Bank of McKenney Q2 earnings $376,000Staff writer ▼ | September 28, 2015
Bank of McKenney announced earnings of $376,000 for the second quarter ending June 30, 2015, compared to net income of $539,000 for the same period in 2014.
Bank of McKenney The reduction of income
Return on average equity on an annualized basis for the six months ended June 30, 2015 was 6.36% as compared to 7.85% for the first half of 2014. Return on average assets during the same period of 2015 decreased to 0.70% from the prior year level of 0.81%. For the rolling twelve month period ended June 30, 2015, return on average equity was 7.40% and return on average assets was .81%.
Tier 1 leverage capital was 11.12% and total regulatory capital was 14.79% as of June 30, 2015 compared to 10.84% and 14.42% respectively at December 31, 2104.
At the end of the second quarter, total assets were $217.1 million, representing a .5% increase over the December 31, 2014 level of $216.1 million. Loans increased $5.4 million to 166.7 million compared to the balance at December 31, 2014.
The investment portfolio decreased $5.4 million over the same period. Federal funds sold increased from $8.8 million on December 31, 2014 to $10.1 million on June 30, 2015.
Cumulatively, earning assets grew $1.6 million in the first six months of 2015, and represent 90.9% of total assets. Other Real Estate Owned (OREO) amounted to $773,000 and $1.6 million at June 30, 2015 and December 31, 2014, respectively.
Total deposits amounted to $189.6 million at June 30, 2015 compared to $189.2 million at December 31, 2014. Total shareholders' equity has increased $758 million year-to-date.
Net interest income increased 2.41% or $55,000 to $2.4 million in the first quarter of 2015 from the comparable period in 2014. Increased loan volume and lower interest expense due to rate changes and fewer interest-bearing deposits provided for the increase.
As previously discussed, there was a provision for loan loss in the quarter of $300,000 compared to $50,000 in the same period of 2014. Noninterest income was $252,000 less than the second quarter of 2014 due to a non-recurring gain on the sale of OREO in 2014.
Noninterest expenses were $200,000 less due to cost containment efforts and reversal of some incentive accruals. ■