Profile: Emclaire Financial Corp (EMCF.O)
13 Mar 2014
Emclaire Financial Corp. is a financial holding company that provides a range of retail and commercial financial products and services to customers in western Pennsylvania through its wholly owned subsidiary bank, The Farmers National Bank of Emlenton (the Bank). The Company also provides real estate settlement services through its subsidiary, Emclaire Settlement Services, LLC (the Title Company). In addition, the Bank provides investment advisory services through its Farmers National Financial Services division. The Bank’s principal business consists of attracting deposits from the general public and investing such funds in real estate loans secured by liens on residential and commercial property, consumer loans, commercial business loans, marketable securities and interest-earning deposits. The Bank operates through a network of 13 retail branch offices in Venango, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson and Mercer counties, Pennsylvania.
The lending activities of the Bank are the origination of residential mortgage, commercial mortgage, commercial business and consumer loans. All of the Bank’s loans are originated in and secured by property within the Bank’s primary market area. The Bank offers first mortgage loans secured by one-to-four family residences located in the Bank’s primary lending area. The Bank is an approved, qualified lender for the Federal Home Loan Mortgage Corporation (FHLMC). The Bank originates home equity loans secured by single-family residences. These loans may be either a single advance fixed-rate loan with a term of up to 20 years, or a variable rate revolving line of credit. These loans are made only on owner-occupied single-family residences.
Commercial business and commercial real estate loans amounted to 43.9% of the total loan portfolio as of December 31, 2011. Commercial real estate loans consist of loans granted for commercial purposes secured by commercial or other nonresidential real estate. Commercial loans consist of secured and unsecured loans for such items as capital assets, inventory, operations and other commercial purposes. Consumer loans consist of fixed-rate term loans for automobile purchases, home improvements not secured by real estate, capital and other personal expenditures. The Bank also offers unsecured revolving personal lines of credit and overdraft protection.
The Company maintains an investment portfolio of securities, such as United States government agencies, mortgage-backed securities, municipal and equity securities. As of December 31, 2011, the Company’s total investment was $ 123,154,000.
Sources of Funds
Deposits are the primary source of the Bank’s funds for lending and investing activities. Secondary sources of funds are derived from loan repayments, investment maturities and borrowed funds. The Bank offers a variety of retail deposit account products to both consumer and commercial deposit customers, including time deposits, non-interest bearing and interest bearing demand deposit accounts, savings deposits and money market accounts. Borrowings are used to compensate for reductions in deposit inflows or net deposit outflows, or to support lending and investment activities. These borrowings include Federal Home Loan Bank (FHLB) advances, federal funds, repurchase agreements, advances from the Federal Reserve Discount Window and lines of credit at the Bank and the Corporation with other correspondent banks.
The Company has two wholly owned subsidiaries, the Bank and the Title Company. As of December 31, 2011, the Bank and the Title Company had no subsidiaries.
Emclaire Financial Corp
612 Main Street, Venango
P.O. Box D
EMLENTON PA 16373