HCB FINANCIAL CORP. HCB Locations:
150 W Court St Hastings, MI 49058 269.945.2401
1.888.442.4221
435 Arlington St Middleville, MI 49333 269.795.3338
111 E Capital Ave Bellevue, MI 49021 269.763.9418
310 N Main St Nashville, MI 49073 517.852.0790
9265 Cherry Valley Caledonia, MI 49316 616.891.0010
156 W Superior Wayland, MI 49348 269.792.6201
124 W Michigan Ave Marshall, MI 49068 269.558.0994
259 E Michigan Ave Kalamazoo, MI 49007 269.366.3300
highpointcommunitybank.com
Transfer Agent HCB Financial Corp
Continental Stock Transfer & Trust Company 1 State St Plaza, 30th Floor
New York, NY 10004-1561
Email cstmail@continentalstock.com
Toll Free 1.800.509.5586 or 1.212.845.3206
Second
Quarter
Financial
Report
2022
July 27, 2022
To Our Shareholders:
Enclosed is the regular quarterly cash dividend of $.19 per share on your HCB Financial Corp. common stock. It is payable today to shareholders of record at the close of business on July 6, 2022.
Net income after tax for the six months ended June 30, 2022 was $1,140,000 or $1.10 per share. This represents a 17% decline from the first half of 2021 with earnings of $1,379,000 or $1.29 per share. The largest contributing factors to the change in our year-over-year earnings comes from a 12% decrease in our non-interest income (primarily due to a decline in mortgage volume), combined with a 5% increase in our other non-interest expense (driven by increases in both employee and electronic services expenses), partially offset by a 17% decrease in interest expense (resulting from a change in our deposit mix and repricing of maturing time deposits).
During the twelve months ended June 30, 2022, total assets increased 9% to $472,410,000. This is a result of a continued increase in demand deposits, bringing total deposits to $415,113,000. Total loans were virtually flat from the prior year, standing at $241,160,000 at the end of June. Shareholders' equity stood at $32,076,000, 12% less than it was one year ago, bringing the book value of our common shares to $30.94 per share. The decrease in shareholders' equity can be attributed to the "mark-to-market" unrealized loss identified in our available for sale securities portfolio.
I would like to bring to your attention several important changes in our operations that are taking place. After careful consideration, we have made the decision to close our Bellevue branch effective October 6th. With changes in consumer preferences and banking technology, along with the proximity of our Marshall and Nashville locations, we are confident that we can effectively serve the Bellevue community without a brick-and-mortar presence. We recently shared this information with our Bellevue customers and staff along with our commitment to making this transition as seamless as possible for everyone involved. Another important development this past quarter was the opening of our loan production office in Kalamazoo. On May 16th we officially opened the office located at 259 E. Michigan Avenue in downtown Kalamazoo. With an emphasis on small business lending, the office is currently staffed by Lanny L. Scoby, SVP/Market President and Eric D. Drogosch, AVP/Business Development Officer. Both of these gentlemen have extensive backgrounds in commercial lending as well as many years of experience in the region. Also, in May we were pleased to announce the hiring of Jeffrey R. Steeby as SVP/Wealth Management. Jeff is an experienced trust, investment, and wealth management professional with ties to both the Grand Rapids and Kalamazoo markets. He will be teaming up with Randy Teegardin in our Trust and Wealth Management Department to help expand and lead the department into the future. We will keep you updated on these changes and their effects on our business as we move forward. If you recall from my comments at April's share-holders meeting, all
H C B F I N A N C I A L C O R P :
(Unaudited) Dollars in thousands, except per share data.
Financial Highlights | Year-to-Date | |
June 2022 | ||
Interest Income (inc. loan fees) | $6,235 | |
Interest Expense | 480 | |
Loan Loss Provision | 30 | |
Net Interest Income | $5,725 |
Non-Interest Income | 1,392 |
Other Non-Interest Expense | 5,939 |
Federal Income Tax Provision | 38 |
Net Income after Tax | $1,140 |
Per Share Data | |
Average Outstanding Shares | 1,036,600 |
Net Income per Share | 1.10 |
Dividends per Share | .38 |
Book Value per Share | 30.94 |
Balance Sheet Highlights
(Unaudited) Dollars in thousands, except per share data.
Year-to-Date | |||
June 2021 | % Change | ||
$6,276 | -1% | ||
577 | -17% | ||
90 | -67% | ||
$5,609 | 2% |
1,573 | -12% | |
5,665 | 5% | |
138 | -72% | |
$1,379 | -17 % | |
1,066,000 | |
1.29 | -15% |
.38 | 0% |
34.09 | -9% |
three of these initiatives align very well with the strategic objectives that were shared.
If you have any comments, questions or suggestions, we hope that you will contact any director or senior officer to discuss them. We are always pleased to hear from you.
Yours truly,
Mark A. Kolanowski
President and CEO
Assets | $472,410 | $431,900 | 9% |
Loans (gross) | $241,160 | $242,339 | 0% |
Deposits | $415,113 | $368,711 | 13% |
Interest Earning Assets | $453,699 | $407,685 | 11% |
Shareholders Equity | $32,076 | $36,343 | -12% |
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Disclaimer
HCB Financial Corp. published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 12:33:07 UTC.
