Profile: Emclaire Financial Corp (EMCF.O)
26 May 2017
Emclaire Financial Corp, incorporated on June 28, 1989, is a financial holding company. The Company provides a range of retail and commercial financial products and services to customers in western Pennsylvania through its subsidiary bank, The Farmers National Bank of Emlenton (the Bank). The Bank's primary business consists of attracting deposits from the public and investing the 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 approximately 10 retail branch offices in Venango, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson and Mercer counties, Pennsylvania. The Company's other subsidiary, Emclaire Settlement Services, LLC, provides real estate settlement services to the Bank and other customers.
The Company's portfolio segments include residential mortgages loans; home equity loans and lines of credit; commercial real estate loans; commercial business loans, and consumer loans. Residential mortgage loans are loans to consumers utilized for the purchase, refinance or construction of a residence. Home equity loans and lines of credit are credit facilities extended to homeowners wishing to utilize the equity in their property in order to borrow funds for almost any consumer purpose. Commercial credit is extended to business customers for use in normal operations to finance working capital needs, equipment purchases or other projects. These loans are generally underwritten individually and secured with the assets of the Company and the personal guarantee of the business owners.
Commercial loans are made based on the historical and projected cash flow of the borrower and the underlying collateral provided by the borrower. Consumer loans are loans to an individual for non-business purposes, such as automobile purchases or debt consolidation. These loans are originated based on credit scores and debt-to-income ratios. The Company offers first mortgage loans secured by one- to four-family residences located in the Company's primary lending area. Commercial real estate loans generally 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. The Company also offers unsecured revolving personal lines of credit and overdraft protection. The Company's net total loans amount to approximately $429.9 million.
The Company's investment portfolio includes its available-for-sale securities. The Company's securities available-for-sale include the United States Treasury and Federal agency; the United States Government sponsored entities and agencies; the United States agency mortgage-backed securities: residential; the United States agency collateralized mortgage obligations: residential; state and political subdivision; corporate debt securities, and equity securities. The Company's available-for-sale securities have a total fair value of approximately $112.98 million.
Sources of Funds
Deposits are the primary sources of the Company's funds for lending and investing activities. Secondary sources of funds are derived from loan repayments, investment maturities and borrowed funds. It also has access to funds through other various sources. The Company offers a range of deposit account products to both consumer and commercial deposit customers, including time deposits, noninterest bearing and interest bearing demand deposit accounts, savings deposits and money market accounts. The Company's total deposits amount to approximately $489.88 million. Borrowings may be 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 Company with other correspondent banks.
Emclaire Financial Corp
612 Main St
EMLENTON PA 16373-9207