SOURCE: Willamette Community Bank
ALBANY, OR--(Marketwire - Oct 10, 2012) - Willamette Community Bank (OTCQB: WMCB)
- Record nine month income of $350 thousand, or 49 cents per share
- Total loans increased $4.6 million from year-end 2011
- Total deposits increased $6.7 million from year-end 2011
- Non-performing loans to total loans of 1.40% and .71% of gross loans over 30 days past due
- No reported loan charge-offs year-to-date
Willamette Community Bank (OTCQB: WMCB) today reported record net income of $350 thousand for nine months ending September 30, 2012 or $0.49 cents per share compared to net income of $300 thousand and $0.45 cents per share for nine months ended September 30, 2011. The results for nine months of 2012 reflect strong core transaction deposit growth, increase in both commercial and consumer loan portfolios and surge in fee revenue, primarily mortgage banking and interchange income.
"Our improving earnings trend reflect ongoing efforts to meaningfully increase top line revenue growth through our continued successful expansion developing quality loan relationships, increasing success in our mortgage banking business and core deposit relationships," said Dave Wood, president and chief executive officer. Total loans were $63.5 million, an increase of $4.7 million or 8% since year-end 2011. "Additionally, core deposits increased $6.7 million from year-end 2011 while mortgage banking income increased $88 thousand or 155% year-over-year," commented Wood. Wood further stated that "growing quality loans and core deposit relationships remains a key strategic focus especially given the highly competitive market for quality lending opportunities. We have been successful in both our loan pricing strategy with a year-to-date net interest margin of 4.46% and, lowering our average cost of funds to 0.70%. In fact, our net interest margin has improved from 4.34% year-end 2011 to a very respectable Q3 2012 margin of 4.46%; an achievement in a very competitive market place seeking quality earning assets. The combination of loan and deposit pricing has improved our ROA to 0.56% and ROE to 5.95%. We remain committed to achieving an ROA and ROE of 1% and 12% respectively.
"Managing credit risk and protecting our shareholder investment remains the corner stone of our community bank franchise and we continue to be very pleased with our loan portfolio performance in this most uncertain economic environment. With non-performing loans to total loans a modest 1.40%, loans over 30 days past due 0.71% of gross loans and no reported year-to-date charge-offs, this corner stone remains firmly placed."
CEO Wood pointed out that Willamette Community Bank's culture is centered around the core belief that no one serves you better -- and that's a promise... with very close attention paid to taking care of local people, local families and local businesses, a culture that exemplifies service, value, purpose and achievement. This philosophy is the reasons that total assets of the Bank has grown from year-end 2011 of $79,343 thousand to $87,070 thousand or 10%.
The Bank reported a Q3 2012 tier 1 capital ratio of 12.1% and total risk based capital ratio of 13.2%, significantly exceeding minimum regulatory standards for a well-capitalized financial institution. Wood stated that "our capital ratio continues to improve as the result of improving earnings and thereby we are positioned to accommodate customers of larger institutions who seek an alternative to larger banks as well as those customers that desire a personal relationship, that one-on-one, with direct access to decision makers."
Willamette Community Bank is a traditional full service community bank headquartered in Albany, Oregon with second branch location in Lebanon, Oregon.
This press release contains certain forward-looking information about Willamette Community Bank (WMCB) that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the bank's outlook. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of WMCB. WMCB 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. Risks and uncertainties include, but not limited to, revenues that are lower than expected and credit quality deteriorations which could cause an increase in the provision in credit losses.