Clifton Bancorp Inc. (Nasdaq:CSBK) (the “Company”), the holding
company for Clifton Savings Bank (“CSBK”), today announced results
for the first quarter ended June 30, 2017. Net income for the first
quarter was $1.40 million ($0.07 per share, basic and diluted) as
compared to net income of $1.02 million ($0.04 per share, basic and
diluted) for the first quarter ended June 30, 2016.
The Board of Directors also announced today a cash dividend of
$0.06 per common share for the quarter ended June 30, 2017. The
dividend will be paid on or about August 25, 2017 to stockholders
of record on August 11, 2017.
Notable Items
- Net income increased by 37.9%, or
$385,000, to $1.40 million for the quarter ended June 30, 2017
compared to $1.02 million for the quarter ended June 30, 2016;
- Total assets increased 6.5%, or $93.2
million, during the quarter ended June 30, 2017;
- Loans receivable, net grew 6.6%, or
$66.9 million, during the quarter ended June 30, 2017;
- One-to-four family real estate loans
increased 2.0%, or $13.9 million, during the quarter ended June 30,
2017;
- Multi-family and commercial real estate
loans increased 17.8%, or $52.5 million, during the quarter ended
June 30, 2017;
- Loan mix between one-to-four family
real estate loans, and multi-family and commercial real estate
loans to total loans shifted to 66.5% and 32.2%, respectively, at
June 30, 2017 from 69.5% and 29.1%, respectively, at March 31,
2017;
- Deposits increased 5.6%, or $47.6
million, during the quarter ended June 30, 2017 with savings and
checking deposits to total deposits increasing to 35.9% at June 30,
2017 from 33.9% at March 31, 2017;
- Stockholders’ equity declined as a
percentage of total assets to 18.9% at June 30, 2017 from 20.7% at
March 31, 2017 and 24.1% at June 30, 2016; and
- The Company repurchased 246,400 shares
at a weighted average price of $16.18 during the quarter ended June
30, 2017. As of June 30, 2017, 793,347 shares remain available for
repurchase under the Company’s previously announced stock
repurchase program. Since the Company commenced its first post
second-step conversion repurchase program on April 1, 2015, it has
repurchased 5,661,653 shares at a weighted average price of $14.44
per share.
Paul M. Aguggia, Chairman and Chief Executive Officer, stated,
“We created momentum in the first quarter of our new fiscal year
and we look forward to building on several positive trends. Our net
income grew 38% over our first quarter one year ago. Our strategic
focus on organic growth led to meaningful deposit and loan
increases year over year and in the first quarter. We returned
capital to our shareholders through the continuation of our
repurchase program and regular dividend, as well as a special
dividend paid in July 2017 and recorded in the first quarter. In
short, we are competing effectively in desirable and competitive
markets that continue to challenge our margin but also give us real
opportunities to grow prudently and profitably.”
Balance Sheet and Credit Quality
Review
Total assets increased $93.2 million, or 6.5%, to $1.53 billion
at June 30, 2017, from $1.43 billion at March 31, 2017. The
increase in total assets was primarily due to an increase in cash
and cash equivalents and loans.
Net loans increased $66.9 million, or 6.6%, to $1.07 billion at
June 30, 2017, from $1.01 billion at March 31, 2017. One-to-four
family real estate loans increased $13.9 million, or 2.0%, while
multi-family and commercial real estate loans increased $52.5
million, or 17.8%, during the quarter ended June 30, 2017.
Securities, including both available for sale and held to maturity
issues, decreased $11.2 million, or 3.6%, to $304.1 million at June
30, 2017, from $315.3 million at March 31, 2017, mainly because of
maturities and repayments. Cash and cash equivalents increased
$33.6 million, or 229.5%, to $48.3 million at June 30, 2017, from
$14.7 million at March 31, 2017, as a portion of cash flows from
deposits and borrowed funds were not yet redeployed into higher
yielding assets.
Deposits increased $47.6 million, or 5.6%, to $892.4 million at
June 30, 2017 from $844.8 million at March 31, 2017. CSBK launched
a new, high-yielding checking account in May 2017 that was
responsible for a significant percentage of the quarter’s deposit
growth. Borrowed funds increased $49.0 million, or 17.8%, to $324.8
million at June 30, 2017 from $275.8 million at March 31, 2017. The
Company’s outstanding borrowings at June 30, 2017 had a weighted
average rate of 1.77% and a weighted average term of 19 months. All
outstanding borrowings are with the Federal Home Loan Bank of New
York.
Total stockholders’ equity decreased $8.5 million, or 2.9%, to
$288.1 million at June 30, 2017 from $296.6 million at March 31,
2017, primarily as a result of $4.0 million in repurchases of
common stock, and the payment of $6.6 million in cash dividends,
which included the impact of the July 2017 $0.25 special dividend
totaling $5.3 million, partially offset by net income of $1.4
million.
Nonaccrual loans increased $223,000, or 6.0%, to $3.9 million at
June 30, 2017 as compared to $3.7 million at March 31, 2017.
Included in nonaccrual loans at June 30, 2017 were five loans
totaling $1.0 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 0.40% at June 30, 2017 from
0.41% at March 31, 2017. The allowance for loan losses to
nonperforming loans increased to 155.38% at June 30, 2017, from
146.11% at March 31, 2017 as nonperforming one-to-four family loans
increased slightly and provisions were added (mainly due to
significant increases in loans outstanding).
Income Statement Review
Net interest income increased by $947,000, or 13.6%, to $7.9
million for the quarter ended June 30, 2017, as compared to $6.9
million for the quarter ended June 30, 2016. Net interest income
increased despite a decrease of 8 basis points in net interest
margin and a decrease of $6.7 million in average net
interest-earning assets, primarily due to other categories of
interest-earning assets being redeployed into CSBK’s highest
yielding asset category (multi-family and commercial loans).
The provision for loan losses increased $64,000, or 12.2%, to
$590,000 for the quarter ended June 30, 2017, as compared to
$526,000 for the quarter ended June 30, 2016. The increase was
mainly due to the significant growth in the balance of outstanding
loans, partially offset by slightly more favorable trends in
qualitative factors considered in the periodic reviews of the
general valuation allowance.
Non-interest income for the quarter ended June 30, 2017
decreased $80,000, or 15.2%, to $447,000, as compared to $527,000
for the quarter ended June 30, 2016, as the 2016 period included a
$84,000 gain on the sale of securities. There were no sales of
securities in the 2017 period.
Non-interest expenses for the quarter ended June 30, 2017
increased $133,000, or 2.4%, to $5.6 million, as compared to $5.5
million for the quarter ended June 30, 2016. The increase consisted
primarily of increases in advertising and marketing expenses of
$81,000, or 52.9%, and occupancy expenses of $43,000, or 10.3%,
partially offset by a decrease in federal deposit insurance premium
of $43,000, or 31.2%. The increase in advertising and marketing
expenses was mainly related to the costs to promote CSBK’s recently
opened Hoboken and Montclair banking centers, as well as the new
checking account product referenced above. The increase in
occupancy expenses was mainly related to operational costs of the
Hoboken and Montclair banking centers. The decrease in federal
deposit insurance premium in the 2017 period was due to the
revision of the FDIC assessment system, which began on July 1,
2016, and is not reflected in the 2016 period expenses. Revisions
for “small institutions” (under $10 billion in assets) resulted in,
among other things, a change in the financial ratios method used to
determine assessment rates.
Income taxes for the quarter ended June 30, 2017 increased
$285,000, or 63.6%, to $733,000, as compared to $448,000 for the
quarter ended June 30, 2016. The increase resulted from higher
pre-tax income, coupled with an increase in the effective income
tax rate. The overall effective income tax rate was 34.3% for the
2017 period compared with 30.6% for the 2016 period, as non-taxable
interest from municipal securities and bank-owned life insurance
represented a smaller portion of overall income.
About Clifton Bancorp
Inc.
Clifton Bancorp Inc. is the holding company for CSBK (Clifton
Savings Bank), a federally chartered savings bank headquartered in
Clifton, New Jersey. CSBK is a metropolitan, community-focused bank
serving residents and 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, 2017. 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, 2017 2017 (In
thousands)
Financial Condition Data: Total assets $
1,525,028 $ 1,431,803 Loans receivable, net 1,074,748 1,007,844
Cash and cash equivalents 48,280 14,653 Securities 304,060 315,348
Deposits 892,414 844,825 FHLB advances 324,800 275,800 Total
stockholders' equity 288,152 296,619
Selected Consolidated Operating
Data Three Months Ended June 30, 2017
2016 (In thousands, except share and per share
data)
Operating Data: Interest income $ 11,486 $ 9,591
Interest expense 3,597 2,649 Net interest income
7,889 6,942 Provision for loan losses 590 526 Net
interest income after provision for loan losses 7,299 6,416
Non-interest income 447 527 Non-interest expenses 5,612
5,479 Income before income taxes 2,134 1,464 Income taxes
733 448 Net income $ 1,401 $ 1,016 Basic and diluted
earnings per share $ 0.07 $ 0.04 Average shares outstanding
- basic 21,369 22,775 Average shares outstanding - diluted 21,525
22,834
Average Balance
Table Three Months Ended June 30, 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 $ 1,037,492 $ 9,389 3.62 % $ 800,628 $ 7,218 3.61
% Mortgage-backed securities 252,348 1,617 2.56 % 273,455 1,843
2.70 % Investment securities 56,697 271 1.91 % 72,466 408 2.25 %
Other interest-earning assets 40,061 209 2.09 %
31,010 122 1.57 % Total interest-earning assets
1,386,598 11,486 3.31 % 1,177,559 9,591 3.26 %
Non-interest-earning assets 86,684 86,754
Total
assets $ 1,473,282 $ 1,264,313
Liabilities and stockholders' equity:
Interest-bearing liabilities: Demand accounts $ 63,874 48 0.30 % $
53,322 14 0.11 % Savings and Club accounts 207,973 234 0.45 %
163,708 127 0.31 % Certificates of deposit 563,586
2,016 1.43 % 473,847 1,620 1.37 % Total
interest-bearing deposits 835,433 2,298 1.10 % 690,877 1,761 1.02 %
FHLB Advances 302,075 1,299 1.72 % 230,875
888 1.54 % Total interest-bearing liabilities 1,137,508
3,597 1.26 % 921,752 2,649 1.15 %
Non-interest-bearing liabilities: Non-interest-bearing deposits
28,540 18,834 Other non-interest-bearing liabilities 14,354
10,500 Total non-interest-bearing liabilities 42,894 29,334
Total liabilities 1,180,402 951,086 Stockholders' equity
292,880 313,227
Total liabilities and
stockholders' equity $ 1,473,282 $
1,264,313 Net interest income $ 7,889 $ 6,942
Interest rate spread 2.05 % 2.11 % Net interest margin 2.28 % 2.36
% Average interest-earning assets to average interest-bearing
liabilities 1.22 x 1.28 x
Asset Quality Data Three
Three Months Year Months Ended
Ended Ended June 30, March 31, June
30, 2017 2017 2016 (Dollars in thousands)
Allowance for loan losses: Allowance at beginning of period $ 6,100
$ 4,360 $ 4,360 Provision for loan losses 590 1,985 526
Charge-offs (1 ) (247 ) (112 ) Recoveries 11 2
1 Net recoveries (charge-offs) 10
(245 ) (111 ) Allowance at end of period $
6,700 $ 6,100 $ 4,775 Allowance for
loan losses to total gross loans 0.62 % 0.60 % 0.58 % Allowance for
loan losses to nonperforming loans 155.38 % 146.11 % 153.34 %
At June 30, At March 31, At June
30, 2017 2017 2016 Nonperforming Assets:
(Dollars in thousands) Nonaccrual loans: One- to four-family real
estate $ 3,731 $ 3,508 $ 2,929 Commercial real estate 184
184 185 Total nonaccrual loans
3,915 3,692 3,114 Accruing loans past due 90 days or more
397 483 - 4,312 4,175 3,114 Real
estate owned 837 698 367
Total nonperforming assets $ 5,149 $ 4,873 $ 3,481
Total nonperforming loans to total gross loans 0.40 %
0.41 % 0.38 % Total nonperforming assets to total assets 0.34 %
0.34 % 0.27 %
Selected Consolidated Financial Ratios Three Months
Ended June 30,
Selected
Performance Ratios (1):
2017 2016 Return on average assets 0.38% 0.32% Return
on average equity 1.91% 1.30% Interest rate spread 2.05% 2.11% Net
interest margin 2.28% 2.36% Non-interest expenses to average assets
1.52% 1.73% Efficiency ratio (2) 67.32% 73.36% Average
interest-earning assets to average interest-bearing liabilities
1.22x 1.28x Average equity to average assets 19.88% 24.77% Dividend
payout ratio (3) 471.02% 134.15% Net charge-offs to average
outstanding loans during the period 0.00% 0.06% (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. (3) Includes impact of $0.25 special dividend paid in July
2017.
Quarterly Data
Quarter Ended June 30, March 31, December
31, September 30, June 30,
2017
2017
2016
2016
2016
(In thousands except shares and per share data)
Operating
Data
Interest income $ 11,486 $ 10,774 $ 10,193 $ 9,916 $ 9,591 Interest
expense 3,597 3,246 3,071
2,847 2,649 Net interest income 7,889
7,528 7,122 7,069 6,942 Provision for loan losses 590
541 413 505 526
Net interest income after provision for loan losses 7,299
6,987 6,709 6,564 6,416 Non-interest income 447 426 460 501 527
Non-interest expenses 5,612 5,558
5,354 5,311 5,479 Income
before income taxes 2,134 1,855 1,815 1,754 1,464 Income taxes
733 609 596 513
448 Net income $ 1,401 $ 1,246 $
1,219 $ 1,241 $ 1,016
Share
Data
Basic earnings per share $ 0.07 $ 0.06 $ 0.06 $ 0.06 $ 0.04 Diluted
earnings per share $ 0.07 $ 0.06 $ 0.06 $ 0.06 $ 0.04 Dividends per
share $ 0.31 $ 0.06 $ 0.06 $ 0.06 $ 0.06 Average shares outstanding
- basic 21,369 21,887 22,020 22,216 22,775 Average shares
outstanding - diluted 21,525 22,025 22,150 22,276 22,834 Shares
outstanding at period end 22,299 22,549 23,046 23,086 23,576
Financial
Condition Data
Total assets $ 1,525,028 $ 1,431,803 $ 1,371,265 $ 1,312,190 $
1,285,825 Loans receivable, net 1,074,748 1,007,844 936,894 881,593
826,629 Cash and cash equivalents 48,280 14,653 22,277 22,758
30,140 Securities 304,060 315,348 319,163 317,147 338,624 Deposits
892,414 844,825 803,364 772,306 719,592 FHLB advances 324,800
275,800 252,500 224,500 244,000 Total stockholders' equity 288,152
296,619 303,098 302,890 309,487
Assets
Quality:
Total nonperforming assets $ 5,149 $ 4,873 $ 4,171 $ 3,746 $ 3,481
Total nonperforming loans to total gross loans 0.40 % 0.41 % 0.37 %
0.32 % 0.38 % Total nonperforming assets to total assets 0.34 %
0.34 % 0.30 % 0.29 % 0.27 % Allowance for loan losses $ 6,700 $
6,100 $ 5,575 $ 5,200
$
4,775 Allowance for loan losses to total gross loans 0.62 % 0.60 %
0.59 % 0.59 % 0.58 % Allowance for loan losses to nonperforming
loans 155.38 % 146.11 % 162.02 % 185.52 % 153.34 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170726005399/en/
Clifton Bancorp Inc.Michael Lesler, 973-473-2200
Clifton Bancorp Inc. (MM) (NASDAQ:CSBK)
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