USA Bank Reports Results for the Year Ended December 31, 2008
18 4월 2009 - 2:00AM
Marketwired
USA Bank (OTCBB: USBK) reported a net loss of $2.7 million ($0.47
per share) for the year ended December 31, 2008, which is a marked
improvement compared to the net loss of $4.3 million ($0.75 per
share) for the year ended December 31, 2007. In November 2008, the
Bank incurred a one-time $554,000 expense related to the buy-out of
its lease at 800 Westchester Avenue in Rye Brook, NY, which will
result in a more than $30,000 monthly reduction in rent expense
over the then-remaining twenty-nine months of the lease term to
commence in February 2009. Nearly all of the staff has been
relocated to the Bank's Main Office facility in Port Chester, NY,
with the balance of the staff being relocated to a prepaid office
site in Greenwich, Connecticut.
The Bank's total assets reached $209.9 million at December 31,
2008, an increase of $40.4 million (23.9%) from $169.5 million at
December 31, 2007. As of December 31, 2008, total gross loans have
increased to $153.3 million, which represents an increase of $46.3
million (43.2%) from $107.0 million at December 31, 2007. As of
December 31, 2008, total deposits have increased to $169.8 million,
an increase of $47.0 million (38.2%), from $122.8 million at
December 31, 2007. Capital ratios continue to be strong, with Tier
One Capital to average assets of 9.65%, Tier One Capital to
risk-weighted assets of 11.51%, and Total Capital to risk-weighted
assets of 12.71%.
The Bank continues to leverage upon its capital base with
quality loan growth, which is reflected in the $1.7 million (41.5%)
increase in net interest income which was $5.8 million for the year
ended December 31, 2008 compared to $4.1 million for the year ended
December 31, 2007. Also benefiting the year 2008 was the
recognition of gains on the sales of securities of $401 thousand as
compared to no such gains being recognized in 2007 and a $700
thousand (7.9%) reduction in non-interest expenses from $8.3
million in 2007 to $7.6 million in 2008, even including the
one-time $554,000 expense related to the buy-out of its lease in
2008. Partially offsetting the favorable variances noted were
increases in the provision for loan losses and reductions in gains
on sales of loans and fee income from the brokering of loans. The
provision for loan losses increased $515 thousand (52.3%) from $985
thousand to $1.5 million in 2008 reflecting increased loan volume
and some deterioration in the loan portfolio. Gains on sales of
loans and fee income from the brokering of loans decreased $452,000
and $124,000, respectively, reflecting both a lessening in demand
for residential mortgages and the Bank's focus on more traditional
commercial lending in 2008.
The $652 thousand (7.9%) reduction in non-interest expense
primarily reflects planned reductions in salaries and employee
benefits and advertising of $836 thousand (23.7%) and $213 thousand
(58.6%), respectively. Commissions were $388 thousand (58.2%) less
than a year earlier, which reflects a significant reduction in
loans originated for sale as the Bank focused on more traditional
commercial banking. Reductions in legal, contract services and
professional fees of $143 thousand, $107 thousand and $77 thousand,
respectively, also contributed to the reduction in non-interest
expenses. Increases in occupancy, FDIC insurance and $108 thousand
of expenses related on one property taken by foreclosure in June
2008 partially offset the favorable variance noted. Occupancy
expense increased $128 thousand (19.0%) from $675 thousand in 2007
to $803,000 in 2008 reflecting increased rent and real estate taxes
related to the new banking office at 601 North Main Street, Port
Chester, NY, as compared to such expenses incurred at the former
facility at 211 Irving Avenue, Port Chester, NY as well as
increased maintenance expense primarily incurred at the
administrative office facility at 800 Westchester Avenue, Rye
Brook, NY.
There was also a $280 thousand unfavorable variance in FDIC
insurance expense, which was $187 thousand in 2007 as compared to
$467 thousand in 2008, reflecting increases in both deposit volume
and insurance rates.
Ronald J. Gentile, President and Chief Executive Officer of the
Bank, stated that "results continue to show improvement." He
further noted, "I am pleased that our total average cost of funds
is continuing to decline to 4.24% for the year 2008 down from 4.80%
for the year 2007. We continually attempt to reduce these costs by
attracting core deposit accounts through our enhanced calling
programs, remote deposit capture program, and compensating balances
from commercial loan customers."
Mr. Gentile also indicated that "due to the poor economic
climate, asset quality is beginning to show signs of deterioration,
with non-performing loans aggregating $9.7 million at December 31,
2008, an approximate $6.1 million increase from the $3.6 million in
nonperforming loans at year end 2007. The increase in
non-performing loans is a concern; however, the net realizable
value of the underlying collateral for these loans at the present
time exceeds the outstanding loan balances, except for one loan
which required a specific reserve of $141,540 as of December 31,
2008."
Mr. Gentile further commented that "the recessionary global
economic climate and current declining local real estate markets
will make the achievement of profitability in the near term a major
challenge." He also commented that "we remain optimistic that the
closer scrutiny being applied to our large existing commercial real
estate and construction loan portfolios should help ameliorate any
serious loan quality problems. However, any collateral
deterioration which may occur if real estate values continue to
erode, which cannot be predicted with any certainty, will obviously
impact future operations, as it will result in the need to allocate
additional provisions for loan loss expenses and possible
charge-offs. Prudent underwriting has mostly shielded our Bank to
date, and current additional safeguards in our underwriting
processes should serve to bolster future credit quality."
"Safe Harbor" Statement under Private Securities Litigation
Reform Act of 1995
Some of the statements contained in this press release may
include forward-looking statements which reflect our current views
with respect to future events and financial performance. Statements
which include the words "expect," "intend," "plan," "believe,"
"project," "anticipate" and similar statements of future or
forward-looking nature identify forward-looking statements for
purposes of the federal securities laws or otherwise. All
forward-looking statements address matters that involve risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual results to differ materially from those
indicated in these statements or that could adversely affect the
holders of our common stock.
These factors include, but are not limited to, those outlined in
the Bank's Annual Report on Form 10-K for the year ended December
31, 2008, which was filed with the Federal Deposit Insurance
Corporation and is publicly available from the FDIC's Accounting
& Securities Disclosure Section, 550 17th Street, N.W.,
Washington, D.C. 20429 and on the Bank's website at
www.usa-bankers.com.
Ronald J. Gentile President & CEO 914-417-3205
USA Bank NY (CE) (USOTC:USBK)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
USA Bank NY (CE) (USOTC:USBK)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024