GERMANTOWN, Md., Nov. 5, 2013 /PRNewswire/ -- OBA Financial
Services, Inc., (NASDAQ – OBAF) ("Company"), the parent company of
OBA Bank ("Bank"), announces net income of $314 thousand, or $0.08 basic and diluted earnings per share, for
the Company's fiscal first quarter of 2014 which ended September 30, 2013 as compared to net income of
$260 thousand, or $0.07 basic and diluted earnings per share, for
the period ended September 30, 2012
and net income of $228 thousand, or
$0.06 basic and diluted earnings per
share, for the fiscal quarter ended June 30,
2013.
Charles E. Weller, President and
Chief Executive Officer, commented, "The Company performed well
financially over the last quarter and continues to make progress on
our primary strategy of building commercial business
relationships. Total commercial loans increased to
$196.8 million during the quarter
ended September 30, 2013, led by our
commercial real estate ("CRE") portfolio, which increased 3.0% to
$144.3 million, during the most
recent quarter. Our asset quality remains better than most of
our peers as non-performing assets to total assets were 0.18% and
non-performing loans to total loans were 0.23% at September 30, 2013.
"We are pleased to add another seasoned, well-respected
commercial business lender to our Montgomery County group. Michael Benedict brings a substantial and
highly-valued client list to the Bank and adds depth to an already
strong lending group in one of the nation's more resilient
markets.
"On November 4, 2013, the Bank
changed to a new service provider for account processing,
online banking, cash management services, and statement
production. The new platform should better serve our
commercial business banking model and provide us with the products
and services needed to successfully compete in that arena.
The platform should also provide enhanced management information
systems and flexibility to support our decision making
processes.
"We remain dedicated to taking actions over time that benefit
all of our shareholders and continually improving the value of
their investment in our Company."
Financial Highlights Comparing the Three Months Ended
September 30, 2013 and 2012 and
June 30, 2013:
- Net income increased 20.8%, or $54
thousand, to $314 thousand for
the three months ended September 30,
2013 compared to the same period in 2012.
Additionally, net income increased 37.7%, or $86 thousand, from $228
thousand for the three months ended June 30, 2013.
- Net income excluding the impact of the compensation expense
related to the shareholder-approved equity incentive plan,
approximately $145 thousand after-tax
in each period listed, increased $54
thousand, or 13.3%, to $459
thousand for the three months ended September 30, 2013 compared to the same period in
2012 and increased $86 thousand, or
23.1%, from $373 thousand, for the
three months ended June 30,
2013. The adjusted return on average assets was 0.47% for the
quarter ended September 30, 2013, an
increase from 0.41% and 0.39% for the quarters ended September 30, 2012 and June 30, 2013, respectively.
- Total CRE loans increased $4.2
million, or 12.4% annualized, to $144.3 million at June 30,
2013.
- Total deposits increased $18.4
million, or 6.8%, to $290.1
million at September 30, 2013
compared to September 30, 2012 and
$6.9 million, or 2.4% (10.0%
annualized), compared to June 30,
2013.
Income Statement
Net income increased
$54 thousand for the quarter ended
September 30, 2013 compared to the
quarter ended September 30,
2012. The change in net income was primarily due to an
increase in net interest income of $103
thousand and a decrease in the provision for loan losses of
$107 thousand offset by increases in
income taxes, compensation expense, and data processing and other
expenses related to the impending conversion to the Bank's new
service provider.
Net income increased $86 thousand
for the quarter ended September 30,
2013 compared to the quarter ended June 30, 2013. The change in net income was
due to a decrease in the provision for loan losses of $174 thousand and a decrease in non-interest
expense of $488 thousand due to the
partial repayment, in the previous quarter, of a high cost Federal
Home Loan Bank advance. Those changes were offset by a
decrease in net interest income due to the recognition, in the
quarter ended June 30, 2013, of all
fees and interest due on the payoff of the second of two
non-performing commercial real estate loans to not-for-profit
entities in which the Company had a full recovery.
Balance Sheet
Total assets increased to $390.4 million at September 30, 2013 from $381.6 million at June 30,
2013 and $388.8 million at
September 30, 2012.
Total commercial loans increased $21.7
million, or 12.4%, to $196.8
million at September 30, 2013
compared to September 30, 2012.
CRE loans increased 11.6 million, or 8.7%, to $144.3 million at September 30, 2013 compared to September 30, 2012. Total loans remained
relatively unchanged at $301.5
million, a slight decrease of $1.8
million from June 30,
2013. The residential mortgage loan portfolio decreased
$3.0 million, to $77.5 million at September
30, 2013 from June 30,
2013.
Total deposits increased $18.4
million, or 6.8%, to $290.1
million from $271.7 million at
September 30, 2013 and 2012,
respectively, and $6.9 million, or
2.4% (10.0% annualized), from $283.3
million at June 30, 2013.
Equity and Capital
Stockholders' equity decreased to
$71.8 million at September 30, 2013 compared to $75.7 million at September
30, 2012 primarily as a result of the Company's share
repurchase program. The Company's initial share repurchase
program was completed as of May 3,
2012, having repurchased the 462,875 shares approved in that
initial program. The Company's second share repurchase program was
completed on April 17, 2013, having
repurchased 208,294 shares. The Company's Board of Directors
adopted a third share repurchase program, previously disclosed in
the Company's Form 8-K filed on April 29,
2013. The Company repurchased 160,098 shares of the 210,252
shares approved in the third program as of September 30, 2013. The Company and Bank
remain well-capitalized with ratios well in excess of regulatory
minimums.
Asset Quality
Total non-performing assets as a
percentage of total assets decreased to 0.18% at September 30, 2013 compared to 1.57% at
September 30, 2012. Total
non-performing loans as a percentage of total loans decreased to
0.23% at September 30, 2013 compared
to 2.03% at September 30, 2012.
Total non-performing assets as a percentage of total assets
remained unchanged at 0.18% at September 30,
2013 from June 30, 2013.
Total non-performing loans as a percentage of total loans remained
unchanged at 0.23% at September 30,
2013 from June 30, 2013.
The allowance for loan losses as a percentage of total loans was
unchanged at 1.15% at September 30,
2013 compared to June 30,
2013. The allowance for loan losses as a percentage of total
loans increased to 1.15% at September 30,
2013 from 1.05% at September 30,
2012.
Use of Non-U.S. GAAP Financial Measures
This press
release contains financial measures that are not calculated in
accordance with accounting principles generally accepted in
the United States of America
("U.S. GAAP"). The Company believes that the presentation of
non-U.S. GAAP financial measures will permit investors to assess
the Company's core operating results on the same basis as
management. Non-U.S. GAAP financial measures should be considered
supplemental to, not a substitute for or superior to, financial
measures calculated in accordance with U.S. GAAP. As other
companies may use different calculations for these measures, this
presentation may not be comparable to other similarly titled
measures reported by other companies.
About OBA Financial Services, Inc. and OBA Bank
OBA Financial Services, Inc. is the holding company for the
Bank. OBA Bank, founded in 1861, is a community-oriented bank
which provides a variety of financial services to small businesses
and individuals through its offices in Montgomery, Howard, and Anne
Arundel Counties of Maryland. The Bank's primary
deposits are demand, money market, and time certificate accounts
and its primary lending products are Commercial mortgage,
commercial business, construction, and residential mortgage
loans. Visit www.obabank.com to locate an ATM or branch
near you or for more information about OBA Bank.
Forward-Looking Statements
When used in this Press
Release, the words or phrases "will likely result," "are expected
to," "will continue," "is anticipated," "estimate," "should,"
"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 economic conditions in the Bank's market
area, changes in policies by regulatory agencies, changes in the
Bank's regulator, fluctuations in interest rates, demand for loans
in the Bank's market area, competition that could cause actual
results to differ materially from historical earnings and those
presently anticipated or projected, and other risks described in
the Company's filings with the Securities and Exchange
Commission. The Company cautions readers not to place undue
reliance on any such forward-looking statements, which speak only
as of the date made. The Company advises readers 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.
The Company does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revision 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.
OBA Financial
Services, Inc.
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FINANCIAL
SUMMARY
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(dollars in
thousands, except per share data)
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Three
Months Ended
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Three Months
Ended
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September
30,
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June 30,
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2013
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2012
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% Change
(1)
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2013
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% Change
(1)
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RESULTS OF
OPERATIONS:
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Net interest
income
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$
3,358
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$
3,255
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3.2
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%
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$
3,701
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(9.3)
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%
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Provision for loan
losses
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5
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112
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(95.5)
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179
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(97.2)
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Non-interest income,
excluding gains (losses)
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196
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200
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(2.0)
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155
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26.5
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Net gains
(losses)
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25
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-
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-
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23
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8.7
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Non-interest
expense
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3,037
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2,921
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4.0
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3,401
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(10.7)
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Income before
taxes
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537
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422
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27.3
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299
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79.6
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Income tax
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223
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162
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37.7
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71
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-
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Net Income
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314
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260
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20.8
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228
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37.7
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SHARE
DATA:
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Basic earnings per
share
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$
0.08
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$
0.07
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14.3
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%
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$
0.06
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33.3
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%
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Diluted earnings per
share
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0.08
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0.07
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14.3
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0.06
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33.3
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Book value per common
share(1)
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17.78
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17.48
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1.7
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17.61
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1.0
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Tangible book value
per common share(1)
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17.78
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17.48
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1.7
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17.61
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1.0
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Net tangible book
value per common share(1)
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17.77
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17.24
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3.1
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17.60
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1.0
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Weighted average
shares - basic (1)
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3,734,822
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3,825,224
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(2.4)
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3,840,009
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(2.7)
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Weighted average
shares - diluted (1)
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3,734,822
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3,881,946
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(3.8)
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3,895,760
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(4.1)
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Common shares
outstanding(1)
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4,038,006
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4,332,634
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(6.8)
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4,048,436
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(0.3)
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SELECTED
RATIOS:
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Return on average
assets
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0.32
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%
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0.27
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%
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0.24
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%
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Return on average
equity
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1.74
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1.36
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1.24
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Net interest
margin
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3.80
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3.62
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4.23
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Leverage
ratio
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18.38
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19.29
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18.67
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Tier I risk-based
capital ratio
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24.63
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27.66
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24.45
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Total risk-based
capital ratio
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25.83
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28.82
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25.64
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Allowance for loan
losses to total loans
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1.15
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1.05
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1.15
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Non-performing loans
to total loans
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0.23
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2.03
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0.23
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Non-performing assets
to total assets
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0.18
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1.57
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0.18
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END OF PERIOD
BALANCES:
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Investment
securities
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$
35,964
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$
50,379
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(28.6)
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%
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$
38,619
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(6.9)
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%
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Total
loans
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301,459
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298,000
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1.2
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303,276
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(0.6)
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Earning
assets
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349,545
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359,260
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(2.7)
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350,328
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(0.2)
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Assets
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390,438
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388,755
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0.4
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381,611
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2.3
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Deposits
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290,113
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271,685
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6.8
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283,263
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2.4
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Borrowings
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26,183
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38,828
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(32.6)
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24,167
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8.3
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Stockholders'
equity
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71,810
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75,717
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(5.2)
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71,304
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0.7
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AVERAGE
BALANCES:
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Investment
securities
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$
37,209
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$
40,189
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(7.4)
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%
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$
40,291
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(7.6)
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%
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Total
loans
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301,351
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295,016
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2.1
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298,841
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0.8
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Earning
assets
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350,546
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357,616
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(2.0)
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351,019
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(0.1)
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Assets
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387,208
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388,680
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(0.4)
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385,268
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0.5
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Deposits
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286,311
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270,632
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5.8
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282,090
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1.5
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Borrowings
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25,799
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39,445
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(34.6)
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27,009
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(4.5)
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Stockholders'
equity
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71,617
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75,777
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(5.5)
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73,973
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(3.2)
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(1) For
percent change greater than 200%, change will not be
shown.
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SOURCE OBA Financial Services, Inc.