Middletown Valley Bank posts record total assets for Q2
Staff Writer |
Middletown Valley Bank reported increased quarterly earnings and record total assets for the second quarter of 2018.
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Net income for the quarter ended June 30, 2018 was $701.5 thousand and earnings per share of $0.31 (share count is 948 thousand higher in 2Q18 vs. 2Q17,) as compared to net income of $407.9 thousand and earnings per share of $0.32 recorded for the second quarter 2017.
Total assets continued to grow in the second quarter 2018 to $392.9 million, an increase of $81.4 million (26%) versus second quarter ended 2017 and just shy of the $400 million threshold.
The increase in second quarter 2018 earnings versus second quarter 2017 was due to a combination of an increase in net interest income of $712.7 thousand, a decrease in loan loss provision of $268.9 thousand, and an increase in noninterest income of $37.7 thousand more than offsetting the $683.8 thousand increase in non-interest expense and $41.9 thousand increase in income taxes.
The Net interest income year over year increase was driven by average loan balances increasing $72.6 million to $302.4 million and 9 bps expansion in net interest margin.
Income taxes were positively impacted by the lowered corporate tax rate. Non-interest expense growth was primarily caused by an increase in personnel and technology enhancements costs as the Bank has crested over 100 employees in the second quarter of 2018.
Net charge offs were $86 thousand and $106 thousand for the second quarter ended June 30, 2018 and second quarter ended 2017, respectively.
Nonperforming assets to total loans increased to 1.20% in the quarter ended June 30, 2018 versus 1.11% for the quarter ended June 30, 2017 while declining from 1.46% for the March 31, 2018 quarter.
The ratio of Allowance for loan losses to total loans declined to 0.98% and 1.13% for the quarters ended June 30, 2018 and 2017, respectively as the overall loan portfolio continues to see improvement in credit quality and economic performance.
The balance sheet growth mentioned previously for the first quarter ended June 30, 2018 was driven by net loan growth of $81.5 million (35%) to $312.2 million and $3.0 million increase in cash to $22.1 million which were funded by a $63.8 million (22.5%) increase in deposits, a $4.7 million reduction in investment securities, and a $18 million increase in equity due to the fourth quarter 2017 common equity capital raise and retained earnings.
The dividend declared was $0.03 for the second quarter ended June 30, 2018 as compared to $0.02 per share for the second quarter ended June 30, 2017. ■