First Clover Leaf Financial Corp. Announces 2013 Year End Financial Results

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| Source: First Clover Leaf Financial Corporation

EDWARDSVILLE, Ill., Feb. 25, 2014 (GLOBE NEWSWIRE) -- First Clover Leaf Financial Corp. (the "Company") (Nasdaq:FCLF) announced net income of $3.4 million, or $0.46 per basic and diluted share, for the year ended December 31, 2013, compared to net income of $4.1 million, or $0.53 per basic and diluted share, for the year ended December 31, 2012.

First Clover Leaf Financial President and CEO Dave Kuhl commented, "Our strategic plan calls for the organization to continue to focus on increasing shareholder value. While our results in 2013 were solid, we believe we have positioned the bank for stronger profitability in 2014. Our capital and asset quality remains strong, which should enable the bank to expand into other markets and lines of business consistent with our growth focus."

For the year ended December 31, 2013, net interest income after provision for loan losses was $16.0 million compared to $15.6 million for the year ended December 31, 2012. The provision for loan losses totaled $485,000 for the year ended December 31, 2013 compared to $1.6 million for the year ended December 31, 2012. Interest income decreased to $19.8 million for the year ended December 31, 2013 from $21.7 million for the year ended December 31, 2012. Interest expense decreased to $3.3 million for the year ended December 31, 2013 from $4.5 million for the year ended December 31, 2012. Net Interest income declined to $16.5 million for the year ended December 31, 2013 compared to $17.2 million for the year ended December 31, 2012. The decline is primarily due to a decrease in our net interest rate spread which decreased to 2.85% for the year ended December 31, 2013 compared to 3.22% for the year ended December 31, 2012. In addition, our net interest margin decreased to 2.95% for the year ended December 31, 2013 compared to 3.39% for the year ended December 31, 2012. The decrease in the interest rate spread was attributable to the yield on interest-earning assets declining faster than the cost of funds. The Company's yield on earning assets and costs of funds are largely dependent on the interest rate environment.

Non-interest income was $2.2 million for the year ended December 31, 2013 compared to $3.0 million for the year ended December 31, 2012. The decrease in non-interest income was primarily the result of a decrease in gain on sale of loans sold, which declined to $561,000 for the year ended December 31, 2013 compared to $1.6 million for the year ended December 31 2012. Refinancing activity was very strong during 2012, and fell sharply in 2013. Non-interest expense increased to $13.4 million for the year ended December 31, 2013 compared to $12.5 million for the year ended December 31, 2012. The increase in non-interest expense was mainly due to an increase in foreclosed asset related expenses, along with a slight increase in compensation and employee benefits. For the year ended December 31, 2013, income tax expense totaled $1.4 million compared to income tax expense of $2.0 for December 31, 2012.

Total assets at December 31, 2013 were $622.0 million compared to $600.8 million at December 31, 2012, an increase of $21.2 million. Cash and cash equivalents increased to $84.7 million at December 31, 2013 from $71.4 million at December 31, 2012. The $13.3 million increase was primarily due to an increase of $22.2 million in federal funds sold, partially offset by a decrease of $9.4 million in cash and due from banks. Investment securities available for sale increased to $117.8 million at December 31, 2013 from $88.3 million at December 31, 2012, this was primarily due to purchases exceeding calls, maturities, principal repayments, and sales by $34.5 million. Loans, net of allowance for loan losses, decreased to $372.6 million at December 31, 2013 from $394.9 million at December 31, 2012, a decrease of $22.3 million. Due to the current economic environment, we saw a reduction in loan demand during 2013. Deposits were $502.5 million at December 31, 2013 compared to $460.4 million at December 31, 2012, an increase of $42.1 million. The significant increase in deposits is primarily related to two business relationships. The increase is due to the transitional nature of their accounts. Borrowings totaled $14.0 million at December 31, 2013 and $22.0 million at December 31, 2012, respectively. Stockholders' equity decreased to $73.1 million at December 31, 2013 from $78.3 million at December 31, 2012. The decrease in stockholders' equity was mainly the result of a reduction in accumulated other comprehensive income of $2.9 million, repurchases of 474,034 shares of common stock for $3.9 million as part of the Company's authorized ongoing stock repurchase program, and the payment of cash dividends of $1.7 million, partially offset by net income of $3.4 million during the year ended December 31, 2013.

President & CEO Dave Kuhl commented, "Loan quality has improved dramatically and we continue to focus on increasing loan volume while adhering to rigid underwriting standards. Controlling costs while still growing the bank will be critical to our success. This will be difficult with the ever-increasing regulatory burden that all banks face today. However, we believe we have the professional staff and an enthusiastic drive to make it happen."

Asset quality improved during 2013. Total delinquent loans 90 days or more past due was $734,000 at December 31, 2013 compared to $3.1 million at December 31, 2012. Total non-accrual loans were $6.4 million at December 31, 2013 compared to $11.5 million at December 31, 2012. The allowance for loan losses at December 31, 2013 was $5.6 million and represented 1.50% of total loans and 77.28% of non-performing and impaired loans. At December 31, 2012, the allowance for loan losses was $5.9 million and represented 1.51% of total loans and 50.89% of non-performing and impaired loans. Foreclosed assets decreased to $5.6 million at December 31, 2013 compared to $6.5 million at December 31, 2012.

First Clover Leaf Financial Corp is the stock holding company for First Clover Leaf Bank. First Clover Leaf Bank is a federally chartered savings bank. First Clover Leaf Bank conducts business from its headquarters in Edwardsville, Illinois as well as four branch offices also located in Madison County Illinois.

When used in this press release, the words or phrases "will," "are expected to," "we believe," "should," "is anticipated," "estimate," "project" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including, but not limited to changes in general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and allowance for loan losses requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities, if any; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes resulting from shutdowns of the federal government; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; and changes in the financial condition or future prospects of issuers of securities that we own, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution you not to place undue reliance on any such forward-looking statements, which only speak as of the date made. The Company wishes to advise you that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.  Additional factors that could affect our results may be discussed in our Form 10-K for the year ended December 31, 2012 and in other reports we file with the Securities and Exchange Commission.

The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 
 
 
First Clover Leaf Financial Corp. 
Consolidated Statements of Income
     
  For the Year Ended
   December 31,  December 31,
  2013 2012
Interest and dividend income:    
Interest and fees on loans  $ 17,589,152   $ 19,613,434 
Securities:    
Taxable interest income  1,042,137   1,129,813 
Nontaxable interest income  1,008,926   836,665 
Federal Home Loan Bank dividends  8,727   9,170 
Interest-earning deposits, federal funds sold, and other  172,591   63,712 
Total interest and dividend income  19,821,533   21,652,794 
     
Interest expense:    
Deposits  2,769,685   3,833,610 
Federal Home Loan Bank advances  444,070   518,647 
Securities sold under agreements to repurchase  13,713   17,839 
Subordinated debentures  88,286   97,914 
Total interest expense  3,315,754   4,468,010 
     
Net interest income  16,505,779   17,184,784 
     
Provision for loan losses  485,000   1,550,000 
     
Net interest income after provision for loan losses  16,020,779   15,634,784 
     
Other income:    
Service fees on deposit accounts  371,424   370,082 
Other service charges and fees  376,115   375,045 
Loan servicing fees  284,875   219,117 
Gain on sale of securities  359,138   167,978 
Gain on sale of loans  560,526   1,599,694 
Other  216,569   236,870 
   2,168,647   2,968,786 
     
Other expenses:    
Compensation and employee benefits  6,298,405   5,959,622 
Occupancy expense  1,353,783   1,257,849 
Data processing services  723,977   703,957 
Director fees  177,467   151,700 
Professional fees  448,423   519,331 
FDIC insurance premiums  476,731   469,104 
Foreclosed asset related expenses  1,343,883   653,736 
Amortization of core deposit intangible  264,000   281,000 
Amortization of mortgage servicing rights  118,511   286,165 
Other  2,242,177   2,211,571 
   13,447,357   12,494,035 
     
Income before income taxes  4,742,069   6,109,535 
     
Income tax expense  1,386,008   2,045,034 
     
Net income  $ 3,356,061   $ 4,064,501 
     
     
Basic earnings per share  $ 0.46   $ 0.53 
Diluted earnings per share  $ 0.46   $ 0.53 
     
     
     
First Clover Leaf Financial Corp. 
Consolidated Balance Sheets
     
  At December 31, At December 31,
  2013 2012
ASSETS    
     
Cash and due from banks  $ 14,363,461   $ 23,798,795 
Interest-earning deposits  8,681,426   8,161,322 
Federal funds sold  61,648,938   39,454,481 
Total cash and cash equivalents  84,693,825   71,414,598 
     
Interest-earning time deposits  1,766,493   1,749,744 
Securities available for sale  117,776,982   88,280,080 
Federal Home Loan Bank stock  2,887,763   2,887,763 
Loans, net of allowance for loan losses of $5,590,668 and $5,944,585 at 2013 and 2012, respectively  372,568,962   394,868,626 
Loans held for sale  --   1,827,000 
Property and equipment, net  9,873,198   10,157,929 
Goodwill  11,385,323   11,385,323 
Bank-owned life insurance  8,497,895   5,244,335 
Core deposit intangible  271,000   535,000 
Foreclosed assets  5,577,481   6,505,912 
Mortgage servicing rights  918,247   811,783 
Accrued interest receivable  1,551,258   1,592,307 
Prepaid FDIC insurance premiums  --   1,001,161 
Other assets  4,276,015   2,507,471 
     
Total assets  $ 622,044,442   $ 600,769,032 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
Deposits:    
Noninterest bearing  $ 55,263,604   $ 60,330,245 
Interest bearing  447,276,088   400,043,801 
Total deposits  502,539,692   460,374,046 
     
Federal Home Loan Bank advances  13,980,005   21,966,750 
Securities sold under agreements to repurchase  26,766,169   34,494,579 
Subordinated debentures  4,000,000   4,000,000 
Accrued interest payable  199,764   284,270 
Other liabilities  1,463,182   1,392,984 
Total liabilities  548,948,812   522,512,629 
     
     
Stockholders' Equity    
Common stock, $.10 par value, 20,000,000 shares authorized, 7,007,283 and 7,481,317 shares issued and outstanding at 2013 and 2012  700,728   748,132 
Additional paid-in capital  55,818,936   59,660,244 
Retained earnings  18,268,454   16,651,916 
Accumulated other comprehensive income/(loss)  (1,692,488)   1,196,111 
Total stockholders' equity  73,095,630   78,256,403 
     
Total liabilities and stockholders' equity  $ 622,044,442   $ 600,769,032 
     
     
     
First Clover Leaf Financial Corp. 
Asset Quality
     
  At December 31, At December 31,
  2013 2012
     
Delinquent loans 90 days or more past due  $ 733,740   $ 3,063,148 
Non accrual loans  $ 6,446,132   $ 11,471,329 
Allowance for loan losses  $ 5,590,668   $ 5,944,585 
Allowance for loan losses to total loans 1.50% 1.51%
Allowance for loan losses to non accrual loans 77.28% 50.89%
     
Foreclosed assets  $ 5,577,481   $ 6,505,912 
David Kuhl (618) 656-6122