OBA FINANCIAL SERVICES INC 
By GERMANTOWN, Md., Aug. 16, 2011 /PRNewswire/ -- OBA Financial Services, Inc., (NASDAQ: OBAF) ("Company"), the parent company of OBA Bank ("Bank"), announces net income of $857 thousand, or $0.20 per share, for the Company's fiscal year ended June 30, 2011 as compared to a net loss of $710 thousand, or $0.17 loss per share, for the fiscal year ended June 30, 2010.
For the fourth quarter of the Company's fiscal year 2011 which ended June 30, 2011, the Company announces net income of $123 thousand, or $0.03 per share, as compared to net income of $82 thousand, or $0.02 per share, for the quarter ended June 30, 2010.
The Company's annual income was significantly impacted by an increase in non-interest income of $1.8 million for the year ended June 30, 2011. The increase in non-interest income reflects a decrease in impairment losses on investment securities of $1.9 million. The decrease in impairment losses is the result of the Company's previous sale of its bank and bank holding company pooled trust preferred securities in March 2010.
Income Statement
The Company's net interest income for the fiscal year ended June 30, 2011 was $12.0 million compared with $10.1 million for the fiscal year ended June 30, 2010, or an increase of 18.9%. The Company continued to pay down higher cost borrowings and certificates of deposit.
The Company's net interest income for the fourth quarter of the fiscal year ended June 30, 2011 was $2.9 million as compared to $2.8 million in the same period the prior year, or a 4.7% increase.
The Company's non-interest expense increased to $11.0 million for the fiscal year ended June 30, 2011 from $9.3 million for the fiscal year ended June 30, 2010, or 18.3%. The increase is primarily a result of the addition of several commercial bankers as part of the Bank's business strategy to increase the commercial loan portfolios, as well as the addition of a residential loan manager, increased legal, regulatory, and accounting costs necessary to operate as a public company, and increased marketing expenses.
Balance Sheet
Total assets grew 3.3% to $386.4 million at June 30, 2011 from $374.1 million at June 30, 2010.
Total loans increased $4.1 million to $281.9 million at June 30, 2011 from $277.8 million at June 30, 2010.
Total deposits increased by $41.3 million, or 19.2%, on a linked-quarter basis, from $215.7 million at March 31, 2011 to $257.0 million at June 30, 2011 as the Company increased money market deposits as a result of a promotion during the quarter ended June 30, 2011.
Borrowings decreased 20.9% from $57.1 million at June 30, 2010 to $45.2 million at June 30, 2011 as the Company continued to pay down higher cost borrowings.
Equity and Capital
Stockholders' Equity remained essentially unchanged at $80.9 million at June 30, 2011 as compared to $80.2 million at June 30, 2010. The Company remains well-capitalized at all levels with ratios well in excess of regulatory minimums.
Asset Quality
Total non-performing assets to total assets increased to 1.47% at June 30, 2011 from 0.17% at June 30, 2010. The increase was made up of two loan relationships with not-for-profit entities that have collateral value well in excess of the loan value. Based on the value of the collateral, no specific allowances are required for these loans.
The allowance for loan losses to total loans increased to 0.80% at June 30, 2011 from 0.63% at June 30, 2010 and, on a linked-quarter basis, from 0.77% at March 31, 2011.
About OBA Financial Services, Inc. and OBA Bank
OBA Financial Services, Inc. is the holding company for OBA Bank. OBA Bank, founded in 1861, is a community-oriented bank which provides a variety of financial services to individuals and small businesses through its offices in Montgomery and Howard Counties of Maryland. The Bank's primary deposits are demand, money market, and time certificate accounts and its primary lending products are residential and commercial mortgage loans. Visit www.obabank.com to locate an ATM or branch near you or for more information about OBA Bank.
Forward-Looking Statements
When used in this Press Release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including, but not limited to, changes in economic conditions in OBA Bank's market area, changes in policies by regulatory agencies, changes in the Bank's regulator, fluctuations in interest rates, demand for loans in OBA Bank's market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause The Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
OBA Financial Services, Inc.
FINANCIAL SUMMARY
(dollars in thousands,
except per share data) Three Months Ended
June 30,
--------
2011 2010 % Change
---- ---- --------
RESULTS OF OPERATIONS:
Net interest income $2,897 $2,766 4.7%
Provision for loan losses 147 505 (70.9)
Non-interest income
excluding impairment 216 249 (13.3)
Impairment losses on
investment securities - - -
Non-interest income 216 249 (13.3)
Non-interest expense 2,809 2,419 16.1
Income before taxes 157 91 72.5
Income tax 34 9 -
Net Income 123 82 50.0
SHARE DATA:
Basic earnings per share $0.03 $0.02 49.4%
Diluted earnings per share 0.03 0.02 49.4
Book value per common share 17.57 17.33 1.4
Tangible book value per
common share 17.57 17.33 1.4
Weighted average shares -
basic (1) 4,279,525 4,263,130 0.4
Weighted average shares -
diluted (1) 4,279,525 4,263,130 0.4
Common shares outstanding 4,602,050 4,628,750 (0.6)
SELECTED RATIOS:
Return on average assets 0.13% 0.09%
Return on average equity 0.61 0.41
Net interest margin 3.67 3.44
Leverage ratio 20.81 21.32
Tier I risk-based capital
ratio 32.26 34.28
Total risk-based capital
ratio 33.16 35.03
Allowance for loan losses to
total loans 0.80 0.63
Non-performing assets to
total assets 1.47 0.17
Non-performing loans to
total loans 1.88 0.16
END OF PERIOD BALANCES:
Investment securities $39,451 $33,983 16.1%
Total loans 281,866 277,835 1.5
Earning assets 336,795 339,873 (0.9)
Assets 386,445 374,095 3.3
Deposits 257,031 233,441 10.1
Borrowings 45,184 57,126 (20.9)
Stockholders' equity 80,860 80,222 0.8
AVERAGE BALANCES:
Investment securities $24,373 $24,908 (2.1)%
Total loans 279,516 271,339 3.0
Earning assets 316,798 322,195 (1.7)
Assets 379,097 371,673 2.0
Deposits 245,938 233,546 5.3
Borrowings 50,006 55,521 (9.9)
Stockholders' equity 81,182 80,220 1.2
(dollars in thousands,
except per share data) Three Months Ended
March 31,
---------
2011 % Change
---- --------
RESULTS OF OPERATIONS:
Net interest income $3,108 (6.8)%
Provision for loan losses 189 (22.2)
Non-interest income
excluding impairment 190 13.7
Impairment losses on
investment securities - -
Non-interest income 190 13.7
Non-interest expense 2,824 (0.5)
Income before taxes 285 (44.9)
Income tax 86 (60.5)
Net Income 199 (38.2)
SHARE DATA:
Basic earnings per share $0.05 (38.2)%
Diluted earnings per share 0.05 (38.2)
Book value per common share 17.47 0.6
Tangible book value per
common share 17.47 0.6
Weighted average shares -
basic (1) 4,277,016 0.1
Weighted average shares -
diluted (1) 4,277,016 0.1
Common shares outstanding 4,628,750 (0.6)
SELECTED RATIOS:
Return on average assets 0.23%
Return on average equity 1.00
Net interest margin 3.92
Leverage ratio 22.63
Tier I risk-based capital
ratio 32.72
Total risk-based capital
ratio 33.61
Allowance for loan losses to
total loans 0.77
Non-performing assets to
total assets 0.16
Non-performing loans to
total loans 0.16
END OF PERIOD BALANCES:
Investment securities $25,570 54.3%
Total loans 284,254 (0.8)
Earning assets 322,903 4.3
Assets 355,971 8.6
Deposits 215,689 19.2
Borrowings 56,829 (20.5)
Stockholders' equity 80,869 -
AVERAGE BALANCES:
Investment securities $25,738 (5.3)%
Total loans 282,954 (1.2)
Earning assets 321,312 (1.4)
Assets 351,033 8.0
Deposits 216,495 13.6
Borrowings 52,877 (5.4)
Stockholders' equity 81,007 0.2
(1) Basic & diluted weighted average shares do not include unreleased
ESOP shares
OBA Financial Services, Inc.
FINANCIAL SUMMARY
(dollars in thousands,
except per share data) Twelve Months Ended
June 30,
--------
%
2011 2010 Change
---- ---- -------
RESULTS OF OPERATIONS:
Net interest income $12,047 $10,129 18.9%
Provision for loan losses 739 1,278 (42.2)
Non-interest income
excluding impairment 967 1,013 (4.5)
Impairment losses on
investment securities - (1,882) -
Non-interest income (loss) 967 (869) -
Non-interest expense 11,035 9,331 18.3
Income (loss) before taxes 1,240 (1,349) -
Income tax (benefit) 383 (639) -
Net income (loss) 857 (710) -
SHARE DATA:
Basic earnings (loss) per
share $0.20 $(0.17) -%
Diluted earnings (loss) per
share 0.20 (0.17) -
Book value per common share 17.57 17.33 1.4
Tangible book value per
common share 17.57 17.33 1.4
Weighted average shares -
basic (1) 4,274,141 4,261,124 0.3
Weighted average shares -
diluted (1) 4,274,141 4,261,124 0.3
Common shares outstanding 4,602,050 4,628,750 (0.6)
SELECTED RATIOS:
Return on average assets 0.23% (0.19) %
Return on average equity 1.06 (1.24)
Net interest margin 3.70 3.09
Leverage ratio 20.81 21.32
Tier I risk-based capital
ratio 32.26 34.28
Total risk-based capital
ratio 33.16 35.03
Allowance for loan losses to
total loans 0.80 0.63
Non-performing assets to
total assets 1.47 0.17
Non-performing loans to
total loans 1.88 0.16
END OF PERIOD BALANCES:
Investment securities $39,451 $33,983 16.1%
Total loans 281,866 277,835 1.5
Earning assets 336,795 339,873 (0.9)
Assets 386,445 374,095 3.3
Deposits 257,031 233,441 10.1
Borrowings 45,184 57,126 (20.9)
Stockholders' equity 80,860 80,222 0.8
AVERAGE BALANCES:
Investment securities $27,725 $28,465 (2.6) %
Total loans 281,051 276,197 1.8
Earning assets 325,471 328,225 (0.8)
Assets 365,333 376,254 (2.9)
Deposits 229,660 251,199 (8.6)
Borrowings 53,145 65,749 (19.2)
Stockholders' equity 80,906 57,305 41.2
(1) Basic & diluted weighted average shares do not include unreleased
ESOP shares
SOURCE OBA Financial Services, Inc.
