SI Financial Group, Inc. (the “Company”) (NASDAQ:SIFI), the holding
company of Savings Institute Bank and Trust Company (the “Bank”),
reported net income of $1.6 million, or $0.13 diluted earnings per
share, for the quarter ended September 30, 2016 versus
$974,000, or $0.08 diluted earnings per share, for the quarter
ended September 30, 2015. The Company reported net
income of $4.8 million, or $0.41 diluted earnings per share, for
the nine months ended September 30, 2016 compared to $2.9
million, or $0.24 diluted earnings per share, for the nine months
ended September 30, 2015.
Net interest income increased $278,000 to $10.2 million and $1.5
million to $30.5 million for the three and nine months ended
September 30, 2016, respectively, as compared to the same
periods in 2015. For both the three and nine months ended
September 30, 2016, net interest income increased as a result
of an increase in the average balance of loans and securities
outstanding and a reduction in the rate paid on borrowings,
partially offset by an increase in the average balance and the rate
paid on deposits. The average balance of FHLB borrowings
decreased for the three months ended September 30, 2016.
The provision for loan losses decreased $137,000 and increased
$61,000 for the three and nine months ended September 30,
2016, respectively, compared to the same periods in 2015. At
September 30, 2016, nonperforming loans decreased to $6.3
million, compared to $7.3 million at September 30, 2015,
resulting from decreases in nonperforming multi-family and
commercial real estate loans of $988,000 and nonperforming
residential real estate loans of $129,000, offset by an increase in
nonperforming commercial business loans of $111,000. Net loan
charge-offs were $53,000 and $165,000 for the three and nine months
ended September 30, 2016, respectively, compared to $208,000
and $263,000 for the three and nine months ended September 30,
2015, respectively.
Noninterest income decreased $93,000 to $2.7 million and
increased $248,000 to $7.9 million for the three and nine months
ended September 30, 2016, respectively, compared to the same
periods in 2015. Decreases in other noninterest income of
$368,000 and $136,000 for the three and nine months ended
September 30, 2016, respectively, was primarily a result of
profit distributions from our investment in two small business
investment companies during the same periods in 2015.
Services fees decreased $114,000 and $241,000 for the three and
nine months ended September 30, 2016, respectively, due to lower
overdraft charges and interchange fees. Mortgage banking
activities increased $364,000 and $756,000 for the three and nine
months ended September 30, 2016, respectively, versus the
comparable periods in 2015 as a result of increased volume and
gains on loans sold.
Noninterest expenses decreased $533,000 and $1.2 million for the
three and nine months ended September 30, 2016, respectively,
compared to the same periods in 2015. Marketing and
advertising expenses decreased $167,000 and $236,000 for the three
and nine months ended September 30, 2016, respectively, primarily
as a result of a realignment of marketing initiatives with
strategic goals of the Bank. A reduction in occupancy and
equipment of $146,000 and $544,000 for the three and nine months
ended September 30, 2016, respectively, versus the comparable
periods in 2015, was in large part a result of strategic plans to
reduce branch infrastructure costs, the reconfiguration and
optimization of our telephone and data services and lower snow
removal expenditures. Costs related to other real estate
operations decreased $106,000 and $265,000 for the three and nine
months ended September 30, 2016, respectively. During the
first nine months of 2016 compared to the same period in 2015,
salaries and employee benefits decreased by $246,000 due to lower
deferred compensation and equity award compensation expense,
partially offset by an increase of $143,000 in computer and
electronic banking services due to data service speed improvements
and electronic banking security enhancements related to the
implementation of EMV (Europay, MasterCard and VISA)
technology.
Total assets increased $56.2 million, or 3.8%, to $1.54 billion
at September 30, 2016, principally due to increases of $41.2
million in net loans receivable and $22.6 million in cash and cash
equivalents, offset by a decrease of $4.4 million in available for
sale securities and $1.1 million in loans held for sale. The
higher balance of net loans receivable reflects increases of $37.3
million, $29.2 million and $14.5 million in other commercial
business loans, multi-family and commercial real estate loans and
construction loans, respectively, offset by decreases of $20.4
million, $9.7 million and $9.2 million in SBA and USDA guaranteed,
timeshare and residential real estate loans, respectively.
Residential real estate, commercial business and commercial real
estate loan originations increased $7.3 million, $7.2 million and
$6.5 million, respectively, during the first nine months of 2016
compared to the same period in 2015.
Total liabilities increased $50.7 million, or 3.8%, to $1.38
billion at September 30, 2016 compared to $1.33 billion at
December 31, 2015. Deposits increased $78.9 million, or
7.5%, which included increases in certificates of deposit of $49.8
million, noninterest-bearing deposits of $15.1 million and NOW and
money market accounts of $13.2 million. Deposit growth
remained strong due to marketing and promotional initiatives and
competitively-priced deposit products. Borrowings decreased
$26.0 million from $242.8 million at December 31, 2015 to
$216.8 million at September 30, 2016, resulting from
repayments of Federal Home Loan Bank advances with funds from
excess deposits.
Total shareholders' equity increased $5.5 million from $154.3
million at December 31, 2015 to $159.8 million at
September 30, 2016. The increase in shareholders' equity
was attributable to net income of $4.8 million and an increase in
net unrealized gain on available for sale securities aggregating
$949,000 (net of taxes), partially offset by dividends declared of
$1.4 million. At September 30, 2016, the Bank’s
regulatory capital exceeded the amounts required for it to be
considered “well-capitalized” under applicable regulatory capital
guidelines.
“We continue to execute on our 2016 business plan as loan growth
and expense reductions are spearheading a significant year over
year improvement in earnings and tangible book value,” commented
Rheo A. Brouillard, President and Chief Executive Officer.
SI Financial Group, Inc. is the holding company for Savings
Institute Bank and Trust Company. Established in 1842,
Savings Institute Bank and Trust Company is a community-oriented
financial institution headquartered in Willimantic, Connecticut.
Through its twenty-five branch locations, the Bank offers a
full-range of financial services to individuals, businesses and
municipalities within its market area.
Forward-Looking StatementsThis release contains
“forward-looking statements” that are based on assumptions and may
describe future plans, strategies and expectations of the
Company. These forward-looking statements are generally
identified by the use of the words “believe,” “expect,” “intend,”
“anticipate,” “estimate,” “project” or similar expressions.
The Company’s ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Factors
that could have a material adverse effect on the operations of the
Company and its subsidiaries include, but are not limited to,
changes in market interest rates, regional and national economic
conditions, legislative and regulatory changes, monetary and fiscal
policies of the United States government, including policies of the
United States Treasury and the Federal Reserve Board, the quality
and composition of the loan or investment portfolios, demand for
loan products, deposit flows, competition, demand for financial
services in the Company’s market area, changes in the real estate
market values in the Company’s market area and changes in relevant
accounting principles and guidelines. For discussion of these
and other risks that may cause actual results to differ from
expectations, refer to the Company’s Annual Report on Form 10-K for
the year ended December 31, 2015, including the section
entitled “Risk Factors,” and subsequent Quarterly Reports on Form
10-Q filed with the SEC. These risks and uncertainties should be
considered in evaluating any forward-looking statements and undue
reliance should not be placed on such statements. Except as
required by applicable law or regulation, the Company does not
undertake, and specifically disclaims any obligation, to release
publicly the result of any revisions that may be made to any
forward-looking statements to reflect events or circumstances after
the date of the statements or to reflect the occurrence of
anticipated or unanticipated events.
SELECTED FINANCIAL CONDITION DATA: |
|
|
|
September 30, |
|
December 31, |
(In Thousands /
Unaudited) |
|
2016 |
|
2015 |
|
|
|
|
|
ASSETS |
|
|
|
|
Noninterest-bearing
cash and due from banks |
|
$ |
14,924 |
|
|
$ |
14,373 |
|
Interest-bearing cash
and cash equivalents |
|
48,433 |
|
|
26,405 |
|
Securities |
|
186,685 |
|
|
191,627 |
|
Loans held for
sale |
|
698 |
|
|
1,804 |
|
Loans receivable,
net |
|
1,206,532 |
|
|
1,165,372 |
|
Bank-owned life
insurance |
|
21,136 |
|
|
21,924 |
|
Premises and equipment,
net |
|
20,409 |
|
|
21,188 |
|
Intangible assets |
|
17,644 |
|
|
18,096 |
|
Deferred tax asset |
|
8,554 |
|
|
8,961 |
|
Other real estate
owned, net |
|
1,397 |
|
|
1,088 |
|
Other assets |
|
11,664 |
|
|
10,996 |
|
Total assets |
|
$ |
1,538,076 |
|
|
$ |
1,481,834 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Liabilities |
|
|
|
|
Deposits |
|
$ |
1,136,944 |
|
|
$ |
1,058,017 |
|
Borrowings |
|
216,836 |
|
|
242,843 |
|
Other liabilities |
|
24,471 |
|
|
26,644 |
|
Total liabilities |
|
1,378,251 |
|
|
1,327,504 |
|
|
|
|
|
|
Shareholders'
equity |
|
159,825 |
|
|
154,330 |
|
Total liabilities and shareholders'
equity |
|
$ |
1,538,076 |
|
|
$ |
1,481,834 |
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING DATA: |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
(In Thousands /
Unaudited) |
|
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
|
Interest and dividend
income |
|
$ |
12,703 |
|
$ |
12,217 |
|
|
$ |
38,020 |
|
$ |
35,477 |
|
Interest expense |
|
2,541 |
|
2,333 |
|
|
7,528 |
|
6,525 |
|
Net interest income |
|
10,162 |
|
9,884 |
|
|
30,492 |
|
28,952 |
|
|
|
|
|
|
|
|
Provision for loan
losses |
|
880 |
|
1,017 |
|
|
1,773 |
|
1,712 |
|
Net interest income after provision
for loan losses |
|
9,282 |
|
8,867 |
|
|
28,719 |
|
27,240 |
|
|
|
|
|
|
|
|
Noninterest income |
|
2,653 |
|
2,746 |
|
|
7,941 |
|
7,693 |
|
Noninterest
expenses |
|
9,612 |
|
10,145 |
|
|
29,458 |
|
30,612 |
|
Income before income taxes |
|
2,323 |
|
1,468 |
|
|
7,202 |
|
4,321 |
|
|
|
|
|
|
|
|
Income tax
provision |
|
767 |
|
494 |
|
|
2,377 |
|
1,421 |
|
Net income |
|
$ |
1,556 |
|
$ |
974 |
|
|
$ |
4,825 |
|
$ |
2,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING DATA - Concluded: |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
(Unaudited) |
|
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
$ |
0.08 |
|
|
$ |
0.41 |
|
$ |
0.24 |
|
Diluted |
|
$ |
0.13 |
|
$ |
0.08 |
|
|
$ |
0.41 |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
Basic |
|
11,815,313 |
|
11,793,218 |
|
|
11,802,574 |
|
12,036,573 |
|
Diluted |
|
11,868,647 |
|
11,814,931 |
|
|
11,859,943 |
|
12,065,058 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL RATIOS: |
|
|
At or For the |
|
|
At or For the |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
(Dollars in Thousands,
Except per Share Data / Unaudited) |
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios: (1) |
|
|
|
|
|
|
|
|
|
Return on average
assets |
0.41 |
|
% |
0.27 |
|
% |
|
0.43 |
|
% |
0.28 |
|
% |
Return on average
equity |
3.85 |
|
|
2.52 |
|
|
|
4.06 |
|
|
2.49 |
|
|
Interest rate
spread |
2.66 |
|
|
2.76 |
|
|
|
2.71 |
|
|
2.83 |
|
|
Net interest
margin |
2.83 |
|
|
2.91 |
|
|
|
2.88 |
|
|
2.97 |
|
|
Efficiency ratio
(2) |
75.33 |
|
|
80.41 |
|
|
|
76.76 |
|
|
83.87 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
|
|
|
$ |
11,471 |
|
|
$ |
9,246 |
|
|
Allowance for loan
losses as a percent of total loans (3) |
|
|
|
|
|
0.94 |
|
% |
0.80 |
|
% |
Allowance for loan
losses as a percent of nonperforming loans |
|
|
|
|
|
182.22 |
|
|
127.50 |
|
|
Nonperforming
loans |
|
|
|
|
|
$ |
6,295 |
|
|
$ |
7,252 |
|
|
Nonperforming loans as
a percent of total loans (3) |
|
|
|
|
|
0.52 |
|
% |
0.63 |
|
% |
Nonperforming assets
(4) |
|
|
|
|
|
$ |
7,692 |
|
|
$ |
8,593 |
|
|
Nonperforming assets as
a percent of total assets |
|
|
|
|
|
0.50 |
|
% |
0.59 |
|
% |
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
Book value per
share |
|
|
|
|
|
$ |
13.08 |
|
|
$ |
12.60 |
|
|
Less: Intangible assets
per share(5) |
|
|
|
|
|
(1.44 |
) |
|
(1.49 |
) |
|
Tangible book value per
share (5) |
|
|
|
|
|
11.64 |
|
|
11.11 |
|
|
Dividends declared per
share |
|
|
|
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
_________________________________________________ |
|
(1) Ratios
for the three and nine months have been annualized. |
(2)
Represents noninterest expenses divided by the sum of net interest
and noninterest income, less any realized gains or losses on the
sale of securities and other-than-temporary impairment on
securities. |
(3) Total
loans exclude deferred fees and costs. |
(4)
Nonperforming assets consist of nonperforming loans and other real
estate owned. |
(5)
Tangible book value per share equals book value per share less the
effect of intangible assets, which consisted of goodwill and other
intangibles of $17.6 million and $18.2 million at September 30,
2016 and 2015, respectively. |
|
CONTACT:
Catherine Pomerleau, Executive Assistant/Investor Relations Administrator
Email: investorrelations@banksi.com
(860) 456-6514
SI Financial Grp., Inc. (NASDAQ:SIFI)
Historical Stock Chart
From Mar 2024 to Apr 2024
SI Financial Grp., Inc. (NASDAQ:SIFI)
Historical Stock Chart
From Apr 2023 to Apr 2024