With a market capitalization of $40.59 million, Sturgis Bancorp, Inc. (OTCMKTS: STBI) had a previous close of $19.25. Through the year, this stock has dwindled within the range of $14.55 – $20.00, and its average trading volume is 1.25K shares. The company has recently announced its net income for Q1-2021.
Decrease in net income
Net income of the company for Q1-2021 is $1.4 million. There has been a decrease of 9.6% for Q1-2021. In the corresponding period in Q1-2020, net income came in at $1,507,000. The company also reported strong asset quality. The loan current is 99.84%.
STBI is Sturgis Bank & Trust company’s holding firm. During the first quarter, the bank maintained a good and strong capital ratio, which exceeded the company’s well capitalization requirement. The leverage capital for Tier-1 came in at 8.59%. Additionally, the company generated $51.6 million sales of residential mortgage, which generated noninterest income of $1.1 million in 2021. This compares with $776,000 on sale of $32.3 million residential mortgage in the previous year.
Reflecting on company’s financial health of the first quarter
The total assets of the company jumped to $709.0 million, indicating a 10.2% increase. There has been a 6.7% increase in net loans, and the total amount came in at $475.1 million. This also includes an $18.3 million jump in residential mortgages.
Meanwhile, the company reported that termination of interest rate swap during Q1-2021 led to a gain of $407,000. There has been a 10.6% increase in total profits, which came in at $561.9 million. Meanwhile, the company reported $561.9 million of the loan amount allowance for loan losses.
Despite COVID’s impact, the bank reported a sturdy first quarter. The company also mentioned that most consumer and residential loans that were accommodated due to the pandemic have paid off the debt. The bank now appears in strong standing.