NUVO Bank & Trust Company releases quarterly report
SPRINGFIELD – NUVO Bank & Trust Company announced net income of $67,000, or $0.02 per basic and fully diluted shares for the quarter ended March 31, 2014, compared to $2.12 million, or $1.13 per basic and fully diluted shares for the quarter ended March 31, 2013.
The bank’s book value per share increased from $5.23 per share at Dec. 31, 2013 to $5.27 per share at March 31, 2014.
The $2.05 million decrease in net income primarily reflects the fact that, in the first quarter of 2013, the bank was able to fully utilize a deferred tax benefit of $2.05 million, which more than offset income before taxes of $65,000.
In the first quarter of 2014, the bank had income before taxes of $111,000 and no deferred tax benefit and a tax provision of $44,000. The per share results during the first quarter of 2014 reflect the impact of the issuance of 974,454 shares in a private offering that closed on April 30, 2013. Diluted per share results were also impacted by the fact that, in the private offering, the bank also issued 487,227 rights along with the shares of common stock.
The $46,000 increase in pre-tax income reflects increases in net interest income and non-interest income of $241,000 and $31,000, respectively, which were partially offset by a $106,000 increase in the provision for loan losses and an increase of $120,000 in non-interest expense. The increase in the provision for loan losses primarily relates to a specific reserve within the allowance for loan losses for a possible loss on a loan placed on non-accrual during the first quarter of 2014.
The loan placed on non-accrual was originated by another bank and a portion of that loan was purchased by NUVO. The increase in non-interest expense reflects increases in personnel expense due to new hires, merit and promotional increases; an increase in professional fees, primarily legal fees for corporate matters and loan related activity; increased director fees related to retainer and attendance fees compared to retainer fees only in 2013; and increased recruitment and temporary help due to the growth of activity.
Total assets at March 31, 2014 were $145 million compared to $135.2 million at Dec. 31, 2013, which is an increase of $9.8 million (7.3 percent). Cash and cash equivalents increased $1.8 million (27.2 percent) to $8.7 million at March 31, 2014, from $6.8 million at Dec. 31, 2013. Total loans increased $8.2 million (7 percent) to $126.5 million at March 31, 2014, from $118.3 million at Dec. 31, 2013. Deposits increased $9.8 million (8.4 percent) to $125.9 million at March 31, 2014, from $116.1 million at Dec. 31, 2013. Stockholders’ equity increased $98,000 (0.7 percent) to $14.7 million at March 31, 2014 from $14.6 million at Dec. 31, 2013.
Statements contained in this news release, which are not historical facts, contain forward-looking statements as that term is defined in the Private Securities Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ materially from those currently anticipated due to a number of factors.