Alliance Financial Corp. (ALNC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Alliance Financial Corp. has a market cap of $146.19 million; its shares were traded at around $31.35 with a P/E ratio of 12.29 and P/S ratio of 1.72. The dividend yield of Alliance Financial Corp. stocks is 3.83%. Alliance Financial Corp. had an annual average earning growth of 4.2% over the past 5 years.
Net income for the nine months ended September 30, 2010 was $8.8 million compared with $8.0 million in the year-ago period.
Net income available to common shareholders for the nine months ended September 30, 2010 was $8.8 million or $1.89 per diluted common share, compared with $6.9 million or $1.49 per diluted common share in the year-ago period. Preferred dividends and the accretion of the discount on preferred stock issued under the Treasury Departments Capital Purchase Program was $1.1 million or $0.24 per diluted common share for the nine months ended September 30, 2009. The Company redeemed the preferred stock in May 2009.
Net interest income totaled $11.2 million in the three months ended September 30, 2010, which was approximately equal to the third quarter of 2009 and the second quarter of 2010 as the Companys average earning assets and the tax-equivalent net interest margin were relatively stable in each of the three quarterly periods. Average interest earning assets were approximately $1.3 billion in each of the three quarterly periods. The tax-equivalent net interest margin was 3.57% in the third quarter of 2010, compared with 3.62% in the third quarter of 2009 and 3.56% in the second quarter of 2010.
Our liability mix changed favorably during 2009 and into 2010 as we continued to focus on growing lower cost savings, demand and money market accounts (transaction accounts) and relied less on higher promotional rates to attract or retain retail time accounts. The aggregate average balance of transaction accounts was $766.9 million in the third quarter, which was an increase of $83.8 million or 12.3% from the aggregate average balances of $683.1 million in the third quarter of 2009. Average transaction account balances comprised 68.1% of total average deposits in the third quarter, compared with 62.8% in the third quarter of 2009. Average time account balances were $359.2 million or 31.9% of total average deposits, compared with $404.4 million or 37.2% in the same period last year. Our ability to gather core transaction deposits over the past year has been greatly enhanced by our strong financial position and earnings performance, enhanced product offerings including upgraded treasury management and internet banking platforms, and a high positive awareness of the Alliance brand. These factors, combined with volatility in equity markets and other higher risk asset classes, and negative operating performance or other challenges being experienced by certain larger financial institutions operating in our market, have been important contributors to our transaction account gains in 2009 and 2010.
Net interest income for the nine months ended September 30, 2010 totaled $33.5 million, an increase of $1.6 million or 4.9% compared with $31.9 million in the year-ago period. Average earning assets increased $23.5 million in the first nine months of 2010 compared with the year-ago period due primarily to growth in the securities and residential mortgage portfolios. The tax-equivalent net interest margin increased 7 basis points to 3.58% in the first nine months of 2010 compared with the year-ago period. A decrease of 32 basis points in the Companys tax-equivalent earning-assets yield in the first nine months of 2010 compared with the same period in 2009 was offset by a decrease of 46 basis points in the cost of funds. The rate of decline in our cost of funds has slowed in recent quarters as our ability to reduce rates has been diminished by the magnitude of rate reductions that we have made to our interest-bearing deposit accounts over the past three years. Over the past four quarters, the rate of decline in our cost of funds has been nearly equal to the rate of decline in our earning-assets yield. As a result, our net interest margin has been relatively unchanged in each of the first three quarters of 2010. We expect our earning assets yield will decrease more than our cost of funds will decrease in coming quarters, resulting in downward pressure on our net interest margin.
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Alliance Financial Corp. has a market cap of $146.19 million; its shares were traded at around $31.35 with a P/E ratio of 12.29 and P/S ratio of 1.72. The dividend yield of Alliance Financial Corp. stocks is 3.83%. Alliance Financial Corp. had an annual average earning growth of 4.2% over the past 5 years.
Highlight of Business Operations:
Net income for the quarter ended September 30, 2010 was $3.1 million or $0.66 per diluted share compared to $3.0 million or $0.64 per diluted share in the year-ago quarter.Net income for the nine months ended September 30, 2010 was $8.8 million compared with $8.0 million in the year-ago period.
Net income available to common shareholders for the nine months ended September 30, 2010 was $8.8 million or $1.89 per diluted common share, compared with $6.9 million or $1.49 per diluted common share in the year-ago period. Preferred dividends and the accretion of the discount on preferred stock issued under the Treasury Departments Capital Purchase Program was $1.1 million or $0.24 per diluted common share for the nine months ended September 30, 2009. The Company redeemed the preferred stock in May 2009.
Net interest income totaled $11.2 million in the three months ended September 30, 2010, which was approximately equal to the third quarter of 2009 and the second quarter of 2010 as the Companys average earning assets and the tax-equivalent net interest margin were relatively stable in each of the three quarterly periods. Average interest earning assets were approximately $1.3 billion in each of the three quarterly periods. The tax-equivalent net interest margin was 3.57% in the third quarter of 2010, compared with 3.62% in the third quarter of 2009 and 3.56% in the second quarter of 2010.
Our liability mix changed favorably during 2009 and into 2010 as we continued to focus on growing lower cost savings, demand and money market accounts (transaction accounts) and relied less on higher promotional rates to attract or retain retail time accounts. The aggregate average balance of transaction accounts was $766.9 million in the third quarter, which was an increase of $83.8 million or 12.3% from the aggregate average balances of $683.1 million in the third quarter of 2009. Average transaction account balances comprised 68.1% of total average deposits in the third quarter, compared with 62.8% in the third quarter of 2009. Average time account balances were $359.2 million or 31.9% of total average deposits, compared with $404.4 million or 37.2% in the same period last year. Our ability to gather core transaction deposits over the past year has been greatly enhanced by our strong financial position and earnings performance, enhanced product offerings including upgraded treasury management and internet banking platforms, and a high positive awareness of the Alliance brand. These factors, combined with volatility in equity markets and other higher risk asset classes, and negative operating performance or other challenges being experienced by certain larger financial institutions operating in our market, have been important contributors to our transaction account gains in 2009 and 2010.
Net interest income for the nine months ended September 30, 2010 totaled $33.5 million, an increase of $1.6 million or 4.9% compared with $31.9 million in the year-ago period. Average earning assets increased $23.5 million in the first nine months of 2010 compared with the year-ago period due primarily to growth in the securities and residential mortgage portfolios. The tax-equivalent net interest margin increased 7 basis points to 3.58% in the first nine months of 2010 compared with the year-ago period. A decrease of 32 basis points in the Companys tax-equivalent earning-assets yield in the first nine months of 2010 compared with the same period in 2009 was offset by a decrease of 46 basis points in the cost of funds. The rate of decline in our cost of funds has slowed in recent quarters as our ability to reduce rates has been diminished by the magnitude of rate reductions that we have made to our interest-bearing deposit accounts over the past three years. Over the past four quarters, the rate of decline in our cost of funds has been nearly equal to the rate of decline in our earning-assets yield. As a result, our net interest margin has been relatively unchanged in each of the first three quarters of 2010. We expect our earning assets yield will decrease more than our cost of funds will decrease in coming quarters, resulting in downward pressure on our net interest margin.
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