Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

Empire National Bank Announces Earnings for the Year Ended December 31, 2012

ISLANDIA, NY -- (Marketwire) -- 01/30/13 -- Empire National Bank (OTCQB: EMPK), today announced fourth quarter and year end results for 2012. Highlights for the quarter and the year include:

  • Total assets of $438.4 million at December 31, 2012, an increase of $98.7 million, or 29.0%, compared to the prior year end.
  • Total loans outstanding of $243.7 million at December 31, 2012, an increase of $30.8 million, or 14.5%, compared to the prior year end.
  • Investment securities available for sale of $180.2 million at December 31, 2012, an increase of $65.7 million, or 57.4%, increase from December 31, 2011.
  • Demand deposits of $172.2 million at December 31, 2012, an increase of $126.4 million, or 276%, increase from December 31, 2011.
  • Net income for the year ended December 31, 2012 of $3.6 million, a decrease of $1.0 million from $4.6 million for the year ended December 31, 2011.
  • Net income for the quarter ended December 31, 2012 of $376 thousand, a decrease of $1.0 million from $1.4 million for the quarter ended December 31, 2011.
  • Strong asset quality, with an allowance for loan losses comprising 1.84% of total loans at December 31, 2012, and total non-performing loans comprising 1.09% of total loans at December 31, 2012.
  • "Well Capitalized" regulatory capital levels, as of December 31, 2012
    • Tier 1 leverage capital ratio of 9.52%
    • Tier 1 risk-based capital ratio of 14.65%
    • Total risk-based capital ratio of 15.90%
  • Increasing book value per share of $9.64, as of December 31, 2012, an increase of 12.1% increase as compared to the prior year-end.

Douglas C. Manditch, Chairman and Chief Executive Officer stated, "As we approach our five year anniversary in February, we are pleased with the continued growth of the bank. Our core focus on customer service has benefited us. Satisfied customers continue to introduce our team to new relationships -- many of which have played a large part in our significant demand deposit and loan growth in 2012. As we begin 2013, we are excited to be expanding our footprint with the addition of our Mineola branch, which will be located at 170 Old Country Road. We expect to be open in the spring."

Earnings for the Fourth Quarter Ended December 31, 2012

Net Income was $376 thousand, or $0.09 per share, for the fourth quarter of 2012, compared to $1.4 million for the fourth quarter of 2011, a decrease of $1.0 million and $0.26 per share, respectively. Tax benefits recognized in the fourth quarter of 2011 as compared to the provision for income taxes in the fourth quarter of 2012 resulted in a reduction to net income of approximately $725 thousand. As compared to the fourth quarter of 2011, net securities gains decreased by $106 thousand, net interest income increased by $36 thousand, and other expenses increased by approximately $270 thousand. The increase in other expenses was primarily due to costs attributable to our focus on providing financial products and services targeted to professional practices. The increase in the net interest income of $36 thousand was primarily due to a decrease in interest expense of $172 thousand which was partially offset by a decrease in interest income of $136. The bank's net interest margin was 3.23% for the fourth quarter ended December 31, 2012.

Earnings for the Full Year Ended December 31, 2012

Net income was $3.6 million, or $0.83 per share, for the year ended 2012, compared to $4.6 million, or $1.09 per share for the year ended 2011, a decrease of $1.0 million and $0.26 per share, respectively. The decrease in net income was primarily attributable to an increase in other expenses of $1.5 million, a decrease in net securities gains of $783 thousand, an increase in provision of loan losses of $285 thousand; partially offset by an increase in net interest income of $1.2 million. The increase in other expenses resulted primarily from expenses associated with expansion into new markets and services. Salaries and benefits increased $644 thousand or 12.0% over the prior year as the bank staffed to meet these new demands. Costs relative to servicing our professional practice clients also increased in the current year. The increase in net interest income of $1.2 million in 2012, as compared to 2011, was primarily attributable to an increase in the average balance of interest earning assets of $65.6 million. The bank's net interest margin was 3.48% for the year ended December 31, 2012, a decrease of 34 basis points from the same period in 2011. The bank's yield on interest bearing assets decreased 54 basis points from 4.61% to 4.07% in 2012 and was partially offset by a decrease in the bank's cost and volume of interest bearing liabilities of two basis points from 1.01% to 0.99%.

Balance Sheet and Asset Quality

Total assets were $438.4 million at December 31, 2012, reflecting a $98.7 million increase from the prior year end. The growth in total assets was primarily attributable to an increase of $65.7 million in securities available for sale to $180.2 million at December 31, 2012. Securities available for sale increased as a result of management's intent to maximize total earning assets while diversifying its asset mix. Total loans increased by $30.8 million to $243.7 million at December 31, 2012.

At December 31, 2012, the bank's ratio of non-performing loans to total loans was 1.09% and its ratio of non-performing assets to total assets was 0.61%, remaining below those of the bank's peers. The allowance for loan losses to total loans was 1.84% at December 31, 2012 as compared to 1.98% at December 31, 2011.

Total deposits increased in 2012 by $98.4 million, or 37.1%, from $265.0 million to $363.4 million as deposits outpaced loan growth. At December 31, 2012, the bank's loan to deposit ratio was 67.0%. Demand deposits, which represent a valuable funding source, increased 276.0% from $45.8 million in 2011 to $172.2 million in 2012. Average demand deposits increased $85.2 million, or 181.0%, from $47.1 million in 2011 to $132.3 million in 2012. The material increase in demand deposits was attributable primarily to the bank's commitment and focus to providing financial service products and services targeted to professional practices. Notwithstanding the demand deposit growth attributable to professional practices, the bank also experienced significant growth in business banking demand deposits. Savings, NOW and money market deposits increased $3.2 million, or 2.5%, to $129.5 million at December 31, 2012, while higher cost deposits such as certificates of deposit of $100,000 or more and other time deposits decreased by $11.8 million and $19.4 million, respectively.

Stockholders' equity grew from $37.4 million to $42.2 million during 2012. The net increase was the result of net income of $3.6 million, and an increase in accumulated other comprehensive income of $733 thousand, which reflected the increase in the unrealized gain in the securities portfolio at December 31, 2012. At December 31, 2012, the bank was 'well capitalized' as defined by OCC regulation, with leverage, Tier 1 risk-based and total risk-based capital ratios of 9.52%, 14.65% and 15.90%, respectively.

Opportunities and Challenges

"Although the current economy and fiscal policies continue to pose challenges to privately owned small to mid-sized businesses, our team is committed to serving the financial needs of these businesses as they strive to grow. We have plenty of capacity to deploy funds into commercial loans to support the Long Island economy. Albeit challenging times, we are focused on positioning the bank for future growth and capitalizing on opportunities as they appear. Our Mineola branch will offer more convenience for our Nassau county customer base, while creating new customer relationships in the Nassau county market," commented Thomas M. Buonaiuto, President and Chief Operating Officer.



Balance Sheet (unaudited)
(dollars in thousands)
                                                December 31,   December 31,
                                                        2012           2011
                                               -------------  -------------
ASSETS
Total cash and due from banks                  $       4,908  $       4,388
Securities available for sale, at fair value         180,202        114,502
Securities, restricted                                 3,183          3,002
Loans, net                                           239,211        208,660
Premises and equipment, net                            6,412          6,850
Other assets and accrued interest receivable           4,483          2,331
                                               -------------  -------------
  Total Assets                                 $     438,399  $     339,733
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Demand Deposits                                $     172,165  $      45,765
Savings, N.O.W. and money market deposits            129,451        126,335
Certificates of deposit of $100,000 or more
 and other time deposits                              61,742         92,920
                                               -------------  -------------
  Total Deposits                               $     363,358        265,020
Short-term borrowings                                 30,109         34,449
Other liabilities and accrued expenses                 2,716          2,832
                                               -------------  -------------
Total Liabilities                                    396,183        302,301
                                               -------------  -------------
Total Stockholders' Equity                            42,216         37,432
                                               -------------  -------------
Total Liabilities and Stockholders' Equity     $     438,399        339,733
                                               =============  =============

Selected Financial Data (unaudited)
Allowance for Loan Losses to Total Loans                1.84%          1.98%
Non-performing Loans to Total Loans                     1.09%          1.03%
Non-performing Assets to Total Assets                   0.61%          0.65%

Capital Ratios (unaudited)
Tier 1 Leverage Ratio                                   9.52%         10.80%
Tier 1 Risk-Based Capital Ratio                        14.65%         15.36%
Total Risk-Based Capital Ratio                         15.90%         16.62%

Book Value per Share                           $        9.64  $        8.60



Statement of Operations (unaudited)
(dollars in thousands, except per share data)

                         For the three months ended     For the year ended
                       December  September   December   December  December
                       31, 2012   30, 2012   31, 2011   31, 2012   31, 2011
Interest income       $   3,769  $   3,989  $   3,905  $  15,696  $  14,765
Interest expense            472        572        644      2,268      2,516
Net interest income   $   3,297  $   3,417  $   3,261  $  13,428  $  12,249
Provision for loan
 losses                       -        285          -        285          -
Net interest income
 after provision for
 loan losses              3,297      3,132      3,261     13,143     12,249
Net securities
 (losses) gains              80         94        186      1,336      2,119
Other income                154        146        141        605        511
Other expense             3,149      3,097      2,879     12,532     10,989
Income before income
 taxes                      382        275        709      2,552      3,890
Income tax (expense)
 benefit                     (6)      (130)       719      1,072        719
Net income            $     376  $     145  $   1,428  $   3,624  $   4,609

Basic earnings per
 share                $    0.09  $    0.03  $    0.34  $    0.83  $    1.09
Diluted earnings per
 share                $    0.09  $    0.03  $    0.34  $    0.83  $    1.09

Selected Financial
 Data (unaudited)
Return on Average
 Assets                    0.35%      0.14%      1.67%      0.90%      1.39%
Return on Average
 Equity                    3.53%      1.39%     15.81%      8.90%     13.92%
Net Interest Margin        3.23%      3.36%      3.95%      3.48%      3.82%
Efficiency Ratio          91.25%     86.88%     84.62%     89.30%     86.12%

About Empire National Bank

Empire National Bank specializes in serving the financial needs of privately owned small to mid-sized businesses, professionals, nonprofit organizations, real estate investors, and consumers. The Bank has three banking offices located in Islandia, Shirley and Port Jefferson Station. Our bankers take pride in understanding the needs of each and every customer so the bank can deliver the highest quality service with a sense of urgency.

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate" or "continue," or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within Empire National Bank's control. The forward looking statements included in this report are made only as of the date of this report. We have no intention, and do not assume any obligation, to update these forward looking statements.

Contact:
William Franz
VP, Director of Marketing & Investor Relations
(631) 348-4444

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...