Performance Highlights for the Three Months Ended
- The Company reported a 32.0% increase in interest and dividend income to
$17.7 million for the three month period endedSeptember 30, 2023 . This represents an increase from the$13.4 million reported for the same three month period in 2022. - Total interest expense for the three months ended
September 30, 2023 , increased to$7.6 million from the$2.6 million reported in the third quarter of 2022. - The Company's net interest income after provision for credit losses was
$9.2 million for the three month period endedSeptember 30, 2023 . This level of net income represents a decrease of 8.4% from the$10.1 million reported for the third quarter of 2022. - Noninterest income demonstrated modest growth, with the Company reporting
$1.2 million for the third quarter of 2023, an increase of 2.8% from$1.2 million reported in the corresponding prior year period. - For the three months ended
September 30, 2023 , noninterest expenses were$7.7 million . This is a 5.3% increase when compared to the$7.3 million reported in the third quarter of 2022.
Performance Highlights for the Nine Months Ended
- The Company reported substantial growth in its cumulative interest and dividend income, growing to
$49.3 million for the nine month period endedSeptember 30, 2023 . This was a 36.8% increase from the$36.1 million reported during the corresponding nine month period endedSeptember 30, 2022 . - The Company's total interest expense for the nine months concluded
September 30, 2023 , was$19.6 million . This was an increase from the$5.9 million reported during the nine month period endedSeptember 30, 2022 . - Net interest income, after the provision for credit losses, for the nine month period ended
September 30, 2023 , was recorded at$27.1 million . This represents a marginal decline of 7.7% from the$29.4 million reported for the comparable nine month period endedSeptember 30, 2022 . - The Company's noninterest income for the nine month period ended
September 30, 2023 , was$3.9 million , reflecting a slight decrease of 4.6% from the$4.1 million reported during the first nine months of 2022. - Noninterest expenses for the nine months ended
September 30, 2023 , were$22.4 million , an increase of 3.2% from the$21.7 million reported during the first nine months of 2022.
"This quarter, much like what has been observed across the entirety of the banking sector, we encountered several challenges including a volatile interest rate environment, net interest margin compression, and an increase in personnel expenses. Despite these challenging economic conditions, we still performed well, earning
“Despite recent market fluctuations affecting Pathfinder and the vast majority of our peer institutions, as well as the broader regional and community banking sector, our core operating philosophies remain consistent. Our confidence continues to be bolstered by an encouraging increase in our interest and dividend income, thanks to the robust performance of our interest-generating asset portfolios. We remain strategically poised to meet the evolving needs of our customers in an expanding and rapidly changing local and regional market, both now and in the future."
Discussing the Company’s operational metrics, he noted, “The provision for credit losses increased to
“At present, these two significant credit relationships are being managed under rigorous 'workout' processes and are being overseen by our seasoned lending team and their advisors. Our strategy involves active dialogue with the borrowers, crafting tailored repayment plans, adding additional sources of collateral when available and methodical advancement towards loan collateral liquidation should that become necessary."
"In the third quarter of 2023, we reported a return on average assets ('ROAA') of 0.63% and a return on average equity ('ROAE') of 7.5%. These results represent declines from the previous year's third quarter when the ROAA and ROAE stood at 0.93% and 11.49%, respectively. Despite this, we are pleased by our sequential quarterly profitability growth, demonstrating our resilience and the effectiveness of our adaptive strategies," Dowd added.
"Given the prevailing economic uncertainties which could lead to subdued loan demand, we are projecting a conservative annual loan growth rate of around 4% for the next 12 to 24 months. Concurrently, we are handling an escalation in our interest expenses with deep analysis and proactive engagement with customers to counteract the potential long-term effects of a prolonged elevated interest rate environment. Our focused approach to deposit growth, as a means to boost liquidity, acknowledges a potential moderation in loan growth as a strategic move to reinforce our long-term financial health."
"Our focused cost management strategies are effectively offsetting the challenges of rising labor costs and the initial financial implications from our recently opened downtown
"Looking ahead, the anticipated economic resurgence in
Income Statement for the Three and Nine Months Ended
For the quarter ended
For the nine months ended
Overall, before accounting for income taxes, net income for the first nine months of 2023 was
Components of Net Interest Income
In the third quarter of 2023, the Company's net interest income, before provision for credit losses, faced significant challenges, primarily related to the cost of interest-bearing liabilities, resulting in reported net interest income of
During the quarter ended
Provision for Credit Losses
In the third quarter of 2023, the Company faced a complex economic landscape, including those arising from global economic shifts and industry-specific challenges. These factors required the Company to heighten its vigilance with respect to risk management. For the third quarter of 2023, the Company recorded a provision for credit losses of
Effective
Noninterest Income
In the third quarter of 2023, the Company reported noninterest income of
This variation in noninterest income can be primarily attributed to factors influencing recurring noninterest income, which excludes volatile items such as unrealized gains or losses on equity securities and nonrecurring gains on sales of loans, investment securities, foreclosed real estate, premises, and equipment. Recurring noninterest income was
The following table details the components of noninterest income for the three and nine months ended
Unaudited | For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
(In thousands) | Change | Change | ||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 343 | $ | 334 | $ | 9 | 2.7 | % | $ | 913 | $ | 876 | $ | 37 | 4.2 | % | ||||||||||||||
Earnings and gain on bank owned life insurance | 165 | 156 | 9 | 5.8 | % | 466 | 441 | 25 | 5.7 | % | ||||||||||||||||||||
Loan servicing fees | 99 | 74 | 25 | 33.8 | % | 238 | 260 | (22 | ) | -8.5 | % | |||||||||||||||||||
Debit card interchange fees | 22 | 180 | (158 | ) | -87.8 | % | 455 | 639 | (184 | ) | -28.8 | % | ||||||||||||||||||
Insurance agency revenue | 310 | 258 | 52 | 20.2 | % | 1,001 | 849 | 152 | 17.9 | % | ||||||||||||||||||||
Other charges, commissions and fees | 265 | 310 | (45 | ) | -14.5 | % | 764 | 1,002 | (238 | ) | -23.8 | % | ||||||||||||||||||
Noninterest income before gains | 1,204 | 1,312 | (108 | ) | -8.2 | % | 3,837 | 4,067 | (230 | ) | -5.7 | % | ||||||||||||||||||
Net gains (losses) on sales of securities, loans and foreclosed real estate | 28 | (151 | ) | 179 | -118.5 | % | 243 | (46 | ) | 289 | -628.3 | % | ||||||||||||||||||
(Losses) gains on marketable equity securities | (39 | ) | - | (39 | ) | 0.0 | % | (208 | ) | 39 | (247 | ) | -633.3 | % | ||||||||||||||||
Total noninterest income | $ | 1,193 | $ | 1,161 | $ | 32 | 2.8 | % | $ | 3,872 | $ | 4,060 | $ | (188 | ) | -4.6 | % |
Compared to the same three and nine month periods in 2022, debit card interchange income declined
The decline in debit card income was due in part to the recognition of increased customer card rewards program redemption rates among the Bank’s active debit card users. During the third quarter of 2023, the Bank recognized a
Noninterest Expense
In the third quarter of 2023, the Company reported noninterest expenses totaling
The primary driver of this year-over-year quarterly increase in noninterest expenses was an increase of
In the nine months ended
The moderate increase in noninterest expenses in the first nine months of 2023, when contrasted with the corresponding period in 2022, underscores the Company's robust expense management strategies. These practices have proven effective, even in the face of a fluctuating economic landscape marked by inflationary pressures, particularly within the labor market. Our unwavering commitment to striking a balance between competitive employee compensation and prudent expense management has enabled us to navigate the challenges of rising labor costs. Our strategic financial approach prioritizes both sustained profitability and investment in our workforce, thereby enhancing customer service and strengthening our position in the market.
The following table details the components of noninterest expense for the three and nine months ended
Unaudited | For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
(In thousands) | Change | Change | ||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 4,154 | $ | 4,196 | $ | (42 | ) | -1.0 | % | $ | 12,243 | $ | 12,030 | $ | 213 | 1.8 | % | |||||||||||||
Building and occupancy | 868 | 835 | 33 | 4.0 | % | 2,699 | 2,491 | 208 | 8.4 | % | ||||||||||||||||||||
Data processing | 483 | 485 | (2 | ) | -0.4 | % | 1,519 | 1,552 | (33 | ) | -2.1 | % | ||||||||||||||||||
Professional and other services | 492 | 267 | 225 | 84.3 | % | 1,531 | 1,112 | 419 | 37.7 | % | ||||||||||||||||||||
Advertising | 144 | 199 | (55 | ) | -27.6 | % | 516 | 621 | (105 | ) | -16.9 | % | ||||||||||||||||||
222 | 162 | 60 | 37.0 | % | 663 | 606 | 57 | 9.4 | % | |||||||||||||||||||||
Audits and exams | 159 | 141 | 18 | 12.8 | % | 476 | 424 | 52 | 12.3 | % | ||||||||||||||||||||
Insurance agency expense | 273 | 229 | 44 | 19.2 | % | 817 | 687 | 130 | 18.9 | % | ||||||||||||||||||||
Community service activities | 55 | 58 | (3 | ) | -5.2 | % | 151 | 193 | (42 | ) | -21.8 | % | ||||||||||||||||||
Foreclosed real estate expenses | 44 | 17 | 27 | 158.8 | % | 76 | 57 | 19 | 33.3 | % | ||||||||||||||||||||
Other expenses | 759 | 678 | 81 | 11.9 | % | 1,660 | 1,892 | (232 | ) | -12.3 | % | |||||||||||||||||||
Total noninterest expenses | $ | 7,653 | $ | 7,267 | $ | 386 | 5.3 | % | $ | 22,351 | $ | 21,665 | $ | 686 | 3.2 | % |
There were also noteworthy changes in building and occupancy costs for the three and nine month periods ended
Statement of Financial Condition at
On
Earlier in the year, the Bank prioritized enhancing balance sheet liquidity. Outstanding loan balances declined by
The third quarter was marked by an increase in deposits for the Bank of
The Company's equity increased
Asset Quality
The following table details all nonaccrual loans relationships at
(In thousands) | ||||||||||||||||||
Loan Type | Collateral Type | Number of Loans | Loan Balance | Average Loan Balance | Weighted LTV at Origination/ Modification | Status | ||||||||||||
Secured residential mortgage: | ||||||||||||||||||
Real Estate | 18 | $ | 1,659 | $ | 92 | 75 | % | Individual loans are under active resolution management by the Bank. | ||||||||||
Secured commercial real estate: | ||||||||||||||||||
1 | 1,380 | 1,380 | 79 | % | The borrower is expected to receive specific government grant funding this year and be finalized by the end of 2023. This will allow for a reduction of the outstanding loan balance upon their finalization. | |||||||||||||
Office Space | 1 | 1,682 | 1,682 | 78 | % | The loan is secured by a first mortgage with strong tenancy and a long-term lease. The borrower is seeking outside financing and the Bank is in regular communication with the borrower. | ||||||||||||
Manufacturing | 1 | 1,341 | 1,341 | 54 | % | The loan is secured by a first mortgage with strong tenancy and a long-term lease. The borrower is seeking outside financing and the Bank is in regular communication with the borrower. | ||||||||||||
All other | 8 | 2,000 | 250 | 138 | % | Individual loans are under active resolution management by the Bank. | ||||||||||||
Commercial lines of credit: | 9 | 1,530 | 170 | (1 | ) | Individual lines are under active resolution management by the Bank. | ||||||||||||
Commercial and industrial loans: | 10 | 3,710 | 371 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
Consumer loans: | 85 | 2,871 | 34 | (1 | ) | Individual loans are under active resolution management by the Bank. | ||||||||||||
133 | $ | 16,173 |
(1) These loans were originated as unsecured or with minimal collateral.
The adjustments in the Bank's allowance for credit losses, recorded in the third quarter of 2023, reflect the institution's proactive and conservative approach to addressing potential credit risks. Management notes that all relevant and current data regarding loan collectability has been appropriately reflected in the allowance for credit losses as of
Nonperforming loans represented 1.8% of the total loans as of
The Bank's management retains a proactive approach to analyzing and recording potential future loan losses and remains vigilant in overseeing all credit relationships, guaranteeing that Company continuously integrates ongoing evaluations of loan recoverability into the allowance for credit losses. Actions taken during the most recent quarter underscore the Bank's enhanced preparedness for potential credit losses.
Moving forward, the leadership of
Liquidity
Balance sheet liquidity remains a cornerstone for
The Bank's analysis indicates that expected cash inflows from loans and investment securities are sufficiently robust to meet all projected financial obligations. In the third quarter of 2023, the Bank's non-brokered deposit balances increased modestly to
Additionally, the Bank is qualified to access the
Cash Dividend Declared
On
With the Company's common stock closing price on
About
Forward-Looking Statement
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the
This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in
FINANCIAL HIGHLIGHTS (Dollars and shares in thousands except per share amounts) | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended | ended | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Condensed Income Statement | |||||||||||||||
Interest and dividend income | $ | 17,671 | $ | 13,383 | $ | 49,335 | $ | 36,071 | |||||||
Interest expense | 7,611 | 2,603 | 19,575 | 5,847 | |||||||||||
Net interest income | 10,060 | 10,780 | 29,760 | 30,224 | |||||||||||
Provision for credit losses | 833 | 710 | 2,665 | 871 | |||||||||||
9,227 | 10,070 | 27,095 | 29,353 | ||||||||||||
Noninterest income excluding net gains on sales of securities, loans and foreclosed real estate | 1,204 | 1,312 | 3,837 | 4,067 | |||||||||||
Net gains (losses) on sales of securities, loans and foreclosed real estate | 28 | (151 | ) | 243 | (46 | ) | |||||||||
(Losses) gains on marketable equity securities | (39 | ) | - | (208 | ) | 39 | |||||||||
Noninterest expense | 7,653 | 7,267 | 22,351 | 21,665 | |||||||||||
Income before income taxes | 2,767 | 3,964 | 8,616 | 11,748 | |||||||||||
Provision for income taxes | 573 | 772 | 1,772 | 2,273 | |||||||||||
Net income attributable to noncontrolling interest and | $ | 2,194 | $ | 3,192 | $ | 6,844 | $ | 9,475 | |||||||
Net income attributable to noncontrolling interest | 18 | 12 | 87 | 73 | |||||||||||
Net income attributable to | $ | 2,176 | $ | 3,180 | $ | 6,757 | $ | 9,402 |
As of and For the Periods Ended | |||||||||||
2023 | 2022 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Selected Balance Sheet Data | |||||||||||
Assets | $ | 1,400,649 | $ | 1,399,921 | $ | 1,396,946 | |||||
Earning assets | 1,309,049 | 1,313,069 | 1,307,430 | ||||||||
Total loans | 896,123 | 897,754 | 886,206 | ||||||||
Deposits | 1,127,853 | 1,125,430 | 1,180,583 | ||||||||
Borrowed funds | 110,613 | 115,997 | 65,621 | ||||||||
Allowance for credit losses | 15,767 | 15,319 | 13,632 | ||||||||
Subordinated debt | 29,867 | 29,733 | 29,689 | ||||||||
113,770 | 110,997 | 107,301 | |||||||||
Asset Quality Ratios | |||||||||||
Net loan charge-offs (annualized YTD) to average loans | 0.61 | % | 0.04 | % | 0.03 | % | |||||
Allowance for credit losses to period end loans | 1.76 | % | 1.71 | % | 1.54 | % | |||||
Allowance for credit losses to nonperforming loans | 97.49 | % | 169.93 | % | 128.30 | % | |||||
Nonperforming loans to period end loans | 1.80 | % | 1.00 | % | 1.20 | % | |||||
Nonperforming assets to total assets | 1.17 | % | 0.66 | % | 0.78 | % | |||||
The above information is preliminary and based on the Company's data available at the time of presentation.
FINANCIAL HIGHLIGHTS (Dollars and shares in thousands except per share amounts) | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended | ended | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Key Earnings Ratios | |||||||||||||||
Return on average assets | 0.63 | % | 0.93 | % | 0.65 | % | 0.94 | % | |||||||
Return on average common equity | 7.50 | % | 11.49 | % | 7.88 | % | 11.39 | % | |||||||
Return on average equity | 7.50 | % | 11.49 | % | 7.88 | % | 11.39 | % | |||||||
Net interest margin | 3.07 | % | 3.32 | % | 3.02 | % | 3.18 | % | |||||||
Share, Per Share and Ratio Data | |||||||||||||||
Basic and diluted weighted average shares outstanding -Voting | 4,671 | 4,564 | 4,640 | 4,550 | |||||||||||
Basic and diluted earnings per share - Voting | $ | 0.35 | $ | 0.52 | $ | 1.10 | $ | 1.55 | |||||||
Basic and diluted weighted average shares outstanding - Series A Non-Voting | 1,380 | 1,380 | 1,380 | 1,380 | |||||||||||
Basic and diluted earnings per share - Series A Non-Voting | $ | 0.35 | $ | 0.52 | $ | 1.10 | $ | 1.55 | |||||||
Cash dividends per share | $ | 0.09 | $ | 0.09 | $ | 0.27 | $ | 0.27 | |||||||
Book value per common share at | $ | 18.67 | $ | 17.88 | |||||||||||
Tangible book value per common share at | $ | 17.91 | $ | 17.11 | |||||||||||
Tangible common equity to tangible assets at | 7.82 | % | 7.37 | % | |||||||||||
Tangible common equity to tangible assets at | 7.82 | % | 7.38 | % | |||||||||||
Throughout the accompanying document, certain financial metrics and ratios are presented that are not defined under generally accepted accounting principles (GAAP). Reconciliations of the non-GAAP financial metrics and ratios, presented elsewhere within this document, are presented below:
As of and | |||||||
For the nine months | |||||||
ended | |||||||
(Unaudited) | |||||||
Non-GAAP Reconciliation | 2023 | 2022 | |||||
Tangible book value per common share | |||||||
Total equity | $ | 113,770 | $ | 107,301 | |||
Intangible assets | (4,624 | ) | (4,640 | ) | |||
Tangible common equity | 109,146 | 102,661 | |||||
Common shares outstanding | 6,094 | 6,001 | |||||
Tangible book value per common share | $ | 17.91 | $ | 17.11 | |||
Tangible common equity to tangible assets | |||||||
Tangible common equity | $ | 109,146 | $ | 102,661 | |||
Tangible assets | 1,396,025 | 1,392,306 | |||||
Tangible common equity to tangible assets ratio | 7.82 | % | 7.37 | % | |||
Tangible common equity to tangible assets, adjusted | |||||||
Tangible common equity | $ | 109,146 | $ | 102,661 | |||
Tangible assets | 1,396,025 | 1,392,306 | |||||
Less: Paycheck Protection Program (PPP) loans | - | (693 | ) | ||||
Total assets excluding PPP loans | $ | 1,396,025 | $ | 1,391,613 | |||
Tangible common equity to tangible assets ratio, excluding PPP loans | 7.82 | % | 7.38 | % | |||
* Basic and diluted earnings per share are calculated based upon the two-class method for the nine months ended
Weighted average shares outstanding do not include unallocated ESOP shares.
The above information is preliminary and based on the Company's data available at the time of presentation.
FINANCIAL HIGHLIGHTS
(Dollars and shares in thousands except per share amounts)
The following table sets forth information concerning average interest-earning assets and interest-bearing liabilities and the yields and rates thereon. Interest income and resultant yield information in the table has not been adjusted for tax equivalency. Averages are computed on the daily average balance for each month in the period divided by the number of days in the period. Yields and amounts earned include loan fees. Nonaccrual loans have been included in interest-earning assets for purposes of these calculations.
For the three months ended | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
2023 | 2022 | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Average | Yield / | Average | Yield / | ||||||||||||||||
(Dollars in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans | $ | 895,900 | $ | 12,470 | 5.57 | % | $ | 880,097 | $ | 9,895 | 4.50 | % | |||||||
Taxable investment securities | 376,455 | 4,628 | 4.92 | % | 363,877 | 3,108 | 3.42 | % | |||||||||||
Tax-exempt investment securities | 27,831 | 507 | 7.29 | % | 42,855 | 351 | 3.28 | % | |||||||||||
Fed funds sold and interest-earning deposits | 11,395 | 66 | 2.32 | % | 10,383 | 29 | 1.12 | % | |||||||||||
Total interest-earning assets | 1,311,581 | 17,671 | 5.39 | % | 1,297,212 | 13,383 | 4.13 | % | |||||||||||
Noninterest-earning assets: | |||||||||||||||||||
Other assets | 102,738 | 90,482 | |||||||||||||||||
Allowance for credit losses | (19,028 | ) | (13,050 | ) | |||||||||||||||
Net unrealized losses on available-for-sale securities | (13,275 | ) | (10,983 | ) | |||||||||||||||
Total assets | $ | 1,382,016 | $ | 1,363,661 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW accounts | $ | 90,992 | $ | 124 | 0.55 | % | $ | 101,907 | $ | 85 | 0.33 | % | |||||||
Money management accounts | 14,503 | 4 | 0.11 | % | 16,097 | 4 | 0.10 | % | |||||||||||
MMDA accounts | 218,601 | 1,642 | 3.00 | % | 244,884 | 427 | 0.70 | % | |||||||||||
Savings and club accounts | 121,710 | 68 | 0.22 | % | 140,425 | 52 | 0.15 | % | |||||||||||
Time deposits | 493,907 | 4,385 | 3.55 | % | 440,227 | 1,339 | 1.22 | % | |||||||||||
Subordinated loans | 29,837 | 492 | 6.60 | % | 29,655 | 442 | 5.96 | % | |||||||||||
Borrowings | 110,780 | 896 | 3.24 | % | 78,232 | 254 | 1.30 | % | |||||||||||
Total interest-bearing liabilities | 1,080,330 | 7,611 | 2.82 | % | 1,051,427 | 2,603 | 0.99 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||
Demand deposits | 169,825 | 189,317 | |||||||||||||||||
Other liabilities | 15,768 | 12,248 | |||||||||||||||||
Total liabilities | 1,265,923 | 1,252,992 | |||||||||||||||||
Shareholders' equity | 116,093 | 110,669 | |||||||||||||||||
Total liabilities & shareholders' equity | $ | 1,382,016 | $ | 1,363,661 | |||||||||||||||
Net interest income | $ | 10,060 | $ | 10,780 | |||||||||||||||
Net interest rate spread | 2.57 | % | 3.14 | % | |||||||||||||||
Net interest margin | 3.07 | % | 3.32 | % | |||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 121.41 | % | 123.38 | % | |||||||||||||||
The above information is preliminary and based on the Company's data available at the time of presentation.
FINANCIAL HIGHLIGHTS (Dollars and shares in thousands except per share amounts) | |||||||||||||||||||
For the nine months ended | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
2023 | 2022 | ||||||||||||||||||
Average | Average | ||||||||||||||||||
Average | Yield / | Average | Yield / | ||||||||||||||||
(Dollars in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans | $ | 900,917 | $ | 34,919 | 5.17 | % | $ | 863,191 | $ | 27,561 | 4.26 | % | |||||||
Taxable investment securities | 371,615 | 12,749 | 4.57 | % | 348,499 | 7,850 | 3.00 | % | |||||||||||
Tax-exempt investment securities | 31,077 | 1,441 | 6.18 | % | 37,593 | 612 | 2.17 | % | |||||||||||
Fed funds sold and interest-earning deposits | 11,750 | 226 | 2.56 | % | 19,950 | 48 | 0.32 | % | |||||||||||
Total interest-earning assets | 1,315,359 | 49,335 | 5.00 | % | 1,269,233 | 36,071 | 3.79 | % | |||||||||||
Noninterest-earning assets: | |||||||||||||||||||
Other assets | 99,431 | 85,652 | |||||||||||||||||
Allowance for credit losses | (18,043 | ) | (13,040 | ) | |||||||||||||||
Net unrealized losses on available-for-sale securities | (12,919 | ) | (7,230 | ) | |||||||||||||||
Total assets | $ | 1,383,828 | $ | 1,334,615 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW accounts | $ | 94,116 | $ | 315 | 0.45 | % | $ | 104,874 | $ | 234 | 0.30 | % | |||||||
Money management accounts | 14,651 | 12 | 0.11 | % | 16,212 | 12 | 0.10 | % | |||||||||||
MMDA accounts | 241,550 | 4,539 | 2.51 | % | 255,933 | 985 | 0.51 | % | |||||||||||
Savings and club accounts | 127,490 | 199 | 0.21 | % | 139,798 | 150 | 0.14 | % | |||||||||||
Time deposits | 472,614 | 10,820 | 3.05 | % | 401,297 | 2,625 | 0.87 | % | |||||||||||
Subordinated loans | 29,793 | 1,447 | 6.48 | % | 29,617 | 1,284 | 5.78 | % | |||||||||||
Borrowings | 99,029 | 2,243 | 3.02 | % | 70,833 | 557 | 1.05 | % | |||||||||||
Total interest-bearing liabilities | 1,079,243 | 19,575 | 2.42 | % | 1,018,564 | 5,847 | 0.77 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||
Demand deposits | 174,143 | 194,220 | |||||||||||||||||
Other liabilities | 16,100 | 11,808 | |||||||||||||||||
Total liabilities | 1,269,486 | 1,224,592 | |||||||||||||||||
Shareholders' equity | 114,342 | 110,023 | |||||||||||||||||
Total liabilities & shareholders' equity | $ | 1,383,828 | $ | 1,334,615 | |||||||||||||||
Net interest income | $ | 29,760 | $ | 30,224 | |||||||||||||||
Net interest rate spread | 2.58 | % | 3.02 | % | |||||||||||||||
Net interest margin | 3.02 | % | 3.18 | % | |||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 121.88 | % | 124.61 | % | |||||||||||||||
The above information is preliminary and based on the Company's data available at the time of presentation.
FINANCIAL HIGHLIGHTS
(Dollars and shares in thousands except per share amounts)
Net interest income can also be analyzed in terms of the impact of changing interest rates on interest-earning assets and interest bearing liabilities, and changes in the volume or amount of these assets and liabilities. The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the Company’s interest income and interest expense during the years indicated. Information is provided in each category with respect to: (i) changes attributable to changes in volume (change in volume multiplied by prior rate); (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume); and (iii) total increase or decrease. Changes attributable to both rate and volume have been allocated ratably. Tax-exempt securities have not been adjusted for tax equivalency.
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||
2023 vs. 2022 | 2023 vs. 2022 | ||||||||||||||||||||||
Increase/(Decrease) due to | Increase/(Decrease) due to | ||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||
Increase | Increase | ||||||||||||||||||||||
(In thousands) | Volume | Rate | (Decrease) | Volume | Rate | (Decrease) | |||||||||||||||||
Interest Income: | |||||||||||||||||||||||
Loans | $ | 181 | $ | 2,394 | $ | 2,575 | $ | 1,248 | $ | 6,110 | $ | 7,358 | |||||||||||
Taxable investment securities | 111 | 1,409 | 1,520 | 551 | 4,348 | 4,899 | |||||||||||||||||
Tax-exempt investment securities | (731 | ) | 887 | 156 | (188 | ) | 1,017 | 829 | |||||||||||||||
Interest-earning deposits | 3 | 34 | 37 | (40 | ) | 218 | 178 | ||||||||||||||||
Total interest income | (436 | ) | 4,724 | 4,288 | 1,571 | 11,693 | 13,264 | ||||||||||||||||
Interest Expense: | |||||||||||||||||||||||
NOW accounts | (57 | ) | 96 | 39 | (39 | ) | 120 | 81 | |||||||||||||||
Money management accounts | (2 | ) | 2 | - | (2 | ) | 2 | - | |||||||||||||||
MMDA accounts | (317 | ) | 1,532 | 1,215 | (95 | ) | 3,649 | 3,554 | |||||||||||||||
Savings and club accounts | (41 | ) | 57 | 16 | (22 | ) | 71 | 49 | |||||||||||||||
Time deposits | 182 | 2,864 | 3,046 | 544 | 7,651 | 8,195 | |||||||||||||||||
Subordinated loans | 3 | 47 | 50 | 8 | 155 | 163 | |||||||||||||||||
Borrowings | 140 | 502 | 642 | 295 | 1,391 | 1,686 | |||||||||||||||||
Total interest expense | (92 | ) | 5,100 | 5,008 | 689 | 13,039 | 13,728 | ||||||||||||||||
Net change in net interest income | $ | (344 | ) | $ | (376 | ) | $ | (720 | ) | $ | 882 | $ | (1,346 | ) | $ | (464 | ) | ||||||
The above information is preliminary and based on the Company's data available at the time of presentation.
Investor/Media Contacts
Telephone: (315) 343-0057
Source:
2023 GlobeNewswire, Inc., source