BRIGHTON, Mass., Jan. 30, 2013 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced earnings for the quarter ending December 31, 2012, the fiscal first quarter for its year. For the three months ended December 31, 2012, the Company reported net income of $681,000 or $0.11 per share, basic and diluted, as compared to net income of $825,000 or $0.13 per share, basic and diluted, for the same period last year.
Net interest and dividend income totaled $4.3 million for both three-month periods ended December 31, 2012 and 2011. Non-interest income totaled $492,000 for the three months ended December 31, 2012 as compared to $453,000 for the three months ended December 31, 2011. Non-interest expense totaled $3.4 million for the three months ended December 31, 2012 as compared to $3.3 million for the three months ended December 31, 2011, reflecting higher salaries and employee benefits offset by a decrease in other expense.
Total assets increased $6.6 million, or 1.2%, to $577.4 million at December 31, 2012 from $570.8 million at September 30, 2012. Loans, net increased $1.5 million, or 0.3%, as we experienced increases in construction loans, residential real estate and commercial loans, offset by decreases in commercial real estate loans and multi-family loans. Cash and cash equivalents increased $16.2 million to $52.4 million at December 31, 2012 from $36.2 million at September 30, 2012. This increase was the result of an increase in deposits and maturing securities, which management determined not to reinvest into loans or securities in the low interest rate environment. Borrowings remained at $33.0 million at December 31, 2012 and September 30, 2012. Deposits increased $9.9 million to $426.6 million at December 31, 2012 from $416.7 million at September 30, 2012. The increases were in all deposit types. Demand deposits increased $2.9 million, term certificates increased $2.4 million, savings increased $1.7 million, money markets increased $1.6 million and NOWs increased $1.3 million. At December 31, 2012, total stockholders' equity was $108.8 million, a decrease of $1.7 million from $110.5 million at September 30, 2012. The decrease in stockholders' equity during the quarter was primarily due to dividends of $1.7 million and the repurchase and retirement of 67,300 shares or $1.1 million of the Company's common stock pursuant to our stock repurchase plan, offset by net income of $681,000, stock options and restricted stock awards earned of $333,000 and common stock released by the ESOP plan of $121,000.
During the quarter ended December 31, 2012, the Company paid a quarterly cash dividend of $0.03 per common share. In addition, the Company paid a special cash dividend of $0.25 per common share during the December 31, 2012 quarter. The dividends paid totaled $1.7 million during the quarter. The Company did not pay any dividends during the quarter ended December 31, 2011.
Non-performing assets totaled $3.3 million, or 0.57% of total assets, at December 31, 2012, as compared to $3.4 million, or 0.60% of total assets, at September 30, 2012. Classified assets decreased to $7.0 million at December 31, 2012 compared to $9.6 million at September 30, 2012. The Company provided $120,000 to the provision for loan losses during the quarter ended December 31, 2012, reflecting an increase in net loans and changes in the loan segments.
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 SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| December 31, | September 30, | |
| 2012 | 2012 | |
| (Unaudited) | ||
| (In thousands, except share data) | ||
| ASSETS | ||
| Cash and due from banks | $ 6,442 | $ 6,713 |
| Interest-bearing demand deposits with other banks | 43,858 | 27,378 |
| Federal funds sold | 41 | 48 |
| Federal Home Loan Bank - overnight deposit | 2,102 | 2,102 |
| Total cash and cash equivalents | 52,443 | 36,241 |
| Securities available-for-sale | 13,340 | 21,653 |
| Securities held-to-maturity (fair values of $23,745 and 26,746) | 23,178 | 25,921 |
| Federal Home Loan Bank stock (at cost) | 4,014 | 4,014 |
| Loans | 456,524 | 454,925 |
| Allowance for loan losses | (4,007) | (3,891) |
| Loans, net | 452,517 | 451,034 |
| Premises and equipment, net | 3,492 | 3,577 |
| Cash surrender value of life insurance policies | 19,526 | 19,364 |
| Accrued interest receivable | 1,367 | 1,589 |
| Deferred income tax asset, net | 5,131 | 5,116 |
| Other assets | 2,431 | 2,318 |
| Total assets | $ 577,439 | $ 570,827 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits: | ||
| Non-interest bearing | $ 52,032 | $ 49,165 |
| Interest-bearing | 374,596 | 367,583 |
| Total deposits | 426,628 | 416,748 |
| Short-term borrowings | 6,000 | 8,000 |
| Long-term debt | 27,000 | 25,000 |
| Accrued expenses and other liabilities | 8,977 | 10,541 |
| Total liabilities | 468,605 | 460,289 |
| 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; 6,659,604 and 6,726,904 shares issued and outstanding at December 31, 2012 and September 30, 2012, respectively | 66 | 67 |
| Additional paid-in capital | 62,934 | 63,909 |
| Retained earnings | 54,159 | 55,153 |
| Accumulated other comprehensive income | 90 | 113 |
| Unearned restricted shares; 230,055 and 244,140 shares at December 31, 2012 and September 30, 2012, respectively | (3,559) | (3,777) |
| Unearned compensation - ESOP | (4,856) | (4,927) |
| Total stockholders' equity | 108,834 | 110,538 |
| Total liabilities and stockholders' equity | $ 577,439 | $ 570,827 |
| PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| Three Months Ended | ||
| December 31, | ||
| 2012 | 2011 | |
| (Unaudited) | ||
| (Dollars in thousands, except share data) | ||
| Interest and dividend income: | ||
| Interest and fees on loans | $ 4,853 | $ 4,867 |
| Interest on debt securities: | ||
| Taxable | 150 | 271 |
| Other interest | 18 | 24 |
| Dividends on equity securities | 5 | 3 |
| Total interest and dividend income | 5,026 | 5,165 |
| Interest expense: | ||
| Interest on deposits | 612 | 769 |
| Interest on Federal Home Loan Bank advances | 150 | 122 |
| Total interest expense | 762 | 891 |
| Net interest and dividend income | 4,264 | 4,274 |
| Provision for loan losses | 120 | 125 |
| Net interest and dividend income, after provision for loan losses | 4,144 | 4,149 |
| Non-interest income: | ||
| Customer service fees | 210 | 209 |
| Loan servicing fees | 8 | 13 |
| Net gain on sales of mortgage loans | 101 | -- |
| Increase in cash surrender value of life insurance | 162 | 158 |
| Other income | 11 | 73 |
| Total non-interest income | 492 | 453 |
| Non-interest expense: | ||
| Salaries and employee benefits | 2,326 | 2,125 |
| Occupancy expense | 229 | 216 |
| Equipment expense | 106 | 112 |
| Professional fees | 117 | 103 |
| Advertising expense | 129 | 147 |
| Data processing expense | 208 | 196 |
| Deposit insurance expense | 69 | 60 |
| Other expense | 257 | 320 |
| Total non-interest expense | 3,441 | 3,279 |
| Income before income taxes | 1,195 | 1,323 |
| Provision for income taxes | 514 | 498 |
| Net income | $ 681 | $ 825 |
| Weighted-average shares outstanding: | ||
| Basic | 5,975,422 | 6,372,181 |
| Diluted | 6,031,289 | 6,372,181 |
| Earnings per common share: | ||
| Basic | $ 0.11 | $ 0.13 |
| Diluted | $ 0.11 | $ 0.13 |
The following table sets 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 December 31, | ||||||
| 2012 | 2011 | |||||
| Average | Interest | Average | Average | Interest | Average | |
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |
| Balance | Paid | Rate (1) | Balance | Paid | Rate (1) | |
| (Unaudited) | ||||||
| (Dollars in thousands) | ||||||
| Interest-earning assets: | ||||||
| Loans (2) | $ 452,554 | $ 4,853 | 4.29% | $ 409,593 | $ 4,867 | 4.75% |
| Taxable securities (3) | 42,062 | 150 | 1.43 | 55,535 | 271 | 1.95 |
| Other interest-earning assets | 35,656 | 18 | 0.20 | 36,351 | 24 | 0.26 |
| FHLB stock | 4,014 | 5 | 0.50 | 4,339 | 3 | 0.28 |
| Total interest-earning assets | 534,286 | 5,026 | 3.76 | 505,818 | 5,165 | 4.08 |
| Non-interest-earning assets | 37,373 | 48,182 | ||||
| Total assets | $ 571,659 | $ 554,000 | ||||
| Interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Savings | $ 50,814 | 20 | 0.16 | $ 47,732 | 24 | 0.20 |
| Money market accounts | 153,038 | 235 | 0.61 | 151,557 | 277 | 0.73 |
| NOW accounts | 37,085 | 6 | 0.06 | 35,416 | 11 | 0.12 |
| Term certificates | 127,764 | 351 | 1.10 | 138,926 | 457 | 1.32 |
| Total deposits | 368,701 | 612 | 0.66 | 373,631 | 769 | 0.82 |
| FHLB advances | 32,457 | 150 | 1.85 | 17,391 | 122 | 2.81 |
| Total interest-bearing liabilities | 401,158 | 762 | 0.76 | 391,022 | 891 | 0.91 |
| Demand deposits | 50,643 | 38,974 | ||||
| Other non-interest-bearing liabilities | 9,654 | 8,755 | ||||
| Total non-interest-bearing liabilities | 60,297 | 47,729 | ||||
| Total liabilities | 461,455 | 438,751 | ||||
| Stockholders' equity | 110,204 | 115,249 | ||||
| Total liabilities and stockholders' equity | $ 571,659 | $ 554,000 | ||||
| Net interest income | $ 4,264 | $ 4,274 | ||||
| Net interest rate spread (4) | 3.00% | 3.17% | ||||
| Net interest-earning assets (5) | $ 133,128 | $ 114,796 | ||||
| Net interest margin (6) | 3.19% | 3.38% | ||||
| Ratio of total interest-earning assets to total interest-bearing liabilities | 1.33 x | 1.29 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. | ||||||