Colonial Bankshares Inc. (COBK, Financial) filed Quarterly Report for the period ended 2009-03-31.
Colonial Bankshares Inc. is the mid-tier stock holding company ofColonial Bank FSB. Colonial Bankshares Inc. is a federally charteredcorporation and owns 100% of the outstanding common stock of Colonial Bank FSB. Colonial Bankshares Inc. has not engaged in any significant business activity other than owning all of the shares of common stock of Colonial Bank FSB. Colonial Bankshares Inc. has a market cap of $28.8 million; its shares were traded at around $6.5 with a P/E ratio of 19.7 and P/S ratio of 1.
Securities available-for-sale increased $3.3 million, or 2.0%, to $168.8 million at March 31, 2009 from $165.5 million at December 31, 2008. The increase was the result of purchases in the amount of $22.0 million and increases in market value of $1.4 million offset by $6.3 million in principal amortization and $13.8 million in sales, calls and maturities. In addition, securities held-to-maturity increased by $868 thousand, to $17.8 million at March 31, 2009 from $16.9 million at December 31, 2008. This increase was the result of purchases of $3.4 million offset by principal amortization of $154 thousand and maturities of $2.4 million.
Deposits increased $6.3 million, or 1.4%, to $463.5 million at March 31, 2009 from $457.2 million at December 31, 2008. The largest increase was in NOW accounts, which increased $4.9 million, or 8.8%, to $60.3 million at March 31, 2009 from $55.4 million at December 31, 2008. Savings accounts increased $3.4 million, or 4.2%, to $84.5 million at March 31, 2009 from $81.1 million at December 31, 2008. Money-market deposit accounts increased by $2.1 million, or 4.6%, to $47.5 million at March 31, 2009 from $45.4 million at December 31, 2008. Super-NOW accounts increased by $255 thousand to $15.8 million at March 31, 2009 from $15.5 million at December 31, 2008, non-interest bearing demand accounts increased by $245 thousand to $18.4 million at March 31, 2009 from $18.1 million at December 31, 2008 and certificates of deposit decreased by $4.6 million to $237.1 million at March 31, 2009 from $241.7 million at December 31, 2008.
General. Net income increased $139 thousand to $443 thousand for the three months ended March 31, 2009 from $304 thousand for the three months ended March 31, 2008. The principal reasons for the increase were an increase of $690 thousand in net interest income, an increase in non-interest income of $254 thousand offset by an increase in the provision for loan losses of $195 thousand, an increase in non-interest expense of $515 thousand and an increase in income tax expense of $95 thousand.
Non-interest Income. Non-interest income was $376 thousand for the three months ended March 31, 2009 and $122 thousand for the three months ended March 31, 2008. There was a net gain on the sale and call of securities of $157 thousand for the three months ended March 31, 2009, compared to a loss of $22 thousand during the same quarter in 2008. Fees and service charges on deposit accounts increased by $19 thousand to $277 thousand for the three months ended March 31, 2009 from $258 thousand for the three months ended March 31, 2008. The increase in fees and service charges was attributed to increases in volume of overdraft fees and ATM fees and the implementation of new service charges on deposit accounts. Non-interest income for the three months ended March 31, 2009 was reduced by an other-than-temporary impairment of a mutual fund in our available-for-sale investment security portfolio. This charge totaled $97 thousand (pre-tax) and resulted from a further decline in the fair value of the underlying mortgage-related securities held by this mutual fund. For the three months ended March 31, 2008, the other-than-temporary impairment of the mutual fund was $150 thousand.
Non-interest Expense. Non-interest expense increased $515 thousand, or 22.6%, to $2.8 million for the three months ended March 31, 2009 from $2.3 million for the three months ended March 31, 2008. Compensation and benefits expense remained constant at $1.3 million for the three months ended March 31, 2009 and 2008, respectively. Occupancy and equipment expense increased $58 thousand mainly due to increases in heat, light and utilities, depreciation expense and real estate taxes which is attributable to the new branch locations. Data processing expense increased $20 thousand due to the growth of loan and deposit accounts which is also due to the new branch locations. Professional fees increased $34 thousand mainly due to increases in legal fees and accounting and audit expenses. Federal deposit insurance premiums increased to $391 thousand for the three months ended March 31, 2009 from $41 thousand for the three months ended March 31, 2008. This increase was mainly due to increases in the balance of insurable accounts and in the increase in the deposit insurance rates as assessed by the FDIC. Other miscellaneous non-interest expense increased $41 thousand. This increase was mainly due to an increase in employee training expense, annual meeting expense, supervisory examination expense and loan processing expense.
Read the The complete ReportCOBK is in the portfolios of Third Avenue Management, Martin Whitman of Third Avenue Value Fund.
Colonial Bankshares Inc. is the mid-tier stock holding company ofColonial Bank FSB. Colonial Bankshares Inc. is a federally charteredcorporation and owns 100% of the outstanding common stock of Colonial Bank FSB. Colonial Bankshares Inc. has not engaged in any significant business activity other than owning all of the shares of common stock of Colonial Bank FSB. Colonial Bankshares Inc. has a market cap of $28.8 million; its shares were traded at around $6.5 with a P/E ratio of 19.7 and P/S ratio of 1.
Highlight of Business Operations:
Net loans receivable remained constant at $303.1 million at March 31, 2009 from $303.2 million at December 31, 2008. One- to four-family residential real estate loans increased $1.3 million, or 0.9%, to $146.6 million at March 31, 2009 from $145.3 million at December 31, 2008. Commercial real estate loans increased $3.9 million, or 4.8%, to $85.9 million at March 31, 2009 from $82.0 million at December 31, 2008. Home equity loans and lines of credit, construction loans and commercial loans decreased by $1.1 million, $1.9 million and $1.9 million, respectively.Securities available-for-sale increased $3.3 million, or 2.0%, to $168.8 million at March 31, 2009 from $165.5 million at December 31, 2008. The increase was the result of purchases in the amount of $22.0 million and increases in market value of $1.4 million offset by $6.3 million in principal amortization and $13.8 million in sales, calls and maturities. In addition, securities held-to-maturity increased by $868 thousand, to $17.8 million at March 31, 2009 from $16.9 million at December 31, 2008. This increase was the result of purchases of $3.4 million offset by principal amortization of $154 thousand and maturities of $2.4 million.
Deposits increased $6.3 million, or 1.4%, to $463.5 million at March 31, 2009 from $457.2 million at December 31, 2008. The largest increase was in NOW accounts, which increased $4.9 million, or 8.8%, to $60.3 million at March 31, 2009 from $55.4 million at December 31, 2008. Savings accounts increased $3.4 million, or 4.2%, to $84.5 million at March 31, 2009 from $81.1 million at December 31, 2008. Money-market deposit accounts increased by $2.1 million, or 4.6%, to $47.5 million at March 31, 2009 from $45.4 million at December 31, 2008. Super-NOW accounts increased by $255 thousand to $15.8 million at March 31, 2009 from $15.5 million at December 31, 2008, non-interest bearing demand accounts increased by $245 thousand to $18.4 million at March 31, 2009 from $18.1 million at December 31, 2008 and certificates of deposit decreased by $4.6 million to $237.1 million at March 31, 2009 from $241.7 million at December 31, 2008.
General. Net income increased $139 thousand to $443 thousand for the three months ended March 31, 2009 from $304 thousand for the three months ended March 31, 2008. The principal reasons for the increase were an increase of $690 thousand in net interest income, an increase in non-interest income of $254 thousand offset by an increase in the provision for loan losses of $195 thousand, an increase in non-interest expense of $515 thousand and an increase in income tax expense of $95 thousand.
Non-interest Income. Non-interest income was $376 thousand for the three months ended March 31, 2009 and $122 thousand for the three months ended March 31, 2008. There was a net gain on the sale and call of securities of $157 thousand for the three months ended March 31, 2009, compared to a loss of $22 thousand during the same quarter in 2008. Fees and service charges on deposit accounts increased by $19 thousand to $277 thousand for the three months ended March 31, 2009 from $258 thousand for the three months ended March 31, 2008. The increase in fees and service charges was attributed to increases in volume of overdraft fees and ATM fees and the implementation of new service charges on deposit accounts. Non-interest income for the three months ended March 31, 2009 was reduced by an other-than-temporary impairment of a mutual fund in our available-for-sale investment security portfolio. This charge totaled $97 thousand (pre-tax) and resulted from a further decline in the fair value of the underlying mortgage-related securities held by this mutual fund. For the three months ended March 31, 2008, the other-than-temporary impairment of the mutual fund was $150 thousand.
Non-interest Expense. Non-interest expense increased $515 thousand, or 22.6%, to $2.8 million for the three months ended March 31, 2009 from $2.3 million for the three months ended March 31, 2008. Compensation and benefits expense remained constant at $1.3 million for the three months ended March 31, 2009 and 2008, respectively. Occupancy and equipment expense increased $58 thousand mainly due to increases in heat, light and utilities, depreciation expense and real estate taxes which is attributable to the new branch locations. Data processing expense increased $20 thousand due to the growth of loan and deposit accounts which is also due to the new branch locations. Professional fees increased $34 thousand mainly due to increases in legal fees and accounting and audit expenses. Federal deposit insurance premiums increased to $391 thousand for the three months ended March 31, 2009 from $41 thousand for the three months ended March 31, 2008. This increase was mainly due to increases in the balance of insurable accounts and in the increase in the deposit insurance rates as assessed by the FDIC. Other miscellaneous non-interest expense increased $41 thousand. This increase was mainly due to an increase in employee training expense, annual meeting expense, supervisory examination expense and loan processing expense.
Read the The complete ReportCOBK is in the portfolios of Third Avenue Management, Martin Whitman of Third Avenue Value Fund.
