York Traditions Bank Reports 2nd Quarter Earnings

YORK, Pa., July 22, 2015 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) reported net income available to common shareholders of $497,000, or 23 cents per share, for the second quarter ended June 30, 2015, compared to $535,000, or 25 cents per share, for the second quarter ended June 30, 2014. This represents a $38,000, or 7%, decrease. Net income available to common shareholders for the six months ended June 30, 2015 was $1,018,000 or 47 cents per share, compared to $911,000, or 42 cents per share, for the same period last year. This represents a $107,000, or 12%, increase. Book value per common share stood at $13.08 at June 30, 2015.

"We continue to be encouraged with the strengthening residential real estate market and the related low interest rates," stated Michael E. Kochenour, Chairman and Chief Executive Officer. "Gains from the sale of residential mortgages total $1,659,000 so far in 2015, an increase of $781,000 compared to the first six months in 2014. We continue to experience satisfactory growth in loans and deposits, which have increased 6% and 13%, respectively in the last twelve months. This resulted in a $217,000, or 4%, year-to-date increase in net interest income. These increases helped offset higher other expenses related to our new branch office in Hanover, Pennsylvania and several technology initiatives, including the transition of our debit card processing and internet banking to a new provider in April and expanded security and intrusion monitoring systems."

On March 27, 2015, the Bank completed a $5 million aggregate principal amount of subordinated notes due March 27, 2025 with a 6.25% interest rate. The Bank also repaid $5,115,000 of preferred stock on March 31, 2015 as part of the United States Treasury's Small Business Lending Fund (SBLF). The SBLF preferred stock was considered Tier 1 capital and the subordinated notes are Tier 2.  As a result, the Tier 1 capital/ average assets ratio fell from 10.80% at December 31, 2014 to 8.49% at June 30, 2015.  The Bank remains well capitalized as defined by banking regulators.  Following the issuance of the more permanent subordinated notes, the Bank executed a $32 million leverage strategy acquiring high quality investment securities funded by Federal Home Loan Bank borrowings.  As a result, investment securities increased $30,070,000 since December 31, 2014 and the net interest margin fell to 3.27% for the second quarter compared to 3.61% for the same period last year.

Safe Harbor Statement:

Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Because of these risks and uncertainties, our actual future results may be materially different from the results indicated by these forward looking statements.  In addition, our past results of operations do not necessarily indicate our future results.  We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE York Traditions Bank

Related Links

http://www.yorktraditionsbank.com