Cullman Bancorp(US:CULL)2022-11-09 16:00Financial Performance - Net income for the three months ended September 30, 2022, was $926,000, compared to a net loss of $501,000 for the same period in 2021[190]. - Net income for the nine months ended September 30, 2022, was $3.2 million, compared to $1.1 million for the same period in 2021[205]. - Net interest income for the period was $3.962 million, compared to $2.887 million in the previous year[184]. - Net interest income for the nine months ended September 30, 2022, was $11,166,000, up from $8,616,000 in the same period of 2021, representing an increase of approximately 29%[1]. - Non-interest income increased by $13,000, or 3.3%, to $402,000 for the three months ended September 30, 2022, from $389,000 for the same period in 2021[201]. - Non-interest expense decreased by $1.0 million, or 25.3%, to $3.0 million for the three months ended September 30, 2022, compared to $4.0 million for the same period in 2021[202]. - Non-interest expense decreased by $483,000, or 5.7%, to $7.9 million for the nine months ended September 30, 2022, compared to $8.4 million for the same period in 2021[216]. Asset and Liability Management - Total assets increased by $51.4 million, or 14.5%, to $406.1 million as of September 30, 2022, from $354.7 million at December 31, 2021[174]. - Total assets reached $372,230,000 as of September 30, 2022, compared to $347,459,000 at the end of September 2021, indicating a growth of about 7.1%[1]. - Total deposits increased by $54.7 million, or 23.6%, to $286.7 million at September 30, 2022, with regular savings and other deposits rising by $27.4 million, or 49.6%[179]. - Gross loans held for investment rose by $73.7 million, or 29.0%, to $328.3 million at September 30, 2022, primarily driven by a $32.8 million increase in one-to-four family loans[177]. - Average outstanding loans (excluding PPP loans) were $319.3 million with an average yield of 4.88%[184]. - Total interest-earning assets averaged $366.1 million, generating interest income of $4.243 million[184]. - Total interest-earning assets increased to $350,776,000 for the nine months ended September 30, 2022, from $328,441,000 in the same period of 2021, reflecting a growth of approximately 6.5%[1]. - Total interest-bearing liabilities decreased to $252,006,000 for the nine months ended September 30, 2022, from $255,664,000 in the same period of 2021, a decline of approximately 1.0%[1]. - Noninterest-bearing demand deposits increased to $15.6 million, reflecting growth in new accounts[179]. - Borrowings decreased by $3.5 million, or 18.9%, to $15.0 million as of September 30, 2022[180]. Interest Income and Margin - Net interest margin improved to 4.33% from 3.28% year-over-year[184]. - The net interest margin improved to 4.24% for the nine months ended September 30, 2022, compared to 3.50% for the same period in 2021[1]. - The net interest rate spread was 4.13% for the nine months ended September 30, 2022, compared to 3.34% for the same period in 2021, reflecting an improvement in profitability[1]. - Interest income increased by $937,000, or 28.3%, to $4.2 million for the three months ended September 30, 2022, compared to $3.3 million for the same period in 2021[192]. - Interest income for the nine months ended September 30, 2022, increased by $1.9 million, or 18.8%, to $11.9 million from $10.0 million for the same period in 2021[206]. - The average yield on loans (excluding PPP loans) was 5.10% for the nine months ended September 30, 2022, slightly down from 5.21% in the same period of 2021[1]. Regulatory and Compliance - Cullman Savings Bank exceeded all regulatory capital requirements as of September 30, 2022, and was categorized as well capitalized[223]. - The effectiveness of disclosure controls and procedures has been evaluated and deemed effective by the Chief Executive Officer and Chief Financial Officer[227]. - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the most recent fiscal quarter[228]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2022, was $5.3 million, an increase from $4.2 million in the same period of 2021[221]. - Net cash used in investing activities for the nine months ended September 30, 2022, was $88.9 million, compared to $12.6 million in 2021[221]. - Net cash provided by financing activities for the nine months ended September 30, 2022, was $50.4 million, up from $37.8 million in 2021[221]. - The liquidity position is monitored daily, ensuring sufficient funds to meet current funding commitments[222]. - The company anticipates retaining a significant portion of maturing time deposits based on deposit retention experience and current pricing strategy[222]. Other Financial Metrics - Stockholders' equity decreased by $1.2 million, or 1.2%, to $98.5 million at September 30, 2022, mainly due to unrealized losses on securities available for sale[181]. - Provision for loan losses recorded was $120,000 for the three months ended September 30, 2022, compared to no provision expense for the same period in 2021[199].