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State Investors Bancorp, Inc. Reports Third Quarter Results

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METAIRIE, La., Nov. 13, 2015 (GLOBE NEWSWIRE) -- State Investors Bancorp, Inc. (the "Company") (Nasdaq: SIBC), the holding company of State-Investors Bank, reported net income for the quarter ended September 30, 2015, of $305,000, a decrease of $39,000 as compared to net income of $344,000 reported for the quarter ended September 30, 2014.  Earnings per share, basic and diluted, were $0.13 and $0.12 for the quarter ended September 30, 2015, compared to basic and diluted earnings per share of $0.15 and $0.14, respectively, for the quarter ended September 30, 2014. Net income for the nine months ended September 30, 2015 amounted to $512,000, a decrease of $324,000 from $836,000 in net income reported for the nine months ended September 30, 2014. Earnings per share, basic and diluted, were $0.22 and $0.21 for the nine months ended September 30, 2015, compared to basic and diluted earnings per share of $0.36 and $0.35, respectively, for the nine months ended September 30, 2014.

The decrease in net income for the quarter ended September 30, 2015 resulted primarily from a $230,000 or 7.8%, decrease in total interest income, and a $9,000 or 16.4%, decrease in non-interest income, partially offset by a $183,000, or 10.5%, decrease in non-interest expense, and an $18,000 or 2.7% decrease in total interest expense.  Net interest income decreased $212,000 or 9.3%, due to the $230,000 decrease in total interest income as a result of an overall decrease in interest earning assets.  The decrease in non-interest expense was primarily due to a decrease in salaries and employee benefits expense of $207,000, or 22.4%, as well as decreases of $36,000, or 17.8%, in other non-interest expense, $14,000, or 87.5%, in advertising expense, $9,000, or 39.1%, in office supplies and postage expense, $9,000, or 25.7%, in bank service charge expense, $3,000, or 2.2%, in occupancy expense, $2,000, or 3.2%, in taxes and license expense,  and $2,000, or 1.2%, in data processing expense, partially offset by increases of $92,000, or 98.9%, in professional fees, $6,000, or 10.7%, in security expense, and $1,000, or 2.7%, in deposit insurance premiums.

The decrease in net income for the nine months ended September 30, 2015, compared to the same period in 2014, was primarily due to an increase of $310,000, or 6.0%, in non-interest expense, a decrease in total interest income of $64,000, or 0.8%, a decrease of $10,000, or 6.6%, in total non-interest income, partially offset by a decrease of $33,000, or 5.8%, in the provision for income taxes and a decrease in total interest expense of $27,000, or 1.4%. Net interest income decreased $37,000 or 0.6%, due to the $64,000 decrease in total interest income as a result of an overall decrease in interest earning assets. The increase in non-interest expense was primarily due to an increase in professional fees of $769,000, or 245.7%, data processing expense of $11,000, or 2.6%, as well as increases of $9,000, or 4.6%, in taxes and license expense, $2,000, or 2.7%, in bank service charge expense, and $1,000, or 0.6%, in security expense, partially offset by decreases of $347,000, or 12.6%, in salaries and employee benefits expense, $70,000 or 11.0% in other non-interest expense, $37,000 or 48.7% in office supplies and postage expense,  $20,000 or 57.1% in advertising expense, $6,000 or 1.5% in occupancy expense, and $2,000 or 1.7% in deposit insurance premiums expense.

At September 30, 2015, the Company reported total assets of $248.9 million, a decrease of $23.0 million, or 8.5%, compared to total assets of $271.9 million at December 31, 2014.  The decrease primarily reflects decreases in net loans receivable of $18.2 million, or 8.3%, a decrease in investment securities of $6.8 million, or 19.1%, as well as decreases of $415,000, or 13.6% in Federal Home Loan Bank Stock, $209,000, or 2.6%, in premises and equipment, net, and $92,000, or 61.3% in other real estate owned, partially offset by increases in cash and cash equivalents of $1.9 million, or 35.6%, other assets of $784,000, or 171.6%, and deferred income taxes of $71,000, or 22.5%.  Deposits decreased $9.3 million, or 6.0%, at September 30, 2015 compared to December 31, 2014.  Federal Home Loan Bank advances decreased $15.1 million, or 21.1%, at September 30, 2015 compared to December 31, 2014.  At September 30, 2015, the Company reported $780,000 of non-performing assets, or 0.3%, of total assets at such date, compared to $892,000 of non-performing assets, or 0.3%, of total assets at December 31, 2014. 

Total shareholders' equity increased $836,000, or 2.0%, to $42.9 million at September 30, 2015, from $42.0 million at December 31, 2014, primarily due to $519,000 in stock benefit plan expenses and net income of $512,000, partially offset by a decrease in unrealized gain on securities available for sale of $119,000, net of the deferred tax effect, for the nine months ended September 30, 2015, and the purchase of $76,000 of shares under the Company's stock repurchase program.

The Company repurchased 3,660 shares of its common stock during the nine months ended September 30, 2015, at an average price per share of $20.98, under the share repurchase program announced in November 2013, which covered up to 118,100 shares.  As of September 30, 2015, there were a total of 25,107 shares remaining for repurchase under the program.

State Investors Bancorp, Inc. is the holding company for State-Investors Bank which conducts business from its main office and three full-service branch offices, in the greater New Orleans market area.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may."  We undertake no obligation to update any forward-looking statements.

 
  State Investors Bancorp, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(In thousands)
 
   September 30, 2015    December 31, 2014  
ASSETS(Unaudited)
   
Cash and cash equivalents$   7,068 $  5,212 
Investment securities 28,750  35,545 
Loans receivable, net 200,048  218,206 
Other assets  13,008    12,937 
   
Total assets$ 248,874  $  271,900 
   
LIABILITIES AND SHAREHOLDERS' EQUITY  
   
Deposits$ 146,643 $  155,988 
FHLB advances 56,494  71,595 
Other liabilities   2,868    2,284 
   
Total liabilities  206,005    229,867 
   
Total shareholders' equity  42,869      42,033 
   
Total liabilities and shareholders' equity$ 248,874 $ 271,900 
       



State Investors Bancorp, Inc. and Subsidiary
Condensed Consolidated Income Statements
(In thousands, except per share data)
    
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2015 2014 2015 2014
 (Unaudited)
Total interest income  2,713   2,943    8,472    8,536 
Total interest expense  641      659    1,917    1,944 
Net interest income   2,072     2,284     6,555     6,592 
Provision for loan losses  50      50     150      150 
Net interest income after provision for loan losses   2,022     2,234     6,405     6,442 
        
Non-interest income   46     55     142     152 
Non-interest expense  1,566    1,749    5,498    5,188 
Income before income taxes   502     540     1,049     1,406 
Income taxes  197    196    537    570 
        
NET INCOME  305   344    512   836 
        
Earnings Per Share       
Basic0.13    0.15  0.22    0.36 
Diluted0.12    0.14  0.21    0.35 
        
        
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2015 2014 2015 2014
 (Unaudited)
Selected Operating Ratios(1)       
Average interest rate spread 3.25%  3.38%  3.34%  3.32%
Net interest margin 3.49%  3.59%  3.55%  3.52%
Average interest-earning assets to average interest-bearing liabilities 122.05%  119.85%  120.36%  119.30%
        
Asset Quality Ratios(2):       
Non-performing assets as a percent of total assets 0.31%  0.36%  0.31%  0.36%
Allowance for loan losses as a percent of non-performing loans 198.33%  163.50%  198.33%  163.50%
Allowance for loan losses as a percent of total loans receivable 0.77%  0.63%  0.77%  0.63%
        
Per Share Data:       
Shares outstanding at period end 2,304,359   2,308,119   2,304,359   2,308,119 
Weighted average shares outstanding:       
Basic 2,304,359   2,316,962   2,304,681   2,333,993 
Diluted 2,442,462   2,405,703   2,435,739   2,415,362 
        
Tangible book value at period end  18.60    17.99    18.60   $  17.99 
        
________________________       
(1)  Ratios for the three and nine month periods are annualized.
(2)  Asset quality ratios are end of period ratios.

 

CONTACT: Anthony S. Sciortino, President and Chief Executive Officer (504) 832-9400

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