Key Quarterly Financial Data | 2023 Annual Highlights | ||||||||||
Profitability Metrics | 4Q23 | 3Q23 | 4Q22 | ||||||||
Return on average assets (%) | 0.05 | % | 0.09 | % | 0.60 | % | • Net Income of | ||||
Return on average common equity (%) | 0.73 | % | 1.17 | % | 7.71 | % | |||||
Return on tangible common equity (%) | 0.74 | % | 1.18 | % | 7.82 | % | |||||
Net interest margin (%) | 2.28 | % | 2.67 | % | 3.26 | % | • Average loans increased 15.1% year-over-year with average total deposits increasing by 5.9% within the same period. | ||||
Income Statement (a) | 4Q23 | 3Q23 | 4Q22 | ||||||||
Net interest income | $ | 3,454 | $ | 3,977 | $ | 4,404 | • Net interest margin of 2.67% narrowed from 3.34% year-over-year as increases to the rates paid on interest-bearing liabilities outpaced the rise in yields of interest-earning assets | ||||
Non-interest income | $ | 322 | $ | 256 | $ | 357 | |||||
Net income | $ | 84 | $ | 133 | $ | 843 | |||||
Earnings per share- Basic | $ | 0.01 | $ | 0.02 | $ | 0.13 | • Non-Performing Loans / Total Loans and the Company’s ratio of Non-Performing Assets / Total Assets each improved to 0.22% at December 31, 2023 | ||||
Earnings per share- Diluted | $ | 0.01 | $ | 0.02 | $ | 0.12 | |||||
Balance Sheet (a) | 4Q23 | 3Q23 | 4Q22 | ||||||||
Average total loans | $ | 569,515 | $ | 555,919 | $ | 494,728 | |||||
Average total deposits | $ | 470,394 | $ | 487,816 | $ | 43,988 | |||||
Book value per share | $ | 6.83 | $ | 6.79 | $ | 6.55 | |||||
Tangible book value per share | $ | 6.74 | $ | 6.71 | $ | 6.47 | |||||
(a) In thousands except for per share amounts | |||||||||||
“While our recent returns have been impacted by the current interest rate environment, we are dedicated to analyzing, adapting, and implementing strategies that will ensure a positive trajectory for our Company. We continue to be focused on providing increased value to shareholders in the future,” said
Selected Balance Sheet Information:
As of December 31, 2023, total assets were $639.0 million, an increase of $51.1 million, or 8.7%, as compared to total assets of $587.9 million on December 31, 2022. The increase can be attributed to loan portfolio growth primarily, funded by deposit inflows.
Loans receivable, net of Allowance for Credit Losses on Loans totaled
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were
Total liabilities increased
As of December 31, 2023, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.45%, 13.60%, 13.60% and 14.85%, respectively, all in excess of the ratios required to be deemed "well-capitalized." During 2023 the Company did not repurchase shares under its stock repurchase program. Book value per common share was
Financial Performance Overview:
Three Months Ended
For the three months ended December 31, 2023, net income totaled $84 thousand compared to $133 thousand for the three months ended
Net interest income for the three months ended December 30, 2023, decreased
There was a reversal of credit losses of
Non-interest income increased $66 thousand, to $322 thousand for the three months ended December 31, 2023, compared with non-interest income of $256 thousand for the three months ended September 30, 2023. The increase is a result from increased loan charges and fees earned quarter over quarter.
Non-interest expense totaled
Year ended
For the year ended December 31, 2023, net income totaled $1.5 million a decrease of $3.8 million in comparison to
Net interest income for the year ended
The Company recorded an
Non-interest income totaled $1.1 million for the year ended
Non-interest expense totaled
About
The Bank was organized under federal law in 2004 as a national bank regulated by the
We operate from our five Banking Center locations, a Loan Production Office and our Corporate Headquarters located in
Forward-Looking Statements
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate” or “continue” or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within
Investor Contact:
(845) 451-7825
Consolidated Statements of Financial Condition | ||||||||
(in thousands) | ||||||||
2023 | 2023 | 2022 | ||||||
|----(unaudited)----| | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 32,728 | 29,439 | 38,115 | ||||
Securities | 15,220 | 15,143 | 16,042 | |||||
Loans receivable, net: | ||||||||
Real estate mortgage loans | 551,124 | 543,852 | 493,768 | |||||
Commercial and Lines of Credit | 13,107 | 14,322 | 14,344 | |||||
Home Equity and Consumer Loans | 349 | 348 | 718 | |||||
Deferred costs | 4,427 | 4,362 | 3,762 | |||||
Allowance for Loan Credit Losses (a) | (5,086 | ) | (5,028 | ) | (5,860 | ) | ||
Total loans receivable, net | 563,921 | 557,856 | 506,732 | |||||
Investment in restricted stock, at cost | 5,191 | 5,782 | 4,779 | |||||
Bank premises and equipment, net | 5,600 | 5,608 | 6,209 | |||||
Accrued interest receivable | 2,625 | 2,533 | 2,020 | |||||
581 | 581 | 581 | ||||||
Repossessed assets | - | 164 | - | |||||
Bank Owned Life Insurance | 5,341 | 5,305 | 5,202 | |||||
Other Assets | 7,780 | 7,905 | 8,175 | |||||
Total Assets | $ | 638,987 | 630,316 | 587,855 | ||||
Liabilities & Stockholders' Equity | ||||||||
Non-Interest-Bearing Deposits | 109,065 | 125,562 | 129,641 | |||||
Interest-Bearing Deposits | 328,479 | 302,509 | 279,530 | |||||
Brokered Deposits | 56,581 | 42,873 | 40,627 | |||||
Total Deposits | 494,125 | 470,944 | 449,798 | |||||
Borrowed Money | 70,805 | 83,980 | 64,900 | |||||
Bond Issue, net of costs | 13,708 | 13,701 | 13,666 | |||||
Other Liabilities | 14,487 | 16,085 | 15,490 | |||||
Total Liabilities | 593,125 | 584,710 | 543,854 | |||||
Stockholders' equity | 45,862 | 45,606 | 44,001 | |||||
Total liabilities and stockholders' equity | $ | 638,987 | 630,316 | 587,855 | ||||
(a) The Company adopted ASC 326- Current Expected Credit Losses (CECL) effective | ||||||||
Consolidated Statements of Income | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||
|--------------(unaudited)--------------| | |---(unaudited)---| | ||||||||||||||||
Interest income | |||||||||||||||||
Loans | $ | 7,059 | $ | 6,715 | $ | 5,652 | $ | 26,343 | $ | 20,038 | |||||||
Securities | 110 | 111 | 137 | 446 | 563 | ||||||||||||
Other interest-earning assets | 278 | 319 | 228 | 1,418 | 613 | ||||||||||||
Total Interest Income | 7,447 | 7,145 | 6,017 | 28,207 | 21,214 | ||||||||||||
Interest expense | |||||||||||||||||
Deposits | 2,945 | 2,459 | 1,068 | 9,052 | 2,352 | ||||||||||||
Borrowings | 1,048 | 710 | 545 | 3,268 | 1,484 | ||||||||||||
Total Interest Expense | 3,993 | 3,169 | 1,613 | 12,320 | 3,836 | ||||||||||||
Net Interest Income | 3,454 | 3,977 | 4,404 | 15,887 | 17,378 | ||||||||||||
(Reversal of)Prov for Credit Losses | (83 | ) | 86 | 99 | 20 | (79 | ) | ||||||||||
Net Interest Income after (Revrsl)Prov for Credit Losses | 3,537 | 3,891 | 4,305 | 15,867 | 17,457 | ||||||||||||
Non-interest income | |||||||||||||||||
Service charges and fees | 254 | 205 | 237 | 762 | 793 | ||||||||||||
Gain on loan sales | 30 | 12 | - | 168 | 241 | ||||||||||||
Gain on sale of repossessed assets | - | - | - | - | 206 | ||||||||||||
Gain on sale of banking center | - | - | - | - | 1,782 | ||||||||||||
Other | 38 | 39 | 120 | 149 | 148 | ||||||||||||
Total non-interest income | 322 | 256 | 357 | 1,080 | 3,170 | ||||||||||||
Non-interest expenses | |||||||||||||||||
Compensation and benefits | 1,745 | 1,856 | 1,881 | 7,408 | 7,267 | ||||||||||||
Occupancy and equipment | 646 | 729 | 554 | 2,656 | 2,631 | ||||||||||||
Data processing service fees | 357 | 397 | 386 | 1,396 | 1,181 | ||||||||||||
Professional fees | 357 | 315 | 179 | 1,104 | 833 | ||||||||||||
88 | 71 | 56 | 272 | 225 | |||||||||||||
Advertising | 101 | 107 | 77 | 406 | 250 | ||||||||||||
Insurance | 51 | 54 | 53 | 190 | 176 | ||||||||||||
Printing & Office Supplies | 27 | 31 | 68 | 154 | 186 | ||||||||||||
Other | 378 | 415 | 238 | 1,449 | 1,082 | ||||||||||||
Total non-interest expense | 3,750 | 3,975 | 3,492 | 15,035 | 13,831 | ||||||||||||
Income prior to tax expense | 109 | 172 | 1,170 | 1,912 | 6,796 | ||||||||||||
Income taxes | 25 | 39 | 327 | 440 | 1,547 | ||||||||||||
Net Income | $ | 84 | $ | 133 | $ | 843 | $ | 1,472 | $ | 5,249 | |||||||
Average Balance Sheet Data | ||||||||||||||||||||||||||||
For the Three Months Ended (dollars in thousands) | ||||||||||||||||||||||||||||
Avg Bal | Interest | Avg Bal | Interest | Avg Bal | Interest | |||||||||||||||||||||||
Rolling | Rolling | Average | Rolling | Rolling | Average | Rolling | Rolling | Average | ||||||||||||||||||||
Assets | 3 Mos. | 3 Mos. | Yield/Cost | 3 Mos. | 3 Mos. | Yield/Cost | 3 Mos. | 3 Mos. | Yield/Cost | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||
Loans receivable | $ | 569,515 | $ | 7,059 | 4.96 | % | $ | 555,919 | $ | 6,715 | 4.83 | % | $ | 494,728 | $ | 5,652 | 4.57 | % | ||||||||||
Investment securities | 15,957 | 110 | 2.75 | % | 16,151 | 111 | 2.75 | % | 22,678 | 137 | 2.42 | % | ||||||||||||||||
Interest bearing deposits | 14,716 | 154 | 4.09 | % | 20,260 | 231 | 4.56 | % | 19,536 | 162 | 3.32 | % | ||||||||||||||||
Restricted investment in bank stock | 5,412 | 124 | 9.18 | % | 4,273 | 88 | 8.24 | % | 3,652 | 66 | 7.20 | % | ||||||||||||||||
Total interest-earning assets | 605,600 | 7,447 | 4.92 | % | 596,602 | 7,145 | 4.79 | % | 540,594 | 6,017 | 4.45 | % | ||||||||||||||||
Non-interest earning assets | 16,840 | 17,371 | 17,871 | |||||||||||||||||||||||||
Total assets | $ | 622,440 | $ | 613,973 | $ | 558,465 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Interest-bearing checking | $ | 25,368 | $ | 23 | 0.36 | % | $ | 29,162 | $ | 28 | 0.38 | % | $ | 32,065 | $ | 35 | 0.44 | % | ||||||||||
Money market accounts | 2,651 | 3 | 0.38 | % | 4,060 | 4 | 0.42 | % | 7,201 | 4 | 0.25 | % | ||||||||||||||||
Savings accounts | 120,990 | 881 | 2.89 | % | 117,790 | 532 | 1.79 | % | 108,170 | 221 | 0.81 | % | ||||||||||||||||
Certificates of deposit | 207,091 | 2,037 | 3.90 | % | 212,094 | 1,895 | 3.54 | % | 155,086 | 808 | 2.07 | % | ||||||||||||||||
Total interest-bearing deposits | 356,101 | 2,945 | 3.28 | % | 363,105 | 2,459 | 2.69 | % | 302,522 | 1,068 | 1.40 | % | ||||||||||||||||
Borrowings | 76,844 | 827 | 4.27 | % | 51,557 | 488 | 3.76 | % | 40,980 | 324 | 3.14 | % | ||||||||||||||||
Subordinated debenture | 13,705 | 221 | 6.40 | % | 13,695 | 222 | 6.41 | % | 13,663 | 221 | 6.42 | % | ||||||||||||||||
Total interest-bearing liabilities | 446,649 | 3,993 | 3.55 | % | 428,357 | 3,168 | 2.93 | % | 357,165 | 1,613 | 1.79 | % | ||||||||||||||||
Non-interest-bearing demand deposits | 114,293 | 124,711 | 141,466 | |||||||||||||||||||||||||
Other liabilities | 15,803 | 15,348 | 16,121 | |||||||||||||||||||||||||
Total non-interest-bearing liabilities | 130,096 | 140,059 | 157,587 | |||||||||||||||||||||||||
Stockholders' equity | 45,695 | 45,557 | 43,713 | |||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 622,440 | $ | 613,973 | $ | 558,465 | ||||||||||||||||||||||
Net interest income | $ | 3,454 | $ | 3,977 | $ | 4,404 | ||||||||||||||||||||||
Average interest rate spread | 1.37 | % | 1.86 | % | 2.66 | % | ||||||||||||||||||||||
Net interest margin | 2.28 | % | 2.67 | % | 3.26 | % | ||||||||||||||||||||||
Five Quarter Performance Ratio Highlights | Three Months Ended | ||||||||||||||
Income Statement | |||||||||||||||
Return on Average Assets | 0.05 | % | 0.09 | % | 0.42 | % | 0.40 | % | 0.60 | % | |||||
Return on Average Equity | 0.73 | % | 1.17 | % | 5.81 | % | 5.40 | % | 7.71 | % | |||||
Return on Average Tangible Equity | 0.74 | % | 1.18 | % | 5.89 | % | 5.47 | % | 7.82 | % | |||||
Efficiency Ratio | 99.31 | % | 93.89 | % | 80.86 | % | 82.42 | % | 75.03 | % | |||||
Yields / Costs | |||||||||||||||
Average Yield - Interest Earning Assets | 4.92 | % | 4.79 | % | 4.70 | % | 4.54 | % | 4.45 | % | |||||
Cost of Funds | 3.55 | % | 2.93 | % | 2.53 | % | 2.38 | % | 1.79 | % | |||||
Net Interest Margin | 2.28 | % | 2.67 | % | 2.86 | % | 2.89 | % | 3.26 | % | |||||
Capital Ratios | |||||||||||||||
Equity / Assets | 7.18 | % | 7.24 | % | 7.24 | % | 7.01 | % | 7.48 | % | |||||
Tangible Equity / Assets | 7.09 | % | 7.15 | % | 7.15 | % | 6.92 | % | 7.39 | % | |||||
Tier I leverage ratio (a) | 9.45 | % | 9.54 | % | 9.40 | % | 9.65 | % | 10.11 | % | |||||
Common equity Tier I capital ratio (a) | 13.60 | % | 13.47 | % | 13.67 | % | 13.87 | % | 14.26 | % | |||||
Tier 1 Risk-based capital ratio (a) | 13.60 | % | 13.47 | % | 13.67 | % | 13.87 | % | 14.26 | % | |||||
Total Risk-based capital ratio (a) | 14.85 | % | 14.63 | % | 14.92 | % | 15.12 | % | 15.51 | % | |||||
Stock Valuation | |||||||||||||||
Book Value | $ | 6.83 | $ | 6.79 | $ | 6.77 | $ | 6.67 | $ | 6.55 | |||||
Tangible Book Value | $ | 6.74 | $ | 6.71 | $ | 6.68 | $ | 6.59 | $ | 6.47 | |||||
Shares Outstanding (b) | 6,714 | 6,714 | 6,714 | 6,714 | 6,714 | ||||||||||
Asset Quality | |||||||||||||||
ACL / Total Loans | 0.89 | % | 0.89 | % | 0.89 | % | 0.90 | % | 1.14 | % | |||||
Non Performing Loans / Total Loans | 0.22 | % | 0.25 | % | 0.25 | % | 0.17 | % | 0.28 | % | |||||
Non Performing Assets / Total Assets | 0.22 | % | 0.25 | % | 0.25 | % | 0.19 | % | 0.25 | % | |||||
(a) Ratios at Bank level (b) Shares information presented in thousands | |||||||||||||||
Source:
2024 GlobeNewswire, Inc., source