Loan Expense – Stratia Wire http://stratiawire.com/ Fri, 13 May 2022 05:48:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stratiawire.com/wp-content/uploads/2022/03/stratiawire-icon-120x120.jpg Loan Expense – Stratia Wire http://stratiawire.com/ 32 32 Lake Shore Bancorp, Inc. Announces Dividend and First Quarter Results | News, Sports, Jobs https://stratiawire.com/lake-shore-bancorp-inc-announces-dividend-and-first-quarter-results-news-sports-jobs/ Fri, 13 May 2022 05:48:00 +0000 https://stratiawire.com/lake-shore-bancorp-inc-announces-dividend-and-first-quarter-results-news-sports-jobs/ Lake Shore Bancorp, Inc., the holding company of Lake Shore Savings Bank, reported unaudited net income of $1.1 million, or $0.18 per diluted share, for the first quarter of 2022, versus net income of $1.7 million, or $0.29 per diluted share, for the first quarter of 2021. Other highlights from the first quarter […]]]>

Lake Shore Bancorp, Inc., the holding company of Lake Shore Savings Bank, reported unaudited net income of $1.1 million, or $0.18 per diluted share, for the first quarter of 2022, versus net income of $1.7 million, or $0.29 per diluted share, for the first quarter of 2021.

Other highlights from the first quarter of 2022 include:

¯ Net interest income increased by 3.7% to $5.5 million in the first quarter of 2022, compared to $5.3 million in the first quarter of 2021, due to a $6.0 million increase in the average balance of interest-earning assets and a 26 basis point decrease in the cost of interest-bearing liabilities;

¯ Net interest margin and interest rate spread were 3.38% and 3.30%, respectively, for the three months ended March 31, 2022, compared to 3.29% and 3.15%, respectively, for the quarter ended March 31, 2021;

¯ Total assets as at March 31, 2022 decreased by $6.3 million, or 0.9%, to $707.5 million from December 31, 2021, primarily due to a decrease $36.8 million in cash and cash equivalents and a $4.3 million decrease in available-for-sale securities, which was offset by a $33.1 million increase in loans receivable, net;

¯ Loans receivable, net, increased 6.4% to $550.3 million at March 31, 2022 compared to December 31, 2021, primarily due to net loan growth of $30.0 million commercial construction and commercial real estate in the first quarter of 2022;

¯ net income for the first quarter of 2022 was impacted by increases in non-interest expense and loan loss provision and lower non-interest income; which was partially offset by an increase in net interest income and a decrease in income tax expense compared to the first quarter of 2021; and

¯ Cash dividend payouts increased by $44,000, or 16.4%, to $312,000 for the quarter ended March 31, 2022 compared to the same period in 2021.

“We are extremely pleased to report significant growth in loan originations during the first quarter of 2022, said Daniel P. Reininga, President and CEO. “We achieved this loan growth through building strong customer relationships with excellent credit quality, which helped strengthen our net interest margin in an uncertain interest rate environment.”



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6 ways to stop throwing away your money https://stratiawire.com/6-ways-to-stop-throwing-away-your-money/ Wed, 11 May 2022 17:52:01 +0000 https://stratiawire.com/6-ways-to-stop-throwing-away-your-money/ Don’t throw your money away; instead, grow your business by budgeting, researching, … [+] and beyond. Getty Do you hear that? It’s the painful sound of business owners around the world throwing their money away. Every business owner (especially new entrepreneurs) is guilty of this at one time or another. But, there are plenty of […]]]>

Do you hear that? It’s the painful sound of business owners around the world throwing their money away. Every business owner (especially new entrepreneurs) is guilty of this at one time or another. But, there are plenty of ways to avoid throwing away your cash and save that dough for more important things, like growing your business.

Ways to stop throwing away your money

Want to stop throwing your money away when it comes to your business? If so, you’ve come to the right place. Let’s break down six ways to end waste. Ready, set, go…

1. Budget, Budget, Budget

Your business budgets is a cool little guide to keep you on track financially throughout the month, quarter, year, and more. But if you don’t know how to budget expenses properly and/or include things in your budget that aren’t necessary, you might (Damn, will be) end up throwing away your money.

To make sure your budget is in the best possible shape, here are some steps you can take:

  • Review your budget regularly (for example, annually)
  • Track everything in as much detail as possible
  • Look where you can cut costs from time to time
  • Shop around for providers and services

As time passes and you become a more seasoned entrepreneur, you will learn what adjustments you can make to your budget to perfect it. But in the meantime, you should take every precaution possible to improve your budget and make adjustments if necessary. That way, you don’t end up throwing money down the drain on expenses you can avoid in the first place.

2. Borrow wisely

If you’re like many business owners (about 56%), you can seek help from investors, lenders, friends or family to grow your business. But if you don’t borrow those funds wisely, you could end up hurting your business financially in the long run. And you guessed it: throw away your precious money.

It doesn’t matter if you are borrowing from a bank, a friend, etc., you need to be warned. To ensure you borrow wisely, always know the “gotchas” behind borrowing. For example, if you get a bank loan, know the ins and outs of the loan, including which financing options are best for your business and the type of interest attached to the loan.

The more due diligence you do when it comes to borrowing, the better. So don’t be afraid to dig a little deeper, come up with a solid plan, and ask lots of questions before you commit to borrowing money from anyone (including your friends and family).

3. Use your financial data and reports

Your business data can tell you a lot about your business, if you use it correctly. It can show you where you’re overspending, if you’re pricing poorly, and more. So if you want to save a few bucks, you need to check your financials.

To spot financial trends and issues, review the following financial information (remember that this list is not exhaustive):

Regularly review data and reports to make sure you don’t miss a thing about your finances. If you hire an accountant, ask them to review your financial data and make suggestions on what you can change to avoid wasting your business funds.

4. Do your research

Back when I started my second startup, I needed to find an inexpensive way to print tons of resumes and order forms. My business partner and I ended up buying printing press after printing press of the same type and wasting a lot of money in the process. The moral of the story is this: don’t waste your money before you a lot Of research.

In business, you have to make endless decisions. From buying equipment to finding suppliers, it all comes down to one thing: taking your time and doing lots of research in the process. If you can’t find something, you could end up wasting money (and time!).

So a word of the wise, be sure to spend time researching things before committing to them, especially purchases and expenses for your business. I’m talking about supplies, machinery, company vehicles…you name it. Do your research thoroughly and compare costs before spending money. I guarantee you will thank me later.

5. Keep an eye on declarations

When it comes to business expenses, it can be easy to overlook small expenses. Subscription services, late fees, unnecessary recurring expenses… you get the picture. Small costs can add up quickly if you’re not careful. To avoid wasting money on unnecessary expenses, keep an eye on your statements.

You can save your business a lot of money by doing just one thing: watch the small (and big) loads like a hawk. If you don’t monitor your statements month-to-month (or at least on a regular schedule), you risk missing out on costs you can avoid.

To see where you can cut costs, start by taking a look at your current bank and credit card statements. Ask yourself if an expense is absolutely necessary or if you can do without it (for example, a subscription service). Perform this process regularly to ensure that you don’t incur unnecessary fees throughout the year.

If you can drop the expense or two or three, do it. Your bank account will thank you. If you absolutely need a certain expense to run your business, see what you can do to get a discount or negotiate a better deal…

6. Know when to trade

Cutting costs doesn’t always mean getting rid of an expense completely. You can always use your negotiating skills to negotiate a lower price or deal.

You may be able to negotiate pricing with vendors, subscription fees, renewal fees (e.g. credit cards), etc. You can also save money by paying your bills in advance or in a lump sum (think insurance payments).

Knowing when (and how) to negotiate costs in business can save your company a lot of money. Plus, it can add to your skills when working with clients or clients (talk about a win-win).

Whatever you do, try to use as many tactics as possible to reduce your bills and expenses and save that precious money. This way you can focus on spending your money on bigger and better things (like growing your business!).

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Does not mean test loan cancellation. Test the age. https://stratiawire.com/does-not-mean-test-loan-cancellation-test-the-age/ Tue, 03 May 2022 01:54:20 +0000 https://stratiawire.com/does-not-mean-test-loan-cancellation-test-the-age/ To my surprise, it looks like some type of action comes from the Biden administration on the cancellation of student loan debt held by the federal government. Punditocracy said any debt forgiveness has to be means tested because we don’t want the rich to benefit from such a decision, and also, how would a plumber […]]]>

To my surprise, it looks like some type of action comes from the Biden administration on the cancellation of student loan debt held by the federal government.

Punditocracy said any debt forgiveness has to be means tested because we don’t want the rich to benefit from such a decision, and also, how would a plumber feel about that, or something like that ?

To be honest, I stopped paying attention to this chatter because I haven’t heard anything new about it in a while.

On the one hand, means testing makes sense because it can make action more politically acceptable and, in the minds of some, ‘more equitable’. The thinking goes that doctors and lawyers with six-figure incomes shouldn’t benefit from the pardon meant to target those who are really struggling.

I have two or three thoughts on this. First, we know from long experience that means the test always leaves out more deserving people than it excludes those who don’t need help, while increasing the overall administrative cost of delivering aid. It’s literally less efficient, and less effective.

Second, anyone with student loan debt is not “rich,” at least not yet. Rich people with well-paying jobs are the ones who didn’t have to go into debt to get those degrees. Social media is full of people with six-figure incomes who still owe as much or more than they took out in loans due to interest. Meanwhile, people without debt are rapidly falling behind their peers when it comes to wealth accumulation, and those who started with debt are unlikely to catch up. This lack of generational wealth behind them disproportionately affects minority borrowers. Canceling a student loan wouldn’t erase that wealth gap, but it certainly wouldn’t hurt.

Third, let’s say we’re overstepping the line and really giving too much help to people who don’t need or deserve help, let the really rich get some of that money. We have a method to recover this money without excluding anyone who needs it: taxes.

I am officially in favor of complete cancellation of student loan debt no because of politics or the economics of such a move, but because that would be to recognize that we as a culture and society have screwed up by allowing college costs to rise beyond the economic benefit of the degree for many those who borrowed.

I also believe it would be a catalyst for rethinking how we fund post-secondary education in the future. As I say in my book, Sustainable. Resilient. Free. The future of public higher educationcanceling the debt today to start again tomorrow is not a solution, and there is a simple enough solution to make post-secondary education more accessible to more students.[1]

But… if people really care about making all debt forgiveness “fair, that means the tests don’t go far enough.

That’s why I think any debt relief should do better than the means test.

Instead, we should age test student loan debt relief.

Student loans are a government response to making college affordable, a positive investment in its future. If we’re against people getting something they don’t deserve, why do we let everyone (like me) who went to college before it got so expensive off the hook?

Here is my proposal: We are creating a College Reasonable Expense Index based on historical college costs, then anyone who has paid more than that gets their debt forgiven.

The hard part would be finding the right number to index too, so to start, let’s try using my age cohort as an example.

According to National Center for Education Statistics datapeople like me who went to public 4-year universities and paid in-state tuition from 1988 to 1992 would have spent, on average, about $8500 total for their degree, which is almost equal to what I paid at the University of Illinois.[2]

If we decide that the $8,500 I paid in full at the end of 1992 is the base amount education should cost, we can simply adjust for year of graduation and inflation to find out what those who have debts should have paidthen cancel any amount over that.

So, for example, after adjusting for inflation, a 2012 graduate would have had to pay $13,909 for his four years of schooling. Anyone who paid more should have their remaining balance forgiven.

I guess that pretty much covers anyone who graduated in 2012, or 2013, or 2014, or 2005, or 2001, and so on, and so on.

You had the idea.

If we’re worried about the costs to the US Treasury, maybe we’ll take it a step further and make those who paid less than the base amount pay a tax. How could we understand this?

When I pitched the idea for my Reasonable College Spending Index on Twitter, Lara Schwartz, a professor at the American University School of Public Affairs and Civil Discourse Project Director suggested that a good date to index might be the average exit date of our elected officials.

It would be 1980 for our senators and 1986 for MPs. Let’s split the difference and go with the class of 1983.

If you went to a 4-year public university as an in-state student from 1979 to 1983, on average your tuition would have been just under $4,000, or less than half of what I would pay about a decade later.

This means that if we set the reasonable index for college expenses at 1983 dollars, as a 1992 grad I would owe just under $3,000 in reimbursement, just to make sure my fees academics were “fair” to someone who graduated from college in 1983. This 2012 grad would be considering a bonus of over $9,000.

But John, do you think, wouldn’t that result in a massive transfer of wealth from older to younger people in recognition of the fact that the mechanism of providing economic opportunity through education has gradually eroded until ’til it’s almost completely broken

In reality, this underestimates the advantage those who went to college earlier had given the extra years they had to build wealth on top of their lower costs. Those without debt have been allowed to start building wealth much earlier and faster, as seen in our pandemic housing market, where those who already own a home have seen a global wealth increase of over $6 trillion since 2020giving them more opportunities to pay for their children’s college education or start businesses or even buy more properties that they flip and rent out to those who cannot afford to buy.

Canceling student loan debt for people who have been excluded from this windfall seems fair enough to me, but what do I know


[1] I talk about this in detail in the book, but essentially we stop using public money to subsidize wealthy institutions and give that money to the kinds of schools that the vast majority of students attend.

[2] Even in those relatively affordable days, tuition was rising much faster than inflation, rising more than 23% from 1988 to 1992. Single-year tuition in the state of Illinois now accounts for more than double that amount.

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What are the disadvantages of student loan forgiveness? https://stratiawire.com/what-are-the-disadvantages-of-student-loan-forgiveness/ Sun, 01 May 2022 10:40:08 +0000 https://stratiawire.com/what-are-the-disadvantages-of-student-loan-forgiveness/ In April, President Biden signed a extension of the moratorium on student loans which has been in place since the start of the pandemic. Borrowers will not be required to resume payments and will not be subject to any accrued interest, until August 31 at the earliest. It offers shorter-term relief to the 43 million […]]]>

In April, President Biden signed a extension of the moratorium on student loans which has been in place since the start of the pandemic.

Borrowers will not be required to resume payments and will not be subject to any accrued interest, until August 31 at the earliest. It offers shorter-term relief to the 43 million Americans currently burdened with federal student loans, but many members of Congress want the White House to push for student loan cancellations.

Earlier this week it was reported that President Biden was ‘positive’ about the prospect of writing off $10,000 in student loan debt per person, a move that should help close the wealth gap in the United States.

However, there are undoubtedly potential downsides to the proposals…

Widespread forgiveness could fuel inflation

Currently around 13% of Americans have student loan debtbut one problem that affects the vast majority of Americans is the high inflation rate. The financial stimulus paid to the economy in the first 18 months of the pandemic was intended to provide additional momentum, but the measures may have gone too far.

The influx of federal dollars into the economy boosted consumer purchasing power and served to drive up prices across the board. As the economy returned to normal, the consequence of this investment was a continued rise in prices, that actually harms consumers. There are fears that additional financial aid, this time in the form of student loan forgiveness, could exacerbate the problem.

Is canceling student debt the best use of funds?

While proponents of student loan forgiveness claim it would ease the burden on low-income households, for many people attending college, the investment is well worth the expense.

Neal McCluskeydirector of Cato’s Center for Educational Freedom, points out, “In 2019, the average graduate of a four-year nonprofit college who took out loans left school with only about $29,000 in debt” while “the average four-year degree holder earns six to seven figures more during their lifetime than someone “who has not witnessed superior adduction.

With this in mind, some have argued that widespread student debt forgiveness is unnecessary, as graduates often earn enough money over their lifetime to pay off the debt many times over.

Why favor student borrowers?

Critics of student loan forgiveness proposals often argue that writing off such large debt is unfair to those who have already repaid the money they borrowed.

Some Republican lawmakers have also suggested that focusing on student debt, rather than mortgages and credit cards, for example, unfairly prioritizes some borrowers. At a time when households across the country are struggling to make ends meet, spending such a sum on student loan forgiveness could alienate core groups of voters.

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In times of soaring inflation, how much auto loan should you take out? https://stratiawire.com/in-times-of-soaring-inflation-how-much-auto-loan-should-you-take-out/ Sun, 24 Apr 2022 12:06:19 +0000 https://stratiawire.com/in-times-of-soaring-inflation-how-much-auto-loan-should-you-take-out/ Breadcrumb Links MoneyWise Canada To borrow money Owning a car can be convenient, but also expensive Author of the article: MoneyWise Dina Al Shibeeb Dean Drobot/Shutterstock Content of the article On average, a car is the second most expensive purchase Canadians will make. A key part of budgeting for one is to consider more than […]]]>

Owning a car can be convenient, but also expensive

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On average, a car is the second most expensive purchase Canadians will make. A key part of budgeting for one is to consider more than the initial price of the vehicle.

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After all, MNP’s 2022 Consumer Debt Index report finds that less than a quarter of Canadians are confident they could handle an unexpected car repair without taking on more debt.

To avoid falling into this trap, keep these tips in mind.

Cover fixed expenses first

Olivier Boyd, Licensed Insolvency Trustee at MNP, believes that fixed expenses should be prioritized.

“You should be able to make ends meet and make sure all your other fixed expenses are covered,” Boyd advised. “Anything above that, then you’re entering territory where you’ll probably have to sacrifice something else,” he added.

In addition to using common sense, general wisdom says that people should budget 10-20% of their gross salary for their vehicle each year.

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For example, someone earning $30,000 a year probably shouldn’t budget more than $400 a month after deductions and taxes, and factoring in insurance, Boyd explained.

While this “rule of thumb” may apply everywhere, it could change in urban settings where housing costs could represent up to 50 or 60% of a person’s income. This situation would make buying a car a less sensible option, Boyd said.

This sentiment is echoed by Brian P. Doyle, chairman and co-founder of Doyle Salewski Inc. Doyle describes himself as a “pessimist” as he expects a lingering “major recession”. People who live in urban areas with improved public transportation would be better off getting rid of car expenses when possible, Doyle says.

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Budget for unforeseen expenses

Getting a car loan also means considering interest rates and credit scores, and the impact these cumulative expenses will have on your budget.

Doyle also stresses the importance of leaving some money aside for unforeseen expenses in case the “wheels come loose.” This emergency stash is highly recommended for people with older cars that will likely require maintenance.

Car owners should also be aware of how much money they have set aside for unexpected health care costs, as car expenses can eat away at this reserve.

“These (incidents) are a part of life and people don’t budget for them, so they don’t have the cushion,” Doyle said. “They often budget themselves down to, you know, the smallest amounts.”

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Avoid predatory interest rates

While interest rates of six to eight percent are reasonable for auto loans, any higher amount would put the buyer in the “risky category or second tier loan, the most common term we hear,” a Boyd said.

Equifax Canada’s 2022 Market Pulse Quarterly Credit Trends report found non-bank auto delinquencies increased 14.7% in the last quarter of 2021 (compared to the same period a year earlier). That means more people struggled to repay their auto loans.

Many dealerships or independent lenders will be happy to provide financing for vehicles that could cause users to have bad credit. Potential car buyers can avoid this trap and look into banking programs that cater to people who “clean up their act” and take charge of their debt.

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Read your documents carefully

Although the general advice is to get a car loan from a reputable dealer – who will most likely work with a credible financial institution – Doyle said people should be aware of hidden costs that can swell over time.

“There are a lot (car dealerships) that are still reputable, but there are some that are predatory, and that’s why people have to be careful,” Doyle warned, citing some payday loans as an example.

“We see this often in our practice,” Doyle added. “We get people paying 45%, 50%. They pay penalties. They take out a $500 loan and now they have to pay back $5,000.

Doyle also urged people to carefully review their documents, whether from a reputable lender or not, to avoid hidden or unexpected costs.

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“Is it going to be the interest rate? Will it be the penalties? Application fee ? Are you getting less for your trade than the true market value? Are you paying more for your new vehicle? »

Set your financial limits early

Doyle recalls an incident in 2006 when he wanted to buy a Mini Cooper as a present for his wife’s birthday. The monthly charge was $400. However, the bank at the time wanted to debit his bank account with any amount it deemed reasonable.

“I said no.’ They can charge me the loan amount, which was $400,” he said. “I’m not going to give them that right.

You can also avoid surprises by asking “so if I miss a payment, what happens?” For example, there are layaway plans where a buyer won’t have to pay interest for a year. However, once a payment is missed, the buyer will be liable for high interest on their remaining payments.

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Beware of negative equity

When asked what makes people unable to repay their loans, Boyd pointed to a common factor: “When negative equity is passed through.”

Negative equity what happens when people buy a new car but haven’t paid off their previous vehicle. The driver then often finds himself in default, since he is paying for two cars.

“So a car worth $15,000 or $20,000 might have a loan of $25,000 or $30,000 because the previous vehicles still have up to $10,000 in payments,” he said. Boyd.

Having a manageable loan means knowing your limits.

Deloitte’s 2021 Global Automotive Consumer Study showed that 35% of Canadians don’t research their car financing at all. Research and budget, if you want to avoid being a statistic yourself.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Citizen Financial Services: An Interesting Listing Story (OTCMKTS: CZFS) https://stratiawire.com/citizen-financial-services-an-interesting-listing-story-otcmkts-czfs/ Wed, 13 Apr 2022 13:31:00 +0000 https://stratiawire.com/citizen-financial-services-an-interesting-listing-story-otcmkts-czfs/ tupungato/iStock Editorial via Getty Images Introduction Some regional banks and community banks do not get the attention they deserve simply because they are listed on the OTC or pink sheets, which immediately makes them a no-go area for many investors. In some cases, the banks make the (intelligent) decision to continue to upgrade and that […]]]>

tupungato/iStock Editorial via Getty Images

Introduction

Some regional banks and community banks do not get the attention they deserve simply because they are listed on the OTC or pink sheets, which immediately makes them a no-go area for many investors. In some cases, the banks make the (intelligent) decision to continue to upgrade and that is exactly what Citizens Financial Services (OTCPK: CZFS) now continues. This small Pennsylvania-based bank has topped its pink leaf list as the size of its balance sheet now exceeds $2 billion and is pursuing a Nasdaq listing. This should put the bank on a lot more radar screens and I wanted to see if I should go there long before the listing actually happened.

Actions of Citizen Financial Services
Data by YCharts

A review of the 2021 results shows very satisfactory results

Citizens Financial Services is the holding company of First Citizens Community Bank in Pennsylvania, where it operates approximately 30 branches with a particular focus on agricultural loans in addition to normal home loans and commercial loans.

Thanks to the broadening of the bank’s asset base (total balance sheet size increased from less than $1.9 billion at the end of 2020 to more than $2.1 billion at the end of 2021 ), reported interest income also increased, from $70.3 billion. M in 2020 to $73.2M in 2021. And despite the expanded balance sheet, interest expense declined, which further increased net interest income from $62.2M to $66.1M .

Income statement of financial services to citizens

Citizens Financial Investor Relations

The bank was also able to report stable net non-interest expense of approximately $29.2 million, which translated to pre-tax income and loan loss provision of approximately $37 million. of dollars. We also note that Citizens Financial Services recorded a provision of $1.55 million for loan losses. This is interesting for two reasons: firstly, despite recording a relatively low provision in 2020. And despite the increase in the size of the balance sheet, it is very intriguing to see that loan loss provisions are now lower than in 2019, when the bank ended the year. with a balance sheet total of less than $1.5 billion. I will discuss the bank loan book in the next section of this article.

Net income shows net income of just over $29.1 million, which is $7.38 per share based on the average number of shares of 3.95 million shares throughout the year. The bank currently pays a dividend of $0.47 per share on a quarterly basis and while that means the dividend yield is just under 3%, the dividend is also very safe as the payout ratio is around 25 % of financial results.

The total amount of non-performing assets has shrunk, and the majority is tied to just three borrowers

I like local and regional banks because I like to think they have a better understanding of local markets and are able to better serve their customers (both on the deposit and borrower side), with personalized service . It was very interesting to see that the bank barely increased the size of its loan portfolio in 2021 despite an influx of almost $250 million in deposits. The vast majority of cash inflows were either kept in cash or invested in securities. These tend to be more liquid and therefore safer, which has also made the bank’s balance sheet safer. At the end of 2020, “only” 20% of assets were held in cash or debt securities, but this rose to almost 28% at the end of 2021.

Report on financial services to citizens

Citizens Financial Investor Relations

This also explains why interest income has not increased despite an influx of deposits of hundreds of millions of dollars. It is safer to retain the inflow of cash and securities, but it also means that interest income will be lower.

The image above shows that the total size of the loan portfolio has increased from $1.39 billion to $1.42 billion, which is only a very small increase.

My next step is to always take a look at the breakdown of this loan portfolio. The vast majority of the $1.42 billion is made up of real estate related loans and commercial real estate plays a very important role. That being said, I also like the $201 million in residential real estate and the over $300 million in agriculture-related real estate assets.

Breakdown of Citizen Financial Services loan portfolio

Citizens Financial Investor Relations

We also note that the bank has already set aside $17.3 million as a provision to cover loan losses, which is an increase of approximately 10% over the prior year. Despite a higher amount of provisions, the total amount of loans that are no longer classified as performing has actually decreased on an annual basis. We see the total amount of non-performing loans going from $11.3M to $7.66M.

Citizen Financial Services PNP

Citizens Financial Investor Relations

This is good news for CZFS. Not only because the total amount of non-performing loans has decreased, but also because the increase in provisions now translates into a significantly improved coverage ratio. At the end of 2020, the total amount of provisions was $15.8 million for $11.3 million in bad debts for a coverage rate of 140%. At the end of 2021, the total provision increased to $17.3 million while the total amount of non-performing loans decreased to $7.66 million, which increased the coverage ratio to 226% and c is obviously a much healthier situation.

I also appreciate the color provided by CZFS on non-performing loans, as the majority of these loans (61.4%) appear to be caused by three borrowers, and CZFS has confirmed in its annual report that no specific reservations are necessary for these three loans.

Citizens Financial Services Sour Loan Explanation

Citizens Financial Investor Relations

Of course, we must continue to monitor credit quality, as approximately $68 million of the loan portfolio is classified as “special mention” or “below standard”. Although this is a substantial decrease from the nearly $75 million at the end of 2020, I expect the bank to continue to record provisions for the foreseeable future to ensure that she can go on with the potential fallout of additional loans going bad.

Investment thesis

Watching loans deteriorate is part of banking and there is not a single bank in the world that has never had a loan loss. So if there’s something you can’t avoid, it’s important to see how it’s done and CZFS’s strength is in keeping its loan portfolio under control. I like the bank’s decision to further strengthen its cash and liquid asset position and although the NPL coverage ratio has improved, we should bear in mind that around 5% of its non-residential mortgages is classified as “special mention” or “sub-standard”.

I like CZFS for its financial performance and its rapid increase in tangible book value thanks to the low profit distribution rate. While the 2.8% dividend yield on its own isn’t terribly exciting, the bank is adding over $5/share to its tangible book value which stood at $45.55 at the end of 2021. The P Current /TBV of 1.5 is relatively high, but given that the bank will likely end 2022 with a TBV of over $50, I don’t mind paying 1.35 times the year-end TBV for a bank which trades at less than 10 times earnings.

I think CZFS will appear on a lot more radar screens once the listing is complete and I may be looking to initiate a small initial long over the next few weeks as I familiarize myself with the bank’s performance and wait to see it’s Q1 and H1 performance.

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Double-digit bank credit growth in Q4; NIM probable flats: analysts https://stratiawire.com/double-digit-bank-credit-growth-in-q4-nim-probable-flats-analysts/ Mon, 11 Apr 2022 05:24:00 +0000 https://stratiawire.com/double-digit-bank-credit-growth-in-q4-nim-probable-flats-analysts/ Banks are expected to post healthy profits for the January-March quarter (Q4FY22), as the loan portfolio is expected to grow, on average, in double digits and asset quality to remain stable. Analysts believe the quarter, which was marred by geopolitical tensions, rising bond yields and global interest rates, could see a slowdown in […]]]>

Banks are expected to post healthy profits for the January-March quarter (Q4FY22), as the loan portfolio is expected to grow, on average, in double digits and asset quality to remain stable. Analysts believe the quarter, which was marred by geopolitical tensions, rising bond yields and global interest rates, could see a slowdown in non-interest revenue due to cash losses and lower margins. interest rate (NIM) flattened.

“Earnings momentum should pick up, with healthy loan growth, stable margins and improving asset quality trends. are experiencing healthy growth in unsecured products, demand for working capital, SME lending and mortgage lending. Recoveries and upgrades should exceed slippages. On the expense side, operating expenses may remain elevated due to branch investments, technology and the recovery in retail volumes,” IIFL Securities analysts wrote in their earnings preview report. results.



The brokerage expects net interest income (NII), operating profit before provision (PPoP) and net profit of all banks covered by its coverage to increase by 19%, 4% and 66% year over year. Industrial lending, meanwhile, could increase by nearly 13% year-on-year for banks covered by the IIFL. He expects a resumption of growth in all segments, especially for unsecured retail, SMEs and housing finance.

That said, while analysts believe forward flow into the delinquent category would likely be limited in Q4FY22, analysts expect the behavior of the ECLGS loan pool and restructured portfolio to be key to watch.


Private banks

Kotak Institutional Equities (KIE) analysts report around 21% year-on-year growth and 6% sequential NII growth for more than 10 private banks under their coverage, including Federal Bank, Axis Bank, HDFC Bank, ICICI Bank and IndusInd Bank.

PAT, or profit after tax, improves 86% YoY and 6% YoQ, led by Bandhan Bank (up 978% YoY), RBL Bank (226% YoY), ICICI Bank (64% over one year). ) and Axis Bank (51% YoY).

Loan growth, meanwhile, is expected to increase by 15% and 17% in FY22 and FY23, respectively. “We estimate ICICI Bank to deliver 16% YoY loan growth in Q4FY22, and Kotak Mahindra Bank and Axis Bank to grow 20% and 15% YoY, respectively. HDFC Bank and IndusInd Bank have already announced interim growth of 21% and 13% year-on-year, respectively,” says a report from Motilal Oswal Financial Services.

Those at Kotak warn, however, that banks could become more aggressive on loan growth, putting downward pressure on yields, which may not be fully offset by a rise in benchmark interest rates. At the same time, increasing competition for liquidity (deposits) in the market may also drive up deposit rates.

“Additionally, bond yields seem to be trending higher right now. Against the backdrop of these changes, we think bank margins could be at their highest. We wouldn’t be surprised if managements talk about margin pressure affecting NII growth in the near-medium term,” they said.


Public banks

PSBs are expected to experience continued traction in operating performance, supported by the resumption of business growth and a sustained reduction in provisions, although operating expenses may remain marginally elevated and cash performance sluggish.

Slippages, Motilal Oswal analysts said, would continue to ease, which, coupled with healthy recoveries, would bolster asset quality performance. PSBs are expected to generate NII/PPoP growth of 23%/5% YoY and 4%/9% QoQ, respectively. PAT could grow strongly to 80% YoY and over 20% QoQ in Q4FY22, led by Canara Bank (up 100% YoY), Punjab National Bank (98% YoY). year-on-year) and the State Bank of India (SBI; 66%).

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Tax Breaks for Taxpayers Who Detail – Cross Timbers Gazette | Denton County South | mound of flowers https://stratiawire.com/tax-breaks-for-taxpayers-who-detail-cross-timbers-gazette-denton-county-south-mound-of-flowers/ Sat, 09 Apr 2022 13:36:44 +0000 https://stratiawire.com/tax-breaks-for-taxpayers-who-detail-cross-timbers-gazette-denton-county-south-mound-of-flowers/ Whether you bought a home, refinanced your current home, you may be able to take advantage of tax breaks for taxpayers who detail. Here’s what to keep in mind: Deduction of state and local income, sales and property taxes The deduction taxpayers can claim for state and local income, sales, and property taxes is limited […]]]>

Whether you bought a home, refinanced your current home, you may be able to take advantage of tax breaks for taxpayers who detail. Here’s what to keep in mind:

Deduction of state and local income, sales and property taxes

The deduction taxpayers can claim for state and local income, sales, and property taxes is limited to a combined total deduction of $10,000 to $5,000 if they are married and file separately. State and local taxes paid above this amount cannot be deducted.

Refinance a house

The mortgage interest deduction is limited to interest paid on a loan secured by the taxpayer’s primary or secondary residence. Homeowners who choose to refinance must use the loan to purchase, build or substantially improve their primary or secondary residence, and the mortgage interest they can deduct is subject to the limits described in the “buying a home” section below. .

To buy a house

People who bought a new home in 2021 can only deduct mortgage interest paid on a total of $750,000 ($375,000 married deposited separately) in qualifying debt for a first and second home. For existing mortgages, if the loan originated on or before December 15, 2017, taxpayers can continue to deduct interest on a total of $1 million of eligible debt secured by primary and secondary residences.

Charitable donations

Donations to a qualified charity are also considered tax relief. Taxpayers who itemize deductions can take advantage of a temporary suspension of charitable contribution limits (CARES Act of 2020) that allows them to deduct cash donations to public charities up to 100% of adjusted gross income (AGI) . Normally, the deduction limit for cash contributions is 60% of the AGI.

Interest expense on investments

Investment interest expense is interest paid or accrued on a loan or part of a loan that is applied to property held for taxable investments – interest on a loan you took out to buy stock in a brokerage account, for example. Taxable investments include interest, dividends, annuities or royalties.

Wondering if you need to itemize deductions on your 2021 tax return? Feel free to contact Lindsey Lee at 972-318-1040 or visit www.TaxFixNow.com to schedule an appointment.

(Sponsored Content)

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Tri City Bankshares: 2021 Audited Financial Statements https://stratiawire.com/tri-city-bankshares-2021-audited-financial-statements/ Mon, 04 Apr 2022 13:37:21 +0000 https://stratiawire.com/tri-city-bankshares-2021-audited-financial-statements/ The independent auditor’s report To the Board of Directors and shareholders of Tri City Bankshares Corporation Opinion We have audited the consolidated financial statements of Tri City Bankshares Corporation and its subsidiaries (the Company), which include the consolidated balance sheets as at 31 December 2021 and 2020, […]]]>







The independent auditor’s report

To the Board of Directors and shareholders of

Tri City Bankshares Corporation

Opinion

We have audited the consolidated financial statements of Tri City Bankshares Corporation and its subsidiaries (the Company), which include the consolidated balance sheets as at 31 December 2021 and 2020, the consolidated statements of income, comprehensive income, equity and cash flows for the years then ended and the notes to the consolidated financial statements (collectively, the statements).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States States of America.

We have also audited, in accordance with generally accepted auditing standards in the United States of America (GAAS), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Integrated Internal Control Framework published by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 and our report dated March 23, 2022 expressed a unmodified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis of opinion

We conducted our audits in accordance with GAAS. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to fulfill our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the evidence available to us obtained are sufficient and appropriate to provide a basis for our audit opinion.

Management’s Responsibilities for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting principles in the United States of America and for the design, implementation and maintenance of internal control relating to the preparation and the fair presentation of the financial statements. financial statements that are free from material misstatement, whether due to fraud or error.

When preparing the financial statements, management is required to assess whether there are any conditions or events, taken as a whole, that raise substantial doubt about the Company’s ability to continue its business. continuity of operation for a period of less than one year from the date of publication of the financial statements.

Baker Tilly US, LLP, doing business as Baker Tilly, is a member of the worldwide network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report containing our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore does not guarantee that an audit performed in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, because fraud may involve collusion, falsification, intentional omissions, misstatements or override of control internal. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence a reasonable user’s judgment based on Financial state.

When performing an audit in accordance with GAAS, we:

  • Exercise professional judgment and maintain professional skepticism throughout the audit.

  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and implement audit procedures appropriate to those risks. These procedures include examine, on a test basis, the evidence concerning the amounts and information appearing in the financial statements.

  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

  • assess the appropriateness of accounting methods used and the reasonableness of significant accounting estimates made by management, as well as assess the overall presentation of Financial state.

  • Conclude whether, in our opinion, there are any conditions or events, taken as a whole, that raise substantial doubt about the Company’s ability to continue in business for a reasonable period of time period of time.

We are required to communicate with those charged with governance regarding, among other things, the planned scope and timing of the audit, significant audit findings and certain internal control matters that we identified during the audit.

Milwaukee, Wis.

March 23, 2022

TRI CITY BANK STOCK CORPORATION

CONSOLIDATED RESULTS

As of December 31, 2021 and 2020

ASSETS

Cash and bank receivables Federal funds sold

Total cash and cash equivalents Securities available for sale, at fair value

Loans, less allowance for loan losses of $13,572,773 and $13,106,919 in 2021 and 2020, respectively

Premises and equipment – net Right of use of rental assets Life insurance held by the Bank

Accrued interest receivable and other assets

TOTAL ASSETS

LIABILITIES Deposits

Demand Interest-bearing Certificates of deposit Total Deposits Lease debt

LIABILITIES AND EQUITY

Accrued interest payable and other liabilities

Total responsibilities

EQUITY

Cumulative preferred shares, $1 par value 200,000 shares authorized, no shares issued

Common shares, $1 par value, 15,000,000 shares authorized, 8,904,915 shares issued and outstanding in 2021 and 2020 Additional contributed capital

Accumulated other (loss) comprehensive income Retained earnings

Full shareholder equity

2021

$

134 568 580

891 783 11 019 722

135 460 363 195 365 049

820 639 129 558 509 399

1,001,079 594,945 140,634

17,314,670 16,026,081

14,567,534 15,659,597

44,300,870 43,312,658

21,136,368 22,400,218

$

2,054,498,528

  • $498,794,405 1,289,460,638 56,123,838 1,844,378,881

    2020

    $184,345,327

    $

    1,796,413,636

    $

    420,974,242 1,096,230,547 57,382,365 1,574,587,154

    14,567,534 15,659,597

    3,920,473 15,063,354

    1 862 866 888

    1,605,310,105

    8,904,915 8,904,915

    26,543,470 26,543,470

    (2,116,891) 8,083,013

    158 300 146 147 572 133

    191 631 640

    191 103 531

    TOTAL LIABILITIES AND EQUITY

  • $2,054,498,528

See accompanying notes to consolidated financial statements.

3

$

1,796,413,636

TRI CITY BANK STOCK CORPORATION

CONSOLIDATED INCOME STATEMENTS For the years ended December 31, 2021 and 2020

INTEREST INCOME Loans

Investment security

Taxable

tax exempt

Federal funds sold and owed by banks Other

Total interest income INTEREST EXPENSES Drop his

Other borrowings Total interest charges

Net interest income before allowance for loan losses Allowance for loan losses

Net interest income after provision for loan losses

INTEREST-FREE INCOME

Service charge on deposits ATM debit card exchange

Merchant services Revenue from servicing loans Net gain on sale of loans

Increase in bank-owned life insurance Death benefits from bank-owned life insurance

Other income

Total non-interest income

NON-INTEREST EXPENSES Salaries and benefits Net occupancy costs

Furniture and equipment expenses

Computer and telecommunications costs Professional fees

Advertising and promotion

FDIC and other regulatory assessments

New Markets TaxCredits Investment Depreciation Office Supplies

Other expenses

Total non-interest expenses Total income before taxes Less: Income tax expenses NET REVENUE

2021

2020

$

42,999,130

7,550,556 6,499,710

2,072,203 1,401,511

236 859 424 789

19,326 19,325

52,878,074

943,946 6,943,952

51,934,122 49,620,293

– 1.5 million

51 934 122

3,649,467 3,572,842

5,580,096 5,108,086

744 807 911 465

818 178 771 158

1,287,103,790,051

2,763,600 2,884,025

988,212 1,050,659

2,715,450,000

265 726 579 396

2,007,767 18,107,671

28,998,329 27,791,365

4,220,419 4,229,818

2,799,693 2,896,063

6,077,802 5,547,873

1,900,795 1,757,098

1,084,450 911,740

836 855 527 222

1,869,312 741,891 3,270,035 51,799,581

18,242,212 16,735,147

2,883,643 2,518,795

$

15,358,569

See accompanying notes to consolidated financial statements.

4

$42,721,792

51 067 127

1,446,826 8 1,446,834

48 120 293

2,253,568 18,371,250

1,619,796 891,900 3,583,521 49,756,396

$

14,216,352

TRI CITY BANK STOCK CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2021 and 2020

2021

2020

NET REVENUE

Other comprehensive income, net of tax: Securities available for sale:

Net unrealized holding gains (losses) during the period Reclassification adjustment for (gains) losses in profit or loss Tax effect

Total other comprehensive income (loss), net of tax: COMPREHENSIVE RESULT

$

15,358,569

(14,047,003) 9,691,323

28,248 3,818,851 (10,199,904)

$

5,158,665

See accompanying notes to consolidated financial statements.

5

$14,216,352

$

(2,640,026) 7,051,297 21,267,649

This is an excerpt from the original content. To continue reading it, go to the original document here.

Warning

Tri City Bankshares Corporation published this content on April 04, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on Apr 04, 2022 1:36:07 PM UTC.

Public now 2022

All news about TRI CITY BANKSHARES CORPORATION

Sale 2020 66.5 million

Net income 2020 14.2 million

Net cash 2020 180M

2020 PER ratio 11.0x
2020 performance 2.97%
Capitalization 185 million
185 million
EV / Sales 2019 1.44x
EV / Sales 2020 -0.36x
# of employees 454
Floating 100%

Chart TRI CITY BANKSHARES CORPORATION


Duration :

Period :




Tri City Bankshares Corporation Technical Analysis Chart |  MarketScreener



Evolution of the income statement


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Arsenal and Tottenham in Omar Marmoush transfer battle after Wolfsburg star reveals Premier League dream https://stratiawire.com/arsenal-and-tottenham-in-omar-marmoush-transfer-battle-after-wolfsburg-star-reveals-premier-league-dream/ Sat, 02 Apr 2022 13:51:00 +0000 https://stratiawire.com/arsenal-and-tottenham-in-omar-marmoush-transfer-battle-after-wolfsburg-star-reveals-premier-league-dream/ ARSENAL and Tottenham are in competition for Wolfsburg winger Omar Marmoush, according to reports. The 23-year-old Egypt international is enjoying an impressive season on loan at his club’s Bundesliga rivals Stuttgart. 1 Arsenal and Tottenham both want Egyptian star Omar MarmoushCredit: Getty Marmoush is due to return to Wolfsburg in May, but will only have […]]]>

ARSENAL and Tottenham are in competition for Wolfsburg winger Omar Marmoush, according to reports.

The 23-year-old Egypt international is enjoying an impressive season on loan at his club’s Bundesliga rivals Stuttgart.

1

Arsenal and Tottenham both want Egyptian star Omar MarmoushCredit: Getty

Marmoush is due to return to Wolfsburg in May, but will only have one year left on his contract.

And Germany’s best-selling daily Picture claims rival bosses Mikel Arteta and Antonio Conte are monitoring his situation in view of a summer move.

Cairo-born Marmoush has made 15 appearances for Stuttgart this season, scoring three goals and setting up four more.

He caught the eye in last month’s 3-2 win over Augsburg, scoring with a sumptuous free-kick.

Marmoush won 11 Egyptian caps and helped the Pharaohs reach the Africa Cup of Nations final last December – where they lost to Senegal.

He suffered a similar heartbreak last week when Egypt missed out on qualifying for the World Cup final, once again at the expense of Senegal.

The winger has previously stated his aim to follow Liverpool icon Mohamed Salah’s lead by moving to England.

He said: “I would love to play for a big Premier League team one day. I hope to play alongside Salah one day.”

GRAND NATIONAL BETTING SPECIAL – LATEST OFFERS AND OFFERS

Wolfsburg signed Marmoush from Cairo club Wadi Degla in 2017.

He impressed on loan at second-tier St Pauli last season after being shipped off by Wolfsburg manager Mark van Bommel.

Since then, he has gone from strength to strength at Stuttgart, scoring on his debut and winning the Bundesliga Rookie of the Month award last September.

Marmoush could now become Arsenal’s second Egyptian player following in the footsteps of Mohamed Elneny.

Meanwhile, compatriots Mido and Hossam Ghaly have previously featured for Spurs.

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