LifeStore Financial Group Reports Quarter End Results -October 31, 2024
October 31, 2024 - LifeStore Financial Group, Inc. reported net income of $1,014,327 for the quarter ended September 30, 2024, as compared to $1,398,667 for the quarter ended September 30, 2023. Basic earnings per share were $0.98 as compared to $1.36 for the same period in 2023. Assets increased 9.7% to $451.1 million at September 30, 2024 compared to $411.3 million at September 30, 2023.
“We are pleased to report another quarter of solid financial results,” said Bob Washburn, President and Chief Executive Officer. “Our earnings were down 27.5% over the prior quarter, primarily due to net interest margin compression and additional reserves established for the potential impact of Hurricane Helene on our loan portfolio. The Federal Reserve has started reducing rates, and we expect to see some improvement in the net interest margin during the fiscal year. We are not aware of any collectability issues on our loans due to the storm. We continue to assess the storm’s impact on our customers and will adjust the allowance for credit losses in future quarters as needed.”
LifeStore is committed to helping our customers and communities recover from the devastating storm that has impacted our service areas. Hurricanes leave behind immense destruction, affecting homes, businesses, schools, and infrastructure, and rebuilding often requires extensive resources and community effort. LifeStore has been a trusted financial partner in the mountains of North Carolina for over 85 years, providing innovative financial services. Our commitment to supporting our customers and the communities we serve remains stronger than ever.
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.
| |
As of September 30, 2024 |
As of September 30, 2023 |
| Selected Financial Condition Data: |
(Dollars in thousands) |
(Dollars in thousands) |
| Total assets |
$ 451,052 |
$ 411,283 |
| Loans receivable, net1 |
277,938 |
268,677 |
| Investment Securities2 |
104,452 |
83,705 |
| Cash and cash equivalents |
38,342 |
26,341 |
| Deposits |
385,388 |
354,738 |
| Borrowings |
5,155 |
5,155 |
| Equity |
53,753 |
45,615 |
| Book value per share |
$ 52.16 |
$ 44.26 |
| Return on assets |
0.90% |
1.35% |
| Return on equity |
7.63% |
12.01% |
| Efficiency ratio3 |
74.12% |
69.33% |
| |
|
|
| |
Three Months Ended |
Three Months Ended |
| |
September 30, 2024 |
September 30, 2023 |
| |
(Dollars in thousands) |
(Dollars in thousands) |
| Selected Operating Data: |
|
|
| Interest income and dividends |
$ 5,652 |
$ 5,051 |
| Interest expense |
2,576 |
1,728 |
| Net interest income |
3,076 |
3,323 |
| Provision for credit losses |
244 |
17 |
| Net interest income after provision for credit losses |
2,832 |
3,306 |
| |
|
|
| Insurance commissions |
1,700 |
1,656 |
| Other non-interest income |
713 |
696 |
| |
|
|
| Non-interest expense |
4,069 |
3,935 |
| Income before income tax expense |
1,176 |
1,723 |
| Income tax expense |
162 |
324 |
| Net Income |
1,014 |
1,399 |
| |
|
|
| Basic earnings per share of common stock |
$ 0.98 |
$ 1.36 |
1 Loans receivable, net is comprised of total loans less allowance for credit 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.