LifeStore Financial Group, Inc. Reports Quarter End Results - May 2024
May 9, 2024 - LifeStore Financial Group, Inc. reported net income of $1,205,674 for the quarter ended March 31, 2024, as compared to $1,611,545 for the quarter ended March 31, 2023. Net income for the nine months ended March 31, 2024, was $3,872,926, as compared to $4,746,809 for the nine months ended March 31, 2023.
Basic earnings per share were $3.76 as compared to $4.61 for the same nine-month period in 2023. Assets increased 6.4% to $441.9 million during the nine months ended March 31, 2024. Bob Washburn, President and CEO, noted “We had a solid quarter with Return on Assets (ROA) of 1.22% and Return on Equity (ROE) of 10.59%. Our balance sheet continues to strengthen as deposits increased $25.4 million and loans $5.0 million over the past year. We repaid our last Federal Home Loan Bank advance in the first quarter of our fiscal year. Asset quality remains strong; however, we have seen our net interest margin decline since year-end. The Federal Reserve raised rates eleven times, with four of those hikes taking place in 2023. In total, the Federal Reserve has increased rates by 525 basis points since it started increasing rates in March 2022. Despite the recent compression in net interest margin, we are well positioned to continue producing positive results going forward.”
LifeStore Bank was voted as the “Best Bank” and Best “Mortgage Company” in Ashe County by readers of the Ashe Post and Times and “Best Bank” in Watauga County by readers of the Watauga Democrat. Washburn commented, “I want to express our appreciation to all the employees of LifeStore for always going above and beyond to take care of our customers.”
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 |
March 31, 2024 |
March 31, 2023 |
|
|
| Selected Financial Condition Data: |
|
|
|
|
| Total assets |
$ 441,883 |
$ 433,088 |
|
|
| Loans receivable, net1 |
262,416 |
258,583 |
|
|
| Investment securities2 |
79,803 |
106,342 |
|
|
| Cash and cash equivalents |
67,825 |
37,507 |
|
|
| Deposits |
379,256 |
355,405 |
|
|
| Borrowings |
5,155 |
25,155 |
|
|
| Equity |
51,453 |
47,029 |
|
|
| Book value per share |
$ 49.93 |
$ 45.64 |
|
|
| Return on assets |
1.22% |
1.50% |
|
|
| Return on equity |
10.59% |
14.28% |
|
|
| Efficiency ratio3 |
72.14% |
67.24% |
|
|
| |
|
|
|
|
| |
Nine Months Ended |
Nine Months Ended |
| |
March 31, 2024 |
March 31, 2023 |
March 31, 2024 |
March 31, 2023 |
| Selected Operating Data: |
|
|
|
|
| Interest income and dividends |
$ 5,273 |
$ 4,612 |
$ 15,460 |
$ 12,901 |
| Interest expense |
2,210 |
1,267 |
5,847 |
2,264 |
| Net interest income |
3,063 |
3,345 |
9,613 |
10,637 |
| Provision for loan losses |
(1) |
13 |
26 |
47 |
| Net interest income after provision for loan losses |
3,064 |
3,332 |
9,587 |
10,590 |
| |
|
|
|
|
| Insurance commissions |
2,021 |
2,169 |
5,126 |
4,915 |
| Other non-interest income |
677 |
669 |
2,100 |
2,174 |
| |
|
|
|
|
| Non-interest expense |
4,350 |
4,192 |
12,148 |
11,919 |
| Income before income tax expense |
1,412 |
1,978 |
4,665 |
5,760 |
| Income tax expense |
206 |
367 |
792 |
1,013 |
| Net income |
$ 1,206 |
$ 1,611 |
$ 3,873 |
$ 4,747 |
| |
|
|
|
|
| Basic earnings per share of common stock |
$ 1.17 |
$ 1.56 |
$ 3.76 |
$ 4.61 |
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.