Our New West Branch Loan Office PRSRT STD - Quarterly Statement (2016 - 1st... · Jeff Loomis ....
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April 29, 2016 Dear Shareholders and Friends, Ladies and Gentlemen, We are pleased to present to you selected financial highlights of Huron Community Financial Services, Inc. (HCFSI) and Huron Community Bank (HCB) for the period ending March 31, 2016. HCFSI (In Thousands) Net Income for our holding company through March 31, 2016 was $321 as compared to $288 for the same quarter last year. Return on Average Equity was 5.43% and Return on Average Assets was 0.68% compared to 4.96% and 0.58% respectively at March 31, 2015. Book value of your common stock is $42.42 and Earnings per Share are $.58. At March 31, 2016 the share-holder equity is $23,646. HCB (In Thousands) Net Income through the end of the first quarter 2016 was $340.3 compared to $290.6 for the same period last year. March 31, 2016 Return on Average Equity was 6.11% with Return on Average Assets of 0.72% com- pared to 5.27% and 0.59% respectively at March 31, 2015. Total assets at the end of the quarter were $188.5 versus $192.5 in 2015. Total loans ended the first quarter at $136.6 while total deposits were $159.2. Year to Date Financial Performance The first quarter shows a solid start for our bank. First quarter results for net income were ahead of both budg- et forecast and actual year over year. The improved performance is a result of the continued growth we are experiencing in our loan portfolio, an increase in other income, and continued improvement in our Net Inter- est Margin. YTD 2016 margin was 3.65% compared to 3.45% at the end of the first quarter 2015. Total out- standing loans at the end of March 2016 were $136.6 million compared to $132.5 million at March 2015 month end. The first quarter also showed a strong improvement in Asset Quality ratios. An example was a 3.50% decrease in the Classified Assets/Tier 1 +ALLL ratio from year end 2015. Mortgage volume remains stable in the region with a majority of the activity coming from home purchases. With rates still at historic lows we are also seeing continued refinance and consolidation activity. The homes being purchased are a mix of primary residences and second homes. We are seeing improved financial results from all sectors of the business community. Retailers are seeing more consumer traffic and our industrial base continues to experience higher sales and profits. On a national level interest rates remain low and few econo- mists are predicting any increase in those rates over the balance of the year. Cash Dividend Declared Your Board of Directors declared a cash dividend of $0.27 per share to shareholders of record at April 5, 2016. This represents the 89rd consecutive quarter in which a cash dividend has been paid to our shareholders. The dividend was paid on April 15, 2016. If you are not already enrolled in our dividend reinvestment program I would encourage you to do so. It is a great way to increase investment in the bank! As always I encourage you to reach out to me if you should have any questions or concerns. We appreciate your continued support and investment in HCFSI/HCB and “Community Banking” as we continue to make a difference in people’s lives. The ladies and gentlemen of HCB thank you for your support and welcome your comments. Sincerely, Jeff Loomis President & CEO 301Newman Street, P.O. Box 312, East Tawas, Michigan 48730 PRSRT STD U.S. POSTAGE PAID EAST TAWAS, MI PERMIT NO. 3 48730 Our New West Branch Loan Office 2210 South M76, West Branch, MI 48661, (989) 362-6700
Transcript of Our New West Branch Loan Office PRSRT STD - Quarterly Statement (2016 - 1st... · Jeff Loomis ....
April 29, 2016
Dear Shareholders and Friends, Ladies and Gentlemen,
We are pleased to present to you selected financial highlights of Huron Community Financial Services, Inc.
(HCFSI) and Huron Community Bank (HCB) for the period ending March 31, 2016.
HCFSI (In Thousands)
Net Income for our holding company through March 31, 2016 was $321 as compared to $288 for the same
quarter last year. Return on Average Equity was 5.43% and Return on Average Assets was 0.68% compared to
4.96% and 0.58% respectively at March 31, 2015. Book value of your common stock is $42.42 and Earnings
per Share are $.58. At March 31, 2016 the share-holder equity is $23,646.
HCB (In Thousands)
Net Income through the end of the first quarter 2016 was $340.3 compared to $290.6 for the same period last
year. March 31, 2016 Return on Average Equity was 6.11% with Return on Average Assets of 0.72% com-
pared to 5.27% and 0.59% respectively at March 31, 2015. Total assets at the end of the quarter were $188.5
versus $192.5 in 2015. Total loans ended the first quarter at $136.6 while total deposits were $159.2.
Year to Date Financial Performance
The first quarter shows a solid start for our bank. First quarter results for net income were ahead of both budg-
et forecast and actual year over year. The improved performance is a result of the continued growth we are
experiencing in our loan portfolio, an increase in other income, and continued improvement in our Net Inter-
est Margin. YTD 2016 margin was 3.65% compared to 3.45% at the end of the first quarter 2015. Total out-
standing loans at the end of March 2016 were $136.6 million compared to $132.5 million at March 2015
month end. The first quarter also showed a strong improvement in Asset Quality ratios. An example was a
3.50% decrease in the Classified Assets/Tier 1 +ALLL ratio from year end 2015.
Mortgage volume remains stable in the region with a majority of the activity coming from home purchases.
With rates still at historic lows we are also seeing continued refinance and consolidation activity. The homes
being purchased are a mix of primary residences and second homes. We are seeing improved financial results
from all sectors of the business community. Retailers are seeing more consumer traffic and our industrial base
continues to experience higher sales and profits. On a national level interest rates remain low and few econo-
mists are predicting any increase in those rates over the balance of the year.
Cash Dividend Declared
Your Board of Directors declared a cash dividend of $0.27 per share to shareholders of record at April 5, 2016.
This represents the 89rd consecutive quarter in which a cash dividend has been paid to our shareholders. The
dividend was paid on April 15, 2016. If you are not already enrolled in our dividend reinvestment program I
would encourage you to do so. It is a great way to increase investment in the bank!
As always I encourage you to reach out to me if you should have any questions or concerns. We appreciate
your continued support and investment in HCFSI/HCB and “Community Banking” as we continue to make a
difference in people’s lives.
The ladies and gentlemen of HCB thank you for your support and welcome your comments.
Sincerely,
Jeff Loomis
President & CEO
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Harrisville Office 423 East Main Street Harrisville, MI 48740
(989) 724-6719 (989) 724-6755 FAX
East Tawas Office 301 Newman Street
East Tawas, MI 48730 (989) 362-6700
(989) 362-8982 FAX
Tawas City Office 410 East Lake Street Tawas City, MI 48763
(989) 362-8671 (989) 362-3743 FAX
Oscoda Office 5077 North US-23 Oscoda, MI 48750
(989) 739-9125 (989) 739-0370 FAX
AuGres Office 3150 East Huron
AuGres, MI 48703 (989) 876-8068
(989) 876-6599 FAX
Lincoln Office 327 Traverse Bay Road
Lincoln, MI 48742 (989) 736-6727
(989) 736-3451 FAX
HCFSI Consolidated Balance Sheet (000's Omitted)
HCFSI Consolidated Report of Income (000's Omitted)
Huron Community Bank Financial Highlights
HURON COMMUNITY FINANCIAL SERVICES, INC.
BOARD OF DIRECTORS
Alan J. Stephenson, Chairman Wayne D. Bigelow, Vice Chairman
Thomas B. Huck David H. Cook
Matthew W. Buresh Mark D. Elliott
Gary J. Thibault Jeffrey B Loomis
DIRECTORS EMERITUS Richard M. Harris Earl T. O'Loughlin Eugene J. Weaver Howard C. Look
Robert D. Hodges Monty L. Kruttlin
Robert M. Beneson
(Unaudited) (Unaudited)
ASSETS 3/31/2016 3/31/2015
Cash & Due From Banks $8,505 $15,413
Investment Securities 33,311 33,955
Total Loans 136,646 132,597
Allowance for Loan Loss (1,763) (1,741)
Net Loans 134,883 130,856
Bank Premises & Equipment 2,717 2,796
Accrued Interest Receivable 498 418
Intangible Assets 405 405
Other Assets 9,409 9,249
TOTAL ASSETS $189,728 $193,093
LIABILITIES & EQUITY
Total Deposits $159,230 $157,995
Repurchase Agreements 5,144 10,163
FHLB Borrowings 1,200 1,000
Other Liabilities 509 641
TOTAL LIABILITIES 166,083 169,798
Common Stock 557 551
Surplus 17,554 17,282
Retained Earnings 5,251 5,198 Unrealized Gain(Loss) Inv. Sec. AFS 283 263
TOTAL SHAREHOLDERS EQUITY 23,645 23,295
TOTAL LIABILITIES & EQUITY $189,728 $193,093
(Unaudited) (Unaudited)
Three Months Ended 3/31/2016 3/31/2015
Interest on Loans $1,531 $1,514
Interest on Investments 164 158
TOTAL INTEREST INCOME 1,695 1,671
INTEREST EXPENSE 96 107
NET INTEREST INCOME 1,599 1,565
Fees on Loans 84 129
Other Income 257 349
Total Other Operating Income 341 478
Salaries and Benefits (net) 783 776
Fixed Expense 214 213
Variable Expense 457 541
Loan Loss Provision 55 103
Loss (Gain) on Assets (1) 25
Other Operating Expense 1,508 1,657
NET INCOME BEFORE INCOME TAXES 432 386
FEDERAL INCOME TAXES 111 98
NET INCOME $321 $288
Basic Earnings Per Share $0.58 $0.52
Book Value Per Share $42.42 $42.26
Cash Dividends Declared Per Share $0.27 $0.25
(Unaudited) (Unaudited)
PROFITABILITY 3/31/2016 3/31/2015
Net Income (In thousands) $340.3 $290.6
Return on Assets - Year-to-date annualized 0.72% 0.59%
Return on Equity - Year-to-date annualized 6.11% 5.27%
Net Interest Margin - Year-to-date annualized 3.65% 3.45%
SELECTED BALANCES (In Thousands)
Total Assets $188,484 $192,567
Total Loans $136,646 $132,598
Total Deposits $159,250 $158,325
Stockholder's Equity $22,426 $22,485
West Branch Office 2210 South M76
West Branch, MI 48661 (989) 362-6700
(989) 343-0811 (FAX)
