CBKS 2014 annual results
(not posted on their website but I requested a copy of their 2014 report)
Earning increased 42.2% to $2,411,000 in 2014 from $1,696,000 for 2013.
Equity increased from $41,724,000 in 2013 to $44,333,000 in 2014, shares outstanding still stand at 4,976,521
Book value increased from $8.38 to $8.91
They state:
- Loan demand was strong with year-end loans increasing to $345,456,000.
- Tier 1 Capital of 8.26% and Total Risk-Based Capital of 11.90% continued to improve as we crossed the important Tier 1 threshold of 8%.
- Our Reserve for Loan Losses totaled $5,118,000 (1.48% of total loans) being more than fully reserved to accounting and regulatory standards.
- Nonperforming Assets at year-end 2014 reflected a reduction of 23% to $17,777,000 with the reduction being a major contributor to increased earnings.
- Deposits decreased to $415,515,000 continuing our short-term strategy.
- Bank stock prices have begun to reflect our financial improvement.
We are gratified by our financial results in 2014 but not nearly satisfied.
CBKS still operates under the Consent Order with the FDIC from Feb. 2012. The order requires, among other things, that the Bank shall maintain an 8% Tier 1 Capital and 12% Total Risk Based Capital ratio and submit a written plan to the FDIC and the OFR to reduce classified assets.
At 12/31/2014, the Bank would be considered adequately capitalized under current regulations, however, the Bank was in compliance with the 8% Tier 1 capital ratio but was not in compliance with the 12% Total risk based capital ratio as mandated by the Order. Based on the Bank's 2015 projections, management of the Bank expects to meet the increased capital ratios during 2015.
As 'Enterprising Investor' pointed out in an earlier post CBKS will most likely be allowed to earn its way out from the consent order. Excellent call
Part of the improved earnings of 2014 vs. 2013 is the Provision for income taxes line item ($0 vs $850,000)
