LifeStore Financial Group, Inc. Reports Quarter End Results - Jan. 2023
January 27, 2023 - LifeStore Financial Group, Inc. reported net income of $1,559,438 for the quarter ended December 31, 2022, as compared to $1,287,712 for the quarter ended December 31, 2021. Net income for the six months ended December 31, 2022 was $3,135,264 as compared to $2,554,696 for the six months ended December 31, 2021. Basic earnings per share were $3.04 as compared to $2.48 for the same six month period in 2021. Assets increased 5.2% to $424.8 million during the six-months ended December 31, 2022.
Bob Washburn, President and CEO noted, “We had another strong quarter with ROA of 1.5% and ROE of 14.5%. We had solid loan growth of $12.5 million and investment securities increased $6.4 million during the six month period. Asset quality remains strong in an increasingly slowing economic environment. Our net interest margin has continued to trend upward due to improvements on yields for earning assets as a result of the multiple rate increases in prime and other indices; however, our cost of funds has also increased. Deposits grew $5.4 million since June 30, 2022.
From a strategic standpoint, we are continuing to expand our digital platform and use technology to enhance our customers’ experience while keeping the same level of service our customers expect and deserve. I am proud of our employees’ efforts to deliver for our customers and shareholders. This service was recently recognized by the Ashe Post and Times when we were named the Best Bank and Best Mortgage Company in Ashe County.
LifeStore Financial Group, Inc., headquartered in West Jefferson, provides banking, investment, and insurance services. It is a state chartered bank holding company that owns 100% of the common stock of LifeStore Bank (Member FDIC and Equal Housing Lender) and operates branches in Boone, Jefferson, and West Jefferson. LifeStore Insurance is an independent insurance agency that serves these markets along with Elkin, Lenoir, Newland, and Sparta.
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, without limitation: the effects of future economic conditions; governmental fiscal and monetary policies; legislative and regulatory changes; the risks of changes in interest rates; management of growth; fluctuations in our financial results; reliance on key personnel; our ability to compete effectively; privacy, security and other risks associated with our business.
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LifeStore Financial Group, Inc. and Subsidiaries
(Dollars in thousands)
| |
As of |
|
|
| Year Ended |
December 31, 2022 |
December 31, 2021 |
|
|
| Selected Financial Condition Data: |
|
|
|
|
| Total assets |
$ 424,836 |
$ 407,020 |
|
|
| Loans receivable, net1 |
254,203 |
210,990 |
|
|
| Investment securities2 |
112,077 |
80,381 |
|
|
| Cash and cash equivalents |
28,317 |
86,742 |
|
|
| Deposits |
347,620 |
337,115 |
|
|
| Borrowings |
28,155 |
19,155 |
|
|
| Equity |
44,638 |
45,263 |
|
|
| Book value per share |
$43.32 |
$ 43.92 |
|
|
| Return on assets |
1.51% |
1.28% |
|
|
| Return on equity |
14.45% |
11.51% |
|
|
| Efficiency ratio3 |
61.54% |
69.78% |
|
|
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
December 31, 2022 |
December 31, 2021 |
December 31, 2022 |
December 31, 2021 |
| Selected Operating Data: |
|
|
|
|
| Interest income and dividends |
$ 4,387 |
$ 3,087 |
$ 8,288 |
$ 6,215 |
| Interest expense |
695 |
254 |
997 |
527 |
| Net interest income |
3,692 |
2,833 |
7,291 |
5,688 |
| Provision for loan losses |
15 |
166 |
34 |
183 |
| Net interest income after provision for loan losses |
3,677 |
2,667 |
7,257 |
5,505 |
| |
|
|
|
|
| Insurance commissions |
1,259 |
1,635 |
2,715 |
3,022 |
| Other non-interest income |
729 |
1,031 |
1,505 |
2,081 |
| |
|
|
|
|
| Non-interest expense |
3,829 |
3,802 |
7,697 |
7,530 |
| Income before income tax expense |
1,836 |
1,531 |
3,780 |
3,078 |
| Income tax expense |
277 |
243 |
645 |
523 |
| Net income |
$1,559 |
$ 1,288 |
$ 3,135 |
$ 2,555 |
| |
|
|
|
|
| Basic earnings per share of common stock |
$ 1.51 |
$1.25 |
$ 3.04 |
$ 2.48 |
1 Loans receivable, net is comprised of total loans less allowance for loan losses, loans sold, undisbursed loan funds and deferred loan fees.
2 Includes equity securities and securities available for sale.
3 The efficiency ratio represents non-interest expense as a percentage of the sum of net interest income and non-interest income.