Welcome!

News Feed Item

Stewardship Financial Corporation Announces First Quarter of 2014 Earnings

MIDLAND PARK, NJ -- (Marketwired) -- 05/07/14 -- Stewardship Financial Corporation (NASDAQ: SSFN), parent of Atlantic Stewardship Bank, announced net income for the three months ended March 31, 2014 of $506,000 as compared to net income of $822,000 for the three months ended March 31, 2013. After dividends on preferred stock, the net income available to the common stockholders was $335,000, or $0.06 per common share, for the current 2014 period compared to $656,000, or $0.11 per common share, for the equivalent period of 2013. Items affecting comparisons between the periods are explained below.

Of significant importance for the quarter, the Corporation did not record a provision for loan losses for the three months ended March 31, 2014 in contrast to a provision for loan losses of $1.6 million for the three months ended March 31, 2013. Paul Van Ostenbridge, Stewardship Financial Corporation's President and Chief Executive Officer, commented, "Based on our continued improvement in asset quality and the reserves established over the past few years, no increase in the allowance for loan losses was necessary at March 31, 2014."

Continuing on the Corporation's improvement in the level of problem assets, Van Ostenbridge stated, "We are seeing the results of our committed focus for the last several years on reducing our level of nonperforming loans." Nonperforming loans decreased to $5.1 million, or 1.20% of total loans at March 31, 2014, representing an approximate 50% reduction when compared to $10.2 million, or 2.34%, at December 31, 2013 and over a 70% decline when compared to $17.5 million, or 3.97%, a year earlier.

Total nonperforming assets, which includes other real estate owned, represented just 1.02% of total assets at March 31, 2014, signifying meaningful progress when compared to 1.58% and 2.65% at December 31, 2013 and March 31, 2013, respectively.

The decrease in nonperforming assets is partially attributable to the sale of a small group of nonperforming loans that, at December 31, 2013, the Corporation had categorized as held for sale at the lower of cost or fair value of the underlying collateral, less cost to sell. After charge-offs previously recorded on these loans recognized against the allowance for loan losses, these loans had a carrying value of $2.8 million. The loans were sold during the three months ended March 31, 2014 and resulted in a net loss to the Corporation of $241,000, reflecting further declines in fair value.

When comparing the current year quarter results with the prior year quarter, components of noninterest income also had a substantial impact. The Corporation reported noninterest income of $399,000 for the three months ended March 31, 2014 compared to $1.5 million for the equivalent prior year period. The current year period includes the previously mentioned loss of $241,000 from the sale of nonperforming loans as well as reduced gains on sales of mortgage loans reflective of the impact of rising mortgage rates and corresponding reduction in refinance activity. In addition, the prior year period included $537,000 as a result of a death benefit insurance payment received.

Net interest income was $5.3 million in the first quarter of 2014 compared to $5.9 million a year earlier. "While the Corporation continues to monitor and manage all expenses, the low interest rate environment in which we have been operating has put pressure on asset yields," said Van Ostenbridge.

Total noninterest expenses were $5.1 million for the three months ended March 31, 2014 -- comparable to $4.9 million incurred in the prior year period.

Total assets at March 31, 2014 were $672.6 million, which were comparatively unchanged from assets of $673.5 million at December 31, 2013. Additional liquidity was provided by an increase in cash and cash equivalents. Gross loans receivable decreased $10.5 million from December 31, 2013, reflecting normal payoffs and principal amortization as well as the competitive environment for new loans due to lack of demand. Van Ostenbridge noted, "Our lending efforts are dedicated to building and maintaining a pipeline of loan applications, with underwriting that adheres to our strict guidelines."

Total deposits were $575.4 million at March 31, 2014, reflecting a relatively insignificant decline when compared to deposits of $577.6 million at December 31, 2013. At March 31, 2014 noninterest bearing deposits represented 23.9% of total deposits.

Capital levels continue to significantly exceed the regulatory requirements for a "well capitalized" institution with a tier 1 leverage ratio of 9.22% and a total risk-based capital ratio of 15.13% compared to the regulatory requirements of 4% and 8%, respectively.

Van Ostenbridge concluded, "While the last several years have seen substantial attention and resources devoted to addressing problem loans, the results of those labors are now clearly evident. With asset quality issues now considered to be at a manageable level, our efforts can now be fully directed on our core banking business."

Stewardship Financial Corporation's subsidiary, the Atlantic Stewardship Bank, has 12 banking offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock, Ridgewood, Waldwick, Wayne (2), Westwood and Wyckoff, New Jersey. The bank is known for tithing 10% of its pre-tax profits to Christian and local charities. To date, the Bank's tithe donations total $8.1 million.

We invite you to visit our website at www.asbnow.com for additional information.

The information disclosed in this document contains certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "believe," "expect," "anticipate," "should," "plan," "estimate," and "potential." Examples of forward looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Corporation that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include: changes in general, economic and market conditions, legislative and regulatory conditions, or the development of an interest rate environment that adversely affects the Corporation's interest rate spread or other income anticipated from operations and investments.


                     Stewardship Financial Corporation
                Selected Consolidated Financial Information
              (dollars in thousands, except per share amounts)
                                (unaudited)

                                  March 31,     December 31,    March 31,
                                     2014           2013           2013
                                -------------  -------------  -------------

Selected Financial Condition
 Data:
  Cash and cash equivalents     $      27,176  $      17,405  $      26,144
  Securities available for sale       171,692        168,411        175,493
  Securities held to maturity          24,685         25,964         28,548
  FHLB Stock                            2,133          2,133          2,213
  Loans receivable:
    Loans receivable, gross           423,471        434,009        441,533
    Allowance for loan losses          (9,792)        (9,915)       (11,512)
    Other, net                            105            168             62
                                -------------  -------------  -------------
  Loans receivable, net               413,784        424,262        430,083

  Loans held for sale                     186          2,800          2,101
  Other assets                         32,947         32,533         29,344
                                -------------  -------------  -------------
  Total assets                  $     672,603  $     673,508  $     693,926
                                =============  =============  =============


  Noninterest-bearing deposits  $     137,687  $     133,565  $     132,960
  Interest-bearing deposits           437,729        444,026        462,578
                                -------------  -------------  -------------
  Total deposits                      575,416        577,591        595,538
  Other borrowings                     25,000         25,000         25,000
  Securities sold under
   agreements to repurchase             7,601          7,300          7,344
  Subordinated debentures               7,217          7,217          7,217
  Other liabilities                     2,209          2,621          2,152
                                -------------  -------------  -------------
  Total liabilities                   617,443        619,729        637,251
  Shareholders' equity                 55,160         53,779         56,675
                                -------------  -------------  -------------
  Total liabilities and
   shareholders' equity         $     672,603  $     673,508  $     693,926
                                =============  =============  =============

  Equity to assets                       8.20%          7.98%          8.17%

Asset Quality Data:
  Nonaccrual loans              $       5,073  $      10,219  $      17,479
  Loans past due 90 days or
   more and accruing                        -              -             50
                                -------------  -------------  -------------
  Total nonperforming loans             5,073         10,219         17,529
  Other real estate owned               1,789            451            876
                                -------------  -------------  -------------
  Total nonperforming assets    $       6,862  $      10,670  $      18,405
                                =============  =============  =============


  Nonperforming loans to total
   loans                                 1.20%          2.34%          3.97%
  Nonperforming assets to total
   assets                                1.02%          1.58%          2.65%
  Allowance for loan losses to
   nonperforming loans                 193.02%         97.03%         65.67%
  Allowance for loan losses to
   total gross loans                     2.31%          2.28%          2.61%



                     Stewardship Financial Corporation
                Selected Consolidated Financial Information
              (dollars in thousands, except per share amounts)
                                (unaudited)

                                                     For the three months
                                                             ended
                                                          March 31,
                                                   ------------------------
                                                       2014         2013
                                                   -----------  -----------
Selected Operating Data:
  Interest income                                  $     6,145  $     6,870
  Interest expense                                         839        1,004
                                                   -----------  -----------
    Net interest and dividend income                     5,306        5,866
  Provision for loan losses                                  -        1,600
                                                   -----------  -----------
  Net interest and dividend income after provision
   for loan losses                                       5,306        4,266
  Noninterest income:
    Fees and service charges                               421          456
    Bank owned life insurance                               96           76
    Gain on calls and sales of securities                    -            2
    Gain on sales of mortgage loans                         12          162
    Loss on sales of loans                                (241)           -
    Gain on sales of other real estate owned                 -          126
    Gain on life insurance proceeds                          -          537
    Other                                                  111          115
                                                   -----------  -----------
    Total noninterest income                               399        1,474
  Noninterest expenses:
    Salaries and employee benefits                       2,678        2,696
    Occupancy, net                                         555          517
    Equipment                                              188          184
    Data processing                                        387          328
    FDIC insurance premium                                 211          150
    Other                                                1,075        1,057
                                                   -----------  -----------
    Total noninterest expenses                           5,094        4,932
                                                   -----------  -----------
  Income before income tax expense (benefit)               611          808
  Income tax expense (benefit)                             105          (14)
                                                   -----------  -----------
  Net income                                               506          822
  Dividends on preferred stock and accretion               171          166
                                                   -----------  -----------
  Net income available to common stockholders      $       335  $       656
                                                   ===========  ===========

  Weighted avg. no. of diluted common shares         5,956,887    5,930,981
  Diluted earnings per common share                $      0.06  $      0.11

  Return on average common equity                         3.41%        6.39%

  Return on average assets                                0.31%        0.49%

  Yield on average interest-earning assets                3.97%        4.34%
  Cost of average interest-bearing liabilities            0.71%        0.82%
                                                   -----------  -----------
  Net interest rate spread                                3.26%        3.52%
                                                   ===========  ===========

  Net interest margin                                     3.44%        3.72%


Contact:
Claire M. Chadwick
EVP and Chief Financial Officer
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Internet of @ThingsExpo, 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 Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
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...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
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.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized 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 acr...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
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...