SP Ban­corp re­ports im­proved 4Q re­sults

The Pak Banker - - 6BUSINESS -

SP Ban­corp Inc, the hold­ing com­pany for SharePlus Fed­eral Bank to­day an­nounced fi­nan­cial re­sults for the Com­pany's fourth quar­ter and the year ended De­cem­ber 31, 2012. Net in­come was $458,000, or $0.30 per share, for the fourth quar­ter of 2012, which brought 2012 net in­come to $1,514,000, or $0.97 per share.

We are pleased to report a solid fourth quar­ter as well as a sig­nif­i­cant im­prove­ment over last year's per­for­mance. Our 2012 net in­come in­creased $579,000 or 62% over 2011. Our mort­gage and com­mer­cial loan pro­duc­tion along with growth in our mort­gage ware­house port­fo­lio all contributed to the earn­ings im­prove­ment, said Pres­i­dent and CEO Jeff Weaver.

Fourth quar­ter net in­come in­creased $290,000 or 172.6%: Net in­come in­creased to $458,000 for the three months ended De­cem­ber 31, 2012, com­pared to $168,000 for the three months ended De­cem­ber 31, 2011. Fourth quar­ter non­in­ter­est in­come in­creased $174,000: Non­in­ter­est in­come for the three months ended De­cem­ber 31, 2012 in­creased to $1.1 mil­lion, com­pared to $882,000 for the three months ended De­cem­ber 31, 2011, driven pri­mar­ily by gains from the sale of mort­gage loans. De­posits in­creased $20.4 mil­lion or 9.6% over the De­cem­ber 2011 bal­ances: De­posits in­creased to $232.3 mil­lion at De­cem­ber 31, 2012 from $211.9 mil­lion at De­cem­ber 31, 2011. Ad­di­tional de­posits from ex­ist­ing con­sumer and busi­ness cus­tomers ac­counted for the ma­jor­ity of the in­crease.

Stock­hold­ers' eq­uity re­mained strong: The Com­pany re­ported $33.0 mil­lion in stock­hold­ers' eq­uity at De­cem­ber 31, 2012, a de­crease of $87,000, com­pared to $33.1 mil­lion at De­cem­ber 31, 2011. Stock­hold­ers' eq­uity de­clined slightly as a re­sult of re­pur­chases of com­mon stock of $1.2 mil­lion and ESOP shares pur­chased in the open mar­ket of $373,000, par­tially off- set by net in­come of $1.5 mil­lion for the twelve months ended De­cem­ber 31, 2012.

The in­crease in net in­come for the quar­ter ended De­cem­ber 31, 2012 re­flected a de­crease of $34,000 in net in­ter­est in­come, a $477,000 de­crease in the pro­vi­sion for loan losses and a $174,000 in­crease in non­in­ter­est in­come, par­tially off­set by in­creases in non­in­ter­est ex­pense of $93,000 and in­come taxes of $234,000.

Net in­ter­est in­come de­creased $34,000, or 1.3%, to $2.5 mil­lion for the quar­ter ended De­cem­ber 31, 2012 from $2.6 mil­lion for the quar­ter ended De­cem­ber 31, 2011. Our net in­ter­est-earn­ing as­sets in­creased to $42.4 mil­lion from $25.4 mil- lion. In con­trast, our net in­ter­est rate spread de­creased to 3.61% from 3.86%, and we ex­pe­ri­enced a 22 ba­sis point de­crease in our net in­ter­est mar­gin to 3.70% from 3.92%.

We recorded a pro­vi­sion for loan losses of $161,000 for the quar­ter ended De­cem­ber 31, 2012, com­pared to a pro­vi­sion for loan losses of $638,000 for the quar­ter ended De­cem­ber 31, 2011. The de­crease in the pro­vi­sion for loan losses was pri­mar­ily at­trib­ut­able to a higher de­gree of loss ex­po­sures in the fourth quar­ter of 2011.

Non in­ter­est in­come in­creased $174,000, or 19.7%, to $1.1 mil­lion for the quar­ter ended De­cem­ber 31, 2012 from $882,000 for the quar­ter ended De­cem­ber 31, 2011. The in­crease was due pri­mar­ily to an in­crease in gains from the sale of mort­gage loans. Non in­ter­est ex­pense in­creased $93,000, or 3.5%, to $2.7 mil­lion for the quar­ter ended De­cem­ber 31, 2012 from $2.7 mil­lion for the quar­ter ended De­cem­ber 31, 2011. The in­crease was pri­mar­ily due to an in­crease in com­pen­sa­tion and ben­e­fits (in­clud­ing mort­gage com­mis­sions), pro­fes­sional and out­side ser­vices and FDIC in­surance as­sess­ments, par­tially off­set by a de­crease in pro­vi­sions for losses on OREO, equip­ment ex­pense, op­er­a­tions from OREO and other non­in­ter­est ex­pense.

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