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
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that TidalScale 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. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that NetApp has been named “Bronze 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. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...