Queenstown Bank reports recent earnings
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.