Key Financial Data | 3Q23 Highlights | ||||||||||
Profitability Metrics | 3Q23 | 2Q23 | 3Q22 | • Net Revenues of • Net Income of • Average loans increased 1.4% quarter-over-quarter with average total deposits decreasing by 1.3% in linked quarters. • Net interest margin of 2.67% narrowed from 2.86% in linked quarters as increases to the rates paid on interest-bearing deposits outpaced the rise in yields of interest-earning assets • Credit quality remains strong with loan delinquencies relatively unchanged. • Accelerates cost cutting program | |||||||
Return on average assets (%) | 0.09 | % | 0.42 | % | 1.73 | % | |||||
Return on average common equity (%) | 1.17 | % | 5.81 | % | 22.83 | % | |||||
Return on tangible common equity (%) | 1.18 | % | 5.89 | % | 23.15 | % | |||||
Net interest margin (%) | 2.67 | % | 2.86 | % | 3.34 | % | |||||
Income Statement (a) | 3Q23 | 2Q23 | 3Q22 | ||||||||
Net interest income | $ | 3,977 | $ | 4,297 | $ | 4,371 | |||||
Non-interest income | $ | 256 | $ | 328 | $ | 2,043 | |||||
Net income | $ | 133 | $ | 655 | $ | 2,354 | |||||
Earnings per share- Basic | $ | 0.02 | $ | 0.10 | $ | 0.35 | |||||
Earnings per share- Diluted | $ | 0.02 | $ | 0.10 | $ | 0.35 | |||||
Balance Sheet (a) | 3Q23 | 2Q23 | 3Q22 | ||||||||
Average total loans | $ | 555,919 | $ | 548,441 | $ | 423,431 | |||||
Average total deposits | $ | 487,816 | $ | 494,137 | $ | 460,624 | |||||
Book value per share | $ | 6.79 | $ | 6.77 | $ | 6.37 | |||||
Tangible book value per share | $ | 6.71 | $ | 6.68 | $ | 6.28 | |||||
(a) In thousands except for per share amounts |
Selected Balance Sheet Information:
As of September 30, 2023, total assets were $630.3 million, an increase of $42.4 million, or 7.2%, as compared to total assets of $587.9 million on December 31, 2022. The increase can be attributed to loan portfolio growth funded by deposit inflows and
Loans receivable, net of Allowance for Loan Credit Losses totaled
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were
Total liabilities increased
As of September 30, 2023, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.54%, 13.47%, 13.47% and 14.63%, respectively, all in excess of the ratios required to be deemed "well-capitalized." Book value per common share was
Financial Performance Overview:
Three Months Ended
For the three months ended September 30, 2023, net income totaled $133 thousand compared to $655 thousand for the second quarter 2023. The decrease can be attributed to a softer margin and increased non-interest expenses quarter over quarter.
Net interest income for the three months ended September 30, 2023, decreased
There was a net provision expense of
Non-interest income decreased $72 thousand, to $256 thousand for the three months ended September 30, 2023, compared with non-interest income of $328 thousand for the three months ended June 30, 2023. The decrease can be attributed to less revenue collected from the sale of loans quarter over quarter, partially offset by an increase in fee income earned from the Bank’s loan portfolio.
Non-interest expense totaled
Nine months ended
For the nine months ended September 30, 2023, net income totaled $1.4 million a decrease of $3.0 million in comparison to
Net interest income for the nine months ended September 30, 2023, decreased 4.2% or
In addition, the Bank has seen a deposit composition shift with a 25% increase in interest-bearing deposits year over year. Recently the deposit composition shift has slowed with average non-interest-bearing deposits increasing quarter over quarter.
Provision for credit losses totaled
Non-interest income totaled $758 thousand for the nine months ended September 30, 2023, compared with non-interest income of $2.1 million for the nine months ended September 30, 2022. The decrease can be attributed to the aforementioned branch sale.
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 Statement of Financial Condition | ||||||||
(in thousands) | ||||||||
2023 | 2022 | 2022 | ||||||
|--(unaudited)--| | |--(unaudited)--| | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 29,439 | 38,115 | 30,481 | ||||
Securities | 15,143 | 16,042 | 32,622 | |||||
Loans receivable, net: | ||||||||
Real estate mortgage loans | 543,852 | 494,064 | 459,916 | |||||
Commercial and Lines of Credit | 14,322 | 14,110 | 14,484 | |||||
Home Equity and Consumer Loans | 348.029 | 465 | 668 | |||||
Deferred costs | 4,362 | 3,953 | 3,828 | |||||
Allowance for Loan Credit Losses (a) | (5,028 | ) | (5,860 | ) | (5,760 | ) | ||
Total loans receivable, net | 557,858 | 506,732 | 473,136 | |||||
Investment in restricted stock, at cost | 5,782 | 4,779 | 3,432 | |||||
Bank premises and equipment, net | 5,608 | 6,209 | 5,776 | |||||
Accrued interest receivable | 2,533 | 2,020 | 1,975 | |||||
581 | 581 | 581 | ||||||
Repossessed assets | 164 | - | 117 | |||||
Bank Owned Life Insurance | 5,305 | 5,202 | 5,168 | |||||
Other Assets | 7,904 | 8,175 | 8,132 | |||||
Total Assets | $ | 630,316 | 587,855 | 561,420 | ||||
Liabilities & Stockholders' Equity | ||||||||
Non-Interest-Bearing Deposits | 125,562 | 129,641 | 150,677 | |||||
Interest-Bearing Deposits | 302,509 | 279,830 | 263,217 | |||||
Brokered Deposits | 42,873 | 40,627 | 39,051 | |||||
Total Deposits | 470,944 | 449,798 | 452,945 | |||||
Bond Issue, net of costs | 13,701 | 13,666 | 13,658 | |||||
Borrowed Money | 83,980 | 64,900 | 35,000 | |||||
Other Liabilities | 16,086 | 15,490 | 16,665 | |||||
Total Liabilities | 584,710 | 543,854 | 518,268 | |||||
Stockholders' equity | 45,606 | 44,001 | 43,152 | |||||
Total liabilities and stockholders' equity | $ | 630,316 | 587,855 | 561,420 | ||||
(a) The Company adopted ASC 326- Current Expected Credit Losses (CECL) effective | ||||||||
Consolidated Statement of Income | ||||||||||||||
(in thousands) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
|--------------(unaudited)--------------| | |-----(unaudited)-----| | |||||||||||||
Interest income | ||||||||||||||
Loans | $ | 6,715 | $ | 6,505 | $ | 4,943 | $ | 19,284 | $ | 14,386 | ||||
Securities | 111 | 112 | 172 | 336 | 426 | |||||||||
Other interest-earning assets | 319 | 454 | 164 | 1,140 | 385 | |||||||||
Total Interest Income | 7,145 | 7,071 | 5,279 | 20,760 | 15,197 | |||||||||
Interest expense | ||||||||||||||
Deposits | 2,459 | 2,032 | 643 | 6,107 | 1,284 | |||||||||
Borrowings | 710 | 742 | 394 | 2,220 | 939 | |||||||||
Total Interest Expense | 3,169 | 2,774 | 1,037 | 8,327 | 2,223 | |||||||||
Net Interest Income | 3,977 | 4,297 | 4,242 | 12,434 | 12,974 | |||||||||
Prov(Benefit) for Credit Losses | 86 | 34 | - | 103 | (178 | ) | ||||||||
Net Interest Income after Prov(Benefit)for Credit Losses | 3,891 | 4,263 | 4,242 | 12,331 | 13,152 | |||||||||
Non-interest income | ||||||||||||||
Deposit service charges | 106 | 98 | 84 | 284 | 256 | |||||||||
Loan fee income | 99 | 68 | 83 | 224 | 300 | |||||||||
Gain on Loan Sales | 12 | 126 | - | 138 | 241 | |||||||||
Gain on | - | - | - | - | 1,782 | |||||||||
Other | 39 | 36 | 99 | 112 | 234 | |||||||||
Total non-interest income | 256 | 328 | 266 | 758 | 2,813 | |||||||||
Non-interest expenses | ||||||||||||||
Compensation and benefits | 1,856 | 1,953 | 1,826 | 5,664 | 5,386 | |||||||||
Occupancy and equipment | 729 | 640 | 722 | 2,010 | 2,077 | |||||||||
Data processing service fees | 397 | 340 | 345 | 1,039 | 867 | |||||||||
Marketing | 107 | 99 | (35 | ) | 305 | 173 | ||||||||
Professional fees | 315 | 213 | 194 | 747 | 654 | |||||||||
NYS Banking & FDIC Assessments | 71 | 57 | 14 | 183 | 169 | |||||||||
Printing & Office Supplies | 31 | 39 | 45 | 127 | 118 | |||||||||
Insurance | 54 | 41 | 53 | 140 | 123 | |||||||||
Other | 415 | 358 | 217 | 1,071 | 772 | |||||||||
Total non-interest expense | 3,975 | 3,740 | 3,381 | 11,287 | 10,339 | |||||||||
Income prior to tax expense | 172 | 851 | 1,127 | 1,802 | 5,626 | |||||||||
Income taxes | 39 | 196 | 255 | 414 | 1,220 | |||||||||
Net Income | $ | 133 | $ | 655 | $ | 872 | $ | 1,388 | $ | 4,406 | ||||
For the Three Months Ended (dollars in thousands) | ||||||||||||||||||
Avg Bal | Interest | Average | Avg Bal | Interest | Average | Avg Bal | Interest | Average | ||||||||||
Rolling | Rolling | Rolling | Rolling | Rolling | Rolling | |||||||||||||
Assets | 3 Mos. | 3 Mos. | Yield/Cost | 3 Mos. | 3 Mos. | Yield/Cost | 3 Mos. | 3 Mos. | Yield/Cost | |||||||||
Interest-earning assets: | ||||||||||||||||||
Loans receivable | $ | 555,919 | $ | 6,715 | 4.83 | % | $ | 548,441 | $ | 6,505 | 4.74 | % | $ | 456,085 | $ | 4,943 | 4.33 | % |
Investment securities | 16,151 | 111 | 2.75 | % | 16,194 | 112 | 2.77 | % | 33,194 | 172 | 2.07 | % | ||||||
Interest bearing deposits | 20,260 | 231 | 4.56 | % | 32,687 | 374 | 4.58 | % | 27,240 | 114 | 1.68 | % | ||||||
Restricted investment in bank stock | 4,273 | 88 | 8.24 | % | 4,320 | 80 | 7.41 | % | 1,691 | 50 | 11.78 | % | ||||||
Total interest-earning assets | 596,602 | 7,145 | 4.79 | % | 601,642 | 7,072 | 4.70 | % | 518,210 | 5,279 | 4.07 | % | ||||||
Non-interest earning assets | 17,371 | 17,924 | 19,798 | |||||||||||||||
Total assets | $ | 613,973 | $ | 619,566 | $ | 538,008 | ||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Interest-bearing checking | $ | 29,162 | $ | 28 | 0.38 | % | $ | 27,694 | $ | 26 | 0.38 | % | $ | 32,736 | $ | 34 | 0.41 | % |
Money market accounts | 4,060 | 4 | 0.42 | % | 4,367 | 3 | 0.25 | % | 6,589 | 3 | 0.20 | % | ||||||
Savings accounts | 117,790 | 532 | 1.79 | % | 133,996 | 446 | 1.33 | % | 134,132 | 180 | 0.53 | % | ||||||
Certificates of deposit | 212,094 | 1,895 | 3.54 | % | 206,246 | 1,557 | 3.03 | % | 117,679 | 426 | 1.44 | % | ||||||
Total interest-bearing deposits | 363,105 | 2,459 | 2.69 | % | 372,302 | 2,032 | 2.19 | % | 291,136 | 643 | 0.88 | % | ||||||
Borrowings | 51,557 | 488 | 3.76 | % | 52,853 | 520 | 3.95 | % | 35,000 | 173 | 1.96 | % | ||||||
Subordinated debenture | 13,695 | 222 | 6.42 | % | 13,681 | 221 | 6.48 | % | 13,655 | 221 | 6.42 | % | ||||||
Total interest-bearing liabilities | 428,357 | 3,168 | 2.93 | % | 438,836 | 2,773 | 2.53 | % | 339,791 | 1,037 | 1.21 | % | ||||||
Non-interest-bearing demand deposits | 124,711 | 121,835 | 140,464 | |||||||||||||||
Other liabilities | 15,348 | 13,975 | 14,803 | |||||||||||||||
Total non-interest-bearing liabilities | 140,059 | 135,810 | 155,267 | |||||||||||||||
Stockholders' equity | 45,557 | 44,921 | 42,950 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 613,973 | $ | 619,566 | $ | 538,008 | ||||||||||||
Net interest income | $ | 3,977 | $ | 4,299 | $ | 4,242 | ||||||||||||
Average interest rate spread | 1.86 | % | 2.17 | % | 2.86 | % | ||||||||||||
Net interest margin | 2.67 | % | 2.86 | % | 3.27 | % | ||||||||||||
Five Quarter Performance Ratio Highlights | Three Months Ended | |||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||
Income Statement | ||||||||||||||||
Return on Average Assets | 0.09 | % | 0.42 | % | 0.40 | % | 0.60 | % | 0.65 | % | ||||||
Return on Average Equity | 1.17 | % | 5.81 | % | 5.40 | % | 7.71 | % | 8.12 | % | ||||||
Return on Average Tangible Equity | 1.18 | % | 5.89 | % | 5.47 | % | 7.82 | % | 8.23 | % | ||||||
Efficiency Ratio | 93.89 | % | 80.86 | % | 82.42 | % | 75.03 | % | 60.97 | % | ||||||
Yields / Costs | ||||||||||||||||
Average Yield - Interest Earning Assets | 4.79 | % | 4.70 | % | 4.54 | % | 4.45 | % | 4.07 | % | ||||||
Cost of Funds | 2.93 | % | 2.53 | % | 2.38 | % | 1.79 | % | 1.21 | % | ||||||
Net Interest Margin | 2.67 | % | 2.86 | % | 2.89 | % | 3.26 | % | 3.27 | % | ||||||
Capital Ratios | ||||||||||||||||
Equity / Assets | 7.24 | % | 7.24 | % | 7.01 | % | 7.48 | % | 7.68 | % | ||||||
Tangible Equity / Assets | 7.15 | % | 7.15 | % | 6.92 | % | 7.39 | % | 7.59 | % | ||||||
Tier I leverage ratio (a) | 9.54 | % | 9.40 | % | 9.65 | % | 10.1 | % | 10.3 | % | ||||||
Common equity Tier I capital ratio (a) | 13.47 | % | 13.67 | % | 13.87 | % | 14.3 | % | 14.7 | % | ||||||
Tier 1 Risk-based capital ratio (a) | 13.47 | % | 13.67 | % | 13.87 | % | 14.3 | % | 14.7 | % | ||||||
Total Risk-based capital ratio (a) | 14.63 | % | 14.92 | % | 15.12 | % | 15.5 | % | 16.0 | % | ||||||
Stock Valuation | ||||||||||||||||
Book Value | $ | 6.79 | $ | 6.77 | $ | 6.67 | $ | 6.55 | $ | 6.47 | ||||||
Tangible Book Value | $ | 6.71 | $ | 6.68 | $ | 6.59 | $ | 6.47 | $ | 6.39 | ||||||
Shares Outstanding (b) | 6,714 | 6,714 | 6,714 | 6,714 | 6,666 | |||||||||||
Asset Quality | ||||||||||||||||
CECL / Total Loans | 0.89 | % | 0.89 | % | 0.90 | % | 1.14 | % | 1.20 | % | ||||||
Non Performing Loans / Total Loans | 0.27 | % | 0.25 | % | 0.17 | % | 0.28 | % | 0.34 | % | ||||||
Non Performing Assets / Total Assets | 0.27 | % | 0.25 | % | 0.19 | % | 0.25 | % | 0.31 | % | ||||||
(a) Ratios at Bank level (b) Shares information presented in thousands | ||||||||||||||||
Source:
2023 GlobeNewswire, Inc., source