Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Elizabeth White, Wade Williamson, Lori MacVittie

News Feed Item

/ CORRECTION - Treasure State Bank

MISSOULA, MT -- (Marketwire) -- 02/08/13 -- In the news release, "Treasure State Bank Reports Fourth Quarter 2012 Operating Results," issued February 4, 2013 by Treasure State Bank (OTCQB: TRSU), we are advised by the company that the fifth bullet should read "The return on average assets for the quarter ended December 31, 2012 was 0.41%, as compared to 0.18% for the same quarter last year. The return on average equity for the quarter ended December 31, 2012 was 4.62%, as compared to 2.40% for the same quarter last year." rather than "The return on average assets for the quarter ended December 31, 2012 was 0.41%, as compared to 0.47% for the same quarter last year. The return on average equity for the quarter ended December 31, 2012 was 4.62%, as compared to 6.46% for the same quarter last year." The sixth bullet should read "The return on average assets for the year ended December 31, 2012 was 0.36%, as compared to 0.47% for the same period last year. The return on average equity for the year ended December 31, 2012 was 4.29%, as compared to 6.46% for the same period last year." rather than "The return on average assets for the year ended December 31, 2012 was 0.36%, as compared to 0.72% for the same period last year. The return on average equity for the year ended December 31, 2012 was 4.29%, as compared to 8.64% for the same period last year." as originally issued. Complete corrected text follows.

Treasure State Bank Reports Fourth Quarter 2012 Operating Results

MISSOULA, MT -- February 4, 2013 -- Treasure State Bank ("the Bank") (OTCQB: TRSU), a Montana chartered community bank, today announced:

  • The Bank had a net operating profit of $72,000 for the quarter ended December 31, 2012, as compared to $76,000 for the quarters ended September 30, $76,000 for the quarter ended June 30, 2012, $42,000 for the quarter ended March 31, 2012 and $34,000 for the same quarter last year.

  • Earnings, before non-cash expenses of depreciation and amortization, loan loss provisions, real estate owned write-downs and stock option expense were $230,000 ($920,000 annualized) for the quarter ended December 31, 2012, as compared to $219,000 ($876,000 annualized) for the quarter ended September 30, 2012, $214,000 ($856,000 annualized) for the quarter ended June 30, 2012, $178,000 ($712,000 annualized) for the quarter ended March 31, 2012 and $207,000 ($828,000 annualized) for the same quarter last year. Non cash stock option expense was $30,000 for the quarter ended December 31, 2012 as compared to $0 for the same period last year.

  • On a year-to-date basis, the Bank had a net operating profit of $266,000, as compared to $365,000 for the same period last year.

  • Earnings, before non-cash expenses of depreciation and amortization, loan loss provisions, real estate owned write-downs and stock option expense were $841,000 for the year ended December 31, 2012, as compared to $1,039,000 for the same period last year. Non cash stock option expense was $120,000 for the year just ended, as compared to $4,000 for the same period last year.

  • The return on average assets for the quarter ended December 31, 2012 was 0.41%, as compared to 0.18% for the same quarter last year. The return on average equity for the quarter ended December 31, 2012 was 4.62%, as compared to 2.40% for the same quarter last year.

  • The return on average assets for the year ended December 31, 2012 was 0.36%, as compared to 0.47% for the same period last year. The return on average equity for the year ended December 31, 2012 was 4.29%, as compared to 6.46% for the same period last year.

  • Equity to assets at December 31, 2012 was 9.16% as compared to 7.34% at December 31, 2011. Regulatory Tier 1 leverage capital, based on average assets, was 8.80% as of December 31, 2012, as compared to 7.52% as of December 31, 2011. Regulatory Total Risk-Based Capital based on average assets was 12.92% as of December 31, 2012, as compared to 11.06% as of December 31, 2011.

  • Book value per share was $3.80 as of December 31, 2012, based on 1,630,821 shares outstanding.

  • Total assets decreased $9.4MM, or 12.2%, to $67.6MM at December 31, 2012, as compared to $77.0MM at December 31, 2011.

  • Cost of funds decreased 25.0% to 1.14% at December 31, 2012 as compared to 1.52% at December 31, 2011.

  • The net interest margin (interest income less interest expense divided by average earning assets) increased to 3.85% for the quarter ended December 31, 2012, as compared to 3.72% for the quarter ended December 31, 2011.

  • Loan loss reserves to total loans were 3.89% ($1.9MM) at December 31, 2012, as compared to 4.00% ($2.0MM) as of December 31, 2011.

  • Total liquidity as of December 31, 2012 was 19.7%, and available liquidity was 17.5%.

  • Non-performing assets decreased $2.6MM, or 30.2%, to $6.0MM at December 31, 2012 from $8.6MM at December 31, 2011. Non-performing assets to total assets at December 31, 2012 were 8.9% as compared to 11.2% at December 31, 2011.

President and Chief Executive Officer Jim Salisbury stated, "I am pleased to report that the Bank ended 2012 with continued improvement in many critical areas to enhance the financial condition of the Bank in these troubled economic and political times. Our $72,000 of earnings for this quarter represents our eighth consecutive profitable quarter. Our $265,000 of earnings for the year 2012 compares to $365,000 for 2011. Earnings for 2012 were reduced by the $120,000 non-cash expense of stock options, while 2011 was not so burdened. The grants of new stock options in 2012 were for the purpose of retaining, attracting and incentivizing Board members and key team members, and, when exercised, adds additional capital to the Bank. In 2012, $158,000 of new capital was obtained by the exercising of stock options. Stock option expense for 2013 will be minimal as compared to 2012. The combination of positive earnings for two consecutive years and the addition of the new capital have increased the Bank's capital to assets by 39.6%, to 9.16% at December 31, 2012 from a low of 6.56% at December 31, 2010. The Bank's net interest income did decline by $200,000 year over year due primarily to the reduction in gross loans and lower yields on new and refinanced loans. The $200,000 reduction in net interest income was mitigated by a reduction in operating expenses of $100,000 and an increase in other loan related fee income of $110,000.

"The Bank continues to work diligently to address non-performing assets. As noted above non-performing assets decreased $2.6MM, or 30.2%, to $6.0MM at December 31, 2012 from $8.6MM at December 31, 2011. The Bank was able to sell $1.2MM of repossessed property during 2012 while not adding any new repossessed property. While gross loans declined $2.2MM year over year from $50.6MM at December 2011 to $48.4MM at December 31, 2012, several non-performing loans were part of the reduction when paid down or charged off. The Bank did originate and refinance $10.5MM of loans in 2012.

"In order to maximize the Bank's earnings and capital the Bank continued to reduce its asset size. Total assets decreased $9.4MM, or 12.2%, to $67.6MM at December 31, 2012, as compared to $77.0MM at December 31, 2011. Cash and cash equivalents decreased $5.6MM, gross loans decreased $2.2MM, repossessed assets decreased $1.2MM and other assets decreased $400,000. The cash and cash equivalent decrease was primarily due to the intentional reduction of out of market certificates of deposits and Federal Home Loan Bank borrowings. Lower yielding short term investments were allocated to pay off higher cost maturing certificates of deposits and Federal Home Loan Bank borrowings during 2012, which has helped reduce the Bank's cost of funds by 25% and increase the net interest margin.

"The Bank again added $60,000 for the quarter just ended to its allowance for loan loss reserve. Year to date the provision was $238,000. The allowance for loan losses totals $1.9MM at December 31, 2012. This is 3.89% of gross loans and is available to act as a cushion to absorb potential losses on existing troubled loans.

"The Bank continued to successfully reduce its cost of funds. Cost of funds decreased 25.0% to 1.14% at December 31, 2012 as compared to 1.52% at December 31, 2011.

"Nearly twenty cents of every dollar is held in domestic liquid assets to cushion the Bank from a rising interest rate environment and to allow for the funding of new loans. In addition, at December 31, 2012, transaction checking accounts have increased $2.4MM, or 24.2%, year over year.

"The Western Montana economy continues to present challenges to the Bank in its efforts to dispose of its remaining repossessed property and certain portions of its loan portfolio. Additional write downs of repossessed developed lots may be required to liquidate them in the future if demand for them does not improve. However, recently there continues to be a slight improvement in the Western Montana economy. With this improved economic outlook, positive earnings and the $1.9MM in loan loss reserves, the Bank is hopeful that its non-performing assets will continue to decline. The continued easing by the Federal Reserve could result in a continued decrease in net interest income for the Bank and could put added pressure on the Bank's earnings. On the other side, if the Federal Reserve were to discontinue its policy of easing and adding liquidity to the markets, or the United States deficits are not meaningfully reduced, then interest rates could increase. This could reduce the Bank's loan fee income associated with the origination of mortgage loans and put pressure on the Bank's cost of funds. However, we will continue to work diligently to improve the asset quality of the Bank, generate profits to enhance stockholders' equity and retain adequate liquidity in these uncertain economic times. The Bank has made great progress in the last two years and is in the position to once again grow its asset base with quality loans funded by core deposits in 2013 and beyond."

For more information regarding this release, or the Bank in general, you may contact James A. Salisbury, President and CEO, at 406-543-8700.

About Treasure State Bank
Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. Treasure State Bank currently trades on the OTCQB under the ticker symbol "TRSU." Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit www.treasurestatebank.com.

Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable clou...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
With the arrival of the Big Data revolution, a data professional is expected to master a broad spectrum of complex domains including data processing, mathematics, programming languages, machine learning techniques, and business knowledge. While this mastery is undoubtedly important, this narrow focus on tool usage has divorced many from the imagination required to solve real-world problems. As the demand for analysis increases, the data science community must transform from tool experts to "data...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the dat...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
SYS-CON Events announced today that Emcien will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Emcien’s vision is to let anyone use data to know the future. Emcien has built an automated, predictive analysis product that improves the lives of real people. Emcien allows people to automate their data analysis so they can build a better future.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.