Ohio Legacy Corp. Reports third quarter earnings

NORTH CANTON, Ohio–Ohio Legacy Corp., parent company of Premier Bank & Trust, reported higher net income for the third quarter of 2016, compared to the same period in 2015.

The corporation reported net income of $316,000, or 14 cents basic and diluted earnings per common share, for the three months ended Sept. 30 compared to net income of $256,000, or 11 cents basic and diluted earnings per common share, for the three months ended Sept. 30, 2015. Results for the third quarter of 2016 included $151,000 in merger-related costs, net of taxes. Net income for the nine months ended Sept. 30, 2016 and 2015 was $1,154,000 and $931,000, respectively. Basic and diluted earnings per common share for the nine months ended Sept. 30, 2016 and 2015 was 51 cents and 40 cents, respectively.

On Sept. 8, the company jointly announced with United Community Financial Corp. that they had entered into a definitive agreement and plan of merger pursuant to which UCFC will acquire the company. The merger is expected to close during the first quarter of 2017 subject to regulatory and shareholder approvals. Rick L. Hull, president and CEO, stated, “We are very pleased with the results of the third quarter and with the response to our merger announcement. The reaction to the news from our clients, the communities we serve and our shareholders has been overwhelmingly positive.”

Total loans increased to $287.5 million at Sept. 30, 2016 compared to $252.9 million at year-end 2015, up $34.5 million or 13.7 percent. Loan growth positively impacted growth in net interest income for the 2016 reported periods compared to 2015. Net interest income increased $573,000, or 8.8 percent, for the nine months ended Sept. 30, 2016, including an increase of $181,000 for the third quarter of 2016. The net interest margin was 3 percent for the third quarter of 2016 compared to 3.03 percent for the trailing quarter of 2016 and 3 percent for the third quarter of 2015. Net interest margin for the first nine months of 2016 was 3.02 percent compared to 3.10 percent for the same period in 2015.

The provision for loan loss expense was $125,000 for the third quarter and $233,000 for the year-to-date periods of 2016 compared to provision expense of $279,000 for the third quarter of 2015 and $345,000 for the first nine months of 2015. The allowance for loan losses as a percentage of total loans was 1 percent at Sept. 30, 2016, compared to 1.04 percent at Dec. 31, 2015. Nonperforming loans as a percentage of total loans decreased to 0.59 percent at Sept. 30, 2016, compared to 0.77 percent at year-end 2015.

Total deposits were $271.1 million at Sept. 30, 2016, up $17.3 million from year-end, and up $25.1 million, or 10.2 percent, from Sept. 30, 2015. Average total deposits for the third quarter of 2016 were $263.9 million, compared to $256.2 million for the trailing quarter and $239.7 million for the third quarter of 2015.

Total noninterest income increased $153,000 to $724,000 for the third quarter of 2016 compared to the same quarter of 2015. For the first nine months of 2016, total noninterest income increased $338,000 to $1.9 million. Trust and brokerage fee income increased to $403,000 for the third quarter of 2016, up $59,000, or 17.2 percent, from $344,000 for the third quarter of 2015. Trust and brokerage fees were $1.1 million for the first nine months of 2016, up $119,000, or 12 percent, compared to the first nine months of 2015. Gains on the sale of mortgage loans contributed $175,000 to noninterest income during the third quarter of 2016, an increase of $136,000 compared to the third quarter of 2015. Gains on the sale of mortgage loans for the first nine months of 2016 totaled $387,000 and were up $151,000 from the same period of 2015.

Noninterest expense increased by $393,000 and included $229,000 of merger-related expenses during the third quarter of 2016 compared to the same quarter of 2015. Noninterest expense for the first nine months of 2016 was up $667,000, compared to 2015.

Book value per common share was $13.66 at Sept. 30, 2016, compared to $13.13 at year-end 2015 and $13.06 at the end of the third quarter of 2015. Tangible book value per common share was $13.32 at Sept. 30, 2016, compared to $12.77 at year-end 2015 and $12.70 a year ago.

Ohio Legacy Corp is a bank holding company with total assets of $346 million with four Premier Bank & Trust offices located in North Canton, Fairlawn and St. Clairsville, Ohio.

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