Bank of McKenney Reports First Quarter Earnings

The allowance for loan losses was $1.7 million as of March 31, 2017, an increase of $91,000, or 5.80% from the balance at December 31, 2016. This balance represented 1.00% of total loans outstanding at March 31, 2017 and December 31, 2016 respectively. As of March 31, 2017 the allowance consisted of $105,000 in specific reserves on three impaired loans and $1.6 million in general reserves. 0.79% of the total loan portfolio was past due more than 30 days as of March 31, 2017 compared to 0.68% at December 31, 2016. Ten loans to two borrowers account for 70% of the past dues, with balances totaling $912,000, and have been nonperforming assets for almost two years.  Progress has been made on these two relationships as the outstanding balances have been reduced by $659,000 over the twelve month period ended 3-31-2017. One loan of $1.2 million was modified in the first quarter due to reduced cash flows in the business, however the loan is believed to be well collateralized and no current specific impairment allowance is deemed necessary.

Quarterly Results

Net interest income decreased 2.82% or $60,000 to $2.1 million in the first quarter of 2017 from the comparable period in 2016. Total interest income decreased during the quarter due to reductions in rates, but increased loan volume and lower interest expense due to fewer interest-bearing deposits helped offset the effect of lower rates. There was a provision for loan losses during the period of $90,000 compared to no provision for losses in the same period in 2016. The provision was entirely due to loan growth. Noninterest income was $3,000 greater than March 2016 and noninterest expense was $114,000 less for a total decrease in net noninterest expense of $117,000. Income taxes were $23,000 less in 2017 due to less income and lower effective tax rates.   

There were no sales of securities or other real estate owned during the period. There were no significant expenses or write downs related to other real estate owned as well. Service charges on deposits were relatively unchanged during the period compared to the same period in 2016.  Salaries and benefits decreased $107,000 to $1.1 million, while occupancy expenses decreased $10,000.  Other operating expenses increased $4,000 to $548,000 during the first quarter of 2017 compared to the same quarter last year.  Full-time equivalent employees have been reduced from 73 to 64 in the past 24 months.

Purchase of Building and Consolidation of Departments

As discussed in our press release dated May 10, 2017, the Bank has purchased a 26,000 sq. ft., two-story modern office building situated on 2.8 acres in Prince George County. Five of our 7 branches are within an 11 mile radius of this location.  The site is in close proximity to Colonial Heights, Hopewell, Petersburg and Chesterfield and is convenient to I-295.  The location will allow consolidation of management, operations, human resources and credit administration personnel currently located in 4 different facilities located in the southern end of our footprint. "We are very excited to have the opportunity to bring all of our operations and management personnel together for the first time in many years. This new facility will offer significant efficiencies as well as an enhanced work environment for our employees", stated Richard Liles, President and CEO. "We are also pleased to have room for future expansion, as we continue to pursue reasonable growth that is well supported by our excellent capital position."

Approximately 8,000 sq. ft. of the building is leased to the U.S. Government for support activities related to Fort Lee which is in very close proximity.  This lease effectively utilizes space the Bank does not currently need and covers a significant amount of the overall overhead of the facility.       

Bank of McKenney is a full-service community bank headquartered in McKenney, Virginia with seven branches serving Southeastern Virginia.

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Bank of McKenney's filings with the Board of Governors of the Federal Reserve.

BANK OF MCKENNEY AND SUBSIDIARY
Consolidated Balance Sheets Summary Data
March 31, 2017 (unaudited) and December 31, 2016
		March 31,		December 31,
ASSETS		2017		2016
Cash and due from banks		$            5,451,162		$                6,910,035
Federal funds sold		7,561,000		5,603,000
Interest bearing demand deposits in banks		5,052,181		5,039,165
Interest-bearing time deposits in banks		3,224,000		3,472,000
Securities available for sale, at fair market value		26,331,638		26,944,603
Restricted investments		637,075		632,975
Loans, net		164,367,554		156,014,531
Land, premises and equipment, net		8,216,506		8,342,269
Other real estate owned, net		374,879		374,879
Other assets		9,699,963		9,484,998
Total Assets		$        230,915,958		$            222,818,455
LIABILITIES
Deposits		$        202,221,842		$            194,667,685
Borrowed Funds		583,333		666,666
Other liabilities		1,881,085		1,692,865
Total Liabilities		$        204,686,260		$            197,027,216
SHAREHOLDERS' EQUITY
Total shareholders' equity		$          26,229,698		$              25,791,239
Total Liabilities and Shareholders' Equity		$        230,915,958		$            222,818,455
BANK OF MCKENNEY AND SUBSIDIARY
Consolidated Statements of Income Summary Data
(unaudited)
		Three Months Ended
		March 31,
		2017		2016
Interest and dividend income		$            2,267,432		$                2,340,936
Interest expense		189,839		202,954
Net interest income		$            2,077,593		$                2,137,982
Provision for loan losses		90,000		-
Net interest income after provision for loan losses		$            1,987,593 Werbung Mehr Nachrichten zur BANK MCKENNEY W VA Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire BlackRock Latin American Investment Trust Plc - Portfolio Update 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Spirent Communications PLC SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59