EAST SYRACUSE, N.Y., Jan. 31, 2008 (PRIME NEWSWIRE) -- Beacon Federal Bancorp, Inc. ("the Company") (Nasdaq:BFED) announced today net income for the quarter ended December 31, 2007 of $880,000 compared to a net loss of $503,000 for the quarter ended December 31, 2006. The net loss for the quarter ended December 31, 2006 was primarily attributable to non-deductible severance and other expenses related to the acquisition in 2006 of the Marcy Federal Credit Union. Basic and diluted earnings per share were $.13 for the quarter ended December 31, 2007, the Company's first quarter as a public entity following its initial public offering in October 2007. The increase in net income reflected an increase in net interest income and non-interest income and lower non-interest expense, partially offset by an increase in provision for loan losses and income tax expense.
Net income for the twelve months ended December 31, 2007 was $2.6 million compared to net income of $2.3 million for the twelve months ended December 31, 2006. The increase in net income reflected an increase in net interest income and non-interest income and lower income tax expense, partially offset by an increase in provision for loan losses and non-interest expense.
Total assets increased $270.2 million to $877.9 million at December 31, 2007 from $607.7 million at December 31, 2006. The increase was the result of a $172.6 million increase in net loans, $75.8 million increase in securities, $10.0 million increase in bank-owned life insurance, $7.0 million increase in Federal Home Loan Bank of New York stock and $5.3 million increase in cash and cash equivalents, funded by a $43.4 million increase in deposits, $157.7 million increase in borrowings and $69.0 million increase in equity.
Equity increased $69.0 million, or 156.0%, to $113.2 million at December 31, 2007 from $44.2 million at December 31, 2006. The increase resulted primarily from net proceeds from sale of common stock of $66.2 million and net income of $2.6 million for the twelve months ended December 31, 2007.
Ross J. Prossner, President and CEO, said, "The successful completion of our IPO during the fourth quarter has helped set the stage for our future growth and profitability. We have invested in new management and staff as well as incorporated new infrastructure to help deliver quality service to our customer base. Going forward, we believe our investment in people and technology will help meet our strategic goals of increasing overall bank profitability."
On October 1, 2007, Beacon Federal, the Company's wholly-owned banking subsidiary, completed its conversion from a mutual savings association to a capital stock corporation. The public offering was consummated through the sale and issuance by the Company of 7,396,431 shares of common stock at $10 per share. Net proceeds of $66.2 million were raised in the stock offering, after deduction of conversion costs of $1.8 million and excluding $5.9 million which was loaned by the Company to a trust for the Employee Stock Ownership Plan, enabling it to finance the purchase of 591,714 shares of common stock in the offering. The Company's common stock is traded on the NASDAQ Global Market under the symbol "BFED."
Beacon Federal Bancorp, Inc., through its subsidiary, Beacon Federal, offers banking and related financial services to both individual and commercial customers. The Bank is headquartered in East Syracuse, New York, with six full-service branches in Marcy and Rome, New York, Smartt and Smyrna, Tennessee, Tyler, Texas and Chelmsford, Massachusetts.
Forward-Looking Statement
This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission in its rules, regulations, and releases. The Bank and Company intend that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including, but not limited to, real estate values and the impact of interest rates on financing. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Bank or Company or any other person that results expressed therein will be achieved. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information of future events.
BEACON FEDERAL BANCORP, INC.
Financial Highlights
At At
December 31, December 31,
2007 2006
--------- ---------
(Unaudited)
(In thousands)
Selected Financial Condition Data:
Total assets $ 877,886 $ 607,669
Cash and cash equivalents 14,148 8,799
Securities available for sale, at fair value 92,859 8,852
Securities held to maturity 29,488 37,706
Loans, net 709,689 537,097
Federal Home Loan Bank of New York stock, at
cost 11,117 4,091
Deposits 514,488 471,137
FHLB advances 226,815 73,900
Securities sold under agreement to repurchase 20,000 15,227
Equity 113,254 44,245
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2007 2006 2007 2006
-------- -------- -------- --------
(Unaudited) (Unaudited)
(In thousands, except per share data)
Selected Operating Data:
Interest income $ 13,314 $ 8,848 $ 43,938 $ 32,347
Interest expense 7,872 5,543 27,531 18,075
-------- -------- -------- --------
Net interest income 5,442 3,305 16,407 14,272
Provision for loan
losses 910 474 2,304 1,066
-------- -------- -------- --------
Net interest income
after provision for
loan losses 4,532 2,831 14,103 13,206
Non-interest income 887 866 3,293 3,054
Non-interest expense 3,935 3,950 13,075 12,070
-------- -------- -------- --------
Income (loss) before
income taxes 1,484 (253) 4,321 4,190
Income tax expense 604 250 1,701 1,876
-------- -------- -------- --------
Net income (loss) $ 880 $ (503) $ 2,620 $ 2,314
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Basic and diluted
earnings per share $ 0.13 N/A $ NM N/A
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Asset Quality Ratios:
Non-performing loans
to total loans 0.15% 0.00% 0.15% 0.00%
Non-performing assets
to total assets 0.16% 0.16% 0.16% 0.16%
Net charge-offs to
average loans
outstanding 0.02% 0.06% 0.11% 0.06%
Allowance for loan
losses to non-
performing loans at
end of period 624.61% NM 624.61% NM
Allowance for loan
losses to total
loans at end of
period 0.96% 0.96% 0.96% 0.96%
NM Not meaningful.
N/A Not applicable.