P.O. Box 130
Denmark, WI 54208-0130
Phone: (920) 863-2161
Fax: (920) 863-6159
News Release FOR IMMEDIATE RELEASE: April 23, 2013 CONTACT: John P. Olsen, CEOJill Feiler, President of Denmark State Bank
Carl Laveck, Chief Credit Officer
Denmark Bancshares, Inc. Reports First Quarter 2013 Earnings
Jack Olsen, CEO of Denmark Bancshares, Inc. ("DBI"), which operates six offices in Brown and Manitowoc County, announced net income of $928,000 or $7.82 per share for the quarter ended March 31, 2013, an increase of $79,000 or 9.3% from $849,000 or $37.14 per share in the first quarter of 2012. Return on assets and return on equity for the most recent quarter were 0.88% and 6.31% respectively, compared to 0.80% and 5.99%, respectively, for the same period one year ago.
The increase in first quarter 2013 net income was attributable to several factors including a reduction in other operating expenses due to a decline in expenses related to the operation and write-down of foreclosed assets "Our continued focus on the improvement of asset quality is showing up as a reduction in the costs related to administering this area," said Chief Credit Officer Carl Laveck. During the three months ended March 31, 2013, expenses related to foreclosed properties were $15,000, a reduction of $63,000 or 80.2% from one year prior. A core deposit intangible asset was fully amortized during 2012 resulting in a reduction in expenses recognized in the three months ended March 31, 2013 of $48,000 when compared to the same period of 2012. During the first quarter of 2012 credit losses on other than temporarily impaired securities of $33,000 were recorded through the income statement while there were no credit losses recognized during the quarter ended March 31, 2013. Mortgage banking activities remained strong during the first quarter of 2013 resulting in gains on the sale of loans of $140,000 which was $22,000 or 18.5% higher than those recorded during the first quarter of 2012.
Total assets were $426.3 million as of first quarter-end 2013, a decrease of $5.8 million or 1.3% compared to December 31, 2012. Cash and due from banks declined $5.2 million or 21.7% from year-end 2012 to $18.8 million at March 31, 2013. A portion of these funds were used to purchase securities which increased $2.1 million to $85.3 million as of first quarter-end 2013. Loans declined slightly from $298.5 million at December
31, 2012 to $297.0 million as of March 31, 2013. Total deposits were $332.0 million at quarter-end, a decrease of $5.0 million or 1.5% than at year-end 2012 which is consistent with normal seasonal fluctuations in deposits.
The ratio of allowance for loan losses to total loans was 2.06% at March 31, 2013, compared to 2.07% at December 31, 2012 and 2.19% at March 31, 2012. DBI's ratio of loans over 30 days past due (including nonaccrual loans) to total loans was 2.0% as of March 31, 2013, compared to 1.8% as of December 31, 2012, and
3.5% one year earlier.
As of March 31, 2013, DBI's leverage capital ratio remains strong with tier 1 capital to average assets ratio of
13.98% and total capital as percentage of risk-based assets ratio at 20.41%.
Denmark Bancshares, Inc., headquartered in Denmark, Wisconsin, is a diversified one-bank holding company. DBI reported total assets of $426 million as of March 31, 2013. Denmark State Bank, DBI's subsidiary bank, is an independent community
bank that offers six full service banking offices located in Brown and Manitowoc Counties in the Villages of Denmark, Bellevue, Maribel, Reedsville, Whitelaw and Wrightstown, serving primarily Brown, Kewaunee, Manitowoc and Outagamie
Counties. Denmark State Bank offers a wide variety of financial products and services including loans, deposits, mortgage
banking, and investment services. DBI also extends farm credit through its subsidiary Denmark Agricultural Credit
Corporation. For more information about Denmark State Bank, visit www.denmarkstate.com.
SELECTED FINANCIAL DATA | |||||
Mar ch 31 | Dec 31 | Mar ch 31 | |||
(In thousands, except per share data) | 2013 | 2012 | 2012 | ||
Financial Condition (1) | |||||
Total Loans | $297,021 | $298,466 | $301,606 | ||
Allowance for credit losses 6,131 6,185 6,603 | |||||
Investment securities | 85,256 | 83,141 | 76,787 | ||
Assets 426,322 432,113 422,731 | |||||
Deposits | 332,044 | 337,057 | 324,922 | ||
Other borrowed funds 33,951 34,710 39,683 | |||||
Stockholders' equity | 59,250 | 58,324 | 56,804 | ||
Book value per share $ 499.71 $ 491.90 $ 479.09 | |||||
Financial Ratios | |||||
Average equity to average assets 13.88% 13.61% 13.39% | |||||
Tier 1 capital to average assets | 13.98% | 13.73% | 13.47% | ||
Tier 1 capital to risk-weighted assets 19.15% 18.87% 18.36% | |||||
Total capital to risk-weighted assets | 20.41% | 20.13% | 19.62% | ||
Allowance for credit losses | |||||
to total loans (1) | 2.06% | 2.07% | 2.19% | ||
Non-performing loans to assets 1.08% 1.03% 2.14% | |||||
Non-performing loans to allowance for | |||||
credit losses (1) 75% 72% 137% | |||||
(1) As of the period ending. | |||||
For the Thr ee Months |
distributed by |