CORRECTING and REPLACING -- Alliance Bancorp, Inc. of Pennsylvania Reports Fourth Quarter and Year-End Results and Regular Quart
January 27 2011 - 5:51PM
Alliance Bancorp, Inc. of Pennsylvania (the "Company")
(Nasdaq:ALLBD) announced today its results for the quarter and year
ended December 31, 2010. The Company also announced that its Board
of Directors declared a regular quarterly cash dividend on the
common stock of the Company of $.03 per share, payable on February
25, 2011 to shareholders of record at the close of business on
February 11, 2011.
The Company reported net income of $606,000 or $.09 per share
for the quarter ended December 31, 2010 an increase of $331,000 or
120.4% as compared to net income of $275,000 or $.04 per share for
the quarter ended December 31, 2009. Net interest income
increased $483,000 or 16.2% to $3.5 million while other income
decreased $22,000 or 8.3% to $244,000 for the quarter ended
December 31, 2010 as compared to the same period in
2009. Other expenses increased $65,000 or 2.4% to $2.8 million
and the provision for loan losses decreased $103,000 or 34.0% to
$200,000 for the quarter ended December 31, 2010 as compared to
$303,000 for the same period in 2009. Lastly, income tax
expense amounted to $131,000 for the quarter ended December 31,
2010 as compared to income tax benefit of $37,000 for the same
period in 2009.
The increase in net interest income was primarily due to a
$958,000 or 42.8% decrease in interest expense on customer deposits
and FHLB advances, which more than offset a decrease of $475,000 or
9.1% in interest income primarily resulting from lower yields on
interest-earning assets. The decrease in other income was
primarily due to a lower amount of service charges on deposit
accounts. The increase in other expenses primarily resulted
from higher amounts of salaries and employee benefits, occupancy
and equipment expense and other non-interest expenses. The
decrease in the provision for loan losses was primarily due to a
modest increase in the allowance for loan losses that resulted from
our quarter end valuation analysis and a small net recovery.
The increase in the income tax expense was due to a higher
level of taxable income.
For the year ended December 31, 2010, net income amounted to
$1.1 million or $.16 per share, a decrease of $279,000 or 20.5% as
compared to net income of $1.4 million or $.20 per share for the
year ended December 31, 2009. Net interest income increased
$1.8 million or 15.4% to $13.4 million while other income decreased
$80,000 or 6.9% to $1.1 million for the year ended December 31,
2010 as compared to the same period in 2009. Other expenses
increased $475,000 or 4.4% to $11.4 million and the provision for
loan losses increased $1.6 million or 301.5% to $2.1 million for
the year ended December 31, 2010 as compared to $528,000 for the
same period in 2009. Lastly, income tax benefit increased
$87,000 to $128,000 for the year ended December 31, 2010 due to a
lower level of taxable income.
The increase in net interest income was primarily due to a $3.1
million or 32.3% decrease in interest expense on customer deposits
and FHLB advances, which more than offset a $1.3 million or 6.1%
decrease in interest income primarily resulting from lower yields
on interest-earning assets. In addition, borrowings were
reduced by $32.0 million in FHLB advance repayments during the year
2010 which had a favorable impact on net interest income. The
decrease in other income was primarily due to lower management fees
and loss on sale of real estate owned properties. The increase
in other expenses was primarily due to legal fees totaling $306,000
incurred to successfully defend against the improper use of our
intellectual property by a competitor which was partially offset by
lower FDIC deposit insurance premiums. The increase in the
provision for loan losses was primarily due to the increased amount
of non-performing loans and, to a lesser extent, net charge-offs to
the allowance for loan losses of $568,000 primarily related to two
commercial loan relationships.
The Company's total assets decreased $9.7 million or 2.1% to
$454.5 million at December 31, 2010 as compared to $464.2 million
at December 31, 2009. Cash and cash equivalents decreased
$13.0 million or 17.4% to $61.9 million and investment and
mortgage-backed securities increased $1.9 million or 2.5% to $77.6
million. Net loans receivable increased $1.0 million or 0.4%
to $286.1 million at December 31, 2010. Customer deposits
increased $9.3 million or 2.5% to $384.6 million while borrowings
decreased $27.7 million or 79.0% to 7.4 million at December 31,
2010. Total stockholders' equity amounted to $49.0 million or
10.8% of total assets as of December 31, 2010.
Nonperforming assets increased $8.2 million to $19.0 million or
4.17% of total assets at December 31, 2010 as compared to $10.8
million or 2.33% of total assets at December 31,
2009. Nonperforming assets at December 31, 2010 included $16.3
million in nonperforming loans and $2.7 million in other real
estate owned. The increase in nonperforming assets was
primarily due to a $6.1 million land and development loan for a
mixed use commercial real estate project located in Bradenton,
Florida being moved to non-accrual status as of March 31, 2010 and
a $1.7 million local commercial construction loan moved to
non-accrual status in the fourth quarter of 2010. Overall,
nonperforming loans included $2.4 million in single-family
residential real estate loans, $2.1 million in commercial real
estate loans, $11.4 million in real estate construction loans,
$74,000 in commercial business loans and $284,000 in consumer
loans. Management continues to work closely with its borrowers
to plan prudent exit strategies. The allowance for loan losses
amounted to $5.1 million or 31.2% of nonperforming loans at
December 31, 2010 as compared to $3.5 million or 45.1% at December
31, 2009.
Alliance Bancorp, Inc. of Pennsylvania is the holding company
for Alliance Bank, a Pennsylvania chartered, FDIC-insured savings
bank headquartered in Broomall, Pennsylvania. Alliance Bank
operates nine full-service branch offices located in Delaware and
Chester Counties, Pennsylvania.
This news release contains forward-looking
statements. 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. The Company's reports filed
from time-to-time with the Securities and Exchange Commission
describe some of these factors, including general economic
conditions, changes in interest rates, deposit flows, the cost of
funds, changes in credit quality and interest rate risks associated
with the Company's business and operations. 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 the
forward-looking statements are made or to reflect the occurrence of
unanticipated events.
ALLIANCE BANCORP, INC.
OF PENNSYLVANIA |
|
|
|
|
|
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(In thousands, except per share
data) |
|
|
|
|
|
|
Three Months
Ended |
Year
Ended |
|
December
31, |
December
31, |
|
2010 |
2009 |
2010 |
2009 |
Interest income |
$4,747 |
$5,222 |
$19,797 |
$21,091 |
Interest expense |
1,278 |
2,236 |
6,434 |
9,509 |
Net interest income |
3,469 |
2,986 |
13,363 |
11,582 |
Provision for loan losses |
200 |
303 |
2,120 |
528 |
Other income |
244 |
266 |
1,084 |
1,164 |
Other expenses |
2,776 |
2,711 |
11,375 |
10,900 |
Income before income tax expense
(benefit) |
737 |
238 |
952 |
1,318 |
Income tax expense (benefit) |
131 |
(37) |
(128) |
(41) |
Net income |
$ 606 |
$ 275 |
$ 1,080 |
$ 1,359 |
|
|
|
|
|
Basic earnings per share |
$0.09 |
$0.04 |
$0.16 |
$0.20 |
|
|
UNAUDITED SELECTED
CONSOLIDATED FINANCIAL DATA |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, |
|
|
|
|
|
2010 |
2009 |
Total assets |
|
|
|
|
$454,476 |
$464,216 |
Cash and cash equivalents |
|
|
|
|
61,891 |
74,936 |
Investment and mortgage-backed
securities |
|
|
|
|
77,574 |
75,691 |
Loans receivable - net |
|
|
|
|
286,056 |
285,008 |
Deposits (1) |
|
|
|
|
384,595 |
375,254 |
Borrowings (1) |
|
|
|
|
7,384 |
35,090 |
Total stockholders' equity |
|
|
|
|
48,991 |
48,445 |
|
|
|
|
|
|
|
(1) The amount of $3.1 million was
reclassified from Deposits to
Borrowings at December 31, 2009 to conform with amounts
presented at December 31, 2010. |
|
|
CONTACT: Peter J. Meier, CFO
Phone: (610) 359-6903
Fax: (610) 359-6908
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