UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 16, 2011
OBA FINANCIAL SERVICES, INC.
(Exact Name of Registrant as Specified in its Charter)
Maryland | 001-34593 | 27-1898270 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File No.) |
(I.R.S. Employer Identification No.) |
20300 Seneca Meadows Parkway, Germantown, Maryland | 20876 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (301) 916-0742
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On August 16, 2011, OBA Financial Services, Inc. issued a press release to announce its results of operations for the three months and year ended June 30, 2011. The press release and related financial information is included as Exhibit 99.1 to this report. The information included in the press release and related financial information is considered to be furnished under the Securities Exchange Act of 1934.
Item 9.01. | Financial Statements and Exhibits |
(a) | Not applicable |
(b) | Not applicable |
(c) | Not applicable |
(d) | Exhibits |
Exhibit |
Description | |
99.1 | Press release dated August 16, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
OBA Financial Services, Inc. | ||||||
DATE: August 18, 2011 | By: | /s/ Charles E. Weller | ||||
Charles E. Weller | ||||||
President and Chief Executive Officer |
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press release dated August 16, 2011 |
Exhibit 99.1
OBA Financial Services, Inc.
FOR IMMEDIATE RELEASE | News Release |
OBA Financial Services, Inc. Announces 4th Quarter Results
GERMANTOWN, MARYLAND: August 16, 2011 OBA Financial Services, Inc., (NASDAQ OBAF) (Company), the parent company of OBA Bank (Bank), announces net income of $857 thousand, or $0.20 per share, for the Companys fiscal year ended June 30, 2011 as compared to a net loss of $710 thousand, or $0.17 loss per share, for the fiscal year ended June 30, 2010.
For the fourth quarter of the Companys fiscal year 2011 which ended June 30, 2011, the Company announces net income of $123 thousand, or $0.03 per share, as compared to net income of $82 thousand, or $0.02 per share, for the quarter ended June 30, 2010.
The Companys annual income was significantly impacted by an increase in non-interest income of $1.8 million for the year ended June 30, 2011. The increase in non-interest income reflects a decrease in impairment losses on investment securities of $1.9 million. The decrease in impairment losses is the result of the Companys previous sale of its bank and bank holding company pooled trust preferred securities in March 2010.
Income Statement
The Companys net interest income for the fiscal year ended June 30, 2011 was $12.0 million compared with $10.1 million for the fiscal year ended June 30, 2010, or an increase of 18.9%. The Company continued to pay down higher cost borrowings and certificates of deposit.
The Companys net interest income for the fourth quarter of the fiscal year ended June 30, 2011 was $2.9 million as compared to $2.8 million in the same period the prior year, or a 4.7% increase.
The Companys non-interest expense increased to $11.0 million for the fiscal year ended June 30, 2011 from $9.3 million for the fiscal year ended June 30, 2010, or 18.3%. The increase is primarily a result of the addition of several commercial bankers as part of the Banks business strategy to increase the commercial loan portfolios, as well as the addition of a residential loan manager, increased legal, regulatory, and accounting costs necessary to operate as a public company, and increased marketing expenses.
Balance Sheet
Total assets grew 3.3% to $386.4 million at June 30, 2011 from $374.1 million at June 30, 2010.
Total loans increased $4.1 million to $281.9 million at June 30, 2011 from $277.8 million at June 30, 2010.
Total deposits increased by $41.3 million, or 19.2%, on a linked-quarter basis, from $215.7 million at March 31, 2011 to $257.0 million at June 30, 2011 as the Company increased money market deposits as a result of a promotion during the quarter ended June 30, 2011.
Borrowings decreased 20.9% from $57.1 million at June 30, 2010 to $45.2 million at June 30, 2011 as the Company continued to pay down higher cost borrowings.
Equity and Capital
Stockholders Equity remained essentially unchanged at $80.9 million at June 30, 2011 as compared to $80.2 million at June 30, 2010. The Company remains well-capitalized at all levels with ratios well in excess of regulatory minimums.
Asset Quality
Total non-performing assets to total assets increased to 1.47% at June 30, 2011 from 0.17% at June 30, 2010. The increase was made up of two loan relationships with not-for-profit entities that have collateral value well in excess of the loan value. Based on the value of the collateral, no specific allowances are required for these loans.
The allowance for loan losses to total loans increased to 0.80% at June 30, 2011 from 0.63% at June 30, 2010 and, on a linked-quarter basis, from 0.77% at March 31, 2011.
About OBA Financial Services, Inc. and OBA Bank
OBA Financial Services, Inc. is the holding company for OBA Bank. OBA Bank, founded in 1861, is a community-oriented bank which provides a variety of financial services to individuals and small businesses through its offices in Montgomery and Howard Counties of Maryland. The Banks primary deposits are demand, money market, and time certificate accounts and its primary lending products are residential and commercial mortgage loans. Visit www.obabank.com to locate an ATM or branch near you or for more information about OBA Bank.
For additional information or questions, please contact:
Charles E. Weller, President & Chief Executive Officer, or
David A. Miller, S.V.P. & Chief Financial Officer
OBA Financial Services, Inc.
20300 Seneca Meadow Parkway
Germantown, MD 20876
301-916-6400
Email: | cweller@obabank.com | |
damiller@obabank.com |
Web Site: www.obabank.com
Forward-Looking Statements
When used in this Press Release, the words or phrases will likely result, are expected to, will continue, is anticipated, estimate, project, or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including, but not limited to, changes in economic conditions in OBA Banks market area, changes in policies by regulatory agencies, changes in the Banks regulator, fluctuations in interest rates, demand for loans in OBA Banks market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Companys financial performance and could cause The Companys actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
OBA Financial Services, Inc.
FINANCIAL SUMMARY
(dollars in thousands, except per share data) | Three Months Ended | Three Months Ended | ||||||||||||||||||
June 30, | March 31, | |||||||||||||||||||
2011 | 2010 | % Change | 2011 | % Change | ||||||||||||||||
RESULTS OF OPERATIONS: |
||||||||||||||||||||
Net interest income |
$ | 2,897 | $ | 2,766 | 4.7 | % | $ | 3,108 | (6.8 | )% | ||||||||||
Provision for loan losses |
147 | 505 | (70.9 | ) | 189 | (22.2 | ) | |||||||||||||
Non-interest income excluding impairment |
216 | 249 | (13.3 | ) | 190 | 13.7 | ||||||||||||||
Impairment losses on investment securities |
| | | | | |||||||||||||||
Non-interest income |
216 | 249 | (13.3 | ) | 190 | 13.7 | ||||||||||||||
Non-interest expense |
2,809 | 2,419 | 16.1 | 2,824 | (0.5 | ) | ||||||||||||||
Income before taxes |
157 | 91 | 72.5 | 285 | (44.9 | ) | ||||||||||||||
Income tax |
34 | 9 | | 86 | (60.5 | ) | ||||||||||||||
Net Income |
123 | 82 | 50.0 | 199 | (38.2 | ) | ||||||||||||||
SHARE DATA: |
||||||||||||||||||||
Basic earnings per share |
$ | 0.03 | $ | 0.02 | 49.4 | % | $ | 0.05 | (38.2 | )% | ||||||||||
Diluted earnings per share |
0.03 | 0.02 | 49.4 | 0.05 | (38.2 | ) | ||||||||||||||
Book value per common share |
17.57 | 17.33 | 1.4 | 17.47 | 0.6 | |||||||||||||||
Tangible book value per common share |
17.57 | 17.33 | 1.4 | 17.47 | 0.6 | |||||||||||||||
Weighted average shares - basic (1) |
4,279,525 | 4,263,130 | 0.4 | 4,277,016 | 0.1 | |||||||||||||||
Weighted average shares - diluted (1) |
4,279,525 | 4,263,130 | 0.4 | 4,277,016 | 0.1 | |||||||||||||||
Common shares outstanding |
4,602,050 | 4,628,750 | (0.6 | ) | 4,628,750 | (0.6 | ) | |||||||||||||
SELECTED RATIOS: |
||||||||||||||||||||
Return on average assets |
0.13 | % | 0.09 | % | 0.23 | % | ||||||||||||||
Return on average equity |
0.61 | 0.41 | 1.00 | |||||||||||||||||
Net interest margin |
3.67 | 3.44 | 3.92 | |||||||||||||||||
Leverage ratio |
20.81 | 21.32 | 22.63 | |||||||||||||||||
Tier I risk-based capital ratio |
32.26 | 34.28 | 32.72 | |||||||||||||||||
Total risk-based capital ratio |
33.16 | 35.03 | 33.61 | |||||||||||||||||
Allowance for loan losses to total loans |
0.80 | 0.63 | 0.77 | |||||||||||||||||
Non-performing assets to total assets |
1.47 | 0.17 | 0.16 | |||||||||||||||||
Non-performing loans to total loans |
1.88 | 0.16 | 0.16 | |||||||||||||||||
END OF PERIOD BALANCES: |
||||||||||||||||||||
Investment securities |
$ | 39,451 | $ | 33,983 | 16.1 | % | $ | 25,570 | 54.3 | % | ||||||||||
Total loans |
281,866 | 277,835 | 1.5 | 284,254 | (0.8 | ) | ||||||||||||||
Earning assets |
336,795 | 339,873 | (0.9 | ) | 322,903 | 4.3 | ||||||||||||||
Assets |
386,445 | 374,095 | 3.3 | 355,971 | 8.6 | |||||||||||||||
Deposits |
257,031 | 233,441 | 10.1 | 215,689 | 19.2 | |||||||||||||||
Borrowings |
45,184 | 57,126 | (20.9 | ) | 56,829 | (20.5 | ) | |||||||||||||
Stockholders equity |
80,860 | 80,222 | 0.8 | 80,869 | | |||||||||||||||
AVERAGE BALANCES: |
||||||||||||||||||||
Investment securities |
$ | 24,373 | $ | 24,908 | (2.1 | )% | $ | 25,738 | (5.3 | )% | ||||||||||
Total loans |
279,516 | 271,339 | 3.0 | 282,954 | (1.2 | ) | ||||||||||||||
Earning assets |
316,798 | 322,195 | (1.7 | ) | 321,312 | (1.4 | ) | |||||||||||||
Assets |
379,097 | 371,673 | 2.0 | 351,033 | 8.0 | |||||||||||||||
Deposits |
245,938 | 233,546 | 5.3 | 216,495 | 13.6 | |||||||||||||||
Borrowings |
50,006 | 55,521 | (9.9 | ) | 52,877 | (5.4 | ) | |||||||||||||
Stockholders equity |
81,182 | 80,220 | 1.2 | 81,007 | 0.2 |
(1) | Basic & diluted weighted average shares do not include unreleased ESOP shares |
OBA Financial Services, Inc.
FINANCIAL SUMMARY
(dollars in thousands, except per share data) | Twelve Months Ended | |||||||||||
June 30, | ||||||||||||
2011 | 2010 | % Change | ||||||||||
RESULTS OF OPERATIONS: |
||||||||||||
Net interest income |
$ | 12,047 | $ | 10,129 | 18.9 | % | ||||||
Provision for loan losses |
739 | 1,278 | (42.2 | ) | ||||||||
Non-interest income excluding impairment |
967 | 1,013 | (4.5 | ) | ||||||||
Impairment losses on investment securities |
| (1,882 | ) | | ||||||||
Non-interest income (loss) |
967 | (869 | ) | | ||||||||
Non-interest expense |
11,035 | 9,331 | 18.3 | |||||||||
Income (loss) before taxes |
1,240 | (1,349 | ) | | ||||||||
Income tax (benefit) |
383 | (639 | ) | | ||||||||
Net income (loss) |
857 | (710 | ) | | ||||||||
SHARE DATA: |
||||||||||||
Basic earnings (loss) per share |
$ | 0.20 | $ | (0.17 | ) | | % | |||||
Diluted earnings (loss) per share |
0.20 | (0.17 | ) | | ||||||||
Book value per common share |
17.57 | 17.33 | 1.4 | |||||||||
Tangible book value per common share |
17.57 | 17.33 | 1.4 | |||||||||
Weighted average shares - basic (1) |
4,274,141 | 4,261,124 | 0.3 | |||||||||
Weighted average shares - diluted (1) |
4,274,141 | 4,261,124 | 0.3 | |||||||||
Common shares outstanding |
4,602,050 | 4,628,750 | (0.6 | ) | ||||||||
SELECTED RATIOS: |
||||||||||||
Return on average assets |
0.23 | % | (0.19 | )% | ||||||||
Return on average equity |
1.06 | (1.24 | ) | |||||||||
Net interest margin |
3.70 | 3.09 | ||||||||||
Leverage ratio |
20.81 | 21.32 | ||||||||||
Tier I risk-based capital ratio |
32.26 | 34.28 | ||||||||||
Total risk-based capital ratio |
33.16 | 35.03 | ||||||||||
Allowance for loan losses to total loans |
0.80 | 0.63 | ||||||||||
Non-performing assets to total assets |
1.47 | 0.17 | ||||||||||
Non-performing loans to total loans |
1.88 | 0.16 | ||||||||||
END OF PERIOD BALANCES: |
||||||||||||
Investment securities |
$ | 39,451 | $ | 33,983 | 16.1 | % | ||||||
Total loans |
281,866 | 277,835 | 1.5 | |||||||||
Earning assets |
336,795 | 339,873 | (0.9 | ) | ||||||||
Assets |
386,445 | 374,095 | 3.3 | |||||||||
Deposits |
257,031 | 233,441 | 10.1 | |||||||||
Borrowings |
45,184 | 57,126 | (20.9 | ) | ||||||||
Stockholders equity |
80,860 | 80,222 | 0.8 | |||||||||
AVERAGE BALANCES: |
||||||||||||
Investment securities |
$ | 27,725 | $ | 28,465 | (2.6 | )% | ||||||
Total loans |
281,051 | 276,197 | 1.8 | |||||||||
Earning assets |
325,471 | 328,225 | (0.8 | ) | ||||||||
Assets |
365,333 | 376,254 | (2.9 | ) | ||||||||
Deposits |
229,660 | 251,199 | (8.6 | ) | ||||||||
Borrowings |
53,145 | 65,749 | (19.2 | ) | ||||||||
Stockholders equity |
80,906 | 57,305 | 41.2 |
(1) | Basic & diluted weighted average shares do not include unreleased ESOP shares |