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News Article | April 25, 2017
Site: globenewswire.com

RUSTON, La., April 25, 2017 (GLOBE NEWSWIRE) -- Century Next Financial Corporation (OTCQB:CTUY), the holding company of Bank of Ruston with $246.4 million in assets, today announced financial results for the 1st quarter ended March 31, 2017. For the three months ended March 31, 2017, Century Next Financial Corporation (the “Company”) had net income after tax of $584,000 compared to net income of $454,000 for the three months ended March 31, 2016, an increase of $130,000 or 28.6%.  Earnings per share (EPS) for the three months ended were $0.56 per basic share and $0.54 per diluted share compared to $0.44 per basic share and $0.43 diluted share reported for the three months ended March 31, 2016. Overall, total assets increased by $7.0 million or 2.93% to $246.4 million at March 31, 2017 compared to $239.4 million at December 31, 2016. The largest component of assets, loans, net of deferred fees and costs and the allowance for loan losses, increased $3.0 million or 1.48% for the three months ended March 31, 2017 compared to December 31, 2016.  Total net loans at March 31, 2017 were $204.5 million compared to $201.5 million at December 31, 2016. The growth was primarily the result of demand for loans secured by real estate including 1-4 family residential, commercial properties, and land loans. Total deposits at March 31, 2017 increased $6.4 million or 3.33% to $197.7 million compared to $191.4 million at December 31, 2016.  Noninterest-bearing checking, interest-bearing checking, and savings deposits were the main growth areas contributing to the increase in overall deposits. Total short-term borrowings were unchanged at $20.0 million at March 31, 2017 compared to December 31, 2016. Net interest income was $2.39 million for the three months ended March 31, 2017 compared to $2.15 million for the three months ended March 31, 2016.  This was an increase of $241,000, or 11.2%.  The increase for the quarter was primarily from interest income earned on loans. The provision for loan losses amounted to $150,000 for the three months ended March 31, 2017, compared to $105,000 in provision for the three months ended March 31, 2016.  The increase in loan loss provision for the quarter, as compared to the prior year quarter, is not a result of increased loss activity but more appropriately a result of increased risk awareness and identification to strengthen the allowance for loan losses. Total non-interest income amounted to $381,000 for the three months ended March 31, 2017 compared to $201,000 for the three months ended March 31, 2016, an increase of $180,000 or 89.6%.  The increase was primarily from income generated from loan servicing release fees and service charges and other fees on deposits. Total non-interest expense increased by $217,000 or 13.9% to $1.78 million for the quarter ended March 31, 2017 compared to $1.57 million for the quarter ended March 31, 2016.  The majority of the increase was due to increased expenses of salaries and benefits.  The Company continues to show improvement in its efficiency ratio, a measure of expense as a percent of total income, to 64.3% for the quarter ended March 31, 2017 compared to 66.5% for the same period in 2016. Century Next Financial Corporation is the holding company for Bank of Ruston (the “Bank”) which conducts business from three full-service banking centers.  The Company was formed in 2010 and is subject to the regulatory oversight of the Board of Governors of the Federal Reserve System. The Bank is a wholly-owned subsidiary and is an insured federally-chartered stock savings association subject to the regulatory oversight of the Office of the Comptroller of the Currency. The Bank was established in 1905 and is headquartered in Ruston, Louisiana. The Bank is a full-service bank with two banking offices in Ruston and one banking office in Monroe. The Bank emphasizes professional and personal banking service directed primarily to small and medium-sized businesses, professionals, and individuals. The Bank provides a full range of banking services including its primary business of real estate lending to residential and commercial customers. Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  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.”  We undertake no obligation to update any forward-looking statements.


DOWNINGTOWN, Pa., April 25, 2017 (GLOBE NEWSWIRE) -- This updated press release announcing results of operations for the quarter ended March 31, 2017 corrects an inadvertent error related to the Company’s non-performing assets and related non-performing loans to total loans ratio (as of December 31, 2016) as noted in the “Asset Quality Summary” narrative below. The asterisked items in the Selected Financial Data (unaudited) table reflect the corrected data. The press release issued April 24, 2017 should be disregarded and is replaced in its entirety by this release. DNB Financial Corporation (Nasdaq:DNBF), today reported net income in accordance with generally accepted accounting principles (“GAAP”) of $2.4 million, or $0.57 per diluted share, for the quarter ending March 31, 2017, compared with $1.6 million, or $0.54 per diluted share, for the same quarter, last year. DNB Financial Corporation (the “Company” or “DNB”) is the parent of DNB First, National Association, one of the first nationally-chartered community banks to serve the greater Philadelphia region.  On October 1, 2016, the Company completed its acquisition of Philadelphia-based East River Bank ("East River") and its results of operations are included in the consolidated results for the quarters ended December 31, 2016 and March 31, 2017, but are not included in the results of operations for the corresponding prior year periods. On a core basis, the Company reported net income of $1.9 million, or $0.45 per diluted share, for the quarter ending March 31, 2017, compared with $1.1 million, or $0.40 per diluted share, for the corresponding prior year quarter.  Core earnings, which is a non-GAAP measure of net income, excludes gains from insurance proceeds of $80,000, purchase accounting adjustments (accretion) of $661,000, merger-related expenses of $51,000, amortization of intangible assets of $23,000, and an associated income tax adjustment of $168,000 for the three months ending March 31, 2017.  Please see the Reconciliation of Non-GAAP Financial Measures on page 6 of the release.  Non-GAAP financial measures include references to the terms “core” or “operating.” William J. Hieb, President and CEO, commented, “The Company delivered another quarter of solid earnings, despite the industry-wide challenge of growing loans.”  Mr. Hieb added, “The investment in deposit gathering capabilities has supported our strategy of funding prudent loan growth with high quality core deposits.  We are particularly pleased with our continued strong credit quality and solid growth of our wealth management business.” Based on core earnings of $1.9 million, the Company’s performance for the quarter ending March 31, 2017 generated a return on average assets (“ROAA”) and return on average tangible common equity (“ROTCE”) of 0.74% and 9.82%, respectively.  The core ROAA and ROTCE were 0.61% and 8.01%, respectively, for the same quarter last year.  Please see the “Reconciliation of Non-GAAP Financial Measures” on page 6 of the release. Total net interest income for the three months ending March 31, 2017 was $9.2 million, which represented a $179,000 decrease from the quarter ending December 31, 2016, and a $3.8 million increase from the three months ending March 31, 2016.  The year-over-year increase was primarily due to a 68.7% rise in total average loans and 52 basis point increase in the net interest margin to 3.67% for the quarter ending March 31, 2017.  The main driver for the increase in both volume and rate was the East River acquisition.  For the first quarter of 2017, the weighted average yield on total interest-earning assets was 4.16%, which included purchase accounting adjustments.  On a core basis, which excludes the purchase accounting fair value marks, the core net interest margin was 3.38%. Total interest expense was $1.3 million for the three months ending March 31, 2017, compared with $1.2 million for the fourth quarter of 2016, and $650,000 for the first quarter of 2016.  The year-over-year increase was primarily due to a higher amount of interest-bearing liabilities, largely due to the East River acquisition. The provision for credit losses was $325,000 for the most recent quarter compared with $100,000 for the three months ended December 31, 2016 and $330,000 for the first quarter of 2016.  As of March 31, 2017, the allowance for credit losses was $5.4 million and represented 0.67% of total loans.  Loans acquired in connection with the purchase of East River have been recorded at fair value based on an initial estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover of the respective portfolio's historical allowance for credit losses.  At March 31, 2017, the allowance for credit losses as a percentage of originated loans, which represents all loans other than those acquired, was 1.04%. Total non-interest income for the first quarter of 2017 was $1.3 million, compared with $2.3 million for the same quarter, last year.  Total non-interest income for the first quarter of 2016, included a $1.15 million gain from the insurance proceeds associated with a fire at one of the Bank’s locations.  On a core basis, non-interest income was approximately 12.9% of total revenue for the quarter ending March 31, 2017.  There were no gains from the sale of securities realized in the first quarter of 2017. Wealth management fees were $374,000 for the first quarter of 2017, compared with $397,000 for the first quarter of 2016.  Wealth management fees represented 29% of total fee income. Non-interest expense was $6.7 million for the first quarter of 2017, compared with $7.3 million for the fourth quarter of 2016, and $5.4 million for the quarter ending March 31, 2016.  Non-interest expense for the quarter ending March 31, 2017 included merger-related costs of $51,000 and $23,000 amortization expense.  Compared with the first quarter of 2016, increases were largely due to addition of East River staff, offices and equipment as well as the aforementioned merger and amortization expense. As of March 31, 2017, total assets were $1.1 billion.  On a sequential quarter basis, total assets increased 1.8% (not annualized) as a $22.0 million increase in cash and cash equivalents was partially offset by a $3.8 million decrease in investment securities and a $1.2 million decline in total loans.  Total deposits increased $20.6 million, or 2.3% (not annualized), on a sequential quarter basis primarily due to growth in core deposits, partially offset by a planned decrease in time deposits.  As of March 31, 2017, total shareholders’ equity was $97.3 million, compared with $94.8 million as of December 31, 2016.  Tangible book value per share was $19.11 as of March 31, 2017, compared with $18.56 as of December 31, 2016. On a sequential quarter basis, total loans decreased $1.2 million, or 0.1% (not annualized), to $816.4 million as of March 31, 2017.  As of the same date, total loans were 74.9% of total assets.  Total average loans, however, were flat on a sequential quarter basis as period-end balances were affected by loan payoffs in the latter part of the quarter.  Loan originations have been prudent and conservative underwriting standards have been maintained. The Company remains challenged to grow commercial-oriented loans in a competitive market characterized by cautious borrower demand. On a sequential quarter basis, total core deposits grew $31.7 million, or 4.7% (not annualized), and were 77.3% of total deposits as of March 31, 2017.  As of the same date, noninterest-bearing deposits – which increased slightly in the first quarter – were 19.5% of total deposits.  Core deposit growth in the first quarter of 2017 was primarily attributable to an increase in money market accounts.  As of March 31, 2017, the loan-to-deposit ratio was 90.1%. Capital ratios continue to exceed regulatory standards for well capitalized institutions.  At March 31, 2017, the tier 1 leverage ratio was 8.75%, the tier 1 risk-based capital was 10.75%, the common equity tier 1 risk-based capital ratio was 9.71% and the total risk based capital ratio was 12.56%. As of the same date, the tangible common equity-to-tangible assets ratio was 7.57%.  Intangible assets were $16.2 million as of March 31, 2017. Asset quality remained solid as net charge-offs were only 0.14% of total average loans for the quarter ending March 31, 2017, compared with 0.01% for the quarter ending December 31, 2016, and 0.08% for the quarter ending March 31, 2016.  Total non-performing assets, including loans and other real estate property, were $12.7 million as of March 31, 2017, compared with $11.3 million as of December 31, 2016.  The ratio of non-performing loans to total loans was 0.94% as of March 31, 2017, versus 1.04% as of December 31, 2016. DNB's strategy has been to seek shorter duration over yield in its lending and investing activities and lengthen duration over rate in its financing activities to minimize interest rate risk.  The Company also strives to offer products and services that develop strong relationships to retain core deposits. The Bank has an Asset Liability Management Committee that actively monitors and manages the bank's interest rate exposure using simulation models and gap analysis. The Committee's primary objective is to minimize the adverse impact of changes in interest rates on net interest income, while maximizing earnings. Simulation model results show moderate liability sensitivity to rising rates in 100, 200, 300 and 400 basis point shock scenarios. Rate changes ramped in over 24 months also show moderate liability sensitivity. DNB Financial Corporation is a bank holding company whose bank subsidiary, DNB First, National Association, is a community bank headquartered in Downingtown, Pennsylvania with 15 locations. DNB First, which was founded in 1860, provides a broad array of consumer and business banking products, and offers brokerage and insurance services through DNB Investments & Insurance, and investment management services through DNB Investment Management & Trust. DNB Financial Corporation's shares are traded on NASDAQ’s Capital Market under the symbol: DNBF. We invite our customers and shareholders to visit our website at https://www.dnbfirst.com. DNB's Investor Relations site can be found at http://investors.dnbfirst.com/. This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations or predictions of future financial or business performance, conditions relating to DNB and East River Bank (“East River”) or other effects of the merger of DNB and East River. These forward-looking statements include statements with respect to DNB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond DNB’s control). The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan" and similar expressions are intended to identify forward-looking statements. In addition to factors previously disclosed in the reports filed by DNB with the Securities and Exchange Commission (the “SEC”) and those identified elsewhere in this document, the following factors, among others, could cause actual results to differ materially from forward looking statements or historical performance: difficulties and delays in integrating the East River business or fully realizing anticipated cost savings and other benefits of the merger; business disruptions following the merger; the strength of the United States economy in general and the strength of the local economies in which DNB conducts its operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the downgrade, and any future downgrades, in the credit rating of the U.S. Government and federal agencies; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; the willingness of users to substitute competitors’ products and services for DNB’s products and services; the success of DNB in gaining regulatory approval of its products and services, when required; the impact of changes in laws and regulations applicable to financial institutions (including laws concerning taxes, banking, securities and insurance); technological changes; additional acquisitions; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms; and the success of DNB at managing the risks involved in the foregoing. Annualized, pro forma, projected and estimated numbers presented herein are presented for illustrative purpose only, are not forecasts and may not reflect actual results. DNB cautions that the foregoing list of important factors is not exclusive. Readers are also cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this press release, even if subsequently made available by DNB on its website or otherwise. DNB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of DNB to reflect events or circumstances occurring after the date of this press release. For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the SEC, including our most recent annual report on Form 10-K, as supplemented by our quarterly or other reports subsequently filed with the SEC.


MIT Sloan Prof. Deborah Lucas, director of the GCFP, stated, "We're very excited about the opportunity to have Dan here. His insights into regulatory policy, its legal foundations, and the workings of the Federal Reserve will be a tremendous resource for faculty members and students across the Institute." She added, "Dan is the leading architect of many of the regulatory changes that were put into place after the financial crisis. His deep theoretical, legal and practical knowledge, together with his enthusiasm for engaging with academics on cutting-edge regulatory issues, will help spark new ideas at the Center as we map out our research agenda on financial regulation." In addition to his talk to the broader MIT community, Tarullo plans several smaller discussions with MIT faculty and students. In particular, he plans to meet with faculty and PhD students about new research questions related to the institutions of financial regulation as well as hold a fireside chat with students. Tarullo served as a member of the Board of Governors of the Federal Reserve System since 2009. Appointed to the Board by President Obama, he served as chairman of the Board's Committee on Supervision and Regulation and was chairman of the Financial Stability Board's Standing Committee on Supervisory and Regulatory Cooperation. Previously, Tarullo was a professor of law at Georgetown University Law Center, where he taught international financial regulation, international law, and banking law. He also held several senior positions in the Clinton administration and served on the staff of the late Senator Edward M. Kennedy. In a press release from the Federal Reserve announcing his resignation, Chair Janet L. Yellen stated, "Dan led the Fed's work to craft a new framework for ensuring the safety and soundness of our financial system following the financial crisis and made invaluable contributions across the entire range of the Fed's responsibilities. My colleagues and I will truly miss his deep expertise, impeccable judgment, wise insight, and strategic counsel." Members of the media are invited to his April 26 talk to the MIT community, but pre-registration is required. For more information or to register for the event, contact Deirdre Wade at deirdre@mit.edu. About the MIT GCFP The mission of the MIT GCFP is to serve as a catalyst for innovative, cross-disciplinary and nonpartisan research and educational initiatives that address the unique challenges facing governments in their role as financial institutions and as regulators of the financial system. The GCFP is managed by MIT Sloan's Finance Group under the leadership of Prof. Deborah Lucas (director), Doug Criscritello (executive director); and codirectors Prof. Andrew Lo, Prof. Robert Merton, and Prof. Jonathan Parker. Research initiatives supported by the Center are organized into three main tracks: evaluation and management of government financial institutions; regulation of financial markets and institutions; and measurement and management of risk. Through its educational initiatives, the Center also seeks to provide greater access to the tools of modern financial analysis to current and future regulators, policymakers, and other public-sector stakeholders. About the MIT Sloan School of Management The MIT Sloan School of Management is where smart, independent leaders come together to solve problems, create new organizations, and improve the world. Learn more at mitsloan.mit.edu. For further information, contact: Paul Denning Director of Media Relations 617-253-0576 denning@mit.edu To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/former-federal-reserve-governor-daniel-tarullo-joins-mit-golub-center-as-distinguished-fellow-300442050.html


News Article | May 23, 2017
Site: www.prnewswire.com

Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.26 billion asset bank holding company headquartered in Mount Laurel, New Jersey.  Its primary subsidiary is Sun National Bank, a community bank serving customers throughout New Jersey and the metro New York region.  Sun National Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC.  For more information about Sun National Bank and Sun Bancorp, Inc., visit www.sunnationalbank.com. The foregoing material contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, which may be identified by the use of such words as "allow," "anticipate," "believe," "continues," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan,"   "potential," "predict," "project," "reflects," "should," "typically," "usually," "view," "will," "would," and similar terms and phrases, including references to assumptions.  Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Company and the Bank, the banking industry, the economy in general, expectations of the business environment in which the Company operates, projections of future performance and other statements contained herein that are not historical facts.  These remarks are based upon current management expectations, and may, therefore, involve risks and uncertainties that cannot be predicted or quantified and are beyond the Company's control and are subject to a variety of uncertainties that could cause future results to vary materially from the Company's historical performance, or from current expectations.  Factors that could cause actual results to differ from those expressed or implied by such forward-looking statements include, but are not limited to: (i) the Company's ability to attract and retain key management and staff; (ii) changes in business strategy or an inability to successfully execute strategy due to the occurrence of unanticipated events; (iii) the ability to attract deposits and other sources of liquidity; (iv) changes in the financial performance and/or condition of the Bank's borrowers; (v) changes in consumer spending, borrowing and saving habits; (vi) the ability to increase market share and control expenses; (vii) changes in estimates of future loan loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (viii) local, regional and national economic conditions and events and the impact they may have on the Company and its customers; (ix) volatility in the credit and equity markets and its effect on the general economy; (x) the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs; (xi) the overall quality of the composition of the Company's loan and securities portfolios; (xii) inflation, interest rate, securities market and monetary fluctuations;(xiii) legislative and regulatory changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the implementing regulations, changes in banking, securities and tax laws and regulations and their application by regulators and changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; (xiv) the effects of, and changes in, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; (xv) competition among providers of financial services; (xvi) other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services and the other risks detailed under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form 10-K for the fiscal year ended December 31, 2016 and in other filings made pursuant to the Securities Exchange Act of 1934, as amended.  No undue reliance should be placed on any forward-looking statements.  The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any such forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sun-bancorp-inc-announces-redemption-of-40-million-of-trust-preferred-securities-300462598.html


News Article | January 30, 2017
Site: globenewswire.com

SIOUX FALLS, S.D., Jan. 30, 2017 (GLOBE NEWSWIRE) -- Meta Financial Group, Inc.® (Nasdaq:CASH) (“MFG,” “Meta” or the “Company”) Financial Highlights for the 2017 fiscal first quarter ended December 31, 2016 "We are excited that we closed two separate FinTech acquisitions during the first quarter of fiscal 2017," said Chairman and CEO J. Tyler Haahr. "In early November, we acquired EPS Financial and have already seen positive effects from this transaction. Then in mid-December, we closed the acquisition with SCS. We welcome EPS President Clark Gill and the entire EPS team along with SCS CEO Brent Turner and the SCS team to the Meta family. We believe that these transactions solidify Meta as a leader in the tax payments industry. "Much to our satisfaction, we didn't stop with the EPS and SCS acquisitions during the quarter, as we entered into agreements with both H&R Block and Jackson Hewitt. Meta will provide underwriting services, servicing and funding for interest-free refund advance loans for H&R Block customers throughout the 2017 tax season. Our agreement with Jackson Hewitt includes underwriting, servicing and originating Express Refund Advances to Jackson Hewitt customers during the upcoming tax season. Our collective tax businesses will see a significantly increased expense burden in the first and fourth quarters of fiscal year 2017, with approximately 85% to 90% of tax-related income expected to come in during the second quarter. The levels of income and expenses during the first quarter of fiscal 2017 were in line with our expectations. While it is too early in the tax season to accurately predict volume levels, we believe that our infrastructure and funding capacity is well prepared for the upcoming peak period. Meta is excited about these business developments and we are looking forward to continuing Meta's success into 2017 and beyond.” Total revenue for the fiscal 2017 first quarter was $39.2 million, compared to $34.4 million for the same quarter in 2016, an increase of $4.8 million, or 14%, primarily due to growth in card fee income, income from tax-exempt securities (included in other investment securities), and interest from loans, which was partially offset, as expected, by delayed securities purchases and higher cash balances. The Company recorded net income of $1.2 million, or $0.14 per diluted share, for the three months ended December 31, 2016, compared to net income of $4.1 million, or $0.49 per diluted share, for the three months ended December 31, 2015. The decrease in net income was due to an increase of $6.7 million in non-interest expense, partially offset by increases of $2.3 million in net interest income and $2.5 million in non-interest income. The 2017 fiscal first quarter pre-tax results included $1.5 million of amortization of intangibles and $1.0 million of acquisition related expenses. In preparation for the upcoming tax season, 2017 first quarter pre-tax results also included $1.2 million in securities losses, and $1.0 million in direct tax season startup expenses, which consisted primarily of legal and wholesale deposit interest expense. In addition, pre-tax results included $1.2 million in named executive officer ("NEO") non-cash stock related compensation associated with stock awards granted in connection with the Company's three highest paid executives signing long-term employment agreements to solidify their long term commitment to the Company. These stock awards vest over eight years. We expect non-cash stock related compensation associated with these agreements to be $8.0 million in fiscal year 2017 and $5.1 million in fiscal year 2018. The 2017 fiscal first quarter results highlight the increased seasonality of the Company's revenue due to the addition of the aforementioned tax-related acquisitions and agreements. Our tax divisions are expected to continue to generate the vast majority of their revenues in the Company's fiscal second quarter, with some additional revenues in the third quarter, while most expenses are spread throughout the year with some additional elevated expenses in the December and March quarters. Net interest income for the fiscal 2017 first quarter was $19.8 million, up $2.3 million, or 13%, from the same quarter in 2016, primarily due to increases in volume and rate in tax exempt and asset backed investments and continued sizable loan growth funded by non-interest bearing prepaid deposit growth.  Additionally, the overall increase was driven by a better mix and higher percentage of loans and higher yielding investments primarily in high credit quality tax-exempt municipal bonds.  While the Company carried a higher than typical cash balance due to testing and implementation of new funding programs to support the interest-free refund advance loans, overall net interest income was not materially affected as the funding costs were similar to the rate earned on excess cash balances. However, due to the student loan portfolio purchase and tax-related lending, the Company deferred significant securities purchases that would have historically taken place in the August to December months. As a result of the deferral of securities purchases, net interest income was negatively affected, as compared to the comparable prior fiscal year period. Given the significant, recent increase in interest rates, we expect these deferred purchases, which the Company anticipates will take place in February and March, will have significantly higher yields, providing a strong positive effect on earnings going forward. Net Interest Margin ("NIM") decreased from 3.21% in the fiscal 2016 first quarter to 2.90% in the 2017 first quarter. Excluding the subordinated debt issuance in 2016, NIM would have been 13 basis points higher for the quarter. As mentioned above, NIM during the 2017 first quarter was adversely impacted as the Company carried a higher than typical cash balance due to testing and implementation of new funding programs to support the interest-free tax refund advance lending program.  Removing the excess cash and its corresponding funding cost, the Company estimates NIM would have been an additional approximate 13-17 basis points higher. While the subordinated debt issuance in 2016 increased the cost of funds at the Company level, MetaBank's cost of funds remained at levels much lower than the overall Company cost of funds, though somewhat higher than historical levels due to preparation for the new tax season funding programs.  The overall tax equivalent yield (“TEY”) on average earning asset yields decreased by 9 basis points when comparing the fiscal 2017 first quarter to the 2016 first quarter, primarily due to the aforementioned higher cash balance.  Adjusting for a more normalized cash balance, the Company estimates the TEY earning asset yield would have been between 15 to 18 basis points higher. We believe that the Company's expanded portfolio of floating rate assets provides a runway for higher NIM levels should short-term interest rates continue to rise. The Company also seeks to remain diligent and disciplined when evaluating loan pool deal flow to continue to optimize the deployment of our national, non-interest bearing deposit base. We anticipate that many of these loan pools could add immediate earnings accretion with acceptable risk parameters, as we believe to be the case with the recent student loan portfolio purchase. In that respect, while the addition of the student loan portfolio did not materially affect NIM or the TEY on average earning assets in the current quarter as the portfolio purchase was completed near the end of the quarter, the impact should be positive going forward. The fiscal 2017 first quarter TEY on the securities portfolio increased by two basis points compared to the comparable prior year fiscal quarter primarily due to a shifting mix in the investment portfolio with new investments in overall higher yielding investment securities rather than mortgage-backed securities ("MBS").  We also expect margins to increase in 2017 with slower premium amortization on the MBS portfolio due to recent higher rates. The Company’s average interest-earning assets for the fiscal 2017 first quarter grew by $719.8 million, or 29%, to $3.22 billion, from the same quarter in 2016, primarily from growth in tax exempt investment securities, loan portfolios, and cash and fed funds sold of $230.3 million, $147.9 million, and $140.8 million, respectively. Overall, the cost of funds for all deposits and borrowings averaged 0.36% during the fiscal 2017 first quarter, compared to 0.12% for the 2016 first quarter, primarily due to the issuance of the Company's subordinated debt in 2016 and the testing and implementation of additional funding programs throughout the quarter. Notwithstanding this increase, the Company believes that its growing, low-cost deposit base gives it a distinct and significant competitive advantage over most banks, and even more so if interest rates rise, because the Company anticipates that its cost of funds will likely remain relatively low, increasing less than at many other banks. Average earning assets for the three months ended December 31, 2016 increased 29% from the comparable prior year period, while interest-bearing liabilities increased by 61% related to the wholesale deposits described above. The TEY of MBS and other investments was 2.92% for the three months ended December 31, 2016, and 2.90% for the same period in 2015, and is expected to increase further early in 2017 because of the recent increase in rates. Fiscal 2017 first quarter non-interest income of $19.3 million increased $2.5 million, or 15%, from $16.8 million in the same quarter of 2016, primarily due to an increase in card fee income of $3.2 million, or 21%, mainly from new and existing business partners and sales promotions from one of our largest business partners. This increase was partially offset by a loss on the sale of securities of $1.2 million. Non-interest expense increased $6.7 million, or 22%, to $36.8 million for the 2017 fiscal first quarter, compared to the same quarter in 2016.  Between these quarters, compensation expense increased $3.2 million, legal and consulting expense increased $1.6 million due primarily to the aforementioned acquisitions and loan funding transactions, other expense increased $0.6 million, occupancy and equipment expense increased $0.6 million and amortization expense increased $0.3 million, primarily due to the recent acquisitions. The increase in compensation was primarily due to the EPS and SCS acquisitions, non-cash stock related compensation associated with three NEOs signing long-term employment agreements, and additional staffing to support the Company’s growth initiatives. We expect the growth rate in compensation expense to decrease during the remainder of 2017 as staffing levels grow more modestly. Income tax expense for the fiscal 2017 first quarter was $0.3 million, or an effective tax rate of 21.6%, compared to a tax benefit of $0.5 million, or an effective tax rate of (12.9)%, for the 2016 first quarter. The increase in the effective tax rate is mainly due to increased annual projected taxable earnings for the fiscal 2017 year and the effective tax rate is expected to stay approximately at that level for the remainder of fiscal 2017. Total loans receivable, net of allowance for loan losses, increased $369.9 million, or 50%, from December 31, 2015 to December 31, 2016.  Among lending categories, this included a $138.3 million increase in consumer, $134.0 million of which was due to the student loan portfolio purchase, and a $118.4 million increase, or 37%, in commercial real estate, partially offset by a $7.0 million decrease, or 7%, in total agricultural loans. Premium finance loans increased $68.9 million, or 62%, from December 31, 2015 to December 31, 2016. Retail bank loans increased $158.4 million, or 26%, from December 31, 2015 to December 31, 2016. Excluding the purchased student loan portfolio, total loans receivable, net of allowance for loan losses, were up $236.0 million, or 32%, from December 31, 2015 to December 31, 2016. The Company recorded a provision for loan losses of $0.8 million during the three months ended December 31, 2016, primarily related to loan growth. The Company’s allowance for loan losses was $1.0 million, or 0.1% of total loans, at December 31, 2016, compared to an allowance of $0.8 million, or 0.1% of total loans, at September 30, 2016. MetaBank’s NPAs at December 31, 2016 were $2.3 million, representing 0.05% of total assets, compared to $6.6 million and 0.22% of total assets at December 31, 2015 and $1.2 million and 0.03% at September 30, 2016. Consistent with December 31, 2015 and September 30, 2016, the Payments segment did not include any NPAs at December 31, 2016. Total investment securities and MBS increased by $325.5 million, or 19%, to $2.08 billion at December 31, 2016, as compared to December 31, 2015. This included an increase in investment securities of $312.9 million, primarily from purchases of high credit quality non-bank qualified (“NBQ”) municipal securities and government-related asset-backed securities, and an increase in MBS of $12.6 million as purchases exceeded sales and pay downs. Average TEY on the securities portfolio increased two basis points in the first quarter of fiscal 2017 from the same quarter of 2016.  Overall TEY yields increased by five basis points on non-MBS investment securities over that same time period.  Yields decreased within MBS by 27 basis points in the first quarter of 2017 from the same quarter of 2016 due to the significant downward movement in longer term interest rates in late fiscal 2016 and the time it takes for rate increases late in the calendar year to funnel through the mortgage and refinancing market. The Company anticipates prepayments on its MBS holdings to decrease meaningfully by no later than March 2017, due to the recent increase in longer term rates, thereby slowing premium amortization and increasing yields and income realized from the MBS portfolio. For example, the Company estimates, based on projections provided by the Yield Book software in concert with management assumptions, on its fixed rate MBS portfolio as of December 31, 2016, in the base (Yield Book lifetime projected speeds at current rates) and in a +50 and +100 immediate, parallel shocked interest rate environment, interest earned on its fixed rate MBS securities and reinvested principal at market rates over one year’s time would increase by $3.48 million, $3.98 million and $4.45 million, respectively, from the current, historical three-month CPR income amount. MBS duration extension is also muted with extension expectations near 1.5 years in a +300 immediate, parallel interest rate shocked environment. The focus of the MBS portfolio remains on minimizing prepayment speed volatility by selecting agency MBS with characteristics intended to make the Company’s agency MBS holdings less susceptible to increased prepayment speeds, while still allowing yields to increase if interest rates increase with controlled extension risk. The Company continues to purchase high-quality investments within certain sectors of the municipal market, at what it believes to be attractive yields. Many of these new purchases are tax-exempt and also backed, or collateralized, by Ginnie Mae, Fannie Mae, and Freddie Mac, thereby enhancing credit quality. The Company also has opportunistically and carefully selected certain government related and guaranteed floating rate securities at yields that are expected to enhance the portfolio's projected performance in a rising interest rate environment. The Company continues to execute its investment strategy of primarily purchasing U.S. Government-related securities and U.S. Government-related MBS, as well as AAA and AA rated NBQ municipal bonds; however, the Company is also reviewing opportunities to add other diverse, high-quality securities at attractive relative rates when opportunities arise.  With the Company’s large percentage of non-interest bearing deposits, the TEY for these NBQ bonds is higher than a similar term investment in other investment categories of similar risk and higher than many other banks can realize on the same instruments due to the Company’s current cost of funds and its projected cost of funds if interest rates rise. Total end-of-period deposits increased $1.23 billion, or 51%, to $3.66 billion at December 31, 2016, compared to September 30, 2016. The increase in end-of-period deposits is primarily a result of wholesale deposits executed by the Company during the fiscal 2017 first quarter to prepare for the upcoming tax season and the student loan portfolio purchase. Total wholesale deposits at December 31, 2016 were $927.0 million. Total average deposits for the fiscal 2017 first quarter increased by $712.4 million, or 36%, compared to the same period in 2016; a portion of the growth is directly related to the testing and implementation of new funding programs to support the interest-free refund advance loans. Average non-interest bearing deposits for the 2017 first quarter were up $298.2 million, or 17%, compared to the same period in 2016. The Company experienced some volatility in the growth rate of its Meta Payment Systems (MPS)-related non-interest bearing deposits as a one-time program expires and the timing of new programs begins to accelerate, though long-term growth rates are expected to remain strong. The average balance of total deposits and interest-bearing liabilities was $3.06 billion for the three-month period ended December 31, 2016, compared to $2.38 billion for the same period in fiscal 2016. A portion of this increase was due to the previously mentioned testing and implementation of new funding programs as well as the Company's completion of the public offering of its subordinated notes in August 2016, which are due August 15, 2026. For the fiscal 2017 first quarter, Payments recorded income before tax of $0.7 million, compared to $1.2 million during the same period last year. As expected, our combined tax businesses (Refund Advantage, EPS, and SCS) incurred a pre-tax loss of $4.7 million during the quarter, compared to a loss of $1.6 million during the same quarter of the prior year. Total first quarter 2017 average Payments-generated deposits increased by $280.2 million, or 16%, compared to the same quarter in 2016. The Banking segment recorded income before tax of $5.2 million for the first quarter of fiscal 2017, compared to $3.5 million in the first quarter of 2016. This increase is primarily driven by the increase in interest income of $1.9 million as a result of growth in our loan portfolio. The Company and the Bank remain above the federal regulatory minimum capital requirements to remain classified as well-capitalized institutions. Regulatory capital ratios are stated in the table below. The tables below also include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analysis. The following table provides certain non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP: (1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes are being fully phased in through the end of 2021. The following table provides a reconciliation of tangible common equity used in calculating tangible book value data. Due to the predictable, quarterly cyclicality of MPS deposits in conjunction with tax season business activity, management believes that a six-month capital calculation is a useful metric to monitor the Company’s overall capital management process. As such, the Bank’s six-month average Tier 1 leverage ratio, Common equity Tier 1 capital ratio, Tier 1 capital ratio, and Total qualifying capital ratio as of December 31, 2016 were 9.80%, 21.14%, 21.14%, and 21.58%, respectively. The Company and MetaBank (the “Bank”) may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and Exchange Commission (“SEC”), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.  Such statements address, among others, the following subjects: the potential benefits of the acquisitions of assets from SCS and EPS, including, but not limited to, whether such acquisitions may increase the Company's growth; future operating results; customer retention; loan and other product demand; important components of the Company's statements of financial condition and operations; growth and expansion; new products and services, such as those offered by the Bank or MPS, a division of the Bank; credit quality and adequacy of reserves; technology; and the Company's employees. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: the risk that the businesses of the Bank, EPS and SCS may not be combined successfully, or any such combination may take longer or be more difficult, time-consuming or costly to accomplish than expected; the risk that sales of EPS and SCS products by the Bank may not be as high as anticipated; the risk that the expected growth opportunities or cost savings from the EPS and SCS acquisitions may not be fully realized or may take longer to realize than expected, that customer losses and business disruption following the EPS and SCS acquisitions, including adverse effects on relationships with former or current employees of EPS and SCS, may be greater than expected; the risk that the Company may incur unanticipated or unknown losses or liabilities in connection with the EPS and SCS acquisitions; the risk that loan production levels and other anticipated benefits related to the recent agreements signed with H&R Block and Jackson Hewitt may not be as much as anticipated, and that the Company may incur unanticipated or unknown risks, losses or liabilities in connection with such transactions; maintaining our executive management team; the strength of the United States' economy, in general, and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), as well as efforts of the United States Treasury in conjunction with bank regulatory agencies to stimulate the economy and protect the financial system; inflation, interest rate, market, and monetary fluctuations; the timely development of, and acceptance of new products and services offered by the Company, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value of these products and services by users; the risks of dealing with or utilizing third parties; any actions which may be initiated by our regulators in the future; the impact of changes in financial services laws and regulations, including, but not limited to, laws and regulations relating to the tax refund industry and the insurance premium finance industry, our relationship with our primary regulators, the Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve, as well as the Federal Deposit Insurance Corporation (“FDIC”), which insures the Bank’s deposit accounts up to applicable limits; technological changes, including, but not limited to, the protection of electronic files or databases; acquisitions; litigation risk, in general, including, but not limited to, those risks involving the Bank's divisions; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by the Bank of its status as a well-capitalized institution, particularly in light of our growing deposit base, a substantial portion of which has been characterized as “brokered”; changes in consumer spending and saving habits; and the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase. The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2016, and in other filings made with the SEC. The Company expressly disclaims any intent or obligation to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances or future events or for any other reason. The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Only the yield/rate have tax equivalent adjustments. Non-Accruing loans have been included in the table as loans carrying a zero yield. *Specialty Finance Loan Receivables include loan portfolios the Company deems as non-retail bank product offerings or loans not generated by the Retail Bank itself (for example, premium finance and purchased loan portfolios). The loan receivables included in this line item are included in the customary loan categories presented elsewhere within the Company's SEC filings. Meta Financial Group, Inc. ("MFG") is the holding company for MetaBank®, a federally chartered savings bank. MFG shares are traded on the NASDAQ Global Select Market® under the symbol CASH. Headquartered in Sioux Falls, S.D., MetaBank operates in both the Banking and Payments industries through: MetaBank, its traditional retail banking operation; Meta Payment Systems, its electronic payments division; AFS/IBEX, its insurance premium financing division; and Refund Advantage, EPS and SCS, its tax-related financial solutions divisions. For more information about Meta Financial Group, visit metafinancialgroup.com.


HELENA, Mont., Feb. 13, 2017 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) (the “Company”), holding company for Opportunity Bank of Montana (the “Bank”), today announced that it has sold $10 million in senior unsecured notes (the “Notes”) in a private placement offering.  The Notes were issued on February 13, 2017, bear a fixed rate of interest of 5.75% per annum, payable semi-annually, and mature on February 15, 2022. The Company estimates that the net cash proceeds from the sale of the Notes will be approximately $9.8 million.  The Company intends to use the net proceeds from the offering for general corporate purposes, including but not limited to, contribution of capital to the Bank to support both organic growth as well as opportunistic acquisitions.  The Notes issued by the Company also received a rating of “A-” from Egan-Jones Rating Company. "This growth capital gives us an opportunity to continue to build out our business plan of strong organic growth, and meet the growing demand from our customers and communities,” said Peter J. Johnson, President and Chief Executive Officer of the Company. “Senior unsecured Notes are a cost effective way to provide funding for our subsidiary bank.  We are also very pleased to have obtained a strong rating from Egan-Jones.” This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.  The above referenced securities offered and sold by the Company have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an exemption from registration. Brean Capital, LLC in New York served as placement agent for the private offering. Holland & Knight LLP served as the Company's legal counsel and Schulte, Roth and Zabel LLP served as Brean's legal counsel in this offering. Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in southern Montana through 13 banking offices. Additional information is available on the bank’s website at www.opportunitybank.com. Shares of Eagle Bancorp Montana, Inc. common stock are traded on the NASDAQ Global Select Market under the symbol “EBMT”. The statements contained herein that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company.  Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.  There can be no assurance that future developments affecting the Company will be the same as those anticipated by management.  The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.  These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors’ products and services for the Company’s products and services; the impact of changes in financial services policies, laws and regulations (including the Dodd-Frank Wall Street Reform and Consumer Protection Act) and of governmental efforts to restructure the U.S. financial regulatory system; technological changes; the effect of acquisitions that the Company may make, if any, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from its acquisitions; changes in the level of the Company’s nonperforming assets and charge-offs; the supply and value of Montana real estate, both residential and commercial; the effect of changes in accounting policies and practices, as may be adopted from time-to-time by bank regulatory agencies, the Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; ability to attract deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; unanticipated regulatory or judicial proceedings; and the Company’s ability to manage the risks involved in the foregoing.  Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the 2015 Annual Report on Form 10-K of Eagle Bancorp Montana, Inc. filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov). The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.


News Article | February 28, 2017
Site: www.businesswire.com

PASADENA, Calif.--(BUSINESS WIRE)--Green Dot Corporation [NYSE:GDOT] today announced that it has completed the previously announced acquisition of UniRush, LLC. Green Dot Corporation, along with its wholly owned subsidiary bank, Green Dot Bank, is a bank holding company regulated by the Board of Governors of the Federal Reserve System and the Utah Department of Financial Institutions. Green Dot is widely recognized as the inventor of the prepaid debit card industry and is the largest provider of reloadable prepaid debit cards and cash reload processing services in the United States. Green Dot is also a leading financial technology company and the largest processor of tax refund disbursements in the U.S. through its wholly owned subsidiary, TPG. Green Dot is also a leading provider of mobile banking with its GoBank checking account sold at retailers nationwide and through integrated technology partners. Green Dot's products and services are available to consumers through a distribution network of more than 100,000 U.S. locations, as well as online, in the leading app stores and through leading online tax preparation providers. Headquartered in Pasadena, Calif., it has additional facilities throughout the United States and in Shanghai, China. UniRush, LLC, which helped pioneer the prepaid debit card industry with the Prepaid Visa RushCard, one of the first general purpose reloadable prepaid debit cards in the marketplace, provides members with access to services that enable them to achieve their personal and financial goals. UniRush offers Americans an array of basic financial services via the RushCard. To learn more about the RushCard, visit www.rushcard.com or find us at Facebook.com/Rushcard or on Twitter @RushCard.


Schmeiser M.D.,Board of Governors of the Federal Reserve System
Health Economics | Year: 2012

Participation in the SUPPL.emental Nutrition Assistance Program (SNAP) reached an all-time high of 40.2 million persons in March 2010, which means the program affects a substantial fraction of Americans. A significant body of research has emerged suggesting that participation in SNAP increases the probability of being obese for adult women and has little effect on the probability for adult men. However, studies addressing the effects of participation on children have produced mixed results. This paper examines the effect of long-term SNAP participation on the Body Mass Index (BMI) percentile and probability of being overweight or obese for children ages 5-18 using data from the National Longitudinal Survey of Youth 1979 Children and Young Adults data set. An instrumental variables identification strategy that exploits exogenous variation in state-level program parameters, as well as state and federal expansions of the Earned Income Tax Credit (EITC), is used to address the endogeneity between SNAP participation and obesity. SNAP participation is found to significantly reduce BMI percentile and the probability of being overweight or obese for boys and girls ages 5-11 and boys ages 12-18. For girls ages 12-18, SNAP participation appears to have no significant effect on these outcomes. © 2011 John Wiley & Sons, Ltd.


LEWISTON, Maine, Jan. 30, 2017 (GLOBE NEWSWIRE) -- Northeast Bancorp (“Northeast” or the “Company”) (NASDAQ:NBN), a Maine-based full-service financial services company and parent of Northeast Bank (the “Bank”), today reported net income of $3.1 million, or $0.35 per diluted common share, for the quarter ended December 31, 2016, compared to net income of  $1.7 million, or $0.18 per diluted common share, for the quarter ended December 31, 2015. Net income for the six months ended December 31, 2016 was $4.9 million, or $0.54 per diluted common share, compared to $3.6 million, or $0.38 per diluted common share, for the six months ended December 31, 2015. The Board of Directors has also declared a cash dividend of $0.01 per share, payable on February 28, 2017 to shareholders of record as of February 15, 2017. “I am very pleased with the progress we made this quarter,” said Richard Wayne, President and Chief Executive Officer. “We reached a great milestone for the Company by surpassing $1 billion in assets and we also achieved record earnings of 35 cents per share.  In addition, we had solid loan volume, purchased loan transactional income and SBA gains. Our Loan Acquisition and Servicing Group produced $91.7 million of loans, our SBA Division closed $25.3 million of loans, the purchased loan portfolio yielded 13%, and the SBA gain on sale was $1.7 million. This balance sheet growth and solid income from the Loan Acquisition and Servicing Group and the SBA Division helped drive our efficiency ratio to 61.7%.” As of December 31, 2016, total assets were $1.0 billion, an increase of $26.5 million, or 2.7%, from total assets of $986.2 million as of June 30, 2016. The principal components of the change in the balance sheet follow: 1. The loan portfolio – excluding loans held for sale – has grown by $74.5 million, or 10.8%, compared to June 30, 2016, principally on the strength of $70.7 million of net growth in commercial loans purchased or originated by the Bank’s Loan Acquisition and Servicing Group (“LASG”) and net growth of $13.2 million in originations by the Bank’s Small Business Administration and United States Department of Agriculture (“SBA”) Division. This net growth was offset by a $9.4 million decrease in the Bank’s Community Banking Division loan portfolio. Loans generated by the LASG totaled $91.7 million for the quarter ended December 31, 2016. The growth in LASG loans consisted of $46.0 million of purchased loans, at an average price of 90.1% of unpaid principal balance, and $45.7 million of originated loans. SBA loans closed during the quarter totaled $25.3 million, of which $24.7 million were fully funded in the quarter. In addition, the Company sold $17.5 million of the guaranteed portion of SBA loans in the secondary market, of which $9.3 million were originated in the current quarter and $8.2 million were originated or purchased in prior quarters. Residential loan production sold in the secondary market totaled $17.7 million for the quarter. As previously discussed in the Company’s SEC filings, the Company made certain commitments to the Board of Governors of the Federal Reserve System in connection with the merger of FHB Formation LLC with and into the Company in December 2010. The Company’s loan purchase and commercial real estate loan availability under these conditions follow: An overview of the Bank’s LASG portfolio follows: 2. Deposits increased by $34.2 million, or 4.2% for the quarter, attributable primarily to growth in non-maturity (demand, savings and interest checking, and money market) accounts, which increased by $20.3 million, or 4.2%, as well as an increase in time deposits of $13.8 million, or 4.3%. For the six months ended December 31, 2016, deposits increased $39.1 million, or 4.9%, due to growth in non-maturity accounts of $54.7 million, or 12.2%, offset by a decrease in time deposits of $15.6 million, or 4.4%. 3. Shareholders’ equity decreased by $1.6 million from June 30, 2016, primarily due to the $6.9 million in share repurchases (representing 645,238 shares), offset by earnings of $4.9 million. Additionally, there was stock-based compensation of $483 thousand, a decrease in accumulated other comprehensive loss of $141 thousand and $181 thousand in dividends paid on common stock. Net income increased by $1.4 million to $3.1 million for the quarter ended December 31, 2016, compared to $1.7 million for the quarter ended December 31, 2015. 1. Net interest and dividend income before provision for loan losses increased by $1.7 million for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015. The increase is primarily due to higher average balances in the total loan portfolio and higher transactional income on purchased loans.  This increase was partially offset by higher rates and volume in our deposit portfolio and the effect of the issuance of subordinated debt. The various components of transactional income are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the three and six months ended December 31, 2015, transactional income increased by $331 thousand and decreased by $552 thousand, respectively. The following table summarizes interest income and related yields recognized on the loan portfolios: The yield on purchased loans for the quarter ended December 31, 2016 was 13.0% as compared to 12.7% in the quarter ended December 31, 2015, primarily due to higher transactional income in the quarter. The following table details the total return on purchased loans: 2. Noninterest income increased by $1.1 million for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015, principally due to an increase in gains realized on sale of SBA loans of $1.1 million. 3. Noninterest expense increased by $760 thousand for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015, primarily due to the following: As of December 31, 2016, nonperforming assets totaled $13.3 million, or 1.32% of total assets, as compared to $9.5 million, or 0.96% of total assets, as of June 30, 2016.  The increase primarily relates to one loan placed on non-accrual in the quarter ended December 31, 2016, as well as one loan added to other real estate owned in the quarter ended September 30, 2016. As of December 31, 2016, past due loans totaled $21.9 million, or 2.85% of total loans, compared to $6.9 million, or 1.00% of total loans as of June 30, 2016. The increase is primarily due to the following: As of December 31, 2016, the Company’s Tier 1 Leverage Ratio was 12.6%, compared to 13.3% at June 30, 2016, and the Total Capital Ratio was 18.3%, a decrease from 20.4% at June 30, 2016. The decrease resulted primarily from loan growth and the effect of purchases under the Company’s share repurchase program. Investor Call Information Richard Wayne, Chief Executive Officer of Northeast Bancorp, and Brian Shaughnessy, Chief Financial Officer of Northeast Bancorp, will host a conference call to discuss second quarter earnings and business outlook at 10:00 a.m. Eastern Time on Tuesday, January 31st. Investors can access the call by dialing 877.878.2762 and entering the following passcode: 49922895. The call will be available via live webcast, which can be viewed by accessing the Company’s website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.  About Northeast Bancorp Northeast Bancorp (NASDAQ:NBN) is the holding company for Northeast Bank, a full-service bank headquartered in Lewiston, Maine. We offer traditional banking services through the Community Banking Division, which operates ten full-service branches that serve customers located in western, central, and southern Maine. From our Maine and Boston locations, we also lend throughout the New England area. Our Loan Acquisition and Servicing Group (“LASG”) purchases and originates commercial loans on a nationwide basis. In addition, our SBA Division supports the needs of growing businesses nationally. ableBanking, a division of Northeast Bank, offers savings products to consumers online. Information regarding Northeast Bank can be found on its website at www.northeastbank.com. Non-GAAP Financial Measures In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, and total return. Northeast’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Forward-Looking Statements Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Northeast believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers’ ability to service and repay our loans; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; the risk that the Company may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Company’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K and updated by the Company’s Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. These statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.


Flexibility for use of funds sets this effort apart from traditional savings programs WASHINGTON, DC and SAN FRANCISCO, CA--(Marketwired - February 14, 2017) - NeighborWorks America, one of the nation's leading community development nonprofits working to improve the financial capability of low- and moderate-income consumers, and EARN, a leading pioneer in the emerging nonprofit financial technology sector, today announced a nationwide partnership to boost emergency savings for low-income families across the United States. The organizations are working together to pilot a savings program that helps consumers plan for a financial emergency by combining one-on-one financial coaching and two-for-one matched dollar savings incentives administered through EARN's award-winning online savings platform. National consumer research from NeighborWorks America and data from the Board of Governors of the Federal Reserve System show that millions of households don't have the emergency savings to cover a financial shock of $400. The EARN and NeighborWorks initiative will help participants build a $450 cushion, based on individuals saving up to $150 of their own money to be matched by up to $300 from NeighborWorks America. Seventeen selected members of the NeighborWorks network will coach their clients to enroll in the savings program and link their savings accounts to EARN's online platform. EARN will track their progress, send regular motivational e-mails to participants, and report to NeighborWorks organization coaches, who will provide on-going support to help savers reach their goals. The matched funds are provided by a grant from JP Morgan Chase to NeighborWorks America, as part of its long-standing commitment to the development of products and services that increase the financial well-being of consumers. JP Morgan Chase is a long-time supporter of various NeighborWorks America programs and has been a supporter of EARN since 2013. The goal of the program is to help consumers establish a habit of savings and create an emergency fund that can be used for any purpose. While most matched savings programs limit the use of funds to the pursuit of longer-term goals such as homeownership, launching a business, or pursuing education, this initiative enables participants to use the funds saved and the dollars matched for any purpose, helping savers weather the many kinds of financial disruptions that impact low- and moderate-income families. "This is an exciting partnership for NeighborWorks America," said Paul Weech, president and CEO of NeighborWorks America. "The ability to withstand a sudden financial shock can mean the difference between falling into the trap of high-cost or predatory lending and building a strong financial future for yourself and your family. This initiative will help NeighborWorks America and EARN evaluate how the combination of technological ease and financial coaching work to protect and promote savings habits." "EARN is working to solve America's savings crisis by helping families build both a habit of savings and enough financial resilience to withstand an unexpected emergency," said EARN's CEO Leigh Phillips. "Our partnership with NeighborWorks America takes our work to the next level -- they understand the need for flexibility and are willing to provide significant financial resources and support directly to families." "Technology alone can't solve financial insecurity. Those who struggle financially need information paired with tools they can immediately put into action and I'm thrilled to see that come to life with this new initiative," said Colleen Briggs, Director of Community Innovation, Global Philanthropy, JPMorgan Chase & Co. "This partnership will encourage saving that ultimately improves household resiliency and long-term opportunity." There are 17 NeighborWorks network organizations participating in the initiative, with the goal to sign-up 300-350 consumers. The program is designed to reach renters who live in NeighborWorks network owned and managed apartment communities. The matched savings program is just one offering among many social and educational benefits delivered by NeighborWorks organizations to their tenants as part of each organization's resident services programs. NeighborWorks Network financial coaches will receive extra help with their coaching skills during this pilot initiative. Following class-based training at NeighborWorks Training Institutes, coaches will be mentored by a master coach and share successful techniques and challenges with their peers. With successful coaching, participants are much more likely to stay engaged and reach their savings goals. Founded in 2001, EARN creates prosperity for working families by helping them save and invest in their futures. EARN is a leader in the emerging nonprofit financial technology sector. In 2015, EARN launched America's first online flexible savings program, becoming a pioneer in the growing field of nonprofit fintech. In 2016, EARN was identified by the Financial Solutions Lab as one of the most promising innovations to help Americans increase savings and manage financial shocks. For more than 35 years, NeighborWorks America, a national, nonpartisan nonprofit, has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $27.2 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.

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