2011 earnings of $352,000. This is a $40,000 decrease over
2010 fourth quarter earnings of $392,000. Fourth quarter
earnings per basic and diluted common share for 2011 of $0.18
were reported as compared to $0.20 recorded during the 2010
fourth quarter. For the year ended December 31, 2011, net
income amounted to $1,396,000 compared to net income of
$1,461,000 for the same period in the prior year. Basic and
diluted earnings per common share were $0.73 for the year
ended December 31, 2011 compared to the prior year earnings
per share of $0.77 per common share. Weighted average shares
outstanding for 2011 equaled
1,893,672 while weighted average shares outstanding during
2010 equaled 1,893,546. Annual net earnings declined 4.45%,
and this is primarily attributable to the opening of our
newest branch coupled with the continued efforts to write
down or off problematic credits in a conservative manner. In
2009 and 2010, deteriorating markets prompted the write off
of certain impaired
credits deemed uncollectable as well as a significant buildup
of loss reserves for potential further borrower defaults. The
Bank
continued throughout 2011 to address troubled debts
aggressively and add fortification to loss reserves. Return
on average equity for the period ended December 31, 2011 was
6.89% compared to 7.52% in 2010. Return on average assets for
the period ended December 31, 2011 was 0.70% compared to
0.79% in 2010.
Total assets amounted to $205.0 million on December 31, 2011,
an increase of 6.72% or $12.9 million over the December
31, 2010 level of $192.1 million. Total loans, as of December
31, 2011, grew to $149.1 million compared to $135.0 million
as of December 31, 2010. The loan portfolio was up $14.1
million or 10.44% over the December 31, 2010 level. At
year-end 2011, the investment portfolio stood at $24.8
million, which represents a 8.82% decrease when compared to
the $27.2 million prior year-end
balance. On December 31, 2011, interest-bearing time deposits
in other banks stood at $2.0 million representing a 4.76%
decrease
over the $2.1 million interest-bearing time deposit
investments as of December 31, 2010. Overnight federal funds
sold grew $0.9 million or 10.47% from $8.6 million on
December 31, 2010 to $9.5 million on December 31, 2011.
Cumulatively, these earning assets grew $12.5 million or
7.23% during 2011 and represent 90.44% of total assets. Total
deposits amounted to $180.4 million as of December 31, 2011,
which represents a $12.4 million or 7.38% increase from the
$168.0 million level as of December 31,
2010. Total noninterest-bearing demand deposits were $30.3
million as of December 31, 2011, an increase of $3.1 million
or
11.4% from the December 31, 2010 $27.2 million level. During
this same period, interest-bearing deposits climbed $9.3
million or 6.61% from $140.8 million to $150.1 million. Total
borrowings from the Federal Home Loan Bank of Atlanta (the
"FHLB") decreased $0.4 million from $2.7 million on December
31, 2010 to $2.3 million as of December 31, 2011. There was
no
additional borrowing through the FHLB during 2011.
The Bank continues to focus on delinquencies and
nonperforming loans within the portfolio. In 2010, these
levels had dramatically improved from the highs of the prior
year. In 2011, certain credits demonstrated further
deterioration as the economy struggled to maintain the
stability experienced in 2010. As a result, 2011 year-end
past due and non-performing ratios of 1.84% and 2.94%
respectively were recorded. These ratios, at December 31,
2010, stood at 0.47% and 2.01%, respectively. Management
feels comfortable that further losses will continue to be
minimized by collateral positions as well as the Bank's
ability and willingness to work with the borrowers whenever
and wherever possible. Nevertheless, there may be further
credits that need to be written down or off, and management
has elected to continue building loan reserves at a more
tempered pace. After these additional allocations to
reserves, the allowance for loan losses as a percentage of
loans outstanding held steady with a decline of only 1 basis
point from the December 31, 2010 level.
The allowance for loan losses was $2,250,000 as of December
31, 2011, or 1.51% of loans outstanding, compared to
$2,050,000 as of December 31, 2010 or 1.52% of outstanding
loans. Net charges to the reserve account for loan losses
amounted to $625,000 as of December 31, 2011 or 0.44% of
average outstanding loans for 2011. For the 2010 period, net
charges to the reserve of $601,000 were taken representing
0.47% of average loans outstanding for the period.
Allocations to the reserve account
of $825,000 were provisioned for 2011 compared to provision
allocations of $701,000 for the same period of 2010.
The net interest income for the year ended December 31, 2011
was $8.1 million, a 12.86% increase when compared to the
December 31, 2010 level of $7.2 million. The average loan
portfolio increased $13.8 million to $142.1 million for the
current fiscal year, representing a 10.76% hike over the
average loan portfolio assets of $128.3 million for the same
period in 2010. The related interest income from loans was
$9.3 million in 2011, up 8.14% from the related interest
income of $8.6 million in 2010. The average yield on loans
decreased from 6.74% in 2010 to 6.56% in 2011. Average
investments dipped only $0.1 million to
$22.9 million for the current fiscal year, representing a
0.43% decrease below the average investment portfolio of
$23.0 million in
2010. The investment securities and other earning assets
(such as federal funds sold) contributed $0.9 million to the
interest income level of $10.2 million in 2011. The yield on
earning assets was 5.68% in 2011 and 5.82% in 2010. Average
demand
End-of-day quote
Other stock markets
|
||
- USD | - |
1st Jan change | Capi. | |
---|---|---|
+13.92% | 556B | |
+16.54% | 307B | |
+13.35% | 253B | |
+18.92% | 179B | |
+26.85% | 170B | |
+7.58% | 158B | |
+6.62% | 147B | |
-6.57% | 145B | |
+12.25% | 139B |
- Stock Market
- Equities
- TSBA Stock
- Stock
- News Bank McKenney (VA)
- Bank McKenney (VA) : Bank of McKenney reports solid earnings on double digit core loan growth and expanding margins