LifeStore Financial Group Reports Year End Results and Declares Dividend, September 2022
September 30, 2022 - LifeStore Financial Group, Inc. reported net income of $4,883,472 for the year ended June 30, 2022, as compared to $6,698,246 for the year ended June 30, 2021. Basic earnings per share were $4.74 as compared to $6.50 for the same period in 2021. Assets increased 3.5% to $403.7 million at June 30, 2022.
Bob Washburn, President and CEO noted, “Last year our earnings were up 60.5% over the prior year’s record earnings. Exceptional mortgage volume and income from our insurance operations produced non-interest income that was 132% of total net interest income. We knew that would not continue. That said, we continued to have strong earnings; net income of $4.9 million dollars represented our second highest level of income. Assets grew to over $400 million. We saw an increase in net interest margin from 2.87% to 3.12%, had additional reductions in our low levels of problem loans, added funds to our loan loss reserve, and maintained very healthy capital ratios. Return on Assets was solid at 1.20% and Return on Equity (“ROE”) was 10.90%. We have had a ROE above 10% for each of the past 7 years.”
The Board of Directors of LifeStore Financial Group, Inc. declared a dividend of fifty cents ($.50) per common share. The dividend is payable on October 28, 2022 to shareholders of record at the close of business on October 18, 2022. Mr. Washburn noted, “We are excited to pay this annual dividend, which was an increase over the prior years, to our shareholders and want to thank our shareholders for their support. LifeStore is committed to remain a locally owned financial institution serving 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)
|Year Ended||June 30, 2022||June 30, 2021|
|Selected Financial Condition Data:|
|Total assets||$ 403,729||$ 390,245|
|Loans receivable, net1||241,868||198,189|
|Cash and cash equivalents||28,165||81,242|
|Book value per share||$ 42.22||$ 42.34|
|Return on assets||1.20%||1.76%|
|Return on equity||10.90%||16.49%|
|June 30, 2022||June 30, 2021|
|Selected Operating Data:|
|Interest income and dividends||$ 12,718||$ 11,775|
|Net interest income||11,720||9,971|
|Provision for loan losses||217||365|
|Net interest income after provision for loan losses||11,503||9,606|
|Other non-interest income||3,592||7,202|
|Income before income tax expense||6,045||8,114|
|Income tax expense||1,162||1,416|
|Basic earnings per share of common stock||$ 4.74||$ 6.50|
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 euity 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.