SI Financial Group, Inc. (the “Company”) (NASDAQ:SIFI), the holding
company of Savings Institute Bank and Trust Company (the “Bank”),
reported net income of $1.7 million, or $0.15 diluted earnings per
share, for the quarter ended June 30, 2016 versus $1.0
million, or $0.08 diluted earnings per share, for the quarter ended
June 30, 2015. The Company reported net income of $3.3
million, or $0.28 diluted earnings per share, for the six months
ended June 30, 2016 compared to $1.9 million, or $0.16 diluted
earnings per share, for the six months ended June 30, 2015.
Net interest income increased $511,000 to $10.2 million and $1.3
million to $20.3 million for the three and six months ended
June 30, 2016, respectively, as compared to the same periods
in 2015. 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 of deposits and borrowings and
the rate paid on deposits.
The provision for loan losses increased $222,000 and $198,000
for the three and six months ended June 30, 2016, respectively,
compared to the same periods in 2015, primarily due to increases in
nonperforming loans and loan charge-offs. At June 30,
2016, nonperforming loans increased to $7.0 million, compared to
$5.9 million at June 30, 2015, resulting from increases in
commercial real estate loans of $2.0 million and home equity loans
of $233,000, offset by decreases in nonperforming commercial
business loans of $858,000 and nonperforming residential loans of
$253,000. Net loan charge-offs were $72,000 and $113,000 for
the three and six months ended June 30, 2016, respectively,
compared to $5,000 and $55,000 for the three and six months ended
June 30, 2015, respectively.
Noninterest income decreased $24,000 to $2.6 million for the
three months ended June 30, 2016 compared to the same period in
2015, primarily due to decreases in the net gain on available for
sale securities of $132,000 and service fees of $123,000, offset by
an increase in mortgage banking activities of $269,000. For
the six months ended June 30, 2016, noninterest income increased
$341,000 to $5.3 million versus the comparable period in the prior
year. Increases of $392,000 in mortgage banking activities
due to a higher volume of loan sales and $232,000 in other
noninterest income as a result of profit distributions from our
small business investment companies contributed to the higher
noninterest income in the first half of 2016.
Noninterest expenses decreased $826,000 and $621,000 for the
three and six months ended June 30, 2016, respectively, compared to
the same periods in 2015. Salaries and employee benefits
decreased $486,000 and $252,000 for the three and six months ended
June 30, 2016, respectively, compared to the same periods in
2015 primarily as a result of a reduction in deferred compensation
due to a post-retirement benefit payout. A reduction in
occupancy and equipment expenses of $88,000 and $398,000 for the
three and six months ended June 30, 2016, respectively, versus the
comparable periods in 2015, was in large part a result of strategic
initiatives to reduce branch infrastructure costs, the
reconfiguration and optimization of our telephone and data services
and lower snow removal expenditures. Computer and electronic
banking services increased $189,000 for the first six months of
2016 compared to the same period in 2015 resulting from data
service speed improvements and electronic banking security
enhancements related to the implementation of EMV (Europay,
MasterCard and Visa) technology.
Total assets increased $35.8 million, or 2.4%, to $1.52 billion
at June 30, 2016, principally due to increases of $33.8
million in cash and cash equivalents, $13.0 million in available
for sale securities and $3.3 million in loans held for sale, offset
by reductions of $11.6 million in net loans receivable and $924,000
in bank-owned life insurance. The lower balance of net loans
receivable reflects decreases in SBA and USDA guaranteed loans of
$14.8 million, residential mortgage loans of $7.2 million and time
share loans of $6.3 million, offset by increases in construction
loans of $10.0 million and multi-family and commercial real estate
loans of $7.7 million. Multi-family and commercial real
estate, commercial business and residential real estate loan
originations decreased $7.3 million, $5.2 million and $4.5 million,
respectively, during the first half of 2016 compared to the same
period in 2015. The reduction in bank-owned life insurance
related to a death benefit payment.
Total liabilities increased $31.3 million, or 2.4%, to $1.36
billion at June 30, 2016 compared to $1.33 billion at
December 31, 2015. Deposits increased $58.8 million, or
5.6%, which included increases in certificates of deposit of $43.1
million, NOW and money market accounts of $7.9 million and
noninterest-bearing deposits of $5.9 million. Deposit growth
remained strong due to marketing and promotional initiatives and
competitively-priced deposit products. Borrowings decreased
$26.7 million from $242.8 million at December 31, 2015 to
$216.2 million at June 30, 2016, resulting from repayments of
Federal Home Loan Bank advances, with funds from excess
deposits.
Total shareholders' equity increased $4.5 million from $154.3
million at December 31, 2015 to $158.8 million at
June 30, 2016. The increase in shareholders' equity was
attributable to net income of $3.3 million and an increase in net
unrealized gain on available for sale securities aggregating $1.4
million (net of taxes), partially offset by dividends declared of
$945,000. At June 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 control costs and improve key financial
measures, including earnings per share, return on assets and the
efficiency ratio. Also, during the quarter, we replaced all
of our customers' debit cards with chip enabled EMV technology,
which will improve security and reduce potential fraud for our
customers and the Company,” 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: |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
(In Thousands /
Unaudited) |
|
2016 |
|
2015 |
|
|
|
|
|
ASSETS |
|
|
|
|
Noninterest-bearing
cash and due from banks |
|
$ |
14,069 |
|
|
$ |
14,373 |
|
Interest-bearing cash
and cash equivalents |
|
60,470 |
|
|
26,405 |
|
Securities |
|
204,127 |
|
|
191,627 |
|
Loans held for
sale |
|
5,146 |
|
|
1,804 |
|
Loans receivable,
net |
|
1,153,748 |
|
|
1,165,372 |
|
Bank-owned life
insurance |
|
21,000 |
|
|
21,924 |
|
Premises and equipment,
net |
|
20,460 |
|
|
21,188 |
|
Intangible assets |
|
17,795 |
|
|
18,096 |
|
Deferred tax asset |
|
8,344 |
|
|
8,961 |
|
Other real estate
owned, net |
|
1,166 |
|
|
1,088 |
|
Other assets |
|
11,292 |
|
|
10,996 |
|
Total assets |
|
$ |
1,517,617 |
|
|
$ |
1,481,834 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Liabilities |
|
|
|
|
Deposits |
|
$ |
1,116,832 |
|
|
$ |
1,058,017 |
|
Borrowings |
|
216,162 |
|
|
242,843 |
|
Other liabilities |
|
25,808 |
|
|
26,644 |
|
Total liabilities |
|
1,358,802 |
|
|
1,327,504 |
|
|
|
|
|
|
Shareholders'
equity |
|
158,815 |
|
|
154,330 |
|
Total liabilities and shareholders'
equity |
|
$ |
1,517,617 |
|
|
$ |
1,481,834 |
|
SELECTED OPERATING DATA: |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In Thousands /
Unaudited) |
|
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
|
Interest and dividend
income |
|
$ |
12,675 |
|
$ |
11,790 |
|
|
$ |
25,317 |
|
$ |
23,260 |
|
Interest expense |
|
2,519 |
|
2,145 |
|
|
4,987 |
|
4,192 |
|
Net interest income |
|
10,156 |
|
9,645 |
|
|
20,330 |
|
19,068 |
|
|
|
|
|
|
|
|
Provision for loan
losses |
|
582 |
|
360 |
|
|
893 |
|
695 |
|
Net interest income after provision
for loan losses |
|
9,574 |
|
9,285 |
|
|
19,437 |
|
18,373 |
|
|
|
|
|
|
|
|
Noninterest income |
|
2,586 |
|
2,610 |
|
|
5,288 |
|
4,947 |
|
Noninterest
expenses |
|
9,580 |
|
10,406 |
|
|
19,846 |
|
20,467 |
|
Income before income taxes |
|
2,580 |
|
1,489 |
|
|
4,879 |
|
2,853 |
|
|
|
|
|
|
|
|
Income tax
provision |
|
852 |
|
484 |
|
|
1,610 |
|
927 |
|
Net income |
|
$ |
1,728 |
|
$ |
1,005 |
|
|
$ |
3,269 |
|
$ |
1,926 |
|
SELECTED OPERATING DATA - Concluded: |
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(Unaudited) |
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
Basic |
$ |
0.15 |
|
$ |
0.08 |
|
|
$ |
0.28 |
|
$ |
0.16 |
|
Diluted |
$ |
0.15 |
|
$ |
0.08 |
|
|
$ |
0.28 |
|
$ |
0.16 |
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
Basic |
11,803,156 |
|
12,006,510 |
|
|
11,796,099 |
|
12,160,268 |
|
Diluted |
11,861,969 |
|
12,031,613 |
|
|
11,855,485 |
|
12,192,140 |
|
SELECTED FINANCIAL RATIOS: |
|
|
|
|
|
|
|
At or For the |
|
|
At or For the |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
(Dollars in Thousands,
Except per Share Data / Unaudited) |
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios: |
|
|
|
|
|
|
|
|
|
Return on average
assets (1) |
0.46 |
|
% |
0.29 |
|
% |
|
0.44 |
|
% |
0.28 |
|
% |
Return on average
equity (1) |
4.38 |
|
|
2.60 |
|
|
|
4.17 |
|
|
2.48 |
|
|
Interest rate
spread |
2.70 |
|
|
2.84 |
|
|
|
2.73 |
|
|
2.86 |
|
|
Net interest
margin |
2.86 |
|
|
2.98 |
|
|
|
2.88 |
|
|
3.00 |
|
|
Efficiency ratio
(2) |
75.18 |
|
|
85.84 |
|
|
|
77.47 |
|
|
85.70 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
|
|
|
$ |
10,643 |
|
|
$ |
8,437 |
|
|
Allowance for loan
losses as a percent of total loans (3) |
|
|
|
|
|
0.92 |
|
% |
0.76 |
|
% |
Allowance for loan
losses as a percent of nonperforming loans |
|
|
|
|
|
152.50 |
|
|
143.07 |
|
|
Nonperforming
loans |
|
|
|
|
|
$ |
6,979 |
|
|
$ |
5,897 |
|
|
Nonperforming loans as
a percent of total loans (3) |
|
|
|
|
|
0.60 |
|
% |
0.53 |
|
% |
Nonperforming assets
(4) |
|
|
|
|
|
$ |
8,145 |
|
|
$ |
7,317 |
|
|
Nonperforming assets as
a percent of total assets |
|
|
|
|
|
0.54 |
|
% |
0.52 |
|
% |
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
Book value per
share |
|
|
|
|
|
$ |
13.00 |
|
|
$ |
12.48 |
|
|
Less: Intangible assets
per share(5) |
|
|
|
|
|
(1.46 |
) |
|
(1.50 |
) |
|
Tangible book value per
share (5) |
|
|
|
|
|
11.54 |
|
|
10.98 |
|
|
Dividends declared per
share |
|
|
|
|
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios
for the three and six 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 $17.8 million and $18.4 million at June 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 Apr 2024 to May 2024
SI Financial Grp., Inc. (NASDAQ:SIFI)
Historical Stock Chart
From May 2023 to May 2024