7-26-13 4:30 PM EDT | Email Article

BRIGHTON, Mass., July 26, 2013 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), announced third quarter and year to date earnings for the fiscal year ending September 30, 2013. For the quarter ended June 30, 2013, the Company reported net income of $598,000 or $0.10 per share, basic and diluted, as compared to net income of $567,000 or $0.09 per share, basic and diluted, for the same period last year and net income of $545,000, or $0.09 per share, basic and diluted, for the quarter ended March 31, 2013. For the nine months ended June 30, 2013, the Company reported net income of $1.8 million or $0.30 per share, basic and diluted, as compared to net income of $2.0 million or $0.31 per share, basic and diluted, for the same period last year.

For both the quarters ended June 30, 2013 and 2012, net interest and dividend income totaled $4.2 million. Low market interest rates have continued to pressure net interest income as recently originated loans reflect current market conditions. Of note during the June 2013 quarter, a non-accruing commercial real estate loan, previously categorized as impaired and classified as substandard paid off. As a result, the Bank recognized $79,000 in interest and fees on loans and a total of $46,000 in other income and recovered expenses. Non-interest income totaled $472,000 for the quarter ended June 30, 2013, as compared to $443,000 for the quarter ended June 30, 2012. Non-interest expense totaled $3.6 million for the quarter ended June 30, 2013 as well as the quarter ended June 30, 2012.

For the nine month periods ended June 30, 2013 and 2012, net interest and dividend income totaled $12.5 million and $12.7 million, respectively. Low market interest rates have continued to pressure net interest income as recently originated loans reflect current market conditions. Non-interest income totaled $1.5 million for the nine months ended June 30, 2013, as compared to $1.3 million for the nine months ended June 30, 2012. Non-interest expense totaled $10.6 million for the nine months ended June 30, 2013, as compared to $10.5 million for the nine months ended June 30, 2012, reflecting higher salaries and employee benefits offset mainly by a decrease in advertising expense and other expense.

On a linked quarter basis, net interest and dividend income for the Company's 2013 third fiscal quarter increased $103,000, or 2.5%, to $4.2 million from $4.1 million for the second fiscal quarter ended March 31, 2013, reflecting the payoff of the loan noted above as well as continued efforts to maintain the net interest margin. Non-interest income for the third quarter of fiscal 2013 decreased to $472,000 from $488,000 for the second fiscal quarter ended March 31, 2013. Non-interest expense remained stable at $3.6 million for both the third fiscal quarter ended June 30, 2013 and the second fiscal quarter ended March 31, 2013.

Total assets increased $3.7 million, or 0.6%, to $574.5 million at June 30, 2013 from $570.8 million at September 30, 2012. Loans, net increased $2.3 million, or 0.5%, as residential real estate, construction and commercial loans all increased while commercial real estate and consumer loans declined. Cash and cash equivalents increased $7.1 million to $43.3 million at June 30, 2013 from $36.2 million at September 30, 2012. Securities available-for-sale and held-to-maturity decreased $5.3 million, or 11.2%, to $42.3 million at June 30, 2013 from $47.6 million at September 30, 2012. Borrowings remained at $33.0 million for both the June 30, 2013 and September 30, 2012 periods. 

Deposits increased $6.9 million to $423.6 million at June 30, 2013 from $416.7 million at September 30, 2012. Savings accounts increased $5.5 million, demand deposits increased $5.3 million, and NOW accounts increased $1.5 million, while term certificates decreased $3.6 million and money market accounts decreased $1.8 million. At June 30, 2013, total stockholders' equity was $107.0 million, a decrease of $3.5 million from $110.5 million at September 30, 2012. The decrease in stockholders' equity during the nine-month period was primarily due to dividends paid of $2.1 million and the repurchase and retirement of 253,900 shares, or $4.5 million, of the Company's common stock pursuant to our stock repurchase plan, offset by net income of $1.8 million, stock based compensation expense of $1.0 million and common stock released and committed to be released by the ESOP of $380,000.

During the quarter ended June 30, 2013, the Company paid a quarterly cash dividend of $0.04 per common share. The dividends paid totaled $244,000 during the quarter. The Company did not pay any dividends during the quarter ended June 30, 2012.   

Non-performing assets totaled $1.9 million, or 0.3% of total assets, at June 30, 2013, compared to $3.4 million, or 0.6% of total assets, at September 30, 2012 and $2.0 million, or 0.4% of total assets, at March 31, 2013. Classified assets decreased to $3.5 million at June 30, 2013, as compared to $9.6 million at September 30, 2012 and $4.1 million at March 31, 2013. The Company did not provide a   contribution to the allowance for loan losses during the quarter ended June 30, 2013 reflecting little change in net loans and improvements in loan delinquencies, non-performing assets and classified assets.    

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

    
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
    
CONSOLIDATED BALANCE SHEETS
 June 30,September 30,
 20132012
 (Unaudited)  
 (In thousands, except share data)
ASSETS  
Cash and due from banks  $ 3,766  $ 6,713
Interest-bearing demand deposits with other banks  37,335  27,378
Federal funds sold  131  48
Federal Home Loan Bank - overnight deposit  2,102  2,102
Total cash and cash equivalents  43,334  36,241
Securities available-for-sale  14,424  21,653
Securities held-to-maturity (fair values of $27,643 and $26,746)  27,825  25,921
Federal Home Loan Bank stock (at cost)   3,775  4,014
Loans   457,324  454,925
Allowance for loan losses   (4,025)  (3,891)
Loans, net   453,299  451,034
Premises and equipment, net  3,434  3,577
Cash surrender value of life insurance policies  19,850  19,364
Accrued interest receivable   1,453  1,589
Deferred income tax asset, net  5,406  5,116
Other assets   1,731  2,318
Total assets  $ 574,531  $ 570,827
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Deposits:    
Non-interest bearing  $ 54,471  $ 49,165
Interest-bearing  369,156  367,583
Total deposits  423,627  416,748
Short-term borrowings  6,000  8,000
Long-term debt  27,000  25,000
Accrued expenses and other liabilities  10,937  10,541
Total liabilities  467,564  460,289
     
Stockholders' equity:    
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued  --  --
Common stock, $0.01 par value; 100,000,000 shares authorized; 6,473,004 and 6,726,904 shares issued and outstanding at June 30, 2013 and September 30, 2012, respectively   65  67
Additional paid-in capital  59,915  63,909
Retained earnings  54,881  55,153
Accumulated other comprehensive (loss) income  (58)  113
Unearned restricted shares; 201,885 and 244,140 shares at June 30, 2013 and  September 30, 2012, respectively  (3,123)  (3,777)
Unearned compensation - ESOP  (4,713)  (4,927)
Total stockholders' equity  106,967  110,538
Total liabilities and stockholders' equity  $ 574,531  $ 570,827
     
         
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
         
CONSOLIDATED STATEMENTS OF INCOME
 
 Three Months EndedNine Months Ended
 June 30,June 30,
 2013201220132012
 (Unaudited)
 (Dollars in thousands, except share data)
Interest and dividend income:        
Interest and fees on loans  $ 4,644  $ 4,793  $ 14,116  $ 14,466
Interest on debt securities:        
Taxable  147  210  417  723
Other interest  26  18  70  59
Dividends on equity securities  3  5  12  14
Total interest and dividend income  4,820  5,026  14,615  15,262
         
Interest expense:        
Interest on deposits  501  673  1,668  2,128
Interest on Federal Home Loan Bank advances  152  147  452  409
Total interest expense  653  820  2,120  2,537
Net interest and dividend income  4,167  4,206  12,495  12,725
Provision for loan losses  --  125  200  375
Net interest and dividend income, after provision for loan losses  4,167  4,081  12,295  12,350
         
Non-interest income:        
Customer service fees  213  213  616  628
Loan servicing fees   16  20  30  7
Net gain on sales of mortgage loans  42  42  189  49
Increase in cash surrender value of life insurance  143  161  486  490
Other income  58  7  131  97
Total non-interest income  472  443  1,452  1,271
         
Non-interest expense:        
Salaries and employee benefits   2,444  2,440  7,173  7,047
Occupancy expense  241  222  719  682
Equipment expense  87  109  294  333
Professional fees  104  131  398  355
Advertising expense  142  140  379  448
Data processing expense  218  200  637  600
Deposit insurance expense  81  66  211  176
Other expense  254  284  768  810
Total non-interest expense  3,571  3,592  10,579  10,451
Income before income taxes  1,068  932  3,168  3,170
Provision for income taxes   470  365  1,344  1,190
Net income   $ 598  $ 567  $ 1,824  $ 1,980
         
Weighted-average shares outstanding:        
Basic  5,869,813  6,114,060  5,913,414  6,239,816
Diluted  5,905,052  6,144,309  5,950,470  6,251,384
         
Earnings per common share:        
Basic  $ 0.10  $ 0.09  $ 0.30  $ 0.31
Diluted  $ 0.10  $ 0.09  $ 0.30  $ 0.31
         
     
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF INCOME
 
 Three Months Ended
 June 30,March 31,
 20132013
 (Unaudited)
 (Dollars in thousands,
 except share data)
Interest and dividend income:    
Interest and fees on loans  $ 4,644  $ 4,619
Interest on debt securities:    
Taxable  147  120
Other interest  26  26
Dividends on equity securities  3  4
Total interest and dividend income  4,820  4,769
     
Interest expense:    
Interest on deposits  501  555
Interest on Federal Home Loan Bank advances  152  150
Total interest expense  653  705
Net interest and dividend income  4,167  4,064
Provision for loan losses  --  80
Net interest and dividend income, after provision for loan losses  4,167  3,984
     
Non-interest income:    
Customer service fees  213  193
Loan servicing fees  16  6
Net gain on sales of mortgage loans  42  46
Increase in cash surrender value of life insurance  143  181
Other income  58  62
Total non-interest income  472  488
     
Non-interest expense:    
Salaries and employee benefits   2,444  2,403
Occupancy expense  241  249
Equipment expense  87  101
Professional fees  104  177
Advertising expense  142  108
Data processing expense  218  211
Deposit insurance expense  81  61
Other expense  254  257
Total non-interest expense  3,571  3,567
Income before income taxes  1,068  905
Provision for income taxes   470  360
Net income   $ 598  $ 545
     
Weighted-average shares outstanding:    
Basic  5,869,813  5,894,114
Diluted  5,905,052  5,914,177
     
Earnings per common share:    
Basic  $ 0.10  $ 0.09
Diluted  $ 0.10  $ 0.09
     

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

             
 Three Months Ended June 30,
 20132012
 AverageInterestAverageAverageInterestAverage
 OutstandingEarned/Yield/OutstandingEarned/Yield/
 BalancePaidRate (1)BalancePaidRate (1)
 (Unaudited)
 (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 450,486  $ 4,644 4.12%  $ 424,263  $ 4,793 4.52%
Taxable securities (3)  39,533  147  1.49  57,234  210  1.47
Other interest-earning assets  44,511  26  0.23  25,552  18  0.28
FHLB stock  3,775  3  0.32  4,014  5  0.50
Total interest-earning assets  538,305  4,820  3.58  511,063  5,026  3.93
Non-interest-earning assets  35,920      47,065    
Total assets  $ 574,225      $ 558,128    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 54,572  17  0.12  $ 49,299  23  0.19
Money market accounts  152,231  173  0.45  154,959  266  0.69
NOW accounts  39,035  6  0.06  37,441  11  0.12
Term certificates  125,434  305  0.97  128,314  373  1.16
Total deposits  371,272  501  0.54  370,013  673  0.73
FHLB advances  33,000  152  1.84  24,000  147  2.45
Total interest-bearing liabilities  404,272  653  0.65  394,013  820  0.83
Demand deposits  52,647      42,577    
Other non-interest-bearing liabilities  9,089      8,766    
Total non-interest-bearing liabilities  61,736      51,343    
Total liabilities  466,008      445,356    
Stockholders' equity  108,217      112,772    
Total liabilities and stockholders' equity  $ 574,225      $ 558,128    
             
Net interest income    $ 4,167      $ 4,206  
Net interest rate spread (4)     2.93%     3.10%
Net interest-earning assets (5)  $ 134,033      $ 117,050    
Net interest margin (6)     3.10%     3.29%
Ratio of interest-earning assets to total interest-bearing liabilities  1.33x      1.30x    
             
(1) Yields are annualized.            
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.        
(3) Average balances are presented at average amortized cost.            
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.      
(6) Net interest margin represents net interest income divided by average total interest-earning assets.      
             
             
 Nine Months Ended June 30,
 20132012
 AverageInterestAverageAverageInterestAverage
 OutstandingEarned/Yield/OutstandingEarned/Yield/
 BalancePaidRate (1)BalancePaidRate (1)
 (Unaudited)
 (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 450,874  $ 14,116 4.17%  $ 415,807  $ 14,466 4.64%
Taxable securities (3)  39,077  417  1.42  58,586  723  1.65
Other interest-earning assets  44,168  70  0.21  28,738  59  0.27
FHLB stock  3,916  12  0.41  4,202  14  0.44
Total interest-earning assets  538,035  14,615  3.62  507,333  15,262  4.01
Non-interest-earning assets  35,963      46,360    
Total assets  $ 573,998      $ 553,693    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 52,964  56  0.14  $ 48,359  72  0.20
Money market accounts  153,624  609  0.53  154,023  830  0.72
NOW accounts  37,932  18  0.06  36,481  33  0.12
Term certificates  127,429  985  1.03  131,045  1,193  1.21
Total deposits  371,949  1,668  0.60  369,908  2,128  0.77
FHLB advances  32,788  452  1.84  20,613  409  2.65
Total interest-bearing liabilities  404,737  2,120  0.70  390,521  2,537  0.87
Demand deposits  51,081      40,481    
Other non-interest-bearing liabilities  9,274      8,670    
Total non-interest-bearing liabilities  60,355      49,151    
Total liabilities  465,092      439,672    
Stockholders' equity  108,906      114,021    
Total liabilities and stockholders' equity  $ 573,998      $ 553,693    
             
Net interest income    $ 12,495      $ 12,725  
Net interest rate spread (4)     2.92%     3.14%
Net interest-earning assets (5)  $ 133,298      $ 116,812    
Net interest margin (6)     3.10%     3.34%
Ratio of interest-earning assets to total interest-bearing liabilities  1.33x      1.30x    
             
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
             
             
 Three Months Ended 
 June 30, 2013March 31, 2013
 AverageInterestAverageAverageInterestAverage
 OutstandingEarned/Yield/OutstandingEarned/Yield/
 BalancePaidRate (1)BalancePaidRate (1)
 (Unaudited)
 (Dollars in thousands)
Interest-earning assets:            
Loans (2)  $ 450,486  $ 4,644 4.12%  $ 449,549  $ 4,619 4.11%
Taxable securities (3)  39,533  147  1.49  35,566  120  1.35
Other interest-earning assets  44,511  26  0.23  50,678  26  0.21
FHLB stock  3,775  3  0.32  3,958  4  0.40
Total interest-earning assets  538,305  4,820  3.58  539,751  4,769  3.53
Non-interest-earning assets  35,920      36,427    
Total assets  $ 574,225      $ 576,178    
             
Interest-bearing liabilities:            
Deposits:            
Savings   $ 54,572  17  0.12  $ 53,538  20  0.15
Money market accounts  152,231  173  0.45  155,630  200  0.51
NOW accounts  39,035  6  0.06  37,683  6  0.06
Term certificates  125,434  305  0.97  129,105  329  1.02
Total deposits  371,272  501  0.54  375,956  555  0.59
FHLB advances  33,000  152  1.84  32,911  150  1.82
Total interest-bearing liabilities  404,272  653  0.65  408,867  705  0.69
Demand deposits  52,647      49,945    
Other non-interest-bearing liabilities  9,089      9,088    
Total non-interest-bearing liabilities  61,736      59,033    
Total liabilities  466,008      467,900    
Stockholders' equity  108,217      108,278    
Total liabilities and stockholders' equity  $ 574,225      $ 576,178    
             
Net interest income    $ 4,167      $ 4,064  
Net interest rate spread (4)     2.93%     2.84%
Net interest-earning assets (5)  $ 134,033      $ 130,884    
Net interest margin (6)     3.10%     3.01%
Ratio of interest-earning assets to total interest-bearing liabilities  1.33x      1.32x    
             
(1) Yields are annualized.
(2) Average loans include non-accrual loans and are net of average deferred loan fees/costs.
(3) Average balances are presented at average amortized cost.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
             
CONTACT: Maurice H. Sullivan, Jr.
         (617) 254-0707
GlobeNewswire, Inc. 2013
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Morningstar - 2013/7/26 - Peoples Federal Bancshares, Inc. Announces Third Quarter and Year to Date Results for Fiscal Year 2013
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