Exchange Bank Announces First Quarter 2024 Earnings
HIGHLIGHTS:
-
Loan balances have remained relatively constant since prior quarter, growing by
$3.5 million fromDecember 31, 2023 . SinceMarch 31, 2023 , loan balances have increased by$68.3 million . -
Loan quality remains strong, nonaccrual loans totaled
$4.7 million , or 0.29% of gross loans, as ofMarch 31, 2024 . -
The allowance for credit losses, which is based on estimating credit losses for the life of the loans in the portfolio, totaled
$41.2 million , or 2.58% of total loans. -
First quarter net income after taxes was
$4.9 million compared with$6.8 million for the previous quarter endingDecember 31, 2023 . -
Deposits have decreased
$29.3 million since the prior quarter and$109.8 million sinceMarch 31, 2023 . -
The Bank’s on balance sheet liquidity (cash and equivalents, deposits held in other institutions, and unpledged available-for-sale (AFS) securities) remains strong at
$727.2 million or 21.8% of total assets as ofMarch 31, 2024 . In addition, the Bank has available borrowing capacity of$982.8 million or 29.5% of total assets. -
The Bank remains well-capitalized, and all regulatory capital ratios were well above minimum requirements with a total risk-based capital ratio of 18.97% on
March 31, 2024 .
“Exchange Bank is focused on serving our community and being a partner in the business environment. While the Bank has seen an increase in the overall cost of funds along with a deposit mix shift to higher cost deposits, we have maintained core deposit relationships. We have a strong liquidity position, asset quality, and conservative lending practices that will allow us to serve our community for years to come,” said
INCOME STATEMENT:
The Bank’s net interest income decreased from
The increased interest costs were partially offset by positive trends in interest income. Interest income on assets increased compared to the first quarter of 2023 by
Non-interest income for three months ended
During the three months ending
BALANCE SHEET:
Total assets were
The market value of the investment portfolio was
Gross loans at the end of the first quarter were
As mentioned previously, loan quality remains strong; nonaccrual loans totaled
Deposits have decreased
Non-interest-bearing deposits made up 32.63% of total deposits as of
The Bank had borrowings of
The Bank’s regulatory capital ratios remain well in excess of the minimums to be considered “well capitalized.” As of
The Bank does not view the temporary nature of the book unrealized losses to be a significant risk to its long-term capital position. The unrealized losses reduce the Bank’s accumulated other comprehensive income, which the Bank has opted to exclude from its common equity tier 1 capital. Therefore, the Bank’s regulatory capital is not impacted by the changes in the market value of the investment securities in the Bank’s investment portfolio. The Bank’s regulatory capital, as defined by the
50.44% of the Bank’s cash dividend goes to the
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings, or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors—many of which are beyond the Company’s control—could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not undertake efforts to update forward-looking statements to reflect circumstances or events that occur after the date forward-looking statements are made.
About
Headquartered in
Member
|
|||||||||||||||
and Subsidiaries | |||||||||||||||
Consolidated Balance Sheets | |||||||||||||||
(Unaudited) | |||||||||||||||
|
|||||||||||||||
(In Thousands) | |||||||||||||||
Change |
% Change |
||||||||||||||
ASSETS |
2024 |
2023 |
24/23 |
24/23 |
|||||||||||
Cash and due from banks |
$ |
31,173 |
|
$ |
38,829 |
|
$ |
(7,656 |
) |
-19.72 |
% |
||||
|
|
60,735 |
|
|
11,781 |
|
|
48,954 |
|
415.53 |
% |
||||
Total Cash and cash equivalents |
|
91,908 |
|
|
50,610 |
|
|
41,298 |
|
81.60 |
% |
||||
Investments | |||||||||||||||
Interest-earning deposits in other financial institutions |
|
- |
|
|
1,000 |
|
|
(1,000 |
) |
-100.00 |
% |
||||
Securities available for sale |
|
1,459,404 |
|
|
1,578,356 |
|
|
(118,952 |
) |
-7.54 |
% |
||||
FHLB Stock |
|
15,000 |
|
|
15,000 |
|
|
- |
|
0.00 |
% |
||||
Loans and leases | |||||||||||||||
Real estate |
|
1,255,551 |
|
|
1,150,462 |
|
|
105,089 |
|
9.13 |
% |
||||
Consumer |
|
147,447 |
|
|
144,013 |
|
|
3,434 |
|
2.38 |
% |
||||
Commercial |
|
195,222 |
|
|
235,441 |
|
|
(40,219 |
) |
-17.08 |
% |
||||
|
1,598,220 |
|
|
1,529,916 |
|
|
68,304 |
|
4.46 |
% |
|||||
Less allowance for credit losses |
|
(41,212 |
) |
|
(43,058 |
) |
|
1,846 |
|
-4.29 |
% |
||||
Net loans and leases |
|
1,557,008 |
|
|
1,486,858 |
|
|
70,150 |
|
4.72 |
% |
||||
Bank premises and equipment |
|
18,037 |
|
|
17,307 |
|
|
730 |
|
4.22 |
% |
||||
Other assets |
|
194,858 |
|
|
212,525 |
|
|
(17,667 |
) |
-8.31 |
% |
||||
Total Assets |
$ |
3,336,215 |
|
$ |
3,361,656 |
|
$ |
(25,441 |
) |
-0.76 |
% |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Deposits | |||||||||||||||
Non-Interest Bearing Demand |
$ |
916,596 |
|
$ |
1,104,601 |
|
$ |
(188,005 |
) |
-17.02 |
% |
||||
Interest Bearing | |||||||||||||||
Transaction |
|
469,319 |
|
|
582,740 |
|
|
(113,421 |
) |
-19.46 |
% |
||||
Money market |
|
501,151 |
|
|
382,693 |
|
|
118,458 |
|
30.95 |
% |
||||
Savings |
|
505,834 |
|
|
647,761 |
|
|
(141,927 |
) |
-21.91 |
% |
||||
Time |
|
416,392 |
|
|
201,333 |
|
|
215,059 |
|
106.82 |
% |
||||
Total Deposits |
|
2,809,292 |
|
|
2,919,128 |
|
|
(109,836 |
) |
-3.76 |
% |
||||
Borrowings |
|
225,000 |
|
|
155,000 |
|
|
70,000 |
|
45.16 |
% |
||||
Other liabilities |
|
49,468 |
|
|
56,558 |
|
|
(7,090 |
) |
-12.54 |
% |
||||
Total liabilities |
|
3,083,760 |
|
|
3,130,686 |
|
|
(46,926 |
) |
-1.50 |
% |
||||
Stockholders' equity |
|
252,455 |
|
|
230,970 |
|
|
21,485 |
|
9.30 |
% |
||||
Total Liabilities and Stockholder's Equity |
$ |
3,336,215 |
|
$ |
3,361,656 |
|
$ |
(25,441 |
) |
-0.76 |
% |
|
||||||||||||||
and Subsidiaries | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Period Ended |
||||||||||||||
(In Thousands, except per share amounts) |
Three Months Ended |
|||||||||||||
Three Months Ended |
Change |
% Change |
||||||||||||
2024 |
2023 |
24/23 |
24/23 |
|||||||||||
Interest Income | ||||||||||||||
Interest and fees on loans |
$ |
21,843 |
$ |
19,274 |
$ |
2,569 |
|
13.33 |
% |
|||||
Interest on investments securities |
|
8,499 |
|
8,148 |
|
351 |
|
4.31 |
% |
|||||
Total interest income |
|
30,342 |
|
27,422 |
|
2,920 |
|
10.65 |
% |
|||||
Interest expense | ||||||||||||||
Interest on deposits |
|
7,392 |
|
1,490 |
|
5,902 |
|
396.11 |
% |
|||||
Other interest expense |
|
2,648 |
|
1,186 |
|
1,462 |
|
123.27 |
% |
|||||
Total interest expense |
|
10,040 |
|
2,676 |
|
7,364 |
|
275.19 |
% |
|||||
Net interest income |
|
20,302 |
|
24,746 |
|
(4,444 |
) |
-17.96 |
% |
|||||
Provision (reversal of) for losses on loans |
|
- |
|
- |
|
- |
|
0.00 |
% |
|||||
Net interest income after provision for loan and leases |
|
20,302 |
|
24,746 |
|
(4,444 |
) |
-17.96 |
% |
|||||
Non-interest income |
|
5,707 |
|
6,025 |
|
(318 |
) |
-5.28 |
% |
|||||
Non interest expense | ||||||||||||||
Salary and benefit costs |
|
10,707 |
|
9,845 |
|
862 |
|
8.76 |
% |
|||||
Other expenses |
|
8,890 |
|
8,277 |
|
613 |
|
7.41 |
% |
|||||
Total non-interest expense |
|
19,597 |
|
18,122 |
|
1,475 |
|
8.14 |
% |
|||||
Income before income taxes |
|
6,412 |
|
12,649 |
|
(6,237 |
) |
-49.31 |
% |
|||||
Provision for income taxes |
|
1,540 |
|
3,432 |
|
(1,892 |
) |
-55.13 |
% |
|||||
Net income |
$ |
4,872 |
$ |
9,217 |
$ |
(4,345 |
) |
-47.14 |
% |
|||||
Basic earnings per common share |
$ |
2.84 |
$ |
5.38 |
$ |
(2.54 |
) |
-47.14 |
% |
|||||
Dividends per share |
$ |
1.30 |
$ |
1.30 |
$ |
- |
|
0.00 |
% |
|||||
Earnings per share is computed by dividing net income, by the weighted averaged number of shares outstanding during the year. | ||||||||||||||
Total average shares outstanding for both 2024 and 2023 was 1,714,344 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430473984/en/
SVP, Chief Financial Officer
(707) 521-3751
Source: