May 18th, 2012
(TDCB.OB) Mutual Savings Bank Reports Net Loss of 2.1 Million
Posted on 17. Mar, 2011 by PublicWire
(PublicWire.com News Release) Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB: TDCB), the holding company of Mutual Savings Bank, announced that for the year ended December 31, 2010, the company reported a net loss of $2.1 million compared with a net loss of $233,000 for the year ended December 31, 2009.
The net losses reported in 2010 and 2009 primarily resulted from the recorded provisions for loan losses of $3.2 million and $1.4 million, respectively. The provision in 2010 was primarily due to the write-off of $1.3 million in commercial participation loans and the effects of the on-going economic downturn, particularly as they relate to weaknesses in commercial real estate loans. In evaluating the adequacy of loan loss allowances, management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions, which deteriorated dramatically during the fourth quarter of 2008 and continued to deteriorate throughout the first half of 2010. For the year ended December 31, 2010, Mutual Savings Bank charged-off loans, net of recoveries, of $1.9 million which represents an increase of $1.1 million, or 150.21%, from the year ended December 31, 2009. Of the $1.9 million charged-off for the year ended December 31, 2010, $1.7 million was the result of losses in the Bank’s commercial real estate portfolio. At December 31, 2010, management classified approximately $10.4 million in loans as impaired in the calculation of the allowance for loan losses compared to $5.0 million identified as of December 31, 2009. At December 31, 2010 and 2009, the Bank’s nonperforming assets as a percentage of total assets was 11.18% and 4.38%, respectively.
Other income decreased $335,000, or 25.95%, to $956,000 in 2010 from $1.3 million in 2009. The primary reason for the decrease in other income was the decrease of $152,000, or 52.05%, in net gains on loans sold into the secondary market to $140,000 for the year ended December 31, 2010 as compared to $292,000 for the year ended December 31, 2009. In 2010, Mutual Savings Bank sold $9.7 million of loans into the secondary market as compared to $14.2 million of such sales in 2009.
General, administrative and other expenses (non-interest expense) increased $589,000 or 11.12% to $5.9 million during 2010 from $5.3 million during 2009. The increase in non-interest expense was primarily due to two events. First, at December 31, 2010, the Bank performed an evaluation of goodwill recorded on its books and determined it to be fully impaired. As a result, the Bank recorded an impairment of $239,000 to fully write off goodwill. Second, the Bank closed its Franklin Central branch in June 2010 and listed the property for sale. The Bank obtained an appraisal on the property to determine its market value. The appraised value for the Franklin Central branch was less than value recorded on the Bank’s books. As a result, the Bank recorded a loss on assets held for sale of $471,000.
Total assets decreased $10.6 million to $118.2 million at December 31, 2010 from $128.8 million at December 31, 2009, a decrease of 8.26%. The decrease in assets was primarily the result of a decrease in net loans receivable of $12.6 million, or 11.75%, to $94.9 million at December 31, 2010 from $107.6 million at December 31, 2009. During 2010, one-to-four family residential mortgages declined $5.2 million, or 11.37%, and land development and construction loans decreased $4.9 million, or 33.47%. During 2010, many consumers refinanced their one-to-four family residential mortgages into lower fixed-rate loan products with longer maturities, which were subsequently sold by the Bank on the secondary market. In addition, the demand for land development and construction loans diminished due to the decline in housing demand and the overall economy. The allowance for loan losses increased to $3.5 million at December 31, 2010 from $2.1 million at December 31, 2009. The Bank increased the provision for loan losses based on a review of the structure of the current loan portfolio, the loans charged-off in 2010 and continued concerns about the economy.
Deposits decreased to $89.0 million at December 31, 2010 from $94.0 million at December 31, 2009, a decrease of $5.0 million or 5.37%. Time deposits decreased $5.9 million, or 16.43%, to $30.1 million at December 31, 2010 from $36.0 million at December 31, 2009. Demand deposits increased $1.1 million, or 9.18%, to $12.9 million at December 31, 2010 from $11.8 million at December 31, 2009.
Federal Home Loan Bank advances and other borrowings decreased $3.5 million, or 20.00%, to $14.0 million at December 31, 2010 from $17.5 million at December 31, 2009. The Bank repaid $3.5 million in Federal Home Loan Bank during 2010.
Stockholders’ equity decreased $2.1 million to $14.9 million at December 31, 2009 from $17.0 million at December 31, 2009. Equity as a percentage of assets decreased 0.55% to 12.63% at December 31, 2010 compared to 13.18% at December 31, 2009. The Company previously announced that the Board of Directors has suspended quarterly dividend payments until the Company achieves an acceptable level of earnings performance.
About Mutual Savings Bank
Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.
Mutual Savings Bank Trading Symbols
Mutual Savings Bank trades Over The Counter As TDCB (OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB)
About PublicWire.com
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OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB
The symbols “OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB” reflect the variety of methods Mutual Sacings Bank list their stock as, and were valid at the time of original publication of this press release.
(PublicWire.com News Release) Robert D. Heuchan, President and CEO of Third Century Bancorp (OTCBB: TDCB), the holding company of Mutual Savings Bank, announced that for the year ended December 31, 2010, the company reported a net loss of $2.1 million compared with a net loss of $233,000 for the year ended December 31, 2009.
The net losses reported in 2010 and 2009 primarily resulted from the recorded provisions for loan losses of $3.2 million and $1.4 million, respectively. The provision in 2010 was primarily due to the write-off of $1.3 million in commercial participation loans and the effects of the on-going economic downturn, particularly as they relate to weaknesses in commercial real estate loans. In evaluating the adequacy of loan loss allowances, management considers factors such as delinquency trends, portfolio composition, past loss experience and other factors such as general economic conditions, which deteriorated dramatically during the fourth quarter of 2008 and continued to deteriorate throughout the first half of 2010. For the year ended December 31, 2010, Mutual Savings Bank charged-off loans, net of recoveries, of $1.9 million which represents an increase of $1.1 million, or 150.21%, from the year ended December 31, 2009. Of the $1.9 million charged-off for the year ended December 31, 2010, $1.7 million was the result of losses in the Bank’s commercial real estate portfolio. At December 31, 2010, management classified approximately $10.4 million in loans as impaired in the calculation of the allowance for loan losses compared to $5.0 million identified as of December 31, 2009. At December 31, 2010 and 2009, the Bank’s nonperforming assets as a percentage of total assets was 11.18% and 4.38%, respectively.
Other income decreased $335,000, or 25.95%, to $956,000 in 2010 from $1.3 million in 2009. The primary reason for the decrease in other income was the decrease of $152,000, or 52.05%, in net gains on loans sold into the secondary market to $140,000 for the year ended December 31, 2010 as compared to $292,000 for the year ended December 31, 2009. In 2010, Mutual Savings Bank sold $9.7 million of loans into the secondary market as compared to $14.2 million of such sales in 2009.
General, administrative and other expenses (non-interest expense) increased $589,000 or 11.12% to $5.9 million during 2010 from $5.3 million during 2009. The increase in non-interest expense was primarily due to two events. First, at December 31, 2010, the Bank performed an evaluation of goodwill recorded on its books and determined it to be fully impaired. As a result, the Bank recorded an impairment of $239,000 to fully write off goodwill. Second, the Bank closed its Franklin Central branch in June 2010 and listed the property for sale. The Bank obtained an appraisal on the property to determine its market value. The appraised value for the Franklin Central branch was less than value recorded on the Bank’s books. As a result, the Bank recorded a loss on assets held for sale of $471,000.
Total assets decreased $10.6 million to $118.2 million at December 31, 2010 from $128.8 million at December 31, 2009, a decrease of 8.26%. The decrease in assets was primarily the result of a decrease in net loans receivable of $12.6 million, or 11.75%, to $94.9 million at December 31, 2010 from $107.6 million at December 31, 2009. During 2010, one-to-four family residential mortgages declined $5.2 million, or 11.37%, and land development and construction loans decreased $4.9 million, or 33.47%. During 2010, many consumers refinanced their one-to-four family residential mortgages into lower fixed-rate loan products with longer maturities, which were subsequently sold by the Bank on the secondary market. In addition, the demand for land development and construction loans diminished due to the decline in housing demand and the overall economy. The allowance for loan losses increased to $3.5 million at December 31, 2010 from $2.1 million at December 31, 2009. The Bank increased the provision for loan losses based on a review of the structure of the current loan portfolio, the loans charged-off in 2010 and continued concerns about the economy.
Deposits decreased to $89.0 million at December 31, 2010 from $94.0 million at December 31, 2009, a decrease of $5.0 million or 5.37%. Time deposits decreased $5.9 million, or 16.43%, to $30.1 million at December 31, 2010 from $36.0 million at December 31, 2009. Demand deposits increased $1.1 million, or 9.18%, to $12.9 million at December 31, 2010 from $11.8 million at December 31, 2009.
Federal Home Loan Bank advances and other borrowings decreased $3.5 million, or 20.00%, to $14.0 million at December 31, 2010 from $17.5 million at December 31, 2009. The Bank repaid $3.5 million in Federal Home Loan Bank during 2010.
Stockholders’ equity decreased $2.1 million to $14.9 million at December 31, 2009 from $17.0 million at December 31, 2009. Equity as a percentage of assets decreased 0.55% to 12.63% at December 31, 2010 compared to 13.18% at December 31, 2009. The Company previously announced that the Board of Directors has suspended quarterly dividend payments until the Company achieves an acceptable level of earnings performance.
About Mutual Savings Bank
Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the bank operates branches in Franklin at 1124 North Main Street and the Franklin United Methodist Community, as well as in Edinburgh, Nineveh and Trafalgar, Indiana.
Mutual Savings Bank Trading Symbols
Mutual Savings Bank trades Over The Counter As TDCB (OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB)
About PublicWire.com
PublicWire.com is a Small Cap Financial Press Release Company that uses a variety of cutting edge methods to syndicate your Small Cap Press Release to various news and information outlets. Our press releases have consitantly placed the Small Cap Companies we work with on the first result page of major search engines such as Google, Bing, and Yahoo. We work exclusively with Pinksheet and Over The Counter (PK and OTCBB) Companies to ensure maximum exposure for their Press Releases.
To maximize your OTCBB / Pinksheet / Small Cap Company Press Release, call us directly at 407-218-7446.
OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB
The symbols “OTCBB:TDCB, TDCB.OB, TDCB.OTCBB, TDCB” reflect the variety of methods Mutual Sacings Bank list their stock as, and were valid at the time of original publication of this press release.
Focus Business Bank Announces Financial Results for the Quarter and Nine Months Ended September 30, 2009
Posted on 02. Nov, 2009 by PublicWire in Finance
SAN JOSE, CA — (Public Wire) — 11/02/09 — Focus Business Bank (OTCBB: FCSB) announced unaudited financial results for the quarter and nine months ended September 30, 2009. The Bank continued to grow and ended the quarter with assets of $106 million, an increase of 20% over September 30, 2008. The Bank had a loss for the quarter of $1,007,000 compared to a loss of $1,589,000 for the quarter ended June 30, 2009. The loss for the nine months ended September 30, 2009 was $2,970,000. President and Chief Executive Officer Richard L. Conniff said, “The Bank’s earnings continue to be impacted by the current economic environment and specifically the weak credit markets. While there are signs that the recession is ending, certain of the Bank’s borrowers continue to experience difficulty. We therefore must be proactive and set aside reserves for potential problems and work diligently with these customers to assure the best possible outcome. Continued growth without sacrificing credit quality remains a high priority. We continue to execute our strategic objectives and are pleased with our progress in building new loan and deposit relationships which will benefit our long-term earnings potential and shareholder value.”
Following is a summary of key balance sheet categories:
September 30, December 31, September 30,
(Unaudited, dollars in thousands) 2009 2008 2008
------------- ------------- -------------
Total assets $ 106,163 $ 94,406 $ 88,208
Gross loans 73,891 70,778 66,544
Allowance for loan losses 2,346 1,202 875
Deposits
Non-interest bearing 20,990 18,049 14,253
Interest-bearing 62,751 51,431 48,813
------------- ------------- -------------
Total 83,741 69,480 63,067
Shareholders' equity 21,770 24,431 24,662
The balance sheet of the Bank remains strong. In light of economic conditions, the Bank has chosen to reduce leverage and increase liquidity. The loan to deposit ratio has dropped from 106% at September 30, 2008 to 88% at September 30, 2009. As a result of this deleveraging, the Bank had approximately $23 million in overnight funds and an additional $9 million in short-term investments at September 30, 2009 compared to $14 million and $9 million, respectively at December 31, 2008. The Bank has no borrowings and brokered deposits were limited to $500,000 at September 30, 2009.
The Bank’s earnings have been impacted by the need for additional increases to the allowance for loan losses. The Bank recorded a provision for loan losses of $775,000 in the third quarter of 2009, compared to $1.1 million in the second quarter of 2009. For the first nine months of 2009, the provision for loan losses was $2.0 million compared to $475,000 for the first nine months of 2008. At September 30, 2009, the allowance for loan losses was 3.17% of total loans compared to 1.70% at December 31, 2008 and 1.31% at September 30, 2008.
At September 30, 2009, the Bank had two non-performing loans totaling $4.8 million, compared to one non-performing loan for $2.9 million at June 30, 2009. Both loans are well secured and in the process of collection. The Bank has had no other real estate owned or other non-performing assets since commencing operations in January 2007.
The Bank’s performance has also been negatively impacted by low market rates of interest. The Bank’s net interest margin was 2.84% for the quarter ended September 30, 2009 compared to 3.18% for the quarter ended June 30, 2009. For the nine months ended September 30, 2009, the net interest margin was 3.08% compared to 4.02% for the same nine month period in 2008. The decline in net interest margin in 2009 is attributable to lower market rates of interest, particularly federal funds sold and overnight balances, and the effect of deleveraging, which has resulted in the Bank maintaining a lower percentage of its earning assets in higher yielding but more risky loans. The decline in net interest margin for the quarter ended September 30, 2009 was also impacted by the level of loans on non-accrual
Non-interest expense was down slightly in the quarter ended September 30, 2009 compared to the quarter ended June 30, 2009. Operating expenses for the nine months ended September 30, 2009 compared to the same period in 2008 increased due to general operational growth, the addition of a new business line to provide specialized cash management services and increased premiums for FDIC insurance.
A summary of operating results follows:
(Unaudited, dollars
in thousands Quarter ended Nine months ended
except per share September 30, June 30, September 30, September 30,
data) 2009 2009 2009 2008
------------ ------------ ------------ ------------
Interest income $ 990 $ 1,026 $ 3,021 $ 2,890
Interest expense 230 243 726 682
------------ ------------ ------------ ------------
Net interest income 760 783 2,295 2,208
Provision for loan
losses 775 1,095 1,970 475
Non-interest income 158 19 221 216
Non-interest
expense 1,150 1,296 3,516 3,129
------------ ------------ ------------ ------------
Net loss $ (1,007) $ (1,589) $ (2,970) $ (1,180)
============ ============ ============ ============
Loss per share $ (0.37) $ (0.58) $ (1.08) $ (0.43)
The Bank’s capital ratios remain well above current regulatory guidelines for well capitalized banks. Following are the Bank’s capital ratios for September 30, 2009 and December 31, 2008:
Minimum
required
September 30, December 31, to be well
2009 2008 capitalized
------------ ------------ ------------
Tier 1 leverage ratio 19.93% 24.94% 5.00%*
Tier 1 risk-based capital ratio 26.17% 28.48% 6.00%
Total risk-based capital ratio 27.44% 29.74% 10.00%
* Minimum for the Bank during the de novo period (first three years)
is 8.00%
“2009 remains a challenging year,” concluded Conniff, “but we are pleased that the Bank has continued to move forward and achieved growth in key areas. We have made strategic investments in people and systems to provide services to targeted customer groups which will enhance our strong core deposit growth. The ability to generate core deposits is crucial to our future as it allows the Bank to build the type of fortress balance sheet needed to effectively compete in our marketplace. In addition, our efforts to continue to fine tune our risk identification and management practices are a prerequisite for success. Finally, we have continued to support our customers across all business lines by providing well structured and underwritten credit facilities to help them succeed in these challenging times. That is what good banks do for their communities.”
Focus Business Bank is dedicated to meeting the banking needs of closely held businesses and entrepreneurs in Santa Clara County. The Bank’s office is located at 10 Almaden Boulevard in downtown San Jose, California and offers a variety of commercial banking products including loans, deposits, remote deposit capture and other cash management services oriented toward closely held businesses and their owners. The Bank specializes in commercial loans, SBA 7a and 504 loans and interim construction loans. The Bank also specializes in serving not for profit businesses and condominium homeowner associations by offering expertise and market knowledge, specialized products and services to these industries.
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Contact:
Richard L. Conniff
President and Chief Executive Officer
408.200.8701