FPS staff report
August 6, 2012
Officials with Consumers Bancorp, Inc. (Consumers) are reporting numbers that show strong growth throughout the company’s market area.
Bank officials said net income was $600,000 for the fourth fiscal quarter of 2012 and $2.8 million for the twelve-month period ended June 30, 2012. Earnings per share for the twelve months ended June 30, 2012 increased by 22.7% over the prior fiscal year. Total loans increased by 11.2% and total deposits increased by 14.6% during the twelve months ended June 30, 2012 and net charge-offs to total loans ratio of 0.04%, down from 0.34% from the same period last year.
Fourth fiscal quarter 2012 earnings per share were $0.29 compared to $0.27 for the same period ended June 30, 2011. Net income for the fourth fiscal quarter of 2012 was $600,000 an increase of $41,000 or 7.3%, from the same period last year.
For the twelve months ended June 30, 2012, net income was $2.8 million compared to $2.2 million for the same period last year. Fiscal year-to-date net income per share increased by 22.7% to $1.35 compared to $1.10 for the same period last year. Return on average assets and return on average equity for the twelve months ended June 30, 2012 were 0.87% and 10.29%, respectively, compared to 0.80% and 9.21%, respectively, for the same period last year.
Ralph J. Lober, president and chief Executive officer, stated, “The current quarter and 2012 fiscal results continue to reflect strong growth throughout our market area. While a 14.6% increase in deposits drove asset growth, significant increases in consumer and commercial lending allowed the bank to deploy those funds into higher yielding asset classes. This growth resulted in a 23.0% increase in year-to-date earnings, a 9.8% increase in book value, and a 7.3% increase in shareholder dividends. We are also encouraged by continued improvement in both the net charge-off and nonperforming asset ratios. These results have allowed management to focus on strengthening Consumers’ market position and reputation across Carroll, Columbiana and Stark counties as well as extend our footprint to the Canton market where our staff at the new full service Jackson-Belden branch will began serving customers July 31.”
Other income was $650,000 for the fourth quarter of fiscal year 2012 compared with $421,000 for the same period last year. Other income in the fourth quarter of fiscal year 2011 was negatively impacted by a $170,000 impairment charge on the Bank’s only trust preferred holding. This trust preferred holding had an adjusted amortized cost of $202 thousand as of June 30, 2012 and 2011. Other expenses increased $258 thousand, or 10.7%, for the fourth fiscal quarter of 2012 from the same period last year. This increase was mainly the result of an increase in salary and benefits as a result of staff additions in the lending area, normal merit increases that occurred in fiscal year 2011 and an increase in employee incentives.
Assets at June 30, 2012 totaled $334.8 million, an increase of $34.6 million from June 30, 2011. From June 30, 2011, total securities increased by $13.5 million, gross loans increased $19.9 million and deposits increased $36.2 million.
Consumers offers a complete range of banking and other investment services to businesses and clients through its eleven full service locations and a loan production office in Stark, Carroll and Columbiana counties in Ohio. Information about Consumers National Bank can be accessed on the internet at www.consumersbank.com.