Athens Bancshares Corporation Restates 2016 Financial Results

ATHENS, Tenn., Feb. 9, 2017 /PRNewswire/ -- Athens Bancshares Corporation (OTC QX: AFCB) (the "Company"), the holding company for Athens Federal Community Bank, National Association (the "Bank"), on February 7, 2017 announced its results of operations for the three months and year ended December 31, 2016.  The Company hereby restates the referenced release to reflect revised accounting treatment of the sale of surplus property and underlying real estate sold during the fourth quarter of 2016.  The Bank financed the sale of the property and treated the gain on this sale of $441,000 as non-interest income in the three months ending December 31, 2016.  Further review of ASC Topic, 360-20-40, suggests the gain on the referenced sale of real estate is more properly classified as a deferred gain due to the borrower providing additional real estate as collateral, rather than a qualifying cash down payment investment required for immediate gain recognition. 

In addition, the Company previously delayed recognition of $136,000 in previously deferred gains on sales of other real estate which have been determined to be more appropriately recognized as non-interest income during the three months ending December 31, 2016. 

The combined adjustment of the above referenced accounting treatments reduces income before taxes by $305,000, which reduces net after tax income for the three months and year ended December 31, 2016 by $188,000 to $797,000 and $3.2 million, respectively.

Following is the fully revised release:

The Company's net income for the three months ended December 31, 2016 was $797,000 or $0.45 per diluted share, compared to net income of $685,000 or $0.38 per diluted share for the same period in 2015. 

For the year ended December 31, 2016 net income was $3.2 million or $1.79 per diluted share, compared to net income of $2.9 million or $1.61 per diluted share for the year ended December 31, 2015.

The Bank completed its acquisition of four branches from Atlantic Capital Bank, N.A. on April 1, 2016.  In addition to the increases from assumed customer deposits of approximately $89.0 million and the $13.9 million in loans and other assets, one-time and continuing non-interest expenses increased.   The Bank's existing Sweetwater, Tennessee branch was combined with the acquired Sweetwater, Tennessee branch in late June, 2016.  While we anticipate this combination will reduce operating expenses over time, it will take some time for full utilization of the acquired assets and liabilities from the acquisition.

Total assets increased $116.1 million to $439.9 million at December 31, 2016, compared to $323.8 million at December 31, 2015.  The Bank was considered well-capitalized under applicable federal regulatory capital guidelines at December 31, 2016.

This release may contain forward-looking statements within the meaning of the federal securities laws.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects", "believes", "anticipates", "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements.  Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf.  Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

SOURCE Athens Bancshares Corporation