Clifton Bancorp Inc. (Nasdaq:CSBK) (the “Company”), the holding
company for Clifton Savings Bank, today announced results for the
quarter and year ended March 31, 2017. Net income for the quarter
was $1.25 million ($0.06 per share, basic and diluted) as compared
to net income of $878,000 ($0.04 per share, basic and diluted) for
the quarter ended March 31, 2016. Net income for the fiscal year
ended March 31, 2017 was $4.72 million ($0.21 per share, basic and
diluted) as compared to $5.40 million ($0.22 per share, basic and
diluted) for fiscal 2016.
The Board of Directors also announced today that the Company
will pay a cash dividend of $0.06 per common share for the quarter
ended March 31, 2017. The dividend will be paid on June 9, 2017 to
stockholders of record on May 26, 2017.
Notable Items
- Total assets increased 4.4% and 14.3%,
or $60.5 million and $178.7 million, during the three months and
fiscal year ended March 31, 2017, respectively;
- Loans receivable, net grew 7.6% and
29.2%, or $71.0 million and $227.6 million, during the three months
and fiscal year ended March 31, 2017, respectively;
- One-to-four family real estate loans
increased 9.0% and 13.7%, or $57.8 million and $84.7 million,
during the three months and fiscal year ended March 31, 2017,
respectively;
- Multi-family and commercial real estate
loans increased 4.5% and 91.6%, or $12.6 million and $140.8
million, during the three months and fiscal year ended March 31,
2017, respectively;
- Loan mix between one-to-four family
real estate, and multi-family and commercial real estate loans to
total loans shifted from 79.0% and 19.7%, respectively, at March
31, 2016 to 69.5% and 29.1%, respectively, at March 31, 2017;
- Nonperforming loans to total gross
loans decreased from 0.47% at March 31, 2016 to 0.41% at March 31,
2017;
- Deposits increased 5.2% and 21.6%, or
$41.5 million and $150.2 million, during the three months and
fiscal year ended March 31, 2017, respectively. Savings and
checking deposits to total deposits increased from 32.2% at March
31, 2016 to 33.9% at March 31, 2017; and
- The Company repurchased 478,800 shares
at a weighted average price of $16.05 during the three months ended
March 31, 2017. As of March 31, 2017, 1,039,747 shares remain
available for repurchase. Since the Board authorized its first post
second step conversion repurchase program on March 11, 2015, the
Company has repurchased 5,415,253 shares at a weighted average
price of $14.36 per share.
Paul M. Aguggia, Chairman, President, and Chief Executive
Officer, stated, “Our fiscal year 2017 results are highlighted by a
nearly 30% increase in our loan portfolio and over 20% growth in
deposits. Commercial and multi-family loans drove our loan growth
and now represent 29% of our total portfolio. Residential lending
remains an important business for us and grew 14% this past year.
Focused deposit gathering efforts resulted in a 28% increase in our
checking and savings products, advancing our multi-year mission to
transform our deposit mix. We also delivered on our commitment to
repurchase shares of our common stock at attractive prices as a
prudent way to deploy our excess capital. In summary, we are proud
of our fiscal year 2017 results and we look forward to continuing
to build a competitive franchise.”
Balance Sheet and Credit Quality
Review
Total assets increased $178.7 million, or 14.3%, to $1.43
billion at March 31, 2017 from $1.25 billion at March 31, 2016. The
increase in total assets was primarily due to an increase in
loans.
Net loans increased $227.6 million, or 29.2%, to $1.01 billion
at March 31, 2017 from $780.2 million at March 31, 2016.
One-to-four family real estate loans increased $84.7 million, or
13.7%, while multi-family and commercial real estate loans
increased $140.8 million, or 91.6%, during fiscal 2017. The
multi-family and commercial real estate loan total includes the
purchase of $10.0 million of such loans from a local financial
institution in February 2016. Securities, including both available
for sale and held to maturity issues, decreased $42.1 million, or
11.8%, to $315.3 million at March 31, 2017 from $357.5 million at
March 31, 2016, mainly because of calls, maturities and repayments.
One security totaling $3.7 million was sold during fiscal 2017,
resulting in a gain of $84,000. Cash and cash equivalents decreased
$16.4 million, or 52.8%, to $14.7 million at March 31, 2017 from
$31.1 million at March 31, 2016, as cash and cash flows were
redeployed largely into loans.
Deposits increased $150.2 million, or 21.6%, to $844.8 million
at March 31, 2017 from $694.7 million at March 31, 2016. Borrowed
funds increased $44.3 million, or 19.1%, to $275.8 million at March
31, 2017 from $231.5 million at March 31, 2016. The Company’s
outstanding borrowings at March 31, 2017 had a weighted average
rate of 1.74% and a weighted average term of 18 months. All
outstanding borrowings are with the Federal Home Loan Bank of New
York.
Total stockholders’ equity decreased $18.7 million, or 5.9%, to
$296.6 million at March 31, 2017 from $315.3 million at March 31,
2016, primarily as a result of $21.6 million in repurchases of
common stock, and the payment of $5.3 million in cash dividends,
partially offset by net income of $4.7 million.
Nonaccrual loans totaled $3.7 million at both March 31, 2017 and
2016. Included in nonaccrual loans at March 31, 2017 were six loans
totaling $1.1 million that were current or less than 90 days’
delinquent, but which were previously 90 days or more delinquent
and on nonaccrual status pending a sustained period of repayment
performance (generally six months). The percentage of nonperforming
loans to total gross loans decreased to 0.41% at March 31, 2017
from 0.47% at March 31, 2016. The allowance for loan losses to
nonperforming loans increased to 146.11% at March 31, 2017 from
119.19% at March 31, 2016, as loans grew, nonperforming loans
remained constant and provisions were added mainly due to
significant increases in loans outstanding.
Income Statement Review
Net interest income increased by $838,000, or 12.5%, to $7.5
million for the three months ended March 31, 2017 as compared to
$6.7 million for the three months ended March 31, 2016. Net
interest income increased despite a decrease of 8 basis points in
net interest margin and a decrease of $15.0 million in average net
interest-earning assets, primarily because other categories of
interest-earning assets were redeployed into the Bank’s highest
yielding asset category.
Net interest income increased by $2.4 million, or 9.2%, to $28.7
million for the year ended March 31, 2017 as compared to $26.2
million for year ended March 31, 2016. Net interest income
increased despite a decrease of 8 basis points in net interest
margin and a decrease of $33.6 million in average net
interest-earning assets, primarily because other categories of
interest-earning assets were redeployed into the Bank’s highest
yielding asset category.
The provision for loan losses decreased $162,000, or 23.0%, to
$541,000 for the three months ended March 31, 2017, as compared to
$703,000 for the three months ended March 31, 2016, and increased
$920,000, or 86.4%, to $1.99 million for the year ended March 31,
2017, as compared to $1.07 million for the year ended March 31,
2016. The decrease for the three months ended March 31, 2017 was
due to the large provision recorded in the 2016 three- month period
as a result of the purchase of a $36.5 million package of
commercial real estate loans from a local financial institution.
The increase in the provision for the year ended March 31, 2017 was
mainly because of the significant increases in the balance of
outstanding loans, partially offset by more favorable trends in
qualitative factors related to delinquencies considered in the
periodic reviews of the general valuation allowance.
Non-interest expenses for the three months ended March 31, 2017
increased $385,000, or 7.4%, to $5.56 million, as compared to $5.17
million for the three months ended March 31, 2016. The increase
consisted primarily of increases in salaries and employee benefits
of $360,000, or 11.6%, and occupancy expense of $117,000, or 27.9%,
partially offset by a decrease in directors’ compensation of
$91,000, or 26.3%. The increases in salaries and employee benefits
resulted from the hiring of lending and Hoboken and Montclair
Banking Center personnel. In addition, expenses reflect typical
annual increases in compensation and benefits expenses and employee
stock ownership plan expense due to an increase in the price of the
Company’s common stock. The increase in occupancy expense was
mainly related to the costs of the Hoboken and Montclair Banking
Centers. The decrease in directors’ compensation was related to the
retirement of a board member during the first fiscal quarter of
2016 and the shrinking of the board by one member at that time.
Non-interest expenses for the year ended March 31, 2017
increased $2.6 million, or 13.6%, to $21.7 million, as compared to
$19.1 million for the year ended March 31, 2016. The increase
consisted primarily of increases in salaries and employee benefits
of $2.1 million, or 18.5%, occupancy expense of $307,000, or 19.6%,
and advertising and marketing expense of $201,000, or 49.5%. The
increases in salaries and employee benefits and occupancy expense
was a result of the items noted above with respect to the quarterly
period. The increase in advertising and marketing expense was
mainly related to the costs to promote the Hoboken and Montclair
Banking Centers, as well as new products and services.
About Clifton Bancorp
Inc.
Clifton Bancorp Inc. is the holding company for Clifton Savings
Bank (CSBK), a federally chartered savings bank headquartered in
Clifton, New Jersey. CSBK is a metropolitan, community-focused bank
serving residents and small businesses in its market area through
12 full-service banking centers. For additional investor relations
information, including subscribing to email alerts, visit
cliftonbancorp.com.
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 8, 2016. 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 March
31, 2017 2016 (In thousands)
Financial
Condition Data: Total assets $ 1,431,803 $ 1,253,127 Loans
receivable, net 1,007,844 780,229 Cash and cash equivalents 14,653
31,069 Securities 315,348 357,462 Deposits 844,825 694,662 FHLB
advances 275,800 231,500 Total stockholders' equity 296,619 315,277
Selected Consolidated Operating Data Three
Months Ended March 31, Year Ended March 31,
2017 2016 2017 2016 (In thousands,
except per share data)
Operating Data: Interest income $
10,774 $ 9,158 $ 40,474 $ 35,345 Interest expense 3,246
2,468 11,813 9,102 Net interest income 7,528
6,690 28,661 26,243 Provision for loan losses 541 703
1,985 1,065 Net interest income after provision for
loan losses 6,987 5,987 26,676 25,178 Non-interest income 426 440
1,914 1,866 Non-interest expenses 5,558 5,173
21,702 19,101 Income before income taxes 1,855 1,254 6,888
7,943 Income taxes 609 376 2,166 2,542
Net income $ 1,246 $ 878 $ 4,722 $ 5,401 Basic earnings per share $
0.06 $ 0.04 $ 0.21 $ 0.22 Diluted earnings per share $ 0.06 $ 0.04
$ 0.21 $ 0.22 Average shares outstanding - basic 21,887
23,434 22,224 24,477 Average shares outstanding - diluted 22,025
23,479 22,315 24,533
Average Balance Table
Three Months Ended March 31,
2017 2016 Interest Interest
Average and Yield/ Average and
Yield/ Balance
Dividends Cost
Balance Dividends
Cost Assets: (Dollars in thousands)
Interest-earning assets: Loans receivable $ 969,850 $ 8,660 3.57 %
$ 739,496 $ 6,713 3.63 % Mortgage-backed securities 260,573 1,664
2.55 % 275,526 1,851 2.69 % Investment securities 55,095 262 1.90 %
81,566 495 2.43 % Other interest-earning assets 24,833
188 3.03 % 28,521 99 1.39 % Total
interest-earning assets 1,310,351 10,774 3.29 % 1,125,109
9,158 3.25 % Non-interest-earning assets
85,810 84,339
Total assets $ 1,396,161
$ 1,209,448 Liabilities and stockholders'
equity: Interest-bearing liabilities: Demand accounts $ 52,916
14 0.11 % $ 55,477 15 0.11 % Savings and Club accounts 202,302 224
0.44 % 141,844 75 0.21 % Certificates of deposit 537,519
1,880 1.40 % 464,519 1,541 1.33 % Total
interest-bearing deposits 792,737 2,118 1.07 % 661,840 1,631 0.99 %
FHLB Advances 264,725 1,128 1.70 % 195,375
837 1.71 % Total interest-bearing liabilities 1,057,462
3,246 1.23 % 857,215 2,468 1.15 %
Non-interest-bearing liabilities: Non-interest-bearing deposits
25,770 17,124 Other non-interest-bearing liabilities 11,764
12,067 Total non-interest-bearing liabilities 37,534
29,191 Total liabilities 1,094,996 886,406
Stockholders' equity 301,165 323,042
Total
liabilities and stockholders' equity $ 1,396,161
$ 1,209,448 Net interest income $ 7,528 $
6,690 Interest rate spread 2.06 % 2.10 % Net interest margin 2.30 %
2.38 % Average interest-earning assets to average interest-bearing
liabilities 1.24 x 1.31 x
Year Ended March 31,
2017 2016 Interest Interest
Average and Yield/ Average and
Yield/ Balance
Dividends Cost
Balance Dividends
Cost Assets: (Dollars in thousands)
Interest-earning assets: Loans receivable $ 885,053 $ 31,708 3.58 %
$ 687,670 $ 25,107 3.65 % Mortgage-backed securities 266,603 6,935
2.60 % 275,419 7,553 2.74 % Investment securities 60,475 1,212 2.00
% 104,447 2,363 2.26 % Other interest-earning assets 26,865
619 2.30 % 28,985 322 1.11 % Total
interest-earning assets 1,238,996 40,474 3.27 % 1,096,521
35,345 3.22 % Non-interest-earning assets
86,194 79,759
Total assets $ 1,325,190
$ 1,176,280 Liabilities and stockholders'
equity: Interest-bearing liabilities: Demand accounts $ 53,184
57 0.11 % $ 54,074 60 0.11 % Savings and Club accounts 186,411 742
0.40 % 141,174 254 0.18 % Certificates of deposit 504,990
7,051 1.40 % 472,152 6,085 1.29 % Total
interest-bearing deposits 744,585 7,850 1.05 % 667,400 6,399 0.96 %
FHLB Advances 240,800 3,963 1.65 % 141,885
2,703 1.91 % Total interest-bearing liabilities 985,385
11,813 1.20 % 809,285 9,102 1.12 %
Non-interest-bearing liabilities: Non-interest-bearing deposits
23,174 14,817 Other non-interest-bearing liabilities 10,858
11,689 Total non-interest-bearing liabilities 34,032
26,506 Total liabilities 1,019,417 835,791
Stockholders' equity 305,773 340,489
Total
liabilities and stockholders' equity $ 1,325,190
$ 1,176,280 Net interest income $ 28,661 $
26,243 Interest rate spread 2.07 % 2.10 % Net interest margin 2.31
% 2.39 % Average interest-earning assets to average
interest-bearing liabilities 1.26 x 1.35 x
Asset
Quality Data Year Ended
March 31, 2017 2016 (Dollars in thousands)
Allowance for loan losses: Allowance at beginning of period $ 4,360
$ 3,475 Provision for loan losses 1,985 1,065 Charge-offs
(247 ) (183 ) Recoveries 2 3 Net
charge-offs (245 ) (180 ) Allowance at end of period
$ 6,100 $ 4,360 Allowance for loan losses to
total gross loans 0.60 % 0.56 % Allowance for loan losses to
nonperforming loans 146.11 % 119.19 %
At March
31, 2017 2016 (Dollars in thousands)
Nonperforming Assets: Nonaccrual loans: One- to four-family real
estate $ 3,508 $ 3,412 Multi-family real estate - - Commercial real
estate 184 186 Consumer real estate - 60
Total nonaccrual loans 3,692 3,658 Accruing loans past due
90 days or more 483 - Total
nonperforming loans 4,175 3,658 Real estate owned 698
58 Total nonperforming assets $ 4,873 $ 3,716
Total nonperforming loans to total gross loans 0.41 %
0.47 % Total nonperforming assets to total assets 0.34 % 0.30 %
Selected Consolidated Financial Ratios
Three Months Ended March 31,
Year Ended March 31, Selected Performance Ratios (1):
2017
2016
2017
2016
Return on average assets 0.36 % 0.29 % 0.36 % 0.46 % Return on
average equity 1.65 % 1.09 % 1.54 % 1.59 % Interest rate spread
2.06 % 2.10 % 2.07 % 2.10 % Net interest margin 2.30 % 2.38 % 2.31
% 2.39 % Non-interest expenses to average assets 1.59 % 1.71 % 1.64
% 1.62 % Efficiency ratio (2) 69.88 % 72.55 % 70.98 % 67.95 %
Average interest-earning assets to average interest-bearing
liabilities 1.24x 1.31x 1.26x 1.35x Average equity to average
assets 21.57 % 26.71 % 23.07 % 28.95 % Dividend payout ratio 105.54
% 159.23 % 112.75 % 135.40 % Net charge-offs to average outstanding
loans during the period 0.01 % 0.05 % 0.03 % 0.03 %
(1)
Performance ratios 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 and disposal of assets.
Quarterly Data Quarter
Ended March 31, December 31,
September 30, June 30, March 31,
2017
2016
2016
2016
2016
(In thousands, except per share data)
Operating
Data
Interest income $ 10,774 $ 10,193 $ 9,916 $ 9,591 $ 9,158 Interest
expense 3,246 3,071 2,847
2,649 2,468 Net interest income 7,528
7,122 7,069 6,942 6,690 Provision for loan losses 541
413 505 526 703
Net interest income after provision for loan losses 6,987
6,709 6,564 6,416 5,987 Non-interest income 426 460 501 527 440
Non-interest expenses 5,558 5,354
5,311 5,479 5,173 Income
before income taxes 1,855 1,815 1,754 1,464 1,254 Income taxes
609 596 513 448
376 Net income $ 1,246 $ 1,219 $
1,241 $ 1,016 $ 878
Share
Data
Basic earnings per share $ 0.06 $ 0.06 $ 0.06 $ 0.04 $ 0.04 Diluted
earnings per share $ 0.06 $ 0.06 $ 0.06 $ 0.04 $ 0.04 Dividends per
share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.06 Average shares outstanding
- basic 21,887 22,020 22,216 22,775 23,434 Average shares
outstanding - diluted 22,025 22,150 22,276 22,834 23,479 Shares
outstanding at period end 22,549 23,046 23,086 23,576 24,000
Financial
Condition Data
Total assets $ 1,431,803 $ 1,371,265 $ 1,312,190 $ 1,285,825 $
1,253,127 Loans receivable, net 1,007,844 936,894 881,593 826,629
780,229 Cash and cash equivalents 14,653 22,277 22,758 30,140
31,069 Securities 315,348 319,163 317,147 338,624 357,462 Deposits
844,825 803,364 772,306 719,592 694,662 FHLB advances 275,800
252,500 224,500 244,000 231,500 Total stockholders' equity 296,619
303,098 302,890 309,487 315,277
Asset
Quality:
Total nonperforming assets $ 4,873 $ 4,171 $ 3,746 $ 3,481 $ 3,716
Total nonperforming loans to total gross loans 0.41 % 0.37 % 0.32 %
0.38 % 0.47 % Total nonperforming assets to total assets 0.34 %
0.30 % 0.29 % 0.27 % 0.30 % Allowance for loan losses $ 6,100 $
5,575 $ 5,200 $ 4,775 $ 4,360 Allowance for loan losses to total
gross loans 0.60 % 0.59 % 0.59 % 0.58 % 0.56 % Allowance for loan
losses to nonperforming loans 146.11 % 162.02 % 185.52 % 153.34 %
119.19 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170510006376/en/
Clifton Bancorp Inc.Michael Lesler, 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
