LifeStore Financial Group, Inc. Reports Quarter End Results - May, 2022
May 24, 2022 - LifeStore Financial Group, Inc. reported net income of $932,245 for the quarter ended March 31, 2022, as compared to $1,604,861 for the quarter ended March 31, 2021. Net income for the nine months ended March 31, 2022 was $3,486,941, as compared to $5,173,588 for the nine months ended March 31, 2021. Basic earnings per share were $3.38 as compared to $5.02 for the same nine-month period in 2021. Assets increased 5.8% to $418.6 million on March 31, 2022, as compared to March 31, 2021.
Bob Washburn, President and CEO noted, “We had another strong quarter with ROA of 1.3% and ROE of 11.6%. Although our income is down over the prior year, we are pleased with our income and asset growth. Net loans increased $19.9 million from June 30, 2021. As noted in prior earning releases, we knew it would be hard to maintain the income recognized from extraordinary mortgage volume and PPP loans. Mortgage volume has returned to normal pre-covid levels, our mortgage income is down 85.6% over the prior year and we expect this trend to continue as mortgage rates increase. 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. I am proud of the work our employees do each day and the spirit they foster to participate in employee-led initiatives such as Jeans' Day when they make a donation to wear jeans and use the money to support the work of a local non-profit."
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.
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LifeStore Financial Group, Inc. and Subsidiaries
(Dollars in thousands)
| As of | ||||
|---|---|---|---|---|
| Year Ended | March 31, 2022 | March 31, 2021 | ||
| Selected Financial Condition Data: | ||||
| Total assets | $ 418,618 | $ 395,802 | ||
| Loans receivable, net1 | 218,084 | 199,510 | ||
| Investment securities2 | 88,417 | 83,031 | ||
| Cash and cash equivalents | 83,823 | 81,527 | ||
| Deposits | 350,837 | 329,239 | ||
| Borrowings | 19,155 | 19,155 | ||
| Equity | 43,777 | 41,992 | ||
| Book value per share | $ 42.48 | $ 40.75 | ||
| Return on assets | 1.27% | 1.87% | ||
| Return on equity | 11.60% | 17.75% | ||
| Efficiency ratio3 | 71.65% | 62.86% | ||
| Three Months Ended | Nine Months Ended | |||
| March 31, 2022 | March 31, 2021 | March 31, 2022 | March 31, 2021 | |
| Selected Operating Data: | ||||
| Interest income and dividends | $ 2,970 | $ 3,163 | $ 9,185 | $ 8,938 |
| Interest expense | 235 | 393 | 762 | 1,505 |
| Net interest income | 2,735 | 2,770 | 8,423 | 7,433 |
| Provision for loan losses | 17 | 10 | 200 | 371 |
| Net interest income after provision for loan losses | 2,718 | 2,760 | 8,223 | 7,062 |
| Insurance commissions | 1,431 | 2,011 | 4,452 | 4,593 |
| Other non-interest income | 725 | 1,334 | 2,807 | 5,877 |
| Non-interest expense | 3,706 | 4,150 | 11,236 | 11,254 |
| Income before income tax expense | 1,168 | 1,955 | 4,246 | 6,278 |
| Income tax expense | 236 | 350 | 759 | 1,104 |
| Net income | $932 | $ 1,605 | $ 3,487 | $ 5,174 |
| Basic earnings per share of common stock | $ 0.90 | $1.56 | $ 3.38 | $ 5.02 |
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.