Oneida Financial Corp. Reports 2009 Fourth Quarter and Full Year Operating Results (unaudited) (PR Newswire)
Oneida Financial Corp. , the parent company of The Oneida Savings Bank, has announced its operating results for the fourth quarter and full year ended December 31, 2009. Net income for the year ended December 31, 2009 is $4.1 million, or $0.52 diluted earnings per share, compared with a net loss of $1.7 million for the year ended December 31, 2008. The increase in net income is primarily the result of an increase in net interest income, an increase in non-interest income and an increase in the fair value of trading securities. These increases in income were partially offset by an increase in non-interest expense, an income tax provision as compared to an income tax benefit in 2008, an increase in net investment losses and an increase in the provision for loan losses during 2009 as compared with 2008. The 2008 full year operating results were negatively impacted by the significant decline in carrying value of Federal Home Loan Mortgage Corporation perpetual preferred stock following the announcement by the United States Treasury and the Federal Housing Finance Agency that the government sponsored enterprise was placed under conservatorship during September 2008. Net income for the three months ended December 31, 2009 is $1.2 million, or $0.16 diluted earnings per share, as compared to $1.7 million, or $0.22 diluted earnings per share, for the same period in 2008. The decrease in net income in the fourth quarter of 2009 is primarily due to an adjustment to the provision for income taxes in 2008 to reflect the United States Treasury’s decision to allow non-cash losses incurred by holders of Freddie Mac and Fannie Mae stock to be recognized during 2008 as ordinary losses to be taken against ordinary income rather than capital losses which may only offset capital gains. This resulted in a non-cash tax benefit in the fourth quarter of 2008 of $1.0 million.
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