Perpetual Federal Savings Bank of Urbana, Ohio (OTCBB: “PFOH”) reported fiscal first quarter net income of $1.2 million, or basic and diluted earnings per share of 48 cents, for the quarter ended Dec. 31, 2015, compared to net income of $1.2 million, or basic and diluted earnings per share of 49 cents, for the quarter ended Dec. 31, 2014.

Net interest income decreased for the three months ended Dec. 31, 2015, as compared to the prior comparable period. An increased volume of deposits resulted in increased interest expense during the three month period ended Dec. 31, 2015, as compared to the same period in 2014. Increased loan volume and increased market interest rates resulted in increased interest income for the three months ended Dec. 31, 2015.

The Savings Bank recorded a provision for loan losses of $50,000 for the three months ended Dec. 31, 2015, compared to $97,000 for the three months ended Dec. 31, 2014. These entries were recorded as a result of management’s analysis of the loan portfolio and charge-off activity during the three month periods and reflect as of such time the amounts management believes necessary to maintain the adequacy of the allowance for loan losses. Net interest income after provision for loan losses increased $33,000 to a net interest income after provision for loan losses of $2.7 million for the three months ended Dec. 31, 2015, compared to the three months ended December 31, 2014.

Operating expenses increased $49,000 from $852,000 to $901,000 for the three months ended Dec. 31, 2015. The increase for the three month period was primarily due to increased salary and benefits expense. Noninterest income increased from $6,000 to $15,000 for the three months ended Dec. 31, 2015, compared to the prior comparable period. Income tax expense decreased by $5,000 for the three months ended December 31, 2015, compared to the prior comparable period, principally due to changes in taxable income.

Total assets increased $10.1 million, or 2.9 percent, to $362.8 million at Dec. 31, 2015, from $352.7 million at Sept. 30, 2015. Total shareholders’ equity increased $703,000, or 1.1 percent, from $64.3 million at Sept. 30, 2015, to $65.0 million at Dec. 31, 2015, due to net income less dividends paid. The Savings Bank’s ratio of allowance for loan losses to total assets decreased to 1.2 percent on Dec. 31, 2015 compared to 1.5 percent on Sept.30, 2015. The Savings Bank’s capital ratios remain in excess of those required to be considered well-capitalized under U.S. banking regulations.