EX-99.1 2 a5452370ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Emclaire Financial Corp. Announces Second Quarter and Year to Date 2007 Earnings EMLENTON, Pa.--(BUSINESS WIRE)--July 20, 2007--Emclaire Financial Corp. (OTCBB:EMCF), the parent holding company of the Farmers National Bank of Emlenton, reported consolidated net income of $707,000 or $0.56 per share for the three months ended June 30, 2007. Net income for the quarterly period increased $105,000 or 17.4%, as compared to net income of $602,000 or $0.47 per share for the quarter ended June 30, 2006. The Corporation's annualized return on average assets and equity were 0.95% and 11.77%, respectively, for the three months ended June 30, 2007, versus 0.87% and 10.25%, respectively, for the same period in the prior year. Net income for the six-month period ended June 30, 2007 was $1.3 million or $0.99 per share. Net income for the year to date period increased $71,000 or 5.9%, as compared to net income of $1.2 million or $0.94 per share for the same period in the prior year. The Corporation's annualized return on average assets and equity were 0.85% and 10.57%, respectively, for the current year to date period, as compared to 0.87% and 10.15%, respectively, for the same period in the prior year. The increase in net income for the quarter and year to date periods ended June 30, 2007, compared to the same periods in 2006, was primarily due to an increase in net interest income, partially offset by an increase in noninterest expense. The increase in net interest income was primarily due to growth in the loan portfolio, particularly with respect to commercial loans. The increase in noninterest expenses was primarily due to increased professional fees for compliance and operations consulting. During the six-month period ended June 30, 2007, total assets decreased $2.2 million or 1.0% to $298.3 million at June 30, 2007, from $300.6 million at December 31, 2006. Cash equivalents decreased $10.5 million between year-end 2006 and June 30, 2007 resulting primarily from an increase in loans receivable of $6.8 million and a decrease in customer deposits of $4.5 million. Stockholders' equity was $24.0 million at June 30, 2007. The Corporation remains well capitalized and is positioned for continued growth with total stockholders' equity at 8.0% of total assets. At June 30, 2007, book value per share amounted to $18.92. Emclaire Financial Corp. is the parent company of The Farmers National Bank of Emlenton, an independent, nationally chartered, FDIC-insured community bank headquartered in Emlenton, Pennsylvania, operating eleven full service offices in Venango, Butler, Clarion, Clearfield, Elk and Jefferson counties, Pennsylvania. The Corporation's common stock is quoted on and traded through the OTC Electronic Bulletin Board under the symbol "EMCF". For more information, visit the Corporation's website at "www.emclairefinancial.com". This news release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Such factors include, but are not limited to, changes in interest rates which could effect net interest margins and net interest income, the possibility that increased demand or prices for the Corporation's financial services and products may not occur, changing economic and competitive conditions, technological and regulatory developments, and other risks and uncertainties, including those detailed in the Corporation's filings with the Securities and Exchange Commission. The Corporation does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements. EMCLAIRE FINANCIAL CORP. AND SUBSIDIARY Financial Highlights (Unaudited - Dollar amounts in thousands, except share data) CONSOLIDATED OPERATING RESULTS DATA: Three month period Six month period ended June 30, ended June 30, 2007 2006 2007 2006 ---------- ------- -------- ------- Interest income $4,416 $3,931 $8,728 $7,675 Interest expense 1,918 1,614 3,921 3,097 ---------- ------- -------- ------- Net interest income 2,498 2,317 4,807 4,578 Provision for loan losses 30 47 75 78 Noninterest income 772 769 1,503 1,497 Noninterest expense 2,336 2,253 4,646 4,468 ---------- ------- -------- ------- Net income before provision for income taxes 904 786 1,589 1,529 Provision for income taxes 197 184 331 342 ---------- ------- -------- ------- Net income $ 707 $ 602 $1,258 $1,187 ========== ======= ======== ======= Net income per share $ 0.56 $ 0.47 $ 0.99 $ 0.94 Dividends per share $ 0.29 $ 0.27 $ 0.58 $ 0.54 Return on average assets (1) 0.95% 0.87% 0.85% 0.87% Return on average equity (1) 11.77% 10.25% 10.57% 10.15% Yield on average interest-earning assets 6.54% 6.29% 6.49% 6.24% Cost of average interest-bearing liabilities 3.41% 3.10% 3.47% 3.02% Net interest margin 3.77% 3.78% 3.64% 3.79% ____________________ (1) Returns are annualized for the three and six month periods ended June 30, 2007 and 2006. CONSOLIDATED FINANCIAL CONDITION DATA: As of As of 6/30/2007 12/31/2006 ----------- ------------ Total assets $ 298,348 $ 300,560 Cash and equivalents 6,170 16,717 Securities 52,712 51,774 Loans 220,149 213,344 Deposits 239,968 244,492 Borrowed funds 31,700 30,000 Stockholders' equity 23,990 23,917 Book value per share $ 18.92 $ 18.86 Net loans to deposits 91.74% 87.26% Allowance for loan losses to total loans 0.94% 0.94% Earning assets to total assets 92.30% 92.89% Stockholders' equity to total assets 8.04% 7.96% Shares of common stock outstanding 1,267,835 1,267,835 CONTACT: Emclaire Financial Corp. David L. Cox Chairman of the Board, President and Chief Executive Officer -or- William C. Marsh Chief Financial Officer and Treasurer Phone: 724-867-2311