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Oneida Financial Posts 2013 4th Quarter and Record Full Year Operating Results

February 5, 2014

Oneida Financial Corp. , the parent company of The Oneida Savings Bank , has announced fourth quarter operating results. In a release on January 31 , the Company noted that net income for the three months ended December 31, 2013 was $1.6 million , or $0.23 diluted earnings per share, compared to $1.8 million , or $0.26 diluted earnings per share, for the three months ended December 31, 2012 . The decrease in net income during the respective fourth quarter periods is primarily the result of an increase in non- interest expense, a decrease in net investment gains and an increase in income tax provision; partially offset by an increase in net interest income, an increase in non-interest income, and an increase in the fair value of equity investments. Net income for the full year ended December 31, 2013 was $6.1 million or $0.88 diluted earnings per share, as compared with $5.8 million or $0.84 diluted earnings per share for the same period in 2012. The increase in net income during the full year ended December 31, 2013 as compared with full year 2012 results was primarily due to an increase in net interest income, an increase in non-interest income, an increase in the fair value of equity investments, the absence of any impairment charges during the current year and a decrease in provision for loan losses; partially offset by an increase in non-interest expense supporting the continued investment in and growth of the Company's insurance and other non-banking subsidiaries, a decrease in net investment gains and an increase in income taxes. Key balance sheet changes at December 31, 2013 -The Bank is categorized as well capitalized at December 31, 2013 with a Tier 1 leverage ratio of 9.03 percent and a total risk-based capital ratio of 15.97 percent. The Company's average equity ratio as a percent of average assets was 12.04 percent at December 31, 2013 compared to 13.45 percent at December 31, 2012 . -Deposit accounts were $637.3 million at December 31, 2013 , an increase of $69.0 million from December 31, 2012 . The increase in total deposits from December 31, 2012 , represents an increase of $29.4 million in retail deposits and further supported by an increase of $39.6 million in municipal deposits over the past twelve months. The increase in deposits was invested in securities and loans receivable. -Net loans receivable totaled $335.7 million at December 31, 2013 compared to $311.7 million at December 31, 2012 . The increase in net loan balances over the past twelve months reflect the Company's continued loan origination efforts partially offset by loan sales activity. The Company has sold $12.4 million in fixed rate residential loans, which represents the majority of the Company's fixed-rate residential loan origination volume with terms exceeding 15 years, during the trailing twelve months ended December 31, 2013 . -Investment and mortgage-backed securities totaled $268.0 million at December 31, 2013 , an increase of $10.6 million from December 31, 2012 . The increase in investment and mortgage-backed securities is primarily the result of the increase in pledged collateral needed to support the increase in municipal deposit activities. -The Company continued to repay maturing Federal Home Loan Bank advances with proceeds from investment securities maturities, calls and other cash flows. Borrowings outstanding were $1.0 million at December 31, 2013 ; a decrease of $5.0 million from December 31, 2012 . -Total equity at December 31, 2013 was $90.7 million , a decrease of $2.3 million from December 31, 2012 . The change in total equity is the result of the contribution of net earnings, partially offset by the declaration of cash dividends during the trailing twelve month period combined with valuation adjustments made for the Company's available for sale investment and mortgage-backed securities given the recent increase in market interest rates. Key operating items for fourth quarter 2013 include: -Net interest income was $5.1 million for the three months ended December 31, 2013 compared to $4.9 million for the three months ended December 31, 2012 . Net interest margin was 3.14 percent for the fourth quarter of 2013 compared to 3.36 percent for the fourth quarter of 2012. -Non-interest income was $7.6 million for the three months ended December 31, 2013 compared to $7.1 million for the three months ended December 31, 2012 . This increase is primarily the result of an increase in revenue derived from the Company's insurance and other non-banking operations of $518,000 to $6.3 million in the fourth quarter of 2013 compared to $5.8 million in the comparable 2012 period. -An increase in the fair value recognized on trading (equity) securities of $684,000 was recognized for the three months ended December 31, 2013 compared to an increase in fair value of $89,000 for the three months ended December 31, 2012 . -Noninterest expense increased to $10.7 million for the three months ended December 31, 2013 compared to $9.7 million for the comparable period in 2012. This increase was primarily the result of an increase in compensation and employee benefits expense combined with the financial impact of the previously announced acquisition of a Schenectady, New York based insurance agency which was merged into the Company's insurance subsidiary effective December 31, 2012 . Michael R. Kallet , President and Chief Executive Officer of Oneida Financial Corp. , said, " Oneida Financial Corp. continues to demonstrate a consistent record of success in Central New York and beyond through the execution of a diversified banking, insurance and financial services strategy. The Company is reporting record net income for 2013, demonstrating an earnings increase of 5.7 percent, while the Company continues to invest and build its businesses for future success." Kallet continued, " Oneida Savings Bank is also proud to report a record level of total assets, loans receivable and total deposits." Kallet stated, "Our insurance and financial services subsidiaries continue to post impressive results with revenue growth of 12.4 percent." Kallet concluded, " Oneida Financial Corp. has continued its strong record of cash dividend payments to shareholders while we define the distinction between Wall Street banking and Main Street banking. This distinction will be further reinforced next year with our investment advisory, trust and pension services units operating cohesively as Oneida Wealth. The result is a strong and vital financial institution, fully prepared to meet the economic challenges of the future." More information: www.oneidafinancial.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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