LifeStore Financial Group, Inc. Reports Quarter End Results: January 2022
January 28, 2022 - LifeStore Financial Group, Inc. reported net income of $1,287,712 for the quarter ended December 31, 2021, as compared to $1,820,553 for the quarter ended December 31, 2020. Net income for the six months ended December 31, 2021 was $2,554,696, as compared to $3,568,727 for the six months ended December 31, 2020. Basic earnings per share were $2.48 as compared to $3.46 for the same six-month period in 2020. Assets increased 4.3% to $407.0 million at December 31, 2021.
Bob Washburn, President and CEO noted, “We had another strong quarter with ROA of 1.3% and ROE of 11.5%. We are pleased with our income and asset growth, although our income is down over the prior year. Net loans increased $12.8 million from June 30, 2021. We knew the income recognized the prior year from extraordinary mortgage volume and PPP loans would be hard to maintain during this current year. Mortgage volume has returned to normal pre-covid levels and we continue to benefit from our diverse noninterest-income sources. We ended the quarter with a healthy level of liquidity and capital."
Bob Washburn also noted, "We continue to support our customers and communities during these challenging times. We couldn't be prouder of our staff and the level of customer service they provide every day. In Ashe County, both our Bank and Mortgage group was once again recognized with a Best of the Best award by the Ashe Post and Times."
LifeStore Bank wants to help more High Country residents improve their financial future with its Progress account. This account is certified by the National BankOn movement whose goal is to ensure everyone has access to safe and affordable financial products and services. Progress is a checkless account with no overdraft charges and is designed to help those outside of the banking system build a solid foundation. LifeStore is committed to remain a locally-owned financial institution that serves our communities.”
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
(Dollars in thousands)
| As of | ||||
|---|---|---|---|---|
| Year Ended | December 31, 2021 | December 31, 2020 | ||
| Selected Financial Condition Data: | ||||
| Total assets | $ 407,020 | $ 377,164 | ||
| Loans receivable, net1 | 210,990 | 199,292 | ||
| Investment securities2 | 80,381 | 85,174 | ||
| Cash and cash equivalents | 86,742 | 61,484 | ||
| Deposits | 337,115 | 299,306 | ||
| Borrowings | 19,155 | 32,922 | ||
| Equity | 45,263 | 39,945 | ||
| Book value per share | $ 43.92 | $ 38.76 | ||
| Return on assets | 1.28% | 1.98% | ||
| Return on equity | 11.51% | 18.87% | ||
| Efficiency ratio3 | 69.78% | 60.27% | ||
| Three Months Ended | Six Months Ended | |||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |
| Selected Operating Data: | ||||
| Interest income and dividends | $ 3,087 | $ 2,936 | $ 6,215 | $ 5,774 |
| Interest expense | 254 | 532 | 527 | 1,112 |
| Net interest income | 2,833 | 2,404 | 5,688 | 4,662 |
| Provision for loan losses | 166 | 147 | 183 | 360 |
| Net interest income after provision for loan losses | 2,667 | 2,257 | 5,505 | 4,302 |
| Insurance commissions | 1,635 | 1,194 | 3,022 | 2,582 |
| Other non-interest income | 1,031 | 2,070 | 2,081 | 4,543 |
| Non-interest expense | 3,802 | 3,328 | 7,530 | 7,104 |
| Income before income tax expense | 1,531 | 2,193 | 3,078 | 4,323 |
| Income tax expense | 243 | 372 | 523 | 754 |
| Net income | $1,288 | $ 1,821 | $ 2,555 | $ 3,569 |
| Basic earnings per share of common stock | $ 1.25 | $1.77 | $ 2.48 | $ 3.46 |
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.