EXCHANGE BANK (SANTA ROSA, CA) SANTA ROSA, Calif., Oct. 19, 2016 /PRNewswire/ -- Today Exchange Bank (OTC: EXSR) announced results for the third quarter of 2016 with a profit after tax of $5.4 million, compared to $5.1 million in the third quarter of 2015. This represents an increase of $257 thousand or a 5% increase compared to the same period a year ago. "The increase in earnings for the third quarter is a significant accomplishment in this low rate environment that is posing a challenge to the entire banking industry. The meaningful increases we have witnessed during this past year in both loan and deposit volumes, are a result of the hard work and dedication of our employees, as well as the continued loyalty of our clients and support from the communities we serve," stated Gary Hartwick, President and CEO. The Bank singled out strong loan activity and the continued expansion of the Bank's Trust and Investment Management business as key contributors to the success in financial results.
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The core earnings of the Bank are driven primarily by continued growth in loans which were funded by growth in deposits. Loan growth of $140 million or 11.3% during the 12 month period ending September 30, 2016 was funded by deposit growth of $127 million or 7.2%.This asset growth led to an increase in net interest income of approximately $900 thousand during the third quarter of 2016, a 5.3% increase over the similar quarter in 2015.
During the nine-months ending September 30, 2016, the Bank achieved net earnings of $16.05 million, compared to $15.9MM during the similar nine-month period in 2015. During the nine-months ending September 30, 2016 the Bank's core earnings as measured by net interest income increased $3.3 million over the similar nine-month period in 2015, an increase of 6.6%. Net earnings for the Bank rose by $144 thousand or approximately 1% year-over-year as this increase in net interest income was largely offset by the decline in the recapture of provision for loan loss which fell from $3.2 million for the nine-months ending September 30, 2015 to $900 thousand during the similar nine-month period ending September 30, 2016.
Exchange Bank paid a quarterly cash dividend of $0.70 per share on common stock outstanding to shareholders on September 16, 2016. 51% of the cash dividend goes to the Doyle Trust which funds the Doyle Scholarships at the Santa Rosa Junior College.
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors -- many of which are beyond the Company's control -- could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward-looking statements are made.
EXCHANGE BANK
and Subsidiaries
Consolidated Balance Sheet
(Unaudited)
September 30, 2016 and 2015
(In Thousands)
Change % Change
ASSETS 2016 2015 16/15 16/15
------ ---- ---- ----- -----
Cash and due from banks $31,249 $27,453 3,796 13.83%
Fed Funds Sold 31,507 78,702 (47,195) -59.97%
Total Cash and cash equivalents 62,756 106,155 (43,399) -40.88%
------ ------- ------- ------
Investments
Interest-earning deposits in other financial institutions 78,500 71,000 7,500 10.56%
Securities available for sale 518,612 488,401 30,211 6.19%
FHLB Stock 10,015 9,036 979 10.83%
Loans and leases
Real estate 937,385 830,868 106,517 12.82%
Consumer 113,975 102,771 11,204 10.90%
Commercial 337,211 314,362 22,849 7.27%
------- ------- ------ ----
1,388,571 1,248,001 140,570 11.26%
Less allowance for loan and lease losses (37,962) (37,676) (286) 0.76%
------- ------- ---- ----
Net loans and leases 1,350,609 1,210,325 140,284 11.59%
--------- --------- ------- -----
Bank premises and equipment 17,372 16,133 1,239 7.68%
Other assets 81,404 69,701 11,703 16.79%
------ ------ ------ -----
Total Assets $2,119,268 $1,970,751 148,517 7.54%
========== ========== ======= ====
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Deposits
Non-Interest Bearing Demand 712,334 664,010 48,324 7.28%
Interest Bearing
Transaction 339,570 291,596 47,974 16.45%
Money market 262,923 234,811 28,112 11.97%
Savings 393,237 368,495 24,742 6.71%
Time 193,136 215,247 (22,111) -10.27%
------- ------- ------- ------
Total Deposits 1,901,200 1,774,159 127,041 7.16%
Other borrowings 8,000 8,000 - 0.00%
Other liabilities 22,801 14,777 8,024 54.30%
------ ------ ----- -----
Total liabilities 1,932,001 1,796,936 135,065 7.52%
--------- --------- ------- ----
Stockholders' equity 187,267 173,815 13,452 7.74%
------- ------- ------ ----
Total Liabilities and Stockholder's Equity $2,119,268 $1,970,751 148,517 7.54%
========== ========== ======= ====
EXCHANGE BANK
and Subsidiaries
Consolidated Statement of Operations
(Unaudited)
For the Period Ended September 30, 2016 and 2015
(In Thousands, except per share amounts) Nine Months Ending
Quarter Nine Months Ending Change % Change
2016 2015 2016 2015 16/15 16/15
---- ---- ---- ---- ----- -----
Interest Income
Interest and fees on loans $15,784 $14,630 $46,752 $44,219 $2,533 5.73%
Interest on investments securities 2,628 2,614 7,978 7,767 211 2.72%
----- ----- ----- ----- --- ----
Total interest income 18,412 17,244 54,730 51,986 2,744 5.28%
------ ------ ------ ------ ----- ----
Interest expense
Interest on deposits 188 235 585 796 (211) -26.51%
Other interest expense 96 95 286 656 (370) -56.40%
--- --- --- --- ---- ------
Total interest expense 284 330 871 1,452 (581) -40.01%
--- --- --- ----- ---- ------
Net interest income 18,128 16,914 53,859 50,534 3,325 6.58%
------ ------ ------ ------ ----- ----
Provision (reversal of) for losses
on loans - (300) (900) (3,200) 2,300 -71.88%
--- ---- ---- ------ ----- ------
Net interest income after provision
for loan and leases
18,128 17,214 54,759 53,734 1,025 1.91%
------ ------ ------ ------ ----- ----
Non-interest income 5,474 5,407 15,356 16,028 (672) -4.19%
Non interest expense
Salary and benefit costs 8,414 7,430 25,356 23,825 1,531 6.43%
Other expenses 6,510 6,712 18,887 19,566 (679) -3.47%
----- ----- ------ ------ ---- -----
Total non-interest expense 14,924 14,142 44,243 43,391 852 1.96%
------ ------ ------ ------ --- ----
Income before income taxes 8,678 8,479 25,872 26,371 (499) -1.89%
Provision for income taxes 3,283 3,341 9,821 10,464 (643) -6.14%
----- ----- ----- ------ ---- -----
Net income $5,395 $5,138 $16,051 $15,907 $144 0.91%
====== ====== ======= ======= ==== ====
Basic earnings per common share $3.15 $3.00 $9.36 $9.28 $0.08 0.91%
Dividends per share $0.70 $0.55 $2.05 $1.60 $0.45 28.13%
------------------- ----- ----- ----- ----- ----- -----
Earnings per share is computed
by dividing net income, by the
weighted averaged number of
shares outstanding during the
year.
Total average shares
outstanding for both 2016 and
2015 was 1,714,344
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SOURCE Exchange Bank
