Joseph Pistilli, Chairman of the Board, of First Central Savings
Bank (“FCSB”, “the Bank”) today reported continued performance
achievements for the quarter ended March 31, 2024.
Cash and GAAP Basis
Earnings
The Bank’s cash earnings were $1.7 million, or
$0.16 per share, for the quarter ended March 31, 2024, which
represents a decrease of $712 thousand, or 29.9% from the quarter
ended March 31, 2023. On a GAAP basis, net income for the quarter
ended March 31, 2024, was $1.2 million, or $0.12 per share,
compared with net income of $1.8 million, or $0.17 per share, for
the quarter ended March 31, 2023.
Joseph Pistilli, Chairman of the Board noted,
“In the first quarter of 2024, First Central continued to build
shareholder value by generating positive earnings despite the
continued higher interest rate environment. We continue to enhance
shareholder value with an increase in our book value from $7.44 per
share at March 31, 2023, to $7.95 at March 31, 2024, an increase of
$0.51 or 6.9%. A continued concern for FCSB and other banks is the
current level of inflation, elevated interest rates, and credit
quality. We are optimistic about the credit quality of our loan
portfolio, as it continues to perform during these uncertain
economic times. Our credit exposure to commercial real estate,
specifically to office space and multi-family lending, is limited.
We expect that the current inflationary environment will subside,
and we will return to a more normal and predictable economic
condition. We believe that any future interest rate increases have
been tempered due to current monetary tightening in the US economy.
We believe that any future interest rate reductions from the
Federal Reserve will be a benefit to both the balance sheet and
income statement of the Bank. I am extremely proud of the
management team and the Board of Directors that we have assembled
at the Bank and the expertise they have in managing net interest
income during the current market conditions.”
Paul Hagan, President and Chief Operating
Officer, reflected on the Bank’s results, “During the quarter ended
March 31, 2024, we continued to see elevated interest rates that
put pressure on our net interest margin and spread. We expect the
remainder of 2024 to be challenging if interest rates do not
decline and we remain in a “higher for longer” interest rate
environment. Despite the pressure on net interest income, we have
continued to achieve positive financial performance by maintaining
our loan sale income throughout the first quarter of 2024 to offset
the decline in the net interest spread and margin. Management
remains committed to managing non-interest expenses and
non-interest income to maintain earnings during this higher
interest rate environment and a very competitive deposit rate
market.”
Balance Sheet
On a year-over-year basis, total assets grew by
$6.0 million, or 0.6%, driven by the Bank’s loan originations
offset by non-conforming loan sales of $45.1 million. Total assets
for the quarter ended March 31, 2024, decreased by $1.2 million to
$962.3 million as the bank continued to originate commercial and
non-conforming loans while continuing to sell a portion of the
non-conforming loans to the secondary market. As of March 31, 2024,
the Bank has been able to generate a non-conforming loan pipeline
of $43.5 million and commercial loan pipeline of $12.5 million with
weighted average interest rates of 7.45% and 9.93%,
respectively.
On a year-over-year basis, total deposits grew
by $35.9 million, or 4.4%, as the Bank continues to grow deposits
through its retail branches. The Bank has also been successful in
maintaining the non-interest-bearing deposits through
non-conforming loan originations and the retail branches. As of
March 31, 2024, total non-interest-bearing deposits were $108.8
million or 12.9% of total deposits. With the growth of the deposit
base, total borrowings for the quarter ended March 31, 2024,
decreased by $30.5 million or 67.8% to $14.5 million.
The Bank’s overall average cost of funds was
3.58% for the quarter ended March 31, 2024, an increase of 30 basis
points from 3.28% from the prior linked quarter. The current
interest rate environment continues to negatively impact the Bank’s
cost of funds in the short term, however, management continues to
be pro-active in securing certificates of deposit in the current
interest rate environment to better position the interest-rate-risk
profile of the Bank in anticipation of rate reductions in the
months to come. Management believes this strategy will better
protect and enhance future earnings when rates begin to decline,
and our deposits reprice downward in the latter stages of 2024.
Loan Portfolio and Asset
Quality
For the twelve-month period ended March 31,
2024, the Bank’s loan portfolio grew by $28.3 million, or 3.5%,
with the growth concentrated primarily in non-conforming
residential loans. Management continues to employ a strategy of
concentrating its loan growth in these products, which provides the
Bank with traditionally safe credit quality at acceptable credit
spreads, greater liquidity and an enhanced interest-rate-risk
profile. Over the past twelve months, originations of the
non-conforming product amounted to $218.1 million. At March 31,
2024, the entire non-conforming loan portfolio amounted to $453.9
million, with an average loan balance of $582 thousand and a
weighted average loan-to-value ratio of 61.9%.
As a result of the Bank’s robust non-conforming
loan generation capabilities, the Bank had been able to generate
additional income by strategically originating and selling its
non-conforming loans to other financial institutions at premiums.
The Bank expects that it will continue to originate, in the near
term, for its own portfolio and, in the long term, for others,
which will result in a continued increase in interest income while
also realizing gains on sale of loans. For the three months ended
March 31, 2024, the Bank earned $1.4 million in premiums on loans
sold net of FASB 91 fees and costs.
The Bank’s asset quality ratios remained strong.
At March 31, 2024, the loan portfolio had non-performing loans of
$4.9 million or 0.59% of total loans and 0.51% of total assets. The
total allowance for credit losses at March 31, 2024, was $8.5
million, or 1.03% of total loans.
About First Central Savings
Bank
With assets of $962.3 million at March 31, 2024,
First Central Savings Bank is a locally owned and operated
community savings bank, focusing on highly personalized and
efficient services and products responsive to local needs.
Management and the Board of Directors are comprised of a select
group of successful local businessmen who are committed to the
success of the Bank by knowing and understanding the metro-New York
area’s financial needs and opportunities. Backed by
state-of-the-art technology, First Central offers a full range of
modern financial services. First Central employs a complete suite
of consumer and commercial banking products and services, including
multi-family and commercial mortgages, ADC and bridge loans,
residential loans, middle market business loans and lines of
credit. First Central also offers customers 24-hour ATM service
with no fees attached, free checking with interest, mobile banking,
the most advanced technologies in internet banking for our consumer
and business customers, safe deposit boxes and much more. The Bank
continues to roll out mobile banking software products as well as
our “Zelle” money transfer product to our customers. First Central
Savings Bank maintains its corporate office in Glen Cove, New York
with an additional six branches throughout Queens New York, one
branch in Nassau County, New York, and one branch in Suffolk
County, New York.
First Central Savings Bank is a member of the
Federal Deposit Insurance Corporation and is an Equal Housing/Equal
Opportunity Lender. For further information, call 516-399-6010 or
visit the Bank’s state-of-the-art website at
www.myfcsb.com.
Forward-Looking Statements
This release may contain certain "forward
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, and may be identified by the use of
such words as "may," "believe," "expect," "anticipate," "should,"
"plan," "estimate," "predict," "continue," and "potential" or the
negative of these terms or other comparable terminology. Examples
of forward-looking statements include, but are not limited to,
estimates with respect to the financial condition, results of
operations and business of First Central Savings Bank. Any or all
of the forward-looking statements in this release and in any other
public statements made by First Central Savings Bank may turn out
to be incorrect. They can be affected by inaccurate assumptions
First Central Savings Bank might make or by known or unknown risks
and uncertainties. Consequently, no forward-looking statement can
be guaranteed. First Central Savings Bank does not intend to update
any of the forward-looking statements after the date of this
release or to conform these statements to actual events.
|
|
|
|
|
|
First Central Savings Bank |
Statements of Condition - (unaudited) |
(dollars in thousands) |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
50,589 |
|
|
$ |
50,955 |
|
|
$ |
63,630 |
|
Certificates of deposit |
|
2,000 |
|
|
|
2,000 |
|
|
|
3,500 |
|
Investments Available for Sale |
|
41,791 |
|
|
|
43,057 |
|
|
|
44,905 |
|
Investments Held to Maturity |
|
1,000 |
|
|
|
1,000 |
|
|
|
2,008 |
|
|
|
|
|
|
|
Loans held for sale |
|
4,343 |
|
|
|
8,126 |
|
|
|
675 |
|
Loans receivable |
|
832,644 |
|
|
|
827,278 |
|
|
|
807,966 |
|
Less: allowance for credit losses |
|
(8,538 |
) |
|
|
(8,347 |
) |
|
|
(8,148 |
) |
Loans, net |
|
824,106 |
|
|
|
818,931 |
|
|
|
799,818 |
|
|
|
|
|
|
|
Other assets |
|
38,508 |
|
|
|
39,466 |
|
|
|
41,834 |
|
Total Assets |
$ |
962,337 |
|
|
$ |
963,535 |
|
|
$ |
956,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders Equity |
|
|
|
|
|
Total Deposits |
$ |
845,142 |
|
|
$ |
816,285 |
|
|
$ |
809,268 |
|
FHLB Advances |
|
14,500 |
|
|
|
45,000 |
|
|
|
50,000 |
|
Other Liabilities |
|
18,009 |
|
|
|
18,318 |
|
|
|
17,844 |
|
Total Liabilities |
|
877,651 |
|
|
|
879,603 |
|
|
|
877,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
84,686 |
|
|
|
83,932 |
|
|
|
79,258 |
|
Total Liabilities and Shareholders' Equity |
$ |
962,337 |
|
|
$ |
963,535 |
|
|
$ |
956,370 |
|
|
|
|
|
|
|
First Central Savings Bank |
Statements of Income - (unaudited) |
(dollars in thousands, except per share data) |
|
Quarter Ended |
|
Quarter Ended |
|
3/31/2024 |
|
3/31/2023 |
|
|
|
|
Total Interest income |
$ |
14,185 |
|
|
$ |
12,362 |
|
Total interest expense |
|
7,658 |
|
|
|
4,476 |
|
Net interest income |
|
6,527 |
|
|
|
7,886 |
|
Provision for credit losses |
|
190 |
|
|
|
335 |
|
Net interest income after provision for credit
losses |
|
6,337 |
|
|
|
7,551 |
|
|
|
|
|
Net gain on loans sold |
|
1,421 |
|
|
|
460 |
|
Other non-interest income |
|
240 |
|
|
|
278 |
|
Total non-interest income |
|
1,661 |
|
|
|
738 |
|
|
|
|
|
Compensation and benefits |
|
3,747 |
|
|
|
3,244 |
|
Occupancy and Equipment |
|
906 |
|
|
|
1,007 |
|
Data processing |
|
444 |
|
|
|
383 |
|
Federal insurance premium |
|
165 |
|
|
|
160 |
|
Professional fees |
|
329 |
|
|
|
407 |
|
Other |
|
869 |
|
|
|
833 |
|
Total non-interest expense |
|
6,460 |
|
|
|
6,034 |
|
|
|
|
|
Income before income taxes |
|
1,538 |
|
|
|
2,255 |
|
Income tax expense |
|
310 |
|
|
|
464 |
|
Net income |
$ |
1,228 |
|
|
$ |
1,791 |
|
|
|
|
|
Basic Earnings per Share-GAAP basis |
$ |
0.12 |
|
|
$ |
0.17 |
|
Diluted Earnings per Share-GAAP basis |
$ |
0.12 |
|
|
$ |
0.17 |
|
|
|
|
|
Supplementary Information: |
|
|
|
Net Income |
$ |
1,228 |
|
|
$ |
1,791 |
|
|
|
|
|
Add Back non-cash charges |
|
|
|
Provision for credit losses |
|
190 |
|
|
|
335 |
|
Depreciation expense |
|
253 |
|
|
|
257 |
|
Cash Net income |
$ |
1,671 |
|
|
$ |
2,383 |
|
|
|
|
|
Basic Earnings per Share-GAAP basis |
$ |
0.16 |
|
|
$ |
0.22 |
|
Diluted Earnings per Share-GAAP basis |
$ |
0.16 |
|
|
$ |
0.22 |
|
|
|
|
|
First Central Savings Bank |
Statements of Income - (unaudited) |
(dollars in thousands, except per share data) |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
|
|
|
|
|
|
|
Total Interest income |
$ |
14,185 |
|
|
$ |
13,767 |
|
|
$ |
13,789 |
|
|
$ |
13,547 |
|
Total interest expense |
|
7,658 |
|
|
|
6,991 |
|
|
|
6,427 |
|
|
|
5,572 |
|
Net interest income |
|
6,527 |
|
|
|
6,776 |
|
|
|
7,362 |
|
|
|
7,975 |
|
Provision (recovery) for credit losses |
|
190 |
|
|
|
25 |
|
|
|
(173 |
) |
|
|
215 |
|
Net interest income after provision (recovery) for credit
losses |
|
6,337 |
|
|
|
6,751 |
|
|
|
7,535 |
|
|
|
7,760 |
|
|
|
|
|
|
|
|
|
Net gain on loans sold |
|
1,421 |
|
|
|
1,023 |
|
|
|
1,372 |
|
|
|
883 |
|
Net gain on sale of securities |
|
- |
|
|
|
109 |
|
|
|
- |
|
|
|
- |
|
Other non-interest income |
|
240 |
|
|
|
270 |
|
|
|
379 |
|
|
|
326 |
|
Total non-interest income |
|
1,661 |
|
|
|
1,402 |
|
|
|
1,751 |
|
|
|
1,209 |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
3,747 |
|
|
|
3,882 |
|
|
|
3,659 |
|
|
|
3,323 |
|
Occupancy and Equipment |
|
906 |
|
|
|
894 |
|
|
|
943 |
|
|
|
967 |
|
Data processing |
|
444 |
|
|
|
416 |
|
|
|
401 |
|
|
|
458 |
|
Federal insurance premium |
|
165 |
|
|
|
139 |
|
|
|
198 |
|
|
|
175 |
|
Professional fees |
|
329 |
|
|
|
301 |
|
|
|
314 |
|
|
|
689 |
|
Other |
|
869 |
|
|
|
950 |
|
|
|
1,080 |
|
|
|
892 |
|
Total non-interest expense |
|
6,460 |
|
|
|
6,582 |
|
|
|
6,595 |
|
|
|
6,504 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,538 |
|
|
|
1,571 |
|
|
|
2,691 |
|
|
|
2,465 |
|
Income tax expense |
|
310 |
|
|
|
318 |
|
|
|
556 |
|
|
|
509 |
|
Net income |
$ |
1,228 |
|
|
$ |
1,253 |
|
|
$ |
2,135 |
|
|
$ |
1,956 |
|
|
|
|
|
|
|
|
|
Basic Earnings per Share-GAAP basis |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
Diluted Earnings per Share-GAAP basis |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Supplementary Information: |
|
|
|
|
|
|
|
Net Income |
$ |
1,228 |
|
|
$ |
1,253 |
|
|
$ |
2,135 |
|
|
$ |
1,956 |
|
|
|
|
|
|
|
|
|
Add Back non-cash charges |
|
|
|
|
|
|
|
Provision (recovery) for credit losses |
|
190 |
|
|
|
25 |
|
|
|
(173 |
) |
|
|
215 |
|
Depreciation expense |
|
253 |
|
|
|
258 |
|
|
|
258 |
|
|
|
254 |
|
Cash Net income |
$ |
1,671 |
|
|
$ |
1,536 |
|
|
$ |
2,220 |
|
|
$ |
2,425 |
|
|
|
|
|
|
|
|
|
Basic Earnings per Share-GAAP basis |
$ |
0.16 |
|
|
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
Diluted Earnings per Share-GAAP basis |
$ |
0.16 |
|
|
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
First Central Savings Bank |
Selected Financial Data - (unaudited) |
(dollars in thousands, except per share data) |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
3/31/2023 |
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
Allowance for Loan Losses (1) |
$ |
8,538 |
|
|
$ |
8,347 |
|
|
$ |
8,193 |
|
|
$ |
8,148 |
|
Allowance for Loan Losses to Total Loans (1) |
|
1.03 |
% |
|
|
1.01 |
% |
|
|
1.01 |
% |
|
|
1.01 |
% |
|
|
|
|
|
|
|
|
Non-Performing Loans |
$ |
4,917 |
|
|
$ |
4,385 |
|
|
$ |
4,162 |
|
|
$ |
3,134 |
|
Non-Performing Loans/Total Loans |
|
0.59 |
% |
|
|
0.53 |
% |
|
|
0.51 |
% |
|
|
0.39 |
% |
Non-Performing Loans/Total Assets |
|
0.51 |
% |
|
|
0.46 |
% |
|
|
0.44 |
% |
|
|
0.33 |
% |
Allowance for Loan Losses/Non-Performing Loans |
|
173.64 |
% |
|
|
190.35 |
% |
|
|
196.85 |
% |
|
|
259.99 |
% |
|
|
|
|
|
|
|
|
Capital: (dollars in thousands) |
|
|
|
|
|
|
|
Tier 1 Capital |
$ |
89,427 |
|
|
$ |
88,236 |
|
|
$ |
88,047 |
|
|
$ |
83,524 |
|
Tier 1 Leverage Ratio |
|
9.23 |
% |
|
|
9.23 |
% |
|
|
9.20 |
% |
|
|
9.14 |
% |
Common Equity Tier 1 Capital Ratio |
|
13.32 |
% |
|
|
13.19 |
% |
|
|
13.14 |
% |
|
|
12.40 |
% |
Tier 1 Risk Based Capital Ratio |
|
13.32 |
% |
|
|
13.19 |
% |
|
|
13.14 |
% |
|
|
12.40 |
% |
Total Risk Based Capital Ratio |
|
14.57 |
% |
|
|
14.44 |
% |
|
|
14.39 |
% |
|
|
13.64 |
% |
|
|
|
|
|
|
|
|
Equity Data |
|
|
|
|
|
|
|
Common shares outstanding |
|
10,648,345 |
|
|
|
10,648,345 |
|
|
|
10,648,345 |
|
|
|
10,648,345 |
|
Stockholders' equity |
$ |
84,686 |
|
|
$ |
83,932 |
|
|
$ |
81,726 |
|
|
$ |
79,258 |
|
Book value per common share |
|
7.95 |
|
|
|
7.88 |
|
|
|
7.67 |
|
|
|
7.44 |
|
Tangible common equity |
|
84,686 |
|
|
|
83,932 |
|
|
|
81,726 |
|
|
|
79,258 |
|
Tangible book value per common share |
|
7.95 |
|
|
|
7.88 |
|
|
|
7.67 |
|
|
|
7.44 |
|
|
|
|
|
|
|
|
|
(1) Calculation excludes loans held for sale |
|
|
|
|
|
|
|
|
First Central Savings Bank |
Selected Financial Data - (unaudited) |
(dollars in thousands) |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
3/31/2023 |
|
|
|
|
|
|
|
|
Other: (in thousands) |
|
|
|
|
|
|
|
Average Interest-Earning Assets |
941,314 |
|
|
928,162 |
|
|
927,745 |
|
|
884,446 |
|
Average Interest-Bearing Liabilities |
754,689 |
|
|
740,574 |
|
|
735,245 |
|
|
701,425 |
|
Average Deposits and Borrowings |
860,638 |
|
|
846,091 |
|
|
849,379 |
|
|
812,431 |
|
|
|
|
|
|
|
|
|
Profitability: |
|
|
|
|
|
|
|
Return on Average Assets |
0.51 |
% |
|
0.52 |
% |
|
0.89 |
% |
|
0.80 |
% |
Return on Average Equity |
5.89 |
% |
|
6.07 |
% |
|
10.40 |
% |
|
9.28 |
% |
Yield on Average Interest Earning Assets |
6.06 |
% |
|
5.88 |
% |
|
5.90 |
% |
|
5.67 |
% |
Cost of Average Interest Bearing Liabilities |
4.08 |
% |
|
3.75 |
% |
|
3.47 |
% |
|
2.59 |
% |
Cost of Funds |
3.58 |
% |
|
3.28 |
% |
|
3.00 |
% |
|
2.23 |
% |
Net Interest Rate Spread (1) |
1.98 |
% |
|
2.14 |
% |
|
2.43 |
% |
|
3.08 |
% |
Net Interest Margin (2) |
2.79 |
% |
|
2.90 |
% |
|
3.15 |
% |
|
3.62 |
% |
Non-Interest Expense to Average Assets |
2.70 |
% |
|
2.77 |
% |
|
2.68 |
% |
|
2.69 |
% |
Efficiency Ratio |
78.90 |
% |
|
82.02 |
% |
|
70.48 |
% |
|
69.97 |
% |
|
|
|
|
|
|
|
|
(1) Net interest rate spread represents the difference between the
average yield on average interest-earning assets and the average
cost of average interest-bearing liabilities |
(2) Net interest margin represents net interest income divided by
average interest earning assets |
|
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|
|
|
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Investor and Press Contact:
Joseph Pistilli Chairman of the Board
Ray Ciccone, E.V.P. & Chief Financial Officer
Paul Hagan, President & Chief Operating Officer
516-399-6071