Sturgis Bancorp Reports Earnings for 2021
Sturgis Bancorp announced a net income of $6.3 million for 2021, a 5.6% increase from 2020, and $1.8 million for Q4 2021. Earnings per share rose to $2.98 in 2021 from $2.84 in 2020. Total assets increased 16.8% to $751.7 million, with net loans rising 21.8% to $542.2 million. Noninterest expense grew due to increased staffing for expansion in southwest Michigan. The Bank's capital ratios remain strong, with Tier 1 leverage at 8.75%. The quarterly dividend was increased to $0.17 per share in Q1 2022.
- Net income for 2021: $6.3 million (+5.6% YoY)
- Earnings per share up to $2.98 in 2021 from $2.84 in 2020
- Total assets increased by 16.8% to $751.7 million
- Net loans rose by 21.8% to $542.2 million
- Capital ratios exceeded 'well-capitalized' requirements
- Dividends increased to a record $0.17 per share in Q1 2022
- Tax-equivalent net interest margin decreased to 2.96% in 2021 from 3.14% in 2020
- Noninterest expense rose to $20.5 million, a 20.6% increase from 2020
- Provision for loan losses decreased significantly, indicating potential future risks
STURGIS, MI / ACCESSWIRE / February 16, 2022 / Sturgis Bancorp, Inc. (OTCQX:STBI) today announced net income of
Sturgis Bancorp is the holding company for Sturgis Bank & Trust Company (Bank), and its subsidiaries Oakleaf Financial Services, Oak Mortgage, Ayres/Oak Insurance, and Oak Title Services. The Bank provides a full array of trust, commercial and consumer banking services from banking centers in Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Portage, South Haven, St. Joseph, Three Rivers and White Pigeon, MI. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Oak Mortgage offers residential mortgages in all markets of the Bank. Ayres/Oak Insurance offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance.
Key Highlights:
- Earnings per share increased to
$2.98 in 2021 from$2.84 in 2020. Earnings per share increased to$0.83 in the three months ended December 31, 2021 from$0.74 in the three months ended December 31, 2020. Net income increased5.6% in 2021 to$6,344,000 from 2020 net income of$6,006,000 , primarily due to higher net interest income in 2021. - Credit quality is very strong, with
99.88% of loans performing according to loan agreements. Allowance for loan losses was1.28% of loans on December 31, 2021, compared to1.38% on December 31, 2020. - The Bank maintained strong capital ratios, exceeding "well-capitalized" requirements, with Tier 1 leverage capital at
8.75% . - Sales of
$128.3 million residential mortgages generated$3.6 million of noninterest income in 2021, compared to$4.8 million on$156.7 million of sales in 2020. - Total assets increased
16.8% to$751.7 million . - Net loans increased
21.8% to$542.2 million , including$68.6 million increase in residential mortgages. - An interest rate swap was terminated, generating
$407,000 gain. - Total non-brokered deposits increased
28.6% to$574.2 million on December 31, 2021, compared to$446.7 million on December 31, 2020.
Eric L. Eishen, President and CEO, stated, "The Bank had record high earnings in 2021. Few loans were delinquent and loans with COVID-related accommodations in the past year have paid off or returned to normal payments. Earnings were positively impacted by strong Mortgage Banking activity and the gain on swap termination. Paycheck Protection Program ("PPP") loan originations also continued strong through the Spring of 2021, serving local employers and introducing some new customers to the Bank. At the end of 2020, the Company issued
Year ended December 31, 2021 vs. year ended December 31, 2020 - Net income for 2021 was
Net interest income increased to
The Company provided
Noninterest income was
Noninterest expense was
Three months ended December 31, 2021 vs. three months ended December 31, 2020 - Net income for the three months ended December 31, 2021 was
Net interest income increased to
The Company made no provisions to the allowance for loan losses in the three months ended December 31, 2021, compared to
Noninterest income was
Noninterest expense was
Balance Sheet - Total assets increased to
Interest-bearing deposits increased to
Total equity was
This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates or expectations of Bancorp, primarily with respect to future events and the future financial performance of the Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statement. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending and future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes of the world, national and local economies. Bancorp undertakes no obligation to update, amend or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.
For additional information, visit our website at www.sturgis.bank.
Contacts:
Sturgis Bancorp - Eric Eishen, President & CEO, or Brian P. Hoggatt, CFO - P: 269 651-9345
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
| Dec. 31, | Dec. 31, | |||||||
| 2021 | 2020 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 15,793 | $ | 12,060 | ||||
Other short-term investments | 23,731 | 55,782 | ||||||
Total cash and cash equivalents | 39,524 | 67,842 | ||||||
Interest-earning deposits in banks | 494 | 1,241 | ||||||
Securities - available for sale | 83,134 | 73,072 | ||||||
Securities - held to maturity | 24,347 | - | ||||||
Federal Home Loan Bank stock, at cost | 7,951 | 4,917 | ||||||
Loans held for sale, at fair value | 7,287 | 6,832 | ||||||
Loans, net of allowance of | 542,196 | 445,091 | ||||||
Premises and equipment, net | 13,231 | 11,844 | ||||||
Goodwill | 5,834 | 5,834 | ||||||
Core deposit intangibles | 49 | 77 | ||||||
Originated mortgage servicing rights | 2,963 | 2,245 | ||||||
Real estate owned | - | 341 | ||||||
Bank-owned life insurance | 15,598 | 11,091 | ||||||
Accrued interest receivable | 1,894 | 2,458 | ||||||
Other assets | 7,233 | 10,721 | ||||||
Total assets | $ | 751,735 | $ | 643,606 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 145,503 | $ | 124,434 | ||||
Interest-bearing | 438,690 | 383,464 | ||||||
Total deposits | 584,193 | 507,898 | ||||||
Federal Home Loan Bank advances and other borrowings | 89,000 | 61,500 | ||||||
Subordinated debentures - unamortized debt issuance costs of and | 14,673 | 14,600 | ||||||
Accrued interest payable | 425 | 477 | ||||||
Other liabilities | 11,008 | 12,019 | ||||||
Total liabilities | 699,299 | 596,494 | ||||||
Stockholders' equity | ||||||||
| Preferred stock - | ||||||||
issued and outstanding - 0 shares | - | - | ||||||
| Common stock - | ||||||||
| issued and outstanding 2,132,291 shares at Dec. 31, 2021 | ||||||||
and 2,123,291 at Dec. 31, 2020 | 2,132 | 2,123 | ||||||
Additional paid-in capital | 8,210 | 8,050 | ||||||
Retained earnings | 43,823 | 38,840 | ||||||
Accumulated other comprehensive loss | (1,729 | ) | (1,901 | ) | ||||
Total stockholders' equity | 52,436 | 47,112 | ||||||
Total liabilities and stockholders' equity | $ | 751,735 | $ | 643,606 | ||||
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share and per share data)
| Year | ||||||||
| Ended Dec. 31, | ||||||||
| 2021 | 2020 | |||||||
Interest income | ||||||||
Loans | $ | 21,743 | $ | 19,151 | ||||
Investment securities: | ||||||||
Taxable | 1,242 | 954 | ||||||
Tax-exempt | 528 | 673 | ||||||
Dividends | 171 | 161 | ||||||
Total interest income | 23,684 | 20,939 | ||||||
Interest expense | ||||||||
Deposits | 2,527 | 2,262 | ||||||
Borrowed funds | 1,591 | 1,318 | ||||||
Total interest expense | 4,118 | 3,580 | ||||||
Net interest income | 19,566 | 17,359 | ||||||
Provision (benefit) for loan losses | 1,074 | 2,897 | ||||||
Net interest income after provision (benefit) for loan losses | 18,492 | 14,462 | ||||||
Noninterest income: | ||||||||
Service charges and other fees | 1,216 | 1,195 | ||||||
Interchange income | 1,183 | 970 | ||||||
Investment brokerage commission income | 1,890 | 1,473 | ||||||
Mortgage banking activities | 3,554 | 4,788 | ||||||
Trust fee income | 505 | 371 | ||||||
Earnings on cash value of bank-owned life insurance | 307 | 294 | ||||||
Gain on sale of securities | - | 157 | ||||||
Gain on termination of interest rate swap | 407 | - | ||||||
Other income | 635 | 566 | ||||||
Total noninterest income | 9,697 | 9,814 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 12,673 | 10,353 | ||||||
Occupancy and equipment | 2,553 | 2,146 | ||||||
Interchange expenses | 496 | 427 | ||||||
Data processing | 901 | 869 | ||||||
Professional services | 322 | 373 | ||||||
Real estate owned expense | 7 | 15 | ||||||
Advertising | 593 | 313 | ||||||
FDIC premiums | 272 | 323 | ||||||
Other expenses | 2,697 | 2,198 | ||||||
Total noninterest expenses | 20,514 | 17,017 | ||||||
Income before income tax expense | 7,675 | 7,259 | ||||||
Income tax expense | 1,331 | 1,253 | ||||||
Net income | $ | 6,344 | $ | 6,006 | ||||
Earnings per share | $ | 2.98 | $ | 2.84 | ||||
Dividends per share | $ | 0.64 | $ | 0.64 | ||||
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share and per share data)
| Three Months | ||||||||
| Ended Dec. 31, | ||||||||
| 2021 | 2020 | |||||||
Interest income | ||||||||
Loans | $ | 5,358 | $ | 5,136 | ||||
Investment securities: | ||||||||
Taxable | 359 | 222 | ||||||
Tax-exempt | 125 | 139 | ||||||
Dividends | 50 | 37 | ||||||
Total interest income | 5,892 | 5,534 | ||||||
Interest expense | ||||||||
Deposits | 581 | 667 | ||||||
Borrowed funds | 420 | 188 | ||||||
Total interest expense | 1,001 | 855 | ||||||
Net interest income | 4,891 | 4,679 | ||||||
Provision (benefit) for loan losses | - | 825 | ||||||
Net interest income after provision (benefit) for loan losses | 4,891 | 3,854 | ||||||
Noninterest income: | ||||||||
Service charges and other fees | 324 | 292 | ||||||
Interchange income | 311 | 261 | ||||||
Investment brokerage commission income | 461 | 398 | ||||||
Mortgage banking activities | 1,465 | 1,421 | ||||||
Trust fee income | 225 | 101 | ||||||
Earnings on cash value of bank-owned life insurance | 91 | 74 | ||||||
Other income | 131 | 236 | ||||||
Total noninterest income | 3,008 | 2,783 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 3,660 | 2,818 | ||||||
Occupancy and equipment | 680 | 582 | ||||||
Interchange expenses | 131 | 117 | ||||||
Data processing | 232 | 221 | ||||||
Professional services | 86 | 113 | ||||||
Real estate owned expense | - | 5 | ||||||
Advertising | 145 | 102 | ||||||
FDIC premiums | 78 | 180 | ||||||
Other expenses | 708 | 587 | ||||||
Total noninterest expenses | 5,720 | 4,725 | ||||||
Income before income tax expense | 2,179 | 1,912 | ||||||
Income tax expense | 404 | 352 | ||||||
Net income | $ | 1,775 | $ | 1,560 | ||||
Earnings per share | $ | 0.83 | $ | 0.73 | ||||
Dividends per share | $ | 0.16 | $ | 0.16 | ||||
OTHER FINANCIAL INFORMATION
(Amounts in thousands)
| Three Months | ||||||||
| Ended Dec. 31, | ||||||||
| 2021 | 2020 | |||||||
Sturgis Bank & Trust Company: | ||||||||
Average noninterest-bearing deposits | $ | 151,881 | $ | 126,119 | ||||
Average interest-bearing deposits | 443,501 | 371,387 | ||||||
Average total assets | 735,966 | 614,379 | ||||||
Sturgis Bancorp: | ||||||||
Average equity | 51,571 | 46,190 | ||||||
Average total assets | 736,145 | 614,495 | ||||||
Financial ratios for Sturgis Bancorp: | ||||||||
Return on average assets | 0.96 | % | 1.01 | % | ||||
Return on average equity | 13.66 | % | 13.43 | % | ||||
Net interest margin | 2.84 | % | 3.28 | % | ||||
Tax equivalent net interest margin | 2.87 | % | 3.31 | % | ||||
| Year | ||||||||
| Ended Dec. 31, | ||||||||
| 2021 | 2020 | |||||||
Sturgis Bank & Trust Company: | ||||||||
Average noninterest-bearing deposits | $ | 148,277 | $ | 123,696 | ||||
Average interest-bearing deposits | 433,175 | 350,321 | ||||||
Average total assets | 719,416 | 608,064 | ||||||
Sturgis Bancorp: | ||||||||
Average equity | 49,725 | 44,376 | ||||||
Average total assets | 719,583 | 608,177 | ||||||
Financial ratios for Sturgis Bancorp: | ||||||||
Return on average assets | 0.88 | % | 0.99 | % | ||||
Return on average equity | 12.76 | % | 13.53 | % | ||||
Net interest margin | 2.93 | % | 3.09 | % | ||||
Tax equivalent net interest margin | 2.96 | % | 3.14 | % | ||||
SOURCE: Sturgis Bancorp, Inc.
View source version on accesswire.com:
https://www.accesswire.com/689088/Sturgis-Bancorp-Reports-Earnings-for-2021
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