BRIGHTON, Mass., July 26, 2012 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced third quarter and year to date earnings for the fiscal year ending September 30, 2012. In addition, the Company has announced the approval by the Board of Directors of a quarterly dividend of $0.03 per common share payable on or about August 17, 2012 to stockholders of record on August 7, 2012.
For the three months ended June 30, 2012, the Company reported net income of $567,000 or $0.09 per share, basic and diluted, as compared to net income of $588,000 or $0.09 per share, basic and diluted, for the three months ended March 31, 2012 and as compared to $711,000 or $0.11 per share, basic and diluted, for the three months ended June 30, 2011. For the nine months ended June 30, 2012, the Company reported net income of $2.0 million or $0.31 per share, basic and diluted, as compared to net income of $2.5 million or $0.38 per share, basic and diluted, for the same period last year.
Net interest and dividend income for the three months ended June 30, 2012 totaled $4.2 million as compared to $4.0 million for the three months ended June 30, 2011. Non-interest income totaled $443,000 for the three months ended June 30, 2012 as compared to $445,000 for the three months ended June 30, 2011. Non-interest expense totaled $3.6 million for the three months ended June 30, 2012 as compared to $3.2 million for the three months ended June 30, 2011, reflecting increased expenses in salaries and employee benefits, occupancy, equipment and data processing expense, attributed to the opening of our West Newton branch in June 2011 and the equity incentive plan. In addition, advertising expense increased $57,000, as the Company expanded advertising in an effort to increase its market share and emphasize our branch network.
Net interest and dividend income for the nine months ended June 30, 2012 totaled $12.7 million as compared to $12.2 million for the nine months ended June 30, 2011. Non-interest income totaled $1.3 million for the nine months ended June 30, 2012 as compared to $1.4 million for the nine months ended June 30, 2011. The decrease was due to the decrease in net gains on sales of mortgage loans of $87,000, loan servicing fees of $70,000 and other income of $109,000, offset by the increase in the cash surrender value of life insurance income of $93,000 and customer service fees of $23,000. Non-interest expense totaled $10.5 million for the nine months ended June 30, 2012 as compared to $9.4 million for the nine months ended June 30, 2011, reflecting increased expenses in salaries and employee benefits, occupancy, equipment and data processing expense, attributed to the opening of our West Newton branch in June 2011 and the equity incentive plan. In addition, advertising expense increased $302,000, as the Company expanded advertising in an effort to increase its market share and emphasize our branch network.
Since September 30, 2011, total assets have increased by $5.5 million, or 1.0%, to $559.7 million. Net loans increased $25.8 million, or 6.3%. The increase in loans was due to the increase in residential real estate, commercial loans and consumer loans (mainly automobile loans), offset by the decrease in commercial real estate loans and construction loans. Cash and cash equivalents decreased by $25.6 million to $36.1 million at June 30, 2012 from $61.7 million at September 30, 2011, as we continue to deploy cash and cash equivalents into loans and investment securities. Investment securities increased $5.2 million, or 10.8%, to $53.4 million at June 30, 2012, from $48.2 million at September 30, 2011. Federal Home Loan Bank borrowings increased by $6.0 million, or 33.3%, from September 30, 2011, as the Company took advantage of low long-term interest rates. Deposits increased to $415.1 million at June 30, 2012 from $412.6 million at September 30, 2011. At June 30, 2012, total stockholders' equity was $111.4 million, a decrease of $4.3 million from $115.7 million at September 30, 2011. The decrease was mainly due to the repurchase of 473,775 shares of the Company's common stock totaling $7.1 million, in the open market at an average price of $15.03, as part of the Company's stock repurchase plan. On February 21, 2012, the Company awarded 281,700 shares of restricted stock awards to its Board of Directors and certain employees of the Company. These awards vest over a five-year period. The decrease in stockholders' equity was offset primarily by net income of $2.0 million, equity incentive shares earned of $556,000 and ESOP stock released and committed to be released of $320,000, for the nine months ended June 30, 2012.
Non-performing assets totaled $3.5 million, or 0.62% of total assets, at June 30, 2012, as compared to $3.3 million, or 0.59% of total assets at September 30, 2011. Classified loans decreased to $10.8 million as of June 30, 2012 compared to $12.6 million at September 30, 2011. The Company recorded a $375,000 provision for loan losses during the nine months ended June 30, 2012, reflecting the overall increase in total loans along with the qualitative and quantitative changes within each loan portfolio segment.
Certain statements herein constitute "forward-looking statements" and actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Peoples Federal Bancshares, Inc. is engaged and changes in the securities market. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.
| PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY | ||
| CONSOLIDATED BALANCE SHEETS | ||
|
June 30, 2012 |
September 30, 2011 |
|
| (Unaudited) | ||
| (In thousands, except share data) | ||
| ASSETS | ||
| Cash and due from banks | $ 8,883 | $ 9,462 |
| Interest-bearing demand deposits with other banks and money market mutual funds | 23,151 | 44,255 |
| Federal funds sold | 98 | 9 |
| Federal Home Loan Bank - overnight deposit | 4,001 | 8,003 |
| Total cash and cash equivalents | 36,133 | 61,729 |
| Securities available-for-sale | 24,739 | 28,452 |
| Securities held-to-maturity (fair values of $29,188 and $19,925) | 28,615 | 19,713 |
| Federal Home Loan Bank stock (at cost) | 4,014 | 4,339 |
| Loans | 436,881 | 410,794 |
| Allowance for loan losses | (3,726) | (3,371) |
| Loans, net | 433,155 | 407,423 |
| Premises and equipment, net | 3,624 | 3,818 |
| Cash surrender value of life insurance policies | 19,203 | 18,713 |
| Accrued interest receivable | 1,497 | 1,527 |
| Deferred income tax asset, net | 5,792 | 5,739 |
| Other assets | 2,892 | 2,736 |
| Total assets | $ 559,664 | $ 554,189 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits: | ||
| Non-interest-bearing | $ 44,868 | $ 38,483 |
| Interest-bearing | 370,247 | 374,162 |
| Total deposits | 415,115 | 412,645 |
| Federal Home Loan Bank advances | 24,000 | 18,000 |
| Accrued expenses and other liabilities | 9,102 | 7,842 |
| Total liabilities | 448,217 | 438,487 |
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued | -- | -- |
| Common stock, $0.01 par value; 100,000,000 shares authorized; 7,141,500 shares issued at June 30, 2012 and September 30, 2011 | 71 | 71 |
| Additional paid-in capital | 70,182 | 69,437 |
| Retained earnings | 55,657 | 53,677 |
| Accumulated other comprehensive income | 66 | 56 |
| Unearned restricted shares; 258,225 shares at June 30, 2012 | (3,995) | -- |
| Unearned compensation - ESOP | (4,999) | (5,213) |
| Treasury stock, at cost; 360,375 and 168,300 shares at June 30, 2012 and September 30, 2011, respectively | (5,535) | (2,326) |
| Total stockholders' equity | 111,447 | 115,702 |
| Total liabilities and stockholders' equity | $ 559,664 | $ 554,189 |
| PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
|
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| (Unaudited) | ||||||||
| (Dollars in thousands, except share data) | ||||||||
| Interest and dividend income: | ||||||||
| Interest and fees on loans | $ 4,793 | $ 4,981 | $ 14,466 | $ 15,116 | ||||
| Interest on debt securities: | ||||||||
| Taxable | 210 | 93 | 723 | 236 | ||||
| Other interest | 18 | 25 | 59 | 99 | ||||
| Dividends on equity securities | 5 | 4 | 14 | 7 | ||||
| Total interest and dividend income | 5,026 | 5,103 | 15,262 | 15,458 | ||||
| Interest expense: | ||||||||
| Interest on deposits | 673 | 875 | 2,128 | 2,601 | ||||
| Interest on Federal Home Loan Bank advances | 147 | 183 | 409 | 611 | ||||
| Total interest expense | 820 | 1,058 | 2,537 | 3,212 | ||||
| Net interest and dividend income | 4,206 | 4,045 | 12,725 | 12,246 | ||||
| Provision for loan losses | 125 | 120 | 375 | 340 | ||||
| Net interest and dividend income, after provision for loan losses | 4,081 | 3,925 | 12,350 | 11,906 | ||||
| Non-interest income: | ||||||||
| Customer service fees | 213 | 204 | 628 | 605 | ||||
| Loan servicing fees | 20 | 25 | 7 | 77 | ||||
| Net gain on sales of mortgage loans | 42 | 13 | 49 | 136 | ||||
| Increase in cash surrender value of life insurance | 161 | 157 | 490 | 397 | ||||
| Other income | 7 | 46 | 97 | 206 | ||||
| Total non-interest income | 443 | 445 | 1,271 | 1,421 | ||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 2,440 | 2,103 | 7,047 | 6,071 | ||||
| Occupancy expense | 222 | 187 | 682 | 626 | ||||
| Equipment expense | 109 | 107 | 333 | 320 | ||||
| Professional fees | 131 | 114 | 355 | 444 | ||||
| Advertising expense | 140 | 83 | 448 | 146 | ||||
| Data processing expense | 200 | 172 | 600 | 548 | ||||
| Deposit insurance expense | 66 | 96 | 176 | 338 | ||||
| Other expense | 284 | 304 | 810 | 933 | ||||
| Total non-interest expense | 3,592 | 3,166 | 10,451 | 9,426 | ||||
| Income before income taxes | 932 | 1,204 | 3,170 | 3,901 | ||||
| Provision for income taxes | 365 | 493 | 1,190 | 1,389 | ||||
| Net income | $ 567 | $ 711 | $ 1,980 | $ 2,512 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 6,114,060 | 6,610,650 | 6,239,816 | 6,597,953 | ||||
| Diluted | 6,144,309 | 6,610,650 | 6,251,384 | 6,597,953 | ||||
| Earnings per common share: | ||||||||
| Basic | $ 0.09 | $ 0.11 | $ 0.31 | $ 0.38 | ||||
| Diluted | $ 0.09 | $ 0.11 | $ 0.31 | $ 0.38 | ||||
The following tables set forth average assets, liability and equity account balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
| Three Months Ended June 30, | ||||||
| 2012 | 2011 | |||||
|
Average Outstanding Balance |
Interest Earned/ Paid |
Average Yield/ Rate (1) |
Average Outstanding Balance |
Interest Earned/ Paid |
Average Yield/ Rate (1) |
|
| (Unaudited) | ||||||
| (Dollars in thousands) | ||||||
| Interest-earning assets: | ||||||
| Loans (2) | $ 424,263 | $ 4,793 | 4.52% | $ 396,447 | $ 4,981 | 5.03% |
| Taxable securities (3) | 57,234 | 210 | 1.47 | 30,353 | 93 | 1.23 |
| Other interest-earning assets | 25,552 | 18 | 0.28 | 57,179 | 25 | 0.17 |
| FHLB stock | 4,014 | 5 | 0.50 | 4,339 | 4 | 0.37 |
| Total interest-earning assets | 511,063 | 5,026 | 3.93 | 488,318 | 5,103 | 4.18 |
| Non-interest-earning assets | 47,065 | 42,205 | ||||
| Total assets | $ 558,128 | $ 530,523 | ||||
| Interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Savings | $ 49,299 | 23 | 0.19 | $ 47,740 | 64 | 0.54 |
| Money market accounts | 154,959 | 266 | 0.69 | 139,692 | 341 | 0.98 |
| NOW accounts | 37,441 | 11 | 0.12 | 34,783 | 17 | 0.20 |
| Term certificates | 128,314 | 373 | 1.16 | 124,317 | 453 | 1.46 |
| Total deposits | 370,013 | 673 | 0.73 | 346,532 | 875 | 1.01 |
| FHLB advances | 24,000 | 147 | 2.45 | 23,000 | 183 | 3.18 |
| Total interest-bearing liabilities | 394,013 | 820 | 0.83 | 369,532 | 1,058 | 1.15 |
| Demand deposits | 42,577 | 35,954 | ||||
| Other non-interest-bearing liabilities | 8,766 | 7,995 | ||||
| Total liabilities | 445,356 | 413,481 | ||||
| Stockholders' equity | 112,772 | 117,042 | ||||
| Total liabilities and stockholders' equity | $ 558,128 | $ 530,523 | ||||
| Net interest income | $ 4,206 | $ 4,045 | ||||
| Net interest rate spread (4) | 3.10% | 3.03% | ||||
| Net interest-earning assets (5) | $ 117,050 | $ 118,786 | ||||
| Net interest margin (6) | 3.29% | 3.31% | ||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.30 x | 1.32 x | ||||
| (1) Yields are annualized. | ||||||
| (2) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | ||||||
| (3) Average balances are presented at average amortized cost. | ||||||
| (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | ||||||
| (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | ||||||
| (6) Net interest margin represents net interest income divided by average total interest-earning assets. | ||||||
| Nine Months Ended June 30, | |||||||||||
| 2012 | 2011 | ||||||||||
|
Average Outstanding Balance |
Interest Earned/ Paid |
Average Yield/ Rate (1) |
Average Outstanding Balance |
Interest Earned/ Paid |
Average Yield/ Rate (1) |
||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| Interest-earning assets: | |||||||||||
| Loans (2) | $ 415,807 | $ 14,466 | 4.64% | $ 392,337 | $ 15,116 | 5.14% | |||||
| Taxable securities (3) | 58,586 | 723 | 1.65 | 27,673 | 236 | 1.14 | |||||
| Other interest-earning assets | 28,738 | 59 | 0.27 | 65,038 | 99 | 0.20 | |||||
| FHLB stock | 4,202 | 14 | 0.44 | 4,339 | 7 | 0.22 | |||||
| Total interest-earning assets | 507,333 | 15,262 | 4.01 | 489,387 | 15,458 | 4.21 | |||||
| Non-interest-earning assets | 46,360 | 44,224 | |||||||||
| Total assets | $ 553,693 | $ 533,611 | |||||||||
| Interest-bearing liabilities: | |||||||||||
| Deposits: | |||||||||||
| Savings | $ 48,359 | 72 | 0.20 | $ 46,723 | 178 | 0.51 | |||||
| Money market accounts | 154,023 | 830 | 0.72 | 144,163 | 968 | 0.90 | |||||
| NOW accounts | 36,481 | 33 | 0.12 | 33,790 | 47 | 0.19 | |||||
| Term certificates | 131,045 | 1,193 | 1.21 | 124,040 | 1,408 | 1.51 | |||||
| Total deposits | 369,908 | 2,128 | 0.77 | 348,716 | 2,601 | 0.99 | |||||
| FHLB advances | 20,613 | 409 | 2.65 | 25,659 | 611 | 3.17 | |||||
| Total interest-bearing liabilities | 390,521 | 2,537 | 0.87 | 374,375 | 3,212 | 1.14 | |||||
| Demand deposits | 40,481 | 35,138 | |||||||||
| Other non-interest-bearing liabilities | 8,670 | 8,019 | |||||||||
| Total liabilities | 439,672 | 417,532 | |||||||||
| Stockholders' equity | 114,021 | 116,079 | |||||||||
| Total liabilities and stockholders' equity | $ 553,693 | $ 533,611 | |||||||||
| Net interest income | $ 12,725 | $ 12,246 | |||||||||
| Net interest rate spread (4) | 3.14% | 3.07% | |||||||||
| Net interest-earning assets (5) | $ 116,812 | $ 115,012 | |||||||||
| Net interest margin (6) | 3.34% | 3.34% | |||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.30 x | 1.31 x | |||||||||
| (1) Yields are annualized. | |||||||||||
| (2) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | |||||||||||
| (3) Average balances are presented at average amortized cost. | |||||||||||
| (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |||||||||||
| (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | |||||||||||
| (6) Net interest margin represents net interest income divided by average total interest-earning assets. | |||||||||||