Clifton Bancorp Inc. (Nasdaq: CSBK) (the “Company”), the holding
company for Clifton Savings Bank, today announced results for the
second quarter ended September 30, 2015. Net income for the second
quarter was $1.54 million ($0.06 per diluted share) as compared to
net income of $1.48 million ($0.06 per diluted share) for the
quarter ended September 30, 2014. Net income for the six months
ended September 30, 2015 was $3.20 million ($0.13 per diluted
share) as compared to $3.10 million ($0.12 per diluted share) for
the same period in 2014.
The Company also announced today that it has expanded its stock
repurchase program to acquire an additional 2,569,000 shares of the
Company’s outstanding common stock. Through October 27, 2015, the
Company has repurchased approximately 2,322,000 shares at a
weighted average share price of $13.81 per share. The expanded
repurchase program authorizes the Company to repurchase
approximately 10% of shares currently outstanding. Repurchases will
be made through open market purchases or through privately
negotiated transactions from time to time depending on market
conditions and other factors.
Notable Items
- Net loan portfolio growth of 5.6% since
March 31, 2015, and 3.4% since June 30, 2015;
- Nonperforming loans to total gross
loans decreased to 0.64% at September 30, 2015;
- The Compensation Committee of the
Company’s Board of Directors approved restricted stock and stock
option grants of approximately 512,000 and 1,109,000 shares,
respectively, during the quarter ended September 30, 2015; and
- 791,900 shares of common stock were
repurchased during the second quarter of 2015 at a weighted average
share price of $13.87.
Paul M. Aguggia, Chairman, President, and Chief Executive
Officer, stated, “We continue to build our core business to compete
more effectively in our markets. We are pleased to report
consistent quarterly income and stellar asset quality while we
invest in the Company operationally and through repurchases of our
shares.”
Balance Sheet and Credit Quality
Review
Total assets decreased $33.0 million, or 2.8%, to $1.15 billion
at September 30, 2015, from $1.19 billion at March 31, 2015. The
decrease in total assets was primarily due to a decrease in cash, a
significant amount of which was used to repurchase stock.
Net loans increased $36.2 million, or 5.7%, to $677.3 million at
September 30, 2015 from $641.1 million at March 31, 2015 primarily
due to growth in the residential real estate loan portfolio.
Securities decreased $39.3 million, or 9.4%, to $379.6 million at
September 30, 2015 from $418.9 million at March 31, 2015, mainly as
a result of calls, maturities and repayments on securities. Cash
and cash equivalents were mostly redeployed into loans. Securities
totaling $1.9 million were sold during the six months ended
September 30, 2015, resulting in a gain of $72,000. Cash and cash
equivalents decreased $31.4 million, or 63.8%, to $17.9 million at
September 30, 2015 from $49.3 million at March 31, 2015.
Deposits decreased $20.9 million, or 3.0%, to $678.6 million at
September 30, 2015 from $699.5 million at March 31, 2015, mainly
due to our continued management of the cost of funds by allowing
controlled, higher priced time deposit runoff. Borrowed funds
increased $16.5 million, or 15.4%, to $124.0 million at September
30, 2015 from $107.5 million at March 31, 2015, as borrowings were
utilized to fund loan growth. The outstanding borrowings as of
September 30, 2015 have an average rate of 2.03% and such
borrowings have an average term of 18 months. All outstanding
borrowings are with the Federal Home Loan Bank of New York.
Total stockholders’ equity decreased $29.7 million, or 8.1%, to
$338.3 million at September 30, 2015 from $368.0 million at March
31, 2015, primarily as a result of $31.4 million in repurchases of
common stock, and $4.5 million in cash dividends, partially offset
by net income of $3.2 million.
Non-accrual loans decreased $1.3 million, or 23.3%, to $4.3
million at September 30, 2015 from $5.6 million at March 31, 2015.
Included in non-accrual loans at September 30, 2015 were seven
loans totaling $1.2 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 0.64% at September 30, 2015
from 0.88% at March 31, 2015. The allowance for loan losses to
nonperforming loans increased to 83.72% at September 30, 2015 from
61.53% at March 31, 2015.
Income Statement Review
Net interest income decreased by $42,000, or 0.6%, to $6.54
million for the three months ended September 30, 2015 as compared
to $6.58 million for the three months ended September 30, 2014,
despite an increase of $15.1 million in average net
interest-earning assets, coupled with an increase of 9 basis points
in net interest margin.
Net interest income increased $134,000, or 1.0%, to $13.12
million for the six months ended September 30, 2015 as compared to
$12.98 million for the six months ended September 30, 2014,
reflecting an increase of $48.7 million in average net
interest-earning assets, coupled with an increase of 7 basis points
in net interest margin.
The provision for loan losses decreased $201,000, or 66.8%, to
$100,000 for the three months ended September 30, 2015, as compared
to $301,000 for the three months ended September 30, 2014, and
decreased $266,000, or 60.6%, to $173,000 for the six months ended
September 30, 2015, as compared to $439,000 for the six months
ended September 30, 2014. The decreases for the 2015 periods were
mainly the result of overall favorable trends in qualitative
factors related to delinquencies considered in the periodic review
of the general valuation allowance, and the decrease in
charge-offs.
Non-interest income decreased $22,000, or 4.6%, to $452,000 for
the three months ended September 30, 2015 from $474,000 for the
three months ended September 30, 2014, due to a decrease in fees
and service charges on loans and deposits. Non-interest income
increased $144,000, or 17.5%, to $966,000 for the six months ended
September 30, 2015 from $822,000 for the six months ended September
30, 2014. The increase was mainly attributable to an increase in
income from bank owned life insurance, net of a decrease in gains
on sales of securities. Securities available for sale totaling $1.9
million were sold during the six months ended September 30, 2015,
resulting in a gain of $72,000, while securities available for sale
totaling $1.0 million were sold during the six months ended
September 30, 2014, resulting in a gain of $102,000.
Non-interest expenses increased $48,000, or 1.1%, to $4.58
million for the three months ended September 30, 2015, as compared
to $4.53 million for the three months ended September 30, 2014.
Non-interest expenses increased $426,000, or 4.9%, to $9.10 million
for the six months ended September 30, 2015, as compared to $8.67
million for the six months ended September 30, 2014. The increase
for the six month period was driven by increases in salaries and
employee benefits and professional services, partially offset by a
decrease in directors’ compensation. 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 and expenses related to the granting of
equity awards under the 2015 Equity Incentive Plan. 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 as well as an increase in
consulting expense. The decrease in directors’ compensation in the
current year related to the prior year including a charge recorded
as a result of a lump sum payment from the directors’ retirement
plan.
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 September 30, At March 31, 2015
2015 (In thousands)
Financial Condition Data:
Total assets $ 1,153,895 $ 1,186,924 Loans receivable, net 677,286
641,084 Cash and cash equivalents 17,869 49,308 Securities 379,582
418,875 Deposits 678,624 699,476 FHLB advances 124,000 107,500
Total stockholders' equity 338,267 368,001
Selected Consolidated Operating Data
Three Months EndedSeptember
30,
Six Months EndedSeptember
30,
2015 2014 2015 2014 (In
thousands, except share and per share data)
Operating Data: Interest income $ 8,739 $ 8,899 $ 17,451 $
17,611 Interest expense 2,199 2,317 4,334
4,628 Net interest income 6,540 6,582 13,117 12,983
Provision for loan losses 100 301 173
439 Net interest income after provision for loan losses 6,440 6,281
12,944 12,544 Non-interest income 452 474 966 822 Non-interest
expenses 4,580 4,532 9,095 8,669 Income
before income taxes 2,312 2,223 4,815 4,697 Income taxes 772
744 1,617 1,596 Net income $ 1,540 $ 1,479 $
3,198 $ 3,101 Basic earnings per share $ 0.06 $ 0.06 $ 0.13 $ 0.12
Diluted earnings per share $ 0.06 $ 0.06 $ 0.13 $ 0.12
Average shares outstanding - basic 24,554 25,333 24,988 25,289
Average shares outstanding - diluted 24,608 25,521 25,052 25,467
Average Balance Table Three Months Ended
September 30, 2015 2014
AverageBalance
InterestandDividends
Yield/Cost
AverageBalance
InterestandDividends
Yield/Cost
Assets: (Dollars in thousands) Interest-earning assets:
Loans receivable $ 666,434 $ 6,090 3.66% $ 613,604 $ 5,799 3.78%
Mortgage-backed securities 273,417 1,899 2.78% 303,938 2,339 3.08%
Investment securities 116,350 678 2.33% 155,274 666 1.72% Other
interest-earning assets 21,280 72 1.35% 52,979
95 0.72% Total interest-earning assets 1,077,481
8,739 3.24% 1,125,795 8,899 3.16%
Non-interest-earning assets 77,426 101,666
Total
assets $ 1,154,907 $ 1,227,461
Liabilities and stockholders' equity:
Interest-bearing liabilities: Demand accounts $ 52,423 15 0.11% $
55,643 19 0.14% Savings and Club accounts 142,039 58 0.16% 139,394
61 0.18% Certificates of deposit 473,311 1,514 1.28%
528,996 1,645 1.24% Total interest-bearing deposits
667,773 1,587 0.95% 724,033 1,725 0.95% FHLB Advances
116,625 612 2.10% 123,750 592 1.91% Total
interest-bearing liabilities 784,398 2,199 1.12% 847,783
2,317 1.09% Non-interest-bearing liabilities:
Non-interest-bearing deposits 13,898 11,180 Other
non-interest-bearing liabilities 12,971 11,412 Total
non-interest-bearing liabilities 26,869 22,592
Total liabilities 811,267 870,375 Stockholders' equity
343,640 357,086
Total liabilities and stockholders'
equity $ 1,154,907 $ 1,227,461
Net interest income $ 6,540 $ 6,582 Interest rate spread
2.12% 2.07% Net interest margin 2.43% 2.34% Average
interest-earning assets to average interest-bearing liabilities
1.37x
1.33x
Six Months Ended September 30, 2015
2014
AverageBalance
InterestandDividends
Yield/Cost
AverageBalance
InterestandDividends
Yield/Cost
Assets: (Dollars in thousands) Interest-earning assets:
Loans receivable $ 656,681 $ 12,074 3.68% $ 604,559 $ 11,475 3.80%
Mortgage-backed securities 276,092 3,841 2.78% 304,918 4,704 3.09%
Investment securities 122,985 1,387 2.26% 146,552 1,256 1.71% Other
interest-earning assets 28,795 149 1.03%
50,454 176 0.70% Total interest-earning assets 1,084,553
17,451 3.22% 1,106,483 17,611 3.18%
Non-interest-earning assets 78,857 130,394
Total
assets $ 1,163,410 $ 1,236,877
Liabilities and stockholders' equity:
Interest-bearing liabilities: Demand accounts $ 53,107 30 0.11% $
56,243 37 0.13% Savings and Club accounts 141,918 116 0.16% 141,447
124 0.18% Certificates of deposit 478,253 3,014 1.26%
531,409 3,281 1.23% Total interest-bearing deposits
673,278 3,160 0.94% 729,099 3,442 0.94% FHLB Advances
112,714 1,174 2.08% 127,500 1,186 1.86% Total
interest-bearing liabilities 785,992 4,334 1.10% 856,599
4,628 1.08% Non-interest-bearing liabilities:
Non-interest-bearing deposits 13,701 11,967 Other
non-interest-bearing liabilities 12,184 12,513 Total
non-interest-bearing liabilities 25,885 24,480
Total liabilities 811,877 881,079 Stockholders' equity
351,533 355,798
Total liabilities and stockholders'
equity $ 1,163,410 $ 1,236,877
Net interest income $ 13,117 $ 12,983 Interest rate spread
2.12% 2.10% Net interest margin 2.42% 2.35% Average
interest-earning assets to average interest-bearing liabilities
1.38x
1.29x
Asset Quality Data
SixMonthsEndedSeptember 30,
YearEndedMarch
31,
2015 2015 (Dollars in thousands) Allowance for loan
losses: Allowance at beginning of period $ 3,475 $ 3,071 Provision
for loan losses 173 717 Charge-offs (26) (313) Recoveries
3 - Net charge-offs (23) (313)
Allowance at end of period $ 3,625 $ 3,475 Allowance for
loan losses to total gross loans 0.53% 0.54% Allowance for loan
losses to nonperforming loans 83.72% 61.53%
At
September 30, At March 31, 2015 2015
(Dollars in thousands) Nonperforming Assets: Nonaccrual loans: One-
to four-family real estate $ 3,452 $ 4,555 Multi-family real estate
568 581 Commercial real estate 192 439 Construction real estate 49
- Consumer real estate 69 73 Total nonaccrual loans
4,330 5,648 Real estate owned - - Total nonperforming
assets $ 4,330 $ 5,648 Total nonperforming loans to total
gross loans 0.64% 0.88% Total nonperforming assets to total assets
0.38% 0.48%
Selected Consolidated Financial
Ratios
Three Months EndedSeptember
30,
Six Months EndedSeptember
30,
Selected
Performance Ratios (1):
2015 2014 2015 2014
Return on average assets 0.53% 0.48% 0.55% 0.50% Return on average
equity 1.79% 1.66% 1.82% 1.74% Interest rate spread 2.12% 2.07%
2.12% 2.10% Net interest margin 2.43% 2.34% 2.42% 2.35%
Non-interest expenses to average assets 1.59% 1.48% 1.56% 1.40%
Efficiency ratio (2) 65.50% 64.23% 64.58% 62.80% Average
interest-earning assets to average interest-bearing liabilities
1.37x 1.33x 1.38x 1.29x Average equity to average assets 29.75%
29.09% 30.22% 28.77% Dividend payout ratio 95.06% 102.64% 139.15%
146.53% Net charge-offs to average ourtstanding loans during the
periods 0.00% 0.03% 0.00% 0.04%
(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
September 30,2015
June 30,2015
March 31,2015
December 31,2014
September 30,2014
(In thousands except shares and per share data)
Operating
Data
Interest income $ 8,739 $ 8,712 $ 8,558 $ 8,993 $ 8,899 Interest
expense 2,199 2,135 2,157 2,249
2,317 Net interest income 6,540 6,577 6,401 6,744 6,582 Provision
for loan losses 100 73 100 178
301 Net interest income after provision for loan losses 6,440 6,504
6,301 6,566 6,281 Non-interest income 452 514 3,094 397 474
Non-interest expenses 4,580 4,515 4,362
4,075 4,532 Income before income taxes 2,312 2,503 5,033
2,888 2,223 Income taxes 772 845 1,520
948 744 Net income $ 1,540 $ 1,658 $ 3,513 $ 1,940 $ 1,479
Share
Data
Basic earnings per share $ 0.06 $ 0.07 $ 0.14 $ 0.08 $ 0.06 Diluted
earnings per share $ 0.06 $ 0.07 $ 0.13 $ 0.08 $ 0.06 Dividends per
share $ 0.06 $ 0.12 $ 0.06 $ 0.06 $ 0.06 Average shares outstanding
- basic 24,554 25,421 25,979 25,594 25,333 Average shares
outstanding - diluted 24,608 25,494 26,073 25,728 25,521 Shares
outstanding at period end 25,745 25,960 27,326 27,145 26,676
Financial
Condition Data
Total assets $ 1,153,895 $ 1,152,707 $ 1,186,924 $ 1,198,171 $
1,211,527 Loans receivable, net 677,286 654,802 641,084 628,872
617,024 Cash and cash equivalents 17,869 23,498 49,308 45,668
74,979 Securities 379,582 395,386 418,875 446,511 454,595 Deposits
678,624 685,248 699,476 711,486 731,070 FHLB advances 124,000
107,500 107,500 112,500 112,500 Total stockholders' equity 338,267
347,764 368,001 363,765 357,693
Assets
Quality:
Total nonperforming assets $ 4,330 $ 5,340 $ 5,648 $ 3,994 $ 4,509
Total nonperforming loans to total gross loans 0.64% 0.81% 0.88%
0.63% 0.73% Total nonperforming assets to total assets 0.38% 0.46%
0.48% 0.33% 0.37% Allowance for loan losses $ 3,625 $ 3,525 $ 3,475
$ 3,375 $ 3,250 Allowance for loan losses to total gross loans
0.53% 0.54% 0.54% 0.54% 0.53% Allowance for loan losses to
nonperforming loans 83.72% 66.01% 61.53% 84.50% 72.08%
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151028006108/en/
For Clifton Bancorp Inc.Bart D’Ambra, 973-473-2200
Clifton Bancorp Inc. (MM) (NASDAQ:CSBK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Clifton Bancorp Inc. (MM) (NASDAQ:CSBK)
Historical Stock Chart
From Apr 2023 to Apr 2024