Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MW Bancorp, Inc. | v400540_8k.htm |
Mt. Washington Savings Bank Reports Financial Results For The Three And Six Months Ended December 31, 2014
CINCINNATI, Feb. 5, 2015 /PRNewswire/ -- Mt. Washington Savings Bank (the "Bank"), the wholly-owned subsidiary of MW Bancorp, Inc. (OTC Pink Marketplace: MWBC), announced net income of $81,000 and $79,000 for the three and six months ended December 31, 2014, respectively. This compares to net losses of $411,000 and $435,000 for the three and six-months ended December 31, 2013.
Net interest income for the three and six months ended December 31, 2014 increased $91,000 and $158,000, respectively, from the comparable periods in 2013 due primarily to an increase in the net interest margin.
The provision for loan losses for the three and six months ended December 31, 2014 was $185,000 and $200,000 less than the comparable periods in 2013, as the Bank experienced declines in net loan charge-offs, non-accrual loans, classified loans and loans past due 30 days or more at and for the six months ended December 31, 2014 compared to the same period ended December 31, 2013.
Non-interest income increased for the three-and six-month periods ended December 31, 2014, by $57,000 and $15,000, respectively, due primarily to an increase in gains on sales of mortgage loans and, in the three month period, an improvement in gain (loss) on sale of foreclosed assets.
Non-interest expense for the three and six months ended December 31, 2014 was $159,000 and $156,000 less than the comparable periods ended December 31, 2013. The Bank reported decreases in salaries and employee benefits, along with other expense items, due to management's continuing focus on cost controls.
Mt. Washington Savings Bank, headquartered in Cincinnati, Ohio, recently completed its mutual to stock conversion, which included formation of MW Bancorp, Inc., as the Bank's holding company and issuance by MW Bancorp, Inc., of 876,163 shares of common stock at an offering price of $10.00 per share. Mt. Washington Savings Bank conducts operations from its main office located in Hamilton County, Ohio. Additional information about MW Bancorp, Inc. and information about products and services offered by Mt. Washington Savings Bank can be found at www.mwbank24.com.
The common shares of MW Bancorp, Inc. (OTC Pink Marketplace: MWBC) commenced trading effective January 30, 2015.
This press release contains certain forward-looking 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 MW Bancorp, Inc. and Mt. Washington Savings Bank are engaged.
Mt. Washington Savings Bank | |||
Condensed Balance Sheets | |||
(In thousands) | |||
|
|
|
|
|
|
| December 31, |
| June 30, |
Assets | 2014 |
| 2014 |
|
| (Unaudited) | ||
Cash and due from banks | $ 740 |
| $ 1,793 |
Interest-bearing demand deposits | 1,970 |
| 2,677 |
|
|
|
|
|
Cash and cash equivalents | 2,710 |
| 4,470 |
|
|
|
|
|
Interest-bearing time deposits in other financial institutions | 3,100 |
| 3,998 |
Available-for-sale securities | 4,325 |
| 5,416 |
Held-to-maturity securities | 1,973 |
| 2,374 |
Loans, net of allowance for loan losses of $1,573 and $1,537 | 77,748 |
| 67,284 |
Premises and equipment, net | 356 |
| 385 |
Federal Home Loan Bank stock, at cost | 1,164 |
| 1,164 |
Foreclosed assets, net | 143 |
| 158 |
Accrued interest receivable | 198 |
| 187 |
Company owned life insurance | 3,329 |
| 3,282 |
Other assets | 960 |
| 395 |
|
|
|
|
|
Total assets | $ 96,006 |
| $ 89,113 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
Deposits |
|
|
|
Demand and money market | $ 8,422 |
| $ 5,597 |
Savings | 8,774 |
| 9,058 |
Time | 42,739 |
| 46,055 |
|
|
|
|
|
Total deposits | 59,935 |
| 60,710 |
|
|
|
|
|
Federal Home Loan Bank advances | 19,128 |
| 17,333 |
Stock subscription proceeds in escrow | 6,658 |
| - |
Directors deferred compensation | 1,005 |
| 2,012 |
Other liabilities | 363 |
| 229 |
|
|
|
|
|
Total liabilities | 87,089 |
| 80,284 |
|
|
|
|
|
Equity |
|
|
|
Retained earnings | 9,001 |
| 8,922 |
Accumulated other comprehensive loss | (84) |
| (93) |
|
|
|
|
|
Total equity | 8,917 |
| 8,829 |
|
|
|
|
|
Total liabilities and equity | $ 96,006 |
| $ 89,113 |
|
|
|
|
|
Mt. Washington Savings Bank | ||||||||
Condensed Statements of Operations | ||||||||
(In thousands) | ||||||||
|
|
|
|
|
| ||||
|
|
| Three Months Ended December 31, |
| Six Months Ended December 31, | ||||
|
|
| 2014 |
| 2013 |
| 2014 |
| 2013 |
|
|
| (Unaudited) | ||||||
Interest Income |
|
|
|
|
|
|
|
|
Loans, including fees |
| $ 792 |
| $ 669 |
| $ 1,534 |
| $ 1,311 |
Taxable securities |
| 31 |
| 47 |
| 55 |
| 81 |
Tax exempt securities |
| - |
| 8 |
| - |
| 14 |
Interest-bearing deposits |
| 30 |
| 20 |
| 54 |
| 40 |
|
|
|
|
|
|
|
|
|
|
Total interest income |
| 853 |
| 744 |
| 1,643 |
| 1,446 |
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
Deposits |
| 172 |
| 179 |
| 350 |
| 356 |
Federal Home Loan Bank advances |
| 74 |
| 49 |
| 138 |
| 93 |
|
|
|
|
|
|
|
|
|
|
Total interest expense |
| 246 |
| 228 |
| 488 |
| 449 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
| 607 |
| 516 |
| 1,155 |
| 997 |
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses |
| 15 |
| 200 |
| 30 |
| 230 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income After Provision for Loan Losses |
| 592 |
| 316 |
| 1,125 |
| 767 |
|
|
|
|
|
|
|
|
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
Gain on sale of loans |
| 18 |
| - |
| 27 |
| 4 |
Gain (loss) on sale of foreclosed assets, net |
| 17 |
| (18) |
| 18 |
| 26 |
Income from Company owned life insurance |
| 24 |
| 24 |
| 47 |
| 48 |
Other operating |
| 6 |
| 2 |
| 13 |
| 12 |
Total noninterest income |
| 65 |
| 8 |
| 105 |
| 90 |
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
Salaries, employee benefits and directors fees |
| 355 |
| 387 |
| 690 |
| 735 |
Occupancy and equipment |
| 33 |
| 45 |
| 66 |
| 79 |
Data processing |
| 11 |
| 25 |
| 40 |
| 43 |
Franchise taxes |
| 21 |
| 36 |
| 38 |
| 72 |
FDIC insurance premiums |
| 18 |
| 19 |
| 37 |
| 40 |
Professional services |
| 56 |
| 76 |
| 125 |
| 115 |
Advertising |
| 5 |
| 40 |
| 22 |
| 61 |
Office supplies |
| 7 |
| 10 |
| 14 |
| 17 |
Business entertainment |
| 12 |
| 21 |
| 16 |
| 24 |
Other |
| 58 |
| 76 |
| 103 |
| 121 |
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
| 576 |
| 735 |
| 1,151 |
| 1,307 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Federal Income Taxes (Benefits) |
| 81 |
| (411) |
| 79 |
| (450) |
|
|
|
|
|
|
|
|
|
|
Federal Income Tax Expense (Benefit) |
| - |
| - |
| - |
| (15) |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 81 |
| $ (411) |
| $ 79 |
| $ (435) |
|
|
|
|
|
|
|
|
|
|
Mt. Washington Savings Bank | |||||
Financial Highlights | |||||
|
|
|
|
| ||
|
| At or for the Three Months Ended December 31, |
| At or for the Six Months Ended December 31, | ||
|
| 2014 | 2013 |
| 2014 | 2013 |
Performance Ratios: |
|
|
|
|
|
Return on average assets (1) | 0.36% | (1.96%) |
| 0.18% | (1.02%) |
Return on average equity (1) | 3.64% | (16.88%) |
| 1.86% | (9.82%) |
Interest rate spread | 2.67% | 2.44% |
| 2.58% | 2.28% |
Net interest margin (1) | 2.79% | 2.41% |
| 2.69% | 2.57% |
Efficiency ratio (1) | 85.71% | 140.27% |
| 91.35% | 120.24% |
Average interest-earning assets to average |
|
|
|
|
|
interest-bearing liabilities | 110.26% | 111.14% |
| 109.69% | 111.36% |
Loans to deposits | 132.30% | 100.35% |
| 132.30% | 100.35% |
Average equity to average total assets | 9.76% | 11.59% |
| 9.49% | 10.35% |
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
Nonperforming assets to total assets | 1.41% | 2.16% |
| 1.41% | 2.16% |
Nonperforming loans to total loans | 1.52% | 2.57% |
| 1.52% | 2.57% |
Allowance for loan losses to nonperforming loans | 130.11% | 98.32% |
| 130.11% | 98.32% |
Allowance for loan losses to total loans | 1.98% | 2.53% |
| 1.98% | 2.53% |
Net charge-offs to average outstanding loans | (0.01%) | 0.33% |
| (0.01%) | 0.16% |
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
Equity to total assets at end of period | 9.29% | 10.29% |
| 9.29% | 10.29% |
Total capital (to risk-weighted assets) | 17.60% | 22.09% |
| 17.60% | 22.09% |
Tier 1 capital (to risk-weighted assets) | 16.40% | 20.92% |
| 16.40% | 20.92% |
Tier 1 capital (to total adjusted assets) | 9.30% | 10.46% |
| 9.30% | 10.46% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios are annualized. |
|
|
| ||
CONTACT: Gregory P. Niesen, President and CEO, (513) 231-7871