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Empire Bancorp, Inc. (EMPK)

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Previous Close10.45
Open10.50
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Day's Range10.40 - 10.50
52 Week Range8.60 - 13.98
Volume31,018
Avg. Volume5,520
Market Cap81.557M
Beta (5Y Monthly)0.69
PE Ratio (TTM)17.69
EPS (TTM)0.59
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  • GlobeNewswire

    Flushing Financial Corporation Announces Receipt of Remaining Regulatory Approvals for Acquisition of Empire Bancorp, Inc.

    Empire Special Shareholder Meeting Date and Election Deadline EstablishedUNIONDALE and ISLANDIA, N.Y., Sept. 21, 2020 (GLOBE NEWSWIRE) -- John R. Buran, President and CEO of Flushing Financial Corporation (“Flushing”) (NASDAQ- GS: FFIC) announced, “We are pleased that we have received all remaining approvals from the banking regulators to move forward on our acquisition of Empire Bancorp, Inc. (“Empire”) (OTC: EMPK). The transaction is expected to close effective on or about October 31, 2020. This acquisition will bring together two organizations with similar cultures and values, creating one of Long Island’s largest community banks by deposit share. We will create a community bank of superior scale and operational leverage enabling us to improve service to our customers, reduce costs and enhance shareholder value. The merger will expand Flushing’s presence on Long Island, a market of over 140,000 businesses with consumers having a median household income of over $100,000. We expect earnings accretion of 20% in 2021 with additional future opportunities as we build upon Empire’s business relationships.” Douglas C. Manditch, President and CEO of Empire stated, “We believe the combination of these two strong community banks will further lever the significant investments both entities have made in people, processes and technology and positively impact our earnings potential. Empire will hold a special shareholders meeting on October 27, 2020 with the proxy materials for the meeting being mailed to each shareholder on or about September 25, 2020. The deadline for the process in which each Empire shareholder will have the opportunity to elect cash or stock consideration, subject to the allocation and proration procedures set forth in the Agreement and Plan of Merger, dated as of October 24, 2019, will be October 27, 2020. The election materials will be mailed to Empire shareholders at the same time as the proxy materials for the special meeting of Empire shareholders. The closing of the merger of Empire with and into Flushing remains subject to the approval of the Empire shareholders at the special meeting, as well as other customary closing conditions.”About Flushing Financial CorporationFlushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, a New York State-chartered commercial bank insured by the Federal Deposit Insurance Corporation. Flushing Bank serves consumers, businesses, professionals, corporate clients, and public entities by offering a full complement of deposit, loan, equipment finance, and cash management services through its banking offices located in Queens, Brooklyn, Manhattan, and on Long Island. As a leader in real estate lending, the Bank’s experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. Flushing Bank is an Equal Housing Lender. Flushing Bank also operates an online banking division consisting of iGObanking.com®, which offers competitively priced deposit products to consumers nationwide, and BankPurely®, an eco- friendly, healthier lifestyle community brand.Additional information on Flushing Bank and Flushing may be obtained by visiting Flushing’s website at http://www.flushingbank.com.About Empire Bancorp, Inc.Empire Bancorp, Inc. (OTC: EMPK) is a bank holding company for Empire Bank, a Long Island-based independent bank that specializes in serving the financial services needs of privately-owned small and medium-sized businesses, professionals, nonprofit organizations, real estate investors and consumers through a wide variety of tailored loan and deposit products and business banking services. Empire Bank has four full-service banking offices located in Islandia, Shirley, Port Jefferson Station, and Mineola.Cautionary Notes on Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include: management plans relating to the proposed transaction; the expected timing of the completion of the proposed transaction; the ability to complete the proposed transaction; the ability to obtain any required regulatory, shareholder or other approvals; any statements of the plans and objectives of management for future operations, products or services, including the execution of integration plans relating to the proposed transaction; any statements of expectation or belief; projections related to certain financial metrics; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “seek,” “plan,” “may,” “will,” “should,” “could,” “would,” “target,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions or negatives of these words. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Neither Flushing nor Empire assumes any duty and does not undertake to update any forward-looking statements. Because forward-looking statements are by their nature, to different degrees, uncertain and subject to assumptions, actual results or future events could differ, possibly materially, from those that Flushing or Empire anticipated in its forward-looking statements, and future results could differ materially from historical performance.Factors that could cause or contribute to such differences include, but are not limited to, those included under Item 1A “Risk Factors” in Flushing’s Annual Report on Form 10-K as of December 31, 2019 and those disclosed in Flushing’s other periodic reports filed with the SEC, as well as the possibility that the expected benefits of the proposed transaction may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the proposed transaction may not be timely completed, if at all; that prior to the completion of the proposed transaction or thereafter, Flushing’s and Empire’s respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies related to the proposed transaction; that required regulatory, shareholder or other approvals are not obtained or other customary closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies’ shareholders, customers, employees and other constituents to the proposed transaction; and diversion of management time on merger-related matters. These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus that is included in the registration statement on Form S-4 filed with the SEC in connection with the proposed transaction, as amended and supplemented from time to time. While the list of factors presented here and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. For any forward-looking statements made in this report or in any documents, Flushing and Empire claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.Additional Information and Where to Find ItIn connection with the merger, Flushing filed a supplement to the registration statement on Form S-4 with the SEC, and Flushing’s supplement to the registration statement, as amended, was declared effective by the SEC on September 21, 2020. Flushing may file other documents with the SEC regarding the merger. A definitive proxy statement/prospectus will be mailed to Empire shareholders on or about September 25, 2020. Before making any voting or investment decision, investors and shareholders of Flushing and Empire are urged to carefully read the entire registration statement, proxy statement/prospectus and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about the merger. Copies of the registration statement, the proxy statement/prospectus (each as amended and supplemented from time to time) and other relevant documents filed with the SEC may be obtained free of charge from the SEC’s website at www.sec.gov, from Flushing by sending a written request to Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, Flushing Financial Corporation, at 220 RXR Plaza, Uniondale, New York 11556, telephone (718) 961-5400, or from Empire by sending a written request to Empire Bancorp, 1707 Veterans Highway, Islandia, NY 11749, Attn: William Franz or calling 631-348- 4444.Investors and shareholders are also urged to carefully review and consider Flushing’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and proxy statements. The documents filed by Flushing with the SEC may be obtained free of charge from the SEC’s website at www.sec.gov or through a link on Flushing’s website at www.flushingbank.com. These documents may also be obtained free of charge from Flushing by sending a written request to Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, Flushing Financial Corporation, at 220 RXR Plaza, Uniondale, New York 11556, telephone (718) 961-5400.Participants in the SolicitationFlushing, Empire and certain of their respective directors and executive officers, under the SEC’s rules, may be deemed to be participants in the solicitation of proxies of Empire’s shareholders in connection with the proposed transaction. Information about the directors and executive officers of Flushing and their ownership of Flushing common stock is set forth in the proxy statement for Flushing’s 2020 Annual Meeting of Stockholders filed with the SEC on April 16, 2020. Information about the directors and executive officers of Empire is available on Empire’s website at empirenb.com. Additional information regarding the interests of those participants and other persons who may be deemed participants in the solicitation of proxies from Empire’s shareholders in connection with the proposed transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction, as amended and supplemented from time to time. Free copies of the proxy statement/prospectus, as amended and supplemented from time to time, may be obtained as described in the preceding paragraph.No Offer or SolicitationThis communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.Contact:     Flushing Financial CorporationEmpire Bancorp, Inc. Susan K. CullenWilliam Franz Senior Executive Vice President,SVP, Director of Marketing & Chief Financial OfficerInvestor Relations (718) 961-5400(631) 348-4444

  • GlobeNewswire

    Empire Bancorp Announces Second Quarter Earnings

    Net Income Increases Significantly Quarter over Quarter to $2 MillionISLANDIA, N.Y., July 24, 2020 (GLOBE NEWSWIRE) -- Empire Bancorp, Inc. (OTCQX: EMPK), today announced its financial results for the quarter and through mid-year ended June 30, 2020. “We are pleased to report a substantial increase in quarter over quarter net income resulting in a $2.0 million profit for the quarter ending June 30, 2020.  Our second quarter performance yielded significant improvements in several key financial metrics:  Return on Average Assets of 0.78%, Return on Average Equity of 9.26% and an Efficiency Ratio of 60.02%.  Even so, we recognize that the COVID-19 pandemic continues to present many challenges, and we remain focused on the impact of the pandemic on credit quality.  As we move forward, we continue to keep our customers, employees and shareholders at the forefront of our thoughts and overall planning,” stated Chief Executive Officer Douglas C. Manditch.Quarterly HighlightsFinancial Results * Net income, measured on a consolidated basis, for the second quarter of 2020 was $2.0 million, compared to net income of $321 thousand for the first quarter of 2020, and net income of $863 thousand for the second quarter of 2019. * Diluted earnings per common share for the second quarter of 2020 were $0.26, compared to $0.04 for the first quarter of 2020, and $0.11 for the second quarter of 2019. * Return on average assets and average common stockholders' equity for the second quarter of 2020 were 0.78% and 9.26%, respectively, compared with 0.12% and 1.52%, respectively, for the first quarter of 2020, and 0.33% and 4.51%, respectively, for the second quarter of 2019. * Efficiency ratio for the second quarter of 2020 was 60.02%, as compared to 85.50% for the first quarter of 2020 and 81.93% for the second quarter of 2019.President Thomas M. Buonaiuto noted, “Our operating performance for the first six months of 2020 reflects the positive impacts of the current interest rate environment on our cost of funds, prepayment penalties and reductions in salaries and benefits reflecting reduced staffing, offset by increases in the allowance for loan losses given the current economic environment.  The pandemic has created challenges for many small businesses throughout our market area, and we believe that our ability to continue to serve the financial services needs of our local community during this time, including through our active participation in the SBA’s Paycheck Protection Program, has been critical.  As a high touch bank, we have been regularly communicating with our customers to better understand and serve their needs and look forward to working with our PPP borrowers to complete the loan forgiveness process to enable them to convert their loans into grants.”Mid-Year HighlightsFinancial Results * Net income, measured on a consolidated basis, for the first six months of 2020 increased $728 thousand, or 45.4%, to $2.3 million, as compared to the same period in 2019. * Diluted earnings per common share for the first six months of 2020 were $0.30, compared with $0.21 for the same period in of 2019. * Return on average assets and average common stockholders' equity for the first six months of 2020 were 0.45% and 5.45%, respectively, compared with 0.31% and 4.33%, respectively,  for the same period in 2019. * Efficiency ratio for the first six months of 2020 was 71.89%, as compared to 84.10% for the same period in 2019.Franchise Development * Total assets were $1.05 billion at June 30, 2020, up 1.5% from $1.04 billion at June 30, 2019. * Loans outstanding totaled $697.3 million at June 30, 2020, up 2.4% from $680.8 million at June 30, 2019. Excluding SBA PPP loans, loans outstanding decreased $42.1 million, or 6.2%, from June 30, 2019. * Deposits totaled $933.1 million at June 30, 2020, up 0.8% from $925.4 million at June 30, 2019. Credit Quality * Loans classified as nonaccrual dropped to $2.8 million at June 30, 2020, or 0.4%, of total loans outstanding, compared to $3.1 million, or 0.5%, at March 30, 2020.  * Provision expense was elevated for the second and first quarter of 2020 due to the economic uncertainty surrounding the impact of COVID-19.  A provision of $600 thousand was recorded for loan losses for the second quarter of 2020, compared to $622 thousand during the first quarter of 2020 and $168 thousand recorded for the second quarter of 2019.    * As of June 30, 2020, the allowance for loan losses was 1.01% of total loans. * Deferred payment loans reached approximately $220 million at the high point in the quarter, while ending the quarter at $209.8 million. These are loans to borrowers that have asked for payment deferments up to six months due to the uncertainty associated with the COVID-19 pandemic virus and how it effects their cash flow.Balance SheetAssets totaled $1.05 billion at June 30, 2020, up $51.3 million, or 5.1%, from March 31, 2020 and up $15.2 million, or 1.47%, from June 30, 2019.  Total cash and cash equivalents increased $79.4 million, or 157.0%, to $130.0 million from $50.6 million at March 31, 2020, and increased $91.4 million, or 236.4%, from $38.6 million at June 30, 2019. Gross loans were $697.3 million at June 30, 2020, an increase of $27.4 million, or 4.1%, from $669.9 million at March 31, 2020, and an increase of $16.5 million, or 2.4%, from $680.8 million at June 30, 2019.  The increase in gross loans was attributable solely to the origination of $60.1 million in loans under the SBA’s Payroll Protection Program (PPP) during the second quarter of 2020.  The PPP loans bear interest at a rate of 1.0% over a two-year term, although they may be repaid at any time, and generate fee income to the bank ranging from 1% to 5% of the initial principal balance of each loan,  based on the loan amount and the fees are amortized as a yield adjustment. The yield on SBA PPP loans for the quarter ended June 30, 2020 was approximately 2.64%.  Excluding SBA PPP loans, loans outstanding decreased $42.1 million, or 6.2%, from June 30, 2019.  The decrease in gross loans, other than SBA PPP loans, as compared to March 31, 2020 and June 30, 2019 was attributable primarily to an increase in loan prepayments, which was not fully offset by new loan originations.  Investment securities available for sale were $186.3 million at June 30, 2020, down $56.2 million, or 23.2%, from March 31, 2020, and down $86.8 million, or 31.8% from June 30, 2019.  The decline in the investment securities portfolio is a direct result of large prepayments/calls of investment securities and normal maturities.Total deposits were $933.1 million at June 30, 2020, up $49.6 million, or 5.6%, from March 31, 2020, and up $7.7 million, or 0.8%, from June 30, 2019.  Demand deposits were $213.6 million, an increase of $56.9 million, or 36.3%, from March 31, 2020, and up $29.9 million, or 16.3%, from June 30, 2019.  The growth in these deposits quarter over quarter was fueled in large part by deposits of SBA PPP loan proceeds. Savings, N.O.W. and money market deposits totaled $689.7 million at June 30, 2020, decreased $9.3 million, or 1.3%, from March 31, 2020, and decreased $20.5 million, or 2.9%, from June 30, 2019 due to seasonal fluctuations.  Certificates of deposits of $100,000 or more and other time deposits were $29.8 million at June 30, 2020, down $2.0 million, or 7.4%, from March 31, 2020, and down $1.6 million, or 5.1%, from June 30, 2019.                                                                                                                                                Stockholders’ equity increased $1.7 million, or 1.9%, to $89.0 million, from March 31, 2020 and increased $9.9 million, or 12.5%, from June 30, 2019. The linked quarter increase was primarily attributable to net income of $2.0 million and a $149 thousand net increase associated with stock compensation plans offset by a decrease in net unrealized gain on securities available for sale, net of taxes, of $480 thousand. The increase in stockholders’ equity from June 30, 2020 was primarily attributable to net income of $4.6 million, the positive impact of a decrease in the net unrealized losses on securities available for sale, net of taxes, of $3.3 million, and a $2.0 million net increase associated with stock compensation plans.Net Interest Margin/Net Interest IncomeNet interest income for the second quarter of 2020 increased by $1.1 million over the first quarter of 2020, and increased by $1.1 million over second quarter of 2019. Net interest margin was 2.98% for the three months ended June 30, 2020; an increase from 2.50% for the three months ended March 31, 2020, and increase from 2.52% for the three months ended June 30, 2019.Interest income for the second quarter of 2020 decreased $407 thousand, or 4.5%, compared to the first quarter of 2020, and decreased $1.1 million, or 11.2%, from the second quarter of 2019. The linked quarter decrease was primarily the result of decreases in income from investment securities and deposits with banks of $400 thousand and $325 thousand, respectively, offset by increases in income from loans of $318 thousand. The increase in income from loans resulted primarily from prepayment penalties associated with payoffs of approximately $23 million in loans. Prepayment penalties for the second quarter of 2020 increased $291 thousand over the first quarter of 2020 and increased by $183 thousand over second quarter of 2019. During the second quarter of 2020, the company recorded $180 thousand in SBA PPP fees and $110 thousand in interest income from PPP loans. The yield on interest earning assets decreased to 3.50% for the second quarter of 2020, as compared to 3.60% for the first quarter of 2020 and compared to 3.92% for the second quarter of 2019. The decrease in the yield on interest earning assets was primarily attributed to a decrease in both the average balance and yield for securities available for sale and deposits with banks. Interest expense for the second quarter decreased $1.4 million, or 53.7%, to $1.3 million, compared to $2.7 million for the first quarter of 2020, and decreased $2.2 million, or 63.1%, as compared to $3.5 million for the second quarter of 2019. The cost of interest bearing liabilities was 0.70% for the three months ended June 30, 2020, a decrease from 1.41% for the three months ended March 31, 2020, and a decrease from 1.83% for the three months ended June 30, 2019. The decrease in the cost of interest bearing liabilities quarter over quarter was attributable to reductions in market interest rates due to the COVID-19 pandemic.Net interest income increased $1.1 million, or 8.9%, for the first six months in 2020 over the same period in 2019, due primarily to a decrease in the cost of interest bearing liabilities.  Net interest margin was 2.74% for the first six months ended June 30, 2020, an increase from 2.54% for the same period in 2019.Interest income decreased $1.6 million, or 8.3%, for the first six months of 2020 over the same period in 2019. The decrease was attributable to a decline in income from securities of $1.7 million, partially offset by increases in income from deposits with banks and income from loans of $58 thousand and $16 thousand, respectively.  The yield on interest earning assets decreased to 3.55% for the first six months of 2020, compared to 3.92% for the same period in 2019. The decrease in the yield on interest earning assets primarily resulted from a year over year decline in the percentage of earning assets held in securities available for sale coupled with lower average rates on all interest earning assets as a result of reductions in market interest rates due to the COVID-19 pandemic. The average balance of securities available for sale declined $66.8 million or 23.6%, and the average balance of interest earning deposits increased $65.7 million, year over year.  The yield on securities available for sale decreased by 64 basis points to 1.96% for the first six months of 2020,  as compared to 2.60% for the same period in 2019. The yield on interest earning deposits decreased by 126 basis points to 0.78% for the first six months of 2020, as compared to 2.04% for the same period in 2019, and the yield on loans decreased by ten basis points to 4.44% for the first six months of 2020, as compared to 4.54% for the same period of 2019.Interest expense was $4.0 million, representing a decrease of $2.7 million, or 40.2%, for the first six months of 2020, compared to the same period in 2019.  The decrease was the result of lower interest expense relative to savings, N.O.W. and money market accounts of $2.6 million, or 45.0%. The decrease in net interest margin was impacted by a decrease of 72 basis points in the cost of average interest bearing liabilities to 1.07% for the first six months of 2020 compared to 1.79% for the same period in 2019. The fluctuation in the cost of interest bearing liabilities was attributable to reductions in market interest rates due to the COVID-19 pandemic, especially within the competitive public fund deposit base.Noninterest Income and ExpenseThere were no security gains or losses on sales of securities for the second quarter of 2020 or the second quarter of 2019. The company recognized gains on sales of securities of $15 thousand for the first quarter of 2020. Other income was $412 thousand in the second quarter of 2020, compared to $495 thousand in the first quarter of 2020, and $578 thousand for the second quarter of 2019. The linked quarter decrease of $83 thousand resulted primarily from a decrease of $65 thousand in gains recognized on the sale of Small Business Administration (SBA) loans, specifically SBA 7(a), as well as a $66 thousand decrease in customer related fees and service charges, offset by a $43 thousand increase in miscellaneous loan fees. The decrease of $166 thousand in the second quarter of 2020 compared to the second quarter of 2019 was primarily driven by a $131 thousand decrease in gains recognized on the sale of SBA 7(a) loans and a decrease of $34 thousand in customer related fees and service charges.Other income of $907 thousand represented a year over year decrease of $105 thousand, or 10.4%, as compared to the same period in 2019. The decrease for the second quarter of 2020 resulted primarily from an $88 thousand decrease in gains recognized on the sale of SBA 7(a) loans.Other expense in the second quarter of 2020 totaled $4.7 million, compared with $5.8 million in the first quarter of 2020, and $5.6 million in the second quarter of 2019. The $1.1 million, or 19.5%, decrease from the linked quarter was primarily attributable to a decrease of $680 thousand, or 20.9%, in salaries and employee benefits, a decrease of $251 thousand, or 29.2%, in other operating expense, a decrease of $114 thousand, or 33.5%, in professional fees, a decrease of $104 thousand, or 23.4%, in software services and a decrease of $18 thousand, or 3.2%, in occupancy and equipment fees.  These decreases were offset by an increase in FDIC insurance of $37 thousand. Other expense decreased $942 thousand, or 16.8%, in the second quarter of 2020 over the second quarter of 2019, primarily as a result of lower salaries and employee benefits, software services, other operating expenses, and occupancy and equipment fees of $497 thousand, $180 thousand, $138 thousand, and $79 thousand, respectively.  The linked quarter decrease in salary and employee benefits was primarily a result of reductions in the number of employees and expenses related to the company’s incentive compensation plans.  The number of full time equivalent employees was 63 at June 30, 2020, compared to 73 at December 31, 2019, a decrease of 13.7%.Other expense for the first six months of 2020 totaled $10.5 million, compared with $11.4 million over the same period in 2019. The decrease of $928 thousand, or 8.1%, in other expense year over year was largely attributable to the lower salaries and employee benefits, software services, occupancy and equipment fees, advertising and business development, FDIC insurance and other operating expenses of $471 thousand, $240 thousand, $151 thousand, $56 thousand, $46 thousand and $15 thousand, respectively, offset by an increase in professional fees of $51 thousand. The decrease in salary and employee benefits was primarily a result of reductions in the number of employees. The decline in software services was due to the decline of the federal funds rate, as some of the service charges are based on this rate. The reduction in occupancy and equipment fees was primarily a result of the sublease of the bank’s New York City office space.As a result of its second quarter operating performance, the company’s efficiency ratio decreased to 60.02%, from 85.30% for the first quarter of 2020 and 81.93% for the same period in 2019.  The company’s efficiency ratio for the first six months of 2020 was 71.89%, which represented a decrease from 84.10% for the same period in 2019.  The company’s efficiency ratio was impacted most significantly by the decrease in salaries and employee benefits for the three and six months ended June 30, 2020, as compared to prior periods. The effective income tax rate was 19.9% for the second quarter ended June 30, 2020 compared to an effective income tax rate of 14.9% for the first quarter ended March 31, 2020, and 19.4% for the second quarter of 2019.  The effective income tax rate was 19.3% for the first six months ended June 30, 2020 and the first six months ended June 30, 2019.Solid Asset Quality/Provision for Loan LossesThe pandemic has resulted in significant disruptions to business activity and travel, economic weakness and market volatility, among other things.  As a result of the level of uncertainty surrounding the impact of COVID-19, the company recorded a provision for loan losses of $600 thousand for the quarter ended June 30, 2020, as compared to $168 thousand for the same period in 2019.  The provision for loan losses of $1.2 million for the first six months of 2020 represented an increase of $1.1 million as compared to the same period in 2019.  As part of its analysis of the appropriate level of provision, the bank increased the qualitative factors related to underlying economic conditions and the magnitude of that increase was based upon the characteristics of each loan segment.    Expressed as a percentage of outstanding loans, the allowance for loan losses was 1.01% at June 30, 2020 and 1.04% at March 31, 2020, compared to 0.96% at June 30, 2019.  The quarter over quarter decrease in the Company’s allowance for loan losses was primarily attributable to the quarter over quarter decrease in gross loans, other than the $60.1 million in SBA PPP loans originated during the quarter. SBA PPP loans are 100% guaranteed by the U.S. government and therefore do not carry a reserve in the allowance.   Excluding the SBA PPP loans, the allowance for loan losses was 1.11% at June 30, 2020.Credit quality remained sound at June 30, 2020. Loans classified as nonaccrual dropped to $2.8 million at June 30, 2020, or 0.40%, of total loans outstanding, compared to $3.1 million, or 0.47%, at March 30, 2020.  The decrease in total nonaccrual loans reflects the company’s experience and ability to work with borrowers. During the second quarter of 2020 one loan in the amount of approximately $1.0 million moved from non-accrual to accrual based upon its improved credit quality. Two taxi medallion loans were written down totaling approximately $500 thousand and the remaining balance totaling approximately $700 thousand was downgraded and moved to non-accrual due to cash flow issues related to the impact of COVID-19.  As of June 30, 2020, $209.8 million in loan balances had been granted loan deferral and modification agreements due to the COVID-19 pandemic.  At its high point during the second quarter of 2020, 175 loans totaling $220.1 million in aggregate principal amount had been granted loan deferral and modification agreements; as of July 21, 2020, the bank had outstanding 122 loans with aggregate principal balances of $164.3 million for which such agreements had been granted.During the second quarter of 2020, there were charge-offs for $526 thousand resulting from cash flow issues caused by the pandemic, including two taxi medallion loans totaling approximately $500 thousand and no recoveries were recorded. There were no charge-offs or recoveries recorded in the first quarter of 2020.  During the second quarter of 2019, there were charge-offs for $74 thousand and no recoveries were recorded.Merger with Flushing Financial Corporation  Empire Bancorp remains a party to a merger transaction with Flushing Financial Corporation, the closing of which has been delayed as disclosed in a prior press release. About Empire Bancorp, Inc.Empire Bancorp, Inc. is a bank holding company for Empire National Bank, a Long Island-based independent bank that specializes in serving the financial needs of small and medium sized businesses, professionals, nonprofit organizations, municipalities, real estate investors, and consumers.  The bank has four full-service banking offices located in Islandia, Shirley, Port Jefferson Station and Mineola. Our bankers take pride in understanding the needs of each customer so the bank can deliver the highest quality service with a sense of urgency.Empire Bancorp, Inc. (OTCQX: EMPK) is traded on OTCQX® Best Market which is the top tier of OTC Markets Group Inc.This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward charge looking statements.  Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue,” or comparable terminology, are intended to identify forward-looking statements.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within the control of the Company.  The forward-looking statements included in this press release are made only as of the date of this press release.  The Company has no intention, and does not assume any obligation, to update these forward-looking statements.  Consolidated Statements of Condition (unaudited) (dollars in thousands, except per share data)      June 30,   March 31,   December 31,   June 30,         2020   2020   2019   2019      ASSETS                     Total cash and cash equivalents $129,993  $50,574  $37,558  $38,639      Securities available for sale, at fair value  186,309   242,483   222,962   273,119      Securities held to maturity  -   -   -   4,750      Securities, restricted  3,290   3,242   3,236   3,224      Loans  697,305   669,924   678,697   680,775      Allowance for loan losses  (7,058)  (6,984)  (6,362)  (6,557)     Loans, net  690,247   662,940   672,335   674,218      Premises and equipment, net  3,703   3,882   4,056   4,370      Bank-owned life insurance  21,795   21,645   21,496   21,192      Other assets and accrued interest receivable  16,903   16,190   16,932   17,508      Total Assets $1,052,240  $1,000,956  $978,575  $1,037,020                            LIABILITIES AND STOCKHOLDERS' EQUITY                     Demand Deposits $213,623  $156,742  $157,211  $183,747      Savings, N.O.W. and money market deposits  689,713   699,060   677,751   710,239      Certificates of deposit of $100,000 or more and other time deposits  29,773   27,726   28,040   31,378      Total Deposits  933,109   883,528   863,002   925,364      Subordinated debentures, net  14,898   14,885   14,872   14,847      Other liabilities and accrued expenses  15,283   15,271   16,511   17,726      Total Liabilities  963,290   913,684   894,385   957,937      Total Stockholders' Equity  88,950   87,272   84,190   79,083      Total Liabilities and Stockholders' Equity $1,052,240  $1,000,956  $978,575  $1,037,020                            Selected Financial Data (unaudited)                     Allowance for Loan Losses to Total Loans  1.01%  1.04%  0.94%  0.96%     Non-performing Loans to Total Loans  0.40%  0.47%  0.49%  0.34%     Non-performing Assets to Total Assets  0.26%  0.31%  0.34%  0.22%     Book Value per Share $11.38  $11.16  $10.76  $10.30                            Capital Ratios (unaudited)(1)                     Community Bank Leverage Ratio(2)  9.54%  9.17%(3) 9.51%(3) 8.90%(3)    (1) Regulatory capital ratios presented on bank-only basis.                     (2) Bank adopted Community Bank Leverage Ratio as of June 30, 2020.                     (3) Prior to 06/30/2020 Tier 1 Leverage Ratio.                                                                 Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data)     For the three months ended For the six months ended    June 30,   March 31,   June 30,   June 30,   June 30,     2020   2020   2019   2020   2019  Interest income $8,655  $9,062  $9,747  $17,717  $19,326  Interest expense  1,283   2,771   3,473   4,054   6,780  Net interest income  7,372   6,291   6,274   13,663   12,546  Provision for loan losses  600   622   168   1,222   168  Net interest income after provision for loan losses  6,772   5,669   6,106   12,441   12,378  Net securities gains  -   15   -   15   -  Other income  412   495   578   907   1,012  Other expense  4,672   5,802   5,614   10,474   11,402  Income before income taxes  2,512   377   1,070   2,889   1,988  Income tax expense  500   56   207   556   383  Net income $2,012  $321  $863  $2,333  $1,605                        Basic earnings per share $0.26  $0.04  $0.11  $0.30  $0.11  Diluted earnings per share $0.26  $0.04  $0.11  $0.30  $0.11  Weighted average common and equivalent shares outstanding  7,681,047   7,670,778   7,529,413   7,675,912   7,569,895                        Selected Financial Data (unaudited)                     Return on Average Assets  0.78%  0.12%  0.33%  0.45%  0.31% Return on Average Equity  9.26%  1.52%  4.51%  5.45%  4.33% Net Interest Margin  2.98%  2.50%  2.52%  2.74%  2.54% Efficiency Ratio  60.02%  85.50%  81.93%  71.89%  84.10% Contact: William Franz - SVP, Director of Marketing & Investor Relations (631) 348-4444

  • GlobeNewswire

    Empire Bancorp Announces First Quarter 2020 Results

    ISLANDIA, N.Y., April 30, 2020 -- Empire Bancorp, Inc. (OTCQX: EMPK), the parent holding company for Empire National Bank, today announced its financial results for the quarter.