LifeStore Financial Group, Inc. Reports Quarter End Results - April, 2021
April 21, 2021 - LifeStore Financial Group, Inc. reported net income of $1,604,861 for the quarter ended March 31, 2021, as compared to $1,103,171 for the quarter ended March 31, 2020, and net income of $5,173,588 for the nine months ended March 31, 2021, compared to $3,151,792 for the nine months ended March 31, 2020. Basic earnings per share for the nine months ended March 31, 2021, were $5.02 as compared to $3.06 for the same period in 2020. Assets increased $48.6 million, or 14.0%, to $395.8 million at March 31, 2021. Cash and cash equivalents increased $36.7 million, or 82% since June 30, 2020. Deposits increased by $59.4 million during the same period.
Bob Washburn, President and CEO noted, “We had another outstanding quarter with net income up 64% over the prior year. This increase is primarily due to our mortgage loan volume as homebuyers and customers refinancing their mortgages took advantage of the historically low interest rates. During the nine months ended March 31, 2021, we originated $91.1 million of loans that were sold in the secondary market while retaining the servicing, compared to $37.5 million during the nine months ended March 31, 2020. This increased our sold mortgage income from $891,355 to $3.4 million for the nine months ended March 31, 2021.
We are pleased with our income and asset growth especially during the challenging times presented by the pandemic. Although we know the increased mortgage loan volume could dissipate as market conditions change, we feel we will continue to benefit from our diverse noninterest-income sources. We ended the nine-month period with an increase of 44.4% 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. During the quarter we extended another 129 PPP loans for just over six million dollars to assist small businesses in our markets. We are also happy to announce the reopening of our downtown West Jefferson lobby on May 3, 2021 and our Jefferson lobby on May 24, 2021. We continue to follow COVID safety protocols for the protection of our employees and customers and 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
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As of | |||
|---|---|---|---|---|
| March 31, 2021 | March 30, 2020 | |||
| (Dollars in thousands) | ||||
| Selected Financial Condition Data: | ||||
| Total assets | $ 395,802 | $ 319,702 | ||
| Loans receivable, net1 | 199,510 | 184,025 | ||
| Investment securities2 | 83,031 | 65,780 | ||
| Cash and cash equivalents | 81,527 | 40,701 | ||
| Deposits | 329,239 | 244,668 | ||
| Borrowings | 19,155 | 36,231 | ||
| Equity | 41,992 | 34,251 | ||
| Book value per share | $ 40.75 | $ 33.24 | ||
| Return on assets | 1.87% | 1.35% | ||
| Return on equity | 17.75% | 12.80% | ||
| Efficiency ratio3 | 62.86% | 71.42% | ||
| Three Months Ended | Nine Months Ended | |||
| March 31, 2021 | March 30, 2020 | March 31, 2021 | March 31, 2020 | |
| (Dollars in thousands) | ||||
| Selected Operating Data: | ||||
| Interest income and dividends | $ 3,163 | $ 3,010 | $ 8,938 | $ 9,225 |
| Interest expense | 393 | 800 | 1,505 | 2,413 |
| Net interest income | 2,770 | 2,210 | 7,433 | 6,812 |
| Provision for loan losses | 10 | 139 | 370 | 201 |
| Net interest income after provision for loan losses | 2,760 | 2,071 | 7,062 | 6,611 |
| Insurance commissions | 2,011 | 1,776 | 4,593 | 4,218 |
| Other non-interest income | 1,334 | 1,147 | 5,877 | 3,031 |
| Non-interest expense | 4,150 | 3,578 | 11,254 | 10,043 |
| Income before income tax expense | 1,955 | 1,416 | 6,278 | 3,817 |
| Income tax expense | 350 | 313 | 1,104 | 665 |
| Net income | $ 1,605 | $ 1,103 | $ 5,174 | $ 3,152 |
| Basic earnings per share of common stock | $ 1.56 | $ 1.07 | $ 5.02 | $ 3.06 |
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.