Clifton Bancorp Inc. (Nasdaq: CSBK), the holding company for
Clifton Savings Bank (the “Bank”), today announced results for the
quarter and year ended March 31, 2015. Net income for the fourth
quarter was $3.51 million ($0.13 per diluted share) as compared to
net income of $1.56 million ($0.06 per diluted share) for the
quarter ended March 31, 2014. Net income for the year ended March
31, 2015 was $8.55 million ($0.33 per diluted share) as compared to
$6.47 million ($0.25 per diluted share) for the same period in
2014.
Notable Items
- Quarterly income of $3.51 million, up
significantly versus previous quarters, included non-recurring
items;
- Net loans increased 1.9% and 9.7%
during the three months and year ended March 31, 2015,
respectively; and
- Multi-family and commercial real estate
loans increased $27.5 million, or 58.9%, from March 31, 2014
Paul M. Aguggia, Chairman, President, and Chief Executive
Officer, stated, “This year our team concentrated on expanding our
real estate lending activities while concurrently executing on our
strategy to enhance customer relationships and reduce interest
expense. We also invested in upgrading our infrastructure and
augmenting personnel to deliver enhanced products and services. Our
announcement of our proposed new Hoboken office illustrates our
desire to bring our community-focused banking model to key
locations. Combined, these initiatives helped us turn in a solid
financial performance this past year and position us nicely for our
2016 fiscal year and beyond.”
The Board of Directors is also pleased to announce a regular
cash dividend of $.06 per share, as well as an additional, special
dividend of $.06 per share. The combined $0.12 dividend per share
will be paid on June 12, 2015 to stockholders of record on May 29,
2015.
Commenting on the combined dividend, Mr. Aguggia stated: “In
light of our strong capital position the Board decided to pay out
to shareholders a significant portion of the additional earnings
recognized this quarter from non-recurring items.”
Balance Sheet and Credit Quality
Review
Total assets decreased $79.1 million, or 6.3%, to $1.19 billion
at March 31, 2015, from $1.27 billion at March 31, 2014. The
decrease in total assets was primarily due to paying down
borrowings and continuing to manage the cost of funds by allowing
controlled, higher priced deposit runoff. In addition, stock
subscription deposits in connection with the Bank’s second-step
conversion totaling $154.3 million were reflected in total assets
at March 31, 2014. The conversion was completed on April 1,
2014.
Net loans increased $56.6 million, or 9.7%, to $641.1 million at
March 31, 2015 from $584.5 million at March 31, 2014. One- to
four-family real estate loans increased $30.6 million, or 5.8%,
while multi-family and commercial real estate loans increased $27.5
million, or 58.9%, during fiscal 2015. Securities, including both
available for sale and held to maturity issues, decreased $3.4
million, or 0.8%, to $418.9 million at March 31, 2015 from $422.3
million at March 31, 2014. Cash and cash equivalents decreased
$143.3 million, or 74.4%, to $49.3 million at March 31, 2015 from
$192.6 million at March 31, 2014 as stock subscription deposits
held at March 31, 2014 were redeployed into higher-yielding assets
or used to repay borrowings during fiscal 2015 following the
completion of the second-step conversion.
Deposits decreased $64.4 million, or 8.4%, to $699.5 million at
March 31, 2015 from $763.9 million at March 31, 2014, mainly due to
the previously noted downsizing of higher priced deposit accounts.
In addition, $5.9 million in deposits outstanding on March 31, 2014
were used to purchase stock in the second-step conversion. Borrowed
funds decreased $35.0 million, or 24.6%, to $107.5 million at March
31, 2015 from $142.5 million at March 31, 2014, as two borrowings
were repaid in accordance with their original terms during fiscal
2015. Total stockholders’ equity increased $173.9 million, or
89.6%, to $368.0 million at March 31, 2015 from $194.1 million at
March 31, 2014. The increase resulted primarily from net proceeds
from the second-step conversion of $163.2 million, net income of
$8.55 million, and exercises of stock options and related tax
benefits of $7.95 million, partially offset by cash dividends paid
of $7.63 million.
Non-accrual loans increased $516,000, or 10.1%, to $5.6 million
at March 31, 2015 from $5.1 million at March 31, 2014. Included in
non-accrual loans at March 31, 2015 were nine loans totaling $1.3
million that were current or less than 90 days delinquent, but
which were previously 90 days or more delinquent and on a
non-accrual status pending a sustained period of repayment
performance (generally six months). The percentage of nonperforming
loans to total gross loans remained constant at 0.88% at both March
31, 2015 and 2014. The percentage of allowance for loan losses to
nonperforming loans increased to 61.53% at March 31, 2015 from
59.84% at March 31, 2014.
During the year ended March 31, 2015, net charge-offs totaled
$313,000 as compared to $206,000 during the year ended March 31,
2014. For the year ended March 31, 2015, the charge-offs related to
five one- to four-family residential real estate loans. For fiscal
2014, the charge-offs related to three one- to four-family
residential real estate loans and one multi-family loan
restructuring, net of a partial recovery from a private mortgage
insurance claim on a loan charged-off in a previous quarter.
Income Statement Review
Net interest income increased $88,000, or 1.4%, to $6.40
million, for the three months ended March 31, 2015, as compared to
$6.31 million for three months ended March 31, 2014, reflecting an
increase of $152.9 million in average net interest-earning assets
offset by a decrease of 12 basis points in net interest margin.
Average interest-earning assets increased $67.8 million, or 6.5%,
during the three months ended March 31, 2015, as compared to the
three months ended March 31, 2014, which consisted of increases of
$55.4 million in loans, $10.8 million in investment securities, and
$24.4 million in other interest-earning assets, partially offset by
a decrease of $22.8 million in mortgage-backed securities. The
average balance of loans increased as the Bank continues to
emphasize the growth of its loan portfolio, but repayment levels
remained stable during the quarter. Investment securities increased
with the deployment of some cash and cash equivalents into
higher-yielding agency securities. Other interest-earning assets
increased as funds received from calls and principal repayments of
investment and mortgage-backed securities were kept in cash and
cash equivalents. Mortgage-backed securities decreased due to the
sales and principal repayments of securities exceeding purchases,
and funds were redeployed into loans and other investment
securities. Average interest-bearing liabilities decreased $85.1
million, or 9.6%, during the three months ended March 31, 2015,
primarily as a result of decreases of $56.3 million in
interest-bearing deposits and $28.8 million in borrowings.
Net interest income increased $2.25 million, or 9.4%, to $26.13
million for the year ended March 31, 2015, as compared to $23.88
million for year ended March 31, 2014, reflecting an increase of
$127.0 million in average net interest-earning assets partially
offset by a decrease of 1 basis point in net interest margin.
Average interest-earning assets increased $102.0 million, or 10.1%,
during the year ended March 31, 2015, as compared to the year ended
March 31, 2014, and consisted of increases of $82.9 million in
loans, $12.9 million in investment securities, and $28.6 million in
other interest-earning assets, partially offset by a decrease of
$22.4 million in mortgage-backed securities. The average balance of
loans increased while repayment levels remained stable. Investment
securities increased with the deployment of second-step conversion
proceeds into higher-yielding agency and municipal securities.
Other interest-earning assets increased as funds received from
calls, sales and principal repayments of investment and
mortgage-backed securities remained in cash and cash equivalents.
Mortgage-backed securities decreased due to the sales and principal
repayments of securities exceeding purchases, as funds were
redeployed into loans and other investment securities. Average
interest-bearing liabilities decreased $25.0 million, or 2.9%,
during the year ended March 31, 2015, primarily as a result of a
decrease of $48.1 million in interest-bearing deposits, partially
offset by an increase of $23.1 million in borrowings, mostly
originated in late 2013, which were used primarily to fund loan
growth.
The provision for loan losses decreased $13,000, or 11.5%, and
$60,000, or 7.7%, for the quarter and year ended March 31, 2015,
respectively, as compared to the respective 2014 periods. The
provision was $100,000 as compared to $113,000 for the three- month
periods ended March 31, 2015 and 2014, respectively, and $717,000
and $777,000 for the years ended March 31, 2015 and 2014,
respectively. The overall decreases in the provision for loan
losses for the 2015 periods were mainly the result of overall
favorable trends in qualitative factors related to delinquency and
charge-offs considered in the periodic review of the general
valuation allowance.
Non-interest income increased $2.74 million, from $352,000 for
the three months ended March 31, 2014 to $3.09 million for the
three months ended March 31, 2015, and increased $2.45 million,
from $1.87 million for the year ended March 31, 2014 to $4.31
million for the year ended March 31, 2015. The increases for both
periods were mainly attributable to increases in income from bank
owned life insurance and gains on sales of securities. Income from
bank owned life insurance increased $877,000 and $1.05 million,
respectively, for the three- and twelve-month periods ended March
31, 2015, as the Bank purchased additional insurance during fiscal
2015 and recorded a death benefit in March 2015. Gains on sale of
securities increased $1.90 million and $1.44 million to $1.90
million and $2.01 million, respectively, during the three- and
twelve-month periods ended March 31, 2015, from $0 and $566,000,
respectively, for the same 2014 periods. In the 2015 periods, the
gain on the sale of securities resulted mostly from the sale of
certain mortgage-backed securities which had a very small amount of
principal remaining relative to the principal balance
purchased.
Non-interest expenses increased $191,000, or 4.6%, to $4.36
million for the three months ended March 31, 2015, as compared to
$4.17 million for the three months ended March 31, 2014, and
increased $2.0 million, or 13.4%, to $17.1 million for the year
ended March 31, 2015 as compared to $15.1 million for the year
ended March 31, 2014. The increases were driven by increases in
salaries and employee benefits, equipment expense and advertising
and marketing expenses. The increases in salaries and employee
benefits in both of the 2015 periods include increases of $184,000
and $683,000, respectively, in employee stock ownership plan
expenses for the three- and twelve-month periods ended March 31,
2015. The increase in equipment expense (and certain miscellaneous
expense) for the year ended March 31, 2015 was mainly related to
expenditures associated with the Bank’s core processor change.
Advertising and marketing expenses increased for both periods as
management has intensified efforts to offer new products and expand
the Bank’s current customer base.
About Clifton Bancorp
Inc.
Clifton Bancorp Inc. is the holding company of Clifton Savings
Bank, a federally chartered savings bank headquartered in Clifton,
New Jersey. Clifton Savings Bank is an organization with dedicated
people serving communities, residents and businesses. Clifton
Savings operates 12 full-service banking offices located in the
diverse and vibrant Northeastern counties of New Jersey.
Forward-Looking
Statements
Clifton Bancorp makes forward-looking statements in this news
release. These forward-looking statements may include: statements
of goals, intentions, earnings expectations, and other
expectations; estimates of risks and of future costs and benefits;
assessments of probable loan and lease losses; assessments of
market risk; and statements of the ability to achieve financial and
other goals.
Forward-looking statements are typically identified by words
such as “believe,” “expect,” “anticipate,” “intend,” “outlook,”
“estimate,” “forecast,” “project” and other similar words and
expressions. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made.
Clifton Bancorp does not assume any duty and does not undertake to
update its forward-looking statements. Because forward-looking
statements are subject to assumptions and uncertainties, actual
results or future events could differ, possibly materially, from
those that Clifton Bancorp anticipated in its forward-looking
statements and future results could differ materially from
historical performance.
Clifton Bancorp’s forward-looking statements are subject to the
following principal risks and uncertainties: general economic
conditions and trends, either nationally or locally; conditions in
the securities markets; changes in interest rates; changes in
deposit flows, and in the demand for deposit, loan, and investment
products and other financial services; changes in real estate
values; changes in the quality or composition of the loan or
investment portfolios; changes in competitive pressures among
financial institutions or from non-financial institutions; the
ability to retain key members of management; changes in
legislation, regulations, and policies; and a variety of other
matters which, by their nature, are subject to significant
uncertainties. Clifton Bancorp provides greater detail regarding
some of these factors in the “Risk Factors” section of its Annual
Report on Form 10-K, which was filed on June 6, 2014. Clifton
Bancorp’s forward-looking statements may also be subject to other
risks and uncertainties, including those that it may discuss
elsewhere in this news release or in its filings with the SEC,
accessible on the SEC’s website at www.sec.gov.
Selected Consolidated Financial Condition Data
At March 31, 2015
2014 (In thousands)
Financial Condition Data:
Total assets $ 1,186,924 $ 1,265,990 Loans
receivable, net 641,084 584,507 Cash and cash equivalents 49,308
192,581 Securities 418,875 422,295 Deposits 699,476 763,912 FHLB
advances 107,500 142,500 Stock subscription deposits - 154,345
Total stockholders' equity 368,001 194,137
Selected Consolidated
Operating Data
Three Months Ended
March 31,
Year Ended March 31,
2015 2014 2015
2014 (In thousands, except share and per share data)
Operating Data: Interest income $ 8,558 $ 8,657 $ 35,162 $
33,737 Interest expense 2,157 2,343 9,034
9,862 Net interest income 6,401 6,314 26,128 23,875
Provision for loan losses 100 113 717
777 Net interest income after provision for loan losses 6,301 6,201
25,411 23,098 Non-interest income 3,094 352 4,313 1,867
Non-interest expenses 4,362 4,171 17,106
15,081 Income before income taxes 5,033 2,382 12,618 9,884
Income taxes 1,520 825 4,064 3,419 Net
income $ 3,513 $ 1,557 $ 8,554 $ 6,465 Basic earnings per share $
0.14 $ 0.06 $ 0.33 $ 0.25 Diluted earnings per share $ 0.13 $ 0.06
$ 0.33 $ 0.25 Average shares outstanding - basic 25,979
25,590 25,538 25,391 Average shares outstanding - diluted 26,073
25,817 25,698 25,633
Average Balance Table
Three Months Ended March 31, 2015
2014
AverageBalance
InterestandDividends
Yield/Cost
AverageBalance
InterestandDividends
Yield/Cost
Assets:
(Dollars in thousands)
Interest-earning assets: Loans receivable $636,175 $5,756 3.62%
$580,822 $5,591 3.85% Mortgage-backed securities 283,461 2,013
2.84% 306,279 2,421 3.16% Investment securities 143,308 697 1.95%
132,442 563 1.70% Other interest-earning assets 45,633 92 0.81%
21,235 82 1.54% Total interest-earning assets 1,108,577 8,558 3.09%
1,040,778 8,657 3.33% Non-interest-earning assets 81,989
105,327
Total assets $1,190,566 $1,146,105
Liabilities and stockholders' equity:
Interest-bearing liabilities: Demand accounts $54,581 18 0.13%
$57,913 19 0.13% Savings and Club accounts 138,978 53 0.15% 154,027
80 0.21% Certificates of deposit 500,158 1,523 1.22% 538,081
1,652 1.23% Total interest-bearing deposits
693,717 1,594 0.92% 750,021 1,751 0.93% FHLB Advances 108,750 563
2.07% 137,500 592 1.72% Total
interest-bearing liabilities 802,467 2,157 1.08% 887,521 2,343
1.06% Non-interest-bearing liabilities: Non-interest-bearing
deposits 12,295 17,098 Other non-interest-bearing liabilities 9,983
48,827 Total non-interest-bearing liabilities 22,278 65,925
Total liabilities 824,745 953,446 Stockholders' equity 365,821
192,659
Total liabilities and stockholders' equity
$1,190,566 $1,146,105 Net interest income
$6,401 $6,314 Interest rate spread 2.01% 2.27% Net interest margin
2.31% 2.43% Average interest-earning assets to average
interest-bearing liabilities 1.38 x 1.17 x
Year Ended
March 31, 2015 2014
Interest Interest Average and
Yield/ Average and Yield/
Balance Dividends
Cost Balance
Dividends Cost
Assets: (Dollars in thousands) Interest-earning assets:
Loans receivable $617,696 $23,150 3.75% $ 534,787 $21,023 3.93%
Mortgage-backed securities 298,251 8,998 3.02% 320,684 10,243 3.19%
Investment securities 146,327 2,657 1.82% 133,401 2,256 1.69% Other
interest-earning assets 46,693 357 0.76% 18,098 215 1.19% Total
interest-earning assets 1,108,967 35,162 3.17% 1,006,970 33,737
3.35% Non-interest-earning assets 107,642 80,648
Total
assets $1,216,609 $1,087,618
Liabilities and stockholders' equity: Interest-bearing
liabilities: Demand accounts $55,544 72 0.13% 57,785 80 0.14%
Savings and Club accounts 140,118 236 0.17% 152,038 418 0.27%
Certificates of deposit 519,183 6,399 1.23% 553,114
7,204 1.30% Total interest-bearing deposits 714,845
6,707 0.94% 762,937 7,702 1.01% FHLB Advances 119,423 2,327 1.95%
96,346 2,160 2.24% Total
interest-bearing liabilities 834,268 9,034 1.08% 859,283 9,862
1.15% Non-interest-bearing liabilities: Non-interest-bearing
deposits 11,676 15,540 Other non-interest-bearing liabilities
11,182 23,306 Total non-interest-bearing liabilities 22,858 38,846
Total liabilities 857,126 898,129 Stockholders' equity
359,483 189,489
Total liabilities and stockholders' equity
$1,216,609 $1,087,618 Net interest income
$26,128 $23,875 Interest rate spread 2.09% 2.20% Net interest
margin 2.36% 2.37% Average interest-earning assets to average
interest-bearing liabilities 1.33
x
1.17
x
Asset Quality Data Year Ended
March 31, 2015
2014 (Dollars in thousands) Allowance for loan
losses: Allowance at beginning of period $ 3,071 $ 2,500 Provision
for loan losses 717 777 Charge-offs (313 ) (222 ) Recoveries
- 16 Net charge-offs (313 ) (206 )
Allowance at end of period $ 3,475 $ 3,071
Allowance for loan losses to total gross loans 0.54 %
0.52 % Allowance for loan losses to nonperforming loans 61.53 %
59.84 %
At March 31, 2015
2014 (Dollars in thousands) Nonperforming
Assets: Nonaccrual loans: One- to four-family real estate $ 4,555 $
4,848 Multi-family real estate 581 - Commercial real estate 439 247
Consumer real estate 73 37 Total
nonaccrual loans 5,648 5,132 Real estate owned -
- Total nonperforming assets $ 5,648 $ 5,132
Total nonperforming loans to total gross loans 0.88 %
0.88 % Total nonperforming assets to total assets 0.48 % 0.41 %
Selected Consolidated Financial Ratios
Three Months Ended March 31,
Year Ended March 31, Selected Performance Ratios
(1): 2015 2014 2015
2014 Return on average assets 1.18% 0.54%
0.70% 0.59% Return on average equity 3.84% 3.23% 2.38% 3.41%
Interest rate spread 2.01% 2.27% 2.09% 2.20% Net interest margin
2.31% 2.43% 2.36% 2.37% Non-interest expenses to average assets
1.47% 1.46% 1.41% 1.39% Efficiency ratio (2) 45.94% 62.57% 56.19%
58.59%
Average interest-earning assets to
average
interest-bearing liabilities
1.38x 1.17x 1.33x 1.17x Average equity to average assets 30.73%
16.81% 29.55% 17.42% Dividend payout ratio 44.35% 0.00% 89.22%
71.88%
Net charge-offs to average outstanding
loans during
the period
0.00% 0.06% 0.05% 0.04% (1) Performance ratios are
annualized.
(2) Represents non-interest expense
divided by the sum of net interest income and non-interest income
including gains and losses on the sale of assets.
Quarterly Data Quarter Ended
March 31,
2015
December 31,
2014
September 30,
2014
June 30,
2014
March 31,
2014 (1)
(In thousands except
shares and per share data)
Operating
Data
Interest income $ 8,558 $ 8,993 $ 8,899 $ 8,712 $ 8,657 Interest
expense 2,157 2,249 2,317
2,311 2,343 Net interest income 6,401
6,744 6,582 6,401 6,314 Provision for loan losses 100
178 301 138 113
Net interest income after provision for loan losses 6,301
6,566 6,281 6,263 6,201 Non-interest income 3,094 397 474 348 352
Non-interest expenses 4,362 4,075
4,532 4,137 4,171 Income
before income taxes 5,033 2,888 2,223 2,474 2,382 Income taxes
1,520 948 744 852
825 Net income $ 3,513 $ 1,940 $
1,479 $ 1,622 $ 1,557
Share
Data
Basic earnings per share $ 0.14 $ 0.08 $ 0.06 $ 0.06 $ 0.06 Diluted
earnings per share $ 0.13 $ 0.08 $ 0.06 $ 0.06 $ 0.06 Dividends per
share $ 0.06 $ 0.06 $ 0.06 $ 0.12 $ - Average shares outstanding -
basic 25,979 25,594 25,333 25,244 25,590 Average shares outstanding
- diluted 26,073 25,728 25,521 25,413 25,817 Shares outstanding at
period end 27,326 27,145 26,676 26,596 26,529
Financial
Condition Data
Total assets $ 1,186,924 $ 1,198,171 $ 1,211,527 $ 1,231,730 $
1,265,990 Loans receivable, net 641,084 628,872 617,024 610,950
584,507 Cash and cash equivalents 49,308 45,668 74,979 85,042
192,581 Securities 418,875 446,511 454,595 470,605 422,295 Deposits
699,476 711,486 731,070 736,557 763,912 FHLB advances 107,500
112,500 112,500 127,500 142,500 Stock subscription deposits - - - -
154,345 Total stockholders' equity 368,001 363,765 357,693 356,491
194,137
Assets
Quality:
Total nonperforming assets $ 5,648 $ 3,994 $ 4,509 $ 5,595 $ 5,132
Total nonperforming loans to total gross loans 0.88 % 0.63 % 0.73 %
0.89 % 0.88 % Total nonperforming assets to total assets 0.48 %
0.33 % 0.37 % 0.45 % 0.41 % Allowance for loan losses $ 3,475 $
3,375 $ 3,250 $ 3,125 $ 3,071 Allowance for loan losses to total
gross loans 0.54 % 0.54 % 0.53 % 0.51 % 0.52 % Allowance for loan
losses to nonperforming loans 61.53 % 84.50 % 72.08 % 57.12 % 59.84
%
(1) As a result of the completion of the
second-step conversion on April 1, 2014, share and per share data,
as appropriate, was adjusted to reflect the 0.9791 exchange ratio
for the period.
Clifton Bancorp Inc.Bart D'Ambra, 973-473-2200
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