County Bank Corp (OTC Market Place: CBNC) ('the Company'), the holding company for Lakestone Bank & Trust, announced unaudited results for the quarter and nine month periods ended September 30, 2017.
The Company reported net income of $1,443,000 or $0.83 per common share for the third quarter of 2017 compared to net income of $671,000 or $0.62 per common share for the same period of 2016. Net income for the nine month period ended September 30, 2017 was $4,245,000 or $2.43 per common share compared to $1,986,000 or $1.84 per common share for the same period last year. The notable earnings growth realized in 2017 is primarily attributable to the accretive impact of the merger transaction with Capac Bancorp, Inc. completed in September of 2016.
Chief Executive Officer, Bruce Cady, issued the results and commented: 'This was another strong quarter for the Company. We experienced positive operating trends in several key performance measurements as we continue to realize benefits from the merger. We have successfully expanded our market presence, experienced material growth in earning assets and created a more efficient expense structure. We have been able to generate operating leverage with the combined organization and delivered a 0.96% return on average assets during the first nine months of this year. We also paid a dividend of $0.31 per share in the third quarter, the 18th consecutive time the Company has paid a dividend. We are very excited about the results and will continue to look for opportunities to increase shareholder value and deliver on our core mission as the premier community bank in our markets.'
The Company reported total revenue of $19.3 million for the year to date period ending September 30, 2017. This is comprised of $14.9 million in net interest income and $4.4 million in services charges and other fee income. The results were positively impacted by an improved asset mix, increase in earnings assets, growth in deposit fees, additional volume from mortgage loan sales in the secondary market, interchanges fees and servicing income. Net interest margin for the year to date period was 3.79% and non-interest income relative to average assets was 0.99%.
Total non-interest expense for the nine month period was $13.6 million, significantly higher relative to the same period of 2016 due to the merger transaction. However, the efficiency ratio has consistently improved each quarter as a result of focused efforts to enhance performance. As of September 30, 2017 the efficiency ratio was 68.4% compared to 75.8% in 2016.
Total assets as of September 30, 2017 were $595.7 million, an increase of $11.9 million from December 31, 2016. Total portfolio loans reached $329.6 million at the end of the third quarter, an increase of $14.3 million for the nine month period. The growth is a function of market demand and broader network footprint due to the merger. Book value per share as of September 31, 2017 was $34.64 and total Shareholders' Equity was $60.6 million, an increase of 10.1% from December 31, 2106.
County Bank Corp is the holding company for Lakestone Bank & Trust, a full-service community bank serving Lapeer, Macomb and St. Clair counties. The primary Market Maker is Boenning & Scattergood.
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; changes in the national and local economy; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and other factors. The Company assumes no responsibility to update forward-looking statements.