News Column

Highlands Bancorp Posts Results for the 4th Quarter

January 29, 2014

Highlands Bancorp, Inc. parent company of Highlands State Bank , reported fourth quarter net income of $563,000 in 2013 compared to net income of $1,012,000 for the same period of 2012. In a release on January 24 , the Company noted that fourth quarter net income available to common stockholders was $545,000 or $.30 per diluted share in 2013 compared to $995,000 or $.56 per diluted share for the same period in 2012. Net income for the full year 2013 was $2,270,000 compared to $1,548,000 for the full year 2012. Net income available to common stockholders for the full year 2013 was $2,201,000 or $1.23 per diluted share compared to $1,484,000 or $.83 per diluted share for the year of 2012. The quarterly and annual results for both 2013 and 2012 were positively impacted by partial reversals of the Company's valuation allowance on deferred tax assets which resulted in tax benefits of $333,000 or $.19 per share for the fourth quarter of 2013 and $640,000 or $.36 per share for the fourth quarter of 2012, and $1,310,000 or $.73 per share and $640,000 or $.36 per share for the years of 2013 and 2012, respectively. Net interest income increased by $134,000 to $2,123,000 for the fourth quarter of 2013 compared to net interest income of $1,989,000 for the fourth quarter of 2012. For the year ended December 31, 2013 , net interest income increased to $8,036,000 from $7,237,000 for 2012 as a result of loan portfolio growth and lower cost of funds. The provision for loan losses was $339,000 for the quarter and $727,000 for the year ended December 31, 2013 . In 2012, the Company's provision totaled $373,000 and $1,077,000 for the fourth quarter and year respectively. The decrease in the provision for loan losses reflects improvement in non-performing loans and management's continued assessment of the reserves maintained on non- performing loans. Loans increased $28.8 million in 2013 compared to $29.8 million in 2012. Charge-offs for the year ended December 31, 2013 were $762,000 compared to charge-offs of $564,000 in 2012. Recoveries of previously charged off loans totaled $2,000 in 2013, compared to $34,000 in 2012. The ratio of non-performing loans and performing TDRs to total loans declined to 2.69 percent at year end 2013 from 4.18 percent at year end 2012. Non-interest income was $139,000 for the fourth quarter of 2013, remaining flat with the fourth quarter of 2012. For the year ended December 31, 2013 , non-interest income was $180,000 declining $332,000 from $512,000 for the year ended December 31, 2012 . This decline for 2013 was primarily the result of $282,000 in increased losses on the sales and writedowns of foreclosed property, and a $76,000 loss on fixed assets relating to the sublease of excess space in one of the Company's branch locations. Non-interest expenses increased $311,000 for the fourth quarter of 2013 compared to the same period in 2012, and $765,000 for the year ended December 31, 2013 compared to 2012 primarily due to higher employee salary and benefit costs resulting from additions made to staff and stock- based compensation charges, and from increases in professional fees, data processing, deposit insurance, loan, and advertising costs. Total assets were $223.4 million on December 31, 2013 , an increase of $30.3 million or 15.7 percent from $193.1 million on December 31, 2012 . Deposits increased $29.2 million or 17.5 percent from $166.9 on December 31, 2012 to $196.1 million on December 31, 2013 . Net loans outstanding increased $28.8 million or 17.9 percent to $189.3 million as of December 31, 2013 from $160.5 million the previous year end. ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Professional Services Close - Up


Story Tools