Press Release

York Traditions Bank Reports 2nd Quarter Earnings

Company Release - 7/19/2018 5:58 AM ET

YORK, Pa., July 19, 2018 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income of $1,146,000, or $0.40 cents per share, for the second quarter ended June 30, 2018, compared to $754,000, or 34 cents per share, for the second quarter ended June 30, 2017. This represents a $392,000, or 52%, increase over the second quarter of 2017. Net income for the six months ended June 30, 2018 was $2,240,000, or $0.79 cents per share. This represents an increase of $881,000, or 65%, over the first six months of last year. Book value per common share increased to $17.04 at June 30, 2018.

"We are pleased to report our earnings for the first half of 2018," stated Eugene J. Draganosky, President and Chief Executive Officer. "Net interest income continues to improve, boosted by higher net interest margins and continued loan growth. Net interest income rose $1,074,000, or 17%, for the first six months of 2018 compared to the same period last year. Our net interest margin increased from 3.45% to 3.58% while loans grew $19,485,000, or 6%, during the same period. Loan yields have benefited from rising variable interest rates. Despite intense deposit rate competition, deposits expanded 12%, or $39,632,000, as of June 30, 2018, compared to the same period last year. Mortgage gains were consistent with the prior year at $2,164,000 for the first six months. As a result of the Tax Cut and Jobs Act enacted in late 2017, our income tax expense fell $76,000, or 13%, despite our income before taxes increasing $805,000, or 41%. Our loan quality remains satisfactory with loan recoveries exceeding charge-offs so far this year. We remain well capitalized and look forward to the remainder of 2018."

The Bank expects to open its sixth branch office, its first in York City, in early September 2018.

FINANCIAL HIGHLIGHTS (unaudited):
(Dollars in thousands, except per share data)








Selected Financial Data


June 30,

2018


Dec 31,

2017


June 30,

2017



Investment securities

$

57,645

$

55,258

$

52,033



Loans, net of unearned income


353,026


348,533


333,541



Total assets


455,067


441,289


429,907



Deposits


374,529


363,089


334,897



Borrowings


26,887


26,224


54,425



Subordinated debt


5,000


5,000


5,000



Shareholders' equity


47,118


45,319


34,211



Book value per common share

$

17.04

$

16.22

$

15.46



Allowance/loans


1.06%


1.02%


1.01%



Non-performing assets/total assets


0.60%


0.64%


0.53%



Tier 1 capital/average assets


10.60%


10.38%


8.30%













Three months ended June 30, 

Six months ended June 30,

Selected Operations Data


2018


2017


2018


2017

Interest income

$

4,829

$

4,074

$

9,380

$

7,894

Interest expense


(1,009)


(755)


(1,834)


(1,422)

Net interest income


3,820


3,319


7,546


6,472

Provision for loan losses


(120)


(117)


(200)


(270)

Investment securities gains(losses)


-


-


(3)


-

Gains on sale of mortgages


1,136


1,315


2,164


2,194

Other income


375


259


685


559

Other expense


(3,802)


(3,694)


(7,437)


(7,005)

Income before income taxes


1,409


1,082


2,755


1,950

Income taxes


(263)


(328)


(515)


(591)

Net income

$

1,146

$

754

$

2,240

$

1,359

Earnings per common share (basic)

$

0.41

$

0.34

$

0.80

$

0.62

Earnings per common share (diluted)

$

0.40

$

0.34

$

0.79

$

0.61

Return on average assets


1.02%


0.74%


1.01%


0.68%

Return on average equity


9.67%


8.95%


9.63%


8.20%

Net interest margin


3.55%


3.46%


3.58%


3.45%

Net charge-offs(recoveries)/average loans


-0.01%


0.00%


0.00%


0.01%

 

Safe Harbor Statement:
Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Because of these risks and uncertainties, our actual future results may be materially different from the results indicated by these forward looking statements.  In addition, our past results of operations do not necessarily indicate our future results.  We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE York Traditions Bank