
|
82.09%
|
86.52%
|
88.34%
|
|
Non-interest income to average
assets
|
3.73%
|
3.91%
|
3.84%
|
3.40%
|
3.59%
|
|
Non-interest expense to average
assets
|
5.44%
|
5.60%
|
5.79%
|
5.66%
|
5.90%
|
|
Average interest-earning assets
as a ratio of average interest-bearing liabilities
|
109.28%
|
108.51%
|
108.78%
|
109.32%
|
108.55%
|
|
Average equity to average total
assets
|
9.84%
|
9.99%
|
10.02%
|
9.87%
|
9.57%
|
|
Equity to total assets (end of
period)
|
9.90%
|
10.01%
|
10.01%
|
9.95%
|
9.98%
|
|
Tangible equity to tangible
assets
|
6.11%
|
6.10%
|
6.06%
|
5.86%
|
5.74%
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
Nonperforming assets
to
|
|
|
|
|
|
|
total assets
(5)
|
1.45%
|
0.90%
|
0.41%
|
0.40%
|
0.19%
|
|
Nonperforming loans
to
|
|
|
|
|
|
|
total
loans
|
1.01%
|
0.11%
|
0.18%
|
0.09%
|
0.20%
|
|
Net charge-offs to average
loans
|
0.05%
|
0.00%
|
0.06%
|
0.06%
|
0.03%
|
|
Allowance for loan losses
to
|
|
|
|
|
|
|
loans receivable,
net
|
1.19%
|
1.13%
|
0.98%
|
0.97%
|
0.90%
|
|
Allowance for loan losses
to
|
|
|
|
|
|
|
nonperforming
loans
|
115.57%
|
1041.01%
|
526.50%
|
1110.04%
|
420.51%
|
|
|
|
|
|
|
|
|
Bank Regulatory Capital
Ratios:
|
|
|
|
|
|
|
Total capital
|
|
|
|
|
|
|
to risk weighted
assets
|
11.25%
|
11.04%
|
10.73%
|
10.30%
|
10.16%
|
|
Tier 1 capital
|
|
|
|
|
|
|
to risk weighted
assets
|
10.39%
|
10.21%
|
10.00%
|
9.58%
|
9.49%
|
|
Tier 1 capital
|
|
|
|
|
|
|
to average
assets
|
7.05%
|
7.08%
|
7.19%
|
7.03%
|
6.95%
|
|
|
|
|
|
|
|
|
1 - Ratios are annualized where appropriate.
|
|
2 - The average interest rate spread represents the
difference between the weighted-average yield on
interest-earning
assets and the weighted-average cost of
interest-bearing liabilities for the period.
|
|
3 - The net interest margin represents net interest income as
a percent of average interest-earning assets for the
period.
|
|
4 - The efficiency ratio represents non-interest expense
divided by the sum of net interest income and non-interest
income
excluding net impairment losses, net
investment gains (losses) and changes in the fair value of trading
securities.
|
|
5 - Non-performing assets include non-performing loans and
non-accrual trust preferred securities.
|
|
|
|
|
|
|
|
|
|
SOURCE Oneida Financial Corp.