2016 Results

By Jon Evans
President & CEO

ACBB reported net income (unaudited) of $3,951,103 for the period ending 12/31/16, yielding an ROAA of .67%.

 This represents a 13.7% increase over the prior year and was attributed to strong core earnings as well as some onetime gains. The latter included early termination revenues from BITS as well as some OREO gains. In addition, as ACBB is part of a community bank consortium for health benefits, we benefited from significantly lower costs resulting from fewer claims.

Total assets at 12/31/16 of $610.9MM were up $33.5MM (5.8%) with the increase due primarily to an increase in our commercial loan portfolio. The latter consisted of commercial real estate participations, bank holding company facilities and community bank stock loans. Our yield on net earning assets was 2.45%, inclusive of federal funds overnight borrowings which typically reduces our yield by approximately 40-50 bspts.

Total liabilities at 12/31/16 were up $31.8MM (6.3 %) with the increase attributed primarily to FHLB advances which helped fund the additional loan volume.

Total equity at 12/31/16 of $ 76.1MM yielded the following capital ratios:

Tier 1 Leverage 12.62%
Tier 1 Risk Based 22.45%
Total Risk Based 23.62%

Other key ratios / metrics were as follows:

Efficiency Ratio 70.49%
Texas Ratio 4.20%
Insight Rating (9/30/16) 74 (A)

ACBB’s Board of Directors declared a dividend of $22 per share on 12/5/16, a 10% increase over the prior year. This dividend was paid out on January 18, 2017. Also please note, effective 2/1/17, the issuance price of our stock was increased by $500 per share to $4,500 per share.

Other news in 2016 includes:

  •  We formed our holding company – Atlantic Community Bancshares, Inc.
  • Twenty-three of our thirty-seven employees were recognized for 10 or more years of service
  • We welcomed 8 banks from New England as we continue to strengthen our aggregation model
  • Compliance Anchor held 16 webinars with 70 non monthly subscribers viewing those and another 69 monthly subscribers participating in the Compliance and BSA Veterans’ Venues
  • We partnered with two firms to provide hedging strategies, primarily for commercial loan transactions
  • Our earnings credit was raised to .8%
  • Our correspondent service revenues increased overall as new business more than offset business lost to mergers and acquisitions

We look forward to the opportunities in 2017 as well as helping you with your challenges. Our mission remains ‘to help community banks compete more effectively.