LifeStore Financial Group, Inc. Reports Quarter End Results - January, 2021
January 29, 2021 - LifeStore Financial Group, Inc. reported net income of $1,820,553 for the quarter ended December 31, 2020, as compared to $888,771 for the quarter ended December 31, 2019, and net income of $3,568,727 for the six months ended December 31, 2020, compared to $2,048,621 for the quarter ended December 31, 2019. Basic earnings per share for the six months ended December 31, 2020, were $3.46 as compared to $1.99 for the same period in 2019. Assets increased 8.6% to $377.2 million on December 31, 2020.
Bob Washburn, President and CEO noted, “We had another outstanding quarter with net income up 74.2% over the prior year. This increase is primarily due to our mortgage loan volume as homebuyers and customers refinancing their mortgages are taking advantage of the historically low-interest rates. During the six months ended December 31, 2020, we originated $73.0 million of loans that were sold in the secondary market while retaining the servicing, compared to $23.0 million during the six months ended December 31, 2019. This increased our sold mortgage income from $460,749 to $2.9 million for the six months ended December 31, 2020.”
“We are pleased with our income and asset growth and commend the dedication of employees to serve and assist our customers in new and innovative ways.” Although we could see a decline in mortgage loan volume as market conditions change, we will continue to benefit from our diverse non-interest income sources. We ended the six-month period with an increase of 64.7% in non-interest income and a healthy level of liquidity and capital.
“We continue to support our customers and communities during these challenging times. We have expanded our charitable giving and will continue to help our customers navigate the PPP loan forgiveness rules and make new PPP loans to eligible borrowers. We are also proud to be voted the Best of the Best Bank in both Ashe and Watauga counties during the quarter. We appreciate the continued support of LifeStore Bank and LifeStore Insurance customers,” commented Washburn.
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 of 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
|December 31, 2020||December 31, 2019|
|(Dollars in thousands)|
|Selected Financial Condition Data:|
|Total assets||$ 377,164||$ 317,274|
|Loans receivable, net1||199,292||189,533|
|Cash and cash equivalents||61,484||33,449|
|Book value per share||$ 38.76||$ 32.26|
|Return on assets||1.98%||1.32%|
|Return on equity||18.87%||12.66%|
|Three Months Ended||Six Months Ended|
|December 31, 2020||December 31, 2019||December 31, 2020||December 31, 2019|
|(Dollars in thousands)|
|Selected Operating Data:|
|Interest income and dividends||$ 2,936||$ 3,101||$ 5,774||$ 6,215|
|Net interest income||2,404||2,290||4,662||4,602|
|Provision for loan losses||147||17||360||62|
|Net interest income after provision for loan losses||2,257||2,273||4,302||4,540|
|Other non-interest income||2,070||934||4,543||1,884|
|Income before income tax expense||2,193||1,012||4,323||2,401|
|Income tax expense||372||123||754||352|
|Net income||$ 1,821||$ 889||$ 3,569||$ 2,049|
|Basic earnings per share of common stock||$ 1.77||$ 0.86||$ 3.46||$ 1.99|
1 Loans receivable, net is comprised of total loans less allowance for loan losses, loans sold, undisbursed loan funds and deferred loan fees.
2 Includes equity securities and securities available for sale.
3 The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income and non-interest income.