Press Release

York Traditions Bank Reports 3rd Quarter Earnings

Company Release - 10/24/2018 6:05 AM ET

YORK, Pa., Oct. 24, 2018 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income of $1,252,000, or 44 cents per share, for the third quarter ended September 30, 2018, compared to $1,065,000, or 48 cents per share, for the third quarter ended September 30, 2017. This represents a $187,000, or 18%, increase over the third quarter of 2017. Net income for the nine months ended September 30, 2018 was $3,492,000 or $1.23 per share (diluted). This represents an increase of $1,068,000, or 44%, over the first nine months of last year. Book value per common share advanced to $17.49 at September 30, 2018.

"We are pleased to report our third quarter earnings," stated Eugene J. Draganosky, President and Chief Executive Officer. "We outperformed 2017 third quarter net income by 18% and our year-to-date earnings are 44% ahead of the prior year. Net interest income for the first nine months of 2018 is up $1,367,000, or 14%, due to a higher net interest margin and 6% year-over-year loan growth. Our third quarter margin, however, declined from the second quarter 2018 due to increasing competition for loans and deposits. Gain on sale of mortgage loans is down $132,000, or 4%, year to date due to higher interest rates and a shortage of housing in our markets. Loan quality remains strong with recoveries exceeding net charge-offs for the first nine months of 2018. This has allowed us to reduce our provision for loan losses by $203,000, or 48%, so far this year. We continue to recognize the benefit of the Tax Cut and Jobs Act enacted in late 2017. Our income tax expense fell $218,000, or 21%, despite our income before taxes increasing $850,000, or 25%. Loan and deposit growth remain satisfactory, increasing $20,688,000 and $22,466,000 respectively, during the last twelve months."

York Traditions Bank opened its sixth branch office, its first in York City, on September 4, 2018.

 

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








Selected Financial Data


Sep 30,

2018


Dec 31,

2017


Sep 30,

2017



Investment securities

$

56,712

$

55,258

$

51,684



Loans, net of unearned income


361,367


348,533


340,679



Total assets


465,478


441,289


435,526



Deposits


377,327


363,089


354,861



Borrowings


33,299


26,224


28,857



Subordinated debt


5,000


5,000


5,000



Shareholders' equity


48,220


45,319


44,663



Book value per common share

$

17.49

$

16.22

$

15.86



Allowance/loans


1.05%


1.02%


1.03%



Non-performing assets/total assets


0.51%


0.64%


0.71%



Tier 1 capital/average assets


10.69%


10.38%


10.83%













Three months ended Sep 30, 

Nine months ended Sep 30,

Selected Operations Data


2018


2017


2018


2017

Interest income

$

5,059

$

4,391

$

14,439

$

12,285

Interest expense


(1,214)


(839)


(3,048)


(2,261)

Net interest income


3,845


3,552


11,391


10,024

Provision for loan losses


(20)


(153)


(220)


(423)

Investment securities gains(losses)


-


1


(3)


1

Gains on sale of mortgages


955


1,057


3,119


3,251

Other income


403


408


1,088


967

Other expense


(3,630)


(3,357)


(11,067)


(10,362)

Income before income taxes


1,553


1,508


4,308


3,458

Income taxes


(301)


(443)


(816)


(1,034)

Net income

$

1,252

$

1,065

$

3,492

$

2,424

Earnings per common share (basic)

$

0.44

$

0.48

$

1.24

$

1.10

Earnings per common share (diluted)

$

0.44

$

0.48

$

1.23

$

1.09

Return on average assets


1.08%


0.98%


1.04%


0.79%

Return on average equity


10.17%


12.01%


9.82%


9.52%

Net interest margin


3.48%


3.45%


3.55%


3.43%

Net charge-offs(recoveries)/average loans


0.00%


0.02%


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.

Cision View original content:http://www.prnewswire.com/news-releases/york-traditions-bank-reports-3rd-quarter-earnings-300736620.html

SOURCE York Traditions Bank