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QUARTERLY FINANCIAL INFORMATION (Tables)
12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Data

The following table presents summarized quarterly data for each of the years indicated.

 

 

 

Unaudited

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

 

 

 

2017:

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Total

 

 

 

(Dollars in thousands, except per share data)

 

Interest income

 

$

21,060

 

 

$

23,553

 

 

$

24,048

 

 

$

24,849

 

 

$

93,510

 

Interest expense

 

 

2,584

 

 

 

3,059

 

 

 

3,545

 

 

 

3,969

 

 

 

13,157

 

Net interest income

 

 

18,476

 

 

 

20,494

 

 

 

20,503

 

 

 

20,880

 

 

 

80,353

 

Provision for loan losses

 

 

1,475

 

 

 

842

 

 

 

721

 

 

 

1,215

 

 

 

4,253

 

Net interest income after provision for loan losses

 

 

17,001

 

 

 

19,652

 

 

 

19,782

 

 

 

19,665

 

 

 

76,100

 

Non-interest income

 

 

5,384

 

 

 

7,090

 

 

 

6,305

 

 

 

6,460

 

 

 

25,239

 

Non-interest expenses

 

 

20,290

 

(1)

 

15,176

 

 

 

15,464

 

 

 

17,329

 

(2)

 

68,259

 

Income before taxes

 

 

2,095

 

 

 

11,566

 

 

 

10,623

 

 

 

8,796

 

 

 

33,080

 

Income tax expense

 

 

557

 

 

 

3,377

 

 

 

3,067

 

 

 

4,294

 

(3)

 

11,295

 

Net income

 

$

1,538

 

 

$

8,189

 

 

$

7,556

 

 

$

4,502

 

 

$

21,785

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

0.03

 

 

$

0.16

 

 

$

0.15

 

 

$

0.09

 

 

$

0.44

 

Diluted earnings

 

 

0.03

 

 

 

0.16

 

 

 

0.15

 

 

 

0.09

 

 

 

0.44

 

 

 

1.

Non-interest expense was higher for the first quarter of 2017 as a result of the recognition of $5.0 million associated with the Ohio Legacy acquisition discussed above.  

 

2.

During the fourth quarter 2017, the Company recognized a $2.3 million other asset impairment charge. In 2003, Home Savings entered into two development loans on which the borrower subsequently filed bankruptcy, and a Court appointed receiver liquidated the collateral.  The proceeds from the sale of the collateral have remained in escrow with the Court since 2007 as a number of competing claims were made against the proceeds.  In 2011, a lower court affirmed Home Savings' priority position in the proceeds, and its lien validity was affirmed by the same Court in 2016.  However, in December 2017, an Appellate Court ruled that a portion of the proceeds should be awarded to another claimant.  The $2.3 million charge reflects the Appellate court ruling.  It is the Company’s intent to continue to pursue a full recovery.  

 

3.

Includes $1.5 million in additional tax expense due to the remeasurement of net deferred tax assets as part of the Tax Cuts and Job Act.

 

 

 

Unaudited

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

 

 

 

2016:

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Total

 

 

 

(Dollars in thousands, except per share data)

 

Interest income

 

$

17,020

 

 

$

17,399

 

 

$

17,815

 

 

$

18,495

 

 

$

70,729

 

Interest expense

 

 

2,147

 

 

 

2,065

 

 

 

2,055

 

 

 

2,161

 

 

 

8,428

 

Net interest income

 

 

14,873

 

 

 

15,334

 

 

 

15,760

 

 

 

16,334

 

 

 

62,301

 

Provision for loan losses

 

 

2,155

 

 

 

395

 

 

 

1,344

 

 

 

1,493

 

 

 

5,387

 

Net interest income after provision for loan losses

 

 

12,718

 

 

 

14,939

 

 

 

14,416

 

 

 

14,841

 

 

 

56,914

 

Non-interest income

 

 

4,658

 

 

 

5,780

 

 

 

6,003

 

 

 

5,635

 

 

 

22,076

 

Non-interest expenses

 

 

12,464

 

 

 

12,860

 

 

 

12,978

 

 

 

13,717

 

(1)

 

52,019

 

Income before taxes

 

 

4,912

 

 

 

7,859

 

 

 

7,441

 

 

 

6,759

 

 

 

26,971

 

Income tax expense (benefit)

 

 

1,592

 

 

 

2,529

 

 

 

2,288

 

 

 

1,734

 

 

 

8,143

 

Net income

 

$

3,320

 

 

$

5,330

 

 

$

5,153

 

 

$

5,025

 

 

$

18,828

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

0.07

 

 

$

0.11

 

 

$

0.11

 

 

$

0.11

 

 

$

0.40

 

Diluted earnings

 

 

0.07

 

 

 

0.11

 

 

 

0.11

 

 

 

0.11

 

 

 

0.40

 

 

 

1.

Non-interest expense was higher for the fourth quarter of 2016 as a result of the recognition of $787,000 in merger related expenses associated with the Ohio Legacy acquisition discussed above.