Wellesley Bancorp, Inc. Reports Results for the Quarter Ended March 31, 2019

Non-Interest Income. Non-interest income totaled $682 thousand for the quarter ended March 31, 2019, an increase of $104 thousand, or 18.0%, compared to the prior year period.  Wealth management fees increased $50 thousand, or 13.0%, compared to the quarter ended March 31, 2018, primarily due to an increase in assets under management.  Total assets under management at Wellesley Investment Partners, including the Bank's investment portfolio, were $419.3 million at the March 31, 2019, as compared to $406.6 million at March 31, 2018.  Income from mortgage banking activities increased $19 thousand, primarily due to higher volume of sales of fixed rate mortgage loans as compared to the prior year.  All other non-interest income increased $35 thousand primarily due to an increase in fees on customer interest rate swaps

Non-Interest Expenses. Total non-interest expenses were $5.1 million in the quarter ended March 31, 2019, an increase of $537 thousand, or 11.8%, compared to the prior year period.  Salaries and benefits increased $319 thousand to $3.0 million for the quarter ended March 31, 2019 as compared to same period ended March 31, 2018.  The increase is due to the annual merit increases along with the addition of new staff. Occupancy and equipment increased $86 thousand due to the relocation of business operations to our new home office location and increases in rent expense. Data processing costs increased $63 thousand and other general administrative costs increased $105 thousand associated with increased business volumes. FDIC insurance costs decreased $33 thousand due to lower quarterly assessment rates. Professional fees decreased $8 thousand due mainly to lower corporate legal expenses. 

Income Tax Provision. Income tax provision decreased by $64 thousand for the quarter ended March 31, 2019 as compared to 2018.  Our effective tax rate for the three months ended March 31, 2019 was 26.8% compared to 27.3% in 2018. 

Balance Sheet Growth
Total assets were $912.1 million at March 31, 2019, representing an increase of $40.7 million compared to $871.4 million at December 31, 2018.  The increase was primarily related to growth in the loan portfolio of $41.7 million, and the addition of an operating lease right-of-use asset of $7.6 million, partially offset by a reduction in cash and investments.  Total liabilities increased $38.6 million due to deposits increasing $33.0 million, the addition of a lease liability of $7.6 million, partially offset by total borrowings decreasing $2.3 million, as compared to December 31, 2018.

Loans. Gross loans totaled $785.5 million at March 31, 2019, an increase of $41.7 million, or 5.6%, as compared to December 31, 2018.  Construction loans increased $23.7 million to $130.4 million at December 31, 2018, compared to $106.7 million at December 31, 2018.  Commercial and industrial loans increased $13.9 million to $80.8 million. Commercial real estate loans increased $5.0 million to $153.0 million. Residential mortgage loans decreased $1.6 million to $380.9 million at December 31, 2018.

Deposits. Deposits increased $33.0 million to $750.9 million at March 31, 2019 compared to $717.9 million at December 31, 2018.  Money market accounts increased $31.0 million, or 15.2% due to our success in attracting new deposit relationships.    Demand deposits and NOW accounts increased $10.2 million, or 6.6%, to $164.1 million as growth was realized in both retail and commercial accounts.  Savings accounts decreased $1.8 million to $80.4 million.   Certificates of deposit decreased $6.4 million to $271.9 million.

Borrowings. Long-term debt and short-term borrowings, consisting entirely of advances from the FHLB, decreased $2.3 million to $71.2 million, compared to $73.5 million at December 31, 2018.

Stockholders' Equity. Stockholders' equity increased $2.1 million to $67.2 million, primarily due to earnings and an increase in the fair values of available-for-sale securities at March 31, 2019 compared to December 31, 2018, partially offset by dividends paid.   At March 31, 2019, the Company's ratio of stockholders' equity to total assets was 7.37%, compared to 7.47% at December 31, 2018.

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 personal, customized, premier banking services to successful people, families, businesses and Non-profit organizations.  The bank has six full-service banking offices in Wellesley, Newton, Needham, and Boston.  Wellesley Investment Partners, a subsidiary of Wellesley Bank, provides wealth management services to individuals and families, private foundations and endowments. Wellesley Bank has been serving the Greater Boston Area for over 107 years.

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 March 31,
	2019			2018
Interest and dividend income:
Interest and fees on loans and loans held for sale	$        8,727			$        7,227
Other interest and dividend income	703			612
Total interest and dividend income	9,430			7,839
Interest expense	2,999			1,817
Net interest income	6,431			6,022
Provision for loan losses	240			65
Net interest income, after provision for loan losses	6,191			5,957
Total non-interest income	682			578
Non-interest expenses:
Salaries and employee benefits	3,040			2,721
Occupancy and equipment	804			718
Data processing	297			234
FDIC insurance	135			168
Professional fees	190			198
Other general and administrative	629			519
Total non-interest expenses	5,095			4,558
Income before income taxes	1,778			1,977
Provision for income taxes	476			540
Net income	$       1,302			$       1,437
Other Data:
Return on average assets (1)	0.59	%		0.71	%
Return on average equity (1)	7.94	%		9.49	%
Net interest margin (1)	3.02	%		3.10 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 04:01 - PR Newswire Invesco Bond Income Plus Ltd - Total Voting Rights 02:00 - PR Newswire Bank of America Corp. - Notification of Filing of Documents 30.04.24 - ARIVA.DE Redaktion Minimales Kursplus bei der Allianz-Aktie (267,70 €) Paukenschlag in USA    Cannabis-Neuregulierung durch DEA sorgt für Kursexplosion! weiterlesen» Anzeige wo-site-teaser-box-16809_site-teaser-box_2024-05-01_09%253A00%253A00_2024-05-02_09%253A00%253A59