Clifton Bancorp Inc. (Nasdaq:CSBK), the holding company for
Clifton Savings Bank, today announced results for the first quarter
ended June 30, 2015. Net income for the first quarter was $1.66
million ($0.07 per diluted share). This compares to net income of
$1.62 million ($0.06 per diluted share) for the first quarter ended
June 30, 2014.
Notable Items
- Quarterly net income increased 2.2% to
$1.66 million compared to the quarter ended June 30, 2014;
- One- to four-family real estate loans
increased $14.1 million or 2.5% for the three months ended June 30,
2015;
- Nonperforming loans to total gross
loans decreased to 0.81% at June 30, 2015;
- Net interest margin increased 8 basis
points compared to the first quarter ended June 30, 2014; and
- 1,477,924 shares of common stock were
repurchased during the first quarter of 2015.
Paul M. Aguggia, Chairman, President, and Chief Executive
Officer, stated, “We are pleased that our net income increased,
albeit slightly, despite important and on-going investments in
personnel, products and services and an intensely competitive
market for loans. We are continuing to build our business while
paying close attention to prudent asset growth, loan quality and
cost of funds. We also made a significant investment in our Company
by repurchasing 1,477,924 shares of common stock during the first
quarter of fiscal 2016 at a weighted average share price of
$13.78.”
Balance Sheet and Credit Quality
Review
Total assets decreased $34.2 million, or 2.9%, to $1.15 billion
at June 30, 2015, from $1.19 billion at March 31, 2015. The
decrease in total assets was primarily due to our continued
management of the cost of funds by allowing controlled, higher
priced time deposit runoff coupled with a decrease in cash, which
was used primarily to repurchase common stock.
Net loans increased $13.7 million, or 2.1%, to $654.8 million at
June 30, 2015 from $641.1 million at March 31, 2015 primarily due
to growth in the residential real estate loan portfolio. The
commercial and multi-family real estate loan portfolio held steady
but originations slowed due to competition. Securities, including
both available for sale and held to maturity issues, decreased
$23.5 million, or 5.6%, to $395.4 million at June 30, 2015 from
$418.9 million at March 31, 2015, mainly as the result of calls,
maturities and repayments on securities. Securities totaling $1.9
million were sold during the quarter ended June 30, 2015, resulting
in a gain of $72,000. Cash and cash equivalents decreased $25.8
million, or 52.3%, to $23.5 million at June 30, 2015 from $49.3
million at March 31, 2015.
Deposits decreased $14.2 million, or 2.0%, to $685.2 million at
June 30, 2015 from $699.5 million at March 31, 2015, mainly due to
the previously noted planned run-off of higher priced time
deposits. Total stockholders’ equity decreased $20.2 million, or
5.5%, to $347.8 million at June 30, 2015 from $368.0 million at
March 31, 2015, as a result of $20.4 million in repurchases of
common stock, and $3.0 million in cash dividends.
Non-accrual loans decreased $308,000, or 5.5%, to $5.3 million
at June 30, 2015 from $5.6 million at March 31, 2015. Included in
non-accrual loans at June 30, 2015 were ten loans totaling $2.0
million that were current or less than 90 days delinquent, but
which were previously 90 days or more delinquent and on a
non-accrual status pending a sustained period of repayment
performance (generally six months). The percentage of nonperforming
loans to total gross loans decreased to 0.81% at June 30, 2015 from
0.88% at March 31, 2015. The allowance for loan losses to
nonperforming loans increased to 66.01% at June 30, 2015 from
61.53% at March 31, 2015.
During the first quarter ended June 30, 2015, net charge-offs
totaled approximately $23,000 as compared to no charge-offs
recorded during the quarter ended March 31, 2015. Charge-offs for
the June 30, 2015 quarter related to three residential real estate
loans, net of a partial recovery from a private mortgage insurance
claim on a loan charged-off in a previous quarter.
Income Statement Review
Net interest income increased $176,000, or 2.8%, to $6.58
million for the quarter ended June 30, 2015 as compared to $6.40
million for quarter ended June 30, 2014, reflecting an increase of
$71.2 million in average net interest-earning assets, coupled with
an increase of 8 basis points in net interest margin.
The provision for loan losses decreased $65,000, or 47.1%, for
the first quarter ended June 30, 2015, as compared to the first
quarter of 2014. The decrease in the provision for loan losses for
the 2015 period was mainly the result of overall favorable trends
in qualitative factors related to delinquencies considered in the
periodic review of the general valuation allowance.
Non-interest income increased $166,000, or 47.7%, to $514,000
for the first quarter ended June 30, 2015 from $348,000 for the
first quarter ended June 30, 2014. The increase was mainly
attributable to an increase in income from bank owned life
insurance and a gain of $72,000 on sales of securities. Securities
totaling $1.9 million were sold during the quarter ended June 30,
2015, resulting in a gain of $72,000. No securities were sold in
the first quarter of 2014. The sale related to mortgage-backed
securities that had a small amount of principal remaining relative
to the principal balance purchased.
Non-interest expenses increased $378,000, or 9.1%, to $4.52
million for the first quarter ended June 30, 2015, as compared to
$4.14 million for the first quarter ended June 30, 2014. The
increase was driven by increases in salaries and employee benefits,
equipment expense and professional services. The increase in
salaries and employee benefits includes typical annual increases in
compensation and benefits expenses and costs related to the hiring
of additional personnel, as well as a related increase in employee
stock ownership plan expense. The increase in equipment expense for
the quarter ended June 30, 2015 related to the increase in costs
for the development and implementation of new products.
Professional services included an increase in legal fees primarily
related to the development and implementation of products and
services and the Bank’s branding and marketing efforts.
About Clifton Bancorp
Inc.
Clifton Bancorp Inc. is the holding company of Clifton Savings
Bank, a federally chartered savings bank headquartered in Clifton,
New Jersey. Clifton Savings Bank is an organization with dedicated
people serving communities, residents and businesses. Clifton
Savings operates 11 full-service banking offices located in the
diverse and vibrant Northeastern counties of New Jersey.
Forward-Looking
Statements
Clifton Bancorp makes forward-looking statements in this news
release. These forward-looking statements may include: statements
of goals, intentions, earnings expectations, and other
expectations; estimates of risks and of future costs and benefits;
assessments of probable loan and lease losses; assessments of
market risk; and statements of the ability to achieve financial and
other goals.
Forward-looking statements are typically identified by words
such as “believe,” “expect,” “anticipate,” “intend,” “outlook,”
“estimate,” “forecast,” “project” and other similar words and
expressions. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made.
Clifton Bancorp does not assume any duty and does not undertake to
update its forward-looking statements. Because forward-looking
statements are subject to assumptions and uncertainties, actual
results or future events could differ, possibly materially, from
those that Clifton Bancorp anticipated in its forward-looking
statements and future results could differ materially from
historical performance.
Clifton Bancorp’s forward-looking statements are subject to the
following principal risks and uncertainties: general economic
conditions and trends, either nationally or locally; conditions in
the securities markets; changes in interest rates; changes in
deposit flows, and in the demand for deposit, loan, and investment
products and other financial services; changes in real estate
values; changes in the quality or composition of the loan or
investment portfolios; changes in competitive pressures among
financial institutions or from non-financial institutions; the
ability to retain key members of management; changes in
legislation, regulations, and policies; and a variety of other
matters which, by their nature, are subject to significant
uncertainties. Clifton Bancorp provides greater detail regarding
some of these factors in the “Risk Factors” section of its Annual
Report on Form 10-K, which was filed on June 5, 2015. Clifton
Bancorp’s forward-looking statements may also be subject to other
risks and uncertainties, including those that it may discuss
elsewhere in this news release or in its filings with the SEC,
accessible on the SEC’s website at www.sec.gov.
Selected Consolidated Financial Condition Data
At June 30, At March 31, 2015
2015 (In thousands)
Financial Condition Data:
Total assets
$
1,152,707
$
1,186,924
Loans receivable, net 654,802 641,084 Cash and cash equivalents
23,498 49,308 Securities 395,386 418,875 Deposits 685,248 699,476
FHLB advances 107,500 107,500 Total stockholders' equity 347,764
368,001
Selected Consolidated Operating Data
Three Months Ended June 30, 2015
2014 (In thousands, except share and per share data)
Operating Data: Interest income $ 8,712 $ 8,712 Interest
expense 2,135 2,311 Net interest income
6,577 6,401 Provision for loan losses 73 138
Net interest income after provision for
loan losses
6,504 6,263 Non-interest income 514 348 Non-interest expenses
4,515 4,137 Income before income taxes
2,503 2,474 Income taxes 845 852 Net
income $ 1,658 $ 1,622 Basic and diluted earnings per
share $ 0.07 $ 0.06 Average shares outstanding
- basic 25,421 25,244 Average shares outstanding - diluted 25,494
25,413
Average Balance Table Three
Months Ended June 30, 2015 2014
Interest Interest Average
and Yield/ Average and Yield/
Balance
Dividends
Cost
Balance
Dividends
Cost
Assets: (Dollars in thousands) Interest-earning assets:
Loans receivable $
646,459
$
5,984
3.70 % $
597,112
$
5,676
3.80 % Mortgage-backed securities 279,074 1,942 2.78 % 306,831
2,365 3.08 % Investment securities 128,390 709 2.21 % 141,681 590
1.67 % Other interest-earning assets 34,236 77
0.90 % 50,128 81 0.65 % Total
interest-earning assets 1,088,159 8,712 3.20 %
1,095,752 8,712 3.18 % Non-interest-earning
assets 81,378 149,253
Total
assets $ 1,169,537 $
1,245,005 Liabilities and stockholders'
equity: Interest-bearing liabilities: Demand accounts $ 54,037
15 0.11 % $ 56,799 18 0.13 % Savings and Club accounts 141,798 58
0.16 % 143,501 63 0.18 % Certificates of deposit 482,464
1,500 1.24 % 533,040
1,636 1.23 % Total interest-bearing deposits 678,299 1,573
0.93 % 733,340 1,717 0.94 % FHLB Advances 107,500
562 2.09 % 131,250 594
1.81 % Total interest-bearing liabilities 785,799 2,135
1.09 % 864,590 2,311 1.07 %
Non-interest-bearing liabilities: Non-interest-bearing deposits
13,556 12,452 Other non-interest-bearing liabilities 11,699
13,281 Total non-interest-bearing liabilities
25,255 25,733 Total liabilities 811,054 890,323
Stockholders' equity 358,483 354,682
Total liabilities and stockholders' equity $
1,169,537 $ 1,245,005 Net
interest income $ 6,577 $ 6,401 Interest rate spread
2.11 % 2.11 % Net interest margin 2.42 % 2.34 %
Average interest-earning assets to average
interest-bearing liabilities
1.38 x 1.27 x
Asset Quality Data Three
Three Three Months Months
Months Ended Ended Ended June
30, March 31, June 30, 2015 2015
2014 (Dollars in thousands) Allowance for loan losses:
Allowance at beginning of period $ 3,475 $ 3,375 $ 3,071 Provision
for loan losses 73 100 138 Charge-offs (26 ) - (84 )
Recoveries 3 - - Net
charge-offs (23 ) - (84 ) Allowance at end of
period $ 3,525 $ 3,475 $ 3,125
Allowance for loan losses to total gross loans 0.54 % 0.54 % 0.51 %
Allowance for loan losses to nonperforming loans 66.01 % 61.53 %
57.12 %
At June 30, At March 31, At
June 30, 2015 2015 2014 (Dollars in
thousands) Nonperforming Assets: Nonaccrual loans: One- to
four-family real estate $ 4,258 $ 4,555 $ 5,188 Multi-family real
estate 574 581 - Commercial real estate 436 439 246 Consumer real
estate 72 73 37 Total
nonaccrual loans 5,340 5,648 5,471 Real estate owned -
- 124 Total nonperforming assets
$ 5,340 $ 5,648 $ 5,595 Total
nonperforming loans to total gross loans 0.81 % 0.88 % 0.89 % Total
nonperforming assets to total assets 0.46 % 0.48 % 0.45 %
Selected Consolidated Financial Ratios Three
Months Ended June 30,
Selected
Performance Ratios (1):
2015 2014 Return on average assets 0.57 % 0.52 %
Return on average equity 1.85 % 1.83 % Interest rate spread 2.11 %
2.11 % Net interest margin 2.42 % 2.34 % Non-interest expenses to
average assets 1.54 % 1.33 % Efficiency ratio (2) 63.67 % 61.30 %
Average interest-earning assets to average
interest-bearing liabilities
1.38x 1.27x Average equity to average assets 30.65 % 28.49 %
Dividend payout ratio 180.16 % 186.56 % Net change-offs to average
outstanding loans during the period 0.00 % 0.01 % (1)
Performance ratio are annualized. (2) Represents non-interest
expense divided by the sum of net interest income and non-interest
income including gains and losses on the sale of assets.
Quarterly Data Quarter Ended June 30,
March 31, December 31,
September 30, June 30,
2015
2015
2014
2014
2014
(In thousands except shares and per share data)
Operating
Data
Interest income $ 8,712 $ 8,558 $ 8,993 $ 8,899 $ 8,712 Interest
expense 2,135 2,157 2,249
2,317 2,311 Net interest income 6,577
6,401 6,744 6,582 6,401 Provision for loan losses 73
100 178 301 138
Net interest income after provision for
loan losses
6,504 6,301 6,566 6,281 6,263 Non-interest income 514 3,094 397 474
348 Non-interest expenses 4,515 4,362
4,075 4,532 4,137 Income
before income taxes 2,503 5,033 2,888 2,223 2,474 Income taxes
845 1,520 948 744
852 Net income $ 1,658 $ 3,513 $
1,940 $ 1,479 $ 1,622
Share
Data
Basic earnings per share $ 0.07 $ 0.14 $ 0.08 $ 0.06 $ 0.06 Diluted
earnings per share $ 0.07 $ 0.13 $ 0.08 $ 0.06 $ 0.06 Dividends per
share $ 0.12 $ 0.06 $ 0.06 $ 0.06 $ 0.12 Average shares outstanding
- basic 25,421 25,979 25,594 25,333 25,244 Average shares
outstanding - diluted 25,494 26,073 25,728 25,521 25,413 Shares
outstanding at period end 25,960 27,326 27,145 26,676 26,596
Financial
Condition Data
Total assets $ 1,152,707 $ 1,186,924 $ 1,198,171 $ 1,211,527 $
1,231,730 Loans receivable, net 654,802 641,084 628,872 617,024
610,950 Cash and cash equivalents 23,498 49,308 45,668 74,979
85,042 Securities 395,386 418,875 446,511 454,595 470,605 Deposits
685,248 699,476 711,486 731,070 736,557 FHLB advances 107,500
107,500 112,500 112,500 127,500 Total stockholders' equity 347,764
368,001 363,765 357,693 356,491
Assets
Quality:
Total nonperforming assets $ 5,340 $ 5,648 $ 3,994 $ 4,509 $ 5,595
Total nonperforming loans to total gross loans 0.81 % 0.88 % 0.63 %
0.73 % 0.89 % Total nonperforming assets to total assets 0.46 %
0.48 % 0.33 % 0.37 % 0.45 % Allowance for loan losses $ 3,525 $
3,475 $ 3,375 $ 3,250 $ 3,125 Allowance for loan losses to total
gross loans 0.54 % 0.54 % 0.54 % 0.53 % 0.51 % Allowance for loan
losses to nonperforming loans 66.01 % 61.53 % 84.50 % 72.08 % 57.12
%
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