August 12, 2021 (Newswire.com) –
Neighborhood First Bancorporation, Inc. (OTC: CFOK), father or mother firm for Neighborhood First Financial institution, Inc. (the “Financial institution”) and SeaTrust Mortgage Firm (“STM”), introduced its monetary outcomes for the second quarter of 2021. Highlights of the outcomes embody:
• Complete consolidated earnings have been $564,000 for the second quarter, a rise of 57.1% over the primary quarter and a rise of 638.0% over the second quarter of 2020. Earnings for the six-month interval ended June 30, 2021 totaled $923,000, a rise of 98.5% over the primary six months of 2020.
• Internet curiosity earnings grew by 21.4% yr over yr for the primary half of 2021.
• Noninterest earnings included outcomes for STM for the complete six-month interval in 2021 and elevated 157.4% over the extent reported within the first half of 2020.
• Complete belongings at June 30, 2021 have been $638,618,000, a rise of $7,664,000, or 1.2%, in comparison with complete belongings of $630,954,000 as of March 31, 2021, and a rise of 17.4% in comparison with complete belongings of $543,988,000 as of December 31, 2020.
• Complete web loans held for funding elevated 1.8% to $444,960,000 through the quarter, and loans held on the market elevated 20.9% to $15,301,000 in comparison with $12,655,000 as of March 31, 2021.
• Deposits elevated 1.4% through the quarter and 20.7% through the first six months of 2021. The Firm accomplished its acquisition of Safety Federal Financial institution in March 2021 including two full-service places of work in japanese Tennessee to its present community of two places of work in North Carolina and eight places of work in South Carolina.
Complete consolidated earnings of $564,000 have been recorded for the second quarter of 2021 in comparison with $359,000 for the primary quarter of 2021 and $110,000 for the second quarter of 2020. Earnings per widespread share for the second quarter totaled $0.10 in comparison with $.06 and $.01, respectively, for the primary and second quarter of 2020. In comparison with the primary quarter of 2021, within the second quarter the Firm recorded increased web curiosity earnings, a barely decrease provision for mortgage losses, and a decrease provision for earnings taxes.
Internet curiosity earnings grew 11.6% within the second quarter of 2021 in comparison with the primary quarter of 2021 and 29.0% over the second quarter of 2020. Loans held for funding grew a web 1.8% through the second quarter.
The supply for mortgage losses was decrease within the second quarter of 2021 compared to each the primary quarter of 2021 and the second quarter of 2020. The Financial institution skilled a web restoration of earlier charge-offs for the primary six months of 2021.
Noninterest earnings was $545,000 decrease within the second quarter of 2021 than within the first quarter of 2021 as a consequence of declines in inadequate funds revenues, mortgage banking earnings, beneficial properties on the sale of SBA loans, and in swap income. The quarter-over-quarter decline was partially offset by a acquire on a securities sale and will increase in interchange earnings.
Noninterest expense elevated 49.8% for the second quarter compared to the second quarter of 2020 however declined barely (.9%) from the primary quarter of 2021. Merger-related bills totaled $106,000 within the second quarter compared to $489,000 within the first quarter of 2021. There have been no merger-related bills within the second quarter of 2020. Salaries and advantages expense declined barely through the second quarter, even with the addition of Safety Federal Financial institution personnel, as a consequence of a decline in profit prices and commissions on mortgage banking actions. This decline in noninterest expense was partially offset through the second quarter by will increase in advertising and in occupancy bills associated to the addition of the Tennessee branches.
Internet curiosity earnings grew by 21.4% yr over yr for the primary half of 2021 pushed primarily by the rise within the mortgage portfolio ensuing from the merger and mortgage development skilled over the interval. Loans held for funding grew 20.1% yr over yr and $47,440,000, or 11.9%, web, over the six months ended June 30, 2021.
The supply for mortgage losses declined 52.5% within the first half of 2021 compared to the primary half of 2020. Within the second quarter of 2020 the influence of COVID-19 was simply starting to be felt and uncertainty impacted the allowance for mortgage and lease losses (“ALLL”) by way of our qualitative and environmental elements analyses. As well as, the ALLL is usually impacted by the combo of loans within the portfolio throughout numerous mortgage varieties and numerous historic loss figures. In 2020 our Gross sales Finance division skilled important development. This development impacted ratios used within the calculation of the ALLL. Nonetheless, by the primary a part of 2021, vaccinations allowed many companies to open and function, reducing uncertainty for a lot of debtors and development within the Gross sales Finance division moderated considerably. We have now not skilled substantial pandemic-related losses, and an elevated provision for mortgage losses was not warranted within the second quarter of 2021. Nonetheless, unexpected lingering dangers related to the continuing pandemic might influence the ALLL estimates going ahead.
Noninterest earnings elevated 157.4% within the first six months of 2021 in comparison with the primary six months of 2020. STM operated for the complete first six months of 2021, closing roughly $108,000,000 of loans. It started making mortgage loans on the finish of February in 2020. Month-to-month quantity elevated all year long of 2020 as STM employed extra mortgage officers.
Noninterest expense elevated to $13,054,000 for the six-month interval ended June 30, 2021 in comparison with $8,518,000 for the six-month ended June 30, 2020. Noninterest expense associated to salaries and payroll elevated by $2,668,000 within the first six months of 2021 as in comparison with the comparable interval of 2020. Complete salaries and advantages have been primarily impacted by further commissions paid to mortgage lenders on the elevated quantity in addition to further operations personnel at STM and extra personnel added from the merger with Safety Federal Financial institution. Occupancy-related bills additionally elevated in 2021 over the comparable 2020 interval. The Financial institution’s Charlotte and Dallas, North Carolina places of work opened through the first quarter of 2020. The primary six months of 2021 embody a full six months of prices for these areas, further rents for STM areas opened after June 30, 2020, and prices of working the Tennessee branches acquired within the merger. Noninterest expense will increase have been additionally impacted by loan-related prices and information processing and software program prices ensuing from will increase in STM volumes. Noninterest expense in 2021 additionally included merger-related bills of $594,000.
President and CEO Richard D. Burleson commented: “In evaluate of our second quarter numbers and the yr to this point outcomes we’re very inspired by the numerous progress we’ve got made. Particularly when contemplating the merger price influence, it is a important change from years previous. Nonetheless, we’re additionally involved with the decelerate within the mortgage market during the last a number of months. Throughout the highest a part of the pandemic a lot of our mortgage quantity got here from the refinancing and new buy cash growth. We’re starting to see a slow-down in mortgage purposes within the markets we serve. A number of of our communities have skilled a scarcity of provide, pushing up costs. We might be carefully monitoring the markets over the following a number of months.”
At June 30, 2021, complete gross loans held for funding have been $450,040,000, a rise of $47,440,000 or 11.8%, in comparison with complete gross loans held for funding of $402,600,000 at December 31, 2020. The acquisition of Safety Federal Financial institution added $39,319,000 to loans in March 2021. Complete deposits at June 30, 2021 have been $534,523,000 in comparison with $442,868,000 at December 31, 2020, a rise of $91,655,000, or 20.7%, over December 31, 2020 totals. The acquisition of Safety Federal Financial institution added $45,616,000 to complete deposits in March 2021.
Mr. Burleson continued, “The influence of the pandemic on our buyer base was pretty average early within the pandemic. The vast majority of our small enterprise clients have begun to rebound regardless of points with staffing. The vast majority of the PPP loans made by the Financial institution throughout 2020 have been repaid by way of the SBA PPP forgiveness course of, and there is just one remaining pandemic-related deferral within the mortgage portfolio. We are going to proceed to carefully monitor credit score high quality over the approaching months.”
The Financial institution continues to have robust asset high quality. Throughout the second quarter nonperforming belongings (comprising nonperforming loans and foreclosed belongings) decreased barely to $1,379,000 from $1,534,000 at March 31, 2021. Nonperforming belongings have been $976,000 at December 31, 2020. At June 30, 2021, we had six loans totaling roughly $331,000 in our foreclosures pipeline and our overdue percentages for the interval remained beneath .40% on a month-to-month foundation. At June 30, 2021, our ALLL totaled $5,080,000, or 1.13%, of loans held for funding, a rise of 6.5% over December 31, 2020 ranges. This enhance was primarily as a consequence of a rise in excellent loans. The Firm supplied $126,000 and $343,000 to the ALLL within the second quarters of 2021 and 2020, respectively. The rise within the ALLL was primarily as a consequence of natural development within the mortgage portfolio.
Mr. Burleson acknowledged, “We’re very happy concerning the alternatives supplied by our new branches in japanese Tennessee. Our new teammates are excited to supply our model of neighborhood banking into their markets, and our legacy places of work within the Carolinas are wanting ahead to expanded mortgage lending alternatives supplied by the Freddie Mac vendor/ servicer capabilities we acquired within the merger. Our information processing techniques have been efficiently transformed in July 2021, and these places of work now proudly show our signage and branding.”
Mr. Burleson closed his feedback by noting: “Our highest precedence, together with sustaining our effectively capitalized standing, passable liquidity ranges, and our robust credit score tradition, is serving our communities. We’re excited concerning the alternatives we see for the rest of 2021.”
Neighborhood First Financial institution has twelve full-service monetary facilities in North and South Carolina and Tennessee, with two every in Seneca and Anderson and single areas in Greenville, Williamston, Walhalla and Westminster, South Carolina, areas in Dallas and Charlotte, North Carolina, and two areas in Elizabethton, Tennessee. The Firm operates mortgage manufacturing places of work in Harmony and Waynesville, North Carolina and Kingsport, Tennessee. As well as, its SeaTrust Mortgage subsidiary operates places of work in North Carolina, South Carolina, Florida and Tennessee.
Richard D. Burleson, Jr. – President and CEO
Jennifer M. Champagne – Government Vice President and CFO
Supply: Neighborhood First Bancorporation