Middlebury’s First State Bank parent reports strong second-quarter income
MIDDLEBURY — Crystal Valley Financial Corp. saw a big jump in net income in the second quarter of 2013 compared to the same quarter in 2012, largely due to the reduction of reserve funds set aside in case borrowers don’t re-pay loans.
The parent company of First State Bank had net income of $1.123 million in the second quarter, up 51.4 percent over the same quarter last year.
Jim Hiatt, president and chief executive, said, “With the improving local economy the corporation has seen significant improvement in loan quality. The corporation has reduced the reserves for possible loan loss from $1,100,000 for the first six months of 2012 to a negative provision of $325,000 this year. This reduction has had a positive impact on year-to-date income,” he said in the company’s earnings announcement.
Total assets were at $397 million at the end of the quarter, up 4.5 percent over the same time in 2012. The board approved a dividend of 10 cents per share, compared to a dividend at the same time in 2012 of 7 cents per share.
Book value per share increased by 2.8 percent to $25.38.