Community National Bank Reports Fourth Quarter And Year-End Results For 2013 - WMBB News 13 - The Panhandle's News Leader

Community National Bank Reports Fourth Quarter And Year-End Results For 2013

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Community National Bank

MELVILLE, N.Y., Jan. 31, 2014 /PRNewswire/ -- Community National Bank (OTC: CBNY) today announced fourth quarter and year-end results for 2013.  Highlights for the quarter and year include:

  • Net income of $961 thousand or $0.14 per share for the fourth quarter of 2013 compared to net income of $692 thousand or $0.10 per share for the same period in 2012.
  • Net interest income increased 24% or $1.3 million to $7.0 million for the quarter ended December 31, 2013 compared to $5.7 million for the quarter ended December 31, 2012.
  • Return on average assets and equity of 0.47% and 5.35%, respectively, for the quarter ended December 31, 2013 compared to 0.42% and 3.88%, respectively, for the quarter ended December 31, 2012.
  • Commercial loans grew $112.5 million or 32% to $464.0 million at December 31, 2013 when compared to December 31, 2012. On a linked-quarter basis, commercial loans increased $30 million or 6.9% compared to September 30, 2013.
  • Service charge income increased $517 thousand or 82% to $1.1 million for the year ended December 31, 2013 when compared to the same period in 2012.
  • Solid asset quality with non-performing assets to total assets of 0.14%, which is well below peer group average.

Stuart Lubow, Chairman, CEO and President, commented, "We are committed to our strategic plan of creating solid commercial relationships, core earnings and franchise value for the long-term. During the past year, we have increased loans by $150 million, improved quarterly net interest income by $1.3 million and increased our service charge income. While competition has increased during the past year, we expect to build upon this strategy in the coming year." 

Earnings and Net Interest Income

Net income for the quarter ended December 31, 2013 was $961 thousand or $0.14 basic earnings per share compared to net income of $692 thousand or $0.10 basic earnings per share for the same period in 2012, an increase of 39% or $269 thousand.

The increase in net income reflects higher net interest income from loan growth and lower provisions for loan losses, which were partially offset by an increase in non-interest expenses. The increase in non-interest expenses was attributable to (1) higher facility related expenses for our new corporate headquarters and new branch location in Hewlett; (2) additional personnel costs for the branch location, operations and compliance; and (3) an increase in legal fees.

Net income for the year ended December 31, 2013 was $2.9 million or $0.44 basic earnings per share, which was flat when compared to net income of $2.8 million or $0.43 basic earnings per share for the year ended December 31, 2012.  Net income remained flat as increases in net interest income were offset by higher provisions for loan losses and non-interest expenses.

On a linked quarter basis, net income for the fourth quarter of 2013 increased $707 thousand or 279% when compared to the third quarter of 2013. The increase was due to a significant decline in the provisions for loan losses, which was offset slightly by lower gains on the sale of SBA loans and higher non-interest expenses.

Net interest income for the quarter ended December 31, 2013 increased $1.3 million or 24% to $7.0 million from $5.7 million for the quarter ended December 31, 2012. The net interest margin decreased 2 basis points to 3.63% for the fourth quarter of 2013 compared to 3.65% for the same period in 2012.

Net interest income for the year ended December 31, 2013 increased $5.5 million or 26% to $26.5 million from $21.0 million for the year ended December 31, 2012. The net interest margin also increased by 12 basis points to 3.74% for the twelve months ended December 31, 2013 from 3.62% for the comparable period in the prior year.

The increase in net interest income for both the quarter and year ended December 31, 2013 was primarily due to (1) growth in the commercial and residential loan portfolios; (2) higher non-interest bearing demand deposits; and (3) a continued decline in overall cost of funds on deposits and FHLB advances.

The net interest margin improved when compared to the prior year due to a continued decline in the Bank's cost of funds.  However, on a linked quarterly basis, the net interest margin declined 10 basis points to 3.63% as new loans carried lower yields.

Non-Interest Income

Non-interest income decreased approximately $104 thousand or 13% to $0.7 million for the quarter ended December 31, 2013 compared to $0.8 million for the comparable quarter in the prior year. The decrease was due to lower SBA sales volume and income from Bank Owned Life Insurance ("BOLI").  This was partially offset by higher service charges on commercial accounts and servicing income from the SBA loan portfolio.

Non-interest income for the twelve months ended December 31, 2013 remained relatively flat at $3.6 million when compared to the same period in 2012.  Declines in gains from the sale of SBA loans and investments and lower BOLI income were offset by higher service charges and servicing income.

Non-Interest Expense

Non-interest expenses increased $1.1 million or 25% to $5.7 million for the quarter ended December 31, 2013 from $4.6 million for the same period in 2012.

Non-interest expenses increased $3.5 million or 19% to $21.4 million for the twelve months ended December 31, 2013 from $17.9 million for the same period in 2012. 

The increase for both the quarter and year reflects investments in new facilities, enhancements in technology, increased personnel to support the growth of the Bank, additional regulatory burdens and higher legal fees. Although non-interest expenses increased in 2013, the Bank's ratio of operating expenses to average assets decreased to 2.87% in 2013 from 2.91% in 2012.

Balance Sheet

Total assets grew $152.8 million or 23% to $818.6 million at December 31, 2013 when compared to total assets of $665.8 million at December 31, 2012.  A significant portion of the asset growth was in the loan category. Total loans increased $149.8 million or 29% to $661.4 million at December 31, 2013 when compared to December 31, 2012. The commercial and residential loan portfolios increased $112.5 million or 32% and $37.3 million or 23%, respectively, when compared to December 31, 2012. The loan growth was funded by increased demand deposits, municipal deposits, certificates of deposit and FHLB advances.

Total deposits increased $123.7 million or 22% to $687.0 million at December 31, 2013 from $563.3 million at December 31, 2012. Demand deposits grew $21.2 million or 14% to $177.1 million at December 31, 2013 when compared to December 31, 2012. The increase was due to additional commercial business relationships. Demand deposits represent 26% of total deposits at December 31, 2013.

NOW, savings and money market deposits increased $83.6 million or 36% to $316.8 million at December 31, 2013 from $233.2 million at December 31, 2012. A significant portion of this growth was from new municipal deposit relationships.

Certificates of deposits increased $18.9 million or 10.9% to $193.1 million at December 31, 2013 when compared to December 31, 2012 due to the Bank's competitive pricing in the local market.

Asset Quality & Capital

Non-performing loans, consisting of loans past due 90 days or more, decreased by $0.3 million or 19% to $1.2 million or 0.18% of total loans at December 31, 2013 from $1.5 million or 0.28% of total loans at December 31, 2012.

The Bank had $0.4 million in provisions for loan losses for the fourth quarter of 2013, a decrease of $0.4 million or 53% when compared to the same quarter in the prior year. The decline in the provision from the same quarter in the prior year was due to less loan origination volume. 

The allowance for loan losses was $9.4 million or 1.42% of total loans at December 31, 2013, an increase of approximately $2.8 million from $6.6 million or 1.29% of total loans at December 31, 2012. The Bank had net charge-offs of $1.2 million in 2013 compared to 0.3 million in 2012.

The Bank continues to have significant capital strength with Tier 1 leverage, Tier 1 risk-based and total risk-based capital ratios of 9.12%, 11.91% and 13.16%, respectively, at December 31, 2013.

Further information about the financial condition and performance of Community National Bank is available from its Call Reports filed by the Bank with the FDIC and available on the FDIC website at: http://www2.fdic.gov/idasp/main_bankfind.asp. The Bank filed its December 31, 2013 Call Report on January 30, 2014.

Certain items in the prior year's financial statements were reclassified to conform to the current presentation.

ABOUT COMMUNITY NATIONAL BANK
Community National Bank is a Long Island based independent commercial bank and operates eleven locations in Nassau, Suffolk, Queens, and Manhattan Counties. We offer a full range of modern financial services, backed by state-of-the-art technology. In addition to commercial loans, commercial mortgages, small business loans and lines of credit and residential mortgages, CNB also provides a complete selection of traditional personal and commercial deposit products such as no fee individual and business checking accounts, IRA accounts and statement savings.

Cautionary Statement about Forward-Looking Statements

This release contains certain "forward looking statements" about CNB which, to the extent applicable, are intended to be covered by the safe harbor for forward looking statements provided under the Federal securities laws and, regardless of such coverage, you are cautioned about. Examples of forward-looking statements include but are not limited to, CNB's financial condition, capital ratios, results of operations and outlook. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as "may," "believe," "expect," "anticipate," "plan," "continue," or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward looking statements to be materially inaccurate include, but are not limited to, a unexpected deterioration in our loan portfolio, unexpected increases in our expenses, greater than anticipated growth, unanticipated regulatory action, unexpected changes in interest rates, a loss of key personnel, an unanticipated loss of existing customers, competition from other institutions causing us unanticipated changes in our deposit or loan rates, increases in FDIC insurance costs and unanticipated adverse changes in our customers' economic conditions or economic conditions in our local area generally. Forward-looking statements speak only as of the date of this press release We do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

 

COMMUNITY NATIONAL BANK


STATEMENTS OF INCOME


Unaudited







For The Three Months Ended

For The Twelve Months Ended


December 31,

December 31,

December 31,

December 31,


2013

2012

2013

2012

Interest Income:





Commercial Loans

$5,672,443

$4,503,513

$21,151,026

$16,426,575

Residential and Consumer Loans

1,738,300

1,626,252

6,752,885

6,526,396

Securities

609,843

541,214

2,285,048

2,340,440

Money Market Investments

20,428

23,148

53,846

51,626

   Total Interest Income

8,041,014

6,694,127

30,242,805

25,345,037






Interest Expense:





NOW, Savings & Money Market

328,531

229,149

930,361

903,032

Certificates of Deposit

608,736

649,781

2,370,573

2,922,078

Borrowed Funds

75,860

125,485

482,056

569,832

   Total Interest Expense

1,013,127

1,004,415

3,782,990

4,394,942

      Net Interest Income

7,027,887

5,689,712

26,459,815

20,950,095

Provision For Loan Losses

373,000

800,000

4,003,000

2,193,000

Net Interest Income After Provision for Loan Losses

6,654,887

4,889,712

22,456,815

18,757,095






Non-Interest Income:





Service Charges

331,778

189,246

1,147,897

630,406

Servicing Income & Loan Fees

167,308

99,005

540,435

408,035

Gain on Sale of Investments

-

6,788

29,439

280,581

Gain on Sale of Loans

26,237

289,091

1,342,162

1,508,280

BOLI Income

151,206

196,659

605,703

721,767

   Total Non-Interest Income

676,529

780,789

3,665,636

3,549,069






Non-Interest Expenses:





Compensation and Benefits

2,836,429

2,380,164

10,688,891

9,152,494

Occupancy and Equipment

1,388,281

1,141,651

5,381,344

4,520,830

Advertising

49,321

59,419

223,032

218,213

Other Expenses

1,499,655

1,039,938

5,134,232

4,018,434

   Total Non-Interest Expenses

5,773,686

4,621,172

21,427,499

17,909,971

Income Before Income Taxes

1,557,730

1,049,329

4,694,952

4,396,193

Provision For Income Taxes

596,387

356,929

1,743,303

1,544,933

      Net Income

$961,343

$692,400

$2,951,649

$2,851,260






Earnings Per Share:





   Basic

$0.14

$0.10

$0.44

$0.43

   Diluted

$0.14

$0.10

$0.44

$0.43

   Weighted Average Shares Outstanding – Basic

6,673,181

6,673,181

6,673,181

6,673,181

   Weighted Average Shares Outstanding – Diluted

6,796,064

6,701,691

6,774,277

6,689,481







 

 

COMMUNITY NATIONAL BANK

STATEMENTS OF INCOME

Unaudited





For the Three Months Ended


December 31,

September 30,

June 30,

December, 31


2013

2013

2013

2012

Interest Income:





Commercial Loans

$5,672,443

$5,350,569

$5,194,321

$4,503,513

Residential and Consumer Loans

1,738,300

1,695,999

1,670,716

1,626,252

Securities

609,843

583,095

551,025

541,214

Money Market Investments

20,428

12,880

10,823

23,148

   Total Interest Income

8,041,014

7,642,543

7,426,885

$6,694,127






Interest Expense:





NOW, Savings & Money Market

328,531

221,026

175,984

229,149

Certificates of Deposit

608,736

592,162

592,243

649,781

Borrowed Funds

75,860

118,059

155,129

125,485

   Total Interest Expense

1,013,127

931,247

923,356

1,004,415

      Net Interest Income

7,027,887

6,711,296

6,503,529

5,689,712

Provision For Loan Losses

373,000

2,015,000

995,000

800,000

Net Interest Income After Provision for Loan Losses

6,654,887

4,696,296

5,508,529

4,889,712






Non-Interest Income:





Service Charges

331,778

301,609

267,690

189,246

Servicing Income & Loan Fees

167,308

143,632

134,972

99,005

Gain on Sale of Investments

-

-

-

6,788

Gain on Sale of Loans

26,237

394,166

575,299

289,091

BOLI Income

151,206

148,241

148,137

196,659

   Total Non-Interest Income

676,529

987,648

1,126,098

780,789






Non-Interest Expenses:





Compensation and Benefits

2,836,429

2,665,323

2,639,070

2,380,164

Occupancy and Equipment

1,388,281

1,350,272

1,340,234

1,141,651

Advertising

49,321

65,403

67,045

59,419

Other Expenses

1,499,655

1,297,440

1,263,153

1,039,938

   Total Non-Interest Expenses

5,773,686

5,378,438

5,309,502

4,621,172

Income Before Income Taxes

1,557,730

305,506

1,325,125

1,049,329

Provision For Income Taxes

596,387

51,915

530,999

356,929

      Net Income

$961,343

$253,591

$794,126

$692,400






Earnings Per Share:





   Basic

$0.14

$0.04

$0.12

$0.10

   Diluted

$0.14

$0.04

$0.12

$0.10

   Weighted Average Shares Outstanding – Basic

6,673,181

6,673,181

6,673,181

6,673,181

   Weighted Average Shares Outstanding – Diluted

6,796,064

6,792,969

6,767,440

6,701,691








 

 

COMMUNITY NATIONAL BANK

STATEMENTS OF CONDITION

Unaudited











December 31,

September 30,

June 30,

December, 31


2013

2013

2013

2012

Assets:





Cash and Due From Banks

$8,783,780

$8,323,492

$7,927,992

$13,453,651

Money Market Investments

2,102,723

26,344,244

18,966,565

7,391,467






Securities - Available-for-Sale

100,894,759

106,001,818

107,982,445

100,126,177

Securities – Held-to-Maturity

6,053,339

-

-

-

Restricted Stock

5,408,850

4,121,350

5,494,450

3,904,850

   Total Securities

112,356,948

110,123,168

113,476,895

104,031,027











Commercial Loans

464,037,616

434,020,481

372,236,723

351,587,251

Residential & Consumer Loans

197,350,345

181,653,928

176,034,480

160,030,011

Gross Loans Held-For-Investment

661,387,961

615,674,409

548,271,203

511,617,262

Less:  Allowance For Loans Losses

(9,383,788)

(8,942,236)

(8,228,359)

(6,606,498)

   Net Loans Held-For-Investment

652,004,173

606,732,173

540,042,844

505,010,764






Premises and Equipment, net

11,116,968

10,927,997

9,590,787

8,709,570

Bank Owned Life Insurance ("BOLI")

20,099,560

19,948,355

19,800,850

19,493,857

Other Assets

12,118,062

14,930,676

8,246,406

7,693,014

   Total Assets

$818,582,214

$797,330,105

$718,052,339

$665,783,350






Liabilities and Stockholders' Equity:





Deposits:





Demand

$177,107,547

$181,740,742

$169,896,257

$155,877,268

NOW, Savings & Money Market

316,807,903

316,213,221

230,706,025

233,241,844

Certificates of Deposit

193,134,562

195,077,799

184,636,337

174,223,625

   Total Deposits

687,050,012

693,031,762

585,238,619

563,342,737






FHLB Advances

54,921,135

26,438,035

56,951,949

$24,970,887

Accrued Expenses and Other Liabilities

4,985,420

6,550,574

4,170,988

5,666,170

   Total Liabilities

746,956,567

726,020,371

646,361,556

593,979,794






Stockholders' Equity:





Common Stock, par value $5.00; authorized





10,000,000 shares;  issued 6,673,181 shares

33,365,905

33,365,905

33,365,905

33,365,905

Additional Paid-in-Capital

34,362,152

34,295,244

34,228,336

34,101,246

Retained Earnings

6,406,941

5,445,598

5,192,007

3,455,292

Unrealized (Loss)/Gain on Securities

(2,509,351)

(1,797,013)

(1,095,465)

881,113

      Total Stockholders' Equity

71,625,647

71,309,734

71,690,783

71,803,556

      Total Liabilities and Stockholders' Equity

$818,582,214

$797,330,105

$718,052,339

$665,783,350








 

 

COMMUNITY NATIONAL BANK

SELECTED FINANCIAL DATA & BALANCE SHEET COMPONENTS

Unaudited











For The Three Months Ended

For The Twelve Months Ended


December 31,

December 31,

December 31,

December 31,


2013

2012

2013

2012






Per Share:





Net Income-Basic

$0.14

$0.10

$0.44

$0.43

Average Shares Outstanding – Basic

6,673,181

6,673,181

6,673,181

6,673,181

Net Income – Diluted

$0.14

$0.10

$0.44

$0.43

Average Shares Outstanding – Diluted

6,796,064

6,701,691

6,774,277

6,689,481

Tangible Book Value

$10.73

$10.76

$10.73

$10.76






Performance:





Return on Average Assets

0.47%

0.42%

0.40%

0.46%

Return on Average Equity

5.35%

3.88%

4.09%

4.09%

Efficiency Ratio

74.94%

71.42%

71.13%

73.10%






Yield on Average Earning Assets

4.16%

4.30%

4.28%

4.37%

Cost on Average Interest Bearing Liabilities

0.74%

0.91%

0.76%

1.05%

Cost of Deposits

0.53%

0.63%

0.53%

0.75%

Net Interest Spread

3.42%

3.39%

3.52%

3.32%

Net Interest Margin

3.63%

3.65%

3.74%

3.62%







Quarter Ended


December 31,

September 30,

June 30,

December 31,


2013

2013

2013

2012

Capital Ratios:


Tangible Common Equity

8.75%

8.94%

9.98%

10.78%

Leverage

9.12%

9.62%

10.10%

10.35%

Tier 1

11.91%

12.39%

13.90%

13.85%

Total Risk Based

13.16%

13.64%

15.16%

15.10%






Asset Quality:





Allowance for Loan Losses to Total Loans

1.42%

1.45%

1.50%

1.29%

Allowance for Loan Losses to Non-Performing Loans

800%

577%

386%

456%

Non-Performing Loans to Total Loans

0.18%

0.25%

0.39%

0.28%

Non-Performing Assets to Total Assets

0.14%

0.19%

0.30%

0.22%

Annualized Quarterly Net Charge offs to Avg. Loans

-0.04%

0.88%

0.00%

0.08%






Yield on Average Earning Assets

4.16%

4.25%

4.35%

4.30%

Cost on Average Interest Bearing Liabilities

0.74%

0.74%

0.78%

0.91%

Cost of Deposits

0.53%

0.51%

0.53%

0.63%

Net Interest Spread

3.42%

3.51%

3.57%

3.38%

Net Interest Margin

3.63%

3.73%

3.81%

3.65%
































©2012 PR Newswire. All Rights Reserved.