EX-99 2 v447340_ex99.htm EXHIBIT 99

Exhibit No. 99

 

Press Release

 

Contact: MW Bancorp, Inc.
  Gregory P. Niesen, President and Chief Executive Officer
  (513) 231-7871

 

MW Bancorp, Inc. Reports Results for the Year Ended June 30, 2016

 

Cincinnati, Ohio – August 18, 2016 – MW Bancorp, Inc. (the “Company”) (OTC: MWBC), the parent company of Watch Hill Bank (the “Bank”), today reported net income of $689,000, or $0.85 per diluted share, for the year ended June 30, 2016. Net income increased by $544,000, compared to the year ended June 30, 2015.

 

The increase in net income for the year ended June 30, 2016, compared to the year ended June 30, 2015, was due primarily to recognition of a $713,000 tax benefit related to the partial reversal of the impairment valuation allowance on the Company’s deferred tax assets, along with increases of $324,000 in net interest income and $192,000 in non-interest income, which were partially offset by a $707,000 increase in non-interest expense. Interest income increased $528,000, or 15.4%, for the year ended June 30, 2016, compared to the year ended June 30, 2015, primarily due to a $514,000 increase in interest on loans. Total interest expense increased $204,000, or 20.4%, for the year ended June 30, 2016, over the year ended June 30, 2015, due primarily to an increase in interest expense on deposits of $169,000, or 23.9%. Non-interest income increased $192,000, or 103.2%, for the year ended June 30, 2016 over the year ended June 30, 2015, primarily due to a $169,000 increase in gain on sale of loans. Non-interest expense increased $707,000, or 29.1%, for the year ended June 30, 2016 compared to the year ended June 30, 2015. This increase was primarily due to increases of $375,000, or 26.7%, in salaries, employee benefits and directors fees expense, as the Company increased staffing levels and bonus and incentive compensation, and $96,000, or 71.1%, in occupancy and equipment expense, due primarily to costs associated with the Company’s new office location which opened in September 2015, along with additional costs related to the Company’s overall growth and public reporting requirements.

 

The Company reported total assets of $119.0 million at June 30, 2016, an increase of $12.2 million, or 11.4%, over June 30, 2015. Total loans increased by 14.5% to $101.7 million; total deposits increased by 13.0% to $77.2 million; and stockholders’ equity increased by 2.9% to $16.1 million at June 30, 2016 compared to June 30, 2015.

 

Total nonperforming loans were $1.2 million at June 30, 2016, compared to $1.1 million at June 30, 2015. Classified loans totaled $1.5 million at June 30, 2016, compared to $1.8 million at June 30, 2015, and total loans past due greater than 30 days were $601,000 and $309,000 at those respective dates. The Company had net recoveries totaling $20,000 for the year ended June 30, 2016, compared to net recoveries of $30,000 for the year ended June 30, 2015. As a percentage of nonperforming loans, the allowance for loan losses was 135.2% at June 30, 2016, compared to 147.7% at June 30, 2015.

 

The Company was formed in 2014 to serve as the stock holding company for the Bank following its mutual-to-stock conversion, which was completed effective January 29, 2015. The Company issued 876,163 shares at an offering price of $10.00 per share. Proceeds of the offering, net of offering costs and shares acquired by the ESOP, totaled $6.7 million. In May 2016, the Company repurchased 20,000 shares of its common stock pursuant to its previously announced stock repurchase program.

 

 

 

 

Information contained in this press release may be considered forward-looking in nature as defined by the Private Securities Litigation Reform Act of 1995 and is subject to various risks, uncertainties, and assumptions. Such forward-looking statements in this release are inherently subject to many uncertainties arising in MW Bancorp's operations and business environment. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on MW Bancorp's operating results, performance or financial condition are competition, the demand for our products and services, our ability to maintain current deposit and loan levels at current interest rates, deteriorating credit quality, including changes in the interest rate environment reducing interest margins, changes in prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions, our ability to maintain required capital levels and adequate sources of funding and liquidity, our ability to secure confidential information through the use of computer systems and telecommunications networks, and other factors as set forth in filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended June 30, 2015. MW Bancorp undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

 

 

 

 

MW Bancorp, Inc.
Condensed Consolidated Statements of Income
For the Years Ended June 30, 2016 and 2015
(In thousands, except share data)
         
   Year Ended June 30, 
   2016   2015 
   (Unaudited) 
         
Interest Income        
Loans, including fees  $3,712   $3,198 
Taxable securities   98    104 
Interest-bearing deposits   140    120 
           
Total interest income   3,950    3,422 
           
Interest Expense          
Deposits   877    708 
Federal Home Loan Bank advances   329    294 
           
Total interest expense   1,206    1,002 
           
Net Interest Income   2,744    2,420 
           
Provision for Loan Losses   13    35 
           
Net Interest Income After Provision for Loan Losses   2,731    2,385 
           
Noninterest Income          
Gain on sale of loans   219    50 
Gain on sale of foreclosed assets, net   21    15 
Income from Bank owned life insurance   94    92 
Other operating   44    29 
           
Total noninterest income   378    186 
           
Noninterest Expense          
Salaries, employee benefits and directors fees   1,777    1,402 
Occupancy and equipment   231    135 
Data processing   143    97 
Franchise taxes   95    64 
FDIC insurance premiums   78    70 
Professional services   398    296 
Advertising   56    43 
Office supplies   51    24 
Business entertainment   49    40 
Other   255    255 
           
Total noninterest expense   3,133    2,426 
           
Income (Loss) Before Federal Income Tax Benefit   (24)   145 
           
Federal Income Tax Benefit   (713)   - 
           
Net Income  $689   $145 
           
Basic earnings per share  $0.86    N/A 
Diluted earnings per share  $0.85    N/A 
           
Weighted-average shares outstanding          
Basic   804,698    N/A 
Diluted   808,192    N/A 

 

 

 

 

MW Bancorp, Inc.
Condensed Consolidated Balance Sheets
June 30, 2016 and 2015
(In thousands, except share data)
         
   June 30, 
Assets  2016   2015 
   (Unaudited) 
         
Cash and cash equivalents  $3,672   $3,665 
Interest-bearing time deposits in other financial institutions   2,100    3,100 
Available-for-sale securities   3,465    4,295 
Held-to-maturity securities   986    1,551 
Loans, net of allowance for loan losses of $1,635 and $1,602   101,709    88,878 
Premises and equipment, net   1,158    322 
Federal Home Loan Bank stock, at cost   1,192    1,164 
Foreclosed assets, net   -    104 
Other assets   4,012    3,750 
Deferred tax assets, net   713    - 
           
Total assets  $119,007   $106,829 
           
Liabilities and Shareholders' Equity          
           
Liabilities          
Deposits  $77,214   $68,352 
Federal Home Loan Bank advances   25,319    22,360 
Other liabilities   356    447 
           
Total liabilities   102,889    91,159 
           
Shareholders' Equity          
Preferred stock   -    - 
Common stock   9    9 
Additional paid-in capital   7,400    7,386 
Shares acquired by ESOP   (666)   (701)
Retained earnings   9,756    9,067 
Accumulated other comprehensive loss   (79)   (91)
Treasury stock   (302)   - 
           
Total shareholders' equity   16,118    15,670 
           
Total liabilities and shareholders' equity  $119,007   $106,829 

 

 

 

 

 

MW Bancorp, Inc.
Selected Performance Ratios
At or For the Years Ended June 30, 2016 and 2015
         
   At or for the years ended 
   June 30, 
   2016   2015 
Performance Ratios:          
Return on average assets (ratio of net income          
   to average total assets)   0.61%   0.15%
Return on average equity (ratio of net income          
   to average total equity)   4.36%   1.32%
Interest rate spread (1)   2.30%   2.36%
Net interest margin (2)   2.45%   2.55%
Loans to deposits   133.68%   131.97%
Average equity to average total assets   13.89%   11.57%
           
Asset Quality Ratios:          
Non-performing assets to total assets   1.02%   1.31%
Non-performing loans to total loans   1.17%   1.20%
Allowance for loan losses to non-performing loans   135.24%   147.65%
Allowance for loan losses to total loans   1.58%   1.77%
Net charge-offs (recoveries) to average outstanding loans   -0.02%   -0.04%
           
Capital ratios:          
Equity to total assets at year end   13.54%   14.67%
Total capital to risk weighted assets (3)   19.70%   23.10%
Tier 1 capital to risk-weighted assets (3)   18.40%   21.80%
Common equity to risk-weighted assets (3)   18.40%   21.80%
Tier 1 capital to average assets (3)   12.10%   13.70%
           

 

       
(1) The interest rate spread represents the difference between the average yield on interest-  
earning assets and the average cost of interest-bearing liabilities for the period.    
(2) The net interest margin represents net interest income as a percent of average interest-earning 
assets for the period.      
(3) Bank only capital ratios are presented.