941 Bank Deposit Forms

Hamilton Bancorp, Inc. Announces Results for Fourth Quarter and Fiscal Year Ended March 31, 2013.

TOWSON
 , uninc. city (1990 pop. 49,445), seat of Baltimore co., N Md., a residential and industrial suburb of Baltimore; settled c.1750. An important suburban business and government center, the city has varied manufactures.
, Md., May 7, 2013 /PRNewswire/ —
Hamilton
 city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs.
 Bancorp, Inc.
(Nasdaq: HBK), today reported a net loss of $601,600, or a loss of $0.18
per share (basic and
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
), for the quarter-ended March 31, 2013,
compared to a net loss of $911,500 for the quarter ended March 31, 2012.
Net loss for the year ended March 31, 2013 was $172,000, or a loss of
$0.05 per share (basic and diluted), compared to net income of $131,000
for the year ended March 31, 2012. Per share amounts for the prior year
periods are not applicable as the net income reported is for Hamilton
Bank prior to the completion of its mutual-to-stock conversion on

October
 see month.
 10, 2012. As part of the conversion, Hamilton Bancorp became the
Bank’s holding company and raised $35.6 million in
net proceeds

 in
a subscription offering.

Balance Sheet Review

Total assets at March 31, 2013 increased 4.2% to $332.0 million from
$318.5 million at March 31, 2012. The increase in assets was primarily
due to the $35.6 million in net proceeds from the Bank’s
mutual-to-stock conversion. Investment securities increased $21.4
million to $116.2 million at March 31, 2013.

Total loans (net) decreased $10.6 million to $159.3 million at March
31, 2013 from $169.9 million at March 31, 2012, with the largest decline
occurring in residential one- to four-family loans as such loans were
repaid or refinanced and sold into the secondary market. The Bank
continues to transform the composition of its loan portfolio by
emphasizing commercial and commercial real estate lending which has
resulted in residential loan balances declining and commercial real
estate and commercial business loans increasing. Commercial real estate
loans increased $5.2 million during fiscal 2013, and accounted for 22.4%
of gross loans at March 31, 2013 compared to 17.9% at March 31, 2012.
While commercial business loans decreased $199,000 during fiscal 2013,
such loans increased as a percentage of gross loans, representing 16.7%
of gross loans at March 31, 2013 compared to 15.7% at March 31,
2012.

Total deposits were $260.1 million at March 31, 2013, compared to
$281.0 million at March 31, 2012. The decline in deposits was due in
part to the withdrawal of funds used to purchase Company stock in the
Bank’s mutual-to-stock conversion and the maturity of
higher-costing certificates of deposit. The Company remains focused on
changing its deposit mix to rely less on certificates of deposit as a
primary funding source and more on checking and savings accounts.

Total stockholders’ equity at March 31, 2013 was $67.4 million,
compared to total equity of $35.1 million at March 31, 2012. The
increase was primarily
attributable

 to the proceeds from the Bank’s
mutual-to-stock conversion. The Company’s
book value per common
share

 at March 31, 2013 was $19.71. At that same date,
tangible

 book
value per share equaled $18.87.

Asset Quality Review

Nonperforming assets decreased 27.5% to $5.9 million at March 31,
2013, from $8.1 million at March 31, 2012. Total nonperforming assets
were 1.77% of total assets at March 31, 2013, compared to 2.55% at March
31, 2012. During the year ended March 31, 2013, $596,000 in
nonperforming loans was paid in full and the Bank charged off $3.2
million in nonperforming loans. Of the $3.2 million in loans charged
off, $1.7 million had been previously reflected in the Bank’s
allowance for loan losses as specific reserves at March 31, 2012.

The provision for loan losses totaled $1.3 million for the quarter
ended March 31, 2013, compared to a provision of $2.3 million for the
same quarter of 2012. The provision for loan losses totaled $1.7 million
for the year ended March 31, 2013 compared to $2.7 million for fiscal
2012. The majority of the provision in the quarter ended March 31, 2013
was attributable to one lending relationship involving a commercial line
of credit and two equipment loans totaling $1.2 million. During the
fourth quarter of 2013, $984,000 of the principal loan balance was
deemed
uncollectible

 and charged off. The
remaining principal balance

 is
expected to be collected through the sale of equipment that secured the
loans. In addition, general reserves for the most recent quarter
increased nearly $240,000 as a result of historical net charge-offs
calculated under
ASC
 Ambulatory surgery center, see there
 450 “Accounting for
Contingencies

“.

The allowance for loan and lease losses at March 31, 2013 totaled
$2.1 million, or 1.28% of total loans, compared to $3.6 million at March
31, 2012, or 2.05% of total loans. The $1.6 million decrease in the
allowance for loan losses primarily resulted from the charge-off of
loans during fiscal 2013 for which the Bank had established specific
reserves as of March 31, 2012.

Income Statement Review

Net interest income remained unchanged at $2.1 million for the
quarters ended March 31, 2013 and 2012. Net interest income decreased
$517,000 to $8.1 million for the year ended March 31, 2013, compared to
$8.6 million for fiscal 2012. The decrease during fiscal 2013 was due to
the low interest rate environment which resulted in a decrease in yields
on loans and investments which was partially offset by a decrease in the
cost of deposits. For the three months and year ended March 31, 2013,
the interest rate spread decreased 21 and 20 basis points to 2.47% and
2.44%, respectively, from the prior year periods. The net interest
margin also decreased from 2.78% for the year ended March 31, 2012 to
2.62% for the year ended March 31, 2013.

Noninterest income for the fourth quarter of 2013 totaled $324,000,
a decrease of $52,000, or 13.8%, compared to the fourth quarter of 2012.
The decrease between the two quarters was primarily due to decreases in
gain on sale of investment securities and sale of
SBA

abbr.
Small Business Administration

Noun 1. SBA – an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government
 loans. The
decrease was partially offset by increases in earnings on bank-owned
life insurance and service charges. For the year ended March 31, 2013,
noninterest income totaled $941,000, a decrease of $6,000, or 0.6%,
compared to the year ended March 31, 2012. The decrease in fiscal 2013
was primarily due to decreases in gain on sale of investment securities,
partially offset by increases in service charges, gain on sale of loans
held for sale, income from
REO

Noun

NZ a language [Maori]
 property, and other noninterest revenue.
Gains on the sale of loans increased as the Bank has sold residential
loans into the secondary market.

Noninterest expenses increased $370,000 to $2.1 million for the
three months ended March 31, 2013, compared to $1.7 million for the
three months ended March 31, 2012. The higher expense in the 2013
quarter is due to a bonus
reversal
 n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its
 during the 2012 quarter, as well as
the added costs associated with operating as a public company.
Noninterest expenses increased $956,000 to $7.8 million for the year
ended March 31, 2013, compared to $6.8 million for fiscal 2012. The
largest contributors to the increase in fiscal 2013 were increases in
salaries and benefits due to additional staff,
data processing
 or  operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a
,
advertising,
professional services

, other real estate owned, equipment
and deposit insurance premiums.

Use of Non-GAAP Financial Measures

This press release contains financial measures that are not
calculated in
accordance

 with U.S.
generally accepted accounting
principles

 (”
GAAP

See generally accepted accounting principles (GAAP).
“). Tangible book value and tangible book
value per share are non-GAAP financial measures. A reconciliation to
stockholders’ equity and book value per share is provided below.
The Company believes that the presentation of non-GAAP financial
measures will permit investors to assess the Company’s core
operating results on the same basis as management.

About Hamilton Bancorp, Inc.

Hamilton Bancorp, Inc. is the parent company of Hamilton Bank.
Hamilton Bank is a federally-chartered
savings bank
 financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest.
 that has served the
banking needs of its customers since 1915. Hamilton Bank conducts
business primarily from its five full service banking offices located in

Baltimore
 city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745.
 City,
Maryland
 , one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N).
 and the Maryland counties of Baltimore and
Anne
 (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School.
 
Arundel
 
.

This press release may contain statements
relating to
 relate prep

 relate prep → ,  
 the future
results of the Company (including certain projections and business
trends) that are considered “forward-looking statements” as
defined in the
Private Securities Litigation Reform Act

 of 1995).
Forward-looking statements include statements regarding anticipated
future events and can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words such
as “believe,” “expect,” “anticipate,”
“estimate,” and “intend” or future or
conditional

 verbs such as “will,” “would,” “should,”
“could,” or “may.” Forward-looking statements, by
their nature, are subject to risks and uncertainties. Certain factors
that could cause actual results to differ materially from expected
results include increased competitive pressures, changes in the interest
rate environment, general economic conditions or conditions within the
securities markets, legislative and
regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 changes that could
adversely affect the business in which Hamilton Bancorp, Inc. and
Hamilton Bank are engaged, and other factors that may be described in
the Company’s annual report on Form 10-K and quarterly reports on
Form 10-Q as filed with the Securities and Exchange Commission. The
forward-looking statements are made as of the date of this release, and,
except as may be required by applicable law or regulation, the Company
assumes no obligation to update the forward-looking statements or to
update the reasons why actual results could differ from those projected
in the forward-looking statements.

The financial results presented in this press release for the fiscal
year ended March 31, 2013 are preliminary until such time when the
annual Form 10-K is filed in June 2013.

SOURCE Hamilton Bancorp, Inc.