CCF Holding Company, the Holding Company for Heritage Bank Announces 34% Earnings Increase for the Quarter Ending March 31, 2006.JONESBORO Jonesboro, city (1990 pop. 46,535), a seat of Craighead co., NE Ark., on Crowley's Ridge; founded 1859, inc. 1883. The city services a rich agricultural area with many processing plants. , Ga. -- CCF CCF abbr. Cooperative Commonwealth Federation of Canada Holding Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CCFH CCFH Codex Committee on Food Hygiene )
Three-months Three-months Three-months
ended ended ended
March 31, Dec. 31, March 31,
2006 2005 2005
------------ ------------ ------------
(unaudited in thousands except for
percentages and earnings per share
figures)
Total Assets $408,514 $364,203 $347,295
CCF Net Income for the Period $1,064 $1,124 $795
Gains(Losses) on Loans & Other
Assets ($210) ($18) $327
Net Interest Income for the
Period $4,380 $4,169 $3,302
Basic Earnings per Share for the
Period $0.44 $0.47 $0.34
Net Interest Margin 5.09% 4.94% 4.22%
Efficiency Ratio 60.66% 62.59% 67.84%
Total Loans (end of period) $306,380 $283,392 $268,332
Non-Performing Loans (end of
period) $828 $44 $632
(a)Non-Performing Assets (end of
period) $2,908 $2,355 $3,492
(a)Defined as nonperforming loans, other real estate owned and
repossessed assets.
Three-months Three-months Three-months
ended ended ended
March 31, December 31, March 31,
2006 2005 2005
------------ ------------ ------------
(unaudited (audited in (unaudited
in thousands in
thousands except for thousands
except for percentages except for
percentages and percentages
and earnings and
earnings per share earnings
per share figures) per share
figures) figures)
Loan Loss Provision $185 $135 $135
Loan Loss Reserve (end of
period) $3,575 $3,424 $3,277
Total Deposit Accounts (end of
period) $341,861 $312,255 $301,539
(b)Total Transaction Accounts
(end of period) $189,100 $176,956 $149,033
Consolidated Equity (end of
period) $25,366 $24,218 $22,296
(b)Defined as non-interest bearing demand deposit accounts, interest
bearing demand deposit accounts and money market accounts.
Earnings for the quarter ending March 31, 2006, were $1.06 million, or $0.44 per basic share. This represents an increase of $269,000, or 34%, over earnings of $795,000, or $0.33 per basic share for the same quarter in 2005. The first quarter of 2005 had gains of $327,000 as compared to the first quarter of 2006, which had a loss on a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most of $201,500. The write-down was done in order to bring the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the property to its contracted sales price. The net interest margin showed continued improvement during the first quarter of 2006 to 5.09%, up 87 basis points from 4.22% for the three-months ended March 31, 2005, and up 15 basis points from December December: see month. 31, 2005 when the margin was 4.94%. For the twelve-month period, the Company's balance sheet was asset sensitive meaning that in an increasing rate environment, as experienced in 2005 and the first quarter of 2006, the margin improved. The yield on earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased during the twelve-month period by 153 basis points from 6.36% at March 31, 2005, to 7.89% at March 31, 2006. Due to an increase in the transaction account base and less reliance on time deposits during this period, the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased by just 62 basis points from 2.10% at March 31, 2005, to 2.72% at March 31, 2006. This combination resulted in a $1.1 million increase in net interest income for the quarter ending March 31, 2006, over the quarter ending March 31, 2005, and an increase of $211,000 over the prior quarter, ending December 31, 2005. Loan growth for the quarter ending March 31, 2006, totaled $23 million. The growth has been primarily in the commercial real estate and residential construction categories. In order to fund this growth, the bank has purchased higher cost deposits and borrowed from the Federal Home Loan Bank. Although the margin has been improving steadily, due to these funding requirements, the rate of increase in the margin is expected to slow. The efficiency ratio for the quarter ending March 31, 2006, was 60.66%, a decrease over the quarter ending March 31, 2005, which had a ratio of 67.84%. Although other expenses increased by $242,000, service charge income and net interest income improved at a faster pace which resulted in an improved efficiency ratio. The increase in other expenses was primarily salaries of $128,000, which related to annual increases, with the remaining increase in expenses spread throughout many categories. During the quarter ending March 31, 2006, nonperforming loans increased $784,000. This was comprised primarily of two loans secured by commercial real estate. Since quarter end, the customer has sold the buildings and the buyer has assumed the debt, resulting in recovery of all interest due and returning the loans to accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. status. The Bank had non-performing assets of $2.9 million at March 31, 2006, $2.0 million is related to one piece of other real estate owned with the balance of $828,000 in non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. , discussed above. The real estate owned balance is net of a write down of $201,500, reflected in March 31, 2006 quarterly earnings. The additional write-down was required when the contracted sales price was less than the carrying value of the real estate owned. The loan loss reserve was $3.6 million at March 31, 2006, equaling 1.16% of loans outstanding. Based on the Bank's internal calculation, the allowance for loan losses is adequate. Management will continue to monitor and adjust the allowance as necessary during the year based on growth in the loan portfolio, loss experience, workout Workout Informal repayment or loan forgiveness arrangement between a borrower and creditors. workout 1. The process of a debtor's meeting a loan commitment by satisfying altered repayment terms. of non-performing loans and non-performing assets, condition of borrowers, and continued monitoring of local economic conditions, as well as any other external factors. Transaction accounts, defined as non-interest bearing demand deposit accounts, interest bearing demand deposit accounts and money market accounts, increased $12.1 million in the quarter ending March 31, 2006, to $189.1 million, from $177.0 million at December 31, 2005. For the twelve-month period, from March 31, 2005 to March 31, 2006, transaction accounts increased by $40.1 million, or 23%, from $149.1 million at March 31, 2005, to $189.1 million at March 31, 2006. This shift in the deposits of the Bank from time deposit accounts to transaction accounts contributed to the improvement in net interest income for both periods. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: equity increased $3.1 million, or 13.8%, for the Company during the twelve-month period from March 31, 2006, to March 31, 2005. This increase is attributed to earnings, net of dividends and changes in the market value of the Bank's securities portfolio. The Company declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend of $0.085 per share for the quarter ending March 31, 2006. This represents an increase of 42% over the $0.06 per share dividend paid for the quarter ending March 31, 2005. For more information on Heritage Bank's business products, please call 770-478-8881. Heritage Bank, a state chartered commercial bank, has been serving metro Atlanta's Southern Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. since 1955. The independent community bank features a well-rounded offering of commercial and consumer products, and is an active, involved member of the community it serves. The Bank has seven full service offices. The company's stock is traded on The Nasdaq Small Cap Market under the symbol "CCFH." For more information, visit the Heritage Bank website at www.heritagebank.com. The information contained in this press release should be reviewed in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound filing when available on the EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. system. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about our business and prospects, including forward-looking statements with respect to the potential effects of the write-down discussed above, as to which there are numerous risks and uncertainties that generally are beyond our control. Some of these risks include the possibility that our estimate of the effect of the write-down on earnings per share or of the market value and prospects of the property in question are incorrect Incorrect means to not be correct and may also refer to:
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