LifeStore Financial Group Inc., Reports Third Quarter Earnings, April 2020
April 23, 2020 - LifeStore Financial Group, Inc. reported net income of $1.1 million for the quarter ended March 31, 2020, as compared to $1.3 million for the quarter ended March 31, 2019. Net income for the nine months ended March 31, 2020, totaled $3.2 million compared to $3.1 million during the nine months ended March 31, 2019, or an increase of 2.2%. Basic earnings per share were $3.06 for the nine months ended March 31, 2020, as compared to $3.03 for the same period in 2019. Assets increased 7.6% to $319.7 million at March 31, 2020, from $297.2 million at March 31, 2019.
Bob Washburn, President and CEO noted, “We are pleased with the continued growth in our company. Loans increased 1.1% over last year, investment securities increased 5.8%, cash and cash equivalents increased $14.1 million, or 53.1%, and equity increased 16.2%. We are pleased that we ended the quarter with a healthy level of liquidity and capital. During January, we had a grand reopening of our Jefferson office, dedicating the new conference room to long- time board member Jan Caddell. We also completed a remodel of our West Jefferson insurance office. Both of these long- term commitments will help us to provide better service to our customers.
As the number of COVID-19 cases grew globally, we were prepared to do our part to help slow the spread and preserve the health of our employees and the communities we serve. COVID-19 is a public health crisis with severe economic impacts; however, we are in a strong position to serve our customers and remain safe and sound. For now, our lobbies are closed, and we are serving customers through the drive-thru window. We have seen a significant increase in online and mobile banking and appreciate the support and adaptability of our customers during this time. For other ways you can interact with our Company consult our website, www.golifestore.com.
We participated in the Paycheck Protection Program and have been able to help many businesses receive much needed funding during this time. We are also assisting our customers who may have a difficult time making their payments. Our loan loss allowances as a percentage of assets was at 1.36% as of March 31, 2020. This is well ahead of industry averages. Although our short-term profits will be reduced by this global crisis, we are in a strong position to weather the storm and stand ready to help our customers. We appreciate continued support of LifeStore Bank and LifeStore Insurance customers.”
LifeStore Financial Group, Inc., headquartered in West Jefferson, provides banking, investment, and insurance services. It is a state-chartered bank holding company that owns 100% of the common stock of LifeStore Bank (Member FDIC and Equal Housing Lender) and operates branches in Boone, Jefferson, and West Jefferson. LifeStore Insurance is an independent insurance agency that serves these markets along with Elkin, Lenoir, Newland, and Sparta.
Except for historical information, all the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, without limitation: the effects of future economic conditions; governmental fiscal and monetary policies; legislative and regulatory changes; the risks of changes in interest rates; management of growth; fluctuations in our financial results; reliance on key personnel; our ability to compete effectively; privacy, security and other risks associated with our business.
LifeStore Financial Group, Inc. and Subsidiaries
| As of | ||
| March 31, 2020 | March 31, 2019 | |
| (Dollars in thousands) | ||
| Selected Financial Condition Data: | ||
| Total assets | $319,702 | $297,183 |
| Loans receivable, net1 | $184,025 | $182,106 |
| Investment Securities2 | $65,780 | $62,169 |
| Cash and cash equivalents | $40,701 | $26,578 |
| Deposits | $244,668 | $222,501 |
| Borrowings | $36,231 | $40,451 |
| Equity | $34,251 | $29,486 |
| Book value per share | $33.24 | $28.93 |
| Return on assets | 1.35% | 1.37% |
| Return on equity | 12.80% | 14.59% |
| Efficiency ratio3 | 71.42% | 71.21% |
| Three Months Ended | Nine Months Ended | |||
| March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | |
| Dollars in thousands | ||||
| Selected Operating Data: | ||||
| Interest income and dividends | $3,010 | $2,958 | $9,225 | $8,765 |
| Interest expense | $800 | $745 | $2,412 | $2,072 |
| Net interest income | $2,210 | $2,213 | $6,813 | $6,693 |
| Provision for loan losses | $139 | $18 | $201 | $52 |
| Net interest income after provision for loan losses | $2,071 | $2,195 | $6,612 | $6,641 |
| Insurance commissions | $1,776 | $1,933 | $4,218 | $4,244 |
| Other non-interest income | $1,147 | $750 | $3,031 | $2,343 |
| Non-interest expense | $3,578 | $3,303 | $10,044 | $9,457 |
| Income before income tax expense | $1,416 | $1,575 | $3,817 | $3,771 |
| Income tax expense | $313 | $286 | $665 | $686 |
| Net Income | $1,103 | $1,289 | $3,152 | $3,085 |
| Basic earnings per share of common stock | $1.07 | $1.27 | $3.06 | $3.03 |
1 Loans receivable, net is compromised of total loans less allowance for loan losses, loans sold, undisbursed loan funds and deferred loan fees.
2 Includes other investments, at cost and investment securities.
3 The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income and non-interest income.