News Column

Bear State Financial, Inc. Announces Second Quarter 2014 Results and Reaffirms Guidance for Remainder of 2014

August 14, 2014

FINANCIAL HIGHLIGHTS:

  • Bear State Financial, Inc. reports second quarter 2014 core earnings of $0.05 per common share and a GAAP loss of $0.13 per common share (which GAAP loss is due primarily to one-time expenses).
  • In its merger with First National Security Company in June 2014, Bear State tripled its size to approximately $1.45 billion in assets at June 30, 2014. Only 17 days of First National Security Company earnings were included in Bear State’s second quarter of 2014.
  • Bear State reaffirms its earlier guidance that it will earn $0.25 to $0.30 per common share, excluding one-time expenses, for the six months ended December 31, 2014.
  • During the twelve months ended June 30, 2014, First Federal Bank experienced loan growth of 18% and Heritage Bank had loan growth of 20%.

    LITTLE ROCK, Ark.--(BUSINESS WIRE)-- Bear State Financial, Inc. (“Bear State”) (NASDAQ: BSF), today reported core earnings of $1 million and core earnings per diluted common share of $0.05 in the second quarter of 2014, compared to a loss of $257,000 in the first quarter of 2014 and core earnings of $84,000 in the second quarter 2013. The Company reaffirms its June 25, 2014 guidance that it expects to report earnings per share of $0.25-0.30 for the six months ending December 31, 2014, excluding one-time adjustments or expenses. Anticipated one-time expenses during the third and fourth quarter include approximately $3 million in termination fees associated with merger integration and core technology systems conversion. Bear State expects to provide guidance for the year ending December 31, 2015 in the fourth quarter of 2014.

    On June 13, 2014, Bear State completed its previously announced merger of First National Security Company (“First National”), the parent company for First National Bank headquartered in Hot Springs, Arkansas and Heritage Bank headquartered in Jonesboro, Arkansas. The Company’s results of operations for the three and six months ended June 30, 2014 includes results of operations for First National for the period from June 14 through June 30, 2014.

    Including certain non-core charges described below, Bear State recorded a GAAP loss of $0.13 per diluted common share during the second quarter of 2014. The second quarter of 2014 included three significant non-recurring items. First, the Company elected to retire certain pension liabilities which resulted in a charge of $2.9 million. This election is expected to result in a substantial reduction of the Company’s annual pension expense. Second, after a comprehensive review of its real estate owned (“REO”) portfolio as of June 2014, the Company incurred charges in the second quarter of $618,000 as a result of its decision to more aggressively market certain REO properties, including reductions in the asking price on certain properties. Third, during the second quarter of 2014, the Company incurred merger-related expenses of approximately $392,000. Collectively, the net effect of these three items was a decrease in earnings of approximately $3.91 million, or approximately $0.18 of diluted earnings per share.

    FINANCIAL CONDITION

    Total assets were $1.45 billion at June 30, 2014, a 182% increase compared to $516 million at June 30, 2013. Total deposits were $1.23 billion at June 30, 2014, a 179% increase compared to $442 million at June 30, 2013. The increase in both assets and deposits was primarily due to the First National merger. Total loans, including those acquired, were $1.01 billion at June 30, 2014, an increase of $667 million, or 193%, compared to the same period in 2013. Total loan growth for the twelve month period ended June 30, 2014 for each of Bear State’s three banks was as follows: First Federal Bank 18%; First National Bank -4%; Heritage Bank 20%.

    Common stockholders’ equity was $143 million at June 30, 2014, a 101% increase from $71 million at June 30, 2013. Tangible common stockholders’ equity was $110 million at June 30, 2014, a 55% increase from $71 million at June 30, 2013. Book value per common share was $4.76 at June 30, 2014, a 33% increase from $3.57 at June 30, 2013. Tangible book value per common share was $3.65 at June 30, 2014, a 2% increase from $3.57 at June 30, 2013. The Company’s ratio of common stockholders’ equity to total assets decreased to 9.87% at June 30, 2014, compared to 13.77% at June 30, 2013. The calculation of the Company’s tangible book value per common share, tangible common stockholders’ equity and the reconciliation to GAAP is included in the schedules accompanying this release.

    RESULTS OF OPERATIONS

    Second quarter 2014 core earnings totaled $1 million or $0.05 per common share, compared to a loss of $257,000 or $0.01 per common share in the prior quarter and to $84,000 or $0.00 per common share in the second quarter of 2013. The core return on average assets measured 0.54%, -0.19%, and 0.06% and core return on average equity measured 4.65%, -1.45%, and 0.47% for these periods respectively.

    GAAP earnings include the impact of non-core charges. The reconciliation of net income and core income, together with related financial measures is included in the schedules accompanying this release. Non-core charges totaled $3.91 million or $0.18 per common share in the most recent quarter. Including these net non-core charges, second quarter 2014 GAAP results were a loss of $2.91 million or -$0.13 per common share. GAAP net income totaled -$277,000 or -$0.01 per common share in the prior quarter and $84,000 or $0.00 per common share in the second quarter 2013. The GAAP loss resulted in a GAAP return on average assets of –1.56% in the most recent quarter, compared to -0.20% and 0.06% in the prior periods respectively.

    Net interest income for the second quarter 2014 was $5.52 million, compared to $3.63 million for the same period in 2013. Net interest income for the six months ended June 30, 2014 was $9.38 million, compared to $7.35 million for the same period in 2013. Interest income for the second quarter of 2014 was $6.57 million compared to $4.46 million for the same period in 2013. Interest income for the six months ended June 30, 2014 was $11.32 million compared to $9.04 million for the same period in 2013. The increase in interest income for the three and six months ended June 30, 2014, compared to the comparable periods in 2013, was primarily related to increases in the average balances of loans receivable and investment securities as a result of the merger with First National, which contributed approximately $1.5 million of net interest income. Interest expense for the second quarter of 2014 was $1.05 million compared to $830,000 for the same period in 2013. Interest expense for the six months ended June 30, 2014 was $1.94 million compared to $1.69 million for the same period in 2013. The increase in interest expense for the three and six months ended June 30, 2014 compared to the comparable period in 2013 was primarily due to an increase in the average balance of deposit accounts as a result of the First National merger.

    The net interest margin measured 3.33% for the second quarter 2014, compared to 2.98% for the same period in 2013. Net interest margin for the six months ended June 30, 2014 was 3.21%, compared to 3.05% for the same period in 2013. The Company’s net interest margin increased primarily as a result of an increase in yields on loans receivable resulting from loans acquired in the First National merger. The average cost of total interest-bearing liabilities decreased to 0.70% for the second quarter 2014, compared to 0.75% for the same period in 2013. Average cost of total interest-bearing liabilities for the six months ended June 30, 2014 was 0.74%, compared to 0.77% for the same period 2013.

    Noninterest income is generated primarily through deposit account fee income, profit on sale of loans, and earnings on life insurance policies. Total noninterest income of $1.83 million for the three months ended June 30, 2014 increased from $1.34 million for the same period in 2013. Total noninterest income of $3.03 million for the six months ended June 30, 2014 increased from $2.59 million for the same period in 2013. The increase in the three and six month comparison periods was primarily due to an increase in the number of mortgage loans sold and the average profit on loans held for sale.

    Total noninterest expense increased $5.14 million or 105% during the second quarter of 2014 compared to the second quarter of 2013. Total noninterest expense increased $5.80 million or 61% during the six months ended June 30, 2014 compared to the same period in 2013. The variances in total noninterest expense were noted previously as being primarily related to the election to retire certain pension liabilities, an increase in loss provision on REO, and expenses related to the First National merger. The Company’s efficiency ratio improved to 83% from 105% in the prior quarter and from 98% in the second quarter of 2013.

    Nonperforming assets declined from $17.96 million at March 31, 2014 to $15.43 million at June 30, 2014, a 14% reduction. Nonperforming assets were 1.07% of total assets at June 30, 2014, compared to 3.16% at March 31, 2014 and 4.98% at June 30, 2013. The allowance for loan losses represented 1.23% of total loans at June 30, 2014, compared to 3.15% at March 31, 2014 and 3.84% at June 30, 2013. The ratio of the allowance for loan losses to nonperforming loans was 135% at June 30, 2014, compared to 114% at March 31, 2014 and 97% at June 30, 2013. Net charge-offs were $316,000 for the quarter ended June 30, 2014 compared to $233,000 for the first quarter 2014 and $2.35 million for the quarter ended June 30, 2013. Annualized net charge-offs as a percentage of average loans for the quarter ended June 30, 2014 were 0.25% compared to 2.68% for the quarter ended June 30, 2013. Provision for loan losses increased from $0 for the second quarter of 2013 to $230,000 for the second quarter of 2014. The provision was $0 for the first quarter of 2014. The increase in provision is attributable to loan growth at each of Bear State’s three banks.

    About Bear State Financial, Inc.

    Bear State Financial is the parent company for First Federal Bank, First National Bank in Hot Springs and Heritage Bank in Jonesboro. Bear State Financial, Inc. stock is traded on the NASDAQ Global Market under the symbol BSF. For more information on Bear State Financial, please visit www.bearstatefinancial.com.

    About First Federal Bank

    First Federal is a community bank serving consumers and businesses with a full range of checking, savings, investment, and loan products and services. The Bank conducts business from 12 full-service branch locations, one drive-thru facility, one stand-alone mortgage production office, and 17 ATMs. For information on First Federal’s products and services, visit the website at www.ffbh.com or contact the Solutions Center toll free at 1.866.242.3324.

    About First National Bank

    First National is a community-focused bank offering full-service commercial and retail banking to Central and Southwest Arkansas as well as Southeast Oklahoma. The Bank conducts business from 23 full-service branch locations and 19 ATMs. Additional information about First National products and services can be found on the website at www.fnbweb.biz.

    About Heritage Bank

    Heritage Bank is a community-focused bank offering full-service commercial and retail banking to Northeast Arkansas. The bank conducts business from 9 full-service branch locations and 8 ATMs. Additional information about Heritage Bank products and services can be found on the website at www.heritagebankark.com.

    Non-GAAP Financial Measures

    This release contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. Earnings per share excluding one-time adjustments or expenses is considered a non-GAAP measure. For the six months ending December 31, 2014, non-GAAP earnings per share excludes acquisition related expenses, restructuring and impairment charges, and certain investment gains or losses, the exact amount of which are not currently determinable, but may be significant. For that reason, Bear State is unable to provide GAAP earnings estimates for the six months ending December 31, 2014 at this time. Bear State believes that non-GAAP earnings per share is useful because that information is an appropriate measure for evaluating Bear State's operating performance. This measure should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to exclude intangible assets due to the importance of these measures to the investment community. A reconciliation of non-GAAP financial measures to GAAP measures is included in the accompanying financial tables.

    Forward-Looking Statements

    This press release contains statements about future events that constitute forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding Bear State’s projected earnings per share for the six months ended December 31, 2014. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward- looking terminology, such as “may,” “will,” “believe,” “expect,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed in Bear State ’s filings with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Bank’s pricing, products and services, and with respect to the loans extended by the Bank and real estate owned, market prices of the property securing loans and the costs of collection and sales. Bear State wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Bear State does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

     
    BEAR STATE FINANCIAL, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA - UNAUDITED
    (In thousands, except share data)
     
          June     March     December     June
    2014201420132013
     

    Balance sheet data, at quarter end:

    Commercial real estate - mortgage loans $ 390,848 $ 202,965 $ 194,675 $ 170,717
    Consumer real estate - mortgage loans 303,413 126,583 129,230 139,012
    Farmland 48,710 2,570 2,663 2,289
    Construction and land development 94,084 26,225 23,891 11,954
    Commercial and industrial loans 142,058 34,240 29,033 15,912
    Consumer and other 32,171 3,950 4,368 4,996
    Total loans 1,011,284 396,533 383,860 344,880
    Allowance for loan losses (12,392 ) (12,478 ) (12,711 ) (13,249 )
    Investment securities 213,557 71,951 70,828 48,220
    Goodwill 25,610 - - -
    Core deposit intangible, net 7,651 - - -
    Total assets 1,448,205 569,313 548,872 515,751
    Noninterest-bearing deposits 146,348 22,025 19,427 21,215
    Total deposits 1,231,414 488,717 469,725 441,893
    Short term borrowings 20,270 - - -
    FHLB advances 34,127 5,912 5,941 996
    Other borrowings 13,750 - - -
    Total stockholders' equity 142,995 71,574 71,187 70,996
     

    Balance sheet data, quarterly averages:

    Total loans $ 505,754 $ 391,024 $ 376,932 $ 351,591
    Investment securities 101,562 71,521 72,440 50,225
    Total earning assets 665,536 509,016 492,769 488,103
    Goodwill 4,497 - - -
    Core deposit intangible, net 1,512 - - -
    Total assets 748,967 556,426 539,926 539,728
    Noninterest-bearing deposits 56,988 20,313 19,052 21,244
    Interest-bearing deposits 587,429 456,275 443,469 441,729
    Total deposits 644,417 476,588 462,521 462,973
    Short term borrowings 2,918 - - -
    FHLB Advances 10,953 5,923 3,559 2,862
    Other borrowings 1,338 - - -
    Total stockholders' equity 86,613 71,813 71,764 71,747
     

    Statement of operation data for the quarter ended:

    Interest income $ 6,568 $ 4,751 $ 4,748 $ 4,457
    Interest expense   1,050         891         878         830  
    Net interest income 5,518 3,860 3,870 3,627
    Provision for loan losses   230         -         -         -  
    Net interest income after provision for loan losses 5,288 3,860 3,870 3,627
    Noninterest income 1,825 1,202 1,413 1,340
    Noninterest expense   10,019         5,339         5,084         4,883  
    Income before taxes (2,906 ) (277 ) 199 84
    Income tax expense   -         -         -         -  
    Net income $ (2,906 )     $ (277 )     $ 199       $ 84  
     
     
    BEAR STATE FINANCIAL, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA - UNAUDITED

    (In thousands, except share data)

     
          June     March     December     June
    2014201420132013
     

    Common stock data at or for the quarter ended:

    Core earnings per share, diluted $ 0.05 $ (0.01 ) $ 0.01 $ 0.00
    Net income per share, diluted $ (0.13 ) $ (0.01 ) $ 0.01 $ 0.00
    Tangible book value per share $ 3.65 $ 3.57 $ 3.55 $ 3.57
    Book value per share $ 4.76 $ 3.57 $ 3.55 $ 3.57
    Diluted shares outstanding 22,020,238 20,041,547 20,894,963 20,879,929
    End of period shares outstanding 30,026,744 20,046,031 20,041,497 19,897,603
     

    Profitability and performance ratios at or for the quarter ended:

    Core return on average assets 0.54 % -0.19 % 0.18 % 0.06 %
    Return on average assets -1.56 % -0.20 % 0.15 % 0.06 %
    Core return on average equity 4.65 % -1.45 % 1.37 % 0.47 %
    Core return on tangible equity 5.00 % -1.45 % 1.37 % 0.47 %
    Return on average equity -13.46 % -1.56 % 1.10 % 0.47 %
    Net interest margin 3.33 % 3.08 % 3.12 % 2.98 %
    Noninterest income to total revenue 24.85 % 23.75 % 26.75 % 26.98 %
    Noninterest income to average assets 0.98 % 0.88 % 1.04 % 1.00 %
    Noninterest expense to average assets 5.37 % 3.89 % 3.74 % 3.63 %
    Efficiency ratio(1) 83.19 % 105.08 % 95.31 % 98.31 %
    Average loans to average deposits 78.48 % 82.05 % 81.50 % 75.94 %
    Securities to total assets 14.75 % 12.64 % 12.90 % 9.35 %
     

    Asset quality ratios at or for the quarter ended:

    Allowance for loan losses to total loans 1.23 % 3.15 % 3.31 % 3.84 %
    Allowance for loan losses to non-performing loans 134.68 % 114.15 % 106.48 % 96.52 %
    Nonperforming loans to total loans 0.91 % 2.76 % 3.11 % 3.98 %
    Nonperforming assets to total assets 1.07 % 3.16 % 3.75 % 4.98 %
    Annualized net charge offs to average total loans 0.25 % 0.24 % 0.39 % 2.68 %
     

    Capital ratios at quarter end:

    Tier 1 capital to average assets 7.54 % 12.45 % 12.90 % 13.57 %
    Total capital to risk-weighted assets 10.85 % 17.97 % 18.68 % 20.82 %
    Tier I capital to risk-weighted assets 10.31 % 16.70 % 17.40 % 19.54 %
     

    (1) Efficiency ratio is a non-GAAP ratio that is calculated by dividing core noninterest expense by the sum of net interest income and noninterest income. Other companies may define and calculate this data differently.

     

     
    BEAR STATE FINANCIAL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - UNAUDITED
    (In thousands, except share data)
             
     
    ASSETS

    June 30,

    2014

    December 31,

    2013

     
    Cash and cash equivalents $ 60,838 $ 23,970
    Federal funds sold 12,375 --
    Interest-bearing time deposits in banks 18,892 24,118
    Investment securities available for sale 213,557 70,828
    Other investment securities, at cost 8,188 457
    Loans receivable, net of allowance of $12,392 and $12,711, respectively 998,892 371,149
    Loans held for sale 8,943 4,205
    Accrued interest receivable 4,645 1,473
    Real estate owned - net 6,226 8,627
    Office properties and equipment - net 49,695 18,769
    Cash surrender value of life insurance 28,655 23,811
    Goodwill 25,610 --
    Intangible assets, net 7,651 --
    Prepaid expenses and other assets   4,038     1,465  
     
    TOTAL $ 1,448,205   $ 548,872  
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY
     
    LIABILITIES:
    Deposits
    Noninterest bearing $ 146,348 $ 19,427
    Interest bearing   1,085,066     450,298  
    1,231,414 469,725
    Short term borrowings 20,270 --
    Other borrowings 47,877 5,941
    Other liabilities   5,649     2,019  
     
    Total liabilities   1,305,210     477,685  
     
    STOCKHOLDERS’ EQUITY:
    Preferred stock, $0.01 par value—5,000,000 shares authorized; none issued at June 30, 2014 and December 31, 2013 -- --
    Common stock, $0.01 par value—100,000,000 and 30,000,000 shares authorized at June 30, 2014 and December 31, 2013, respectively; 30,026,744 and 20,041,497 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively 300 200
    Additional paid-in capital 166,336 92,740
    Accumulated other comprehensive income (loss) 828 (467 )
    Accumulated deficit   (24,469 )   (21,286 )
     
    Total stockholders’ equity   142,995     71,187  
     
    TOTAL $ 1,448,205   $ 548,872  
     
     
    BEAR STATE FINANCIAL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
    (In thousands, except earnings per share)
     
          Three Months Ended     Six Months Ended
    June 30,     June 30,June 30,     June 30,
    2014201320142013
    INTEREST INCOME:
    Loans receivable $ 5,852 $ 3,970 $ 9,986 $ 8,051
    Investment securities:
    Taxable 310 56 536 110
    Nontaxable 295 293 581 606
    Other   111     138   216     271  
    Total interest income   6,568     4,457   11,319     9,038  
     
    INTEREST EXPENSE:
    Deposits 984 817 1,853 1,663
    Other borrowings   66     13   88     26  
     
    Total interest expense   1,050     830   1,941     1,689  
     
    NET INTEREST INCOME 5,518 3,627 9,378 7,349
     
    PROVISION FOR LOAN LOSSES   230     --   230     --  
     
    NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   5,288     3,627   9,148     7,349  
     
    NONINTEREST INCOME:
    Net gain on sale of investment securities -- -- -- --
    Deposit fee income 867 802 1,492 1,572
    Earnings on life insurance policies 209 200 409 398
    Gain on sale of loans 652 263 956 459
    Other   97     75   170     164  
     
    Total noninterest income   1,825     1,340   3,027     2,593  
     
    NONINTEREST EXPENSES:
    Salaries and employee benefits 6,540 2,804 9,602 5,482
    Net occupancy expense 704 608 1,288 1,226
    Real estate owned, net 591 45 808 (51 )
    FDIC insurance 125 170 245 341
    Data processing 563 397 982 733
    Professional fees 235 151 430 410
    Advertising and public relations 198 74 301 144
    Postage and supplies 119 108 210 217
    Other   944     526   1,492     1,053  
     
    Total noninterest expenses   10,019     4,883   15,358     9,555  
     
    INCOME (LOSS) BEFORE INCOME TAXES (2,906 ) 84 (3,183 ) 387
     
    INCOME TAX   --     --   --     --  
     
    NET INCOME (LOSS) $ (2,906 ) $ 84 $ (3,183 ) $ 387  
     
    Basic earnings (loss) per common share $ (0.13 ) $ 0.00 $ (0.15 ) $ 0.02  
     
    Diluted earnings (loss) per common share $ (0.13 ) $ 0.00 $ (0.15 ) $ 0.02  
     
     
    BEAR STATE FINANCIAL, INC.
    AVERAGE CONSOLIDATED BALANCE SHEETS and NET INTEREST ANALYSIS - UNAUDITED
    (In thousands)
         
    Three Months Ended June 30,
    2014     2013

    Average

    Balance

        Interest    

    Average

    Yield/

    Cost

    Average

    Balance

        Interest    

    Average

    Yield/

    Cost

    (Dollars in Thousands)
    Interest-earning assets:
    Loans receivable(1) $ 505,754 $ 5,852 4.64 % $ 351,591 $ 3,970 4.54 %

    Investment securities(2)

    101,562 605 2.39 50,225 349 2.80

    Other interest-earning assets

      58,220   111 0.76   86,287   138 0.64

    Total interest-earning assets

    665,536 6,568 3.96 488,103 4,457 3.67

    Noninterest-earning assets

      83,431   51,625
    Total assets $ 748,967 $ 539,728

    Interest-bearing liabilities:

    Deposits $ 587,429 984 0.67 $ 439,927 817 0.75

    Other borrowings

      15,209   66 1.74   2,862   13 1.77

    Total interest-bearing liabilities

    602,638 1,050 0.70 442,789 830 0.75

    Noninterest-bearing deposits

    56,988 23,046

    Noninterest-bearing liabilities

      2,728   2,146
    Total liabilities 662,354 467,981
    Stockholders' equity   86,613   71,747

    Total liabilities and stockholders' equity

    $ 748,967 $ 539,728
       
    Net interest income $ 5,518 $ 3,627
    Net earning assets $ 62,898 $ 45,314
    Interest rate spread 3.26 % 2.92 %
    Net interest margin 3.33 % 2.98 %

    Ratio of interest-earning assets to Interest-bearing liabilities

    110.44 % 110.23 %

    (1)  Includes nonaccrual loans.

    (2)  Includes FHLB of Dallas and Federal Reserve Bank stock.

     
    Six Months Ended June 30,
    20142013

    Average

    Balance

    Interest

    Average

    Yield/

    Cost

    Average

    Balance

    Interest

    Average

    Yield/

    Cost

    (Dollars in Thousands)
    Interest-earning assets:
    Loans receivable(1) $ 454,757 $ 9,986 4.43 % $ 354,072 $ 8,051 4.59 %

    Investment securities(2)

    86,625 1,117 2.60 51,311 716 2.81

    Other interest-earning assets

      47,340   216 0.92   79,896   271 0.68

    Total interest-earning assets

    588,722 11,319 3.88 485,279 9,038 3.76

    Noninterest-earning assets

      64,461   51,983
    Total assets $ 653,183 $ 537,262
    Interest-bearing liabilities:
    Deposits $ 522,214 1,853 0.72 $ 438,243 1,663 0.77
    Other borrowings   10,592   88 1.68   2,966   26 1.77

    Total interest-bearing liabilities

    532,806 1,941 0.74 441,209 1,689 0.77

    Noninterest-bearing deposits

    38,752 22,581
    Noninterest-bearing liabilities   2,417   2,467
    Total liabilities 573,975 466,257
    Stockholders' equity   79,208   71,005

    Total liabilities and stockholders' equity

    $ 653,183 $ 537,262
       
    Net interest income $ 9,378 $ 7,349
    Net earning assets $ 55,916 $ 44,070
    Interest rate spread 3.14 % 2.99 %
    Net interest margin 3.21 % 3.05 %

    Ratio of interest-earning assets to Interest-bearing liabilities

    110.49 % 109.99 %

    (1)  Includes nonaccrual loans. 

    (2)  Includes FHLB of Dallas and Federal Reserve Bank stock.

     
     

    BEAR STATE FINANCIAL, INC.

    ASSET QUALITY ANALYSIS - UNAUDITED

    (In thousands)

     
          June 30, 2014     December 31, 2013    

    Net (2)

       

    % Total

    Assets

    Net (2)

       

    % Total

    Assets

    Increase

    (Decrease)

    Nonaccrual Loans:
    One- to four-family residential $ 4,273 0.30 % $ 4,258 0.77 % $ 15
    Nonfarm nonresidential 3,209 0.23 % 4,057 0.75 % (848 )
    Farmland 752 0.05 % 782 0.15 % (30 )
    Construction and land development 622 0.04 % 2,467 0.44 % (1,845 )
    Commercial 321 0.02 % 350 0.06 % (29 )
    Consumer   24 --     24 0.01 %   --  
     
    Total nonaccrual loans 9,201 0.64 % 11,938 2.18 % (2,737 )
     
    Accruing loans 90 days or more past due -- -- -- -- --
     
    Real estate owned   6,226 0.43 %   8,627 1.57 %   (2,401 )
     
    Total nonperforming assets 15,427 1.07 % 20,565 3.75 % (5,138 )
    Performing restructured loans   574 0.03 %   494 0.09 %   80  
     
    Total nonperforming assets and performing restructured loans (1) $ 16,001 1.10 % $ 21,059 3.84 % $ (5,058 )
     

    (1) The table does not include substandard loans which were judged not to be impaired totaling $13.6 million at June 30, 2014 and $2.9 million at December 31, 2013 or acquired ASC 310-30 purchased credit impaired loans which are considered performing at June 30, 2014.

    (2) Loan balances are presented net of undisbursed loan funds, partial charge-offs and interest payments recorded as reductions in principal balances for financial reporting purposes.

     
     
    BEAR STATE FINANCIAL, INC.
    CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY – UNAUDITED
    (In thousands)
          For the Quarter ending

    6/30/2014

        3/31/2014     12/31/2013   6/30/2013
    Net income available to common stockholders $ (2,906 ) $ (277 ) $ 199   $ 84  
    Average common stockholders' equity 86,613 71,813 71,764 71,747
    Less Average Intangible Assets:
    Goodwill (4,497 ) - - -

    Core Deposit Intangible, net of accumulated amortization

      (1,512 )   -     -   -  
     
    Average tangible common stockholders' equity $ 80,604   $ 71,813   $ 71,764   $ 71,747  
     
    Return on average tangible common stockholders' equity   -14.46 %   -1.56 %   1.10 % 0.47 %
     

     

    BEAR STATE FINANCIAL, INC.
    CALCULATION OF TANGIBLE BOOK VALUE per COMMON SHARE - UNAUDITED
    (In thousands)
     
    6/30/20143/31/201412/31/2013   6/30/2013
    Total common stockholder's equity 142,995 71,574 71,187 70,996
    Less intangible assets:
    Goodwill (25,610 ) - - -

    Core Deposit Intangible, net of accumulated amortization

      (7,651 )   -   -   -  
    Total intangibles   (33,261 )   -   -   -  
    Total tangible common stockholder's equity $ 109,734   $ 71,574   $ 71,187 $ 70,996  
     
    Common Shares Outstanding   30,027     20,046   20,041   19,898  
     
    Tangible book value per common share $ 3.65   $ 3.57   $ 3.55 $ 3.57  
     
     
    BEAR STATE FINANCIAL, INC.
    RECONCILIATION OF NON-GAAP SELECTED CONSOLIDATED FINANCIAL DATA - UNAUDITED
    (In thousands, except share data)
     
          For the Quarter Ending
    June 30,     March 31,     December 31,     June 30,
    2014201420132013
    Net income (loss) $ (2,906 ) $ (277 ) $ 199 $ 84
    Adj: Merger and acquisition expenses 392 20 49
    Adj: Pension plan payment 2,900
    Adj: Real estate owned provision (one-time) 618 - - -
    Adj: Income taxes           -         -         -         -  
    Total core income     (A)   $ 1,004       $ (257 )     $ 248       $ 84  
     
    Total revenue $ 7,343 $ 5,062 $ 5,283 $ 4,967
    Adj: Gain on sale of securities, net           -         -         -         -  
    Total core revenue         $ 7,343       $ 5,062       $ 5,283       $ 4,967  
     
    Total non-interest expense $ 10,019 $ 5,339 $ 5,084 $ 4,883
    Less: Merger and acquisition expenses (392 ) (20 ) (49 ) -
    Less: Pension plan payment (2,900 ) - - -
    Less: Real estate owned provision (one time)           (618 )       -         -         -  
    Core noninterest expense         $ 6,109       $ 5,319       $ 5,035       $ 4,883  
     
    Total average assets (B) $ 748,967 $ 556,426 $ 539,926 $ 539,728
    Total average stockholders' equity (C) 86,613 71,813 71,764 71,747
    Total average tangible stockholders' equity (D) 80,604 71,813 71,764 71,747
    Total tangible stockholders' equity, period end (E) 109,734 71,574 71,187 70,996
     
    Total common shares outstanding, period-end (F) 30,026,744 20,046,031 20,041,497 19,897,603
    Average diluted shares outstanding (G) 22,020,238 20,041,547 20,894,963 20,879,929
     
    Core earnings per share, diluted (A/G) $ 0.05 $ (0.01 ) $ 0.01 $ 0.00
    Tangible book value per share, period-end (E/F) $ 3.65 $ 3.57 $ 3.55 $ 3.57
     
    Core return on average assets (A/B) 0.54 % -0.19 % 0.18 % 0.06 %
    Core return on average equity (A/C) 4.65 % -1.45 % 1.37 % 0.47 %
    Core return on tangible equity (A/D) 5.00 % -1.45 % 1.37 % 0.47 %
    Efficiency ratio(1) 83.19 % 105.08 % 95.31 % 98.31 %
     

    (1) Efficiency ratio is a non-GAAP ratio that is calculated by dividing core noninterest expense by the sum of net interest income and noninterest income. Other companies may define and calculate this data differently.

     

     

     






    Bear State Financial, Inc.

    Richard N. Massey, 501-975-6011

    Chairman

    or

    Matt Machen, 501-975-6011

    CFO


    Source: Bear State Financial, Inc.


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



    Source: Business Wire


    Story Tools






    HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters