|By Marketwired .||
|January 30, 2013 02:39 PM EST||
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.
VP, Director of Marketing & Investor Relations
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
Jan. 31, 2015 03:00 AM EST Reads: 4,981
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Jan. 31, 2015 02:00 AM EST Reads: 4,976
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jan. 31, 2015 02:00 AM EST Reads: 10,670
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Jan. 31, 2015 01:00 AM EST Reads: 4,603
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
Jan. 31, 2015 01:00 AM EST Reads: 4,370
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
Jan. 31, 2015 12:30 AM EST Reads: 4,969
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Jan. 30, 2015 10:00 PM EST Reads: 4,475
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
Jan. 30, 2015 03:45 PM EST Reads: 4,382
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Jan. 30, 2015 03:15 PM EST Reads: 5,153
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 30, 2015 02:30 PM EST Reads: 4,555
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Jan. 30, 2015 02:15 PM EST Reads: 5,294
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
Jan. 30, 2015 01:45 PM EST Reads: 3,784
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Jan. 30, 2015 01:15 PM EST Reads: 4,387
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Jan. 30, 2015 01:15 PM EST Reads: 3,111
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Jan. 30, 2015 01:00 PM EST Reads: 6,165
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
Jan. 30, 2015 12:45 PM EST Reads: 2,589
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
Jan. 30, 2015 12:45 PM EST Reads: 2,906
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Jan. 30, 2015 12:00 PM EST Reads: 4,539
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 30, 2015 11:45 AM EST Reads: 4,968
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Jan. 30, 2015 11:45 AM EST Reads: 4,652