Edgewater Bancorp’s increasing portfolio of commercial loans and residential mortgage activities have helped spark a 6.2-percent increase in net interest income in 2017, leading the St. Joseph-based institution to a solid year according to the organization’s annual earnings report released today. In fact, overall net income more than tripled from the prior year.
Edgewater President & CEO Rick Dyer says, “2017 was a solid year for Edgewater as it marked continued improvement in earnings, asset quality, and efficiencies.” He adds, “Loan and deposit growth allowed the organization to manage its balance sheet in an effective and profitable manner.”
The holding company for Edgewater Bank announced net income of $485,322 for 2017, or $0.77 per share, compared to net income of $150,040, or $0.24 per share a year earlier in 2016.
Dyer also commented on Edgewater’s community banking approach, saying, “We continue to focus on quality and responsive service to our clients, along with investing both time and monetary resources into numerous community organizations, projects, and events.”
Edgewater reports total assets at the end of 2017 were $156.4-million, up from $152.2-million at the same time in 2016. Total deposits increased to $137.6-million at the end of 2017, up more than $10-million from 2016’s year ending figure of $127.1-million.
Net interest income, spurred on primarily by growth in the commercial loan and residential mortgage portfolios, increased 6.2-percent to $4.8-million, up from $4.5-million in 2016.
Non-interest income was $922,402 in 2017, compared to $947,441 in 2016. Secondary market mortgage banking activities represent the largest component of non-interest income. Increased secondary market mortgage interest rates and the slowdown of refinance activity during 2017, plus an increased demand for portfolio-based adjustable rate mortgage loans, resulted in a volume shift from residential mortgage loans sold on the secondary market to residential mortgage loans retained in Edgewater’s loan portfolio. The swing reduced the amount received in “gain on mortgage sales,” but increased the amount of interest income. Although secondary market mortgage volume slowed during 2017, the unpaid principal balance of mortgage loans service for others increased $1.3-million to $80.8-million during 2017. Edgewater typically retains servicing rights on secondary market mortgage loans to best assist its clients.
The book value per share of Edgewater Bancorp common stock increased to $20.53 at December 31, 2017 from $20.20 at December 31, 2016.
Edgewater Bank provides commercial, mortgage, and consumer loan and deposit banking services from five banking offices in St. Joseph, Bridgman, Buchanan, Coloma, and Royalton Township.
