×

Peoples Federal Bancshares, Inc. Announces Second Quarter and Year to Date Results for Fiscal Year 2013

BRIGHTON, Mass., April 29, 2013 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced second quarter and year to date earnings for the fiscal year ending September 30, 2013. For the quarter ended March 31, 2013, the Company reported net income of $545,000 or $0.09 per share, basic and diluted, as compared to net income of $588,000 or $0.09 per share, basic and diluted, for the same period last year and net income of $681,000, or $0.11 per share, basic and diluted, for the quarter ended December 31, 2012. For the six months ended March 31, 2013, the Company reported net income of $1.2 million or $0.20 per share, basic and diluted, as compared to net income of $1.4 million or $0.22 per share, basic and diluted, for the same period last year.

For the quarters ended March 31, 2013 and 2012, net interest and dividend income totaled $4.1 million and $4.2 million, respectively. Non-interest income totaled $488,000 for the quarter ended March 31, 2013, as compared to $375,000 for the quarter ended March 31, 2012. Non-interest expense totaled $3.6 million for both the quarter ended March 31, 2013 and the quarter ended March 31, 2012.

For the six-month periods ended March 31, 2013 and 2012, net interest and dividend income totaled $8.3 million and $8.5 million, respectively. Non-interest income totaled $980,000 for the six-months ended March 31, 2013, as compared to $828,000 for the six months ended March 31, 2012. Non-interest expense totaled $7.0 million for the six months ended March 31, 2013, as compared to $6.9 million for the six months ended March 31, 2012, reflecting higher salaries and employee benefits offset by a decrease in other expense.

On a linked basis, the Company's second quarter fiscal 2013 net interest and dividend income decreased $200,000, or 4.7%, to $4.1 million from $4.3 million for the first fiscal quarter ended December 31, 2012, reflecting continued net interest margin compression during the current quarter. Non-interest income for the second quarter of fiscal 2013 decreased slightly to $488,000 from $492,000 for the first fiscal quarter ended December 31, 2012. Non-interest expense increased $126,000, or 3.7%, for the second quarter of fiscal 2013 compared to the first fiscal quarter ended December 31, 2012.

Total assets increased $7.5 million, or 1.3%, to $578.3 million at March 31, 2013 from $570.8 million at September 30, 2012. Loans, net decreased $2.0 million, or 0.5%, as residential real estate, commercial real estate and commercial loans decreased due to loan prepayments. The decreases were offset, in part, by increases in construction and commercial loans. Cash and cash equivalents increased $20.3 million to $56.5 million at March 31, 2013 from $36.2 million at September 30, 2012. This increase was the result of an increase in deposits and maturing securities, which management determined not to reinvest into loans or securities in the low interest rate environment. Securities available-for-sale and held-to-maturity decreased $11.0 million, or 23.1%, to $36.6 million at March 31, 2013 from $47.6 million at September 30, 2012. Borrowings remained at $33.0 million at March 31, 2013 and September 30, 2012.

Deposits increased $12.1 million to $428.8 million at March 31, 2013 from $416.7 million at September 30, 2012. Savings accounts increased $5.7 million, money markets increased $2.9 million, demand deposits increased $1.8 million, and NOWs increased $1.8 million while term certificates decreased $147,000. At March 31, 2013, total stockholders' equity was $108.2 million, a decrease of $2.3 million from $110.5 million at September 30, 2012. The decrease in stockholders' equity during the six-month period was primarily due to dividends paid of $1.9 million and the repurchase and retirement of 147,200 shares, or $2.5 million, of the Company's common stock pursuant to our stock repurchase plan, offset by net income of $1.2 million, stock based compensation expense of $666,000 and common stock released and committed to be released by the ESOP plan of $248,000.

During the quarter ended March 31, 2013, the Company paid a quarterly cash dividend of $0.03 per common share. The dividends paid totaled $178,000 during the quarter. The Company did not pay any dividends during the quarter ended March 31, 2012.

Non-performing assets totaled $2.0 million, or 0.4% of total assets, at March 31, 2013, compared to $3.4 million, or 0.6% of total assets, at September 30, 2012 and $3.3 million, or 0.6% of total assets, at December 31, 2012. Classified assets decreased to $4.1 million at March 31, 2013, as compared to $9.6 million at September 30, 2012 and $7.0 million at December 31, 2012. The Company provided $80,000 to its provision for loan losses during the quarter ended March 31, 2013, reflecting an increase in net loans and changes in the loan segments.

Certain statements herein constitute "forward-looking statements" and actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Peoples Federal Bancshares, Inc. is engaged and changes in the securities market. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.

PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,
2013
September 30,
2012
(Unaudited)
(In thousands, except share data)
ASSETS
Cash and due from banks $ 3,743 $ 6,713
Interest-bearing demand deposits with other banks 50,495 27,378
Federal funds sold 160 48
Federal Home Loan Bank - overnight deposit 2,102 2,102
Total cash and cash equivalents 56,500 36,241
Securities available-for-sale 15,950 21,653
Securities held-to-maturity (fair values of $21,104 and $26,746) 20,627 25,921
Federal Home Loan Bank stock (at cost) 3,775 4,014
Loans 453,076 454,925
Allowance for loan losses (4,058) (3,891)
Loans, net 449,018 451,034
Premises and equipment, net 3,497 3,577
Cash surrender value of life insurance policies 19,707 19,364
Accrued interest receivable 1,484 1,589
Deferred income tax asset, net 5,149 5,116
Other assets 2,581 2,318
Total assets $ 578,288 $ 570,827
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 50,981 $ 49,165
Interest-bearing 377,814 367,583
Total deposits 428,795 416,748
Short-term borrowings 6,000 8,000
Long-term debt 27,000 25,000
Accrued expenses and other liabilities 8,265 10,541
Total liabilities 470,060 460,289
Stockholders' equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued -- --
Common stock, $0.01 par value; 100,000,000 shares authorized; 6,579,704 and 6,726,904 shares issued and outstanding at March 31, 2013 and September 30, 2012, respectively 66 67
Additional paid-in capital 61,697 63,909
Retained earnings 54,526 55,153
Accumulated other comprehensive income 65 113
Unearned restricted shares; 215,970 and 244,140 shares at March 31, 2013 and September 30, 2012, respectively (3,341) (3,777)
Unearned compensation - ESOP (4,785) (4,927)
Total stockholders' equity 108,228 110,538
Total liabilities and stockholders' equity $ 578,288 $ 570,827
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
Six Months Ended
March 31,
2013 2012 2013 2012
(Unaudited)
(Dollars in thousands, except share data)
Interest and dividend income:
Interest and fees on loans $ 4,619 $ 4,806 $ 9,472 $ 9,673
Interest on debt securities:
Taxable 120 242 270 513
Other interest 26 17 44 41
Dividends on equity securities 4 6 9 9
Total interest and dividend income 4,769 5,071 9,795 10,236
Interest expense:
Interest on deposits 555 686 1,167 1,455
Interest on Federal Home Loan Bank advances 150 140 300 262
Total interest expense 705 826 1,467 1,717
Net interest and dividend income 4,064 4,245 8,328 8,519
Provision for loan losses 80 125 200 250
Net interest and dividend income, after provision for loan losses 3,984 4,120 8,128 8,269
Non-interest income:
Customer service fees 193 206 403 415
Loan servicing fees (costs), net 6 (26) 14 (13)
Net gain on sales of mortgage loans 46 7 147 7
Increase in cash surrender value of life insurance 181 171 343 329
Other income 62 17 73 90
Total non-interest income 488 375 980 828
Non-interest expense:
Salaries and employee benefits 2,403 2,482 4,729 4,607
Occupancy expense 249 244 478 460
Equipment expense 101 112 207 224
Professional fees 177 121 294 224
Advertising expense 108 161 237 308
Data processing expense 211 204 419 400
Deposit insurance expense 61 50 130 110
Other expense 257 206 514 526
Total non-interest expense 3,567 3,580 7,008 6,859
Income before income taxes 905 915 2,100 2,238
Provision for income taxes 360 327 874 825
Net income $ 545 $ 588 $ 1,226 $ 1,413
Weighted-average shares outstanding:
Basic 5,894,114 6,231,753 5,935,215 6,302,352
Diluted 5,914,177 6,236,209 5,973,180 6,304,580
Earnings per common share:
Basic $ 0.09 $ 0.09 $ 0.20 $ 0.22
Diluted $ 0.09 $ 0.09 $ 0.20 $ 0.22
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
2013
December 31,
2012
(Unaudited)
(Dollars in thousands, except share data)
Interest and dividend income:
Interest and fees on loans $ 4,619 $ 4,853
Interest on debt securities:
Taxable 120 150
Other interest 26 18
Dividends on equity securities 4 5
Total interest and dividend income 4,769 5,026
Interest expense:
Interest on deposits 555 612
Interest on Federal Home Loan Bank advances 150 150
Total interest expense 705 762
Net interest and dividend income 4,064 4,264
Provision for loan losses 80 120
Net interest and dividend income, after provision for loan losses 3,984 4,144
Non-interest income:
Customer service fees 193 210
Loan servicing fees, net 6 8
Net gain on sales of mortgage loans 46 101
Increase in cash surrender value of life insurance 181 162
Other income 62 11
Total non-interest income 488 492
Non-interest expense:
Salaries and employee benefits 2,403 2,326
Occupancy expense 249 229
Equipment expense 101 106
Professional fees 177 117
Advertising expense 108 129
Data processing expense 211 208
Deposit insurance expense 61 69
Other expense 257 257
Total non-interest expense 3,567 3,441
Income before income taxes 905 1,195
Provision for income taxes 360 514
Net income $ 545 $ 681
Weighted-average shares outstanding:
Basic 5,894,114 5,975,422
Diluted 5,914,177 6,031,289
Earnings per common share:
Basic $ 0.09 $ 0.11
Diluted $ 0.09 $ 0.11

The following tables set forth average assets, liability and equity account balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

Three Months Ended March 31,
2013 2012
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
(Unaudited)
(Dollars in thousands)
Interest-earning assets:
Loans (2) $ 449,549 $ 4,619 4.11% $ 413,633 $ 4,806 4.65%
Taxable securities (3) 35,566 120 1.35 63,024 242 1.54
Other interest-earning assets 50,678 26 0.21 30,137 17 0.23
FHLB stock 3,958 4 0.40 4,253 6 0.56
Total interest-earning assets 539,751 4,769 3.53 511,047 5,071 3.97
Non-interest-earning assets 36,427 37,945
Total assets $ 576,178 $ 548,992
Interest-bearing liabilities:
Deposits:
Savings $ 53,538 20 0.15 $ 48,052 24 0.20
Money market accounts 155,630 200 0.51 155,579 288 0.74
NOW accounts 37,683 6 0.06 36,600 11 0.12
Term certificates 129,105 329 1.02 125,809 363 1.15
Total deposits 375,956 555 0.59 366,040 686 0.75
FHLB advances 32,911 150 1.82 20,484 140 2.73
Total interest-bearing liabilities 408,867 705 0.69 386,524 826 0.85
Demand deposits 49,945 39,909
Other non-interest-bearing liabilities 9,088 8,530
Total non-interest-bearing liabilities 59,033 48,439
Total liabilities 467,900 434,963
Stockholders' equity 108,278 114,029
Total liabilities and stockholders' equity $ 576,178 $ 548,992
Net interest income $ 4,064 $ 4,245
Net interest rate spread (4) 2.84% 3.12%
Net interest-earning assets (5) $ 130,884 $ 124,523
Net interest margin (6) 3.01% 3.32%
Ratio of interest-earning assets to total interest-bearing liabilities 1.32x 1.32x
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
Six Months Ended March 31,
2013 2012
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
(Unaudited)
(Dollars in thousands)
Interest-earning assets:
Loans (2) $ 451,068 $ 9,472 4.20% $ 411,602 $ 9,673 4.70%
Taxable securities (3) 38,850 270 1.39 59,259 513 1.73
Other interest-earning assets 42,874 44 0.21 26,606 41 0.31
FHLB stock 3,986 9 0.45 4,296 9 0.42
Total interest-earning assets 536,778 9,795 3.65 501,763 10,236 4.08
Non-interest-earning assets 37,108 49,747
Total assets $ 573,886 $ 551,510
Interest-bearing liabilities:
Deposits:
Savings $ 52,161 39 0.15 $ 47,891 48 0.20
Money market accounts 154,320 435 0.56 153,557 565 0.74
NOW accounts 37,381 12 0.06 36,005 22 0.12
Term certificates 128,426 681 1.06 132,403 820 1.24
Total deposits 372,288 1,167 0.63 369,856 1,455 0.79
FHLB advances 32,681 300 1.84 18,929 262 2.77
Total interest-bearing liabilities 404,969 1,467 0.72 388,785 1,717 0.88
Demand deposits 50,299 39,439
Other non-interest-bearing liabilities 9,367 8,644
Total non-interest-bearing liabilities 59,666 48,083
Total liabilities 464,635 436,868
Stockholders' equity 109,251 114,642
Total liabilities and stockholders' equity $ 573,886 $ 551,510
Net interest income $ 8,328 $ 8,519
Net interest rate spread (4) 2.93% 3.20%
Net interest-earning assets (5) $ 131,809 $ 112,978
Net interest margin (6) 3.10% 3.40%
Ratio of interest-earning assets to total interest-bearing liabilities 1.33x 1.29x
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
Three Months Ended
March 31, 2013 December 31, 2012
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate (1)
(Unaudited)
(Dollars in thousands)
Interest-earning assets:
Loans (2) $ 449,549 $ 4,619 4.11% $ 452,554 $ 4,853 4.29%
Taxable securities (3) 35,566 120 1.35 42,062 150 1.43
Other interest-earning assets 50,678 26 0.21 35,656 18 0.20
FHLB stock 3,958 4 0.40 4,014 5 0.50
Total interest-earning assets 539,751 4,769 3.53 534,286 5,026 3.76
Non-interest-earning assets 36,427 37,373
Total assets $ 576,178 $ 571,659
Interest-bearing liabilities:
Deposits:
Savings $ 53,538 20 0.15 $ 50,814 20 0.16
Money market accounts 155,630 200 0.51 153,038 235 0.61
NOW accounts 37,683 6 0.06 37,085 6 0.06
Term certificates 129,105 329 1.02 127,764 351 1.10
Total deposits 375,956 555 0.59 368,701 612 0.66
FHLB advances 32,911 150 1.82 32,457 150 1.85
Total interest-bearing liabilities 408,867 705 0.69 401,158 762 0.76
Demand deposits 49,945 50,643
Other non-interest-bearing liabilities 9,088 9,654
Total non-interest-bearing liabilities 59,033 60,297
Total liabilities 467,900 461,455
Stockholders' equity 108,278 110,204
Total liabilities and stockholders' equity $ 576,178 $ 571,659
Net interest income $ 4,064 $ 4,264
Net interest rate spread (4) 2.84% 3.00%
Net interest-earning assets (5) $ 130,884 $ 133,128
Net interest margin (6) 3.01% 3.19%
Ratio of interest-earning assets to total interest-bearing liabilities 1.32x 1.33x
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.

CONTACT: Maurice H. Sullivan, Jr. (617) 254-0707Source:Peoples Federal Bancshares, Inc.