Welcome!

News Feed Item

Bank of McKenney Reports Record Profits For 2013

MCKENNEY, Va., Feb. 3, 2014 /PRNewswire/ -- Bank of McKenney (the "Bank") (OTCBB: BOMK.OB) today announced record net income of $1.7 million, or $0.89 earnings per share, for the year ended December 31, 2013 compared to net income of $1.2 million, or $0.63 earnings per share, for the same period ended December 31, 2012.  That represents an improvement of $490,000, or $0.26 earnings per share when comparing the year ended December 31, 2013 and 2012.  The record profits were mainly driven by the Bank's core earnings; increased interest income from loans and a lowering of cost of funds. Return on average equity increased 201 basis points to 7.76% for the period ended December 31, 2013 when compared to 5.75% for the same period in 2012.  Return on average assets for the period ended December 31, 2013 was 0.78% compared to 0.58% in 2012. For the fourth quarter of 2013, the Bank recorded net income of $410,000 versus 499,000 recorded in the same period in 2012. 

"Due to the stabilizing of the economy in 2013, we were able turn our primary focus from problem assets management back to our earning assets, namely loans, and our costs of funds," said Richard M. Liles, President and CEO. "We are extremely pleased with the results and feel increasingly optimistic about continuing this trend in 2014", he continued.

2013 Results

Net interest income for the year ended December 31, 2013 was $9.2 million, a 6.98% increase when compared to the December 31, 2012 level of $8.6 million.  The average loan portfolio increased $7.5 million to $158.8 million for the current fiscal year, representing a 4.94% hike over the average loan portfolio assets of $151.3 million for the same period in 2012.  The related interest income from loans was $10.0 million in 2013, up 3.4% from the related interest income of $9.7 million in 2012.  The average yield on loans decreased ten basis points from 6.39% in 2012 to 6.29% in 2013.  The yield on earning assets was 5.40% in 2013 versus 5.50% in 2012.  Average demand deposits increased 13.9% during 2013 to $37.8 million when compared to $33.2 million for the same period in 2012.  Average interest-bearing deposits were $153.0 million through the year ended December 31, 2013, and represented an increase of $1.9 million or 1.3% over the average 2012 level of $151.0 million.  Cumulatively, average interest-bearing funding sources (deposit and purchased funds) grew to $154.7 million in 2013 which was $1.5 million or 0.96% greater than the 2012 level of $153.2 million.  Interest expense for all interest-bearing liabilities totaled $1.3 million in 2013 which was 19.9% or $318,000 less than the 2012 level of $1.6 million.  The Bank was able to favorably reprice its cost of funds resulting in an average yield on interest-bearing liabilities of 0.83% during 2013 or 21 basis points lower than the 2012 level of 1.04%.  The interest spread expanded for the twelve months of 2013 by 11 basis points to 4.57%.  Likewise, the net interest margin grew for the twelve months of 2013 to 4.74%, up nine basis points from the 4.65% margin recorded for the same period in 2012.  The increase in the net interest margin is due to continued cost of funds reductions that outpace reductions in earning asset yields.  Though a large segment of the loan portfolio is prime based, the Bank has prudently structured most of its loan relationships to include floors.  This has promoted stability in yields on earning assets during the abnormally low and lengthy rate cycle. 

The Bank had a downtick in non-interest income from $2.1 million recorded for the year ended December 31, 2012 to $1.8 million recorded in the same period in 2013.  The main driver for the decrease was a nonrecurring $272,000 death benefit received on bank-owned life insurance.  Noninterest expenses remained static, totaling $7.96 million for the 2013 calendar year, versus $7.80 million recorded for the year 2012.  Income tax expense was $752,000 in 2013 compared to $342,000 in 2012.

Balance Sheet

Total assets totaled $213.3 million at December 31, 2013, an increase of 0.7% or $1.4 million over the December 31, 2012 level of $211.9 million.  Total loans, as of December 31, 2013, grew $6.1 million, or 4.0%, to $158.0 million compared to $151.9 million as of December 31, 2012.  At year-end 2013, the investment portfolio stood at $24.6 million, which represents a $4.6 million or 22.7% increase when compared to the $20.0 million prior year-end balance.  Cumulatively, interest-earning assets grew $1.8 million or 1.0% during 2013 and represent 88.2% of total assets.  Total deposits remained virtually static at December 31, 2013 totaling $188.0 million, when compared to December 31, 2012's total of $187.2 million. Total noninterest-bearing demand deposits were $36.8 million as of December 31, 2013, an increase of $2.0 million or 5.86% from the December 31, 2012 $34.8 million level.  During this same period, interest-bearing deposits declined $1.3 million or 0.81% from $152.4 million to $151.1 million

Asset Quality and Allowance for Loan Losses

As a result of the Bank aggressively managing its problem assets and the stabilizing of the economy, nonperforming assets decreased $1.4 million, or 39.37% to $2.2 million during 2013.  Total nonperforming assets represented 1.03% and 1.81% of total assets at December 31, 2013 and 2012, respectively. Total other real estate owned was $1.5 million and $2.4 million at December 31, 2013 and 2012, respectively.  Nonaccrual loans decreased $606,000, or 47.8%, to $662,000 at December 31, 2013, when compared to a balance of $1.3 million at December 31, 2012.

The allowance for loan losses was $2.55 million as of December 31, 2013, or 1.61% of loans outstanding, compared to $2.3 million as of December 31, 2012 or 1.51% of outstanding loans.  Allocations to the reserve account of $600,000 were provisioned for 2013 compared to provision allocations of $1.43 million for the same period of 2012. 

Bank of McKenney is a full-service community bank headquartered in McKenney, Virginia with seven branches serving Southeastern Virginia and assets totaling $213.4 million.

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Bank of McKenney's filings with the Board of Governors of the Federal Reserve.









BANK OF MCKENNEY AND SUBSIDIARY

Consolidated Balance Sheets Summary Data

December 31, 2013 (unaudited) and December 31, 2012














December 31,


December 31,

ASSETS





2013


2012









Cash and due from banks





$          7,302,627


$          6,931,416

Federal funds sold





5,197,000


13,712,000

Interest-bearing time deposits in banks





3,003,195


3,004,071

Securities available for sale, at fair market value





23,913,402


19,305,754

Restricted investments





690,775


744,075

Loans, net





155,433,437


149,628,531

Loans held for sale





114,285


-

Land, premises and equipment, net





9,208,503


9,266,945

Other real estate owned





1,531,858


2,350,288

Other assets





6,971,985


6,989,276

    Total Assets





$      213,367,067


$      211,932,356









LIABILITIES
















Deposits





$      187,969,328


$      187,172,274

Borrowed Funds





1,666,666


2,000,000

Other liabilities





1,600,774


1,560,891

    Total Liabilities





$      191,236,768


$      190,733,165









SHAREHOLDERS' EQUITY
















Total shareholders' equity





$        22,130,299


$        21,199,191

    Total Liabilities and Shareholders' Equity





$      213,367,067


$      211,932,356









 

BANK OF MCKENNEY AND SUBSIDIARY

Consolidated Statements of Income Summary Data

(unaudited)










Three Months Ended


Years Ended


December 31,


December 31,


2013


2012


2013


2012









Interest and dividend income

$          2,612,672


$          2,594,904


$        10,520,399


$        10,223,979

Interest expense

292,368


371,650


1,280,975


1,598,686

  Net interest income

$          2,320,304


$          2,223,254


$          9,239,424


$          8,625,293

 Provision for loan losses 

299,760


173,708


599,760


1,425,708

Net interest income after provision for loan losses

$          2,020,544


$          2,049,546


$          8,639,664


$          7,199,585

Non interest income

$             528,610


$             459,252


$          1,766,670


$          2,146,533

Non interest expense

1,962,164


1,807,589


7,956,618


7,795,907

  Net non interest expense

$          1,433,554


$          1,348,337


$          6,189,948


$          5,649,374

Net income before taxes

$             586,990


$             701,209


$          2,449,716


$          1,550,211

 Income taxes 

177,216


202,050


751,605


342,072

Net income

$             409,774


$             499,159


$          1,698,111


$          1,208,139









Dividends declared on preferred shares

$                 9,143


$                 8,817


$                 9,143


$                 8,817

Income available to common shareholders

$             400,631


$             490,342


$          1,688,968


$          1,199,322









Basic & diluted earnings per share

$                   0.21


$                   0.26


$                   0.89


$                   0.63









Weighted average shares outstanding

1,894,002


1,894,002


1,894,002


1,893,924

















SOURCE Bank of McKenney

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...