County Bank Corp (OTC: CBNC) Announces 1st Quarter Results for 2018
County Bank Corp (OTC Market Place: CBNC) (“the Company”), the holding company for Lakestone Bank & Trust, announced unaudited results for the quarter ended March 31, 2018.
The Company reported net income of $1,544,000 or $0.88 per common share for first quarter of 2018 compared to net income of $1,339,000 or $0.77 per share for the same period of 2017. The growth in earnings was a result of an increase in total revenue and lower federal taxes.
Chairman and Chief Executive Officer, Bruce J. Cady, issued the results and commented: “This was a very successful quarter for the Company. We generated valuable earning asset growth, producing an increase in interest income. In addition, we continue to drive revenue from other bank services to enhance our performance. We reported earnings per share of $0.88, an ROA of 1.03% and ROE of 10.76%. Book value expanded during the quarter to $32.84 per share and the stock price continues to see positive growth. We paid a dividend of $0.33 per share in March, our 20th consecutive payment. Overall, this was a strong start to 2018 and we will continue to look for opportunities to deliver superior results for our shareholders.”
Total net interest income for the first quarter of 2018 increased 6.7% to $5.205 million, compared to $4.877 million for the first quarter of 2017. The increase in net interest income was the result of continued growth in the loan portfolio. Net interest margin for the quarter was 3.76% compared to 3.85% for the most recent linked quarter and 3.71% for the first quarter of 2017. The modest compression in margin for the quarter was the result of a change in the composition of the earning asset mix.
The Company generated non-interest income of $1.445 million during the first three months of 2018, compared to $1.536 million for the same period in 2017. The decrease in revenue is primarily the result of one-time gains associated with the sale of other assets recognized in the first quarter of 2017. Excluding these items, total non-interest income increased 5.6% year over year. Other bank related services including, deposit charges, Trust, interchange income and mortgage related activities all experienced an increase for the period.
Total non-interest expense for the first quarter of 2018 was $4.838 million, an increase of $256,000 relative to the same period of 2017. The major contributors were occupancy expenses, data processing fees and advertising costs. The increase was a result of investments made in the infrastructure of the organization to support the long term strategic initiatives and provide an enhanced platform for future growth.
Total assets as of March 31, 2018 were $614.8 million, an increase of $12.8 million from December 31, 2017. Total portfolio loans reached $344.7 million at the end of the quarter, an increase of $29.2 million or 9.3% from March 31, 2017. The growth was the result of targeted advertising efforts, an expanded market presence and proactive business development activity. Total deposits were $553.9 million as of March 31, 2018, an increase of $18.9 million from the same period of 2017. The growth was used to fund the expansion of the investment and loan portfolios. Book value per share as of March 31, 2018 was $32.84 and total Shareholders’ Equity was $57.4 million.
County Bank Corp is the holding company for Lakestone Bank & Trust, a full-service community bank serving Lapeer, Macomb and St. Clair counties. The primary Market Maker is Boenning & Scattergood.
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; changes in the national and local economy; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and other factors. The Company assumes no responsibility to update forward-looking statements.
(Unaudited Consolidated Financial Statements Follow)