|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
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 30, 2015 01:00 AM EDT Reads: 426
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 30, 2015 01:00 AM EDT Reads: 379
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Aug. 29, 2015 11:45 PM EDT Reads: 421
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Aug. 29, 2015 07:30 PM EDT Reads: 376
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Aug. 29, 2015 03:45 PM EDT Reads: 107
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Aug. 29, 2015 11:00 AM EDT Reads: 202
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Aug. 29, 2015 11:00 AM EDT Reads: 250
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 29, 2015 10:30 AM EDT Reads: 112
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 29, 2015 09:30 AM EDT Reads: 854
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Aug. 29, 2015 08:45 AM EDT Reads: 585
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Aug. 29, 2015 08:45 AM EDT Reads: 198
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 29, 2015 07:45 AM EDT Reads: 130
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Aug. 28, 2015 07:45 PM EDT Reads: 199
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 28, 2015 06:00 PM EDT Reads: 328
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Aug. 26, 2015 07:00 AM EDT Reads: 122
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 547
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 476
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 30, 2015 07:30 PM EDT Reads: 1,561
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Jul. 30, 2015 02:30 PM EDT Reads: 275
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 30, 2015 12:00 PM EDT Reads: 2,223