EAST LIVERPOOL - Tri-State 1st Banc Inc. reported earnings of $292,041 for the second quarter of 2014, an increase of 3.4 percent over the second quarter of 2013.
2014 second quarter earnings were negatively impacted by assets being approximately $15 million smaller than the second quarter of 2013.
Management estimates the earnings loss to be about 2 percent, which would equate to $49,500 in after-tax earnings. The smaller size allowed the company to pay off the Series B Preferred Stock saving Common Stock shareholders $244,000 per year. 2014 second quarter earnings were positively impacted by a $45,200 after tax gain on the sale of the New Cumberland branch building.
Earnings for the first half of 2014 were $442,474, a $90,351 or 17 percent decrease from the first half of 2013. 2014 earnings were negatively impacted by reduced after-tax income of $99,000 due to the $15 million decrease in size. They were also negatively impacted because there were no security gains in 2014 versus $49,797 in after-tax security gains in 2013. Offsetting part of these negative impacts was the one time gain on the sale of the New Cumberland branch building.
If 2014 first-half earnings were adjusted to reflect these three events, they would be approximately 2.5 percent better than the first half of 2013.
Highlights for the first half of 2014 include loan growth of 1 percent from June 30, 2013; a decrease in classified assets of $1 million from June 30, 2013; a decrease in loan delinquency of 34 percent from June 30, 2013; continued above peer fee income led by the nonbank affiliates; and an increase in net interest margin from 3.21 percent as of June 30, 2013, 3.54 percent as of June 30, 2014.
Company total assets as of June 30, 2014, were $128.5 million, compared with June 2013 when Total Assets were $147.1 million. Shareholder's Equity was $10.3 million on June 30, 2014.
"We are very pleased with our second quarter and first half results. After adjusting for smaller asset size, the 2013 security gains, and the gain of the sale of our New Cumberland branch building, both show a solid improvement over 2013," said Stephen R. Sant, president/CEO of Tri-State 1st Banc. "All four of our subsidiaries are focused on the actions necessary to keep our company's earnings strong.
"Our loan growth has been a little slow so far this year having been impacted by loan payoffs, some related to the shale activity. Our loan pipeline for the remainder of the year looks to be robust. I'm also proud of our continuing improvement in asset quality as evidenced by our declining classified assets and past-due loans. These declines help earnings as lower provisions for loan losses are necessary"