Wellesley Bancorp, Inc. Reports Record Earnings for Full-Year 2016

Net interest income increased $186 thousand, or 3.8%, to $5.1 million for the quarter ended December 31, 2016, as compared to the quarter ended December 31, 2015.  This increase was driven primarily by the growth of our loan portfolio, partially offset by higher interest expense from the increase in deposits, borrowings, and subordinated debt. The yield on earning assets for the fourth quarter 2016 was 3.88%, a decrease of 14 basis points from the comparable quarter in 2015.  Deposit and borrowing costs were 0.95% for the fourth quarter 2016, compared to 0.87% for the fourth quarter 2015 as we absorbed the cost of the subordinated debentures issued in December 2015.  The net interest margin was 3.11% for the 2016 quarter, compared to 3.31% for the 2015 quarter, reflecting the decrease in earning asset yields and the increase in deposit and borrowing costs between the two periods.  Noninterest income totaled $440 thousand for the quarter ended December 31, 2016, an increase of $8 thousand, or 1.9%, compared to the prior year period. Wealth management fees increased $96 thousand compared to the quarter ended December 31, 2015, primarily due to an increase in assets under management, partially offset by a $75 thousand decrease in mortgage banking activity primarily related to the portfolio mortgage sale in 2015 that did not recur in 2016.  Total noninterest expenses increased $532 thousand to $4.3 million for the quarter ended December 31, 2016.  Salaries and employee benefits increased $414 thousand from the prior period due to the opening of Newton Centre, other staff additions in the second half of 2016, and an increase in incentives and benefits.  Occupancy and equipment costs increased $47 thousand from the prior year period primarily due to the Newton Centre office.  FDIC deposit insurance costs increased $30 thousand as assessment rates increased as compared to the prior period. 

Balance Sheet Growth

Total assets were $695.3 million at December 31, 2016, representing an increase of $74.1 million compared to $621.2 million at December 31, 2015.  The increase was primarily related to growth in the loan portfolio and an increase in the level of securities available for sale.  On the liability side, deposits increased $59.1 million, and long-term debt and short-term borrowings increased $11.4 million, as compared to December 31, 2015.   

Gross loans totaled $581.6 million at December 31, 2016, an increase of $69.1 million, as compared to December 31, 2015.  Our portfolios of commercial real estate and commercial and industrial loans increased $18.0 million and $25.7 million, respectively, as we focus on growing those components of our portfolio.  Construction loans increased $15.5 million to $110.4 million at December 31, 2016, compared to $94.9 million at December 31, 2015.  Residential mortgage loans increased $11.5 million to $268.1 million at December 31, 2016, due to growth in our adjustable-rate mortgage portfolio.  Securities available for sale increased $2.2 million as excess liquidity during the period was reinvested.

Deposits increased $59.1 million to $522.8 million at December 31, 2016.  The increase was primarily attributable to increases in non-interest bearing DDA accounts by $30.3 million, NOW accounts by $3.5 million, money market accounts by $16.3 million, as well as certificate of deposits by  $12.3 million,  when compared to December 31, 2015 balances.   We have emphasized commercial deposit accounts in our business development efforts which contributed to much of the deposit growth during the quarter.  Long-term debt and short-term borrowings, consisting entirely of advances from the FHLB, increased $11.4 million as compared to December 31, 2015.

Stockholders' equity increased $3.0 million to $55.2 million, primarily due to earnings and the impact of stock compensation plans during the period.  At December 31, 2016, the Company's ratio of stockholders' equity to total assets was 7.94%, compared to 8.40% at December 31, 2015.

About Wellesley Bancorp

Wellesley Bank and its wholly-owned wealth management company, Wellesley Investment Partners, LLC, are subsidiaries of Wellesley Bancorp, Inc.

Wellesley Bank provides comprehensive premier banking and wealth management services to successful individuals, families, businesses and nonprofit organizations. The Company's teams of highly experienced and knowledgeable bankers provide exceptional personalized services to its clients.  Wellesley Bank has been serving the greater Boston area for over 100 years. With the newest location in Newton Centre, the Bank has six banking offices and a wholly-owned wealth management company.

Forward Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank.  Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may."  Forward-looking statements, by their nature, are subject to risks and uncertainties.  Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

The Company's summary income statements and other data follow:

Wellesley Bancorp, Inc. and Subsidiary
Consolidated Statements of Net Income
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2016		2015		2016		2015
Interest and dividend income:
Interest and fees on loans	$        5,929		$       5,633		$        22,938		$  20,793
Other interest and dividend income	480		372		1,866		1,292
Total interest and dividend income	6,409		6,005		24,804		22,085
Interest expense	1,273		1,055		4,899		3,690
Net interest income	5,136		4,950		19,905		18,395
Provision for loan losses	125		175		437		475
Net interest income, after provision for loan losses	5,011		4,775		19,468		17,920
Total noninterest income	440		432		1,710		1,226
Noninterest expenses:
Salaries and employee benefits	2,572		2,158		9,691		8,747
Occupancy and equipment	747		700		2,986		2,717
Professional fees	171		191		884		747
Other general and administrative	780		689		2,843		2,634
Total noninterest expenses	4,270 Werbung Mehr Nachrichten zur Wellesley Bancorp, Inc. 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 02:00 - PR Newswire Augmentum Fintech Plc - Factsheet as at 31 March 2024 24.04.24 - PR Newswire Mid Wynd International Investment Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity Japan Trust Plc - Transaction in Own Shares 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