Highlights:
- Net Income:
$16.2 million for the six months endedDecember 31, 2022 - Total Assets:
$2.6 billion atDecember 31, 2022 - Return on Average Assets: 1.27% for the six months ended
December 31, 2022 - Return on Average Equity: 20.03% for the six months ended
December 31, 2022
Total consolidated assets for the Company were
Selected highlights for the three and six months ended
Net Interest Income and Margin
- Net interest income increased
$1.4 million to$15.9 million for the three months endedDecember 31, 2022 from$14.5 million for the three months endedDecember 31, 2021 . Net interest income increased$2.9 million to$31.8 million for the six months endedDecember 31, 2022 from$28.9 million for the six months endedDecember 31, 2021 . The increase in net interest income was the result of growth in the average balance of interest-earning assets, which increased$214.4 million and$256.5 million when comparing the three and six months endedDecember 31, 2022 and 2021, respectively, and increases in interest rates on interest-earning assets, which increased 52 and 33 basis points when comparing the three and six months endedDecember 31, 2022 and 2021, respectively. The increase in net interest income was offset by increases in the average balance of interest-bearing liabilities, which increased$233.7 million and$265.3 million when comparing the three and six months endedDecember 31, 2022 and 2021, respectively, and increases in rates paid on interest-bearing liabilities, which increased 56 and 41 basis points when comparing the three and six months endedDecember 31, 2022 and 2021, respectively.
Average loan balances increased$241.2 million and$225.3 million and the yield on loans increased 7 basis points and decreased 11 basis points when comparing the three and six months endedDecember 31, 2022 and 2021, respectively. The yield on loans decreased for the six months ended due to the fee income recognized on Paycheck Protection Program (“PPP”) loans for the six months endedDecember 31, 2021 . Excluding PPP loan fees, loan yields increased 33 basis points when comparing the six months endedDecember 31, 2022 and 2021. Average securities increased$48.0 million and$116.3 million and the yield on such securities increased 29 and 47 basis points when comparing the three and six months endedDecember 31, 2022 and 2021, respectively. Average interest-bearing bank balances and federal funds decreased$76.4 million $87.1 million and the yield increased 303 and 278 basis points when comparing the three and six months endedDecember 31, 2022 and 2021, respectively.
The cost of NOW deposits increased 65 and 46 basis points, the cost of certificates of deposit increased 128 and 80 basis points, and the cost of savings and money market deposits remained flat when comparing the three and six months endedDecember 31, 2022 and 2021, respectively. The increase in the cost of interest-bearing liabilities was also due to growth in the average balance of interest-bearing liabilities of$233.7 million and$265.3 million , most notably due to an increase in NOW deposits of$143.6 million and$143.7 million , an increase in average savings and money market deposits of$30.2 million and$40.9 million , an increase in average borrowings of$32.4 million and$49.5 million , and an increase in average certificates of deposits of$27.5 million and$31.3 million , when comparing the three and six months endedDecember 31, 2022 and 2021, respectively. Yields on interest-earning assets and costs of interest-bearing deposits increased for the three and six months endedDecember 31, 2022 , as theFederal Reserve Board raised interest rates throughout the calendar year 2022. - Net interest rate spread and margin both decreased when comparing the six months ended
December 31, 2022 and 2021. Net interest rate spread decreased 4 and 8 basis points to 2.47% and 2.49% for the three and six months endedDecember 31, 2022 compared to 2.51% and 2.57% for the three and six months endedDecember 31, 2021 , respectively. Net interest margin increased 2 basis points to 2.57%, for the three months endedDecember 31, 2022 compared to 2.55% for the three months endedDecember 31, 2021 . Net interest margin decreased 4 basis points to 2.57%, for the six months endedDecember 31, 2022 compared to 2.61% for the six months endedDecember 31, 2021 . The decrease during the current quarter was due to the higher interest rate environment, which resulted in higher rates paid on deposits, resulting in higher interest expense. This was partially offset by increases in interest income on loans and securities, as they are being repriced at higher yields and the interest rates earned on new balances are higher than the historic low levels. - Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and
New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.77% and 2.69% for the three months endedDecember 31, 2022 and 2021, respectively, and was 2.77% and 2.75% for the six months endedDecember 31, 2022 and 2021, respectively.
Asset Quality and Loan Loss Provision
- Provision for loan losses amounted to
$244,000 and$1.3 million for the three months endedDecember 31, 2022 and 2021, respectively, and amounted to a benefit of$255,000 and a charge of$2.3 million for the six months endedDecember 31, 2022 and 2021, respectively. The provision for loan losses for the three months endedDecember 31, 2022 was due to the growth in gross loans partially offset by the decrease in loans classified as substandard. The benefit for the six months endedDecember 31, 2022 was due to a decrease in the balance and reserve percentage on loans adversely classified, partially offset by the growth in gross loans. Loans classified as substandard or special mention totaled$44.9 million atDecember 31, 2022 and$52.1 million atJune 30, 2022 , a decrease of$7.2 million . Reserves on loans classified as substandard or special mention totaled$6.7 million atDecember 31, 2022 compared to$9.6 million atJune 30, 2022 , a decrease of$2.9 million . There were no loans classified as doubtful or loss atDecember 31, 2022 orJune 30, 2022 . Allowance for loan losses to total loans receivable was 1.60% atDecember 31, 2022 compared to 1.82% atJune 30, 2022 . - Net charge-offs amounted to
$102,000 and$89,000 for the three months endedDecember 31, 2022 and 2021, respectively, an increase of$13,000 . Net charge-offs totaled$217,000 and$252,000 for the six months endedDecember 31, 2022 and 2021, respectively. There were no significant charge offs in each loan segment during the three and six months endedDecember 31, 2022 . - Nonperforming loans amounted to
$5.4 million and$6.3 million atDecember 31, 2022 andJune 30, 2022 , respectively. The decrease in nonperforming loans during the period was primarily due to$1.1 million in loan repayments,$134,000 in loans returning to performing status, and$7,000 in charge-offs, partially offset by$277,000 of loans placed into nonperforming status. AtDecember 31, 2022 nonperforming assets were 0.21% of total assets compared to 0.25% atJune 30, 2022 . Nonperforming loans were 0.39% and 0.51% of net loans atDecember 31, 2022 andJune 30, 2022 , respectively.
Noninterest Income and Noninterest Expense
- Noninterest income decreased
$343,000 , or 10.6%, to$2.9 million for the three months endedDecember 31, 2022 compared to$3.2 million for the three months endedDecember 31, 2021 . Noninterest income decreased$174,000 , or 2.8%, to$6.0 million for the six months endedDecember 31, 2022 compared to$6.2 million for the six months endedDecember 31, 2021 . The decrease was primarily due to a decrease in investment service income and a net loss on sale of available for sale securities. This was partially offset by an increase in debit card fees and service charges on deposit accounts resulting from continued growth in the number of checking accounts with debit cards and the number of deposit accounts, and the income from bank owned life insurance. - Noninterest expense increased
$1.6 million or 19.4%, to$9.9 million for the three months endedDecember 31, 2022 compared to$8.3 million for the three months endedDecember 31, 2021 . Noninterest expense increased$2.4 million , or 15.0%, to$18.7 million for the six months endedDecember 31, 2022 , compared to$16.3 million for the six months endedDecember 31, 2021 . The increase during the three and six months endedDecember 31, 2022 was primarily due a non-recurring litigation reserve expense of$1.2 million and increases in salaries and employee benefits expense due to new positions created during the period to support the Company’s growth.
Income Taxes
- Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given year and certain regulatory requirements. The effective tax rate was 16.5% and 15.7% for the three and six months ended
December 31, 2022 and 14.8% and 15.0% for the three and six months endedDecember 31, 2021 . The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, income received on the bank owned life insurance, as well as the tax benefits derived from premiums paid to the Company’s pooled captive insurance subsidiary to arrive at the effective tax rate.
Balance Sheet Summary
- Total assets of the Company were
$2.6 billion atDecember 31, 2022 and$2.6 billion atJune 30, 2022 , an increase of$44.6 million , or 1.7%. - Securities available-for-sale and held-to-maturity decreased
$92.3 million , or 7.9%, to$1.1 billion atDecember 31, 2022 as compared to$1.2 billion atJune 30, 2022 . The decrease was the result of utilizing maturing investments to fund loan growth during the period and due to the increase in unrealized loss on securities of$6.3 million . Securities purchases totaled$107.5 million during the six months endedDecember 31, 2022 and consisted primarily of$105.8 million of state and political subdivision securities. Principal pay-downs and maturities during the six months endedDecember 31, 2022 amounted to$190.2 million , primarily consisting of$166.2 million of state and political subdivision securities, and$22.3 million of mortgage-backed securities. - Net loans receivable increased
$138.5 million , or 11.3%, to$1.4 billion atDecember 31, 2022 from$1.2 billion atJune 30, 2022 . The loan growth experienced during the six months consisted primarily of$110.0 million in commercial real estate loans,$10.8 million in residential real estate loans,$5.0 million in residential construction and land loans,$3.9 million in multi-family loans, and$3.5 million in commercial construction loans. - Deposits totaled
$2.3 billion atDecember 31, 2022 and$2.2 billion atJune 30, 2022 , an increase of$52.8 million , or 2.4%. NOW deposits increased$36.3 million , or 2.4%, and certificates of deposits increased$61.9 million , or 151.6% when comparingDecember 31, 2022 andJune 30, 2022 . Included within certificates of deposits atDecember 31, 2022 andJune 30, 2022 were$68.6 million and$7.2 million in brokered certificates of deposit, respectively. Money market deposits decreased$20.4 million , or 12.9%, savings deposits decreased$3.6 million , or 1.0%, and noninterest-bearing deposits decreased$21.4 million , or 11.4% when comparingDecember 31, 2022 andJune 30, 2022 . - Borrowings for the Company amounted to
$157.0 million atDecember 31, 2022 compared to$173.0 million atJune 30, 2022 , a decrease of$16.0 million . AtDecember 31, 2022 , borrowings consisted of$49.4 million of Fixed-to-Floating Rate Subordinated Notes and$107.6 million of overnight borrowings withFederal Home Loan Bank of New York (“FHLB”). - Shareholders’ equity increased to
$168.2 million atDecember 31, 2022 from$157.7 million atJune 30, 2022 , resulting primarily from net income of$16.2 million , partially offset by dividends declared and paid of$1.1 million and an increase in accumulated other comprehensive loss of$4.6 million .
This press release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, financial and regulatory changes, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services.
In addition to presenting information in conformity with accounting principles generally accepted in
(END)
Consolidated Statements of Income, and Selected Financial Ratios (Unaudited)
At or for the Three Months | At or for the Six Months | |||||||||||
Ended | Ended | |||||||||||
Dollars in thousands, except share and per share data | 2022 | 2021 | 2022 | 2021 | ||||||||
Interest income | $ | 20,528 | $ | 15,811 | $ | 39,168 | $ | 31,424 | ||||
Interest expense | 4,605 | 1,358 | 7,411 | 2,572 | ||||||||
Net interest income | 15,923 | 14,453 | 31,757 | 28,852 | ||||||||
Provision for loan losses | 244 | 1,280 | (255 | ) | 2,268 | |||||||
Noninterest income | 2,895 | 3,238 | 5,993 | 6,167 | ||||||||
Noninterest expense | 9,951 | 8,337 | 18,748 | 16,298 | ||||||||
Income before taxes | 8,623 | 8,074 | 19,257 | 16,453 | ||||||||
Tax provision | 1,425 | 1,197 | 3,023 | 2,462 | ||||||||
Net income | $ | 7,198 | $ | 6,877 | $ | 16,234 | $ | 13,991 | ||||
Basic and diluted EPS | $ | 0.85 | $ | 0.81 | $ | 1.91 | $ | 1.64 | ||||
Weighted average shares outstanding | 8,513,414 | 8,513,414 | 8,513,414 | 8,513,414 | ||||||||
Dividends declared per share 4 | $ | 0.14 | $ | 0.13 | $ | 0.28 | $ | 0.26 | ||||
Selected Financial Ratios | ||||||||||||
Return on average assets1 | 1.12 | % | 1.18 | % | 1.27 | % | 1.23 | % | ||||
Return on average equity1 | 17.64 | % | 17.50 | % | 20.03 | % | 18.04 | % | ||||
Net interest rate spread1 | 2.47 | % | 2.51 | % | 2.49 | % | 2.57 | % | ||||
Net interest margin1 | 2.57 | % | 2.55 | % | 2.57 | % | 2.61 | % | ||||
Fully taxable-equivalent net interest margin2 | 2.77 | % | 2.69 | % | 2.77 | % | 2.75 | % | ||||
Efficiency ratio3 | 52.88 | % | 47.13 | % | 49.66 | % | 46.54 | % | ||||
Non-performing assets to total assets | 0.21 | % | 0.17 | % | ||||||||
Non-performing loans to net loans | 0.39 | % | 0.35 | % | ||||||||
Allowance for loan losses to non-performing loans | 414.52 | % | 559.59 | % | ||||||||
Allowance for loan losses to total loans | 1.60 | % | 1.89 | % | ||||||||
Shareholders’ equity to total assets | 6.43 | % | 6.82 | % | ||||||||
Dividend payout ratio4 | 14.66 | % | 15.85 | % | ||||||||
Actual dividends paid to net income5 | 6.76 | % | 7.29 | % | ||||||||
Book value per share | $ | 19.76 | $ | 18.79 | ||||||||
1 Ratios are annualized when necessary.
2 Interest income calculated on a taxable-equivalent basis includes the additional interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and
For the three months ended | For the six months ended | |||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||
Net interest income (GAAP) | $ | 15,923 | $ | 14,453 | $ | 31,757 | $ | 28,852 | ||||
Tax-equivalent adjustment | 1,283 | 816 | 2,407 | 1,582 | ||||||||
Net interest income (fully taxable-equivalent basis) | $ | 17,206 | $ | 15,269 | $ | 34,164 | $ | 30,434 | ||||
Average interest-earning assets | $ | 2,482,976 | $ | 2,268,548 | $ | 2,468,727 | $ | 2,212,262 | ||||
Net interest margin (fully taxable-equivalent basis) | 2.77 | % | 2.69 | % | 2.77 | % | 2.75 | % | ||||
3 The efficiency ratio has been calculated as noninterest expense divided by the sum of net interest income and noninterest income.
4 The dividend payout ratio has been calculated based on the dividends declared per share divided by basic earnings per share. No adjustments have been made to account for dividends waived by
5 Dividends declared divided by net income. The MHC waived its right to receive dividends declared during the three months
The above information is preliminary and based on the Company’s data available at the time of presentation.
Consolidated Statements of Financial Condition (Unaudited)
At | At | ||||||
(Dollars In thousands, except share data) | |||||||
Assets | |||||||
Total cash and cash equivalents | $ | 60,816 | $ | 69,009 | |||
Long term certificate of deposit | 4,096 | 4,107 | |||||
Securities- available for sale, at fair value | 335,118 | 408,062 | |||||
Securities- held to maturity, at amortized cost | 742,470 | 761,852 | |||||
Equity securities, at fair value | 281 | 273 | |||||
6,159 | 6,803 | ||||||
Gross loans receivable | 1,390,055 | 1,251,987 | |||||
Less: Allowance for loan losses | (22,289 | ) | (22,761 | ) | |||
Unearned origination fees and costs, net | 100 | 129 | |||||
Net loans receivable | 1,367,866 | 1,229,355 | |||||
Premises and equipment | 14,450 | 14,362 | |||||
Bank owned life insurance | 54,375 | 53,695 | |||||
Accrued interest receivable | 12,068 | 8,917 | |||||
Foreclosed real estate | - | 68 | |||||
Prepaid expenses and other assets | 18,616 | 15,237 | |||||
Total assets | $ | 2,616,315 | $ | 2,571,740 | |||
Liabilities and shareholders’ equity | |||||||
Noninterest bearing deposits | $ | 166,295 | $ | 187,697 | |||
Interest bearing deposits | 2,099,099 | 2,024,907 | |||||
Total deposits | 2,265,394 | 2,212,604 | |||||
Borrowings from FHLB, short-term | 107,600 | 123,700 | |||||
Subordinated notes payable | 49,403 | 49,310 | |||||
Accrued expenses and other liabilities | 25,711 | 28,412 | |||||
Total liabilities | 2,448,108 | 2,414,026 | |||||
Total shareholders’ equity | 168,207 | 157,714 | |||||
Total liabilities and shareholders’ equity | $ | 2,616,315 | $ | 2,571,740 | |||
Common shares outstanding | 8,513,414 | 8,513,414 | |||||
97,926 | 97,926 | ||||||
The above information is preliminary and based on the Company’s data available at the time of presentation.
For Further Information Contact:
President & CEO
(518) 943-2600
donaldg@tbogc.com
SEVP, COO & CFO
(518) 943-2600
michellep@tbogc.com
Source:
2023 GlobeNewswire, Inc., source