Queen­stown Bank re­ports re­cent earn­ings

Record Observer - - News -

QUEEN­STOWN — Queen­stown Ban­corp of Mary­land Inc. re­cently re­ported its fi­nan­cial re­sults for the six months end­ing June 30, 2016.

Net in­come was $2.6 mil­lion, or $2.04 per share, for the first six months, com­pared to net in­come of $2.5 mil­lion, or $1.98 per share for the same six months of 2015. Th­ese strong earn­ings re­sult in a re­turn on av­er­age as­sets of 1.16 per­cent and a re­turn on av­er­age stock­hold­ers’ eq­uity of 9.80 per­cent.

Sta­ble loan in­ter­est in­come com­bined with strong non­ma­tu­rity de­posit growth pro­duced net in­ter­est in­come of $9 mil­lion for the first six months of 2016, com­pared to $8.8 mil­lion for the same six months of 2015. This net in­ter­est in­come in­crease oc­curred de­spite the tem­po­rary re­duc­tion of the loan portfolio from pay­outs of short term com­mer­cial loans. Loans out­stand­ing at June 30, 2016 were $389.6 mil­lion com­pared to $395.2 mil­lion at June 30, 2015.

Ac­cord­ing to the bank, non­ma­tu­rity de­posit growth has been strong in 2016, with bal­ances grow­ing from $205.6 mil­lion at Dec. 31, 2015, to $213.1 mil­lion at June 30, 2016. This de­posit growth com­bined with strong lev­els of liq­uid­ity and cap­i­tal po­si­tion us well for planned con­ser­va­tive loan growth in the sec­ond half of 2016.

The pro­vi­sion for loan losses was re­duced from $641 thou­sand for the first six months of 2015, to $540 thou­sand for the first six months of 2016. All non­per­form­ing loan and past due loan bal­ances have con­tin­ued to de­cline re­sult­ing in the re­duc­tion in the loan loss pro­vi­sions. The al­lowance for loan losses as a per­cent­age of to­tal loans was 1.54 per­cent at June 30, 2016, com­pared to 1.56 per­cent at June 30, 2015.

Non­in­ter­est ex­penses have in­creased only $68 thou­sand, from $4,749 thou­sand in the first half of 2015, to $4,817 thou­sand for the first half of 2016. Sta­ble net in­ter­est in­come com­bined with non­in­ter­est ex­pense con­trol have re­sulted in an im­proved ef­fi­ciency ra­tio of 50.30 per­cent for the first half of 2016, com­pared to 51.52 per­cent for the first half of 2015. The ef­fi­ciency ra­tio mea­sures the cost of pro­duc­ing $1 of rev­enue, so our cost is 50 cents to pro­duce $1 of rev­enue, which is one of the best ef­fi­ciency ra­tios of all in­de­pen­dent banks in Mary­land.

Stock is avail­able for pur­chase. Ac­cord­ing to state­ment, re­cent prices are $31 per share.

For more in­for­ma­tion about the bank or how to buy shares, call 410-827-8881 or visit www.queen­stown-bank. com.

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